2025-004: Subrecipient Monitoring (Continued) Condition and context: In relation to Continuum of Care Program (AL # 14.267), the Alliance did not complete the required monitoring responsibilities, specifically: 1. Ensuring that every subaward is clearly identified to the subrecipient as a subaward, which is required to include Federal award identification, requirements of the subaward, any additional requirements imposed, indirect cost rate detail, a requirement that subrecipient permit the pass-through entity and auditors to access the subrecipient’s records and financial statements for the pass-through entity to fulfill its monitoring requirements and appropriate terms and conditions concerning the closeout of the subaward. There were no subaward contracts for the period October 1, 2023 to September 30, 2024. Subaward contracts for the period October 1, 2024 to September 30, 2025 did not include all required items. 2. Monitoring the activities of a subrecipient as necessary to ensure that the subrecipient complies with Federal statutes, regulations, and the terms and conditions of the subaward including: Reviewing financial and performance reports, ensuring that the subrecipient takes corrective action on all significant developments that negatively affect the subaward, issuing a management decision for audit findings pertaining only to the Federal award, and resolving audit findings specifically related to the subaward. The subrecipient received a significant deficiency and compliance finding in their June 30, 2024 single audit noting that there was no rent calculation worksheet present for one of the individuals tested to indicate income in order to ensure program income portions are being appropriately calculated. The Alliance did not obtain the single audit report, nor resolve the finding specifically related to the subaward. As such, there were limited indications that the Alliance monitored the activities of a subrecipient as necessary to ensure that the subrecipient complies with Federal statutes, regulations, and the terms and conditions of the subaward. 3. Verifying that a subrecipient is audited as required by CFR, which the Alliance did not verify. Cause: The cause is due to limited internal controls related to subrecipient monitoring Effect or potential effect: Without adequate controls over this process, the subrecipient may not be complying with Federal statutes, regulations, and the terms and conditions of the subaward. Questioned costs: None. Identification as a repeat finding, if applicable: Not applicable Recommendation: The Alliance must assign individuals who are experienced and knowledgeable in the compliance requirements of the Uniform Guidance to monitor all subawards to ensure that the Alliance has met the applicable compliance and reporting requirements of each federal award. Views of responsible officials: Refer to the Corrective Action Plan prepared by the Alliance in regard to this matter.
2025-005: Matching Requirement Identification of the federal program: Continuum of Care Program (AL # 14.267) Criteria or specific requirement: In accordance with the Continuum of Care Program (AL # 14.267) grant agreement, the recipient or the subrecipient must match all grant funds, except for leasing funds, with not less than 25% of cash or in-kind contributions from other sources. Condition and context: The Alliance did not receive documentation that the subrecipient matched the required grant funds. Additionally, documentation for the Alliance’s match did not adequately indicate that such funds were related the Continuum of Care Program (AL # 14.267) grant. Cause: The cause is due to limited internal controls related to the requirements of the match. Effect or potential effect: Verification that the match has been met is not possible with the supporting documentation. Questioned costs: None. Identification as a repeat finding, if applicable: Not applicable Recommendation: The Alliance must assign individuals who are experienced and knowledgeable in compliance requirements of the Uniform Guidance to ensure that adequate documentation is received related the matching requirement. Views of responsible officials: Refer to the Corrective Action Plan prepared by the Alliance in regard to this matter.
2025-002: Allocation of Costs Other Than Payroll Criteria or specific requirement: In accordance with Title 2 U.S. Code of Federal Regulations (CFR) Part 200.414, the Alliance must allocate indirect costs appropriately. Condition and context: The Alliance allocates certain shared costs, other than payroll, using an approach that details the full-time equivalents performing work on each grant. During the year ended June 30, 2025, costs were allocated using a schedule that did not agree to actual underlying payroll data. Cause: The NetSuite program, used to ensure that the proper allocations were used, was not reviewed for an error in the program that did not adequately account for the addition of new grants which slightly changed some allocations of space costs Effect or potential effect: Without adequate controls over this process, the Alliance could incorrectly charge costs to federal grants. Questioned costs: None. Identification as a repeat finding, if applicable: This is a repeat finding. Recommendation: The Alliance should ensure that internal control processes for the allocation of costs are consistently followed. A review process should be in place to ensure that accurate allocations are used. During the fiscal year ending June 30, 2025, the Alliance has implemented the use of the de minimis cost rate, which will alleviate the need to create an allocation approach for shared costs. Views of responsible officials: Refer to the Corrective Action Plan prepared by the Alliance in regard to this matter.
2025-003: Accurate and Complete Schedule of Expenditures of Federal Awards (SEFA) Criteria or specific requirement: The Alliance must prepare a SEFA that is accurate and complete in accordance with 2 CFR 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Condition and context: The Alliance did not prepare a SEFA that was accurate and complete in accordance with the Uniform Guidance, as the unadjusted totals for federal expenditures were not accurate and did not agree to underlying support. In addition, an immaterial amount of allowable expenses were included on the 2025 SEFA, that should have been included on the 2024 SEFA. Cause: The cause is due to limited internal controls related to the preparation and review of the SEFA. Effect or potential effect: Without adequate controls over this process, the Alliance may not identify all federal awards received and related compliance and reporting requirements applicable to each award. Questioned costs: None. Identification as a repeat finding, if applicable: This is a repeat finding. Recommendation: The Alliance must assign individuals who are experienced and knowledgeable in the compliance requirements of the Uniform Guidance to monitor all federal grants received to ensure that the Alliance has met the applicable compliance and reporting requirements of each federal award. Views of responsible officials: Refer to the Corrective Action Plan prepared by the Alliance in regard to this matter. 2025-004: Subrecipient Monitoring Identification of the federal program: Continuum of Care Program (AL # 14.267) Criteria or specific requirement: In accordance with Title 2 U.S. Code of Federal Regulations (CFR) Part 200.332, the Alliance must perform specific monitoring over subrecipients. The Alliance as the pass-through entity (PTE) is responsible for monitoring the overall performance of a subrecipient to ensure that the goals and objectives of the subaward are achieved.