EIN: 421385610
UEI: EN8LSKN584T5
Audited by: Denman CPA LLP
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 May 20, 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 November 20, 2025 (282 days ago).
What is a management decision? →Criteria Segregation of duties should be in place to ensure appropriate checks and balances and to mitigate incompatible duties being performed by one individual over key financial and compliance functions. Condition The Agency does not maintain sufficient segregation of duties to prevent one individual from having control over each of the following areas: 1) Cash receipts – detailed record keeping, custody, reconciling, and posting to the general ledger. 2) Disbursements – check preparation, and positing to and maintaining the general ledger. 3) Federal compliance requirements – eligibility determinations, allowable activities, allowable costs, reporting. Cause The Agency does not have sufficient staffing to ensure multiple individuals are involved in all significant accounting controls and transaction cycles. Effect One individual may have complete control over certain transactions without adequate checks and balances or reviews being implemented. Recommendation Resolving the deficiency may require the Agency to hire additional personnel necessary to adequately separate accounting responsibilities. This solution may result in a substantial increase in operating costs. The other action would be to accept that by definition there is a material weakness in internal control and the cost of eliminating that material weakness may exceed the benefit.
Show full finding ▾Hide full finding ▴Criteria Segregation of duties should be in place to ensure appropriate checks and balances and to mitigate incompatible duties being performed by one individual over key financial and compliance functions. Condition The Agency does not maintain sufficient segregation of duties to prevent one individual from having control over each of the following areas: 1) Cash receipts – detailed record keeping, custody, reconciling, and posting to the general ledger. 2) Disbursements – check preparation, and positing to and maintaining the general ledger. 3) Federal compliance requirements – eligibility determinations, allowable activities, allowable costs, reporting. Cause The Agency does not have sufficient staffing to ensure multiple individuals are involved in all significant accounting controls and transaction cycles. Effect One individual may have complete control over certain transactions without adequate checks and balances or reviews being implemented. Recommendation Resolving the deficiency may require the Agency to hire additional personnel necessary to adequately separate accounting responsibilities. This solution may result in a substantial increase in operating costs. The other action would be to accept that by definition there is a material weakness in internal control and the cost of eliminating that material weakness may exceed the benefit.
The Agency has attempted to segregate accounting duties by having a person who does not initiate, prepare or post disbursements review the bank statements and co-sign all checks. The Agency will continue to monitor its policies and procedures in an effort to improve control efficiencies, however, at this time, the Agency has determined that the cost of eliminating this material weakness in internal control would exceed its benefit.
2023-003
FAC accepted this audit on July 9, 2024 — management decision was due January 9, 2025.
INTERNAL CONTROL DEFICIENCIES U.S. Department of Agriculture Assistance Listing Number 10.415 – Rural Rental Housing Program Assistance Listing Number 10.427 – Rental Assistance Program 2023-003 Segregation of Duties Prior Year Finding Number: 2022-003 Criteria Segregation of duties should be in place to ensure appropriate checks and balances and to mitigate incompatible duties being performed by one individual over key financial and compliance functions. Condition The Agency does not maintain sufficient segregation of duties to prevent one individual from having control over each of the following areas: 1) Cash receipts – detailed record keeping, custody, reconciling, and posting to the general ledger. 2) Disbursements – check preparation, and positing to and maintaining the general ledger. 3) Federal compliance requirements – eligibility determinations, allowable activities, allowable costs, reporting. Cause The Agency does not have sufficient staffing to ensure multiple individuals are involved in all significant accounting controls and transaction cycles. Effect One individual may have complete control over certain transactions without adequate checks and balances or reviews being implemented. Recommendation Resolving the deficiency may require the Agency to hire additional personnel necessary to adequately separate accounting responsibilities. This solution may result in a substantial increase in operating costs. The other action would be to accept that by definition there is a material weakness in internal control and the cost of eliminating that material weakness may exceed the benefit.
