Corrective Action Plans

Finding 569142 (2024-002)

Material Weakness 2024

City of Wilmer

TX

Reporting Allowable Costs / Cost Principles Eligibility

Responsible Official’s Response: The City acknowledges the deficiency and has taken measures to prevent this from occurring again. The City has engaged the services of an Interim Finance Director who is experienced and skilled in governmental accounting. The Interim Finance Director will remain with...

Responsible Official’s Response: The City acknowledges the deficiency and has taken measures to prevent this from occurring again. The City has engaged the services of an Interim Finance Director who is experienced and skilled in governmental accounting. The Interim Finance Director will remain with the City through the FY2025 audit and will be responsible for the audit and any single audits for this fiscal year. In addition, the City will retain the Interim Finance Director to train current and future staff to ensure the City is in compliance with any and all current and future federal, state and local grants.

View Audit 360726

Finding 569141 (2024-001)

Material Weakness 2024

City of Wilmer

TX

Reporting Allowable Costs / Cost Principles Eligibility

Responsible Official’s Response: The City acknowledges the deficiency and has taken measures to prevent this from occurring again. The City has engaged the services of an Interim Finance Director who is experienced and skilled in governmental accounting. The Interim Finance Director will remain with...

Responsible Official’s Response: The City acknowledges the deficiency and has taken measures to prevent this from occurring again. The City has engaged the services of an Interim Finance Director who is experienced and skilled in governmental accounting. The Interim Finance Director will remain with the City through the FY2025 audit and will be responsible for the audit and any single audits for this fiscal year. In addition, the City will retain the Interim Finance Director to train current and future staff to ensure the City is in compliance with any and all current and future federal, state and local grants.

View Audit 360726

Finding 569050 (2024-003)

Significant Deficiency 2024

Rape Crisis Center of Collin County

TX

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

Finding Number: 2024-003: Allowable Costs – 3 of the 25 payroll transactions tested, the time and effort charged to the grant did not agree to the employee’s timesheet. The amount of time charged to the grant was greater than what was approved to be charged to the grant per the employee’s timesheet ...

Finding Number: 2024-003: Allowable Costs – 3 of the 25 payroll transactions tested, the time and effort charged to the grant did not agree to the employee’s timesheet. The amount of time charged to the grant was greater than what was approved to be charged to the grant per the employee’s timesheet hours and grant budget allocations, and additional fringe benefits were charged that were not consistent with the other charges to the grant. Planned Corrective Action: The Turning Point has enhanced training on completing Grant Activity Reports through individualized one-on-one training during NEO and posted how to videos for continued education. The Grant Activity Reports will be audited monthly by comparing the hours to what was billed to grants and the Allocation Spreadsheet. Completion Date: October 1, 2024 Responsible Contact Person: Tana Rice, Director of Finance

View Audit 360710

Finding 569049 (2024-002)

Material Weakness 2024

Rape Crisis Center of Collin County

TX

Allowable Costs / Cost Principles Material Weakness

Finding Number: 2024-002: Allowable Costs – 19 out of 38 samples were not 100% charged to the grant and/or were not supported by a cost allocation plan for how the percentages charged to the grant were determined. This issue was previously identified and remained unresolved at the time of this audit...

Finding Number: 2024-002: Allowable Costs – 19 out of 38 samples were not 100% charged to the grant and/or were not supported by a cost allocation plan for how the percentages charged to the grant were determined. This issue was previously identified and remained unresolved at the time of this audit because the finding and subsequent corrective action was implemented after the end of this fiscal year, following the timing of the last single audit. Planned Corrective Action: The Turning Point has updated the existing cost allocation plan and the appropriate staff have been trained on the updated plan. Monthly reviews with the Executive Director have been implemented to review monthly reconciliation statements and grant invoice statements. Cost allocation calculations are now kept on file to document how the allocation was determined. We have also established and maintained a more robust allocation process to include updated Allocation Tables and Grant Ledgers to eliminate future errors. Completion Date: October 1, 2024 Responsible Contact Person: Tana Rice, Director of Finance

View Audit 360710

Finding 569048 (2024-001)

Significant Deficiency 2024

Rape Crisis Center of Collin County

TX

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

Finding Number: 2024-001: Allowable Costs – 2 out of the 38 samples tested included charges that were either unsupported or refunded back to the Organization and not corrected to return those funds to the grantor. Planned Corrective Action: The Turning Point has updated policies that include a proce...

