Finding Text
Finding: The Project is three months delinquent on making its monthly Reserve for Replacement deposits. Criteria: The Project?s regulatory agreement requires a monthly deposit of $585 in its Reserve for Replacement account. Questioned Costs: None Effect: The Reserve for Replacement account is underfunded by $1,755. Cause: The Project had insufficient cash flow during the year due to a high vacancy rate. Other Information: 3 of 12 months Recommendation: The Project deposited $1,755 into the Reserve for Replacement account on December 9, 2022. Reply: Management agrees with the finding and deposited $1,755 into the Reserve for Replacement account on December 9, 2022.