The House of Hope, Inc.

EIN: 237014595

UEI: DC9MX1CEFH53

Data as of August 26, 2026

The House of Hope, Inc.6 audit years6 findings4 repeat
6
Audit Years
6
Total Findings
4
Repeat Findings

FY 2024-06-30

Management decision deadline — for entities that funded this organization

The FAC accepted this audit on March 6, 2025. Under 2 CFR 200.521(d), a pass-through entity that provided federal funds to this organization for this audit period must issue a management decision on these findings by September 6, 2025 (354 days ago).

What is a management decision? →
2024-001
Activities Allowed or Unallowed / Cost Allowability / Cash Management / Matching, Level of Effort, Earmarking / Period of Performance / Reporting / Subrecipient Monitoring
MATERIAL WEAKNESSREPEAT

During the audit a number of adjusting journal entries were proposed by both the audit team and management. These entries were to adjust errors or to reflect year-end accruals. Cause: Existing closing procedures should be reviewed and updated to ensure that they are properly followed in producing timely reports and reducing year-end adjustments. Effect: The results were delays in producing reconciliations, account analyses and other financial reports needed by management and the auditors. Recommendation: We believe that the year-end closing could proceed more quickly by incorporating a closing schedule that indicates who will perform each procedure and when completion of each procedure is due and accomplished. The timing of specific procedures could be coordinated with the timing of management’s or the auditor’s need for information. All reconciliations should be prepared and reviewed by those informed of such matters to ensure accuracy. Management Response: We acknowledge that the finding identified in the 2023 audit has repeated in the 2024 audit, and we recognize the importance of fully addressing these concerns to ensure more accurate and efficient financial procedures moving forward. We have since successfully hired a qualified staff accountant who is now in place and working diligently to ensure compliance with all financial procedures for the fiscal year 2025. This key hire, along with the enhanced and fully implemented month-end checklist, will help us consistently meet the necessary financial reporting standards.

Show full finding ▾
Full finding narrative

Criteria: Timely preparation of account reconciliations is essential to producing accurate and relevant financial reports. Condition: During the audit a number of adjusting journal entries were proposed by both the audit team and management. These entries were to adjust errors or to reflect year-end accruals. Cause: Existing closing procedures should be reviewed and updated to ensure that they are properly followed in producing timely reports and reducing year-end adjustments. Effect: The results were delays in producing reconciliations, account analyses and other financial reports needed by management and the auditors. Recommendation: We believe that the year-end closing could proceed more quickly by incorporating a closing schedule that indicates who will perform each procedure and when completion of each procedure is due and accomplished. The timing of specific procedures could be coordinated with the timing of management’s or the auditor’s need for information. All reconciliations should be prepared and reviewed by those informed of such matters to ensure accuracy. Management Response: We acknowledge that the finding identified in the 2023 audit has repeated in the 2024 audit, and we recognize the importance of fully addressing these concerns to ensure more accurate and efficient financial procedures moving forward. We have since successfully hired a qualified staff accountant who is now in place and working diligently to ensure compliance with all financial procedures for the fiscal year 2025. This key hire, along with the enhanced and fully implemented month-end checklist, will help us consistently meet the necessary financial reporting standards.

Corrective Action Plan

Criteria: Timely preparation of account reconciliations is essential to producing accurate and relevant financial reports. Condition: During the audit, a number of adjusting journal entries were proposed by both the audit team and management. These entries were to adjust errors or to reflect year-end accruals. Cause: Existing closing procedures should be reviewed and updated to ensure that they are properly followed in producing timely reports and reducing year-end adjustments. Effect: The results were delays in producing reconciliations, account analyses and other financial reports needed by management and the auditors. Recommendation: We believe that the year-end closing could proceed more quickly by incorporating a closing schedule that indicates who will perform each procedure and when completion of each procedure is due and accomplished. The timing of specific procedures could be coordinated with the timing of management’s or the auditor’s need for information. All reconciliations should be prepared and reviewed by those informed of such matters to ensure accuracy. Management Response: We acknowledge that the finding identified in the 2023 audit has repeated in the 2024 audit, and we recognize the importance of fully addressing these concerns to ensure more accurate and efficient financial procedures moving forward. We have since successfully hired a qualified staff accountant who is now in place and working diligently to ensure compliance with all financial procedures for the fiscal year 2025. This key hire, along with the enhanced and fully implemented month-end checklist, will help us consistently meet the necessary financial reporting standards.

