Finding Text
Finding 2022-001 Criteria: The Organization must establish a reserve bank account as stated in the program compliance requirements. Condition: The Organization did not open a reserve bank account as required by the program compliance requirements. Context: During substantive testing of cash and the performance of dual-purpose testing of compliance and controls over compliance, it was determined that the Organization had not met the requirement to establish a reserve bank account. Effect: Not establishing a reserve bank account is a stated compliance requirement; this would have the effect of program noncompliance. Cause: The Organization received a loan from United States Department of Agriculture (USDA) Rural Development (RD) and management was not aware of the compliance requirement. Recommendation: The Organization should establish a reserve bank account and make the required deposits.