Finding 517723 (2024-001)

2024-001 Fred Woods Home Inc. Replacement Reserve Deposit Criteria: The Project is required to make monthly replacement reserve deposits. Condition: The Project did not make a required replacement reserve deposit. Context: The Project opened a new bank account in July and inadvertently missed the July replacement reserve deposit. All other deposits during the year were made timely. Effect: Failure to make replacement reserve deposits results in noncompliance with the regulatory agreement. Cause: Management oversight. Recommendation: The Project should review its internal control policies to ensure all deposits are made timely. Response: Management agrees with the finding. Actions Taken or Planned on the Finding: The delinquent deposit was made on September 5, 2024. This finding is closed.