Homeless and Hunger Coalition of Northwest Florida, Inc.

Federal Agency: U.S. Department of Housing and Urban Development Program: Emergency Solutions Grant & Emergency Solutions Grant – CV (CFDA No. 14.231) Finding Type: Material Weakness Questioned Costs: None Material Weakness: As discussed at Finding 2023-001, the Coalition's internal control procedure, which requires both the executive director and an additional authorized signer to approve invoices, has not been implemented. This step is essential for ensuring that expenses align with grant requirements, thereby offering a safeguard through the implementation of the Coalition's internal controls. The existing procedures mandate supervisory approval of documentation before the authorization of expenses for payment, but documentation was apparently not filed or notated correctly. This situation provides the opportunity for expenditures that do not comply with grant stipulations to occur without being detected promptly. It is recommended that the Coalition implement and follow controls adopted, including requiring the Executive Director along with one additional authorized signer to review all supporting documentation related to each expense and upon review, notate their approval with signature as audit evidence. The Coalition will implement the correction action plan discussed at Finding 2023-001 over all federal and state programs.

Federal Agency: U.S. Department of Housing and Urban Development Program: Emergency Solutions Grant & Emergency Solutions Grant – CV (CFDA No. 14.231) Finding Type: Significant Deficiency Questioned Costs: None Condition: The Coalition does not have controls in place to ensure that level of effort and earmarking grant requirements are met. Criteria: The Coalition should have controls in place in order to provide reasonable assurance that level of effort, and earmarking grant requirements are met. Cause: Lack of proper controls over grant compliance requirements. Effect: The situation provides an opportunity for specific benchmarks within grant agreements to not be met and detected promptly. Recommendation: The Coalition should implement controls to ensure that all level of effort, earmarking, and other benchmarks as indicated in the grant agreements are met. Views of Responsible Officials and Planned Corrective Action: The Coalition shall maintain ongoing and updated guidance compliance requirements regarding the deliverables and administrative fees on each individual funding source as stated in grant documents and amendments from private, state, and federal sources. It will be the responsibility of executive staff to review on a monthly basis to make sure current guidance is followed.

Federal Agency: U.S. Department of Housing and Urban Development Program: Emergency Solutions Grant & Emergency Solutions Grant – CV (CFDA No. 14.231) Finding Type: Material Weakness Questioned Costs: None Condition: Documentation of proper approval on 14 selected major program expense transactions could not be located. Criteria: The Coalition’s internal controls require an authorized signature of approval by the Operations Director for all payment requests. Cause: Procedures are in place for supervisory approval of documentation before expenses are authorized for payment, but documentation was apparently not filed or notated correctly. Effect: The situation provides opportunity for unauthorized transactions to be made and not detected in a timely manner. Recommendation: Management should review all supporting documentation for every disbursement and, if approved, notate their approval with signature as audit evidence. Views of Responsible Officials and Planned Corrective Action: All check requests will be reviewed and signed by the Executive Director and initialed by one authorized check signer. Invoices will be reviewed and initialed by the Executive Director and initialed by one authorized check signer. Checks will be signed by two authorized individuals. Checks and invoices will be reviewed for completion prior to copying and distributing.

2021-003 Lack of Approval on Major Program Disbursements Federal Agency: U.S. Department of Housing and Urban Development Program: Emergency Solutions Grant & Emergency Solutions Grant ? CV (CFDA No. 14.231) Finding Type: Material Weakness Questioned Costs: None Condition: Documentation of proper approval on 14 selected major program expense transactions could not be located. In addition, two selected expense transactions paid with a check were missing one of two authorized signatures. Criteria: The Coalition?s internal controls require an authorized signature of approval by the Operations Director for all payment requests. Once approved the request for payment is sent to the Executive Director for review and signature on check disbursement. A second signature must also be obtained by a Board Member before the items becomes a fully negotiable legal document (dual signature requirement).Cause: Procedures are in place for supervisory approval of documentation before expenses are authorized for payment, but documentation was apparently not filed or notated correctly. Effect: The situation provides opportunity for unauthorized transactions to be made and not detected in a timely manner. Recommendation: Management should review all supporting documentation for every disbursement and, if approved, notate their approval with signature as audit evidence. Also, when dual signatures are required, per Coalition policy, two authorized signatures on each check should be made before disbursement is issued. Views of Responsible Officials and Planned Corrective Action: All check requests will be reviewed and signed by the Operations Director and initialed by one authorized check signer. Invoices will be reviewed and initialed by the Operations Director and initialed by one authorized check signer. Checks will be signed by two authorized individuals. Checks and invoices will be reviewed for completion prior to copying and distributing.