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: • Material Weakness 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 balance sheet reports sampled, none were properly reviewed. Context: Of the five sampled balance sheet reports, all five did not retain proper review and approval. Cause: The Organization did not follow its process involving indication of preparation and review of the balance sheet reports. Effect: Risk of incorrect reporting for the grant. Repeat Finding: No. Recommendation: We recommend ensuring the proper preparation and review of the balance sheets with indication of review with a sign off. 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.