Audit 21274

FY End
2022-12-31
Total Expended
$2.01M
Findings
60
Programs
3
Organization: Guild (MN)
Year: 2022 Accepted: 2023-07-09
Auditor: Eide Bailly LLP

Organization Exclusion Status:

Checking exclusion status...

Findings

ID Ref Severity Repeat Requirement
24684 2022-002 Significant Deficiency Yes H
24685 2022-001 Material Weakness Yes N
24686 2022-002 Significant Deficiency Yes H
24687 2022-001 Material Weakness Yes N
24688 2022-001 Material Weakness Yes N
24689 2022-002 Significant Deficiency Yes H
24690 2022-001 Material Weakness Yes N
24691 2022-002 Significant Deficiency Yes H
24692 2022-002 Significant Deficiency Yes H
24693 2022-001 Material Weakness Yes N
24694 2022-001 Material Weakness Yes N
24695 2022-002 Significant Deficiency Yes H
24696 2022-001 Material Weakness Yes N
24697 2022-002 Significant Deficiency Yes H
24698 2022-001 Material Weakness Yes N
24699 2022-002 Significant Deficiency Yes H
24700 2022-002 Significant Deficiency Yes H
24701 2022-001 Material Weakness Yes N
24702 2022-001 Material Weakness Yes N
24703 2022-002 Significant Deficiency Yes H
24704 2022-001 Material Weakness Yes N
24705 2022-002 Significant Deficiency Yes H
24706 2022-002 Significant Deficiency Yes H
24707 2022-001 Material Weakness Yes N
24708 2022-001 Material Weakness Yes N
24709 2022-002 Significant Deficiency Yes H
24710 2022-001 Material Weakness Yes N
24711 2022-002 Significant Deficiency Yes H
24712 2022-002 Significant Deficiency Yes H
24713 2022-001 Material Weakness Yes N
601126 2022-002 Significant Deficiency Yes H
601127 2022-001 Material Weakness Yes N
601128 2022-002 Significant Deficiency Yes H
601129 2022-001 Material Weakness Yes N
601130 2022-001 Material Weakness Yes N
601131 2022-002 Significant Deficiency Yes H
601132 2022-001 Material Weakness Yes N
601133 2022-002 Significant Deficiency Yes H
601134 2022-002 Significant Deficiency Yes H
601135 2022-001 Material Weakness Yes N
601136 2022-001 Material Weakness Yes N
601137 2022-002 Significant Deficiency Yes H
601138 2022-001 Material Weakness Yes N
601139 2022-002 Significant Deficiency Yes H
601140 2022-001 Material Weakness Yes N
601141 2022-002 Significant Deficiency Yes H
601142 2022-002 Significant Deficiency Yes H
601143 2022-001 Material Weakness Yes N
601144 2022-001 Material Weakness Yes N
601145 2022-002 Significant Deficiency Yes H
601146 2022-001 Material Weakness Yes N
601147 2022-002 Significant Deficiency Yes H
601148 2022-002 Significant Deficiency Yes H
601149 2022-001 Material Weakness Yes N
601150 2022-001 Material Weakness Yes N
601151 2022-002 Significant Deficiency Yes H
601152 2022-001 Material Weakness Yes N
601153 2022-002 Significant Deficiency Yes H
601154 2022-002 Significant Deficiency Yes H
601155 2022-001 Material Weakness Yes N

Programs

ALN Program Spent Major Findings
14.267 Continuum of Care Program $315,992 Yes 2
93.150 Projects for Assistance in Transition From Homelessness (path) $145,050 - 0
14.231 Emergency Solutions Grant Program $42,606 - 0

Contacts

Name Title Type
RCNTN5GKRQ61 Paul Bloomer Auditee
6519258484 Aaron Ness Auditor
No contacts on file

Notes to SEFA

Title: Basis of Presentation Accounting Policies: Expenditures reported on the schedule are reported on the accrual basis of accounting. When applicable, such expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. No federal financial assistance has been provided to a subrecipient. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. The accompanying schedule of expenditures of federal awards (the schedule) includes the federal award activity of Guild (the Organization) under programs of the Federal Government for the year ended December 31, 2022. The information 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 the Organization, it is not intended to, and does not, present the financial position, changes in net assets, or cash flows of the Organization.

Finding Details

Department of Housing and Urban Development, Passed through Hearth Connections, Continuum of Care, Federal Financial Assistance Listing/CFDA # 14.267 Period of Performance Significant Deficiency in Internal Controls Over Compliance Grant Award Number: Affects all grant awards included under Federal Financial Assistance Listing/ CFDA 14.267 on the Schedule. Criteria: Internal controls should be designed and operating to ensure that documentation that is maintained by the Organization that supports the reimbursement amount received from the passthrough entity for supportive services. Condition: During our testing, we identified three months in which the reimbursement amount received from the pass-through entity was more than the Organization?s documentation. In addition, there was no indication that a review was performed of the information submitted for one of the four months tested. Cause: The Organization?s controls did not operate as designed, which resulted in the reimbursement amount from the pass-through entity being more than the support maintained by the Organization for three of the 12 months and no documentation of the review for one of the months. Effect: Inadequate internal controls over compliance could result in noncompliance with the federal program. Questioned Costs: N/A Context/Sampling: A nonstatistical sample of four months participants out of 12 were selected for testing. Repeat Finding from Prior Years: Yes, prior year finding 2021-003. Recommendation: We recommend management revise their internal controls to make sure the forms submitted are reviewed by the Organization prior to submission. Views of Responsible Officials: Management agrees with the finding.
Department of Housing and Urban Development, Passed through Hearth Connections, Continuum of Care, Federal Financial Assistance Listing/CFDA # 14.267 Special Tests and Provisions Material Weakness in Internal Controls Over Compliance Grant Award Number: Affects all grant awards included under Federal Financial Assistance Listing/ CFDA 14.267 on the Schedule. Criteria: When grant funds are used by the Organization to pay for rent, the Organization must ensure that the rents do not exceed rents currently being charged by the same owner for comparable unassisted units and the portion of grant funds may not exceed HUD-determined fair market rents. These calculations should be reviewed prior to the rent being paid. Condition: During our testing, we identified five instances where the participant?s file did not have documentation that the rent reasonableness test was performed in a timely manner. In addition, we identified 19 instances where the participant?s file did not have documentation that the rent reasonableness test was reviewed. Cause: The Organization?s controls did not operate as designed, which resulted in rent reasonableness tests not being performed timely and/or reviewed before the rent being paid. Effect: Inadequate internal controls over compliance could result in noncompliance with the federal program. Questioned Costs: N/A Context/Sampling: A nonstatistical sample of 34 participants out of 170 were selected for testing. Repeat Finding from Prior Years: Yes, prior year finding 2021-002. Recommendation: We recommend management revise their internal controls to make sure that rent reasonableness tests are performed and reviewed by the appropriate personnel prior to the rent being paid. Views of Responsible Officials: Management agrees with the finding.
Department of Housing and Urban Development, Passed through Hearth Connections, Continuum of Care, Federal Financial Assistance Listing/CFDA # 14.267 Period of Performance Significant Deficiency in Internal Controls Over Compliance Grant Award Number: Affects all grant awards included under Federal Financial Assistance Listing/ CFDA 14.267 on the Schedule. Criteria: Internal controls should be designed and operating to ensure that documentation that is maintained by the Organization that supports the reimbursement amount received from the passthrough entity for supportive services. Condition: During our testing, we identified three months in which the reimbursement amount received from the pass-through entity was more than the Organization?s documentation. In addition, there was no indication that a review was performed of the information submitted for one of the four months tested. Cause: The Organization?s controls did not operate as designed, which resulted in the reimbursement amount from the pass-through entity being more than the support maintained by the Organization for three of the 12 months and no documentation of the review for one of the months. Effect: Inadequate internal controls over compliance could result in noncompliance with the federal program. Questioned Costs: N/A Context/Sampling: A nonstatistical sample of four months participants out of 12 were selected for testing. Repeat Finding from Prior Years: Yes, prior year finding 2021-003. Recommendation: We recommend management revise their internal controls to make sure the forms submitted are reviewed by the Organization prior to submission. Views of Responsible Officials: Management agrees with the finding.
Department of Housing and Urban Development, Passed through Hearth Connections, Continuum of Care, Federal Financial Assistance Listing/CFDA # 14.267 Special Tests and Provisions Material Weakness in Internal Controls Over Compliance Grant Award Number: Affects all grant awards included under Federal Financial Assistance Listing/ CFDA 14.267 on the Schedule. Criteria: When grant funds are used by the Organization to pay for rent, the Organization must ensure that the rents do not exceed rents currently being charged by the same owner for comparable unassisted units and the portion of grant funds may not exceed HUD-determined fair market rents. These calculations should be reviewed prior to the rent being paid. Condition: During our testing, we identified five instances where the participant?s file did not have documentation that the rent reasonableness test was performed in a timely manner. In addition, we identified 19 instances where the participant?s file did not have documentation that the rent reasonableness test was reviewed. Cause: The Organization?s controls did not operate as designed, which resulted in rent reasonableness tests not being performed timely and/or reviewed before the rent being paid. Effect: Inadequate internal controls over compliance could result in noncompliance with the federal program. Questioned Costs: N/A Context/Sampling: A nonstatistical sample of 34 participants out of 170 were selected for testing. Repeat Finding from Prior Years: Yes, prior year finding 2021-002. Recommendation: We recommend management revise their internal controls to make sure that rent reasonableness tests are performed and reviewed by the appropriate personnel prior to the rent being paid. Views of Responsible Officials: Management agrees with the finding.
Department of Housing and Urban Development, Passed through Hearth Connections, Continuum of Care, Federal Financial Assistance Listing/CFDA # 14.267 Special Tests and Provisions Material Weakness in Internal Controls Over Compliance Grant Award Number: Affects all grant awards included under Federal Financial Assistance Listing/ CFDA 14.267 on the Schedule. Criteria: When grant funds are used by the Organization to pay for rent, the Organization must ensure that the rents do not exceed rents currently being charged by the same owner for comparable unassisted units and the portion of grant funds may not exceed HUD-determined fair market rents. These calculations should be reviewed prior to the rent being paid. Condition: During our testing, we identified five instances where the participant?s file did not have documentation that the rent reasonableness test was performed in a timely manner. In addition, we identified 19 instances where the participant?s file did not have documentation that the rent reasonableness test was reviewed. Cause: The Organization?s controls did not operate as designed, which resulted in rent reasonableness tests not being performed timely and/or reviewed before the rent being paid. Effect: Inadequate internal controls over compliance could result in noncompliance with the federal program. Questioned Costs: N/A Context/Sampling: A nonstatistical sample of 34 participants out of 170 were selected for testing. Repeat Finding from Prior Years: Yes, prior year finding 2021-002. Recommendation: We recommend management revise their internal controls to make sure that rent reasonableness tests are performed and reviewed by the appropriate personnel prior to the rent being paid. Views of Responsible Officials: Management agrees with the finding.
