Finding Text
Finding: The Project is EIGHT months delinquent on making its monthly Reserve for Replacement deposits. Criteria: The Project’s regulatory agreement requires a monthly deposit of $525 in its Reserve for Replacement account. Questioned Costs: None Effect: The Reserve for Replacement account is underfunded by $4200. Cause: The Project had insufficient cash flow during the year due to a high vacancy rate. Other Information: 7 of 12 months. Recommendation: Management deposited $4,200 into the Reserve for Replacement account on October 12, 2023.. Reply: Management agrees with the finding and deposited the delinquent Funds on October 12, 2023