Audit 299827

FY End
2023-12-31
Total Expended
$1.49M
Findings
36
Programs
2
Year: 2023 Accepted: 2024-03-28

Organization Exclusion Status:

Checking exclusion status...

Findings

ID Ref Severity Repeat Requirement
387747 2023-001 - Yes P
387748 2023-001 - Yes P
387749 2023-001 - Yes P
387750 2023-001 - Yes P
387751 2023-001 - Yes P
387752 2023-001 - Yes P
387753 2023-002 Significant Deficiency - E
387754 2023-002 Significant Deficiency - E
387755 2023-002 Significant Deficiency - E
387756 2023-002 Significant Deficiency - E
387757 2023-002 Significant Deficiency - E
387758 2023-002 Significant Deficiency - E
387759 2023-004 Significant Deficiency - B
387760 2023-004 Significant Deficiency - B
387761 2023-004 Significant Deficiency - B
387762 2023-004 Significant Deficiency - B
387763 2023-004 Significant Deficiency - B
387764 2023-004 Significant Deficiency - B
964189 2023-001 - Yes P
964190 2023-001 - Yes P
964191 2023-001 - Yes P
964192 2023-001 - Yes P
964193 2023-001 - Yes P
964194 2023-001 - Yes P
964195 2023-002 Significant Deficiency - E
964196 2023-002 Significant Deficiency - E
964197 2023-002 Significant Deficiency - E
964198 2023-002 Significant Deficiency - E
964199 2023-002 Significant Deficiency - E
964200 2023-002 Significant Deficiency - E
964201 2023-004 Significant Deficiency - B
964202 2023-004 Significant Deficiency - B
964203 2023-004 Significant Deficiency - B
964204 2023-004 Significant Deficiency - B
964205 2023-004 Significant Deficiency - B
964206 2023-004 Significant Deficiency - B

Programs

ALN Program Spent Major Findings
10.427 Rural Rental Assistance Payments $284,940 - 0
10.415 Rural Rental Housing Loans $90,601 Yes 3

Contacts

Name Title Type
C7A6TWNL8WR4 Michelle Raymond Auditee
2074445152 Timothy Poitras, CPA Auditor
No contacts on file

Notes to SEFA

Title: Loan Balances Accounting Policies: PURPOSE OF THE SCHEDULE The Uniform Guidance requires a Schedule of Expenditures of Federal Awards showing total expenditures for each federal award program as identified in the catalog of Federal Domestic Assistance (CFDA). SIGNIFICANT ACCOUNTING POLICIES 1. REPORTING ENTITY The accompanying schedule includes all federal award programs of Eagle Lake Development Corporation. for the year ended December 31, 2023. The reporting entity is defined in the Notes to the Financial Statements of Eagle Lake Development Corporation. 2. BASIS OF PRESENTATION The information in this schedule is presented in accordance with the requirements of the Uniform Guidance. a. Federal financial assistance is defined as assistance provided by federal agency, either directly or indirectly, in the form of grants, contracts, cooperative agreements, loans, loan guarantees, property, interest subsidies, insurance or direct appropriations. b. The Uniform Guidance establishes the level of expenditures to be used in defining major federal financial award programs. Major programs for the Organization have been identified in the Schedule of Findings and Questioned Costs. 3. BASIS OF ACCOUNTING The information presented in the Schedule of Expenditures of Federal Awards is presented on a basis consistent with the Organization’s general purpose financial statements. The grants included are all accounted for on a modified accrual basis of accounting which is described in the notes to the financial statements. De Minimis Rate Used: N Rate Explanation: 4. INDIRECT COSTS The Organization has not elected to use the 10% De Minimis Cost rate for the year ended December 31, 2023. The Organization’s federal loan balances as of December 31, 2023 are as follows: Note payable to USDA Rural Development in monthly installments of $5,512 (less subsidy of $3,656), including interest at 8.75%, through May 2029. Secured by real estate. 284,562 Note payable to USDA Rural Development in monthly installments of $1,016 (less subsidy of $634), including interest at 6.5%, through July 2044. Secured by real estate. 138,077 Note payable to USDA Rural Development in monthly installments of $1,177 (less subsidy of $810), including interest at 8.0%, through April 2045. Secured by real estate. 144,273 Note payable to USDA Rural Development in monthly installments of $99 (less subsidy of $75), including interest at 13.25%, through October 2042. Secured by real estate. 6,132 Note payable to USDA Rural Development in monthly installments of $1,220 (less subsidy of $904), including interest at 9.75%, through June 2039. Secured by real estate. 116,820 Note payable to USDA Rural Development in monthly installments of $1,843 (less subsidy of $1,065), including interest at 5.75%, through August 2058. Secured by real estate. 365,362 1,055,226

Finding Details

