Finding 1134510 (2024-002)

Condition: During 2024, the Project transferred $79,620 from operating cash to cash-entity in excess of allowable surplus cash calculations. Criteria: The Project may only distribute funds up to the amounts calculated based on semiannual and annual surplus cash calculations. Cause: Management oversight. Effect: The Project is in violation of its regulatory agreement. Recommendation: The Project should refund operating cash for the distributions in excess of allowable surplus cash calculations. View of Responsible Officials: Management agrees with recommendation and will refund operating cash.