Corrective Action Plans

Finding 1224339 (2024-009)

Material Weakness 2024

City of Flint

MI

Allowable Costs / Cost Principles

2024-009– Report Filing - 2024 CAPER Finding Type. Immaterial Noncompliance/Significant Deficiency in Internal Control over Compliance (Reporting). Program. Community Block Grants/Entitlement Grants; U.S. Department of Housing and Urban Development; Assistance Listing Number 14.218; All awards. Audi...

2024-009– Report Filing - 2024 CAPER Finding Type. Immaterial Noncompliance/Significant Deficiency in Internal Control over Compliance (Reporting). Program. Community Block Grants/Entitlement Grants; U.S. Department of Housing and Urban Development; Assistance Listing Number 14.218; All awards. Auditor Description of Condition and Effect: As of the completion of audit fieldwork, the 2024 CAPER has not been filed. The City is exposed to an increased risk that future noncompliance could occur and not be prevented or detected by the City's internal controls. Auditor Recommendation: We recommend that the City implement necessary internal controls to ensure that all required reports are submitted in a timely manner. Corrective Action: The City will implement the necessary internal controls to ensure the policy for compliance is followed and documented. Responsible Person: Chief Financial Officer Anticipated Completion Date: July 31, 2026

View Audit 407647

Finding 1224331 (2024-004)

Material Weakness 2024

Juel Fairbanks Chemical Dependency Services

MN

Allowable Costs / Cost Principles Reporting

Juel Fairbanks Chemical Dependency Services has implemented a signature of approval of all timecards and invoices before the payroll and invoices are printed.

View Audit 407643

Finding 1224329 (2024-002)

Material Weakness 2024

Humphreys County School District

MS

Allowable Costs / Cost Principles Material Weakness

2024-002 a. Name of Contact Person Responsible for Corrective Action: LaKenya Thomas– Executive Director of Finance & Business Affairs b. Corrective Action Planned: We will implement policies or procedures to establish an internal control system that will ensure strong financial accountability and t...

2024-002 a. Name of Contact Person Responsible for Corrective Action: LaKenya Thomas– Executive Director of Finance & Business Affairs b. Corrective Action Planned: We will implement policies or procedures to establish an internal control system that will ensure strong financial accountability and to ensure compliance with all state and federal grant requirements. c. Anticipated Completion Date: Immediately.

View Audit 407628

Finding 1224077 (2024-009)

Material Weakness 2024

Town of Vinton, Va

VA

Special Tests & Provisions Allowable Costs / Cost Principles Internal Control / Segregation of Duties

Management acknowledges the findings. Expenditures in the noted departments exceeded budgeted appropriations due to operational needs and project-related costs that were higher than originally anticipated. Throughout the fiscal year, staff monitored spending and adjusted where possible; however, cer...

Management acknowledges the findings. Expenditures in the noted departments exceeded budgeted appropriations due to operational needs and project-related costs that were higher than originally anticipated. Throughout the fiscal year, staff monitored spending and adjusted where possible; however, certain expenditures could not be deferred.We will strengthen our budget monitoring procedures and implement earlier and more frequent reviews to ensure that necessary budget amendments are processed in a timely manner. In addition, we will continue working with all departments and external partners to improve documentation timeliness and maintain expenditures within approved appropriations going forward.

View Audit 407471

Finding 1224057 (2024-003)

Material Weakness 2024

Delaware Parents Association, Inc.

DE

Internal Control / Segregation of Duties Allowable Costs / Cost Principles

LACK OF SEGREGATION OF DUTIES AND DISBURSEMENT CONTROLS RESULTING IN MISAPPROPRIATION OF FUNDS (ALN 10.558) 2024-003 Delaware Parents Association, Inc. acknowledges this finding. The individual responsible for the misappropriation has been relieved of duties and additional internal controls, includi...

