Answer: The Company distributed $13,000 for litigation damages beyond its available surplus cash.
Trend: This indicates a potential pattern of overspending or mismanagement of cash reserves.
List: Recommend reviewing cash management practices and ensuring compliance with distribution limits.
Finding Text
During the year ended November 30, 2023, the Company distributed $13,000 for damages related to litigation issues in excess of surplus cash available for distribution.
Corrective Action Plan
Both Concord and the Ascendant Neighborhood Development Corp (ANDC) were unaware of the inability to pay damages and legal fees from the entity. Going forward we will ensure such payments are made by ANDC and not through the entity operating account. A receivable has been recorded for ANDC to return the funds to Mt Pleasant.