Finding 1081022 (2022-003)

2022-003 Reporting Federal Agency United States Department of Agriculture Assistance Listing Number 10.766 – Community Facilities Loans and Grants Criteria [ ] Significant Deficiency [X] Material Weakness [X] Compliance Finding Under the terms and conditions of the District’s loan with the United States Department of Agriculture (USDA), the District is required to submit annual audited financial statements to the USDA. Condition There is no evidence of audited financial statements being submitted to the USDA during 2022. Context This finding appears to be an isolated problem. Cause Correspondence records between the District and the USDA in 2022 were not retained. Effect The District is not in compliance with the USDA compliance requirements and the terms and conditions of the loan. Recommendation We recommend the District submit annual audited financial statements to the USDA in a timely manner after they are issued. We also recommend the District retain all future correspondence with the USDA regarding the submission of audited financial statements. Views of responsible officials and planned corrective actions The District will save the emails that show they sent the audit to the USDA in the audit folder.