Department of Housing and Urban Development, Passed through Hearth Connections, Continuum of Care, Federal Financial Assistance Listing/CFDA # 14.267 Period of Performance Significant Deficiency in Internal Controls Over Compliance Grant Award Number: Affects all grant awards included under Federal Financial Assistance Listing/ CFDA 14.267 on the Schedule. Criteria: Internal controls should be designed and operating to ensure that documentation that is maintained by the Organization that supports the reimbursement amount received from the passthrough entity for supportive services. Condition: During our testing, we identified three months in which the reimbursement amount received from the pass-through entity was more than the Organization?s documentation. In addition, there was no indication that a review was performed of the information submitted for one of the four months tested. Cause: The Organization?s controls did not operate as designed, which resulted in the reimbursement amount from the pass-through entity being more than the support maintained by the Organization for three of the 12 months and no documentation of the review for one of the months. Effect: Inadequate internal controls over compliance could result in noncompliance with the federal program. Questioned Costs: N/A Context/Sampling: A nonstatistical sample of four months participants out of 12 were selected for testing. Repeat Finding from Prior Years: Yes, prior year finding 2021-003. Recommendation: We recommend management revise their internal controls to make sure the forms submitted are reviewed by the Organization prior to submission. Views of Responsible Officials: Management agrees with the finding.
Department of Housing and Urban Development, Passed through Hearth Connections, Continuum of Care, Federal Financial Assistance Listing/CFDA # 14.267 Special Tests and Provisions Material Weakness in Internal Controls Over Compliance Grant Award Number: Affects all grant awards included under Federal Financial Assistance Listing/ CFDA 14.267 on the Schedule. Criteria: When grant funds are used by the Organization to pay for rent, the Organization must ensure that the rents do not exceed rents currently being charged by the same owner for comparable unassisted units and the portion of grant funds may not exceed HUD-determined fair market rents. These calculations should be reviewed prior to the rent being paid. Condition: During our testing, we identified five instances where the participant?s file did not have documentation that the rent reasonableness test was performed in a timely manner. In addition, we identified 19 instances where the participant?s file did not have documentation that the rent reasonableness test was reviewed. Cause: The Organization?s controls did not operate as designed, which resulted in rent reasonableness tests not being performed timely and/or reviewed before the rent being paid. Effect: Inadequate internal controls over compliance could result in noncompliance with the federal program. Questioned Costs: N/A Context/Sampling: A nonstatistical sample of 34 participants out of 170 were selected for testing. Repeat Finding from Prior Years: Yes, prior year finding 2021-002. Recommendation: We recommend management revise their internal controls to make sure that rent reasonableness tests are performed and reviewed by the appropriate personnel prior to the rent being paid. Views of Responsible Officials: Management agrees with the finding.
Department of Housing and Urban Development, Passed through Hearth Connections, Continuum of Care, Federal Financial Assistance Listing/CFDA # 14.267 Period of Performance Significant Deficiency in Internal Controls Over Compliance Grant Award Number: Affects all grant awards included under Federal Financial Assistance Listing/ CFDA 14.267 on the Schedule. Criteria: Internal controls should be designed and operating to ensure that documentation that is maintained by the Organization that supports the reimbursement amount received from the passthrough entity for supportive services. Condition: During our testing, we identified three months in which the reimbursement amount received from the pass-through entity was more than the Organization?s documentation. In addition, there was no indication that a review was performed of the information submitted for one of the four months tested. Cause: The Organization?s controls did not operate as designed, which resulted in the reimbursement amount from the pass-through entity being more than the support maintained by the Organization for three of the 12 months and no documentation of the review for one of the months. Effect: Inadequate internal controls over compliance could result in noncompliance with the federal program. Questioned Costs: N/A Context/Sampling: A nonstatistical sample of four months participants out of 12 were selected for testing. Repeat Finding from Prior Years: Yes, prior year finding 2021-003. Recommendation: We recommend management revise their internal controls to make sure the forms submitted are reviewed by the Organization prior to submission. Views of Responsible Officials: Management agrees with the finding.
Department of Housing and Urban Development, Passed through Hearth Connections, Continuum of Care, Federal Financial Assistance Listing/CFDA # 14.267 Period of Performance Significant Deficiency in Internal Controls Over Compliance Grant Award Number: Affects all grant awards included under Federal Financial Assistance Listing/ CFDA 14.267 on the Schedule. Criteria: Internal controls should be designed and operating to ensure that documentation that is maintained by the Organization that supports the reimbursement amount received from the passthrough entity for supportive services. Condition: During our testing, we identified three months in which the reimbursement amount received from the pass-through entity was more than the Organization?s documentation. In addition, there was no indication that a review was performed of the information submitted for one of the four months tested. Cause: The Organization?s controls did not operate as designed, which resulted in the reimbursement amount from the pass-through entity being more than the support maintained by the Organization for three of the 12 months and no documentation of the review for one of the months. Effect: Inadequate internal controls over compliance could result in noncompliance with the federal program. Questioned Costs: N/A Context/Sampling: A nonstatistical sample of four months participants out of 12 were selected for testing. Repeat Finding from Prior Years: Yes, prior year finding 2021-003. Recommendation: We recommend management revise their internal controls to make sure the forms submitted are reviewed by the Organization prior to submission. Views of Responsible Officials: Management agrees with the finding.
Department of Housing and Urban Development, Passed through Hearth Connections, Continuum of Care, Federal Financial Assistance Listing/CFDA # 14.267 Special Tests and Provisions Material Weakness in Internal Controls Over Compliance Grant Award Number: Affects all grant awards included under Federal Financial Assistance Listing/ CFDA 14.267 on the Schedule. Criteria: When grant funds are used by the Organization to pay for rent, the Organization must ensure that the rents do not exceed rents currently being charged by the same owner for comparable unassisted units and the portion of grant funds may not exceed HUD-determined fair market rents. These calculations should be reviewed prior to the rent being paid. Condition: During our testing, we identified five instances where the participant?s file did not have documentation that the rent reasonableness test was performed in a timely manner. In addition, we identified 19 instances where the participant?s file did not have documentation that the rent reasonableness test was reviewed. Cause: The Organization?s controls did not operate as designed, which resulted in rent reasonableness tests not being performed timely and/or reviewed before the rent being paid. Effect: Inadequate internal controls over compliance could result in noncompliance with the federal program. Questioned Costs: N/A Context/Sampling: A nonstatistical sample of 34 participants out of 170 were selected for testing. Repeat Finding from Prior Years: Yes, prior year finding 2021-002. Recommendation: We recommend management revise their internal controls to make sure that rent reasonableness tests are performed and reviewed by the appropriate personnel prior to the rent being paid. Views of Responsible Officials: Management agrees with the finding.
Department of Housing and Urban Development, Passed through Hearth Connections, Continuum of Care, Federal Financial Assistance Listing/CFDA # 14.267 Special Tests and Provisions Material Weakness in Internal Controls Over Compliance Grant Award Number: Affects all grant awards included under Federal Financial Assistance Listing/ CFDA 14.267 on the Schedule. Criteria: When grant funds are used by the Organization to pay for rent, the Organization must ensure that the rents do not exceed rents currently being charged by the same owner for comparable unassisted units and the portion of grant funds may not exceed HUD-determined fair market rents. These calculations should be reviewed prior to the rent being paid. Condition: During our testing, we identified five instances where the participant?s file did not have documentation that the rent reasonableness test was performed in a timely manner. In addition, we identified 19 instances where the participant?s file did not have documentation that the rent reasonableness test was reviewed. Cause: The Organization?s controls did not operate as designed, which resulted in rent reasonableness tests not being performed timely and/or reviewed before the rent being paid. Effect: Inadequate internal controls over compliance could result in noncompliance with the federal program. Questioned Costs: N/A Context/Sampling: A nonstatistical sample of 34 participants out of 170 were selected for testing. Repeat Finding from Prior Years: Yes, prior year finding 2021-002. Recommendation: We recommend management revise their internal controls to make sure that rent reasonableness tests are performed and reviewed by the appropriate personnel prior to the rent being paid. Views of Responsible Officials: Management agrees with the finding.
Department of Housing and Urban Development, Passed through Hearth Connections, Continuum of Care, Federal Financial Assistance Listing/CFDA # 14.267 Period of Performance Significant Deficiency in Internal Controls Over Compliance Grant Award Number: Affects all grant awards included under Federal Financial Assistance Listing/ CFDA 14.267 on the Schedule. Criteria: Internal controls should be designed and operating to ensure that documentation that is maintained by the Organization that supports the reimbursement amount received from the passthrough entity for supportive services. Condition: During our testing, we identified three months in which the reimbursement amount received from the pass-through entity was more than the Organization?s documentation. In addition, there was no indication that a review was performed of the information submitted for one of the four months tested. Cause: The Organization?s controls did not operate as designed, which resulted in the reimbursement amount from the pass-through entity being more than the support maintained by the Organization for three of the 12 months and no documentation of the review for one of the months. Effect: Inadequate internal controls over compliance could result in noncompliance with the federal program. Questioned Costs: N/A Context/Sampling: A nonstatistical sample of four months participants out of 12 were selected for testing. Repeat Finding from Prior Years: Yes, prior year finding 2021-003. Recommendation: We recommend management revise their internal controls to make sure the forms submitted are reviewed by the Organization prior to submission. Views of Responsible Officials: Management agrees with the finding.
Department of Housing and Urban Development, Passed through Hearth Connections, Continuum of Care, Federal Financial Assistance Listing/CFDA # 14.267 Special Tests and Provisions Material Weakness in Internal Controls Over Compliance Grant Award Number: Affects all grant awards included under Federal Financial Assistance Listing/ CFDA 14.267 on the Schedule. Criteria: When grant funds are used by the Organization to pay for rent, the Organization must ensure that the rents do not exceed rents currently being charged by the same owner for comparable unassisted units and the portion of grant funds may not exceed HUD-determined fair market rents. These calculations should be reviewed prior to the rent being paid. Condition: During our testing, we identified five instances where the participant?s file did not have documentation that the rent reasonableness test was performed in a timely manner. In addition, we identified 19 instances where the participant?s file did not have documentation that the rent reasonableness test was reviewed. Cause: The Organization?s controls did not operate as designed, which resulted in rent reasonableness tests not being performed timely and/or reviewed before the rent being paid. Effect: Inadequate internal controls over compliance could result in noncompliance with the federal program. Questioned Costs: N/A Context/Sampling: A nonstatistical sample of 34 participants out of 170 were selected for testing. Repeat Finding from Prior Years: Yes, prior year finding 2021-002. Recommendation: We recommend management revise their internal controls to make sure that rent reasonableness tests are performed and reviewed by the appropriate personnel prior to the rent being paid. Views of Responsible Officials: Management agrees with the finding.
