Finding Text
Finding: The Project is seven months delinquent on making its monthly Reserve for Replacement deposits. Criteria: The Project’s regulatory agreement requires a monthly deposit of $631 in its Reserve for Replacement account. Questioned Costs: None Effect: The Reserve for Replacement account is underfunded by $4,434. Cause: The Project had insufficient cash flow during the year due to a high vacancy rate. Other Information: 7 of 12 months. Recommendation: Management deposit $4,434 into the Reserve for Replacement account. Reply: Management agrees with the finding.