Audit 338532

FY End
2024-06-30
Total Expended
$16.62M
Findings
2
Programs
15
Organization: Catholic Charities (OR)
Year: 2024 Accepted: 2025-01-16
Auditor: Kernutt Stokes

Organization Exclusion Status:

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Contacts

Name Title Type
PHC7Z9GL5LJ9 Marci Pierce Auditee
5416882658 Pat Deming Auditor
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Notes to SEFA

Title: Loans and Loan Guarantee Programs Accounting Policies: Basis of Presentation- The accompanying schedule of expenditures of federal awards (the Schedule) includes the federal award activity of Catholic Charities and affiliates 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 (CFR) 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 Catholic Charities and affiliates, it is not intended to and does not present the financial position, changes in net assets, or cash flows of Catholic Charities and affiliates. Expenditures - 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 allowable or are limited as to reimbursement. De Minimis Rate Used: N Rate Explanation: Catholic Charities has elected not to use the 10 percent de minimis indirect cost rate as allowed under the Uniform Guidance, however all affiliates of Catholic Charities have elected to use the 10 percent de minimis indirect cost rate. For loan and loan guarantee programs for which there are continuing federal compliance requirements, the amount of expenditures reported on the Schedule is the sum of the loan balance at the beginning of the year, the value of new loans made during the year, and cash or administrative cost allowance received during the year. Catholic Charities and affiliates has loans due to federal agencies for which there are continuing compliance requirements. As of June 30, 2024, the outstanding loan balances on such loans were as follows: Assistance Listing Outstanding Federal Agency Program Title Number Balance U.S. Department of Farm labor housing loans and grants agriculture 10.405 $ 1,476,079 U.S. Department of Rural rental housing loans 10.415 481,317 agriculture U.S. Department of housing Mortgage insurance for purchase or and urban development refinancing of existing multifamily projects 14.155 3,320,934 U.S. Department of housing Supportive housing for persons with and urban development disabilities 14.181 2,559,300 U.S. Department of housing HOME investments partnership and urban development programs 14.239 4,725,211 $ 12,562,841 The proceeds of loans that were received and expended in prior years are not considered federal awards expended when the laws, regulations, and the provisions of contracts or grant agreements pertaining to such loans impose no continuing compliance requirements other than to repay the loans and have been excluded from the Schedule and the notes to the Schedule.

Finding Details

Type of Findings: Significant deficiency in internal control over compliance and instance of immaterial noncompliance. Federal Program: HUD Supportive Housing for Persons with Disabilities (Section 811) Assistance Listing #14.181. Compliance Requirement: Eligibility Criteria: In accordance with Renaissance Court's regulatory agreement with HUD and the 2024 compliance supplement, Renaissance Court is required to annually recertify its tenants as eligible tenants. It is the responsibility of management to design and implement internal controls to ensure the tenants are recertified within the applicable timeframe required by HUD. Condition: Renaissance Court did not recertify some of its tenants within the timeframe specified by HUD. Cause: There were not properly designed or implemented internal controls to ensure the tenant recertifications were performed in the timeframe required by HUD. Effect: The effect is immaterial non-compliance with the terms of the HUD program listed above. The deficiency in internal controls over compliance could lead to material non-compliance with the eligibility compliance requirement. Questioned Costs: None. Repeat Finding: No. Context: We selected a sample of 6 tenants from a population of 21. The sample size was determined based upon guidelines provided by the AICPA and was not considered a statistically valid sample. We performed procedures to determine whether the annual tenant recertification occurred within the timeframe specified by HUD. From our sample, four tenant recertifications were not performed within the 12 month timeframe specified by HUD. Recommendation: We recommend management design and implement internal controls over compliance to ensure tenant recertification is performed within the timeframe specified by HUD. Views of Responsible Officials: Management agrees with the finding. See Corrective Action Plan.
Type of Findings: Significant deficiency in internal control over compliance and instance of immaterial noncompliance. Federal Program: HUD Supportive Housing for Persons with Disabilities (Section 811) Assistance Listing #14.181. Compliance Requirement: Eligibility Criteria: In accordance with Renaissance Court's regulatory agreement with HUD and the 2024 compliance supplement, Renaissance Court is required to annually recertify its tenants as eligible tenants. It is the responsibility of management to design and implement internal controls to ensure the tenants are recertified within the applicable timeframe required by HUD. Condition: Renaissance Court did not recertify some of its tenants within the timeframe specified by HUD. Cause: There were not properly designed or implemented internal controls to ensure the tenant recertifications were performed in the timeframe required by HUD. Effect: The effect is immaterial non-compliance with the terms of the HUD program listed above. The deficiency in internal controls over compliance could lead to material non-compliance with the eligibility compliance requirement. Questioned Costs: None. Repeat Finding: No. Context: We selected a sample of 6 tenants from a population of 21. The sample size was determined based upon guidelines provided by the AICPA and was not considered a statistically valid sample. We performed procedures to determine whether the annual tenant recertification occurred within the timeframe specified by HUD. From our sample, four tenant recertifications were not performed within the 12 month timeframe specified by HUD. Recommendation: We recommend management design and implement internal controls over compliance to ensure tenant recertification is performed within the timeframe specified by HUD. Views of Responsible Officials: Management agrees with the finding. See Corrective Action Plan.