Finding Text
Criteria: According to the Regulatory Agreement, The Organization is required to make monthly deposits into its Reserve for Replacement account.
Condition:The Organization did not make all required deposits into the Reserve for Replacements bank account in a timely manner.
Cause: The Organization received a waiver of monthly deposits for the period from March 1, 2022 to August 31, 2022, at which time the Organization was required to begin making deposits again. A process control to ensure the restoration of automatic transfer of deposits from the operating account to the replacements reserve on a monthly basis was not in place.
Effect: Deposits for seven of the twelve months of the year were not made timely. Therefore, the Organization is not in compliance with the Regulatory Agreement.
Recommendation: We recommend management implement a control to ensure the monthly transfer is completed automatically and in accordance with the Regulatory Agreement.
Views of Responsible Officials: The Organization agrees with the finding and the recommendation will be implemented. Controls implemented include scheduling of automatic transfers to the reserve for replacement savings account as well as updating our treasury standard operating procedures to ensure funds are available for the transfer.
Condition Status: In Progress
Repeat Finding: No