Finding 51575 (2022-003)

Type of Finding: Other Matters, Significant Deficiency in Internal Control over Compliance Criteria or Specific Requirement: HUD regulations and the regulatory agreement required deposits into the reserve for replacements of $500 per month from July 2021 through June 2022. Condition: The Corporation did not deposit the required amounts into the reserve for replacements for each month during the year ended June 30, 2022. Questioned Costs: None Context: The Corporation had a $150 deficiency in the reserve from replacements from fiscal year 2022. The Corporation made up for the prior year deficiency, however, it did not deposit the required current year amounts into the reserve for replacements for each month during the year ended June 30, 2022. Cause: Management Oversight Effect: The Corporation's reserve for replacements was under funded by $150 at June 30, 2022. Repeat Finding: No.