FAC Explorer

Audit 363622

FY End
2024-06-30
Total Expended
$805,132
Findings
12
Programs
4
Organization: Supportive Housing Communities, Inc. (NC)
Year: 2024 Accepted: 2025-08-04
Auditor: Cliftonlarsonallen LLP

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
572494 2024-001 Significant Deficiency - N
572495 2024-001 Significant Deficiency - N
572496 2024-001 Significant Deficiency - N
572497 2024-002 Significant Deficiency - G
572498 2024-002 Significant Deficiency - G
572499 2024-002 Significant Deficiency - G
1148936 2024-001 Significant Deficiency - N
1148937 2024-001 Significant Deficiency - N
1148938 2024-001 Significant Deficiency - N
1148939 2024-002 Significant Deficiency - G
1148940 2024-002 Significant Deficiency - G
1148941 2024-002 Significant Deficiency - G

Programs

ALN Program Spent Major Findings
14.267 Continuum of Care Program $293,112 Yes 2
14.252 Section 4 Capacity Building for Community Development and Affordable Housing $24,308 - 0
14.239 Home Investment Partnerships Program $18,835 - 0
14.231 Emergency Solutions Grant Program $16,818 - 0

Contacts

Name Title Type
E13YEC7G16P8 Laura Caldwell Auditee
7042483771 Jordan Miller Auditor
No contacts on file

Notes to SEFA

Title: CONTINGENCIES Accounting Policies: BASIS OF PRESENTATION The accompanying schedule of expenditures of federal awards (Schedule) includes the federal grant activity of Supportive Housing Communities, Inc. (the Organization) and is presented on the accrual basis of accounting. 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). Therefore, some amounts presented in this Schedule may differ from amounts presented in, or used in the preparation of, the financial statements. De Minimis Rate Used: Y Rate Explanation: The Organization has elected to use the 10-percent de minimis indirect cost rate as allowed under the Uniform Guidance. The Organization is subject to audit examination by the funding sources of grants to determine its compliance with certain grant provisions. In the event that expenditures could be disallowed through the audit, repayment of such disallowances could be required.

