Improve Procedures over the Preparation of the Schedule of Expenditure of Federal Awards (Material Weakness)
As part of our audit procedures, we audit the completeness and the accuracy of the Schedule of Expenditures of Federal Awards. Management is responsible for the preparation of the Schedule of Expenditures of Federal Awards in accordance with the requirements of the Uniform Guidance. This schedule is an integral component of the Organization’s reporting in accordance with the Uniform Guidance as it identifies total federal awards expended for each individual federal program and it serves as the primary basis for the auditor’s major program determination. During our audit, we became aware of evidence which indicated that in a prior year loans that had been thought to be forgiven by USDA were in fact repurchased by USDA. The debt should have been reflected on the Schedule of Expenditures of Federal Awards under the Section 538 program. The Schedule of Expenditures of Federal Awards was corrected during the audit; however, it appears the errors were made due to a lack of sufficient internal controls over the preparation of the Schedule of Expenditures of Federal Awards.
Recommendation - We recommend that the Organization implement adequate procedures, including staff training and a formal review and verification process by supervisory personnel, as part of its annual process to prepare the Schedule of Expenditures of Federal Awards in order to ensure its accuracy.
View of Responsible Officials - We agree with the finding. We have implemented procedures to ensure future proper reporting of federal awards in the Schedule of Expenditures of Federal Awards. See our Corrective Action Plan for the fiscal year ended December 31, 2023 for additional detail.
Improve Procedures over the Preparation of the Schedule of Expenditure of Federal Awards (Material Weakness)
As part of our audit procedures, we audit the completeness and the accuracy of the Schedule of Expenditures of Federal Awards. Management is responsible for the preparation of the Schedule of Expenditures of Federal Awards in accordance with the requirements of the Uniform Guidance. This schedule is an integral component of the Organization’s reporting in accordance with the Uniform Guidance as it identifies total federal awards expended for each individual federal program and it serves as the primary basis for the auditor’s major program determination. During our audit, we became aware of evidence which indicated that in a prior year loans that had been thought to be forgiven by USDA were in fact repurchased by USDA. The debt should have been reflected on the Schedule of Expenditures of Federal Awards under the Section 538 program. The Schedule of Expenditures of Federal Awards was corrected during the audit; however, it appears the errors were made due to a lack of sufficient internal controls over the preparation of the Schedule of Expenditures of Federal Awards.
Recommendation - We recommend that the Organization implement adequate procedures, including staff training and a formal review and verification process by supervisory personnel, as part of its annual process to prepare the Schedule of Expenditures of Federal Awards in order to ensure its accuracy.
View of Responsible Officials - We agree with the finding. We have implemented procedures to ensure future proper reporting of federal awards in the Schedule of Expenditures of Federal Awards. See our Corrective Action Plan for the fiscal year ended December 31, 2023 for additional detail.
Improve Procedures over the Preparation of the Schedule of Expenditure of Federal Awards (Material Weakness)
As part of our audit procedures, we audit the completeness and the accuracy of the Schedule of Expenditures of Federal Awards. Management is responsible for the preparation of the Schedule of Expenditures of Federal Awards in accordance with the requirements of the Uniform Guidance. This schedule is an integral component of the Organization’s reporting in accordance with the Uniform Guidance as it identifies total federal awards expended for each individual federal program and it serves as the primary basis for the auditor’s major program determination. During our audit, we became aware of evidence which indicated that in a prior year loans that had been thought to be forgiven by USDA were in fact repurchased by USDA. The debt should have been reflected on the Schedule of Expenditures of Federal Awards under the Section 538 program. The Schedule of Expenditures of Federal Awards was corrected during the audit; however, it appears the errors were made due to a lack of sufficient internal controls over the preparation of the Schedule of Expenditures of Federal Awards.
Recommendation - We recommend that the Organization implement adequate procedures, including staff training and a formal review and verification process by supervisory personnel, as part of its annual process to prepare the Schedule of Expenditures of Federal Awards in order to ensure its accuracy.
View of Responsible Officials - We agree with the finding. We have implemented procedures to ensure future proper reporting of federal awards in the Schedule of Expenditures of Federal Awards. See our Corrective Action Plan for the fiscal year ended December 31, 2023 for additional detail.
