Finding 973600 (2023-001)

- Repeat Finding
Requirement
N
Questioned Costs
-
Year
2023
Accepted
2024-05-17

AI Summary

  • Core Issue: The management company failed to make required monthly transfers to the reserve account.
  • Impacted Requirements: This violates RD regulations that mandate proper reserve account balances for project capital needs.
  • Recommended Follow-Up: Management should ensure monthly transfers are made to the reserve account and follow up with Rural Development for guidance.

Finding Text

STATEMENT OF CONDITION: The management company did not make required monthly transfers to the reserve account in accordance with RD regulations. CRITERIA: RD regulations require that the owners must maintain proper reserve account balances for project capital needs in accordance with 7 CFR 3560.302. EFFECT: The projects reserve account is underfunded. CAUSE: The management company did not make transfers to the reserve account. RECOMMENDATION: Management should make monthly transfers to the reserve account. RESPONSE: Management is in contact with Rural Development regarding this finding and will proceed based on Rural Development’s recommendation.

Categories

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Other Findings in this Audit

Programs in Audit

ALN Program Name Expenditures
10.415 Rural Rental Housing Loans $962,244
10.427 Rural Rental Assistance Payments $21,105