LACK OF SEGREGATION OF DUTIES AND DISBURSEMENT CONTROLS RESULTING IN MISAPPROPRIATION OF FUNDS (ALN 10.558) 2024-003 Delaware Parents Association, Inc. acknowledges this finding. The individual responsible for the misappropriation has been relieved of duties and additional internal controls, including executive director oversight of timely bank reconciliations, have been implemented. The Organization will aggressively pursue all available avenues for recovery of misappropriated funds.

View Audit 407469

Finding 1223974 (2024-003)

Material Weakness 2024

Housing Hope and Subsidiaries

WA

Subrecipient Monitoring Allowable Costs / Cost Principles Significant Deficiency § 200.303

Contact Person(s): Brianna Mariani - BriannaMariani@housinghope.org Kathryn Opina - KathrynOpina@housinghope.org Explanation and specific reasons for disagreement with the audit finding or that corrective action is not required (if applicable): N/A Corrective action planned: Beginning July 1, 2025, ...

Contact Person(s): Brianna Mariani - BriannaMariani@housinghope.org Kathryn Opina - KathrynOpina@housinghope.org Explanation and specific reasons for disagreement with the audit finding or that corrective action is not required (if applicable): N/A Corrective action planned: Beginning July 1, 2025, the Payroll Specialist began saving physically signed timesheets that document allocations to grants. Beginning August 1, 2025, allocations to grants are captured within the payroll system, ADP, along with the supervisor approval. The Payroll Specialist verifies each line on the timesheet is approved, which the system requires for the employee to receive payment. Anticipated completion date: Corrective action of signed allocation timesheets was implemented July 1, 2025. Corrective action of allocations to grants within ADP was implemented August 1, 2025.

View Audit 407369

Finding 1223903 (2024-004)

Material Weakness 2024

Municipality of Ciales

PR

Allowable Costs / Cost Principles

Management acknowledges the finding and concurs with the recommendation. The Municipality recognizes that certain expenditures totaling $80,000 were charged to the Coronavirus State and Local Fiscal Recovery Funds (CSLFRF) that were subsequently determined not to meet the program's allowable use req...

Management acknowledges the finding and concurs with the recommendation. The Municipality recognizes that certain expenditures totaling $80,000 were charged to the Coronavirus State and Local Fiscal Recovery Funds (CSLFRF) that were subsequently determined not to meet the program's allowable use requirements. Management has evaluated the questioned costs and has initiated the necessary actions to ensure that the Coronavirus State and Local Fiscal Recovery Funds are reimbursed from non-federal sources, as applicable, and that the program funds are restored for eligible activities. In addition, the Municipality has strengthened its internal control procedures over the administration of federal awards. Going forward, all expenditures charged to the CSLFRF program will be subject to an enhanced review process by the Federal Programs Director and the Finance Department to verify eligibility and compliance with the applicable federal requirements before payment or reimbursement is processed. Management will also provide additional training to personnel responsible for the administration of federal programs regarding allowable costs and applicable federal regulations. The Municipality is committed to maintaining compliance with the requirements governing the Coronavirus State and Local Fiscal Recovery Funds and will continue to improve its internal controls to prevent similar findings in the future.

View Audit 407316

Finding 1223789 (2024-006)

Material Weakness 2024

Wilkin County

MN

Allowable Costs / Cost Principles Reporting Internal Control / Segregation of Duties § 200.303 § 200.403

Finding Number: 2024-006 Finding Title: Activities Allowed or Unallowed, Allowable Costs/Cost Principles, and Reporting Program: 93.778 Grants to States for Medicaid Name of Contact Person Responsible for Corrective Action: LaRae Kuhfal, Fiscal Officer and Deb Sjostrom, Director. Corrective Action P...

Finding Number: 2024-006 Finding Title: Activities Allowed or Unallowed, Allowable Costs/Cost Principles, and Reporting Program: 93.778 Grants to States for Medicaid Name of Contact Person Responsible for Corrective Action: LaRae Kuhfal, Fiscal Officer and Deb Sjostrom, Director. Corrective Action Planned: LaRae has taken over the report starting with quarter 4 of 2025 and is keeping all records used for the LCTS report. We plan to make sure that the quarterly reports are reviewed and approved by the director. Anticipated Completion Date: Completed as of quarter 4, 2025 and continuing.

