Finding Text
Condition: The Corporation is delinquent in making deposits to the Reserve for Replacements as required by the Section 8 Contract. There are sixteen delinquent deposits totaling $32,000 as of September 30, 2022. Criteria: The Section 8 Contract requires monthly deposits of $2,000 to be made to the Reserve for Replacements. Cause: Management believed the monthly deposits were optional rather than mandatory. Effect: The Corporation is in violation of the Section 8 Contract. Recommendations: The Corporation should make the delinquent deposits as soon as possible and establish procedures to ensure the deposits are made on a monthly basis moving forward.