Finding Text
Condition - The reserve for replacements account is underfunded by $3,000 at September 30, 2022.
Criteria - As part of Special Tests and Provisions related to Assistance Listing Number 14.157-Supportive Housing for the Elderly, the Corporation is required to deposit $1,000 in a reserve for replacements account on a monthly basis.
Effect - The Corporation was not in compliance with the above HUD regulations.
Cause - The reserve for replacements account was not adequately funded during the year.
Statistical Sampling - The sample was not intended to be, and was not, a statistically valid sample.
Recommendation - We recommend that the delinquent deposits totaling $3,000 for the year ended September 30, 2022 be deposited into the reserve for replacements account as soon as possible.
Management's Reply - (a) Comments on the finding and recommendation: Management agrees with the finding. Management also agrees with the recommendation, please see below for action taken.
(b) Action taken: Management has deposited the underfunded amount on October 20, 2022.