FAC Explorer

Audit 47955

FY End
2022-12-31
Total Expended
$6.41M
Findings
38
Programs
14
Organization: Homesight and Subsidiaries (WA)
Year: 2022 Accepted: 2023-06-29
Auditor: Finney Neill & Company P S

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
43217 2022-002 Material Weakness Yes L
43218 2022-002 Material Weakness Yes L
43219 2022-002 Material Weakness Yes L
43220 2022-002 Material Weakness Yes L
43221 2022-001 Significant Deficiency Yes L
43222 2022-002 Material Weakness Yes L
43223 2022-004 Significant Deficiency - B
43224 2022-002 Material Weakness Yes L
43225 2022-002 Material Weakness Yes L
43226 2022-002 Material Weakness Yes L
43227 2022-002 Material Weakness Yes L
43228 2022-002 Material Weakness Yes L
43229 2022-002 Material Weakness Yes L
43230 2022-002 Material Weakness Yes L
43231 2022-002 Material Weakness Yes L
43232 2022-002 Material Weakness Yes L
43233 2022-002 Material Weakness Yes L
43234 2022-002 Material Weakness Yes L
43235 2022-002 Material Weakness Yes L
619659 2022-002 Material Weakness Yes L
619660 2022-002 Material Weakness Yes L
619661 2022-002 Material Weakness Yes L
619662 2022-002 Material Weakness Yes L
619663 2022-001 Significant Deficiency Yes L
619664 2022-002 Material Weakness Yes L
619665 2022-004 Significant Deficiency - B
619666 2022-002 Material Weakness Yes L
619667 2022-002 Material Weakness Yes L
619668 2022-002 Material Weakness Yes L
619669 2022-002 Material Weakness Yes L
619670 2022-002 Material Weakness Yes L
619671 2022-002 Material Weakness Yes L
619672 2022-002 Material Weakness Yes L
619673 2022-002 Material Weakness Yes L
619674 2022-002 Material Weakness Yes L
619675 2022-002 Material Weakness Yes L
619676 2022-002 Material Weakness Yes L
619677 2022-002 Material Weakness Yes L

Programs

ALN Program Spent Major Findings
21.026 American Rescue Plan Act $3.19M Yes 3
14.239 Home Investment Partnerships Program $816,940 - 1
14.218 Community Development Block Grants/entitlement Grants $722,078 - 1
21.024 Cdfi Rapid Response Program $527,565 Yes 1
21.011 Capital Magnet Fund $134,433 - 1
21.000 Neighborworks Expendable Capital $125,620 - 1
14.169 Housing Counseling Assistance Program $113,108 - 1
21.020 Community Development Financial Institutions Program $105,000 - 1
21.020 Community Development Financial Institutions Fund Assistance Agreement $93,000 - 1
21.027 Seattle Office of Economic Development $51,785 - 1
14.252 Local Initiatives Support Corporation $30,247 - 1
21.000 Neighborworks America (45832 Payment Id) $5,000 - 1
21.000 Neighborworks America $2,650 - 1
21.000 Neighborworks America (47579 Payment Id) $2,500 - 1

Contacts

Name Title Type
NWKWS8K56MQ9 Tammie Anders Auditee
2067604227 Leslie Sesser Auditor
No contacts on file

Notes to SEFA

Title: Loan/loan guarantee outstanding balances 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 OMB Super Circular, Cost Principles for Non-profit Organizations, wherein certain types of expenditures are not allowable or are limited as to reimbursement. Pass-through entity identifying numbers are presented where available. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. HOME INVESTMENT PARTNERSHIPS PROGRAM (14.239) - Balances outstanding at the end of the audit period were 816940.
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 OMB Super Circular, Cost Principles for Non-profit Organizations, wherein certain types of expenditures are not allowable or are limited as to reimbursement. Pass-through entity identifying numbers are presented where available. 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 grant activity of HomeSight under programs of the federal government for the year ended December 31, 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. Because the schedule presents only a selected portion of the operations of HomeSight, it is not intended to and does not present the financial position, changes in net assets or cash flows of HomeSight.

Finding Details

Finding 2022-002
Identification as a Repeat Finding: Repeat of Finding 2021-002. Finding: The SEFA provided for audit omitted a major program and federal contracts and either understated or overstated the federal contracts listed in the condition and context section below, which resulted in an understatement of federal awards of $1.8 million. All errors were corrected in the attached SEFA; however, the errors indicate gaps in internal controls over financial reporting. Criteria: The Organization is responsible for maintaining accurate information about all federal programs and reporting requirements. The Organization is responsible for using this information to comply with the Uniform Guidance in carrying out federal programs. Sample Size and Population: N/A Condition and Context: The original SEFA provided for audit contained errors in identifying programs, program clusters and expenditures of federal awards including the following: Department of Housing and Urban Development: ? ALN 14.218 ? Community Development Block Grants: City of Seattle award 2022-001 expenditures overstated $60,748. ? ALN 14.169 ? Housing Counseling Assistance: Mon Valley award Oct. 2021 - Sept. 2022 understated $73,561. ? ALN 14.239 ? HOME Investment Partnerships: King County loan of $816,940 omitted. ? ALN 14.252 ? Section 4 Capacity Building: Award 40646-0063 expenditures of $30,247 omitted. Department of Treasury: ? ALN 21.011 ? Capital Magnet Fund: Award 181CM05555 expenditures of $134,433 omitted. ? ALN 21.020 ? Community Development Financial Institutions (CDFI): CDFI Fund Assistance Agreement award expenditures of $93,000 omitted. CDFI Program award expenditures overstated by $105,000.? ALN 21.024 ? CDFI Rapid Response (Major Program): Award expenditures of $527,565 omitted. ? ALN 21.026 ? Homeowner Assistance Fund (Major Program): Award expenditures understated by $134,192. ? ALN 21.027 ? Coronavirus State and Local Fiscal Recovery Funds: City of Seattle award N2021-0454 expenditures of $51,785 omitted. NeighborWorks America: ? ALN 21.000 ? Award 2019 Lending Capital expenditures of $125,620 omitted and award NWINVEST2019 expenditures of $2,650 omitted. Effect: Inaccurate identification of programs subject to the Single Audit increases the risk that the Organization will not comply with the terms and conditions of federal programs. Cause: HomeSight experienced finance and accounting staff turnover in early 2022. Gaps in staffing resulted in a lack of documentation and communication of accounting treatment for federal contracts as the Organization did not have a central repository for this information to guide new staff. Recommendation: The Organization must continue to increase its familiarity with federal grant compliance requirements and establish a process for timely identification of federal programs and a system for tracking contracts in order to ensure compliance with federal award programs and to ensure completeness and accuracy in SEFA reporting. Questioned Costs: None Management Response: Management response is reported in the ?Corrective Action Plan? at the end of this report. Contact Person: Tammie Anders, Director of Finance
Finding 2022-002
Identification as a Repeat Finding: Repeat of Finding 2021-002. Finding: The SEFA provided for audit omitted a major program and federal contracts and either understated or overstated the federal contracts listed in the condition and context section below, which resulted in an understatement of federal awards of $1.8 million. All errors were corrected in the attached SEFA; however, the errors indicate gaps in internal controls over financial reporting. Criteria: The Organization is responsible for maintaining accurate information about all federal programs and reporting requirements. The Organization is responsible for using this information to comply with the Uniform Guidance in carrying out federal programs. Sample Size and Population: N/A Condition and Context: The original SEFA provided for audit contained errors in identifying programs, program clusters and expenditures of federal awards including the following: Department of Housing and Urban Development: ? ALN 14.218 ? Community Development Block Grants: City of Seattle award 2022-001 expenditures overstated $60,748. ? ALN 14.169 ? Housing Counseling Assistance: Mon Valley award Oct. 2021 - Sept. 2022 understated $73,561. ? ALN 14.239 ? HOME Investment Partnerships: King County loan of $816,940 omitted. ? ALN 14.252 ? Section 4 Capacity Building: Award 40646-0063 expenditures of $30,247 omitted. Department of Treasury: ? ALN 21.011 ? Capital Magnet Fund: Award 181CM05555 expenditures of $134,433 omitted. ? ALN 21.020 ? Community Development Financial Institutions (CDFI): CDFI Fund Assistance Agreement award expenditures of $93,000 omitted. CDFI Program award expenditures overstated by $105,000.? ALN 21.024 ? CDFI Rapid Response (Major Program): Award expenditures of $527,565 omitted. ? ALN 21.026 ? Homeowner Assistance Fund (Major Program): Award expenditures understated by $134,192. ? ALN 21.027 ? Coronavirus State and Local Fiscal Recovery Funds: City of Seattle award N2021-0454 expenditures of $51,785 omitted. NeighborWorks America: ? ALN 21.000 ? Award 2019 Lending Capital expenditures of $125,620 omitted and award NWINVEST2019 expenditures of $2,650 omitted. Effect: Inaccurate identification of programs subject to the Single Audit increases the risk that the Organization will not comply with the terms and conditions of federal programs. Cause: HomeSight experienced finance and accounting staff turnover in early 2022. Gaps in staffing resulted in a lack of documentation and communication of accounting treatment for federal contracts as the Organization did not have a central repository for this information to guide new staff. Recommendation: The Organization must continue to increase its familiarity with federal grant compliance requirements and establish a process for timely identification of federal programs and a system for tracking contracts in order to ensure compliance with federal award programs and to ensure completeness and accuracy in SEFA reporting. Questioned Costs: None Management Response: Management response is reported in the ?Corrective Action Plan? at the end of this report. Contact Person: Tammie Anders, Director of Finance
Finding 2022-002
Identification as a Repeat Finding: Repeat of Finding 2021-002. Finding: The SEFA provided for audit omitted a major program and federal contracts and either understated or overstated the federal contracts listed in the condition and context section below, which resulted in an understatement of federal awards of $1.8 million. All errors were corrected in the attached SEFA; however, the errors indicate gaps in internal controls over financial reporting. Criteria: The Organization is responsible for maintaining accurate information about all federal programs and reporting requirements. The Organization is responsible for using this information to comply with the Uniform Guidance in carrying out federal programs. Sample Size and Population: N/A Condition and Context: The original SEFA provided for audit contained errors in identifying programs, program clusters and expenditures of federal awards including the following: Department of Housing and Urban Development: ? ALN 14.218 ? Community Development Block Grants: City of Seattle award 2022-001 expenditures overstated $60,748. ? ALN 14.169 ? Housing Counseling Assistance: Mon Valley award Oct. 2021 - Sept. 2022 understated $73,561. ? ALN 14.239 ? HOME Investment Partnerships: King County loan of $816,940 omitted. ? ALN 14.252 ? Section 4 Capacity Building: Award 40646-0063 expenditures of $30,247 omitted. Department of Treasury: ? ALN 21.011 ? Capital Magnet Fund: Award 181CM05555 expenditures of $134,433 omitted. ? ALN 21.020 ? Community Development Financial Institutions (CDFI): CDFI Fund Assistance Agreement award expenditures of $93,000 omitted. CDFI Program award expenditures overstated by $105,000.? ALN 21.024 ? CDFI Rapid Response (Major Program): Award expenditures of $527,565 omitted. ? ALN 21.026 ? Homeowner Assistance Fund (Major Program): Award expenditures understated by $134,192. ? ALN 21.027 ? Coronavirus State and Local Fiscal Recovery Funds: City of Seattle award N2021-0454 expenditures of $51,785 omitted. NeighborWorks America: ? ALN 21.000 ? Award 2019 Lending Capital expenditures of $125,620 omitted and award NWINVEST2019 expenditures of $2,650 omitted. Effect: Inaccurate identification of programs subject to the Single Audit increases the risk that the Organization will not comply with the terms and conditions of federal programs. Cause: HomeSight experienced finance and accounting staff turnover in early 2022. Gaps in staffing resulted in a lack of documentation and communication of accounting treatment for federal contracts as the Organization did not have a central repository for this information to guide new staff. Recommendation: The Organization must continue to increase its familiarity with federal grant compliance requirements and establish a process for timely identification of federal programs and a system for tracking contracts in order to ensure compliance with federal award programs and to ensure completeness and accuracy in SEFA reporting. Questioned Costs: None Management Response: Management response is reported in the ?Corrective Action Plan? at the end of this report. Contact Person: Tammie Anders, Director of Finance
Finding 2022-002
