CHRISTIAN FARMS-TREEHOUSE, INC.

EIN: 237154898

UEI: TKUXHYDQK6C6

Data as of August 27, 2026

CHRISTIAN FARMS-TREEHOUSE, INC.8 audit years8 findings3 repeat
8
Audit Years
8
Total Findings
3
Repeat Findings

FY 2024-12-31

Management decision deadline — for entities that funded this organization

The FAC accepted this audit on May 29, 2026. Under 2 CFR 200.521(d), a pass-through entity that provided federal funds to this organization for this audit period must issue a management decision on these findings by November 29, 2026 (94 days from today).

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2024-001
Cost Allowability
MATERIAL WEAKNESSREPEAT

The Organization 's policies and procedures were not followed in the accounting for expenditures process.

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The Organization 's policies and procedures were not followed in the accounting for expenditures process.

Corrective Action Plan

Recommendation: The Organization should reinforce its policies and procedures in regards to expenditures to ensure vendor invoices are retained in a secure, centralized location. Responsible Official 's Response: We agree and will make sure that all invoices are received and recorded accurately with proper authorization, and upon payment of those invoices, the confirmation of payment will be attached to the invoice and the invoices stored in a central location in the administrative offices.

Prior Finding References

2023-001

About Allowable Costs / Cost Principles →
2024-002
Cost Allowability
MATERIAL WEAKNESSREPEAT

The Organization's policies and procedures were not followed in the accounting/or revenue recognition and accounts receivable processes.

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Full finding narrative

The Organization's policies and procedures were not followed in the accounting/or revenue recognition and accounts receivable processes.

Corrective Action Plan

Recommendation: The Organization should reinforce its policies and procedures in regards to expenditures to ensure vendor invoices are retained in a secure, centralized location. Responsible Official 's Response: We agree and will make sure that all invoices are received and recorded accurately with proper authorization, and upon payment of those invoices, the confirmation of payment will be attached to the invoice and the invoices stored in a central location in the administrative offices.

Prior Finding References

2023-002

About Allowable Costs / Cost Principles →
2024-003
Cost Allowability

The Organization's policies and procedures were not followed in the accounting for payroll payments to the Internal Revenue Service.

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The Organization's policies and procedures were not followed in the accounting for payroll payments to the Internal Revenue Service.

Corrective Action Plan

Recommendation: The Organization should reinforce its policies and procedures in regards to payroll expenses and note that when payroll is run, payment to the Internal Revenue Service should be rendered to decrease accrued payroll liabilities. Responsible Officials' Response: Payments were made to the Internal Revenue Service for this payroll liability account beginning January 2025. It will continue to work with the Internal Revenue Service to continue paying off the remainder of the balance and all new accruals and penalties.

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2024-004
Cost Allowability

The Organization's policies and procedures were not followed in the accounting for percentage allocation support.

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The Organization's policies and procedures were not followed in the accounting for percentage allocation support.

Corrective Action Plan

Recommendation: The Organization should reinforce its policies and procedures in regards to record keeping. Responsible Officials' Response: We agree and will make sure that all percentage allocations are properly verified and maintained in a separate ledger for reconciliations.

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2024-005
Cost Allowability

The Organization's policies and procedures were not followed in the accounting for revenue classification.

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The Organization's policies and procedures were not followed in the accounting for revenue classification.

Corrective Action Plan

Recommendation: The Organization should reinforce its policies and procedures in regards to accurately classifying receivables and deposits. Responsible Officials' Response: We agree and will make sure that all invoices are received and recorded accurately with proper authorization, and upon deposit of those invoices, the confirmation of deposit will be attached to the invoice and the invoices stored in a central location in the administrative offices.

About Allowable Costs / Cost Principles →

FY 2023-12-31

FAC accepted this audit on March 10, 2025 — management decision was due September 10, 2025.

2023-001
Cost Allowability
REPEAT

For the year ended December 31, 2023, thirty-five of the forty-one invoices from the disbursement testing sample and twenty-two of the twenty-five from compliance and control testing sample were unable to be located. Cause: The Organization has noticed that there is an increasing number of invoices that are being sent to an old email address that no one has access to. Additionally, the Organization stated that they did not follow through well with their planned updates to their control policy due to increases in their day-to-day work. Effect or Potential Effect: Duplicate payments could be made to vendors and expenditures could be charged to programs that are not allowable.

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Section 2 – Financial Statement Findings Finding 2023-01: The Organization’s policies and procedures were not followed in the accounting for expenditures process. Criteria: The Organization’s policies and procedures require vendor invoices to be retained in vendor files after payment has been made. Condition: For the year ended December 31, 2023, thirty-five of the forty-one invoices from the disbursement testing sample and twenty-two of the twenty-five from compliance and control testing sample were unable to be located. Cause: The Organization has noticed that there is an increasing number of invoices that are being sent to an old email address that no one has access to. Additionally, the Organization stated that they did not follow through well with their planned updates to their control policy due to increases in their day-to-day work. Effect or Potential Effect: Duplicate payments could be made to vendors and expenditures could be charged to programs that are not allowable.

