Finding Text
Statement of Condition: For the year ended December 31, 2025, the Organization deposited $8,820 into the Replacement Reserves account.Criteria: Per the regulatory agreement with HUD, the Organization is required to deposit $735 monthly into the Replacement Reserves account for the period January 1, 2025 through June 30, 2025. Effective July 1, 2025, the monthly require deposit increased to $770. Criteria: Per the regulatory agreement with HUD, the Organization is required to deposit $735 monthly into the Replacement Reserves account for the period January 1, 2025 through June 30, 2025. Effective July 1, 2025, the monthly require deposit increased to $770. Effect: The Replacement Reserves account was underfunded by $210. Cause: The Organization inadvertently failed to increase the amount of the monthly deposit in July 2025. This was discovered during the year-end reconciliation process.Recommendation: The Organization should deposit these monies to Replacement Reserves as quickly as possible.Recommendation: The Organization should deposit these monies to Replacement Reserves as quickly as possible. Views of responsible officials and planned corrective actions: The Organization agrees with this finding. Please refer to the corrective action plan on page 34.