Corrective Action Plans

Finding 1154085 (2024-001)

Material Weakness 2024

Field to Market

DC

Allowable Costs / Cost Principles § 200.303 § 200.430

Management will update the entity’s accounting policies and procedures to include specific guidance on payroll allocation and documentation requirements for personnel expenses charged to Federal awards.

View Audit 366976

Finding 1153869 (2024-001)

Material Weakness 2024

Chicago Housing Authority

IL

HUD Housing Programs Eligibility Special Tests & Provisions § 200.303

Finding 2024-001 E. Eligibility, L. Reporting (Form HUD-50058 MTW), and N. Special Tests and Provisions – N1. Waiting List, N2. Reasonable Rent, N3. Utility Allowance Schedule, N6. Housing Assistance Payment – Assistance Listing No. 14.881 Corrective Action Plan: Response/Planned Actions: Since Janu...

Finding 2024-001 E. Eligibility, L. Reporting (Form HUD-50058 MTW), and N. Special Tests and Provisions – N1. Waiting List, N2. Reasonable Rent, N3. Utility Allowance Schedule, N6. Housing Assistance Payment – Assistance Listing No. 14.881 Corrective Action Plan: Response/Planned Actions: Since January 2025, CHA’s Property and Asset Management Division has been engaged in an extensive reorganization to expand resources that will improve compliance and increase controls around program compliance. With this restructuring, precise policies, procedures, and internal controls are being implemented as outlined below. Timeline: February 2025 • Added additional Property Operations Managers to allow for more oversight of day-to-day site activity April 2025 • Creation of a new Compliance team, who will function as a hub on both regulatory and contract compliance for Public Housing and RAD programs. Part of this team was created to focus specifically on program eligibility—either directly or through oversight of third-party management firms—and is staffed accordingly: o Director of Compliance o Senior Manager of Compliance o Compliance Specialist June 2025 • Worked to finalize solicitation for third party firm to perform monthly tenant file reviews, provide comprehensive reporting on general findings, patterns, training needs, and gross compliance concerns. CHA staff will implement trainings and contract enforcement as necessary to ensure compliance standards are raised, and controls are being adhered to. These monthly tenant file reviews are expected to continue in addition to the routine file audits conducted by Property Operations Managers. October 2025 • Updated manuals for Property Operations will be completed, distributed, and trained on to ensure site operations meet compliance standards and controls are being adhered to. Initiated and ongoing actions • Frequent business meetings with third party firms to discuss performance and expectations • Trainings required as necessary • Contract enforcement, up to and including contract termination, when chronic disregard for or misapplication of policies and/or procedures are noted Contact Person: Leonard Langston, Jr, Interim Chief Property Officer Anticipated Completion Date: Q4 2025 Response/Planned Actions: The CHA will review quality control procedures currently in place by Housing Choice Voucher (HCV) program administration to ensure processes are sound and efficient and proper prevent controls are in place. All quality control processes in place must effectively ensure accuracy and timeliness of completed recertifications, including submission of Form HUD-50058s to the U.S. Department of Housing and Urban Development’s (HUD’s) PIH Information Center (PIC) system. CHA will also develop internal detect control reports to monitor the timelines for recertification scheduling and tracking. CHA conducts monthly follow-up to ensure corrections are made to records identified as “fails” during the monthly quality control review. All “fails” items are tracked and monitored until resolution for final determination has been achieved. Contact Person: Cheryl Burns, Chief HCV Officer Anticipated Completion Date: End of 3rd Qtr. 2025

View Audit 366932

Finding 1153866 (2024-010)

Material Weakness 2024

Florida Crown Workforce Board, INC

FL

Questioned Costs Allowable Costs / Cost Principles

2024-010 WIOA Cluster Activities Allowed/Allowable Costs Support Criteria: According to the Compliance Supplement, 2 CFR PART 200, APPENDIX XI, published by the Office of Management and Budget (OMB) for the WIOA Cluster, for activities allowed/unallowed and allowable costs, expenses must only be spe...

