Finding Text
Statement of Condition: For the year ended December 31, 2023, the Organization deposited $23,750 into the Replacement Reserves account.
Criteria: Per the regulatory agreement with HUD, the Organization is required to deposit $2,000 into Replacement Reserves account for the period January 1, 2023 through December 31, 2023.
Effect: The Replacement Reserves account was underfunded by $250.
Cause: The Organization inadvertently failed to make all 12 required monthly deposits. This was discovered during the year-end reconciliation process.
Recommendation: The Organization should deposit these monies to Replacement Reserves as quickly as possible.