Issue: As of December 31, 2022, there are no deposits made to the reserve for replacements, totaling $2,480.
Trend: This lack of deposits indicates a potential ongoing issue with funding necessary reserves.
Follow-up: Review the funding process for the reserve and ensure timely deposits moving forward.
Finding Text
At December 31, 2022, deposits to the reserve for replacements account in a cumulative amount of $2,480 have not been made.
Corrective Action Plan
Management should transfer excess funds from the operating account to the reserve for replacements account and continue to work toward bringing the delinquent accounts current.