Finding Text
In order to be in compliance with U.S. Department of Housing & Urban Development, Section 811 Capital Advance (Supportive Housing for persons with Disabilities) Federal Assistance Listing number 14.181, Building Futures, Inc. is required to make monthly deposits to the Replacement Reserve account. During our audit procedures, we noted that only 11 of the 12 required monthly deposits to the Replacement Reserves account were made during the fiscal year ending June 30, 2025. Written approval to suspend deposits was not obtained from HUD. We recommend that management have a heightened awareness of the timeliness regarding the Replacement Reserve deposits to ensure that deposits are made timely or that written approval to suspend deposits is obtained from HUD.