Finding Text
Criteria: Replacement reserve deposits should be made monthly in an amount determined by HUD. Condition: During the year ended June 30, 2022, ten of twelve deposits were made to the replacement reserve account. Cause: The project failed to make the required deposits to the replacement reserve. Effect or Potential Effect: The project is in violation of HUD replacement reserve procedures. Questioned Costs: None. Perspective: Deposits were not made for two of the twelve months in the audit period. Repeat Finding: Yes. Recommendation: We recommend that management make the required monthly deposits to the replacement reserve account. views of responsible officials: Management concurs with the finding and recommendation.