Finding 503596 (2023-002)

Material Weakness
Requirement
P
Questioned Costs
$1
Year
2023
Accepted
2024-10-24

AI Summary

  • Issue: Annual financial reports for 2023 were not submitted on time to RD.
  • Requirement: Reports must be filed within 90 days of year-end as per RD Handbook.
  • Follow-up: Ensure the new management company effectively submits reports on time moving forward.

Finding Text

Statement of Condition: Annual financial reports for 2023 were not filed with RD by the requested due date. Criteria: Per the RD Handbook, the Organization is required to submit timely financial reports directly to RD within 90 days of year end. Effect: The Organization is not in compliance with RD regulations. Cause: The Organization’s management prior to June 1, 2023 lacked the necessary skills and experience to manage the projects in accordance with requirements established by RD. Recommendation: The Organization should utilize staff with appropriate experience to perform the daily duties of managing a RD project. Management Response: As of June 1, 2023, the Organization hired an experienced management company to perform managerial duties related to the Projects. The management company will help ensure financial reports are submitted on a timely basis.

Corrective Action Plan

Finding No. 2023-002 C. Comments on the Finding and Each Recommendation: Management agrees with the finding. Management also agrees with the recommendation of ensuring the organization utilizes staff with appropriate experience to perform the duties of managing an RD project. D. Action Taken or Planned on the Finding: The Organization hired an experienced management company to perform managerial duties in June 2023. The management company will help ensure financial reports are submitted on a timely basis.

Categories

Questioned Costs

Other Findings in this Audit

  • 503597 2023-003
    Material Weakness
  • 1080038 2023-002
    Material Weakness
  • 1080039 2023-003
    Material Weakness

Programs in Audit

ALN Program Name Expenditures
10.427 Rural Rental Assistance Payments $100,384
10.415 Rural Rental Housing Loans $67,494