Finding Text
Finding 2022-002 Assistance Listing 10.766 Title Community Facility Loans and Grants Federal Grantor U.S. Department of Agriculture Compliance Area Reporting Type of Finding Internal Control ? Significant Deficiency Questioned Costs None Reported Repeat Finding No Criteria 2 CFR 200.327 establishes that reports be complete, accurate, and supported by accounting records (if applicable) and be submitted in compliance with the appropriate deadlines. Condition Westward Heights submitted the proposed 2023 annual budget to the USDA February 21, 2023. The 3rd Quarter Report was submitted November 18, 2022. The annual budget was due November 30, 2022. Quarterly reports are due by the end of the following month. Cause Westward Heights did not have an internal control policy in place to ensure timely closing of month-end or year-end financials. Effect The lack of policy resulted in multiple reports being submitted to the USDA after the due date. Recommendation We recommend that Westward Heights establish deadlines for accounting personnel to complete month-end and year-end financials. Views of Responsible Officials Management and Westward Heights? Board of Directors agree with the finding. See Westward Heights? Corrective Action Plan.