FAC Explorer

Audit 319438

FY End
2023-12-31
Total Expended
$4.14M
Findings
4
Programs
9
Organization: Honor Ehg INC (NY)
Year: 2023 Accepted: 2024-09-12
Auditor: Rbt CPAS LLP

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
496646 2023-003 Significant Deficiency - A
496647 2023-002 Significant Deficiency Yes N
1073088 2023-003 Significant Deficiency - A
1073089 2023-002 Significant Deficiency Yes N

Programs

ALN Program Spent Major Findings
93.558 Temporary Assistance for Needy Families $2.83M Yes 1
14.267 Continuum of Care Program $753,744 Yes 1
93.623 Basic Center Grant $222,500 - 0
10.558 Child and Adult Care Food Program $87,877 - 0
14.231 Emergency Solutions Grant Program $87,079 - 0
93.667 Social Services Block Grant $74,452 - 0
93.658 Foster Care_title IV-E $54,038 - 0
97.024 Emergency Food and Shelter National Board Program $22,000 - 0
14.239 Home Investment Partnerships Program $8,990 - 0

Contacts

Name Title Type
MCNVH8MKQ1K1 Kathleen Morgan Auditee
8453437115 Katelyn Tymczyszyn Auditor
No contacts on file

Notes to SEFA

Title: Note 1- Basis of Presentation Accounting Policies: NOTE 1 – Basis of Presentation The accompanying Schedule of Expenditures of Federal Awards (the “Schedule”) includes the federal award activity of HONOR ehg, Inc. under programs of the federal government for the year ended December 31, 2023. Federal awards received directly from the federal agencies as well as federal awards passed through other government agencies are included in the Schedule. 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 financial position, or cash flows of the Organization. NOTE 2 – Summary of Significant Accounting Policies Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. NOTE 3 - Indirect Cost Rates The Organization has elected not to use the 10 percent de minimis indirect cost rate as allowed under the Uniform Guidance. NOTE 4 - Reconciliation to the Financial Statements The federal expenditures presented in the Schedule reconcile to the Grant Support Revenue reported in the Statement of Activities as follows: Federal Expenditures as reported in the SEFA: De Minimis Rate Used: N Rate Explanation: The Organization has elected not to use the 10% deminimus indirect cost rate allowed under the uniform guidanence he accompanying Schedule of Expenditures of Federal Awards (the “Schedule”) includes the federal award activity of HONOR ehg, Inc. under programs of the federal government for the year ended December 31, 2023. Federal awards received directly from the federal agencies as well as federal awards passed through other government agencies are included in the Schedule. 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 financial position, or cash flows of the Organization.
Title: NOTE 2 – Summary of Significant Accounting Policies Accounting Policies: NOTE 1 – Basis of Presentation The accompanying Schedule of Expenditures of Federal Awards (the “Schedule”) includes the federal award activity of HONOR ehg, Inc. under programs of the federal government for the year ended December 31, 2023. Federal awards received directly from the federal agencies as well as federal awards passed through other government agencies are included in the Schedule. 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 financial position, or cash flows of the Organization. NOTE 2 – Summary of Significant Accounting Policies Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. NOTE 3 - Indirect Cost Rates The Organization has elected not to use the 10 percent de minimis indirect cost rate as allowed under the Uniform Guidance. NOTE 4 - Reconciliation to the Financial Statements The federal expenditures presented in the Schedule reconcile to the Grant Support Revenue reported in the Statement of Activities as follows: Federal Expenditures as reported in the SEFA: De Minimis Rate Used: N Rate Explanation: The Organization has elected not to use the 10% deminimus indirect cost rate allowed under the uniform guidanence Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement.
