Finding Text
Finding 2022-001 - Required Monthly Deposits to the Reserve for Replacement Assistance Listing Number: 14.195 Federal Agency: U.S. Department of Housing and Urban Development Federal Award Number: Not applicable Federal Award Year: July 1, 2021 - June 30, 2022 Pass-Through Entity: Not applicable Criteria: The Corporation is required to make a monthly deposit of $1,887 to the reserve for replacement account. Questioned Cost: None. Condition/Context: The Corporation made monthly deposits of $1,841. Our population included all monthly deposits. Our sample included all months. Effect: The reserve for replacement account was underfunded. Cause: Lack of management oversight. Recommendation: The Corporation should have procedures in place to ensure all required monthly deposits are made. Views of Responsible Officials and Planned Corrective Actions: The Corporation agrees with the finding and made a deposit into the reserve for replacement for the deficiency on September 20, 2022.