FAC Explorer

Audit 38718

FY End
2022-12-31
Total Expended
$3.96M
Findings
4
Programs
9
Organization: Honor Ehg INC (NY)
Year: 2022 Accepted: 2023-08-15
Auditor: Rbt CPAS LLP

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
48124 2022-001 Significant Deficiency - N
48125 2022-002 - - N
624566 2022-001 Significant Deficiency - N
624567 2022-002 - - N

Programs

ALN Program Spent Major Findings
93.558 Temporary Assistance for Needy Families $1.96M Yes 0
14.267 Continuum of Care Program $759,092 Yes 2
14.231 Emergency Solutions Grant Program $700,437 - 0
93.667 Social Services Block Grant $151,993 - 0
93.623 Basic Center Grant $150,000 - 0
10.558 Child and Adult Care Food Program $105,912 - 0
93.658 Foster Care_title IV-E $71,365 - 0
97.024 Emergency Food and Shelter National Board Program $57,000 - 0
14.239 Home Investment Partnerships Program $8,990 - 0

Contacts

Name Title Type
MCNVH8MKQ1K1 Kathleen Morgan Auditee
8453437115 Rebecca Reynolds Auditor
No contacts on file

Notes to SEFA

Title: Note 3 Nonmonetary Assistance Accounting Policies: Expenditures reported in the SEFA 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: N Rate Explanation: The auditee did not use the de minimis cost rate. Nonmonetary assistance is reported in the Schedule based on the amount disbursed or received. The Organization received no nonmonetary assistance for the year ended December 31, 2022.
Title: Note 4 Reconciliation to Financial Statements Accounting Policies: Expenditures reported in the SEFA 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: N Rate Explanation: The auditee did not use the de minimis cost rate. The federal expenditures presented in the Schedule reconcile to the Grant Support revenue reported in the Statement of Activities as follows: Federal Expenditures as reported in the SEFA $3,961,224. Reconciling items: Unspent Federal Awards (Restricted) $528,585, Grants from other non-federal sources $1,799,298. Grant support as reported in the Statement of Activities $6,289,107.

Finding Details

Finding 2022-001
2022-001 Rent Reasonableness Controls. Condition: HONOR ehg Inc. rents paid for tenants within COC program exceeded Fair Market Rental Rates published by HUD. Criteria: Per 2 CFR part 200, Appendix IX, Compliance Supplement, rents paid must be reasonable in relation to rents being charged for comparable units taking into account relevant features. In addition, rents may not exceed rents currently being charges by the same owner for comparable unassisted units, and the portion of rents paid with grant funds may not exceed HUD-determined fair market rents. Grant funds in the amount of 1 months rent may be used to pay the non-recipient landlord for any damages to leased units by home less participants. Context: 2 of 9 tenants selected rental payments exceeded HUD published Fair Market Rents based on location and unit type. 1 tenant selected has no documentation related to unit type to determine fair market rent applicability. 1 tenant selected had a security deposit that exceeded 1 months rent. Cause: HONOR ehg, Inc. does not perform rent reasonableness testing annual and does not track tenant portion of rents due. Effect: Honor is not in compliance with the Continuum of Care Reasonable Rental Rates component. Recommendation: We recommend that HONOR ehg Inc. perform annual rent reasonableness certifications on all tenants whose rent is paid by COC funding. Rent reasonableness certification should document comparable rental units in the area, cost of other rental units from the same landlord and that the rent portion funded by COC funds is at or below the Fair Market Rent published annually.
Finding 2022-002
2022-002 Special Tests and Provisions Continuum of Care. Condition: HONOR ehg Inc. had no recorded of or did not perform controls over reasonable rental rates in 2022. ??Criteria: Per 2 CFR part 200, Appendix IX, Compliance Supplement, rents paid must be reasonable in relation to rents being charged for comparable units taking into account relevant features. In addition, rents may not exceed rents currently being charges by the same owner for comparable unassisted units, and the portion of rents paid with grant funds may not exceed HUD-determined fair market rents. Grant funds in the amount of 1 months rent may be used to pay the non-recipient landlord for any damages to leased units by home less participants. Context: 8 of 9 tenants selected did not have Rent Reasonableness Certifications performed per HONOR's policy in 2022. Cause: HONOR ehg, Inc. did not perform rent reasonableness certifications annually and the Finance department does not track tenant portion of rents due. Effect: Due to lack of controls, Honor was not in compliance with the Continuum of Care Reasonable Rental Rates component. Recommendation: We recommend that HONOR ehg Inc. perform annual rent reasonableness certifications on all tenants whose rent is paid by COC funding. Rent reasonableness Certifications should document comparable rental units in the area, cost of other rental units from the same landlord and that the rent portion funded by COC funds is at or below the Fair Market Rent published annually.
Finding 2022-001
2022-001 Rent Reasonableness Controls. Condition: HONOR ehg Inc. rents paid for tenants within COC program exceeded Fair Market Rental Rates published by HUD. Criteria: Per 2 CFR part 200, Appendix IX, Compliance Supplement, rents paid must be reasonable in relation to rents being charged for comparable units taking into account relevant features. In addition, rents may not exceed rents currently being charges by the same owner for comparable unassisted units, and the portion of rents paid with grant funds may not exceed HUD-determined fair market rents. Grant funds in the amount of 1 months rent may be used to pay the non-recipient landlord for any damages to leased units by home less participants. Context: 2 of 9 tenants selected rental payments exceeded HUD published Fair Market Rents based on location and unit type. 1 tenant selected has no documentation related to unit type to determine fair market rent applicability. 1 tenant selected had a security deposit that exceeded 1 months rent. Cause: HONOR ehg, Inc. does not perform rent reasonableness testing annual and does not track tenant portion of rents due. Effect: Honor is not in compliance with the Continuum of Care Reasonable Rental Rates component. Recommendation: We recommend that HONOR ehg Inc. perform annual rent reasonableness certifications on all tenants whose rent is paid by COC funding. Rent reasonableness certification should document comparable rental units in the area, cost of other rental units from the same landlord and that the rent portion funded by COC funds is at or below the Fair Market Rent published annually.
Finding 2022-002
2022-002 Special Tests and Provisions Continuum of Care. Condition: HONOR ehg Inc. had no recorded of or did not perform controls over reasonable rental rates in 2022. ??Criteria: Per 2 CFR part 200, Appendix IX, Compliance Supplement, rents paid must be reasonable in relation to rents being charged for comparable units taking into account relevant features. In addition, rents may not exceed rents currently being charges by the same owner for comparable unassisted units, and the portion of rents paid with grant funds may not exceed HUD-determined fair market rents. Grant funds in the amount of 1 months rent may be used to pay the non-recipient landlord for any damages to leased units by home less participants. Context: 8 of 9 tenants selected did not have Rent Reasonableness Certifications performed per HONOR's policy in 2022. Cause: HONOR ehg, Inc. did not perform rent reasonableness certifications annually and the Finance department does not track tenant portion of rents due. Effect: Due to lack of controls, Honor was not in compliance with the Continuum of Care Reasonable Rental Rates component. Recommendation: We recommend that HONOR ehg Inc. perform annual rent reasonableness certifications on all tenants whose rent is paid by COC funding. Rent reasonableness Certifications should document comparable rental units in the area, cost of other rental units from the same landlord and that the rent portion funded by COC funds is at or below the Fair Market Rent published annually.