Finding Number: 2024-001: Allowable Costs – 2 out of the 38 samples tested included charges that were either unsupported or refunded back to the Organization and not corrected to return those funds to the grantor. Planned Corrective Action: The Turning Point has updated policies that include a process for managing refunds and crediting them back to grants. We also updated our Expense Reimbursement and Credit Card policies in 2024 to simplify our payment process which includes both the Finance Director and Executive Director checking all expenses have the proper documentation prior to paying the statements/invoices and submitting to payors (funders) for reimbursement. Completion Date: June 1, 2025 Responsible Contact Person: Tana Rice, Director of Finance

View Audit 360710

Finding 569042 (2024-003)

Material Weakness 2024

Housing and Community Redevelopment Authority of Marlboro County

SC

Questioned Costs Allowable Costs / Cost Principles Procurement, Suspension & Debarment § 200.302 § 200.403 § 200.516

Title: Capital Fund Program Grant Draws Program Name: Public Housing Capital Fund ALN:14.872 Description: During our audit procedures over revenue recognition for the Capital Fund Program (CFP), we identiﬁed drawdowns of federal funds for which the client was unable to provide adequate supportin...

Title: Capital Fund Program Grant Draws Program Name: Public Housing Capital Fund ALN:14.872 Description: During our audit procedures over revenue recognition for the Capital Fund Program (CFP), we identiﬁed drawdowns of federal funds for which the client was unable to provide adequate supporting documentation. Speciﬁcally, the expenditures associated with the draw requests lacked invoices, contracts, or other substantiating records to demonstrate that the costs were allowable, allocable, and incurred in accordance with applicable federal requirements. Planned Corrective Action: Today’s Marlboro County Housing Authority management acknowledges the auditor’s ﬁnding that documentation to support certain CFP drawdowns was incomplete or missing and concurs that this represents a failure to comply with Uniform Guidance documentation requirements under 2 CFR §200.302 and §200.403. The Authority recognizes the importance of maintaining complete and accurate supporting records—such as invoices, contracts, and payment documentation—to substantiate costs charged to federal programs and ensure allowability and allocability under the Capital Fund Program. Effective October 1st, 2024, all draw requests under the Capital Fund Program ARE supported by: • Approved contracts or purchase orders • Invoices or other source documents • Proof of payment (e.g., canceled checks, ACH conﬁrmations) • Documentation clearly linking each expense to an approved activity in the CFP Annual Statement

View Audit 360695 Questioned Costs: $1

Finding 569031 (2024-001)

Significant Deficiency 2024

Rocking Horse Children's Health Center Dba Rocking Horse Center

OH

Questioned Costs Allowable Costs / Cost Principles Reporting § 200.430

Corrective Action Plan June 26, 2025 U.S. Department of Health and Human Services Health Resources and Services Administration Rocking Horse Community Health Center and Affiliate respectively submits the following corrective action plan for the year ended December 31, 2024. Clark, Schaefer, Hac...

Corrective Action Plan June 26, 2025 U.S. Department of Health and Human Services Health Resources and Services Administration Rocking Horse Community Health Center and Affiliate respectively submits the following corrective action plan for the year ended December 31, 2024. Clark, Schaefer, Hackett & Co. 14 East Main Street, Suite 500 Springfield, OH 45502 Audit period: January 1, 2024 – December 31, 2024 The findings from the June 26, 2025 schedule of findings and questioned costs are discussed below. The findings are numbered consistently with the numbers assigned in the schedule. FINDINGS – FEDERAL AWARD PROGRAM AUDITS Department of Health and Human Services 2024-001 Health Center Cluster Program – ALN # 93.527; Grant No. H2E Significant Deficiency: See Finding 2024-001 Recommendation: Management should strengthen its internal controls over payroll charges to federal awards by ensuring consistent adherence to its time and effort certification policies as well as conduct periodic reviews of payroll documentation to verify compliance with established policies and federal requirements. Action Taken: We concur with the recommendation and will implement formal policies and procedures around obtaining time and effort certifications by June 30, 2025.

View Audit 360682 Questioned Costs: $1

Finding 569028 (2024-002)

Significant Deficiency 2024

Arenac County

MI

Procurement, Suspension & Debarment Subrecipient Monitoring Equipment & Real Property Management

Condition: The county did not update their federal policies and procedures to be in full compliance with Uniform Guidance. Corrective Action Plan: The county f ill adopt needed policies per Uniform Guidance Responsible Official: Austin Hazelti,re, County Coordinator Expected Date of Completion: Dec ...

