Finding Text
DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT FINDING 2024-001: SECTION 223(a)(7), ASSISTANCE LISTING NUMBER 14.155 Condition: The Project's replacement reserve balance was underfunded at September 30, 2024. Criteria: The Project did not increase its monthly deposit as required by HUD on June 1, 2024. Effect: The replacement reserve balance was $311 less than it should be at September 30, 2024. Context: Activity in the replacement reserve account for the year ended September 30, 2024 was tested. No sample was tested. Questioned Costs - $311; Cause: The Project's monthly deposit to the replacement reserve account for June 2024 through September 2024 did not reflect the increased monthly deposit amount required by HUD. Recommendation: The Project should deposit an additional $311 into its replacement reserve account. Views of Responsible Officials and Planned Corrective Actions: The Project agrees with the finding and will be diligent in ensuring that monthly deposits are compliant with HUD requirements. Total-Department of Housing and Urban Development - $311; Non-compliance code: A