Corrective Action Plans

Finding 522064 (2024-002)

Significant Deficiency 2024

Town of Hudson

NH

Procurement, Suspension & Debarment Subrecipient Monitoring Allowable Costs / Cost Principles

Audit Finding Reference: 2024-002 Management’s Response and Planned Corrective Action: The Town acknowledges the need to formalize written policies and procedures to comply with Uniform Guidance requirements. We are in the process of developing and implementing comprehensive policies addressing ...

Audit Finding Reference: 2024-002 Management’s Response and Planned Corrective Action: The Town acknowledges the need to formalize written policies and procedures to comply with Uniform Guidance requirements. We are in the process of developing and implementing comprehensive policies addressing allowable costs, employee travel, cash management, equipment and inventory, procurement, and subrecipient monitoring. Name of Contact Person and Completion Date: Name 1: Beth McKee Anticipated Completion Date – 6/30/2025

View Audit 341291

Finding 522002 (2024-003)

Significant Deficiency 2024

Battle Creek Unlimited, Inc.

MI

Allowable Costs / Cost Principles

Finding: 2024-003 - Reporting Auditor Description of Condition and Effect: During our audit procedures over the Organization's reporting process, we noted that none of the quarterly reports selected for testing included documentation that they were subjected to an independent review and approval pr...

Finding: 2024-003 - Reporting Auditor Description of Condition and Effect: During our audit procedures over the Organization's reporting process, we noted that none of the quarterly reports selected for testing included documentation that they were subjected to an independent review and approval prior to submission in order to detect and correct potential errors or omissions. As a result of this condition, the Organization did not comply fully with the reporting requirements under this federal award. In addition, the Organization was exposed to an increased risk that the reports filed could contain errors and not be detected and corrected on a timely basis. Auditor Recommendation: We recommend that the Organization establish procedures to ensure that all reports are subject to review and approval by an independent employee prior to submission, and that the review and approval is adequately documented. Corrective Action: By June 30, 2025, management will establish procedures ensuring all reports are subjected to review prior to submission and that review is well documented. Responsible Person: Joe Sobieralski, President and CEO Anticipated Completion Date: June 30, 2025

View Audit 341240

Finding 521999 (2024-001)

Significant Deficiency 2024

Battle Creek Unlimited, Inc.

MI

Procurement, Suspension & Debarment Allowable Costs / Cost Principles

Finding: 2024-001 - Written Policies Required by the Uniform Grant Guidance Auditor Description of Condition and Effect: Although the Organization has processes in place to cover these areas, there are no formal written policies covering payments, procurement, allowability of costs, compensation, a...

Finding: 2024-001 - Written Policies Required by the Uniform Grant Guidance Auditor Description of Condition and Effect: Although the Organization has processes in place to cover these areas, there are no formal written policies covering payments, procurement, allowability of costs, compensation, and travel costs in accordance with the Uniform Guidance. As a result of this condition, the Organization did not fully comply with the Uniform Guidance applicable to the above noted grants. Auditor Recommendation: We recommend that the Organization develop and implement the required policies as soon as practical. Corrective Action: Management will develop and adopt written policies that will be in place by June 30, 2025. Responsible Person: Joe Sobieralski, President and CEO Anticipated Completion Date: June 30, 2025

View Audit 341240

Finding 521479 (2024-007)

Significant Deficiency 2024

Langston University

OK

Questioned Costs Allowable Costs / Cost Principles Matching / Level of Effort / Earmarking § 200.303 § 200.344

Recommendation: We recommend the University review its current close out procedures and implement additional procedures to monitor the timeliness of federal account close outs. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Questioned Costs: $125,03...

