EIN: 010504306
UEI: KYHCWEFZ5ZE9
Audited by: OTIS ATWELL
Oversight agency: 10 [Department of Agriculture]
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Data as of August 28, 2026
Management decision deadline — for entities that funded this organization
The FAC accepted this audit on September 11, 2025. Under 2 CFR 200.521(d), a pass-through entity that provided federal funds to this organization for this audit period must issue a management decision on these findings by March 11, 2026 (171 days ago).
What is a management decision? →FAC accepted this audit on September 16, 2024 — management decision was due March 16, 2025.
FAC accepted this audit on September 18, 2023 — management decision was due March 18, 2024.
A significant audit adjustment related to accounts receivable and operating expense was needed in order to present the consolidated financial statements in accordance with generally accepted accounting principles. Criteria: Management is responsible for maintaining its accounting records in accordance with generally accepted accounting principles. Cause: Inadequate controls over financial closing procedures. Effect or Potential Affect: As a result of the condition, the Organization?s accounting records were initially misstated by amounts significant to the consolidated financial statements. Recommendations: We recommend that control systems are put in place to ensure there is proper training and review over monthly and annual financial closing procedures to eliminate errors in the future. Reporting Views of Responsible Officials and Planned Corrective Action: While policies and procedures were fundamentally sound, deficiencies existed in the oversight and review of significant transactions over accounts receivable and operating expenses during financial closing procedures. Therefore, the following action will be implemented by December 31, 2023: ? Conduct internal training over monthly and annual financial closing procedures.
Show full finding ▾Hide full finding ▴Finding No. 2022-001: Questioned Costs: N/A. Information on Universe and Population Size: N/A Sample Size Information: N/A Noncompliance Information: No instances of noncompliance identified.Statement of Condition: A significant audit adjustment related to accounts receivable and operating expense was needed in order to present the consolidated financial statements in accordance with generally accepted accounting principles. Criteria: Management is responsible for maintaining its accounting records in accordance with generally accepted accounting principles. Cause: Inadequate controls over financial closing procedures. Effect or Potential Affect: As a result of the condition, the Organization?s accounting records were initially misstated by amounts significant to the consolidated financial statements. Recommendations: We recommend that control systems are put in place to ensure there is proper training and review over monthly and annual financial closing procedures to eliminate errors in the future. Reporting Views of Responsible Officials and Planned Corrective Action: While policies and procedures were fundamentally sound, deficiencies existed in the oversight and review of significant transactions over accounts receivable and operating expenses during financial closing procedures. Therefore, the following action will be implemented by December 31, 2023: ? Conduct internal training over monthly and annual financial closing procedures.
Current Finding on the Schedule of Findings and Questioned Costs: 1. Finding 2022-001: a. Comments on the Finding: We concur that a significant audit adjustment related to accounts receivable and operating expense was needed in order to present the consolidated financial statements in accordance with generally accepted accounting principles, and are in agreement with the recommendations to implement training for the monthly and annual closing and financial reporting review procedures. b. Action(s) Taken or Planned on the Finding: We have posted the adjustment recommended by the auditors and will implement the following control by December 31, 2023: ? Conduct internal training over monthly and annual financial closing procedures.
2021-002
FAC accepted this audit on September 27, 2022 — management decision was due March 27, 2023.
During our consideration of internal controls over cash disbursements, we noted that the accounts payable clerk has the capability within QuickBooks to create and print signed checks. Criteria: Attachment 4-J Section F ?Cash Disbursements? of the Consolidated Audit Guide for the Audits of RD Programs requires that ?All disbursements from the regular operating account must be supported by approved invoices, bills, or other supporting documentation. Project funds should only be used to pay for mortgage payments, required deposits to the reserve for replacement fund, reasonable expenses necessary for the operation and maintenance of the project, distributions, as permitted, and repayment of owner advances or as authorized by RD.? Cause: Lack of segregation of duties over check generation function. Effect or Potential Effect: Use of project funds for unallowable costs. Recommendations: We recommend that a mitigating control be implemented whereby a management member reviews the operating cash account activity on a routine basis throughout each month. The review should include scanning disbursement activity for potential unauthorized vendors and unauthorized payments. Reporting Views of Responsible Officials and Planned Corrective Action: We agree in principle with the finding and acknowledge that while it is the practice to have the accounting manager review the checks before they are sent out by the accounts payable clerk, and no instances of noncompliance were identified, there remains a reasonable possibility of material noncompliance. We have since implemented the recommended mitigating control.
