Finding Text
Non-Compliance ? Failure to Undergo the Required Single Audit Critera: 2 CFR, Part 200, Subpart F states that a non-Federal entity that expends more than $750,000 or more during the entity?s fiscal year in Federal Awards must undergo a Single Audit. Single Audits are due to be submitted to the Federal Clearinghouse within 30 days after the audit report becomes available but no later than 9 months after the end of the entity?s fiscal year. Condition: During the year ending September 30, 2021, the entity expended more than $750,000 in Federal awards but did not undergo a Single Audit by the due date. Context/Cause: During the year ending September 30, 2021, the entity obtained a loan commitment from the United States Department of Agriculture Rural Utilities Service under the Water and Waste Disposal Systems Direct Loan Program. This program requires interim financing to finance the construction and expenditures funded by this required interim financing are considered Federal expenditures according to the terms of the agreement. The expenditures under this and other federal programs exceeded $750,000 during the fiscal year ended September 30, 2021. Effects: The required Single Audit was not performed. Recommendation: We recommend that management and the Board review all loan commitments, grant agreements, and other funding terms and conditions and insure that all required reports and audits are performed. Auditee?s Response: The Entity will insure that all agreements are carefully reviewed and will consult with external auditors about performing the required audits on a timely basis.