Finding Text
Finding 2022-001 ? Special Tests and Provisions ? Reserve for Replacement Federal program information: Title: Section 811 Capital Advance CFDA Number: 14.181 Resolution Status: Resolved Information on Universe Population Size: Population size is the total amount in the Reserve for Replacement account at year-end, June 30, 2022. Sample Size Information: Reserve for Replacement ending balance at June 30, 2022. Identification of Repeat Finding and Finding Reference Number: This is a new finding for the property. Criteria: Total cash of $4,860 was required to be deposited into the Reserve for Replacement account by June 30, 2022. Statement of Condition: As of June 30, 2022, the Reserve for Replacement only had $4,455 deposited during the year. Cause: Management did not perform the Reserve for Replacement deposit for one month. Effect or Potential Effect: The project was not in compliance with the Capital Advance and current HUD regulations, the project?s Reserve for Replacement was under-funded for the current year by $405. Auditor Non-Compliance Code: B Questioned Cost: $405 Reporting Views of Responsible Officials: Management agrees with the Reserve for Replacement calculations and is aware of the current deposit required to the Reserve for Replacement. A deposit was made to Residual Receipts for $405 on July 17, 2022. Recommendation: Management should implement internal controls to make any required deposits before the year-end deadline. Auditor?s Summary of Auditee?s Comments on the Findings and Recommendations: Management has transferred the full obligation of $405 to the Reserve for Replacement account as of July 17, 2022. This finding is therefore, resolved. Completion Date: July 17, 2022 Response: Management has transferred the full obligation of $405 to the Reserve for Replacement account as of July 17, 2022. This finding is therefore, resolved.