Prior Finding References

2023-001

About Activities Allowed or Unallowed, Allowable Costs / Cost Principles, Cash Management, Matching, Level of Effort, Earmarking, Period of Performance, Reporting, Subrecipient Monitoring →

FY 2023-06-30

FAC accepted this audit on February 21, 2024 — management decision was due August 21, 2024.

2023-001
Cost Allowability
REPEAT

During the audit a number of adjusting journal entries were proposed by both the audit team and management. These entries were to adjust errors or to reflect year‐end accruals. Cause: Existing closing procedures should be reviewed and updated to ensure that they are properly followed in producing timely reports and reducing year‐end adjustments. Effect: The results were delays in producing reconciliations, account analyses and other financial reports needed by management and the auditors. Recommendation: We believe that the year‐end closing could proceed more quickly by incorporating a closing schedule that indicates who will perform each procedure and when completion of each procedure is due and accomplished. The timing of specific procedures could be coordinated with the timing of management’s or the auditor’s need for information. All reconciliations should be prepared and reviewed by those informed of such matters to ensure accuracy. Current status: During the year ending June 30, 2023, the Organization made significant improvements in its implementation of closing procedures. However, due to limited staffing resources the Organization should continue to improve the accuracy and execution of such procedures. Management Response: Management Response: As a result of our growth and increased budget, we approved an additional finance staff person at the October 2023 Board meeting. We are currently using a temporary employee while we hire. In addition, we have moved our investments to an investment firm to make coordination of information easier and more readily available. We have created a centralized file system to store audit documentation as it is available during the year and enhanced our closing checklist.

Show full finding ▾
Full finding narrative

Federal Program: Block Grants for Prevention and Treatment of Substance Abuse ‐ 93.959 2023-001: Year End Closing Schedule – Timely Reconciliations: Criteria: Timely preparation of account reconciliations is essential to producing accurate and relevant financial reports. Condition: During the audit a number of adjusting journal entries were proposed by both the audit team and management. These entries were to adjust errors or to reflect year‐end accruals. Cause: Existing closing procedures should be reviewed and updated to ensure that they are properly followed in producing timely reports and reducing year‐end adjustments. Effect: The results were delays in producing reconciliations, account analyses and other financial reports needed by management and the auditors. Recommendation: We believe that the year‐end closing could proceed more quickly by incorporating a closing schedule that indicates who will perform each procedure and when completion of each procedure is due and accomplished. The timing of specific procedures could be coordinated with the timing of management’s or the auditor’s need for information. All reconciliations should be prepared and reviewed by those informed of such matters to ensure accuracy. Current status: During the year ending June 30, 2023, the Organization made significant improvements in its implementation of closing procedures. However, due to limited staffing resources the Organization should continue to improve the accuracy and execution of such procedures. Management Response: Management Response: As a result of our growth and increased budget, we approved an additional finance staff person at the October 2023 Board meeting. We are currently using a temporary employee while we hire. In addition, we have moved our investments to an investment firm to make coordination of information easier and more readily available. We have created a centralized file system to store audit documentation as it is available during the year and enhanced our closing checklist.

