Corrective Action Plans

Finding 404115 (2023-002)

Significant Deficiency 2023

MA

Allowable Costs / Cost Principles Cash Management Significant Deficiency

Audit Finding Reference: 2023-002 Internal Controls Over Disbursements Planned Corrective Action: No documented review of employee reimbursements charged to grants: Our systems have required review and approvals procedures as described below but the notation of review and approval were not evide...

Audit Finding Reference: 2023-002 Internal Controls Over Disbursements Planned Corrective Action: No documented review of employee reimbursements charged to grants: Our systems have required review and approvals procedures as described below but the notation of review and approval were not evident. Going forward either through email or sign-off, it will show approval. All employee reimbursement expenses are reviewed and approved by the employee’s direct manager, within the payroll system (Paylocity) prior to processing payment (with bi-weekly payroll). In addition, the grant accountant and grant manager will review the timesheets and allocation of employee expenses to confirm that they agree. The approval is submitted via email to the payroll administrator for processing of the payroll. The payroll administrator will create the journal entry in the general ledger from the approval worksheet. In addition, with the implementation of our new general ledger system, the entries are reviewed and approved within the general ledger system by upper management. No documented review of payroll charged to grants: Our systems have required review and approvals procedures as described below but the notation of review and approval were not evident. Going forward either through email or sign-off, it will show approval. Payroll has multiple levels of approval. In FY23, the payroll folder, that includes timesheets, grant allocations, and payroll register, would be submitted for approval to the accounting manager. The accounting manager would review and approve payroll and return the folder to the payroll administrator for payroll submission to the payroll company. Starting in FY24, payroll would be submitted via email to the grant accountant, grant manager, and the assistant controller for multiple levels of review and approval. Corrections and approvals are done via email. In addition to the email approvals, upper management approves payroll by initialing the last page of the payroll register after a complete review. Furthermore, with the implementation of our new general ledger system, the entries are reviewed and approved within the general ledger system by upper management. Planned Implementation Date of Corrective Action: 02/01/2024 Person Responsible for Corrective Action: Vice President – Finance, Development & Administration

View Audit 310900

Finding 404101 (2023-001)

Significant Deficiency 2023

City of Butler

PA

Questioned Costs Allowable Costs / Cost Principles Subrecipient Monitoring § 200.303

Federal Agency: Department of Housing and Urban Development Pass Through Agency: Pennsylvania Department of Community and Economic Development Program: Community Development Block Grants/ State's Program and Non-Entitlement Grants in Hawaii (CDBG), ALN 14.228 Criteria: In accordance with 2 CFR Pa...

Federal Agency: Department of Housing and Urban Development Pass Through Agency: Pennsylvania Department of Community and Economic Development Program: Community Development Block Grants/ State's Program and Non-Entitlement Grants in Hawaii (CDBG), ALN 14.228 Criteria: In accordance with 2 CFR Part 200.303, a non-Federal entity must establish and maintain effective internal control over Federal awards that provide reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. Condition: The City did not have a process in place to obtain invoices or other supporting documentation from the subrecipient to ensure that the CDBG funding was spent on activities allowed and allowable costs prior to reimbursing the subrecipient. Subsequent to making the 2023 payments to the subrecipient, the City obtained the invoices for review. Cause: The City did not have procedures in place to ensure that the CDBG invoices to support payments to the subrecipient were obtained and reviewed. Effect: The lack of internal control processes to review supporting documentation to ensure compliance with federal requirements prior to payments being made to subrecipients could result in unallowable costs to occur and not be detected prior to payment of funding to the subrecipient. Questioned costs: Unknown Recommendation: We recommend that the City obtains invoice support for all reimbursement requests from the subrecipient prior to payment. These requests should be reviewed for allowable activities and allowable costs by an individual knowledgeable of the program requirements prior to approving for payment. This review should be documented. View of Responsible Officials and Planned Corrective Action: Mayor and City Clerk will be responsible for corrective action. The City will obtain invoice support for all reimbursement requests from the subrecipient PRIOR to payment. These requests will be reviewed for allowable activities and allowable costs by the Mayor of the City of Butler prior to payment. This review (invoices) will be documented and saved in a file on the clerk's computer. Trigger for the mayor to review invoices will be the email from DCED requesting signatures from the Mayor and the City Clerk. The procedures for reviewing all payment requests shall begin July, 2024 and shall be ongoing.

