Audit 14465

FY End
2023-06-30
Total Expended
$61.09M
Findings
2
Programs
19
Year: 2023 Accepted: 2024-01-30

Organization Exclusion Status:

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Contacts

Name Title Type
KL1NCJ98GKX7 Derek J. Morros Auditee
4132331500 Michael Driscoll Auditor
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Notes to SEFA

Title: Basis of Presentation Accounting Policies: Expenditures reported on accompanying schedule of expenditures of federal awards (the Schedule) are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance), wherein certain types of expenditures are not allowable or are limited as to reimbursement. De Minimis Rate Used: Y Rate Explanation: Way Finders, Inc. (Way Finders) has elected to use the 10% de minimus indirect cost rate as allowed under the Uniform Guidance. The Schedule includes the federal grant activity of Way Finders under programs of the Federal government for the year ended June 30, 2023. The information in the Schedule is presented in accordance with the requirements of the (Uniform Guidance). Because the Schedule presents only a selected portion Way Finders’ operations, it is not intended to and does not present the financial position, changes in net assets or cash flows of Way Finders.
Title: Loan and Guarantee Assistance Accounting Policies: Expenditures reported on accompanying schedule of expenditures of federal awards (the Schedule) are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance), wherein certain types of expenditures are not allowable or are limited as to reimbursement. De Minimis Rate Used: Y Rate Explanation: Way Finders, Inc. (Way Finders) has elected to use the 10% de minimus indirect cost rate as allowed under the Uniform Guidance. COMMUNITY DEVELOPMENT BLOCK GRANT (CFDA #14.218) - THE COMMUNITY DEVELOPMENT BLOCK GRANT LOAN WHICH WAS RECEIVED IN A PRIOR FISCAL YEAR, IS INCLUDED ON THE SCHEDULE AT ITS OUTSTANDING BALANCE AS OF JULY 1, 2022 AS IT INCLUDES CONTINUING COMPLIANCE REQUIREMENTS. DURING 2023, NO ADDITIONAL PROCEEDS WERE RECEIVED OR PAYMENTS MADE. AT JUNE 30, 2023, THE LOAN BALANCE WAS $170,000. MICROLOAN PROGRAM (CFDA #59.046) FEDERAL AWARDS IN THE FORM OF LOANS FROM THE SMALL BUSINESS ADMINISTRATION (SBA) ARE INCLUDED ON THE SCHEDULE AT THEIR OUTSTANDING BALANCES AS OF JULY 1, 2022 PLUS ANY NEW PROCEEDS RECEIVED DURING FISCAL YEAR 2023 AS THEY INCLUDE CONTINUING COMPLIANCE REQUIREMENTS. THE ACTIVITY ON THESE LOANS FOR THE YEAR ENDED JUNE 30, 2023 IS AS FOLLOWS: LOAN #702-510-5007 SBA, BALANCE JULY 1, 2022 $105,293, PROCEEDS RECEIVED $0, PAYMENTS MADE $43,086, BALANCE JUNE 30, 2023 $62,207; LOAN #960-371-5003 SBA, BALANCE JULY 1, 2022 $357,238, PROCEEDS RECEIVED $0, PAYMENTS MADE $68,339, AND BALANCE JUNE 30, 2023 $288,899; LOAN #365-889-7003 SBA, BALANCE JULY 1, 2022 $467,473, PROCEEDS RECEIVED $0, PAYMENTS MADE $64,865, AND BALANCE JUNE 30, 2023 $402,608; AND LOAN #839-167-8202 SBA, BALANCE JULY 1, 2022 $727,315, PROCEEDS RECEIVED $0, PAYMENTS MADE $68,056, AND BALANCE JUNE 30, 2023 $659,259. 7(A) LOAN GUARANTEES (CFDA #59.012) THE SBA HAS GUARANTEED BETWEEN 75% AND 90% OF QUALIFYING OUTSTANDING BALANCES ON LOANS RECEIVABLE MADE BY COMMON CAPITAL, INC. THE FEDERAL AWARD EXPENDITURES REPORTED ON THE SCHEDULE IS EQUAL TO THE OUTSTANDING GUARANTEES AT JULY 1, 2022 PLUS ANY ADDITIONAL GUARANTEES MADE DURING THE YEAR ENDED JUNE 30, 2023. AT JUNE 30, 2023, THE GUARANTEES COVERED $1,269,877 OF $1,603,482 QUALIFYING LOANS. AT JUNE 30, 2023, THE GUARANTEES COVERED $2,190,875 OF $2,760,879 QUALIFYING LOANS. SBA PROVIDED AN ADDITIONAL $1,114,000 IN GUARANTEES FOR $1,400,000 IN NEW LOANS MADE DURING THE YEAR ENDED JUNE 30, 2023.
Title: Economic Adjustment Assistance (Assistance Listing #11.307) Accounting Policies: Expenditures reported on accompanying schedule of expenditures of federal awards (the Schedule) are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance), wherein certain types of expenditures are not allowable or are limited as to reimbursement. De Minimis Rate Used: Y Rate Explanation: Way Finders, Inc. (Way Finders) has elected to use the 10% de minimus indirect cost rate as allowed under the Uniform Guidance. IN ACCORDANCE WITH THE U.S. OFFICE OF MANAGEMENT AND BUDGET (OMB) COMPLIANCE SUPPLEMENT FOR THIS PROGRAM, EXPENDITURES REPORTED ON THE SCHEDULE ARE CALCULATED AS FOLLOWS: AWARD #01-79-14260, REVOLVING LOAN FUND PRINCIPAL AT JUNE 30, 2022 $616,992, REVOLVING LOAN FUND CASH AND INVESTMENT BALANCES AT JUNE 30, 2023 $(1,824), ADMINISTRATIVE EXPENSES PAID OUT OF THE REVOLVING LOAN FUND DURING FISCAL YEAR 2023 $12,876, TOTAL PROGRAM EXPENDITURES FOR THE YEAR ENDED JUNE 30, 2023 $628,044, FEDERAL SHARE OF THE REVOLVING LOAN FUND 80%, FEDERAL EXPENDITURES FOR THE YEAR ENDED JUNE 30, 2023 $502,436; AND AWARD #01-79-08851, REVOLVING LOAN FUND PRINCIPAL AT JUNE 30, 2023 $781,696, REVOLVING LOAN FUND CASH AND INVESTMENT BALANCES AT JUNE 30, 2023 $102,329, ADMINISTRATIVE EXPENSES PAID OUT OF THE REVOLVING LOAN FUND DURING FISCAL YEAR 2023 $14,911, TOTAL PROGRAM EXPENDITURES FOR THE YEAR ENDED JUNE 30, 2023 $898,936, FEDERAL SHARE OF THE REVOLVING LOAN FUND 50%, FEDERAL EXPENDITURES FOR THE YEAR ENDED JUNE 30, 2023 $449,468.

