Finding Text
Criteria: Replacement reserve deposits should be made monthly in an amount determined by HUD. Condition: During the year ended June 30, 2023, one of the 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: One deposit of $1,000 was made in July 2022. No other deposits were made in the remaining eleven months in the audit period. Repeat finding: Yes.