Finding Text
FINDING 2023-001: SECTION 811, ASSISTANCE LISTING NUMBER 14.181 Condition: The Project's replacement reserve cash balance was underfunded at December 31, 2023. Criteria: The Project withdrew funds from the replacement reserve account that were subsequently reimbursed by the insurance company. Effect: The replacement reserve cash balance was $5,500 less than it should be at December 31, 2023. Context: Activity in the replacement reserve account for the year ended December 31, 2023 was tested. No sample was tested. Questioned Costs - $5,500, Cause: The Project failed to deposit funds into the replacement reserve account upon receiving the insurance reimbursement. Recommendation: The Project should deposit $5,500 into the replacement reserve account. Views of Responsible Officials and Planned Corrective Actions: The Project agrees with the finding. Management will deposit $5,500 into the replacement reserve account. Total-Department of Housing and Urban Development - $5,500; Non-compliance code - N