Lone Pine Economic Development Corporation and Trust

Statement of Condition The Corporation did not make enough cash transfers during the year to fully fund the replacement reserve account. As a result, the replacement reserve account was underfunded by $30,528 at December 31, 2024. Criteria The Corporation is required to fund the replacement reserve in accordance with RD requirements and agreements. Effect The Corporation is out of compliance with RD regulations. Cause The underfunding of the replacement reserve cash account was the result of an inadvertent bookkeeping oversight. Recommendation We recommend the Corporation makes the required monthly deposits to the replacement reserve cash account and transfer $30,528 to the replacement reserve cash account. Reporting Views of Responsible Officials Management is aware that the replacement reserve account needs to have deposits made during the year to comply with RD regulations and will transfer $30,528 to the replacement reserve cash account.

Statement of Condition The Corporation did not make all the required replacement reserve deposits during the year ended December 31, 2023 causing the replacement reserve cash account to be underfunded by $69,604 at December 31, 2023. Criteria The Corporation is required to fund the replacement reserve in accordance with RD requirements and agreements. Effect The Corporation is out of compliance with RD regulations. Cause The underfunding of the replacement reserve cash account was the result of an inadvertent bookkeeping oversight. Recommendation We recommend the Corporation makes the required monthly deposits to the replacement reserve cash account and transfer $69,604 to the replacement reserve cash account. Reporting Views of Responsible Officials Management is aware that the replacement reserve account needs to have deposits made during the year to comply with RD regulations and will transfer $69,604 to the replacement reserve cash account.

Statement of Condition The Project's December 31, 2022, financial statement audit was not submitted to the Federal Audit Clearinghouse. Criteria Uniform Guidance 2 CFR 200.512(a) requires that financial audits are completed and submitted to the Federal Audit Clearinghouse within the earlier of 30 calendar days after receipt of the auditor's report or nine months after the end of the audit period. Effect The Project is out of compliance with the reporting requirements detailed in the Uniform Guidance. Cause Management was unaware of the criteria within Uniform Guidance to submit the audit to the Federal Audit Clearinghouse. Recommendation We recommend that policies and procedures be implemented to ensure the financial statement audit is submitted to the Federal Audit Clearinghouse within the required timeframe. Reporting Views of Responsible Officials Management agrees with the recommendation and will work with the auditor to ensure the financial audit is submitted to the Federal Audit Clearinghouse within the required timeframe. Management has taken substantial steps to prevent this from happening in the future, including but not limited to an internal review of all accounting policies and procedures, a review of methodologies and tools used to track accounting deadlines and commitments.