Finding Text
Finding reference number: 2023-001
Auditor non-compliance code: Special Test and Provisions
Universe population size: The universe population size is not applicable to the finding.
Sample size population: The universe population size is not applicable to the finding.
Noncompliance information: See statement of condition #2023-001 for noncompliance
information.
Statement of condition #2023-001: Darlington Farmworkers Townhomes, L.P. did not make all of
the required deposits to the reserve for replacements account per the 2023 RD approved budget for
the year ended December 31, 2023. At December 31, 2023, the reserve for replacements is
underfunded by $8,484.
Criteria: Per the 2023 RD approved budget, Darlington Farmworkers Townhomes, L.P. was required
to make monthly deposits to the reserve for replacements account in an amount determined by RD
beginning after construction is complete through the end of the fiscal year ended December 31, 2023.
Effect: Darlington Farmworkers Townhomes, L.P. did not make deposits in line with the 2023 RD
approved budget and deposits to the reserve for replacements account of $8,484 were not made for
the year ended December 31, 2023.
Cause: Darlington Farmworkers Townhomes, L.P. made deposits based on the monthly requirements,
per the loan agreement, rather than the increased deposits required by RD, per the approved budget,
for the initial year following construction.
Recommendation: Management should deposit $8,484 into the reserve for replacements account.
Reporting views of the responsible officials: Management agrees with the recommendation. In
March 2024, management made a deposit into the reserve account to fully resolve the discrepancy.