2023-001 Other Matter – Other compliance requirements Condition: Reserve account approval Criteria and effect: Disbursements from the projects replacement reserve account require approval from USDA Rural Development. One instance was noted where the payment was disbursed prior to receiving the signed approval from USDA Rural Development. Cause: The reserve approval request was submitted to USDA Rural Development for approval in December 2023. Due to the request being submitted over the traditional Christmas and New Year holiday no one was available at USDA to approve the request by the invoice due date so the Organization issued payment in advance of receiving the approval. Questioned costs: Less than $25,000. Repeat finding: This finding was reported as finding 2022-001 in the most recent audit. Recommendation: We recommended that management monitor approval requests to ensure that they are submitted timely and to anticipate delays in the approval process. Also, management should ensure that approval is received prior to issuing any checks drawn on the replacement reserve account. Views of responsible officials and planned corrective actions: Management agrees and will implement the corrective action plan found on page 34 of this report. Because the amount in question is not material and not pervasive and was ultimately approved by USDA Rural Development it has been reported in the Other Matters section of the auditors’ Report on Compliance for each Major Federal Program and Report on Internal Control over Compliance Required by the Uniform Guidance and the auditor’s report was not modified with respect to this matter.
2023-001 Other Matter – Other compliance requirements Condition: Reserve account approval Criteria and effect: Disbursements from the projects replacement reserve account require approval from USDA Rural Development. One instance was noted where the payment was disbursed prior to receiving the signed approval from USDA Rural Development. Cause: The reserve approval request was submitted to USDA Rural Development for approval in December 2023. Due to the request being submitted over the traditional Christmas and New Year holiday no one was available at USDA to approve the request by the invoice due date so the Organization issued payment in advance of receiving the approval. Questioned costs: Less than $25,000. Repeat finding: This finding was reported as finding 2022-001 in the most recent audit. Recommendation: We recommended that management monitor approval requests to ensure that they are submitted timely and to anticipate delays in the approval process. Also, management should ensure that approval is received prior to issuing any checks drawn on the replacement reserve account. Views of responsible officials and planned corrective actions: Management agrees and will implement the corrective action plan found on page 34 of this report. Because the amount in question is not material and not pervasive and was ultimately approved by USDA Rural Development it has been reported in the Other Matters section of the auditors’ Report on Compliance for each Major Federal Program and Report on Internal Control over Compliance Required by the Uniform Guidance and the auditor’s report was not modified with respect to this matter.
2023-001 Other Matter – Other compliance requirements Condition: Reserve account approval Criteria and effect: Disbursements from the projects replacement reserve account require approval from USDA Rural Development. One instance was noted where the payment was disbursed prior to receiving the signed approval from USDA Rural Development. Cause: The reserve approval request was submitted to USDA Rural Development for approval in December 2023. Due to the request being submitted over the traditional Christmas and New Year holiday no one was available at USDA to approve the request by the invoice due date so the Organization issued payment in advance of receiving the approval. Questioned costs: Less than $25,000. Repeat finding: This finding was reported as finding 2022-001 in the most recent audit. Recommendation: We recommended that management monitor approval requests to ensure that they are submitted timely and to anticipate delays in the approval process. Also, management should ensure that approval is received prior to issuing any checks drawn on the replacement reserve account. Views of responsible officials and planned corrective actions: Management agrees and will implement the corrective action plan found on page 34 of this report. Because the amount in question is not material and not pervasive and was ultimately approved by USDA Rural Development it has been reported in the Other Matters section of the auditors’ Report on Compliance for each Major Federal Program and Report on Internal Control over Compliance Required by the Uniform Guidance and the auditor’s report was not modified with respect to this matter.
