Finding 636063 (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.

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
  • 59621 2022-002
    Material Weakness Repeat
  • 59622 2022-001
    Material Weakness Repeat
  • 59623 2022-002
    Material Weakness Repeat
  • 636062 2022-001
    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