2024-010 WIOA Cluster Activities Allowed/Allowable Costs Support Criteria: According to the Compliance Supplement, 2 CFR PART 200, APPENDIX XI, published by the Office of Management and Budget (OMB) for the WIOA Cluster, for activities allowed/unallowed and allowable costs, expenses must only be spent on those items and activities which are noted to be allowable by the WIOA cluster, and must be supported by documentation to ensure expenses are proper. Condition: In the current year, the Organization failed to provide supporting documentation for 7 of 40 non-payroll cash disbursement selections, and we were unable to determine if the cost/activity was allowable/unallowable. Cause: Due to the transfer of operations beginning on July 1, 2024, to a new LWDB, turnover within the LWDB, and movement to a new office, the LWDB was not able to provide supporting documentation to substantiate the cost/activity. Effect: The Organization was not to provide documentation of the Allowable Cost/Activity requirements being met under the WIOA grant for 7 selections. Recommendation: We recommend that the Organization ensure proper documentation as required by WIOA is retained and accessible to document compliance with grant requirements. Response: Management concurs with the finding and recommendation. Due to the transfer of operations beginning on July 1, 2024, to a new LWDB, turnover within FL Crown, and movement to a new office, FL Crown was not able to provide supporting documentation to substantiate the cost/activity for 7 of 40 disbursement samples. The new consolidated entity, LWDB 26, through its Fiscal Agent, Alachua County and Alachua County Clerk of Court has robust controls in place to track all invoices and payments and the related supporting documentation. All the documentation is maintained in electronic workflows and stored within the ERP financial software system.

View Audit 366929 Questioned Costs: $1

Finding 1153856 (2024-009)

Material Weakness 2024

Florida Crown Workforce Board, INC

FL

Questioned Costs Allowable Costs / Cost Principles Matching / Level of Effort / Earmarking

2024-009 WIOA Cluster Matching Noncompliance Criteria: According to the Compliance Supplement, 2 CFR PART 200, APPENDIX XI, published by the Office of Management and Budget (OMB) for the WIOA Cluster, Local Areas: "(1) A local area may expend no more than 10 percent of the Adult, Dislocated Worker, ...

2024-009 WIOA Cluster Matching Noncompliance Criteria: According to the Compliance Supplement, 2 CFR PART 200, APPENDIX XI, published by the Office of Management and Budget (OMB) for the WIOA Cluster, Local Areas: "(1) A local area may expend no more than 10 percent of the Adult, Dislocated Worker, and Youth Activities funds allocated to the local area under Sections 128(b) (WIOA, 128 Stat. 1502) and 133(b) (WIOA, 128 Stat. 1516) for within State allocations." Condition: In the current year, the Organization failed to expend no more than 10% in administrative costs in the WIOA cluster, expending 13.31%. Cause: The Organization did not properly monitor administrative expenses for the WIOA Cluster to ensure that the overall percentage allocated to administrative expenses was no more than 10%. Effect: The Organization was not in compliance with the Matching requirements under the WIOA cluster. Recommendation: We recommend that the Organization ensure that expenses - and specifically administrative expenses - be properly tracked to ensure compliance with WIOA cluster grant requirements. Response: Management concurs with the finding and recommendation. Due to the termination of awards effective June 28, 2024, FL Crown did not have the ability to reclassify administrative costs to subsequent program year awards. The new consolidated entity, LWDB 26, monitors the 10% cap with each monthly cash draw and benefits from having an interlocal agreement with Alachua County to provide administrative support services at a capped rate of 3.5% of formula awards.

