Answer: The Corporation failed to make the necessary monthly deposits into its reserve for replacement account.
Trend: Only seven deposits were made this year, totaling $4,169, which is significantly below the required amount.
List: This resulted in a shortage of $29,839 in the account, highlighting a need for immediate corrective action.
Finding Text
The Corporation did not make the required monthly deposits into its reserve for replacement account. Only seven deposits were made during the year totaling $4,169 resulting in a shortage of funds deposited of $29,839.
Corrective Action Plan
HUD notified management of the error in July 2026, and management will insure the required monthly deposits into the reserve for replacement account are made in a timely manner.