Finding Text
Finding 2022-001 ? Special Tests and Provisions ? Reserve for Replacement Federal program information: Title: Section 811 Capital Advance CFDA Number: 14.181 Resolution Status: Resolved Information on Universe Population Size: Population size is the total amount in the Reserve for Replacement account at year-end, June 30, 2022. Sample Size Information: Reserve for Replacement ending balance at June 30, 2022. Identification of Repeat Finding and Finding Reference Number: This is a new finding. Criteria: Total cash of $3,552 was required to be deposited into the Reserve for Replacement account by June 30, 2022. Statement of Condition: As of June 30, 2022, the Reserve for Replacement only had $1,480 deposited during the year. Cause: Management did not meet the annual funding requirement for the Reserve for Replacement account. Effect or Potential Effect: The project was not in compliance with the Capital Advance and current HUD regulations, the project?s Reserve for Replacement was under-funded for the current year by $2,072. Auditor Non-Compliance Code: N Questioned Cost: $2,072 Reporting Views of Responsible Officials: Management agrees with the Reserve for Replacement calculations and is aware of the current deposit required to the Reserve for Replacement. Recommendation: Management should implement internal controls to make any required deposits before the year-end deadline. Auditor?s Summary of Auditee?s Comments on the Findings and Recommendations: Management transferred $1,776 on 9/20/2022 but still owes $296 to the Reserve for Replacement account as of September 23, 2022 due to insufficient funds. This finding is therefore, unresolved. Completion Date: n/a Response: Management transferred $1,776 on 9/20/2022 bust still owes $296 to the Reserve for Replacement account as of September 23, 2022 due to insufficient funds. The rest of the funds will be transferred as soon as cash flow allows.