Finding Text
SIGNIFICANT DEFICIENCIES (CONTINUED): U.S. Department of Agriculture / Community Facilities Loans and Grants / CFDA # 10.776 Finding 2022-002 ? Form RD-442-2 Quarterly Reporting Requirement Criteria: The U.S. Department of Agriculture utilizes Form RD-442-2 for the borrower to submit its annual budget, quarterly amounts, and certain supplemental information. Borrowers are allowed to submit another format in lieu of completing the form as long as it is compatible with all elements being included from the form. The Organization utilizes a Microsoft Excel workbook template in lieu of the form. The design of the Microsoft Excel template acts as an internal control to ascertain that the form?s required reporting elements are inclusive. Condition: The Organization?s workbook does not contain: 1) Schedule 1 Page 1 columns 2, 3, and 6 and rows 23 and 26; 2) Schedule 1 Page 2 #6 and #7 and 3) from the Letter of Conditions dated September 8, 2017, [4th quarter only] a list of the names, addresses, and terms of office of the Board Chairperson and Board of Directors in order to include all elements for the quarterly reporting requirements. Cause: Management believed that its format was substantially compatible and had requested feedback from the U.S. Department of Agriculture with no response. Management assumed that format was acceptable based on the fact that no feedback was being provided with its quarterly, timely submissions. Potential Effect: It is possible that if the U.S. Department of Agriculture was relying on the reporting for certain decisions, then the missing information could impact those decisions negatively. Questioned Costs: None identified. Recommendation: Management should incorporate the missing elements to its Microsoft Excel template formats to ascertain that all elements of the form are inclusive for the required annual reporting. Views of Responsible Officials: Management agreed that the missing elements were absent from its template and will add them into the template for all future annual required reporting.