View Audit 310881 Questioned Costs: $1

Finding 404097 (2023-001)

Material Weakness 2023

Midland County Hospital District

TX

Questioned Costs Allowable Costs / Cost Principles Reporting

Management agrees with the finding that the Period 4 Provider Relief Fund report included expenses for utility and insurance expenditures that were not directly related to the District's prevention, preparation and/or response to the COVID-19 pandemic. Management reviewed HRSA guidance and examples...

Management agrees with the finding that the Period 4 Provider Relief Fund report included expenses for utility and insurance expenditures that were not directly related to the District's prevention, preparation and/or response to the COVID-19 pandemic. Management reviewed HRSA guidance and examples of allowable expenses prior to completing Period 4 Provider Relief Fund reporting and concluded these expenses were considered allowable as general and administrative expenses incurred during our response to the COVID-19 pandemic. Management notes that expenses and lost revenue reported exceed the amount of PRF funding received even if these expenses were excluded. We have taken corrective action for the review of completeness and accuracy for inclusion of allowable expenditures. PRF reporting, subsequent to this audit, will be reviewed prior to submission to ensure accuracy of reporting. Chief Financial Officer, Marie Castro, is responsible for ensuring the corrective action plan is followed. The corrective action plan will be implemented on June 30, 2024.

View Audit 310873 Questioned Costs: $1

Finding 404039 (2023-002)

Material Weakness 2023

National Association of Chronic Disease Directors

GA

Questioned Costs Cash Management Allowable Costs / Cost Principles § 200.303 § 200.403 § 200.405

Finding 2023-002: Overdrawn Federal Funding Condition The auditors identified duplicated federal award expenditures amounting to $380,644, resulting in overdrawn federal funds by $380,644. The excess cash on hand was not returned to the funding source in a timely manner. Correction action: NACDD has...

Finding 2023-002: Overdrawn Federal Funding Condition The auditors identified duplicated federal award expenditures amounting to $380,644, resulting in overdrawn federal funds by $380,644. The excess cash on hand was not returned to the funding source in a timely manner. Correction action: NACDD has experienced drastic change in size over the past 3-4 years. Current policies and procedures have not been adequate for the size and volume of the transactions experienced in FY 23. In addition, there has been significant finance/accounting staff turnover including leadership of the Finance team. +The impact of this deficiency was isolated to one cooperative agreement which closed out as of 9.30.23. NACDD performed efficient and effective subsequent disbursement procedures after year end to ensure that expenses for this grant and others were recorded in the appropriate fiscal year. In the process of preparing the FFR and researching further additional expenditures related to this grant, expenses included in the initial subsequent disbursement adjustments, related to this grant were duplicated. +The Correction action plan includes previously implemented augmentation of the Finance staff. Since the end of the FY 23 fiscal year, the finance department has been fully staffed with knowledgeable accounting professionals, many who have financial federal grant experience. There is now a financial analyst on staff whose main responsibility is to reconcile and record federal grant expenditures and receivables. This process is done monthly. We believe that this additional procedure will eliminate the recurrence of this and any other like issues. Procedures related to the weekly PMS drawdown have been expanded to include reconciling the accounts receivable by grant with the PMS accounts to allow only amounts listed in PMS which are supported with appropriate expenditures to be drawn. +Implementation of corrective measures: The above expanded procedures and oversight have been in effect for most of the FY 24 fiscal year. PMS drawdowns are now done weekly with worksheets that tie in detail to the weekly expenditures. In addition, a control checklist will be created and utilized by the Finance staff leadership to monitor and document the successful implementation of corrective measures. + Additional over-arching controls – The Finance team will execute an interim audit process inhouse as of 6.30.24 and every year going forward to further identify errors and irregularities that may exist. If necessary, additional policies and procedures will be implemented to provide greater scope and assurance in preventing financial reporting errors. Responsible Person Trish H. Strong, CFO Anticipated completion date June 30, 2024

View Audit 310859 Questioned Costs: $1

Finding 403965 (2023-003)

Significant Deficiency 2023

Disability Rights Washington

WA

Reporting Allowable Costs / Cost Principles Significant Deficiency § 200.328

Corrective Action: As part of DRW’s internal control revision, we will enhance policies and practices associated with reporting including the semi-annual SF-425. Steps: 1. DRW will review current systems and tools in use for reporting and complying with Federal award reporting requirements and modif...

Corrective Action: As part of DRW’s internal control revision, we will enhance policies and practices associated with reporting including the semi-annual SF-425. Steps: 1. DRW will review current systems and tools in use for reporting and complying with Federal award reporting requirements and modify or implement systems or tools that are more reliably accurate than current systems and tools. 2. DRW will implement internal controls that require the preparation and review of federal reporting requirements by two distinct people at DRW. 3. DRW will implement a reporting calendar and review regularly to ensure activities including preparation and review are being performed regularly and consistently. Anticipated completion September 30, 2024.

