Audit 376154

Federal Agency: U.S. Department of Agriculture (USDA) Federal Program and Assistance Listing Number: Farm Labor Housing Loans and Grants, 10.405 2025-001 Reporting – Significant Deficiency in Internal Control Over Compliance Criteria and Condition: There are certain reports that must be submitted under the program on an annual basis. Some of these reports were not completed and submitted to the USDA. Context: There are four forms required to be filed with the USDA annually: Form FIN1000, Multi-Family Information System Proposed Budget, Form 3560-7, Multiple Family Housing Project Budget/Utility Allowance; Form 3560-10, Multi-Family Housing Borrower Balance Sheet; and Form 3560-13, Borrower Certification of Performance Standards. For both Plaza Del Milagro and Plaza Del Sol, none of these forms were filled or prepared for submission. Cause: Due to organizational turnover – personnel had not yet been trained on the use of the USDA MINC reporting system by the filing deadline. Effect: The organization did not meet the reporting requirements under the program. There are no questioned costs because of this finding. Recommendation: The organization should complete and file the forms immediately. Views Responsible Officials and Planned Corrective Actions: We concur with the observations and recommendations as placed forth by our auditors – KCM. In addition to staff turnover, there was also USDA Account Executive turnover. We had reached out to alert the new Account Executive, Marijane Gunter, we would be delayed and are currently working on getting the appropriate forms filed.