Corrective Action Plans

Finding 496172 (2022-001)

None 2022

KY

Procurement, Suspension & Debarment Allowable Costs / Cost Principles

Prepared by: Date Prepared: 05 19 2023 Person Responsible for Corrective Action Plan: Anne Melton Anticipated Completion Date: Done Officials Response: The County Admin Code had been updated, to reflect the $30,000 bid limit. The Admin Code had this detail listed in two different places. One line go...

Prepared by: Date Prepared: 05 19 2023 Person Responsible for Corrective Action Plan: Anne Melton Anticipated Completion Date: Done Officials Response: The County Admin Code had been updated, to reflect the $30,000 bid limit. The Admin Code had this detail listed in two different places. One line got changed but the other did not. The bid limit was followed, It was simply a typographical error in not changing the bid limit in 2 different places.

View Audit 318882

Finding 485737 (2022-004)

Material Weakness 2022

First Choice Community Healthcare, Inc.

NM

Questioned Costs Allowable Costs / Cost Principles Equipment & Real Property Management

2022-004—Allowable Costs Corrective Action: FCCH Management shall conduct training of human resource and accounting personnel to ensure they understand the requirement for allowable costs under 2 CFR Part 225 and shall follow the principles in 2 CFR Part 200, Subpart E. Current policies and procedu...

2022-004—Allowable Costs Corrective Action: FCCH Management shall conduct training of human resource and accounting personnel to ensure they understand the requirement for allowable costs under 2 CFR Part 225 and shall follow the principles in 2 CFR Part 200, Subpart E. Current policies and procedures shall be reviewed to ensure adequacy of measures to ensure compliance. FCCH leadership shall also be trained in the elements of allowable cost principles. Person Responsible: Shawna Gonzales, Chief Financial Officer and Abigail Jackson, Human Resources Director Completion Date: December 31, 2024

View Audit 318579 Questioned Costs: $1

Finding 485461 (2022-004)

Material Weakness 2022

Community Development Partnership

MA

Allowable Costs / Cost Principles Cash Management Material Weakness § 200.303

A consistent and substantiated methodology for accounting for indirect costs to be allocated was implemented in FY 23 and remains in place. Anticipated Completion Date-Completed.Responsible Contact Person-Kathleen Boyce, CFAO

View Audit 318188

Finding 485460 (2022-003)

Material Weakness 2022

Community Development Partnership

MA

Allowable Costs / Cost Principles § 200.302

We are working with our Net Suite consultants to correct the historical transactions and on-going system procedures and processes to insure that the accounting software provides that all financial transactions are properly allocated to programs/properties funded with federal funds. Anticipated Compl...

We are working with our Net Suite consultants to correct the historical transactions and on-going system procedures and processes to insure that the accounting software provides that all financial transactions are properly allocated to programs/properties funded with federal funds. Anticipated Completion Date-9/30/2024 . Responsible Contact Person-Kathleen Boyce, CFAO

View Audit 318188

Finding 485451 (2022-005)

Significant Deficiency 2022

County of Imperial

CA

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

2022-005 Temporary Aid for Needy Families (TANF) Federal Financial Assistance Listing Number: 93.558 Federal Grantor: U.S. Department of Health and Human Services Pass-Through: California Department of Social Services Award No. and Year: 1946001347-A7 2022 Compliance Requirements: Eligibility ...

