Audit 53407

FY End
2022-06-30
Total Expended
$217.69M
Findings
2
Programs
6
Year: 2022 Accepted: 2023-04-23

Organization Exclusion Status:

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Findings

ID Ref Severity Repeat Requirement
44499 2022-001 Significant Deficiency Yes M
620941 2022-001 Significant Deficiency Yes M

Programs

Contacts

Name Title Type
HAW8D5MS9JE4 Kristina Dixon Auditee
2133261351 Mandy Merchant Auditor
No contacts on file

Notes to SEFA

Title: BASIS OF PRESENTATION Accounting Policies: The expenditures included in the accompanying schedule were reported on the modifiedaccrual basis of accounting. Under the modified accrual basis of accounting, expendituresare recognized when the agency becomes obligated for payment as a result of the receipt ofthe related goods and services. Expenditures reported include any property or equipmentacquisitions incurred under the federal program. Such expenditures are recognized followingthe cost principles contained in the Uniform Guidance for all awards with the exception ofAssistance Listing 21.019, which follows criteria determined by the Department of Treasuryfor allowability of costs. Under these principles, certain types of expenditures are notallowable or are limited as to reimbursement. Negative amounts shown on the Schedulerepresent adjustments or credits made in the normal course of business to amountsreported as expenditures in prior years. De Minimis Rate Used: N Rate Explanation: Los Angeles Homeless Services Authority did not elect to use the 10-percent de minimis indirect cost rate as allowed under the Uniform Guidance. The schedule of expenditures of federal awards (the Schedule) includes the federal award activity of Los Angeles Homeless Services Authority under programs of the federal government for the year ended June 30, 2022. The information in this Schedule is presented in accordance with the requirements of 2 CFR Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Because the Schedule presents only a selected portion of the operations of LAHSA, it is not intended to, and does not present the financial position, changes in net position, or cash flows of LAHSA.
Title: SUBRECIPIENT EXPENDITURES Accounting Policies: The expenditures included in the accompanying schedule were reported on the modifiedaccrual basis of accounting. Under the modified accrual basis of accounting, expendituresare recognized when the agency becomes obligated for payment as a result of the receipt ofthe related goods and services. Expenditures reported include any property or equipmentacquisitions incurred under the federal program. Such expenditures are recognized followingthe cost principles contained in the Uniform Guidance for all awards with the exception ofAssistance Listing 21.019, which follows criteria determined by the Department of Treasuryfor allowability of costs. Under these principles, certain types of expenditures are notallowable or are limited as to reimbursement. Negative amounts shown on the Schedulerepresent adjustments or credits made in the normal course of business to amountsreported as expenditures in prior years. De Minimis Rate Used: N Rate Explanation: Los Angeles Homeless Services Authority did not elect to use the 10-percent de minimis indirect cost rate as allowed under the Uniform Guidance. During the fiscal year ended June 30, 2022, LAHSA disbursed $195,516,394 of grant funds to subrecipients to be used for allowable expenditures provided in the grant agreements. Payments to subrecipients consisted of the following: Continuum of Care Program $25,176,262; Community Development Block Grant $152,000; COVID-19 Emergency Solutions Grant Program $149,246,911; Temporary Assistance for Needy Families $10,520,481; Chafee Foster Care Independence Program $934,684; COVID-19 Coronavirus Relief Fund $9,486,056.

