Finding Text
Condition: The Corporation only made 11 of 12 required deposits to the replacement reserve
during the year.
Cause: The Corporation did not have sufficient funds at the time of the deposit.
Criteria: The Corporation is required to make monthly deposits to the replacement reserve in
accordance with its regulatory agreement.
Effect: The Corporation is not in compliance with its regulatory agreement.Recommendation: The Corporation should make the delinquent deposit. Additionally, the
Corporation should implement internal control sufficient to ensure that such deposits are made
each month.
Management Response: Management is in agreement with the finding and is in the process of
transferring the delinquent amount and implementing internal controls to prevent recurrence.