Finding 1095412 (2021-001)

Finding 2021-001 Condition: The Corporation did not deposit surplus cash at June 30, 2020 to the residual receipts reserve. Recommendation: The Corporation should make the delinquent deposit. Additionally, the Corporation should implement internal control sufficient to ensure that such deposits are made timely, if required. Management Response: Management is in agreement with the finding and is in the process of transferring the delinquent amount and implementing internal controls to prevent recurrence. Cause: Internal controls over time remission of surplus cash were not effective to identify that the deposit was not made. Criteria: The Corporation is required to deposit surplus cash to the residual receipts reserve in accordance with its regulatory agreement. Effect: The Corporation is not in compliance with its regulatory agreement. Recommendation: The Corporation should make the delinquent deposit. Additionally, the Corporation should implement internal control sufficient to ensure that such deposits are made timely, if required. Management Response: Management is in agreement with the finding and is in the process of transferring the delinquent amount and implementing internal controls to prevent recurrence.