FAC Explorer

Audit 45210

FY End
2022-12-31
Total Expended
$194.27M
Findings
4
Programs
15
Organization: Home Forward (OR)
Year: 2022 Accepted: 2023-09-28
Auditor: Cliftonlarsonallen LLP

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
50468 2022-001 Significant Deficiency - N
50469 2022-002 Significant Deficiency - E
626910 2022-001 Significant Deficiency - N
626911 2022-002 Significant Deficiency - E

Programs

ALN Program Spent Major Findings
14.881 Moving to Work Demonstration Program $107.77M Yes 2
14.871 Section 8 Housing Choice Vouchers $43.16M - 0
21.023 Emergency Rental Assistance Program $21.61M Yes 0
14.267 Continuum of Care Program $7.05M - 0
21.027 Coronavirus State and Local Fiscal Recovery Funds $5.90M Yes 0
14.871 Emergency Housing Vouchers $4.17M - 0
14.879 Mainstream Vouchers $1.92M - 0
97.024 Emergency Food and Shelter National Board Program $682,638 - 0
14.896 Family Self-Sufficiency Program $640,763 - 0
14.856 Lower Income Housing Assistance Program_section 8 Moderate Rehabilitation $617,488 - 0
14.191 Multifamily Housing Service Coordinators $351,213 - 0
14.249 Section 8 Moderate Rehabilitation Single Room Occupancy $181,909 - 0
16.034 Coronavirus Emergency Supplemental Funding Program $125,837 - 0
17.259 Wia Youth Activities $86,247 - 0
14.218 Community Development Block Grants/entitlement Grants $3,650 - 0

Contacts

Name Title Type
KV4VMBHUWYH7 Kandy Sage Auditee
5038028300 Mandy Merchant Auditor
No contacts on file

Notes to SEFA

Title: LOANS OUTSTANDING Accounting Policies: Expenditures reported in the Schedule are reported on the accrual basis of accounting and include capitalized expenditures. Such expenditures are recognized following the cost principles contained in the Uniform Guidance for all awards with the exception of assistance listing number 21.023, which follows criteria determined by the Department of Treasury for allowability of costs. Under these principles, certain types of expenditures are not allowable or are limited as to reimbursement. The schedule of expenditures of federal awards (Schedule) presents the activities of all federal award programs of Home Forward. Home Forwards reporting entity is defined in Note 1 of Home Forwards basic financial statements. Federal awards received directly from federal agencies, as well as federal awards passed through from other governmental agencies, are included in the Schedule. 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 Home Forward, it is not intended to, and does not, present the financial position, changes in net position, or cash flows of Home Forward.Home Forwards reporting entity includes the operations of discretely presented component units which may have expended federal awards that are not included in the schedule of expenditures of federal awards for the year ended December 31, 2022. De Minimis Rate Used: N Rate Explanation: Home Forward did not elect to use the 10 percent de minimis indirect cost rate as allowed under the Uniform Guidance. Home Forward participates in federal award programs that sponsor revolving loan programs, which are administrated by Home Forward and the city of Portland, Oregon (City). The City contracts Home Forward to collect loan repayments for these programs through servicing and trust arrangements. The funds are returned to the City upon repayment of the principal and interest. The federal government has imposed certain significant continuing compliance requirements with respect to the loans rendered under the Home Investment Partnerships (HOME) Program (assistance listing number 14.239). The City is responsible to administer the continuing compliance requirements and report the outstanding loan balances. During the year ended December 31, 2022, Home Forward did not incur expenditures related to new loans under the HOME program.

