Answer: The Corporation failed to make all required monthly deposits into the reserve for replacement account.
Trend: Only three deposits were made throughout the year, totaling $11,550, which is below the expected amount.
List: Follow up to ensure the Corporation addresses the $1,050 shortage and implements a plan for consistent monthly deposits.
Finding Text
The Corporation did not make the required monthly deposits into its reserve for replacement account. Only three deposits were made during the year totaling $11,550 resulting in a shortage of funds deposited of $1,050.
Corrective Action Plan
Management deposited $1,050 into the replacement for reserves account.