FAC Explorer

Finding 576118 (2024-001)

Material Weakness Repeat Finding
Requirement
B
Questioned Costs
-
Year
2024
Accepted
2025-09-10
Audit: 366034
Organization: Harvard Townhouse, Inc. (NE)
Auditor: Core CPAS

AI Summary

  • Core Issue: There is a material weakness in internal controls due to inadequate segregation of duties related to the Rural Rental Housing Loans program.
  • Impacted Requirements: This finding affects compliance with allowable costs and cost principles under federal regulations.
  • Recommended Follow-Up: Review and implement corrective actions as outlined by the responsible manager to address this ongoing issue.

Finding Text

FINDING 2024-001: Material Weakness in Internal Control over Compliance – Inadequate Segregation of Duties Federal Program: CFDA 10.415 – Rural Rental Housing Loans Pass-Through Entity: U.S. Department of Agriculture – Rural Development Award Number: N/A Compliance Requirements: B – Allowable Costs/Cost Principles Type of Finding: Material Weakness in Internal Control over Compliance Criteria: See Part II, Finding 2024-001 Condition and Context: See Part II, Finding 2024-001 Questioned Costs: N/A Cause: See Part II, Finding 2024-001 Effect or Potential Effect: See Part II, Finding 2024-001 Recommendation: See Part II, Finding 2024-001 Repeat Finding: 2023-001, 2022-001, 2021-001, 2020-001, 2019-001, 2018-001, 2017-001, 2016-001, 2015- 001, 2014-001, and 2013-001 Responsible Official’s Response and Corrective Action Plan: See Page 43, Finding 2024-001 Planned Implementation Date: See Page 43, Finding 2024-001 Person Responsible for Corrective Action: Manager

Corrective Action Plan

Finding 2024-001 The Project is relatively small with only one administrative staff. Further the Board of Directors is a volunteer board and not a managing board. It does not have the time nor expertise to provide the necessary services to correct the internal control deficiencies noted. The Board of Directors has reviewed this issue, and determined there are no additional procedures which can reasonably be done to eliminate these deficiencies. As such, the Board of Directors accepts this finding.

Categories

Allowable Costs / Cost Principles Internal Control / Segregation of Duties Subrecipient Monitoring Material Weakness Matching / Level of Effort / Earmarking

Other Findings in this Audit

  • 1152560 2024-001
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
14.239 Home Investment Partnerships Program $300,000
10.427 Rural Rental Assistance Payments $54,880
10.415 Rural Rental Housing Loans $40,800