FAC Explorer

Audit 291102

FY End
2023-06-30
Total Expended
$970,087
Findings
4
Programs
1
Organization: Cccs Farm Labor Housing Corporation (CO)
Year: 2023 Accepted: 2024-02-19
Auditor: Kundinger Corder & Montoya PC

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
369683 2023-001 Significant Deficiency - L
369684 2023-001 Significant Deficiency - L
946125 2023-001 Significant Deficiency - L
946126 2023-001 Significant Deficiency - L

Programs

ALN Program Spent Major Findings
10.405 Farm Labor Housing Loans and Grants $215,456 Yes 1

Contacts

Name Title Type
SV75XM2PCWF5 Phil Vottiero Auditee
7207999238 Tiffany Knight 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. Such expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowed or are limited as to reimbursement. De Minimis Rate Used: N Rate Explanation: FLHC does not have a negotiated indirecto cost rate nor have they received a de minimis indirect cost rate under these agreements. The accompanying schedule of expenditures of federal awards (the Schedule) includes the federal award activity of Catholic Charities and Community Services Farm Labor Housing Corporation (FLHC) under programs of the federal government for the year ended June 30, 2023. 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 of Federal Awards (Uniform Guidance). Because the Schedule presents only a selected portion of the operations of FLHC, it is not intended and does not present the financial position, changes in net assets, or cash flows of FLHC.
Title: Subrecipient Awards Accounting Policies: Expenditures 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 allowed or are limited as to reimbursement. De Minimis Rate Used: N Rate Explanation: FLHC does not have a negotiated indirecto cost rate nor have they received a de minimis indirect cost rate under these agreements. There were no awards passed through by FLHC to subrecipients for the year ended June 30, 2023.
Title: Loans Accounting Policies: Expenditures 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 allowed or are limited as to reimbursement. De Minimis Rate Used: N Rate Explanation: FLHC does not have a negotiated indirecto cost rate nor have they received a de minimis indirect cost rate under these agreements. Loans reported in the Schedule represent the beginning balances of loans received in previous years which have continuing compliance requirements. The loans had the following blaance outstanding as of June 30, 2023 (see the notes to the SEFA for the table)

