Finding 403073 (2023-001)

Significant Deficiency
Requirement
N
Questioned Costs
-
Year
2023
Accepted
2024-06-26

AI Summary

  • Core Issue: The Corporation failed to make all required replacement reserve deposits, resulting in a shortfall of $69,604.
  • Impacted Requirements: This non-compliance with RD regulations puts the Corporation at risk of penalties.
  • Recommended Follow-Up: Ensure monthly deposits are made and transfer the $69,604 to the replacement reserve account promptly.

Finding Text

Statement of Condition The Corporation did not make all the required replacement reserve deposits during the year ended December 31, 2023 causing the replacement reserve cash account to be underfunded by $69,604 at December 31, 2023. Criteria The Corporation is required to fund the replacement reserve in accordance with RD requirements and agreements. Effect The Corporation is out of compliance with RD regulations. Cause The underfunding of the replacement reserve cash account was the result of an inadvertent bookkeeping oversight. Recommendation We recommend the Corporation makes the required monthly deposits to the replacement reserve cash account and transfer $69,604 to the replacement reserve cash account. Reporting Views of Responsible Officials Management is aware that the replacement reserve account needs to have deposits made during the year to comply with RD regulations and will transfer $69,604 to the replacement reserve cash account.

Corrective Action Plan

Comments: Management agrees with the finding. Actions: Management will make the required monthly transfer to the replacement reserve cash account. Management will transfer $$69,604 to the replacement reserve cash account.

Categories

Reporting Internal Control / Segregation of Duties

Other Findings in this Audit

  • 403074 2023-001
    Significant Deficiency
  • 403075 2023-001
    Significant Deficiency
  • 403076 2023-002
    Significant Deficiency
  • 403077 2023-002
    Significant Deficiency
  • 403078 2023-002
    Significant Deficiency
  • 979515 2023-001
    Significant Deficiency
  • 979516 2023-001
    Significant Deficiency
  • 979517 2023-001
    Significant Deficiency
  • 979518 2023-002
    Significant Deficiency
  • 979519 2023-002
    Significant Deficiency
  • 979520 2023-002
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
10.415 Rural Rental Housing Loans $1.60M
10.427 Rural Rental Assistance Payments $189,065
10.437 Interest Assistance Programs $67,056