Finding Text
Criteria: The Organization is required from the U.S. Department of Housing and Urban Development (HUD) to fund monthly deposits to the Reserve for Replacement totaling $132,393. Condition: The Organization did not fully fund the required deposits to the Reserve for Replacement account. Cause: The Organization underfunded the Reserve for Replacement by a monthly required deposit of $11,092. Effect: The Organization is noncompliant with the HUD requirement to fund the Reserve for Replacement by $132,393. Recommendation: We recommend the Organization fully fund the Reserve for Replacement. Views of Responsible Officials and Planned Corrective Actions: The Organization is in agreement with the finding and is making the necessary steps to make the required deposits to the Reserve for Replacement.