Finding Text
Federal Program: 10.766 – Community Facilities Loans and Grants
Criteria: The Organization was required to obtain a fidelity bond covering all persons responsible for the handling and accounting of system income.
Condition: The Organization failed to obtain a fidelity bond.
Cause of the Condition: A fidelity bond was not obtained.
Effect: The Organization is not in compliance with the standards set by the U.S. Department of Agriculture.
Questioned Costs: None noted.
Perspective: The bond is required to be for $98,112 or one years worth of payments.
Recommendation: Procedures should be put in place to ensure compliance with all Federal funding requirements.