Finding 403443 (2023-001)

S3800-010 Finding Reference Number 2023-1 S3800-015 Type of Finding Federal Award Finding S3800-020 Criteria Compliance with the Regulatory Agreement stipulates that required deposits have to be made into the reserve for replacements S3800-030 Statement of Condition The Organization did not meet the required monthly deposits needed into the reserve for replacements. S3800-035 Auditor Non-Compliance Code N - Reserve for Replacement Deposits S3800-037 FHA/Contract Number 046-EE020 S3800-038 Questioned Costs $4,007 S3800-050 Context The Organization did not have enough liquid funds to make the monthly reserve for replacement deposits. S3800-060 Effect Not making required deposits could result in insufficient funds to cover repairs and replacements S3800-070 Cause The Organization does not have enough liquid funds to make the monthly reserve for replacement deposits. S3800-080 Recommendation The Organization should deposit $4,007 into the reserve for replacements.