Recommendation: We recommend the University review its current close out procedures and implement additional procedures to monitor the timeliness of federal account close outs. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Questioned Costs: $125,035.65 The costs in question were not billed to or collected from the awarding agency. Action taken in response to finding: This is a repeat finding that was first presented to the University in conjunction with the release of the 2023 audit report in May 2024. The 2023 audit was completed after substantially all of Fiscal Year 2024 had elapsed, so there was not adequate time for the University to fully implement corrective action. The University is strengthening the close-out process of federal awards to halt expenditures thus reducing redistributions and cost-transfers. Name(s) of the contact person(s) responsible for the corrective action: Mr. Robert Dixon, Director, Grants and Contracts Fiscal Administration at Oklahoma State University and Mr. Chris Kuwitzky, Vice President for Fiscal and Administrative Affairs. Planned completion date for corrective action plan: March 2025

View Audit 341200 Questioned Costs: $1

Finding 521182 (2024-001)

Significant Deficiency 2024

Housing Authority of Lake City

SC

Questioned Costs HUD Housing Programs Allowable Costs / Cost Principles

2024-001 ALN 14.871 – Housing Voucher Cluster – Activities Allowed or Unallowed The Executive Director acknowledges the finding and is following the auditor's recommendation as listed in the Schedule of Findings and Questioned Costs. In 2021, the Authority was instructed by Keith Landrum of the Colu...

2024-001 ALN 14.871 – Housing Voucher Cluster – Activities Allowed or Unallowed The Executive Director acknowledges the finding and is following the auditor's recommendation as listed in the Schedule of Findings and Questioned Costs. In 2021, the Authority was instructed by Keith Landrum of the Columbia, South Carolina HUD Field Office to stop making payments until the matter could be further investigated to see what amounts, if any, are still owed. Management will continue to monitor budgets to ensure that funds are adequate. Management has and will continue to make budget revisions to reduce unessential operating costs. The Authority has designed and implemented a Board approved formal repayment agreement. Person Responsible for Correction of Finding: Mark Fountain, Executive Director Projected Completion Date: June 30, 2025

View Audit 341129 Questioned Costs: $1

Finding 521180 (2024-002)

Significant Deficiency 2024

Natrona County School District No. 1

WY

Allowable Costs / Cost Principles Reporting Internal Control / Segregation of Duties § 200.303

The District will adopt a general ledger account structure that is directly correlated to the Wyoming Department of Education’s Accounting Manual.

View Audit 341125

Finding 521162 (2024-003)

Significant Deficiency 2024

Eastern Wyoming College

WY

Student Financial Aid Allowable Costs / Cost Principles Reporting

Corrective actions: The Financial Aid Office has historically received a copy of the Fund 10 and Fund 13 ledgers from the Business Office and then calculated the tuition and fees, making sure to remove the concurrently enrolled students and inapplicable fees. This calculation was completed without k...

Corrective actions: The Financial Aid Office has historically received a copy of the Fund 10 and Fund 13 ledgers from the Business Office and then calculated the tuition and fees, making sure to remove the concurrently enrolled students and inapplicable fees. This calculation was completed without knowledge that some of the Fund 13 Fees pass through and are already included the Fund 10 details. This resulted in a number of Fund 13 Fees being counted twice. This process has been corrected starting with the 24-25 FISAP. The CFO and Financial Aid Director worked together and the CFO calculated the tuition and fees for Part II Section E of the FISAP. This ensured the correct calculation and eliminated the inclusion of fees that were flowing through the two different GL fund accounts. Anticipated completion date: September 30,2024 Contact person: Rebecca McAllister/Kwin Wilkes

View Audit 341116

Finding 521157 (2024-003)

Significant Deficiency 2024

Hamilton Health Center, Inc.

PA

Questioned Costs Cash Management Allowable Costs / Cost Principles

Condition The Organization's negotiated indirect cost rate agreement includes a provisional rate of 17.75% of direct costs for the period April 1, 2021 through March 21, 2024. The Organization charged indirect costs to its American Rescue Plan supplemental health center funding using a rate of 18.8...

Condition The Organization's negotiated indirect cost rate agreement includes a provisional rate of 17.75% of direct costs for the period April 1, 2021 through March 21, 2024. The Organization charged indirect costs to its American Rescue Plan supplemental health center funding using a rate of 18.8% of direct costs for the period April 2023 through June 2023. The 18.8% rate that was used was obtained from an expired indirect cost rate agreement. Corrective Action Plan Corrective Action Planned: The continued use of the expired indirect cost rate was caused by the departure of the CFO who was responsible for reviewing federal grant draw downs. After the CFO left, the controller continued using the expired indirect cost rate but now the new CFO has put in place a system of review the indirect cost rate in effect against all reports before drawing down the grant. Name(s) of Contact Person(s) Responsible for Corrective Action: Frackson Sakala, CFO; Joseph McLaughlin, Controller; and Tran Le, the Assistant Controller. Anticipated Completion Date: This was immediately effected when this error was discovered during the FY2024 audit.

