Finding 574442 (2024-001)

Significant Deficiency
Requirement
E
Questioned Costs
-
Year
2024
Accepted
2025-08-22

AI Summary

  • Core Issue: The Center failed to submit the performance standards borrower self-certification letter to the USDA within the required 90 days after year-end.
  • Impacted Requirements: The reserve balance was below the budgeted threshold, and no necessary transfer was made as per the loan resolution.
  • Recommended Follow-Up: Ensure timely submission of the certification letter and address the reserve account funding to meet compliance standards.

Finding Text

The Center is required to complete and submit performance standards borrower self-certification letter within 90 days following year end and disclose whether the Center has or has not complied with the specific requirement listed in the letter. Item 3 of the letter stated the Center’s reserve accounts were on schedule with the required minimum funding requirements. We noted the reserve balance at year end was below the threshold set in the 2024 budget and no required transfer was made as required by the loan resolution. In addition, the letter was not submitted to the USDA within 90 days following year end.

Corrective Action Plan

Management agrees with the finding and recommendation.

Categories

Matching / Level of Effort / Earmarking

Other Findings in this Audit

  • 1150884 2024-001
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
10.415 Rural Rental Housing Loans $1.22M
93.696 Certified Community Behavioral Health Clinic Expansion Grants $1.11M
93.958 Block Grants for Community Mental Health Services $432,026
10.427 Rural Rental Assistance Payments $70,227