Audit 45154

FY End
2022-06-30
Total Expended
$2.49M
Findings
14
Programs
9
Organization: Caminar (CA)
Year: 2022 Accepted: 2022-12-07
Auditor: Bpm LLP

Organization Exclusion Status:

Checking exclusion status...

Findings

ID Ref Severity Repeat Requirement
51371 2022-002 Significant Deficiency - L
51372 2022-002 Significant Deficiency - L
51373 2022-002 Significant Deficiency - L
51374 2022-001 Material Weakness - LN
51375 2022-002 Significant Deficiency - L
51376 2022-001 Material Weakness - LN
51377 2022-001 Material Weakness - LN
627813 2022-002 Significant Deficiency - L
627814 2022-002 Significant Deficiency - L
627815 2022-002 Significant Deficiency - L
627816 2022-001 Material Weakness - LN
627817 2022-002 Significant Deficiency - L
627818 2022-001 Material Weakness - LN
627819 2022-001 Material Weakness - LN

Contacts

Name Title Type
HL73JB1N1WS3 Alex Cheung Auditee
6503938939 Shannon Winter Auditor
No contacts on file

Notes to SEFA

Title: Loan/loan guarantee outstanding balances Accounting Policies: The accompanying Schedule of Expenditures of Federal Awards (the Schedule) includes the federal grant activity of the Organization and is presented on the accrual basis of accounting. The information in this Schedule is presented in accordance with the requirement of the Title 2 U.S. Code of Federal Regulation, Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). The Schedule presents only a selected portion of the operations of the Organization and is not intended to and does not present the financial position, changes in net assets, or cash flows of the Organization. De Minimis Rate Used: Both Rate Explanation: 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 used the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance for their Housing and Urban Development direct awards and used the other negotiated indirect rates for other programs. SUPPORTIVE HOUSING PROGRAM (14.235) Balances outstanding at the end of the audited period were $150,000. HOME INVESTMENT PARTNERSHIP PROGRAM (14.239) - Balances outstanding at the end of the audited period were $250,000. HOME INVESTMENT PARTNERSHIP PROGRAM (14.239) - Balances outstanding at the end of the audited period were $548,105.
Title: Other Notes Accounting Policies: The accompanying Schedule of Expenditures of Federal Awards (the Schedule) includes the federal grant activity of the Organization and is presented on the accrual basis of accounting. The information in this Schedule is presented in accordance with the requirement of the Title 2 U.S. Code of Federal Regulation, Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). The Schedule presents only a selected portion of the operations of the Organization and is not intended to and does not present the financial position, changes in net assets, or cash flows of the Organization. De Minimis Rate Used: Both Rate Explanation: 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 used the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance for their Housing and Urban Development direct awards and used the other negotiated indirect rates for other programs. Pass-Through Awards Pass-through entity identifying numbers are presented where available. Food Subsidies Nonmonentary assistance is reported in the Schedule at the fair value of the commondities received and disbursed. As of June 30, 2022, the Organizastion had no food commondities in inventory.

Finding Details

Information on the Federal Program: Assistance Listing Number 14.267? U.S. Department of Housing and Urban Development ? Office of Community Planning and Development ? Continuum of Care Program. Awarding Entity: Office of Community Planning and Development ? San Francisco Regional Office. Compliance Requirements: Reporting. Type of Finding: Significant Deficiency. Criteria: Program requirements state that required reports for federal awards should include all activities of the reporting period, are supported by applicable accounting or performance records, and are fairly presented in accordance with governing requirements. Condition: For the year ended June 30, 2022, we reviewed the Schedule of Expenses and Federal Awards (?SEFA?) and matched with the general ledger details together with the details per federal grant awards to ascertain those federal expenditures for the year were properly supported and reported. Cause: Program staff used incorrect award number in coding some transactions that occurred near the end of the grant term. Also, the individual preparing the SEFA appeared to copy the Assistance Listing number of previous year?s grant awards for another program under the same awarding entity. Effect or Potential Effect: As a result, the client-prepared SEFA initially submitted for audit needed to be revised to reflect the correct Assistance Listing number and federal expenditures for the year ended June 30, 2022. Context: Upon review of client-prepared SEFA, it was noted there were instances of inaccurate Assistance Listing numbers. In addition, there were incorrect federal expenditures recorded due to certain transactions were coded to the incorrect grant term in the source data (i.e., the general ledger details) and due to understatements of certain reimbursable expenses, resulting in variances between the Organization?s SEFA and the amounts actually billed to federal grant awards. The amounts were reported incorrectly on the SEFA for what was actually billed. Recommendation: We recommend that the Organization ensure consistency between its SEFA and the amounts actually billed to federal grant awards so as to provide an accurate record moving forward. Views of Responsible Official: Management of Caminar concurs with the audit finding. The individual preparing the report has been informed of the proper requirements, and management will perform a quality control review over future report submissions to ensure proper coding.
