FAC Explorer

Audit 359280

FY End
2023-06-30
Total Expended
$1.98M
Findings
4
Programs
7
Organization: House of Hope Community Development Corporation (RI)
Year: 2023 Accepted: 2025-06-19
Auditor: Damiano Burk & Nuttall PC

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
565409 2023-003 Significant Deficiency Yes P
565410 2023-004 Significant Deficiency Yes P
1141851 2023-003 Significant Deficiency Yes P
1141852 2023-004 Significant Deficiency Yes P

Programs

ALN Program Spent Major Findings
14.267 Continuum of Care Program $733,154 Yes 1
14.231 Emergency Solutions Grant Program $602,617 Yes 1
93.150 Projects for Assistance in Transition From Homelessness (path) $266,694 - 0
93.959 Block Grants for Prevention and Treatment of Substance Abuse $148,932 - 0
93.557 Education and Prevention Grants to Reduce Sexual Abuse of Runaway, Homeless and Street Youth $133,853 - 0
16.575 Crime Victim Assistance $80,159 - 0
14.000 Department of Housing and Urban Development $12,500 - 0

Contacts

Name Title Type
V1FGSV58NCY5 Laura Jaworski Razza Auditee
4014633324 Victoria Sylvia Auditor
No contacts on file

Notes to SEFA

Title: Note to the Schedule of Expenditures of Federal Awards Accounting Policies: Note to the Schedule of Expenditures of Federal Awards NOTE A—BASIS OF PRESENTATION The accompanying schedule of expenditures of federal awards (the Schedule) includes the federal award activity of House of Hope Community Development Corporation under programs of the federal government for the year ended June 30, 2023. 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 House of Hope it is not intended to and does not present the financial position, changes in net assets, or cash flows of House of Hope Community Development Corporation. NOTE B—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. De Minimis Rate Used: Y Rate Explanation: House of Hope Community Development Corporation has elected to use the 10% de minimis indirect cost rate as allowed under the Uniform Guidance. NOTE A—BASIS OF PRESENTATION The accompanying schedule of expenditures of federal awards (the Schedule) includes the federal award activity of House of Hope Community Development Corporation under programs of the federal government for the year ended June 30, 2023. 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 House of Hope it is not intended to and does not present the financial position, changes in net assets, or cash flows of House of Hope Community Development Corporation. NOTE B—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.

Finding Details

Finding 2023-003
Criteria: The Organization is required to establish and maintain effective internal controls over financial documentation to ensure compliance with federal regulations, as outlined in 2 CFR 200.303 and 2 CFR 200.334 of the Uniform Guidance. These controls are crucial for the accurate management and reporting of federal funds. Statement of Condition: During our audit, we found that eight out of 60 expenditures tested had incomplete documentation of the organization’s approval process in accordance with its internal controls. Additionally, one check stub could not be located. Cause: The existing internal control processes related to the organization and retrieval of financial documentation appear to be insufficient, a situation that was exacerbated by staffing shortages during the period under audit. Addressing these challenges through enhanced processes and adequate staffing could improve the Organization's ability to provide timely and complete documentation. Effect or Potential Effect: The inability to produce essential financial documentation may lead to compliance challenges with federal funding requirements. Additionally, this increases the risk of questioned costs, which could have financial implications for the Organization if not rectified. Recommendation: It is recommended that the Organization implement enhanced procedures for the systematic maintenance and retrieval of all financial records related to expenditures. This should include staff training on these protocols to ensure compliance and improve overall internal controls. Management’s Response: Management agrees with this finding. Please refer to the Corrective Action Plan for further details.
Finding 2023-004
Criteria: Uniform Guidance 2 CFR 200.512(a) requires that an audit must be completed and the data collection form and reporting package submitted within the earlier of 30 calendar days after receipt of the auditor’s report or nine months after the end of the audit period. Statement of Condition: The audit, data collection form, and reporting package for the Organization for the year ended June 30, 2023, were due for submission to the Federal Audit Clearinghouse by March 31, 2024. Additionally, the audit for the year ended June 30, 2024, has not yet commenced and was expected to be submitted by March 31, 2025. These delays have been compounded by staff turnover and vacant roles within the Organization, resulting in multiple years of outstanding submissions. Cause: The delay was due to staffing constraints and extended delays in the year-end close process at the Organization. Effect or Potential Effect: The failure to comply with Uniform Guidance requirements may result in noncompliance issues that could affect future funding and operational effectiveness. Recommendation: It is recommended that management implement procedures and controls to ensure that future audits are completed and submitted in a timely manner. Management’s Response: Management agrees with this finding. Please refer to the Corrective Action Plan for further details.
Finding 2023-003
Criteria: The Organization is required to establish and maintain effective internal controls over financial documentation to ensure compliance with federal regulations, as outlined in 2 CFR 200.303 and 2 CFR 200.334 of the Uniform Guidance. These controls are crucial for the accurate management and reporting of federal funds. Statement of Condition: During our audit, we found that eight out of 60 expenditures tested had incomplete documentation of the organization’s approval process in accordance with its internal controls. Additionally, one check stub could not be located. Cause: The existing internal control processes related to the organization and retrieval of financial documentation appear to be insufficient, a situation that was exacerbated by staffing shortages during the period under audit. Addressing these challenges through enhanced processes and adequate staffing could improve the Organization's ability to provide timely and complete documentation. Effect or Potential Effect: The inability to produce essential financial documentation may lead to compliance challenges with federal funding requirements. Additionally, this increases the risk of questioned costs, which could have financial implications for the Organization if not rectified. Recommendation: It is recommended that the Organization implement enhanced procedures for the systematic maintenance and retrieval of all financial records related to expenditures. This should include staff training on these protocols to ensure compliance and improve overall internal controls. Management’s Response: Management agrees with this finding. Please refer to the Corrective Action Plan for further details.
Finding 2023-004
Criteria: Uniform Guidance 2 CFR 200.512(a) requires that an audit must be completed and the data collection form and reporting package submitted within the earlier of 30 calendar days after receipt of the auditor’s report or nine months after the end of the audit period. Statement of Condition: The audit, data collection form, and reporting package for the Organization for the year ended June 30, 2023, were due for submission to the Federal Audit Clearinghouse by March 31, 2024. Additionally, the audit for the year ended June 30, 2024, has not yet commenced and was expected to be submitted by March 31, 2025. These delays have been compounded by staff turnover and vacant roles within the Organization, resulting in multiple years of outstanding submissions. Cause: The delay was due to staffing constraints and extended delays in the year-end close process at the Organization. Effect or Potential Effect: The failure to comply with Uniform Guidance requirements may result in noncompliance issues that could affect future funding and operational effectiveness. Recommendation: It is recommended that management implement procedures and controls to ensure that future audits are completed and submitted in a timely manner. Management’s Response: Management agrees with this finding. Please refer to the Corrective Action Plan for further details.