Identification as a Repeat Finding: Repeat of Finding 2021-002. Finding: The SEFA provided for audit omitted a major program and federal contracts and either understated or overstated the federal contracts listed in the condition and context section below, which resulted in an understatement of federal awards of $1.8 million. All errors were corrected in the attached SEFA; however, the errors indicate gaps in internal controls over financial reporting. Criteria: The Organization is responsible for maintaining accurate information about all federal programs and reporting requirements. The Organization is responsible for using this information to comply with the Uniform Guidance in carrying out federal programs. Sample Size and Population: N/A Condition and Context: The original SEFA provided for audit contained errors in identifying programs, program clusters and expenditures of federal awards including the following: Department of Housing and Urban Development: ? ALN 14.218 ? Community Development Block Grants: City of Seattle award 2022-001 expenditures overstated $60,748. ? ALN 14.169 ? Housing Counseling Assistance: Mon Valley award Oct. 2021 - Sept. 2022 understated $73,561. ? ALN 14.239 ? HOME Investment Partnerships: King County loan of $816,940 omitted. ? ALN 14.252 ? Section 4 Capacity Building: Award 40646-0063 expenditures of $30,247 omitted. Department of Treasury: ? ALN 21.011 ? Capital Magnet Fund: Award 181CM05555 expenditures of $134,433 omitted. ? ALN 21.020 ? Community Development Financial Institutions (CDFI): CDFI Fund Assistance Agreement award expenditures of $93,000 omitted. CDFI Program award expenditures overstated by $105,000.? ALN 21.024 ? CDFI Rapid Response (Major Program): Award expenditures of $527,565 omitted. ? ALN 21.026 ? Homeowner Assistance Fund (Major Program): Award expenditures understated by $134,192. ? ALN 21.027 ? Coronavirus State and Local Fiscal Recovery Funds: City of Seattle award N2021-0454 expenditures of $51,785 omitted. NeighborWorks America: ? ALN 21.000 ? Award 2019 Lending Capital expenditures of $125,620 omitted and award NWINVEST2019 expenditures of $2,650 omitted. Effect: Inaccurate identification of programs subject to the Single Audit increases the risk that the Organization will not comply with the terms and conditions of federal programs. Cause: HomeSight experienced finance and accounting staff turnover in early 2022. Gaps in staffing resulted in a lack of documentation and communication of accounting treatment for federal contracts as the Organization did not have a central repository for this information to guide new staff. Recommendation: The Organization must continue to increase its familiarity with federal grant compliance requirements and establish a process for timely identification of federal programs and a system for tracking contracts in order to ensure compliance with federal award programs and to ensure completeness and accuracy in SEFA reporting. Questioned Costs: None Management Response: Management response is reported in the ?Corrective Action Plan? at the end of this report. Contact Person: Tammie Anders, Director of Finance
Finding 2022-001
See Schedule of Findings and Questioned Costs for chart/table Identification as a Repeat Finding: Elements of this finding are a repeat of Finding 2021-001. Finding: Internal control procedures over financial reporting were not performed consistently throughout the fiscal year to ensure accuracy in accounting for revenue and related accounts. Criteria: Consistent performance of internal controls is essential to an Organization?s operations. Sample Size and Population: N/A Condition and Context: The Organization was advanced federal Homeownership Assistance Funds under a contract that contained right of return language. The value of the advances was recorded as revenue rather than the value earned under the contract through the use of funds provided to program beneficiaries in 2022. Effect: As a result, more revenue was recognized in 2022 than was earned and the $213,661 liability for the return of unexpended funds was not recorded as of December 31, 2022. When errors in the performance of internal controls occur, the Organization is subject to the risk that management may use inaccurate financial information in decision making. Cause: HomeSight experienced finance and accounting staff turnover in early 2022. Gaps in staffing resulted in a lack of documentation and communication of accounting treatment for contracts as the Organization did not have a central repository for this information to guide new staff. Recommendation: We recommend the Organization maintain current, written documentation of accounting policies and procedures for new staff to reference for training purposes and establish a central repository for grant contracts can enable staff to easily access contracts, contract terms, and decisions made regarding accounting treatment. Questioned Costs: None Management Response: Management response is reported in the ?Corrective Action Plan? at the end of this report. Contact Person: Tammie Anders, Director of Finance
Finding 2022-002
Identification as a Repeat Finding: Repeat of Finding 2021-002. Finding: The SEFA provided for audit omitted a major program and federal contracts and either understated or overstated the federal contracts listed in the condition and context section below, which resulted in an understatement of federal awards of $1.8 million. All errors were corrected in the attached SEFA; however, the errors indicate gaps in internal controls over financial reporting. Criteria: The Organization is responsible for maintaining accurate information about all federal programs and reporting requirements. The Organization is responsible for using this information to comply with the Uniform Guidance in carrying out federal programs. Sample Size and Population: N/A Condition and Context: The original SEFA provided for audit contained errors in identifying programs, program clusters and expenditures of federal awards including the following: Department of Housing and Urban Development: ? ALN 14.218 ? Community Development Block Grants: City of Seattle award 2022-001 expenditures overstated $60,748. ? ALN 14.169 ? Housing Counseling Assistance: Mon Valley award Oct. 2021 - Sept. 2022 understated $73,561. ? ALN 14.239 ? HOME Investment Partnerships: King County loan of $816,940 omitted. ? ALN 14.252 ? Section 4 Capacity Building: Award 40646-0063 expenditures of $30,247 omitted. Department of Treasury: ? ALN 21.011 ? Capital Magnet Fund: Award 181CM05555 expenditures of $134,433 omitted. ? ALN 21.020 ? Community Development Financial Institutions (CDFI): CDFI Fund Assistance Agreement award expenditures of $93,000 omitted. CDFI Program award expenditures overstated by $105,000.? ALN 21.024 ? CDFI Rapid Response (Major Program): Award expenditures of $527,565 omitted. ? ALN 21.026 ? Homeowner Assistance Fund (Major Program): Award expenditures understated by $134,192. ? ALN 21.027 ? Coronavirus State and Local Fiscal Recovery Funds: City of Seattle award N2021-0454 expenditures of $51,785 omitted. NeighborWorks America: ? ALN 21.000 ? Award 2019 Lending Capital expenditures of $125,620 omitted and award NWINVEST2019 expenditures of $2,650 omitted. Effect: Inaccurate identification of programs subject to the Single Audit increases the risk that the Organization will not comply with the terms and conditions of federal programs. Cause: HomeSight experienced finance and accounting staff turnover in early 2022. Gaps in staffing resulted in a lack of documentation and communication of accounting treatment for federal contracts as the Organization did not have a central repository for this information to guide new staff. Recommendation: The Organization must continue to increase its familiarity with federal grant compliance requirements and establish a process for timely identification of federal programs and a system for tracking contracts in order to ensure compliance with federal award programs and to ensure completeness and accuracy in SEFA reporting. Questioned Costs: None Management Response: Management response is reported in the ?Corrective Action Plan? at the end of this report. Contact Person: Tammie Anders, Director of Finance
Finding 2022-004
See Schedule of Findings and Questioned Costs for chart/table.Identification as a Repeat Finding: Not a repeat finding Finding: The Organization disbursed federal funds to program beneficiaries in excess of program limits. Criteria: The Homeowner Assistance Fund (HAF) Foreclosure Grant Program Agreement grant agreement limited benefits to $60,000 but noted that ?because this program requires that any grant must terminate the ongoing foreclosure action, the published grant limit can be exceeded by an Application for Exception process.? Condition and context: At the conclusion of the HAF pilot program, which was conducted in 2022, HomeSight remitted $39,729 to the Washington State Housing Finance Commission for benefits that exceeded the threshold established by the Application for Exception process. Cause: In certain circumstances, funds in excess of the threshold established in the Application for Exception process were required to terminate the ongoing foreclosure action. Sample size and population: See Schedule of Findings and Questioned Costs for chart/tableEffect: Unallowable costs were charged to the program. Recommendation: HomeSight should have been tracking instances in which disbursed funds exceeded the threshold established in the Application for Exception process so that federal funds were not used for unallowable costs. Questioned Costs: $39,729 Management Response: Management response is reported in the ?Corrective Action Plan? at the end of this report. Contact Person: Tammie Anders, Director of Finance
Finding 2022-002
Identification as a Repeat Finding: Repeat of Finding 2021-002. Finding: The SEFA provided for audit omitted a major program and federal contracts and either understated or overstated the federal contracts listed in the condition and context section below, which resulted in an understatement of federal awards of $1.8 million. All errors were corrected in the attached SEFA; however, the errors indicate gaps in internal controls over financial reporting. Criteria: The Organization is responsible for maintaining accurate information about all federal programs and reporting requirements. The Organization is responsible for using this information to comply with the Uniform Guidance in carrying out federal programs. Sample Size and Population: N/A Condition and Context: The original SEFA provided for audit contained errors in identifying programs, program clusters and expenditures of federal awards including the following: Department of Housing and Urban Development: ? ALN 14.218 ? Community Development Block Grants: City of Seattle award 2022-001 expenditures overstated $60,748. ? ALN 14.169 ? Housing Counseling Assistance: Mon Valley award Oct. 2021 - Sept. 2022 understated $73,561. ? ALN 14.239 ? HOME Investment Partnerships: King County loan of $816,940 omitted. ? ALN 14.252 ? Section 4 Capacity Building: Award 40646-0063 expenditures of $30,247 omitted. Department of Treasury: ? ALN 21.011 ? Capital Magnet Fund: Award 181CM05555 expenditures of $134,433 omitted. ? ALN 21.020 ? Community Development Financial Institutions (CDFI): CDFI Fund Assistance Agreement award expenditures of $93,000 omitted. CDFI Program award expenditures overstated by $105,000.? ALN 21.024 ? CDFI Rapid Response (Major Program): Award expenditures of $527,565 omitted. ? ALN 21.026 ? Homeowner Assistance Fund (Major Program): Award expenditures understated by $134,192. ? ALN 21.027 ? Coronavirus State and Local Fiscal Recovery Funds: City of Seattle award N2021-0454 expenditures of $51,785 omitted. NeighborWorks America: ? ALN 21.000 ? Award 2019 Lending Capital expenditures of $125,620 omitted and award NWINVEST2019 expenditures of $2,650 omitted. Effect: Inaccurate identification of programs subject to the Single Audit increases the risk that the Organization will not comply with the terms and conditions of federal programs. Cause: HomeSight experienced finance and accounting staff turnover in early 2022. Gaps in staffing resulted in a lack of documentation and communication of accounting treatment for federal contracts as the Organization did not have a central repository for this information to guide new staff. Recommendation: The Organization must continue to increase its familiarity with federal grant compliance requirements and establish a process for timely identification of federal programs and a system for tracking contracts in order to ensure compliance with federal award programs and to ensure completeness and accuracy in SEFA reporting. Questioned Costs: None Management Response: Management response is reported in the ?Corrective Action Plan? at the end of this report. Contact Person: Tammie Anders, Director of Finance
Finding 2022-002
Identification as a Repeat Finding: Repeat of Finding 2021-002. Finding: The SEFA provided for audit omitted a major program and federal contracts and either understated or overstated the federal contracts listed in the condition and context section below, which resulted in an understatement of federal awards of $1.8 million. All errors were corrected in the attached SEFA; however, the errors indicate gaps in internal controls over financial reporting. Criteria: The Organization is responsible for maintaining accurate information about all federal programs and reporting requirements. The Organization is responsible for using this information to comply with the Uniform Guidance in carrying out federal programs. Sample Size and Population: N/A Condition and Context: The original SEFA provided for audit contained errors in identifying programs, program clusters and expenditures of federal awards including the following: Department of Housing and Urban Development: ? ALN 14.218 ? Community Development Block Grants: City of Seattle award 2022-001 expenditures overstated $60,748. ? ALN 14.169 ? Housing Counseling Assistance: Mon Valley award Oct. 2021 - Sept. 2022 understated $73,561. ? ALN 14.239 ? HOME Investment Partnerships: King County loan of $816,940 omitted. ? ALN 14.252 ? Section 4 Capacity Building: Award 40646-0063 expenditures of $30,247 omitted. Department of Treasury: ? ALN 21.011 ? Capital Magnet Fund: Award 181CM05555 expenditures of $134,433 omitted. ? ALN 21.020 ? Community Development Financial Institutions (CDFI): CDFI Fund Assistance Agreement award expenditures of $93,000 omitted. CDFI Program award expenditures overstated by $105,000.? ALN 21.024 ? CDFI Rapid Response (Major Program): Award expenditures of $527,565 omitted. ? ALN 21.026 ? Homeowner Assistance Fund (Major Program): Award expenditures understated by $134,192. ? ALN 21.027 ? Coronavirus State and Local Fiscal Recovery Funds: City of Seattle award N2021-0454 expenditures of $51,785 omitted. NeighborWorks America: ? ALN 21.000 ? Award 2019 Lending Capital expenditures of $125,620 omitted and award NWINVEST2019 expenditures of $2,650 omitted. Effect: Inaccurate identification of programs subject to the Single Audit increases the risk that the Organization will not comply with the terms and conditions of federal programs. Cause: HomeSight experienced finance and accounting staff turnover in early 2022. Gaps in staffing resulted in a lack of documentation and communication of accounting treatment for federal contracts as the Organization did not have a central repository for this information to guide new staff. Recommendation: The Organization must continue to increase its familiarity with federal grant compliance requirements and establish a process for timely identification of federal programs and a system for tracking contracts in order to ensure compliance with federal award programs and to ensure completeness and accuracy in SEFA reporting. Questioned Costs: None Management Response: Management response is reported in the ?Corrective Action Plan? at the end of this report. Contact Person: Tammie Anders, Director of Finance
Finding 2022-002