View Audit 310821

Finding 403964 (2023-002)

Significant Deficiency 2023

Disability Rights Washington

WA

Questioned Costs Allowable Costs / Cost Principles § 200.430

Corrective Action: DRW will review and revise it cost allocation and program income documentation. Steps: Review current policies, procedures, and internal control documentation. Review will include agency cost allocation method and implementation as well as program income documentation. 1. DRW will...

Corrective Action: DRW will review and revise it cost allocation and program income documentation. Steps: Review current policies, procedures, and internal control documentation. Review will include agency cost allocation method and implementation as well as program income documentation. 1. DRW will update internal controls based on the suggestions for process, procedural and internal control improvement made by outside consultants. Suggestions will include the use of project codes in payroll documentation. 2. Review supporting records, level of effort and timekeeping systems to ensure proper level of documentation. 3. DRW supervisors will be trained on expectations of oversight and participate in quarterly review of financial status to ensure proper implementation. 4. The process will be implemented by the Fiscal Manager, the Comptroller and the Fiscal and Operations Specialist and overseen by the Executive Director. Anticipated Completion: September 30, 2024

View Audit 310821 Questioned Costs: $1

Finding 403911 (2023-001)

Significant Deficiency 2023

Tallassee City Board of Education

AL

Questioned Costs Allowable Costs / Cost Principles Cash Management

Expenditures submitted for the Alabama Medicaid Administrative Claiming program included expenditures supported by federal funds and undocumented costs. Contact: Dr. Brock Nolin, Superintendent ...

Expenditures submitted for the Alabama Medicaid Administrative Claiming program included expenditures supported by federal funds and undocumented costs. Contact: Dr. Brock Nolin, Superintendent Corrective Action: Claims will be adjusted to correct the duplication of federal funds and undocumented costs. Policies and procedures will be implemented according to the recommendations found in the Schedule of Findings and Questioned Costs. Proposed Completion Date: Prior to the submission of the July-September 2024 claim.

View Audit 310807 Questioned Costs: $1

Finding 403886 (2023-002)

Significant Deficiency 2023

Addiction Treatment Services, Inc.

MI

Allowable Costs / Cost Principles Procurement, Suspension & Debarment Significant Deficiency

Written Policies Required by the Uniform Guidance. Auditor Description of Condition and Effect. The Organization lacks written policies around federal awards for payments, procurement, and allowability of costs charged to federal programs. The Organization is exposed to an increased risk of noncompl...

Written Policies Required by the Uniform Guidance. Auditor Description of Condition and Effect. The Organization lacks written policies around federal awards for payments, procurement, and allowability of costs charged to federal programs. The Organization is exposed to an increased risk of noncompliance due to a lack of established written policies. Auditor Recommendation. The Organization should establish written policies that address how payments, procurement, and allowability of costs charged to federal programs are handled for federal awards. Corrective Action. The Organization is reviewing their policies and drafting new policies to address these areas. Anticipated Completion Date. September 30, 2024

View Audit 310759

Finding 403882 (2023-001)

Material Weakness 2023

Daleville City Board of Education

AL

Questioned Costs Allowable Costs / Cost Principles Special Tests & Provisions § 200.303 § 200.326

Item 2023-001- Special Tests and Provisions - Wage Rate Requirements Recommendation: 2 CFR 200.303 requires the non-Federal entity to "(a) establish and maintain effective internal controls over the Federal award that provides reasonable assurance that the non- Federal entity is managing the Federa...

Item 2023-001- Special Tests and Provisions - Wage Rate Requirements Recommendation: 2 CFR 200.303 requires the non-Federal entity to "(a) establish and maintain effective internal controls over the Federal award that provides reasonable assurance that the non- Federal entity is managing the Federal statutes, regulations, and the terms and conditions of the Federal award." 2 CFR 200.326 and 29 CFR Part 5, Labor Standards Provisions Applicable to Contracts Governing Federally Financed and Assisted Construction (DOL Regulations) require the contractor or subcontractor to submit to the nonfederal entity weekly, for each week in which any contract work is performed, a copy of the payroll and a statement of compliance (certified payrolls). We recommend the strengthening of controls to ensure the prevailing wage rate clauses are included in the contracts and that certified payrolls are received for each week in which construction work is performed. The Chief School Financial Officer, Jessica Pettway, should review documentation for inclusion of the prevailing wage rate clauses in construction contracts as part of the bid process prior to expenditures being made. She should also review all invoices received from contractors and subcontractors to ensure that the certified payroll information is received for all weeks for which construction work is performed. Action Taken: Management has reviewed the requirements of 2 CFR Section 200.303 and 2 CFR 200.326 relating to wage rate requirements and agrees with the recommendation. Management has already communicated with all contractors and subcontractors regarding the wage rate requirements and has implemented additional procedures, effective July 1, 2023, stating that the Chief School Financial Officer, Jessica Pettway, will review documentation for inclusion of the prevailing wage rate clauses in construction contracts as part of the bid process prior to expenditures being made. She will also review all invoices received from contractors and subcontractors to ensure that the certified payroll information is received for all weeks for which construction work is performed.

