Finding 1218159 (2025-006)

Material Weakness Repeat Finding
Requirement
N
Questioned Costs
-
Year
2025
Accepted
2026-06-22

AI Summary

  • Core Issue: Required reports were not sent to the USDA, risking funding withdrawal.
  • Impacted Requirements: Missing reports include FYE 12-31-2024 Audit, FY 2026 Budget, and quarterly reports for 2025.
  • Recommended Follow-Up: Implement a checklist and monthly reminders to ensure timely submission of all required reports.

Finding Text

Criteria: The Organization is responsible for sending the following reports to the USDA: FYE 12-31- 2024 Audit, FY 2026 Budget, Quarterly reports for 3/30/2025, 6/30/2025, and 9/30/2025, and Certification of Insurance. Condition: During our review of compliance with the Community Facilities Loans & Grants, we identified that the required reports were not sent to the USDA. Cause: The requirement was not met due to an oversight by management. Effect: As a result the agency reserves the right to withdraw Agency funding. Recommendation: The Organization should create a checklist to track/remind management to send the required reports to the USDA as well create a monthly electronic calendar reminder Client Response: The facility has submitted the required reports and added items to their monthly checklist and calendar for future reporting periods

Corrective Action Plan

Criteria: The Organization is responsible for sending the following reports to the USDA: FYE 12-31-2024 Audit, FY 2026 Budget, Quarterly reports for 3/30/2026, 6/30/2 025, and 9/30/2025, and Certification of Insurance. Condition: During our review of compliance with the Community Facilities Loans & Grants, we identified that the required reports were not sent to the USDA. Cause: The requirement was not met due to an oversight by management. Effect: As a result the agency reserves the right to withdraw Agency funding. Recommendation: The Organization should create a checklist to track/remind management to send the required reports to the USDA as well create a monthly electronic calendar reminder Client Response: The facility has submitted the required reports and added items to their monthly checklist and calendar for future reporting periods. Conclusion: Response accepted.

Categories

Reporting Matching / Level of Effort / Earmarking Internal Control / Segregation of Duties

Other Findings in this Audit

  • 1218156 2025-003
    Material Weakness Repeat
  • 1218157 2025-004
    Material Weakness Repeat
  • 1218158 2025-005
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
10.766 COMMUNITY FACILITIES LOANS AND GRANTS $27.68M