Finding Text
Finding No. 2023-002 – Replacement Reserves Funding
Information on the Universe Population Size
Replacement reserve activity for the year ended June 30, 2023.
Sample Size Information
N/A Criteria
The regulatory agreement requires monthly payments to fund the replacement reserve.
Statement of Condition
The Replacement Reserve account was underfunded by $96.
Cause
The cause of the missing payments was due to management oversight.
Effect or Potential Effect
The Replacement Reserve account was underfunded by $96.
Auditor Non-Compliance Code
N- Reserve for Replacements Deposits
Questioned Costs
There were no known questioned costs.
Perspective
The finding represents an isolated instance of management oversight.
Repeat finding
No
Recommendations
Auditor recommends that the Entity fund the reserve immediately to make it current and create a better system of controls to ensure no future occurrences. Auditor notes deposit was made prior to issuance of the financial statements. No further action required.
Views of Responsible officials We agree with this finding and have taken steps to prevent this from occurring in the future and will make an additional deposit to fully fund the replacement reserve bank account and will establish a system of automatic monthly payments in order to properly fund the account going forward. Additionally, the senior accountant on a monthly basis will review the replacement reserve account to ensure automatic payments are timely. No further action is required.