A. Current Findings on the Schedule of Findings, Questioned Costs, and Recommendations 2. Finding 2025-002: Noncompliance with Replacement Reserve Deposit Requirements a. Comments on the Finding and Each Recommendation: We acknowledge that two required replacement reserve deposits totaling $1,000 were not made timely during the year. The delayed deposits were fully cured prior to report issuance, the replacement reserve account remained substantially funded throughout the period, and no financial loss, reserve deficiency, or misuse of restricted funds occurred. Management views this matter as a timing and monitoring issue rather than a deficiency in the overall reserve position. b. Action(s) Taken or Planned on the Finding: 1. Reserve Deposit Monitoring Procedures: We have implemented formal reserve deposit monitoring procedures to track required monthly replacement reserve contributions, identify timing variances or shortfalls on a timely basis, and ensure corrective follow-up when needed. Supporting documentation and reconciliation records are maintained for audit and compliance purposes. 2. Monthly Management Review: Replacement reserve activity, including required deposits, account balances, and related reconciliation activity, is reviewed monthly by finance management as part of the organization’s ongoing compliance oversight procedures. Evidence of supervisory review is retained as part of the monthly compliance documentation process.