Identification as a Repeat Finding: Repeat of Finding 2021-002. Finding: The SEFA provided for audit omitted a major program and federal contracts and either understated or overstated the federal contracts listed in the condition and context section below, which resulted in an understatement of federal awards of $1.8 million. All errors were corrected in the attached SEFA; however, the errors indicate gaps in internal controls over financial reporting. Criteria: The Organization is responsible for maintaining accurate information about all federal programs and reporting requirements. The Organization is responsible for using this information to comply with the Uniform Guidance in carrying out federal programs. Sample Size and Population: N/A Condition and Context: The original SEFA provided for audit contained errors in identifying programs, program clusters and expenditures of federal awards including the following: Department of Housing and Urban Development: ? ALN 14.218 ? Community Development Block Grants: City of Seattle award 2022-001 expenditures overstated $60,748. ? ALN 14.169 ? Housing Counseling Assistance: Mon Valley award Oct. 2021 - Sept. 2022 understated $73,561. ? ALN 14.239 ? HOME Investment Partnerships: King County loan of $816,940 omitted. ? ALN 14.252 ? Section 4 Capacity Building: Award 40646-0063 expenditures of $30,247 omitted. Department of Treasury: ? ALN 21.011 ? Capital Magnet Fund: Award 181CM05555 expenditures of $134,433 omitted. ? ALN 21.020 ? Community Development Financial Institutions (CDFI): CDFI Fund Assistance Agreement award expenditures of $93,000 omitted. CDFI Program award expenditures overstated by $105,000.? ALN 21.024 ? CDFI Rapid Response (Major Program): Award expenditures of $527,565 omitted. ? ALN 21.026 ? Homeowner Assistance Fund (Major Program): Award expenditures understated by $134,192. ? ALN 21.027 ? Coronavirus State and Local Fiscal Recovery Funds: City of Seattle award N2021-0454 expenditures of $51,785 omitted. NeighborWorks America: ? ALN 21.000 ? Award 2019 Lending Capital expenditures of $125,620 omitted and award NWINVEST2019 expenditures of $2,650 omitted. Effect: Inaccurate identification of programs subject to the Single Audit increases the risk that the Organization will not comply with the terms and conditions of federal programs. Cause: HomeSight experienced finance and accounting staff turnover in early 2022. Gaps in staffing resulted in a lack of documentation and communication of accounting treatment for federal contracts as the Organization did not have a central repository for this information to guide new staff. Recommendation: The Organization must continue to increase its familiarity with federal grant compliance requirements and establish a process for timely identification of federal programs and a system for tracking contracts in order to ensure compliance with federal award programs and to ensure completeness and accuracy in SEFA reporting. Questioned Costs: None Management Response: Management response is reported in the ?Corrective Action Plan? at the end of this report. Contact Person: Tammie Anders, Director of Finance
Finding 2022-002
Identification as a Repeat Finding: Repeat of Finding 2021-002. Finding: The SEFA provided for audit omitted a major program and federal contracts and either understated or overstated the federal contracts listed in the condition and context section below, which resulted in an understatement of federal awards of $1.8 million. All errors were corrected in the attached SEFA; however, the errors indicate gaps in internal controls over financial reporting. Criteria: The Organization is responsible for maintaining accurate information about all federal programs and reporting requirements. The Organization is responsible for using this information to comply with the Uniform Guidance in carrying out federal programs. Sample Size and Population: N/A Condition and Context: The original SEFA provided for audit contained errors in identifying programs, program clusters and expenditures of federal awards including the following: Department of Housing and Urban Development: ? ALN 14.218 ? Community Development Block Grants: City of Seattle award 2022-001 expenditures overstated $60,748. ? ALN 14.169 ? Housing Counseling Assistance: Mon Valley award Oct. 2021 - Sept. 2022 understated $73,561. ? ALN 14.239 ? HOME Investment Partnerships: King County loan of $816,940 omitted. ? ALN 14.252 ? Section 4 Capacity Building: Award 40646-0063 expenditures of $30,247 omitted. Department of Treasury: ? ALN 21.011 ? Capital Magnet Fund: Award 181CM05555 expenditures of $134,433 omitted. ? ALN 21.020 ? Community Development Financial Institutions (CDFI): CDFI Fund Assistance Agreement award expenditures of $93,000 omitted. CDFI Program award expenditures overstated by $105,000.? ALN 21.024 ? CDFI Rapid Response (Major Program): Award expenditures of $527,565 omitted. ? ALN 21.026 ? Homeowner Assistance Fund (Major Program): Award expenditures understated by $134,192. ? ALN 21.027 ? Coronavirus State and Local Fiscal Recovery Funds: City of Seattle award N2021-0454 expenditures of $51,785 omitted. NeighborWorks America: ? ALN 21.000 ? Award 2019 Lending Capital expenditures of $125,620 omitted and award NWINVEST2019 expenditures of $2,650 omitted. Effect: Inaccurate identification of programs subject to the Single Audit increases the risk that the Organization will not comply with the terms and conditions of federal programs. Cause: HomeSight experienced finance and accounting staff turnover in early 2022. Gaps in staffing resulted in a lack of documentation and communication of accounting treatment for federal contracts as the Organization did not have a central repository for this information to guide new staff. Recommendation: The Organization must continue to increase its familiarity with federal grant compliance requirements and establish a process for timely identification of federal programs and a system for tracking contracts in order to ensure compliance with federal award programs and to ensure completeness and accuracy in SEFA reporting. Questioned Costs: None Management Response: Management response is reported in the ?Corrective Action Plan? at the end of this report. Contact Person: Tammie Anders, Director of Finance
Finding 2022-002
Identification as a Repeat Finding: Repeat of Finding 2021-002. Finding: The SEFA provided for audit omitted a major program and federal contracts and either understated or overstated the federal contracts listed in the condition and context section below, which resulted in an understatement of federal awards of $1.8 million. All errors were corrected in the attached SEFA; however, the errors indicate gaps in internal controls over financial reporting. Criteria: The Organization is responsible for maintaining accurate information about all federal programs and reporting requirements. The Organization is responsible for using this information to comply with the Uniform Guidance in carrying out federal programs. Sample Size and Population: N/A Condition and Context: The original SEFA provided for audit contained errors in identifying programs, program clusters and expenditures of federal awards including the following: Department of Housing and Urban Development: ? ALN 14.218 ? Community Development Block Grants: City of Seattle award 2022-001 expenditures overstated $60,748. ? ALN 14.169 ? Housing Counseling Assistance: Mon Valley award Oct. 2021 - Sept. 2022 understated $73,561. ? ALN 14.239 ? HOME Investment Partnerships: King County loan of $816,940 omitted. ? ALN 14.252 ? Section 4 Capacity Building: Award 40646-0063 expenditures of $30,247 omitted. Department of Treasury: ? ALN 21.011 ? Capital Magnet Fund: Award 181CM05555 expenditures of $134,433 omitted. ? ALN 21.020 ? Community Development Financial Institutions (CDFI): CDFI Fund Assistance Agreement award expenditures of $93,000 omitted. CDFI Program award expenditures overstated by $105,000.? ALN 21.024 ? CDFI Rapid Response (Major Program): Award expenditures of $527,565 omitted. ? ALN 21.026 ? Homeowner Assistance Fund (Major Program): Award expenditures understated by $134,192. ? ALN 21.027 ? Coronavirus State and Local Fiscal Recovery Funds: City of Seattle award N2021-0454 expenditures of $51,785 omitted. NeighborWorks America: ? ALN 21.000 ? Award 2019 Lending Capital expenditures of $125,620 omitted and award NWINVEST2019 expenditures of $2,650 omitted. Effect: Inaccurate identification of programs subject to the Single Audit increases the risk that the Organization will not comply with the terms and conditions of federal programs. Cause: HomeSight experienced finance and accounting staff turnover in early 2022. Gaps in staffing resulted in a lack of documentation and communication of accounting treatment for federal contracts as the Organization did not have a central repository for this information to guide new staff. Recommendation: The Organization must continue to increase its familiarity with federal grant compliance requirements and establish a process for timely identification of federal programs and a system for tracking contracts in order to ensure compliance with federal award programs and to ensure completeness and accuracy in SEFA reporting. Questioned Costs: None Management Response: Management response is reported in the ?Corrective Action Plan? at the end of this report. Contact Person: Tammie Anders, Director of Finance
Finding 2022-002
Identification as a Repeat Finding: Repeat of Finding 2021-002. Finding: The SEFA provided for audit omitted a major program and federal contracts and either understated or overstated the federal contracts listed in the condition and context section below, which resulted in an understatement of federal awards of $1.8 million. All errors were corrected in the attached SEFA; however, the errors indicate gaps in internal controls over financial reporting. Criteria: The Organization is responsible for maintaining accurate information about all federal programs and reporting requirements. The Organization is responsible for using this information to comply with the Uniform Guidance in carrying out federal programs. Sample Size and Population: N/A Condition and Context: The original SEFA provided for audit contained errors in identifying programs, program clusters and expenditures of federal awards including the following: Department of Housing and Urban Development: ? ALN 14.218 ? Community Development Block Grants: City of Seattle award 2022-001 expenditures overstated $60,748. ? ALN 14.169 ? Housing Counseling Assistance: Mon Valley award Oct. 2021 - Sept. 2022 understated $73,561. ? ALN 14.239 ? HOME Investment Partnerships: King County loan of $816,940 omitted. ? ALN 14.252 ? Section 4 Capacity Building: Award 40646-0063 expenditures of $30,247 omitted. Department of Treasury: ? ALN 21.011 ? Capital Magnet Fund: Award 181CM05555 expenditures of $134,433 omitted. ? ALN 21.020 ? Community Development Financial Institutions (CDFI): CDFI Fund Assistance Agreement award expenditures of $93,000 omitted. CDFI Program award expenditures overstated by $105,000.? ALN 21.024 ? CDFI Rapid Response (Major Program): Award expenditures of $527,565 omitted. ? ALN 21.026 ? Homeowner Assistance Fund (Major Program): Award expenditures understated by $134,192. ? ALN 21.027 ? Coronavirus State and Local Fiscal Recovery Funds: City of Seattle award N2021-0454 expenditures of $51,785 omitted. NeighborWorks America: ? ALN 21.000 ? Award 2019 Lending Capital expenditures of $125,620 omitted and award NWINVEST2019 expenditures of $2,650 omitted. Effect: Inaccurate identification of programs subject to the Single Audit increases the risk that the Organization will not comply with the terms and conditions of federal programs. Cause: HomeSight experienced finance and accounting staff turnover in early 2022. Gaps in staffing resulted in a lack of documentation and communication of accounting treatment for federal contracts as the Organization did not have a central repository for this information to guide new staff. Recommendation: The Organization must continue to increase its familiarity with federal grant compliance requirements and establish a process for timely identification of federal programs and a system for tracking contracts in order to ensure compliance with federal award programs and to ensure completeness and accuracy in SEFA reporting. Questioned Costs: None Management Response: Management response is reported in the ?Corrective Action Plan? at the end of this report. Contact Person: Tammie Anders, Director of Finance
Finding 2022-002
Identification as a Repeat Finding: Repeat of Finding 2021-002. Finding: The SEFA provided for audit omitted a major program and federal contracts and either understated or overstated the federal contracts listed in the condition and context section below, which resulted in an understatement of federal awards of $1.8 million. All errors were corrected in the attached SEFA; however, the errors indicate gaps in internal controls over financial reporting. Criteria: The Organization is responsible for maintaining accurate information about all federal programs and reporting requirements. The Organization is responsible for using this information to comply with the Uniform Guidance in carrying out federal programs. Sample Size and Population: N/A Condition and Context: The original SEFA provided for audit contained errors in identifying programs, program clusters and expenditures of federal awards including the following: Department of Housing and Urban Development: ? ALN 14.218 ? Community Development Block Grants: City of Seattle award 2022-001 expenditures overstated $60,748. ? ALN 14.169 ? Housing Counseling Assistance: Mon Valley award Oct. 2021 - Sept. 2022 understated $73,561. ? ALN 14.239 ? HOME Investment Partnerships: King County loan of $816,940 omitted. ? ALN 14.252 ? Section 4 Capacity Building: Award 40646-0063 expenditures of $30,247 omitted. Department of Treasury: ? ALN 21.011 ? Capital Magnet Fund: Award 181CM05555 expenditures of $134,433 omitted. ? ALN 21.020 ? Community Development Financial Institutions (CDFI): CDFI Fund Assistance Agreement award expenditures of $93,000 omitted. CDFI Program award expenditures overstated by $105,000.? ALN 21.024 ? CDFI Rapid Response (Major Program): Award expenditures of $527,565 omitted. ? ALN 21.026 ? Homeowner Assistance Fund (Major Program): Award expenditures understated by $134,192. ? ALN 21.027 ? Coronavirus State and Local Fiscal Recovery Funds: City of Seattle award N2021-0454 expenditures of $51,785 omitted. NeighborWorks America: ? ALN 21.000 ? Award 2019 Lending Capital expenditures of $125,620 omitted and award NWINVEST2019 expenditures of $2,650 omitted. Effect: Inaccurate identification of programs subject to the Single Audit increases the risk that the Organization will not comply with the terms and conditions of federal programs. Cause: HomeSight experienced finance and accounting staff turnover in early 2022. Gaps in staffing resulted in a lack of documentation and communication of accounting treatment for federal contracts as the Organization did not have a central repository for this information to guide new staff. Recommendation: The Organization must continue to increase its familiarity with federal grant compliance requirements and establish a process for timely identification of federal programs and a system for tracking contracts in order to ensure compliance with federal award programs and to ensure completeness and accuracy in SEFA reporting. Questioned Costs: None Management Response: Management response is reported in the ?Corrective Action Plan? at the end of this report. Contact Person: Tammie Anders, Director of Finance
