Finding Text
Condition - The reserve for replacements account is underfunded by $12,916 for the year ended June 30, 2022. Criteria - As part of Special Tests and Provisions related to Assistance Listing Number 14.157- Supportive Housing for the Elderly, the Company is required to deposit $12,916 in a reserve for replacements account on a monthly basis. Effect - The Company was not in compliance with the above HUD regulations. Cause - The reserve for replacements account was not adequately funded during the year. Recommendation - We recommend that the delinquent deposit totaling $12,916 for the year ended June 30, 2022 be deposited into the reserve for replacements account as soon as possible. Management?s Reply - (a) Comments on the finding and recommendation: Management agrees with the finding. Management also agrees with the recommendation, please see below for action taken. (b) Action taken: Management informed us that the amount has been deposited on August 9, 2022.