Information on the Federal Program: Assistance Listing Number 14.267? U.S. Department of Housing and Urban Development ? Office of Community Planning and Development ? Continuum of Care Program. Awarding Entity: Office of Community Planning and Development ? San Francisco Regional Office. Compliance Requirements: Reporting. Type of Finding: Significant Deficiency. Criteria: Program requirements state that required reports for federal awards should include all activities of the reporting period, are supported by applicable accounting or performance records, and are fairly presented in accordance with governing requirements. Condition: For the year ended June 30, 2022, we reviewed the Schedule of Expenses and Federal Awards (?SEFA?) and matched with the general ledger details together with the details per federal grant awards to ascertain those federal expenditures for the year were properly supported and reported. Cause: Program staff used incorrect award number in coding some transactions that occurred near the end of the grant term. Also, the individual preparing the SEFA appeared to copy the Assistance Listing number of previous year?s grant awards for another program under the same awarding entity. Effect or Potential Effect: As a result, the client-prepared SEFA initially submitted for audit needed to be revised to reflect the correct Assistance Listing number and federal expenditures for the year ended June 30, 2022. Context: Upon review of client-prepared SEFA, it was noted there were instances of inaccurate Assistance Listing numbers. In addition, there were incorrect federal expenditures recorded due to certain transactions were coded to the incorrect grant term in the source data (i.e., the general ledger details) and due to understatements of certain reimbursable expenses, resulting in variances between the Organization?s SEFA and the amounts actually billed to federal grant awards. The amounts were reported incorrectly on the SEFA for what was actually billed. Recommendation: We recommend that the Organization ensure consistency between its SEFA and the amounts actually billed to federal grant awards so as to provide an accurate record moving forward. Views of Responsible Official: Management of Caminar concurs with the audit finding. The individual preparing the report has been informed of the proper requirements, and management will perform a quality control review over future report submissions to ensure proper coding.
Information on the Federal Program: Assistance Listing Number 14.267? U.S. Department of Housing and Urban Development ? Office of Community Planning and Development ? Continuum of Care Program. Awarding Entity: Office of Community Planning and Development ? San Francisco Regional Office. Compliance Requirements: Reporting. Type of Finding: Significant Deficiency. Criteria: Program requirements state that required reports for federal awards should include all activities of the reporting period, are supported by applicable accounting or performance records, and are fairly presented in accordance with governing requirements. Condition: For the year ended June 30, 2022, we reviewed the Schedule of Expenses and Federal Awards (?SEFA?) and matched with the general ledger details together with the details per federal grant awards to ascertain those federal expenditures for the year were properly supported and reported. Cause: Program staff used incorrect award number in coding some transactions that occurred near the end of the grant term. Also, the individual preparing the SEFA appeared to copy the Assistance Listing number of previous year?s grant awards for another program under the same awarding entity. Effect or Potential Effect: As a result, the client-prepared SEFA initially submitted for audit needed to be revised to reflect the correct Assistance Listing number and federal expenditures for the year ended June 30, 2022. Context: Upon review of client-prepared SEFA, it was noted there were instances of inaccurate Assistance Listing numbers. In addition, there were incorrect federal expenditures recorded due to certain transactions were coded to the incorrect grant term in the source data (i.e., the general ledger details) and due to understatements of certain reimbursable expenses, resulting in variances between the Organization?s SEFA and the amounts actually billed to federal grant awards. The amounts were reported incorrectly on the SEFA for what was actually billed. Recommendation: We recommend that the Organization ensure consistency between its SEFA and the amounts actually billed to federal grant awards so as to provide an accurate record moving forward. Views of Responsible Official: Management of Caminar concurs with the audit finding. The individual preparing the report has been informed of the proper requirements, and management will perform a quality control review over future report submissions to ensure proper coding.
