Finding Text
Finding 2022-004: Year End Report Rural Rental Housing Loan - 10.415 Noncompliance/Material Weakness Criteria: The Project 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 December 31, 2022 and management indicated they had not yet completed them yet which was beyond the 90 day requirement. Cause: The three reports are the responsibility of one individual to complete and they indicated they were waiting on the audited financials to be complete. The three reports are due in 90 days after the fiscal year end and the audit is not due for 9 months past the fiscal year end. Effect or Potential Effect: The Project was in material noncompliance with U.S.D.A. Rural Development reporting requirements. Recommendation: The Project should complete and submit the late reports immediately. Further Project 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.