Finding 2497 (2023-003)

Material Weakness
Requirement
N
Questioned Costs
-
Year
2023
Accepted
2023-11-27
Audit: 4247
Organization: Save, Inc. and Affiliates (MO)

AI Summary

  • Core Issue: Incomplete income documentation for 20 out of 71 participants in the Continuum of Care Program.
  • Impacted Requirements: Noncompliance with HUD's requirement for annual income assessments to determine rental contributions.
  • Recommended Follow-Up: Increase resources dedicated to grants compliance to address high staff turnover.

Finding Text

14.267 – Continuum of Care Program U.S Department of Housing and Urban Development (HUD) Direct and Pass-Through State of Missouri, Department of Mental Health Criteria: Per the Continuum of Care Program 24 CFR Part 578.77 "Recipients or subrecipients must examine a program participant's income initially, and at least annually thereafter, to determine the amount of the contribution toward rent payable by the program participant. Adjustments to a program participant's contribution toward the rental payment must be made as changes in income are identified." Condition: We examined a sample of seventy-one participants receiving rental assistance, noting that 20 participant files did not include complete income documentation records. Questioned Costs: $0 Effect: Failure to complete required documentation may result in noncompliance with requirements of the grant. Cause: High staff turnover. Recommendation: Allocate additional resources to grants compliance. View of responsible official: I agree with the finding.

Corrective Action Plan

We will mail letters to or otherwise contact each program participant who has not recertified their income this calendar year and will proivde a window of 10 business days for the program participant to return their proof of income to housing center staff. In order to be the least burdensome on the program participants, they will have the option of returning their income via US Postal Service, by bringing it in person to the SAVE, Inc. office, by submitting electronically to their housing specialist, or by providing it to the HQS inspector if they have an inspection scheduled during the timeframe. Once income information is received, housing center staff will update the rental calculations and provide written documentation of such to the program participant as well as the contact person for the rental unit. Proof of this documentation will be maintained in the client files and the client database will be updated to reflect any changes. Anticipated completion date: December 29, 2023.

Categories

Subrecipient Monitoring HUD Housing Programs

Other Findings in this Audit

  • 2495 2023-001
    Material Weakness
  • 2496 2023-002
    Material Weakness
  • 2498 2023-001
    Material Weakness
  • 2499 2023-002
    Material Weakness
  • 2500 2023-003
    Material Weakness
  • 578937 2023-001
    Material Weakness
  • 578938 2023-002
    Material Weakness
  • 578939 2023-003
    Material Weakness
  • 578940 2023-001
    Material Weakness
  • 578941 2023-002
    Material Weakness
  • 578942 2023-003
    Material Weakness

Programs in Audit

ALN Program Name Expenditures
14.267 Continuum of Care Program $4.35M
21.023 Emergency Rental Assistance Program $499,263
14.238 Shelter Plus Care $364,683
14.241 Housing Opportunities for Persons with Aids $218,300
14.231 Emergency Solutions Grant Program $64,503
14.181 Supportive Housing for Persons with Disabilities $41,467