Information on the Federal Program: Assistance Listing Number 14.267? U.S. Department of Housing and Urban Development ? Office of Community Planning and Development ? Continuum of Care Program. Awarding Entity: Office of Community Planning and Development ? San Francisco Regional Office. Compliance Requirements: Special Tests and Provision, and Reporting. Type of Finding: Material Weakness. Criteria: Program requirements state that where grants are used to pay for rent for all or a part of a structure, the rent paid must be reasonable in relation to rents being charged in the area for comparable space. Further, required reports for federal awards should include all activities of the reporting period, are supported by applicable accounting or performance records, and are fairly presented in accordance with governing requirements. Condition: For the year ended June 30, 2022, we reviewed the Organization?s rent calculation methodology to ascertain that the amounts billed to its tenants are reasonable. Cause: The Organization encountered employee turnover in certain program management position during the year. Effect or Potential Effect: As a result, the entity was not able to provide consistent documentation for our testing procedures over rental reasonableness. Context: Upon examination and review of correspondences provided for program income and rental reasonableness compliance testing purposes, it was noted that the Organization could not provide complete and consistent records for us to test program income compliance area and special tests and provision compliance area, respectively. In addition, it is noted that there were instances of deviation from key control activities such as annual verification of client income and inconsistent application of rent calculation methodology, causing charged client rents that do not correspond to rent calculations or lease agreements. Recommendation: We recommend that the Organization improve its documentation retention for client rent correspondences by adhering to its formal process of record retention system. We also recommend that the Organization adhere to its established key control activities so that potential misstatement and/or noncompliance can be prevented, or detected and corrected, on a timely basis. Views of Responsible Official: Management of Caminar concurs with the audit finding. The individual preparing the report has been informed of the proper requirements, and management will perform a quality control review over future report submissions to ensure key control activities are performed periodically and complete and consistent documentation are retained.
Information on the Federal Program: Assistance Listing Number 14.267? U.S. Department of Housing and Urban Development ? Office of Community Planning and Development ? Continuum of Care Program. Awarding Entity: Office of Community Planning and Development ? San Francisco Regional Office. Compliance Requirements: Reporting. Type of Finding: Significant Deficiency. Criteria: Program requirements state that required reports for federal awards should include all activities of the reporting period, are supported by applicable accounting or performance records, and are fairly presented in accordance with governing requirements. Condition: For the year ended June 30, 2022, we reviewed the Schedule of Expenses and Federal Awards (?SEFA?) and matched with the general ledger details together with the details per federal grant awards to ascertain those federal expenditures for the year were properly supported and reported. Cause: Program staff used incorrect award number in coding some transactions that occurred near the end of the grant term. Also, the individual preparing the SEFA appeared to copy the Assistance Listing number of previous year?s grant awards for another program under the same awarding entity. Effect or Potential Effect: As a result, the client-prepared SEFA initially submitted for audit needed to be revised to reflect the correct Assistance Listing number and federal expenditures for the year ended June 30, 2022. Context: Upon review of client-prepared SEFA, it was noted there were instances of inaccurate Assistance Listing numbers. In addition, there were incorrect federal expenditures recorded due to certain transactions were coded to the incorrect grant term in the source data (i.e., the general ledger details) and due to understatements of certain reimbursable expenses, resulting in variances between the Organization?s SEFA and the amounts actually billed to federal grant awards. The amounts were reported incorrectly on the SEFA for what was actually billed. Recommendation: We recommend that the Organization ensure consistency between its SEFA and the amounts actually billed to federal grant awards so as to provide an accurate record moving forward. Views of Responsible Official: Management of Caminar concurs with the audit finding. The individual preparing the report has been informed of the proper requirements, and management will perform a quality control review over future report submissions to ensure proper coding.
