Finding Text
2022-001 Finding resolution status: Resolved Information on universe: Auditor tests the monthly bank statements for the reserve for replacement account. Sample size: 12 monthly statements Identification of repeat finding: Repeat finding 2021-002 Condition: One of the monthly Reserve for Replacement deposits was not deposited in the correct month. Criteria: HUD requires monthly deposits to the Reserve for Replacement account. Effect: Monthly deposit was not made timely. Context: Auditor reviewed the monthly bank statements and noted one deposit was not made in the correct month. Cause: Lack of oversight by management agent. Recommendation: A procedure be implemented to ensure that the Project remains in compliance with its regulatory agreement and all monthly reserve for replacement deposits are made timely. Reporting views of responsible officials: A procedure has been implemented and all deposits will be made timely going forward. Date of completion: December 31, 2021