Finding Details

Finding 2022-001
Federal Agency: U.S. Department of Housing and Urban Development Federal Program Name: Moving to Work Demonstration Program Assistance Listing Number: 14.881 Federal Award Identification Number and Year: OR02VO - 2022 Award Period: January 1, 2022 ? December 31, 2022 Compliance Requirement: Special Tests and Provisions ? Wage Rate Requirements Type of Finding: ? Significant Deficiency in Internal Control over Compliance ? Other Matters Criteria or specific requirement: Home Forward must do the following: ? As a condition to executing payment for a contract subject to wage rate requirements, require the contractor to submit to them weekly, for each week in which any contract work is performed, a copy of the payroll and a statement of compliance (29 CFR sections 5.5 and 5.6; the A-102 Common Rule (section 36(i)(5)); OMB Circular A-110 (2 CFR Part 215, Appendix A, Contract Provisions); 2 CFR Part 176, Subpart C; and 2 CFR section 200.326). Condition: Home Forward provided payment for a contractor agreement that included wage rate requirements. Questioned costs: Unable to determine. Context: Exceptions noted in 1 out of 5 contracts tested for wage rate requirements: ? Payment was made on a contract for which certified payrolls were required but not submitted. The sample was statistically valid. Cause: Home Forward did not follow the established procedures for payment of construction contracts subject to wage rate requirements. Effect: Home Forward is not in compliance with wage rate requirements. Repeat Finding: No. Recommendation: We recommend Home Forward review their process and internal controls over contracts subject to wage rate requirements to ensure compliance with HUD requirements. Views of responsible officials: There is no disagreement with the audit finding.
Finding 2022-002
Federal Agency: U.S. Department of Housing and Urban Development Federal Program Name: Moving to Work Demonstration Program Assistance Listing Number: 14.881 Federal Award Identification Number and Year: OR02VO - 2022 Award Period: January 1, 2022 ? December 31, 2022 Compliance Requirement: Eligibility Type of Finding: ? Significant Deficiency in Internal Control over Compliance ? Other Matters Criteria or specific requirement: Home Forward must do the following: ? As a condition of admission or continued occupancy, require the tenant and other family members to provide necessary information, documentation, and releases for the PHA to verify income eligibility (24 CFR sections 5.230, 5.609, and 982.516). ? For both family income examinations and reexaminations, obtain and document in the family file third party verification of (1) reported family annual income; (2) the value of assets; (3) expenses related to deductions from annual income; and (4) other factors that affect the determination of adjusted income or income-based rent (24 CFR section 982.516). ? Determine income eligibility and calculate the tenant?s rent payment using the documentation from third party verification in accordance with 24 CFR Part 5 Subpart F (24 CFR section 5.601 et seq.) (24 CFR sections 982.201, 982.515, and 982.516). ? Reexamine family income and composition at least once every 12 months and adjust the tenant rent and housing assistance payment as necessary using the documentation from third party verification (24 CFR section 982.516). Condition: Home Forward was unable to provide 2 out of 40 tenant files for review. Questioned costs: Unable to determine. Context: Out of 40 housing choice vouchers and low-income public housing tenant files tested, 2 tenant files were unable to be located. The sample was statistically valid. Cause: Home Forward did not follow the established procedures in its Low-Rent Public Housing Administrative Plan. Home Forward was not able to locate two eligibility files. Effect: Home Forward is not in compliance with eligibility requirements. Repeat Finding: No. Recommendation: We recommend Home Forward review their process and internal controls over eligibility to ensure compliance with HUD requirements and their administrative plan. Views of responsible officials: There is no disagreement with the audit finding.
Finding 2022-001
Federal Agency: U.S. Department of Housing and Urban Development Federal Program Name: Moving to Work Demonstration Program Assistance Listing Number: 14.881 Federal Award Identification Number and Year: OR02VO - 2022 Award Period: January 1, 2022 ? December 31, 2022 Compliance Requirement: Special Tests and Provisions ? Wage Rate Requirements Type of Finding: ? Significant Deficiency in Internal Control over Compliance ? Other Matters Criteria or specific requirement: Home Forward must do the following: ? As a condition to executing payment for a contract subject to wage rate requirements, require the contractor to submit to them weekly, for each week in which any contract work is performed, a copy of the payroll and a statement of compliance (29 CFR sections 5.5 and 5.6; the A-102 Common Rule (section 36(i)(5)); OMB Circular A-110 (2 CFR Part 215, Appendix A, Contract Provisions); 2 CFR Part 176, Subpart C; and 2 CFR section 200.326). Condition: Home Forward provided payment for a contractor agreement that included wage rate requirements. Questioned costs: Unable to determine. Context: Exceptions noted in 1 out of 5 contracts tested for wage rate requirements: ? Payment was made on a contract for which certified payrolls were required but not submitted. The sample was statistically valid. Cause: Home Forward did not follow the established procedures for payment of construction contracts subject to wage rate requirements. Effect: Home Forward is not in compliance with wage rate requirements. Repeat Finding: No. Recommendation: We recommend Home Forward review their process and internal controls over contracts subject to wage rate requirements to ensure compliance with HUD requirements. Views of responsible officials: There is no disagreement with the audit finding.
Finding 2022-002
Federal Agency: U.S. Department of Housing and Urban Development Federal Program Name: Moving to Work Demonstration Program Assistance Listing Number: 14.881 Federal Award Identification Number and Year: OR02VO - 2022 Award Period: January 1, 2022 ? December 31, 2022 Compliance Requirement: Eligibility Type of Finding: ? Significant Deficiency in Internal Control over Compliance ? Other Matters Criteria or specific requirement: Home Forward must do the following: ? As a condition of admission or continued occupancy, require the tenant and other family members to provide necessary information, documentation, and releases for the PHA to verify income eligibility (24 CFR sections 5.230, 5.609, and 982.516). ? For both family income examinations and reexaminations, obtain and document in the family file third party verification of (1) reported family annual income; (2) the value of assets; (3) expenses related to deductions from annual income; and (4) other factors that affect the determination of adjusted income or income-based rent (24 CFR section 982.516). ? Determine income eligibility and calculate the tenant?s rent payment using the documentation from third party verification in accordance with 24 CFR Part 5 Subpart F (24 CFR section 5.601 et seq.) (24 CFR sections 982.201, 982.515, and 982.516). ? Reexamine family income and composition at least once every 12 months and adjust the tenant rent and housing assistance payment as necessary using the documentation from third party verification (24 CFR section 982.516). Condition: Home Forward was unable to provide 2 out of 40 tenant files for review. Questioned costs: Unable to determine. Context: Out of 40 housing choice vouchers and low-income public housing tenant files tested, 2 tenant files were unable to be located. The sample was statistically valid. Cause: Home Forward did not follow the established procedures in its Low-Rent Public Housing Administrative Plan. Home Forward was not able to locate two eligibility files. Effect: Home Forward is not in compliance with eligibility requirements. Repeat Finding: No. Recommendation: We recommend Home Forward review their process and internal controls over eligibility to ensure compliance with HUD requirements and their administrative plan. Views of responsible officials: There is no disagreement with the audit finding.