FAC Explorer

Audit 235553

FY End
2022-12-31
Total Expended
$4.68M
Findings
8
Programs
7
Organization: Healthcare for the Homeless - Houston (TX)
Year: 2022 Accepted: 2023-09-29
Auditor: Abip PC

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
254951 2022-004 - - AB
254952 2022-005 Significant Deficiency - C
254953 2022-005 Significant Deficiency - C
254954 2022-005 Significant Deficiency - C
831393 2022-004 - - AB
831394 2022-005 Significant Deficiency - C
831395 2022-005 Significant Deficiency - C
831396 2022-005 Significant Deficiency - C

Programs

ALN Program Spent Major Findings
93.224 Consolidated Health Centers (community Health Centers, Migrant Health Centers, Health Care for the Homeless, and Public Housing Primary Care) $724,699 Yes 1
14.228 Community Development Block Grants/state's Program and Non-Entitlement Grants in Hawaii $252,449 - 0
21.023 Emergency Rental Assistance Program $235,116 - 0
14.218 Community Development Block Grants/entitlement Grants $208,947 - 0
21.027 Coronavirus State and Local Fiscal Recovery Funds $91,382 - 0
14.267 Continuum of Care Program $47,009 - 0
93.527 Affordable Care Act (aca) Grants for New and Expanded Services Under the Health Center Program $0 Yes 0

Contacts

Name Title Type
FERHWNBAGM89 Carlie Brown Auditee
7132866122 Eric Huddleston Auditor
No contacts on file

Notes to SEFA

Title: Subrecipients Accounting Policies: The accompanying Schedule of Expenditures of Federal Awards (the Schedule) includes the federal grant activity of Healthcare for the Homeless Houston under programs of the federal government for the year ended December 31, 2022. The information in this Schedule 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.Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures arerecognized following the cost principles contained in the Uniform Guidance for federal awards. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. The Organization did not provide federal funds to subrecipients for the year ended December 31, 2022.
Title: Loan guarantee Accounting Policies: The accompanying Schedule of Expenditures of Federal Awards (the Schedule) includes the federal grant activity of Healthcare for the Homeless Houston under programs of the federal government for the year ended December 31, 2022. The information in this Schedule 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.Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures arerecognized following the cost principles contained in the Uniform Guidance for federal awards. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. The Organization did not have any loans or loan guarantee programs required to be reported on the Schedule for the year ended December 31, 2022.
Title: Reconciliation of federal grant expense Accounting Policies: The accompanying Schedule of Expenditures of Federal Awards (the Schedule) includes the federal grant activity of Healthcare for the Homeless Houston under programs of the federal government for the year ended December 31, 2022. The information in this Schedule 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.Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures arerecognized following the cost principles contained in the Uniform Guidance for federal awards. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. The following is a reconciliation of federal grant expense per the statement of activities to the federal grants per the Schedule for the year ended December 31, 2022:Federal and state grants and contracts per the statement of activities $ 5,143,947Less: non-federal grants included in federal and state grants and contracts line item 460,855Federal grants per the schedule of expenditures of federal awards $ 4,683,092
Title: Relationships to Federal financial reports Accounting Policies: The accompanying Schedule of Expenditures of Federal Awards (the Schedule) includes the federal grant activity of Healthcare for the Homeless Houston under programs of the federal government for the year ended December 31, 2022. The information in this Schedule 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.Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures arerecognized following the cost principles contained in the Uniform Guidance for federal awards. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. Amounts reported in the accompanying financial statements may not agree with the amounts reported in the related Federal financial reports filed with grantor agencies because of different program year-ends and accruals that will be reflected in the next reports filed with the agencies.