View Audit 366929 Questioned Costs: $1

Finding 1153786 (2024-004)

Material Weakness 2024

Brown County

MN

Internal Control / Segregation of Duties Allowable Costs / Cost Principles Cash Management

RANDOM MOMENT STUDY EMPLOYEES LISTING Federal Agency: U.S. Department of Health and Human Services Federal Program Title: Medical Assistance Program (Medicaid Cluster) Assistance Listing Number: 93.778 Federal Award Identification Number and Year: 2405MN5ADM and 2405MN5MAP, 2024 Pass-Through Agency:...

RANDOM MOMENT STUDY EMPLOYEES LISTING Federal Agency: U.S. Department of Health and Human Services Federal Program Title: Medical Assistance Program (Medicaid Cluster) Assistance Listing Number: 93.778 Federal Award Identification Number and Year: 2405MN5ADM and 2405MN5MAP, 2024 Pass-Through Agency: Minnesota Department of Human Services Pass-Through Numbers: 2405MN5ADM and 2405MN5MAP Award Period: Year-Ended December 31, 2024 Type of Finding: Significant Deficiency in Internal Control over Compliance and Other Matters Recommendation: It is recommended the County review the RMS listings and employees within the department and account codes to ensure the proper employees are included on the listing and general ledger accounts. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: The County has implemented procedures and policies to have a person ensure account coding is made to the correct accounts. Name of the contact person responsible for corrective action plan: Anne Broskoff, Human Services Director Planned completion date for corrective action plan: December 31, 2025

View Audit 366876

Finding 1153760 (2024-003)

Material Weakness 2024

Sawyer County Housing Authority

WI

Allowable Costs / Cost Principles § 200.430

Comments on findings and recommendations The organization concurs with the finding and agrees that after-the-fact time documentation is necessary to comply with federal requirements, even when employees' assignments and hours are consistent. Actions taken or planned The organization has performed a ...

Comments on findings and recommendations The organization concurs with the finding and agrees that after-the-fact time documentation is necessary to comply with federal requirements, even when employees' assignments and hours are consistent. Actions taken or planned The organization has performed a time-study during 2024 to support allocations to programs and has been implemented in 2025. Anticipated completion date January 1, 2025

View Audit 366846

Finding 1153755 (2024-003)

Material Weakness 2024

City of Bangor

ME

Questioned Costs Allowable Costs / Cost Principles

Management’s Response/Corrective Action Plan: In March of 2025 during the audit process, we were asked about reporting budgeted hours vs. actual hours. Based on that inquiry, we have been working on Time Effort Timesheets for those individuals who allocate their time over 2 or more cost centers. The...

Management’s Response/Corrective Action Plan: In March of 2025 during the audit process, we were asked about reporting budgeted hours vs. actual hours. Based on that inquiry, we have been working on Time Effort Timesheets for those individuals who allocate their time over 2 or more cost centers. These Time Effort Timesheets commenced July 2025 and are now standard practice as part of weekly payroll reporting.

View Audit 366845 Questioned Costs: $1

Finding 1153720 (2024-011)

Material Weakness 2024

City of Bangor

ME

Allowable Costs / Cost Principles Procurement, Suspension & Debarment

Management’s Response/Corrective Action Plan: The Transit Department will revise its reimbursement template to exclude encumbrances and unallowable costs and charge non-competitively procured shared costs to the local share.

View Audit 366845

Finding 1153716 (2024-004)

Material Weakness 2024

City of Bangor

ME

Allowable Costs / Cost Principles Period of Performance Internal Control / Segregation of Duties

Management’s Response/Corrective Action Plan: The City of Bangor’s Community Development Block Grant program receives direct oversight by the Community Development Officer, responsible for ensuring compliance with Federal regulations, including the determination of eligibility, allowability, and all...

