Issue: As of December 31, 2021, there were no deposits made to the reserve for replacements, totaling $610,030.
Trend: This lack of deposits indicates a potential ongoing issue with funding necessary for future replacements.
Recommendation: Follow up to ensure timely deposits are made to the reserve to meet future replacement needs.
Finding Text
Condition/Context At December 31, 2021, deposits to the reserve for replacements account in a cumulative amount of $610,030 have not been made.
Corrective Action Plan
Management will transfer excess funds from the operating account to the reserve for replacements account and continue to work toward bringing the delinquent accounts current.