Show full finding ▾Hide full finding ▴INTERNAL CONTROL DEFICIENCIES U.S. Department of Agriculture Assistance Listing Number 10.415 – Rural Rental Housing Program Assistance Listing Number 10.427 – Rental Assistance Program 2023-003 Segregation of Duties Prior Year Finding Number: 2022-003 Criteria Segregation of duties should be in place to ensure appropriate checks and balances and to mitigate incompatible duties being performed by one individual over key financial and compliance functions. Condition The Agency does not maintain sufficient segregation of duties to prevent one individual from having control over each of the following areas: 1) Cash receipts – detailed record keeping, custody, reconciling, and posting to the general ledger. 2) Disbursements – check preparation, and positing to and maintaining the general ledger. 3) Federal compliance requirements – eligibility determinations, allowable activities, allowable costs, reporting. Cause The Agency does not have sufficient staffing to ensure multiple individuals are involved in all significant accounting controls and transaction cycles. Effect One individual may have complete control over certain transactions without adequate checks and balances or reviews being implemented. Recommendation Resolving the deficiency may require the Agency to hire additional personnel necessary to adequately separate accounting responsibilities. This solution may result in a substantial increase in operating costs. The other action would be to accept that by definition there is a material weakness in internal control and the cost of eliminating that material weakness may exceed the benefit.
The Agency has attempted to segregate accounting duties by having a person who does not initiate, prepare or post disbursements review the bank statements and co-sign all checks. The Agency will continue to monitor its policies and procedures in an effort to improve control efficiencies, however, at this time, the Agency has determined that the cost of eliminating this material weakness in internal control would exceed its benefit.
2022-003
FAC accepted this audit on September 16, 2023 — management decision was due March 16, 2024.
Criteria Segregation of duties should be in place to ensure appropriate checks and balances and to mitigate incompatible duties being performed by one individual over key financial and compliance functions. Condition The Agency does not maintain sufficient segregation of duties to prevent one individual from having control over each of the following areas: 1) Cash receipts ? detailed record keeping, custody, reconciling, and posting to the general ledger. 2) Disbursements ? check preparation, and positing to and maintaining the general ledger. Cause The Agency does not have sufficient staffing to ensure multiple individuals are involved in all significant accounting controls and transaction cycles. Effect One individual may have complete control over certain transactions without adequate checks and balances or reviews being implemented. Recommendation Resolving the deficiency may require the Agency to hire additional personnel necessary to adequately separate accounting responsibilities. This solution may result in a substantial increase in operating costs. The other action would be to accept that by definition there is a material weakness in internal control and the cost of eliminating that material weakness may exceed the benefit.
Show full finding ▾Hide full finding ▴Criteria Segregation of duties should be in place to ensure appropriate checks and balances and to mitigate incompatible duties being performed by one individual over key financial and compliance functions. Condition The Agency does not maintain sufficient segregation of duties to prevent one individual from having control over each of the following areas: 1) Cash receipts ? detailed record keeping, custody, reconciling, and posting to the general ledger. 2) Disbursements ? check preparation, and positing to and maintaining the general ledger. Cause The Agency does not have sufficient staffing to ensure multiple individuals are involved in all significant accounting controls and transaction cycles. Effect One individual may have complete control over certain transactions without adequate checks and balances or reviews being implemented. Recommendation Resolving the deficiency may require the Agency to hire additional personnel necessary to adequately separate accounting responsibilities. This solution may result in a substantial increase in operating costs. The other action would be to accept that by definition there is a material weakness in internal control and the cost of eliminating that material weakness may exceed the benefit.
The Agency has attempted to segregate accounting duties by having a person who does not initiate, prepare or post disbursements review the bank statements and co-sign all checks. The Agency will continue to monitor its policies and procedures in an effort to improve control efficiencies, however, at this time, the Agency has determined that the cost of eliminating this material weakness in internal control would exceed its benefit.
