HELP USA, Inc. and AffiliatesNon-Profit

2025-004: Activities Allowed or Unallowed and Allowable Costs/Cost Principles ALN 93.558 Passed through the City of New York, Human Resources Administration from the U.S. Department of Health and Human Services - CT1-069-20248802635 and CT1-069-20248800455 - Significant Deficiency in Internal Control Criteria: Uniform Guidance requires that charges to federal awards must be based on records that are supported by a system of internal controls that provide reasonable assurance about the accuracy, allowability and proper allocation of the charges. Documentation should be maintained for the distribution of an employee's salary and wages among specific activities or cost objective if the employee works on multiple activities. Condition: Inconsistencies in recordkeeping were noted, leading to management's inability to produce approved wage rate authorizations for 14 of the 40 employees. This was not a statistically valid sample.   Cause: Management did not retain wage rate authorizations nor did they include approvals within certain budget allocation forms. Effect: Unauthorized wage rates were charged to the grant during the fiscal year. Questioned Costs: None. Recommendation: We recommend management standardize their budget allocation forms which show approved wage rates across all employees as well as retain and update records to ensure all employees have up to date forms on file. Views of Responsible Officials: Management acknowledges the finding. For details on actions taken, refer to the Corrective Action Plan.

2025-005: Eligibility ALN 64.033 U.S. Department of Veteran Affairs - Significant Deficiency in Internal Control Criteria: Uniform Guidance requires that eligibility determinations for participants in federal award programs be supported by records maintained under a system of internal controls that provides reasonable assurance of participant eligibility. Participants should be recertified every 90 days. Condition: Inconsistencies in recordkeeping resulted in delayed or missed recertifications for 5 of 40 participants tested. The sample was not statistically valid. Cause: Management did not complete participant recertifications within the required 90-day period due to lack of education on the importance of timely submission. Effect: Participants continued to be documented as eligible to receive benefits during the fiscal year without timely recertification. Questioned Costs: None. Recommendation: We recommend management implement procedures to ensure participant recertifications are completed within 90 days. Views of Responsible Officials: Management acknowledges the finding. For details on actions taken, refer to the Corrective Action Plan.

2025-006: Reporting ALN 93.558 Passed through the City of New York, Human Resources Administration from the U.S. Department of Health and Human Services - CT1-069-20248802635 and CT1-069-20248800455 - Significant Deficiency in Internal Control Criteria: Uniform Guidance requires review and approval of reports that are submitted as part of monthly financial reporting. Condition: Due to employee turnover, there was no audit evidence maintained to support the review process. Cause: Management did not retain evidence of approvals. Effect: Monthly reports were submitted to the granting agency without evidence of approval. Questioned Costs: None. Recommendation: We recommend management implement procedures to retain both email correspondence and approvals for monthly reporting submissions. Views of Responsible Officials: Management acknowledges the finding. For details on actions taken, refer to the Corrective Action Plan.

Federal Program: Head Start Federal Agency: Department of Health and Human Services CFDA Number: 93.600 Federal Award Year: June 30, 2020 Criteria: 2 CFR Part 200, Part 3-H of the Uniform Guidance requires that the federal award was only charged for allowable costs incurred during the period of performance. Condition/Context: For 4 out of 40 expenditures selected for testing, the Organization requested reimbursement for expenditures in the incorrect contract period. The sample was selected from a population of 1,182 expenditures submitted for reimbursement and was a statistically valid sample. The out of period expenditures were valid costs for the program in prior contract periods. Questioned Costs: The total costs for the 4 selections is $10,880; however, questioned costs could not be quantified as extrapolation to the whole population would not be representative of the error. Cause: The Organization requested reimbursements in the fiscal period subsequent to the dates of the invoices and the period in which the expenditures occurred. Effect: The Organization has not complied with the specific requirements for expenses to be incurred during the contract period. Recommendation: We recommend that management evaluate the timeliness of its closing process, review vouchers and more closely monitor expenditures being charged to Federal programs in the proper periods. Views of Responsible Officials: Management acknowledges the finding. For details on actions taken, refer to the Corrective Action Plan.

Federal Program: Continuum of Care Program Federal Agency: Department of Housing and Urban Development CFDA Number: 14.267 Federal Award Year: June 30, 2020 Criteria: The Organization prepares and reviews a monthly expenditure file to track and compile matching funds, as well as calculates that the Organization did not claim in excess of allowable admin allocations. Condition/Context: For the selection of 3 expenditure files, we were unable to verify that the files were formally reviewed, as such process was not documented. Questioned Costs: None Cause: The Organization's procedures did not ensure the required written matching policies were developed and implemented in accordance with the Uniform Guidance to ensure formal, written review of expenditure files. Effect: The Organization?s control design and operation do not provide reasonable assurance that the Organization is managing the matching compliance requirement of the Uniform Guidance. However, there is no noncompliance with the matching compliance requirement. Recommendation: We recommend that the Organization implements written approval on their expenditure files. Views of Responsible Officials: Management acknowledges the finding. For details on actions taken, refer to the Corrective Action Plan.