Corrective Action Plan

Recommendation: The Organization should reinforce its policies and procedures in regards to expenditures to ensure vendor invoices are retained in a secure, centralized location. Responsible Official‘s Response: We agree and will make sure that all invoices are received and recorded accurately with proper authorization, and upon payment of those invoices, the confirmation of payment will be attached to the invoice and the invoices stored in a central location in the administrative offices.

Prior Finding References

2022-001

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2023-002
Cost Allowability

For the year ended December 31, 2023, there were no payments disbursed to the Internal Revenue Service after June 26, 2023. Cause: The Organization has noticed that there is an increasing number of invoices that are being sent to an old email address that no one has access to. Additionally, the Organization stated that they did not follow through well with their planned updates to their control policy due to increases in their day-to-day work. Effect or Potential Effect: This is increasing the liability for the Company, and there will be significant penalties and interest related to the outstanding balances that are likely to be material to the financial statements in the current audit period and future audit periods.

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Finding 2023-02: The Organization’s policies and procedures were not followed in the accounting for payroll payments to the Internal Revenue Service. Criteria: The Organization’s policies and procedures require regular payments be made to the Internal Revenue Services for expenses related to payroll taxes. Condition: For the year ended December 31, 2023, there were no payments disbursed to the Internal Revenue Service after June 26, 2023. Cause: The Organization has noticed that there is an increasing number of invoices that are being sent to an old email address that no one has access to. Additionally, the Organization stated that they did not follow through well with their planned updates to their control policy due to increases in their day-to-day work. Effect or Potential Effect: This is increasing the liability for the Company, and there will be significant penalties and interest related to the outstanding balances that are likely to be material to the financial statements in the current audit period and future audit periods.

Corrective Action Plan

Recommendation: The Organization should reinforce its policies and procedures in regards to payroll expenses and note that when payroll is run, payment to the Internal Revenue Service should be rendered to decrease accrued payroll liabilities. Responsible Official‘s Response: We agree and will make sure that whenever payroll is run, payment is disbursed to the Internal Revenue Service to pay for payroll liabilities. Additionally, we will monitor the payroll liabilities account in the general ledger monthly to make sure there are no non-reconciling items in related to the account.

About Allowable Costs / Cost Principles →

FY 2022-12-31

FAC accepted this audit on November 10, 2023 — management decision was due May 10, 2024.

2022-001
Cost Allowability

For the year ended December 31, 2022, six of the forty-three invoices from the disbursement testing sample and five of the twenty-five from compliance and control testing sample were unable to be located. Cause: The Organization experienced flooding in early 2022 causing personnel to move in and out of different office spaces during the flood remediation. Effect or Potential Effect: Duplicate payments could be made to vendors and expenditures could be charged to programs that are not allowable. Section 3- Federal/State Award Findings and Questioned Costs Finding 2022-01: The Organization's policies and procedures were no/followed in the accounting.for expenditures process. Criteria: The Organiwtion's policies and procedures require vendor invoices to be retained in vendor files after payment has been made. Condition: For the year ended December 31, 2022, six of the forty-three invoices from the disbursement testing sample and five of the twenty-five from compli,mce and control testing sample were unable to be located. Cause: The Organization experienced flooding in early 2022 causing personnel to move in and out of different office spaces during the flood remediation. Effect or Potential Effect: Duplicate payments could be made to vendors and expenditures could be charged to progrnms tlrnt are not allowable.

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Full finding narrative

Section 2 - Financial Statement Findings Finding 2022-01: The Organization's policies and procedures were not followed in the accounting for expenditures process. Criteria: The Organization's policies and procedures require vendor invoices to be retained in vendor files after payment has been made. Condition: For the year ended December 31, 2022, six of the forty-three invoices from the disbursement testing sample and five of the twenty-five from compliance and control testing sample were unable to be located. Cause: The Organization experienced flooding in early 2022 causing personnel to move in and out of different office spaces during the flood remediation. Effect or Potential Effect: Duplicate payments could be made to vendors and expenditures could be charged to programs that are not allowable. Section 3- Federal/State Award Findings and Questioned Costs Finding 2022-01: The Organization's policies and procedures were no/followed in the accounting.for expenditures process. Criteria: The Organiwtion's policies and procedures require vendor invoices to be retained in vendor files after payment has been made. Condition: For the year ended December 31, 2022, six of the forty-three invoices from the disbursement testing sample and five of the twenty-five from compli,mce and control testing sample were unable to be located. Cause: The Organization experienced flooding in early 2022 causing personnel to move in and out of different office spaces during the flood remediation. Effect or Potential Effect: Duplicate payments could be made to vendors and expenditures could be charged to progrnms tlrnt are not allowable.

Corrective Action Plan

The Orgnnization should reinforce its policies and procedures in regards to expenditures to ensure vendor invoices are retained in a secure centralized location. The Organization intends to reinforce the importance of retaining records such as vendor invoices.

About Allowable Costs / Cost Principles →

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