Management’s Response/Corrective Action Plan: The City of Bangor’s Community Development Block Grant program receives direct oversight by the Community Development Officer, responsible for ensuring compliance with Federal regulations, including the determination of eligibility, allowability, and allocability of all financial expenditures. Previously, the City’s practice concerning CDBG funds provided to other departments allowed those project managers to directly charge the CDBG account through payroll, requisition or direct charges which are not first reviewed and approved by the Community Development Officer. The Community Development Officer has implemented the following procedural changes: 1. Executing Interdepartmental Subrecipient Agreements. This document establishes certain standards and expectations for CDBG-funded programs. In 2025-26, Agreements will create new procedural safeguards including submitting requisitions for all expenditures not contained in the approved budget, and to submit receipts or invoices to the Community Development office directly to back up all approved expenses. 2. The Community Development Officer must review and sign off on all expenses charged to the CDBG account by Community and Economic Development Staff, including “OK To Pay” charges, and requisitions. The Community Development Officer recommends the following changes: 1. The issuance of a separate credit card to be used exclusively for CDBG expenditures. The reconciliation process is very tedious and involves sifting through unrelated expenses, and some expenses which are allocated to CDBG which have not been initiated by the Community Development Division and were deemed ineligible by the Community Development Officer. This creates some challenges finding another account to charge to, often a month or more after the expense occurred. The CDBG program does a monthly drawdown for administrative costs, which requires the CDO to make adjustments for expenses that are discovered during the reconciliation process. 2. Eliminating the practice of providing CDBG account numbers to individual departments to directly charge expenses. This leaves the program particularly vulnerable, as when a department charged nearly $435,000 to the CDBG account, requiring reversal of charges that were not eligible. The CDO believes that this change should be initiated by the Finance department with cooperation by the CED. 3. Establishing a review process for personnel expense outside of Salary and Fringe Benefit. Many charges in SunGard related to 701 charges are not viewable as they are deemed privileged expenses. However, some charges for personnel expenses have required review and reversal, and in one case a charge for “travel” was discovered for a program that does not involve this activity. The Finance Department might consider a change to include review if necessary.

View Audit 366845

Finding 1153681 (2024-003)

Material Weakness 2024

Ridgecrest at Richfield

VA

HUD Housing Programs Allowable Costs / Cost Principles

Action plan for two missing leases For FY25, only 2 months exist. During this time, leases were signed and placed in physical files in the business office on the property. The property closed on 12/1/2024 so the new owners do have the signed leases. proposed completion date: Immediately.

View Audit 366834

Finding 1153673 (2024-002)

Material Weakness 2024

West River Electric Association, Inc.

SD

Allowable Costs / Cost Principles Cash Management Material Weakness § 200.303

Federal Agency Name: Department of Homeland Security Pass-Through Entity: State of South Dakota Office of Emergency Management Assistance Listing Number: 97.039 Program Name: Hazard Mitigation Grant Program Finding Summary: Material expenditures were claimed for reimbursement with no documented form...

Federal Agency Name: Department of Homeland Security Pass-Through Entity: State of South Dakota Office of Emergency Management Assistance Listing Number: 97.039 Program Name: Hazard Mitigation Grant Program Finding Summary: Material expenditures were claimed for reimbursement with no documented formal review and approval. Corrective Action Plan: We will continue to have the approvals of material expenditures happen at the requisition level when the materials are ordered. If we must use material from our internal inventory stock, we will use a material charge out sheet that will provide the following information: work order number of project, name of work order, date, material item number (SBR#), quantity, charged by, approved by and posted by. This charge out sheet will then be posted in our IVUE system, and the paper copy will be scanned into vault for documentation. This same procedure will be used for salvage and credit material. For cash management, we will send the final summarized report to the Operations Manager for approval before it is sent to FEMA. Responsible Individuals: Mike Letcher, Operations Manager; Brendan Nelson, Operations Supt.; and Sanden Simons, Operations Supt.; Anticipated Completion Date: The anticipated date of completion is September 2025, as we have notified our employees of this change.

