Finding Text
Criteria The regulatory agreement requires that the Project make monthly deposits to its replacement reserve. Condition During the period ended May 20, 2025, the Project did not make one month of the required monthly deposits to the replacement reserve. The Project is required to make monthly deposits to the reserve in the amount of $8,630. Cause The cash transfer for the monthly deposit was not made timely. Effect or Potential Effect Failure to make monthly payments resulted in an underfunding the replacement reserve and a violation of the regulatory agreement. Questioned Costs $8,630 Identification as a Repeat Finding This is not a repeat finding. Recommendations Management should make the deposits timely and review to ensure that the replacement reserve is funded in accordance with the terms of the regulatory agreement. Auditor Noncompliance Code: N. Reserve for replacements deposits View of Responsible Officials The finding has been overcome by events as this project has been released from the Regulatory Requirements subsequent to the end of the period. Finding Resolutions Status: Unresolved