Audit 10232

FY End

2022-12-31

Total Expended

$798,000

Findings

2

Programs

1

Organization: Care Housing Inc. (CO)

Year: 2022 Accepted: 2024-01-08

Auditor: Eide Bailly LLP

Organization Exclusion Status:

Checking exclusion status...

ID	Ref	Severity	Repeat	Requirement
7857	2022-002	Significant Deficiency	-	E
584299	2022-002	Significant Deficiency	-	E

ALN	Program	Spent	Major	Findings
14.239	Home Investment Partnerships Program	$798,000	Yes	1

Contacts

Name	Title	Type
RMCQB3PK6A17	Bob Pawlikowski	Auditee
9708291607	Aaron Ness	Auditor
No contacts on file

Notes to SEFA

Title: Basis of Presentation Accounting Policies: Expenditures reported on the schedule are reported on the accrual basis of accounting. When applicable, such expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. No federal financial assistance has been provided to a subrecipient. De Minimis Rate Used: N Rate Explanation: CARE Housing Inc. has elected not to use the 10% de minimis cost rate. The accompanying consolidated schedule of expenditures of federal awards (the schedule) includes the federal grant activity of CARE Housing Inc. under programs of the federal government for the year ended December 31, 2022. The information is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Because the schedule presents only a selected portion of the operations of CARE Housing Inc., it is not intended to and does not present the financial position, changes in net assets, or cash flows of CARE Housing Inc.

Title: Summary of Significant Accounting Policies Accounting Policies: Expenditures reported on the schedule are reported on the accrual basis of accounting. When applicable, such expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. No federal financial assistance has been provided to a subrecipient. De Minimis Rate Used: N Rate Explanation: CARE Housing Inc. has elected not to use the 10% de minimis cost rate. Expenditures reported on the schedule are reported on the accrual basis of accounting. When applicable, such expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. No federal financial assistance has been provided to a subrecipient.

Title: Indirect Cost Rate Accounting Policies: Expenditures reported on the schedule are reported on the accrual basis of accounting. When applicable, such expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. No federal financial assistance has been provided to a subrecipient. De Minimis Rate Used: N Rate Explanation: CARE Housing Inc. has elected not to use the 10% de minimis cost rate. CARE Housing Inc. has elected not to use the 10% de minimis cost rate.

Finding Details

Finding 2022-002

U.S. Department of Housing and Urban Development CFDA #14.239 HOME Investment Partnerships Program Applicable Federal Award Number and Year ‐ 2022 Eligibility Significant Deficiency in Internal Control over Compliance Criteria: Uniform Guidance requires that an organization design, implement, and maintain effective internal controls to ensure compliance with federal programs. Condition: During our audit testing, we were not able to verify the internal controls that the Organization has in place over the review of the annual certifications for the HOME units. Cause: The Organization does not retain documentation that supports the internal controls in place over the review of the annual certifications for the HOME units. Effect: Ineffective internal controls could result in noncompliance with federal programs. Questioned Costs: None Context/Sampling: Sample was 2 units from a total population of 4 units. Repeating Finding from Prior Years: No Recommendation: We recommend that the Organization maintain adequate documentation of the Organization’s internal controls over compliance. Views of Responsible Officials: Management agrees with the finding.

Finding 2022-002

U.S. Department of Housing and Urban Development CFDA #14.239 HOME Investment Partnerships Program Applicable Federal Award Number and Year ‐ 2022 Eligibility Significant Deficiency in Internal Control over Compliance Criteria: Uniform Guidance requires that an organization design, implement, and maintain effective internal controls to ensure compliance with federal programs. Condition: During our audit testing, we were not able to verify the internal controls that the Organization has in place over the review of the annual certifications for the HOME units. Cause: The Organization does not retain documentation that supports the internal controls in place over the review of the annual certifications for the HOME units. Effect: Ineffective internal controls could result in noncompliance with federal programs. Questioned Costs: None Context/Sampling: Sample was 2 units from a total population of 4 units. Repeating Finding from Prior Years: No Recommendation: We recommend that the Organization maintain adequate documentation of the Organization’s internal controls over compliance. Views of Responsible Officials: Management agrees with the finding.