View Audit 407264

Finding 1223784 (2024-002)

Material Weakness 2024

City of Santa Maria

CA

Subrecipient Monitoring Allowable Costs / Cost Principles Reporting § 200.303

U.S. Department of Housing and Urban Development Community Development Block Grant – Assistance Listing No. 14.218 Recommendation: We recommend the City implement policies and procedures to ensure that the Federal Funding Accountability and Transparency Act (FFATA) reporting occurs for all subawards...

U.S. Department of Housing and Urban Development Community Development Block Grant – Assistance Listing No. 14.218 Recommendation: We recommend the City implement policies and procedures to ensure that the Federal Funding Accountability and Transparency Act (FFATA) reporting occurs for all subawards of $30,000 or more for all federal awards and that the reporting be performed timely. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to the finding: The Finance Department will ensure that all departments are aware of this compliance requirement and ensure reporting requirements are performed timely in relation to subawards. Name(s) of the contact person(s) responsible for corrective action: Rebecca Campbell, Finance Director Planned completion date for corrective action plan: July 2026

View Audit 407251

Finding 1223769 (2024-005)

Material Weakness 2024

CENTER OF EXCELLENCE FOR EDUCATOR PREPARATION & INNOVATION, INC.

SC

Allowable Costs / Cost Principles Cash Management § 200.302 § 200.305 § 200.414

Root Cause Analysis: The root cause of this finding was a misapplication of the approved indirect cost rate to the appropriate Modified Total Direct Cost (MTDC) base in connection with drawdown calculations. Although The EPI Center had an approved indirect cost rate and related policy in place, the ...

Root Cause Analysis: The root cause of this finding was a misapplication of the approved indirect cost rate to the appropriate Modified Total Direct Cost (MTDC) base in connection with drawdown calculations. Although The EPI Center had an approved indirect cost rate and related policy in place, the operational procedures and system configurations necessary to consistently apply the methodology were still being refined and operationalized. The EPI Center notes that a formal, written Indirect Cost Rate Policy consistent with Uniform Guidance (2 CFR Part 200) was in place at the time of award. However, during the initial year of administering a federal award as fiscal agent, the procedures outlined in the policy were not fully operationalized. This resulted in a misapplication of the approved indirect cost rate. The overdraw resulted from applying the indirect cost rate to budgeted, rather than actual, direct expenditures. Management has since recalculated allowable indirect costs based on actual expenditures and has implemented enhanced controls to ensure accurate application of the MTDC base and compliance with federal requirements going forward. Response, with details: ☒Corrective Action Plan ☐Clarification Management acknowledges the misapplication of the approved indirect cost rate and has taken immediate steps to correct the calculation and ensure full alignment with federal requirements. Specifically, The EPI Center has recalculated indirect costs based on allowable expenditures within the Modified Total Direct Cost (MTDC) base and is actively engaging with the U.S. Department of Education to determine the appropriate resolution of the overdrawn amount. Management confirms that all underlying expenditures charged to the program were allowable, allocable, and supported by appropriate documentation, and no unallowable costs were identified. Corrective Actions Management has implemented the following corrective actions to address the issue and strengthen internal controls: 1. Training and Capacity Building (Completed - April 2026) Finance staff and senior leadership have completed targeted training on the application of indirect cost requirements under Uniform Guidance to reinforce compliance expectations. 2. Recalculation and Resolution of Overdraw (Implementation Initiated) The EPI Center has recalculated allowable indirect costs by applying the restricted 8 percent indirect cost rate for Teacher and School Leader Incentive Program (TSL) grants to actual expenditures incurred during the reporting period. The program officer has been informed of the miscalculation and resulting overdraw. The EPI Center will follow all applicable agency protocols upon receiving formal guidance from the U.S. Department of Education. Management is actively coordinating with the U.S. Department of Education to resolve the calculated overdraw and will comply with all agency guidance, including repayment of any amounts determined to be unallowable. Controls are now in place to ensure that all future drawdowns are calculated based on the approved indirect cost rate applied to the MTDC base and are subject to documented review prior to submission. 3. Standardized Indirect Cost Calculation Worksheets (Completed - April 2026) A standardized indirect cost calculation worksheet will be required and reviewed prior to approval of all drawdown requests. 4. Independent Oversight (Completed – June 2025) The EPI Center has engaged a third-party controller who will review and independently validate indirect cost calculations prior to submission, providing an added layer of oversight and control. Responsible Party: Finance and Compliance Manager, Third-party Controller, CEO Timeline for Completion: May 2026

