Answer: Funds were distributed prematurely, without confirming available surplus cash.
Trend: This practice could lead to cash flow issues and financial mismanagement.
List: Ensure future distributions are based on verified surplus cash to maintain financial stability.
Finding Text
Management distributed funds before surplus cash was demonstrated at the end of the annual and semi-annual fiscal periods.
Corrective Action Plan
Management has reviewed the loan requirements and will ensure that excess cash will not be pulled from the Project except as allowed under the Section 232 guidelines and at annual or semi‐annual intervals.