View Audit 310758 Questioned Costs: $1

Finding 403812 (2023-003)

Significant Deficiency 2023

Institute for Sustainable Communities, Affiliate and Subsidiary

VT

Allowable Costs / Cost Principles § 200.405 § 200.430

Management acknowledges that there were deficiencies in the process at the beginning of the fiscal year, which is why the organization changed payroll systems. The issue in question is from the time that the organization was transitioning to the new system. This matter was addressed. We also establi...

Management acknowledges that there were deficiencies in the process at the beginning of the fiscal year, which is why the organization changed payroll systems. The issue in question is from the time that the organization was transitioning to the new system. This matter was addressed. We also established a Grants Compliance Team that will be responsible for the compliance oversight of awards and added checks and balance to ensure award expenses are allowable and allocable.

View Audit 310730

Finding 403704 (2023-003)

Significant Deficiency 2023

Wayne Metropolitan Community Action Agency and Affiliates

MI

Questioned Costs Allowable Costs / Cost Principles Significant Deficiency

Adjustments to payroll distributions, including changes in pay rates, must be requested and documented in writing by department supervisor and reviewed by the payroll manager as well as the grant accountant responsisble for the grant funding source. All requests will be included in the employee's fi...

Adjustments to payroll distributions, including changes in pay rates, must be requested and documented in writing by department supervisor and reviewed by the payroll manager as well as the grant accountant responsisble for the grant funding source. All requests will be included in the employee's file as part of the HRIS.

View Audit 310726 Questioned Costs: $1

Finding 403703 (2023-003)

Material Weakness 2023

City of Opp, Al

AL

Allowable Costs / Cost Principles § 200.303 § 200.328

Item 2023‐003 Performance Reporting – Annual Project and Expenditure Report Recommendation: We recommend the strengthening of controls to ensure annual reporting required under the compliance supplement is performed in a timely manner. Action Taken: Management, namely Jan Boutwell, City Clerk, agree...

Item 2023‐003 Performance Reporting – Annual Project and Expenditure Report Recommendation: We recommend the strengthening of controls to ensure annual reporting required under the compliance supplement is performed in a timely manner. Action Taken: Management, namely Jan Boutwell, City Clerk, agrees with the finding and will implement the necessary internal controls to ensure annual reporting is submitted timely. Management anticipates completion by September 30, 2024.

View Audit 310723

Finding 403701 (2023-001)

Significant Deficiency 2023

Washington City Orphan Asylum Dba Hillcrest Children's Center

DC

Allowable Costs / Cost Principles Reporting Significant Deficiency § 200.430

We acknowledge the findings from the audit of our federal grants award, specifically the insufficient documentation of time and effort for one of our employees. We understand the importance of adhering to 2 CFR part 200.430 of the Uniform Guidance and regret any discrepancies that occurred. The sing...

