Finding Text
Finding 2024-003: Required Reserves Deposit Shortage: Condition: There was a shortage in the total required deposits into the replacements reserve account. Criteria: Deposits are required to be made in accordance with the required deposit schedule provided by HUD. Effect: Potential noncompliance with HUD agreement provisions. Cause: Monthly deposits were not increased when the required monthly deposit amount was changed effective July 1, 2024. Recommendation: The Project needs to determine if these funds must be submitted to the new owner. Views of Responsible Officials and Planned Corrective Actions: Management agrees with the finding and recommendation. Questioned costs: $788