Finding Text
Criteria: The Regulatory Agreement between the Entity and HUD requires the Entity to make monthly deposits in the amount of $700 per month. Condition: The entity’s Reserve for Replacement account was underfunded in the amount of $3,005 as of December 31, 2023. Cause: Cash Flow Shortage. Effect: The Entity is in direct violation of the HUD Regulatory Agreement. Other Information: 4.3 months of 12 are delinquent. Recommendation: Management deposited $3,005 into the Reserve for Replacement account on April 15, 2026 to cover the shortage. Response: Management deposited $3,005 into the Reserve for Replacement account on April 15, 2026 to cover the shortage.