Finding Text
Criteria: The Organization is required to maintain a calculated debt reserve fund based on annual debt payments each year as stated in the Letter of Conditions. Condition: During the audit, we identified the Organization did not maintain sufficient funds in the debt reserve account. Cause: The required monthly transfers did not occur during the fiscal year. Effect: As a result of the absent transfers, the debt reserve fund was not funded to the required amountas of September 30, 2025. Recommendation: The Organization should create a plan to bring the balance into the required amount and have procedures in place to make the monthly transfers. Client Response: We have discussed our plan to bring the debt reserve fund back to current with the governing authority and have established a process to have the monthly transfers completed.