View Audit 366827

Finding 1153657 (2024-001)

Material Weakness 2024

Snoqualmie Valley School District No. 410

WA

Questioned Costs School Nutrition Programs Procurement, Suspension & Debarment

The District will train food service administrative staff regarding adequate internal controls involving monthly downloads of the Department of Social and Health Services DSHS direct certifications, including training at least 2 administrative staff members in order to ensure compliance in the absen...

The District will train food service administrative staff regarding adequate internal controls involving monthly downloads of the Department of Social and Health Services DSHS direct certifications, including training at least 2 administrative staff members in order to ensure compliance in the absence of the primary staff member performing the necessary internal control. Should Supply Chain Assistance funds become available in the future, the District will retrain food service administrative staff regarding the tracking of qualifying food products to reconcile to the funds received, and complete that tracking prior to the end of the qualifying fiscal year.

View Audit 366821 Questioned Costs: $1

Finding 1153549 (2024-002)

Material Weakness 2024

Eau Claire County Housing Authority

WI

Allowable Costs / Cost Principles HUD Housing Programs Significant Deficiency

Time and Effort Documentation Corrective Action Plan (CAP): Recommendation: We recommend, the entity develop a method to track actual time spent on various programs to support time allocated to federal award programs. Explanation of disagreement with audit finding: There is no disagreement with the ...

Time and Effort Documentation Corrective Action Plan (CAP): Recommendation: We recommend, the entity develop a method to track actual time spent on various programs to support time allocated to federal award programs. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action planned/taken in response to finding: The Authority will verify that actual time is tracked to comply with the requirements. Name of the contact person responsible for corrective action: Nicole Benson Planned completion date for corrective action plan: December 31, 2025

View Audit 366813

Finding 1153508 (2024-001)

Material Weakness 2024

South Shore Child Guidance Association, Inc.

NY

Allowable Costs / Cost Principles Internal Control / Segregation of Duties § 200.303 § 200.405

We have adjusted our policies and procedures to assure that every claim submission is reviewed by both the Controller and CFO prior to submission. Claim forms and appropriate documentation will be submitted to the Controller who will give initial review. Review will consider timeliness of items clai...

We have adjusted our policies and procedures to assure that every claim submission is reviewed by both the Controller and CFO prior to submission. Claim forms and appropriate documentation will be submitted to the Controller who will give initial review. Review will consider timeliness of items claimed as well as appropriateness for the particular federal grant. CFO will then provide final authorization in writing to both grant accountant and controller at which time claim for reimbursement can be submitted by grant accountant.

View Audit 366751

Finding 1153507 (2024-005)

Material Weakness 2024

City of Pawtucket

RI

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

Finding 2024-005 Material Weakness in Internal Control over Compliance, Material Noncompliance Description of Finding Allowable Costs: For governmental organizations, if an employee works 100% on a cost objective, a semi-annual time certification is required which can be signed by either the employe...

Finding 2024-005 Material Weakness in Internal Control over Compliance, Material Noncompliance Description of Finding Allowable Costs: For governmental organizations, if an employee works 100% on a cost objective, a semi-annual time certification is required which can be signed by either the employee or a knowledgeable supervisor. If the employee works in more than one cost objective, a personnel activity report must be prepared on at least a monthly basis and be signed by the employee. During our testing we noted that the Pawtucket School Department did not have adequate compliance with time and effort documentation.. Statement of Concurrence or Nonconcurrence Management concurs with the finding. Corrective Action The School Department is implementing a comprehensive corrective action plan to ensure compliance with federal time and effort documentation requirements. A formal Time and Effort policy has been adopted, training for all staff charged to federal grants is underway, and a compliance oversight function has been established to monitor adherence. These measures are designed to ensure sustainable compliance with federal requirements and protect future federal funding. Name of Contact Person Dale McGhee Projected Completion Date 7/1/2026

View Audit 366744 Questioned Costs: $1

Finding 1153500 (2024-003)

Material Weakness 2024

Okanogan County Child Development Association

WA

Allowable Costs / Cost Principles Cash Management Internal Control / Segregation of Duties § 200.303 § 200.328

Criteria: Federal and state grant agreements typically require recipients to maintain effective internal controls over financial reporting. These include accurate and timely submission of required reports; proper documentation and retention of supporting records and review and approval processes to ...

