Finding Text
2023-002 RESERVE ACCOUNT FUNDING
Criteria: The Project’s reserve account must be fully funded and maintained in a separate bank account.
Condition: During our audit testing, we noted that while the Project maintained a separate bank account
for reserves, it was not fully funded.
Cause: Yearly budgeted transfers were not made to ensure the account is fully funded.
Effect: Reserve bank account is underfunded.
Questioned Costs: None noted.
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.