FAC Explorer

Audit 405434

FY End
2023-12-31
Total Expended
$5.36M
Findings
1
Programs
7
Organization: Redwood Community Services, Inc. (CA)
Year: 2023 Accepted: 2026-06-29
Auditor: CLIFTONLARSONALLEN LLP

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
1220593 2023-005 Material Weakness Yes L

Programs

ALN Program Spent Major Findings
10.766 COMMUNITY FACILITIES LOANS AND GRANTS $2.88M Yes 0
14.231 EMERGENCY SOLUTIONS GRANT PROGRAM $196,110 Yes 0
59.072 Economic Injury Disaster Loan Emergency Advance $149,359 Yes 0
93.912 RURAL HEALTH CARE SERVICES OUTREACH, RURAL HEALTH NETWORK DEVELOPMENT AND SMALL HEALTH CARE PROVIDER QUALITY IMPROVEMENT $115,412 Yes 0
93.243 SUBSTANCE ABUSE AND MENTAL HEALTH SERVICES PROJECTS OF REGIONAL AND NATIONAL SIGNIFICANCE $105,536 Yes 0
93.276 DRUG-FREE COMMUNITIES SUPPORT PROGRAM GRANTS $58,875 Yes 0
93.788 OPIOID STR $19,300 Yes 0

Contacts

Name Title Type
Z2T5XNM25WX5 Brittany Lucas Auditee
7072721137 Ryan McDonald Auditor
No contacts on file

Notes to SEFA

The accompanying Schedule of Expenditures of Federal and Non-federal Awards (theSchedule) includes the federal award activity of Redwood Community Services, Inc. (RCS) under programs of the federal government for the year ended December 31, 2023. The 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 RCS, it is not intended to and does not present the financial position, changes in net assets, or cash flows of RCS.
RCS did not provide any federal awards to sub-recipients
Redwood Community Services, Inc. had the following loan balances outstanding at December 31, 2023. This loan program is also included in the federal expenditures presented in the Schedule of Expenditures of Federal Awards: Federal Grantor Pass-Through Entity Assistance Cluster Title Listing Federal Program Number Amount U.S. Department of Agriculture ("USDA"): Community Facilities Loans and Grants Cluster: Community Facilities Loans and Grants (2006 Dora) 10.766 $ 3 46,053.00 Community Facilities Loans and Grants (2013 Gibson) 10.766 1,132,852 Community Facilities Loans and Grants (2014 Gibson Construction) 10.766 177,388 Community Facilities Loans and Grants (2019 Orchard) 10.766 2,839,608 Total USDA 4,495,901 U.S. Small Business Administration: Economic Injury Disaster Loan Emergency Advance 59.072 143,590 Total $ 4 ,639,491.0

Finding Details

Finding 2023-005
Federal Agency: U.S. Department of Agriculture ("USDA") Federal Program Name: Community Facilities Loans and Grants Assistance Listing Number: 10.766 Federal Award Identification Number and Year: Award #'s 97-01, 97-02, 97-03, & 97-04 (Year 2023) Pass-Through Agency: N/A Pass-Through Number(s): N/A Award Period: 01/01/2023 – 12/31/2023 Compliance Requirement Affected: Reporting Type of Finding: Significant Deficiency in Internal Control over Compliance and Other Matters Criteria or specific requirement: USDA Community Facilities loan and grant agreements require the auditee to submit audited financial statements to USDA as part of ongoing reporting requirements. Management and the Board are responsible for ensuring compliance with reporting provisions, including retaining evidence of submission. Condition: During testing of reporting requirements, the auditee was unable to provide evidence that the most recent audited financial statements (for fiscal year 2022) were submitted to USDA. Management stated that no documentation, emails, or confirmations supporting submission of the FY 2022 audited financial statements could be located, and no follow-up requests from USDA were identified. Questioned costs: None Context: The auditee participates in the USDA Community Facilities Loans and Grants program, which requires submission of audited financial statements to USDA. During testing of the submission of the most recent audited financial statements (fiscal year 2022) reporting requirement, the auditee was unable to provide documentation evidencing that the audited financial statements were submitted, indicating the reporting control did not operate as intended. Cause: The auditee did not maintain adequate documentation or monitoring controls to ensure and retain evidence that audited financial statements were submitted to USDA for FY 2022. Effect: As a result, the auditee has no basis to conclude that the required FY 2022 audited financial statements were submitted to USDA, resulting in noncompliance with federal reporting requirements. Repeat Finding: Not a repeat finding. Recommendation: We recommend that management implement and document controls to ensure:  Timely submission of audited financial statements to USDA, and  Retention of adequate documentation evidencing submission (e.g., confirmations, portal uploads, or correspondence), with oversight by the Board of Directors. Views of responsible officials: There is no disagreement with the audit finding.