Haven House IncNon-Profit

Statement of Condition: Haven House submitted the data collection form after the required due date. Criteria: The audit shall be completed and the data collection form and reporting package shall be electronically transmitted within the earlier of 30 days after receipt of the auditor's reports, or nine months after the end of the audit period. If the due date falls on a Saturday, Sunday, or Federal holiday, the reporting package is due the next business day (2 CFR 200.512(a)). Cause: Haven House did not submit the June 30, 2023, data collection form and reporting package by the due date. Haven House received more federal funding than they had in previous years, and they were unaware of this deadline. Effect: Haven House is not in compliance with Federal Award data collection form requirements and could jeopardize future federal funding. Recommendation: Haven House should implement procedures and controls to ensure that all future audit reports and data collection forms are completed in a timely manner, including proactively tracking federal award totals expended prior to the fiscal year end.

Statement of Condition: Haven House did not include the following required clause in their contract with Nieto Custom Builders, Inc.: “The work to be performed under this Agreement is a project assisted under a program providing direct Federal financial assistance from HUD and is subject to the requirements of Section 3 of the Housing and Urban Development Act of 1968, as amended_ (12 U.S.C. 1701). Section 3 requires that to the greatest extent feasible opportunities for training and employment be given to low- and very low-income residents of the project area, and that contracts for work in connection with the project be awarded to business concerns that provide economic opportunities for low- and very low-income persons residing in the metropolitan area in which the project is located.” Criteria: Per the grant agreement with the City of Rio Rancho, compliance with the provisions of Section 3 of the HUD Act of 1968, as amended, and as implemented by the regulations set forth in 24 CFR 135 shall be a condition of the Federal financial assistance provided under this contract and binding upon the subrecipient and any of the subrecipient's subrecipients and subcontractors. Cause: Haven House did require the contractor to provide the required reports but did not modify their standard contract to include the required clause. Effect: Per the grant agreement with the City of Rio Rancho, failure to fulfill HUD Section 3 requirements shall subject Haven House and subcontractors to those sanctions specified by the agreement through which federal assistance is provided. Recommendation: We recommend that Haven House carefully review all grant award agreements prior to initiating contracts with subcontractors or subrecipients to ensure compliance with the requirements of all agreements and federal funding.

Statement of Condition: Haven House did not submit 4 out of 4 of the required quarterly reports to the City of Rio Rancho by the deadlines detailed in the grant agreement. Criteria: The agreement with the City of Rio Rancho stipulated that a report be submitted by the 15th day of the month following each quarter between July 1, 2022, and June 30, 2023. Cause: Haven House was submitting weekly progress reports, including photos, during the construction of the project. They were unaware that these reports did not meet the criteria of the contract. Effect: Failure to meet the requirements of grant agreements may result in federal grants not being reimbursed or future awards not being received from the grantor. Reporting is also a compliance requirement with federal regulations. Recommendation: We advise conducting thorough reviews of grant agreements and contracts to ensure compliance with all stipulated requirements. Additionally, close collaboration with grantors is recommended to seek clarification on any ambiguous clauses within the agreements. Proactively reaching out to grantors to confirm that submitted reports align with their expectations can effectively preempt potential issues.