Finding Details

Finding 2022-004
Condition: The Organization did not adequately document draw down requests or present the federal award revenue in accordance with GAAP. Criteria or specific requirement: Activities Allowed/Unallowed and Cost Principles (45 CFR 75.403(g)) requires costs to be adequately documented. Questioned Costs: $49,402Effect: Grant funds were used for nonallowable expenses as defined within the grant agreement Cause: The Organization did not use grant funds under this award for allowable costs as defined within the grant agreement. Identification: Not a repeat finding Recommendation: Management should solidify grants management procedures, specifically regarding the documentation of drawdowns of grant funds and review expenditures allowed and unallowed per the terms of the grant agreement. Management?s view: Management agrees with the condition described. Proposed corrective action: The finance department has already implemented a process in which the Chief Financial Officer reviews the documentation for expenditures allowed and unallowed under the terms of the grant agreement, and the drawdown happens only when the amount of allowed expenditures has been determined. Anticipated correction date: This has already been implemented retroactively effective January 2023. Responsible official: Gabriela Cordero, Chief Financial Officer.
Finding 2022-005
Condition: During our testing, we noted that certain draw requests of federal funds were not supported by documentation of the review and approval of those draw requests. Criteria or specific requirement: Cash management (45 CFR 75.342(a)) Monitoring and reporting program performance requires the Organization to monitor and oversee operations of the Federal award supported activities. Effect: Documentation of the initial review and approval of federal funds draw requests was not retained. Cause: Based on our observations, upon change in the Chief Executive Officer role and the abrupt loss of the Chief Financial Officer, existing procedures were not completely transferred to the new officer and employees, and/or service providers. Recommendation: We recommend that documentation of the review and approval of draws on federals funds be obtained and saved prior to requests being submitted. Management?s view: Management agrees with the condition described. Proposed corrective action: The finance department has already implemented a process in which the Chief Financial Officer reviewed draws on federal funds noting no discrepancies. Going forward, the Chief Financial Officer will calculate the amount of the draw on federal funds, which will then be reviewed, approved, and documented by the Chief Executive Officer before the draw is submitted. Anticipated correction date: This has already been implemented retroactively effective January 2023. Responsible official: Gabriela Cordero, Chief Financial Officer.
Finding 2022-005
Condition: During our testing, we noted that certain draw requests of federal funds were not supported by documentation of the review and approval of those draw requests. Criteria or specific requirement: Cash management (45 CFR 75.342(a)) Monitoring and reporting program performance requires the Organization to monitor and oversee operations of the Federal award supported activities. Effect: Documentation of the initial review and approval of federal funds draw requests was not retained. Cause: Based on our observations, upon change in the Chief Executive Officer role and the abrupt loss of the Chief Financial Officer, existing procedures were not completely transferred to the new officer and employees, and/or service providers. Recommendation: We recommend that documentation of the review and approval of draws on federals funds be obtained and saved prior to requests being submitted. Management?s view: Management agrees with the condition described. Proposed corrective action: The finance department has already implemented a process in which the Chief Financial Officer reviewed draws on federal funds noting no discrepancies. Going forward, the Chief Financial Officer will calculate the amount of the draw on federal funds, which will then be reviewed, approved, and documented by the Chief Executive Officer before the draw is submitted. Anticipated correction date: This has already been implemented retroactively effective January 2023. Responsible official: Gabriela Cordero, Chief Financial Officer.
Finding 2022-005
Condition: During our testing, we noted that certain draw requests of federal funds were not supported by documentation of the review and approval of those draw requests. Criteria or specific requirement: Cash management (45 CFR 75.342(a)) Monitoring and reporting program performance requires the Organization to monitor and oversee operations of the Federal award supported activities. Effect: Documentation of the initial review and approval of federal funds draw requests was not retained. Cause: Based on our observations, upon change in the Chief Executive Officer role and the abrupt loss of the Chief Financial Officer, existing procedures were not completely transferred to the new officer and employees, and/or service providers. Recommendation: We recommend that documentation of the review and approval of draws on federals funds be obtained and saved prior to requests being submitted. Management?s view: Management agrees with the condition described. Proposed corrective action: The finance department has already implemented a process in which the Chief Financial Officer reviewed draws on federal funds noting no discrepancies. Going forward, the Chief Financial Officer will calculate the amount of the draw on federal funds, which will then be reviewed, approved, and documented by the Chief Executive Officer before the draw is submitted. Anticipated correction date: This has already been implemented retroactively effective January 2023. Responsible official: Gabriela Cordero, Chief Financial Officer.
