Finding Text
Information on the federal program ? 14.181 Supporting Housing for Persons with Disabilities (Section 811), U.S. Department of Housing and Urban Development (HUD). Criteria or specific requirement ? Special Tests and Provisions ? Replacement Reserves ? HUD requires monthly deposits into replacement reserve account per 24 CFR ? 891.405(b). Condition ? VCHDFC did not make the required monthly deposits on a monthly basis. Questioned costs ? None. Context ? Replacement reserve account was analyzed at year-end. Effect ? Replacement reserve account was not properly funded on a monthly basis. Cause ? VCHDFC did not have proper oversight regarding making appropriate monthly payments into replacement reserve account. Identification as a repeat finding, if applicable: A repeat finding see 2021-001. Recommendation ? We recommend that VCHDFC establish proper internal controls in order to properly fund the replacement reserve account on a monthly basis. Views of responsible officials and planned corrective actions ? Please see the attached corrective action plan as submitted by management. VCHDFC agrees with the finding.