Audit 39680

FY End
2022-06-30
Total Expended
$12.71M
Findings
8
Programs
11
Year: 2022 Accepted: 2023-03-30
Auditor: Cohnreznick LLP

Organization Exclusion Status:

Checking exclusion status...

Findings

ID Ref Severity Repeat Requirement
42574 2022-001 Significant Deficiency - E
42575 2022-001 Significant Deficiency - E
42576 2022-001 Significant Deficiency - E
42577 2022-001 Significant Deficiency - E
619016 2022-001 Significant Deficiency - E
619017 2022-001 Significant Deficiency - E
619018 2022-001 Significant Deficiency - E
619019 2022-001 Significant Deficiency - E

Contacts

Name Title Type
WUS2DMCT5RG7 Jacquelyn Kilmer Auditee
2128032899 Gil Bernhard Auditor
No contacts on file

Notes to SEFA

Title: Basis of Presentation Accounting Policies: Expenditures reported on the Schedule 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. The Organization elected not to use the 10-precent de minimis indirect cost rate as allowed under the Uniform Guidance. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. The accompanying schedule of expenditures of federal awards (the "Schedule") includes the federal award activity of Harlem United Community AIDS Center, Inc. and Affiliates (the "Organization") under programs of the federal government for the year ended June 30, 2022. 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"). Because the Schedule presents only a selected portion of the operations of the Organization, it is not intended to and does not present the financial position, changes in net assets or cash flows of the Organization.The Organization's consolidated financial statements include the operations of North General AIDS Housing Development Fund Corporation, which received federal awards that are not included in the Schedule for the year ended June 30, 2022. The Schedule does not include the federal programs of North General AIDS Housing Development Fund Corporation because the entity issues a separate Uniform Guidance audit.
Title: COVID-19 - Provider Relief Fund and American Rescue Plan (ARP) Accounting Policies: Expenditures reported on the Schedule 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. The Organization elected not to use the 10-precent de minimis indirect cost rate as allowed under the Uniform Guidance. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. For the HHS awards related to the Provider Relief Fund and American Rescue Plan (ARP) Rural Distribution ("PRF") program, HHS has indicated the amounts on the schedule be reported corresponding to reporting requirements of the HRSA PRF Reporting Portal. Payments from HHS for PRF are assigned to 'Payment Received Periods' (each, a Period) based upon the date each payment from the PRF was received. Each Period has a specified Period of Availability and timing of reporting requirements. Entities report into the HRSA PRF Reporting Portal after each Period's deadline to use the funds (i.e., after the end of the Period of Availability). The schedule includes $538,954 received from HHS between April 10, 2020 through June 30, 2021. In accordance with guidance from HHS, this amount is presented as Period 1 in the HRSA PRF Reporting portal. Such amount was recognized as part of other revenue in the financial statements in the year ended June 30, 2022.

