Finding 7945 (2023-002)

Condition: The Organization has established internal controls over compliance for the major federal programs; however, these controls failed for the reserve for replacements account deposit. Effect: The Organization did not follow it’s established controls for compliance with the requirement to make monthly deposits into the reserve for replacements account, and as a result, the Organization is not in compliance with this requirement of the federal programs. Cause: The Organization bypassed the established controls over this compliance requirement. Criteria: The Organization should have control procedures in place to ensure all compliance requirements applicable to the federal programs are met. Questioned Costs: There are no questioned costs associated with this finding. Context: During our examination of compliance with all program requirements we noted one instance of internal controls not preventing noncompliance with the requirements of the federal program. Recommendation: We recommend that the Organization ensure that the appropriate controls established over the federal program compliance requirements are being followed. Views of Responsible Officials and Planned Corrective Actions: The Organization agrees with the finding and the auditor’s recommendations will be adopted.