Finding Text
FEDERAL AWARDS FINDING Year Ended December 31, 2022 Finding 2022-005 Federal assistance listing number and name: 10.415 Rural Rent Housing Loans Awards numbers and years: 2022 Federal agency: United States Department of Agriculture Compliance Requirement: Special tests and provisions, Reporting, Equipment and real property management Questioned Costs: None Criteria: The Projects are in a workout plan with RD to resolve non-compliance issues. The Projects are required to prepare proper certifications for all tenants as well as close open maintenance items in a timely manner. Condition and Context: The Projects are in a non-compliance workout plan with RD due to various non-compliance findings. Effect: The Project is operating in non-compliance with RD rules and regulations. Cause: The prior management did not comply with RD rules and regulations relating to improper maintenance of the buildings, certification of tenants, and the insurance reserve not being established. Recommendation: We recommend that the project continue to work with RD to resolve the non-compliance issues.