Department of Housing and Urban Development, Passed through Hearth Connections, Continuum of Care, Federal Financial Assistance Listing/CFDA # 14.267 Period of Performance Significant Deficiency in Internal Controls Over Compliance Grant Award Number: Affects all grant awards included under Federal Financial Assistance Listing/ CFDA 14.267 on the Schedule. Criteria: Internal controls should be designed and operating to ensure that documentation that is maintained by the Organization that supports the reimbursement amount received from the passthrough entity for supportive services. Condition: During our testing, we identified three months in which the reimbursement amount received from the pass-through entity was more than the Organization?s documentation. In addition, there was no indication that a review was performed of the information submitted for one of the four months tested. Cause: The Organization?s controls did not operate as designed, which resulted in the reimbursement amount from the pass-through entity being more than the support maintained by the Organization for three of the 12 months and no documentation of the review for one of the months. Effect: Inadequate internal controls over compliance could result in noncompliance with the federal program. Questioned Costs: N/A Context/Sampling: A nonstatistical sample of four months participants out of 12 were selected for testing. Repeat Finding from Prior Years: Yes, prior year finding 2021-003. Recommendation: We recommend management revise their internal controls to make sure the forms submitted are reviewed by the Organization prior to submission. Views of Responsible Officials: Management agrees with the finding.
Department of Housing and Urban Development, Passed through Hearth Connections, Continuum of Care, Federal Financial Assistance Listing/CFDA # 14.267 Special Tests and Provisions Material Weakness in Internal Controls Over Compliance Grant Award Number: Affects all grant awards included under Federal Financial Assistance Listing/ CFDA 14.267 on the Schedule. Criteria: When grant funds are used by the Organization to pay for rent, the Organization must ensure that the rents do not exceed rents currently being charged by the same owner for comparable unassisted units and the portion of grant funds may not exceed HUD-determined fair market rents. These calculations should be reviewed prior to the rent being paid. Condition: During our testing, we identified five instances where the participant?s file did not have documentation that the rent reasonableness test was performed in a timely manner. In addition, we identified 19 instances where the participant?s file did not have documentation that the rent reasonableness test was reviewed. Cause: The Organization?s controls did not operate as designed, which resulted in rent reasonableness tests not being performed timely and/or reviewed before the rent being paid. Effect: Inadequate internal controls over compliance could result in noncompliance with the federal program. Questioned Costs: N/A Context/Sampling: A nonstatistical sample of 34 participants out of 170 were selected for testing. Repeat Finding from Prior Years: Yes, prior year finding 2021-002. Recommendation: We recommend management revise their internal controls to make sure that rent reasonableness tests are performed and reviewed by the appropriate personnel prior to the rent being paid. Views of Responsible Officials: Management agrees with the finding.
Department of Housing and Urban Development, Passed through Hearth Connections, Continuum of Care, Federal Financial Assistance Listing/CFDA # 14.267 Period of Performance Significant Deficiency in Internal Controls Over Compliance Grant Award Number: Affects all grant awards included under Federal Financial Assistance Listing/ CFDA 14.267 on the Schedule. Criteria: Internal controls should be designed and operating to ensure that documentation that is maintained by the Organization that supports the reimbursement amount received from the passthrough entity for supportive services. Condition: During our testing, we identified three months in which the reimbursement amount received from the pass-through entity was more than the Organization?s documentation. In addition, there was no indication that a review was performed of the information submitted for one of the four months tested. Cause: The Organization?s controls did not operate as designed, which resulted in the reimbursement amount from the pass-through entity being more than the support maintained by the Organization for three of the 12 months and no documentation of the review for one of the months. Effect: Inadequate internal controls over compliance could result in noncompliance with the federal program. Questioned Costs: N/A Context/Sampling: A nonstatistical sample of four months participants out of 12 were selected for testing. Repeat Finding from Prior Years: Yes, prior year finding 2021-003. Recommendation: We recommend management revise their internal controls to make sure the forms submitted are reviewed by the Organization prior to submission. Views of Responsible Officials: Management agrees with the finding.
Department of Housing and Urban Development, Passed through Hearth Connections, Continuum of Care, Federal Financial Assistance Listing/CFDA # 14.267 Period of Performance Significant Deficiency in Internal Controls Over Compliance Grant Award Number: Affects all grant awards included under Federal Financial Assistance Listing/ CFDA 14.267 on the Schedule. Criteria: Internal controls should be designed and operating to ensure that documentation that is maintained by the Organization that supports the reimbursement amount received from the passthrough entity for supportive services. Condition: During our testing, we identified three months in which the reimbursement amount received from the pass-through entity was more than the Organization?s documentation. In addition, there was no indication that a review was performed of the information submitted for one of the four months tested. Cause: The Organization?s controls did not operate as designed, which resulted in the reimbursement amount from the pass-through entity being more than the support maintained by the Organization for three of the 12 months and no documentation of the review for one of the months. Effect: Inadequate internal controls over compliance could result in noncompliance with the federal program. Questioned Costs: N/A Context/Sampling: A nonstatistical sample of four months participants out of 12 were selected for testing. Repeat Finding from Prior Years: Yes, prior year finding 2021-003. Recommendation: We recommend management revise their internal controls to make sure the forms submitted are reviewed by the Organization prior to submission. Views of Responsible Officials: Management agrees with the finding.
Department of Housing and Urban Development, Passed through Hearth Connections, Continuum of Care, Federal Financial Assistance Listing/CFDA # 14.267 Special Tests and Provisions Material Weakness in Internal Controls Over Compliance Grant Award Number: Affects all grant awards included under Federal Financial Assistance Listing/ CFDA 14.267 on the Schedule. Criteria: When grant funds are used by the Organization to pay for rent, the Organization must ensure that the rents do not exceed rents currently being charged by the same owner for comparable unassisted units and the portion of grant funds may not exceed HUD-determined fair market rents. These calculations should be reviewed prior to the rent being paid. Condition: During our testing, we identified five instances where the participant?s file did not have documentation that the rent reasonableness test was performed in a timely manner. In addition, we identified 19 instances where the participant?s file did not have documentation that the rent reasonableness test was reviewed. Cause: The Organization?s controls did not operate as designed, which resulted in rent reasonableness tests not being performed timely and/or reviewed before the rent being paid. Effect: Inadequate internal controls over compliance could result in noncompliance with the federal program. Questioned Costs: N/A Context/Sampling: A nonstatistical sample of 34 participants out of 170 were selected for testing. Repeat Finding from Prior Years: Yes, prior year finding 2021-002. Recommendation: We recommend management revise their internal controls to make sure that rent reasonableness tests are performed and reviewed by the appropriate personnel prior to the rent being paid. Views of Responsible Officials: Management agrees with the finding.
Department of Housing and Urban Development, Passed through Hearth Connections, Continuum of Care, Federal Financial Assistance Listing/CFDA # 14.267 Special Tests and Provisions Material Weakness in Internal Controls Over Compliance Grant Award Number: Affects all grant awards included under Federal Financial Assistance Listing/ CFDA 14.267 on the Schedule. Criteria: When grant funds are used by the Organization to pay for rent, the Organization must ensure that the rents do not exceed rents currently being charged by the same owner for comparable unassisted units and the portion of grant funds may not exceed HUD-determined fair market rents. These calculations should be reviewed prior to the rent being paid. Condition: During our testing, we identified five instances where the participant?s file did not have documentation that the rent reasonableness test was performed in a timely manner. In addition, we identified 19 instances where the participant?s file did not have documentation that the rent reasonableness test was reviewed. Cause: The Organization?s controls did not operate as designed, which resulted in rent reasonableness tests not being performed timely and/or reviewed before the rent being paid. Effect: Inadequate internal controls over compliance could result in noncompliance with the federal program. Questioned Costs: N/A Context/Sampling: A nonstatistical sample of 34 participants out of 170 were selected for testing. Repeat Finding from Prior Years: Yes, prior year finding 2021-002. Recommendation: We recommend management revise their internal controls to make sure that rent reasonableness tests are performed and reviewed by the appropriate personnel prior to the rent being paid. Views of Responsible Officials: Management agrees with the finding.
Department of Housing and Urban Development, Passed through Hearth Connections, Continuum of Care, Federal Financial Assistance Listing/CFDA # 14.267 Period of Performance Significant Deficiency in Internal Controls Over Compliance Grant Award Number: Affects all grant awards included under Federal Financial Assistance Listing/ CFDA 14.267 on the Schedule. Criteria: Internal controls should be designed and operating to ensure that documentation that is maintained by the Organization that supports the reimbursement amount received from the passthrough entity for supportive services. Condition: During our testing, we identified three months in which the reimbursement amount received from the pass-through entity was more than the Organization?s documentation. In addition, there was no indication that a review was performed of the information submitted for one of the four months tested. Cause: The Organization?s controls did not operate as designed, which resulted in the reimbursement amount from the pass-through entity being more than the support maintained by the Organization for three of the 12 months and no documentation of the review for one of the months. Effect: Inadequate internal controls over compliance could result in noncompliance with the federal program. Questioned Costs: N/A Context/Sampling: A nonstatistical sample of four months participants out of 12 were selected for testing. Repeat Finding from Prior Years: Yes, prior year finding 2021-003. Recommendation: We recommend management revise their internal controls to make sure the forms submitted are reviewed by the Organization prior to submission. Views of Responsible Officials: Management agrees with the finding.
Department of Housing and Urban Development, Passed through Hearth Connections, Continuum of Care, Federal Financial Assistance Listing/CFDA # 14.267 Special Tests and Provisions Material Weakness in Internal Controls Over Compliance Grant Award Number: Affects all grant awards included under Federal Financial Assistance Listing/ CFDA 14.267 on the Schedule. Criteria: When grant funds are used by the Organization to pay for rent, the Organization must ensure that the rents do not exceed rents currently being charged by the same owner for comparable unassisted units and the portion of grant funds may not exceed HUD-determined fair market rents. These calculations should be reviewed prior to the rent being paid. Condition: During our testing, we identified five instances where the participant?s file did not have documentation that the rent reasonableness test was performed in a timely manner. In addition, we identified 19 instances where the participant?s file did not have documentation that the rent reasonableness test was reviewed. Cause: The Organization?s controls did not operate as designed, which resulted in rent reasonableness tests not being performed timely and/or reviewed before the rent being paid. Effect: Inadequate internal controls over compliance could result in noncompliance with the federal program. Questioned Costs: N/A Context/Sampling: A nonstatistical sample of 34 participants out of 170 were selected for testing. Repeat Finding from Prior Years: Yes, prior year finding 2021-002. Recommendation: We recommend management revise their internal controls to make sure that rent reasonableness tests are performed and reviewed by the appropriate personnel prior to the rent being paid. Views of Responsible Officials: Management agrees with the finding.
