Finding 588665 (2022-001)

Significant Deficiency
Requirement
L
Questioned Costs
$1
Year
2022
Accepted
2023-06-29
Audit: 16400
Organization: Southwell Obligated Group (GA)

AI Summary

  • Core Issue: Southwell Obligated Group failed to submit required financial reports to the USDA on time.
  • Impacted Requirements: Reports must be submitted as per the loan agreement, including annual budgets and quarterly statements.
  • Recommended Follow-Up: Establish a process to track and ensure timely submission of all required reports to the USDA.

Finding Text

Condition: Southwell Obligated Group did not timely submit its annual budget, projected cash flow, quarterly financial statements, and audited financial statements to the USDA. Criteria: Southwell Obligated Group is responsible for reporting to the USDA throughout the life of the loan, as specifically required within Southwell Obligated Group's applicable agreement, via the RD 442-2, Statement of Budget, Income, and Equity report or other acceptable report. Cause: These reports are required to be submitted, as specified in the applicable loan agreement; however, management did not maintain a list of required reports to be submitted nor was there a process in place to ensure timely filing. Context: The reports were never specifically requested throughout the year by Southwell Obligated Group's USDA representative, nor was Southwell Obligated Group notified of its tardy submission at any point during the fiscal year. The audited financial statements are available to the federal agency through Southwell Obligated Group's website. Effect: Southwell Obligated Group did not follow the guidelines as laid out in the respective loan agreement for its reporting requirements. Questioned Costs: Not applicable. Recommendations: Southwell Obligated Group should continue to improve its understanding of the reporting requirements as specified in the applicable loan document and create a process to ensure reports are submitted in a timely manner.

Categories

Questioned Costs Reporting Matching / Level of Effort / Earmarking

Other Findings in this Audit

  • 12223 2022-001
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
10.766 Community Facilities Loans and Grants $148.73M
93.498 Covid-19 - Provider Relief Fund - Period 2 $9.20M
93.461 Covid-19 - Claims Reimbursement for the Uninsured Program $1.06M
93.697 Covid-19 - Testing for Rural Health Clinics $500,000
93.889 Covid-19 - National Bioterrorism Hospital Preparedness Program $16,471
21.019 Covid-19 - Coronavirus Relief Fund Gerogiacares Nursing Home Grants $11,442