Information on the Federal Program: Assistance Listing Number 14.267? U.S. Department of Housing and Urban Development ? Office of Community Planning and Development ? Continuum of Care Program. Awarding Entity: Office of Community Planning and Development ? San Francisco Regional Office. Compliance Requirements: Special Tests and Provision, and Reporting. Type of Finding: Material Weakness. Criteria: Program requirements state that where grants are used to pay for rent for all or a part of a structure, the rent paid must be reasonable in relation to rents being charged in the area for comparable space. Further, required reports for federal awards should include all activities of the reporting period, are supported by applicable accounting or performance records, and are fairly presented in accordance with governing requirements. Condition: For the year ended June 30, 2022, we reviewed the Organization?s rent calculation methodology to ascertain that the amounts billed to its tenants are reasonable. Cause: The Organization encountered employee turnover in certain program management position during the year. Effect or Potential Effect: As a result, the entity was not able to provide consistent documentation for our testing procedures over rental reasonableness. Context: Upon examination and review of correspondences provided for program income and rental reasonableness compliance testing purposes, it was noted that the Organization could not provide complete and consistent records for us to test program income compliance area and special tests and provision compliance area, respectively. In addition, it is noted that there were instances of deviation from key control activities such as annual verification of client income and inconsistent application of rent calculation methodology, causing charged client rents that do not correspond to rent calculations or lease agreements. Recommendation: We recommend that the Organization improve its documentation retention for client rent correspondences by adhering to its formal process of record retention system. We also recommend that the Organization adhere to its established key control activities so that potential misstatement and/or noncompliance can be prevented, or detected and corrected, on a timely basis. Views of Responsible Official: Management of Caminar concurs with the audit finding. The individual preparing the report has been informed of the proper requirements, and management will perform a quality control review over future report submissions to ensure key control activities are performed periodically and complete and consistent documentation are retained.
Information on the Federal Program: Assistance Listing Number 14.267? U.S. Department of Housing and Urban Development ? Office of Community Planning and Development ? Continuum of Care Program. Awarding Entity: Office of Community Planning and Development ? San Francisco Regional Office. Compliance Requirements: Special Tests and Provision, and Reporting. Type of Finding: Material Weakness. Criteria: Program requirements state that where grants are used to pay for rent for all or a part of a structure, the rent paid must be reasonable in relation to rents being charged in the area for comparable space. Further, required reports for federal awards should include all activities of the reporting period, are supported by applicable accounting or performance records, and are fairly presented in accordance with governing requirements. Condition: For the year ended June 30, 2022, we reviewed the Organization?s rent calculation methodology to ascertain that the amounts billed to its tenants are reasonable. Cause: The Organization encountered employee turnover in certain program management position during the year. Effect or Potential Effect: As a result, the entity was not able to provide consistent documentation for our testing procedures over rental reasonableness. Context: Upon examination and review of correspondences provided for program income and rental reasonableness compliance testing purposes, it was noted that the Organization could not provide complete and consistent records for us to test program income compliance area and special tests and provision compliance area, respectively. In addition, it is noted that there were instances of deviation from key control activities such as annual verification of client income and inconsistent application of rent calculation methodology, causing charged client rents that do not correspond to rent calculations or lease agreements. Recommendation: We recommend that the Organization improve its documentation retention for client rent correspondences by adhering to its formal process of record retention system. We also recommend that the Organization adhere to its established key control activities so that potential misstatement and/or noncompliance can be prevented, or detected and corrected, on a timely basis. Views of Responsible Official: Management of Caminar concurs with the audit finding. The individual preparing the report has been informed of the proper requirements, and management will perform a quality control review over future report submissions to ensure key control activities are performed periodically and complete and consistent documentation are retained.