Criteria: Federal and state grant agreements typically require recipients to maintain effective internal controls over financial reporting. These include accurate and timely submission of required reports; proper documentation and retention of supporting records and review and approval processes to ensure compliance and accuracy. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: Containment: To prevent miscoding of expenses, we implemented a change in the prior fiscal year to allocate all CACFP-related expenses to a distinct program code. This ensures that CACFP costs are tracked independently and not charged to direct programs. Root Cause Reconciliation of the reimbursement from USDA can vary on the reimbursement of the cost of food. Where there is less cost than reimbursement we are reconciling the overage to staff wages of kitchen staff and supplies for the kitchen at the end of the year instead of monthly. Action Taken Reconciliation of the monthly reimbursement amount from CACFP to the food expenses will be reviewed each month by the 10th (for the following month) and reconciliation to the appropriate programs will be journal entries and included in the monthly review of revenue and expenses.

View Audit 366733

Finding 1153481 (2024-003)

Material Weakness 2024

Ecostudies Institute

WA

Questioned Costs Allowable Costs / Cost Principles Cash Management § 200.414

Conservation and Rehabilitation of Natural Resources on Military Installations – Assistance Listing No. 12.005 Recommendation: CLA recommends additional internal scrutiny and controls surrounding applicable compliance requirements when there is a change in policies and procedures, such as the change...

Conservation and Rehabilitation of Natural Resources on Military Installations – Assistance Listing No. 12.005 Recommendation: CLA recommends additional internal scrutiny and controls surrounding applicable compliance requirements when there is a change in policies and procedures, such as the change in effective indirect cost rate. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: Ecostudies’ policy has always been to use the NICRA rate at the start of an agreement (or when we start working on the project) through the course of the agreement/task order’s performance period, even when a NICRA rate changes during the performance period. This policy was based on discussions with other non-profit organizations with federal awards. During the FY 2024 audit we raised this issue with CLA to receive clarification and guidance. Our understanding from that discussion was that CLA agreed that our policy was acceptable and appropriate. Our corrective action will be to work with each federal partner to ensure there is clear documentation of the direct and indirect costs in the agreement. Name(s) of the contact person(s) responsible for corrective action: Gary Slater Planned completion date for corrective action plan: 10/1/2025

View Audit 366729 Questioned Costs: $1

Finding 1153414 (2024-001)

Material Weakness 2024

Panthera Corporation

NY

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

Significant improvements were made in 2024, and again this year’s findings highlight the need for stronger documentation of signed contracts, approved rate changes, and allocation support. To address this, we are further expanding use of the HR Solution’s (Rippling) workflow and document management ...

Significant improvements were made in 2024, and again this year’s findings highlight the need for stronger documentation of signed contracts, approved rate changes, and allocation support. To address this, we are further expanding use of the HR Solution’s (Rippling) workflow and document management tools to automate approvals and ensure a complete audit trail. In addition, our new global hub structure, with dedicated HR support functions, will provide greater oversight and consistency across entities. These measures will enhance compliance and reduce the risk of recurrence going forward.

View Audit 366660 Questioned Costs: $1

Finding 1153406 (2024-002)

Material Weakness 2024

City of Butler

IN

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

FINDING 2024-002 Finding Subject: COVID-19 – Coronavirus State and Local Fiscal Recovery Funds – Reporting Contact Person Responsible for Corrective Action: Angela Eck Contact Phone Number and Email Address: 260-868-5200, clerktreasurer@cityofbutler.in.gov Views of Responsible Officials: “We concur ...

