EIN: 640836580
UEI: VWJJK8276ZX1
Data as of August 27, 2026
Management decision deadline — for entities that funded this organization
The FAC accepted this audit on October 22, 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 April 22, 2026 (127 days ago).
What is a management decision? →Criteria or Specific Requirement — Management is responsible for establishing and maintaining internal control over compliance. Internal control should allow management or employees, to identify fraudulent properties and fraudulent tenants before entering into the program. Condition — The external auditors noted that while there are some controls in place, they were not sufficient to identify the fraudulent properties and tenants that were approved for the granting programs. In addition, there was collusion involved by two case managers that could not have been prevented by controls in place. Due to these reasons, the external auditors determined that the control finding is only a significant deficiency and not a material weakness. Effect — The lack of controls around monitoring of new properties and tenants enrolled in the grant programs resulted in fraudulent reimbursement requests being submitted under the following grants: a) Housing Opportunities For Persons With Aids (ALN #14.241) b) Emergency Solutions Grant (ALN #14.231) Cause — Lack of sufficient monitoring controls over applicants, specific to property and tenant validation. Recommendation — The Organization should implement more stringent controls to verify the applying tenant is who they claim to be, verify the ownership and history of the property being rented, and involve more individuals at various stages in the review process to strengthen the risk against collusion.
Show full finding ▾Hide full finding ▴Criteria or Specific Requirement — Management is responsible for establishing and maintaining internal control over compliance. Internal control should allow management or employees, to identify fraudulent properties and fraudulent tenants before entering into the program. Condition — The external auditors noted that while there are some controls in place, they were not sufficient to identify the fraudulent properties and tenants that were approved for the granting programs. In addition, there was collusion involved by two case managers that could not have been prevented by controls in place. Due to these reasons, the external auditors determined that the control finding is only a significant deficiency and not a material weakness. Effect — The lack of controls around monitoring of new properties and tenants enrolled in the grant programs resulted in fraudulent reimbursement requests being submitted under the following grants: a) Housing Opportunities For Persons With Aids (ALN #14.241) b) Emergency Solutions Grant (ALN #14.231) Cause — Lack of sufficient monitoring controls over applicants, specific to property and tenant validation. Recommendation — The Organization should implement more stringent controls to verify the applying tenant is who they claim to be, verify the ownership and history of the property being rented, and involve more individuals at various stages in the review process to strengthen the risk against collusion.
Views of Responsible Officials and Planned Corrective Action — Grace House has created and will implement the following new controls: a) Every reimbursement request made by any employee will require approval from the Executive Director, Assistant Director, or board of directors vote where appropriate. b) For rental invoices, the immediate supervisor must approve all rental invoices for payment processing before being submitted to the administrative office. If the immediate supervisor is absent, the invoice must be approved by the Executive Director or Assistant Director. c) When a new client invoice is submitted for approval for an existing approved landlord, the invoice along with the traditional client identifying information will be reviewed by both the immediate supervisor and the Executive Director. d) When a new client invoice is submitted for approval for a new landlord, the invoice will be reviewed by both the immediate supervisor and the Executive Director. Each invoice requires a W9 form to validate the legal name, property records verifying ownership matching the legal name on the W9, a picture ID of the individual listed on the W9, and a copy of the agreement if a property management company is listed on the W9 instead of an individual. e) All new clients and landlords will be researched through an investigative software to prove there is no evidence of false identity. f) Grace House has contracted an independent certified fraud investigator to conduct periodic reviews for compliance with fraud prevention policies at least semiannually but beginning quarterly through 2025.
2023-001
FAC accepted this audit on October 16, 2024 — management decision was due April 16, 2025.
Significant Deficiency not considered to be Material Weakness 2023-1 Criteria or Specific Requirement - Management is responsible for establishing and maintaining internal control over compliance. Internal control should allow management or employees, to identify fraudulent properties and fraudulent tenants before entering into the program. Condition - The external auditors noted that while there are some controls in place, they were not sufficient to identify the fraudulent properties and tenants that were approved for the granting programs. In addition, there was collusion involved by two case managers that could not have been prevented by controls in place. Due to these reasons, the external auditors determined that the control finding is only a significant deficiency and not a material weakness. Effect – The lack of controls around monitoring of new properties and tenants enrolled in the grant programs resulted in fraudulent reimbursement requests being submitted under the following grants: a) Housing Opportunities For Persons With Aids (ALN #14.241) b) Emergency Solutions Grant (ALN #14.231) Cause – Lack of sufficient monitoring controls over applicants, specific to property and tenant validation. Recommendation –The Organization should implement more stringent controls to verify the applying tenant is who they claim to be, verify the ownership and history of the property being rented, and involve more individuals at various stages in the review process to strengthen the risk against collusion.
Show full finding ▾Hide full finding ▴Significant Deficiency not considered to be Material Weakness 2023-1 Criteria or Specific Requirement - Management is responsible for establishing and maintaining internal control over compliance. Internal control should allow management or employees, to identify fraudulent properties and fraudulent tenants before entering into the program. Condition - The external auditors noted that while there are some controls in place, they were not sufficient to identify the fraudulent properties and tenants that were approved for the granting programs. In addition, there was collusion involved by two case managers that could not have been prevented by controls in place. Due to these reasons, the external auditors determined that the control finding is only a significant deficiency and not a material weakness. Effect – The lack of controls around monitoring of new properties and tenants enrolled in the grant programs resulted in fraudulent reimbursement requests being submitted under the following grants: a) Housing Opportunities For Persons With Aids (ALN #14.241) b) Emergency Solutions Grant (ALN #14.231) Cause – Lack of sufficient monitoring controls over applicants, specific to property and tenant validation. Recommendation –The Organization should implement more stringent controls to verify the applying tenant is who they claim to be, verify the ownership and history of the property being rented, and involve more individuals at various stages in the review process to strengthen the risk against collusion.
Views of Responsible Officials and Planned Corrective Action – Grace House has created and will implement the following new controls: a) Every reimbursement request made by any employee will require approval from the Executive Director, Assistant Director, or board of directors vote where appropriate. b) For rental invoices, the immediate supervisor must approve all rental invoices for payment processing before being submitted to the administrative office. If the immediate supervisor is absent, the invoice must be approved by the Executive Director or Assistant Director. c) When a new client invoice is submitted for approval for an existing approved landlord, the invoice along with the traditional client identifying information will be reviewed by both the immediate supervisor and the Executive Director.d) When a new client invoice is submitted for approval for a new landlord, the invoice will be reviewed by both the immediate supervisor and the Executive Director. Each invoice requires a W9 form to validate the legal name, property records verifying ownership matching the legal name on the W9, a picture ID of the individual listed on the W9, and a copy of the agreement if a property management company is listed on the W9 instead of an individual. e) All new clients and landlords will be researched through an investigative software to prove there is no evidence of false identity. f) Grace House has contracted an independent certified fraud investigator to conduct periodic reviews for compliance with fraud prevention policies at least semiannually but beginning quarterly through 2025
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.
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