Answer: Monthly deposits to the replacement reserve are short by $7,200.
Trend: This deficiency indicates a consistent underfunding issue that could impact future reserve availability.
List: Recommend reviewing funding strategies and adjusting future deposits to meet required amounts.
Finding Text
Required monthly deposits to the replacement reserve are deficient in the amount of $7,200.
Corrective Action Plan
Management agrees with the finding. The replacement reserve deficiency will be funded in the amount of $7,200. Management will ensure that the replacement reserve deposits are made on a timely basis in the future.