Finding 486021 (2023-002)

Federal Agency: U.S. Department of Agriculture Federal Program: 10.766, Rural Development, Community Facilities Direct Loan Criteria or Specific Requirement - 45 CFR § 75.512, Report Submission, requires completion of an audit and submission of the data collection form and reporting package within the earlier of thirty calendar days after receipt of the auditors’ report, or nine months after the end of the audit period. Condition - The audit and data collection form are being submitted after the required due date. Cause - The Corporation did not maintain appropriate levels of staff to ensure compliance with regulatory filing requirements. Effect - Noncompliance with the requirements of 45 CFR § 75.512. There is a potential for suspension or cessation of federal funding under the federal award. Questioned Cost - To be determined by the grantor. Context - We reviewed the audit submission date in comparison to the required due date. Repeat Finding - No Recommendation - The Corporation should take steps to ensure that its financial records are maintained on a current basis, reconciled timely, and audited within nine months after year-end. View of Responsible Officials and Planned Corrective Actions - The organization will ensure that financial records are maintained on a current basis, reconciled timely and audited within nine months after year end. Additional support has been put in place within the accounting department to records are current, reconciled timely and audit is completed within nine months after year end.