Corrective Action Plan

Federal Program: Block Grants for Prevention and Treatment of Substance Abuse ‐ 93.959 2023-001: Year End Closing Schedule – Timely Reconciliations: Criteria: Timely preparation of account reconciliations is essential to producing accurate and relevant financial reports. Condition: During the audit a number of adjusting journal entries were proposed by both the audit team and management. These entries were to adjust errors or to reflect year‐end accruals. Cause: Existing closing procedures should be reviewed and updated to ensure that they are properly followed in producing timely reports and reducing year‐end adjustments. Effect: The results were delays in producing reconciliations, account analyses and other financial reports needed by management and the auditors. Recommendation: We believe that the year‐end closing could proceed more quickly by incorporating a closing schedule that indicates who will perform each procedure and when completion of each procedure is due and accomplished. The timing of specific procedures could be coordinated with the timing of management’s or the auditor’s need for information. All reconciliations should be prepared and reviewed by those informed of such matters to ensure accuracy. Current status: During the year ending June 30, 2023, the Organization made significant improvements in its implementation of closing procedures. However, due to limited staffing resources the Organization should continue to improve the accuracy and execution of such procedures. Management Response: Management Response: As a result of our growth and increased budget, we approved an additional finance staff person at the October 2023 Board meeting. We are currently using a temporary employee while we hire. In addition, we have moved our investments to an investment firm to make coordination of information easier and more readily available. We have created a centralized file system to store audit documentation as it is available during the year and enhanced our closing checklist.

Prior Finding References

2022-001

About Allowable Costs / Cost Principles →

FY 2022-06-30

FAC accepted this audit on May 21, 2023 — management decision was due November 21, 2023.

2022-000
Activities Allowed or Unallowed / Cost Allowability / Reporting
MATERIAL WEAKNESS

As a result of our audit procedures, we noted there were significant delays in locating supporting documentation for our selections. In our sample of 25 cash receipts, there were two instances where supporting documentation provided was incomplete. Cause: The Organization does not have a centralized filing system or documentation retention policy. Effect: Audit procedures were delayed.

Show full finding ▾
Full finding narrative

Federal Program: Covid-19 Provider Relief Funds - 93.498 Criteria: Federal award guidelines state that financial records, supporting documents, statistical records and all non-federal entity records related to a federal award must be retained for a period of three years from the date of submission of the final expenditure report. Condition: As a result of our audit procedures, we noted there were significant delays in locating supporting documentation for our selections. In our sample of 25 cash receipts, there were two instances where supporting documentation provided was incomplete. Cause: The Organization does not have a centralized filing system or documentation retention policy. Effect: Audit procedures were delayed.

Corrective Action Plan

2022-01 Covid-19 Provider Relief Funds - 93.498 Document Retention Policy Criteria: Federal award guidelines state that financial records, supporting documents, statistical records and all non-federal entity records related to a federal award must be retained for a period of three years from the date of submission of the final expenditure report. Condition: As a result of our audit procedures, we noted there were significant delays in locating supporting documentation for our selections. In our sample of 25 cash receipts, there were two instances where supporting documentation provided was incomplete. Cause: The Organization did not have a centralized filing system or documentation retention policy. Effect: Audit procedures were delayed. Recommendation: We recommend that the Organization develop a formal record retention policy (a minimum of three years) sufficient to meet audit requirements. In addition, we recommend that management develop a record retention schedule to ensure that staff are aware of where electronic records are stored in the event of turnover within key functions. Management Response: The Organization will continue to strengthen our internal controls by developing a written document retention policy and central filing system for financial records.

About Activities Allowed or Unallowed, Allowable Costs / Cost Principles, Reporting →
2022-001
Cash Management / Reporting
MATERIAL WEAKNESSREPEAT

During the audit a number of adjusting journal entries were proposed by both the audit team and management. These entries were to adjust errors or to reflect year-end accruals. Cause: Existing closing procedures should be reviewed and updated to ensure that they are properly followed in producing timely reports and reducing year-end adjustments. Effect: The results were delays in producing reconciliations, account analyses and other financial reports needed by management and the auditors. Recommendation: We believe that the year-end closing could proceed more quickly by incorporating a closing schedule that indicates who will perform each procedure and when completion of each procedure is due and accomplished. The timing of specific procedures could be coordinated with the timing of management?s or the auditor?s need for information. All reconciliations should be prepared and reviewed by those informed of such matters to ensure accuracy. Current status: During the year ending June 30, 2022, the Organization experienced turn over in the accounting department and experienced staffing shortages related to the COVID-19 pandemic and implementation of the streamlined closing process was delayed. Management Response: House of Hope, Inc has been significantly impacted by a staffing shortage due to the pandemic. As a result, some of our systems and processes have not been as timely as would occur with full staffing of our finance department. A monthly closing schedule with staff assignments has been implemented.

