2022-002 RESERVE ACCOUNT FUNDING
Criteria: The Project’s reserve account must be fully funded in accordance with the budget as approved by USDARD
and maintained in a separate bank account.
Condition: During our audit testing, we noted that while the Project maintained a separate bank account for reserve
funds, it was not funded in accordance with the budget.
Cause: Budgeted transfers were not made before yearend to ensure the account is fully funded.
Effect: Reserve bank account is underfunded.
Questioned Costs: None noted.
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2022-002 RESERVE ACCOUNT FUNDING (Continued)
Recommendation: The Project should implement controls to ensure that the reserve bank account is fully funded.
Management’s Views and Corrective Action Plan: Management will correct this when sufficient funds are able to
be transferred into the reserve account.
If you have any questions regarding this plan, please contact Matthew Scibek at 860-398-5425, or
matt@westfordmgt.com.