Finding Text
Item 2022-002 Material Weakness - Failing to remit the prior year’s 2021 and 2020 surplus cash balances to the residual receipts account within 60 days after year end.
Condition: The Organization did not remit the prior year’s surplus cash balance of $17,012 to the residual receipts account within 60 days following the end of the prior year. The Organization also did not remit prior year’s 2020 surplus cash of $18,386 to the residual receipts account within 60 days following the end of prior year 2020.
Criteria: Management of the Organization is responsible for complying with laws and regulations. Any surplus funds in the project funds account at the end of the year shall be deposited into a federally insured account within 60 days following the end of the year.
Cause: The Project did not remit the project’s prior year’s or current year’s surplus cash into the residual account within 60 days following the end of the fiscal year.
Effect: The Project owed the residual receipts account $17,102 and $18,386 at year end.
Recommendation: We recommend that management review the surplus calculation at year end and ensure that any excess is deposited into the residual receipts account within 60 days following the end of the fiscal year.
Auditee Response
and Action Plan: Management of the Project was aware they are responsible for complying with laws and regulations and that they are to remit any surplus cash funds to the residual receipts account within 60 days following the end of the fiscal year. Management remitted the 2021 excess of $17,102 on December 14, 2022. Management remitted the 2020 excess of $18,386 on March 18, 2022.