We acknowledge the findings from the audit of our federal grants award, specifically the insufficient documentation of time and effort for one of our employees. We understand the importance of adhering to 2 CFR part 200.430 of the Uniform Guidance and regret any discrepancies that occurred. The single discrepancy noted related to a new employee that was hired for the federal grant a month and half before the end of the grant year. The variance resulted from an inadvertent payroll coding error in the payroll system, where the employee’s time and effort for the grant was miscoded. We appreciate the opportunity to address this finding and are committed to preventing its recurrence. Below, please find the detailed corrective action plan with timelines and responsible parties. Corrective Action Plan 1 Review and Correction: - We wish to assure you that this was an isolated incident resulting from a clerical oversight. As soon as the discrepancy was brought to our attention, corrective measures were promptly taken. The incorrect coding has been rectified in the payroll system. - Further, we have reviewed the documentation for the employee in question to established that the employee subsequent records accurately reflected the time and effort spent on the federal program. 2 Policy Review and Update: - We have reviewed our time and effort documentation procedures to ensure they align with federal requirements and would consistently lead to a fair and accurate time and effort allocation. - We noted that our current policy and procedures are adequate but can be strengthened further by a more effective supervisory review of time sheets for each employee assigned to a federal grant. - Nevertheless, all changes in policies and procedures that result in our continuous review will be documented and communicated to relevant personnel. - Updated procedures will be incorporated into our organizational handbook and made accessible to all staff members. - Further, we will ensure federal program managers are aware of any changes in regulations or requirements. This proactive approach will help us stay updated and adjust our procedures accordingly. 3 Staff Training: - We will, additionally, require all staff involved in federal grants to undergo quarterly training to reinforce the importance of accurate time and effort reporting. This training will cover the proper use of our time reporting system and the necessity of aligning it with accounting records. Our training sessions will cover the requirements of 2 CFR part 200.430 and the specific procedures that must be followed to maintain compliance. 4 Enhanced Oversight and Monitoring: - A system of regular internal audits will be established to monitor the compliance of time and effort documentation. - These audits will be conducted quarterly, and any discrepancies will be promptly addressed to ensure continuous compliance. 5 Continuous Improvement: - We commit to continuously improving our processes and controls related to federal grant management. This will include seeking feedback from our staff and auditors to identify areas for further enhancement. We believe that these corrective actions address the identified deficiency and goes beyond with additional effort to enhance our compliance environment. As a company, we are committed to maintaining the highest standards of accuracy and accountability to manage our federal funds.

View Audit 310722

Finding 403620 (2023-001)

Significant Deficiency 2023

Prosecuting Attorneys Association of Michigan

MI

Allowable Costs / Cost Principles Cash Management Reporting

Grantee Response: The Association took immediate action to notify the grant administrators when the condition was discovered, performed an investigation, and submitted a report to the grant administrators detailing their findings. As a result of these circumstances, the Association has made several ...

Grantee Response: The Association took immediate action to notify the grant administrators when the condition was discovered, performed an investigation, and submitted a report to the grant administrators detailing their findings. As a result of these circumstances, the Association has made several updates to their policies including 1) regularly reviewing cell phone records to detect out of state calls within one month of their occurrence; 2) developing an approval form for out of state travel that must include proof of the grant administrators approval and a detailed agenda of the trip; 3) requiring that expense reimbursement forms include travel dates and times as well as the event that the travel is related to; 4) crosschecking the shared office Outlook calendar each payroll period to personal leave requested in the payroll system; and 5) attending monthly grant administrator meetings to facilitate communication and ensure that the Association is made aware of travel requests.

View Audit 310671

Finding 403609 (2023-001)

Material Weakness 2023

Metropolitan Transit Authority of Harris County, Texas

TX

Questioned Costs Allowable Costs / Cost Principles § 200.303 § 200.403

METRO's Grant Programs Administration Division will review and implement changes, as necessary, to established policies and procedures regarding expense transactions to be charged to a grant and reimbursed by the granting agency. Emphasis will be placed on reimbursements for prior year costs not typ...

METRO's Grant Programs Administration Division will review and implement changes, as necessary, to established policies and procedures regarding expense transactions to be charged to a grant and reimbursed by the granting agency. Emphasis will be placed on reimbursements for prior year costs not typically subject to detailed allowability assessments in accordance with federal requirements. Any change to processes and controls will be in accordance with cost principles criteria (i.e., allowable, allocable, reasonable, and necessary) as per Title 2 CFR 200.403 (a) and (b). This effort will be completed by Philip Brenner, Deputy CFO, before September 30, 2024.

View Audit 310653 Questioned Costs: $1

Finding 403599 (2023-001)

Significant Deficiency 2023

McLeod Health

SC

Questioned Costs Allowable Costs / Cost Principles Reporting

Finding Number: 2023-001 Condition: The Organization had a control to review the allowable expenses identified under this award; however, the control was ineffective and resulted in the inclusion of a duplicate invoice in the portal submission. Planned Corrective Action: An additional review process...

Finding Number: 2023-001 Condition: The Organization had a control to review the allowable expenses identified under this award; however, the control was ineffective and resulted in the inclusion of a duplicate invoice in the portal submission. Planned Corrective Action: An additional review process for duplicate invoice numbers will be included going forward after our contracted reviewer performs their review. Contact person responsible for corrective action: Mark Cameron Anticipated Completion Date: 7/1/2024

View Audit 310615 Questioned Costs: $1

Finding 403497 (2023-001)

Significant Deficiency 2023

Housing Authority of the County of Kings

CA

HUD Housing Programs Allowable Costs / Cost Principles Eligibility

2023-01 Reporting Financial Data Schedule not submitted timely Corrective Action Plan: To address the shortcomings identified in Finding 2023-01, the Authority commits to a targeted action plan aimed at ensuring timely compliance with reporting requirements. Central to our approach is the engagement...

