2022-1 ? Reserve for Replacement Monthly Deposits Not Made Timely Condition: Management failed to make the required deposits into the Reserve for Replacement bank account on a monthly basis. Response: The Reserve for Replacement required deposits were not made in each current month throughout the year due to cash flow issues and the 5 month delay is receiving an approve budget and contract renewal. However, all required deposits were made prior to 12/31/2022. The project has complied with the replacement Reserve requirement as mentioned in HUD Handbook 4350.1 REV-1, Chapter 4-2. Though, the project was late in depositing payments this is not a significant violation of the HUD Handbook 4350.1 REV-1, Chapter 4-2 and the Regulatory Agreement. The requirement to fund and maintain the Replacement Reserve account was accomplished. The project must not be penalized for a delay in making a monthly payment. The defect was cured in a timely manner. Also, this is not a material weakness to raise it to the level of a reportable condition. We do not agree that this is an instance of material weakness to be elevated to a reportable condition.