Answer: Monthly deposits to the replacement reserve were not made after management changed.
Trend: Only $3,850 was deposited in the year before the management change, indicating a decline in compliance.
List: Follow up on the missed $4,820 deposits and establish a plan to ensure future compliance with deposit requirements.
Finding Text
Monthly deposits totaling $4,820 should have been made to the replacement reserve during 2024. After the change in management, deposits were not made. Only $3,850 of deposits were made during the year prior to the change in management.
Corrective Action Plan
New management has taken over and will make the delinquent deposit to the replacement reserve of $770 and establish transfers for the monthly deposit amount.