Finding Text
S3800-010: Finding Reference Number
2023-001 (Material Weakness)
S3800-011: Program Information
Federal Program: Rural Rental Housing Loans (Section 515) Federal Agency: Department of Agriculture
(USDA) Assistance Listing #: 10.415
Pass-through Entity: None
Federal Award Identification Number and Year: N/A
Type of Compliance Finding: A/B - Activities Allowed or Unallowed and Allowable Costs/Cost
Principles and N - Special Tests and Provisions
S3800-015: Type of Finding
Financial Statement and Federal Awards
S3800-016: Finding Resolution Status
Unresolved
S3800-017: Information on Universe Population Size
N/A
S3800-018: Sample Size Information
N/A
S3800-019: Identification of Repeat Finding and Finding Reference Number
N/A
S3800-020: Criteria
The regulatory agreement requires that the Organization’s books and records are maintained in
accordance with USDA guidelines and generally accepted accounting principles (GAAP).
S3800-030: Statement of Condition
During our audit of the Organization’s fiscal year ended December 31, 2023 financial statements and
federal award program, we noted the Organization’s books are not maintained in accordance with
GAAP. Several misstatements were identified by the auditor in the unaudited financial statements
and accounts of the Organization. We noted that the beginning net assets did not agree with the
prior year net assets. We also note that several accounts including mortgage interest and mortgage
balance did not agree to supporting documentation. We proposed adjusting entries including a prior
period adjustment to correct those accounts, which were accepted by management.
S3800-032: Cause
The Organization lacks adequate internal controls to ensure that books and records are kept
accurately and completely.S3800-033: Effect or Potential Effect
The Organization was not in compliance with the regulatory agreement requirement to maintain
accurate and complete books and accounts.
S3800-035: Auditor Non-Compliance Code
S – Internal Control Deficiencies
S3800-040: Questioned Costs
None
S3800-045: Reporting Views of Responsible Officials
Management agrees with the finding.
S3800-050: Context
The Organization is required to maintain books and records in accordance with USDA guidelines and
GAAP.
S3800-080: Recommendation
The Organization should follow their policies and procedures to ensure that accounting records are
kept accurate and complete, and a responsible official should review and sign off on the monthly
financial statements.
S3800-090: Auditor’s Summary of the Auditee’s Comments on the Findings and Recommendations
Auditee agreed with our recommendation.
S3800-130: Response Indicator
Agree
S3800-140: Completion Date or Proposed Completion Date
June 30, 2024
S3800-150: Response
See Corrective Action Plan