Audit 367151

Finding 2024-003: Significant Deficiency over Reporting Program: Water and Waste Disposal Systems for Rural Communities Assistance Listing Number: 10.760 Federal Agency: U.S. Department of Housing and Urban Development Criteria: Per compliance requirements for the program, Form RD 442-2, Statement of Budget, Income and Equity and Form RD 442-3, Balance Sheet, are required to be submitted to the granting agency. An annual audit may be submitted in lieu of these forms. Condition: The required forms were not submitted during fiscal year 2024. While an annual audit was conducted, it was not submitted to the grantor in lieu of the required forms. Cause: The Village was not aware of this requirement. Questioned Costs: None. Effect: The Village has not met the reporting requirements of the grant which could impact the current award or future awards from the federal agency. Recommendation: The Village should review the terms and conditions of the grant to gain an understanding of the requirements and implement processes to ensure all required reports are submitted in a timely manner. Views of Responsible Officials: The Village accepts the finding. The Village is actively working with USDA personnel to submit the required reporting documents.