City of Adel

USDA Reporting Criteria - Per the Letter of Condition for United States Department of Agriculture (USDA) loans entered into by the City, quarterly income and expense statements are required to be submitted within 30 days of each quarter's end. Condition - The reports for the quarter ending June 30, 2021 were not submitted timely. Cause - Policies and procedures have not been established to require the reports to be submitted timely. Effect - The lack of timely submittal of the reports could impact management decisions. Recommendation - The City should establish policies and procedures to ensure the quarterly reports are submitted within 30 days of each quarter's end. Response and Corrective Action Planned - The City's Finance Director was on leave and unable to finalize and submit these reports prior to her return. The Finance Director will cross-train additional staff to submit these reports in her absence, even if preliminary. Conclusion - Response accepted.

USDA Reporting Criteria ? Per the Letter of Condition for United States Department of Agriculture (USDA) loans entered into by the City, quarterly income and expense statements are required and the reports are to be signed by the appropriate borrower official and submitted within 30 days of each quarter?s end. In addition, 30 days prior to the beginning of each fiscal year, the City is required to submit an annual budget to the USDA office. Condition ? The annual budget and quarterly reports submitted to the USDA were not reviewed and approved by an independent person. Cause ? Policies and procedures have not been established to require the reports to be independently reviewed and approved. Effect ? The lack of documented review of these reports increases the risk for undetected reporting errors or misstatements. Recommendation ? The City should establish policies and procedures to ensure the quarterly reports and annual budget are reviewed and approved by an independent person who is knowledgeable about the program. This review should be evidenced by the reviewer?s signature or initials and date of review prior to submission. Response and Corrective Action Planned ? The City?s Finance Director will provide these reports to the City Council for review/approval prior to submitting to the USDA. The approval will be documented with the Mayor?s signature. Conclusion ? Response accepted.