Finding Text
Finding #2022-001: Section 202 Capital Advance, CFDA 14.157. Condition: During 2022, the Company made nine deposits into the replacement reserve account. Criteria: The HUD regulatory agreement requires monthly deposits of $733 into the replacement reserve account. Effect: Replacement reserve account is underfunded and is in violation of its Regulatory Agreement. Questioned Cost: $2,199 Cause: Unknown Recommendation: The Company should closely monitor the deposits into the replacement reserve. Auditor?s Comment: We recommend the Company closely monitor deposits into the replacement reserve to ensure compliance with the Regulatory Agreement. During 2022, the Company underfunded three payment. The Company does not have the funds available to make the deposit for the underfunding. The Company plans to make the deposit when funds become available.