2023-01 Reporting Financial Data Schedule not submitted timely Corrective Action Plan: To address the shortcomings identified in Finding 2023-01, the Authority commits to a targeted action plan aimed at ensuring timely compliance with reporting requirements. Central to our approach is the engagement of a fee accountant, recognized for expertise in HUD reporting and public housing financial management. This specialist will be tasked with overseeing and streamlining our reporting processes. By leveraging this expertise, we aim to quickly rectify past reporting lapses and endure future submissions are timely and compliant with HUD requirements. The new fee accountant will conduct a comprehensive review of our current reporting mechanisms, identify bottlenecks, and implement best practices tailored to our operations. Anticipated Completion Date: Currently in progress September 30, 2024, unaudited submission will be completed by November 30, 2024.

View Audit 310581

Finding 403495 (2023-002)

Significant Deficiency 2023

Housing Authority of the City of Madera

CA

HUD Housing Programs Allowable Costs / Cost Principles Eligibility

The management overseeing the process has been completely replaced to ensure a fresh perspective and unwavering dedication to implementing robust internal controls. To address the shortcomings identified in Finding 2023-002, the Authority commits to a targeted action plan aimed at ensuring timely co...

The management overseeing the process has been completely replaced to ensure a fresh perspective and unwavering dedication to implementing robust internal controls. To address the shortcomings identified in Finding 2023-002, the Authority commits to a targeted action plan aimed at ensuring timely compliance with reporting requirements. Central to our approach is the continued engagement of a fee accountant, recognized for expertise in HUD reporting and public housing financial management. This specialist will be tasked with overseeing and streamlining our reporting processes. By continuing to leverage this expertise, we aim to quickly rectify past reporting lapses and ensure future submissions are timely and compliant with HUD requirements. The fee accountant will continue to conduct a comprehensive review of our current reporting mechanisms, identify bottlenecks, and implement best practices tailored to our operations This decisive action, centered around the expertise of the fee accountant, demonstrates our commitment to enhancing our financial management practices and aligning with HUD's reporting expectations. Through these measures, we anticipate not only meeting HUD's deadlines but also setting a new standard for operational excellence within our Authority.

View Audit 310580

Finding 403485 (2023-001)

Significant Deficiency 2023

Medford Water Commission

OR

Questioned Costs Allowable Costs / Cost Principles

The rates included in the budget document play a crucial role in the preparation and approval of the budget. It is the accountant's responsibility to accurately enter these rates into the financial system every year. Once entered, a senior accountant will review the recorded rates to ensure their co...

The rates included in the budget document play a crucial role in the preparation and approval of the budget. It is the accountant's responsibility to accurately enter these rates into the financial system every year. Once entered, a senior accountant will review the recorded rates to ensure their completeness and accuracy. The review process will be documented and approved to maintain accountability and prevent or detect future clerical errors. This applies to all changes in rates or additions.

View Audit 310550 Questioned Costs: $1

Finding 403478 (2023-005)

Material Weakness 2023

Crow Wing County

MN

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

ALLOWABLE COSTS AND ALLOWABLE ACTIVITIES – FOR TEMPORARY ASSISTANCE FOR NEEDY FAMILIES Recommendation: It is recommended that the County has a supervisor sign off on all disbursements and journal entries to ensure proper review of expenditures. Explanation of disagreement with audit finding: There ...

ALLOWABLE COSTS AND ALLOWABLE ACTIVITIES – FOR TEMPORARY ASSISTANCE FOR NEEDY FAMILIES Recommendation: It is recommended that the County has a supervisor sign off on all disbursements and journal entries to ensure proper review of expenditures. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: The County will implement policies to ensure all expenditures and journal entries have proper review in place and documentation of review is maintained. Name of the contact person responsible for corrective action plan: Kara Terry, Community Services Director Planned completion date for corrective action plan: December 31, 2024

View Audit 310545

Finding 403462 (2023-004)

Significant Deficiency 2023

Puerto Rico Department of Economic Development and Commerce

PR

Procurement, Suspension & Debarment Matching / Level of Effort / Earmarking Subrecipient Monitoring § 200.512

Findings and Questioned Costs Relating to Federal Awards: Late Single Audit Submission, Reporting Management submitted Single Audit reports up to fiscal year 2023. To address the root cause for this finding, management performed the following actions: • Management audit contracts are followed up dir...

