Finding 4872 (2023-007)

Material Weakness

Requirement

Questioned Costs

Year

2023

Accepted

2023-12-15

Audit: 7022

Organization: Richland County Housing Authority (MT)

Auditor: Niewedde & Wiens Cpa's

AI Summary

Core Issue: The Authority failed to submit required year-end reports on time, missing the 90-day deadline.
Impacted Requirements: Noncompliance with U.S.D.A. Rural Development reporting standards due to late completion of financial records.
Recommended Follow-Up: Submit the overdue reports immediately and establish procedures to ensure future compliance with deadlines.

Finding Text

Finding 2023-007: Year End Reporting Rural Rental Housing Loan - 10.415 Noncompliance/Material Weakness Criteria: The Authority is responsible for completing and submitting Form RD 3560-7, Form RD 3560-10 and Attachment 4-F, Performance Standards Borrower Self-Certification Letter, within 90 days following the close of the project year end. Condition: We had requested copies of Form RD 3560-7, Form RD 3560-10 and Attachment 4-F for the yead ended March 31, 2023 and management indicated they had not yet completed them yet which was beyond the 90 day requirement. Cause: The Authority was late in completing its year end financial records. Effect or Potential Effect: The Authority was in material noncompliance with U.S.D.A. Rural Development reporting requirements. Recommendation: The Authority should complete and submit the late reports immediately. Further Authority should have procedures in place to ensure the require reports are submitted within the deadline. View of the Responsible Officials of the Auditee: The auditee’s management agrees with the finding.

Corrective Action Plan

Finding 2023-007: Year End Reporting Rural Rental Housing Loan-10.415 Noncompliance/Material Weakness: AGREED RCHA Administration agrees it is responsible for completing and submitting Form RD 3560-7, Form RD 3560-10 and Attachment 4-F, Performance Standards Borrower Self-Certification letter, within 90 days following the close of the project year end. RCHA does believe these forms were presented to USDA representatives for the program, and was refused due to RD personnel believing RCHA was using the wrong fiscal year. This issue lasted many months and only after change of USDA personnel and contact with fee accountant and auditor, was the issue resolved. Corrective Action: RCHA Administration will have forms completed accurately and presented to those required immediately. Corrective Action: RCHA Administration will complete forms and turn into USDA personnel on time and accurately. Policies and procedures will be clear, approved and monitored by Board of Commissioners, and completed by RCHA Administration before June 29th each year. This action will be completed by June 29, 2024.

Other Findings in this Audit

4870 2023-008

-
4871 2023-006

Material Weakness Repeat
581312 2023-008

-
581313 2023-006

Material Weakness Repeat
581314 2023-007

Material Weakness

Programs in Audit

ALN	Program Name	Expenditures
10.415	Rural Rental Housing Loans	$381,460
14.871	Section 8 Housing Choice Vouchers	$208,950
14.850	Public and Indian Housing	$159,003
10.427	Rural Rental Assistance Payments	$87,000
14.872	Public Housing Capital Fund	$66,440