Finding 1168605 (2024-001)

Finding Reference Number 2024-001 (Material Weakness) Program Information Federal Program: Continuum of Care Program Federal Agency: U.S. Department of Housing and Urban Development (HUD) Assistance Listing #: 14.267 Pass-through Entity: None Federal Award Identification Number and Year: N/A Type of Compliance Finding: F – Equipment and Real Property Management, G – Matching, Level of Effort and Earmarking, H – Period of Performance, I – Procurement and Suspension and Debarment, J – Program Income, and N – Special Tests and Provisions Type of Finding Financial Statements and Federal Awards Criteria The regulatory agreement requires that the Organization’s books and records are maintained in accordance with generally accepted accounting principles and the grant agreement requires that the Organization adheres to HUD guidelines. Condition / Context During our audit of the Organization’s fiscal year ended June 30 2024 financial statements and federal award program, we noted the concerns below regarding completeness of the financial records, internal control over the federal program and adherence to compliance requirements: • Supporting documentation to evaluate the amounts reported in the financial statements (excluding the statement of financial position) was not available • Based on management discussions, we were not able to obtain an understanding of internal control sufficient to plan or perform additional compliance tests • Supporting documentation to evaluate Equipment and Real Property Management was not available • Supporting documentation to evaluate Matching, Level of Effort and Earmarking was not available • Supporting documentation to evaluate Period of Performance was not available • Supporting documentation to evaluate Procurement and Suspension and Debarment was not available • Supporting documentation to evaluate Program Income was not available • Supporting documentation to evaluate Special Tests and Provisions was not available Cause Management was not able to provide evidence of internal control over the federal program or documentation as required by grant compliance. Effect or Potential Effect We have not obtained sufficient audit evidence to express an opinion on the accompanying financial statements (the statement of activities and changes in net assets, functional expenses, cash flows for the year then ended, and the related notes to the financial statements) and the federal award program due to inability to perform substantive auditing procedures and ineffective internal control in preventing or detecting noncompliance. Questioned Costs Unknown Is the finding a repeat finding No Recommendations Management should allocate additional resources to exercise internal control over its federal programs and establish processes and procedures to ensure compliance with HUD and it’s regulatory agreement. Views of Responsible Officials / Planned Corrective Actions Management agrees with the finding. See Corrective Action Plan on Organization’s letterhead.