Finding Text
Statement of Condition During the year ended December 31, 2022, the Project did not make the required monthly deposits to the replacement reserve in the amount of $96,800. The Project is required to make monthly deposits to the reserve in the amount of $48,400. Criteria The PRAC requires that the Project make monthly deposits to its replacement reserve. Questioned Costs None Effect Failure to make monthly payments resulted in an underfunding the replacement reserve and a violation of the PRAC. Cause Delays in renewal of the PRAC caused delays in HUD's payment of the subsidy portion of income resulting in cash not being available to make the required deposit. Recommendation Management should make every effort to make deposits into the replacement reserve timely. Auditor Noncompliance Code: N ? Special tests and provisions