Finding Text
Federal Agency: U.S. Department of Agriculture (USDA) Federal Program and Assistance Listing Number: Farm Labor Housing Loans and Grants, 10.405 2023-001 Reporting – Significant Deficiency in Internal Control Over Compliance Criteria and Condition: There are certain reports that must be submitted under the program on an annual basis. Some of these reports were not completed and submitted to the USDA. Context: There are three forms required to be filed with the USDA annually: Form 3560-7, Multiple Family Housing Project Budget/Utility Allowance; Form 3560-10, Multi-Family Housing Borrower Balance Sheet; and Form 3560-13, Borrower Certification of Performance Standards. For Plaza Del Milagro, forms 3560-7, 3560-10, and 3560-13 were not filed. For Plaza Del Sol, form 3560-13 was not filed. Cause: The organization did not have proper controls in place to complete and file the forms in a timely manner. Effect: The organization did not meet the reporting requirements under the program. There are no questioned costs because of this finding. Recommendation: The organization should file the reports immediately. Also, the organization should implement controls to adequately identify, complete and file reports in a timely manner. Views Responsible Officials and Planned Corrective Actions: We concur with the observations and recommendations as placed forth by our auditors – KCM. We experienced personnel related issues and did not adequately have bench strength in place to compensate. To address: 1. We will, with due haste, file the outstanding reports. 2. Have initiated a review and update of a ministry-wide master deliverables schedule to ensure compliance with timely filings. 3. Will ensure multiple team members are familiar with and capable of completing the filing.