Finding Text
2024-001 Fred Woods Home Inc. Replacement Reserve Deposit
Criteria: The Project is required to make monthly replacement reserve deposits.
Condition: The Project did not make a required replacement reserve deposit.
Context: The Project opened a new bank account in July and inadvertently missed the July replacement reserve deposit. All other deposits during the year were made timely.
Effect: Failure to make replacement reserve deposits results in noncompliance with the regulatory agreement.
Cause: Management oversight.
Recommendation: The Project should review its internal control policies to ensure all deposits are made timely.
Response: Management agrees with the finding.
Actions Taken or Planned on the Finding: The delinquent deposit was made on September 5, 2024. This finding is closed.