Show full finding ▾Hide full finding ▴Statement of Condition: During our consideration of internal controls over cash disbursements, we noted that the accounts payable clerk has the capability within QuickBooks to create and print signed checks. Criteria: Attachment 4-J Section F ?Cash Disbursements? of the Consolidated Audit Guide for the Audits of RD Programs requires that ?All disbursements from the regular operating account must be supported by approved invoices, bills, or other supporting documentation. Project funds should only be used to pay for mortgage payments, required deposits to the reserve for replacement fund, reasonable expenses necessary for the operation and maintenance of the project, distributions, as permitted, and repayment of owner advances or as authorized by RD.? Cause: Lack of segregation of duties over check generation function. Effect or Potential Effect: Use of project funds for unallowable costs. Recommendations: We recommend that a mitigating control be implemented whereby a management member reviews the operating cash account activity on a routine basis throughout each month. The review should include scanning disbursement activity for potential unauthorized vendors and unauthorized payments. Reporting Views of Responsible Officials and Planned Corrective Action: We agree in principle with the finding and acknowledge that while it is the practice to have the accounting manager review the checks before they are sent out by the accounts payable clerk, and no instances of noncompliance were identified, there remains a reasonable possibility of material noncompliance. We have since implemented the recommended mitigating control.
a. Comments on the Finding: We concur with the recommendation; we have implemented a mitigating control whereby management members are detail reviewing the operating cash account activity on a routine basis throughout each month. The review procedures include scanning disbursement activity for potential unauthorized vendors and unauthorized payments. b. Action(s) Taken or Planned on the Finding: We have implemented the recommended mitigating control whereby management members are detail reviewing the operating cash account activity on a routine basis throughout each month. The review procedures include scanning disbursement activity for potential unauthorized vendors and unauthorized payments. c. Completed Date: Completed as of January 3, 2022.
FAC accepted this audit on October 11, 2021 — management decision was due April 11, 2022.
During our consideration of internal controls over cash disbursements, we noted that the accounts payable clerk has the capability within QuickBooks to create and print signed checks. Criteria: Attachment 4-J Section F ?Cash Disbursements? of the Consolidated Audit Guide for the Audits of RD Programs requires that ?All disbursements from the regular operating account must be supported by approved invoices, bills, or other supporting documentation. Project funds should only be used to pay for mortgage payments, required deposits to the reserve for replacement fund, reasonable expenses necessary for the operation and maintenance of the project, distributions, as permitted, and repayment of owner advances or as authorized by RD.? Cause: Lack of segregation of duties over check generation function. Effect or Potential Effect: Use of project funds for unallowable costs. Recommendations: We recommend that controls be implemented to segregate the generation and signing of check functions and that the check register report be reviewed monthly by the CFO. Reporting Views of Responsible Officials: We agree in principle with the finding and acknowledge that while it is the practice to have the accounting manager review the checks before they are sent out by the accounts payable clerk, and no instances of noncompliance were identified, there remains a reasonable possibility of material noncompliance.
Show full finding ▾Hide full finding ▴Statement of Condition: During our consideration of internal controls over cash disbursements, we noted that the accounts payable clerk has the capability within QuickBooks to create and print signed checks. Criteria: Attachment 4-J Section F ?Cash Disbursements? of the Consolidated Audit Guide for the Audits of RD Programs requires that ?All disbursements from the regular operating account must be supported by approved invoices, bills, or other supporting documentation. Project funds should only be used to pay for mortgage payments, required deposits to the reserve for replacement fund, reasonable expenses necessary for the operation and maintenance of the project, distributions, as permitted, and repayment of owner advances or as authorized by RD.? Cause: Lack of segregation of duties over check generation function. Effect or Potential Effect: Use of project funds for unallowable costs. Recommendations: We recommend that controls be implemented to segregate the generation and signing of check functions and that the check register report be reviewed monthly by the CFO. Reporting Views of Responsible Officials: We agree in principle with the finding and acknowledge that while it is the practice to have the accounting manager review the checks before they are sent out by the accounts payable clerk, and no instances of noncompliance were identified, there remains a reasonable possibility of material noncompliance.
