Issue: One monthly Reserve for Replacement deposit was not made on time.
Requirements Impacted: HUD mandates timely monthly deposits to the Reserve for Replacement account.
Follow-Up: Implement a procedure to ensure all future deposits are made on schedule to maintain compliance.
Finding Text
Department of Housing and Urban Development - Section 202 for the Elderly 14.157 2022-001 Condition: One of the monthly Reserve for Replacement deposits was not deposited in the correct month. Criteria: HUD requires monthly deposits to the Reserve for Replacement account. Effect: Monthly deposit was not made timely. Context: Auditor reviewed the monthly bank statements and noted one deposit was not made in the correct month. Cause: Lack of oversight by management agent. Recommendation: A procedure be implemented to ensure that the Project remains in compliance with its regulatory agreement and all monthly reserve for replacement deposits are made timely.
Categories
HUD Housing ProgramsInternal Control / Segregation of Duties