Finding 512300 (2024-007)

Material Weakness Repeat Finding
Requirement
L
Questioned Costs
-
Year
2024
Accepted
2024-11-26

AI Summary

  • Core Issue: The Authority failed to submit required year-end reports on time, leading to material noncompliance.
  • Impacted Requirements: Reports Form RD 3560-7, Form RD 3560-10, and Attachment 4-F must be submitted within 90 days after the project year ends.
  • Recommended Follow-Up: Implement a procedure to ensure timely report completion and maintain submission records.

Finding Text

Finding 2024-007: Year End Reporting Rural Rental Housing Loan - 10.415, Rural Rental Housing Assistance – 10.427 Repeat Finding 2023-007 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, 2024 and was unable to provide evidence that they were submitted and as a result we were unable to test the figures submitted. Cause: The Authority was unable to document that the reports were filed. Effect or Potential Effect: The Authority was in material noncompliance with U.S.D.A. Rural Development reporting requirements. Recommendation: The Authority should establish a procedure to complete the reports within the required timeframe and maintain records of what was submitted. View of the Responsible Officials of the Auditee: The auditee’s management agrees with the finding.

Corrective Action Plan

Finding 2024-007: 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 a change of USDA personnel and contact with the fee accountant and auditor, was the issue resolved. Corrective Action: RCHA Administration will have forms completed accurately and presented to those required immediately and will keep thorough copies of those items. RCHA continues to have issues with the MINC program, including approvements for timely payments. Corrective Action: RCHA Administration will complete forms and turn them into USDA personnel on time and accurately. Policies and procedures will be clear, approved and monitored by the Board of Commissioners, and completed by RCHA Administration before June 29th each year. This action will be completed immediately.

Categories

Material Weakness Reporting Matching / Level of Effort / Earmarking

Other Findings in this Audit

  • 512298 2024-008
    - Repeat
  • 512299 2024-006
    Material Weakness Repeat
  • 512301 2024-007
    Material Weakness
  • 1088740 2024-008
    - Repeat
  • 1088741 2024-006
    Material Weakness Repeat
  • 1088742 2024-007
    Material Weakness Repeat
  • 1088743 2024-007
    Material Weakness

Programs in Audit

ALN Program Name Expenditures
10.415 Rural Rental Housing Loans $365,042
14.871 Section 8 Housing Choice Vouchers $244,154
14.850 Public and Indian Housing $174,866
14.872 Public Housing Capital Fund $105,793
10.427 Rural Rental Assistance Payments $60,465