Audit of library USDA loan cites procedural mistakes

A federal audit of the Whitman County Rural Library District that was released last week found some minor errors. The audit report was compiled by state auditors who review for compliance with federal audit requirements when federal funds are involved.

The district received $550,000 in American Recovery and Reinvestment Act funds through a USDA Rural Development Loan which is being paid off over 40 years.

The recovery loan was part of a $1,030,000 remodeling project which was also supported by $297,000 in local donations, and the balance in capital reserve funds and other reserve funds.

“While we spent the money correctly, there were relatively minor mistakes not meeting the federal requirements,” Library Director Kristie Kirkpatrick said.

The audit report noted the library project failed to obtain written certification that vendors involved in the project had not been suspended or disbarred.

Another finding reported the project failed a requirement to separately track the ARRA funds through the project.

The other finding noted the district failed to arrange for a single audit and have the report submitted within nine months of the government’s year end. The report said the library didn’t notify the state auditors that it faced a federal audit requirment for Dec. 31, 2011.

“In our annual report to the state, they could see we spent $550,000 and where it went, but we put it in a regular account and it was supposed to be in a separate account,” Kirkpatrick said.

In their official reply, the library noted it had never participated in a large, federally funded project, and the district “mistakenly depended upon USDA officials and the project’s architect to guide us through some of the steps and reporting requirements. We regret this decision and have gained a new knowledge of what is required of us and will implement new procedures should federal funds be obtained in the future.”

Kirkpatrick said the district will comply with all requirements in the future.

“They said that it’s common to have problems with small agencies like us because we don’t have the experience in dealing with federal requirements,” Kirkpatrick said.

“I’m not minimizing our mistakes,” she said. “I think we did everything well. We learned a lot through the process.”