FAC Explorer

Audit 36291

FY End
2022-12-31
Total Expended
$1.62M
Findings
2
Programs
3
Organization: Fresno Community Development Financial Inst. Dba Access Plus Capital (CA)
Year: 2022 Accepted: 2023-08-01
Auditor: Hudson Henderson & Company INC

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
30230 2022-002 Significant Deficiency - C
606672 2022-002 Significant Deficiency - C

Programs

ALN Program Spent Major Findings
10.767 Intermediary Relending Program $754,203 Yes 1
59.046 Microloan Program $538,889 - 0
10.870 Rural Microentrepreneur Assistance Program $210,605 - 0

Contacts

Name Title Type
XMJVVGSVLFP7 Tate Hill Auditee
5595524300 Brian Henderson Auditor
No contacts on file

Notes to SEFA

Title: Loan/loan guarantee outstanding balances Accounting Policies: The accompanying Schedule of Expenditures of Federal Awards is prepared using the accrual basis method of accounting. The information in this schedule is presented in accordance with the requirements of the Title 2 U.S., Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Therefore, some of the amounts presented in this schedule may differ from amounts presented in or used in the preparation of the financial statements. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. RURAL MICROENTREPRENEUR ASSISTANCE PROGRAM (10.870) - Balances outstanding at the end of the audit period were 210605. INTERMEDIARY RELENDING PROGRAM (10.767) - Balances outstanding at the end of the audit period were 754203. MICROLOAN PROGRAM (59.046) - Balances outstanding at the end of the audit period were 114815. MICROLOAN PROGRAM (59.046) - Balances outstanding at the end of the audit period were 538889.
Title: CATALOG OF FEDERAL DOMESTIC ASSISTANCE (CFDA) Accounting Policies: The accompanying Schedule of Expenditures of Federal Awards is prepared using the accrual basis method of accounting. The information in this schedule is presented in accordance with the requirements of the Title 2 U.S., Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Therefore, some of the amounts presented in this schedule may differ from amounts presented in or used in the preparation of the financial statements. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. The CFDA numbers included in the accompanying Schedule of Expenditures of Federal Awards were determined based on the program name, review of the grant or contact information and the Office of Management and Budget's Catalog of Federal Domestic Assistance.

Finding Details

Finding 2022-002
Finding 2022-002- Significant Deficiency Reserve for Bad Debt Program: USDA Intermediary Relending Program (IRP) CFDA No.: 10.767 Federal Agency: U.S. Department of Agriculture Pass Through: N/A Award Numbers: N/A Award Year: 2022 Fiscal Year Compliance Requirement: Cash Management Questioned Costs: N/A Criteria: Per the Intermediary Relending Program (IRP) reporting requirements, the United States Department of Agriculture (USDA) requires IRP funding recipients to establish a reserve for bad debts of not less than 6 percent of outstanding ultimate recipient loans over the first three years of participation in the IRP program and then have that reserve be maintained throughout the duration of the program agreement. Condition: While performing testing over federal award reporting procedures in accordance with the IRP it was noted that Fresno Community Development Financial Institution dba Access Plus Capital (the Organization), did not maintain a 6 percent reserve for bad debt of outstanding ultimate recipient loans, as required in accordance with the IRP for the year ended December 31, 2022. Cause: The required 6 percent reserve for bad debt of outstanding ultimate recipient loans was not met. Based on outstanding IRP loan receivable balances as of December 31, 2022, the required 6 percent Reserve for Uncollectable balance should be $41,780, while the actual balance per the IRP general ledger detail was $13,000, for a difference of $28,780. Effect: As a result, the Organization was not in compliance with the USDA?s 6 percent reserve for bad debt requirement for the year ended December 31, 2022. Recommendation: We recommend that the Organization ensure that the IRP reserve for bad debt always contains at least 6 percent of the outstanding IRP loan receivable balances in compliance with the IRP policy and cash management requirements.
Finding 2022-002
Finding 2022-002- Significant Deficiency Reserve for Bad Debt Program: USDA Intermediary Relending Program (IRP) CFDA No.: 10.767 Federal Agency: U.S. Department of Agriculture Pass Through: N/A Award Numbers: N/A Award Year: 2022 Fiscal Year Compliance Requirement: Cash Management Questioned Costs: N/A Criteria: Per the Intermediary Relending Program (IRP) reporting requirements, the United States Department of Agriculture (USDA) requires IRP funding recipients to establish a reserve for bad debts of not less than 6 percent of outstanding ultimate recipient loans over the first three years of participation in the IRP program and then have that reserve be maintained throughout the duration of the program agreement. Condition: While performing testing over federal award reporting procedures in accordance with the IRP it was noted that Fresno Community Development Financial Institution dba Access Plus Capital (the Organization), did not maintain a 6 percent reserve for bad debt of outstanding ultimate recipient loans, as required in accordance with the IRP for the year ended December 31, 2022. Cause: The required 6 percent reserve for bad debt of outstanding ultimate recipient loans was not met. Based on outstanding IRP loan receivable balances as of December 31, 2022, the required 6 percent Reserve for Uncollectable balance should be $41,780, while the actual balance per the IRP general ledger detail was $13,000, for a difference of $28,780. Effect: As a result, the Organization was not in compliance with the USDA?s 6 percent reserve for bad debt requirement for the year ended December 31, 2022. Recommendation: We recommend that the Organization ensure that the IRP reserve for bad debt always contains at least 6 percent of the outstanding IRP loan receivable balances in compliance with the IRP policy and cash management requirements.