Finding Details

Finding 2024-001
Review of Rent Reasonableness Federal Agency: U.S. Department of Housing and Urban Development Federal Program: Continuum of Care Program Assistance Listing Number: 14.267 Award Period: July 1, 2023 – June 30, 2024 Type of Finding: Significant Deficiency of Internal Control over Major Federal Program Condition and Criteria: Rent reasonableness is completed by a member of the leasing and housing team. The Chief of Housing Operations performs a review of the rent reasonableness documentation. However, there is no documentation of the review and approval. Cause: Supportive Housing Communities, Inc. requires a review of the rent reasonableness by the Chief of Housing Operations, but there is no policy requiring documentation of the review and approval. Effect: It is possible review is not completed and errors are not caught and corrected timely. Recommendation: We recommend that management implement a policy that the Chief of HousingOperations documents their approval to ensure the review and approval have occurred. View of Responsible Officials and Planned Corrective Actions: The Organization agrees with thefinding. Supportive Housing Communities, Inc. has updated their process for preparing and inspectionof rent costs to ensure that the Chief of Housing Operations reviews all rent reasonablenessdocumentation by signing each form and noting the date of review. Name of the Contact Person Responsible for the Corrective Action: Laura Caldwell, President andChief Executive Officer Planned Completion Date for the Corrective Action Plan: July 15, 2025
Finding 2024-001
Review of Rent Reasonableness Federal Agency: U.S. Department of Housing and Urban Development Federal Program: Continuum of Care Program Assistance Listing Number: 14.267 Award Period: July 1, 2023 – June 30, 2024 Type of Finding: Significant Deficiency of Internal Control over Major Federal Program Condition and Criteria: Rent reasonableness is completed by a member of the leasing and housing team. The Chief of Housing Operations performs a review of the rent reasonableness documentation. However, there is no documentation of the review and approval. Cause: Supportive Housing Communities, Inc. requires a review of the rent reasonableness by the Chief of Housing Operations, but there is no policy requiring documentation of the review and approval. Effect: It is possible review is not completed and errors are not caught and corrected timely. Recommendation: We recommend that management implement a policy that the Chief of HousingOperations documents their approval to ensure the review and approval have occurred. View of Responsible Officials and Planned Corrective Actions: The Organization agrees with thefinding. Supportive Housing Communities, Inc. has updated their process for preparing and inspectionof rent costs to ensure that the Chief of Housing Operations reviews all rent reasonablenessdocumentation by signing each form and noting the date of review. Name of the Contact Person Responsible for the Corrective Action: Laura Caldwell, President andChief Executive Officer Planned Completion Date for the Corrective Action Plan: July 15, 2025
Finding 2024-001
Review of Rent Reasonableness Federal Agency: U.S. Department of Housing and Urban Development Federal Program: Continuum of Care Program Assistance Listing Number: 14.267 Award Period: July 1, 2023 – June 30, 2024 Type of Finding: Significant Deficiency of Internal Control over Major Federal Program Condition and Criteria: Rent reasonableness is completed by a member of the leasing and housing team. The Chief of Housing Operations performs a review of the rent reasonableness documentation. However, there is no documentation of the review and approval. Cause: Supportive Housing Communities, Inc. requires a review of the rent reasonableness by the Chief of Housing Operations, but there is no policy requiring documentation of the review and approval. Effect: It is possible review is not completed and errors are not caught and corrected timely. Recommendation: We recommend that management implement a policy that the Chief of HousingOperations documents their approval to ensure the review and approval have occurred. View of Responsible Officials and Planned Corrective Actions: The Organization agrees with thefinding. Supportive Housing Communities, Inc. has updated their process for preparing and inspectionof rent costs to ensure that the Chief of Housing Operations reviews all rent reasonablenessdocumentation by signing each form and noting the date of review. Name of the Contact Person Responsible for the Corrective Action: Laura Caldwell, President andChief Executive Officer Planned Completion Date for the Corrective Action Plan: July 15, 2025
Finding 2024-002