Condition: The county did not update their federal policies and procedures to be in full compliance with Uniform Guidance. Corrective Action Plan: The county f ill adopt needed policies per Uniform Guidance Responsible Official: Austin Hazelti,re, County Coordinator Expected Date of Completion: Dec mber 31, 2025

View Audit 360675

Finding 569016 (2024-001)

None 2024

Metropolitan Transit Authority of Harris County, Texas

TX

Questioned Costs Allowable Costs / Cost Principles Cash Management § 200.303 § 200.516

The METRO Vanpool Department, in collaboration with the Grant Programs Administration Division, has initiated actions to strengthen internal controls and improve compliance with federal cost principles. These actions include: • Updating existing policies and procedures related to grant-funded expens...

The METRO Vanpool Department, in collaboration with the Grant Programs Administration Division, has initiated actions to strengthen internal controls and improve compliance with federal cost principles. These actions include: • Updating existing policies and procedures related to grant-funded expense transactions; • Developing guidance to ensure transactions are appropriately reviewed for allowability, allocability, and reasonableness; • Enhancing training for relevant personnel to reinforce understanding and application of award-specific terms and conditions; • Ensuring compliance with 2 CFR § 200.403 and § 200.303. These process improvements and control enhancements will be finalized and implemented no later than December 31, 2025, under the direction of the Director, Commuter Services. METRO believes these steps will ensure compliance and mitigate recurrence of similar findings in future audit periods.

View Audit 360643 Questioned Costs: $1

Finding 568852 (2024-002)

Material Weakness 2024

King's Daughters Medical Center

MS

Questioned Costs Allowable Costs / Cost Principles Cash Management

Corrective Action Plan Details Finding Number: 2024-002 Program: Disaster Grants - Public Assistance (Presidentially Declared Disasters) Assistance Listing Number 97.036 Federal Emergency Management Agency Passed through Mississippi Emergency Management Agency Responsible Official: Adam Moor...

Corrective Action Plan Details Finding Number: 2024-002 Program: Disaster Grants - Public Assistance (Presidentially Declared Disasters) Assistance Listing Number 97.036 Federal Emergency Management Agency Passed through Mississippi Emergency Management Agency Responsible Official: Adam Moore, CFO Finding Detail: Expenses reimbursed from other sources and unsupported expenses were not identified. Appropriate calculations of cost formulas were not utilized for medication reimbursement amounts claimed. Corrective Action Planned: Management concurs with the finding and will implement additional internal controls over the identification of eligible expenditures for the Disaster Grants program. Expenditures identified as potential grant program expenditures will be reviewed by the controller, and final approval of each expense by the chief financial officer to ensure they are eligible expenses and have not been reimbursed by any other sources. We anticipate these additional controls to be in place by September 30. 2025. The Chief Development Officer will oversee the corrective action. Anticipated Completion Date: September 2025

View Audit 360576 Questioned Costs: $1

Finding 568847 (2024-006)

Significant Deficiency 2024

County of Berrien

MI

Allowable Costs / Cost Principles

Finding: 2024-006 - Lack of Independent Review and Approval of Reporting Auditor Description of Condition and Effect: During our audit procedures over the County's reporting process for CSLFRF grants received through pass-through entities, we noted that none of the financial reports selected for te...

Finding: 2024-006 - Lack of Independent Review and Approval of Reporting Auditor Description of Condition and Effect: During our audit procedures over the County's reporting process for CSLFRF grants received through pass-through entities, we noted that none of the financial reports selected for testing included documentation that the reports were subjected to an independent review and approval prior to submission in order to detect and correct potential errors or omissions. As a result of this condition, the County was exposed to an increased risk that the reports filed could contain errors and not be detected and corrected on a timely basis. Auditor Recommendation: We recommend that the County establish procedures to ensure that all reports are subject to review and approval by an independent employee prior to submission, and that the review and approval is adequately documented. Corrective Action: County grant policies and procedures outline requirements of review and approval of grant reporting. Management recognizes the importance of establishing controls as noted, however policies and procedures stop short of requiring the signature and dating of approvals by independent reviewers. Policies and procedures will be modified to include verbiage requiring documentation of review and approval, along with reconciliations to the general ledger prior to submission. Contact Person: Brian Dissette, County Administrator/Controller Estimated Completion Date: December 31, 2025

View Audit 360575

Finding 568846 (2024-007)

Significant Deficiency 2024

County of Berrien

MI

Procurement, Suspension & Debarment Allowable Costs / Cost Principles

Finding: 2024-007 – Suspension and Debarment Auditor Description of Condition and Effect: For three of the four vendors selected for testing, the County was unable to provide evidence that the vendors were not suspended, debarred, or otherwise excluded at the time they were engaged to provide goods...

