Finding Text
Finding Number: 2022-007 Information on the Federal Program: Federal Agency: United States Department of Agriculture Program Name: Intermediary Relending Program CFDA: 10.767 Federal Award Year: 2022 Specific Requirement: In accordance with Subtitle B ? Regulations of Department of Agriculture, Chapter XLII ? Rural Business ? Cooperative Service and Rural Utilities Services, Department of Agriculture, Part 4271 Direct and Insured Loan Making, Subpart D Intermediary Relending Program, Subpart 4274.333 (a) (7)(ii), Workman?s compensation insurance on ultimate recipients (borrowers) is required in accordance with State law. Condition Found: We noted that VEDA does not require the borrowers to maintain appropriate workman?s compensation insurance, nor do they request documentation to verify that adequate coverage maintained. Context: We noted these conditions for all seven new loans that were entered into with Ultimate Recipients during the grant year Questioned Costs:None noted Cause and Effect: The Authority was aware of the requirement to obtain support that the borrower held appropriate workman?s compensation insurance, but they did not have a process to request or maintain these documents. As a result, there is a risk that a borrower does not have workman?s compensation insurance required under the federal guidelines. Repeat Finding, if Applicable: N/A Recommendation: We recommend that management implement a process to request and maintain the documentation to support that each borrower under the IRP has appropriate workman?s compensation insurance