FAC Explorer

Finding 1166260 (2025-001)

Material Weakness Repeat Finding
Requirement
N
Questioned Costs
-
Year
2025
Accepted
2025-12-23
Audit: 377329
Organization: Tongue River Valley Joint Powers Board (WY)
Auditor: CARVER FLOREK & JAMES CPA'S

AI Summary

  • Core Issue: The Board is not complying with the USDA loan reserve requirement due to financial difficulties.
  • Impacted Requirements: The Board must set aside one-tenth of one yearly payment until reaching an average annual loan installment.
  • Recommended Follow-Up: Review the Board's written response and consider alternative solutions for meeting the reserve requirement.

Finding Text

2025-001: Loan Reserve Requirement (Non-Compliance) Criteria: In accordance with USDA loan covenants, the Board is required to set aside an amount equal to one-tenth of one yearly payment until one average annual loan installment is reached. Condition & Cause: As a result of significant financial difficulties, the Board has been unable to meet the requirement to fund the reserve account. Effect: As a result, the Board is not in compliance with the reserve requirement. Recommendation: We recognize that it may not be possible for the Board to meet this requirement. Responsilbe Official's Response: Please see the last page of this report for the written response to this finding.

Corrective Action Plan

2025-001 Loan Reserve Requirement Non-Compliance The Chairman of the Tongue River Valley Joint Powers Board will continue to work with USDA-RD to address this issue. The Board and the USDA have received a purchase agreement from Montana Dakota Utilities Co. for the purchase of the Tongue River Gas system. The sale is pending approval for the Wyoming Public Service Commission.

Categories

Matching / Level of Effort / Earmarking

Programs in Audit

ALN Program Name Expenditures
10.766 COMMUNITY FACILITIES LOANS AND GRANTS $6.06M