ALMOST HOME, INC.Non-Profit

2025-002 Eligibility — Temporary Assistance for Needy Families and Emergency Solutions Grants Program Federal agency: U.S. Department of Health and Human Services (TANF); U.S. Department of Housing and Urban Development (ESG). Assistance Listings: 93.558 and 14.231. Federal award numbers were not available; pass-through entity identifying numbers: TANF (Adams County); DOLA DOH ESG, DOLA DOH HSP, DOLA DOH NS2G, DOLA DOH HRP, and DOLA DOH HPAP (State of Colorado); Encampment Resolution (Adams County). Award year: July 1, 2024 through June 30, 2025. Pass-through entities: Adams County (TANF and ESG); State of Colorado, Department of Local Affairs, Division of Housing (ESG). Federal expenditures: $1,079,200 (TANF) and $984,865 (ESG). Compliance requirement: Eligibility. Type of finding: material weakness in internal control over compliance. Repeat finding: Yes - prior-year finding 2024-02. Condition: During our audit of the Temporary Assistance for Needy Families (TANF) program (Assistance Listing 93.558) and the Emergency Solutions Grants Program (Assistance Listing 14.231) for the year ended June 30, 2025, it was noted that the Organization did not maintain adequate supporting documentation for determining client eligibility. Specifically, of the 40 selections tested, the Organization was unable to provide documentation supporting income determination for 1 selection, and documentation supporting United States citizenship or qualified alien status was missing for two selections. Our sample was not intended to be, and was not, a statistically valid sample. Criteria: In accordance with TANF program requirements and 2 CFR § 200.303 (internal controls), recipients must maintain sufficient records to support eligibility determinations. Adequate supporting documentation is essential to ensure compliance with federal guidelines and to prevent improper payments. Cause: The Organization administers the Family Shelter program, which serves individuals who are often unable to provide conventional source documentation supporting income or citizenship status because they are homeless or otherwise without typical identifying records. In those circumstances, the Organization's practice is to obtain a signed statement from the applicant attesting to homelessness, lack of income, or other eligibility criteria in lieu of source documentation. The Organization has a formalized practice through the required client file checklist and written policy requiring case managers to retain either source documentation or a signed self-attestation for each eligibility attribute in the individual client file. The policy was not adhered to by an employee and was not discovered by the quality/compliance control. As a result, for the items tested, neither source documentation nor a signed attestation was retained. Effect: The Organization is unable to demonstrate, through documentation retained in the individual client file, that each eligibility determination was supported by either source documentation or a signed self-attestation. The absence of retained eligibility documentation means that the Organization's internal control cannot be relied upon to ensure that benefits are provided only to eligible TANF program participants and hinders the Organization's ability to demonstrate compliance during federal or pass-through entity monitoring reviews, increasing the risk that material noncompliance with the eligibility compliance requirement could occur without timely detection. Questioned Costs None. No questioned costs are reported because the condition relates to the retention of eligibility documentation rather than to payments to known ineligible participants. Eligibility determinations were performed at intake and signed self-attestation forms were obtained in accordance with the Organization's practice; however, the completed forms were not retained in the individual client files. The audit did not identify any payments to participants determined to be ineligible. Recommendation We recommend the Organization (a) develop and implement a written policy and procedure requiring case managers, at the time of intake, to obtain and retain in the individual client file documentation supporting each TANF eligibility attribute - including income determination and U.S. citizenship or qualified alien status; the policy should expressly permit a signed self-attestation from the client to serve as the supporting documentation when, due to homelessness or other circumstances, conventional source documentation cannot reasonably be obtained; (b) provide periodic training to intake staff on the documentation requirements and acceptable forms of evidence; and (c) implement periodic supervisory review of completed intake files to confirm compliance with the documented retention policy. Management’s Response See corrective action plan.

