Finding Text
ASI KANSAS CITY, INC. HUD PROJECT NO. 084-HD054 SCHEDULE OF FINDINGS AND QUESTIONED COSTS (CONTINUED) YEAR ENDED JUNE 30, 2022 C. Findings and Questioned Costs - Major Federal Award Programs Audit Questioned Costs DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT FINDING 2022-001: SECTION 811, ASSISTANCE LISTING NUMBER 14.181 Condition: The Project's replacement reserve cash balance was underfunded at June 30, 2022. Criteria: The Project did not make three months of HUD required deposits into its replacement for reserve account. Effect: The replacement reserve cash balance was $8,800 less than it should be at June 30, 2022. Context: Activity in the replacement reserve account for the year ended June 30, 2022 was tested. No sample was tested. Questioned costs $8,800 Cause: The Project's monthly automatic deposit into its replacement reserve account was inadvertently stopped, resulting in missed deposits for three months. Recommendation: The Project should deposit $8,800 into the replacement reserve account. Views of Responsible Officials and Planned Corrective Actions: The Project agrees with the finding. Management deposited $8,800 to the replacement reserve account in July 2022 when it realized the oversight. Questioned Costs - Department of Housing and Urban Development $8,800 Non-compliance code - N