Title: NOTE 3 - Indirect Cost Rates Accounting Policies: NOTE 1 – Basis of Presentation The accompanying Schedule of Expenditures of Federal Awards (the “Schedule”) includes the federal award activity of HONOR ehg, Inc. under programs of the federal government for the year ended December 31, 2023. Federal awards received directly from the federal agencies as well as federal awards passed through other government agencies are included in the Schedule. 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 financial position, or cash flows of the Organization. NOTE 2 – Summary of Significant Accounting Policies Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. NOTE 3 - Indirect Cost Rates The Organization has elected not to use the 10 percent de minimis indirect cost rate as allowed under the Uniform Guidance. NOTE 4 - Reconciliation to the Financial Statements The federal expenditures presented in the Schedule reconcile to the Grant Support Revenue reported in the Statement of Activities as follows: Federal Expenditures as reported in the SEFA: De Minimis Rate Used: N Rate Explanation: The Organization has elected not to use the 10% deminimus indirect cost rate allowed under the uniform guidanence The Organization has elected not to use the 10 percent de minimis indirect cost rate as allowed under the Uniform Guidance.
Title: NOTE 4 - Reconciliation to the Financial Statements Accounting Policies: NOTE 1 – Basis of Presentation The accompanying Schedule of Expenditures of Federal Awards (the “Schedule”) includes the federal award activity of HONOR ehg, Inc. under programs of the federal government for the year ended December 31, 2023. Federal awards received directly from the federal agencies as well as federal awards passed through other government agencies are included in the Schedule. 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 financial position, or cash flows of the Organization. NOTE 2 – Summary of Significant Accounting Policies Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. NOTE 3 - Indirect Cost Rates The Organization has elected not to use the 10 percent de minimis indirect cost rate as allowed under the Uniform Guidance. NOTE 4 - Reconciliation to the Financial Statements The federal expenditures presented in the Schedule reconcile to the Grant Support Revenue reported in the Statement of Activities as follows: Federal Expenditures as reported in the SEFA: De Minimis Rate Used: N Rate Explanation: The Organization has elected not to use the 10% deminimus indirect cost rate allowed under the uniform guidanence The federal expenditures presented in the Schedule reconcile to the Grant Support Revenue reported in the Statement of Activities as follows: Federal Expenditures as reported in the SEFA $4,136,519 Reconciling Items: Unspent Federal Award (Restricted) 294,028, Grants from other non-federal sources 1,987,452 ,Total Pledges, Contributiosn, Membership Dues and Other Grants Reported in the Statement of Activities $6,417,999