Finding: 2024-007 – Suspension and Debarment Auditor Description of Condition and Effect: For three of the four vendors selected for testing, the County was unable to provide evidence that the vendors were not suspended, debarred, or otherwise excluded at the time they were engaged to provide goods or services. As a result of this condition, the County was exposed to an increased risk that disbursements of federal awards could be made to vendors or subrecipients suspended or debarred by the federal government. Auditor Recommendation: We recommend that the County review its written policies and procedures over federal awards with employees responsible for grant compliance to ensure that they are being followed consistently. Corrective Action: Vendors are reviewed based on specific criteria upon addition to the accounts payable system for the County. This review process includes review for suspension, debarment, and excluded parties. The County will review grant compliance requirements with employees responsible for federal awards and request retention of documents verifying compliance. Contact Person: Brian Dissette, County Administrator/Controller Estimated Completion Date: December 31, 2025

View Audit 360575

Finding 568845 (2024-005)

Significant Deficiency 2024

County of Berrien

MI

Allowable Costs / Cost Principles Internal Control / Segregation of Duties

Finding: 2024-005 – Reporting Auditor Description of Condition and Effect: The County has not performed all of the required Coronavirus State and Local Fiscal Recovery Funds expenditure reporting. Specifically, the Project and Expenditure report for the second quarter of 2024 was not filed. However...

Finding: 2024-005 – Reporting Auditor Description of Condition and Effect: The County has not performed all of the required Coronavirus State and Local Fiscal Recovery Funds expenditure reporting. Specifically, the Project and Expenditure report for the second quarter of 2024 was not filed. However, these reports were filed for the first, third and fourth quarters of 2024. As a result of this condition, the County did not comply completely with the reporting requirements of the Coronavirus State and Local Fiscal Recovery Funds grant. Auditor Recommendation: We recommend that the County review the reporting requirements for each grant and complete all reporting as required under the terms of the grant agreement. Corrective Action: Management acknowledges the oversight regarding the 2nd quarter reporting and agrees with the condition as noted. The County will provide a reminder to all grant administrators of the policy. An additional confirmation step is under consideration for verification of completion, at the discretion of County Administration, which would require notification to Financial Services personnel that filing activities have occurred. This oversight process change would require additional resources to complete. Contact Person: Brian Dissette, County Administrator/Controller Estimated Completion Date: December 31, 2025

View Audit 360575

Finding 568841 (2024-003)

Material Weakness 2024

Community Health & Social Services Center, Inc.

MI

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

CHASS management concurs with the audit findings and will put the following corrective action plan in place to mitigate this finding in the future: During the fiscal year, the organization submitted requests for reimbursement of federal grant funds before incurring allowable expenses under the terms...

CHASS management concurs with the audit findings and will put the following corrective action plan in place to mitigate this finding in the future: During the fiscal year, the organization submitted requests for reimbursement of federal grant funds before incurring allowable expenses under the terms of the grant agreement. Moving forward, the new CFO will implement and enforce policies and procedures to ensure that all federal fund requests are supported by documented and allowable expenditures. Staff responsible for grant management will receive training to ensure the organization maintains compliance with all federal funding. All reimbursement requests should be reviewed and approved by the program manager/COO and the new CFO.

View Audit 360573

Finding 568833 (2024-001)

None 2024

Primary Care Medical Services of Poinciana, Inc.

FL

Subrecipient Monitoring Special Tests & Provisions Allowable Costs / Cost Principles § 200.303

MANAGEMENT’S CORRECTIVE ACTION PLAN Finding Number: 2024-001 Planned Corrective Action: We concur with the finding. We will continue with retaining documentation of sliding scale determination electronically. The CFO will continue to monitor whether the record retention policy is being followed. Ant...

