Issue: As of December 31, 2023, there are no deposits made to the reserve for replacements, totaling $610,030.
Trend: This lack of deposits indicates a potential ongoing neglect of financial obligations related to reserve funding.
Follow-up: Review the reasons for the missed deposits and implement a plan to ensure future contributions to the reserve are made on time.
Finding Text
Condition/Context At December 31, 2023, deposits to the reserve for replacements account in a cumulative amount of $610,030 have not been made.
Corrective Action Plan
Management should transfer excess funds from the operating account to the reserve for replacements account and continue to work toward bringing the delinquent accounts current.