2023-001 Other Matter – Other compliance requirements Condition: Reserve account approval Criteria and effect: Disbursements from the projects replacement reserve account require approval from USDA Rural Development. One instance was noted where the payment was disbursed prior to receiving the signed approval from USDA Rural Development. Cause: The reserve approval request was submitted to USDA Rural Development for approval in December 2023. Due to the request being submitted over the traditional Christmas and New Year holiday no one was available at USDA to approve the request by the invoice due date so the Organization issued payment in advance of receiving the approval. Questioned costs: Less than $25,000. Repeat finding: This finding was reported as finding 2022-001 in the most recent audit. Recommendation: We recommended that management monitor approval requests to ensure that they are submitted timely and to anticipate delays in the approval process. Also, management should ensure that approval is received prior to issuing any checks drawn on the replacement reserve account. Views of responsible officials and planned corrective actions: Management agrees and will implement the corrective action plan found on page 34 of this report. Because the amount in question is not material and not pervasive and was ultimately approved by USDA Rural Development it has been reported in the Other Matters section of the auditors’ Report on Compliance for each Major Federal Program and Report on Internal Control over Compliance Required by the Uniform Guidance and the auditor’s report was not modified with respect to this matter.
2023-001 Other Matter – Other compliance requirements Condition: Reserve account approval Criteria and effect: Disbursements from the projects replacement reserve account require approval from USDA Rural Development. One instance was noted where the payment was disbursed prior to receiving the signed approval from USDA Rural Development. Cause: The reserve approval request was submitted to USDA Rural Development for approval in December 2023. Due to the request being submitted over the traditional Christmas and New Year holiday no one was available at USDA to approve the request by the invoice due date so the Organization issued payment in advance of receiving the approval. Questioned costs: Less than $25,000. Repeat finding: This finding was reported as finding 2022-001 in the most recent audit. Recommendation: We recommended that management monitor approval requests to ensure that they are submitted timely and to anticipate delays in the approval process. Also, management should ensure that approval is received prior to issuing any checks drawn on the replacement reserve account. Views of responsible officials and planned corrective actions: Management agrees and will implement the corrective action plan found on page 34 of this report. Because the amount in question is not material and not pervasive and was ultimately approved by USDA Rural Development it has been reported in the Other Matters section of the auditors’ Report on Compliance for each Major Federal Program and Report on Internal Control over Compliance Required by the Uniform Guidance and the auditor’s report was not modified with respect to this matter.
2023-001 Other Matter – Other compliance requirements Condition: Reserve account approval Criteria and effect: Disbursements from the projects replacement reserve account require approval from USDA Rural Development. One instance was noted where the payment was disbursed prior to receiving the signed approval from USDA Rural Development. Cause: The reserve approval request was submitted to USDA Rural Development for approval in December 2023. Due to the request being submitted over the traditional Christmas and New Year holiday no one was available at USDA to approve the request by the invoice due date so the Organization issued payment in advance of receiving the approval. Questioned costs: Less than $25,000. Repeat finding: This finding was reported as finding 2022-001 in the most recent audit. Recommendation: We recommended that management monitor approval requests to ensure that they are submitted timely and to anticipate delays in the approval process. Also, management should ensure that approval is received prior to issuing any checks drawn on the replacement reserve account. Views of responsible officials and planned corrective actions: Management agrees and will implement the corrective action plan found on page 34 of this report. Because the amount in question is not material and not pervasive and was ultimately approved by USDA Rural Development it has been reported in the Other Matters section of the auditors’ Report on Compliance for each Major Federal Program and Report on Internal Control over Compliance Required by the Uniform Guidance and the auditor’s report was not modified with respect to this matter.
2023-002 Significant Deficiency – Tenant recertification Condition: Eligibility Criteria and effect: Tenants must be notified at least 75-90 days prior to the date the certification expires and documentation related to recertification must be maintained for a minimum of 3 years. Cause: The Organization generally notifies tenants of recertification approximately 60 days prior to expiration. 3 certifications sampled for testing were missing documentation from the file. Recommendation: Tenants should be notified of expiring certifications in a timely manner and files should remain intact for no less than 3 years. Views of responsible officials and planned corrective actions: Management agrees and will implement the corrective action plan found on page 34 of this report.
