Finding Text
2022-001 HUD Section 811 Capital Advance #14.181 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 any 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 due to HAP payments not received timely. Effect: The Project is behind on deposits to its Reserve for Replacement account in the amount of $9,600 as of June 30, 2022. Questioned Costs: N/A Other Information: Twelve of twelve monthly deposits were not made. This was not 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 $9,600 on September 20, 2022.