Finding 36369 (2022-001)

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Requirement
C
Questioned Costs
-
Year
2022
Accepted
2022-10-18
Audit: 25762
Organization: Church Street Estates Corp. (RI)
Auditor: D'ambra CPA

AI Summary

  • Core Issue: Project funds exceeded FDIC insurance limits by about $3,000.
  • Impacted Requirements: Funds must be fully insured or bank ratings monitored quarterly.
  • Recommended Follow-Up: Management should transfer funds or explore sweep accounts for full insurance coverage.

Finding Text

Finding 2022-001: Criteria - all project funds are required to be fully insured or the bank ratings monitored on a quarterly basis; Condition - project funds exceeded the FDIC insurance coverage by approximately $3,000 and the management agent did not monitor the bank?s ratings; Cause - management oversight; Effect - the project funds are subject to loss; Recommendation - the management agent should transfer funds to another institution or inquire of a sweep account to provide for full FDIC insurance coverage. Response: Management will review the options and make the required changes to provide for full insurance coverage.

Corrective Action Plan

Church Street Estates Corporation 7 Church Street Greenville, RI 02828 April 21, 2022 Mr. Craig D?Ambra, CPA 531 Harris Ave. Woonsocket, RI 02895 Dear Mr. D?Ambra, This letter is in response to the finding in the 3/31/2022 financial statements. The finding is: Finding 2022-001: Criteria - all project funds are required to be fully insured or the bank ratings monitored on a quarterly basis; Condition - project funds exceeded the FDIC insurance coverage by approximately $3,000 and the management agent did not monitor the bank?s ratings; Cause - management oversight; Effect - the project funds are subject to loss; Recommendation - the management agent should transfer funds to another institution or inquire of a sweep account to provide for full FDIC insurance coverage. Church Street Estates Corp. will monitor the banks rating on a quarterly basis and we will inquire with the bank on doing a nightly sweep of the accounts in order to have full FDIC insurance coverage. Sincerely yours, Clare Fortin Clare Fortin Director

Categories

Internal Control / Segregation of Duties

Other Findings in this Audit

Programs in Audit

ALN Program Name Expenditures
14.239 Home Investment Partnerships Program $500,000
14.157 Supportive Housing for the Elderly $117,053