Finding 1089139 (2023-003)

Finding 2023-003 Program Name/CFDA Title: Community Facilities Loans and Grants Federal Assistance Listing Number: 10.766 Federal Agency: U.S. Department of Agriculture Rural Development Type of Finding: Noncompliance, Significant Deficiency Compliance Requirement: Reporting Condition: The District did not meet its financial reporting obligations under the grant during the year. During the audit, it was determined the District did not file the Data Collection Form (SFSAC) by the due date of July 31, 2024. Criteria: The District is required to file the Data Collection Form (SFSAC) within 30 days after receipt of the audit or 9 months after year-end, whichever is first. Cause: The Data Collection Form (SFSAC) was not filed within the required period. Effect: The District was not in compliance with federal regulations and the USDA loans and grants. Recommendation: We recommend management monitor federal grant expenditures, including passthrough grants so it is aware when $750,000 or more in federal grants were expended and a Uniform Guidance audit is required. View of responsible officials: Management agrees with the finding and will review and update its policies and procedures as necessary to ensure future Data Collection Form (SFSAC) filing deadlines are met.