Finding 2022-002
Identification as a Repeat Finding: Repeat of Finding 2021-002. Finding: The SEFA provided for audit omitted a major program and federal contracts and either understated or overstated the federal contracts listed in the condition and context section below, which resulted in an understatement of federal awards of $1.8 million. All errors were corrected in the attached SEFA; however, the errors indicate gaps in internal controls over financial reporting. Criteria: The Organization is responsible for maintaining accurate information about all federal programs and reporting requirements. The Organization is responsible for using this information to comply with the Uniform Guidance in carrying out federal programs. Sample Size and Population: N/A Condition and Context: The original SEFA provided for audit contained errors in identifying programs, program clusters and expenditures of federal awards including the following: Department of Housing and Urban Development: ? ALN 14.218 ? Community Development Block Grants: City of Seattle award 2022-001 expenditures overstated $60,748. ? ALN 14.169 ? Housing Counseling Assistance: Mon Valley award Oct. 2021 - Sept. 2022 understated $73,561. ? ALN 14.239 ? HOME Investment Partnerships: King County loan of $816,940 omitted. ? ALN 14.252 ? Section 4 Capacity Building: Award 40646-0063 expenditures of $30,247 omitted. Department of Treasury: ? ALN 21.011 ? Capital Magnet Fund: Award 181CM05555 expenditures of $134,433 omitted. ? ALN 21.020 ? Community Development Financial Institutions (CDFI): CDFI Fund Assistance Agreement award expenditures of $93,000 omitted. CDFI Program award expenditures overstated by $105,000.? ALN 21.024 ? CDFI Rapid Response (Major Program): Award expenditures of $527,565 omitted. ? ALN 21.026 ? Homeowner Assistance Fund (Major Program): Award expenditures understated by $134,192. ? ALN 21.027 ? Coronavirus State and Local Fiscal Recovery Funds: City of Seattle award N2021-0454 expenditures of $51,785 omitted. NeighborWorks America: ? ALN 21.000 ? Award 2019 Lending Capital expenditures of $125,620 omitted and award NWINVEST2019 expenditures of $2,650 omitted. Effect: Inaccurate identification of programs subject to the Single Audit increases the risk that the Organization will not comply with the terms and conditions of federal programs. Cause: HomeSight experienced finance and accounting staff turnover in early 2022. Gaps in staffing resulted in a lack of documentation and communication of accounting treatment for federal contracts as the Organization did not have a central repository for this information to guide new staff. Recommendation: The Organization must continue to increase its familiarity with federal grant compliance requirements and establish a process for timely identification of federal programs and a system for tracking contracts in order to ensure compliance with federal award programs and to ensure completeness and accuracy in SEFA reporting. Questioned Costs: None Management Response: Management response is reported in the ?Corrective Action Plan? at the end of this report. Contact Person: Tammie Anders, Director of Finance
Finding 2022-002
Identification as a Repeat Finding: Repeat of Finding 2021-002. Finding: The SEFA provided for audit omitted a major program and federal contracts and either understated or overstated the federal contracts listed in the condition and context section below, which resulted in an understatement of federal awards of $1.8 million. All errors were corrected in the attached SEFA; however, the errors indicate gaps in internal controls over financial reporting. Criteria: The Organization is responsible for maintaining accurate information about all federal programs and reporting requirements. The Organization is responsible for using this information to comply with the Uniform Guidance in carrying out federal programs. Sample Size and Population: N/A Condition and Context: The original SEFA provided for audit contained errors in identifying programs, program clusters and expenditures of federal awards including the following: Department of Housing and Urban Development: ? ALN 14.218 ? Community Development Block Grants: City of Seattle award 2022-001 expenditures overstated $60,748. ? ALN 14.169 ? Housing Counseling Assistance: Mon Valley award Oct. 2021 - Sept. 2022 understated $73,561. ? ALN 14.239 ? HOME Investment Partnerships: King County loan of $816,940 omitted. ? ALN 14.252 ? Section 4 Capacity Building: Award 40646-0063 expenditures of $30,247 omitted. Department of Treasury: ? ALN 21.011 ? Capital Magnet Fund: Award 181CM05555 expenditures of $134,433 omitted. ? ALN 21.020 ? Community Development Financial Institutions (CDFI): CDFI Fund Assistance Agreement award expenditures of $93,000 omitted. CDFI Program award expenditures overstated by $105,000.? ALN 21.024 ? CDFI Rapid Response (Major Program): Award expenditures of $527,565 omitted. ? ALN 21.026 ? Homeowner Assistance Fund (Major Program): Award expenditures understated by $134,192. ? ALN 21.027 ? Coronavirus State and Local Fiscal Recovery Funds: City of Seattle award N2021-0454 expenditures of $51,785 omitted. NeighborWorks America: ? ALN 21.000 ? Award 2019 Lending Capital expenditures of $125,620 omitted and award NWINVEST2019 expenditures of $2,650 omitted. Effect: Inaccurate identification of programs subject to the Single Audit increases the risk that the Organization will not comply with the terms and conditions of federal programs. Cause: HomeSight experienced finance and accounting staff turnover in early 2022. Gaps in staffing resulted in a lack of documentation and communication of accounting treatment for federal contracts as the Organization did not have a central repository for this information to guide new staff. Recommendation: The Organization must continue to increase its familiarity with federal grant compliance requirements and establish a process for timely identification of federal programs and a system for tracking contracts in order to ensure compliance with federal award programs and to ensure completeness and accuracy in SEFA reporting. Questioned Costs: None Management Response: Management response is reported in the ?Corrective Action Plan? at the end of this report. Contact Person: Tammie Anders, Director of Finance
Finding 2022-002
Identification as a Repeat Finding: Repeat of Finding 2021-002. Finding: The SEFA provided for audit omitted a major program and federal contracts and either understated or overstated the federal contracts listed in the condition and context section below, which resulted in an understatement of federal awards of $1.8 million. All errors were corrected in the attached SEFA; however, the errors indicate gaps in internal controls over financial reporting. Criteria: The Organization is responsible for maintaining accurate information about all federal programs and reporting requirements. The Organization is responsible for using this information to comply with the Uniform Guidance in carrying out federal programs. Sample Size and Population: N/A Condition and Context: The original SEFA provided for audit contained errors in identifying programs, program clusters and expenditures of federal awards including the following: Department of Housing and Urban Development: ? ALN 14.218 ? Community Development Block Grants: City of Seattle award 2022-001 expenditures overstated $60,748. ? ALN 14.169 ? Housing Counseling Assistance: Mon Valley award Oct. 2021 - Sept. 2022 understated $73,561. ? ALN 14.239 ? HOME Investment Partnerships: King County loan of $816,940 omitted. ? ALN 14.252 ? Section 4 Capacity Building: Award 40646-0063 expenditures of $30,247 omitted. Department of Treasury: ? ALN 21.011 ? Capital Magnet Fund: Award 181CM05555 expenditures of $134,433 omitted. ? ALN 21.020 ? Community Development Financial Institutions (CDFI): CDFI Fund Assistance Agreement award expenditures of $93,000 omitted. CDFI Program award expenditures overstated by $105,000.? ALN 21.024 ? CDFI Rapid Response (Major Program): Award expenditures of $527,565 omitted. ? ALN 21.026 ? Homeowner Assistance Fund (Major Program): Award expenditures understated by $134,192. ? ALN 21.027 ? Coronavirus State and Local Fiscal Recovery Funds: City of Seattle award N2021-0454 expenditures of $51,785 omitted. NeighborWorks America: ? ALN 21.000 ? Award 2019 Lending Capital expenditures of $125,620 omitted and award NWINVEST2019 expenditures of $2,650 omitted. Effect: Inaccurate identification of programs subject to the Single Audit increases the risk that the Organization will not comply with the terms and conditions of federal programs. Cause: HomeSight experienced finance and accounting staff turnover in early 2022. Gaps in staffing resulted in a lack of documentation and communication of accounting treatment for federal contracts as the Organization did not have a central repository for this information to guide new staff. Recommendation: The Organization must continue to increase its familiarity with federal grant compliance requirements and establish a process for timely identification of federal programs and a system for tracking contracts in order to ensure compliance with federal award programs and to ensure completeness and accuracy in SEFA reporting. Questioned Costs: None Management Response: Management response is reported in the ?Corrective Action Plan? at the end of this report. Contact Person: Tammie Anders, Director of Finance
Finding 2022-002
Identification as a Repeat Finding: Repeat of Finding 2021-002. Finding: The SEFA provided for audit omitted a major program and federal contracts and either understated or overstated the federal contracts listed in the condition and context section below, which resulted in an understatement of federal awards of $1.8 million. All errors were corrected in the attached SEFA; however, the errors indicate gaps in internal controls over financial reporting. Criteria: The Organization is responsible for maintaining accurate information about all federal programs and reporting requirements. The Organization is responsible for using this information to comply with the Uniform Guidance in carrying out federal programs. Sample Size and Population: N/A Condition and Context: The original SEFA provided for audit contained errors in identifying programs, program clusters and expenditures of federal awards including the following: Department of Housing and Urban Development: ? ALN 14.218 ? Community Development Block Grants: City of Seattle award 2022-001 expenditures overstated $60,748. ? ALN 14.169 ? Housing Counseling Assistance: Mon Valley award Oct. 2021 - Sept. 2022 understated $73,561. ? ALN 14.239 ? HOME Investment Partnerships: King County loan of $816,940 omitted. ? ALN 14.252 ? Section 4 Capacity Building: Award 40646-0063 expenditures of $30,247 omitted. Department of Treasury: ? ALN 21.011 ? Capital Magnet Fund: Award 181CM05555 expenditures of $134,433 omitted. ? ALN 21.020 ? Community Development Financial Institutions (CDFI): CDFI Fund Assistance Agreement award expenditures of $93,000 omitted. CDFI Program award expenditures overstated by $105,000.? ALN 21.024 ? CDFI Rapid Response (Major Program): Award expenditures of $527,565 omitted. ? ALN 21.026 ? Homeowner Assistance Fund (Major Program): Award expenditures understated by $134,192. ? ALN 21.027 ? Coronavirus State and Local Fiscal Recovery Funds: City of Seattle award N2021-0454 expenditures of $51,785 omitted. NeighborWorks America: ? ALN 21.000 ? Award 2019 Lending Capital expenditures of $125,620 omitted and award NWINVEST2019 expenditures of $2,650 omitted. Effect: Inaccurate identification of programs subject to the Single Audit increases the risk that the Organization will not comply with the terms and conditions of federal programs. Cause: HomeSight experienced finance and accounting staff turnover in early 2022. Gaps in staffing resulted in a lack of documentation and communication of accounting treatment for federal contracts as the Organization did not have a central repository for this information to guide new staff. Recommendation: The Organization must continue to increase its familiarity with federal grant compliance requirements and establish a process for timely identification of federal programs and a system for tracking contracts in order to ensure compliance with federal award programs and to ensure completeness and accuracy in SEFA reporting. Questioned Costs: None Management Response: Management response is reported in the ?Corrective Action Plan? at the end of this report. Contact Person: Tammie Anders, Director of Finance
Finding 2022-002
