Finding Text
Finding 2025-001: 70% Minimum Unduplicated Adults Maintaining/Increasing Total Income US Department of Housing and Urban Development Program: Continuum of Care Assistance Listing Number: 14.267 Pass Through Entity – City of Albuquerque, New Mexico CRITERIA Per Exhibit B, part B.2, as a sub-recipient of the City of Albuquerque, New Mexico (City) of the Continuum of Care grant funding, the City requires that a minimum of 70% of unduplicated adults served will maintain or increase their total income from all sources as of the end of the operating year or project exit. CONDITION The audit found that during the fiscal year ending June 30, 2025, the number of adults that maintained or increased their total from all sources as of the end of the operating year or project exit was only 68%. CAUSE There were several participants that exited the program close to the Organization’s year end of June 30, 2025. This resulted in less time for the participants to achieve employment goals and the percentage of 70% could not be met timely. EFFECT For the reporting period, only 68% of exiting adult participants (23 out of 34 individuals) showed a documented increase in income. This failure to meet the 70% target indicates that the program is not fully achieving its intended outcome of promoting self-sufficiency among participants, potentially jeopardizing future funding or requiring corrective action plans with the primary grantee and HUD. RECOMMENDATION The Organization should develop and implement a robust tracking system to accurately monitor participant income levels throughout their time in the program. VIEWS OF RESPONSIBLE OFFICIALS The Organization agrees with this finding. See Corrective Action Plan.