Finding 42555 (2022-001)

Findings Financial Statements Audit None noted. Findings and Questioned Costs Major Award Programs Audit Finding 2022-1: Statement of Condition: The replacement reserve account is underfunded according to funding levels provided by USDA Rural Development. Amount of Questioned Cost: $36,547 Criteria: Compliance with USDA Rural Development regulations and the Loan Agreements require the reserve to be maintained at certain minimum amounts. Effect: Deferred maintenance could result from underfunding the reserve. Cause: Insufficient cash flow from operations. Recommendation: Increase monthly funding to the reserve as permitted by operating cash flow. Findings and Questioned Costs Prior Years None noted.