Finding 59621 (2022-002)

Material Weakness Repeat Finding
Requirement
L
Questioned Costs
-
Year
2022
Accepted
2023-09-17
Audit: 55803
Organization: Aneta Homes Inc. (ND)

AI Summary

  • Core Issue: The Program failed to submit required financial reports (Forms RD 3560-7 and 3560-10) on time.
  • Impacted Requirements: Compliance with financial reporting criteria for Section 515 and Section 514 loans is not being met.
  • Recommended Follow-Up: Review and strengthen internal controls to ensure timely submission of reports in the future.

Finding Text

Finding 2022-002 ? Material Weakness ? Reporting Criteria All borrowers who have a Section 515 Rural Rental Housing (RRH) loan or a Section 514 Off-Farm Labor Housing loan must comply with the financial reporting requirements of the Guide. Year-end reporting requirements include the use of Forms RD 3560-7, Multiple Family Housing Project Budget/Utility Allowance Budget Actuals and Form RD 3560-10, MFH Borrower Balance Sheet. Condition: The Program did not submit the required Form RD 3560-7 or 3560-10 reports in a timely manner. Cause: Lack of internal controls to ensure timely submission. Effect: Non-compliance with reporting requirements. Repeat Finding: This is a repeat of prior year finding 2021-002. Recommendation: We recommend the Program review its internal control policies and procedures to ensure timely reporting. Response: The Program agrees with the finding and will implement controls to ensure timely reporting for future submissions.

Corrective Action Plan

2022-002 ? Reporting Contact Person Terry Hanson Corrective Action Plan The Program will implement procedures to ensure timely reporting for future report submissions. Planned Completion Date for CAP July 30, 2023

Categories

Material Weakness Reporting Matching / Level of Effort / Earmarking Internal Control / Segregation of Duties

Other Findings in this Audit

  • 59620 2022-001
    Material Weakness Repeat
  • 59622 2022-001
    Material Weakness Repeat
  • 59623 2022-002
    Material Weakness Repeat
  • 636062 2022-001
    Material Weakness Repeat
  • 636063 2022-002
    Material Weakness Repeat
  • 636064 2022-001
    Material Weakness Repeat
  • 636065 2022-002
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
10.427 Rural Rental Assistance Payments $16,570
10.415 Rural Rental Housing Loans $1,469