Finding Text
United States Department of Agriculture Loan Agreement Criteria - The provisions of the USDA lan agreement require the Utilities to establish and maintain a reserve account, a sinking account and a short-lived asset account. Condition - A sinking account, rexerve account and a short-lived asset account were not established and maintained by the Utilities. Cause - The Utilites did not adequately review the USDA laon agreement requirements. Effect - The Utilities is not in compliance with the provisions of the USDA loan agreement. Recommendation - The Utilities should ensure complianc with the provisions of the USDA loan agreement. Specifically, the USDA should establish and maintain a simking account, rexerve account and a short-lived asset account in accordance with the USDA loan agreement. Response and Corrective Action Planned - We will attempt to implement the various aspects of this recommendation. Conclusion - Response acknowledged.