Finding Text
Finding Reference Number: 2022-001 Type of Finding: FA Finding Resolution Status: In Process Information on Universe Population Size: The finding was not a result of a sampling procedure. Sample Size Information: The finding was not a result of a sampling procedure. Identification of Repeat Finding and Finding Reference Number: This is not a repeat finding. Criteria: Disbursements from the replacement reserve must be used for the approved purpose. Statement of Condition: The Project received $18,936 in replacement reserve funds to perform boiler system repairs. The project expended $5,500 for this purpose. Subsequently, the Project received additional funds from the replacement reserve to replace the same boiler system. As a result, the difference of $13,436 should be returned to the replacement reserve. Cause: The Project elected to replace the system instead of repair, but did not return replacement reserve funds for the repair back to the replacement reserve account. Effect or Potential Effect: Replacement reserve is deficient. Auditor Non-Compliance Code: Z Questioned Costs: There are no questioned costs. The finding does not relate to an undocumented transaction or unreasonable expenditure. Reporting Views of Responsible Officials: Management agrees with the finding. The unexpended funds will be returned to the replacement reserve in the amount of $13,436. Context: The Project received $18,936 in replacement reserve funds to perform boiler system repairs. The project expended $5,500 for this purpose. Subsequently, the Project received additional funds from the replacement reserve to replace the same boiler system. As a result, the difference of $13,436 should be returned to the replacement reserve. Recommendation: The funds released but unexpended should be returned to the replacement reserve account. Auditor's Summary of the Auditee's Comments on the Findings and Recommendations: Management agrees with the finding. The unexpended funds will be returned to the replacement reserve in the amount of $13,436. Response Indicator: Agree Completion Date: August 12, 2022 Response: Management agrees with the finding. The unexpended funds will be returned to the replacement reserve in the amount of $13,436.