Audit 371940

CRITERIA: The Schedule of Expenditures of Federal Awards is required to include all expenditures of Federal funds, including those used for capital projects. CONDITION: Management did not include the Homekey awards in its Schedule of Expenditures of Federal Awards. The Homekey and related Los Angeles County awards were funded under 21.027. CAUSE: The Schedule of Expenditures of Federal Awards did not include all grants and was not reviewed by a second individual. EFFECT OR POTENTIAL EFFECT: Management's Schedule of Expenditures of Federal Awards was incomplete and required material adjustments. RECOMMENDATION: Management should prepare a summary sheet for each significant grant agreement to track its major terms, including whether the grant included Federal funds. This sheet should be reviewed by someone other than the preparer and should be utilized in preparing the Schedule of Expenditures of Federal Awards at the end of the year. VIEW OF RESPONSIBLE OFFICIAL: We will ensure all amounts are included in the future.

CRITERIA: Under the Uniform Guidance, specifically 2 CFR 200.320, an organization must have and use documented procurement procedures. This includes a requirement to maintain the procurement documents. CONDITION: Formal documentation of the procurement process was unavailable for certain vendors. Management was able to provide a list of which contractors were considered for the project. CONTEXT: The Organization has undertaken several construction projects under California's Project HomeKey program, which includes Federal funds. The HomeKey program was intended to rapidly convert motels into permanent housing and management was required to select and engage architects and contractors quickly. EFFECT OR POTENTIAL EFFECT: Management was unable to produce documentation of selection of one of its general contractors. QUESTIONED COST: None RECOMMENDATION: Management was unable to produce documentation of selection of one of its general contractors. VIEWS OF RESPONSIBLE OFFICIALS: Management should revise its documentation system to allow for centralized and accessible storage of support for its vendor procurement process.