View Audit 407243

Finding 1223768 (2024-004)

Material Weakness 2024

CENTER OF EXCELLENCE FOR EDUCATOR PREPARATION & INNOVATION, INC.

SC

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

Root Cause Analysis: The condition resulted from a lapse in the execution of an established control rather than the absence of a control framework. The EPI Center had formal memoranda of understanding in place with participating districts that defined match requirements, including in-kind contributi...

Root Cause Analysis: The condition resulted from a lapse in the execution of an established control rather than the absence of a control framework. The EPI Center had formal memoranda of understanding in place with participating districts that defined match requirements, including in-kind contributions of personnel time and effort, and contemplated periodic certification of those contributions. While the MOUs indicated that districts would confirm match contributions on a quarterly basis, The EPI Center did not consistently obtain those confirmations during the audit period. Since the audit period, The EPI Center has obtained written attestations from participating districts confirming the source and amount of the personnel contributions used as match and has implemented procedures to ensure that such certifications are collected and retained based on funder requirements. Response, with details: ☒Corrective Active Plan ☒Clarification 46 Management believes the match contributions reported are valid, reasonable, and allocable to the program. Match was calculated using verifiable district salary schedules and a consistently applied methodology (e.g., 25% effort allocation tied to program outcomes, participation, and service delivery). No evidence was identified indicating that federal funds were used to meet match requirements or that match contributions were applied to other federal programs. Importantly: There is no evidence that these salaries were charged to federal funds, mitigating the risk of double counting or supplanting. All personnel included as match were employees of public-school districts, whose compensation structures are governed by transparent, state- and locally- funded salary schedules. Services provided by these personnel supported program implementation and intended outcomes (e.g., coaching, mentoring, instructional support aligned with grant objectives). This finding reflects a documentation and control execution gap rather than a deficiency in the allowability or validity of match contributions. Corrective Actions The EPI Center has implemented, or is in the process of implementing, the following corrective actions to ensure full compliance moving forward: 1. Retroactive Certification (Completed - March 2026) Developed standardized district attestation forms for match contributions. Initiated collection of retroactive certifications from all participating districts to formally validate previously reported match. 2. Match Verification Process (Completed - April 2026) Established a certification process requiring district-level verification of match contributions. Management will align match verification with financial reconciliation and reporting in accordance with funder requirements. 3. Strengthened Partner Guidance and Agreements (Completed - April 2026) Updated MOUs and partnership agreement templates to include explicit federal documentation requirements for match that align to reporting requirements. Provided technical assistance to district partners to ensure consistent understanding and compliance. While the reported questioned cost exposure (approximately $3.4M) is acknowledged, The EPI Center notes that the condition relates to documentation rather than the underlying validity of the costs. There is no indication of unallowable costs, fraud, or misuse of funds, and no evidence that federal funds were used to meet match requirements. 47 All match contributions are based on public school district salary structures, which are subject to established oversight and accountability. Accordingly, the underlying match amounts are supported by objective and verifiable data sources. This finding reflects a documentation and timing matter, rather than concerns related to allowability, allocability, or program integrity. The EPI Center requests that this distinction be considered in assessing the overall severity and classification of the finding. Responsible Party: Project Lead, Finance Specialist Timeline for Completion: Ongoing with an expected completion date for all items by April 2026

View Audit 407243

Finding 1223690 (2024-001)

Material Weakness 2024

WHITE BUFFALO, INC.