Identification as a Repeat Finding: Repeat of Finding 2021-002. Finding: The SEFA provided for audit omitted a major program and federal contracts and either understated or overstated the federal contracts listed in the condition and context section below, which resulted in an understatement of federal awards of $1.8 million. All errors were corrected in the attached SEFA; however, the errors indicate gaps in internal controls over financial reporting. Criteria: The Organization is responsible for maintaining accurate information about all federal programs and reporting requirements. The Organization is responsible for using this information to comply with the Uniform Guidance in carrying out federal programs. Sample Size and Population: N/A Condition and Context: The original SEFA provided for audit contained errors in identifying programs, program clusters and expenditures of federal awards including the following: Department of Housing and Urban Development: ? ALN 14.218 ? Community Development Block Grants: City of Seattle award 2022-001 expenditures overstated $60,748. ? ALN 14.169 ? Housing Counseling Assistance: Mon Valley award Oct. 2021 - Sept. 2022 understated $73,561. ? ALN 14.239 ? HOME Investment Partnerships: King County loan of $816,940 omitted. ? ALN 14.252 ? Section 4 Capacity Building: Award 40646-0063 expenditures of $30,247 omitted. Department of Treasury: ? ALN 21.011 ? Capital Magnet Fund: Award 181CM05555 expenditures of $134,433 omitted. ? ALN 21.020 ? Community Development Financial Institutions (CDFI): CDFI Fund Assistance Agreement award expenditures of $93,000 omitted. CDFI Program award expenditures overstated by $105,000.? ALN 21.024 ? CDFI Rapid Response (Major Program): Award expenditures of $527,565 omitted. ? ALN 21.026 ? Homeowner Assistance Fund (Major Program): Award expenditures understated by $134,192. ? ALN 21.027 ? Coronavirus State and Local Fiscal Recovery Funds: City of Seattle award N2021-0454 expenditures of $51,785 omitted. NeighborWorks America: ? ALN 21.000 ? Award 2019 Lending Capital expenditures of $125,620 omitted and award NWINVEST2019 expenditures of $2,650 omitted. Effect: Inaccurate identification of programs subject to the Single Audit increases the risk that the Organization will not comply with the terms and conditions of federal programs. Cause: HomeSight experienced finance and accounting staff turnover in early 2022. Gaps in staffing resulted in a lack of documentation and communication of accounting treatment for federal contracts as the Organization did not have a central repository for this information to guide new staff. Recommendation: The Organization must continue to increase its familiarity with federal grant compliance requirements and establish a process for timely identification of federal programs and a system for tracking contracts in order to ensure compliance with federal award programs and to ensure completeness and accuracy in SEFA reporting. Questioned Costs: None Management Response: Management response is reported in the ?Corrective Action Plan? at the end of this report. Contact Person: Tammie Anders, Director of Finance
Finding 2022-002
Identification as a Repeat Finding: Repeat of Finding 2021-002. Finding: The SEFA provided for audit omitted a major program and federal contracts and either understated or overstated the federal contracts listed in the condition and context section below, which resulted in an understatement of federal awards of $1.8 million. All errors were corrected in the attached SEFA; however, the errors indicate gaps in internal controls over financial reporting. Criteria: The Organization is responsible for maintaining accurate information about all federal programs and reporting requirements. The Organization is responsible for using this information to comply with the Uniform Guidance in carrying out federal programs. Sample Size and Population: N/A Condition and Context: The original SEFA provided for audit contained errors in identifying programs, program clusters and expenditures of federal awards including the following: Department of Housing and Urban Development: ? ALN 14.218 ? Community Development Block Grants: City of Seattle award 2022-001 expenditures overstated $60,748. ? ALN 14.169 ? Housing Counseling Assistance: Mon Valley award Oct. 2021 - Sept. 2022 understated $73,561. ? ALN 14.239 ? HOME Investment Partnerships: King County loan of $816,940 omitted. ? ALN 14.252 ? Section 4 Capacity Building: Award 40646-0063 expenditures of $30,247 omitted. Department of Treasury: ? ALN 21.011 ? Capital Magnet Fund: Award 181CM05555 expenditures of $134,433 omitted. ? ALN 21.020 ? Community Development Financial Institutions (CDFI): CDFI Fund Assistance Agreement award expenditures of $93,000 omitted. CDFI Program award expenditures overstated by $105,000.? ALN 21.024 ? CDFI Rapid Response (Major Program): Award expenditures of $527,565 omitted. ? ALN 21.026 ? Homeowner Assistance Fund (Major Program): Award expenditures understated by $134,192. ? ALN 21.027 ? Coronavirus State and Local Fiscal Recovery Funds: City of Seattle award N2021-0454 expenditures of $51,785 omitted. NeighborWorks America: ? ALN 21.000 ? Award 2019 Lending Capital expenditures of $125,620 omitted and award NWINVEST2019 expenditures of $2,650 omitted. Effect: Inaccurate identification of programs subject to the Single Audit increases the risk that the Organization will not comply with the terms and conditions of federal programs. Cause: HomeSight experienced finance and accounting staff turnover in early 2022. Gaps in staffing resulted in a lack of documentation and communication of accounting treatment for federal contracts as the Organization did not have a central repository for this information to guide new staff. Recommendation: The Organization must continue to increase its familiarity with federal grant compliance requirements and establish a process for timely identification of federal programs and a system for tracking contracts in order to ensure compliance with federal award programs and to ensure completeness and accuracy in SEFA reporting. Questioned Costs: None Management Response: Management response is reported in the ?Corrective Action Plan? at the end of this report. Contact Person: Tammie Anders, Director of Finance
Finding 2022-002
Identification as a Repeat Finding: Repeat of Finding 2021-002. Finding: The SEFA provided for audit omitted a major program and federal contracts and either understated or overstated the federal contracts listed in the condition and context section below, which resulted in an understatement of federal awards of $1.8 million. All errors were corrected in the attached SEFA; however, the errors indicate gaps in internal controls over financial reporting. Criteria: The Organization is responsible for maintaining accurate information about all federal programs and reporting requirements. The Organization is responsible for using this information to comply with the Uniform Guidance in carrying out federal programs. Sample Size and Population: N/A Condition and Context: The original SEFA provided for audit contained errors in identifying programs, program clusters and expenditures of federal awards including the following: Department of Housing and Urban Development: ? ALN 14.218 ? Community Development Block Grants: City of Seattle award 2022-001 expenditures overstated $60,748. ? ALN 14.169 ? Housing Counseling Assistance: Mon Valley award Oct. 2021 - Sept. 2022 understated $73,561. ? ALN 14.239 ? HOME Investment Partnerships: King County loan of $816,940 omitted. ? ALN 14.252 ? Section 4 Capacity Building: Award 40646-0063 expenditures of $30,247 omitted. Department of Treasury: ? ALN 21.011 ? Capital Magnet Fund: Award 181CM05555 expenditures of $134,433 omitted. ? ALN 21.020 ? Community Development Financial Institutions (CDFI): CDFI Fund Assistance Agreement award expenditures of $93,000 omitted. CDFI Program award expenditures overstated by $105,000.? ALN 21.024 ? CDFI Rapid Response (Major Program): Award expenditures of $527,565 omitted. ? ALN 21.026 ? Homeowner Assistance Fund (Major Program): Award expenditures understated by $134,192. ? ALN 21.027 ? Coronavirus State and Local Fiscal Recovery Funds: City of Seattle award N2021-0454 expenditures of $51,785 omitted. NeighborWorks America: ? ALN 21.000 ? Award 2019 Lending Capital expenditures of $125,620 omitted and award NWINVEST2019 expenditures of $2,650 omitted. Effect: Inaccurate identification of programs subject to the Single Audit increases the risk that the Organization will not comply with the terms and conditions of federal programs. Cause: HomeSight experienced finance and accounting staff turnover in early 2022. Gaps in staffing resulted in a lack of documentation and communication of accounting treatment for federal contracts as the Organization did not have a central repository for this information to guide new staff. Recommendation: The Organization must continue to increase its familiarity with federal grant compliance requirements and establish a process for timely identification of federal programs and a system for tracking contracts in order to ensure compliance with federal award programs and to ensure completeness and accuracy in SEFA reporting. Questioned Costs: None Management Response: Management response is reported in the ?Corrective Action Plan? at the end of this report. Contact Person: Tammie Anders, Director of Finance
Finding 2022-002
Identification as a Repeat Finding: Repeat of Finding 2021-002. Finding: The SEFA provided for audit omitted a major program and federal contracts and either understated or overstated the federal contracts listed in the condition and context section below, which resulted in an understatement of federal awards of $1.8 million. All errors were corrected in the attached SEFA; however, the errors indicate gaps in internal controls over financial reporting. Criteria: The Organization is responsible for maintaining accurate information about all federal programs and reporting requirements. The Organization is responsible for using this information to comply with the Uniform Guidance in carrying out federal programs. Sample Size and Population: N/A Condition and Context: The original SEFA provided for audit contained errors in identifying programs, program clusters and expenditures of federal awards including the following: Department of Housing and Urban Development: ? ALN 14.218 ? Community Development Block Grants: City of Seattle award 2022-001 expenditures overstated $60,748. ? ALN 14.169 ? Housing Counseling Assistance: Mon Valley award Oct. 2021 - Sept. 2022 understated $73,561. ? ALN 14.239 ? HOME Investment Partnerships: King County loan of $816,940 omitted. ? ALN 14.252 ? Section 4 Capacity Building: Award 40646-0063 expenditures of $30,247 omitted. Department of Treasury: ? ALN 21.011 ? Capital Magnet Fund: Award 181CM05555 expenditures of $134,433 omitted. ? ALN 21.020 ? Community Development Financial Institutions (CDFI): CDFI Fund Assistance Agreement award expenditures of $93,000 omitted. CDFI Program award expenditures overstated by $105,000.? ALN 21.024 ? CDFI Rapid Response (Major Program): Award expenditures of $527,565 omitted. ? ALN 21.026 ? Homeowner Assistance Fund (Major Program): Award expenditures understated by $134,192. ? ALN 21.027 ? Coronavirus State and Local Fiscal Recovery Funds: City of Seattle award N2021-0454 expenditures of $51,785 omitted. NeighborWorks America: ? ALN 21.000 ? Award 2019 Lending Capital expenditures of $125,620 omitted and award NWINVEST2019 expenditures of $2,650 omitted. Effect: Inaccurate identification of programs subject to the Single Audit increases the risk that the Organization will not comply with the terms and conditions of federal programs. Cause: HomeSight experienced finance and accounting staff turnover in early 2022. Gaps in staffing resulted in a lack of documentation and communication of accounting treatment for federal contracts as the Organization did not have a central repository for this information to guide new staff. Recommendation: The Organization must continue to increase its familiarity with federal grant compliance requirements and establish a process for timely identification of federal programs and a system for tracking contracts in order to ensure compliance with federal award programs and to ensure completeness and accuracy in SEFA reporting. Questioned Costs: None Management Response: Management response is reported in the ?Corrective Action Plan? at the end of this report. Contact Person: Tammie Anders, Director of Finance
Finding 2022-002
Identification as a Repeat Finding: Repeat of Finding 2021-002. Finding: The SEFA provided for audit omitted a major program and federal contracts and either understated or overstated the federal contracts listed in the condition and context section below, which resulted in an understatement of federal awards of $1.8 million. All errors were corrected in the attached SEFA; however, the errors indicate gaps in internal controls over financial reporting. Criteria: The Organization is responsible for maintaining accurate information about all federal programs and reporting requirements. The Organization is responsible for using this information to comply with the Uniform Guidance in carrying out federal programs. Sample Size and Population: N/A Condition and Context: The original SEFA provided for audit contained errors in identifying programs, program clusters and expenditures of federal awards including the following: Department of Housing and Urban Development: ? ALN 14.218 ? Community Development Block Grants: City of Seattle award 2022-001 expenditures overstated $60,748. ? ALN 14.169 ? Housing Counseling Assistance: Mon Valley award Oct. 2021 - Sept. 2022 understated $73,561. ? ALN 14.239 ? HOME Investment Partnerships: King County loan of $816,940 omitted. ? ALN 14.252 ? Section 4 Capacity Building: Award 40646-0063 expenditures of $30,247 omitted. Department of Treasury: ? ALN 21.011 ? Capital Magnet Fund: Award 181CM05555 expenditures of $134,433 omitted. ? ALN 21.020 ? Community Development Financial Institutions (CDFI): CDFI Fund Assistance Agreement award expenditures of $93,000 omitted. CDFI Program award expenditures overstated by $105,000.? ALN 21.024 ? CDFI Rapid Response (Major Program): Award expenditures of $527,565 omitted. ? ALN 21.026 ? Homeowner Assistance Fund (Major Program): Award expenditures understated by $134,192. ? ALN 21.027 ? Coronavirus State and Local Fiscal Recovery Funds: City of Seattle award N2021-0454 expenditures of $51,785 omitted. NeighborWorks America: ? ALN 21.000 ? Award 2019 Lending Capital expenditures of $125,620 omitted and award NWINVEST2019 expenditures of $2,650 omitted. Effect: Inaccurate identification of programs subject to the Single Audit increases the risk that the Organization will not comply with the terms and conditions of federal programs. Cause: HomeSight experienced finance and accounting staff turnover in early 2022. Gaps in staffing resulted in a lack of documentation and communication of accounting treatment for federal contracts as the Organization did not have a central repository for this information to guide new staff. Recommendation: The Organization must continue to increase its familiarity with federal grant compliance requirements and establish a process for timely identification of federal programs and a system for tracking contracts in order to ensure compliance with federal award programs and to ensure completeness and accuracy in SEFA reporting. Questioned Costs: None Management Response: Management response is reported in the ?Corrective Action Plan? at the end of this report. Contact Person: Tammie Anders, Director of Finance
Finding 2022-001