Review of Drawdown Requests Federal Agency: U.S. Department of Housing and Urban Development Federal Program: Continuum of Care Program Assistance Listing Number: 14.267 Award Period: July 1, 2023, to June 30, 2024 Type of Finding: Significant Deficiency of Internal Control over Major Federal Program Condition and Criteria: Supportive Housing Communities, Inc. can spend no more than 10 percent of its grants on administrative costs. Additionally, the Organization must match no less than 25% of all grant funds, except for leasing funds. Compliance with these requirements is reviewed when the drawdown requests are made. There is no documentation of both the preparer and reviewer signing off on the supporting documents, to ensure these steps are completed by two different individuals. Cause: Supportive Housing Communities, Inc. requires a review of the drawdown requests by the Organization, but there is no policy requiring documentation of the separate preparation and review. Effect: It is possible review is not completed and errors are not caught and corrected timely. Recommendation: We recommend that management implement a policy that both the preparer and reviewer (two separate individuals) of the drawdown requests document each of their sign offs upon completion of their process, including review of the matching requirement. View of Responsible Officials and Planned Corrective Actions: The Organization agrees with the finding. Supportive Housing Communities, Inc. has updated their process to ensure that the preparer of the reimbursement and match documentation will be a different person than the person who draws down funds from the ELOCCS system. The preparer will sign and date the reimbursement packet that is presented to the finance staff for review prior to draw down. A separate person will approve the reimbursement packet and will draw down funds from the ELOCCS system. Name of the Contact Person Responsible for the Corrective Action: Laura Caldwell, President and Chief Executive Officer Planned Completion Date for the Corrective Action Plan: July 15, 2025
Finding 2024-002
Review of Drawdown Requests Federal Agency: U.S. Department of Housing and Urban Development Federal Program: Continuum of Care Program Assistance Listing Number: 14.267 Award Period: July 1, 2023, to June 30, 2024 Type of Finding: Significant Deficiency of Internal Control over Major Federal Program Condition and Criteria: Supportive Housing Communities, Inc. can spend no more than 10 percent of its grants on administrative costs. Additionally, the Organization must match no less than 25% of all grant funds, except for leasing funds. Compliance with these requirements is reviewed when the drawdown requests are made. There is no documentation of both the preparer and reviewer signing off on the supporting documents, to ensure these steps are completed by two different individuals. Cause: Supportive Housing Communities, Inc. requires a review of the drawdown requests by the Organization, but there is no policy requiring documentation of the separate preparation and review. Effect: It is possible review is not completed and errors are not caught and corrected timely. Recommendation: We recommend that management implement a policy that both the preparer and reviewer (two separate individuals) of the drawdown requests document each of their sign offs upon completion of their process, including review of the matching requirement. View of Responsible Officials and Planned Corrective Actions: The Organization agrees with the finding. Supportive Housing Communities, Inc. has updated their process to ensure that the preparer of the reimbursement and match documentation will be a different person than the person who draws down funds from the ELOCCS system. The preparer will sign and date the reimbursement packet that is presented to the finance staff for review prior to draw down. A separate person will approve the reimbursement packet and will draw down funds from the ELOCCS system. Name of the Contact Person Responsible for the Corrective Action: Laura Caldwell, President and Chief Executive Officer Planned Completion Date for the Corrective Action Plan: July 15, 2025
Finding 2024-002
Review of Drawdown Requests Federal Agency: U.S. Department of Housing and Urban Development Federal Program: Continuum of Care Program Assistance Listing Number: 14.267 Award Period: July 1, 2023, to June 30, 2024 Type of Finding: Significant Deficiency of Internal Control over Major Federal Program Condition and Criteria: Supportive Housing Communities, Inc. can spend no more than 10 percent of its grants on administrative costs. Additionally, the Organization must match no less than 25% of all grant funds, except for leasing funds. Compliance with these requirements is reviewed when the drawdown requests are made. There is no documentation of both the preparer and reviewer signing off on the supporting documents, to ensure these steps are completed by two different individuals. Cause: Supportive Housing Communities, Inc. requires a review of the drawdown requests by the Organization, but there is no policy requiring documentation of the separate preparation and review. Effect: It is possible review is not completed and errors are not caught and corrected timely. Recommendation: We recommend that management implement a policy that both the preparer and reviewer (two separate individuals) of the drawdown requests document each of their sign offs upon completion of their process, including review of the matching requirement. View of Responsible Officials and Planned Corrective Actions: The Organization agrees with the finding. Supportive Housing Communities, Inc. has updated their process to ensure that the preparer of the reimbursement and match documentation will be a different person than the person who draws down funds from the ELOCCS system. The preparer will sign and date the reimbursement packet that is presented to the finance staff for review prior to draw down. A separate person will approve the reimbursement packet and will draw down funds from the ELOCCS system. Name of the Contact Person Responsible for the Corrective Action: Laura Caldwell, President and Chief Executive Officer Planned Completion Date for the Corrective Action Plan: July 15, 2025
