Issue: The authorized replacement reserve was not preapproved, which violates our internal controls.
Trend: This lack of preapproval could lead to unauthorized expenditures and financial discrepancies.
Follow-up: Ensure all future replacement reserves are preapproved and review current processes for compliance.
Finding Text
2023-001 Authorized replacement reserve not preapproved.
Corrective Action Plan
We concur with the above finding and this finding has been reviewed and studied for the purpose of ensuring this does not take place in the future. Additional controls/procedures will be in place to ensure this does not happen in the future.