Finding Text
Information on the federal program – Community Facilities Loans and Grants Cluster; Federal Assistance Listing No. 10.766; U.S. Department of Agriculture Criteria or specific requirement – Continuing Compliance (RD Instruction 1942-A section 1942.17(q)(4) and 1942.17(q)(2)) Condition – The Medical Center is required to submit annual audited financial statements to the U.S. Department of Agriculture 150 days subsequent to year-end and prior to the beginning of each fiscal year, submission of an annual budget. The audited financial statements as of and for the year ended June 30, 2024, were due to the U.S. Department of Agriculture by November 27, 2024, and were not submitted until January 2026. The annual budget for the year ending June 30, 2026 was due by June 30, 2025, and was not submitted until January 2026. Cause – The Medical Center was unable to produce support for timely submitted audited financial statements and the annual budget. Effect or potential effect – Audited financial statements and the annual budget were not timely submitted. Questioned costs – None. Context – In testing the timely submission of the audited financial statements and annual budget, the Medical Center was unable to locate or provide support showing that the audited financial statements and annual budget were submitted to the U.S. Department of Agriculture by the due date. Identification as a repeat finding, if applicable – Not applicable Recommendation – We recommend management develop a procedure to ensure that the audited financial statements and annual budget are timely submitted to the U.S. Department of Agriculture. Views of responsible officials and planned corrective actions – Management agrees with the recommendation. The Medical Center will create calendar appointments prior to required deadline for submission of the audited financial statements and annual budget for the responsible personnel including the chief financial officer.