Finding Text
Finding 2023-003 Reserve Funds
Condition: The required annual payments have not been made to the reserve funds.
Criteria: The Corporation is required to make annual payments to the reserve funds until the funds reach a minimum dollar amount.
Cause: There is not a system in place to make the required annual payments to the reserve funds.
Effect: Not funding the reserve funds could adversely affect the Corporation’s compliance with the USDA-Rural Development regulations.
Recommendation: We recommend that the Corporation discuss with the USDA the required minimum amounts in the reserve funds and determine what the annual payments should be for each apartment building.
Repeat Finding: Yes.