Finding Text
FEDERAL AWARDS FINDING Year Ended December 31, 2022 Finding 2022-004 Federal assistance listing number and name: 10.415 Rural Rent Housing Loans Awards numbers and years: 2022 Federal agency: United States Department of Agriculture Compliance Requirement: Special tests and provisions Questioned Costs: None Criteria: RD projects are required to setup and maintain reserves for insurance payments. Condition and Context: Edgewater Estates did not establish and fund an account for insurance reserves. Effect: The Project is not in compliance with RD regulations and procedures. Cause: The Project has not opened an account for insurance reserves. Recommendation: We recommend that the Project establish an insurance reserve account with the bank as soon as possible.