Finding Text
Finding 2024-001: Failure to Obtain Required Single Audit – USDA Community Facilities Loan. Criteria: In accordance with Uniform Guidance, a non-federal entity that expends $750,000 or more in federal awards during the fiscal year is required to have a Single Audit performed. For loan programs, expenditures include new loan proceeds received during the year and, for continuing compliance, will include outstanding loan balances at the beginning of the fiscal year as required for Schedule of Expenditures of Federal Awards. Condition: The District had federal expenditures related to its USDA Community Facilities Loan that exceeded the $750,000 threshold during the fiscal year ended December 31, 2024 and did not obtain a Single Audit. Cause:Management was not aware of the USDA Community Facilities Loan method of calculating federal expenditures for loan programs. Effect: Failure to obtain a required Single Audit represents noncompliance with federal regulations. Auditors’ Recommendation: Management should ensure proper identification and reporting of federal expenditures in accordance with Schedule of Expenditures of Federal Awards requirements. Management’s Response: Management acknowledges that it was not aware that the USDA Community Facilities Loan triggered Single Audit requirements at the time the loan was received. The District agrees with the finding and plans to implement procedures to monitor federal expenditures and ensure compliance going forward. Management will also work with its auditors to address the missed reporting requirement.