FAC Explorer

Audit 24680

FY End
2022-06-30
Total Expended
$2.83M
Findings
2
Programs
1
Organization: Casa Carino Dba Casa Corazon 122-Hh012-Wph-Np (CA)
Year: 2022 Accepted: 2022-12-12
Auditor: Douglas & Bhagat CPA Services INC

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
30400 2022-001 Material Weakness - C
606842 2022-001 Material Weakness - C

Programs

ALN Program Spent Major Findings
14.181 Supportive Housing for Persons with Disabilities $2.83M Yes 1

Contacts

Name Title Type
KWFKLC11NJ54 Sokhom Yan Auditee
5624323322 Nicole Douglas Auditor
No contacts on file

Notes to SEFA

Title: CAPITAL ADVANCE Accounting Policies: NOTE A BASIS OF PRESENTATIONThe accompanying schedule of expenditures of federal awards includes the federal award activity of Casa Carino dba Casa Corazon, HUD Project No.122-HH012-WPH-NP under programs of the federal government for the year ended June 30, 2022. The information in this Schedule 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 Casa Carino dba Casa Corazon, it is not intended to and does not present the financial position, changes in net assets, or cash flows of Casa Carino dba Casa Corazon. NOTE B SUMMARY OF SIGNIFICANT ACCOUNTING POLICIESExpenditures reported on the Schedule are reported on the accrual basis of accounting. 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 De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. The balance of the capital advance was $2,592,700 as of June 30, 2022 and June 30, 2021.

Finding Details

Finding 2022-001
Section II --- Financial Statement Findings ? Criteria or specific requirement: Assignment of responsibility that the Board of Directors or management company is responsible for confirming contract terms and that these terms are reported correctly each year in the financial statements. ? Condition: Accrued interest of loan from Long Beach Housing Development Company had been accrued at 3% for all prior years. Actual interest rate is 6.625% per original signed contract. ? Effect: Could result in undetected errors and misstated financial statements. ? Cause: Governing body relied on management company and auditors to confirm loan terms each year ? Recommendation: Improve internal controls to prevent these types of adjustments. The auditor will work with the management company and Board of Directors about it's responsibility for the financial statements. ? Management's response: Board of Directors and management company will incorporate additional internal controls to detect material adjustments and prevent materially misstated financial statements.
Finding 2022-001
Section II --- Financial Statement Findings ? Criteria or specific requirement: Assignment of responsibility that the Board of Directors or management company is responsible for confirming contract terms and that these terms are reported correctly each year in the financial statements. ? Condition: Accrued interest of loan from Long Beach Housing Development Company had been accrued at 3% for all prior years. Actual interest rate is 6.625% per original signed contract. ? Effect: Could result in undetected errors and misstated financial statements. ? Cause: Governing body relied on management company and auditors to confirm loan terms each year ? Recommendation: Improve internal controls to prevent these types of adjustments. The auditor will work with the management company and Board of Directors about it's responsibility for the financial statements. ? Management's response: Board of Directors and management company will incorporate additional internal controls to detect material adjustments and prevent materially misstated financial statements.