Finding Text
Condition: The Organization has established internal controls over compliance for the major federal programs; however, these controls failed for the reserve for replacements account deposit.
Effect: The Organization did not follow it’s established controls for compliance with the requirement to make monthly deposits into the reserve for replacements account, and as a result, the Organization is not in compliance with this requirement of the federal programs.
Cause: The Organization bypassed the established controls over this compliance requirement.
Criteria: The Organization should have control procedures in place to ensure all compliance requirements applicable to the federal programs are met.
Questioned Costs: There are no questioned costs associated with this finding.
Context: During our examination of compliance with all program requirements we noted one instance of internal controls not preventing noncompliance with the requirements of the federal program.
Recommendation: We recommend that the Organization ensure that the appropriate controls established over the federal program compliance requirements are being followed.
Views of Responsible Officials and Planned Corrective Actions: The Organization agrees with the finding and the auditor’s recommendations will be adopted.