View Audit 341112 Questioned Costs: $1

Finding 521151 (2024-004)

Material Weakness 2024

Granite Vna, Inc.

NH

Questioned Costs Allowable Costs / Cost Principles

Corrective Action Planned: Management will certify that the costs charged to grants are documented, reviewed and approved for accuracy and legitimacy. Individual Responsible for Corrective Action: Jim Manahan, CFO Anticipated Completion Date: CFO will implement immediately.

View Audit 341103 Questioned Costs: $1

Finding 521131 (2024-003)

Material Weakness 2024

Sheridan Community Schools

IN

Questioned Costs Allowable Costs / Cost Principles School Nutrition Programs § 200.303 § 200.403 § 200.430

FINDING 2024-003 Finding Subject: Child Nutrition Cluster (School Lunch) – Allowable Cost Summary of Finding: The payroll for non-certified employees for the 2023-2024 school year has not been approved by the board, leading to a lack of verification for salaries paid from fund 800. As a result, any ...

FINDING 2024-003 Finding Subject: Child Nutrition Cluster (School Lunch) – Allowable Cost Summary of Finding: The payroll for non-certified employees for the 2023-2024 school year has not been approved by the board, leading to a lack of verification for salaries paid from fund 800. As a result, any payroll for non-certified employees paid after August 1, 2023 from fund 800 cannot be verified. Contact Person Responsible for Corrective Action: Robin Popejoy Contact Phone Number and Email Address: 317.758.4172 – rpopejoy@sheridan.k12.in.us Views of Responsible Officials: We concur with the finding. Description of Corrective Action Plan: The salary schedules will be submitted to the board for approval. Anticipated Completion Date: May – August 2025

View Audit 341082 Questioned Costs: $1

Finding 521103 (2024-002)

Material Weakness 2024

City of Auburn

CA

Allowable Costs / Cost Principles Material Weakness § 200.430

Planned Corrective Action: The City will ensure actual costs are charged to the program as part of the annual reporting process. Anticipated Completion Date: December 30, 2024 Responsible Contact Person: Gretchen Johnson, Finance Director

View Audit 341029

Finding 521070 (2024-002)

Material Weakness 2024

Northwestern Michigan College

MI

Questioned Costs Allowable Costs / Cost Principles Internal Control / Segregation of Duties § 200.303

Condition: The College’s internal control in place for manual journal entries did not identify unallowable costs reported in the SEFA. Planned Corrective Action: While the College currently has controls in place to review all manual journal entries, we will adjust our review process going forward to...

Condition: The College’s internal control in place for manual journal entries did not identify unallowable costs reported in the SEFA. Planned Corrective Action: While the College currently has controls in place to review all manual journal entries, we will adjust our review process going forward to incorporate additional oversight for any manual journal entries impacting Federal grants. Going forward, the Controller will review all manual journal entries impacting Federal grants, and the Vice President of Finance will provide a second level review of any such entries that equal or exceed $50,000. Contact person responsible for corrective action: Troy Kierczynski, Vice President for Finance & Administration Anticipated Completion Date: Immediately

View Audit 340980 Questioned Costs: $1

Finding 521042 (2024-002)

Significant Deficiency 2024

North Fork Area Transit

NE

Allowable Costs / Cost Principles § 200.303 § 200.430

Views of Responsible Officials The Organization agrees with this finding. Corrective Action Plan The Organization has strengthened its internal controls over payroll transactions in order to comply with laws, regulations, and grant agreements. Additionally, the pass-through entity has increased its ...

Views of Responsible Officials The Organization agrees with this finding. Corrective Action Plan The Organization has strengthened its internal controls over payroll transactions in order to comply with laws, regulations, and grant agreements. Additionally, the pass-through entity has increased its documentation requirements which helps the Organization ensure that it possesses compliant payroll documentation. Further, the Organization plans to review its personnel files to ensure that adequate documentation exists to support approved rates of pay. Name(s) of Responsible Individuals Lacy Kimes, Board President Anticipated Completion Date Partially implemented; partially ongoing. Personnel file review anticipated completion February 28, 2025.

