Answer: Management must make monthly deposits into the reserve for replacement account as per the Regulatory Agreement with HUD.
Trend: Consistent compliance with this requirement is crucial for maintaining funding and support from HUD.
List: Follow up to ensure deposits are made on time and in the correct amounts as specified by HUD.
Finding Text
In accordance with the Regulatory Agreement between the Corporation and HUD, management is required to make monthly deposits into the reserve for replacement account in an amount set by HUD.
Corrective Action Plan
Management will deposit the $5,139 shortfall and ensure future deposits are made in a timely manner.