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Continuing Requirements After Settlement

We changed banks or my bank was merged with another bank, is there any thing that I need to do for PENNVEST?
Yes! All PENNVEST projects must be set up on the Automatic Clearing House system (ACH). Any banking change can affect the ACH number and account that has been tested and is being used to disburse funds and collect funds that are owed to PENNVEST. If you require a change in your ACH Banking information, please use the ACH Change Form.

What kind of audit am I required to submit to PENNVEST?
The kind of audit required to be submitted to PENNVEST on an annual basis is listed in the Loan Agreement. Generally, the Financial Statement/audit is the report prepared by your independent public accounting firm prepared in accordance with generally accepted governmental accounting principles and practices. It must be in a satisfactory form and certified as true and correct by the chief financial officer of the Borrower.
If you are a municipality, a copy of the report to the Department of Economic and Community Development (DCED) may be submitted in place of an audited financial statement.
If you are an authority whose loan has been guaranteed by a municipality(s), an audited financial statement of the authority AND a DCED report for the municipality(s) are required.
If you are a private entity with revenues in excess of $25,000, a tax return is required. I’m paying my loan on time.

Why must I submit my financial statement?
Submitting your annual Financial Statement is a requirement of the PENNVEST Loan Agreement. PENNVEST uses your Financial Statement as a tool to monitor your financial health and can make determinations and/or recommendations before your entity experiences serious problems. These statements reveal information about a borrower that otherwise may not be disclosed.

When is my financial statement/audit due?
Generally, your Financial Statement is due one hundred fifty (150) days after the end of each fiscal year. For example, if your fiscal year end is December 31, your Financial Statement is due on or before May 31 of the following year. If your fiscal year end is June 30, your statement is due by November 30 of the same year. You must submit your Financial Statements annually until the loan is paid in full.

When am I required to submit a Single Audit?
If your project number begins with a “7” or “8”, it would be wise to have your auditor request in their audit confirmation how much in federal funding was disbursed to your project during the year of the audit. Projects funded from the Clean Water Act, Title VI or Drinking Water Act, as amended, are classified as subrecipients of federal funds. These borrowers may be subject to reporting requirements of the Office of Management and Budget Circular (OMB) A133 as follows:
  1. If a subrecipient expends $500,000 or more during its fiscal year, it is required to have a Single Audit prepared in accordance with OMB A133. :
  2. If a subrecipient expends between $25,000 and $500,000 during its fiscal year, it is required to have a Single Audit prepared in accordance with OMB A133 or with Federal laws and regulations governing the programs in which they participate. If the funds are received and expended under one federal program, a Program-specific audit may be performed in place of the Single Audit.:
  3. If a subrecipient receives less than $25,000 during its fiscal year, it is exempt from compliance with OMB A133.

Do I have a federally funded loan or a state funded loan? What impact does that have on the Loan Number for the project (ME Number)?
Your loan documents will indicate if the loan is Federally funded. Your loan number will begin with either a "7" or and "8" if it is Federally funded. If there is no indication in the loan documents and if the loan number starts with something other than a "7" or "8", it is a state funded loan.
If your loan is Federally funded, you will need to request on any audit confirmations how much of the funds you have received is Federal dollars and how much is either State Match or Recycled dollars. If you receive more than $300,000 of Federal dollars in a fiscal year, you are required to do a Single Audit.