Finding Text
2022-004 Department of Agriculture Federal Financial Assistance Listing #10.766 Communities Facilities Loans and Grants Cluster Reporting Significant Deficiency in Internal Control Over Compliance Criteria: 2 CFR 200.303(a) establishes that the auditee must establish and maintain effective internal control over the federal award that provides assurance that the entity is managing the federal award in compliance with federal statutes, regulations, and conditions of the federal award. Within Section 5 of the Loan Resolution Security Agreements dated January 20, 2009 and September 30, 2014, annual audited financial statements are required to be submitted to USDA. Condition: The audited financial statements were submitted to USDA prior to review and approval from the Board of Directors. Cause: There was a lapse in the internal control process ensuring audited financial statements are reviewed and approved prior to submission to USDA. Effect: Revision to the final reports could occur upon review and approval from the Board of Directors. Questioned Costs: None reported. Context: Sampling was not used. Repeat Finding from Prior Years: Yes Recommendation: We recommend management to review policies and procedures ensuring audited financial statements are approved prior to providing to the federal agency. Views of Responsible Officials: Management agrees with the finding