Finding 1172678 (2025-001)

FINDING No. 2025-001: Section 8 Project Based Rental Assistance (PBRA), ALN 14.195 Finding Resolution Status: Unresolved. Information on Universe Population Size: All replacement reserve deposits for the year ended June 30, 2025. Sample Size Information: All replacement reserve deposits for the year ended June 30, 2025. Identification of Repeat Finding and Finding Reference Number: Yes, 2024-001. Criteria: As required by HUD regulation, timely monthly deposits must be made to the Replacement Reserve account. Statement of Condition: The Project underfunded the account by $1,073 in the current year and did not correct the prior year deficiencies of $611, for 2023 and 2024. Cause: The Project did not fund the reserve account with the new amount at the beginning of the year or correct the prior year deficiency. Effect or Potential Effect: Deficiently funded reserve for replacements. Auditor Non-Compliance Code: N – Reserve for Replacements deposits. Reporting Views of Responsible Officials: The Project agrees with the finding and the auditor’s recommendations will be adopted. Recommendation: Management should implement procedures to ensure the replacement reserve is properly funded on a monthly basis. Response Indicator: Agree. Completion Date: 06/30/2026 Response: New procedures have been implemented to review the deposits each month to ensure the amounts are proper.