Finding 1162175 (2024-004)

Material Weakness Repeat Finding
Requirement
L
Questioned Costs
-
Year
2024
Accepted
2025-11-10

AI Summary

  • Core Issue: There was a significant deficiency in internal controls, leading to one out of five income statement reports being incorrectly reported.
  • Impacted Requirements: All applicable data elements must be included in sampled reports to meet USDA criteria.
  • Recommended Follow-Up: Ensure thorough review of all income statement items before submission to prevent future reporting errors.

Finding Text

Federal Agency: U.S. Department of Agriculture Federal Program Title: Rural Rental Housing Loans Federal Assistance Listing Number: 10.415 Federal Award Identification Number(s) and Year(s): AMAS000000191197-2018, AMAS000000191198-2018, AMAS000000191199-2018, AMAS000000315075-2018, AMAS000000017171-2017, AMAS000000017172-2017, AMAS000001490130-2024 Award Period: 01/01/24 to 12/31/24 Type of Finding: • Significant Deficiency in Internal Control over Major Federal Programs Criteria or Specific Requirement: Review the supporting records and ascertain whether all applicable data elements were included in the sampled reports. Condition: Of the five income statement reports sampled, one was not reported correctly. Context: Of the five sampled income statement reports, all five were properly reviewed with one of the samples being incorrectly reported. Cause: There was an error in the reporting process as not all amounts were reported. Effect: Incorrect reporting for the grant. Repeat Finding: No. Recommendation: We recommend ensuring all income statement items are properly reviewed and reported to the USDA. Views of Responsible Officials and Planned Corrective Actions: No disagreement with the finding. Management Response: The year-end actual income statements will be prepared by the Portfolio Accountant based on year-end policies and procedures. The income statement will be reviewed by the Property Director, the Finance Director, initialed and then entered into MINC.

Corrective Action Plan

Rural Rental Housing Loans - Federal Assistance Listing #10.415 Recommendation: We recommend ensuring all income statement items are properly reviewed and reported to the USDA. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: The year-end actual income statements will be prepared by the Portfolio Accountant based on year-end policies and procedures. The income statement will be reviewed by the Property Director, the Finance Director, initialed and then entered into MINC. Names of the contact persons responsible for corrective action: Julie Schueller, Finance Director and Deanna Hemmesch, Executive Director Planned completion date for corrective action plan: December 31, 2025

Categories

Reporting Significant Deficiency Matching / Level of Effort / Earmarking Internal Control / Segregation of Duties

Other Findings in this Audit

  • 1162176 2024-005
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
10.415 RURAL RENTAL HOUSING LOANS $608,337
14.267 CONTINUUM OF CARE PROGRAM $155,782
10.427 RURAL RENTAL ASSISTANCE PAYMENTS $24,188