Finding Details

Finding 2023-001
Federal Agency: U.S. Department of Agriculture (USDA) Federal Program and Assistance Listing Number: Farm Labor Housing Loans and Grants, 10.405 2023-001 Reporting – Significant Deficiency in Internal Control Over Compliance Criteria and Condition: There are certain reports that must be submitted under the program on an annual basis. Some of these reports were not completed and submitted to the USDA. Context: There are three forms required to be filed with the USDA annually: Form 3560-7, Multiple Family Housing Project Budget/Utility Allowance; Form 3560-10, Multi-Family Housing Borrower Balance Sheet; and Form 3560-13, Borrower Certification of Performance Standards. For Plaza Del Milagro, forms 3560-7, 3560-10, and 3560-13 were not filed. For Plaza Del Sol, form 3560-13 was not filed. Cause: The organization did not have proper controls in place to complete and file the forms in a timely manner. Effect: The organization did not meet the reporting requirements under the program. There are no questioned costs because of this finding. Recommendation: The organization should file the reports immediately. Also, the organization should implement controls to adequately identify, complete and file reports in a timely manner. Views Responsible Officials and Planned Corrective Actions: We concur with the observations and recommendations as placed forth by our auditors – KCM. We experienced personnel related issues and did not adequately have bench strength in place to compensate. To address: 1. We will, with due haste, file the outstanding reports. 2. Have initiated a review and update of a ministry-wide master deliverables schedule to ensure compliance with timely filings. 3. Will ensure multiple team members are familiar with and capable of completing the filing.
Finding 2023-001
Federal Agency: U.S. Department of Agriculture (USDA) Federal Program and Assistance Listing Number: Farm Labor Housing Loans and Grants, 10.405 2023-001 Reporting – Significant Deficiency in Internal Control Over Compliance Criteria and Condition: There are certain reports that must be submitted under the program on an annual basis. Some of these reports were not completed and submitted to the USDA. Context: There are three forms required to be filed with the USDA annually: Form 3560-7, Multiple Family Housing Project Budget/Utility Allowance; Form 3560-10, Multi-Family Housing Borrower Balance Sheet; and Form 3560-13, Borrower Certification of Performance Standards. For Plaza Del Milagro, forms 3560-7, 3560-10, and 3560-13 were not filed. For Plaza Del Sol, form 3560-13 was not filed. Cause: The organization did not have proper controls in place to complete and file the forms in a timely manner. Effect: The organization did not meet the reporting requirements under the program. There are no questioned costs because of this finding. Recommendation: The organization should file the reports immediately. Also, the organization should implement controls to adequately identify, complete and file reports in a timely manner. Views Responsible Officials and Planned Corrective Actions: We concur with the observations and recommendations as placed forth by our auditors – KCM. We experienced personnel related issues and did not adequately have bench strength in place to compensate. To address: 1. We will, with due haste, file the outstanding reports. 2. Have initiated a review and update of a ministry-wide master deliverables schedule to ensure compliance with timely filings. 3. Will ensure multiple team members are familiar with and capable of completing the filing.
Finding 2023-001
Federal Agency: U.S. Department of Agriculture (USDA) Federal Program and Assistance Listing Number: Farm Labor Housing Loans and Grants, 10.405 2023-001 Reporting – Significant Deficiency in Internal Control Over Compliance Criteria and Condition: There are certain reports that must be submitted under the program on an annual basis. Some of these reports were not completed and submitted to the USDA. Context: There are three forms required to be filed with the USDA annually: Form 3560-7, Multiple Family Housing Project Budget/Utility Allowance; Form 3560-10, Multi-Family Housing Borrower Balance Sheet; and Form 3560-13, Borrower Certification of Performance Standards. For Plaza Del Milagro, forms 3560-7, 3560-10, and 3560-13 were not filed. For Plaza Del Sol, form 3560-13 was not filed. Cause: The organization did not have proper controls in place to complete and file the forms in a timely manner. Effect: The organization did not meet the reporting requirements under the program. There are no questioned costs because of this finding. Recommendation: The organization should file the reports immediately. Also, the organization should implement controls to adequately identify, complete and file reports in a timely manner. Views Responsible Officials and Planned Corrective Actions: We concur with the observations and recommendations as placed forth by our auditors – KCM. We experienced personnel related issues and did not adequately have bench strength in place to compensate. To address: 1. We will, with due haste, file the outstanding reports. 2. Have initiated a review and update of a ministry-wide master deliverables schedule to ensure compliance with timely filings. 3. Will ensure multiple team members are familiar with and capable of completing the filing.
Finding 2023-001
Federal Agency: U.S. Department of Agriculture (USDA) Federal Program and Assistance Listing Number: Farm Labor Housing Loans and Grants, 10.405 2023-001 Reporting – Significant Deficiency in Internal Control Over Compliance Criteria and Condition: There are certain reports that must be submitted under the program on an annual basis. Some of these reports were not completed and submitted to the USDA. Context: There are three forms required to be filed with the USDA annually: Form 3560-7, Multiple Family Housing Project Budget/Utility Allowance; Form 3560-10, Multi-Family Housing Borrower Balance Sheet; and Form 3560-13, Borrower Certification of Performance Standards. For Plaza Del Milagro, forms 3560-7, 3560-10, and 3560-13 were not filed. For Plaza Del Sol, form 3560-13 was not filed. Cause: The organization did not have proper controls in place to complete and file the forms in a timely manner. Effect: The organization did not meet the reporting requirements under the program. There are no questioned costs because of this finding. Recommendation: The organization should file the reports immediately. Also, the organization should implement controls to adequately identify, complete and file reports in a timely manner. Views Responsible Officials and Planned Corrective Actions: We concur with the observations and recommendations as placed forth by our auditors – KCM. We experienced personnel related issues and did not adequately have bench strength in place to compensate. To address: 1. We will, with due haste, file the outstanding reports. 2. Have initiated a review and update of a ministry-wide master deliverables schedule to ensure compliance with timely filings. 3. Will ensure multiple team members are familiar with and capable of completing the filing.