Finding Details

U.S. Department of Health and Human Services, Temporary Assistance for Needy Families (Assistance Listing Number 93.558) Item 2022-001 - Eligibility Criteria Supportive housing and ancillary services is provided to eligible individuals or families (clients). All clients must be referred by either Human Resources Administration or Department of Homeless Services (DHS), and depending on the type of supportive housing needed, clients must be either with HIV/AIDS, veteran, medically eligible or homeless families with child/children. The Organization?s employees are required to follow the established processes and policies to determine eligibility of the clients. Statement of Condition and Context During our test of compliance related to eligibility, it was noted that 5 out of 25 samples tested did not have the required intake assessment package and did not have the referral from DHS. Moreover, 9 out of 25 samples tested, did not have an independent living plan document which should be completed within 48 hours of client admittance to the program. Questioned Costs None. Cause The condition can be attributed to human error and the lack of internal controls to review and ensure that required documentation is being maintained and applied. Effect Without proper support and approval, although a client is eligible to receive supportive housing under the program, there is no documented evidence that clients are rightful recipients of supportive housing. It allows the opportunity for ineligible clients to be awarded the supportive housing. Identification as a Repeat Finding No. Recommendation We recommend that management implement controls to maintain all the documentation required for determining eligibility of supportive housing clients. These documents should, at a minimum, include the referral letter from Human Resource Administration or Department of Homeless Services, completed intake assessment package that show client's income, status as to whether they are veteran or not, medically eligible, homeless or at risk of being homeless, or families with children, and an independent living plan. Views of responsible official Management has ensured that under the new management team at the New Broadway shelter, all required documentation is being maintained and filed on-site, including referral letters, completed intake assessments, and independent living plans. To ensure compliance, management is conducting regular self-audits, to occur at least quarterly, to verify that these documents have been completed and are readily available for all active clients. In addition, management is scanning these required documents and saving them to an internal shared drive for easy access.
U.S. Department of Health and Human Services, Temporary Assistance for Needy Families (Assistance Listing Number 93.558) Item 2022-001 - Eligibility Criteria Supportive housing and ancillary services is provided to eligible individuals or families (clients). All clients must be referred by either Human Resources Administration or Department of Homeless Services (DHS), and depending on the type of supportive housing needed, clients must be either with HIV/AIDS, veteran, medically eligible or homeless families with child/children. The Organization?s employees are required to follow the established processes and policies to determine eligibility of the clients. Statement of Condition and Context During our test of compliance related to eligibility, it was noted that 5 out of 25 samples tested did not have the required intake assessment package and did not have the referral from DHS. Moreover, 9 out of 25 samples tested, did not have an independent living plan document which should be completed within 48 hours of client admittance to the program. Questioned Costs None. Cause The condition can be attributed to human error and the lack of internal controls to review and ensure that required documentation is being maintained and applied. Effect Without proper support and approval, although a client is eligible to receive supportive housing under the program, there is no documented evidence that clients are rightful recipients of supportive housing. It allows the opportunity for ineligible clients to be awarded the supportive housing. Identification as a Repeat Finding No. Recommendation We recommend that management implement controls to maintain all the documentation required for determining eligibility of supportive housing clients. These documents should, at a minimum, include the referral letter from Human Resource Administration or Department of Homeless Services, completed intake assessment package that show client's income, status as to whether they are veteran or not, medically eligible, homeless or at risk of being homeless, or families with children, and an independent living plan. Views of responsible official Management has ensured that under the new management team at the New Broadway shelter, all required documentation is being maintained and filed on-site, including referral letters, completed intake assessments, and independent living plans. To ensure compliance, management is conducting regular self-audits, to occur at least quarterly, to verify that these documents have been completed and are readily available for all active clients. In addition, management is scanning these required documents and saving them to an internal shared drive for easy access.
U.S. Department of Health and Human Services, Temporary Assistance for Needy Families (Assistance Listing Number 93.558) Item 2022-001 - Eligibility Criteria Supportive housing and ancillary services is provided to eligible individuals or families (clients). All clients must be referred by either Human Resources Administration or Department of Homeless Services (DHS), and depending on the type of supportive housing needed, clients must be either with HIV/AIDS, veteran, medically eligible or homeless families with child/children. The Organization?s employees are required to follow the established processes and policies to determine eligibility of the clients. Statement of Condition and Context During our test of compliance related to eligibility, it was noted that 5 out of 25 samples tested did not have the required intake assessment package and did not have the referral from DHS. Moreover, 9 out of 25 samples tested, did not have an independent living plan document which should be completed within 48 hours of client admittance to the program. Questioned Costs None. Cause The condition can be attributed to human error and the lack of internal controls to review and ensure that required documentation is being maintained and applied. Effect Without proper support and approval, although a client is eligible to receive supportive housing under the program, there is no documented evidence that clients are rightful recipients of supportive housing. It allows the opportunity for ineligible clients to be awarded the supportive housing. Identification as a Repeat Finding No. Recommendation We recommend that management implement controls to maintain all the documentation required for determining eligibility of supportive housing clients. These documents should, at a minimum, include the referral letter from Human Resource Administration or Department of Homeless Services, completed intake assessment package that show client's income, status as to whether they are veteran or not, medically eligible, homeless or at risk of being homeless, or families with children, and an independent living plan. Views of responsible official Management has ensured that under the new management team at the New Broadway shelter, all required documentation is being maintained and filed on-site, including referral letters, completed intake assessments, and independent living plans. To ensure compliance, management is conducting regular self-audits, to occur at least quarterly, to verify that these documents have been completed and are readily available for all active clients. In addition, management is scanning these required documents and saving them to an internal shared drive for easy access.
