Finding Text
2024-002 - Significant Deficiency
Federal agency: U.S. Department of Agriculture (USDA): Rural Development
Federal program title: Community Facilities Loans and Grants
Assistance Listing No.: 10.766
Condition: The Reserve Account was underfunded at year-end.
Criteria: The USDA loan requires $29,336 be set aside into a Reserve Account annually until there is $293,362 accumulated.
Cause: Cash flow issues did not allow for proper funding in the Reserve Account.
Effect: The Hospital was in compliance with the terms of the USDA loan.
Recommendation: The Hospital should immediately fund the Reserve Account to the proper funding level required by the USDA loan.
Views of Responsible Officials: See management's corrective action plan: 2024-001