Finding Text
Reserve Account Condition: The Project failed to make one of the required monthly deposits of $459 to the reserve account, leaving the reserve account underfunded by $459. Criteria: The section 202 loan provided by HUD requires that monthly deposits be made to the reserve account. Effect: The reserve account is underfunded by $459 as of June 30, 2022. Thus, necessary repairs and improvements may not be performed until the reserve is fully funded and/or is authorized by HUD. Cause: Management failed to deposit the funds as required since the Project?s financial position made it difficult to do so. Recommendation: Efforts should be made to make all required deposits to the reserve account. Auditee?s response: The missing payment was made in the subsequent period and the reserve account was fully funded as of 8/18/2022.chedule of