2022-005 Temporary Aid for Needy Families (TANF) Federal Financial Assistance Listing Number: 93.558 Federal Grantor: U.S. Department of Health and Human Services Pass-Through: California Department of Social Services Award No. and Year: 1946001347-A7 2022 Compliance Requirements: Eligibility Type of Finding: Significant Deficiency Management’s or Department’s Response: Imperial County Department of Social Services agrees with the finding. Views of Responsible Officials and Corrective Action Plan: The Count of Imperial, Department of Social Services, is committed to maintaining robust monitoring and oversight controls in place to ensure that applicant eligibility is thoroughly reviewed and approved. The Department will continue to monitor compliance with policies to ascertain that eligibility technicians follow guidelines for redetermination of recipients of need and amount of assistance, including to retain acceptable documentation to support the determinations. The Department will implement enhances training and guidance to include refresher training that will be developed based on needs identified during this review. The training will address any changes in regulations and/or internal processes. Name of Responsible Person: Paula S. Llanas, County of Imperial – Department of Social Services Director Implementation Date: September 1, 2024

View Audit 318179

Finding 485448 (2022-007)

Significant Deficiency 2022

County of Imperial

CA

Reporting Internal Control / Segregation of Duties Subrecipient Monitoring § 200.303

2022-007 Program: WIOA Cluster Federal Financial Assistance Listing Number: 17.258, 17.259, 17.277, 17.278 Federal Grantor: U.S. Department of Labor Pass-Through: California Department of Employment Development Award No. and Year: AA111008 and 2021 Compliance Requirements: Reporting Type of Finding...

2022-007 Program: WIOA Cluster Federal Financial Assistance Listing Number: 17.258, 17.259, 17.277, 17.278 Federal Grantor: U.S. Department of Labor Pass-Through: California Department of Employment Development Award No. and Year: AA111008 and 2021 Compliance Requirements: Reporting Type of Finding: Significant Deficiency Management’s or Department’s Response: Imperial County Workforce Development Office (ICWDO) agrees with the finding. Views of Responsible Officials and Corrective Action Plan: ICWDO acknowledges the recommendation and is actively working on a remedy and on the development of formal policies as recommended, which will assist ICWDO’s fiscal team in ensuring that all reports are appropriately reconciled. ICWDO acknowledges the recommendations from finding 2021-010 related to a formalization of the Administrative/fiscal processes and protocols to ensure that procedures are consistently followed to guarantee that reports agree to the amounts recorded in the general ledger and SEFA. Additionally, the recommendation specifics that protocols to ensure the separation of duties are featured in the policy. ICWDO operates under WIOA guidelines and follows County fiscal/administrative policies. Internal policies that include formal controls and procedures to ensure that monthly reports and general ledgers are consistent, with clear segregation of duties will be formally adopted. Aspects of these policies will include: • Protocol for preparation of monthly reports by the fiscal manager, and approval and signature by ICWDO Director • Protocol for preparation of closeouts that will provide the hierarchy of development, review, and approval for future reference. • Schedule monthly closeout meetings with the fiscal department and administration to ensure that documents are reviewed separately, and issues are addressed promptly. • Protocol for Policy Committee review, comment and direction, and approval for implementation by vote of the full workforce development board. ICWDO anticipates to implement the corrective action by December 31, 2023. Name of Responsible Person: Priscilla A Lopez, ICWDB Director Implementation Date: December 31, 2023

View Audit 318179

Finding 484946 (2022-010)

Material Weakness 2022

Garner-Hayfield-Ventura Community School District

IA

Allowable Costs / Cost Principles

Comment Title: Food Service Contract. Corrective Action Plan: We are working with the food service management company to resolve these issues. Contact person, Title, Ohone Number: Holly Fischer, Business Manager, (641) 932-2718. Anticipated Date of Completion: Immediately

View Audit 317789

Finding 484835 (2022-003)

Significant Deficiency 2022

L.a. Works Inc.

CA

Allowable Costs / Cost Principles

Corrective Action Plan Date: August 13, 2024 Cognizant or Oversight Agency: Corporation for National and Community Service L.A. Works, Inc. respectfully submits the following corrective action plan for the year ended December 31, 2022. Name and address of independent public accounting firm: Armanino...

