Finding Text
Statement of Condition
The Corporation did not make all the required replacement reserve deposits during the year ended December 31,
2023 causing the replacement reserve cash account to be underfunded by $69,604 at December 31, 2023.
Criteria
The Corporation is required to fund the replacement reserve in accordance with RD requirements and agreements.
Effect
The Corporation is out of compliance with RD regulations.
Cause
The underfunding of the replacement reserve cash account was the result of an inadvertent bookkeeping oversight.
Recommendation
We recommend the Corporation makes the required monthly deposits to the replacement reserve cash account and
transfer $69,604 to the replacement reserve cash account.
Reporting Views of Responsible Officials
Management is aware that the replacement reserve account needs to have deposits made during the year to comply
with RD regulations and will transfer $69,604 to the replacement reserve cash account.