Issue: The Project missed a required replacement reserve deposit for March 2024 due to management oversight.
Impacted Requirement: Monthly replacement reserve deposits are mandatory for compliance with HUD regulations.
Follow-up: Review and improve internal controls to ensure timely deposits in the future; the missed deposit was addressed in May 2024.
Finding Text
Replacement Reserve Deposit. Agency: U.S. Department of Housing and Urban Development (HUD); Assistance Listing Number: 14.181; Program: Supportive Housing for Persons with Disabilities; Criteria: The Project is required to make monthly replacement reserve deposits.; Condition: The Project did not make a required replacement reserve deposit for March 2024.; Cause: Management oversight led to the lack of monthly deposit for March 2024. All other deposits during the year were made timely.; Effect: Failure to make replacement reserve deposits results in noncompliance with the regulatory agreement.; 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 in May 2024. This finding is closed.
Categories
Internal Control / Segregation of DutiesHUD Housing Programs