Finding Text
FINDING No. 2022-002: Section 236 Mortgage Restructuring Note, CFDA 14.103 Finding Resolution Status: Unresolved. Information on Universe Population Size: All replacement reserve deposits for the year ended December 31, 2022. Sample Size Information: All replacement reserve deposits for the year ended December 31, 2022. Identification of Repeat Finding and Finding Reference Number: No. Criteria: HUD regulations require OCAF rent adjusted projects to increase its monthly replacement reserve funding by the same percentage as the authorized rent increase. Statement of Condition: The Project did not increase the required monthly deposits to the replacement reserve by the 2.67% OCAF rent increase, and the replacement reserve was underfunded by $379. Cause: An increase in funding was not implemented. Effect or Potential Effect: Deficiently funded reserve for replacement account. Auditor Non-Compliance Code: N ? Reserve for Replacements Deposits. Reporting Views of Responsible Officials: The Project agrees with the finding and the auditor?s recommendations will be adopted. Recommendation: Management should implement procedures to ensure that replacement reserve monthly deposits are increased at the same percentage as the authorized OCAF rental increase and that the correct amount is deposited into the replacement reserve account each month. Response Indicator: Agree. Completion Date: 12/31/2023 Response: Management has implemented a new procedure to ensure all monthly deposits are made within the current period.