Finding Text
U.S. Department of Agriculture Federal Financial Assistance Listing #10.766 Community Facilities Loans and Grants Cluster Reporting Significant Deficiency in Internal Control Over Compliance and Noncompliance Not Considered Material Criteria: Section 14 of the Letter of Conditions associated with the program requires the Authority to submit the annual audit within 150 days after year end of the fiscal year and the proposed operating budget and rate schedule for the upcoming fiscal year, 30 days prior to the end of the fiscal year. Condition: The Authority did not file the annual financial audit within 150 days after the end of the fiscal year. Also, the Authority did not submit an operating budget and rate schedule 30 days prior to the beginning of the new fiscal year. Cause: The Authority did not have any controls in place to ensure timely reporting with the USDA. Effect: This resulted in the Authority being out of compliance with the Letter of Conditions. Questioned Costs: None reported Repeat Finding from Prior Years: No Context: No sampling was performed. Recommendation: It is recommended that the Authority establish controls to ensure timely reporting with the USDA based on the requirements outlined in the Letter of Conditions. Views of Responsible Officials: We agree with the auditor?s recommendation.