MOTHER OF MERCY CAMPUS OF CARENon-Profit

Program Name: Community Facilities Loans and Grants Cluster Assistance Listing Numbers: 10.766 Type of Finding: Noncompliance, Significant Deficiency Compliance Requirement: Reporting Condition: The Organization did not meet its financial reporting obligations under the grant during the year. The Organization did not file the Data Collection Form (SFSAC) by the due date of June 30, 2023. Criteria: The Organization is required to file the Data Collection Form (SFSAC) within 30 days after receipt of audit or 9 months after year end, whichever is first. Cause: The Data Collection Form was not filed within the required period due to a delay in preparations for the audit. Effect: The Organization was not in compliance with federal regulations and the Community Facilities Loans and Grants Cluster. Recommendation: We recommend audit preparations are completed on a timely basis to ensure that the reporting deadline is met. View of Responsible Officials: Management acknowledges there were significant capacity issues as a result of turnover and a software system conversion during 2022, which caused constraints and resulted in the late audit completion and filing the SFSAC. Management will assure that the 2023 audit is submitted to the Federal Audit Clearinghouse by the due date of June 30, 2024.

Program Name: Community Facilities Loans and Grants Cluster Assistance Listing Numbers: 10.766 Type of Finding: Noncompliance, Significant Deficiency Compliance Requirement: Special Tests and Provisions Condition: The Organization did not meet its annual deposit requirement into the debt reserve fund. Criteria: The Organization is required to make monthly deposits of $1,495 into the debt reserve fund up until the account has been fully funded. Cause: During 2022, the Organization made monthly deposits into the debt reserve of $1,300, causing the annual deposits to be underfunded. Effect: The annual deposits into the debt reserve were underfunded by $2,070 for the year ended September 30, 2022. Recommendation: We recommend the Organization make a deposit to catchup the debt revenue fund to the correct balance had deposits of the full amount been correctly made. We also recommend the Organization adjust the monthly deposits going forward to $1,495, as stated in the USDA loan agreement. View of Responsible Officials: Management will review the loan agreements and discuss with USDA to determine if there have been any changes to the monthly reserve deposit requirement since the original loan agreement. If not, a catchup deposit will be made and the monthly deposits will be corrected.