Finding 1080438 (2024-001)

FINDINGS – FINANCIAL STATEMENTS AUDIT S2700-005 Finding Reference Number 2024-01 S2700-006 Finding Status Cleared S2700-007 Population Size N/A S2700-008 Sample Size N/A S2700-009 Noncompliance Information Project was required to fund the Replacement Reserve with deposits totaling $450 per month. Project made 11 out of 12 monthly deposits. S2700-010 Statement of Condition The project failed to make all monthly deposits into the Replacement Reserve account. S2700-020 Criteria Project is required to comply with the Replacement Reserve deposit requirements from HUD. S2700-030 Effect Replacement Reserve was underfunded. S2700-040 Cause Controls were not in place to maintain compliance with Replacement Reserve funding requirements. S2700-050 Recommendation Implement procedures to prevent the Replacement Reserve from being underfunded. Make a deposit for underfunded Replacement Reserve deposits and to correct the amount deposited monthly for future deposits. S2700-055 Auditor Non-Compliance Code N - Reserve for Replacement Deposits S2700-065 Amount of Questioned Costs $450 S2700-100 Summary of Auditee's Comments Management concurs with the finding and recommendation S2700-070 Finding Response Concur S2700-075 Recommendation Response Agree S2700-080 Completion Date October 3, 2024 S2700-090 Actions Taken or Planned on the Finding Management agrees with the finding and will implement controls to prevent the Replacement Reserve from being underfunded in the future.