2025-003 Expenditure Approval — Temporary Assistance for Needy Families and Emergency Solutions Grants Program Federal agency: U.S. Department of Health and Human Services (TANF); U.S. Department of Housing and Urban Development (ESG). Assistance Listings: 93.558 and 14.231. Federal award numbers were not available; pass-through entity identifying numbers: TANF (Adams County); DOLA DOH ESG, DOLA DOH HSP, DOLA DOH NS2G, DOLA DOH HRP, and DOLA DOH HPAP (State of Colorado); Encampment Resolution (Adams County). Award year: July 1, 2024 through June 30, 2025. Pass-through entities: Adams County (TANF and ESG); State of Colorado, Department of Local Affairs, Division of Housing (ESG). Federal expenditures: $1,079,200 (TANF) and $984,865 (ESG). Compliance requirement: Allowable costs/cost principles. Type of finding: material weakness in internal control over compliance. Repeat finding: No. Condition: During our audit of the Temporary Assistance for Needy Families (TANF) program (Assistance Listing 93.558) and the Emergency Solutions Grants (ESG) program (Assistance Listing 14.231) for the year ended June 30, 2025, it was noted that the Organization did not consistently follow its established policies and procedures requiring management approval prior to the disbursement of program expenditures. Specifically, 26 of the 80 expenditures tested were processed without evidence of the required management approval in accordance with the Organization's documented policies and procedures. Our sample was not intended to be, and was not, a statistically valid sample. Criteria: In accordance with 2 CFR § 200.303, non-federal entities are required to establish and follow internal controls over federal programs that provide reasonable assurance of compliance with federal statutes, regulations, and the terms and conditions of federal awards. The Organization's internal policies require management approval prior to the disbursement of program-related expenditures. Cause: The Organization's documented control requires management approval of each disbursement prior to payment; however, approvals are commonly obtained verbally and there is no standard approval form retained with each disbursement package. As a result, while approvals are routinely performed in practice, documented evidence of the approval is not consistently retained in the disbursement file. Effect: The Organization is unable to demonstrate through its own records that the required management approval was obtained prior to payment for the affected disbursements. The absence of retained approval evidence in the disbursement file means that the Organization's internal control cannot be relied upon to prevent or detect unallowable, unreasonable, or unauthorized costs being charged to the federal programs, increasing the risk that material noncompliance with the allowable costs/cost principles compliance requirements could occur without timely detection. Questioned Costs: None. No questioned costs are reported because the condition relates to the retention of approval evidence rather than to unallowable or unauthorized expenditures. Management approvals were performed at the time of disbursement in accordance with the Organization's practice; however, the approvals were obtained verbally and documented evidence was not retained in the disbursement files. The expenditures tested were otherwise supported and were allowable under the applicable program requirements, and the audit did not identify any unallowable costs charged to the programs. Recommendation: We recommend the Organization (a) implement a standard approval form or signature block that is completed, signed, and dated by each required reviewer prior to issuance of payment and retained as part of the disbursement support package for every TANF and ESG disbursement; (b) update its written disbursement procedures to require that the completed approval form be retained in the disbursement file at the time of payment, in lieu of verbal approval; and (c) implement a periodic supervisory review of disbursement files to confirm that the required approval evidence is consistently retained, with results communicated to the Executive Director. Management's Response: See corrective action plan.

Condition: During the audit, it was noted that the organization did not have sufficient knowledge or formal procedures in place to accurately prepare the Schedule of Expenditures of Federal Awards (SEFA) as required under 2 CFR § 200.510(b). The initial SEFA provided to auditors contained errors, including incomplete or incorrect reporting of federal expenditures. Criteria: In accordance with 2 CFR § 200.510(b), auditees must prepare a SEFA for the period covered by the auditee’s financial statements. The SEFA must be complete and accurate and include all federal awards expended, including federal agency name, assistance listing number (formerly CFDA), and amounts expended. Cause: The organization does not currently have formalized procedures to ensure accurate SEFA preparation. There is limited oversight or review of the SEFA prior to submission to the auditors. Effect: Inaccurate or incomplete reporting of federal expenditures on the SEFA may result in noncompliance with federal requirements, misstatement of expenditures, and potential issues with the Federal Audit Clearinghouse or federal granting agencies. Questioned Costs None noted. Recommendation We recommend the organization develop and implement formal procedures for preparing the SEFA, including staff training, reconciliation processes, and supervisory review. The organization should also consider periodic internal reviews and utilize available guidance to ensure compliance with 2 CFR § 200.510(b). Management’s Response See corrective action plan.

Condition: During our audit of the Temporary Assistance for Needy Families (TANF) program, it was noted that the organization did not maintain adequate supporting documentation for determining client eligibility. In several client case files reviewed, critical documents relating to legal residency in the United States of America were missing or incomplete. Criteria: In accordance with TANF program requirements and 2 CFR § 200.303 (internal controls), recipients must maintain sufficient records to support eligibility determinations. Adequate supporting documentation is essential to ensure compliance with federal guidelines and to prevent improper payments. Cause: The organization’s internal controls over eligibility documentation and file retention were not consistently followed or were inadequately designed. Effect: Failure to maintain adequate eligibility documentation increases the risk of providing benefits to ineligible individuals, leading to noncompliance and potential questioned costs. It also hinders the ability to demonstrate compliance during audits or monitoring reviews. Questioned Costs None specifically identified during testing; however, the lack of documentation presents a risk for potential future questioned costs. Recommendation We recommend the organization update their intake forms to incorporate all required eligibility criteria for the TANF program. Management’s Response See corrective action plan.