FAC Explorer

Audit 361950

FY End
2024-12-31
Total Expended
$216.66M
Findings
2
Programs
16
Organization: Home Forward (OR)
Year: 2024 Accepted: 2025-07-10
Auditor: Cliftonlarsonallen LLP

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
571009 2024-001 Material Weakness Yes E
1147451 2024-001 Material Weakness Yes E

Programs

ALN Program Spent Major Findings
14.881 Moving to Work Demonstration Program $138.16M Yes 1
14.871 Section 8 Housing Choice Vouchers $50.46M - 0
14.871 Emergency Housing Vouchers $8.98M - 0
14.267 Continuum of Care Program $6.96M - 0
21.027 Coronavirus State and Local Fiscal Recovery Funds $3.34M Yes 0
14.879 Section 8 Mainstream Vouchers $3.13M - 0
14.251 Economic Development Initiative, Community Project Funding, and Miscellaneous Grants $2.00M - 0
21.023 Emergency Rental Assistance Program $1.71M Yes 0
14.896 Family Self-Sufficiency Program $849,503 - 0
14.191 Multifamily Housing Service Coordinators $437,884 - 0
14.856 Lower Income Housing Assistance Program Section 8 Moderate Rehabilitation $203,234 - 0
14.249 Section 8 Moderate Rehabilitation Single Room Occupancy $186,611 - 0
14.866 Demolition and Revitalization of Severely Distressed Public Housing $131,099 - 0
97.024 Emergency Food and Shelter National Board Program $61,153 - 0
93.778 Medical Assistance Program/grants to States for Medicaid $33,718 - 0
32.011 Affordable Connectivity Outreach Grant Program $21,622 - 0

Contacts

Name Title Type
KV4VMBHUWYH7 Linda Uppinghouse Auditee
5038028317 Mandy Merchant Auditor
No contacts on file

Notes to SEFA

Title: NOTE 4 LOANS OUTSTANDING Accounting Policies: BASIS OF PRESENTATION The schedule of expenditures of federal awards (Schedule) presents the activities of all federal award programs of Home Forward. Home Forward’s reporting entity is defined in Note 1 of Home Forward’s basic financial statements. Federal awards received directly from federal agencies, as well as federal awards passed through from other governmental 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 Home Forward, it is not intended to, and does not, present the financial position, changes in net position, or cash flows of Home Forward. Home Forward’s reporting entity includes the operations of discretely presented component units which may have expended federal awards that are not included in the schedule of expenditures of federal awards for the year ended December 31, 2024. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Expenditures reported in the Schedule are reported on the accrual basis of accounting and include capitalized expenditures. Such expenditures are recognized following the cost principles contained in the Uniform Guidance for all awards with the exception of assistance listing number 21.023, which follows criteria determined by the Department of Treasury for allowability of costs. Under these principles, certain types of expenditures are not allowable or are limited as to reimbursement. De Minimis Rate Used: N Rate Explanation: Home Forward did not elect to use the 10 percent de minimis indirect cost rate as allowed under the Uniform Guidance. Home Forward participates in federal award programs that sponsor revolving loan programs, which are administrated by Home Forward and the city of Portland, Oregon (City). The City contracts Home Forward to collect loan repayments for these programs through servicing and trust arrangements. The funds are returned to the City upon repayment of the principal and interest. The federal government has imposed certain significant continuing compliance requirements with respect to the loans rendered under the Home Investment Partnerships (HOME) Program (assistance listing number 14.239). The City is responsible to administer the continuing compliance requirements and report the outstanding loan balances. During the year ended December 31, 2024, Home Forward did not incur expenditures related to new loans under the HOME program.

Finding Details

Finding 2024-001
Federal Agency: U.S. Department of Housing and Urban Development Federal Program Name: Moving to Work Demonstration Assistance Listing Number: 14.881 Federal Award Identification Number and Year: OR002VOW - 2024 Award Period: January 1, 2024 – December 31, 2024 Compliance Requirement: Eligibility Type of Finding: • Material Weakness in Internal Control over Compliance • Material Noncompliance (Modified Opinion) Criteria or specific requirement: Beneficiaries must be “low-income families,” as defined in Section 3(b)(2) of the 1937 Housing Act (42 USC 1437a(b)(2)) (Section 204(b) of Pub. L. No. 104-134 (42 USC 1437f (note))). Condition: The Authority did not have adequate internal controls designed to ensure that eligibility requirements were met. Questioned costs: Unable to determine Context: Testing of 40 tenant files for eligibility noted 15 files with exceptions: • 10 files were missing documentation needed to support and recalculate total income. • 5 files where the examination was not processed within the regulatory period. Cause: Home Forward did not sufficiently monitor controls to ensure compliance with eligibility requirements. Effect: Home Forward is not in compliance with federal regulations regarding eligibility. Tenant rent may have been miscalculated due to using stale/inaccurate information in the rent calculation. Repeat Finding: Yes, finding 2023-002. Previously reported as a significant deficiency in internal control over compliance. Recommendation: We recommend that Home Forward reviews the controls in place to ensure that recertifications are performed timely and the income is supported. Views of responsible officials: There is no disagreement with the audit finding.
Finding 2024-001
Federal Agency: U.S. Department of Housing and Urban Development Federal Program Name: Moving to Work Demonstration Assistance Listing Number: 14.881 Federal Award Identification Number and Year: OR002VOW - 2024 Award Period: January 1, 2024 – December 31, 2024 Compliance Requirement: Eligibility Type of Finding: • Material Weakness in Internal Control over Compliance • Material Noncompliance (Modified Opinion) Criteria or specific requirement: Beneficiaries must be “low-income families,” as defined in Section 3(b)(2) of the 1937 Housing Act (42 USC 1437a(b)(2)) (Section 204(b) of Pub. L. No. 104-134 (42 USC 1437f (note))). Condition: The Authority did not have adequate internal controls designed to ensure that eligibility requirements were met. Questioned costs: Unable to determine Context: Testing of 40 tenant files for eligibility noted 15 files with exceptions: • 10 files were missing documentation needed to support and recalculate total income. • 5 files where the examination was not processed within the regulatory period. Cause: Home Forward did not sufficiently monitor controls to ensure compliance with eligibility requirements. Effect: Home Forward is not in compliance with federal regulations regarding eligibility. Tenant rent may have been miscalculated due to using stale/inaccurate information in the rent calculation. Repeat Finding: Yes, finding 2023-002. Previously reported as a significant deficiency in internal control over compliance. Recommendation: We recommend that Home Forward reviews the controls in place to ensure that recertifications are performed timely and the income is supported. Views of responsible officials: There is no disagreement with the audit finding.