Finding Text
Criteria: The Organization is responsible for depositing $10,343 into a separate general ledger account every month to fund the restricted debt service reserve and they must obtain permission before using the funds. Condition: During our review of compliance with the Community Facilities Loans & Grants, we identified that the funds were not deposited for several of the required months and the funds were not in a separate general ledger account. Cause: The requirement was not met due to an oversight by management. Effect: As a result the agency reserves the right to withdraw Agency funding. Recommendation: The Organization should setup a separate general ledger account to separate the required funds, and have a review process to verify that the deposits were made properly. Client Response: The Organization has automated a reoccurring ACH that deposits $10,343 into the reserve account every month and funded the balance to the required amount. The bookkeeping company and management have added a reserve account review to their monthly checklist.