2021-001
Criteria To provide for better management of the Agency?s financial position, the Agency should maintain full accrual financial statements throughout the fiscal year, rather than producing full accrual statements only at fiscal year end. Condition The Agency does not prepare its internal financial statements on the full accrual method of accounting, but rather maintains the financial records on the basis of cash receipts and cash disbursements. Cause Agency staff do not possess the training necessary to prepare the Agency?s financial statements in accordance with U.S. GAAP in interim periods. Effect The Agency?s interim financial statements do not include accrual transactions. Recommendation The Agency should investigate opportunities to provide staff additional training in GAAP basis financial reporting.
Show full finding ▾Hide full finding ▴Criteria To provide for better management of the Agency?s financial position, the Agency should maintain full accrual financial statements throughout the fiscal year, rather than producing full accrual statements only at fiscal year end. Condition The Agency does not prepare its internal financial statements on the full accrual method of accounting, but rather maintains the financial records on the basis of cash receipts and cash disbursements. Cause Agency staff do not possess the training necessary to prepare the Agency?s financial statements in accordance with U.S. GAAP in interim periods. Effect The Agency?s interim financial statements do not include accrual transactions. Recommendation The Agency should investigate opportunities to provide staff additional training in GAAP basis financial reporting.
The Agency will investigate opportunities to provide additional training to staff.
2021-002
FAC accepted this audit on September 14, 2022 — management decision was due March 14, 2023.
Criteria Segregation of duties should be in place to ensure appropriate checks and balances and to mitigate incompatible duties being performed by one individual over key financial and compliance functions. Condition The Agency does not maintain sufficient segregation of duties to prevent one individual from having control over each of the following areas: 1) Cash receipts ? detailed record keeping, custody, reconciling, and posting to the general ledger. 2) Disbursements ? check preparation, and positing to and maintaining the general ledger. 3) Federal compliance requirements ? eligibility determinations, allowable activities, allowable costs, reporting. Cause The Agency does not have sufficient staffing to ensure multiple individuals are involved in all significant accounting controls and transaction cycles. Effect One individual may have complete control over certain transactions without adequate checks and balances or reviews being implemented. Recommendation Resolving the deficiency may require the Agency to hire additional personnel necessary to adequately separate accounting responsibilities. This solution may result in a substantial increase in operating costs. The other action would be to accept that by definition there is a material weakness in internal control and the cost of eliminating that material weakness may exceed the benefit.
Show full finding ▾Hide full finding ▴Criteria Segregation of duties should be in place to ensure appropriate checks and balances and to mitigate incompatible duties being performed by one individual over key financial and compliance functions. Condition The Agency does not maintain sufficient segregation of duties to prevent one individual from having control over each of the following areas: 1) Cash receipts ? detailed record keeping, custody, reconciling, and posting to the general ledger. 2) Disbursements ? check preparation, and positing to and maintaining the general ledger. 3) Federal compliance requirements ? eligibility determinations, allowable activities, allowable costs, reporting. Cause The Agency does not have sufficient staffing to ensure multiple individuals are involved in all significant accounting controls and transaction cycles. Effect One individual may have complete control over certain transactions without adequate checks and balances or reviews being implemented. Recommendation Resolving the deficiency may require the Agency to hire additional personnel necessary to adequately separate accounting responsibilities. This solution may result in a substantial increase in operating costs. The other action would be to accept that by definition there is a material weakness in internal control and the cost of eliminating that material weakness may exceed the benefit.
The Agency has attempted to segregate accounting duties by having a person who does not initiate, prepare or post disbursements review the bank statements and co-sign all checks. The Agency will continue to monitor its policies and procedures in an effort to improve control efficiencies, however, at this time, the Agency has determined that the cost of eliminating this material weakness in internal control would exceed its benefit.
