Finding Text
Finding 2024-001 – Special Tests and Provisions:
Criteria
In accordance with the Uniform Guidance, an amount as required by HUD will be deposited
monthly in the replacement reserve account.
Condition
During the year ended June 30, 2024, the project only made 11 monthly deposits into the
replacement reserve account.
Effect
The required monthly deposits were not made properly.
Cause
The project only made 11 monthly deposits into the replacement reserve account.
Questioned Costs
$1,100
Context
The project did not make all 12 monthly deposits into the replacement reserve account.
Repeat Finding
No
Recommendation
Management should ensure the procedures to make the required monthly deposits into the
replacement reserve account are followed.
Auditor Noncompliance Code
N – Reserve for Replacements Deposits; Special Tests and Provisions – Replacement Reserve.
Finding Resolution Status
Open.
Reporting Views of Responsible Officials
Management will ensure the project makes the delinquent deposit into the replacement reserve
account.
Management will also ensure the procedures to make the required monthly deposits into the
replacement reserve account are followed.