Audit 380469

Material Weakness in Internal Controls over Compliance for Special Tests and Provisions Information on the Federal Program: U.S. Department of Housing and Urban Development, Continuum of Care Program Assistance Listing No. 14.267, Grant Agreement Nos. NE0146D7D002100 and NE0146D7D002302. Criteria: SAS 115 requires communication, in writing, to management and those charged with governance, of material weaknesses identified in an audit. Condition: For one transaction selected for testing, the Organization was unable to provide documentation for preparation and approval of a form that was identified as a key control in the Organization’s policies. Cause: A breakdown in the Organization’s internal controls over special tests and provisions caused the Organization to be unable to provide support for the selected transaction. Effect or Potential Effect: The control deficiency is a material weakness that results in a reasonable possibility that a material misstatement of the financial statements will not be prevented, or detected and corrected, on a timely basis. Identification of a Repeat Finding: New finding. Recommendation: The Organization review its internal control over special tests and provisions and implement changed in order to document compliance with required internal control standards. Responsible Official’s Response: The Organization has updated its policies and procedures to ensure proper approvals are performed and documented.