2023-002 Significant Deficiency – Tenant recertification Condition: Eligibility Criteria and effect: Tenants must be notified at least 75-90 days prior to the date the certification expires and documentation related to recertification must be maintained for a minimum of 3 years. Cause: The Organization generally notifies tenants of recertification approximately 60 days prior to expiration. 3 certifications sampled for testing were missing documentation from the file. Recommendation: Tenants should be notified of expiring certifications in a timely manner and files should remain intact for no less than 3 years. Views of responsible officials and planned corrective actions: Management agrees and will implement the corrective action plan found on page 34 of this report.
2023-002 Significant Deficiency – Tenant recertification Condition: Eligibility Criteria and effect: Tenants must be notified at least 75-90 days prior to the date the certification expires and documentation related to recertification must be maintained for a minimum of 3 years. Cause: The Organization generally notifies tenants of recertification approximately 60 days prior to expiration. 3 certifications sampled for testing were missing documentation from the file. Recommendation: Tenants should be notified of expiring certifications in a timely manner and files should remain intact for no less than 3 years. Views of responsible officials and planned corrective actions: Management agrees and will implement the corrective action plan found on page 34 of this report.
2023-002 Significant Deficiency – Tenant recertification Condition: Eligibility Criteria and effect: Tenants must be notified at least 75-90 days prior to the date the certification expires and documentation related to recertification must be maintained for a minimum of 3 years. Cause: The Organization generally notifies tenants of recertification approximately 60 days prior to expiration. 3 certifications sampled for testing were missing documentation from the file. Recommendation: Tenants should be notified of expiring certifications in a timely manner and files should remain intact for no less than 3 years. Views of responsible officials and planned corrective actions: Management agrees and will implement the corrective action plan found on page 34 of this report.
2023-002 Significant Deficiency – Tenant recertification Condition: Eligibility Criteria and effect: Tenants must be notified at least 75-90 days prior to the date the certification expires and documentation related to recertification must be maintained for a minimum of 3 years. Cause: The Organization generally notifies tenants of recertification approximately 60 days prior to expiration. 3 certifications sampled for testing were missing documentation from the file. Recommendation: Tenants should be notified of expiring certifications in a timely manner and files should remain intact for no less than 3 years. Views of responsible officials and planned corrective actions: Management agrees and will implement the corrective action plan found on page 34 of this report.
2023-002 Significant Deficiency – Tenant recertification Condition: Eligibility Criteria and effect: Tenants must be notified at least 75-90 days prior to the date the certification expires and documentation related to recertification must be maintained for a minimum of 3 years. Cause: The Organization generally notifies tenants of recertification approximately 60 days prior to expiration. 3 certifications sampled for testing were missing documentation from the file. Recommendation: Tenants should be notified of expiring certifications in a timely manner and files should remain intact for no less than 3 years. Views of responsible officials and planned corrective actions: Management agrees and will implement the corrective action plan found on page 34 of this report.
2023-004 Significant Deficiency – Cash disbursements Condition: Allowable costs Criteria and effect: All cash disbursements should be for allowable costs under USDA rural development guidelines. Cause: Our sampling noted costs for a meal at the annual dinner and holiday gifts to board members and volunteers. Questioned costs: $589.16 Recommendation: All expenditures should be for allowable costs under USDA guidelines, all other costs should be disbursed from the Organization’s good shepherd reserve fund which consists of non-operational funds. Views of responsible officials and planned corrective actions: Management agrees and will implement the corrective action plan found on page 34 of this report.
2023-004 Significant Deficiency – Cash disbursements Condition: Allowable costs Criteria and effect: All cash disbursements should be for allowable costs under USDA rural development guidelines. Cause: Our sampling noted costs for a meal at the annual dinner and holiday gifts to board members and volunteers. Questioned costs: $589.16 Recommendation: All expenditures should be for allowable costs under USDA guidelines, all other costs should be disbursed from the Organization’s good shepherd reserve fund which consists of non-operational funds. Views of responsible officials and planned corrective actions: Management agrees and will implement the corrective action plan found on page 34 of this report.