Findings and Questioned Costs Relating to Federal Awards: Late Single Audit Submission, Reporting Management submitted Single Audit reports up to fiscal year 2023. To address the root cause for this finding, management performed the following actions: • Management audit contracts are followed up directly by CFO to ensure timely execution to ensure audits are timely completed and planned. • Management enhancements to the finance function, such as accounting closing checklists, accounting closing meetings and reconciliation processes, among other actions, should improve the timing of audit results. Additional resources (consultants) were hired to assist in the audit process to ensure external auditors have information on a timely basis. In order to ascertain that basic and recurrent information requested by auditors is ready, management prepared an updated list of information normally requested and prepared a OneDrive (cloud backup storage) where all information will be archived and ready to be delivered to the auditors as requested. This should provide the efficiency and agility to response to auditors in a timely manner. Management successfully completed late Single Audit submissions with this 2023 Single Audit Report. With this filing, DDEC is up to date in its regulatory reports. Furthermore, with the process enhancements and improved controls implemented, DDEC expects to continue filing on or before filing due dates.

View Audit 310538

Finding 403459 (2023-005)

Significant Deficiency 2023

Territory of American Samoa

AS

Internal Control / Segregation of Duties Procurement, Suspension & Debarment Allowable Costs / Cost Principles

Federal Agency Review *Significant Deficiency in Internal Controls over Compliance; Noncompliance Federal Program - CFDA 10.555 – National School Lunch Program ASDOE School Lunch Program (SLP) continues to work with the representative who oversees civil rights for the USDA Western region. SLP co...

Federal Agency Review *Significant Deficiency in Internal Controls over Compliance; Noncompliance Federal Program - CFDA 10.555 – National School Lunch Program ASDOE School Lunch Program (SLP) continues to work with the representative who oversees civil rights for the USDA Western region. SLP continues to have training to correct the issues in their USDA FNS report. POC  SLP Assistant Director Christina Fualaau

View Audit 310534

Finding 403405 (2023-004)

Material Weakness 2023

Anthony Housing Authority

TX

HUD Housing Programs Allowable Costs / Cost Principles

Corrective Action Plan Finding: 2023-004-Significantly large interfund account needs to be reduced-Allowable Costs/Principles Condition: (a) and (b)-It appears the enrollment, progress of participants to meet the established goals, and potential earning and disbursement of FSS and Set Aside fu...

Corrective Action Plan Finding: 2023-004-Significantly large interfund account needs to be reduced-Allowable Costs/Principles Condition: (a) and (b)-It appears the enrollment, progress of participants to meet the established goals, and potential earning and disbursement of FSS and Set Aside funds have been inadequately monitored for at least the last two years. (c)-Without both of these requested items noted above, we are unable to determine if the SEP contribution terms were adequately complied with. Corrective Action Planned: We will comply with the auditor’s recommendation. I do note that we were short of personnel for the entire audit period. I believe that I have staff presently that can do most of the assigned duties. I admit that not all of the deficiencies noted were due to being understaffed, but lack of training (being new to HUD) and understanding. But we will also correct those errors to the best of our ability. Person responsible for corrective action: Mary Grace Saenz, Executive Director Telephone: (915) 886-4650 Housing Authority of the Town of Anthony, Texas Fax: (915) 886-2296 1007 Franklin Anthony, TX 79821 Anticipated Completion Date: September 30, 2024

View Audit 310515

Finding 403403 (2023-002)

Material Weakness 2023

Anthony Housing Authority

TX

HUD Housing Programs Allowable Costs / Cost Principles Reporting

Corrective Action Plan Finding: 2023-002-Inadequate Administration of Facets of Programs-Allowable Costs/Principles Condition: (a) and (b)-It appears the enrollment, progress of participants to meet the established goals, and potential earning and disbursement of FSS and Set Aside funds have b...

