Finding Text
2024-001 U.S. Department of Agriculture, for the period January 1, 2024, through December 31, 2024, Assistance Listing #10.760 Water and Waste Disposal System for Rural Communities Condition: During the review of the District’s compliance with USDA reporting requirements, it was noted that the District was unable to provide documentation demonstrating that its annual budget was submitted to the USDA as required. Criteria: Per USDA Rural Development guidelines and the terms of the loan/grant agreement, recipients are required to submit their annual operating budget to USDA for review and approval. This ensures financial accountability and that the system remains self-sustaining. Cause: The District experienced the unexpected passing of its prior general manager, which significantly disrupted administrative continuity. As a result, current staff have faced challenges locating historical documentation, including records related to the submission of the annual budget to USDA. Effect: Failure to submit the annual budget to USDA may result in noncompliance with federal program requirements, potentially jeopardizing continued funding or support. It also limits USDA’s ability to monitor the financial health and sustainability of the system. Known Questioned Costs: None Likely Questioned Costs: None Recommendation: The District should implement procedures to ensure timely submission of its annual budget to USDA, including maintaining documentation of the submission and any related correspondence. The District should also consider designating a compliance officer or staff member responsible for federal reporting requirements.