Finding Text
Finding: The Project is seven months delinquent on making its monthly Reserve for Replacement deposits. Criteria: The Project?s regulatory agreement requires a monthly deposit of $525 in its Reserve for Replacement account. Questioned Costs: None Effect: The Reserve for Replacement account is underfunded by $3,675. Cause: The Project had insufficient cash flow during the year due to a high vacancy rate. Other Information: 7 of 12 months Recommendation: The Project has deposited the total of $3,675 into the Reserve for Replacement account as of December 9, 2022. Reply: Management agrees with the finding and has deposited $3,675 into the Reserve for Replacement account as of December 9, 2022.