FAC Explorer

Audit 295003

FY End
2021-06-30
Total Expended
$1.17M
Findings
4
Programs
4
Organization: Hogar Fortaleza Del Caido, Inc. (PR)
Year: 2021 Accepted: 2024-03-13
Auditor: Rodriguez & Santiago Cpa's Psc

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
375949 2021-004 Material Weakness Yes F
375950 2021-005 Material Weakness Yes L
952391 2021-004 Material Weakness Yes F
952392 2021-005 Material Weakness Yes L

Programs

ALN Program Spent Major Findings
14.267 Continuum of Care Program $504,233 Yes 2
14.241 Housing Opportunities for Persons with Aids $290,231 - 0
93.914 Hiv Emergency Relief Project Grants $250,605 - 0
14.231 Emergency Solutions Grant Program $124,189 - 0

Contacts

Name Title Type
HGKBEKBXGMR3 Angelica Segarra Auditee
7878766208 Pablo Rodriguez Auditor
No contacts on file

Notes to SEFA

Title: BASIS OF PRESENTATION Accounting Policies: Expenditures on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in 2 CFR 230, Cost Principles for Non-profit Organizations, wherein certain types of expenditures are not allowable or are limited as to reimbursement. The Federal Assistance Listing (FAL) Number, formerly known as the Catalog of Federal Domestic Assistance (CFDA) Number is a program identification number. The first two digits identify the federal department or agency that administers the program and the last three numbers are assigned by numerical sequence. The Uniform Guidance requires the Schedule to include the name of the “pass-through entity” and the identifying number assigned by the “pass through entity” for the federal awards received as a sub-recipient. Numbers identified as N/A are not applicable and numbers identified as N/AV are not available. De Minimis Rate Used: Y Rate Explanation: The auditee used the de minimis cost rate. The accompanying schedule of expenditures of federal awards (the Schedule) includes the federal grant activity of the Organization under programs of the federal government for the year ended June 30, 2021. The information in this schedule is presented in accordance with the requirements of 2 CFR, Part 200, Uniform Administrative Requirement, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Because the Schedule presents only a selected portion of the operations of the Organization, it is not intended to and does not present the financial position, changes in net assets, or cash flows of the Organization. Therefore, some amounts presented in the Schedule may differ from amounts presented in, or used in the preparation of the financial statements.
Title: MAJOR FEDERAL AWARDS Accounting Policies: Expenditures on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in 2 CFR 230, Cost Principles for Non-profit Organizations, wherein certain types of expenditures are not allowable or are limited as to reimbursement. The Federal Assistance Listing (FAL) Number, formerly known as the Catalog of Federal Domestic Assistance (CFDA) Number is a program identification number. The first two digits identify the federal department or agency that administers the program and the last three numbers are assigned by numerical sequence. The Uniform Guidance requires the Schedule to include the name of the “pass-through entity” and the identifying number assigned by the “pass through entity” for the federal awards received as a sub-recipient. Numbers identified as N/A are not applicable and numbers identified as N/AV are not available. De Minimis Rate Used: Y Rate Explanation: The auditee used the de minimis cost rate. Continuum of Care (CoC) projects: (i) Homeless Management Information System (HMIS) and (ii) Supportive Services are considered the Major Program of the Organization.
Title: RELATIONSHIP TO FINANCIAL STATEMENTS Accounting Policies: Expenditures on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in 2 CFR 230, Cost Principles for Non-profit Organizations, wherein certain types of expenditures are not allowable or are limited as to reimbursement. The Federal Assistance Listing (FAL) Number, formerly known as the Catalog of Federal Domestic Assistance (CFDA) Number is a program identification number. The first two digits identify the federal department or agency that administers the program and the last three numbers are assigned by numerical sequence. The Uniform Guidance requires the Schedule to include the name of the “pass-through entity” and the identifying number assigned by the “pass through entity” for the federal awards received as a sub-recipient. Numbers identified as N/A are not applicable and numbers identified as N/AV are not available. De Minimis Rate Used: Y Rate Explanation: The auditee used the de minimis cost rate. The reconciliation of expenses per financial statements to the Schedule is as follows: Expenses per financial statements $ 1,482,333 Plus: Capital expenditures (Federal Funds) 11,192 Less: Depreciation (68,561) Nonfederal expenditures (255,706) Expenditures per Schedule of Expenditures of Federal Award $ 1,169,258

