Finding Text
Finding 2022.002 Reserve Account Condition: The Organization is required to have a reserve account and set aside $9,817 each month until they have accumulated sum of $1,177,968. It was noted during review of the reserve account that the required monthly deposits were not made and as September 30, 2022 and the reserve account was underfunded by $28,157. Criteria: The OMB Compliance Supplement indicates a compliance requirement that the organization maintain the reserve account in accordance with the loan resolution. Cause: Management oversight. Effect: The Organization is not in compliance with federal regulations surrounding the Community Facilities Loans and Grants. Recommendation: We recommend management and those charged with governance continue to monitor the debt reserve account.