Finding 2024-001
Review of Rent Reasonableness Federal Agency: U.S. Department of Housing and Urban Development Federal Program: Continuum of Care Program Assistance Listing Number: 14.267 Award Period: July 1, 2023 – June 30, 2024 Type of Finding: Significant Deficiency of Internal Control over Major Federal Program Condition and Criteria: Rent reasonableness is completed by a member of the leasing and housing team. The Chief of Housing Operations performs a review of the rent reasonableness documentation. However, there is no documentation of the review and approval. Cause: Supportive Housing Communities, Inc. requires a review of the rent reasonableness by the Chief of Housing Operations, but there is no policy requiring documentation of the review and approval. Effect: It is possible review is not completed and errors are not caught and corrected timely. Recommendation: We recommend that management implement a policy that the Chief of HousingOperations documents their approval to ensure the review and approval have occurred. View of Responsible Officials and Planned Corrective Actions: The Organization agrees with thefinding. Supportive Housing Communities, Inc. has updated their process for preparing and inspectionof rent costs to ensure that the Chief of Housing Operations reviews all rent reasonablenessdocumentation by signing each form and noting the date of review. Name of the Contact Person Responsible for the Corrective Action: Laura Caldwell, President andChief Executive Officer Planned Completion Date for the Corrective Action Plan: July 15, 2025
Finding 2024-001
Review of Rent Reasonableness Federal Agency: U.S. Department of Housing and Urban Development Federal Program: Continuum of Care Program Assistance Listing Number: 14.267 Award Period: July 1, 2023 – June 30, 2024 Type of Finding: Significant Deficiency of Internal Control over Major Federal Program Condition and Criteria: Rent reasonableness is completed by a member of the leasing and housing team. The Chief of Housing Operations performs a review of the rent reasonableness documentation. However, there is no documentation of the review and approval. Cause: Supportive Housing Communities, Inc. requires a review of the rent reasonableness by the Chief of Housing Operations, but there is no policy requiring documentation of the review and approval. Effect: It is possible review is not completed and errors are not caught and corrected timely. Recommendation: We recommend that management implement a policy that the Chief of HousingOperations documents their approval to ensure the review and approval have occurred. View of Responsible Officials and Planned Corrective Actions: The Organization agrees with thefinding. Supportive Housing Communities, Inc. has updated their process for preparing and inspectionof rent costs to ensure that the Chief of Housing Operations reviews all rent reasonablenessdocumentation by signing each form and noting the date of review. Name of the Contact Person Responsible for the Corrective Action: Laura Caldwell, President andChief Executive Officer Planned Completion Date for the Corrective Action Plan: July 15, 2025
Finding 2024-001
Review of Rent Reasonableness Federal Agency: U.S. Department of Housing and Urban Development Federal Program: Continuum of Care Program Assistance Listing Number: 14.267 Award Period: July 1, 2023 – June 30, 2024 Type of Finding: Significant Deficiency of Internal Control over Major Federal Program Condition and Criteria: Rent reasonableness is completed by a member of the leasing and housing team. The Chief of Housing Operations performs a review of the rent reasonableness documentation. However, there is no documentation of the review and approval. Cause: Supportive Housing Communities, Inc. requires a review of the rent reasonableness by the Chief of Housing Operations, but there is no policy requiring documentation of the review and approval. Effect: It is possible review is not completed and errors are not caught and corrected timely. Recommendation: We recommend that management implement a policy that the Chief of HousingOperations documents their approval to ensure the review and approval have occurred. View of Responsible Officials and Planned Corrective Actions: The Organization agrees with thefinding. Supportive Housing Communities, Inc. has updated their process for preparing and inspectionof rent costs to ensure that the Chief of Housing Operations reviews all rent reasonablenessdocumentation by signing each form and noting the date of review. Name of the Contact Person Responsible for the Corrective Action: Laura Caldwell, President andChief Executive Officer Planned Completion Date for the Corrective Action Plan: July 15, 2025
Finding 2024-002
