FAC Explorer

Finding 1214173 (2025-002)

Material Weakness Repeat Finding
Requirement
M
Questioned Costs
-
Year
2025
Accepted
2026-05-07
Audit: 400888
Organization: PANHANDLE RURAL ELECTRIC MEMBERSHIP ASSOCIATION (NE)
Auditor: DECORIA & COMPANY PC

AI Summary

  • Core Issue: The Association failed to secure an itemized list of project expenditures and certification from the loan recipient.
  • Impacted Requirements: This oversight violates the requirement for proper documentation of loan proceeds usage.
  • Recommended Follow-Up: Ensure future loans include both an itemized expenditure list and recipient certification to comply with regulations.

Finding Text

The Association did not obtain an itemized list of project expenditures for approved purposes from loan proceeds or a certification from the ultimate recipient of the loan certifying that all proceeds of the loan were expended on approved purposes as shown on the list of project expenditures.

Corrective Action Plan

Effective immediately, management will review all requirements outlined in the Rural Economic Development Loan Agreement Form RD 4280-5 and assign performance of these requirements to specific individuals to perform. This will ensure that all requirements of the Association, as intermediary, are met.

Categories

Matching / Level of Effort / Earmarking

Programs in Audit

ALN Program Name Expenditures
10.854 RURAL ECONOMIC DEVELOPMENT LOANS AND GRANTS $2.00M