Finding Text
Finding 2021-002: Significant Deficiency Federal Agency: U.S. Department of Agriculture Award Name: Community Facility Direct Loan and Grant Program Program Year: January 1, 2020 ? December 31, 2021 Assistance Listing Number: 10.766 Criteria: Uniform Guidance requires recipients of federal funds to establish written policies related to internal controls and compliance with federal award program requirements. Condition and Effect: The School has not prepared written policies which could result in potential noncompliance. Cause: The School has limited internal resources available to prepare written policies in accordance with the Uniform Guidance. Auditors' Recommendation: Management should prioritize preparing written policies related to internal controls and compliance with federal award requirements or engage a consultant to assist with preparation of the written policies. Views of Responsible Officials and Planned Corrective Actions: Management is currently reviewing the 2021 compliance supplement (2 CFR PART 200, APPENDIX XI) which applies to most federal awards including USDA RD financing. Management understands this supplement is issued annually and can be obtained online. Specific review includes the matrix for federal programs on page 21, and details for ALN 10.766 (USDA Community facilities loans) which begins on page 275. Management has prioritized preparing written policies in direct alignment of the 2021 compliance supplement related to internal control and compliance with federal award requirements. The relevant compliance requirements for TES for 2021 for which policies are being drafted related to the USDA RD Community Facilities Program loan include reporting, reserve account funding, and minimum insurance and bonding coverage, per the agreement with USDA. Specific controls over compliance with these requirements will be documented.