CT

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

Action Taken: The Organization has re-evaluated its internal controls related to grant budgeting with Federal agencies and cost billing expectations. The updated controls will be implemented in the next fiscal year.

View Audit 407180

Finding 1223571 (2024-004)

Material Weakness 2024

County of Imperial

CA

Reporting Internal Control / Segregation of Duties Subrecipient Monitoring § 200.303

2024-004 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:...

2024-004 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, 2025. Name of Responsible Person: Priscilla A Lopez, ICWDB Director Implementation Date: December 31, 2025

View Audit 406996

Finding 1223442 (2024-094)

Material Weakness 2024

The Virgin Islands Hsg Finance Authority - Paradise Mills Apartments

FL

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

The exceptions identified were limited in nature and did not result in questioned costs. In the instance where the project code on the employee's Notice of Personnel Action (NOPA) had not been updated, program personnel made the necessary adjustments to ensure payroll costs were charged to the appro...

The exceptions identified were limited in nature and did not result in questioned costs. In the instance where the project code on the employee's Notice of Personnel Action (NOPA) had not been updated, program personnel made the necessary adjustments to ensure payroll costs were charged to the appropriate grant. To strengthen internal controls, the Department transitioned from manual timekeeping to a biometric finger-punch time and attendance system utilizing TimeForce in the fall of 2024. This system provides enhanced tracking, reporting, and record retention capabilities and reduces the risk of discrepancies associated with manual timekeeping processes. The Department will continue to strengthen its review and documentation procedures to ensure compliance with federal requirements. The Department of Human Services (DHS) adopted the electronic Timeforce (STATS) system for payroll, replacing manual processes. Time and attendance are approved through management levels, with payroll based on Notice of Personnel Action (NOPA) cost centers. Financial Analysts now assigned to the grant reconciles the payroll. Additionally, in order to ensure that Notices of Personnel Actions are updated on a timely basis, ensuring that salaries are charged to the respective account, DHS has implemented the following process: - Provisional Payroll Codes are requested prior to the close of the Fiscal Year by the Department of Finance through the Office of Management and Budget through the established process. - Once the codes are received, the Division of Human Resources will update the most current Personnel Distribution Sheets to reflect active employees. - The sheets will be submitted to Fiscal for certification by the CFO. - NOPA’s are updated with the provisional codes.

View Audit 406809

Finding 1223429 (2024-092)

Material Weakness 2024

The Virgin Islands Hsg Finance Authority - Paradise Mills Apartments

FL

Subrecipient Monitoring Allowable Costs / Cost Principles Period of Performance § 200.303 § 200.344

Once payroll is processed by the Department of Finance (DOF), a Flex Earnings Report is generated by the Analyst on each payday. A reconciliation is then performed to ensure that all employees, along with their respective fringe benefits, are accurately captured and drawn. Following this process, DO...

Once payroll is processed by the Department of Finance (DOF), a Flex Earnings Report is generated by the Analyst on each payday. A reconciliation is then performed to ensure that all employees, along with their respective fringe benefits, are accurately captured and drawn. Following this process, DOF posts the payroll to the accounting system. However, staffing has identified that deficiencies can occur in DOF’s postings, sometimes arising in periods subsequent to the actual payday. To address this, the Department of Human Services (DHS) has incorporated an internal control requiring retrospective reconciliation of accounts against the Flex Earnings Report to verify accuracy. Additionally, DHS plans to engage with DOF to better understand the underlying factors and nuances that result in discrepancies between DOF postings and the account coding reflected in the Flex Earnings Report. The Federal Grants Financial Analyst also plays a key role in ensuring that transactions are recorded in the appropriate accounting period and that costs are properly allocated. In this particular instance, no federal funds were drawn.

