Finding Text
Condition: Required monthly transfers totaling $32,600 to the replacement reserve fund as required by the Regulatory Agreement with USDA were not made during the year due to lack of funds available in the operating account. Criteria: The Regulatory Agreement with USDA requires $2,717 to be transferred to the replacement reserve account monthly from the operating account. Effect: The Project was not in compliance with the Regulatory Agreement with USDA. Recommendation: We recommend that the Organization make the delinquent transfers to the replacement reserve account as soon as funds are available. Response: The Organization will make the required transfers of $4,997 to the replacement reserve account as soon as funds are available. Conclusion: Response accepted. Questioned Costs: $-