Finding Text
Condition - The reserve for replacements account is underfunded by $1,200 for the year ended March 31, 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 $1,200 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 $1,200 for the year ended March 31, 2022 be deposited into the reserve for replacements account as soon as possible. Management?s Reply - Management understands HUD?s requirements for monthly deposits into the reserve for replacements and has deposited the delinquent deposit of $1,200 into the reserve for replacements account in April 2022.