Finding Text
2022-001 Reporting and Written Policies and Procedures Program Information: Federal Agency United States Department of Agriculture Assistance Listing Number 10.766 ? Community Facilities Loans and Grants Cluster Criteria [X] Compliance Finding [X] Significant Deficiency [ ] Material Weakness Under the terms and conditions of the award, the recipient certifies it will provide quarterly financial information, the annual budget, and annual financial statements to the United States Department of Agriculture. The recipient also needs to maintain written policies and procedures for reporting required under the United States Department of Agriculture loan program and for reporting required under all federal awards received. Condition The District did not submit the quarterly reports or annual budget for 2022 to the United States Department of Agriculture. Context This finding appears to be a systemic problem. Cause The District did not have written policies or procedures in place for the required reporting. Effect The District is out of compliance with the terms and conditions of the award. Recommendation We recommend management implement written policies and procedures for reporting required under the United States Department of Agriculture loan program and all federal awards received as well as provide the required reports on a timely basis to all respective parties. View of responsible officials and planned corrective actions Middle Park Health (MPH) management agrees that quarterly financial reporting to USDA as required did not occur in 2022. Turnover in finance leadership during 2022 contributed to this oversight among other factors. At no point did MPH receive communication from USDA surrounding lack of compliance with this requirement. Upon discovering this weakness, MPH promptly implemented corrective action. Reminders have been set following the approval of each quarter?s financial statements by the Board of Directors to submit quarterly financial reports to USDA contacts. The first set of quarterly financials for 2023 were submitted to the USDA on April 28, 2023 and USDA confirmed receipt of these documents as well as confirming that the distribution list used by MPH for this submission was appropriate. MPH does not anticipate further noncompliance with this requirement. MPH will also develop written policies and procedures for the required reporting.