Finding Text
Finding 2023-007: Year End Reporting
Rural Rental Housing Loan - 10.415
Noncompliance/Material Weakness
Criteria: The Authority 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 March 31, 2023 and management indicated they had not yet completed them yet which was beyond the 90 day requirement.
Cause: The Authority was late in completing its year end financial records.
Effect or Potential Effect: The Authority was in material noncompliance with U.S.D.A. Rural Development reporting requirements.
Recommendation: The Authority should complete and submit the late reports immediately. Further Authority 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.