2020-003
Criteria The tenant?s monthly rent payment and USDA rental assistance payment (if applicable) is governed by a formula, approved by the USDA and computed for each tenant by the Agency. Condition In two of seven tenants recalculated, we identified computation or input errors in the Agency?s calculation of tenant rent. One of the two instances had been identified and corrected by Agency staff prior to our review. Cause The computation of tenant rent and the following input into the USDA?s database is a highly manual process. There was no independent review of these calculations and inputs. Effect The Agency may have received additional, unsupported rental assistance from the USDA. Recommendation We recommend the Agency identify opportunities to automate the calculation of tenant rental payments. In addition, while we recognize it may not be practical to provide for independent review of all tenant rent calculations due to staffing levels, we recommend the Agency investigate opportunities to provide additional review and oversight of rent calculations and inputs into the USDA database.
Show full finding ▾Hide full finding ▴Criteria The tenant?s monthly rent payment and USDA rental assistance payment (if applicable) is governed by a formula, approved by the USDA and computed for each tenant by the Agency. Condition In two of seven tenants recalculated, we identified computation or input errors in the Agency?s calculation of tenant rent. One of the two instances had been identified and corrected by Agency staff prior to our review. Cause The computation of tenant rent and the following input into the USDA?s database is a highly manual process. There was no independent review of these calculations and inputs. Effect The Agency may have received additional, unsupported rental assistance from the USDA. Recommendation We recommend the Agency identify opportunities to automate the calculation of tenant rental payments. In addition, while we recognize it may not be practical to provide for independent review of all tenant rent calculations due to staffing levels, we recommend the Agency investigate opportunities to provide additional review and oversight of rent calculations and inputs into the USDA database.
The Agency will investigate opportunities to automate the rent calculation process and to provide additional oversight and review to the process.
FAC accepted this audit on July 13, 2021 — management decision was due January 13, 2022.
Criteria Segregation of duties should be in place to ensure appropriate checks and balances and to mitigate incompatible duties being performed by one individual over key financial and compliance functions. Condition The Agency does not maintain sufficient segregation of duties to prevent one individual from having control over each of the following areas: 1) Cash receipts ? detailed record keeping, custody, reconciling, and posting to the general ledger. 2) Disbursements ? check preparation, and positing to and maintaining the general ledger. 3) Federal compliance requirements ? eligibility determinations, allowable activities, allowable costs, reporting. Cause The Agency does not have sufficient staffing to ensure multiple individuals are involved in all significant accounting controls and transaction cycles. Effect One individual may have complete control over certain transactions without adequate checks and balances or reviews being implemented. Recommendation Resolving the deficiency may require the Agency to hire additional personnel necessary to adequately separate accounting responsibilities. This solution may result in a substantial increase in operating costs. The other action would be to accept that by definition there is a material weakness in internal control and the cost of eliminating that material weakness may exceed the benefit.
Show full finding ▾Hide full finding ▴Criteria Segregation of duties should be in place to ensure appropriate checks and balances and to mitigate incompatible duties being performed by one individual over key financial and compliance functions. Condition The Agency does not maintain sufficient segregation of duties to prevent one individual from having control over each of the following areas: 1) Cash receipts ? detailed record keeping, custody, reconciling, and posting to the general ledger. 2) Disbursements ? check preparation, and positing to and maintaining the general ledger. 3) Federal compliance requirements ? eligibility determinations, allowable activities, allowable costs, reporting. Cause The Agency does not have sufficient staffing to ensure multiple individuals are involved in all significant accounting controls and transaction cycles. Effect One individual may have complete control over certain transactions without adequate checks and balances or reviews being implemented. Recommendation Resolving the deficiency may require the Agency to hire additional personnel necessary to adequately separate accounting responsibilities. This solution may result in a substantial increase in operating costs. The other action would be to accept that by definition there is a material weakness in internal control and the cost of eliminating that material weakness may exceed the benefit.
The Agency has attempted to segregate accounting duties by having a person who does not initiate, prepare or post disbursements review the bank statements and co-sign all checks. The Agency will continue to monitor its policies and procedures in an effort to improve control efficiencies, however, at this time, the Agency has determined that the cost of eliminating this material weakness in internal control would exceed its benefit.
