Austin Street Center

Assistance Listing number: 14.267 Assistance Listing title: Continuum of Care Federal award identification number and year: TX0545L6T002001; 11/1/2021 - 10/31/2022 Name of federal agency: U.S. Department of Housing and Urban Development Name of pass-through entity: N/A Repeat finding: No Criteria: All rental contracts entered into should be reviewed for compliance with the grant. Condition: The Organization utilizes a Rent Reasonableness Form to determine if proposed rental contracts are compliant with the grant. Forms are reviewed by supervisors with direct knowledge of the grant. Cause: During our audit, we discovered one rental contract for which the Rent Reasonableness Form was not reviewed for compliance with the grant. Effect: The Organization could have entered into a rental contract that was not in compliance with the grant. Questioned cost: No questioned costs requiring disclosure. Recommendation: We recommend that management review all Rent Reasonableness Forms before entering into a rental contract. Views of responsible officials: Management agrees with the above finding.

Single Audit Corrective Action Plan Completed March 30, 2023 Year Ended: October 31, 2022 Finding Number: 2022-001 Name of Individual Responsible for Corrective Action: Alissa Rodgers, Controller Anticipated Completion Date: March 16, 2023 Corrective Action Plan: Previously, the Rapid Re-Housing Program utilized a Housing Location checklist as a training and guidance document which was reviewed upon submission by program leadership. However, that process did not require that program leadership sign off on receiving and reviewing those documents for compliance. Once we were notified by the auditors of the recommendation that we revise the housing location process to include official signature to indicate receipt and review of all required documents, we immediately created an updated Housing Location process checklist and put it into practice. The updated checklist is included on the second page of this corrective action plan and has already been utilized to review and approve two Rapid Re-Housing program move-ins. Signed, Dustin Perkins Senior Director of Client Solutions and Strategy Austin Street Center

SECTION III - SUMMARY OF FEDERAL AWARD FINDINGS AND QUESTIONED COSTS Finding number: 2021-001 Assistance Listing number: 14.231 Assistance Listing title: Emergency Solutions Grant Federal award identification number and year: Various Name of federal agency: U.S. Department of Housing and Urban Development Name of pass-through entity: City of Dallas and Texas Department of Housing and Community Affairs Repeat finding: No Criteria: The Organization should only request funds for reimbursement that related to the current fiscal period. Condition: The Organization utilizes an Excel spreadsheet to track all allowable expenses incurred during the period for the drawing down of reimbursements. Cause: During our audit, we discovered the Organization's spreadsheet erroneously included several prior year expenses in the current year spreadsheet that were mistakenly resubmitted for reimbursement. Effect: The Organization mistakenly resubmitted several expenses that had been previously reimbursed in the prior grant period. Questioned cost: No questioned costs requiring disclosure. Recommendation: We recommend that management perform a detailed review of the grant spreadsheet before drawing down federal funds to ensure that all expenditures included within the spreadsheet represent current fiscal year expenditures. Views of responsible officials: Austin Street management agrees with this finding of a few expenses totaling $1,935 being drawn down in error and will create a corrective action plan to prevent this in the future.

Year Ended: October 31, 2021 Finding number: 2021-001 Name of Individual Responsible for Corrective Action: Alissa Rodgers, Controller Anticipated Completion Date: August 1, 2022 Corrective Action Plan: In previous years, the grant administration department has operated independently of the accounting department. As of FY22 the grant administration department has now been incorporated in with the accounting department. In addition, Austin Street has purchased a grant management software, Amplifund. Amplifund is in the implementation and set up phases and should be fully functional by August 1, 2022. This system will account for every expense being included in a draw request. For each draw down, the information will be pulled directly from the financial system and uploaded into the grant management software without manipulation. Once the draw reporting is complete, accounting management will review prior to any draw requests being submitted. Alissa Rodgers Controller Austin Street Center