Finding 503597 (2023-003)

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

AI Summary

  • Core Issue: One out of five tenant income certifications lacked necessary documentation for accurate income calculation.
  • Impacted Requirements: The Organization must follow RD Handbook guidelines for annual tenant income calculations.
  • Recommended Follow-Up: Ensure experienced staff manage RD projects to maintain compliance and accuracy in tenant income certifications.

Finding Text

Statement of Condition: ASO identified 1 tenant income certification of the 5 tested, that did not include supporting documentation for income calculation. Criteria: Per the RD Handbook, the Organization is required to accurately calculate income for tenants annually. Effect: Tenant and rental assistance amounts may contain errors due to incorrect income calculations. 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 tenant income certifications are completed accurately and files are properly maintained in accordance with RD requirements.

Corrective Action Plan

Finding No. 2023-003 A. 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. B. 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 tenant income certifications are completed and are properly maintained in accordance with RD requirements.

Categories

Questioned Costs

Other Findings in this Audit

  • 503596 2023-002
    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