Finding Text
Federal Program: 10.766 – Community Facilities Loans and Grants
Criteria: The organization was required to set up a separate bank account for future repairs, replacement and improvements per the letter of conditions.
Condition: The Organization failed to set up the separate bank account for future repairs, replacement and improvements.
Cause of the Condition: The separate bank account was not set up.
Effect: The Organization is not in compliance with the standards set by the U.S. Department of Agriculture.
Questioned Costs: None noted.
Perspective: $2,000 was required to be segregated in a separate account at the end of the current fiscal year.
Recommendation: Procedures should be put in place to ensure compliance with all Federal funding requirements.