2023-004 Significant Deficiency – Cash disbursements Condition: Allowable costs Criteria and effect: All cash disbursements should be for allowable costs under USDA rural development guidelines. Cause: Our sampling noted costs for a meal at the annual dinner and holiday gifts to board members and volunteers. Questioned costs: $589.16 Recommendation: All expenditures should be for allowable costs under USDA guidelines, all other costs should be disbursed from the Organization’s good shepherd reserve fund which consists of non-operational funds. Views of responsible officials and planned corrective actions: Management agrees and will implement the corrective action plan found on page 34 of this report.
2023-004 Significant Deficiency – Cash disbursements Condition: Allowable costs Criteria and effect: All cash disbursements should be for allowable costs under USDA rural development guidelines. Cause: Our sampling noted costs for a meal at the annual dinner and holiday gifts to board members and volunteers. Questioned costs: $589.16 Recommendation: All expenditures should be for allowable costs under USDA guidelines, all other costs should be disbursed from the Organization’s good shepherd reserve fund which consists of non-operational funds. Views of responsible officials and planned corrective actions: Management agrees and will implement the corrective action plan found on page 34 of this report.
2023-004 Significant Deficiency – Cash disbursements Condition: Allowable costs Criteria and effect: All cash disbursements should be for allowable costs under USDA rural development guidelines. Cause: Our sampling noted costs for a meal at the annual dinner and holiday gifts to board members and volunteers. Questioned costs: $589.16 Recommendation: All expenditures should be for allowable costs under USDA guidelines, all other costs should be disbursed from the Organization’s good shepherd reserve fund which consists of non-operational funds. Views of responsible officials and planned corrective actions: Management agrees and will implement the corrective action plan found on page 34 of this report.
2023-004 Significant Deficiency – Cash disbursements Condition: Allowable costs Criteria and effect: All cash disbursements should be for allowable costs under USDA rural development guidelines. Cause: Our sampling noted costs for a meal at the annual dinner and holiday gifts to board members and volunteers. Questioned costs: $589.16 Recommendation: All expenditures should be for allowable costs under USDA guidelines, all other costs should be disbursed from the Organization’s good shepherd reserve fund which consists of non-operational funds. Views of responsible officials and planned corrective actions: Management agrees and will implement the corrective action plan found on page 34 of this report.
2023-001 Other Matter – Other compliance requirements Condition: Reserve account approval Criteria and effect: Disbursements from the projects replacement reserve account require approval from USDA Rural Development. One instance was noted where the payment was disbursed prior to receiving the signed approval from USDA Rural Development. Cause: The reserve approval request was submitted to USDA Rural Development for approval in December 2023. Due to the request being submitted over the traditional Christmas and New Year holiday no one was available at USDA to approve the request by the invoice due date so the Organization issued payment in advance of receiving the approval. Questioned costs: Less than $25,000. Repeat finding: This finding was reported as finding 2022-001 in the most recent audit. Recommendation: We recommended that management monitor approval requests to ensure that they are submitted timely and to anticipate delays in the approval process. Also, management should ensure that approval is received prior to issuing any checks drawn on the replacement reserve account. Views of responsible officials and planned corrective actions: Management agrees and will implement the corrective action plan found on page 34 of this report. Because the amount in question is not material and not pervasive and was ultimately approved by USDA Rural Development it has been reported in the Other Matters section of the auditors’ Report on Compliance for each Major Federal Program and Report on Internal Control over Compliance Required by the Uniform Guidance and the auditor’s report was not modified with respect to this matter.