Corrective Action Plan Date: August 13, 2024 Cognizant or Oversight Agency: Corporation for National and Community Service L.A. Works, Inc. respectfully submits the following corrective action plan for the year ended December 31, 2022. Name and address of independent public accounting firm: Armanino, LLP 11766 Wilshire Blvd. 9th Floor Los Angeles, CA 90025 Audit period: December 31, 2022 The findings from the December 31, 2022 schedule of findings and questioned costs are discussed below. The findings are numbered consistently with the number assigned in the schedule. FINDINGS-MAJOR PROGRAM SIGNIFICANT DEFICIENCY 2022-003 The Uniform Guidance Cost principles require that organizations identify, in their accounts, all Federal awards received and expended. Recommendation: Management should ensure that grant expenses are allocated within the accounting software on a monthly basis, or, if preferred, when each payroll is processed. Action Taken: Once brought to our attention, we shifted our approach and are now fully in compliance. For the 2023 year, payroll delineation has been allocated monthly within the accounting software and for the 2024 year, payroll delineation has been allocated as payroll is processed. Name of responsible person: Name Ellen Tiep Title Finance Manager, L.A. Works Anticipated completion date: Completed as of December 31, 2023. If the Corporation for National and Community Service has questions regarding this plan, please call Deborah Brutchey, (213) 481-5376. Sincerely yours, Deborah Brutchey Executive Director L.A. Works

View Audit 317752

Finding 484748 (2022-002)

Material Weakness 2022

Little Rock Workforce Development Board

AR

Questioned Costs Subrecipient Monitoring Allowable Costs / Cost Principles § 200.331

Management is consiering its options for further appeals to the department of Labor for review. Management will work to ensure proper policies and procedures are established and followed by December 31, 2024

View Audit 317675 Questioned Costs: $1

Finding 484708 (2022-001)

Material Weakness 2022

Mark Twain Association for Mental Health Inc.

MO

Allowable Costs / Cost Principles Matching / Level of Effort / Earmarking Cash Management § 200.302 § 200.430

May 3, 2024 Re: SAMHSA Notice of Award for 6H79SM083161-01M003 MTBH submitted our budget based on anticipated salary costs for new hires, which we believe stayed at or below our actual costs. We made available all necessary documentation requested from payroll, grant-related expenses, grant reports...

May 3, 2024 Re: SAMHSA Notice of Award for 6H79SM083161-01M003 MTBH submitted our budget based on anticipated salary costs for new hires, which we believe stayed at or below our actual costs. We made available all necessary documentation requested from payroll, grant-related expenses, grant reports and timekeeping records to Wade Stables P.C for review. We did not have the grant in our financial software as we were beginning a migration to new software during the early stages of the grant; therefore, we tracked that grant on an excel spreadsheet that annually was provided to our auditors. Most of the staff assigned to the grant were full-time staff, so time allocation was easily tracked. For the few staff that were part-time we had designated codes in our Electronic Medical Record to identify work done on behalf of the grant. In response to Finding 2022-001- B Allowable Costs, we agree with the Statement of Cause citing the exponential growth of the organization regarding preparedness for a first-time grant award of this size being our largest challenge. Initially we were informed we had not received the grant then, due to additional COVID funding, we were invited to participate in the grant with a very short turnaround to finalize budgets and hire staff. Our salaries are consistent with the positions designated in the grant and in a few cases our staff salaries exceeded the allowable costs; therefore, those allowable costs were used to calculate the drawdown. MTBH did not have an established de minimis rate; therefore, we used the 10% designated rate associated with the grant. The interactive Budget Narrative Form template, required per SAMHSA guidelines, had 10% built into the template. If afforded future opportunities to secure a SAMSHA grant, we would be better positioned to execute the financial management in our SAGE software to segregate costs for the purpose of tracking the expenditures associated agency grant operations. Currently all agency expenditures have transferred into SAGE by our Vice President of Finance, Jenny Haught MBA, which would also be the Responsible Official to fiscally manage future grants. Respectfully, Angela Caraway, VP of Clinical Operations

View Audit 317609

Finding 484704 (2022-003)

Material Weakness 2022

North Wheeler County Hospital District D/b/a Parkview Hospital

TX

Questioned Costs Allowable Costs / Cost Principles Reporting

Corrective Action Plan for Finding 2022-003 We are in receipt of the findings required to be reported by the single audit for Period 1 reporting for payments received from the Provider Relief Fund (PRF), specifically, regarding discrepancies in the reporting requirements and auditing for the above ...