See Schedule of Findings and Questioned Costs for chart/table Identification as a Repeat Finding: Elements of this finding are a repeat of Finding 2021-001. Finding: Internal control procedures over financial reporting were not performed consistently throughout the fiscal year to ensure accuracy in accounting for revenue and related accounts. Criteria: Consistent performance of internal controls is essential to an Organization?s operations. Sample Size and Population: N/A Condition and Context: The Organization was advanced federal Homeownership Assistance Funds under a contract that contained right of return language. The value of the advances was recorded as revenue rather than the value earned under the contract through the use of funds provided to program beneficiaries in 2022. Effect: As a result, more revenue was recognized in 2022 than was earned and the $213,661 liability for the return of unexpended funds was not recorded as of December 31, 2022. When errors in the performance of internal controls occur, the Organization is subject to the risk that management may use inaccurate financial information in decision making. Cause: HomeSight experienced finance and accounting staff turnover in early 2022. Gaps in staffing resulted in a lack of documentation and communication of accounting treatment for contracts as the Organization did not have a central repository for this information to guide new staff. Recommendation: We recommend the Organization maintain current, written documentation of accounting policies and procedures for new staff to reference for training purposes and establish a central repository for grant contracts can enable staff to easily access contracts, contract terms, and decisions made regarding accounting treatment. Questioned Costs: None Management Response: Management response is reported in the ?Corrective Action Plan? at the end of this report. Contact Person: Tammie Anders, Director of Finance
Finding 2022-002
Identification as a Repeat Finding: Repeat of Finding 2021-002. Finding: The SEFA provided for audit omitted a major program and federal contracts and either understated or overstated the federal contracts listed in the condition and context section below, which resulted in an understatement of federal awards of $1.8 million. All errors were corrected in the attached SEFA; however, the errors indicate gaps in internal controls over financial reporting. Criteria: The Organization is responsible for maintaining accurate information about all federal programs and reporting requirements. The Organization is responsible for using this information to comply with the Uniform Guidance in carrying out federal programs. Sample Size and Population: N/A Condition and Context: The original SEFA provided for audit contained errors in identifying programs, program clusters and expenditures of federal awards including the following: Department of Housing and Urban Development: ? ALN 14.218 ? Community Development Block Grants: City of Seattle award 2022-001 expenditures overstated $60,748. ? ALN 14.169 ? Housing Counseling Assistance: Mon Valley award Oct. 2021 - Sept. 2022 understated $73,561. ? ALN 14.239 ? HOME Investment Partnerships: King County loan of $816,940 omitted. ? ALN 14.252 ? Section 4 Capacity Building: Award 40646-0063 expenditures of $30,247 omitted. Department of Treasury: ? ALN 21.011 ? Capital Magnet Fund: Award 181CM05555 expenditures of $134,433 omitted. ? ALN 21.020 ? Community Development Financial Institutions (CDFI): CDFI Fund Assistance Agreement award expenditures of $93,000 omitted. CDFI Program award expenditures overstated by $105,000.? ALN 21.024 ? CDFI Rapid Response (Major Program): Award expenditures of $527,565 omitted. ? ALN 21.026 ? Homeowner Assistance Fund (Major Program): Award expenditures understated by $134,192. ? ALN 21.027 ? Coronavirus State and Local Fiscal Recovery Funds: City of Seattle award N2021-0454 expenditures of $51,785 omitted. NeighborWorks America: ? ALN 21.000 ? Award 2019 Lending Capital expenditures of $125,620 omitted and award NWINVEST2019 expenditures of $2,650 omitted. Effect: Inaccurate identification of programs subject to the Single Audit increases the risk that the Organization will not comply with the terms and conditions of federal programs. Cause: HomeSight experienced finance and accounting staff turnover in early 2022. Gaps in staffing resulted in a lack of documentation and communication of accounting treatment for federal contracts as the Organization did not have a central repository for this information to guide new staff. Recommendation: The Organization must continue to increase its familiarity with federal grant compliance requirements and establish a process for timely identification of federal programs and a system for tracking contracts in order to ensure compliance with federal award programs and to ensure completeness and accuracy in SEFA reporting. Questioned Costs: None Management Response: Management response is reported in the ?Corrective Action Plan? at the end of this report. Contact Person: Tammie Anders, Director of Finance
Finding 2022-004
See Schedule of Findings and Questioned Costs for chart/table.Identification as a Repeat Finding: Not a repeat finding Finding: The Organization disbursed federal funds to program beneficiaries in excess of program limits. Criteria: The Homeowner Assistance Fund (HAF) Foreclosure Grant Program Agreement grant agreement limited benefits to $60,000 but noted that ?because this program requires that any grant must terminate the ongoing foreclosure action, the published grant limit can be exceeded by an Application for Exception process.? Condition and context: At the conclusion of the HAF pilot program, which was conducted in 2022, HomeSight remitted $39,729 to the Washington State Housing Finance Commission for benefits that exceeded the threshold established by the Application for Exception process. Cause: In certain circumstances, funds in excess of the threshold established in the Application for Exception process were required to terminate the ongoing foreclosure action. Sample size and population: See Schedule of Findings and Questioned Costs for chart/tableEffect: Unallowable costs were charged to the program. Recommendation: HomeSight should have been tracking instances in which disbursed funds exceeded the threshold established in the Application for Exception process so that federal funds were not used for unallowable costs. Questioned Costs: $39,729 Management Response: Management response is reported in the ?Corrective Action Plan? at the end of this report. Contact Person: Tammie Anders, Director of Finance
Finding 2022-002
Identification as a Repeat Finding: Repeat of Finding 2021-002. Finding: The SEFA provided for audit omitted a major program and federal contracts and either understated or overstated the federal contracts listed in the condition and context section below, which resulted in an understatement of federal awards of $1.8 million. All errors were corrected in the attached SEFA; however, the errors indicate gaps in internal controls over financial reporting. Criteria: The Organization is responsible for maintaining accurate information about all federal programs and reporting requirements. The Organization is responsible for using this information to comply with the Uniform Guidance in carrying out federal programs. Sample Size and Population: N/A Condition and Context: The original SEFA provided for audit contained errors in identifying programs, program clusters and expenditures of federal awards including the following: Department of Housing and Urban Development: ? ALN 14.218 ? Community Development Block Grants: City of Seattle award 2022-001 expenditures overstated $60,748. ? ALN 14.169 ? Housing Counseling Assistance: Mon Valley award Oct. 2021 - Sept. 2022 understated $73,561. ? ALN 14.239 ? HOME Investment Partnerships: King County loan of $816,940 omitted. ? ALN 14.252 ? Section 4 Capacity Building: Award 40646-0063 expenditures of $30,247 omitted. Department of Treasury: ? ALN 21.011 ? Capital Magnet Fund: Award 181CM05555 expenditures of $134,433 omitted. ? ALN 21.020 ? Community Development Financial Institutions (CDFI): CDFI Fund Assistance Agreement award expenditures of $93,000 omitted. CDFI Program award expenditures overstated by $105,000.? ALN 21.024 ? CDFI Rapid Response (Major Program): Award expenditures of $527,565 omitted. ? ALN 21.026 ? Homeowner Assistance Fund (Major Program): Award expenditures understated by $134,192. ? ALN 21.027 ? Coronavirus State and Local Fiscal Recovery Funds: City of Seattle award N2021-0454 expenditures of $51,785 omitted. NeighborWorks America: ? ALN 21.000 ? Award 2019 Lending Capital expenditures of $125,620 omitted and award NWINVEST2019 expenditures of $2,650 omitted. Effect: Inaccurate identification of programs subject to the Single Audit increases the risk that the Organization will not comply with the terms and conditions of federal programs. Cause: HomeSight experienced finance and accounting staff turnover in early 2022. Gaps in staffing resulted in a lack of documentation and communication of accounting treatment for federal contracts as the Organization did not have a central repository for this information to guide new staff. Recommendation: The Organization must continue to increase its familiarity with federal grant compliance requirements and establish a process for timely identification of federal programs and a system for tracking contracts in order to ensure compliance with federal award programs and to ensure completeness and accuracy in SEFA reporting. Questioned Costs: None Management Response: Management response is reported in the ?Corrective Action Plan? at the end of this report. Contact Person: Tammie Anders, Director of Finance
Finding 2022-002
Identification as a Repeat Finding: Repeat of Finding 2021-002. Finding: The SEFA provided for audit omitted a major program and federal contracts and either understated or overstated the federal contracts listed in the condition and context section below, which resulted in an understatement of federal awards of $1.8 million. All errors were corrected in the attached SEFA; however, the errors indicate gaps in internal controls over financial reporting. Criteria: The Organization is responsible for maintaining accurate information about all federal programs and reporting requirements. The Organization is responsible for using this information to comply with the Uniform Guidance in carrying out federal programs. Sample Size and Population: N/A Condition and Context: The original SEFA provided for audit contained errors in identifying programs, program clusters and expenditures of federal awards including the following: Department of Housing and Urban Development: ? ALN 14.218 ? Community Development Block Grants: City of Seattle award 2022-001 expenditures overstated $60,748. ? ALN 14.169 ? Housing Counseling Assistance: Mon Valley award Oct. 2021 - Sept. 2022 understated $73,561. ? ALN 14.239 ? HOME Investment Partnerships: King County loan of $816,940 omitted. ? ALN 14.252 ? Section 4 Capacity Building: Award 40646-0063 expenditures of $30,247 omitted. Department of Treasury: ? ALN 21.011 ? Capital Magnet Fund: Award 181CM05555 expenditures of $134,433 omitted. ? ALN 21.020 ? Community Development Financial Institutions (CDFI): CDFI Fund Assistance Agreement award expenditures of $93,000 omitted. CDFI Program award expenditures overstated by $105,000.? ALN 21.024 ? CDFI Rapid Response (Major Program): Award expenditures of $527,565 omitted. ? ALN 21.026 ? Homeowner Assistance Fund (Major Program): Award expenditures understated by $134,192. ? ALN 21.027 ? Coronavirus State and Local Fiscal Recovery Funds: City of Seattle award N2021-0454 expenditures of $51,785 omitted. NeighborWorks America: ? ALN 21.000 ? Award 2019 Lending Capital expenditures of $125,620 omitted and award NWINVEST2019 expenditures of $2,650 omitted. Effect: Inaccurate identification of programs subject to the Single Audit increases the risk that the Organization will not comply with the terms and conditions of federal programs. Cause: HomeSight experienced finance and accounting staff turnover in early 2022. Gaps in staffing resulted in a lack of documentation and communication of accounting treatment for federal contracts as the Organization did not have a central repository for this information to guide new staff. Recommendation: The Organization must continue to increase its familiarity with federal grant compliance requirements and establish a process for timely identification of federal programs and a system for tracking contracts in order to ensure compliance with federal award programs and to ensure completeness and accuracy in SEFA reporting. Questioned Costs: None Management Response: Management response is reported in the ?Corrective Action Plan? at the end of this report. Contact Person: Tammie Anders, Director of Finance
Finding 2022-002
Identification as a Repeat Finding: Repeat of Finding 2021-002. Finding: The SEFA provided for audit omitted a major program and federal contracts and either understated or overstated the federal contracts listed in the condition and context section below, which resulted in an understatement of federal awards of $1.8 million. All errors were corrected in the attached SEFA; however, the errors indicate gaps in internal controls over financial reporting. Criteria: The Organization is responsible for maintaining accurate information about all federal programs and reporting requirements. The Organization is responsible for using this information to comply with the Uniform Guidance in carrying out federal programs. Sample Size and Population: N/A Condition and Context: The original SEFA provided for audit contained errors in identifying programs, program clusters and expenditures of federal awards including the following: Department of Housing and Urban Development: ? ALN 14.218 ? Community Development Block Grants: City of Seattle award 2022-001 expenditures overstated $60,748. ? ALN 14.169 ? Housing Counseling Assistance: Mon Valley award Oct. 2021 - Sept. 2022 understated $73,561. ? ALN 14.239 ? HOME Investment Partnerships: King County loan of $816,940 omitted. ? ALN 14.252 ? Section 4 Capacity Building: Award 40646-0063 expenditures of $30,247 omitted. Department of Treasury: ? ALN 21.011 ? Capital Magnet Fund: Award 181CM05555 expenditures of $134,433 omitted. ? ALN 21.020 ? Community Development Financial Institutions (CDFI): CDFI Fund Assistance Agreement award expenditures of $93,000 omitted. CDFI Program award expenditures overstated by $105,000.? ALN 21.024 ? CDFI Rapid Response (Major Program): Award expenditures of $527,565 omitted. ? ALN 21.026 ? Homeowner Assistance Fund (Major Program): Award expenditures understated by $134,192. ? ALN 21.027 ? Coronavirus State and Local Fiscal Recovery Funds: City of Seattle award N2021-0454 expenditures of $51,785 omitted. NeighborWorks America: ? ALN 21.000 ? Award 2019 Lending Capital expenditures of $125,620 omitted and award NWINVEST2019 expenditures of $2,650 omitted. Effect: Inaccurate identification of programs subject to the Single Audit increases the risk that the Organization will not comply with the terms and conditions of federal programs. Cause: HomeSight experienced finance and accounting staff turnover in early 2022. Gaps in staffing resulted in a lack of documentation and communication of accounting treatment for federal contracts as the Organization did not have a central repository for this information to guide new staff. Recommendation: The Organization must continue to increase its familiarity with federal grant compliance requirements and establish a process for timely identification of federal programs and a system for tracking contracts in order to ensure compliance with federal award programs and to ensure completeness and accuracy in SEFA reporting. Questioned Costs: None Management Response: Management response is reported in the ?Corrective Action Plan? at the end of this report. Contact Person: Tammie Anders, Director of Finance
