Answer: The previous management company failed to submit the annual budget to HUD.
Trend: This oversight led to not receiving an updated PRAC Contract.
List: Ensure future budgets are submitted on time to avoid contract issues.
Finding Text
The prior management company did not submit the annual budget for HUD approval and in turn, did not receive an updated PRAC Contract.
Corrective Action Plan
New management has taken over and will make the delinquent deposit to the replacement reserve of $73,008 and establish transfers for the monthly deposit amount.