Corrective Action Plan for Finding 2022-003 We are in receipt of the findings required to be reported by the single audit for Period 1 reporting for payments received from the Provider Relief Fund (PRF), specifically, regarding discrepancies in the reporting requirements and auditing for the above period for the PRF. Management does not dispute the finding. The district will work to develop policies over financial reporting for future periods for PRF reporting and auditing. The district will perform detailed analysis of the reporting requirements in accordance with the guidelines set forth by HRSA. The hospital CEO, Cecil Gaither, will oversee this to ensure that this is accomplished. The district will also provide its’ consultants any information to be submitted to HRSA for accuracy. The district has already begun implementing the new procedures and is confident that all future submissions will be correct. The District had enough expenditures for Period 1 and 4 funding received to cover any disqualified lost revenues that were utilized as a basis for the funds received. The corrective action plan will be implemented by May 31, 2024.

View Audit 317591 Questioned Costs: $1

Finding 484629 (2022-002)

Significant Deficiency 2022

Corporacion Del Centro De Bellas Artes De Puerto Rico

PR

Allowable Costs / Cost Principles Internal Control / Segregation of Duties § 200.302 § 200.303

Action Item Title 2022-002 – Financial Management and Internal Controls Compliance Requirement Allowable Costs/Cost Principles Status (Open: In-process) Condition Written Policies The Corporation has no written policies for determining the activities allowed or unallowed and the allowability of...

Action Item Title 2022-002 – Financial Management and Internal Controls Compliance Requirement Allowable Costs/Cost Principles Status (Open: In-process) Condition Written Policies The Corporation has no written policies for determining the activities allowed or unallowed and the allowability of costs as described in subpart E, Cost Principles of 2 CFR Part 200. Identified root cause It is the first year for the Corporation to be subjected to a single audit compliance requirement. However, since the Commonwealth of Puerto Rico (the Commonwealth) filed for Title III under the PROMESA, all the instrumentalities of the Commonwealth had to reduce their staff as part of the Fiscal Plan to reduce expenditures. This has disrupted the segregation of duties, which is a key control. Grantee resolution plan Written Policies The Corporation received federal funds for the first time in 2022. For the purposes of purchases or acquisitions, the Corporation is governed by Law of the General Service Administration for the Centralization of Government Purchases in Puerto Rico, Law No. 73 of 2019, which establishes the uniform purchasing process for acquisitions by the Commonwealth. The Corporation will adopt regulations for the use and disbursement of federal funds and comply with the federal regulations. Completion Date Written Policies By June 30, 2025 Name and Title of contact: Linnette Dávila Alemán- Financial and Budget Assistant Manager Phone: 787-724-4747 ext. 2105 Email: ldavila@cba.pr.gov Jetppeht Pérez de Corcho Morgado – General Manager Phone: 787-724-4747 ext. 2102 Email: jperez@cba.pr.gov

View Audit 317516

Finding 481368 (2022-001)

Material Weakness 2022

Monongalia Health System, Inc. and Subsidiaries

WV

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

Corrective Action Planned: Subsequent to the filing of the Period 1 reports Monongalia Health System, Inc. and Subsidiaries instituted new policies and procedures surrounding the use, tracking and reporting on federal funds, including the Provider Relief Fund and American Rescue Plan Act (ARP) Rural...