Department of Housing and Urban Development, Passed through Hearth Connections, Continuum of Care, Federal Financial Assistance Listing/CFDA # 14.267 Period of Performance Significant Deficiency in Internal Controls Over Compliance Grant Award Number: Affects all grant awards included under Federal Financial Assistance Listing/ CFDA 14.267 on the Schedule. Criteria: Internal controls should be designed and operating to ensure that documentation that is maintained by the Organization that supports the reimbursement amount received from the passthrough entity for supportive services. Condition: During our testing, we identified three months in which the reimbursement amount received from the pass-through entity was more than the Organization?s documentation. In addition, there was no indication that a review was performed of the information submitted for one of the four months tested. Cause: The Organization?s controls did not operate as designed, which resulted in the reimbursement amount from the pass-through entity being more than the support maintained by the Organization for three of the 12 months and no documentation of the review for one of the months. Effect: Inadequate internal controls over compliance could result in noncompliance with the federal program. Questioned Costs: N/A Context/Sampling: A nonstatistical sample of four months participants out of 12 were selected for testing. Repeat Finding from Prior Years: Yes, prior year finding 2021-003. Recommendation: We recommend management revise their internal controls to make sure the forms submitted are reviewed by the Organization prior to submission. Views of Responsible Officials: Management agrees with the finding.
Department of Housing and Urban Development, Passed through Hearth Connections, Continuum of Care, Federal Financial Assistance Listing/CFDA # 14.267 Period of Performance Significant Deficiency in Internal Controls Over Compliance Grant Award Number: Affects all grant awards included under Federal Financial Assistance Listing/ CFDA 14.267 on the Schedule. Criteria: Internal controls should be designed and operating to ensure that documentation that is maintained by the Organization that supports the reimbursement amount received from the passthrough entity for supportive services. Condition: During our testing, we identified three months in which the reimbursement amount received from the pass-through entity was more than the Organization?s documentation. In addition, there was no indication that a review was performed of the information submitted for one of the four months tested. Cause: The Organization?s controls did not operate as designed, which resulted in the reimbursement amount from the pass-through entity being more than the support maintained by the Organization for three of the 12 months and no documentation of the review for one of the months. Effect: Inadequate internal controls over compliance could result in noncompliance with the federal program. Questioned Costs: N/A Context/Sampling: A nonstatistical sample of four months participants out of 12 were selected for testing. Repeat Finding from Prior Years: Yes, prior year finding 2021-003. Recommendation: We recommend management revise their internal controls to make sure the forms submitted are reviewed by the Organization prior to submission. Views of Responsible Officials: Management agrees with the finding.
Department of Housing and Urban Development, Passed through Hearth Connections, Continuum of Care, Federal Financial Assistance Listing/CFDA # 14.267 Special Tests and Provisions Material Weakness in Internal Controls Over Compliance Grant Award Number: Affects all grant awards included under Federal Financial Assistance Listing/ CFDA 14.267 on the Schedule. Criteria: When grant funds are used by the Organization to pay for rent, the Organization must ensure that the rents do not exceed rents currently being charged by the same owner for comparable unassisted units and the portion of grant funds may not exceed HUD-determined fair market rents. These calculations should be reviewed prior to the rent being paid. Condition: During our testing, we identified five instances where the participant?s file did not have documentation that the rent reasonableness test was performed in a timely manner. In addition, we identified 19 instances where the participant?s file did not have documentation that the rent reasonableness test was reviewed. Cause: The Organization?s controls did not operate as designed, which resulted in rent reasonableness tests not being performed timely and/or reviewed before the rent being paid. Effect: Inadequate internal controls over compliance could result in noncompliance with the federal program. Questioned Costs: N/A Context/Sampling: A nonstatistical sample of 34 participants out of 170 were selected for testing. Repeat Finding from Prior Years: Yes, prior year finding 2021-002. Recommendation: We recommend management revise their internal controls to make sure that rent reasonableness tests are performed and reviewed by the appropriate personnel prior to the rent being paid. Views of Responsible Officials: Management agrees with the finding.
Department of Housing and Urban Development, Passed through Hearth Connections, Continuum of Care, Federal Financial Assistance Listing/CFDA # 14.267 Special Tests and Provisions Material Weakness in Internal Controls Over Compliance Grant Award Number: Affects all grant awards included under Federal Financial Assistance Listing/ CFDA 14.267 on the Schedule. Criteria: When grant funds are used by the Organization to pay for rent, the Organization must ensure that the rents do not exceed rents currently being charged by the same owner for comparable unassisted units and the portion of grant funds may not exceed HUD-determined fair market rents. These calculations should be reviewed prior to the rent being paid. Condition: During our testing, we identified five instances where the participant?s file did not have documentation that the rent reasonableness test was performed in a timely manner. In addition, we identified 19 instances where the participant?s file did not have documentation that the rent reasonableness test was reviewed. Cause: The Organization?s controls did not operate as designed, which resulted in rent reasonableness tests not being performed timely and/or reviewed before the rent being paid. Effect: Inadequate internal controls over compliance could result in noncompliance with the federal program. Questioned Costs: N/A Context/Sampling: A nonstatistical sample of 34 participants out of 170 were selected for testing. Repeat Finding from Prior Years: Yes, prior year finding 2021-002. Recommendation: We recommend management revise their internal controls to make sure that rent reasonableness tests are performed and reviewed by the appropriate personnel prior to the rent being paid. Views of Responsible Officials: Management agrees with the finding.
Department of Housing and Urban Development, Passed through Hearth Connections, Continuum of Care, Federal Financial Assistance Listing/CFDA # 14.267 Period of Performance Significant Deficiency in Internal Controls Over Compliance Grant Award Number: Affects all grant awards included under Federal Financial Assistance Listing/ CFDA 14.267 on the Schedule. Criteria: Internal controls should be designed and operating to ensure that documentation that is maintained by the Organization that supports the reimbursement amount received from the passthrough entity for supportive services. Condition: During our testing, we identified three months in which the reimbursement amount received from the pass-through entity was more than the Organization?s documentation. In addition, there was no indication that a review was performed of the information submitted for one of the four months tested. Cause: The Organization?s controls did not operate as designed, which resulted in the reimbursement amount from the pass-through entity being more than the support maintained by the Organization for three of the 12 months and no documentation of the review for one of the months. Effect: Inadequate internal controls over compliance could result in noncompliance with the federal program. Questioned Costs: N/A Context/Sampling: A nonstatistical sample of four months participants out of 12 were selected for testing. Repeat Finding from Prior Years: Yes, prior year finding 2021-003. Recommendation: We recommend management revise their internal controls to make sure the forms submitted are reviewed by the Organization prior to submission. Views of Responsible Officials: Management agrees with the finding.
Department of Housing and Urban Development, Passed through Hearth Connections, Continuum of Care, Federal Financial Assistance Listing/CFDA # 14.267 Special Tests and Provisions Material Weakness in Internal Controls Over Compliance Grant Award Number: Affects all grant awards included under Federal Financial Assistance Listing/ CFDA 14.267 on the Schedule. Criteria: When grant funds are used by the Organization to pay for rent, the Organization must ensure that the rents do not exceed rents currently being charged by the same owner for comparable unassisted units and the portion of grant funds may not exceed HUD-determined fair market rents. These calculations should be reviewed prior to the rent being paid. Condition: During our testing, we identified five instances where the participant?s file did not have documentation that the rent reasonableness test was performed in a timely manner. In addition, we identified 19 instances where the participant?s file did not have documentation that the rent reasonableness test was reviewed. Cause: The Organization?s controls did not operate as designed, which resulted in rent reasonableness tests not being performed timely and/or reviewed before the rent being paid. Effect: Inadequate internal controls over compliance could result in noncompliance with the federal program. Questioned Costs: N/A Context/Sampling: A nonstatistical sample of 34 participants out of 170 were selected for testing. Repeat Finding from Prior Years: Yes, prior year finding 2021-002. Recommendation: We recommend management revise their internal controls to make sure that rent reasonableness tests are performed and reviewed by the appropriate personnel prior to the rent being paid. Views of Responsible Officials: Management agrees with the finding.
Department of Housing and Urban Development, Passed through Hearth Connections, Continuum of Care, Federal Financial Assistance Listing/CFDA # 14.267 Period of Performance Significant Deficiency in Internal Controls Over Compliance Grant Award Number: Affects all grant awards included under Federal Financial Assistance Listing/ CFDA 14.267 on the Schedule. Criteria: Internal controls should be designed and operating to ensure that documentation that is maintained by the Organization that supports the reimbursement amount received from the passthrough entity for supportive services. Condition: During our testing, we identified three months in which the reimbursement amount received from the pass-through entity was more than the Organization?s documentation. In addition, there was no indication that a review was performed of the information submitted for one of the four months tested. Cause: The Organization?s controls did not operate as designed, which resulted in the reimbursement amount from the pass-through entity being more than the support maintained by the Organization for three of the 12 months and no documentation of the review for one of the months. Effect: Inadequate internal controls over compliance could result in noncompliance with the federal program. Questioned Costs: N/A Context/Sampling: A nonstatistical sample of four months participants out of 12 were selected for testing. Repeat Finding from Prior Years: Yes, prior year finding 2021-003. Recommendation: We recommend management revise their internal controls to make sure the forms submitted are reviewed by the Organization prior to submission. Views of Responsible Officials: Management agrees with the finding.
