Core Issue: The organization is not following the terms of its loan agreements.
Impacted Requirements: Lack of reconciliation for excess cash and missing documentation for low-income housing qualifications.
Recommended Follow-Up: Management should implement cash reconciliations and gather necessary documentation to ensure compliance.
Finding Text
Requirement set forth in the Loan Agreements Type of Finding : Significant Deficiency in Internal Control Over Compliance Criteria: The Organization does not comply with the terms of its loan agreements. Condition and Context: During the audit engagement, it was identified that the organization does not perform a reconciliation of excess cash for cash reserves and does not obtain supporting documentation for qualifying low-income housing individuals. Effect: Failure to comply with the loan agreement. Cause: Failure in the implementation of controls throughout the year. Repeat finding: The finding is NOT a repeat finding. Recommendation: We recommend that management implement a reconciliation of excess cash and obtain supporting documentation to validate low-income housing individuals to comply with the requirements set forth in the loan agreements. Views of Responsible Official: Management will review its controls and adopt a formal reserve reconciliation and obtain the required documentation.
Corrective Action Plan
1-Develop a reconciliation process for excess cash reserves to ensure compliance with loan agreements 2-Implement procedures to obtain and maintain documentation for qualifying low-income housing individuals. 3-Train staff on compliance requirements for loan agreements and reconciliation processes.
Categories
Cash ManagementSignificant DeficiencyMatching / Level of Effort / EarmarkingInternal Control / Segregation of Duties