Information on the Federal Program: Assistance Listing Number 14.267? U.S. Department of Housing and Urban Development ? Office of Community Planning and Development ? Continuum of Care Program. Awarding Entity: Office of Community Planning and Development ? San Francisco Regional Office. Compliance Requirements: Reporting. Type of Finding: Significant Deficiency. Criteria: Program requirements state that required reports for federal awards should include all activities of the reporting period, are supported by applicable accounting or performance records, and are fairly presented in accordance with governing requirements. Condition: For the year ended June 30, 2022, we reviewed the Schedule of Expenses and Federal Awards (?SEFA?) and matched with the general ledger details together with the details per federal grant awards to ascertain those federal expenditures for the year were properly supported and reported. Cause: Program staff used incorrect award number in coding some transactions that occurred near the end of the grant term. Also, the individual preparing the SEFA appeared to copy the Assistance Listing number of previous year?s grant awards for another program under the same awarding entity. Effect or Potential Effect: As a result, the client-prepared SEFA initially submitted for audit needed to be revised to reflect the correct Assistance Listing number and federal expenditures for the year ended June 30, 2022. Context: Upon review of client-prepared SEFA, it was noted there were instances of inaccurate Assistance Listing numbers. In addition, there were incorrect federal expenditures recorded due to certain transactions were coded to the incorrect grant term in the source data (i.e., the general ledger details) and due to understatements of certain reimbursable expenses, resulting in variances between the Organization?s SEFA and the amounts actually billed to federal grant awards. The amounts were reported incorrectly on the SEFA for what was actually billed. Recommendation: We recommend that the Organization ensure consistency between its SEFA and the amounts actually billed to federal grant awards so as to provide an accurate record moving forward. Views of Responsible Official: Management of Caminar concurs with the audit finding. The individual preparing the report has been informed of the proper requirements, and management will perform a quality control review over future report submissions to ensure proper coding.
Information on the Federal Program: Assistance Listing Number 14.267? U.S. Department of Housing and Urban Development ? Office of Community Planning and Development ? Continuum of Care Program. Awarding Entity: Office of Community Planning and Development ? San Francisco Regional Office. Compliance Requirements: Reporting. Type of Finding: Significant Deficiency. Criteria: Program requirements state that required reports for federal awards should include all activities of the reporting period, are supported by applicable accounting or performance records, and are fairly presented in accordance with governing requirements. Condition: For the year ended June 30, 2022, we reviewed the Schedule of Expenses and Federal Awards (?SEFA?) and matched with the general ledger details together with the details per federal grant awards to ascertain those federal expenditures for the year were properly supported and reported. Cause: Program staff used incorrect award number in coding some transactions that occurred near the end of the grant term. Also, the individual preparing the SEFA appeared to copy the Assistance Listing number of previous year?s grant awards for another program under the same awarding entity. Effect or Potential Effect: As a result, the client-prepared SEFA initially submitted for audit needed to be revised to reflect the correct Assistance Listing number and federal expenditures for the year ended June 30, 2022. Context: Upon review of client-prepared SEFA, it was noted there were instances of inaccurate Assistance Listing numbers. In addition, there were incorrect federal expenditures recorded due to certain transactions were coded to the incorrect grant term in the source data (i.e., the general ledger details) and due to understatements of certain reimbursable expenses, resulting in variances between the Organization?s SEFA and the amounts actually billed to federal grant awards. The amounts were reported incorrectly on the SEFA for what was actually billed. Recommendation: We recommend that the Organization ensure consistency between its SEFA and the amounts actually billed to federal grant awards so as to provide an accurate record moving forward. Views of Responsible Official: Management of Caminar concurs with the audit finding. The individual preparing the report has been informed of the proper requirements, and management will perform a quality control review over future report submissions to ensure proper coding.
Information on the Federal Program: Assistance Listing Number 14.267? U.S. Department of Housing and Urban Development ? Office of Community Planning and Development ? Continuum of Care Program. Awarding Entity: Office of Community Planning and Development ? San Francisco Regional Office. Compliance Requirements: Reporting. Type of Finding: Significant Deficiency. Criteria: Program requirements state that required reports for federal awards should include all activities of the reporting period, are supported by applicable accounting or performance records, and are fairly presented in accordance with governing requirements. Condition: For the year ended June 30, 2022, we reviewed the Schedule of Expenses and Federal Awards (?SEFA?) and matched with the general ledger details together with the details per federal grant awards to ascertain those federal expenditures for the year were properly supported and reported. Cause: Program staff used incorrect award number in coding some transactions that occurred near the end of the grant term. Also, the individual preparing the SEFA appeared to copy the Assistance Listing number of previous year?s grant awards for another program under the same awarding entity. Effect or Potential Effect: As a result, the client-prepared SEFA initially submitted for audit needed to be revised to reflect the correct Assistance Listing number and federal expenditures for the year ended June 30, 2022. Context: Upon review of client-prepared SEFA, it was noted there were instances of inaccurate Assistance Listing numbers. In addition, there were incorrect federal expenditures recorded due to certain transactions were coded to the incorrect grant term in the source data (i.e., the general ledger details) and due to understatements of certain reimbursable expenses, resulting in variances between the Organization?s SEFA and the amounts actually billed to federal grant awards. The amounts were reported incorrectly on the SEFA for what was actually billed. Recommendation: We recommend that the Organization ensure consistency between its SEFA and the amounts actually billed to federal grant awards so as to provide an accurate record moving forward. Views of Responsible Official: Management of Caminar concurs with the audit finding. The individual preparing the report has been informed of the proper requirements, and management will perform a quality control review over future report submissions to ensure proper coding.