2019-004
FAC accepted this audit on June 29, 2020 — management decision was due December 29, 2020.
SECTION III ? FEDERAL AWARD FINDINGS AND QUESTIONED COSTS (continued) INTERNAL CONTROL DEFICIENCIES U.S. Department of Agriculture CFDA #10.415 ? Rural Rental Housing Program CFDA #10.427 ? Rental Assistance Program 2019-004 Segregation of Duties Prior Year Finding Number: 2018-005 Criteria: Segregation of duties should be in place to ensure appropriate checks and balances and to mitigate incompatible duties being performed by one individual over key financial and compliance functions. Conditions: The Agency does not maintain sufficient segregation of duties to prevent one individual from having control over each of the following areas: 1) Cash receipts ? detailed record keeping, custody reconciling, and posting to the general ledger. 2) Disbursements ? check preparation, and posting to and maintaining the general ledger. 3) Federal compliance requirements ? eligibility determinations, allowable activities, allowable costs, reporting. Cause: The Agency does not have sufficient staffing to ensure multiple individuals are involved in all significant accounting controls and transaction cycles. Effect: One individual may have complete control over certain transactions without adequate checks and balances or reviews being implemented. Recommendation: Resolving the deficiency may require the Agency to hire additional personnel necessary to adequately separate accounting responsibilities. This solution may result in a substantial increase in operating costs. The other action would be to accept that by definition there is a material weakness in internal control and the cost of eliminating that material weakness may exceed the benefit. Response and Corrective Action Plan: The Agency has attempted to segregate accounting duties by having a person who does not initiate, prepare or post disbursements review the bank statements and co-sign all checks. The Agency will continue to monitor its policies and procedures in an effort to improve control efficiencies, however, at this time, the Agency has determined that the cost of eliminating this material weakness in internal control would exceed its benefit. Conclusion: Response accepted.
Show full finding ▾Hide full finding ▴SECTION III ? FEDERAL AWARD FINDINGS AND QUESTIONED COSTS (continued) INTERNAL CONTROL DEFICIENCIES U.S. Department of Agriculture CFDA #10.415 ? Rural Rental Housing Program CFDA #10.427 ? Rental Assistance Program 2019-004 Segregation of Duties Prior Year Finding Number: 2018-005 Criteria: Segregation of duties should be in place to ensure appropriate checks and balances and to mitigate incompatible duties being performed by one individual over key financial and compliance functions. Conditions: The Agency does not maintain sufficient segregation of duties to prevent one individual from having control over each of the following areas: 1) Cash receipts ? detailed record keeping, custody reconciling, and posting to the general ledger. 2) Disbursements ? check preparation, and posting to and maintaining the general ledger. 3) Federal compliance requirements ? eligibility determinations, allowable activities, allowable costs, reporting. Cause: The Agency does not have sufficient staffing to ensure multiple individuals are involved in all significant accounting controls and transaction cycles. Effect: One individual may have complete control over certain transactions without adequate checks and balances or reviews being implemented. Recommendation: Resolving the deficiency may require the Agency to hire additional personnel necessary to adequately separate accounting responsibilities. This solution may result in a substantial increase in operating costs. The other action would be to accept that by definition there is a material weakness in internal control and the cost of eliminating that material weakness may exceed the benefit. Response and Corrective Action Plan: The Agency has attempted to segregate accounting duties by having a person who does not initiate, prepare or post disbursements review the bank statements and co-sign all checks. The Agency will continue to monitor its policies and procedures in an effort to improve control efficiencies, however, at this time, the Agency has determined that the cost of eliminating this material weakness in internal control would exceed its benefit. Conclusion: Response accepted.
