Finding 1208901 (2025-001)

Finding No. 2025-001 Type of Finding: Noncompliance Finding Finding Resolution Status: Open Questioned Costs: None Noncompliance Information: 1 instance of noncompliance Auditor Noncompliance Code: D – Replacement Reserve Statement of Condition Required replacement reserve deposits in an amount equal to $294.70 per month were not made during the 2025 year. Criteria The Organization is required to fund the replacement reserve in the amount of $294.70 per month in accordance with the HUD Regulatory Agreement. Effect The Organization is out of compliance with HUD regulations. Cause The underfunding of the replacement reserve account was the result of an inadvertent bookkeeping oversight. Recommendation We recommend the Organization transfer $3,536.40 to the replacement reserve cash account. Reporting Views of Responsible Officials Management is aware the required deposits to the replacement reserve account were not made and will transfer $3,536.40 to the replacement reserve cash account.