Finding Text
Type of Finding: Significant Deficiency in Internal Control over Compliance
Criteria or specific requirement: Surplus cash payments must be made to the residual receipts account.
Condition: The Project made the 2024 surplus cash payment to the reserve for replacement account instead of the residual receipts account.
Questioned costs: $38,536
Context: During the audit, it was determined that the Project deposited the 2024 surplus cash payment into the wrong account.
Cause: Management oversight.
Effect: The 2024 surplus cash deposit was made into the reserve for replacement account instead of the residual receipts account.
Repeat finding: No
Recommendation: We recommend that management check which accounts it is making payments to.
Views of responsible officials: Management agrees. Subsequent to year-end, the 2024 surplus cash payment was transferred to the residual receipt account.