Finding Details

2022 ? 001 Federal Agency: U.S. Department of the Treasury Federal Program Name: Coronavirus Relief Fund Assistance Listing Number: 21.019 Federal Award Identification Number and Year: SLT0198 Pass-Through Agency: County of Los Angeles Pass-Through Number: Unknown Award Period: March 1, 2020 through December 31, 2021 Type of Finding: ? Significant Deficiency in Internal Control over Compliance ? Other Matters Criteria or specific requirement: A pass-through entity (PTE) must monitor the activities of the subrecipient as necessary to ensure that the subaward is used for authorized purposes, complies with the terms and conditions of the subaward, and achieves performance goals (2 CFR sections 200.332(d) through (f)). In addition to procedures identified as necessary based upon the evaluation of subrecipient risk or specifically required by the terms and conditions of the award, subaward monitoring must include the following: ? Reviewing financial and programmatic (performance and special reports) required by the PTE. ? Following-up and ensuring that the subrecipient takes timely and appropriate action on all deficiencies pertaining to the federal award provided to the subrecipient from the PTE detected through audits, on-site reviews, and other means. ? Issuing a management decision for audit findings pertaining to the federal award provided to the subrecipient from the PTE as required by 2 CFR section 200.521. Condition: During our testing, we noted LAHSA did not have adequate internal controls designed to properly monitor its? subrecipients. Questioned costs: Unable to determine. Context: During our testing of subrecipient monitoring, it was noted that LAHSA did not monitor 1 out of 8 subrecipients tested. The subrecipient received $169,035 for the fiscal year ended June 30, 2022. Cause: LAHSA's new subrecipient monitoring process was not implemented until January 2022. At that time, the subrecipients that were not monitored did not have an active contract with federal funding. As such, they were deemed to be low risk. LAHSA does not have a policy in place to ensure that the subrecipient monitoring plan and risk assessment is revisited throughout the year to ensure new contracts are assessed and monitored appropriately. Effect: LAHSA did not perform required monitoring over subrecipients of federal funding. The lack of internal controls over this compliance requirement provides an opportunity for noncompliance by subrecipients of the grant. Repeat Finding: Yes. Recommendation: We recommend LAHSA implements controls to ensure that the subrecipient monitoring plan is revisited at the time contracts are entered into in order to ensure proper coverage. Views of responsible officials: There is no disagreement with the audit finding.
2022 ? 001 Federal Agency: U.S. Department of the Treasury Federal Program Name: Coronavirus Relief Fund Assistance Listing Number: 21.019 Federal Award Identification Number and Year: SLT0198 Pass-Through Agency: County of Los Angeles Pass-Through Number: Unknown Award Period: March 1, 2020 through December 31, 2021 Type of Finding: ? Significant Deficiency in Internal Control over Compliance ? Other Matters Criteria or specific requirement: A pass-through entity (PTE) must monitor the activities of the subrecipient as necessary to ensure that the subaward is used for authorized purposes, complies with the terms and conditions of the subaward, and achieves performance goals (2 CFR sections 200.332(d) through (f)). In addition to procedures identified as necessary based upon the evaluation of subrecipient risk or specifically required by the terms and conditions of the award, subaward monitoring must include the following: ? Reviewing financial and programmatic (performance and special reports) required by the PTE. ? Following-up and ensuring that the subrecipient takes timely and appropriate action on all deficiencies pertaining to the federal award provided to the subrecipient from the PTE detected through audits, on-site reviews, and other means. ? Issuing a management decision for audit findings pertaining to the federal award provided to the subrecipient from the PTE as required by 2 CFR section 200.521. Condition: During our testing, we noted LAHSA did not have adequate internal controls designed to properly monitor its? subrecipients. Questioned costs: Unable to determine. Context: During our testing of subrecipient monitoring, it was noted that LAHSA did not monitor 1 out of 8 subrecipients tested. The subrecipient received $169,035 for the fiscal year ended June 30, 2022. Cause: LAHSA's new subrecipient monitoring process was not implemented until January 2022. At that time, the subrecipients that were not monitored did not have an active contract with federal funding. As such, they were deemed to be low risk. LAHSA does not have a policy in place to ensure that the subrecipient monitoring plan and risk assessment is revisited throughout the year to ensure new contracts are assessed and monitored appropriately. Effect: LAHSA did not perform required monitoring over subrecipients of federal funding. The lack of internal controls over this compliance requirement provides an opportunity for noncompliance by subrecipients of the grant. Repeat Finding: Yes. Recommendation: We recommend LAHSA implements controls to ensure that the subrecipient monitoring plan is revisited at the time contracts are entered into in order to ensure proper coverage. Views of responsible officials: There is no disagreement with the audit finding.