View Audit 340916

Finding 520954 (2024-002)

Significant Deficiency 2024

Orion Area Not-for Profit Housing Corporation

MI

HUD Housing Programs Allowable Costs / Cost Principles Eligibility

Corrective Action Plan Orion Area Non-Profit Housing Corporation Project No. 044-11113 Year Ended June 30, 2024 January 31, 2025 FEDERAL AWARD FINDINGS AND QUESTIONED COSTS 2024-002 – Eligibility - Tenant Income Threshold Finding Type. Immaterial noncompliance, Significant deficiency in internal...

Corrective Action Plan Orion Area Non-Profit Housing Corporation Project No. 044-11113 Year Ended June 30, 2024 January 31, 2025 FEDERAL AWARD FINDINGS AND QUESTIONED COSTS 2024-002 – Eligibility - Tenant Income Threshold Finding Type. Immaterial noncompliance, Significant deficiency in internal controls over compliance (Eligibility) Federal programs U.S. Department of Housing and Urban Development  Section 8 Housing Assistance Payments (ALN# 14.195) Condition. Less than 40% of tenants who moved into the property during the year met the extremely low-income threshold and management did not maintain records of marketing efforts targeted to extremely low-income families, demonstrating that reasonable efforts were made to fill available units accordingly and that such efforts are ongoing. Effect. As a result of this condition, the Project failed to meet the prescribed income targeting requirements and documentation of marketing efforts to reach the target population. Plan. Management agrees with finding 2024-002. Management agrees to target extremely low-income individuals for residence, and to retain marketing records that support this effort. Contact Person Responsible for This Corrective Action: Laura Maisevich, Senior Housing Manager Anticipated completion date: June 30, 2025

View Audit 340845

Finding 520950 (2024-001)

Significant Deficiency 2024

East Detroit Area Non-Profit Housing Corporation

MI

Allowable Costs / Cost Principles Eligibility HUD Housing Programs

Corrective Action Plan East Detroit Area Non-Profit Housing Corporation Project No. 044-EH221 Year Ended June 30, 2024 January 31, 2025 FEDERAL AWARD FINDINGS AND QUESTIONED COSTS 2024-001 – Eligibility - Tenant File Documentation Finding Type. Immaterial noncompliance, Significant deficiency in...

Corrective Action Plan East Detroit Area Non-Profit Housing Corporation Project No. 044-EH221 Year Ended June 30, 2024 January 31, 2025 FEDERAL AWARD FINDINGS AND QUESTIONED COSTS 2024-001 – Eligibility - Tenant File Documentation Finding Type. Immaterial noncompliance, Significant deficiency in internal controls over compliance (Eligibility) Federal programs U.S. Department of Housing and Urban Development  Supportive Housing for the Elderly (ALN# 14.157) Condition. Out of a sample of 6 tenant files, it was noted: 1. One out of six instances where an EIV was not run for a tenant file within 90 days of move in; 2. One out of six instances where a refund was not disbursed to a tenant within 60 days of move-out; 3. Two out of six instances where the incorrect checking account balance was used in the verification of tenant assets; Effect. As a result of this condition, employees did not follow HUD guideline procedures, and/or did not properly calculate the tenant subsidy in HUD Form 50059. While there were no significant differences in the amount of subsidies allowed compared to subsidies received, the lack of effective internal controls could lead to future significant noncompliance. Plan. Management agrees with finding 2024-001. All files are to be inspected in the current fiscal year to ensure compliance with HUD regulations. File maintenance will be competed following each move in and annual recertification. In addition to one-on-one training, the housing administrator has signed up for additional training including a WebEx on annual recertification and a basic EIV course. Additional training sessions are forthcoming. Contact Person Responsible for This Corrective Action: Laura Maisevich, Senior Housing Manager Anticipated completion date: 1/31/2025

View Audit 340843

Finding 520948 (2024-002)

Significant Deficiency 2024

Highland Area Non-Profit Housing Corporation

MI

HUD Housing Programs Allowable Costs / Cost Principles Eligibility

Corrective Action Plan Highland Area Non-Profit Housing Corporation Project No. 044-11111 Year Ended June 30, 2024 January 31, 2025 FEDERAL AWARD FINDINGS AND QUESTIONED COSTS 2024-002 – Eligibility - Tenant Income Threshold Finding Type. Immaterial noncompliance, Significant deficiency in inter...