Show full finding ▾
Full finding narrative

2020-01: Year End Closing Schedule ? Timely Reconciliations: Criteria: Timely preparation of account reconciliations is essential to producing accurate and relevant financial reports. Condition: During the audit a number of adjusting journal entries were proposed by both the audit team and management. These entries were to adjust errors or to reflect year-end accruals. Cause: Existing closing procedures should be reviewed and updated to ensure that they are properly followed in producing timely reports and reducing year-end adjustments. Effect: The results were delays in producing reconciliations, account analyses and other financial reports needed by management and the auditors. Recommendation: We believe that the year-end closing could proceed more quickly by incorporating a closing schedule that indicates who will perform each procedure and when completion of each procedure is due and accomplished. The timing of specific procedures could be coordinated with the timing of management?s or the auditor?s need for information. All reconciliations should be prepared and reviewed by those informed of such matters to ensure accuracy. Current status: During the year ending June 30, 2022, the Organization experienced turn over in the accounting department and experienced staffing shortages related to the COVID-19 pandemic and implementation of the streamlined closing process was delayed. Management Response: House of Hope, Inc has been significantly impacted by a staffing shortage due to the pandemic. As a result, some of our systems and processes have not been as timely as would occur with full staffing of our finance department. A monthly closing schedule with staff assignments has been implemented.

Corrective Action Plan

2020-01: Block Grants for Prevention and Treatment of Substance Abuse - 93.959 and Covid-19 Provider Relief Funds - 93.498- Year-End Closing Schedule - Timely Reconciliations Criteria: Timely preparation of account reconciliations is essential to producing accurate and relevant financial reports. Condition: During the audit, a number of adjusting journal entries were proposed by both the audit team and management. These entries were to adjust errors or to reflect year-end accruals. Cause: Existing closing procedures should be reviewed and updated to ensure that they are properly followed in producing timely reports and reducing year-end adjustments. Effect: The results were delays in producing reconciliations, account analyses and other financial reports needed by management and the auditors. Recommendation: We believe that the year-end closing could proceed more quickly by incorporating a closing schedule that indicates who will perform each procedure and when completion of each procedure is due and accomplished. The timing of specific procedures could be coordinated with the timing of management?s or the auditor?s need for information. All reconciliations should be prepared and reviewed by those informed of such matters to ensure accuracy. Management Response: The Organization will simplify the year end closing process by creating monthly closing schedules, implementing timing of specific procedures and assigning appropriate staff to perform each monthly reconciliation. These reconciliations will be reviewed by management on a monthly basis.

Prior Finding References

2021-000

About Cash Management, Reporting →

FY 2021-06-30

FAC accepted this audit on March 30, 2022 — management decision was due September 30, 2022.

2021-000
Cash Management / Reporting
REPEAT

During the audit a number of adjusting journal entries were proposed by both the audit team and management. These entries were to adjust errors or to reflect year-end accruals. Cause: Existing closing procedures should be reviewed and updated to ensure that they are properly followed in producing timely reports and reducing year-end adjustments. Effect: The results were delays in producing reconciliations, account analyses and other financial reports needed by management and the auditors. Recommendation: We believe that the year-end closing could proceed more quickly by incorporating a closing schedule that indicates who will perform each procedure and when completion of each procedure is due and accomplished. The timing of specific procedures could be coordinated with the timing of management?s or the auditor?s need for information. All reconciliations should be prepared and reviewed by those informed of such matters to ensure accuracy. Current status: During the year ending June 30, 2021, the Organization experienced turn over in the accounting department and experienced staffing shortages related to the COVID-19 pandemic and implementation of the streamlined closing process was delayed. Management Response: House of Hope, Inc has been significantly impacted by a staffing shortage due to the pandemic. As a result, some of our systems and processes have not been as timely as would occur with full staffing of our finance department. A monthly closing schedule with staff assignments have been implemented.

