Finding Text
2022-002 SIGNIFICANT DEFICIENCY Condition: Deposits and payments made to/from the wrong accounts. Criteria: The Organization is required to make monthly deposits and escrow payments. The Organization is prohibited from making payments on behalf of other entities. Effect: Reserve underfunded. Context: Auditor noted during testing of journal entries and restricted cash accounts that some deposits were not made to the correct account and an expense was paid for the wrong entity. The error was corrected upon discovery. Cause: Staffing turnover Recommendation: A procedure be implemented to reconcile all deposits and transactions in a timely manner. 30