Review of Drawdown Requests Federal Agency: U.S. Department of Housing and Urban Development Federal Program: Continuum of Care Program Assistance Listing Number: 14.267 Award Period: July 1, 2023, to June 30, 2024 Type of Finding: Significant Deficiency of Internal Control over Major Federal Program Condition and Criteria: Supportive Housing Communities, Inc. can spend no more than 10 percent of its grants on administrative costs. Additionally, the Organization must match no less than 25% of all grant funds, except for leasing funds. Compliance with these requirements is reviewed when the drawdown requests are made. There is no documentation of both the preparer and reviewer signing off on the supporting documents, to ensure these steps are completed by two different individuals. Cause: Supportive Housing Communities, Inc. requires a review of the drawdown requests by the Organization, but there is no policy requiring documentation of the separate preparation and review. Effect: It is possible review is not completed and errors are not caught and corrected timely. Recommendation: We recommend that management implement a policy that both the preparer and reviewer (two separate individuals) of the drawdown requests document each of their sign offs upon completion of their process, including review of the matching requirement. View of Responsible Officials and Planned Corrective Actions: The Organization agrees with the finding. Supportive Housing Communities, Inc. has updated their process to ensure that the preparer of the reimbursement and match documentation will be a different person than the person who draws down funds from the ELOCCS system. The preparer will sign and date the reimbursement packet that is presented to the finance staff for review prior to draw down. A separate person will approve the reimbursement packet and will draw down funds from the ELOCCS system. Name of the Contact Person Responsible for the Corrective Action: Laura Caldwell, President and Chief Executive Officer Planned Completion Date for the Corrective Action Plan: July 15, 2025
Finding 2024-002
Review of Drawdown Requests Federal Agency: U.S. Department of Housing and Urban Development Federal Program: Continuum of Care Program Assistance Listing Number: 14.267 Award Period: July 1, 2023, to June 30, 2024 Type of Finding: Significant Deficiency of Internal Control over Major Federal Program Condition and Criteria: Supportive Housing Communities, Inc. can spend no more than 10 percent of its grants on administrative costs. Additionally, the Organization must match no less than 25% of all grant funds, except for leasing funds. Compliance with these requirements is reviewed when the drawdown requests are made. There is no documentation of both the preparer and reviewer signing off on the supporting documents, to ensure these steps are completed by two different individuals. Cause: Supportive Housing Communities, Inc. requires a review of the drawdown requests by the Organization, but there is no policy requiring documentation of the separate preparation and review. Effect: It is possible review is not completed and errors are not caught and corrected timely. Recommendation: We recommend that management implement a policy that both the preparer and reviewer (two separate individuals) of the drawdown requests document each of their sign offs upon completion of their process, including review of the matching requirement. View of Responsible Officials and Planned Corrective Actions: The Organization agrees with the finding. Supportive Housing Communities, Inc. has updated their process to ensure that the preparer of the reimbursement and match documentation will be a different person than the person who draws down funds from the ELOCCS system. The preparer will sign and date the reimbursement packet that is presented to the finance staff for review prior to draw down. A separate person will approve the reimbursement packet and will draw down funds from the ELOCCS system. Name of the Contact Person Responsible for the Corrective Action: Laura Caldwell, President and Chief Executive Officer Planned Completion Date for the Corrective Action Plan: July 15, 2025
Finding 2024-002
Review of Drawdown Requests Federal Agency: U.S. Department of Housing and Urban Development Federal Program: Continuum of Care Program Assistance Listing Number: 14.267 Award Period: July 1, 2023, to June 30, 2024 Type of Finding: Significant Deficiency of Internal Control over Major Federal Program Condition and Criteria: Supportive Housing Communities, Inc. can spend no more than 10 percent of its grants on administrative costs. Additionally, the Organization must match no less than 25% of all grant funds, except for leasing funds. Compliance with these requirements is reviewed when the drawdown requests are made. There is no documentation of both the preparer and reviewer signing off on the supporting documents, to ensure these steps are completed by two different individuals. Cause: Supportive Housing Communities, Inc. requires a review of the drawdown requests by the Organization, but there is no policy requiring documentation of the separate preparation and review. Effect: It is possible review is not completed and errors are not caught and corrected timely. Recommendation: We recommend that management implement a policy that both the preparer and reviewer (two separate individuals) of the drawdown requests document each of their sign offs upon completion of their process, including review of the matching requirement. View of Responsible Officials and Planned Corrective Actions: The Organization agrees with the finding. Supportive Housing Communities, Inc. has updated their process to ensure that the preparer of the reimbursement and match documentation will be a different person than the person who draws down funds from the ELOCCS system. The preparer will sign and date the reimbursement packet that is presented to the finance staff for review prior to draw down. A separate person will approve the reimbursement packet and will draw down funds from the ELOCCS system. Name of the Contact Person Responsible for the Corrective Action: Laura Caldwell, President and Chief Executive Officer Planned Completion Date for the Corrective Action Plan: July 15, 2025