Audit 27861

DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT 2022-001 (repeat finding of 2021-002) Youth Homelessness Demonstration Program, CFDA #14.276 Condition and Criteria: According to 2 CFR Section 200.305(b)(3) all reimbursement requests should be based on supporting documentation that shows the cost was incurred before the request for payment and that the payment to vendor was made. All the cash drawdown reports did not have adequate supporting documentation for the drawdown request. Cause: The reason for the lack of support in the drawdowns is due to using budgeted or estimated grant amounts as a basis for the request instead of actual expenses. Effect: The effect is that the Organization could have either requested funds before actual expenses and not be in compliance with the cash management requirements under Uniform Grant Guidance or the Organization could be shorting themselves funds during the grant period and causing cash flow issues. Context: In reviewing all the cash drawdown requests, we could not find the supporting documentation to support the expense was incurred before the drawdown request. We also could not determine that the cash payment was made to the vendor before the Organization requested it from the vendor. Auditor?s Recommendation: We recommend that each reimbursement request agrees to what is allocated through the accounting system by grant or program for actual expenses. This will help support the request and, if needed, a method to provide the actual invoice for the expense being requested. Management response: This is now our policy. Each grant program has its own identifiable ?cost center? that both revenue and expenses are posted in our accounting system.

2022-002 Youth Homelessness Demonstration Program, CFDA #14.276 Criteria: 2 CFR 200.512(a) requires that the reporting package (the single audit report) and the data collection form be submitted to the Federal Audit Clearinghouse the earlier of 30 calendar days after the reports are received or nine months (fifteen months with a COVID extension) after the end of the audit period. Condition: Northwest Compass, Inc.?s June 30, 2021 reporting package and data collection was due no later than June 11, 2022, which is 30 calendar days after the reports were received. The reporting package was filed in September 2022. Cause: The Organization had a significant increase in funding during fiscal year 2021 that resulted in a single audit being performed for the first time in a number of years. There were delays in the auditee certifying and submitting the reporting package to the Federal Audit Clearinghouse. Effect: This delay in reporting to the Federal Audit Clearinghouse and to pass-through entities will cause a delay in closing out grants and reporting results of the grants to various organizations. Auditor recommendation: We recommend that upon receiving the final reporting package, the Organization completes all requirements with the Federal Audit Clearinghouse. Management response: We have adopted this policy for fiscal year 2022 and moving forward.

DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT 2022-001 (repeat finding of 2021-002) Youth Homelessness Demonstration Program, CFDA #14.276 Condition and Criteria: According to 2 CFR Section 200.305(b)(3) all reimbursement requests should be based on supporting documentation that shows the cost was incurred before the request for payment and that the payment to vendor was made. All the cash drawdown reports did not have adequate supporting documentation for the drawdown request. Cause: The reason for the lack of support in the drawdowns is due to using budgeted or estimated grant amounts as a basis for the request instead of actual expenses. Effect: The effect is that the Organization could have either requested funds before actual expenses and not be in compliance with the cash management requirements under Uniform Grant Guidance or the Organization could be shorting themselves funds during the grant period and causing cash flow issues. Context: In reviewing all the cash drawdown requests, we could not find the supporting documentation to support the expense was incurred before the drawdown request. We also could not determine that the cash payment was made to the vendor before the Organization requested it from the vendor. Auditor?s Recommendation: We recommend that each reimbursement request agrees to what is allocated through the accounting system by grant or program for actual expenses. This will help support the request and, if needed, a method to provide the actual invoice for the expense being requested. Management response: This is now our policy. Each grant program has its own identifiable ?cost center? that both revenue and expenses are posted in our accounting system.

2022-002 Youth Homelessness Demonstration Program, CFDA #14.276 Criteria: 2 CFR 200.512(a) requires that the reporting package (the single audit report) and the data collection form be submitted to the Federal Audit Clearinghouse the earlier of 30 calendar days after the reports are received or nine months (fifteen months with a COVID extension) after the end of the audit period. Condition: Northwest Compass, Inc.?s June 30, 2021 reporting package and data collection was due no later than June 11, 2022, which is 30 calendar days after the reports were received. The reporting package was filed in September 2022. Cause: The Organization had a significant increase in funding during fiscal year 2021 that resulted in a single audit being performed for the first time in a number of years. There were delays in the auditee certifying and submitting the reporting package to the Federal Audit Clearinghouse. Effect: This delay in reporting to the Federal Audit Clearinghouse and to pass-through entities will cause a delay in closing out grants and reporting results of the grants to various organizations. Auditor recommendation: We recommend that upon receiving the final reporting package, the Organization completes all requirements with the Federal Audit Clearinghouse. Management response: We have adopted this policy for fiscal year 2022 and moving forward.