Finding Text
Condition & Criteria: In accordance with the promissory notes, Letters of Conditions and Loan Resolution Documents, the Foundation is required to make monthly deposits into a reserve account. One of the monthly deposits was not made and the account balance fell short of the requirement at year end.
Cause: Lack of oversight on timing of monthly deposit resulting in deposit being made late.
Effect: Noncompliance with executed loan documents.
Auditor’s Recommendation: We recommend monitoring of the compliance requirements throughout the year and as part of the financial statement close process including reconciliation of all reserve accounts to ensure all have required amounts. In addition, we recommend and noted the Foundation has deposited the required amount into the account subsequent to year end.
Views of Responsible Officials and Planned Corrective Actions: The Foundation remedied the deficiency by depositing the required amount into the account and has an ongoing autopay set up to ensure the monthly amounts are deposited. In addition, the Foundation will reconcile the accounts regularly to ensure the requirement for the account is met.