Audit 29531

FY End
2022-06-30
Total Expended
$1.14M
Findings
4
Programs
2
Organization: Archuleta Housing Corporation (CO)
Year: 2022 Accepted: 2022-11-13

Organization Exclusion Status:

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Findings

ID Ref Severity Repeat Requirement
37559 2022-001 - Yes P
37560 2022-002 - Yes P
614001 2022-001 - Yes P
614002 2022-002 - Yes P

Programs

ALN Program Spent Major Findings
14.164 Operating Assistance for Troubled Multi-Family Housing Projects $781,427 Yes 2
14.195 Section 8 Housing Assistance Payments Program $358,020 - 0

Contacts

Name Title Type
GYD3LM7HJYW1 Nicole Holt Auditee
9702644828 Jeremy Dumond Auditor
No contacts on file

Notes to SEFA

Title: Loan/loan guarantee outstanding balances Accounting Policies: NOTE 2: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIESExpenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures arerecognized following the cost principles contained the Uniform Guidance and/or 0MB Circular A122, CostPrinciples for Nonprofit Organizations, wherein certain types of expenditures are not allowable or are limited asto reimbursement. The Organization has elected not to use the 10 percent de minimis indirect cost rate allowedunder the Uniform Guidance. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. OPERATING ASSISTANCE FOR TROUBLED MULTI-FAMILY HOUSING PROJECTS (14.164) - Balances outstanding at the end of the audit period were 781427.
Title: Note 1: Basis of Presentation Accounting Policies: NOTE 2: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIESExpenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures arerecognized following the cost principles contained the Uniform Guidance and/or 0MB Circular A122, CostPrinciples for Nonprofit Organizations, wherein certain types of expenditures are not allowable or are limited asto reimbursement. The Organization has elected not to use the 10 percent de minimis indirect cost rate allowedunder the Uniform Guidance. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. The accompanying schedule of expenditures of federal awards (the Schedule) includes the federal award activity of Archuleta Housing Corporation 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 Archuleta Housing Corporation, it is not intended to and does not present the financial position, changes in net assets, or cash flows of Archuleta Housing Corporation.
Title: Note 3: Flexible Subsidy Loan Accounting Policies: NOTE 2: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIESExpenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures arerecognized following the cost principles contained the Uniform Guidance and/or 0MB Circular A122, CostPrinciples for Nonprofit Organizations, wherein certain types of expenditures are not allowable or are limited asto reimbursement. The Organization has elected not to use the 10 percent de minimis indirect cost rate allowedunder the Uniform Guidance. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. The flexible subsidy loan funded under Operating Assistance for Troubled MultiFamily Housing Projects. The flexible subsidy loan balance as of June 30, 2022 is as follows:Program Name Federal CFDA Number Outstanding Balance HUD 14.164 $ 781,427

Finding Details

The Organization's Operating Assistance Flexible Subsidy Loans have matured. The term of the loans require full repayment of the Operating Assistance Flexible Subsidy Loans within 30 days after they mature. See finding 2022-002 for additional information.
Agency: U.S. Department of Housing and Urban Development (HUD) CFDA Number: 14.164 Program: Operating Assistance Flexible Subsidy Loans Statement of condition: The Organization's Operating Assistance Flexible Subsidy Loans have matured. The term of the loans require full repayment of the Operating Assistance Flexible Subsidy Loans within 30 days after they mature. Criteria: The HUD Handbook 4350.1 requires the Organization to timely file for deferment of repayment if they cannot repay the loan within 30 days of maturity. Questioned costs: N/A Effect: The Organization was not in compliance with HUD regulations. Cause: Management has been in negotiations with HUD to obtain deferment of repayment. Repeat finding: Yes, previously reported as 2021-001. Recommendation: We recommend that management continue to work with HUD to obtain proper deferment of the Operating Assistance Flexible Subsidy Loans. Management's Response: See attached management's response and planned corrective actions.
The Organization's Operating Assistance Flexible Subsidy Loans have matured. The term of the loans require full repayment of the Operating Assistance Flexible Subsidy Loans within 30 days after they mature. See finding 2022-002 for additional information.
Agency: U.S. Department of Housing and Urban Development (HUD) CFDA Number: 14.164 Program: Operating Assistance Flexible Subsidy Loans Statement of condition: The Organization's Operating Assistance Flexible Subsidy Loans have matured. The term of the loans require full repayment of the Operating Assistance Flexible Subsidy Loans within 30 days after they mature. Criteria: The HUD Handbook 4350.1 requires the Organization to timely file for deferment of repayment if they cannot repay the loan within 30 days of maturity. Questioned costs: N/A Effect: The Organization was not in compliance with HUD regulations. Cause: Management has been in negotiations with HUD to obtain deferment of repayment. Repeat finding: Yes, previously reported as 2021-001. Recommendation: We recommend that management continue to work with HUD to obtain proper deferment of the Operating Assistance Flexible Subsidy Loans. Management's Response: See attached management's response and planned corrective actions.