Audit 22382

2022-003 ? Compliance over Matching ? (Significant Deficiency) Federal Program Information: Funding Agency: Housing and Urban Development Title: Continuum of Care CFDA Number: 14.267 Compliance Requirement: Matching Award Year: July 1, 2021 to June 30, 2022 Condition: During our audit, we noted that Hopeworks only matched 18.48% of the total applicable expenses for the year which was less than the required 25%. Criteria: Hopeworks must match all applicable grant funds, with no less than 25 percent of cash or in-kind contributions from other sources (24 CFR section 578.73(a)). Effect: Hopeworks under matched the required amount for the Continuum of Care program. Questioned Costs: None Cause: HopeWorks has not established a sufficient system of internal control to ensure that they were in compliance with the required match for the fiscal year. Auditors? Recommendation: We recommend that Hopeworks establish a system of internal controls to ensure that they provide at least 25% of both cash and in-kind contributions for all applicable programs under the Continuum of Care program. Management's Response: Hopeworks will implement a quarterly tracking system to ensure the grants achieve the 25% matching requirement. On a quarterly basis the Jessica Delgado the Quality and Compliance Officer will send the Finance Department a listing of applicable expenses incurred to date. The Finance Department will review these costs to the Medicaid billings to ensure the 25% match is being met. In the event of a shortfall Finance will coordinate with Quality and Compliance to adjust spending and/or Medicaid billings to bring the matching contribution into alignment with the grant's requirements.

2022-003 ? Compliance over Matching ? (Significant Deficiency) Federal Program Information: Funding Agency: Housing and Urban Development Title: Continuum of Care CFDA Number: 14.267 Compliance Requirement: Matching Award Year: July 1, 2021 to June 30, 2022 Condition: During our audit, we noted that Hopeworks only matched 18.48% of the total applicable expenses for the year which was less than the required 25%. Criteria: Hopeworks must match all applicable grant funds, with no less than 25 percent of cash or in-kind contributions from other sources (24 CFR section 578.73(a)). Effect: Hopeworks under matched the required amount for the Continuum of Care program. Questioned Costs: None Cause: HopeWorks has not established a sufficient system of internal control to ensure that they were in compliance with the required match for the fiscal year. Auditors? Recommendation: We recommend that Hopeworks establish a system of internal controls to ensure that they provide at least 25% of both cash and in-kind contributions for all applicable programs under the Continuum of Care program. Management's Response: Hopeworks will implement a quarterly tracking system to ensure the grants achieve the 25% matching requirement. On a quarterly basis the Jessica Delgado the Quality and Compliance Officer will send the Finance Department a listing of applicable expenses incurred to date. The Finance Department will review these costs to the Medicaid billings to ensure the 25% match is being met. In the event of a shortfall Finance will coordinate with Quality and Compliance to adjust spending and/or Medicaid billings to bring the matching contribution into alignment with the grant's requirements.

2022-003 ? Compliance over Matching ? (Significant Deficiency) Federal Program Information: Funding Agency: Housing and Urban Development Title: Continuum of Care CFDA Number: 14.267 Compliance Requirement: Matching Award Year: July 1, 2021 to June 30, 2022 Condition: During our audit, we noted that Hopeworks only matched 18.48% of the total applicable expenses for the year which was less than the required 25%. Criteria: Hopeworks must match all applicable grant funds, with no less than 25 percent of cash or in-kind contributions from other sources (24 CFR section 578.73(a)). Effect: Hopeworks under matched the required amount for the Continuum of Care program. Questioned Costs: None Cause: HopeWorks has not established a sufficient system of internal control to ensure that they were in compliance with the required match for the fiscal year. Auditors? Recommendation: We recommend that Hopeworks establish a system of internal controls to ensure that they provide at least 25% of both cash and in-kind contributions for all applicable programs under the Continuum of Care program. Management's Response: Hopeworks will implement a quarterly tracking system to ensure the grants achieve the 25% matching requirement. On a quarterly basis the Jessica Delgado the Quality and Compliance Officer will send the Finance Department a listing of applicable expenses incurred to date. The Finance Department will review these costs to the Medicaid billings to ensure the 25% match is being met. In the event of a shortfall Finance will coordinate with Quality and Compliance to adjust spending and/or Medicaid billings to bring the matching contribution into alignment with the grant's requirements.