Finding Details

Finding 2021-004
Finding Reference 2021-04 Federal Program: US Department of Housing and Urban Development Continuum of Care (CoC) – Supportive Services Only CFDA No. 14.267 Compliance Requirement: Equipment and Real Property Management Type of Finding: Internal Control/Compliance over Equipment and Real Property Management -Material Weakness (MW) and Instance of Non-Compliance (NC) This finding is similar to prior years findings 2020-04 and 2018-03 Condition The Organization has not maintained complete and adequate records in order to obtain sufficient and competent evidential matter of the fixed assets and accumulated depreciation states at $1,113,535 and $632,524, respectively, in the statement of net position as of June 30, 2021. As a result, we were unable to determine whether any adjustments to these amounts were necessary. Criteria Refer to Finding 2021-03 Effect Refer to Finding 2021-03 Cause Refer to Finding 2021-03 Question Cost None Recommendation Refer to finding 2021-03 Views of Responsible Officials and Planned Corrective Actions Refer to finding 2020-03
Finding 2021-005
Finding Reference 2021-05 Federal Agency: US Department of Housing and Urban Development US Department of Health and Human Services Federal Program: All Federal Programs Compliance Requirement: Reporting Type of Finding: Material Weakness (MW) and Instance of Noncompliance (NC) This finding is similar to prior year Finding 2020-05. Condition The Data Collection Form and the Reporting Package for the year ended June 30 2021 was not timely submitted to the federal government. The Data Collection Form and the Reporting Package must be submitted by the auditee within the earlier of 30-day after the receipt of the auditors’ reports or nine (9) months after the end of the audit period, unless a longer period is agreed to in advance by the cognizant or oversight agency for audit. No extension from the cognizant or oversight agency was noted. Criteria The Uniform Guidance 2 CFR Section 200.512(a) requires the audit to be completed and the reporting package and data collection form to be submitted to the Federal Audit Clearinghouse (“FAC”) nine months after the end of the audit period. Effect The Organization is not complying with the reporting requirements set forth by federal regulations, which could affect the future of its federal grants awarding process. Cause The Organization has not been able to provide the necessary information for the preparation of the single audit report on a timely basis in order to complete its reporting requirement for the fiscal year ended on June 30, 2021. In addition, the lack of procedures for the analysis, recording and reconciliation of accounting records on a monthly basis, has resulted in delays in the process of auditing the Organization’s financial statements. Questioned Costs None Recommendation The Organization should adopt policies and procedures to ensure that the annual audit is performed and submitted in a timely manner. View of Responsible Officials and Planned Corrective Actions The Organization agrees with the finding and recommendation will be implemented.
Finding 2021-004
Finding Reference 2021-04 Federal Program: US Department of Housing and Urban Development Continuum of Care (CoC) – Supportive Services Only CFDA No. 14.267 Compliance Requirement: Equipment and Real Property Management Type of Finding: Internal Control/Compliance over Equipment and Real Property Management -Material Weakness (MW) and Instance of Non-Compliance (NC) This finding is similar to prior years findings 2020-04 and 2018-03 Condition The Organization has not maintained complete and adequate records in order to obtain sufficient and competent evidential matter of the fixed assets and accumulated depreciation states at $1,113,535 and $632,524, respectively, in the statement of net position as of June 30, 2021. As a result, we were unable to determine whether any adjustments to these amounts were necessary. Criteria Refer to Finding 2021-03 Effect Refer to Finding 2021-03 Cause Refer to Finding 2021-03 Question Cost None Recommendation Refer to finding 2021-03 Views of Responsible Officials and Planned Corrective Actions Refer to finding 2020-03
Finding 2021-005
Finding Reference 2021-05 Federal Agency: US Department of Housing and Urban Development US Department of Health and Human Services Federal Program: All Federal Programs Compliance Requirement: Reporting Type of Finding: Material Weakness (MW) and Instance of Noncompliance (NC) This finding is similar to prior year Finding 2020-05. Condition The Data Collection Form and the Reporting Package for the year ended June 30 2021 was not timely submitted to the federal government. The Data Collection Form and the Reporting Package must be submitted by the auditee within the earlier of 30-day after the receipt of the auditors’ reports or nine (9) months after the end of the audit period, unless a longer period is agreed to in advance by the cognizant or oversight agency for audit. No extension from the cognizant or oversight agency was noted. Criteria The Uniform Guidance 2 CFR Section 200.512(a) requires the audit to be completed and the reporting package and data collection form to be submitted to the Federal Audit Clearinghouse (“FAC”) nine months after the end of the audit period. Effect The Organization is not complying with the reporting requirements set forth by federal regulations, which could affect the future of its federal grants awarding process. Cause The Organization has not been able to provide the necessary information for the preparation of the single audit report on a timely basis in order to complete its reporting requirement for the fiscal year ended on June 30, 2021. In addition, the lack of procedures for the analysis, recording and reconciliation of accounting records on a monthly basis, has resulted in delays in the process of auditing the Organization’s financial statements. Questioned Costs None Recommendation The Organization should adopt policies and procedures to ensure that the annual audit is performed and submitted in a timely manner. View of Responsible Officials and Planned Corrective Actions The Organization agrees with the finding and recommendation will be implemented.