MANAGEMENT’S CORRECTIVE ACTION PLAN Finding Number: 2024-001 Planned Corrective Action: We concur with the finding. We will continue with retaining documentation of sliding scale determination electronically. The CFO will continue to monitor whether the record retention policy is being followed. Anticipated Completion Date: On-going Responsible Contact Person: Cynthia Diaz, Chief Financial Officer

View Audit 360568

Finding 568832 (2024-004)

Material Weakness 2024

Rolette Community Care Center

ND

Allowable Costs / Cost Principles Material Weakness § 200.303

Department of Health and Human Services Federal Financial Assistance Listing #93.498 COVID-19 Provider Relief Fund and American Rescue Plan (ARP) Rural Distribution (PRF) Applicable Federal Award Number and Year - Period 6 TIN #205330283 Activities Allowed or Unallowed and Allowable Costs/Cost Pri...

Department of Health and Human Services Federal Financial Assistance Listing #93.498 COVID-19 Provider Relief Fund and American Rescue Plan (ARP) Rural Distribution (PRF) Applicable Federal Award Number and Year - Period 6 TIN #205330283 Activities Allowed or Unallowed and Allowable Costs/Cost Principles Material Weakness in Internal Control Over Compliance Finding Summary: There was no formal review or approval of the expenditure spreadsheet used to calculate the expenditures claimed for the federal program outside of the preparer. In addition, we noted the individual transactions were also not reviewed or approved by someone outside of the business office manager. Responsible Individuals: Kathy Morrow, Business Office Manager, Kelly VandeVorste, Interim Administrator Corrective Action Plan: Management will ensure that the information contained in supporting spreadsheets and individual transactions for federal programs is reviewed and approved by someone other than the preparer or the person initiating the transactions. Anticipated Completion Date: December 31, 2025

View Audit 360565

Finding 568817 (2024-002)

Material Weakness 2024

American Farmland Trust

DC

Subrecipient Monitoring Allowable Costs / Cost Principles Reporting

AFT remains committed to maintaining an effective system of internal control over financial reporting and compliance. To that end, AFT has taken the following corrective actions to ensure appropriate and timely compliance with FFATA filing requirements. 1. F&A Staff reviewed FFATA Training Resources...

AFT remains committed to maintaining an effective system of internal control over financial reporting and compliance. To that end, AFT has taken the following corrective actions to ensure appropriate and timely compliance with FFATA filing requirements. 1. F&A Staff reviewed FFATA Training Resources and SAM.gov resources o Ongoing Staff Training of F&A staff and staff identified in item 4. 2. Updated AFT’s Subawards Manual. The purpose of the Subawards Manual document is to assist in the preparation, administration, and management of AFT issued subawards. The Subaward Manual identifies the roles and responsibilities of AFT staff throughout the subaward lifecycle. 3. Updated Subaward Template FFATA Reporting Requirements and Data Collection 4. To ensure timely compliance with FFATA reporting requirements o Designated Contract Administrator with responsibility to file FFATA reports in connection with the execution and delivery of any subaward which occurs through our contracts management system o Will designate grant management staff to confirm filing 5. F&A Remediation o F&A is pulling the Schedule of Expenditures of Federal Awards (SEFA) data for FY22, FY23, and FY24 to determine which prime grants may have had subawards o Identify subaward agreements that require FFATA filing If AFT does not have the required information to make FFATA, AFT program, project, and/or finance staff will be tasked with obtaining the information o Make the required FFATA reports on SAM.gov 6. AFT will continue to monitor compliance with the updated procedures and FFATA requirements on a quarterly basis. o Using shared resources, finance will work with the Administrative Coordinator to verify that tracked information for issued subawards resulted in timely filing.

View Audit 360549

Finding 568514 (2024-003)

Significant Deficiency 2024

Bmc Health System, Inc.

MA

Allowable Costs / Cost Principles Internal Control / Segregation of Duties HUD Housing Programs § 200.303

Audit Report Reference: 2024-003 Program name: Research and Development Completion Date: September 30, 2025 Finding 2024-003 is a repeat finding (2023-001) from fiscal year end September 30, 2023. The Health System implemented change controls and audit of employee permissions per the corrective act...

