Finding Text
Information on the Universe Population Size Replacement reserve activity for the year ended December 31, 2025. Sample Size Information All monthly replacement reserve deposits Criteria The regulatory agreement requires monthly deposits to find the replacement reserve. Statement of Condition The Replacement Reserve account was underfunded by $15,216,. Cause The cause of the insufficient required deposits was due to a limited amount of funds caused by delayed tenant rental subsidy payments from HUD. Effect or Potential Effect The Replacement Reserve account was underfunded by $15,216, which is a violation of the regulatory agreement. Auditor Non-Compliance Code N- Reserve for Replacements Deposits Questioned Costs There were no known questioned costs. Perspective The finding represents the property’s lack of funds to cover the required deposits. Repeat finding Yes, prior year findings 2024-004 and 2023-001. Recommendations Auditor recommends that the Entity fund the account for delinquent replacement reserve deposits as soon as the property has sufficient funds. Views of Responsible Officials See Management Corrective Action Plan