FINDING 2024-002 Finding Subject: COVID-19 – Coronavirus State and Local Fiscal Recovery Funds – Reporting Contact Person Responsible for Corrective Action: Angela Eck Contact Phone Number and Email Address: 260-868-5200, clerktreasurer@cityofbutler.in.gov Views of Responsible Officials: “We concur with the finding” Mike Hartman, Mayor Angela M. Eck, Clerk-Treasurer Donald Stuckey, Attorney 215 S Broadway, Butler, IN 46721 260-868-5200 Main Line 260-868-5882 Fax www.butler.in.us INDIANA STATE BOARD OF ACCOUNTS 19 The City of Butler is an Equal Opportunity Provider. Explanation and Reasons for Disagreement: Not applicable Description of Corrective Action Plan: The Clerk-Treasurer will put the existing checklist for federal reporting in the year end binder and specifically mention it on the year end checklist so that it is not forgotten. Anticipated Completion Date: It has been completed as of August 18, 2025.

View Audit 366633

Finding 1153404 (2024-001)

Material Weakness 2024

Cass County Electric Cooperative

ND

Allowable Costs / Cost Principles Cash Management Material Weakness

Finding 2024-001 Department of Homeland Security and Emergency Management Federal Financial Assistance Listing 97.036 Disaster Grant Public Assistance Allowable Costs/ Activities Allowed or Unallowed Material Weakness in Internal Control over Compliance Finding Summary: In the testing of allowable c...

Finding 2024-001 Department of Homeland Security and Emergency Management Federal Financial Assistance Listing 97.036 Disaster Grant Public Assistance Allowable Costs/ Activities Allowed or Unallowed Material Weakness in Internal Control over Compliance Finding Summary: In the testing of allowable costs and activities, there were instances noted where payroll expenditures were paid by the Cooperative at the correct wage rates, but federal reimbursement for hours worked was calculated using the incorrect wage rates. Responsible Individuals: Jodi Bullinger, Troy Knutson, and Andy Weiss Corrective Action Plan: The Cooperative will perform a thorough review and reconciliation of supporting documentation for expenditures, including payroll transactions, before amounts are claimed for reimbursement. Anticipated Completion Date: December 31, 2025

View Audit 366629

Finding 1153402 (2024-004)

Material Weakness 2024

Lead Deadwood Sanitary District

SD

Procurement, Suspension & Debarment Allowable Costs / Cost Principles

#2024-004 Written Uniform Guidance Policies Responsible Individual: Terry Wolterstorff, General Manager Corrective Action Plan: The District intends to develop written Uniform Guidance policies. Anticipated Completion Date: 2025

View Audit 366615

Finding 1153370 (2024-013)

Material Weakness 2024

County of Trinity

CA

Questioned Costs Allowable Costs / Cost Principles § 200.403 § 200.405 § 200.412 § 200.415

U.S. Department of Housing and Urban Development – CFDA 14.228 Condition: The County charged payroll costs using an internal allocation method that included salaries, benefits, and supplies, rather than actual expenditures. This method was not supported by an approved cost allocation plan. Additiona...

U.S. Department of Housing and Urban Development – CFDA 14.228 Condition: The County charged payroll costs using an internal allocation method that included salaries, benefits, and supplies, rather than actual expenditures. This method was not supported by an approved cost allocation plan. Additionally, the hours charged were based on total grant administration time, not specific to the CDBG program. Recommendation: The County should ensure that all costs charged to federal programs are based on actual expenditures or an approved cost allocation plan. Documentation should be maintained to support all reported costs, and internal controls should be strengthened to prevent reliance on unsupported methodologies. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action planned in response to finding: The County will not be applying for any CDBG grants in the future unless there is adequate administrative cost allocation in the grant. The County will continue to make every effort to adequately close out CDBG grants and provide reports to the granting organization as staff and priorities allow. Name(s) of the contact person(s) responsible for corrective action: Under direction of the County Administrative Officer, the Senior Financial Analyst Suzie Hawkins Planned completion date for corrective action plan: Completed and on-going

View Audit 366553 Questioned Costs: $1

Finding 1153335 (2024-009)

Material Weakness 2024

County of Trinity

CA

Questioned Costs Allowable Costs / Cost Principles Period of Performance § 200.309 § 200.403

Federal program title - Local Assistance and Tribal Consistency Fund program (LATCF) CFDA 21.032 Recommendation: We recommend the County refine its understanding and interpretation of the standards and ensure that the County policies and procedures are consistent with that understanding and interpre...

