FAC Explorer

Finding 20166 (2022-002)

Significant Deficiency
Requirement
L
Questioned Costs
-
Year
2022
Accepted
2023-08-17
Audit: 27067
Organization: Farmworker Housing Development Corporation (OR)
Auditor: Kern & Thompson LLC

AI Summary

  • Core Issue: Reporting to USDA Rural Development was not completed on time, indicating a significant deficiency in internal controls.
  • Impacted Requirements: Timely financial reporting is essential; controls should prevent delays in submissions.
  • Recommended Follow-Up: Create a reporting calendar and action plan to ensure timely submissions with dual control oversight.

Finding Text

Finding 2022-002 ? Significant Deficiency ? Reporting, AL #10.415 Condition ? It was noted during the audit that reporting to USDA Rural Development (form 3560-10) was not done within prescribed timelines. Criteria ? Internal controls over the preparation of an organization?s reporting should be designed to prevent late reporting. Context and Cause ? The reporting is tasked with a department outside of fiscal staff, without access to the necessary financial information to complete the reporting. Effect of Condition ? The events above resulted in late reporting. Recommendation ? In order for the Organization?s internal controls over the preparation of financial reporting, a calendar should be developed with a plan of action to complete the reports under dual control. Views of Responsible Officials and Planned Corrective Actions ? Management concurs with the finding and has developed a corrective action plan. We understand a significant deficiency is identified in the internal control over reporting. It does not impact the Organization?s ability to manage federal funds. Regardless, we place the utmost importance on the summary of auditors? results and will work to increase the strength of our internal controls over financial reporting.

Corrective Action Plan

2022-002 Finding ? Federal Award ? Significant Deficiency/Significant Noncompliance over attribute L-Reporting. US Department of Agriculture Rural Development 10.415 Context and Cause ? It was noted during the audit that reporting to USDA Rural Development (form 3560-10) was not done within prescribed timelines. The reporting is tasked with a department outside of fiscal staff, without access to the necessary financial information to complete the reporting. Recommendation ? In order for the Organization?s internal controls over the preparation of financial reporting, a calendar should be developed with a plan of action to complete the reports under dual control, with preparation by personnel with the means to access the necessary data, and review by someone familiar with the reporting required by USDA RD. Action Taken: FHDC will utilize a reporting calendar, monitored by more than one staff member. Staff charged with creating the report will have access to the necessary financial data. Staff charged with review will have the necessary familiarity with the required reports to perform the review.

Categories

Reporting Significant Deficiency

Other Findings in this Audit

  • 20167 2022-002
    Significant Deficiency
  • 20168 2022-002
    Significant Deficiency
  • 20169 2022-002
    Significant Deficiency
  • 20170 2022-002
    Significant Deficiency
  • 20171 2022-002
    Significant Deficiency
  • 596608 2022-002
    Significant Deficiency
  • 596609 2022-002
    Significant Deficiency
  • 596610 2022-002
    Significant Deficiency
  • 596611 2022-002
    Significant Deficiency
  • 596612 2022-002
    Significant Deficiency
  • 596613 2022-002
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
10.415 Rural Rental Housing Loans $1.50M
10.433 Rural Housing Preservation Grants $919,552
14.239 Home Investment Partnerships Program $116,686
10.427 Rural Rental Assistance Payments $106,766
21.026 Homeowner Assistance Fund $30,000