Department of Housing and Urban Development, Passed through Hearth Connections, Continuum of Care, Federal Financial Assistance Listing/CFDA # 14.267 Period of Performance Significant Deficiency in Internal Controls Over Compliance Grant Award Number: Affects all grant awards included under Federal Financial Assistance Listing/ CFDA 14.267 on the Schedule. Criteria: Internal controls should be designed and operating to ensure that documentation that is maintained by the Organization that supports the reimbursement amount received from the passthrough entity for supportive services. Condition: During our testing, we identified three months in which the reimbursement amount received from the pass-through entity was more than the Organization?s documentation. In addition, there was no indication that a review was performed of the information submitted for one of the four months tested. Cause: The Organization?s controls did not operate as designed, which resulted in the reimbursement amount from the pass-through entity being more than the support maintained by the Organization for three of the 12 months and no documentation of the review for one of the months. Effect: Inadequate internal controls over compliance could result in noncompliance with the federal program. Questioned Costs: N/A Context/Sampling: A nonstatistical sample of four months participants out of 12 were selected for testing. Repeat Finding from Prior Years: Yes, prior year finding 2021-003. Recommendation: We recommend management revise their internal controls to make sure the forms submitted are reviewed by the Organization prior to submission. Views of Responsible Officials: Management agrees with the finding.
Department of Housing and Urban Development, Passed through Hearth Connections, Continuum of Care, Federal Financial Assistance Listing/CFDA # 14.267 Special Tests and Provisions Material Weakness in Internal Controls Over Compliance Grant Award Number: Affects all grant awards included under Federal Financial Assistance Listing/ CFDA 14.267 on the Schedule. Criteria: When grant funds are used by the Organization to pay for rent, the Organization must ensure that the rents do not exceed rents currently being charged by the same owner for comparable unassisted units and the portion of grant funds may not exceed HUD-determined fair market rents. These calculations should be reviewed prior to the rent being paid. Condition: During our testing, we identified five instances where the participant?s file did not have documentation that the rent reasonableness test was performed in a timely manner. In addition, we identified 19 instances where the participant?s file did not have documentation that the rent reasonableness test was reviewed. Cause: The Organization?s controls did not operate as designed, which resulted in rent reasonableness tests not being performed timely and/or reviewed before the rent being paid. Effect: Inadequate internal controls over compliance could result in noncompliance with the federal program. Questioned Costs: N/A Context/Sampling: A nonstatistical sample of 34 participants out of 170 were selected for testing. Repeat Finding from Prior Years: Yes, prior year finding 2021-002. Recommendation: We recommend management revise their internal controls to make sure that rent reasonableness tests are performed and reviewed by the appropriate personnel prior to the rent being paid. Views of Responsible Officials: Management agrees with the finding.
Department of Housing and Urban Development, Passed through Hearth Connections, Continuum of Care, Federal Financial Assistance Listing/CFDA # 14.267 Period of Performance Significant Deficiency in Internal Controls Over Compliance Grant Award Number: Affects all grant awards included under Federal Financial Assistance Listing/ CFDA 14.267 on the Schedule. Criteria: Internal controls should be designed and operating to ensure that documentation that is maintained by the Organization that supports the reimbursement amount received from the passthrough entity for supportive services. Condition: During our testing, we identified three months in which the reimbursement amount received from the pass-through entity was more than the Organization?s documentation. In addition, there was no indication that a review was performed of the information submitted for one of the four months tested. Cause: The Organization?s controls did not operate as designed, which resulted in the reimbursement amount from the pass-through entity being more than the support maintained by the Organization for three of the 12 months and no documentation of the review for one of the months. Effect: Inadequate internal controls over compliance could result in noncompliance with the federal program. Questioned Costs: N/A Context/Sampling: A nonstatistical sample of four months participants out of 12 were selected for testing. Repeat Finding from Prior Years: Yes, prior year finding 2021-003. Recommendation: We recommend management revise their internal controls to make sure the forms submitted are reviewed by the Organization prior to submission. Views of Responsible Officials: Management agrees with the finding.
Department of Housing and Urban Development, Passed through Hearth Connections, Continuum of Care, Federal Financial Assistance Listing/CFDA # 14.267 Special Tests and Provisions Material Weakness in Internal Controls Over Compliance Grant Award Number: Affects all grant awards included under Federal Financial Assistance Listing/ CFDA 14.267 on the Schedule. Criteria: When grant funds are used by the Organization to pay for rent, the Organization must ensure that the rents do not exceed rents currently being charged by the same owner for comparable unassisted units and the portion of grant funds may not exceed HUD-determined fair market rents. These calculations should be reviewed prior to the rent being paid. Condition: During our testing, we identified five instances where the participant?s file did not have documentation that the rent reasonableness test was performed in a timely manner. In addition, we identified 19 instances where the participant?s file did not have documentation that the rent reasonableness test was reviewed. Cause: The Organization?s controls did not operate as designed, which resulted in rent reasonableness tests not being performed timely and/or reviewed before the rent being paid. Effect: Inadequate internal controls over compliance could result in noncompliance with the federal program. Questioned Costs: N/A Context/Sampling: A nonstatistical sample of 34 participants out of 170 were selected for testing. Repeat Finding from Prior Years: Yes, prior year finding 2021-002. Recommendation: We recommend management revise their internal controls to make sure that rent reasonableness tests are performed and reviewed by the appropriate personnel prior to the rent being paid. Views of Responsible Officials: Management agrees with the finding.
Department of Housing and Urban Development, Passed through Hearth Connections, Continuum of Care, Federal Financial Assistance Listing/CFDA # 14.267 Period of Performance Significant Deficiency in Internal Controls Over Compliance Grant Award Number: Affects all grant awards included under Federal Financial Assistance Listing/ CFDA 14.267 on the Schedule. Criteria: Internal controls should be designed and operating to ensure that documentation that is maintained by the Organization that supports the reimbursement amount received from the passthrough entity for supportive services. Condition: During our testing, we identified three months in which the reimbursement amount received from the pass-through entity was more than the Organization?s documentation. In addition, there was no indication that a review was performed of the information submitted for one of the four months tested. Cause: The Organization?s controls did not operate as designed, which resulted in the reimbursement amount from the pass-through entity being more than the support maintained by the Organization for three of the 12 months and no documentation of the review for one of the months. Effect: Inadequate internal controls over compliance could result in noncompliance with the federal program. Questioned Costs: N/A Context/Sampling: A nonstatistical sample of four months participants out of 12 were selected for testing. Repeat Finding from Prior Years: Yes, prior year finding 2021-003. Recommendation: We recommend management revise their internal controls to make sure the forms submitted are reviewed by the Organization prior to submission. Views of Responsible Officials: Management agrees with the finding.
Department of Housing and Urban Development, Passed through Hearth Connections, Continuum of Care, Federal Financial Assistance Listing/CFDA # 14.267 Special Tests and Provisions Material Weakness in Internal Controls Over Compliance Grant Award Number: Affects all grant awards included under Federal Financial Assistance Listing/ CFDA 14.267 on the Schedule. Criteria: When grant funds are used by the Organization to pay for rent, the Organization must ensure that the rents do not exceed rents currently being charged by the same owner for comparable unassisted units and the portion of grant funds may not exceed HUD-determined fair market rents. These calculations should be reviewed prior to the rent being paid. Condition: During our testing, we identified five instances where the participant?s file did not have documentation that the rent reasonableness test was performed in a timely manner. In addition, we identified 19 instances where the participant?s file did not have documentation that the rent reasonableness test was reviewed. Cause: The Organization?s controls did not operate as designed, which resulted in rent reasonableness tests not being performed timely and/or reviewed before the rent being paid. Effect: Inadequate internal controls over compliance could result in noncompliance with the federal program. Questioned Costs: N/A Context/Sampling: A nonstatistical sample of 34 participants out of 170 were selected for testing. Repeat Finding from Prior Years: Yes, prior year finding 2021-002. Recommendation: We recommend management revise their internal controls to make sure that rent reasonableness tests are performed and reviewed by the appropriate personnel prior to the rent being paid. Views of Responsible Officials: Management agrees with the finding.
Department of Housing and Urban Development, Passed through Hearth Connections, Continuum of Care, Federal Financial Assistance Listing/CFDA # 14.267 Special Tests and Provisions Material Weakness in Internal Controls Over Compliance Grant Award Number: Affects all grant awards included under Federal Financial Assistance Listing/ CFDA 14.267 on the Schedule. Criteria: When grant funds are used by the Organization to pay for rent, the Organization must ensure that the rents do not exceed rents currently being charged by the same owner for comparable unassisted units and the portion of grant funds may not exceed HUD-determined fair market rents. These calculations should be reviewed prior to the rent being paid. Condition: During our testing, we identified five instances where the participant?s file did not have documentation that the rent reasonableness test was performed in a timely manner. In addition, we identified 19 instances where the participant?s file did not have documentation that the rent reasonableness test was reviewed. Cause: The Organization?s controls did not operate as designed, which resulted in rent reasonableness tests not being performed timely and/or reviewed before the rent being paid. Effect: Inadequate internal controls over compliance could result in noncompliance with the federal program. Questioned Costs: N/A Context/Sampling: A nonstatistical sample of 34 participants out of 170 were selected for testing. Repeat Finding from Prior Years: Yes, prior year finding 2021-002. Recommendation: We recommend management revise their internal controls to make sure that rent reasonableness tests are performed and reviewed by the appropriate personnel prior to the rent being paid. Views of Responsible Officials: Management agrees with the finding.
Department of Housing and Urban Development, Passed through Hearth Connections, Continuum of Care, Federal Financial Assistance Listing/CFDA # 14.267 Period of Performance Significant Deficiency in Internal Controls Over Compliance Grant Award Number: Affects all grant awards included under Federal Financial Assistance Listing/ CFDA 14.267 on the Schedule. Criteria: Internal controls should be designed and operating to ensure that documentation that is maintained by the Organization that supports the reimbursement amount received from the passthrough entity for supportive services. Condition: During our testing, we identified three months in which the reimbursement amount received from the pass-through entity was more than the Organization?s documentation. In addition, there was no indication that a review was performed of the information submitted for one of the four months tested. Cause: The Organization?s controls did not operate as designed, which resulted in the reimbursement amount from the pass-through entity being more than the support maintained by the Organization for three of the 12 months and no documentation of the review for one of the months. Effect: Inadequate internal controls over compliance could result in noncompliance with the federal program. Questioned Costs: N/A Context/Sampling: A nonstatistical sample of four months participants out of 12 were selected for testing. Repeat Finding from Prior Years: Yes, prior year finding 2021-003. Recommendation: We recommend management revise their internal controls to make sure the forms submitted are reviewed by the Organization prior to submission. Views of Responsible Officials: Management agrees with the finding.