View Audit 406809

Finding 1223428 (2024-091)

Material Weakness 2024

The Virgin Islands Hsg Finance Authority - Paradise Mills Apartments

FL

Allowable Costs / Cost Principles Matching / Level of Effort / Earmarking § 200.303 § 200.403

The Government concurs with the auditor’s findings and recommendations. Management will conduct a comprehensive review of existing internal controls related to non-payroll expenditures. DHS will update policies and procedures to ensure all costs are properly documented and comply with federal allowa...

The Government concurs with the auditor’s findings and recommendations. Management will conduct a comprehensive review of existing internal controls related to non-payroll expenditures. DHS will update policies and procedures to ensure all costs are properly documented and comply with federal allowable cost principles. DHS is committed to addressing the identified issues and maintaining ongoing compliance with federal regulations. DHS will conduct a thorough review of current internal controls and procedures related to non-payroll expenditures to identify gaps and areas for improvement. Policies will be updated to ensure all costs are properly documented and comply with federal allowable cost principles. Staff responsible for processing and approving expenditures will receive targeted training on documentation and compliance requirements. DHS will implement periodic internal audits to monitor adherence to updated procedures and promptly address any exceptions.

View Audit 406809

Finding 1223411 (2024-080)

Material Weakness 2024

The Virgin Islands Hsg Finance Authority - Paradise Mills Apartments

FL

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

The Government concurs with the auditor’s findings and recommendations. Management will review current internal control procedures to determine if enhancements are needed. DHS is committed to ensuring compliance with Federal regulations and will take appropriate action as necessary. DHS will review ...

The Government concurs with the auditor’s findings and recommendations. Management will review current internal control procedures to determine if enhancements are needed. DHS is committed to ensuring compliance with Federal regulations and will take appropriate action as necessary. DHS will review and update its policies and procedures to ensure all non-payroll expenditures are approved by authorized personnel, provide staff training on proper approval processes and internal control requirements, and conduct periodic checks to monitor compliance and promptly address any exceptions.

View Audit 406809

Finding 1223399 (2024-078)

Material Weakness 2024

The Virgin Islands Hsg Finance Authority - Paradise Mills Apartments

FL

Allowable Costs / Cost Principles Subrecipient Monitoring Reporting § 200.303 § 200.403 § 200.430

The Government concurs with the auditor’s findings and recommendations and finalizing a comprehensive corrective action plan to strengthen grant management and compliance through the Public Finance Management initiative including the development of a three-tier overarching Financial and Compliance p...

The Government concurs with the auditor’s findings and recommendations and finalizing a comprehensive corrective action plan to strengthen grant management and compliance through the Public Finance Management initiative including the development of a three-tier overarching Financial and Compliance policy and procedures framework. The Government’s Audit Committee is leading the development of a structured, three-tier policy and procedures framework under the Public Finance Management project. This framework includes Tier 1, which establishes the overarching Financial and Compliance Policy; Tier 2, which defines Standard Operating Procedures (SOPs) to promote cross-agency consistency; and Tier 3, which outlines detailed, step-by-step procedures that clearly define roles and responsibilities and accountability measures to ensure compliance with all federal regulations including fiscal and administrative requirements for expending and accounting for payroll expenditures. Regular training sessions will be provided to staff involved in grant management to ensure they understand and adhere to compliance requirements with monitoring and evaluation occurring by the OMB Compliance Unit supported by the Government’s Audit Committee, to assess and improve the effectiveness of controls.

View Audit 406809

Finding 1223393 (2024-074)

Material Weakness 2024

The Virgin Islands Hsg Finance Authority - Paradise Mills Apartments

FL

Allowable Costs / Cost Principles § 200.303 § 200.403

VIDE will reinforce its procedures for tracking, compiling, and storing documentation related to grant expenditures. To achieve the necessary level of control precision, VIDE has successfully finalized the Standard Operating Procedure (SOP) governing the calculation, tracking, and record retention o...

