Finding Text
Finding Reference Number: 2022-001 Type of Finding: FA Finding Resolution Status: In Process Information on Universe Population Size: The finding was not a result of a sampling procedure. Sample Size Information: The finding was not a result of a sampling procedure. Identification of Repeat Finding and Finding Reference Number: This is not a repeat finding. Criteria: The regulatory agreement (as amended) requires monthly deposits of $500. Statement of Condition: Required monthly deposits to the replacement reserve are deficient in the amount of $3,000. Cause: Due to damages that the Project suffered from Hurricanes Laura and Delta the Project was unable to make the required deposits from July 2021 through December 2021. Effect or Potential Effect: Replacement reserve is deficient. Auditor Non-Compliance Code: N Questioned Costs: There are no questioned costs. The finding does not relate to an undocumented transaction or unreasonable expenditure. Reporting Views of Responsible Officials: Management agrees with the finding. The managing agent has requested that HUD retroactively suspend the required deposits for the period in question and is awaiting their response. Management will ensure that the replacement reserve deposits are made on a timely basis in the future. Context: Required monthly deposits to the replacement reserve are deficient in the amount of $3,000. Recommendation: Management should request that HUD retroactively suspend the required deposits for the period in question. Auditor's Summary of the Auditee's Comments on the Findings and Recommendations: Management agrees with the finding. The managing agent has requested that HUD retroactively suspend the required deposits for the period in question and is awaiting their response. Management will ensure that the replacement reserve deposits are made on a timely basis in the future. Response Indicator: Agree Completion Date: September 30, 2022 Response: Management agrees with the finding. The managing agent has requested that HUD retroactively suspend the required deposits for the period in question and is awaiting their response. Management will ensure that the replacement reserve deposits are made on a timely basis in the future.