Finding Text
Criteria: The Project is required to make monthly deposits of $800 into the Project’s Reserve for Replacement account. Condition: The Project did not make all monthly deposits to the Project’s Reserve for Replacement account. Cause: The Project did not have cash flow available to make the monthly Reserve for Replacement deposits. Effect: The Project is behind on deposits to its Reserve for Replacement account in the amount of $1,600 as of June 30, 2023. Questioned Costs: None Other Information: Two of twelve monthly deposits were not made. This was a repeat finding. Recommendation: The Management Agent should closely monitor cash flow to ensure sufficient funds are maintained to meet the Reserve for Replacement requirements. Response: Management agrees with the finding and deposited the delinquent Reserve for Replacement deposits in the amount of $1,600 on July 10, 2023.