Finding Text
Finding No. 2022-008: Replacement Reserves (Significant Deficiency) Statement of condition Special Tests and Provisions For three months of the fiscal year, the monthly replacement reserve deposit was funded in the subsequent month. Criteria The Regulatory Agreement requires a monthly deposit of $33 in the replacement reserve. Cause The monthly replacement reserve transfer was delayed by several days into the subsequent month due to it being on a set interval of time rather than on a monthly date. Effect Late deposits to the replacement reserve could result in underfunding of the replacement reserve. Recommendation Management should review and enhance policies, procedures and internal controls to ensure that the replacement reserve deposits are made timely. Identification of repeat finding The finding is a repeat of Finding No. 2021-001. Auditor non-compliance code S - Internal control deficiencies Questioned costs None Finding resolution status Remediated subsequent to year end. Reporting views of responsible officials and planned corrective actions Management has arranged for transfers to be done on the 25th of every month manner and has put in place controls to ensure such transfers are done every month as required.