Corrective Action Planned: Subsequent to the filing of the Period 1 reports Monongalia Health System, Inc. and Subsidiaries instituted new policies and procedures surrounding the use, tracking and reporting on federal funds, including the Provider Relief Fund and American Rescue Plan Act (ARP) Rural Distribution. Under the new policies and procedures the usage of all funds is accumulated and reviewed on a monthly basis, and all reporting is subjected to reviews by the VP’s of Finance prior to reporting. Name(s) of Contact Person(s) Responsible for Corrective Action: Kevin Gessler, VP of Finance and Rick Scherich, VP of Finance are responsible for effectuating updated procedures Anticipated Completion Date: Updated Policies and procedures were implemented on September 30, 2023

View Audit 317404

Finding 481297 (2022-008)

Material Weakness 2022

Dunseith Public School District No. 1

ND

Allowable Costs / Cost Principles Internal Control / Segregation of Duties

Contact Person Evan Peltier Planned Corrective Action Dunseith Public School Dist. #1 will implement the recommendation from Brady Martz. Planned Completion Date The planned completion date will be the start of FY-23.

View Audit 317381

Finding 481294 (2022-005)

Material Weakness 2022

Dunseith Public School District No. 1

ND

Allowable Costs / Cost Principles Internal Control / Segregation of Duties

Contact Person Evan Peltier Planned Corrective Action Dunseith Public School Dist. #1 will implement the recommendation from Brady Martz. Planned Completion Date The planned completion date will be the start of FY-23.

View Audit 317381

Finding 481133 (2022-016)

Significant Deficiency 2022

Unity Health Care, Inc.

MD

Allowable Costs / Cost Principles § 200.303

Management Response #2022-016: Due to the staff shortages and turnover in FY2020-2022 the company did not have adequate personnel in place to monitor or document grant activity. Formal documentation of policies and procedures were also deficient. Additionally, documents were not stored centrally, wh...

Management Response #2022-016: Due to the staff shortages and turnover in FY2020-2022 the company did not have adequate personnel in place to monitor or document grant activity. Formal documentation of policies and procedures were also deficient. Additionally, documents were not stored centrally, which made it extremely difficult to find supporting documentation. Corrective Action Plan: The Grants program management team will expand upon their current process that was instituted in 2024 to ensure the calculation for indirect costs and documentation supporting the indirect cost pools is properly maintained and that costs conform to the current regulations as required. Responsible Party: Tamara Barnes, CFO

View Audit 317252

Finding 481117 (2022-009)

Material Weakness 2022

Unity Health Care, Inc.

MD

Cash Management Subrecipient Monitoring Allowable Costs / Cost Principles § 200.302 § 200.305

Management Response #2022-009: Due to the staff shortages and turnover in FY2020-2022 the company did not have adequate personnel in place to monitor or document grant activity. Formal documentation of policies and procedures were also deficient. Additionally, documents were not stored centrally, wh...

Management Response #2022-009: Due to the staff shortages and turnover in FY2020-2022 the company did not have adequate personnel in place to monitor or document grant activity. Formal documentation of policies and procedures were also deficient. Additionally, documents were not stored centrally, which made it extremely difficult to find supporting documentation. Corrective Action Plan: The following action plans have since been implemented: • During the fourth quarter in 2022, finance team delineated and expanded positions whose primary responsibility is to monitor and manage all grant activities. • During the fourth quarter in 2022 a new process was implemented to track grant related activities. Prior to any drawdown, the expenses are pulled from the G/L and reviewed. The expenses are entered into a spreadsheet and totaled based on the applicable federal award which has been assigned a client ID in the accounting system. The finance team is notified of the amount due to be drawn for each federal award. That amount is entered into the accounting system as an accounts receivable entry. This process has been formally documented. • Project Budget Reports have been created for each federal award. These reports include the budget, expenses for each month and the revenue (drawdown) incurred for each month. The reports will be reviewed and reconciled by the grants administration staff and finance monthly to ensure all agree with the allocated costs and costs and are in compliance with grant regulations. Once approved by both teams the reports will be routed for signatures. This process was launched in July 2022. • Supporting documentation for all draws will be maintained on a shared network drive so that an adequate audit trail will be established. This drive will be backed up on a regular basis by the Information Technology team. Responsible Party: Tamara Barnes, CFO

View Audit 317252

Finding 481115 (2022-006)

Material Weakness 2022

Unity Health Care, Inc.

