Finding Text
Federal Award Findings and Questioned Costs Finding 2022-001 Program Affected AL #10.766, United States Department of Agriculture (USDA) Community Facilities Loans and Grants Cluster Criteria Per the U.S. Office of Management and Budget (OMB) 2022 OMB Compliance Supplement (Compliance Supplement), Part 2 - Matrix of Compliance Requirements, AL #10.766 is required to have a compliance audit for loans with a balance greater than $750,000. Condition and Context A late change with the Compliance Supplement, resulted in a lack of knowledge that the Single Audit was required. Northern Maine General (The Organization) was not notified by the USDA of the new requirement to have a Uniform Guidance audit of the Community Facilities Loans and Grants Cluster with balances greater than $750,000. Additionally, the Organization was not familiar with the Compliance Supplement or aware they should check for changes annually. As a result, a Uniform Guidance audit was not performed timely, reporting requirements were missed, and the filing of the Data Collection Form was missed. Question Costs N/A Cause and Effect A lack of policies and procedures led to failure of identifying compliance requirements; as such, a Uniform Guidance audit and timely filing of reports was not completed. Further, noncompliance with this contract criteria subjects the Organization to risk of reduced or revoked funding. Repeat Finding? No Recommendation We recommend the Organization institute policies and procedures to identify federal funding and reporting requirements, as well as researching of funding received, to help ensure noncompliance does not occur. The Compliance Supplement is updated annually and should be downloaded and reviewed by the Organization.