Audit 51005

2022-001 Lack of Controls Over Rental Assistance (significant deficiency) Federal program: Continuum of Care Rental Assistance Program Assistance Listing Number: 14.267 Federal agency: Department of Housing and Urban Development Passed through: City of Albuquerque Condition: Lease agreements for 2 clients out of 12 tested. Client LG received rental assistance of $558 in February 2022 and a rental agreement to support the assistance was not in the client?s file. Client RR received rental assistance in November 2021 and a rental agreement to support the assistance was not in the client?s file. Criteria: 24 CFR 582.315 requires program participants enter into an occupancy agreement in order to receive rental assistance. Internal controls over rental assistance payments must include a copy of a lease agreement as supporting documentation for these payments. Cause: The organization did not maintain a copy of the lease agreement. Effect: Rental assistance payments may not have been transmitted to the correct landlords or for the correct amounts. Questioned costs: Not applicable. Auditor?s Recommendation: Rental files should be reviewed by someone other than the preparer after initial intake and at least annually thereafter. The reviewer should develop a checklist to ensure that the client file is complete. All rental calculations should be also be recalculated during the review process. Views of Responsible Officials: TLS has implemented the following procedures to ensure a copy of lease agreements as supporting documents for rental assistance payments. The new CoC/HUD Programs Manager has been auditing all rental assistance clients to ensure each client has the proper documentation. TLS utilizes a flowchart to document all new rental assistance intakes. In addition, there are checklists in every file and a spreadsheet was created to track all documentation.

2022-002 Audit Submitted Late to Federal Clearinghouse (noncompliance) Condition: The audit and Data Collection Form was not submitted to the Federal Audit Clearinghouse (FAC) by the March 31, 2023 deadline. Criteria: 2 CFR 200.512 requires federal award recipients to complete the Data Collection Form and submit a copy of their audit to the Federal Audit Clearinghouse within the earlier of 30 days after receipt of the auditor?s reports or nine months after the end of the audit period. Cause: The organization switched financial officers during the fiscal year which prevented the organization to prepare for their audit in time to meet the federal deadline. Effect: Federal oversight agencies did not receive timely information regarding this recipient. They were not able to conduct their oversight responsibilities in a timely manner. Questioned costs: Not applicable. Auditor?s Recommendation: The organization should consider preparing for and starting the audit process in the late summer or fall in order to have plenty of time to meet the federal deadline. Views of Responsible Officials: To ensure audits get submitted in a timely manner to the Federal Audit Clearinghouse, TLS? current financial officer will start compiling all necessary documentation and schedule an independent audit in late summer or early fall. This will allow TLS to meet the required deadlines.

2022-001 Lack of Controls Over Rental Assistance (significant deficiency) Federal program: Continuum of Care Rental Assistance Program Assistance Listing Number: 14.267 Federal agency: Department of Housing and Urban Development Passed through: City of Albuquerque Condition: Lease agreements for 2 clients out of 12 tested. Client LG received rental assistance of $558 in February 2022 and a rental agreement to support the assistance was not in the client?s file. Client RR received rental assistance in November 2021 and a rental agreement to support the assistance was not in the client?s file. Criteria: 24 CFR 582.315 requires program participants enter into an occupancy agreement in order to receive rental assistance. Internal controls over rental assistance payments must include a copy of a lease agreement as supporting documentation for these payments. Cause: The organization did not maintain a copy of the lease agreement. Effect: Rental assistance payments may not have been transmitted to the correct landlords or for the correct amounts. Questioned costs: Not applicable. Auditor?s Recommendation: Rental files should be reviewed by someone other than the preparer after initial intake and at least annually thereafter. The reviewer should develop a checklist to ensure that the client file is complete. All rental calculations should be also be recalculated during the review process. Views of Responsible Officials: TLS has implemented the following procedures to ensure a copy of lease agreements as supporting documents for rental assistance payments. The new CoC/HUD Programs Manager has been auditing all rental assistance clients to ensure each client has the proper documentation. TLS utilizes a flowchart to document all new rental assistance intakes. In addition, there are checklists in every file and a spreadsheet was created to track all documentation.

2022-002 Audit Submitted Late to Federal Clearinghouse (noncompliance) Condition: The audit and Data Collection Form was not submitted to the Federal Audit Clearinghouse (FAC) by the March 31, 2023 deadline. Criteria: 2 CFR 200.512 requires federal award recipients to complete the Data Collection Form and submit a copy of their audit to the Federal Audit Clearinghouse within the earlier of 30 days after receipt of the auditor?s reports or nine months after the end of the audit period. Cause: The organization switched financial officers during the fiscal year which prevented the organization to prepare for their audit in time to meet the federal deadline. Effect: Federal oversight agencies did not receive timely information regarding this recipient. They were not able to conduct their oversight responsibilities in a timely manner. Questioned costs: Not applicable. Auditor?s Recommendation: The organization should consider preparing for and starting the audit process in the late summer or fall in order to have plenty of time to meet the federal deadline. Views of Responsible Officials: To ensure audits get submitted in a timely manner to the Federal Audit Clearinghouse, TLS? current financial officer will start compiling all necessary documentation and schedule an independent audit in late summer or early fall. This will allow TLS to meet the required deadlines.