Finding 960842 (2023-002)

Type of Finding: Other Matters, Significant Deficiency in Internal Control over Compliance Criteria or Specific Requirement:HUD regulations and the regulatory agreement required deposits into the reserve for replacements of $2,602 per month from July 2022 through December 2022 and $2,662 per month from January 2023 through June 2023. Condition: The Corporation did not deposit the required amounts into the reserve for replacements for each month during the year ended June 30, 2023. Questioned Costs: None Context: The Corporation did not deposit the required amounts into the reserve for replacements for each month during the year ended June 30, 2023. Cause: Management oversight. Effect: The corporation's reseerve for replacements was under funded by $358 at June 30, 2023. Repeat Finding: No. Recommendation: Management should fully fund the reserve for replacements and also ensure the Corporation makes the required payment to the reserve for replacements on a monthly basis.