Finding Text
2022-1 Deposits to Reserve for Replacement Account Sample Size: Twelve monthly deposits to the reserve for replacement account. Criteria: The regulatory agreement requires that monthly deposits be made to the reserve for replacement account. Condition: Five monthly payment into the Reserve for Replacement Account were not made, as required by the Regulatory Agreement. Cause: The Project lacked operating cash to make the required deposits during the year ended June 30, 2022. Effect: Sufficient funds would not be set aside for replacement expenditures. Recommendation: The missing monthly payments should be deposited into the Reserve for Replacement Account immediately. Response: We concur with the recommendation. Two of the delinquent payments have been made as of September 30, 2022 and the remaining 3 payments will be made as of October 31, 2022.