2022-003 ? Compliance over Matching ? (Significant Deficiency) Federal Program Information: Funding Agency: Housing and Urban Development Title: Continuum of Care CFDA Number: 14.267 Compliance Requirement: Matching Award Year: July 1, 2021 to June 30, 2022 Condition: During our audit, we noted that Hopeworks only matched 18.48% of the total applicable expenses for the year which was less than the required 25%. Criteria: Hopeworks must match all applicable grant funds, with no less than 25 percent of cash or in-kind contributions from other sources (24 CFR section 578.73(a)). Effect: Hopeworks under matched the required amount for the Continuum of Care program. Questioned Costs: None Cause: HopeWorks has not established a sufficient system of internal control to ensure that they were in compliance with the required match for the fiscal year. Auditors? Recommendation: We recommend that Hopeworks establish a system of internal controls to ensure that they provide at least 25% of both cash and in-kind contributions for all applicable programs under the Continuum of Care program. Management's Response: Hopeworks will implement a quarterly tracking system to ensure the grants achieve the 25% matching requirement. On a quarterly basis the Jessica Delgado the Quality and Compliance Officer will send the Finance Department a listing of applicable expenses incurred to date. The Finance Department will review these costs to the Medicaid billings to ensure the 25% match is being met. In the event of a shortfall Finance will coordinate with Quality and Compliance to adjust spending and/or Medicaid billings to bring the matching contribution into alignment with the grant's requirements.

2022-003 ? Compliance over Matching ? (Significant Deficiency) Federal Program Information: Funding Agency: Housing and Urban Development Title: Continuum of Care CFDA Number: 14.267 Compliance Requirement: Matching Award Year: July 1, 2021 to June 30, 2022 Condition: During our audit, we noted that Hopeworks only matched 18.48% of the total applicable expenses for the year which was less than the required 25%. Criteria: Hopeworks must match all applicable grant funds, with no less than 25 percent of cash or in-kind contributions from other sources (24 CFR section 578.73(a)). Effect: Hopeworks under matched the required amount for the Continuum of Care program. Questioned Costs: None Cause: HopeWorks has not established a sufficient system of internal control to ensure that they were in compliance with the required match for the fiscal year. Auditors? Recommendation: We recommend that Hopeworks establish a system of internal controls to ensure that they provide at least 25% of both cash and in-kind contributions for all applicable programs under the Continuum of Care program. Management's Response: Hopeworks will implement a quarterly tracking system to ensure the grants achieve the 25% matching requirement. On a quarterly basis the Jessica Delgado the Quality and Compliance Officer will send the Finance Department a listing of applicable expenses incurred to date. The Finance Department will review these costs to the Medicaid billings to ensure the 25% match is being met. In the event of a shortfall Finance will coordinate with Quality and Compliance to adjust spending and/or Medicaid billings to bring the matching contribution into alignment with the grant's requirements.

2022-003 ? Compliance over Matching ? (Significant Deficiency) Federal Program Information: Funding Agency: Housing and Urban Development Title: Continuum of Care CFDA Number: 14.267 Compliance Requirement: Matching Award Year: July 1, 2021 to June 30, 2022 Condition: During our audit, we noted that Hopeworks only matched 18.48% of the total applicable expenses for the year which was less than the required 25%. Criteria: Hopeworks must match all applicable grant funds, with no less than 25 percent of cash or in-kind contributions from other sources (24 CFR section 578.73(a)). Effect: Hopeworks under matched the required amount for the Continuum of Care program. Questioned Costs: None Cause: HopeWorks has not established a sufficient system of internal control to ensure that they were in compliance with the required match for the fiscal year. Auditors? Recommendation: We recommend that Hopeworks establish a system of internal controls to ensure that they provide at least 25% of both cash and in-kind contributions for all applicable programs under the Continuum of Care program. Management's Response: Hopeworks will implement a quarterly tracking system to ensure the grants achieve the 25% matching requirement. On a quarterly basis the Jessica Delgado the Quality and Compliance Officer will send the Finance Department a listing of applicable expenses incurred to date. The Finance Department will review these costs to the Medicaid billings to ensure the 25% match is being met. In the event of a shortfall Finance will coordinate with Quality and Compliance to adjust spending and/or Medicaid billings to bring the matching contribution into alignment with the grant's requirements.