Nashville Safe Haven Family Shelter, Inc.Non-Profit

Finding 2024-001: Allowable Costs Federal Agency: U.S. Department of Health and Human Services Federal Program Name: Temporary Assistance for Needy Families Assistance Listing Numbers: 93.558 Identification Number and Year: C1VAEDW8UXH6 2024 Award Period: 1/1/2024 – 9/30/2024 Type of Finding: Significant Deficiency in Internal Control over Compliance and Compliance Criteria: Only expenses incurred can be charged to the grant. Condition: During testing of expenses allocated to the federal program, it was noted two selections of a total of 29 selections had a higher amount charged to the grant than what was incurred. Questioned Costs: $8 Context: More expenses were charged to the grant than were incurred. Cause: The mileage reimbursement rate changed during the reimbursement period. The amount used to calculate the expenses charged to the grant were calculated using the higher mileage reimbursement rate for the entire reimbursement period, which was higher than the amount actually paid to the employee. Effect: Expenses were charged to the grant that were not incurred. Repeat Finding: No Recommendation: We recommend that management compares the mileage reimbursement per the grant allocation worksheets to the mileage reimbursement register to ensure only expenses incurred is being allocated to the grant. View of Responsible Officials and Planned Corrective Actions: Nashville Safe Haven Family Shelter, Inc. agrees with the finding. Nashville Safe Haven Family Shelter, Inc. will only change mileage reimbursement rates each year at the beginning of a calendar month, since allocations are calculated based on a single mileage rate for the month. Furthermore, the Organization will work with their Salesforce consultants to ensure the mechanism used to allocate staff costs is accurately programmed to calculate costs not to exceed actual amounts paid. Lastly, the Organization will make it a practice to compare the mileage reimbursement per the grant allocation worksheets to the mileage reimbursement register each month before completion of invoicing. Name of the Contact Person Responsible for Corrective Action: Ben Pinon, Finance Director Planned Completion Date for Corrective Action Plan: August 2025 If the U.S. Department of Health and Human Services has questions regarding this schedule, please call Ben Pinon at 615-256-8195 ext 125.

ITEM # 2023-001 SPECIAL TESTS – RENT REASONABLENESS Continuum of Care Assistance Listing No. 14.267 Department of Housing and Urban Development Criteria For Continuum of Care grants, Uniform Guidance requires a compliance special test for reasonable rental rates stating “where grants are used to pay rent for individual housing units, the rent paid must be reasonable in relation to rents being charged for comparable units taking into account relevant features. In addition, the rents may not exceed rents currently being charged by the same owner for comparable unassisted units, and the portion of rents paid with grant funds may not exceed HUD-determined fair market rents.” Condition and Context Safe Haven used grant money to pay rent for an individual housing unit in excess of the HUDdetermined fair market rent for Davidson County. Questioned Cost The costs in excess of fair market rents totaled $206.50. Cause Safe Haven performed and reasonable rent analysis and concluded the rent was not reasonable; however, approval to pay and proceed with the lease still occurred. Effect Safe Haven was not in compliance with the special tests compliance requirement of the Continuum of Care agreements. Recommendation We recommend Safe Haven pay up to the HUD-determined fair market rent when leases exceed these rates and use non-grant money to cover the amount in excess. Views of Responsible Officials and Planned Corrective Action Safe Haven concurs with the finding and will adhere to the rent reasonableness requirements of Continuum of Care awards. To ensure compliance with rent reasonableness, management will vouch all rent reasonableness analyses to their respective disbursement request and ensure amounts disbursed do not exceed HUD-determined fair market rent rates.