Finding 20113 (2022-002)

Material Weakness
Requirement
L
Questioned Costs
-
Year
2022
Accepted
2023-07-27
Audit: 21475
Organization: Mt. Si Senior Center (WA)

AI Summary

  • Core Issue: The Organization failed to submit the required annual budgets for FY 2022 and FY 2023 on time.
  • Impacted Requirements: Compliance with USDA budgetary submission deadlines was not met.
  • Recommended Follow-Up: The Organization should strengthen internal controls to ensure timely budget submissions in the future.

Finding Text

Federal agency: United States Department of Agriculture (USDA) Federal program title: Rural Rental Housing Loans CFDA Number: 10.415 Award Period: Loan with Continuing Compliance Type of Finding: ? Material Weakness in Internal Control over Compliance Criteria or specific requirement: The Organization was required to submit an annual budget for fiscal year 2022 and a proposed budget for fiscal year 2023 in a timely manner. Condition: The Organization did not timely submit the required annual budgets. Questioned costs: None. Context: The budgets are required annually. Cause: The property manager did not submit the required budget, and the Organization did not have controls in place to detect the omission. Effect: The Organization is not in compliance with the budgetary requirements set forth by USDA. Repeat Finding: No Recommendation: The Organization should evaluate its internal controls over compliance and implement additional controls over the budgetary requirements set forth by the USDA.

Corrective Action Plan

Views of responsible officials: The project coordinator at the property management firm oversees all recurring projects and ensures deadlines aren't missed. Digital reminders are used to ensure budgets are started and submitted on-time. USDA budgets are required to be submitted 90-days before the end of the project's fiscal year if a rent increase is being requested and 60-days prior to the end of the fiscal year if no rent increase is requested. The USDA budget submission consists of a hard copy submission comprised of a budget using form 3560-7, a budget narrative, rent increase notice to tenant's (if applicable), and utility allowance calculations (if applicable). Additionally, the budget is submitted electronically through USDA's MINC system. Confirmation of the submission of the USDA budget is provided to the Executive Director and Accounting & HR Technician at Mt. Si Senior Center. Confirmation of the submission of the USDA budget is provided to the Executive Director and Accounting & HR Technician at Mt. Si Senior Center. Confirmation of the submission of the USDA budget is provided to the Executive Director and Accounting & HR Technician at Mt. Si Senior Center.

Categories

Material Weakness Reporting Matching / Level of Effort / Earmarking Internal Control / Segregation of Duties

Other Findings in this Audit

  • 20114 2022-002
    Material Weakness
  • 20115 2022-002
    Material Weakness
  • 596555 2022-002
    Material Weakness
  • 596556 2022-002
    Material Weakness
  • 596557 2022-002
    Material Weakness

Programs in Audit

ALN Program Name Expenditures
10.415 Rural Rental Housing Loans $782,752
14.218 Community Development Block Grants/entitlement Grants $302,332
10.427 Rural Rental Assistance Payments $128,897
20.509 Formula Grants for Rural Areas and Tribal Transit Program $125,000
93.568 Low-Income Home Energy Assistance $61,576
93.045 Special Programs for the Aging_title Iii, Part C_nutrition Services $50,124
93.053 Nutrition Services Incentive Program $7,112
93.044 Special Programs for the Aging_title Iii, Part B_grants for Supportive Services and Senior Centers $2,500