Finding Text
Criteria: The federal program 14.181 requires that the Owner establish and maintain a replacement reserve to aid in funding extraordinary maintenance and repair and replacement of capital items. The replacement reserve funds must be deposited in a federally insured depository in an interest-bearing account. An amount as required by HUD will be deposited monthly in the reserve fund. Condition and Context: Deposits into the reserve account were not made monthly. The total required deposits were made by the end of the fiscal year, where 5 out of the 12 deposits were made late. Cause: There was turnover in staff during the year, and the new staff was not aware of the monthly deposit requirement. Effect: The Organization was not in compliance with the monthly deposit requirement.