Finding Text
Finding No. 2024-004 – Identity-of-Interest Form RD 3560-31 – Other Matter Criteria: United States Department of Agriculture Rural Development (“USDA-RD”) regulations require borrowers participating in the Rural Rental Housing (Section 515) program to disclose any identity-of-interest relationships with suppliers, contractors, management agents, or other parties associated with the Project through filing Form RD 3560-31, Identity-of-Interest Disclosure Certificate. Condition: During our audit, we noted that the Project did not file the required Identity‑of‑Interest Disclosure Certificate with USDA‑RD. Effect: The Project is not in compliance with the reporting requirement. Cause: The Project does not have adequate controls to ensure all required USDA‑RD compliance forms are completed and submitted in a timely manner. Recommendation: The Project should implement a process to ensure the timely filing of all required USDA-RD forms and other filings. We also recommend the Project submit Form RD 3560-31 promptly to USDA-RD. Reporting Views of Responsible Officials: Management agrees with the finding, see the Corrective Action Plan.