Cash Management Federal Award and Specific Award Identification: U.S. Environmental Protection Agency Drinking Water State Revolving Fund, CFDA 66.468 GEFA Loan DW2022031 GEFA Loan DWLSL2023047 Statement of Condition: During fieldwork, we noted invoices submitted for reimbursement to GEFA under the federally-funded Drinking Water State Revolving Fund were paid by Rabun County and did not represent obligations to the Authority. Criteria: Requested payments from non-Federal entities that receive reimbursement payments under cost reimbursement contracts under the Federal Acquisition Regulation must be in compliance with 48 CFR section 52.216-7(b). Effect of Condition: The Authority is out of compliance with the terms and conditions of the GEFA loan and the associated asset(s) are understated. During the course of the audit, the Authority communicated with Rabun County and the costs paid by the County were granted to the Authority as capital contributions. Cause of Condition: The Authority submitted invoices paid directly by the Rabun County Board of Commissioners to GEFA in loan draw requests. Questioned Costs: GEFA Loan DW2022031 $167,673 GEFA Loan DWLSL2023047 $63,055 Recommendation: We recommend that the Authority review all invoices submitted to GEFA for loan draw-down requests to ensure each request includes only expenses paid by the Authority. Response: The Authority will review all invoices submitted to GEFA for loan requests and ensure each loan requests includes only expenses paid by the Authority.