Finding Text
Finding: The Project is sixteen months delinquent on making its monthly Reserve for Replacement deposits. Criteria: The Project’s regulatory agreement requires a monthly deposit of $746 in its Reserve for Replacement account. Questioned Costs: None Effect: The Reserve for Replacement account is underfunded by $10,185. Cause: The Project had insufficient cash flow during the year due to a high vacancy rate. Other Information: 12 of 12 months. Recommendation: Management deposit $10,185 into the Reserve for Replacement account. Reply: Management agrees with the finding.