Show full finding ▾
Full finding narrative

2020-01: Year End Closing Schedule ? Timely Reconciliations: Criteria: Timely preparation of account reconciliations is essential to producing accurate and relevant financial reports. Condition: During the audit a number of adjusting journal entries were proposed by both the audit team and management. These entries were to adjust errors or to reflect year-end accruals. Cause: Existing closing procedures should be reviewed and updated to ensure that they are properly followed in producing timely reports and reducing year-end adjustments. Effect: The results were delays in producing reconciliations, account analyses and other financial reports needed by management and the auditors. Recommendation: We believe that the year-end closing could proceed more quickly by incorporating a closing schedule that indicates who will perform each procedure and when completion of each procedure is due and accomplished. The timing of specific procedures could be coordinated with the timing of management?s or the auditor?s need for information. All reconciliations should be prepared and reviewed by those informed of such matters to ensure accuracy. Current status: During the year ending June 30, 2021, the Organization experienced turn over in the accounting department and experienced staffing shortages related to the COVID-19 pandemic and implementation of the streamlined closing process was delayed. Management Response: House of Hope, Inc has been significantly impacted by a staffing shortage due to the pandemic. As a result, some of our systems and processes have not been as timely as would occur with full staffing of our finance department. A monthly closing schedule with staff assignments have been implemented.

Corrective Action Plan

2020-01: Year End Closing Schedule ? Timely Reconciliations: Criteria: Timely preparation of account reconciliations is essential to producing accurate and relevant financial reports. Condition: During the audit a number of adjusting journal entries were proposed by both the audit team and management. These entries were to adjust errors or to reflect year-end accruals. Cause: Existing closing procedures should be reviewed and updated to ensure that they are properly followed in producing timely reports and reducing year-end adjustments. Effect: The results were delays in producing reconciliations, account analyses and other financial reports needed by management and the auditors. Recommendation: We believe that the year-end closing could proceed more quickly by incorporating a closing schedule that indicates who will perform each procedure and when completion of each procedure is due and accomplished. The timing of specific procedures could be coordinated with the timing of management?s or the auditor?s need for information. All reconciliations should be prepared and reviewed by those informed of such matters to ensure accuracy. Current status: During the year ending June 30, 2021, the Organization experienced turn over in the accounting department and experienced staffing shortages related to the COVID-19 pandemic and implementation of the streamlined closing process was delayed. Management Response: House of Hope, Inc has been significantly impacted by a staffing shortage due to the pandemic. As a result, some of our systems and processes have not been as timely as would occur with full staffing of our finance department. A monthly closing schedule with staff assignments have been implemented.

Prior Finding References

2020-001

About Cash Management, Reporting →
2021-001
Activities Allowed or Unallowed / Cost Allowability / Reporting
MATERIAL WEAKNESS

The Organization did not have a system or process for the approval of timesheet records or employee certification that he/she was engaged solely in activities that support a single cost objective. Cause: The Organization did not establish time and effort reporting. Effect: The Organization is not in compliance with federal and state requirements of time and effort reporting for employees. Recommendation: We recommend that the Organization implement a process to review and approve employees? time and effort worked on federal programs and state projects. Employees who work solely on a single cost objective must furnish a semi-annual certification that he/she has been engaged solely in activities that support the single cost objective. The certification should be reviewed and approved by the employees? department head. Employees who work on multiple activities or cost objectives must complete a personnel activity report which demonstrates the amount of actual time spent working on the federal or state grant objectives, on at least a monthly basis. The personnel activity report should be approved by the department head. Management Response: The Organization will continue to strengthen our internal controls by having the employees complete the required Time and Effort certifications monthly or semiannually with further review and approval by the respective Department Heads. The employees will certify their monthly personnel activity reports indicating actual time spent working on multiple activities or cost objectives, while employees who worked on a single cost objective will submit semi-annual Time and Effort certifications reviewed and approved by their Department Heads.