MD

Allowable Costs / Cost Principles Matching / Level of Effort / Earmarking § 200.431

Management Response #2022-006: Due to turnover of several key financial executives and personnel, the Corporation did not maintain evidence of fringe benefit cost objectives calculations. Corrective Action Plan: Due to the staff turnover and shortage in 2020-2021, this process was not consistently ...

Management Response #2022-006: Due to turnover of several key financial executives and personnel, the Corporation did not maintain evidence of fringe benefit cost objectives calculations. Corrective Action Plan: Due to the staff turnover and shortage in 2020-2021, this process was not consistently maintained or documented. The following action items have been or will be taken: • In 2022, finance team delineated and expanded positions whose primary responsibility is to monitor and manage all grant activities. • The grants finance department will also create actual to budget reports in accordance with HRSA guidelines for fringe costs. • The report will be reconciled monthly based on fringe costs allowed by the grant as it relates to the employee class such as part time or providers that may have additional benefits. Adjustments will be recorded in the GL (General Ledger) accordingly. Responsible Party: Tamara Barnes, CFO

View Audit 317252

Finding 481114 (2022-005)

Material Weakness 2022

Unity Health Care, Inc.

MD

Allowable Costs / Cost Principles Matching / Level of Effort / Earmarking § 200.430

Management Response #2022-005: The time keeping system and process does not currently allow tracking of time based on funded resources. The past practice had been for the finance department manually calculated salary allocations but due to staff turnover in FY2021-22, the process was not consistentl...

Management Response #2022-005: The time keeping system and process does not currently allow tracking of time based on funded resources. The past practice had been for the finance department manually calculated salary allocations but due to staff turnover in FY2021-22, the process was not consistently followed. Corrective Action Plan: The following action items have been or will be taken: • In 2022, the finance team delineated and expanded positions whose primary responsibility is to monitor and manage all grant activities. • Monthly time and effort reports to include recorded time worked under each grant will be sent to the employee and require employee and supervisor approval. • As of 2022 salary/wages are allocated to federal grants based on actual costs received from payroll. • Finance Management will also create actual to budget reports in accordance with HRSA (Health Resources and Services Administration) guidelines for salaries/wages and hours. The report will be reconciled monthly. • Human Resources department will collaborate with the Grants and Finance teams to ensure grants hours is added as an option within the timekeeping system for accurate recording for FY24. Responsible Party: Tamara Barnes, CFO

View Audit 317252

Finding 481103 (2022-008)

Significant Deficiency 2022

National Casa Association

WA

Period of Performance Subrecipient Monitoring Allowable Costs / Cost Principles

Responsible: Thomas Hoover, CFO Corrective Actions: 1) Update Finance policies to specify documentation and maintenance of such documentation of the review and approval of costs allocated to federal grants within the grant funding period. 2) Update grant policies to include subrecipient periodic s...

Responsible: Thomas Hoover, CFO Corrective Actions: 1) Update Finance policies to specify documentation and maintenance of such documentation of the review and approval of costs allocated to federal grants within the grant funding period. 2) Update grant policies to include subrecipient periodic submission of supporting documentation. Completion Date: July 10, 2024 Explanation: Management concurs that the procedures should specify documentation and maintenance of such documentation of the review and approval of costs allocated/charged to the federal grant within the grant funding period. Grant policies and procedures have been updated to include subrecipient periodic submission of general ledger or other financial documentation supporting expenditures during the period.

