CAMPBELL UNIVERSITY FOUNDATION INC

FEDERAL PROGRAM INFORMATION: COMMUNITY FACILITIES LOANS AND GRANTS CLUSTER (CFDA 10.766); CRITERIA OR SPECIFIC REQUIREMENT (INCLUDING STATUTORY, REGULATORY OR OTHER CITATION): REPORTING: PER 7 CFR 1942.17 (Q)(8), A QUARTERLY MANAGEMENT REPORT WILL BE REQUIRED FOR THE FIRST FULL YEAR OF OPERATIONS FOR NEW BORROWERS, AND EXISTING BORROWERS OPERATING A NEW FACILITY, STARTING A NEW TYPE OF OPERATION OR PROPOSING A SIGNIFICANT EXPANSION OF AN EXISTING FACIILITY. CONDITION: THE FOUNDATION DID NOT COMPLETE THE REQUIRED QUARTERLY REPORTING. CAUSE: THE FOUNDATION DID NOT PROPERLY COMPLY WITH REPORTING REQUIREMENTS RELATED TO THE COMMUNITY FACILITIES LOANS AND GRANTS CLUSTER. EFFECT: THE FOUNDATION IS NOT IN COMPLIANCE WITH COMPLIANCE REQUIREMENTS OVER REPORTING. QUESTIONED COSTS: NONE. CONTEXT: FOR ALL QUARTERS SUBSEQUENT TO THE CLOSING OF THE LOAN IN OCTOBER 2020, THE FOUNDATION DID NOT COMPLETE THE REQUIRED QUARTERLY REPORTING. REPEAT FINDINGS: THERE WAS NO SIMILAR FINDING FOR THE PRIOR YEAR. RECOMMENDATION: WE RECOMMEND THAT THE FOUNDATION IMPLEMENT PROCEDURES AND ENHANCE ITS INTERNAL CONTROLS OVER COMPLIANCE TO ENSURE ALL REQUIRED REPORTS ARE COMPLETED AND SUBMITTED TO THE UNITED STATES DEPARTMENT OF AGRICULTURE WITHIN THE REQUIRED TIMEFRAME. VIEWS OF RESPONSIBLE OFFICIALS AND PLANNED CORRECTIVE ACTIONS: THE FOUNDATION WILL DEVELOP A COMMUNITY FACILITIES LOAN AUDITING TEAM WITHIN THE ACCOUNTING OFFICE. THIS TEAM WILL BE RESPONSIBLE FOR REPORTING AND MONITORING ALL COMPLIANCE REQUIREMENTS FOR THE PROGRAM. HAVING MULTIPLE STAFF REVIEW WILL AID IN COMPLIANCE EFFORTS OF THIS PROGRAM IN THE FUTURE. THE REQUIRED QUARTERLY REPORTING WAS SUBMITTED AND ACCEPTED BY THE UNITED STATES DEPARTMENT OF AGRICULTURE ON FEBRUARY 10, 2022.

FEDERAL PROGRAM INFORMATION: COMMUNITY FACILITIES LOANS AND GRANTS CLUSTER (CFDA 10.766). CRITERIA OR SPECIFIC REQUIREMENT (INCLUDING STATUTORY, REGULATORY OR OTHER CITATION): SPECIAL TESTS AND PROVISIONS: PER THE LONG-TERM FINANCING AGREEMENT WITH THE UNITED STATES DEPARTMENT OF AGRICULTURE, THE FOUNDATION MUST FORMALLY ADOPT FORM RD 442-7, "OPERATING BUDGET" AT A PROPERLY CALLED MEETING OF THE GOVERNING BODY. THE BUDGET MUST PROVIDE SUFFICIENT REVENUE TO MEET THE REQUIREMENTS OF OPERATIONS AND MAINTENANCE AND DEBT SERVICE. ADOPTION OF THESE DOCUMENTS SHOULD BE MADE A PART OF THE OFFICIAL MINUTES OF THE ABOVE MEETING. A CERTIFIED COPY OF THE SAID MINUTES SHOULD BE ATTACHED TO THE RESOLUTION AND BE PROVIDED TO RURAL DEVELOPMENT. CONDITION: THE FOUNDATION DID NOT FORMALLY ADOPT THE FORM RD 442-7, "OPERATING BUDGET" OR SUBMIT THE OPERATING BUDGET TO RURAL DEVELOPMENT. CAUSE: ADMINISTRATIVE OVERSIGHT. EFFECT: THE FOUNDATION IS NOT IN COMPLIANCE WITH COMPLIANCE REQUIREMENTS OVER SPECIAL TESTS AND PROVISIONS. QUESTIONED COSTS: NONE. CONTEXT: THE FOUNDATION DID NOT ADOPT THE REQUIRED FORM RD 442-7, "OPERATING BUDGET" AND DID NOT SUBMIT THE OPERATING BUDGET TO RURAL DEVELOPMENT. REPEAT FINDING: THERE WAS NO SIMILAR FINDING FOR THE PRIOR YEAR. RECOMMENDATION: WE RECOMMEND THAT THE FOUNDATION IMPLEMENT PROCEDURES TO ENSURE ALL REQUIRED FORMS AND REPORTS ARE COMPLETED AND SUBMITTED TO THE UNITED STATES DEPARTMENT OF AGRICULTURE WITHIN THE REQUIRED TIMEFRAME. VIEWS OF RESPONSIBLE OFFICIALS AND PLANNED CORRECTIVE ACTIONS: THE FOUNDATION WILL DEVELOP A COMMUNITY FACILITIES LOAN AUDITING TEAM WITHIN THE ACCOUNTING OFFICE. THIS TEAM WILL BE RESPONSIBLE FOR REPORTING AND MONITORING ALL COMPLIANCE REQUIREMENTS FOR THE PROGRAM. HAVING MULTIPLE STAFF REVIEW WILL AID IN COMPLIANCE EFFORTS OF THIS PROGRAM IN THE FURTURE.