Submission of Single Audit Reports (Material Weakness) (Repeat Finding 2022-001)
Federal Agency: U.S. Department of Agriculture (“USDA”)
Program Title: Section 538 Rural Rental Housing Loans
Assistance Listing Number: 10.438
Federal Award Source: Direct Funding
Pass-Through Entity: N/A
Pass-Through Identifying Number: N/A
2023-002: Submission of Single Audit Reports (Material Weakness) (continued)
Criteria – Section 200.512 of the Uniform Guidance states that the single audit shall be completed and the data collection form and reporting package shall be submitted within the earlier of 30 calendar days after receipt of the auditor’s report, or nine months after the end of the audit period.
Condition and Context – The Organization did not complete its single audit and submit its data collection form and reporting package for the year ended December 31, 2023 by the required deadline.
Cause and Effect - Due to a delay in the finalization of the Schedule of Expenditures of Federal Awards and the compiling of records and supporting documentation related to the financial statement audit and compliance audit, the Organization was late in completing its single audit and submitting its data collection form and reporting package to the Federal Audit Clearinghouse.
Questioned Costs – None noted.
Recommendation – We recommend that the Organization improve its financial reporting close process in order to complete its annual single audit and submit the data collection form and reporting package to the Federal Audit Clearinghouse by the required deadline.
View of Responsible Officials - We agree with the finding. We have implemented procedures to ensure future timely submission of our single audit reports. See our Corrective Action Plan for the fiscal year ended December 31, 2023 for additional detail.
Submission of Single Audit Reports (Material Weakness) (Repeat Finding 2022-001)
Federal Agency: U.S. Department of Agriculture (“USDA”)
Program Title: Section 538 Rural Rental Housing Loans
Assistance Listing Number: 10.438
Federal Award Source: Direct Funding
Pass-Through Entity: N/A
Pass-Through Identifying Number: N/A
2023-002: Submission of Single Audit Reports (Material Weakness) (continued)
Criteria – Section 200.512 of the Uniform Guidance states that the single audit shall be completed and the data collection form and reporting package shall be submitted within the earlier of 30 calendar days after receipt of the auditor’s report, or nine months after the end of the audit period.
Condition and Context – The Organization did not complete its single audit and submit its data collection form and reporting package for the year ended December 31, 2023 by the required deadline.
Cause and Effect - Due to a delay in the finalization of the Schedule of Expenditures of Federal Awards and the compiling of records and supporting documentation related to the financial statement audit and compliance audit, the Organization was late in completing its single audit and submitting its data collection form and reporting package to the Federal Audit Clearinghouse.
Questioned Costs – None noted.
Recommendation – We recommend that the Organization improve its financial reporting close process in order to complete its annual single audit and submit the data collection form and reporting package to the Federal Audit Clearinghouse by the required deadline.
View of Responsible Officials - We agree with the finding. We have implemented procedures to ensure future timely submission of our single audit reports. See our Corrective Action Plan for the fiscal year ended December 31, 2023 for additional detail.
Submission of Single Audit Reports (Material Weakness) (Repeat Finding 2022-001)
Federal Agency: U.S. Department of Agriculture (“USDA”)
Program Title: Section 538 Rural Rental Housing Loans
Assistance Listing Number: 10.438
Federal Award Source: Direct Funding
Pass-Through Entity: N/A
Pass-Through Identifying Number: N/A
2023-002: Submission of Single Audit Reports (Material Weakness) (continued)
Criteria – Section 200.512 of the Uniform Guidance states that the single audit shall be completed and the data collection form and reporting package shall be submitted within the earlier of 30 calendar days after receipt of the auditor’s report, or nine months after the end of the audit period.
Condition and Context – The Organization did not complete its single audit and submit its data collection form and reporting package for the year ended December 31, 2023 by the required deadline.
Cause and Effect - Due to a delay in the finalization of the Schedule of Expenditures of Federal Awards and the compiling of records and supporting documentation related to the financial statement audit and compliance audit, the Organization was late in completing its single audit and submitting its data collection form and reporting package to the Federal Audit Clearinghouse.
Questioned Costs – None noted.
Recommendation – We recommend that the Organization improve its financial reporting close process in order to complete its annual single audit and submit the data collection form and reporting package to the Federal Audit Clearinghouse by the required deadline.
View of Responsible Officials - We agree with the finding. We have implemented procedures to ensure future timely submission of our single audit reports. See our Corrective Action Plan for the fiscal year ended December 31, 2023 for additional detail.
