The accompanying schedule of expenditures of federal awards (the Schedule) includes the federal award activity of PPEP Microbusiness and Housing Development Corporation under programs of the federal government for the year ended June 30, 2025. 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 PPEP Microbusiness and Housing Development Corporation, it is not intended to and does not present the financial position, changes in net assets, or cash flows of PPEP Microbusiness and Housing Development Corporation.
In the event that the grantor was either unable to or did not confirm the source of federal funds all amounts were assumed to be federal for purposes of the schedule of expenditures of federal awards.
PMHDC has outstanding loans at June 30, 2025 with the following governmental departments: See the Notes to the SEFA for chart/table.
The Agency had program income from the following sources during the year ended June 30, 2025: See the Notes to the SEFA for chart/table.
Major programs are identified in the Summary of Auditor's Results section of the Schedule of Findings and Questioned Costs.
The following data was utilized in order to determine the federal assistance amount for this program: See the Notes to the SEFA for chart/table.
See the Notes to the SEFA for chart/table.
For purposes of classifying federal awards as either Type A or Type B, the following ALN numbers were considered to be clusters: • Economic Development Cluster – Assistance Listing Numbers 11.300 and 11.307 • Section 8 Project-Based Cluster – Assistance Listing Numbers 14.195, 14.249, 14.856
During the fiscal year ended June 30, 2025, the Organization generated $203,476 in program income from rents charged for housing provided under the National Farmworker Jobs Program (ALN 17.264). The program income was recorded and tracked separately in the Organization’s accounting system and used to finance allowable NFJP housing costs of $103,582 in accordance with applicable Federal requirements. At year end, the Organization has a cumulative amount of $417,532 available for future program operations.
During July 2025, the Department of Labor (DOL) conducted an on-site review of several of its grant agreements, for the fiscal year ended June 30, 2025 and prior fiscal years, with the Organization. On March 30, 2026, the Organization received the DOL’s results of its’ monitoring which identified potential questioned costs of $9,424,893 related to the current and prior years grants. The Organization has filed its initial response with DOL and is currently developing additional responses to the findings. In addition, the Organization has engaged legal counsel as it intends to vigorously dispute DOL’s findings and believes the costs were allowable under the agreements or simply require additional documentation. No amount has been accrued as a liability in the accompanying financial statements as the amount that may be ultimately refundable to the DOL, if any, cannot be reasonably estimated at the date of the financial statements.