AUBURN AFFORDABLE HOUSING, INC.

Reference Number: 2019-001 ? Noncompliance - Special Tests and Provisions Federal Programs: Rural Rental Housing Loans CFDA: 10.415 Federal Agency: U.S. Department of Agriculture Repeat Finding: N/A Questioned Costs: Unknown Statistical Sample: No Criteria: CFR ? 3560.102(g) states: ?Borrowers and management agents must disclose to the Agency all identity of interest relationships which they have with firms and must receive Agency approval to use such firms prior to entering into any contractual relationships with such entities that involve Agency funds.? These identity of interest forms require a fee schedule that details out services and rates. Condition: There were two instances noted where an identity of interest relationship existed and while there was an Identity of Interest Statement completed, a fee schedule was not on file with Rural Development. Cause: Unknown Context: Through inquiry with Rural Development it was noted that a fee schedule was not attached to two Identity of Interest Statement?s that were submitted. Effect: When the Organization does not submit a fee schedule with the Identity of Interest Statement to Rural Development, it is not in compliance with Federal regulations. Recommendation: We recommend that the Organization complete and submit the required statements for all identity of interest companies. Views of Responsible Officials and Planned Corrective Actions: Will complete the required form and submit to Rural Development.