2023-001 Other Matter – Other compliance requirements Condition: Reserve account approval Criteria and effect: Disbursements from the projects replacement reserve account require approval from USDA Rural Development. One instance was noted where the payment was disbursed prior to receiving the signed approval from USDA Rural Development. Cause: The reserve approval request was submitted to USDA Rural Development for approval in December 2023. Due to the request being submitted over the traditional Christmas and New Year holiday no one was available at USDA to approve the request by the invoice due date so the Organization issued payment in advance of receiving the approval. Questioned costs: Less than $25,000. Repeat finding: This finding was reported as finding 2022-001 in the most recent audit. Recommendation: We recommended that management monitor approval requests to ensure that they are submitted timely and to anticipate delays in the approval process. Also, management should ensure that approval is received prior to issuing any checks drawn on the replacement reserve account. Views of responsible officials and planned corrective actions: Management agrees and will implement the corrective action plan found on page 34 of this report. Because the amount in question is not material and not pervasive and was ultimately approved by USDA Rural Development it has been reported in the Other Matters section of the auditors’ Report on Compliance for each Major Federal Program and Report on Internal Control over Compliance Required by the Uniform Guidance and the auditor’s report was not modified with respect to this matter.
2023-001 Other Matter – Other compliance requirements Condition: Reserve account approval Criteria and effect: Disbursements from the projects replacement reserve account require approval from USDA Rural Development. One instance was noted where the payment was disbursed prior to receiving the signed approval from USDA Rural Development. Cause: The reserve approval request was submitted to USDA Rural Development for approval in December 2023. Due to the request being submitted over the traditional Christmas and New Year holiday no one was available at USDA to approve the request by the invoice due date so the Organization issued payment in advance of receiving the approval. Questioned costs: Less than $25,000. Repeat finding: This finding was reported as finding 2022-001 in the most recent audit. Recommendation: We recommended that management monitor approval requests to ensure that they are submitted timely and to anticipate delays in the approval process. Also, management should ensure that approval is received prior to issuing any checks drawn on the replacement reserve account. Views of responsible officials and planned corrective actions: Management agrees and will implement the corrective action plan found on page 34 of this report. Because the amount in question is not material and not pervasive and was ultimately approved by USDA Rural Development it has been reported in the Other Matters section of the auditors’ Report on Compliance for each Major Federal Program and Report on Internal Control over Compliance Required by the Uniform Guidance and the auditor’s report was not modified with respect to this matter.
2023-001 Other Matter – Other compliance requirements Condition: Reserve account approval Criteria and effect: Disbursements from the projects replacement reserve account require approval from USDA Rural Development. One instance was noted where the payment was disbursed prior to receiving the signed approval from USDA Rural Development. Cause: The reserve approval request was submitted to USDA Rural Development for approval in December 2023. Due to the request being submitted over the traditional Christmas and New Year holiday no one was available at USDA to approve the request by the invoice due date so the Organization issued payment in advance of receiving the approval. Questioned costs: Less than $25,000. Repeat finding: This finding was reported as finding 2022-001 in the most recent audit. Recommendation: We recommended that management monitor approval requests to ensure that they are submitted timely and to anticipate delays in the approval process. Also, management should ensure that approval is received prior to issuing any checks drawn on the replacement reserve account. Views of responsible officials and planned corrective actions: Management agrees and will implement the corrective action plan found on page 34 of this report. Because the amount in question is not material and not pervasive and was ultimately approved by USDA Rural Development it has been reported in the Other Matters section of the auditors’ Report on Compliance for each Major Federal Program and Report on Internal Control over Compliance Required by the Uniform Guidance and the auditor’s report was not modified with respect to this matter.
2023-001 Other Matter – Other compliance requirements Condition: Reserve account approval Criteria and effect: Disbursements from the projects replacement reserve account require approval from USDA Rural Development. One instance was noted where the payment was disbursed prior to receiving the signed approval from USDA Rural Development. Cause: The reserve approval request was submitted to USDA Rural Development for approval in December 2023. Due to the request being submitted over the traditional Christmas and New Year holiday no one was available at USDA to approve the request by the invoice due date so the Organization issued payment in advance of receiving the approval. Questioned costs: Less than $25,000. Repeat finding: This finding was reported as finding 2022-001 in the most recent audit. Recommendation: We recommended that management monitor approval requests to ensure that they are submitted timely and to anticipate delays in the approval process. Also, management should ensure that approval is received prior to issuing any checks drawn on the replacement reserve account. Views of responsible officials and planned corrective actions: Management agrees and will implement the corrective action plan found on page 34 of this report. Because the amount in question is not material and not pervasive and was ultimately approved by USDA Rural Development it has been reported in the Other Matters section of the auditors’ Report on Compliance for each Major Federal Program and Report on Internal Control over Compliance Required by the Uniform Guidance and the auditor’s report was not modified with respect to this matter.
