Corrective Action Plan
September 20, 2024
Intrepid Management, Inc.
212 S Main Street
Malvern, AR 72104
INTREPID MANAGEMENT
Mills Center Apartments, Inc., HUD Projed No. 082-HD040-NP-L8 respectfully submits the following corrective action plan for the
year ended June 30, 2024.
Auditing Firm: Fleet Firm
759 Tealwood Lane
Cordova, TN 38018
Audit Period: 07/01/2023 Through 06130/2024
The findings from the 06/30/2024 schedule of findings and questioned costs are discussed below. The findings are numbered
consistently with the numbers assigned in the schedule.
Findings and Questioned Costs - Financial Statement Audit
None
Findings and Questioned Costs - Major Federal Award Programs AuditU.S. Department of Housing & Urban Development
Finding 2024-001 - Reserve for Replacements, Federal Asset Listing Number 14.181
Finding Resolution Status - Unresolved
Information on Universe Population Size - NIA
Sample Size Information - NIA
Identification of Repeat Finding and Finding Reference Number - NIA
Criteria - HUD requires monthly deposits to be made to the replacement reserve account on a timely basis.
Statement of Condition - The replacement reserve account is underfunded in the amount of $23,525 for the year ended June 30,
2024.
Cause - In November 2023, the required Reserve for Replacement deposit was changed to be $4,705. The present cash flow of
the property does not support this increase.
Effed or Potential Effect - The Organization's replacement reserve account is underfunded $23,525 at year end.
Auditor Non-Compliance Code - N - Reserve for Replacements Deposits
Questioned Costs - Zero
Reporting views of Responsible Officials - Agrees with finding. Management expeds an additional rent increase in November 2024
that will allow the property to catch up on the required deposits.
Recommendation - Deposit shortage should be funded as soon as possible.
Auditor's Summary of the Auditee's Comments on the findings and Recommendations - The auditee's comments appear to be
accurate and consistent with the auditor finding.
Response indicator -Agree
Completion date - June 30, 2025
Response - Shortage will be funded prior to June 30, 2025.
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