Department of Housing and Urban Development, Passed through Hearth Connections, Continuum of Care, Federal Financial Assistance Listing/CFDA # 14.267 Special Tests and Provisions Material Weakness in Internal Controls Over Compliance Grant Award Number: Affects all grant awards included under Federal Financial Assistance Listing/ CFDA 14.267 on the Schedule. Criteria: When grant funds are used by the Organization to pay for rent, the Organization must ensure that the rents do not exceed rents currently being charged by the same owner for comparable unassisted units and the portion of grant funds may not exceed HUD-determined fair market rents. These calculations should be reviewed prior to the rent being paid. Condition: During our testing, we identified five instances where the participant?s file did not have documentation that the rent reasonableness test was performed in a timely manner. In addition, we identified 19 instances where the participant?s file did not have documentation that the rent reasonableness test was reviewed. Cause: The Organization?s controls did not operate as designed, which resulted in rent reasonableness tests not being performed timely and/or reviewed before the rent being paid. Effect: Inadequate internal controls over compliance could result in noncompliance with the federal program. Questioned Costs: N/A Context/Sampling: A nonstatistical sample of 34 participants out of 170 were selected for testing. Repeat Finding from Prior Years: Yes, prior year finding 2021-002. Recommendation: We recommend management revise their internal controls to make sure that rent reasonableness tests are performed and reviewed by the appropriate personnel prior to the rent being paid. Views of Responsible Officials: Management agrees with the finding.
Department of Housing and Urban Development, Passed through Hearth Connections, Continuum of Care, Federal Financial Assistance Listing/CFDA # 14.267 Period of Performance Significant Deficiency in Internal Controls Over Compliance Grant Award Number: Affects all grant awards included under Federal Financial Assistance Listing/ CFDA 14.267 on the Schedule. Criteria: Internal controls should be designed and operating to ensure that documentation that is maintained by the Organization that supports the reimbursement amount received from the passthrough entity for supportive services. Condition: During our testing, we identified three months in which the reimbursement amount received from the pass-through entity was more than the Organization?s documentation. In addition, there was no indication that a review was performed of the information submitted for one of the four months tested. Cause: The Organization?s controls did not operate as designed, which resulted in the reimbursement amount from the pass-through entity being more than the support maintained by the Organization for three of the 12 months and no documentation of the review for one of the months. Effect: Inadequate internal controls over compliance could result in noncompliance with the federal program. Questioned Costs: N/A Context/Sampling: A nonstatistical sample of four months participants out of 12 were selected for testing. Repeat Finding from Prior Years: Yes, prior year finding 2021-003. Recommendation: We recommend management revise their internal controls to make sure the forms submitted are reviewed by the Organization prior to submission. Views of Responsible Officials: Management agrees with the finding.
Department of Housing and Urban Development, Passed through Hearth Connections, Continuum of Care, Federal Financial Assistance Listing/CFDA # 14.267 Period of Performance Significant Deficiency in Internal Controls Over Compliance Grant Award Number: Affects all grant awards included under Federal Financial Assistance Listing/ CFDA 14.267 on the Schedule. Criteria: Internal controls should be designed and operating to ensure that documentation that is maintained by the Organization that supports the reimbursement amount received from the passthrough entity for supportive services. Condition: During our testing, we identified three months in which the reimbursement amount received from the pass-through entity was more than the Organization?s documentation. In addition, there was no indication that a review was performed of the information submitted for one of the four months tested. Cause: The Organization?s controls did not operate as designed, which resulted in the reimbursement amount from the pass-through entity being more than the support maintained by the Organization for three of the 12 months and no documentation of the review for one of the months. Effect: Inadequate internal controls over compliance could result in noncompliance with the federal program. Questioned Costs: N/A Context/Sampling: A nonstatistical sample of four months participants out of 12 were selected for testing. Repeat Finding from Prior Years: Yes, prior year finding 2021-003. Recommendation: We recommend management revise their internal controls to make sure the forms submitted are reviewed by the Organization prior to submission. Views of Responsible Officials: Management agrees with the finding.
Department of Housing and Urban Development, Passed through Hearth Connections, Continuum of Care, Federal Financial Assistance Listing/CFDA # 14.267 Special Tests and Provisions Material Weakness in Internal Controls Over Compliance Grant Award Number: Affects all grant awards included under Federal Financial Assistance Listing/ CFDA 14.267 on the Schedule. Criteria: When grant funds are used by the Organization to pay for rent, the Organization must ensure that the rents do not exceed rents currently being charged by the same owner for comparable unassisted units and the portion of grant funds may not exceed HUD-determined fair market rents. These calculations should be reviewed prior to the rent being paid. Condition: During our testing, we identified five instances where the participant?s file did not have documentation that the rent reasonableness test was performed in a timely manner. In addition, we identified 19 instances where the participant?s file did not have documentation that the rent reasonableness test was reviewed. Cause: The Organization?s controls did not operate as designed, which resulted in rent reasonableness tests not being performed timely and/or reviewed before the rent being paid. Effect: Inadequate internal controls over compliance could result in noncompliance with the federal program. Questioned Costs: N/A Context/Sampling: A nonstatistical sample of 34 participants out of 170 were selected for testing. Repeat Finding from Prior Years: Yes, prior year finding 2021-002. Recommendation: We recommend management revise their internal controls to make sure that rent reasonableness tests are performed and reviewed by the appropriate personnel prior to the rent being paid. Views of Responsible Officials: Management agrees with the finding.
Department of Housing and Urban Development, Passed through Hearth Connections, Continuum of Care, Federal Financial Assistance Listing/CFDA # 14.267 Special Tests and Provisions Material Weakness in Internal Controls Over Compliance Grant Award Number: Affects all grant awards included under Federal Financial Assistance Listing/ CFDA 14.267 on the Schedule. Criteria: When grant funds are used by the Organization to pay for rent, the Organization must ensure that the rents do not exceed rents currently being charged by the same owner for comparable unassisted units and the portion of grant funds may not exceed HUD-determined fair market rents. These calculations should be reviewed prior to the rent being paid. Condition: During our testing, we identified five instances where the participant?s file did not have documentation that the rent reasonableness test was performed in a timely manner. In addition, we identified 19 instances where the participant?s file did not have documentation that the rent reasonableness test was reviewed. Cause: The Organization?s controls did not operate as designed, which resulted in rent reasonableness tests not being performed timely and/or reviewed before the rent being paid. Effect: Inadequate internal controls over compliance could result in noncompliance with the federal program. Questioned Costs: N/A Context/Sampling: A nonstatistical sample of 34 participants out of 170 were selected for testing. Repeat Finding from Prior Years: Yes, prior year finding 2021-002. Recommendation: We recommend management revise their internal controls to make sure that rent reasonableness tests are performed and reviewed by the appropriate personnel prior to the rent being paid. Views of Responsible Officials: Management agrees with the finding.
Department of Housing and Urban Development, Passed through Hearth Connections, Continuum of Care, Federal Financial Assistance Listing/CFDA # 14.267 Period of Performance Significant Deficiency in Internal Controls Over Compliance Grant Award Number: Affects all grant awards included under Federal Financial Assistance Listing/ CFDA 14.267 on the Schedule. Criteria: Internal controls should be designed and operating to ensure that documentation that is maintained by the Organization that supports the reimbursement amount received from the passthrough entity for supportive services. Condition: During our testing, we identified three months in which the reimbursement amount received from the pass-through entity was more than the Organization?s documentation. In addition, there was no indication that a review was performed of the information submitted for one of the four months tested. Cause: The Organization?s controls did not operate as designed, which resulted in the reimbursement amount from the pass-through entity being more than the support maintained by the Organization for three of the 12 months and no documentation of the review for one of the months. Effect: Inadequate internal controls over compliance could result in noncompliance with the federal program. Questioned Costs: N/A Context/Sampling: A nonstatistical sample of four months participants out of 12 were selected for testing. Repeat Finding from Prior Years: Yes, prior year finding 2021-003. Recommendation: We recommend management revise their internal controls to make sure the forms submitted are reviewed by the Organization prior to submission. Views of Responsible Officials: Management agrees with the finding.
Department of Housing and Urban Development, Passed through Hearth Connections, Continuum of Care, Federal Financial Assistance Listing/CFDA # 14.267 Special Tests and Provisions Material Weakness in Internal Controls Over Compliance Grant Award Number: Affects all grant awards included under Federal Financial Assistance Listing/ CFDA 14.267 on the Schedule. Criteria: When grant funds are used by the Organization to pay for rent, the Organization must ensure that the rents do not exceed rents currently being charged by the same owner for comparable unassisted units and the portion of grant funds may not exceed HUD-determined fair market rents. These calculations should be reviewed prior to the rent being paid. Condition: During our testing, we identified five instances where the participant?s file did not have documentation that the rent reasonableness test was performed in a timely manner. In addition, we identified 19 instances where the participant?s file did not have documentation that the rent reasonableness test was reviewed. Cause: The Organization?s controls did not operate as designed, which resulted in rent reasonableness tests not being performed timely and/or reviewed before the rent being paid. Effect: Inadequate internal controls over compliance could result in noncompliance with the federal program. Questioned Costs: N/A Context/Sampling: A nonstatistical sample of 34 participants out of 170 were selected for testing. Repeat Finding from Prior Years: Yes, prior year finding 2021-002. Recommendation: We recommend management revise their internal controls to make sure that rent reasonableness tests are performed and reviewed by the appropriate personnel prior to the rent being paid. Views of Responsible Officials: Management agrees with the finding.
Department of Housing and Urban Development, Passed through Hearth Connections, Continuum of Care, Federal Financial Assistance Listing/CFDA # 14.267 Period of Performance Significant Deficiency in Internal Controls Over Compliance Grant Award Number: Affects all grant awards included under Federal Financial Assistance Listing/ CFDA 14.267 on the Schedule. Criteria: Internal controls should be designed and operating to ensure that documentation that is maintained by the Organization that supports the reimbursement amount received from the passthrough entity for supportive services. Condition: During our testing, we identified three months in which the reimbursement amount received from the pass-through entity was more than the Organization?s documentation. In addition, there was no indication that a review was performed of the information submitted for one of the four months tested. Cause: The Organization?s controls did not operate as designed, which resulted in the reimbursement amount from the pass-through entity being more than the support maintained by the Organization for three of the 12 months and no documentation of the review for one of the months. Effect: Inadequate internal controls over compliance could result in noncompliance with the federal program. Questioned Costs: N/A Context/Sampling: A nonstatistical sample of four months participants out of 12 were selected for testing. Repeat Finding from Prior Years: Yes, prior year finding 2021-003. Recommendation: We recommend management revise their internal controls to make sure the forms submitted are reviewed by the Organization prior to submission. Views of Responsible Officials: Management agrees with the finding.
