Finding Text
Criteria: All disbursements from the replacement reserve account were properly authorized by the USDA. Condition: A withdrawal from the replacement reserve account was not approved by the USDA. Cause: Management did not properly implement controls over compliance to ensure that no withdrawals are made from the replacement reserve account prior to approval from USDA. Effect of Potential Effect: The replacement reserve account had a withdrawal without USDA’s approval. Perspective: The Village made only one withdrawal from this account during the year. Questioned costs: $25,000 Repeat Finding, if applicable: Yes, similar finding was identified during last year. Recommendation: We recommend that controls are implemented to ensure the proper approvals are received for all withdrawals from restricted accounts such as the replacement reserve. View of Responsible Officials and Planned Corrective Action: Management agreed with the recommendation and will ensure all proper approvals are received prior to any withdrawals from the replacement reserve.