Federal program title - Local Assistance and Tribal Consistency Fund program (LATCF) CFDA 21.032 Recommendation: We recommend the County refine its understanding and interpretation of the standards and ensure that the County policies and procedures are consistent with that understanding and interpretation. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: The LATCF funds were reported on the SEFA under CFDA 21.032 by the CAO’s department because the funds were transferred from the CAO’s fund to the DOT fund, with the understanding it would be expended. However, DOT did not spend the funds within the same fiscal year in which they received the transfer due to a misunderstanding that the funds could not be used for prior year expense. As a result, the funds were recorded as unearned revenue in fiscal year 2023/24, and the related expenditures will be reported in the following fiscal year. Name(s) of the contact person(s) responsible for corrective action: Lisa McNeely Department of Transportation Business Manager & Christine Gaffney Auditor-Controller. Planned completion date for correcting action plan: Completed

View Audit 366553 Questioned Costs: $1

Finding 1153326 (2024-007)

Material Weakness 2024

County of Trinity

CA

Allowable Costs / Cost Principles

Federal program title - Temporary Assistance for Needy Families (TANF) Program - CFDA 93.558 Recommendation: We recommend the County implement controls to ensure that all timesheets are properly approved by supervisor prior to submittal. Explanation of disagreement with audit finding: There is no di...

Federal program title - Temporary Assistance for Needy Families (TANF) Program - CFDA 93.558 Recommendation: We recommend the County implement controls to ensure that all timesheets are properly approved by supervisor prior to submittal. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: Since FY 2015/2016, the Health and Human Services Agency has utilized the Cost Accounting Management System (CAMS), which includes an electronic time study and timecard tracking module. All HHSA staff are required to complete and submit their timecards through this system for supervisor approval prior to payroll submission. While the electronic system is the primary method of tracking and approval, paper timecards are also maintained as a secondary processing method within our agency. Our Timecard Policy and Procedures are reviewed with all new staff during onboarding and with all employees on an annual basis. This procedure outlines, in detail, the roles and responsibilities of both employees and supervisors in the submission and approval process—covering both the electronic and paper formats. Name(s) of the contact person(s) responsible for corrective action: Under direction of Elizabeth Hamilton Health and Human Services Director, the Staff Services Manager Jami Teal. Planned completion date for correcting action plan: Completed

View Audit 366553

Finding 1153301 (2024-002)

Material Weakness 2024

Benet Place

MN

Questioned Costs Allowable Costs / Cost Principles HUD Housing Programs

Material Weakness: Unauthorized Loan Recommendation: Management should implement a monthly review process to ensure that management fees are billed in accordance with the terms of the management agreement. Additionally, payroll allocations should be reviewed monthly to confirm that only the appropri...

Material Weakness: Unauthorized Loan Recommendation: Management should implement a monthly review process to ensure that management fees are billed in accordance with the terms of the management agreement. Additionally, payroll allocations should be reviewed monthly to confirm that only the appropriate share of expenses is charged to the Project. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: Management continues to review and establish month end and year end procedures to properly record management fees accordance with HUD approved rate. The payroll allocation issue arose due to a salary allocation being missed during the property management transition. Management continues to review and establish procedures related to payroll allocations to ensure correct expenses are allocated to the Project.

View Audit 366519 Questioned Costs: $1

Corrective Action Plans

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