View Audit 317239

Finding 481089 (2022-004)

Material Weakness 2022

National Casa Association

WA

Matching / Level of Effort / Earmarking Allowable Costs / Cost Principles § 200.300 § 200.306 § 200.308 § 200.309 § 200.403

Responsible: Thomas Hoover, CFO Corrective Actions: Update Finance policies to specify that documentation of review and approval of both the costs charged and the allocation methods of costs charged to federal grants be maintained. Completion Date: March 29, 2023 Explanation: Policies have bee...

Responsible: Thomas Hoover, CFO Corrective Actions: Update Finance policies to specify that documentation of review and approval of both the costs charged and the allocation methods of costs charged to federal grants be maintained. Completion Date: March 29, 2023 Explanation: Policies have been in place over the coding of costs allocated to federal grants in compliance with CFR 200 and were enhanced in 2023 in response to an OJJDP/OCFO recommendation. Review and approval of costs after being approved by an authorized signer takes place in multiple steps and concludes with preparation of reimbursements and financial grant reports (FFR). In order to further demonstrate compliance as recommended, Management has updated Finance policies to capture the documentation and maintenance of such documentation of Supervisory review and approval.

View Audit 317239

Finding 481085 (2022-003)

Material Weakness 2022

National Casa Association

WA

Allowable Costs / Cost Principles Matching / Level of Effort / Earmarking Subrecipient Monitoring § 200.430

Responsible: Thomas Hoover, CFO Corrective Actions: 1) Update Finance policies to document and maintain the documentation of Supervisory review and approval of journal entries charging payroll costs to federal grants; 2) Update Finance policies to review estimates of accrued costs charged to feder...

Responsible: Thomas Hoover, CFO Corrective Actions: 1) Update Finance policies to document and maintain the documentation of Supervisory review and approval of journal entries charging payroll costs to federal grants; 2) Update Finance policies to review estimates of accrued costs charged to federal grants at calendar/fiscal year end to determine whether true-ups to actual costs are necessary. Completion Date: March 29, 2023 Explanation: 1) Review of allocated payroll costs: Payroll processing and recording of costs charged to federal grants has in practice, consistently involved multiple review and approval steps by at least two employees. Detailed records of these steps are maintained in Finance records for each payroll, including the allocated grant costs. However, Management acknowledges that an additional step be added to capture the documentation of review and approval of the payroll journal entries that allocate payroll costs to federal grants. This step was put in place in 2023 to resolve a recommendation from OJJDP/OCFO. Supervisor review and approval is captured directly in the general ledger system. Finance policies have been updated to codify this additional step as recommended. 2) Procedure for trueing up estimates: Three of sixty transactions tested showed that payroll costs were accrued at year end based on the approved grant budget but were not trued up in the new accounting period based on actual costs. The total variance of the three transactions was $6.20. Finance policies have been updated to include evaluating year-end accruals to determine whether a true-up is necessary in the new period as recommended.

View Audit 317239

Finding 480844 (2022-003)

Material Weakness 2022

Mt Pleasant Housing Develpment Fund Company

NY

Questioned Costs Allowable Costs / Cost Principles HUD Housing Programs

Finding No. 2022-003; Supportive Housing for the Elderly (Section 202), CFDA 14.157 Criteria Loans are not permitted to be made from project cash without prior authorization from HUD. Condition During the year ended November 30, 2022, the project paid expenses in the amount of $326,282 on behalf of ...

