Finding Text
Material Weakness – Reporting Criteria All borrowers who have a Section 515 Rural Rental Housing (RRH) loan or a Section 514 Off-Farm Labor Housing loan must comply with the financial reporting requirements of the Guide. Year-end reporting requirements include the use of Forms RD 3560-7, Multiple Family Housing Project Budget/Utility Allowance Budget Actuals and Form RD 3560-10, MFH Borrower Balance Sheet. Condition: The Program did not submit the required Form RD 3560-7 or 3560-10 reports in a timely manner. Cause: Lack of internal controls to ensure timely submission. Questioned Costs: Not Applicable. Effect: Non-compliance with reporting requirements. Repeat Finding: This is a repeat of prior year finding 2022-002. Recommendation: We recommend the Program review its internal control policies and procedures to ensure timely reporting. Response: The Program agrees with the finding and will implement controls to ensure timely reporting for future submissions.