Finding 370788 (2022-002)

Reference Number: 2022-02 Finding: Surplus Cash Not Deposited By Due Date Category of Finding: Special Tests and Provisions Condition: The surplus cash for the year ended September 30, 2022 was not deposited into the residual receipts account by the deadline of December 31, 2022, which is 90 days after year end. Criteria: The regulatory agreement requires that surplus cash at the end of the year must be deposited into the residual receipts account on or before 90 days after the year end. Cause: The audit report for the year ended September 30, 2022 was not completed by the deadline and surplus cash at year end had not been calculated. Therefore, the surplus cash deposit was not made by the due date. Effect: Levi Towers, Inc. (the “Project”) has not met the requirement related to timely deposit of surplus cash and is not in compliance with the regulatory agreement. Questioned Costs: None Recommendation: We recommend the Project develop specific procedures to ensure that surplus cash is calculated and deposited into the residual receipts account within 90 days of the year end. Management Response: Management will develop procedures to ensure that surplus cash is deposited by the deadline