Finding Text
Condition:
The Corporation did not make any required monthly deposits to the reserve for replacements as
required by the housing assistance payments contract.
Criteria:
The Corporation is required to make monthly deposits to the reserve for replacements in the
amount of $3,611 in accordance with the housing assistance payments contract.
Cause:
The Corporation did not make the required monthly deposits to the reserve for replacements as
the mortgage was refinanced in the prior year and the new lender does not collect the deposits as
part of the monthly billing.
Effect or Potential Effect:
The Corporation is in violation of the housing assistance payments contract.
Recommendations:
Management should make the delinquent, required deposits immediately and put procedures in
place to ensure that monthly payments are made timely in the future.