FORT WORTH AREA HABITAT FOR HUMANITY, INC.

FINDING #2019-001 ? U.S. Department of Housing and Urban Development ? Community Development Block Grant Cluster (CFDA 14.218); L. Financial Reporting and Performance Reporting Criteria: Financial Reports and Performance Reports: On a quarterly basis, Subrecipient (?Habitat?) shall report to the City of Fort Worth all applicants for employment, and all applicants for employment by contractor and subcontractor. In addition, Habitat shall advertise available positions to the public open for competition and provide documentation to the City of Fort Worth within the quarterly performance report that demonstrates such advertisement in the form of a printout of the Texas Workforce Commission posting, copy of newspaper advertisement, copy of flyers, and a listing of locations where flyers were distributed, and the like. Finally, the quarterly performance report should also include information about all contracts that were awarded during the period by contractor and subcontractor. Condition: We noted that the performance reports (Quarterly Performance Report) were not submitted to the City of Fort Worth during the year. Effect: Habitat did not meet the financial and performance reporting requirements stipulated in the United States Department of Housing and Urban Development contract for this grant. Cause: The reporting requirements of this grant were overlooked by the grant administrator. The grant administrator is responsible for the reporting requirements for this grant. Recommendation: Habitat should ensure that it submits all required reports as required in the grant contract in a timely manner. Views of Responsible Officials: Management agrees with the finding above and will ensure all reporting requirements are met going forward. See Part V for management?s planned corrective actions.

FINDING #2019-001 ? U.S. Department of Housing and Urban Development ? Community Development Block Grant Cluster (CFDA 14.218); L. Financial Reporting and Performance Reporting Response: In response to the finding, management plans to take the following corrective actions: - Evaluate current staff assignments and explore more effective use of staff in administering grant accounting and reporting. - Maintain a comprehensive, broadly communicated grant listing and related details to create common understanding of grant activity across departments. - The Director of Accounting will continue to review all grant reporting, performance reports, cash disbursements, and reimbursement requests prior to submission by assigned staff. - As of June 25, 2020, Habitat has properly submitted the required reports for the first quarter of 2020. Responsible Party: Director of Accounting Estimated Completion Date: Immediately