Finding ? 2022-001 ? Inadequate Records Retention Federal AL# 14.241 ? Housing Opportunities for Persons with AIDS Criteria: Financial records, supporting documents, statistical records, and all other non-Federal entity records pertinent to a Federal award must be retained for a period of three years from the date of submission of the final expenditure report or, for Federal awards that are renewed quarterly or annually, from the date of the submission of the quarterly or annual financial report, respectively, as reported to the Federal awarding agency or pass-through entity in the case of a subrecipient (2 CFR ?200.334). Condition: Documentation supporting the Housing Quality Standards inspections to ensure housing met quality standards listed in 24 CFR ?574.310(b)(1)-(2) for the special tests and provisions compliance requirement for AL# 14.241 was missing. Cause and Effect: Policies and procedures regarding records retention is not in accordance with 2 CFR ?200.334 as it does not explicitly state a time period for records retention. As a result, events occurred during the year with no records retained as support. Recommendation: We recommend management update the written records retention policies and procedures to include a time period that is in accordance with 2 CFR ?200.334 and then communicate that policy to all employees to following during the daily course of operations. Additionally, we recommend an annual review of the policies and procedures to ensure continued compliance with 2 CFR ?200.334. Management?s Response: Homeless Alliance management agrees with the finding. Finding 2022-00 1 Response and Corrective Action In conjunction with our FY22 annual audit, please see the agency's corrective action plan below: Condition: Documentation supporting the Housing Quality Standards inspections to ensure housing met quality standards listed in 24 CFR ?574.3 10(b)(1)-(2) for the special tests and provisions compliance requirement for AL# 14.241 was missing. Corrective action: The agency has hired a full time compliance specialist for the program in which the finding occurred. The compliance specialist will be responsible for ensuring that all required documentation is retained appropriately. Moreover, agency management will update our written records retention policy to include a time period that is in accordance with 2 CFR 200.334 and communicate that policy to all employees. An annual management review of the agency's records retention policy will also be implemented. Expected completion date: June 30, 2023 Party Responsible: Haley Phelps Contact information: 405-415-8410 hphelps@homelessalliance.org