Finding Text
Criteria: Pursuant to the Regulatory Agreement, any residual receipts realized from the operation of the Project shall be deposited into a separate residual receipts account within 90 days after year end.
Statement of Condition: Residual receipts in the amount of $13,031 as of March 31, 2024, was not deposited into a separate residual receipts account within 90 days after year end.
Cause: The Company had cash flow shortfalls after paying other operating expenses.
Effect: The Company was not in compliance with the Regulatory Agreement relative to the required residual receipts deposits.
Context: This was not a sampling audit procedure.
Amount of Questioned Costs $0
Recommendation: Make the deposit to the residual receipts account as required and ensure that all future residual receipts amounts are deposited within 90 days after year end.
Auditors’ Non-Compliance code: B - Owners must deposit residual receipts into a separate account within 90 days after year end.
Reporting Views of Responsible Officials: The Company could not make the residual receipt deposit due to cash shortfalls.
Auditors’ Summary of Auditee’s Comments on the Findings and Recommendations: Auditee agrees with auditors’ findings.
Response Indicator Accepted
Completion Date Open
Response: Management will make the required residual receipts deposit as soon as available cash flow allows.
Contact Person David Cooper