Finding Text
Condition The Organization failed to make the required monthly deposits of $4,100 into its replacement reserve account on a timely basis. Criteria The Organization is required by HUD (HUD Handbook 4350.1) to deposit $4,100 per month into a federally insured account. Cause The Organization has not established a procedure that ensures that the deposits are made on a monthly basis. Effect The required deposits were not made timely. Recommendation The Organization should develop procedures which will ensure those deposits are made in a timely manner. Also, the Organization should be reviewing the financial statements periodically. Federal Agency Program: All federal programs are affected. Questioned costs: None