Answer: Monthly deposits to the replacement reserve are short by $24,000.
Trend: This deficiency indicates a consistent failure to meet funding requirements.
List: Follow up by reviewing deposit schedules and adjusting future contributions to meet the required amount.
Finding Text
Required monthly deposits to the replacement reserve are deficient in the amount of $24,000.
Corrective Action Plan
Management agrees with the finding. The replacement reserve deficiency will be funded in the amount of $24,000. Management will ensure that the replacement reserve deposits are made on a timely basis in the future.