Finding Text
Finding #2022-002: Section 202 Capital Advance, CFDA 14.157 Condition: The Company made 10 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: The Company is not in compliance with the HUD regulatory agreement. Questioned Cost: $2,400 Cause: Oversight Recommendation: The Company should closely monitor the deposits into the replacement reserves. Auditor?s Comment: We recommend the Company closely monitor the deposits into the replacement reserve to ensure compliance with its Regulatory Agreement. During March 2023, the Company transferred $2,400 to the replacement reserve. Finding 2022-002 cleared.