Corrective Action Plan Finding: 2023-002-Inadequate Administration of Facets of Programs-Allowable Costs/Principles Condition: (a) and (b)-It appears the enrollment, progress of participants to meet the established goals, and potential earning and disbursement of FSS and Set Aside funds have been inadequately monitored for at least the last two years. (c)-Without both of these requested items noted above, we are unable to determine if the SEP contribution terms were adequately complied with. Corrective Action Planned: We will comply with the auditor’s recommendation. I do note that we were short of personnel for the entire audit period. I believe that I have staff presently that can do most of the assigned duties. I admit that not all of the deficiencies noted were due to being understaffed, but lack of training (being new to HUD) and understanding. But we will also correct those errors to the best of our ability. Person responsible for corrective action: Mary Grace Saenz, Executive Director Telephone: (915) 886-4650 Housing Authority of the Town of Anthony, Texas Fax: (915) 886-2296 1007 Franklin Anthony, TX 79821 Anticipated Completion Date: September 30, 2024

View Audit 310515

Finding 403402 (2023-001)

Material Weakness 2023

Anthony Housing Authority

TX

HUD Housing Programs Allowable Costs / Cost Principles Internal Control / Segregation of Duties

ANTHONY HOUSING AUTHORITY PHONE: 915-886-4650 ·FAX:915-886-2296 1007 FRANKLIN ANTHONY, TEXAS 79821 HOUSING AUTHORITY OF ANTHONY, TEXAS CORRECTIVE ACTION PLAN YEAR ENDED SEPTEMBER 30, 2023 Corrective Action Plan Finding: 2023-001-Inadequate Accounting and Documentation-Allowable Costs/Princip...

ANTHONY HOUSING AUTHORITY PHONE: 915-886-4650 ·FAX:915-886-2296 1007 FRANKLIN ANTHONY, TEXAS 79821 HOUSING AUTHORITY OF ANTHONY, TEXAS CORRECTIVE ACTION PLAN YEAR ENDED SEPTEMBER 30, 2023 Corrective Action Plan Finding: 2023-001-Inadequate Accounting and Documentation-Allowable Costs/Principles Condition: (a)-We noted $4,334 of travel costs that were improperly classified in either Maintenance Expense-Materials or Other Administrative Expenses-Other. The above amounts were reclassified by audit adjustment to travel costs. (b)-The adopted policy is for direct payments (ACH- without check) to be accompanied by an authorized check request. As a result of early exceptions we noted, we reviewed approximately 100% of the noted direct payments. Only a minority of the direct payments that we reviewed were accompanied by such an authorized written request. In addition, we do not know the documentation or explanation that was viewed by the authorized person, when the requests that we were able to review was signed. Approximately $55,051 of total payments were made by direct payments. $34,334 and $20,717 were charged to the HCV Fund and the General (Low Rent) Funds, respectively. $49,974 of the total was not supported by adequate documentation. This was $31,586 and $18,388 charged to the HCV and General (Low Rent) Funds, respectively. Much of the unsupported direct payments were travel costs. The total travel costs after reclassifications noted above were $21,336. Of the total travel costs, only $2,723 was paid by check. All tested check amounts contained adequate support. $18,613 of travel costs were paid by direct payments. (c)-We selected three credits at random on the Low Rent rental register that totaled $4,361 that was spread over three months. We requested documented explanations from management for these credits. However, we did not receive any. In addition, we noted in our review of month- to- month Low Rent rental revenue charged, that there was a large variance that may have not been initially detected by management. The average dwelling rent charged for 10 months was $5,800. However, the rent charged for January and February 2023 were $10,855 and $1,570, respectively. We received the accounting information without adjustment or comment on this. Management states that they subsequently found the errors. However, the January variance should have been noted by management before the February rent register was run. (d)-The unaudited financial statements were conditionally approved by REAC. One of the conditions was that PORTs reported on the VMS was $6,009. However, the amount reported on Financial Data Scheule (FDS) Line 97350 is zero. While this difference is immaterial to the financial statements, REAC expects these numbers to agree. To date, management has been unable to reconcile these numbers. (e)-In the current year, Accounting coded a $38,573 advance to a ROSS grant. However, the detailed ELOCCS indicates this is instead was an advance on the CFP 2020 program. In addition, a $46,710 advance was incorrectly classified to the 2021 CFP. Instead, it should have been credited to the 2019 CFP program. (f)-The fee accountant only partially completed their year- end unaudited checklist, that is prepared by a supervising accountant that reviews the year-end unaudited statements prepared by other members of the fee accounting firm. The fee accountant requested but did not receive the necessary information from management. Corrective Action Planned: We will comply with the auditor’s recommendation. I do note that we were short of personnel for the entire audit period. I believe that I have staff presently that can do most of the assigned duties. I admit that not all of the deficiencies noted were due to being understaffed, but lack of training (being new to HUD) and understanding. But we will also correct those errors to the best of our ability. Person responsible for corrective action: Mary Grace Saenz, Executive Director Telephone: (915) 886-4650 Housing Authority of the Town of Anthony, Texas Fax: (915) 886-2296 1007 Franklin Anthony, TX 79821 Anticipated Completion Date: September 30, 2024

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