VIDE will reinforce its procedures for tracking, compiling, and storing documentation related to grant expenditures. To achieve the necessary level of control precision, VIDE has successfully finalized the Standard Operating Procedure (SOP) governing the calculation, tracking, and record retention of indirect costs. Currently, the Third-Party Fiduciary Agent (TPFA) controls and executes this specific process on behalf of the Department. To ensure the newly finalized procedures are fully operationalized, VIDE is scheduling mandatory training. VIDE will coordinate directly with the TPFA to facilitate this training for all relevant VIDE staff. This will ensure that internal personnel are fully equipped to actively verify, compile, and securely store the required check payment details and detailed project expenditure reports. Building this internal capacity will strengthen VIDE's oversight of the TPFA's processes and prevent future documentation gaps.

View Audit 406809

Finding 1223392 (2024-073)

Material Weakness 2024

The Virgin Islands Hsg Finance Authority - Paradise Mills Apartments

FL

Allowable Costs / Cost Principles Reporting Matching / Level of Effort / Earmarking § 200.303 § 200.430

VIDE will strengthen payroll and personnel action controls by requiring the Budget Team and Deputy Commissioner to review and approve all personnel actions before NOPA execution to validate pay rates. Furthermore, Payroll will establish a final review step to reconcile approved hours against both th...

VIDE will strengthen payroll and personnel action controls by requiring the Budget Team and Deputy Commissioner to review and approve all personnel actions before NOPA execution to validate pay rates. Furthermore, Payroll will establish a final review step to reconcile approved hours against both the payroll processing register and the final reimbursement invoice. Approved timesheets, Notices of Per Diem, and related payroll support will be centrally retained in SharePoint by pay period and attached to applicable invoices or general ledger journal entries. Program staff and supervisors will receive mandatory training on updated timesheet procedures and federal time and effort requirements. The Office of Fiscal and Administrative Services will also conduct monthly spot checks of SharePoint repositories and ERP logs to document compliance, identify control gaps, and ensure timely corrective action. Finalization of the formal SOPs and supporting controls is a top priority to achieve the necessary level of control precision and prevent repeat findings.

View Audit 406809

Finding 1223378 (2024-069)

Material Weakness 2024

The Virgin Islands Hsg Finance Authority - Paradise Mills Apartments

FL

Allowable Costs / Cost Principles § 200.303 § 200.403

VIDE will reinforce its procedures for tracking, compiling, and storing documentation related to grant expenditures. To achieve the necessary level of control precision, VIDE has successfully finalized the Standard Operating Procedure (SOP) governing the calculation, tracking, and record retention o...

VIDE will reinforce its procedures for tracking, compiling, and storing documentation related to grant expenditures. To achieve the necessary level of control precision, VIDE has successfully finalized the Standard Operating Procedure (SOP) governing the calculation, tracking, and record retention of indirect costs. Currently, the Third-Party Fiduciary Agent (TPFA) controls and executes this specific process on behalf of the Department. To ensure the newly finalized procedures are fully operationalized, VIDE is scheduling mandatory training. VIDE will coordinate directly with the TPFA to facilitate this training for all relevant VIDE staff. This will ensure that internal personnel are fully equipped to actively verify, compile, and securely store the required check payment details and detailed project expenditure reports. Building this internal capacity will strengthen VIDE's oversight of the TPFA's processes and prevent future documentation gaps.

View Audit 406809

Finding 1223377 (2024-068)

Material Weakness 2024

The Virgin Islands Hsg Finance Authority - Paradise Mills Apartments

FL

Allowable Costs / Cost Principles § 200.303 § 200.403 § 200.430

VIDE will strengthen payroll and personnel action controls by requiring the Budget Team and Deputy Commissioner to review and approve all personnel actions before NOPA execution to validate pay rates. Furthermore, Payroll will establish a final review step to reconcile approved hours against both th...

VIDE will strengthen payroll and personnel action controls by requiring the Budget Team and Deputy Commissioner to review and approve all personnel actions before NOPA execution to validate pay rates. Furthermore, Payroll will establish a final review step to reconcile approved hours against both the payroll processing register and the final reimbursement invoice. Approved timesheets, Notices of Per Diem, and related payroll support will be centrally retained in SharePoint by pay period and attached to applicable invoices or general ledger journal entries. Program staff and supervisors will receive mandatory training on updated timesheet procedures and federal time and effort requirements. The Office of Fiscal and Administrative Services will also conduct monthly spot checks of SharePoint repositories and ERP logs to document compliance, identify control gaps, and ensure timely corrective action. Finalization of the formal SOPs and supporting controls is a top priority to achieve the necessary level of control precision and prevent repeat findings.