Information on the Federal Program: Assistance Listing Number 14.267? U.S. Department of Housing and Urban Development ? Office of Community Planning and Development ? Continuum of Care Program. Awarding Entity: Office of Community Planning and Development ? San Francisco Regional Office. Compliance Requirements: Special Tests and Provision, and Reporting. Type of Finding: Material Weakness. Criteria: Program requirements state that where grants are used to pay for rent for all or a part of a structure, the rent paid must be reasonable in relation to rents being charged in the area for comparable space. Further, required reports for federal awards should include all activities of the reporting period, are supported by applicable accounting or performance records, and are fairly presented in accordance with governing requirements. Condition: For the year ended June 30, 2022, we reviewed the Organization?s rent calculation methodology to ascertain that the amounts billed to its tenants are reasonable. Cause: The Organization encountered employee turnover in certain program management position during the year. Effect or Potential Effect: As a result, the entity was not able to provide consistent documentation for our testing procedures over rental reasonableness. Context: Upon examination and review of correspondences provided for program income and rental reasonableness compliance testing purposes, it was noted that the Organization could not provide complete and consistent records for us to test program income compliance area and special tests and provision compliance area, respectively. In addition, it is noted that there were instances of deviation from key control activities such as annual verification of client income and inconsistent application of rent calculation methodology, causing charged client rents that do not correspond to rent calculations or lease agreements. Recommendation: We recommend that the Organization improve its documentation retention for client rent correspondences by adhering to its formal process of record retention system. We also recommend that the Organization adhere to its established key control activities so that potential misstatement and/or noncompliance can be prevented, or detected and corrected, on a timely basis. Views of Responsible Official: Management of Caminar concurs with the audit finding. The individual preparing the report has been informed of the proper requirements, and management will perform a quality control review over future report submissions to ensure key control activities are performed periodically and complete and consistent documentation are retained.
Information on the Federal Program: Assistance Listing Number 14.267? U.S. Department of Housing and Urban Development ? Office of Community Planning and Development ? Continuum of Care Program. Awarding Entity: Office of Community Planning and Development ? San Francisco Regional Office. Compliance Requirements: Reporting. Type of Finding: Significant Deficiency. Criteria: Program requirements state that required reports for federal awards should include all activities of the reporting period, are supported by applicable accounting or performance records, and are fairly presented in accordance with governing requirements. Condition: For the year ended June 30, 2022, we reviewed the Schedule of Expenses and Federal Awards (?SEFA?) and matched with the general ledger details together with the details per federal grant awards to ascertain those federal expenditures for the year were properly supported and reported. Cause: Program staff used incorrect award number in coding some transactions that occurred near the end of the grant term. Also, the individual preparing the SEFA appeared to copy the Assistance Listing number of previous year?s grant awards for another program under the same awarding entity. Effect or Potential Effect: As a result, the client-prepared SEFA initially submitted for audit needed to be revised to reflect the correct Assistance Listing number and federal expenditures for the year ended June 30, 2022. Context: Upon review of client-prepared SEFA, it was noted there were instances of inaccurate Assistance Listing numbers. In addition, there were incorrect federal expenditures recorded due to certain transactions were coded to the incorrect grant term in the source data (i.e., the general ledger details) and due to understatements of certain reimbursable expenses, resulting in variances between the Organization?s SEFA and the amounts actually billed to federal grant awards. The amounts were reported incorrectly on the SEFA for what was actually billed. Recommendation: We recommend that the Organization ensure consistency between its SEFA and the amounts actually billed to federal grant awards so as to provide an accurate record moving forward. Views of Responsible Official: Management of Caminar concurs with the audit finding. The individual preparing the report has been informed of the proper requirements, and management will perform a quality control review over future report submissions to ensure proper coding.
