Audit 317889

Identification of the federal program: 14.267 – Continuum of Care Program Significant deficiency in internal controls related to special tests and provisions Criteria: 2 CFR Part 200.303 establishes internal control requirements over federal awards that provides reasonable assurance the entity is managing the federal award in compliance with Federal Statutes. Condition: The Organization has established internal control procedures over special tests and provisions specifically as they apply to reasonable rent, however, the procedures were not applied to all items tested during the audit. Eight files were selected for testing, and one did not include evidence of internal control procedures being applied. Cause: The Organization had policies in procedures in place over special tests and provisions but they were not applied consistently. Effect: Errors could be made in determining whether a unit’s rent is reasonable, and without the consistent application of internal controls, these errors may go unnoticed resulting in a unit being rented whose fair market value rent is outside of the parameters set by the Department of Housing and Urban Development. Questioned Costs: None Recommendations: We recommend the Organization consistently apply internal controls. Views of responsible officials: We agree we need to apply our internal controls as outlined in our policies and procedures consistently. Seven of the eight files tested did follow our policies and procedures. During this fiscal year, we were negatively impacted by the effects of COVID and experienced program manager turnover. Program managers are following these processes on a consistent basis moving forward.

Identification of the federal program: 93.568 – Low-Income Home Energy Assistance Program Compliance finding over reporting and significant deficiency in internal controls related to reporting Criteria: In accordance with the grant agreement between El Programa Hispano Catolico and Multnomah County, the Organization is to submit monthly expenditure reports by the 20th calendar day of the month following the month in which the expenditures were incurred. Condition: The Organization did not submit financial reports timely to Multnomah County. Cause: Internal control processes and procedures were not in place to ensure required monthly reports were filed timely. Effect: Multnomah County relies on monthly reports to monitor the activities of the Organization, and without these reports, Multnomah County cannot provide sufficient oversight of grant activities. Questioned Costs: None Recommendations: We recommend the Organization develop internal control processes and procedures to ensure reports are filed timely. Views of responsible officials: We agree with the need for internal control processes and procedures to ensure the finance team files reports timely. During the audited period, the financial reporting was transitioning to EPHC from Catholic Charities, and staff were hired and trained on the financial reporting. Within 6 months of this transition starting, reports were submitted timely. Finance team members are following these processes on a consistent basis moving forward.

Identification of the federal program: 93.568 – Low-Income Home Energy Assistance Program Compliance finding over reporting and significant deficiency in internal controls related to reporting Criteria: In accordance with the grant agreement between El Programa Hispano Catolico and Multnomah County, the Organization is to submit monthly expenditure reports by the 20th calendar day of the month following the month in which the expenditures were incurred. Condition: The Organization did not submit financial reports timely to Multnomah County. Cause: Internal control processes and procedures were not in place to ensure required monthly reports were filed timely. Effect: Multnomah County relies on monthly reports to monitor the activities of the Organization, and without these reports, Multnomah County cannot provide sufficient oversight of grant activities. Questioned Costs: None Recommendations: We recommend the Organization develop internal control processes and procedures to ensure reports are filed timely. Views of responsible officials: We agree with the need for internal control processes and procedures to ensure the finance team files reports timely. During the audited period, the financial reporting was transitioning to EPHC from Catholic Charities, and staff were hired and trained on the financial reporting. Within 6 months of this transition starting, reports were submitted timely. Finance team members are following these processes on a consistent basis moving forward.

Identification of the federal program: 14.267 – Continuum of Care Program Significant deficiency in internal controls related to special tests and provisions Criteria: 2 CFR Part 200.303 establishes internal control requirements over federal awards that provides reasonable assurance the entity is managing the federal award in compliance with Federal Statutes. Condition: The Organization has established internal control procedures over special tests and provisions specifically as they apply to reasonable rent, however, the procedures were not applied to all items tested during the audit. Eight files were selected for testing, and one did not include evidence of internal control procedures being applied. Cause: The Organization had policies in procedures in place over special tests and provisions but they were not applied consistently. Effect: Errors could be made in determining whether a unit’s rent is reasonable, and without the consistent application of internal controls, these errors may go unnoticed resulting in a unit being rented whose fair market value rent is outside of the parameters set by the Department of Housing and Urban Development. Questioned Costs: None Recommendations: We recommend the Organization consistently apply internal controls. Views of responsible officials: We agree we need to apply our internal controls as outlined in our policies and procedures consistently. Seven of the eight files tested did follow our policies and procedures. During this fiscal year, we were negatively impacted by the effects of COVID and experienced program manager turnover. Program managers are following these processes on a consistent basis moving forward.

Identification of the federal program: 93.568 – Low-Income Home Energy Assistance Program Compliance finding over reporting and significant deficiency in internal controls related to reporting Criteria: In accordance with the grant agreement between El Programa Hispano Catolico and Multnomah County, the Organization is to submit monthly expenditure reports by the 20th calendar day of the month following the month in which the expenditures were incurred. Condition: The Organization did not submit financial reports timely to Multnomah County. Cause: Internal control processes and procedures were not in place to ensure required monthly reports were filed timely. Effect: Multnomah County relies on monthly reports to monitor the activities of the Organization, and without these reports, Multnomah County cannot provide sufficient oversight of grant activities. Questioned Costs: None Recommendations: We recommend the Organization develop internal control processes and procedures to ensure reports are filed timely. Views of responsible officials: We agree with the need for internal control processes and procedures to ensure the finance team files reports timely. During the audited period, the financial reporting was transitioning to EPHC from Catholic Charities, and staff were hired and trained on the financial reporting. Within 6 months of this transition starting, reports were submitted timely. Finance team members are following these processes on a consistent basis moving forward.

Identification of the federal program: 93.568 – Low-Income Home Energy Assistance Program Compliance finding over reporting and significant deficiency in internal controls related to reporting Criteria: In accordance with the grant agreement between El Programa Hispano Catolico and Multnomah County, the Organization is to submit monthly expenditure reports by the 20th calendar day of the month following the month in which the expenditures were incurred. Condition: The Organization did not submit financial reports timely to Multnomah County. Cause: Internal control processes and procedures were not in place to ensure required monthly reports were filed timely. Effect: Multnomah County relies on monthly reports to monitor the activities of the Organization, and without these reports, Multnomah County cannot provide sufficient oversight of grant activities. Questioned Costs: None Recommendations: We recommend the Organization develop internal control processes and procedures to ensure reports are filed timely. Views of responsible officials: We agree with the need for internal control processes and procedures to ensure the finance team files reports timely. During the audited period, the financial reporting was transitioning to EPHC from Catholic Charities, and staff were hired and trained on the financial reporting. Within 6 months of this transition starting, reports were submitted timely. Finance team members are following these processes on a consistent basis moving forward.