FAC Explorer

Audit 319674

FY End
2024-06-30
Total Expended
$975,950
Findings
4
Programs
1
Organization: Cccs Farm Labor Housing Corporation (CO)
Year: 2024 Accepted: 2024-09-16
Auditor: Kundinger Corder & Montoya PC

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
496933 2024-001 Significant Deficiency Yes L
496934 2024-001 Significant Deficiency Yes L
1073375 2024-001 Significant Deficiency Yes L
1073376 2024-001 Significant Deficiency Yes L

Programs

ALN Program Spent Major Findings
10.405 Farm Labor Housing Loans and Grants $281,885 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, 2024. 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, 2024.
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. These loans had the following balances outstanding as of June 30, 2024 (see notes to the SEFA for table)

Finding Details

Finding 2024-001
Federal Agency: U.S. Department of Agriculture (USDA) Federal Program and Assistance Listing Number: Farm Labor Housing Loans and Grants, 10.405 2024-001 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. One of these reports was not completed and submitted to the USDA. Others did not appear to be accurately completed. 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 and Plaza Del Sol, form 3560-13 was not filed. In addition, the fiscal year 2023 form 3560-7, submitted in 2024, had the following discrepancies between what was filed and audited (See table). Cause: The organization did not have proper controls in place to complete and file form 3560-13 in a timely manner or complete form 3560-7 accurately. 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 complete and file form 3560-13 immediately. Also, the organization should implement controls to adequately identify, complete and file form 3560-7 accurately. Views Responsible Officials and Planned Corrective Actions: We concur with the observations and recommendations as placed forth by our auditors – KCM. As a result of employee turnover in fiscal year 2024, the company experienced difficulties completing certain forms. Since then, however, controls have been implemented to reduce the risk of noncompliance. These include the hiring of a new compliance manager and the cross-collaboration of three property accountants, with a master trial balance shared to support teammates when they are on vacation or turnover occurs. We will work to re/file these forms immediately and begin tracking their status to prevent inaccurate/untimely filing.
Finding 2024-001
Federal Agency: U.S. Department of Agriculture (USDA) Federal Program and Assistance Listing Number: Farm Labor Housing Loans and Grants, 10.405 2024-001 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. One of these reports was not completed and submitted to the USDA. Others did not appear to be accurately completed. 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 and Plaza Del Sol, form 3560-13 was not filed. In addition, the fiscal year 2023 form 3560-7, submitted in 2024, had the following discrepancies between what was filed and audited (See table). Cause: The organization did not have proper controls in place to complete and file form 3560-13 in a timely manner or complete form 3560-7 accurately. 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 complete and file form 3560-13 immediately. Also, the organization should implement controls to adequately identify, complete and file form 3560-7 accurately. Views Responsible Officials and Planned Corrective Actions: We concur with the observations and recommendations as placed forth by our auditors – KCM. As a result of employee turnover in fiscal year 2024, the company experienced difficulties completing certain forms. Since then, however, controls have been implemented to reduce the risk of noncompliance. These include the hiring of a new compliance manager and the cross-collaboration of three property accountants, with a master trial balance shared to support teammates when they are on vacation or turnover occurs. We will work to re/file these forms immediately and begin tracking their status to prevent inaccurate/untimely filing.
Finding 2024-001
Federal Agency: U.S. Department of Agriculture (USDA) Federal Program and Assistance Listing Number: Farm Labor Housing Loans and Grants, 10.405 2024-001 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. One of these reports was not completed and submitted to the USDA. Others did not appear to be accurately completed. 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 and Plaza Del Sol, form 3560-13 was not filed. In addition, the fiscal year 2023 form 3560-7, submitted in 2024, had the following discrepancies between what was filed and audited (See table). Cause: The organization did not have proper controls in place to complete and file form 3560-13 in a timely manner or complete form 3560-7 accurately. 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 complete and file form 3560-13 immediately. Also, the organization should implement controls to adequately identify, complete and file form 3560-7 accurately. Views Responsible Officials and Planned Corrective Actions: We concur with the observations and recommendations as placed forth by our auditors – KCM. As a result of employee turnover in fiscal year 2024, the company experienced difficulties completing certain forms. Since then, however, controls have been implemented to reduce the risk of noncompliance. These include the hiring of a new compliance manager and the cross-collaboration of three property accountants, with a master trial balance shared to support teammates when they are on vacation or turnover occurs. We will work to re/file these forms immediately and begin tracking their status to prevent inaccurate/untimely filing.
Finding 2024-001
Federal Agency: U.S. Department of Agriculture (USDA) Federal Program and Assistance Listing Number: Farm Labor Housing Loans and Grants, 10.405 2024-001 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. One of these reports was not completed and submitted to the USDA. Others did not appear to be accurately completed. 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 and Plaza Del Sol, form 3560-13 was not filed. In addition, the fiscal year 2023 form 3560-7, submitted in 2024, had the following discrepancies between what was filed and audited (See table). Cause: The organization did not have proper controls in place to complete and file form 3560-13 in a timely manner or complete form 3560-7 accurately. 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 complete and file form 3560-13 immediately. Also, the organization should implement controls to adequately identify, complete and file form 3560-7 accurately. Views Responsible Officials and Planned Corrective Actions: We concur with the observations and recommendations as placed forth by our auditors – KCM. As a result of employee turnover in fiscal year 2024, the company experienced difficulties completing certain forms. Since then, however, controls have been implemented to reduce the risk of noncompliance. These include the hiring of a new compliance manager and the cross-collaboration of three property accountants, with a master trial balance shared to support teammates when they are on vacation or turnover occurs. We will work to re/file these forms immediately and begin tracking their status to prevent inaccurate/untimely filing.