Information on the Federal Program: Assistance Listing Number 14.267? U.S. Department of Housing and Urban Development ? Office of Community Planning and Development ? Continuum of Care Program. Awarding Entity: Office of Community Planning and Development ? San Francisco Regional Office. Compliance Requirements: Special Tests and Provision, and Reporting. Type of Finding: Material Weakness. Criteria: Program requirements state that where grants are used to pay for rent for all or a part of a structure, the rent paid must be reasonable in relation to rents being charged in the area for comparable space. Further, required reports for federal awards should include all activities of the reporting period, are supported by applicable accounting or performance records, and are fairly presented in accordance with governing requirements. Condition: For the year ended June 30, 2022, we reviewed the Organization?s rent calculation methodology to ascertain that the amounts billed to its tenants are reasonable. Cause: The Organization encountered employee turnover in certain program management position during the year. Effect or Potential Effect: As a result, the entity was not able to provide consistent documentation for our testing procedures over rental reasonableness. Context: Upon examination and review of correspondences provided for program income and rental reasonableness compliance testing purposes, it was noted that the Organization could not provide complete and consistent records for us to test program income compliance area and special tests and provision compliance area, respectively. In addition, it is noted that there were instances of deviation from key control activities such as annual verification of client income and inconsistent application of rent calculation methodology, causing charged client rents that do not correspond to rent calculations or lease agreements. Recommendation: We recommend that the Organization improve its documentation retention for client rent correspondences by adhering to its formal process of record retention system. We also recommend that the Organization adhere to its established key control activities so that potential misstatement and/or noncompliance can be prevented, or detected and corrected, on a timely basis. Views of Responsible Official: Management of Caminar concurs with the audit finding. The individual preparing the report has been informed of the proper requirements, and management will perform a quality control review over future report submissions to ensure key control activities are performed periodically and complete and consistent documentation are retained.
Information on the Federal Program: Assistance Listing Number 14.267? U.S. Department of Housing and Urban Development ? Office of Community Planning and Development ? Continuum of Care Program. Awarding Entity: Office of Community Planning and Development ? San Francisco Regional Office. Compliance Requirements: Special Tests and Provision, and Reporting. Type of Finding: Material Weakness. Criteria: Program requirements state that where grants are used to pay for rent for all or a part of a structure, the rent paid must be reasonable in relation to rents being charged in the area for comparable space. Further, required reports for federal awards should include all activities of the reporting period, are supported by applicable accounting or performance records, and are fairly presented in accordance with governing requirements. Condition: For the year ended June 30, 2022, we reviewed the Organization?s rent calculation methodology to ascertain that the amounts billed to its tenants are reasonable. Cause: The Organization encountered employee turnover in certain program management position during the year. Effect or Potential Effect: As a result, the entity was not able to provide consistent documentation for our testing procedures over rental reasonableness. Context: Upon examination and review of correspondences provided for program income and rental reasonableness compliance testing purposes, it was noted that the Organization could not provide complete and consistent records for us to test program income compliance area and special tests and provision compliance area, respectively. In addition, it is noted that there were instances of deviation from key control activities such as annual verification of client income and inconsistent application of rent calculation methodology, causing charged client rents that do not correspond to rent calculations or lease agreements. Recommendation: We recommend that the Organization improve its documentation retention for client rent correspondences by adhering to its formal process of record retention system. We also recommend that the Organization adhere to its established key control activities so that potential misstatement and/or noncompliance can be prevented, or detected and corrected, on a timely basis. Views of Responsible Official: Management of Caminar concurs with the audit finding. The individual preparing the report has been informed of the proper requirements, and management will perform a quality control review over future report submissions to ensure key control activities are performed periodically and complete and consistent documentation are retained.