Finding 2024-003, Significant Deficiency in Internal Control over Compliance. Condition: The property management failed to make the required monthly reserve deposits for the period of July 2023 to June 2024. Criteria: According to HUD Section 811 regulations, properties must make monthly reserve deposits to ensure financial stability and ongoing maintenance. Cause: The failure was due to deficiencies in the internal controls within the management process related to the monthly deposits. Effect: The failure to make these deposits could jeopardize the financial health of the property and its ability to meet future maintenance needs. Recommendation: The auditor recommended that the property management implement internal controls to ensure monthly reserve deposits are made as required by HUD Section 811 regulations. Responsible Person: Brittany Colson, Manager Planned Action: The Project agrees with the finding and the auditor’s recommendations will be adopted. Anticipated completion date: The recommendation will be applied in fiscal year ending June 30, 2025.