Finding Text
2022-007 Department of Agriculture Federal Financial Assistance Listing #10.766 Community Facilities Loans and Grants Reporting Significant Deficiency in Internal Control over Compliance Criteria: 2 CFR 200.303(a) establishes that the auditee must establish and maintain effective internal control over the federal award that provides assurance that the entity is managing the federal award in compliance with federal statutes, regulations, and conditions of the federal award. Within the amended letter of conditions dated February 13, 2017, for the Community Facilities direct loan, annual audited financial statements are required to be submitted to the federal agency. Condition: The fiscal year 2021 audit report was required to be submitted to the federal agency by September 30th, 2022. The Center did not provide the 2021 audit report within the timeframe requested by the federal agency representative. Cause: The Center did not have an internal control process in place to ensure timely submission of the required reports to the federal agency. Effect: The required reports were not submitted by the requested date. Questioned Costs: None reported. Context/Sampling: Sampling was not used. Repeat Finding from Prior Years: No Recommendation: We recommend implementing a process to ensure timely submission of the annual audit report. Views of Responsible Officials: Management agrees with the finding.