Finding Text
2022-1 ? Delinquent deposits to the replacement reserve Statement of Condition During the year ended June 30, 2022, the project did not make the required monthly deposits to the replacement reserve in the amount of $141,051. The project is required to make monthly deposits to the reserve in the amount of $141,051. Criteria The regulatory agreement requires that the project make monthly deposits to its replacement reserve. Cause The Client did not properly monitor the replacement reserve account to determine that the deposits were not made. Effect or Potential Effect Failure to make monthly payments resulted in an underfunding the replacement reserve and a violation of the regulatory agreement. Recommendation Management should properly monitor the replacement reserve account to ensure deposits are made as required. Reporting View of Responsible Officials Management of Juliette Corporation agrees with the finding and the auditor?s recommendations have been adopted.