Audit 302133

Finding: Other Matter Finding: 2023-001 – Housing Inspections Agency: United States Department of Housing and Urban Development Federal Assistance Listing # and Title: AL #14.267 – Continuum of Care Program Federal Award Identification # and Year: FL0091L4H072114 June 1, 2022- May 31, 2023 Criteria: The United States Department of Housing and Urban Development (”HUD”) requires that move-in inspections be performed prior to a participant taking possession of housing. Per HUD, units assisted with leasing, must meet Housing Quality Standards (“HQS”) as defined by 24 CFR 583.300(b). The recipient or subrecipient must physically inspect each unit prior to providing Continuum of Care leasing funds, and annually thereafter. Condition: Covenant House Florida, Inc. (“CHF”) was unable to produce documentation that they performed move-in inspections on three of the nine units. Questioned costs: None Context: When performing the audit, we reviewed a monitoring report prepared by the Homeless Services Network of Central Florida, Inc., the passthrough entity. This report noted that CHF did not perform move-in inspections in accordance with HUD guidelines. Effect: The failure to perform proper inspections in accordance with HUD guidelines could cause CHF to be subject to monetary damages. Recommendation: We recommend that CHF perform inspections in accordance with HUD regulations defined in 24 CFR 583.300(6) Management’s Corrective Action Plan: See Appendix A attached

Finding: Other Matter Finding: 2023-001 – Housing Inspections Agency: United States Department of Housing and Urban Development Federal Assistance Listing # and Title: AL #14.267 – Continuum of Care Program Federal Award Identification # and Year: FL0091L4H072114 June 1, 2022- May 31, 2023 Criteria: The United States Department of Housing and Urban Development (”HUD”) requires that move-in inspections be performed prior to a participant taking possession of housing. Per HUD, units assisted with leasing, must meet Housing Quality Standards (“HQS”) as defined by 24 CFR 583.300(b). The recipient or subrecipient must physically inspect each unit prior to providing Continuum of Care leasing funds, and annually thereafter. Condition: Covenant House Florida, Inc. (“CHF”) was unable to produce documentation that they performed move-in inspections on three of the nine units. Questioned costs: None Context: When performing the audit, we reviewed a monitoring report prepared by the Homeless Services Network of Central Florida, Inc., the passthrough entity. This report noted that CHF did not perform move-in inspections in accordance with HUD guidelines. Effect: The failure to perform proper inspections in accordance with HUD guidelines could cause CHF to be subject to monetary damages. Recommendation: We recommend that CHF perform inspections in accordance with HUD regulations defined in 24 CFR 583.300(6) Management’s Corrective Action Plan: See Appendix A attached