Finding No. 2022-003; Supportive Housing for the Elderly (Section 202), CFDA 14.157 Criteria Loans are not permitted to be made from project cash without prior authorization from HUD. Condition During the year ended November 30, 2022, the project paid expenses in the amount of $326,282 on behalf of other affiliates from project cash without HUD approval. The amount due to the project as of November 30, 2022 is $326,282. Cause Procedures were not in place to ensure that cash disbursements of project funds were limited to project operating costs. Effect or Potential Effect The payments of $326,282 were unauthorized loans and therefore considered to be questioned costs. Questioned Costs $326,282 Recommendation Management should immediately reimburse the amount due to the project and establish procedures to ensure payments of this nature are not made in the future. Auditor Noncompliance Code: B – Allowable Costs/Cost Principles Views of Responsible Officials and Planned Corrective Actions Because the PRAC renewals were so delayed, therefore there was no money available to pay back the project. Furthermore, the insurance costs are tremendous and had to be financed. In order to ensure the payments are applied and paid timely it is best to have the entire amount pulled from one bank account. If each entity were to pay its share it would cause confusion and may result in possible cancellation. Upon finalizing the audits and submitting to HUD, management intends to request funds from the replacement reserve to enable them to pay down the due from affiliates.

View Audit 316973 Questioned Costs: $1

Finding 480842 (2022-002)

Material Weakness 2022

Casita Park Housing Development Fund Corporation

NY

Questioned Costs Allowable Costs / Cost Principles HUD Housing Programs

Finding 2022-002 Unauthorized loans from project assets Comments on the Finding and Each Recommendation Statement of Condition During the year ended September 30, 2022, the project paid expenses in the amount of $81,886 on behalf of an affiliate from project cash without HUD approval. The amount due...

Finding 2022-002 Unauthorized loans from project assets Comments on the Finding and Each Recommendation Statement of Condition During the year ended September 30, 2022, the project paid expenses in the amount of $81,886 on behalf of an affiliate from project cash without HUD approval. The amount due to the project as of September 30, 2022 is $81,886. Criteria Loans are not permitted to be made from project cash without prior authorization from HUD. Cause Procedures were not in place to ensure that cash disbursements of project funds were limited to project operating costs. Effect or Potential Effect The payments of $81,886 were unauthorized loans and therefore considered to be questioned costs. Questioned Costs $ 81,886. Recommendation Management should immediately reimburse the amount due to the project and establish procedures to ensure payments of this nature are not made in the future. Auditor Noncompliance Code B – Allowable Cost/Costs Principles Reporting Views of Responsible Officials The Corporation agrees with the finding and the auditor's recommendations have been adopted. Upon finalizing the audits and submitting to HUD, management intends to request funds from the replacement reserve to enable them to pay down the due from affiliates..

View Audit 316972 Questioned Costs: $1

Finding 480841 (2022-002)

Material Weakness 2022

Lucille Clark Housing Development Corporation

NY

Questioned Costs Allowable Costs / Cost Principles HUD Housing Programs

2- Finding No. 2022-002; Unauthorized loans from project assets Statement of Condition During the year ended September 30, 2022, the project paid expenses in the amount of $32,736 on behalf of an affiliate from project cash without HUD approval. The amount due to the project as of September 30, 2022...

2- Finding No. 2022-002; Unauthorized loans from project assets Statement of Condition During the year ended September 30, 2022, the project paid expenses in the amount of $32,736 on behalf of an affiliate from project cash without HUD approval. The amount due to the project as of September 30, 2022 is $32,736. Criteria Loans are not permitted to be made from project cash without prior authorization from HUD. Cause Procedures were not in place to ensure that cash disbursements of project funds were limited to approved project operating costs. Effect or Potential Effect The payments of $32,736 were unauthorized loans and therefore considered to be questioned costs. Questioned Costs $32,736. Recommendation Management should immediately reimburse the amount due to the project and establish procedures to ensure payments of this nature are not made in the future. Auditor Noncompliance Code B – Allowable Cost/Costs Principles Reporting Views of Responsible Officials The Corporation agrees with the finding and the auditor's recommendations have been adopted. Upon finalizing the audits and submitting to HUD, management intends to request funds from the replacement reserve to enable them to pay down the due from affiliates.

View Audit 316971 Questioned Costs: $1

Corrective Action Plans

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