2023-001 Other Matter – Other compliance requirements Condition: Reserve account approval Criteria and effect: Disbursements from the projects replacement reserve account require approval from USDA Rural Development. One instance was noted where the payment was disbursed prior to receiving the signed approval from USDA Rural Development. Cause: The reserve approval request was submitted to USDA Rural Development for approval in December 2023. Due to the request being submitted over the traditional Christmas and New Year holiday no one was available at USDA to approve the request by the invoice due date so the Organization issued payment in advance of receiving the approval. Questioned costs: Less than $25,000. Repeat finding: This finding was reported as finding 2022-001 in the most recent audit. Recommendation: We recommended that management monitor approval requests to ensure that they are submitted timely and to anticipate delays in the approval process. Also, management should ensure that approval is received prior to issuing any checks drawn on the replacement reserve account. Views of responsible officials and planned corrective actions: Management agrees and will implement the corrective action plan found on page 34 of this report. Because the amount in question is not material and not pervasive and was ultimately approved by USDA Rural Development it has been reported in the Other Matters section of the auditors’ Report on Compliance for each Major Federal Program and Report on Internal Control over Compliance Required by the Uniform Guidance and the auditor’s report was not modified with respect to this matter.
2023-002 Significant Deficiency – Tenant recertification Condition: Eligibility Criteria and effect: Tenants must be notified at least 75-90 days prior to the date the certification expires and documentation related to recertification must be maintained for a minimum of 3 years. Cause: The Organization generally notifies tenants of recertification approximately 60 days prior to expiration. 3 certifications sampled for testing were missing documentation from the file. Recommendation: Tenants should be notified of expiring certifications in a timely manner and files should remain intact for no less than 3 years. Views of responsible officials and planned corrective actions: Management agrees and will implement the corrective action plan found on page 34 of this report.
2023-002 Significant Deficiency – Tenant recertification Condition: Eligibility Criteria and effect: Tenants must be notified at least 75-90 days prior to the date the certification expires and documentation related to recertification must be maintained for a minimum of 3 years. Cause: The Organization generally notifies tenants of recertification approximately 60 days prior to expiration. 3 certifications sampled for testing were missing documentation from the file. Recommendation: Tenants should be notified of expiring certifications in a timely manner and files should remain intact for no less than 3 years. Views of responsible officials and planned corrective actions: Management agrees and will implement the corrective action plan found on page 34 of this report.
2023-002 Significant Deficiency – Tenant recertification Condition: Eligibility Criteria and effect: Tenants must be notified at least 75-90 days prior to the date the certification expires and documentation related to recertification must be maintained for a minimum of 3 years. Cause: The Organization generally notifies tenants of recertification approximately 60 days prior to expiration. 3 certifications sampled for testing were missing documentation from the file. Recommendation: Tenants should be notified of expiring certifications in a timely manner and files should remain intact for no less than 3 years. Views of responsible officials and planned corrective actions: Management agrees and will implement the corrective action plan found on page 34 of this report.
2023-002 Significant Deficiency – Tenant recertification Condition: Eligibility Criteria and effect: Tenants must be notified at least 75-90 days prior to the date the certification expires and documentation related to recertification must be maintained for a minimum of 3 years. Cause: The Organization generally notifies tenants of recertification approximately 60 days prior to expiration. 3 certifications sampled for testing were missing documentation from the file. Recommendation: Tenants should be notified of expiring certifications in a timely manner and files should remain intact for no less than 3 years. Views of responsible officials and planned corrective actions: Management agrees and will implement the corrective action plan found on page 34 of this report.
2023-002 Significant Deficiency – Tenant recertification Condition: Eligibility Criteria and effect: Tenants must be notified at least 75-90 days prior to the date the certification expires and documentation related to recertification must be maintained for a minimum of 3 years. Cause: The Organization generally notifies tenants of recertification approximately 60 days prior to expiration. 3 certifications sampled for testing were missing documentation from the file. Recommendation: Tenants should be notified of expiring certifications in a timely manner and files should remain intact for no less than 3 years. Views of responsible officials and planned corrective actions: Management agrees and will implement the corrective action plan found on page 34 of this report.
