Finding 42617 (2022-001)

Significant Deficiency
Requirement
N
Questioned Costs
-
Year
2022
Accepted
2023-04-09
Audit: 46004
Organization: Rosamond Hills, Inc. (CA)

AI Summary

  • Core Issue: The replacement reserve cash account is underfunded by $1,792 as of December 31, 2022.
  • Impacted Requirements: This situation violates RD funding requirements and agreements.
  • Recommended Follow-Up: Management should transfer $1,792 to the replacement reserve cash account to resolve the issue.

Finding Text

Finding No. 2022-001 Type of Finding: Noncompliance Finding Finding Resolution Status: Open Questioned Costs: None Noncompliance Information: 1 instance of noncompliance Auditor Noncompliance Code: B ? Replacement Reserve Statement of Condition The replacement reserve cash account was underfunded by $1,792 at December 31, 2022. 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 transfer $1,792 to the replacement reserve cash account. Reporting Views of Responsible Officials Management is aware that the replacement reserve account is underfunded and will transfer $1,792 to the replacement reserve cash account.

Corrective Action Plan

Name of Auditee: Rosamond Hills, Inc RD Case No. 04-015-647929361 Name of audit firm: Propp Christensen Caniglia LLP Period covered by the audit: January 1, 2022 through December 31, 2022 CAP prepared by: Name: Gretchen Winfrey Position: Treasurer Email: winfrey3314@yahoo.com Finding 2022-001 Comments: Management agrees with the finding. Actions: Management will implement internal controls and monitor the reserve for replacement account to ensure the reserve for replacement is funded each year in accordance with USDA-RD regulations.

Categories

Reporting Internal Control / Segregation of Duties

Other Findings in this Audit

  • 619059 2022-001
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
10.415 Rural Rental Housing Loans $1.97M
10.427 Rural Rental Assistance Payments $317,936