Corrective Action Plan Highland Area Non-Profit Housing Corporation Project No. 044-11111 Year Ended June 30, 2024 January 31, 2025 FEDERAL AWARD FINDINGS AND QUESTIONED COSTS 2024-002 – Eligibility - Tenant Income Threshold Finding Type. Immaterial noncompliance, Significant deficiency in internal controls over compliance (Eligibility) Federal programs U.S. Department of Housing and Urban Development  Section 8 Housing Assistance Payments (ALN# 14.195) Condition. Less than 40% of tenants who moved into the property during the year met the extremely low-income threshold and management did not maintain records of marketing efforts targeted to extremely low-income families, demonstrating that reasonable efforts were made to fill available units accordingly and that such efforts are ongoing. Effect. As a result of this condition, the Project failed to meet the prescribed income targeting requirements and documentation of marketing efforts to reach the target population. Plan. Management agrees with finding 2024-002. Management agrees to target extremely low-income individuals for residence, and to retain marketing records that support this effort. Contact Person Responsible for This Corrective Action: Laura Maisevich, Senior Housing Manager Anticipated completion date: June 30, 2025

View Audit 340840

Finding 520902 (2024-011)

Material Weakness 2024

Wheeling Jesuit University INC

WV

Questioned Costs Allowable Costs / Cost Principles Internal Control / Segregation of Duties § 200.430

FINDING 2024-011 Name of Responsible Individual: Tyler Hosey, Senior Accountant Corrective Action: The University acknowledges that the records to substantiate the payroll costs were insufficient and lacking internal controls. Going forward the University plans to implement a strategic process ...

FINDING 2024-011 Name of Responsible Individual: Tyler Hosey, Senior Accountant Corrective Action: The University acknowledges that the records to substantiate the payroll costs were insufficient and lacking internal controls. Going forward the University plans to implement a strategic process to document time and effort associated with research and development cluster and it’s federal grants. All employees that work with the Challenger Learning Center will continue to have their hours worked documented in the Paycom payroll software. Payroll is processed on a biweekly basis, and therefore on biweekly basis the payroll costs from the Challenger Learning Center will be reimbursed to the University from the various Challenger Learning Center bank accounts. This will be done as a percentage of time worked for the NIH Grant, the NASA Grant, and the general Challenger Learning Center functions. Anticipated Completion Date: June 2025

View Audit 340797 Questioned Costs: $1

Finding 520883 (2024-002)

Significant Deficiency 2024

Shawmet Homes, Inc.

MO

Subrecipient Monitoring Allowable Costs / Cost Principles Internal Control / Segregation of Duties

Recommendation: The Organization should review of its operating and maintenance policies and procedures, as well as review by the individuals monitoring the operating and maintenance of the property, to ensure that the necessary documentation showing that resident problems or concerns were responded...

Recommendation: The Organization should review of its operating and maintenance policies and procedures, as well as review by the individuals monitoring the operating and maintenance of the property, to ensure that the necessary documentation showing that resident problems or concerns were responded to in a timely manner is being completed. View of Responsible Officials and Corrective Actions: Shawmet Homes, Inc. has, and will continue to complete problems or concerns raised by tenants, and only failed to document timely completion within in our management system. The Organization has reviewed its staffing and implemented training, and periodic reviews of the work order system, to ensure that the documentation is being completed timely.

View Audit 340740

Finding 520877 (2024-002)

Material Weakness 2024

Vandalia Cusd 203

IL

Internal Control / Segregation of Duties Allowable Costs / Cost Principles

Payroll disbursements will align to the approved salary schedule.