U.S. Department of Health and Human Services, Temporary Assistance for Needy Families (Assistance Listing Number 93.558) Item 2022-001 - Eligibility Criteria Supportive housing and ancillary services is provided to eligible individuals or families (clients). All clients must be referred by either Human Resources Administration or Department of Homeless Services (DHS), and depending on the type of supportive housing needed, clients must be either with HIV/AIDS, veteran, medically eligible or homeless families with child/children. The Organization?s employees are required to follow the established processes and policies to determine eligibility of the clients. Statement of Condition and Context During our test of compliance related to eligibility, it was noted that 5 out of 25 samples tested did not have the required intake assessment package and did not have the referral from DHS. Moreover, 9 out of 25 samples tested, did not have an independent living plan document which should be completed within 48 hours of client admittance to the program. Questioned Costs None. Cause The condition can be attributed to human error and the lack of internal controls to review and ensure that required documentation is being maintained and applied. Effect Without proper support and approval, although a client is eligible to receive supportive housing under the program, there is no documented evidence that clients are rightful recipients of supportive housing. It allows the opportunity for ineligible clients to be awarded the supportive housing. Identification as a Repeat Finding No. Recommendation We recommend that management implement controls to maintain all the documentation required for determining eligibility of supportive housing clients. These documents should, at a minimum, include the referral letter from Human Resource Administration or Department of Homeless Services, completed intake assessment package that show client's income, status as to whether they are veteran or not, medically eligible, homeless or at risk of being homeless, or families with children, and an independent living plan. Views of responsible official Management has ensured that under the new management team at the New Broadway shelter, all required documentation is being maintained and filed on-site, including referral letters, completed intake assessments, and independent living plans. To ensure compliance, management is conducting regular self-audits, to occur at least quarterly, to verify that these documents have been completed and are readily available for all active clients. In addition, management is scanning these required documents and saving them to an internal shared drive for easy access.
U.S. Department of Health and Human Services, Temporary Assistance for Needy Families (Assistance Listing Number 93.558) Item 2022-001 - Eligibility Criteria Supportive housing and ancillary services is provided to eligible individuals or families (clients). All clients must be referred by either Human Resources Administration or Department of Homeless Services (DHS), and depending on the type of supportive housing needed, clients must be either with HIV/AIDS, veteran, medically eligible or homeless families with child/children. The Organization?s employees are required to follow the established processes and policies to determine eligibility of the clients. Statement of Condition and Context During our test of compliance related to eligibility, it was noted that 5 out of 25 samples tested did not have the required intake assessment package and did not have the referral from DHS. Moreover, 9 out of 25 samples tested, did not have an independent living plan document which should be completed within 48 hours of client admittance to the program. Questioned Costs None. Cause The condition can be attributed to human error and the lack of internal controls to review and ensure that required documentation is being maintained and applied. Effect Without proper support and approval, although a client is eligible to receive supportive housing under the program, there is no documented evidence that clients are rightful recipients of supportive housing. It allows the opportunity for ineligible clients to be awarded the supportive housing. Identification as a Repeat Finding No. Recommendation We recommend that management implement controls to maintain all the documentation required for determining eligibility of supportive housing clients. These documents should, at a minimum, include the referral letter from Human Resource Administration or Department of Homeless Services, completed intake assessment package that show client's income, status as to whether they are veteran or not, medically eligible, homeless or at risk of being homeless, or families with children, and an independent living plan. Views of responsible official Management has ensured that under the new management team at the New Broadway shelter, all required documentation is being maintained and filed on-site, including referral letters, completed intake assessments, and independent living plans. To ensure compliance, management is conducting regular self-audits, to occur at least quarterly, to verify that these documents have been completed and are readily available for all active clients. In addition, management is scanning these required documents and saving them to an internal shared drive for easy access.
