Finding Text
Finding No. 2022-001 Statement of Condition: The Corporation failed to make all 12 monthly deposits into the replacement reserve account. The account is underfunded by $2,728 at December 31, 2022. Criteria: The Corporation is required to make monthly deposits to the replacement reserve account in accordance with the regulatory agreement. Questioned Costs: Not applicable Effect: The Corporation is not in compliance with the regulatory agreement. Cause: The Corporation failed to make two months of required monthly deposits to the replacement reserve account due to cash flow issues. Recommendation: The Corporation should deposit the required funds into the replacement reserve account when funds are available. Management Response: Management agrees with the finding. Subsequent to year end, funds were transferred to the reserve account to cover the delinquent deposits.