Audit 2663

2022-002 Program Income Program: 14.267 Continuum of Care Program Criteria: Housing program tenants are required to pay up to 30% of their income for rent. Eligibility and rent determination evaluations are performed for new tenants before move-in and annually for existing tenants to determine their portion of rent to pay. In accordance with 2 CFR 200.307, program income (in this case, tenant rent) must be correctly determined and properly recorded in the accounting records. Condition: For two out of 10 transactions tested, the amount of rent collected by The Center from the tenant was more than the amount determined on the Eligibility and Rent Determination form. Cause: There is no process to regularly review tenant rent to ensure amounts collected are accurate and agree with the Eligibility and Rent Determination form. Effect: One tenant overpaid their tenant portion of rent for a combined $44 during the fiscal year. Questioned Costs: The conditions did not result in questioned costs greater than $25,000. Context: Rent was overpaid by one tenant. Repeat Finding: Yes; 2021-003. Recommendation: The Center should develop a policy for handling underpayments and overpayments of tenant rent. Rent collected should be compared to the amount determined on the Eligibility and Rent Determination form on a monthly basis to review for inconsistencies and, when differences arise, they should be timely investigated and followed-up on with the appropriate corrective action, per the established policy. Views of Responsible Officials: Management agrees with the finding and a response is included in the corrective action plan.

2022-003 Suspension and Debarment Policy Program: N/A Criteria: In 2 CFR Part 180, the Uniform Guidance requires that, for covered transactions, the non-Federal entity verify that entities are not suspended, debarred, or otherwise excluded. Condition: While The Center has a policy in place to ensure that its Board members and employees are not suspended, debarred, or otherwise excluded, it does not perform a review for vendors and landlords which may participate in covered transactions. Cause: Certain contracts specify that The Center perform debarment and exclusion checks monthly on all Board members and employees, but do not explicitly state that other parties should also be reviewed. Effect: Without reviewing vendors and landlords for suspension or debarment, there exists the possibility that The Center entered into covered transactions with excluded parties. Questioned Costs: The conditions did not result in questioned costs greater than $25,000. Context: The audit did not identify any transactions with suspended, debarred, or otherwise excluded parties. Repeat Finding: Yes; 2021-004. Recommendation: The Center should expand the current suspension and debarment policy to include review of vendors and landlords. Views of Responsible Officials: Management agrees with the finding and a response is included in the corrective action plan.

2022-002 Program Income Program: 14.267 Continuum of Care Program Criteria: Housing program tenants are required to pay up to 30% of their income for rent. Eligibility and rent determination evaluations are performed for new tenants before move-in and annually for existing tenants to determine their portion of rent to pay. In accordance with 2 CFR 200.307, program income (in this case, tenant rent) must be correctly determined and properly recorded in the accounting records. Condition: For two out of 10 transactions tested, the amount of rent collected by The Center from the tenant was more than the amount determined on the Eligibility and Rent Determination form. Cause: There is no process to regularly review tenant rent to ensure amounts collected are accurate and agree with the Eligibility and Rent Determination form. Effect: One tenant overpaid their tenant portion of rent for a combined $44 during the fiscal year. Questioned Costs: The conditions did not result in questioned costs greater than $25,000. Context: Rent was overpaid by one tenant. Repeat Finding: Yes; 2021-003. Recommendation: The Center should develop a policy for handling underpayments and overpayments of tenant rent. Rent collected should be compared to the amount determined on the Eligibility and Rent Determination form on a monthly basis to review for inconsistencies and, when differences arise, they should be timely investigated and followed-up on with the appropriate corrective action, per the established policy. Views of Responsible Officials: Management agrees with the finding and a response is included in the corrective action plan.

2022-003 Suspension and Debarment Policy Program: N/A Criteria: In 2 CFR Part 180, the Uniform Guidance requires that, for covered transactions, the non-Federal entity verify that entities are not suspended, debarred, or otherwise excluded. Condition: While The Center has a policy in place to ensure that its Board members and employees are not suspended, debarred, or otherwise excluded, it does not perform a review for vendors and landlords which may participate in covered transactions. Cause: Certain contracts specify that The Center perform debarment and exclusion checks monthly on all Board members and employees, but do not explicitly state that other parties should also be reviewed. Effect: Without reviewing vendors and landlords for suspension or debarment, there exists the possibility that The Center entered into covered transactions with excluded parties. Questioned Costs: The conditions did not result in questioned costs greater than $25,000. Context: The audit did not identify any transactions with suspended, debarred, or otherwise excluded parties. Repeat Finding: Yes; 2021-004. Recommendation: The Center should expand the current suspension and debarment policy to include review of vendors and landlords. Views of Responsible Officials: Management agrees with the finding and a response is included in the corrective action plan.