Finding 405 (2023-001)

Condition: We noted that the required deposit to the reserve for replacements account was not made before the end of the current fiscal year. Effect: The Organization was not in compliance with the requirement to make the required deposit into the reserve for replacements account in a timely manner. Cause: The minimum required deposit was not made until after the current fiscal year end. Management was aware of the amount required to be deposited; however, there were insufficient funds available in the operating account at year end. Criteria: The Organization should make the required deposit to the reserve for replacements account on a timely basis. Questioned Costs: There are no questioned costs associated with this finding. Context: $1,681 of the required deposit should have been made by June 30, 2023. Recommendation: We recommend that the Organization ensure that the required deposit to the reserve for replacements account be made on a timely basis. Views of Responsible Officials and Planned Corrective Actions: The Organization agrees with the finding and the auditor’s recommendations will be adopted.