Department of Housing and Urban Development, Passed through Hearth Connections, Continuum of Care, Federal Financial Assistance Listing/CFDA # 14.267 Special Tests and Provisions Material Weakness in Internal Controls Over Compliance Grant Award Number: Affects all grant awards included under Federal Financial Assistance Listing/ CFDA 14.267 on the Schedule. Criteria: When grant funds are used by the Organization to pay for rent, the Organization must ensure that the rents do not exceed rents currently being charged by the same owner for comparable unassisted units and the portion of grant funds may not exceed HUD-determined fair market rents. These calculations should be reviewed prior to the rent being paid. Condition: During our testing, we identified five instances where the participant?s file did not have documentation that the rent reasonableness test was performed in a timely manner. In addition, we identified 19 instances where the participant?s file did not have documentation that the rent reasonableness test was reviewed. Cause: The Organization?s controls did not operate as designed, which resulted in rent reasonableness tests not being performed timely and/or reviewed before the rent being paid. Effect: Inadequate internal controls over compliance could result in noncompliance with the federal program. Questioned Costs: N/A Context/Sampling: A nonstatistical sample of 34 participants out of 170 were selected for testing. Repeat Finding from Prior Years: Yes, prior year finding 2021-002. Recommendation: We recommend management revise their internal controls to make sure that rent reasonableness tests are performed and reviewed by the appropriate personnel prior to the rent being paid. Views of Responsible Officials: Management agrees with the finding.
Department of Housing and Urban Development, Passed through Hearth Connections, Continuum of Care, Federal Financial Assistance Listing/CFDA # 14.267 Period of Performance Significant Deficiency in Internal Controls Over Compliance Grant Award Number: Affects all grant awards included under Federal Financial Assistance Listing/ CFDA 14.267 on the Schedule. Criteria: Internal controls should be designed and operating to ensure that documentation that is maintained by the Organization that supports the reimbursement amount received from the passthrough entity for supportive services. Condition: During our testing, we identified three months in which the reimbursement amount received from the pass-through entity was more than the Organization?s documentation. In addition, there was no indication that a review was performed of the information submitted for one of the four months tested. Cause: The Organization?s controls did not operate as designed, which resulted in the reimbursement amount from the pass-through entity being more than the support maintained by the Organization for three of the 12 months and no documentation of the review for one of the months. Effect: Inadequate internal controls over compliance could result in noncompliance with the federal program. Questioned Costs: N/A Context/Sampling: A nonstatistical sample of four months participants out of 12 were selected for testing. Repeat Finding from Prior Years: Yes, prior year finding 2021-003. Recommendation: We recommend management revise their internal controls to make sure the forms submitted are reviewed by the Organization prior to submission. Views of Responsible Officials: Management agrees with the finding.
Department of Housing and Urban Development, Passed through Hearth Connections, Continuum of Care, Federal Financial Assistance Listing/CFDA # 14.267 Period of Performance Significant Deficiency in Internal Controls Over Compliance Grant Award Number: Affects all grant awards included under Federal Financial Assistance Listing/ CFDA 14.267 on the Schedule. Criteria: Internal controls should be designed and operating to ensure that documentation that is maintained by the Organization that supports the reimbursement amount received from the passthrough entity for supportive services. Condition: During our testing, we identified three months in which the reimbursement amount received from the pass-through entity was more than the Organization?s documentation. In addition, there was no indication that a review was performed of the information submitted for one of the four months tested. Cause: The Organization?s controls did not operate as designed, which resulted in the reimbursement amount from the pass-through entity being more than the support maintained by the Organization for three of the 12 months and no documentation of the review for one of the months. Effect: Inadequate internal controls over compliance could result in noncompliance with the federal program. Questioned Costs: N/A Context/Sampling: A nonstatistical sample of four months participants out of 12 were selected for testing. Repeat Finding from Prior Years: Yes, prior year finding 2021-003. Recommendation: We recommend management revise their internal controls to make sure the forms submitted are reviewed by the Organization prior to submission. Views of Responsible Officials: Management agrees with the finding.
Department of Housing and Urban Development, Passed through Hearth Connections, Continuum of Care, Federal Financial Assistance Listing/CFDA # 14.267 Special Tests and Provisions Material Weakness in Internal Controls Over Compliance Grant Award Number: Affects all grant awards included under Federal Financial Assistance Listing/ CFDA 14.267 on the Schedule. Criteria: When grant funds are used by the Organization to pay for rent, the Organization must ensure that the rents do not exceed rents currently being charged by the same owner for comparable unassisted units and the portion of grant funds may not exceed HUD-determined fair market rents. These calculations should be reviewed prior to the rent being paid. Condition: During our testing, we identified five instances where the participant?s file did not have documentation that the rent reasonableness test was performed in a timely manner. In addition, we identified 19 instances where the participant?s file did not have documentation that the rent reasonableness test was reviewed. Cause: The Organization?s controls did not operate as designed, which resulted in rent reasonableness tests not being performed timely and/or reviewed before the rent being paid. Effect: Inadequate internal controls over compliance could result in noncompliance with the federal program. Questioned Costs: N/A Context/Sampling: A nonstatistical sample of 34 participants out of 170 were selected for testing. Repeat Finding from Prior Years: Yes, prior year finding 2021-002. Recommendation: We recommend management revise their internal controls to make sure that rent reasonableness tests are performed and reviewed by the appropriate personnel prior to the rent being paid. Views of Responsible Officials: Management agrees with the finding.
Department of Housing and Urban Development, Passed through Hearth Connections, Continuum of Care, Federal Financial Assistance Listing/CFDA # 14.267 Special Tests and Provisions Material Weakness in Internal Controls Over Compliance Grant Award Number: Affects all grant awards included under Federal Financial Assistance Listing/ CFDA 14.267 on the Schedule. Criteria: When grant funds are used by the Organization to pay for rent, the Organization must ensure that the rents do not exceed rents currently being charged by the same owner for comparable unassisted units and the portion of grant funds may not exceed HUD-determined fair market rents. These calculations should be reviewed prior to the rent being paid. Condition: During our testing, we identified five instances where the participant?s file did not have documentation that the rent reasonableness test was performed in a timely manner. In addition, we identified 19 instances where the participant?s file did not have documentation that the rent reasonableness test was reviewed. Cause: The Organization?s controls did not operate as designed, which resulted in rent reasonableness tests not being performed timely and/or reviewed before the rent being paid. Effect: Inadequate internal controls over compliance could result in noncompliance with the federal program. Questioned Costs: N/A Context/Sampling: A nonstatistical sample of 34 participants out of 170 were selected for testing. Repeat Finding from Prior Years: Yes, prior year finding 2021-002. Recommendation: We recommend management revise their internal controls to make sure that rent reasonableness tests are performed and reviewed by the appropriate personnel prior to the rent being paid. Views of Responsible Officials: Management agrees with the finding.
Department of Housing and Urban Development, Passed through Hearth Connections, Continuum of Care, Federal Financial Assistance Listing/CFDA # 14.267 Period of Performance Significant Deficiency in Internal Controls Over Compliance Grant Award Number: Affects all grant awards included under Federal Financial Assistance Listing/ CFDA 14.267 on the Schedule. Criteria: Internal controls should be designed and operating to ensure that documentation that is maintained by the Organization that supports the reimbursement amount received from the passthrough entity for supportive services. Condition: During our testing, we identified three months in which the reimbursement amount received from the pass-through entity was more than the Organization?s documentation. In addition, there was no indication that a review was performed of the information submitted for one of the four months tested. Cause: The Organization?s controls did not operate as designed, which resulted in the reimbursement amount from the pass-through entity being more than the support maintained by the Organization for three of the 12 months and no documentation of the review for one of the months. Effect: Inadequate internal controls over compliance could result in noncompliance with the federal program. Questioned Costs: N/A Context/Sampling: A nonstatistical sample of four months participants out of 12 were selected for testing. Repeat Finding from Prior Years: Yes, prior year finding 2021-003. Recommendation: We recommend management revise their internal controls to make sure the forms submitted are reviewed by the Organization prior to submission. Views of Responsible Officials: Management agrees with the finding.
Department of Housing and Urban Development, Passed through Hearth Connections, Continuum of Care, Federal Financial Assistance Listing/CFDA # 14.267 Special Tests and Provisions Material Weakness in Internal Controls Over Compliance Grant Award Number: Affects all grant awards included under Federal Financial Assistance Listing/ CFDA 14.267 on the Schedule. Criteria: When grant funds are used by the Organization to pay for rent, the Organization must ensure that the rents do not exceed rents currently being charged by the same owner for comparable unassisted units and the portion of grant funds may not exceed HUD-determined fair market rents. These calculations should be reviewed prior to the rent being paid. Condition: During our testing, we identified five instances where the participant?s file did not have documentation that the rent reasonableness test was performed in a timely manner. In addition, we identified 19 instances where the participant?s file did not have documentation that the rent reasonableness test was reviewed. Cause: The Organization?s controls did not operate as designed, which resulted in rent reasonableness tests not being performed timely and/or reviewed before the rent being paid. Effect: Inadequate internal controls over compliance could result in noncompliance with the federal program. Questioned Costs: N/A Context/Sampling: A nonstatistical sample of 34 participants out of 170 were selected for testing. Repeat Finding from Prior Years: Yes, prior year finding 2021-002. Recommendation: We recommend management revise their internal controls to make sure that rent reasonableness tests are performed and reviewed by the appropriate personnel prior to the rent being paid. Views of Responsible Officials: Management agrees with the finding.
Department of Housing and Urban Development, Passed through Hearth Connections, Continuum of Care, Federal Financial Assistance Listing/CFDA # 14.267 Period of Performance Significant Deficiency in Internal Controls Over Compliance Grant Award Number: Affects all grant awards included under Federal Financial Assistance Listing/ CFDA 14.267 on the Schedule. Criteria: Internal controls should be designed and operating to ensure that documentation that is maintained by the Organization that supports the reimbursement amount received from the passthrough entity for supportive services. Condition: During our testing, we identified three months in which the reimbursement amount received from the pass-through entity was more than the Organization?s documentation. In addition, there was no indication that a review was performed of the information submitted for one of the four months tested. Cause: The Organization?s controls did not operate as designed, which resulted in the reimbursement amount from the pass-through entity being more than the support maintained by the Organization for three of the 12 months and no documentation of the review for one of the months. Effect: Inadequate internal controls over compliance could result in noncompliance with the federal program. Questioned Costs: N/A Context/Sampling: A nonstatistical sample of four months participants out of 12 were selected for testing. Repeat Finding from Prior Years: Yes, prior year finding 2021-003. Recommendation: We recommend management revise their internal controls to make sure the forms submitted are reviewed by the Organization prior to submission. Views of Responsible Officials: Management agrees with the finding.
