Finding Text
Finding 2022-001- Replacement Reserve DepositsCondition Found The Project only made 11 months of deposits for a total of $5,760. The deposits should have totaled $6,240.Criteria: According to HUD?s guidelines, a Project must make monthly deposits to the reserve for replacement account.Cause: Project management did not make the required monthly deposit, causing a shortage in the reserve for replacement account for the year ending June 30, 2022.Effect The Project held excess cash and did not make the required deposit.Recommendation: The overall reserve shortage of $480 should be funded as soon as possible.Current Status Management will fund the reserves as soon as funds are available.