Finding Text
The prior year surplus cash balance of $11,221 was not deposited into the residual receipts account.
Criteria. Paragraph 13(L) of the regulatory agreement defines residual receipts as, "Any cash remaining at the end of a semiannual or annual fiscal period after deducting from surplus cash the amount of all distributions as that term is defined herein and as limited by paragraph 6(e) hereof".
Cause. Unknown.
Effect. The corporation is in violation of the regulatory agreement.
Recommendation. We recommend that $11,221 be transferred from the operating account to the residual receipt account for the 2022 surplus cash.
Management Response. Management will request the necessary transfer be made from the operating account to the residual receipts account to correct this finding. Surplus cash deposits will be made in a timely manner going forward.