View Audit 340710

Finding 520867 (2024-003)

Material Weakness 2024

Vandalia Cusd 203

IL

Internal Control / Segregation of Duties Allowable Costs / Cost Principles School Nutrition Programs

Payroll disbursements will align to the approved salary schedule.

View Audit 340710

Finding 520865 (2024-004)

Significant Deficiency 2024

Linden-Kildare Consolidated Independent School District

TX

Questioned Costs Allowable Costs / Cost Principles Cash Management

Due to the transition of personnel within the payroll and business office during the year, the District did not properly account for amounts that were previously requested under the grant as well as expense reversals that occurred near year-end. The District will take the recommendation of the audit...

Due to the transition of personnel within the payroll and business office during the year, the District did not properly account for amounts that were previously requested under the grant as well as expense reversals that occurred near year-end. The District will take the recommendation of the auditors and implement additional controls to monitor compliance with federal program guidelines.

View Audit 340692 Questioned Costs: $1

Finding 520793 (2024-003)

Significant Deficiency 2024

Central District Health Department

NE

Questioned Costs Allowable Costs / Cost Principles Subrecipient Monitoring

Views of Responsible Officials The Health Department agrees with this finding. Corrective Action Plan The Health Department will establish a system of internal controls to identify grants which do not allow the reimbursement of indirect costs. After the auditor brought forth this instance of noncomp...

Views of Responsible Officials The Health Department agrees with this finding. Corrective Action Plan The Health Department will establish a system of internal controls to identify grants which do not allow the reimbursement of indirect costs. After the auditor brought forth this instance of noncompliance, the Health Department immediately contacted the Nebraska Department of Health and Human Services to establish a plan for corrective action. Name of Responsible Individual Teresa Anderson, Health Director Anticipated Completion Date January 31, 2025

View Audit 340597 Questioned Costs: $1

Finding 520780 (2024-001)

Significant Deficiency 2024

Town of Hooksett

NH

Procurement, Suspension & Debarment Subrecipient Monitoring Allowable Costs / Cost Principles

Audit Finding Reference: 2024-001 Management’s Response and Planned Corrective Action: The Town acknowledges the need to formalize written policies and procedures to comply with Uniform Guidance requirements. We are in the process of developing and implementing comprehensive policies addressing all...

Audit Finding Reference: 2024-001 Management’s Response and Planned Corrective Action: The Town acknowledges the need to formalize written policies and procedures to comply with Uniform Guidance requirements. We are in the process of developing and implementing comprehensive policies addressing allowable costs, employee travel, cash management, equipment and inventory, procurement, and subrecipient monitoring. Name of Contact Person and Completion Date: Name 1: Christine Tewksbury Name 2: Anticipated Completion Date – March 2025

View Audit 340575

Finding 520699 (2024-004)

Significant Deficiency 2024

Community Action of Southern Indiana

IN

Allowable Costs / Cost Principles Eligibility

Response: The Agency acknowledges this error and agrees with the recommendations. The Agency provides the additional context that the purge of records was carried out by a previous program staff member who was terminated from the Agency. The Agency has adopted a new Document Retention and Destructio...

Response: The Agency acknowledges this error and agrees with the recommendations. The Agency provides the additional context that the purge of records was carried out by a previous program staff member who was terminated from the Agency. The Agency has adopted a new Document Retention and Destruction Policy, and all program and administrative staff leadership has received training on the new policy

View Audit 340424

Finding 520691 (2024-001)

Material Weakness 2024

Lakeview Soil and Water Conservation District

OR

Allowable Costs / Cost Principles Material Weakness Internal Control / Segregation of Duties

Views of REsponsible Officials and Planned Corrective Actions. We agree with this finding. LSWCD has a good Financial Manager familiar with operations of soil and water conservation districts. LSWCD will provide online and other training for the Financial Manager to gain knowledge of governmental ac...

Views of REsponsible Officials and Planned Corrective Actions. We agree with this finding. LSWCD has a good Financial Manager familiar with operations of soil and water conservation districts. LSWCD will provide online and other training for the Financial Manager to gain knowledge of governmental accounting, federal single audit requirements, and USGAAP in an effort to accurate financial statements, reduce audit costs, and avoid errors in and omissions of year-end accruals. provide

View Audit 340383

Corrective Action Plans

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