Audit Report Reference: 2024-003 Program name: Research and Development Completion Date: September 30, 2025 Finding 2024-003 is a repeat finding (2023-001) from fiscal year end September 30, 2023. The Health System implemented change controls and audit of employee permissions per the corrective action plan for 2023-001.The corrective actions for repeat finding 2024-003 addresses documentation of performed controls and training for employees involved in the control activities. Workday Change Review: The HRIS team will continue with a change review audit as they have done in the previous year with a few enhancements to increase auditability. The Sr. HRIS Manager will send official communication to the HRIS team to initiate the end-of-year change review. This email will provide a clear timeline for the audit period with a hard deadline. Once complete, the HR Compliance Manager and/or the Sr. HRIS Manager will issue a written communication to document the completion of the review summary of findings (if any), and corrective actions taken (if applicable). This will remedy the issue of missing approval documentation. The team will also be reeducated around the need to document written approval and testing for changes throughout the year. Workday Security Review: The HRIS team will continue to conduct an audit of security roles and users within Workday to ensure that permissions are updated appropriately. The HRIS Analyst will generate reports for the Sr. HRIS Manager's review, identifying any required changes. The analyst will then make these updates in Workday, followed by a new report for verification. Upon successful verification, the Sr. HRIS Manager will send a formal written communication of the approved changes. Workday Terminations: To address the access provisioning deficiency as it relates to terminating employees, the management team will be re-trained in the importance of adhering to timely terminations of employees in Workday. Person Responsible: Ashley Cesarano - HR Compliance and Workplace Accommodations Manager; Karen Alvarado – Senior Manager HRIS E-mail address: Ashley.Cesarano@bmc.org; Karen.Alvarado@bmc.org

View Audit 360505

Finding 568216 (2024-001)

Significant Deficiency 2024

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 suppported by federal funds and undocumented costs. Contact Person: Dr. Brock Nolin, Superintendent ...

Expenditures submitted for the Alabama Medicaid Administrative Claiming Program included expenditures suppported by federal funds and undocumented costs. Contact Person: 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 the submission of the July-September 2025 claim.

View Audit 360487 Questioned Costs: $1

Finding 568028 (2024-004)

Significant Deficiency 2024

Catholic Medical Mission Board, Inc.

NY

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

Management acknowledges the importance of maintaining accessible and complete documentation to support all transactions charged to federal grants. The inability to provide the requested approvals for certain transactions was due to the challenging security conditions in some country offices during t...

Management acknowledges the importance of maintaining accessible and complete documentation to support all transactions charged to federal grants. The inability to provide the requested approvals for certain transactions was due to the challenging security conditions in some country offices during the audit period. To strengthen documentation access and retention, the Organization has transitioned to NetSuite, where backup documentation for transactions is now stored centrally on the cloud and can be easily accessed by headquarters staff. This change enhances our ability to ensure timely review, approval, and audit readiness, regardless of field conditions. We remain committed to continuous improvement of our internal controls and documentation practices. Responsible Person: Country Finance Directors

View Audit 360404

Finding 567947 (2024-005)

Material Weakness 2024

Low Rent Housing Agency of Fort Madison

IA

Questioned Costs Allowable Costs / Cost Principles Procurement, Suspension & Debarment § 200.403

As already indicated, income from tenant payments were not being properly applied to the correct revenue streams, all monies received were being coded to dwelling rents and not extra utility and cable charges as applicable. See response to 2024-001. Also, we have raised the fee charged to the tena...

As already indicated, income from tenant payments were not being properly applied to the correct revenue streams, all monies received were being coded to dwelling rents and not extra utility and cable charges as applicable. See response to 2024-001. Also, we have raised the fee charged to the tenants for cable to ensure that the expense is being adequately covered.

View Audit 360281 Questioned Costs: $1

Finding 567892 (2024-004)

Significant Deficiency 2024

Hips

DC

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

Views of Responsible Officials: This deficiency was noted internally even before the auditors flagged it in April 2024. Effective April 2024, the allocation of salaries and wages to different grants was transferred back to the Finance Manager who has more information regarding the grants timing, emp...

Views of Responsible Officials: This deficiency was noted internally even before the auditors flagged it in April 2024. Effective April 2024, the allocation of salaries and wages to different grants was transferred back to the Finance Manager who has more information regarding the grants timing, employees involved, % of time spent et al. In addition, the salaries and wages allocation is now a prerequisite for the invoicing process every month. HIPS have already seen significant improvements in both accuracy in seeking salaries and wages reimbursement as well as in wages reconciliations against paychex reports. COLA adjustments will be recorded more accurately and approval documented. As of 2024, HIPS has also updated our HR policy to provide written documentation by the Operations Manager of COLA increases to each staff member when they are implemented.