2023-002 Significant Deficiency – Tenant recertification Condition: Eligibility Criteria and effect: Tenants must be notified at least 75-90 days prior to the date the certification expires and documentation related to recertification must be maintained for a minimum of 3 years. Cause: The Organization generally notifies tenants of recertification approximately 60 days prior to expiration. 3 certifications sampled for testing were missing documentation from the file. Recommendation: Tenants should be notified of expiring certifications in a timely manner and files should remain intact for no less than 3 years. Views of responsible officials and planned corrective actions: Management agrees and will implement the corrective action plan found on page 34 of this report.
2023-004 Significant Deficiency – Cash disbursements Condition: Allowable costs Criteria and effect: All cash disbursements should be for allowable costs under USDA rural development guidelines. Cause: Our sampling noted costs for a meal at the annual dinner and holiday gifts to board members and volunteers. Questioned costs: $589.16 Recommendation: All expenditures should be for allowable costs under USDA guidelines, all other costs should be disbursed from the Organization’s good shepherd reserve fund which consists of non-operational funds. Views of responsible officials and planned corrective actions: Management agrees and will implement the corrective action plan found on page 34 of this report.
2023-004 Significant Deficiency – Cash disbursements Condition: Allowable costs Criteria and effect: All cash disbursements should be for allowable costs under USDA rural development guidelines. Cause: Our sampling noted costs for a meal at the annual dinner and holiday gifts to board members and volunteers. Questioned costs: $589.16 Recommendation: All expenditures should be for allowable costs under USDA guidelines, all other costs should be disbursed from the Organization’s good shepherd reserve fund which consists of non-operational funds. Views of responsible officials and planned corrective actions: Management agrees and will implement the corrective action plan found on page 34 of this report.
2023-004 Significant Deficiency – Cash disbursements Condition: Allowable costs Criteria and effect: All cash disbursements should be for allowable costs under USDA rural development guidelines. Cause: Our sampling noted costs for a meal at the annual dinner and holiday gifts to board members and volunteers. Questioned costs: $589.16 Recommendation: All expenditures should be for allowable costs under USDA guidelines, all other costs should be disbursed from the Organization’s good shepherd reserve fund which consists of non-operational funds. Views of responsible officials and planned corrective actions: Management agrees and will implement the corrective action plan found on page 34 of this report.
2023-004 Significant Deficiency – Cash disbursements Condition: Allowable costs Criteria and effect: All cash disbursements should be for allowable costs under USDA rural development guidelines. Cause: Our sampling noted costs for a meal at the annual dinner and holiday gifts to board members and volunteers. Questioned costs: $589.16 Recommendation: All expenditures should be for allowable costs under USDA guidelines, all other costs should be disbursed from the Organization’s good shepherd reserve fund which consists of non-operational funds. Views of responsible officials and planned corrective actions: Management agrees and will implement the corrective action plan found on page 34 of this report.
2023-004 Significant Deficiency – Cash disbursements Condition: Allowable costs Criteria and effect: All cash disbursements should be for allowable costs under USDA rural development guidelines. Cause: Our sampling noted costs for a meal at the annual dinner and holiday gifts to board members and volunteers. Questioned costs: $589.16 Recommendation: All expenditures should be for allowable costs under USDA guidelines, all other costs should be disbursed from the Organization’s good shepherd reserve fund which consists of non-operational funds. Views of responsible officials and planned corrective actions: Management agrees and will implement the corrective action plan found on page 34 of this report.
2023-004 Significant Deficiency – Cash disbursements Condition: Allowable costs Criteria and effect: All cash disbursements should be for allowable costs under USDA rural development guidelines. Cause: Our sampling noted costs for a meal at the annual dinner and holiday gifts to board members and volunteers. Questioned costs: $589.16 Recommendation: All expenditures should be for allowable costs under USDA guidelines, all other costs should be disbursed from the Organization’s good shepherd reserve fund which consists of non-operational funds. Views of responsible officials and planned corrective actions: Management agrees and will implement the corrective action plan found on page 34 of this report.