Finding 2022-002
Identification as a Repeat Finding: Repeat of Finding 2021-002. Finding: The SEFA provided for audit omitted a major program and federal contracts and either understated or overstated the federal contracts listed in the condition and context section below, which resulted in an understatement of federal awards of $1.8 million. All errors were corrected in the attached SEFA; however, the errors indicate gaps in internal controls over financial reporting. Criteria: The Organization is responsible for maintaining accurate information about all federal programs and reporting requirements. The Organization is responsible for using this information to comply with the Uniform Guidance in carrying out federal programs. Sample Size and Population: N/A Condition and Context: The original SEFA provided for audit contained errors in identifying programs, program clusters and expenditures of federal awards including the following: Department of Housing and Urban Development: ? ALN 14.218 ? Community Development Block Grants: City of Seattle award 2022-001 expenditures overstated $60,748. ? ALN 14.169 ? Housing Counseling Assistance: Mon Valley award Oct. 2021 - Sept. 2022 understated $73,561. ? ALN 14.239 ? HOME Investment Partnerships: King County loan of $816,940 omitted. ? ALN 14.252 ? Section 4 Capacity Building: Award 40646-0063 expenditures of $30,247 omitted. Department of Treasury: ? ALN 21.011 ? Capital Magnet Fund: Award 181CM05555 expenditures of $134,433 omitted. ? ALN 21.020 ? Community Development Financial Institutions (CDFI): CDFI Fund Assistance Agreement award expenditures of $93,000 omitted. CDFI Program award expenditures overstated by $105,000.? ALN 21.024 ? CDFI Rapid Response (Major Program): Award expenditures of $527,565 omitted. ? ALN 21.026 ? Homeowner Assistance Fund (Major Program): Award expenditures understated by $134,192. ? ALN 21.027 ? Coronavirus State and Local Fiscal Recovery Funds: City of Seattle award N2021-0454 expenditures of $51,785 omitted. NeighborWorks America: ? ALN 21.000 ? Award 2019 Lending Capital expenditures of $125,620 omitted and award NWINVEST2019 expenditures of $2,650 omitted. Effect: Inaccurate identification of programs subject to the Single Audit increases the risk that the Organization will not comply with the terms and conditions of federal programs. Cause: HomeSight experienced finance and accounting staff turnover in early 2022. Gaps in staffing resulted in a lack of documentation and communication of accounting treatment for federal contracts as the Organization did not have a central repository for this information to guide new staff. Recommendation: The Organization must continue to increase its familiarity with federal grant compliance requirements and establish a process for timely identification of federal programs and a system for tracking contracts in order to ensure compliance with federal award programs and to ensure completeness and accuracy in SEFA reporting. Questioned Costs: None Management Response: Management response is reported in the ?Corrective Action Plan? at the end of this report. Contact Person: Tammie Anders, Director of Finance
Finding 2022-002
Identification as a Repeat Finding: Repeat of Finding 2021-002. Finding: The SEFA provided for audit omitted a major program and federal contracts and either understated or overstated the federal contracts listed in the condition and context section below, which resulted in an understatement of federal awards of $1.8 million. All errors were corrected in the attached SEFA; however, the errors indicate gaps in internal controls over financial reporting. Criteria: The Organization is responsible for maintaining accurate information about all federal programs and reporting requirements. The Organization is responsible for using this information to comply with the Uniform Guidance in carrying out federal programs. Sample Size and Population: N/A Condition and Context: The original SEFA provided for audit contained errors in identifying programs, program clusters and expenditures of federal awards including the following: Department of Housing and Urban Development: ? ALN 14.218 ? Community Development Block Grants: City of Seattle award 2022-001 expenditures overstated $60,748. ? ALN 14.169 ? Housing Counseling Assistance: Mon Valley award Oct. 2021 - Sept. 2022 understated $73,561. ? ALN 14.239 ? HOME Investment Partnerships: King County loan of $816,940 omitted. ? ALN 14.252 ? Section 4 Capacity Building: Award 40646-0063 expenditures of $30,247 omitted. Department of Treasury: ? ALN 21.011 ? Capital Magnet Fund: Award 181CM05555 expenditures of $134,433 omitted. ? ALN 21.020 ? Community Development Financial Institutions (CDFI): CDFI Fund Assistance Agreement award expenditures of $93,000 omitted. CDFI Program award expenditures overstated by $105,000.? ALN 21.024 ? CDFI Rapid Response (Major Program): Award expenditures of $527,565 omitted. ? ALN 21.026 ? Homeowner Assistance Fund (Major Program): Award expenditures understated by $134,192. ? ALN 21.027 ? Coronavirus State and Local Fiscal Recovery Funds: City of Seattle award N2021-0454 expenditures of $51,785 omitted. NeighborWorks America: ? ALN 21.000 ? Award 2019 Lending Capital expenditures of $125,620 omitted and award NWINVEST2019 expenditures of $2,650 omitted. Effect: Inaccurate identification of programs subject to the Single Audit increases the risk that the Organization will not comply with the terms and conditions of federal programs. Cause: HomeSight experienced finance and accounting staff turnover in early 2022. Gaps in staffing resulted in a lack of documentation and communication of accounting treatment for federal contracts as the Organization did not have a central repository for this information to guide new staff. Recommendation: The Organization must continue to increase its familiarity with federal grant compliance requirements and establish a process for timely identification of federal programs and a system for tracking contracts in order to ensure compliance with federal award programs and to ensure completeness and accuracy in SEFA reporting. Questioned Costs: None Management Response: Management response is reported in the ?Corrective Action Plan? at the end of this report. Contact Person: Tammie Anders, Director of Finance
Finding 2022-002
Identification as a Repeat Finding: Repeat of Finding 2021-002. Finding: The SEFA provided for audit omitted a major program and federal contracts and either understated or overstated the federal contracts listed in the condition and context section below, which resulted in an understatement of federal awards of $1.8 million. All errors were corrected in the attached SEFA; however, the errors indicate gaps in internal controls over financial reporting. Criteria: The Organization is responsible for maintaining accurate information about all federal programs and reporting requirements. The Organization is responsible for using this information to comply with the Uniform Guidance in carrying out federal programs. Sample Size and Population: N/A Condition and Context: The original SEFA provided for audit contained errors in identifying programs, program clusters and expenditures of federal awards including the following: Department of Housing and Urban Development: ? ALN 14.218 ? Community Development Block Grants: City of Seattle award 2022-001 expenditures overstated $60,748. ? ALN 14.169 ? Housing Counseling Assistance: Mon Valley award Oct. 2021 - Sept. 2022 understated $73,561. ? ALN 14.239 ? HOME Investment Partnerships: King County loan of $816,940 omitted. ? ALN 14.252 ? Section 4 Capacity Building: Award 40646-0063 expenditures of $30,247 omitted. Department of Treasury: ? ALN 21.011 ? Capital Magnet Fund: Award 181CM05555 expenditures of $134,433 omitted. ? ALN 21.020 ? Community Development Financial Institutions (CDFI): CDFI Fund Assistance Agreement award expenditures of $93,000 omitted. CDFI Program award expenditures overstated by $105,000.? ALN 21.024 ? CDFI Rapid Response (Major Program): Award expenditures of $527,565 omitted. ? ALN 21.026 ? Homeowner Assistance Fund (Major Program): Award expenditures understated by $134,192. ? ALN 21.027 ? Coronavirus State and Local Fiscal Recovery Funds: City of Seattle award N2021-0454 expenditures of $51,785 omitted. NeighborWorks America: ? ALN 21.000 ? Award 2019 Lending Capital expenditures of $125,620 omitted and award NWINVEST2019 expenditures of $2,650 omitted. Effect: Inaccurate identification of programs subject to the Single Audit increases the risk that the Organization will not comply with the terms and conditions of federal programs. Cause: HomeSight experienced finance and accounting staff turnover in early 2022. Gaps in staffing resulted in a lack of documentation and communication of accounting treatment for federal contracts as the Organization did not have a central repository for this information to guide new staff. Recommendation: The Organization must continue to increase its familiarity with federal grant compliance requirements and establish a process for timely identification of federal programs and a system for tracking contracts in order to ensure compliance with federal award programs and to ensure completeness and accuracy in SEFA reporting. Questioned Costs: None Management Response: Management response is reported in the ?Corrective Action Plan? at the end of this report. Contact Person: Tammie Anders, Director of Finance
Finding 2022-002
Identification as a Repeat Finding: Repeat of Finding 2021-002. Finding: The SEFA provided for audit omitted a major program and federal contracts and either understated or overstated the federal contracts listed in the condition and context section below, which resulted in an understatement of federal awards of $1.8 million. All errors were corrected in the attached SEFA; however, the errors indicate gaps in internal controls over financial reporting. Criteria: The Organization is responsible for maintaining accurate information about all federal programs and reporting requirements. The Organization is responsible for using this information to comply with the Uniform Guidance in carrying out federal programs. Sample Size and Population: N/A Condition and Context: The original SEFA provided for audit contained errors in identifying programs, program clusters and expenditures of federal awards including the following: Department of Housing and Urban Development: ? ALN 14.218 ? Community Development Block Grants: City of Seattle award 2022-001 expenditures overstated $60,748. ? ALN 14.169 ? Housing Counseling Assistance: Mon Valley award Oct. 2021 - Sept. 2022 understated $73,561. ? ALN 14.239 ? HOME Investment Partnerships: King County loan of $816,940 omitted. ? ALN 14.252 ? Section 4 Capacity Building: Award 40646-0063 expenditures of $30,247 omitted. Department of Treasury: ? ALN 21.011 ? Capital Magnet Fund: Award 181CM05555 expenditures of $134,433 omitted. ? ALN 21.020 ? Community Development Financial Institutions (CDFI): CDFI Fund Assistance Agreement award expenditures of $93,000 omitted. CDFI Program award expenditures overstated by $105,000.? ALN 21.024 ? CDFI Rapid Response (Major Program): Award expenditures of $527,565 omitted. ? ALN 21.026 ? Homeowner Assistance Fund (Major Program): Award expenditures understated by $134,192. ? ALN 21.027 ? Coronavirus State and Local Fiscal Recovery Funds: City of Seattle award N2021-0454 expenditures of $51,785 omitted. NeighborWorks America: ? ALN 21.000 ? Award 2019 Lending Capital expenditures of $125,620 omitted and award NWINVEST2019 expenditures of $2,650 omitted. Effect: Inaccurate identification of programs subject to the Single Audit increases the risk that the Organization will not comply with the terms and conditions of federal programs. Cause: HomeSight experienced finance and accounting staff turnover in early 2022. Gaps in staffing resulted in a lack of documentation and communication of accounting treatment for federal contracts as the Organization did not have a central repository for this information to guide new staff. Recommendation: The Organization must continue to increase its familiarity with federal grant compliance requirements and establish a process for timely identification of federal programs and a system for tracking contracts in order to ensure compliance with federal award programs and to ensure completeness and accuracy in SEFA reporting. Questioned Costs: None Management Response: Management response is reported in the ?Corrective Action Plan? at the end of this report. Contact Person: Tammie Anders, Director of Finance
Finding 2022-002