View Audit 360239

Finding 567881 (2024-056)

Significant Deficiency 2024

State of Michigan

MI

Subrecipient Monitoring Allowable Costs / Cost Principles Special Tests & Provisions § 200.303

Finding 2024-056 Disaster Grants - Public Assistance (Presidentially Declared Disasters), ALN 97.036 - EM Grants Manager Security Management and Access Controls Management Views MSP agrees with the finding. MSP implemented the EM Grants Manager system in November 2023 and did not fully establish pr...

Finding 2024-056 Disaster Grants - Public Assistance (Presidentially Declared Disasters), ALN 97.036 - EM Grants Manager Security Management and Access Controls Management Views MSP agrees with the finding. MSP implemented the EM Grants Manager system in November 2023 and did not fully establish procedures for maintaining documentation of user access forms, reviewing privileged access, and disabling inactive users due to the number of current disasters and limited staff. Planned Corrective Action For part a., MSP implemented an access approval process in November 2023 to maintain documentation of access request forms within the EM Grants Manager system. For parts b. and c., MSP will create procedures to help ensure the timely completion of privileged user reviews and inactive user deactivation. MSP will perform the required user reviews and deactivate applicable accounts by September 30, 2025. Anticipated Completion Date September 30, 2025 Responsible Individual(s) Penny Burger, MSP

View Audit 360209

Finding 567846 (2024-050)

Material Weakness 2024

State of Michigan

MI

Questioned Costs Allowable Costs / Cost Principles Eligibility § 200.516

Finding 2024-050 Refugee and Entrant Assistance State/Replacement Designee Administered Programs, ALN 93.566 - Assistance to Ineligible Refugees Management Views LEO and MDHHS agree with the finding. Planned Corrective Action MDHHS, in conjunction with LEO, will provide mandatory training for all ...

Finding 2024-050 Refugee and Entrant Assistance State/Replacement Designee Administered Programs, ALN 93.566 - Assistance to Ineligible Refugees Management Views LEO and MDHHS agree with the finding. Planned Corrective Action MDHHS, in conjunction with LEO, will provide mandatory training for all specialists that determine eligibility for refugee cash assistance payments by September 30, 2025. MDHHS also will implement ongoing management and peer-to-peer spot checks of cases to ensure that documentation is maintained to support the client’s eligibility beginning October 2025. In addition, MDHHS will determine if technical changes are needed to help ensure the proper documentation is in the electronic case file by December 31, 2025. If potential system modifications are needed, the Bridges technical team will follow the Departmental Work Intake Process for prioritization and determine an anticipated completion date for implementation. Anticipated Completion Date MDHHS has not yet determined an anticipated completion date because the date is dependent on the determination of whether system modifications are necessary. Responsible Individual(s) Benjamin Cabanaw, LEO Nicole Adams, LEO Bethany Cabanaw, MDHHS Kent Schutz, MDHHS Mariah Schaefer, MDHHS

View Audit 360209 Questioned Costs: $1

Finding 567845 (2024-049)

Significant Deficiency 2024

State of Michigan

MI

Subrecipient Monitoring Allowable Costs / Cost Principles Period of Performance

Finding 2024-049 Refugee and Entrant Assistance State/Replacement Designee Administered Programs, ALN 93.566 - Salesforce Security Management and Access Controls Management Views LEO agrees with the finding. Planned Corrective Action The LEO Office of Global Michigan (OGM) will improve established...

Finding 2024-049 Refugee and Entrant Assistance State/Replacement Designee Administered Programs, ALN 93.566 - Salesforce Security Management and Access Controls Management Views LEO agrees with the finding. Planned Corrective Action The LEO Office of Global Michigan (OGM) will improve established procedures and tracking logs to help ensure compliance with SOM Technical Standard 1340.00.020.01 (Access Control Standard). Specifically, LEO OGM will review user access semiannually for privileged accounts and annually for all other accounts. Also, LEO-IC is in the process of establishing a compliance team that will perform validation of the ongoing reviews. Anticipated Completion Date September 30, 2025 Responsible Individual(s) Ben Cabinaw, LEO Allen Williams, LEO

View Audit 360209

Corrective Action Plans

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