2019-004 Segregation of Duties Response and Corrective Action Plan: The Agency has attempted to segregate accounting duties by having a person who does not initiate, prepare or post disbursements review the bank statements and co-sign all checks. The Agency will continue to monitor its policies and procedures in an effort to improve control efficiencies, however, at this time, the Agency has determined that the cost of eliminating this material weakness in internal control would exceed its benefit. Contact Person, Title, Phone Number: Jessica Howe, Executive Director, (515) 961-1073 Anticipated Date of Completion: The Agency has determined the cost of eliminating this material weakness would exceed its benefit.
2018-005
SECTION III ? FEDERAL AWARD FINDINGS AND QUESTIONED COSTS (continued) INTERNAL CONTROL DEFICIENCIES U.S. Department of Agriculture CFDA #10.415 ? Rural Rental Housing Program CFDA #10.427 ? Rental Assistance Payments 2019-005 Financial Reporting Prior Year Finding Number: 2018-006 Criteria: To provide for better management of the Agency?s financial position, the Agency should maintain full accrual financial statements throughout the fiscal year, rather than producing full accrual statements only at fiscal year end. Conditions: The Agency does not retain its internal financial statements on the full accrual method of accounting, but rather maintains the financial records on the basis of cash receipts and cash disbursements. Cause: The Agency?s current accounting systems do not allow for full-accrual reporting to be performed. Interim reports submitted to the USDA may not accurately reflect the Agency?s financial position. Effect: The Agency?s interim financial statements do not include accrual transactions. Recommendation: The Agency should consider implementing an accounting system that allows the Agency to prepare full accrual financial statements throughout the fiscal year. Response and Corrective Action Plan: The Agency has changed accounting systems effective January 1, 2020 and will now prepare full accrual financial statements throughout the fiscal year. Conclusion: Response accepted.
Show full finding ▾Hide full finding ▴SECTION III ? FEDERAL AWARD FINDINGS AND QUESTIONED COSTS (continued) INTERNAL CONTROL DEFICIENCIES U.S. Department of Agriculture CFDA #10.415 ? Rural Rental Housing Program CFDA #10.427 ? Rental Assistance Payments 2019-005 Financial Reporting Prior Year Finding Number: 2018-006 Criteria: To provide for better management of the Agency?s financial position, the Agency should maintain full accrual financial statements throughout the fiscal year, rather than producing full accrual statements only at fiscal year end. Conditions: The Agency does not retain its internal financial statements on the full accrual method of accounting, but rather maintains the financial records on the basis of cash receipts and cash disbursements. Cause: The Agency?s current accounting systems do not allow for full-accrual reporting to be performed. Interim reports submitted to the USDA may not accurately reflect the Agency?s financial position. Effect: The Agency?s interim financial statements do not include accrual transactions. Recommendation: The Agency should consider implementing an accounting system that allows the Agency to prepare full accrual financial statements throughout the fiscal year. Response and Corrective Action Plan: The Agency has changed accounting systems effective January 1, 2020 and will now prepare full accrual financial statements throughout the fiscal year. Conclusion: Response accepted.
2019-006 Financial Reporting Response and Corrective Action Plan: The Agency has changed accounting systems effective January 1, 2020 and will now prepare full accrual financial statements throughout the fiscal year. Contact Person, Title, Phone Number: Jessica Howe, Executive Director, (515) 961-1073 Anticipated Date of Completion: January 1, 2020.
2018-006
FAC accepted this audit on September 25, 2019 — management decision was due March 25, 2020.
GSA_MIGRATION
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GSA_MIGRATION
2017-003
GSA_MIGRATION
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GSA_MIGRATION
2017-004
GSA_MIGRATION
Show full finding ▾Hide full finding ▴FAC accepted this audit on August 2, 2018 — management decision was due February 2, 2019.
GSA_MIGRATION
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GSA_MIGRATION
2016-003
GSA_MIGRATION
Show full finding ▾Hide full finding ▴FAC accepted this audit on September 21, 2017 — management decision was due March 21, 2018.
GSA_MIGRATION
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GSA_MIGRATION
2015-001
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