Department of Housing and Urban Development, Passed through Hearth Connections, Continuum of Care, Federal Financial Assistance Listing/CFDA # 14.267 Period of Performance Significant Deficiency in Internal Controls Over Compliance Grant Award Number: Affects all grant awards included under Federal Financial Assistance Listing/ CFDA 14.267 on the Schedule. Criteria: Internal controls should be designed and operating to ensure that documentation that is maintained by the Organization that supports the reimbursement amount received from the passthrough entity for supportive services. Condition: During our testing, we identified three months in which the reimbursement amount received from the pass-through entity was more than the Organization?s documentation. In addition, there was no indication that a review was performed of the information submitted for one of the four months tested. Cause: The Organization?s controls did not operate as designed, which resulted in the reimbursement amount from the pass-through entity being more than the support maintained by the Organization for three of the 12 months and no documentation of the review for one of the months. Effect: Inadequate internal controls over compliance could result in noncompliance with the federal program. Questioned Costs: N/A Context/Sampling: A nonstatistical sample of four months participants out of 12 were selected for testing. Repeat Finding from Prior Years: Yes, prior year finding 2021-003. Recommendation: We recommend management revise their internal controls to make sure the forms submitted are reviewed by the Organization prior to submission. Views of Responsible Officials: Management agrees with the finding.
Department of Housing and Urban Development, Passed through Hearth Connections, Continuum of Care, Federal Financial Assistance Listing/CFDA # 14.267 Special Tests and Provisions Material Weakness in Internal Controls Over Compliance Grant Award Number: Affects all grant awards included under Federal Financial Assistance Listing/ CFDA 14.267 on the Schedule. Criteria: When grant funds are used by the Organization to pay for rent, the Organization must ensure that the rents do not exceed rents currently being charged by the same owner for comparable unassisted units and the portion of grant funds may not exceed HUD-determined fair market rents. These calculations should be reviewed prior to the rent being paid. Condition: During our testing, we identified five instances where the participant?s file did not have documentation that the rent reasonableness test was performed in a timely manner. In addition, we identified 19 instances where the participant?s file did not have documentation that the rent reasonableness test was reviewed. Cause: The Organization?s controls did not operate as designed, which resulted in rent reasonableness tests not being performed timely and/or reviewed before the rent being paid. Effect: Inadequate internal controls over compliance could result in noncompliance with the federal program. Questioned Costs: N/A Context/Sampling: A nonstatistical sample of 34 participants out of 170 were selected for testing. Repeat Finding from Prior Years: Yes, prior year finding 2021-002. Recommendation: We recommend management revise their internal controls to make sure that rent reasonableness tests are performed and reviewed by the appropriate personnel prior to the rent being paid. Views of Responsible Officials: Management agrees with the finding.
Department of Housing and Urban Development, Passed through Hearth Connections, Continuum of Care, Federal Financial Assistance Listing/CFDA # 14.267 Special Tests and Provisions Material Weakness in Internal Controls Over Compliance Grant Award Number: Affects all grant awards included under Federal Financial Assistance Listing/ CFDA 14.267 on the Schedule. Criteria: When grant funds are used by the Organization to pay for rent, the Organization must ensure that the rents do not exceed rents currently being charged by the same owner for comparable unassisted units and the portion of grant funds may not exceed HUD-determined fair market rents. These calculations should be reviewed prior to the rent being paid. Condition: During our testing, we identified five instances where the participant?s file did not have documentation that the rent reasonableness test was performed in a timely manner. In addition, we identified 19 instances where the participant?s file did not have documentation that the rent reasonableness test was reviewed. Cause: The Organization?s controls did not operate as designed, which resulted in rent reasonableness tests not being performed timely and/or reviewed before the rent being paid. Effect: Inadequate internal controls over compliance could result in noncompliance with the federal program. Questioned Costs: N/A Context/Sampling: A nonstatistical sample of 34 participants out of 170 were selected for testing. Repeat Finding from Prior Years: Yes, prior year finding 2021-002. Recommendation: We recommend management revise their internal controls to make sure that rent reasonableness tests are performed and reviewed by the appropriate personnel prior to the rent being paid. Views of Responsible Officials: Management agrees with the finding.
Department of Housing and Urban Development, Passed through Hearth Connections, Continuum of Care, Federal Financial Assistance Listing/CFDA # 14.267 Period of Performance Significant Deficiency in Internal Controls Over Compliance Grant Award Number: Affects all grant awards included under Federal Financial Assistance Listing/ CFDA 14.267 on the Schedule. Criteria: Internal controls should be designed and operating to ensure that documentation that is maintained by the Organization that supports the reimbursement amount received from the passthrough entity for supportive services. Condition: During our testing, we identified three months in which the reimbursement amount received from the pass-through entity was more than the Organization?s documentation. In addition, there was no indication that a review was performed of the information submitted for one of the four months tested. Cause: The Organization?s controls did not operate as designed, which resulted in the reimbursement amount from the pass-through entity being more than the support maintained by the Organization for three of the 12 months and no documentation of the review for one of the months. Effect: Inadequate internal controls over compliance could result in noncompliance with the federal program. Questioned Costs: N/A Context/Sampling: A nonstatistical sample of four months participants out of 12 were selected for testing. Repeat Finding from Prior Years: Yes, prior year finding 2021-003. Recommendation: We recommend management revise their internal controls to make sure the forms submitted are reviewed by the Organization prior to submission. Views of Responsible Officials: Management agrees with the finding.
Department of Housing and Urban Development, Passed through Hearth Connections, Continuum of Care, Federal Financial Assistance Listing/CFDA # 14.267 Special Tests and Provisions Material Weakness in Internal Controls Over Compliance Grant Award Number: Affects all grant awards included under Federal Financial Assistance Listing/ CFDA 14.267 on the Schedule. Criteria: When grant funds are used by the Organization to pay for rent, the Organization must ensure that the rents do not exceed rents currently being charged by the same owner for comparable unassisted units and the portion of grant funds may not exceed HUD-determined fair market rents. These calculations should be reviewed prior to the rent being paid. Condition: During our testing, we identified five instances where the participant?s file did not have documentation that the rent reasonableness test was performed in a timely manner. In addition, we identified 19 instances where the participant?s file did not have documentation that the rent reasonableness test was reviewed. Cause: The Organization?s controls did not operate as designed, which resulted in rent reasonableness tests not being performed timely and/or reviewed before the rent being paid. Effect: Inadequate internal controls over compliance could result in noncompliance with the federal program. Questioned Costs: N/A Context/Sampling: A nonstatistical sample of 34 participants out of 170 were selected for testing. Repeat Finding from Prior Years: Yes, prior year finding 2021-002. Recommendation: We recommend management revise their internal controls to make sure that rent reasonableness tests are performed and reviewed by the appropriate personnel prior to the rent being paid. Views of Responsible Officials: Management agrees with the finding.
Department of Housing and Urban Development, Passed through Hearth Connections, Continuum of Care, Federal Financial Assistance Listing/CFDA # 14.267 Period of Performance Significant Deficiency in Internal Controls Over Compliance Grant Award Number: Affects all grant awards included under Federal Financial Assistance Listing/ CFDA 14.267 on the Schedule. Criteria: Internal controls should be designed and operating to ensure that documentation that is maintained by the Organization that supports the reimbursement amount received from the passthrough entity for supportive services. Condition: During our testing, we identified three months in which the reimbursement amount received from the pass-through entity was more than the Organization?s documentation. In addition, there was no indication that a review was performed of the information submitted for one of the four months tested. Cause: The Organization?s controls did not operate as designed, which resulted in the reimbursement amount from the pass-through entity being more than the support maintained by the Organization for three of the 12 months and no documentation of the review for one of the months. Effect: Inadequate internal controls over compliance could result in noncompliance with the federal program. Questioned Costs: N/A Context/Sampling: A nonstatistical sample of four months participants out of 12 were selected for testing. Repeat Finding from Prior Years: Yes, prior year finding 2021-003. Recommendation: We recommend management revise their internal controls to make sure the forms submitted are reviewed by the Organization prior to submission. Views of Responsible Officials: Management agrees with the finding.
Department of Housing and Urban Development, Passed through Hearth Connections, Continuum of Care, Federal Financial Assistance Listing/CFDA # 14.267 Period of Performance Significant Deficiency in Internal Controls Over Compliance Grant Award Number: Affects all grant awards included under Federal Financial Assistance Listing/ CFDA 14.267 on the Schedule. Criteria: Internal controls should be designed and operating to ensure that documentation that is maintained by the Organization that supports the reimbursement amount received from the passthrough entity for supportive services. Condition: During our testing, we identified three months in which the reimbursement amount received from the pass-through entity was more than the Organization?s documentation. In addition, there was no indication that a review was performed of the information submitted for one of the four months tested. Cause: The Organization?s controls did not operate as designed, which resulted in the reimbursement amount from the pass-through entity being more than the support maintained by the Organization for three of the 12 months and no documentation of the review for one of the months. Effect: Inadequate internal controls over compliance could result in noncompliance with the federal program. Questioned Costs: N/A Context/Sampling: A nonstatistical sample of four months participants out of 12 were selected for testing. Repeat Finding from Prior Years: Yes, prior year finding 2021-003. Recommendation: We recommend management revise their internal controls to make sure the forms submitted are reviewed by the Organization prior to submission. Views of Responsible Officials: Management agrees with the finding.
Department of Housing and Urban Development, Passed through Hearth Connections, Continuum of Care, Federal Financial Assistance Listing/CFDA # 14.267 Special Tests and Provisions Material Weakness in Internal Controls Over Compliance Grant Award Number: Affects all grant awards included under Federal Financial Assistance Listing/ CFDA 14.267 on the Schedule. Criteria: When grant funds are used by the Organization to pay for rent, the Organization must ensure that the rents do not exceed rents currently being charged by the same owner for comparable unassisted units and the portion of grant funds may not exceed HUD-determined fair market rents. These calculations should be reviewed prior to the rent being paid. Condition: During our testing, we identified five instances where the participant?s file did not have documentation that the rent reasonableness test was performed in a timely manner. In addition, we identified 19 instances where the participant?s file did not have documentation that the rent reasonableness test was reviewed. Cause: The Organization?s controls did not operate as designed, which resulted in rent reasonableness tests not being performed timely and/or reviewed before the rent being paid. Effect: Inadequate internal controls over compliance could result in noncompliance with the federal program. Questioned Costs: N/A Context/Sampling: A nonstatistical sample of 34 participants out of 170 were selected for testing. Repeat Finding from Prior Years: Yes, prior year finding 2021-002. Recommendation: We recommend management revise their internal controls to make sure that rent reasonableness tests are performed and reviewed by the appropriate personnel prior to the rent being paid. Views of Responsible Officials: Management agrees with the finding.