U.S. Department of Health and Human Services, Temporary Assistance for Needy Families (Assistance Listing Number 93.558) Item 2022-001 - Eligibility Criteria Supportive housing and ancillary services is provided to eligible individuals or families (clients). All clients must be referred by either Human Resources Administration or Department of Homeless Services (DHS), and depending on the type of supportive housing needed, clients must be either with HIV/AIDS, veteran, medically eligible or homeless families with child/children. The Organization?s employees are required to follow the established processes and policies to determine eligibility of the clients. Statement of Condition and Context During our test of compliance related to eligibility, it was noted that 5 out of 25 samples tested did not have the required intake assessment package and did not have the referral from DHS. Moreover, 9 out of 25 samples tested, did not have an independent living plan document which should be completed within 48 hours of client admittance to the program. Questioned Costs None. Cause The condition can be attributed to human error and the lack of internal controls to review and ensure that required documentation is being maintained and applied. Effect Without proper support and approval, although a client is eligible to receive supportive housing under the program, there is no documented evidence that clients are rightful recipients of supportive housing. It allows the opportunity for ineligible clients to be awarded the supportive housing. Identification as a Repeat Finding No. Recommendation We recommend that management implement controls to maintain all the documentation required for determining eligibility of supportive housing clients. These documents should, at a minimum, include the referral letter from Human Resource Administration or Department of Homeless Services, completed intake assessment package that show client's income, status as to whether they are veteran or not, medically eligible, homeless or at risk of being homeless, or families with children, and an independent living plan. Views of responsible official Management has ensured that under the new management team at the New Broadway shelter, all required documentation is being maintained and filed on-site, including referral letters, completed intake assessments, and independent living plans. To ensure compliance, management is conducting regular self-audits, to occur at least quarterly, to verify that these documents have been completed and are readily available for all active clients. In addition, management is scanning these required documents and saving them to an internal shared drive for easy access.
U.S. Department of Health and Human Services, Temporary Assistance for Needy Families (Assistance Listing Number 93.558) Item 2022-001 - Eligibility Criteria Supportive housing and ancillary services is provided to eligible individuals or families (clients). All clients must be referred by either Human Resources Administration or Department of Homeless Services (DHS), and depending on the type of supportive housing needed, clients must be either with HIV/AIDS, veteran, medically eligible or homeless families with child/children. The Organization?s employees are required to follow the established processes and policies to determine eligibility of the clients. Statement of Condition and Context During our test of compliance related to eligibility, it was noted that 5 out of 25 samples tested did not have the required intake assessment package and did not have the referral from DHS. Moreover, 9 out of 25 samples tested, did not have an independent living plan document which should be completed within 48 hours of client admittance to the program. Questioned Costs None. Cause The condition can be attributed to human error and the lack of internal controls to review and ensure that required documentation is being maintained and applied. Effect Without proper support and approval, although a client is eligible to receive supportive housing under the program, there is no documented evidence that clients are rightful recipients of supportive housing. It allows the opportunity for ineligible clients to be awarded the supportive housing. Identification as a Repeat Finding No. Recommendation We recommend that management implement controls to maintain all the documentation required for determining eligibility of supportive housing clients. These documents should, at a minimum, include the referral letter from Human Resource Administration or Department of Homeless Services, completed intake assessment package that show client's income, status as to whether they are veteran or not, medically eligible, homeless or at risk of being homeless, or families with children, and an independent living plan. Views of responsible official Management has ensured that under the new management team at the New Broadway shelter, all required documentation is being maintained and filed on-site, including referral letters, completed intake assessments, and independent living plans. To ensure compliance, management is conducting regular self-audits, to occur at least quarterly, to verify that these documents have been completed and are readily available for all active clients. In addition, management is scanning these required documents and saving them to an internal shared drive for easy access.
U.S. Department of Health and Human Services, Temporary Assistance for Needy Families (Assistance Listing Number 93.558) Item 2022-001 - Eligibility Criteria Supportive housing and ancillary services is provided to eligible individuals or families (clients). All clients must be referred by either Human Resources Administration or Department of Homeless Services (DHS), and depending on the type of supportive housing needed, clients must be either with HIV/AIDS, veteran, medically eligible or homeless families with child/children. The Organization?s employees are required to follow the established processes and policies to determine eligibility of the clients. Statement of Condition and Context During our test of compliance related to eligibility, it was noted that 5 out of 25 samples tested did not have the required intake assessment package and did not have the referral from DHS. Moreover, 9 out of 25 samples tested, did not have an independent living plan document which should be completed within 48 hours of client admittance to the program. Questioned Costs None. Cause The condition can be attributed to human error and the lack of internal controls to review and ensure that required documentation is being maintained and applied. Effect Without proper support and approval, although a client is eligible to receive supportive housing under the program, there is no documented evidence that clients are rightful recipients of supportive housing. It allows the opportunity for ineligible clients to be awarded the supportive housing. Identification as a Repeat Finding No. Recommendation We recommend that management implement controls to maintain all the documentation required for determining eligibility of supportive housing clients. These documents should, at a minimum, include the referral letter from Human Resource Administration or Department of Homeless Services, completed intake assessment package that show client's income, status as to whether they are veteran or not, medically eligible, homeless or at risk of being homeless, or families with children, and an independent living plan. Views of responsible official Management has ensured that under the new management team at the New Broadway shelter, all required documentation is being maintained and filed on-site, including referral letters, completed intake assessments, and independent living plans. To ensure compliance, management is conducting regular self-audits, to occur at least quarterly, to verify that these documents have been completed and are readily available for all active clients. In addition, management is scanning these required documents and saving them to an internal shared drive for easy access.