Finding Text
Statement of Condition: Replacement reserve account was underfunded at year end. Cause: Monthly deposits are required to be made into the replacement reserve account throughout the year. During the year, the amount for a specific deposit was under the required deposit amount. Effect: Replacement reserve balance is under the compliance amount. Auditor Non-Compliance Code: N - Reserve for Replacements Deposits. Questioned Costs: $30. Reporting View of Responsible Officials: The Organization agrees with the finding. The auditor's recommendations are in the process of being implemented. Context: Review of the replacement reserve activity showed that the client had not deposited the required amount into the account. Recommendation: Training of staff should be performed to bring the staff up to date with the implementation of all replacement reserve compliance requirements.