Finding Text
Statement of condition: The Company did not maintain an operating cash account. Criteria: The Company is required to maintain a minimum number of bank accounts, one of them being an operating account. Cause: The situation exists due to the Tenant making payments directly to the bank on behalf of the Company in lieu of rental payments. Effect or potential effect: As a result of the Company?s operating account not being used, this resulted in the Company not meeting the minimum number of bank accounts requirement. Auditor non-compliance code: Z Questioned costs: N/A. Reporting views of responsible officials: Management of the Company concurs with the finding and agrees with the recommendations. The Company plans to use the bank account as an operating account and have the Tenant make payments directly to this account. The Company will then make the required payments directly from this operating account. Recommendations: Recommendation was made to the Company to have the Tenant make rent payments to the Company to its operating account who will then make the necessary payments from its? own operating account.