Finding Text
2023-004 U.S. Department Of Agriculture (USDA) reporting Criteria:
According to 7 CFR 3560.205 - 3560.303, and HB-2-3560, the CDP needs to comply with certain reporting requirements, to include annual submission of housing project budget and self-certification letter. Condition:
The CDP did not submit an annual operating budget and self-certification letter to USDA as required by regulations.
Cause:
The CDP staff was not aware of and did not follow the guidelines for the annual submission of operating budget and self-certification letter to USDA
Effect:
Increased risk of allocating unallowable costs and/or unauthorized spending. Operating budget enables the CDP to increase rents, adjust utility allowances for residents, and create capital budget. Failure to submit an operating budget may impact the financial health of the project and its residents. Failure to submit a self- certification letter is a violation of USDA performance standards.
Questioned Cost:
None noted
Recommendation:
Management to reach out to USDA to clarify a reporting format and put procedures in place to ensure that the annual operating budget as well as interim budget modifications are sent to USDA for review and approval. Management to put procedures in place to ensure a self-certification letter is submitted along with the USDA required financial reports.
Management's Views and Corrective Action Plan
Management's response is included in "Management's View and Corrective Action Plan" at the end of this report after the schedule of findings and questioned cost Criteria:Per 2 CFR section 200.303(a), a non-Federal entity must: