Finding 5621 (2021-001)

Material Weakness
Requirement
L
Questioned Costs
-
Year
2021
Accepted
2023-12-19
Audit: 7499
Auditor: Jackson Thornton

AI Summary

  • Core Issue: The Association's internal controls were insufficient for timely preparation of the Schedule of Expenditures of Federal Awards (SEFA).
  • Impacted Requirements: Timely SEFA preparation and reporting under the Uniform Guidance were not met.
  • Recommended Follow-Up: Implement procedures to ensure timely SEFA preparation and compliance identification; the Association has agreed and started these procedures.

Finding Text

Condition - The Association’s internal controls were not adequate to ensure timely preparation of the Schedule of Expenditures of Federal Awards (SEFA) and timely reporting under the Uniform Guidance. Criteria - The Association is required to timely prepare its SEFA and engage an independent auditor to report under the Uniform Guidance. Cause - The Association’s internal controls over the identification of compliance requirements, including timely preparation of the SEFA, were not adequate. Effect - The Association did not timely complete its SEFA resulting in untimely reporting in accordance with the Uniform Guidance. Recommendation - The Association should implement procedures to ensure timely preparation of its SEFA and identification of compliance requirements under the Uniform Guidance. Views of Responsible Officials - The Association agrees with this finding and has implemented the recommended procedures.

Corrective Action Plan

Association will work with Auditors to ensure timely preparation of the SEFA.

Categories

Reporting

Other Findings in this Audit

  • 582063 2021-001
    Material Weakness

Programs in Audit

ALN Program Name Expenditures
10.850 Rural Electrification Loans and Loan Guarantees $86.98M
97.036 Disaster Grants - Public Assistance (presidentially Declared Disasters) $6.74M
10.854 Rural Economic Development Loans and Grants $300,000