Core Issue: The Town has not set up a required short lived asset reserve fund as mandated by USDA loan documents.
Impacted Requirements: Non-compliance with USDA loan requirements due to lack of assessment for short lived asset needs.
Recommended Follow-Up: The Town should assess its short lived asset needs and establish the reserve fund as soon as possible.
Finding Text
Finding 2022-003 NON-COMPLIANCE AND SIGNIFICANT DEFICIENCY Criteria: USDA loan documents require the Town to establish a short lived asset reserve fund. The Town is responsible for assessing facilities short lived asset needs to establish this reserve account. Condition: The Town has not assessed the short lived asset needs or established a short lived asset reserve fund. Effect: The Town is not in compliance with USDA loan requirements. Cause: Oversight. Questioned Costs: There are no questioned costs associated with this finding due to the nature of the violation. Recommendation: The Town asses short lived asset needs and establish a short lived asset reserve fund. Views of responsible officials and planned corrective actions: The Council agrees with this finding and will adhere to the corrective action plan listed in this audit report.
Corrective Action Plan
Finding 2022-003 Name of Contact Person: Rita Maness, Town Clerk Corrective Action: Management will assess short lived asset needs and establish a short lived asset reserve fund. Anticipated Completion Date: Management will implement the above procedures immediately.
Categories
Significant DeficiencyMatching / Level of Effort / EarmarkingInternal Control / Segregation of Duties