Finding Details

Finding 2023-003
2023 - 003 TANF Voucher Controls Assistance Listing Number: 93.558 Name of Program and Cluster: Temporary Assistance for Needy Families/ 477 Cluster Agency: U.S. Department of Health and Human Services passed through Orange County Department of Social Services Condition: The Organization does not have a detective control in place to determine incorrect vouchers. Criteria: Per the Orange County DSS Contract, monthly vouchers are to be submitted with bed counts for reimbursement of shelter services provided. Context: 2 of 3 vouchers selected for testing were submitted to the County and then subsequently corrected based on the County’s review of total nights billed. Cause: The bed summary counts, nightly sign in sheets and vouchers are not reconciled. Although the bed summaries are reviewed, the vouchers are not reviewed prior to submission or reconciled to the sign in sheets. Effect: The Organization is relying on the County to provide the appropriate bed counts and voucher amounts and frequently has to make adjustments to vouchers submitted for payment. Recommendation: RBT recommends that controls are reviewed and updated to include a reconciliation to the bed summaries, and a review of eligible participants billed in order to avoid billing errors. Auditee's Response: See corrective action plan.
Finding 2023-002
2023 - 002 Rent Reasonableness Controls Assistance Listing Number: 14.267 Name of Program and Cluster: Continuum of Care Program Agency: U.S. Department of Housing and Urban Development Condition: HONOR does not complete annual rent reasonableness assessments for tenants. In addition, HONOR does not retain calculations of HUD portions or tenant portions in the Finance Department and passthrough rents paid did not have rent reasonableness paperwork. This is a repeat finding of 2022- 001 and 2022-002. Criteria: Per 2 CFR Part 200, Appendix IX, Compliance Supplement, rents paid must be reasonable in relation to rents being charged for comparable units taking into account relevant features. In addition, rents may not exceed rents currently being charged by the same owner for comparable unassisted units, and the portion of rents paid with grant funds may not exceed HUD-determined fair market rents. Management is responsible for establishing and monitoring controls to ensure that the Organization complies with these requirements. Context: 7 of 9 tenants selected did not have Rent Reasonableness Certifications performed per the Organization's policy during 2023. 2 tenants did not have updated lease agreements, and no evidence of rent reasonableness testing was obtained from subrecipients. Cause: The Organization did not perform rent reasonableness certifications annually and the finance department does not track tenant portion of rents due. Effect: Due to lack of controls, the Organization was not in compliance with the Continuum of Care Special Tests requirement regarding Reasonable Rental Rates. Recommendation: RBT recommends that the Organization perform annual rent reasonableness certifications on all tenants whose rent is paid by COC funding. Rent reasonableness certification should document comparable rental units in the area, cost of other rental units from the same landlord and that the rent portion funded by COC funds is at or below the Fair Market Rent published annually. RBT also recommends that rent reasonableness certifications are obtained from subrecipients. Auditee's Response: See corrective action plan.
Finding 2023-003
2023 - 003 TANF Voucher Controls Assistance Listing Number: 93.558 Name of Program and Cluster: Temporary Assistance for Needy Families/ 477 Cluster Agency: U.S. Department of Health and Human Services passed through Orange County Department of Social Services Condition: The Organization does not have a detective control in place to determine incorrect vouchers. Criteria: Per the Orange County DSS Contract, monthly vouchers are to be submitted with bed counts for reimbursement of shelter services provided. Context: 2 of 3 vouchers selected for testing were submitted to the County and then subsequently corrected based on the County’s review of total nights billed. Cause: The bed summary counts, nightly sign in sheets and vouchers are not reconciled. Although the bed summaries are reviewed, the vouchers are not reviewed prior to submission or reconciled to the sign in sheets. Effect: The Organization is relying on the County to provide the appropriate bed counts and voucher amounts and frequently has to make adjustments to vouchers submitted for payment. Recommendation: RBT recommends that controls are reviewed and updated to include a reconciliation to the bed summaries, and a review of eligible participants billed in order to avoid billing errors. Auditee's Response: See corrective action plan.
Finding 2023-002
2023 - 002 Rent Reasonableness Controls Assistance Listing Number: 14.267 Name of Program and Cluster: Continuum of Care Program Agency: U.S. Department of Housing and Urban Development Condition: HONOR does not complete annual rent reasonableness assessments for tenants. In addition, HONOR does not retain calculations of HUD portions or tenant portions in the Finance Department and passthrough rents paid did not have rent reasonableness paperwork. This is a repeat finding of 2022- 001 and 2022-002. Criteria: Per 2 CFR Part 200, Appendix IX, Compliance Supplement, rents paid must be reasonable in relation to rents being charged for comparable units taking into account relevant features. In addition, rents may not exceed rents currently being charged by the same owner for comparable unassisted units, and the portion of rents paid with grant funds may not exceed HUD-determined fair market rents. Management is responsible for establishing and monitoring controls to ensure that the Organization complies with these requirements. Context: 7 of 9 tenants selected did not have Rent Reasonableness Certifications performed per the Organization's policy during 2023. 2 tenants did not have updated lease agreements, and no evidence of rent reasonableness testing was obtained from subrecipients. Cause: The Organization did not perform rent reasonableness certifications annually and the finance department does not track tenant portion of rents due. Effect: Due to lack of controls, the Organization was not in compliance with the Continuum of Care Special Tests requirement regarding Reasonable Rental Rates. Recommendation: RBT recommends that the Organization perform annual rent reasonableness certifications on all tenants whose rent is paid by COC funding. Rent reasonableness certification should document comparable rental units in the area, cost of other rental units from the same landlord and that the rent portion funded by COC funds is at or below the Fair Market Rent published annually. RBT also recommends that rent reasonableness certifications are obtained from subrecipients. Auditee's Response: See corrective action plan.