Finding Text
Finding reference number: 2025-001 Assistance Listing (Federal award identification number and year): Section 8 Project-Based Cluster – Project Based Rental Assistance (PBRA), Assistance Listing 14.195 Auditor non-compliance code: N-Reserve for Replacements Deposits Finding resolution status: In Process Universe population size: The universe population size is not applicable to the finding. Sample size information: The sample size information is not applicable to the finding. Statistically valid sample: N/A Name of Federal agency: U.S. Department of Housing and Urban Development Pass-through entity: N/A Questioned costs: $1,483 Statement of condition 2025-001: All the required monthly reserve for replacements deposits were not made during the year ended December 31, 2025. Criteria: The HAP contract requires monthly deposits into a separate reserve for replacements account in the amount of $1,483. Effect: The Corporation is not in compliance with the terms of the HAP contract. The reserve for replacements account is underfunded by $1,483 at December 31, 2025. Cause: Management did not make the full monthly deposit to the reserve for replacements account for eight months during the year ended December 31, 2025. Recommendation: Management should transfer $1,483 into the reserve for replacements account from the operating cash account as soon as possible. Management's response: Management concurs with the finding and agrees with the recommendation and will transfer $1,483 from the operating cash account to the reserve for replacements account.