FAC Explorer

Audit 48758

FY End
2022-02-28
Total Expended
$17.30M
Findings
2
Programs
1
Organization: Village Cooperative of Centennial (CO)
Year: 2022 Accepted: 2022-12-07
Auditor: Mahoney Ulbrich Christiansen & Russ PA

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
50922 2022-001 Significant Deficiency - P
627364 2022-001 Significant Deficiency - P

Programs

ALN Program Spent Major Findings
14.126 Mortgage Insurance_cooperative Projects $17.30M Yes 1

Contacts

Name Title Type
WANGRTWM81M4 Mark Millard Auditee
6517285041 Lance Brock Auditor
No contacts on file

Notes to SEFA

Title: Loan/loan guarantee outstanding balances Accounting Policies: Note 1: basis of presentation - The accompanying schedule of expenditures of federal awards (the Schedule) includes the federal grant activity of the Cooperative under programs of the federal government for the period ended February 28, 2022. 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 (the Uniform Guidance). Because the Schedule presents only a selected portion of the operations of the Cooperative, it is not intended to and does not present the financial position, results of operations, or cash flows of the Cooperative. De Minimis Rate Used: N Rate Explanation: The Cooperatives federal award is not based on eligible costs incurred. Accordingly, the Cooperative has not made an election related to use of the 10% de minimis indirect cost rate described in the Uniform Guidance. Insured Mortgage Loan - Federal expenditures for the mortgage insurance program represent the fully funded amount of the loan. Loan proceeds of $2,327,512 were received during the period ended February 28, 2022. The federal government imposes continuing compliance requirements on this loan. The loan balance at February 28, 2022 was $17,091,040.

Finding Details

Finding 2022-001
2022-001 ? Significant Deficiency ? segregation of duties Criteria - Good internal control requires a segregation of duties and responsibilities such that no one employee has access to both physical assets and the related accounting records, or to all phases of a transaction. Condition - The Cooperative has one employee that performs day to day management and accounting functions. Cause - The size of the Cooperative?s accounting and administrative staff precludes certain internal controls that would be preferred if the office staff were large enough to provide optimum segregation of duties. Effect - The lack of segregation of duties may result in undetected errors in financial statements and increases the possibility of misappropriation of Cooperative assets. Recommendation - The Board of Directors should remain involved in the financial affairs of the Cooperative on a regular ongoing basis to provide oversight and independent review functions and mitigate the weakness created by the lack of segregation. Auditee?s comment - The Board of Directors is and will remain involved in the financial affairs of the Cooperative. Status - Outstanding
Finding 2022-001
2022-001 ? Significant Deficiency ? segregation of duties Criteria - Good internal control requires a segregation of duties and responsibilities such that no one employee has access to both physical assets and the related accounting records, or to all phases of a transaction. Condition - The Cooperative has one employee that performs day to day management and accounting functions. Cause - The size of the Cooperative?s accounting and administrative staff precludes certain internal controls that would be preferred if the office staff were large enough to provide optimum segregation of duties. Effect - The lack of segregation of duties may result in undetected errors in financial statements and increases the possibility of misappropriation of Cooperative assets. Recommendation - The Board of Directors should remain involved in the financial affairs of the Cooperative on a regular ongoing basis to provide oversight and independent review functions and mitigate the weakness created by the lack of segregation. Auditee?s comment - The Board of Directors is and will remain involved in the financial affairs of the Cooperative. Status - Outstanding