Finding Text
S3800-010: Finding Reference Number
2023-002 (Material Weakness)
S3800-011: Program Information
Federal Program: Rural Rental Housing Loans (Section 515) Federal Agency: Department of Agriculture
(USDA) Assistance Listing #: 10.415
Pass-through Entity: None
Federal Award Identification Number and Year: N/A Type of Compliance Finding: E - Eligibility
S3800-015: Type of Finding
Federal Awards
S3800-016: Finding Resolution Status
Unresolved
S3800-017: Information on Universe Population Size
46
S3800-018: Sample Size Information
7
S3800-019: Identification of Repeat Finding and Finding Reference Number
N/A
S3800-020: Criteria
Per 7 CFR Part 3560, Rural Housing Service, Department of Agriculture, Direct Multi-Family Housing
Loans and Grants; multi-family housing projects must follow specific guidelines for determining
eligibility and determining whether they are in compliance with provisions in the Management Plan.
S3800-030: Statement of Condition
During our audit of the Organization’s fiscal year ended December 31, 2023 federal awards program,
we noted that the Organization did not have the necessary documentation related to eligibility for
four tenants in their files.
S3800-032: Cause
The Organization did not follow USDA required procedures for eligibility per its Management Plan.
S3800-033: Effect or Potential Effect
The Organization was not in compliance with the requirements of USDA related to determining
initial eligibility and recertification, thus ineligible tenants could have resided at the project. S3800-035: Auditor Non-Compliance Code
Z - Other
S3800-040: Questioned Costs
Unknown
S3800-045: Reporting Views of Responsible Officials
Management agrees with the finding.
S3800-050: Context
The Organization is required to be in compliance with provisions relating to tenant eligibility in
accordance with their Management Plan.
S3800-080: Recommendation
The Organization should follow procedures to ensure tenant eligibility and the Organization should
review the accuracy / completeness of the documentation being processed in the tenant files on a
periodic basis.
S3800-090: Auditor’s Summary of the Auditee’s Comments on the Findings and Recommendations
Auditee agreed with our recommendation.
S3800-130: Response Indicator
Agree
S3800-140: Completion Date or Proposed Completion Date
June 30, 2024
S3800-150: Response
See Corrective Action Plan