Finding Text
Finding 2024-001
Federal assistance listing number and name: 10.415 Rural Rent Housing Loans
Awards numbers and years: 2024
Federal agency: United States Department of Agriculture
Compliance Requirement: Activities allowed or unallowed, allowable costs/ cash management, eligibility,
equipment, period of performance, procurement, program income, reporting, special tests
Questioned Costs: None
Criteria:
In accordance with 2 CFR §200.512(a), non-Federal entities that expend $750,000 or more in Federal
awards during the fiscal year must submit the audit report to the FAC Federal Audit Clearinghouse
(FAC) within the earlier of 30 calendar days after receipt of the auditor’s report(s), or nine months after
the end of the audit period. Additionally, program-specific requirements may mandate timely submission
to other agencies, including Rural Development (RD).
Condition and Context:
The auditee did not submit the required audit reports to the Federal Audit Clearinghouse (FAC) and Rural
Development (RD) in a timely manner. Specifically:
The 2023 Audit Report was not submitted to the FAC as required under 2 CFR Part 200, Subpart F.
The 2024 Audit Report was submitted past the regulatory deadline to both the FAC and RD.
Cause:
The delays and omission appear to have resulted from the prior auditor not being able to submit the
Audit Report due to technical issues and the Rural Department not providing the loan statements in a
timely manner.
Effect:
Failure to submit audit reports timely impedes the federal government’s oversight responsibilities,
potentially affects the auditee's risk assessment, and may jeopardize continued funding eligibility.
Recommendation:
Management should establish and adhere to a documented internal timeline to ensure timely audit
preparation and submission. This should include calendar reminders, assigned staff responsibilities, and
periodic checks throughout the audit cycle. Communication with the auditor should begin early in the
fiscal year to ensure deadlines are met.