Finding Text
Finding #2022-001: Section 202 Capital Advance, CFDA 14.157 Condition: The Company made 9 monthly deposits into the replacement reserve account. Criteria: The HUD regulatory agreement requires the Company to make 12 monthly deposits into the replacement reserve account. Effect: Replacement reserve account is underfunded and the Company is in violation of its Regulatory Agreement. Questioned Cost: $2,149. Cause: Oversight Recommendation: The Company should closely monitor the deposits into the replacement reserve. Auditor?s Comment: We recommend the Company closely monitor deposits into the replacement reserve to ensure compliance with the Regulatory Agreement. On March 20, 2023, the Company funded $2,149 payment to the replacement reserve. Finding 2022-001 Cleared.