Identification as a Repeat Finding: Repeat of Finding 2021-002. Finding: The SEFA provided for audit omitted a major program and federal contracts and either understated or overstated the federal contracts listed in the condition and context section below, which resulted in an understatement of federal awards of $1.8 million. All errors were corrected in the attached SEFA; however, the errors indicate gaps in internal controls over financial reporting. Criteria: The Organization is responsible for maintaining accurate information about all federal programs and reporting requirements. The Organization is responsible for using this information to comply with the Uniform Guidance in carrying out federal programs. Sample Size and Population: N/A Condition and Context: The original SEFA provided for audit contained errors in identifying programs, program clusters and expenditures of federal awards including the following: Department of Housing and Urban Development: ? ALN 14.218 ? Community Development Block Grants: City of Seattle award 2022-001 expenditures overstated $60,748. ? ALN 14.169 ? Housing Counseling Assistance: Mon Valley award Oct. 2021 - Sept. 2022 understated $73,561. ? ALN 14.239 ? HOME Investment Partnerships: King County loan of $816,940 omitted. ? ALN 14.252 ? Section 4 Capacity Building: Award 40646-0063 expenditures of $30,247 omitted. Department of Treasury: ? ALN 21.011 ? Capital Magnet Fund: Award 181CM05555 expenditures of $134,433 omitted. ? ALN 21.020 ? Community Development Financial Institutions (CDFI): CDFI Fund Assistance Agreement award expenditures of $93,000 omitted. CDFI Program award expenditures overstated by $105,000.? ALN 21.024 ? CDFI Rapid Response (Major Program): Award expenditures of $527,565 omitted. ? ALN 21.026 ? Homeowner Assistance Fund (Major Program): Award expenditures understated by $134,192. ? ALN 21.027 ? Coronavirus State and Local Fiscal Recovery Funds: City of Seattle award N2021-0454 expenditures of $51,785 omitted. NeighborWorks America: ? ALN 21.000 ? Award 2019 Lending Capital expenditures of $125,620 omitted and award NWINVEST2019 expenditures of $2,650 omitted. Effect: Inaccurate identification of programs subject to the Single Audit increases the risk that the Organization will not comply with the terms and conditions of federal programs. Cause: HomeSight experienced finance and accounting staff turnover in early 2022. Gaps in staffing resulted in a lack of documentation and communication of accounting treatment for federal contracts as the Organization did not have a central repository for this information to guide new staff. Recommendation: The Organization must continue to increase its familiarity with federal grant compliance requirements and establish a process for timely identification of federal programs and a system for tracking contracts in order to ensure compliance with federal award programs and to ensure completeness and accuracy in SEFA reporting. Questioned Costs: None Management Response: Management response is reported in the ?Corrective Action Plan? at the end of this report. Contact Person: Tammie Anders, Director of Finance
Finding 2022-002
Identification as a Repeat Finding: Repeat of Finding 2021-002. Finding: The SEFA provided for audit omitted a major program and federal contracts and either understated or overstated the federal contracts listed in the condition and context section below, which resulted in an understatement of federal awards of $1.8 million. All errors were corrected in the attached SEFA; however, the errors indicate gaps in internal controls over financial reporting. Criteria: The Organization is responsible for maintaining accurate information about all federal programs and reporting requirements. The Organization is responsible for using this information to comply with the Uniform Guidance in carrying out federal programs. Sample Size and Population: N/A Condition and Context: The original SEFA provided for audit contained errors in identifying programs, program clusters and expenditures of federal awards including the following: Department of Housing and Urban Development: ? ALN 14.218 ? Community Development Block Grants: City of Seattle award 2022-001 expenditures overstated $60,748. ? ALN 14.169 ? Housing Counseling Assistance: Mon Valley award Oct. 2021 - Sept. 2022 understated $73,561. ? ALN 14.239 ? HOME Investment Partnerships: King County loan of $816,940 omitted. ? ALN 14.252 ? Section 4 Capacity Building: Award 40646-0063 expenditures of $30,247 omitted. Department of Treasury: ? ALN 21.011 ? Capital Magnet Fund: Award 181CM05555 expenditures of $134,433 omitted. ? ALN 21.020 ? Community Development Financial Institutions (CDFI): CDFI Fund Assistance Agreement award expenditures of $93,000 omitted. CDFI Program award expenditures overstated by $105,000.? ALN 21.024 ? CDFI Rapid Response (Major Program): Award expenditures of $527,565 omitted. ? ALN 21.026 ? Homeowner Assistance Fund (Major Program): Award expenditures understated by $134,192. ? ALN 21.027 ? Coronavirus State and Local Fiscal Recovery Funds: City of Seattle award N2021-0454 expenditures of $51,785 omitted. NeighborWorks America: ? ALN 21.000 ? Award 2019 Lending Capital expenditures of $125,620 omitted and award NWINVEST2019 expenditures of $2,650 omitted. Effect: Inaccurate identification of programs subject to the Single Audit increases the risk that the Organization will not comply with the terms and conditions of federal programs. Cause: HomeSight experienced finance and accounting staff turnover in early 2022. Gaps in staffing resulted in a lack of documentation and communication of accounting treatment for federal contracts as the Organization did not have a central repository for this information to guide new staff. Recommendation: The Organization must continue to increase its familiarity with federal grant compliance requirements and establish a process for timely identification of federal programs and a system for tracking contracts in order to ensure compliance with federal award programs and to ensure completeness and accuracy in SEFA reporting. Questioned Costs: None Management Response: Management response is reported in the ?Corrective Action Plan? at the end of this report. Contact Person: Tammie Anders, Director of Finance
Finding 2022-002
Identification as a Repeat Finding: Repeat of Finding 2021-002. Finding: The SEFA provided for audit omitted a major program and federal contracts and either understated or overstated the federal contracts listed in the condition and context section below, which resulted in an understatement of federal awards of $1.8 million. All errors were corrected in the attached SEFA; however, the errors indicate gaps in internal controls over financial reporting. Criteria: The Organization is responsible for maintaining accurate information about all federal programs and reporting requirements. The Organization is responsible for using this information to comply with the Uniform Guidance in carrying out federal programs. Sample Size and Population: N/A Condition and Context: The original SEFA provided for audit contained errors in identifying programs, program clusters and expenditures of federal awards including the following: Department of Housing and Urban Development: ? ALN 14.218 ? Community Development Block Grants: City of Seattle award 2022-001 expenditures overstated $60,748. ? ALN 14.169 ? Housing Counseling Assistance: Mon Valley award Oct. 2021 - Sept. 2022 understated $73,561. ? ALN 14.239 ? HOME Investment Partnerships: King County loan of $816,940 omitted. ? ALN 14.252 ? Section 4 Capacity Building: Award 40646-0063 expenditures of $30,247 omitted. Department of Treasury: ? ALN 21.011 ? Capital Magnet Fund: Award 181CM05555 expenditures of $134,433 omitted. ? ALN 21.020 ? Community Development Financial Institutions (CDFI): CDFI Fund Assistance Agreement award expenditures of $93,000 omitted. CDFI Program award expenditures overstated by $105,000.? ALN 21.024 ? CDFI Rapid Response (Major Program): Award expenditures of $527,565 omitted. ? ALN 21.026 ? Homeowner Assistance Fund (Major Program): Award expenditures understated by $134,192. ? ALN 21.027 ? Coronavirus State and Local Fiscal Recovery Funds: City of Seattle award N2021-0454 expenditures of $51,785 omitted. NeighborWorks America: ? ALN 21.000 ? Award 2019 Lending Capital expenditures of $125,620 omitted and award NWINVEST2019 expenditures of $2,650 omitted. Effect: Inaccurate identification of programs subject to the Single Audit increases the risk that the Organization will not comply with the terms and conditions of federal programs. Cause: HomeSight experienced finance and accounting staff turnover in early 2022. Gaps in staffing resulted in a lack of documentation and communication of accounting treatment for federal contracts as the Organization did not have a central repository for this information to guide new staff. Recommendation: The Organization must continue to increase its familiarity with federal grant compliance requirements and establish a process for timely identification of federal programs and a system for tracking contracts in order to ensure compliance with federal award programs and to ensure completeness and accuracy in SEFA reporting. Questioned Costs: None Management Response: Management response is reported in the ?Corrective Action Plan? at the end of this report. Contact Person: Tammie Anders, Director of Finance
Finding 2022-002
Identification as a Repeat Finding: Repeat of Finding 2021-002. Finding: The SEFA provided for audit omitted a major program and federal contracts and either understated or overstated the federal contracts listed in the condition and context section below, which resulted in an understatement of federal awards of $1.8 million. All errors were corrected in the attached SEFA; however, the errors indicate gaps in internal controls over financial reporting. Criteria: The Organization is responsible for maintaining accurate information about all federal programs and reporting requirements. The Organization is responsible for using this information to comply with the Uniform Guidance in carrying out federal programs. Sample Size and Population: N/A Condition and Context: The original SEFA provided for audit contained errors in identifying programs, program clusters and expenditures of federal awards including the following: Department of Housing and Urban Development: ? ALN 14.218 ? Community Development Block Grants: City of Seattle award 2022-001 expenditures overstated $60,748. ? ALN 14.169 ? Housing Counseling Assistance: Mon Valley award Oct. 2021 - Sept. 2022 understated $73,561. ? ALN 14.239 ? HOME Investment Partnerships: King County loan of $816,940 omitted. ? ALN 14.252 ? Section 4 Capacity Building: Award 40646-0063 expenditures of $30,247 omitted. Department of Treasury: ? ALN 21.011 ? Capital Magnet Fund: Award 181CM05555 expenditures of $134,433 omitted. ? ALN 21.020 ? Community Development Financial Institutions (CDFI): CDFI Fund Assistance Agreement award expenditures of $93,000 omitted. CDFI Program award expenditures overstated by $105,000.? ALN 21.024 ? CDFI Rapid Response (Major Program): Award expenditures of $527,565 omitted. ? ALN 21.026 ? Homeowner Assistance Fund (Major Program): Award expenditures understated by $134,192. ? ALN 21.027 ? Coronavirus State and Local Fiscal Recovery Funds: City of Seattle award N2021-0454 expenditures of $51,785 omitted. NeighborWorks America: ? ALN 21.000 ? Award 2019 Lending Capital expenditures of $125,620 omitted and award NWINVEST2019 expenditures of $2,650 omitted. Effect: Inaccurate identification of programs subject to the Single Audit increases the risk that the Organization will not comply with the terms and conditions of federal programs. Cause: HomeSight experienced finance and accounting staff turnover in early 2022. Gaps in staffing resulted in a lack of documentation and communication of accounting treatment for federal contracts as the Organization did not have a central repository for this information to guide new staff. Recommendation: The Organization must continue to increase its familiarity with federal grant compliance requirements and establish a process for timely identification of federal programs and a system for tracking contracts in order to ensure compliance with federal award programs and to ensure completeness and accuracy in SEFA reporting. Questioned Costs: None Management Response: Management response is reported in the ?Corrective Action Plan? at the end of this report. Contact Person: Tammie Anders, Director of Finance
Finding 2022-002
Identification as a Repeat Finding: Repeat of Finding 2021-002. Finding: The SEFA provided for audit omitted a major program and federal contracts and either understated or overstated the federal contracts listed in the condition and context section below, which resulted in an understatement of federal awards of $1.8 million. All errors were corrected in the attached SEFA; however, the errors indicate gaps in internal controls over financial reporting. Criteria: The Organization is responsible for maintaining accurate information about all federal programs and reporting requirements. The Organization is responsible for using this information to comply with the Uniform Guidance in carrying out federal programs. Sample Size and Population: N/A Condition and Context: The original SEFA provided for audit contained errors in identifying programs, program clusters and expenditures of federal awards including the following: Department of Housing and Urban Development: ? ALN 14.218 ? Community Development Block Grants: City of Seattle award 2022-001 expenditures overstated $60,748. ? ALN 14.169 ? Housing Counseling Assistance: Mon Valley award Oct. 2021 - Sept. 2022 understated $73,561. ? ALN 14.239 ? HOME Investment Partnerships: King County loan of $816,940 omitted. ? ALN 14.252 ? Section 4 Capacity Building: Award 40646-0063 expenditures of $30,247 omitted. Department of Treasury: ? ALN 21.011 ? Capital Magnet Fund: Award 181CM05555 expenditures of $134,433 omitted. ? ALN 21.020 ? Community Development Financial Institutions (CDFI): CDFI Fund Assistance Agreement award expenditures of $93,000 omitted. CDFI Program award expenditures overstated by $105,000.? ALN 21.024 ? CDFI Rapid Response (Major Program): Award expenditures of $527,565 omitted. ? ALN 21.026 ? Homeowner Assistance Fund (Major Program): Award expenditures understated by $134,192. ? ALN 21.027 ? Coronavirus State and Local Fiscal Recovery Funds: City of Seattle award N2021-0454 expenditures of $51,785 omitted. NeighborWorks America: ? ALN 21.000 ? Award 2019 Lending Capital expenditures of $125,620 omitted and award NWINVEST2019 expenditures of $2,650 omitted. Effect: Inaccurate identification of programs subject to the Single Audit increases the risk that the Organization will not comply with the terms and conditions of federal programs. Cause: HomeSight experienced finance and accounting staff turnover in early 2022. Gaps in staffing resulted in a lack of documentation and communication of accounting treatment for federal contracts as the Organization did not have a central repository for this information to guide new staff. Recommendation: The Organization must continue to increase its familiarity with federal grant compliance requirements and establish a process for timely identification of federal programs and a system for tracking contracts in order to ensure compliance with federal award programs and to ensure completeness and accuracy in SEFA reporting. Questioned Costs: None Management Response: Management response is reported in the ?Corrective Action Plan? at the end of this report. Contact Person: Tammie Anders, Director of Finance