Show full finding ▾
Full finding narrative

2021-01: Internal Controls Over Time and Effort Reporting Federal Program: Block Grants for Prevention and Treatment of Substance Abuse - 93.959 Criteria: Federal and state award guidelines state that an employee who works, in whole or part, on a federal program or state project or cost objective must document their time and effort spent working on each federal program, state project, or cost objective Condition: The Organization did not have a system or process for the approval of timesheet records or employee certification that he/she was engaged solely in activities that support a single cost objective. Cause: The Organization did not establish time and effort reporting. Effect: The Organization is not in compliance with federal and state requirements of time and effort reporting for employees. Recommendation: We recommend that the Organization implement a process to review and approve employees? time and effort worked on federal programs and state projects. Employees who work solely on a single cost objective must furnish a semi-annual certification that he/she has been engaged solely in activities that support the single cost objective. The certification should be reviewed and approved by the employees? department head. Employees who work on multiple activities or cost objectives must complete a personnel activity report which demonstrates the amount of actual time spent working on the federal or state grant objectives, on at least a monthly basis. The personnel activity report should be approved by the department head. Management Response: The Organization will continue to strengthen our internal controls by having the employees complete the required Time and Effort certifications monthly or semiannually with further review and approval by the respective Department Heads. The employees will certify their monthly personnel activity reports indicating actual time spent working on multiple activities or cost objectives, while employees who worked on a single cost objective will submit semi-annual Time and Effort certifications reviewed and approved by their Department Heads.

Corrective Action Plan

2021-01: Internal Controls Over Time and Effort Reporting Federal Program: Block Grants for Prevention and Treatment of Substance Abuse - 93.959 Criteria: Federal and state award guidelines state that an employee who works, in whole or part, on a federal program or state project or cost objective must document their time and effort spent working on each federal program, state project, or cost objective Condition: The Organization did not have a system or process for the approval of timesheet records or employee certification that he/she was engaged solely in activities that support a single cost objective. Cause: The Organization did not establish time and effort reporting. Effect: The Organization is not in compliance with federal and state requirements of time and effort reporting for employees. Recommendation: We recommend that the Organization implement a process to review and approve employees? time and effort worked on federal programs and state projects. Employees who work solely on a single cost objective must furnish a semi-annual certification that he/she has been engaged solely in activities that support the single cost objective. The certification should be reviewed and approved by the employees? department head. Employees who work on multiple activities or cost objectives must complete a personnel activity report which demonstrates the amount of actual time spent working on the federal or state grant objectives, on at least a monthly basis. The personnel activity report should be approved by the department head. Management Response: The Organization will continue to strengthen our internal controls by having the employees complete the required Time and Effort certifications monthly or semiannually with further review and approval by the respective Department Heads. The employees will certify their monthly personnel activity reports indicating actual time spent working on multiple activities or cost objectives, while employees who worked on a single cost objective will submit semi-annual Time and Effort certifications reviewed and approved by their Department Heads.

About Activities Allowed or Unallowed, Allowable Costs / Cost Principles, Reporting →

Data source: This information comes from the Federal Audit Clearinghouse, the official repository of Single Audit data. All data is public domain. Verify this organization's audit history at fac.gov.

Are you this organization?

Track your findings and corrective action plans across audit cycles.

Start tracking findings →

Do you fund this organization?

Monitor subrecipient audit findings and compliance status.

Start monitoring →

Product

Resources

Legal

Single Audit Intelligence is an independent tool powered by Federal Audit Clearinghouse data. Not affiliated with GSA, OMB, or any federal agency.

© 2026 Single Audit Intelligence. All data is public domain.