Finding 2022-004
Condition: The Organization did not adequately document draw down requests or present the federal award revenue in accordance with GAAP. Criteria or specific requirement: Activities Allowed/Unallowed and Cost Principles (45 CFR 75.403(g)) requires costs to be adequately documented. Questioned Costs: $49,402Effect: Grant funds were used for nonallowable expenses as defined within the grant agreement Cause: The Organization did not use grant funds under this award for allowable costs as defined within the grant agreement. Identification: Not a repeat finding Recommendation: Management should solidify grants management procedures, specifically regarding the documentation of drawdowns of grant funds and review expenditures allowed and unallowed per the terms of the grant agreement. Management?s view: Management agrees with the condition described. Proposed corrective action: The finance department has already implemented a process in which the Chief Financial Officer reviews the documentation for expenditures allowed and unallowed under the terms of the grant agreement, and the drawdown happens only when the amount of allowed expenditures has been determined. Anticipated correction date: This has already been implemented retroactively effective January 2023. Responsible official: Gabriela Cordero, Chief Financial Officer.
Finding 2022-005
Condition: During our testing, we noted that certain draw requests of federal funds were not supported by documentation of the review and approval of those draw requests. Criteria or specific requirement: Cash management (45 CFR 75.342(a)) Monitoring and reporting program performance requires the Organization to monitor and oversee operations of the Federal award supported activities. Effect: Documentation of the initial review and approval of federal funds draw requests was not retained. Cause: Based on our observations, upon change in the Chief Executive Officer role and the abrupt loss of the Chief Financial Officer, existing procedures were not completely transferred to the new officer and employees, and/or service providers. Recommendation: We recommend that documentation of the review and approval of draws on federals funds be obtained and saved prior to requests being submitted. Management?s view: Management agrees with the condition described. Proposed corrective action: The finance department has already implemented a process in which the Chief Financial Officer reviewed draws on federal funds noting no discrepancies. Going forward, the Chief Financial Officer will calculate the amount of the draw on federal funds, which will then be reviewed, approved, and documented by the Chief Executive Officer before the draw is submitted. Anticipated correction date: This has already been implemented retroactively effective January 2023. Responsible official: Gabriela Cordero, Chief Financial Officer.
Finding 2022-005
Condition: During our testing, we noted that certain draw requests of federal funds were not supported by documentation of the review and approval of those draw requests. Criteria or specific requirement: Cash management (45 CFR 75.342(a)) Monitoring and reporting program performance requires the Organization to monitor and oversee operations of the Federal award supported activities. Effect: Documentation of the initial review and approval of federal funds draw requests was not retained. Cause: Based on our observations, upon change in the Chief Executive Officer role and the abrupt loss of the Chief Financial Officer, existing procedures were not completely transferred to the new officer and employees, and/or service providers. Recommendation: We recommend that documentation of the review and approval of draws on federals funds be obtained and saved prior to requests being submitted. Management?s view: Management agrees with the condition described. Proposed corrective action: The finance department has already implemented a process in which the Chief Financial Officer reviewed draws on federal funds noting no discrepancies. Going forward, the Chief Financial Officer will calculate the amount of the draw on federal funds, which will then be reviewed, approved, and documented by the Chief Executive Officer before the draw is submitted. Anticipated correction date: This has already been implemented retroactively effective January 2023. Responsible official: Gabriela Cordero, Chief Financial Officer.
Finding 2022-005
Condition: During our testing, we noted that certain draw requests of federal funds were not supported by documentation of the review and approval of those draw requests. Criteria or specific requirement: Cash management (45 CFR 75.342(a)) Monitoring and reporting program performance requires the Organization to monitor and oversee operations of the Federal award supported activities. Effect: Documentation of the initial review and approval of federal funds draw requests was not retained. Cause: Based on our observations, upon change in the Chief Executive Officer role and the abrupt loss of the Chief Financial Officer, existing procedures were not completely transferred to the new officer and employees, and/or service providers. Recommendation: We recommend that documentation of the review and approval of draws on federals funds be obtained and saved prior to requests being submitted. Management?s view: Management agrees with the condition described. Proposed corrective action: The finance department has already implemented a process in which the Chief Financial Officer reviewed draws on federal funds noting no discrepancies. Going forward, the Chief Financial Officer will calculate the amount of the draw on federal funds, which will then be reviewed, approved, and documented by the Chief Executive Officer before the draw is submitted. Anticipated correction date: This has already been implemented retroactively effective January 2023. Responsible official: Gabriela Cordero, Chief Financial Officer.