Finding 600682 (2022-001)

Section III - Federal Award Findings and Questioned Costs N. Special tests and provisions Finding 2022-001 CFDA: 14.157 Section 202 Direct Loan Criteria: Internal controls over compliance should be in place to ensure the deposit of surplus cash amounts into the residual receipts account occurs within ninety days after year end. Condition: A deficiency in internal control over compliance existed due to the prior year excess surplus cash amount not being deposited into the residual receipts account withing ninety days after the end of the annual fiscal period for which the surplus cash was calculated. Cause: The Project was not aware of the requirement. Effect: This deficiency resulted in the Project's noncompliance with the required deposit of surplus cash to the residual receipts account. Recommendation: The Project should establish procedures to ensure that surplus cash is deposited within ninety days after the end of the annual fiscal period for which the surplus cash is calculated. Views of Responsible Officials: Management agrees with the finding and will adhere to the auditor's recommendation.