Improve Procedures over the Preparation of the Schedule of Expenditure of Federal Awards (Material Weakness)
As part of our audit procedures, we audit the completeness and the accuracy of the Schedule of Expenditures of Federal Awards. Management is responsible for the preparation of the Schedule of Expenditures of Federal Awards in accordance with the requirements of the Uniform Guidance. This schedule is an integral component of the Organization’s reporting in accordance with the Uniform Guidance as it identifies total federal awards expended for each individual federal program and it serves as the primary basis for the auditor’s major program determination. During our audit, we became aware of evidence which indicated that in a prior year loans that had been thought to be forgiven by USDA were in fact repurchased by USDA. The debt should have been reflected on the Schedule of Expenditures of Federal Awards under the Section 538 program. The Schedule of Expenditures of Federal Awards was corrected during the audit; however, it appears the errors were made due to a lack of sufficient internal controls over the preparation of the Schedule of Expenditures of Federal Awards.
Recommendation - We recommend that the Organization implement adequate procedures, including staff training and a formal review and verification process by supervisory personnel, as part of its annual process to prepare the Schedule of Expenditures of Federal Awards in order to ensure its accuracy.
View of Responsible Officials - We agree with the finding. We have implemented procedures to ensure future proper reporting of federal awards in the Schedule of Expenditures of Federal Awards. See our Corrective Action Plan for the fiscal year ended December 31, 2023 for additional detail.
Improve Procedures over the Preparation of the Schedule of Expenditure of Federal Awards (Material Weakness)
As part of our audit procedures, we audit the completeness and the accuracy of the Schedule of Expenditures of Federal Awards. Management is responsible for the preparation of the Schedule of Expenditures of Federal Awards in accordance with the requirements of the Uniform Guidance. This schedule is an integral component of the Organization’s reporting in accordance with the Uniform Guidance as it identifies total federal awards expended for each individual federal program and it serves as the primary basis for the auditor’s major program determination. During our audit, we became aware of evidence which indicated that in a prior year loans that had been thought to be forgiven by USDA were in fact repurchased by USDA. The debt should have been reflected on the Schedule of Expenditures of Federal Awards under the Section 538 program. The Schedule of Expenditures of Federal Awards was corrected during the audit; however, it appears the errors were made due to a lack of sufficient internal controls over the preparation of the Schedule of Expenditures of Federal Awards.
Recommendation - We recommend that the Organization implement adequate procedures, including staff training and a formal review and verification process by supervisory personnel, as part of its annual process to prepare the Schedule of Expenditures of Federal Awards in order to ensure its accuracy.
View of Responsible Officials - We agree with the finding. We have implemented procedures to ensure future proper reporting of federal awards in the Schedule of Expenditures of Federal Awards. See our Corrective Action Plan for the fiscal year ended December 31, 2023 for additional detail.
Improve Procedures over the Preparation of the Schedule of Expenditure of Federal Awards (Material Weakness)
As part of our audit procedures, we audit the completeness and the accuracy of the Schedule of Expenditures of Federal Awards. Management is responsible for the preparation of the Schedule of Expenditures of Federal Awards in accordance with the requirements of the Uniform Guidance. This schedule is an integral component of the Organization’s reporting in accordance with the Uniform Guidance as it identifies total federal awards expended for each individual federal program and it serves as the primary basis for the auditor’s major program determination. During our audit, we became aware of evidence which indicated that in a prior year loans that had been thought to be forgiven by USDA were in fact repurchased by USDA. The debt should have been reflected on the Schedule of Expenditures of Federal Awards under the Section 538 program. The Schedule of Expenditures of Federal Awards was corrected during the audit; however, it appears the errors were made due to a lack of sufficient internal controls over the preparation of the Schedule of Expenditures of Federal Awards.
Recommendation - We recommend that the Organization implement adequate procedures, including staff training and a formal review and verification process by supervisory personnel, as part of its annual process to prepare the Schedule of Expenditures of Federal Awards in order to ensure its accuracy.
View of Responsible Officials - We agree with the finding. We have implemented procedures to ensure future proper reporting of federal awards in the Schedule of Expenditures of Federal Awards. See our Corrective Action Plan for the fiscal year ended December 31, 2023 for additional detail.
