Answer: The LCC fell short in monthly deposits to the replacement reserve.
Trend: Required deposits were $6,472, but only $6,201 were made each month.
List: Follow up on increasing monthly deposits to meet the required amount.
Finding Text
The LCC did not make adequate monthly deposits to the replacement reserve during the year. The monthly amount required was $6,472 compared to the monthly amount made of $6,201.
Corrective Action Plan
Management should implement additional review controls over restricted cash that are sufficient to ensure deposits for replacement reserve are deposited in the appropriate amount.