View Audit 406809

Finding 1223372 (2024-063)

Material Weakness 2024

The Virgin Islands Hsg Finance Authority - Paradise Mills Apartments

FL

Allowable Costs / Cost Principles § 200.303 § 200.403

VIDE will reinforce its procedures for tracking, compiling, and storing documentation related to grant expenditures. To achieve the necessary level of control precision, VIDE has successfully finalized the Standard Operating Procedure (SOP) governing the calculation, tracking, and record retention o...

VIDE will reinforce its procedures for tracking, compiling, and storing documentation related to grant expenditures. To achieve the necessary level of control precision, VIDE has successfully finalized the Standard Operating Procedure (SOP) governing the calculation, tracking, and record retention of indirect costs. Currently, the Third-Party Fiduciary Agent (TPFA) controls and executes this specific process on behalf of the Department. To ensure the newly finalized procedures are fully operationalized, VIDE is scheduling mandatory training. VIDE will coordinate directly with the TPFA to facilitate this training for all relevant VIDE staff. This will ensure that internal personnel are fully equipped to actively verify, compile, and securely store the required check payment details and detailed project expenditure reports. Building this internal capacity will strengthen VIDE's oversight of the TPFA's processes and prevent future documentation gaps.

View Audit 406809

Finding 1223371 (2024-062)

Material Weakness 2024

The Virgin Islands Hsg Finance Authority - Paradise Mills Apartments

FL

Subrecipient Monitoring Allowable Costs / Cost Principles § 200.113 § 200.303 § 200.403 § 200.430

VIDE will strengthen payroll and personnel action controls by requiring the Budget Team and Deputy Commissioner to review and approve all personnel actions before NOPA execution to validate pay rates. Furthermore, Payroll will establish a final review step to reconcile approved hours against both th...

VIDE will strengthen payroll and personnel action controls by requiring the Budget Team and Deputy Commissioner to review and approve all personnel actions before NOPA execution to validate pay rates. Furthermore, Payroll will establish a final review step to reconcile approved hours against both the payroll processing register and the final reimbursement invoice. Approved timesheets, Notices of Per Diem, and related payroll support will be centrally retained in SharePoint by pay period and attached to applicable invoices or general ledger journal entries. Program staff and supervisors will receive mandatory training on updated timesheet procedures and federal time and effort requirements. The Office of Fiscal and Administrative Services will also conduct monthly spot checks of SharePoint repositories and ERP logs to document compliance, identify control gaps, and ensure timely corrective action. Finalization of the formal SOPs and supporting controls is a top priority to achieve the necessary level of control precision and prevent repeat findings.

View Audit 406809

Finding 1223370 (2024-061)

Material Weakness 2024

The Virgin Islands Hsg Finance Authority - Paradise Mills Apartments

FL

Allowable Costs / Cost Principles § 200.303

VIDE is strengthening its policies and procedures to ensure all non-payroll expenditures are fully supported by underlying documentation prior to charging federal programs. To address the documentation gap identified, the department is enforcing a strict back-end system control within the accounts p...

VIDE is strengthening its policies and procedures to ensure all non-payroll expenditures are fully supported by underlying documentation prior to charging federal programs. To address the documentation gap identified, the department is enforcing a strict back-end system control within the accounts payable process. Moving forward, all required supporting documentation—such as vendor invoices, receipts, and programmatic approvals—must be attached directly to the transaction entry within the ERP system. Furthermore, the Office of Fiscal and Administrative Services will implement a mandatory final review step to verify the presence and accuracy of this documentation in the system before any disbursement is authorized or charged to the Special Education Cluster.

View Audit 406809

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