Submission of Single Audit Reports (Material Weakness) (Repeat Finding 2022-001)
Federal Agency: U.S. Department of Agriculture (“USDA”)
Program Title: Section 538 Rural Rental Housing Loans
Assistance Listing Number: 10.438
Federal Award Source: Direct Funding
Pass-Through Entity: N/A
Pass-Through Identifying Number: N/A
2023-002: Submission of Single Audit Reports (Material Weakness) (continued)
Criteria – Section 200.512 of the Uniform Guidance states that the single audit shall be completed and the data collection form and reporting package shall be submitted within the earlier of 30 calendar days after receipt of the auditor’s report, or nine months after the end of the audit period.
Condition and Context – The Organization did not complete its single audit and submit its data collection form and reporting package for the year ended December 31, 2023 by the required deadline.
Cause and Effect - Due to a delay in the finalization of the Schedule of Expenditures of Federal Awards and the compiling of records and supporting documentation related to the financial statement audit and compliance audit, the Organization was late in completing its single audit and submitting its data collection form and reporting package to the Federal Audit Clearinghouse.
Questioned Costs – None noted.
Recommendation – We recommend that the Organization improve its financial reporting close process in order to complete its annual single audit and submit the data collection form and reporting package to the Federal Audit Clearinghouse by the required deadline.
View of Responsible Officials - We agree with the finding. We have implemented procedures to ensure future timely submission of our single audit reports. See our Corrective Action Plan for the fiscal year ended December 31, 2023 for additional detail.
Submission of Single Audit Reports (Material Weakness) (Repeat Finding 2022-001)
Federal Agency: U.S. Department of Agriculture (“USDA”)
Program Title: Section 538 Rural Rental Housing Loans
Assistance Listing Number: 10.438
Federal Award Source: Direct Funding
Pass-Through Entity: N/A
Pass-Through Identifying Number: N/A
2023-002: Submission of Single Audit Reports (Material Weakness) (continued)
Criteria – Section 200.512 of the Uniform Guidance states that the single audit shall be completed and the data collection form and reporting package shall be submitted within the earlier of 30 calendar days after receipt of the auditor’s report, or nine months after the end of the audit period.
Condition and Context – The Organization did not complete its single audit and submit its data collection form and reporting package for the year ended December 31, 2023 by the required deadline.
Cause and Effect - Due to a delay in the finalization of the Schedule of Expenditures of Federal Awards and the compiling of records and supporting documentation related to the financial statement audit and compliance audit, the Organization was late in completing its single audit and submitting its data collection form and reporting package to the Federal Audit Clearinghouse.
Questioned Costs – None noted.
Recommendation – We recommend that the Organization improve its financial reporting close process in order to complete its annual single audit and submit the data collection form and reporting package to the Federal Audit Clearinghouse by the required deadline.
View of Responsible Officials - We agree with the finding. We have implemented procedures to ensure future timely submission of our single audit reports. See our Corrective Action Plan for the fiscal year ended December 31, 2023 for additional detail.
Submission of Single Audit Reports (Material Weakness) (Repeat Finding 2022-001)
Federal Agency: U.S. Department of Agriculture (“USDA”)
Program Title: Section 538 Rural Rental Housing Loans
Assistance Listing Number: 10.438
Federal Award Source: Direct Funding
Pass-Through Entity: N/A
Pass-Through Identifying Number: N/A
2023-002: Submission of Single Audit Reports (Material Weakness) (continued)
Criteria – Section 200.512 of the Uniform Guidance states that the single audit shall be completed and the data collection form and reporting package shall be submitted within the earlier of 30 calendar days after receipt of the auditor’s report, or nine months after the end of the audit period.
Condition and Context – The Organization did not complete its single audit and submit its data collection form and reporting package for the year ended December 31, 2023 by the required deadline.
Cause and Effect - Due to a delay in the finalization of the Schedule of Expenditures of Federal Awards and the compiling of records and supporting documentation related to the financial statement audit and compliance audit, the Organization was late in completing its single audit and submitting its data collection form and reporting package to the Federal Audit Clearinghouse.
Questioned Costs – None noted.
Recommendation – We recommend that the Organization improve its financial reporting close process in order to complete its annual single audit and submit the data collection form and reporting package to the Federal Audit Clearinghouse by the required deadline.
View of Responsible Officials - We agree with the finding. We have implemented procedures to ensure future timely submission of our single audit reports. See our Corrective Action Plan for the fiscal year ended December 31, 2023 for additional detail.