Comments on the Finding: We concur with the recommendation, a segregation of duties control using QuickBooks system authority levels whereby the accounts payable clerk will not have the ability to create and generate checks will be implemented prior to September 30, 2021. Action(s) Taken or Planned on the Finding: We will implement a segregation of duties control using QuickBooks system authority levels whereby the accounts payable clerk will not have the ability to create and generate checks prior to September 30, 2021. Additionally, the accounting manager or property manager will select and approve the invoices for check generation by the accounts payable clerk.
2019-001
FAC accepted this audit on December 9, 2020 — management decision was due June 9, 2021.
The Organization holds a majority of its cash balances with Camden National Bank. The total cash balance includes operating cash accounts, tenant security deposit accounts, tax and insurance escrow accounts, and replacement reserve accounts at USDA, Rural Development financed projects. $163,456 of the total cash held at Camden National Bank is uninsured as of December 31, 2019. Criteria: Attachment 4-J Section E "Cash Receipts" of the Consolidated Audit Guide for the Audits of RD Programs requires that ?all cash receipts, including those collected by a management agent, must be deposited into an account in the name of the project at an institution in which deposits are federally insured.? Cause: The Organization?s projects are managed by different management agents. The total cash was not reviewed during the year to ensure all project accounts held at Camden National Bank were covered by FDIC insurance or other collateral. Effect or Potential Effect: Financial loss of the uninsured balance in the event of bank insolvency. Recommendations: We recommend that management review bank balances during the year to ensure that the balances at one financial institution do not exceed the FDIC insurance limit. If necessary, excess funds should be collateralized or funds should be moved to additional financial institutions in order to gain full insurance coverage. Reporting Views of Responsible Officials: All properties are now being managed by one management agent in 2020. We plan to monitor financial institution balances for each project during the year to ensure the total amount held at each financial institution does not exceed the FDIC insurance limit.
Show full finding ▾Hide full finding ▴Finding No. 2019-003 Questioned Costs: $163,456 Information on Universe and Population Size: N/A Sample Size Information: N/A. Noncompliance Information: There is cash in a financial institution that is materially in excess of the FDIC insured limit with no additional insurance or collateral to cover the excess. Condition: The Organization holds a majority of its cash balances with Camden National Bank. The total cash balance includes operating cash accounts, tenant security deposit accounts, tax and insurance escrow accounts, and replacement reserve accounts at USDA, Rural Development financed projects. $163,456 of the total cash held at Camden National Bank is uninsured as of December 31, 2019. Criteria: Attachment 4-J Section E "Cash Receipts" of the Consolidated Audit Guide for the Audits of RD Programs requires that ?all cash receipts, including those collected by a management agent, must be deposited into an account in the name of the project at an institution in which deposits are federally insured.? Cause: The Organization?s projects are managed by different management agents. The total cash was not reviewed during the year to ensure all project accounts held at Camden National Bank were covered by FDIC insurance or other collateral. Effect or Potential Effect: Financial loss of the uninsured balance in the event of bank insolvency. Recommendations: We recommend that management review bank balances during the year to ensure that the balances at one financial institution do not exceed the FDIC insurance limit. If necessary, excess funds should be collateralized or funds should be moved to additional financial institutions in order to gain full insurance coverage. Reporting Views of Responsible Officials: All properties are now being managed by one management agent in 2020. We plan to monitor financial institution balances for each project during the year to ensure the total amount held at each financial institution does not exceed the FDIC insurance limit.
Finding 2019-003 Recommendation: Management review of bank balances during the year to ensure that balances at each financial institution do not exceed the FDIC insurance limit. If necessary, excess funds should be collateralized or funds should be moved to alternate financial institutions for full insurance. Action Taken: We concur with the recommendation, all properties are now being managed by the same management agent and financial institution balances for all properties are being managed to ensure the collective amount in each financial institution does not exceed the FDIC insurance limit. Contact Person: Bill Pearse, Controller
2018-002
FAC accepted this audit on August 13, 2019 — management decision was due February 13, 2020.
GSA_MIGRATION
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GSA_MIGRATION
2017-002
FAC accepted this audit on August 14, 2018 — management decision was due February 14, 2019.
GSA_MIGRATION
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GSA_MIGRATION
2016-002
FAC accepted this audit on September 25, 2017 — management decision was due March 25, 2018.
GSA_MIGRATION
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GSA_MIGRATION
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