We audited Mountain CAP of WV, Inc.’s administration of its Homelessness Prevention and Rapid Re-Housing Program funds. We selected Mountain CAP for audit because of a complaint alleging that controls over its disbursements were weak. Our audit objective was to determine whether Mountain CAP maintained proper financial management of and accountability for its program to ensure that it used the funds according to the American Recovery and Reinvestment Act of 2009 and applicable HUD requirements.
We found that Mountain CAP did not maintain proper financial management of and accountability for its program. It did not: (1) have a financial accounting system that adequately identified the source and application of funds; (2) compare budgeted amounts to actual expenditures incurred by category; (3) report deviations from budget and program plans and, when necessary, request approval for budget revisions; and (4) properly maintain source documentation to support its accounting records. It also did not minimize the time it took to pay vendors.
We recommend that HUD require Mountain CAP to provide supporting documentation for program expenditures totaling $711,676 or reimburse HUD from non-Federal funds for any amount that it cannot support. We also recommend that HUD require Mountain CAP to improve its financial management system and procedures to ensure that it complies with all applicable Federal financial standard guidelines.