Finding Details

2023-001 Payments on behalf of Ineligible Participants Federal Agency: U.S. Department of the Treasury Federal Program: 20.023 Emergency Rental Assistance Program (ERAP) Condition Management identified four payments under the ERAP totaling $40,000 for the year ended June 30, 2023, that were made on behalf of ineligible participants. Additionally, management identified additional payments on behalf of ineligible participants under the non-federal Rental Assistance for Families in Transition (RAFT) program during the period July 1, 2021 through December 31, 2023. Management identified 27 ineligible payments totaling $226,190 made under the two programs for the period July 1, 2021 through December 31, 2023. Context No exceptions were found in a non-statistically valid sample of forty disbursements totaling $82,443 under the ERAP. The population for the ERAP disbursements was 3,612 totaling $6,645,726. The ineligible payments were detected through non-sampling procedures. Criteria Financial assistance to households including payments of rent, rental arrears, utilities and home energy costs, utility and home energy costs arrears and other expenses relating to housing must be paid to participants whom are at risk of homelessness and have household income levels at or below 80% of the area median income. Cause Manual overrides in EOHLC’s online payment system were used to process payments that did not pass the initial verification process. Effect Certain payments were not made to or on behalf of eligible participants in accordance with program regulations. Questioned Costs $40,000 Repeat Finding No Recommendation We recommend management continue to work with EOHLC to develop additional policies and procedures over the review, approval and payments process to ensure funding is only provided to or on behalf of eligible participants in accordance with program regulations. Management Response Management agrees with the finding. See management’s attached corrective action plan.
2023-001 Payments on behalf of Ineligible Participants Federal Agency: U.S. Department of the Treasury Federal Program: 20.023 Emergency Rental Assistance Program (ERAP) Condition Management identified four payments under the ERAP totaling $40,000 for the year ended June 30, 2023, that were made on behalf of ineligible participants. Additionally, management identified additional payments on behalf of ineligible participants under the non-federal Rental Assistance for Families in Transition (RAFT) program during the period July 1, 2021 through December 31, 2023. Management identified 27 ineligible payments totaling $226,190 made under the two programs for the period July 1, 2021 through December 31, 2023. Context No exceptions were found in a non-statistically valid sample of forty disbursements totaling $82,443 under the ERAP. The population for the ERAP disbursements was 3,612 totaling $6,645,726. The ineligible payments were detected through non-sampling procedures. Criteria Financial assistance to households including payments of rent, rental arrears, utilities and home energy costs, utility and home energy costs arrears and other expenses relating to housing must be paid to participants whom are at risk of homelessness and have household income levels at or below 80% of the area median income. Cause Manual overrides in EOHLC’s online payment system were used to process payments that did not pass the initial verification process. Effect Certain payments were not made to or on behalf of eligible participants in accordance with program regulations. Questioned Costs $40,000 Repeat Finding No Recommendation We recommend management continue to work with EOHLC to develop additional policies and procedures over the review, approval and payments process to ensure funding is only provided to or on behalf of eligible participants in accordance with program regulations. Management Response Management agrees with the finding. See management’s attached corrective action plan.