Corrective Action Plans

Finding 569808 (2024-036)

Significant Deficiency 2024

State of Alaska

AK

Questioned Costs Allowable Costs / Cost Principles Subrecipient Monitoring § 200.303 § 200.327 § 200.403

Finding: 2024-036 -A review of 25 FY 24 Disaster Grants payments found that 14 payments (56 percent) lacked required supporting documentation. Specifically, six payments lacked pay policy and/or fringe benefit calculations and eight payments lacked procurement contracts that included all federal req...

Finding: 2024-036 -A review of 25 FY 24 Disaster Grants payments found that 14 payments (56 percent) lacked required supporting documentation. Specifically, six payments lacked pay policy and/or fringe benefit calculations and eight payments lacked procurement contracts that included all federal requirements. Additionally, two of the eight payments lacked a complete or signed contract on file. Questioned Costs: AL - 97.036: $96,758; AL - 97.036 COVID-19: $2,159 Assistance Listing Number: 97.036 Assistance Listing Title: Disaster Grants — Public Assistance (Presidentially Declared Disasters) Views of Responsible Officials (state whether your agency agrees or disagrees with the finding; if you disagree, briefly explain why): DMVA concurs with the finding. Corrective Action (corrective action planned): To ensure compliance with federal regulations and effective management of federal awards, the Finance Office in conjunction with the Homeland Security Director will develop and implement written procedures that provide a clear framework for managing federal awards and ensure compliance with federal regulations. DMVA will: • Clearly outline federal requirements under 2 CFR 200.327, 2 CFR 200 .403(g), and Homeland Security Acquisition Regulation Class Deviation 15-01. • Specify the documentation required to support reimbursement requests, including expectations related to discrepancies and follow-up actions. • Outline the procedures for Homeland Security for reviewing and certifying work completed by contractors, where applicable, prior to reimbursement to subrecipients. Completion Date (list anticipated completion date): October 31, 2025 Agency Contact (name of person responsible for corrective action): Bryan Fisher

View Audit 361087 Questioned Costs: $1

Finding 569785 (2024-057)

Significant Deficiency 2024

State of Alaska

AK

Questioned Costs Allowable Costs / Cost Principles § 200.430

Finding: 2024-057 - Insufficient documentation was available to support the manual transfer of time originally coded to another federal program to the TANF program. Questioned Costs: AL 93.558: $1,730 Assistance Listing Number: 93.558 Assistance Listing Title: TANF Views of Responsible Officials...

Finding: 2024-057 - Insufficient documentation was available to support the manual transfer of time originally coded to another federal program to the TANF program. Questioned Costs: AL 93.558: $1,730 Assistance Listing Number: 93.558 Assistance Listing Title: TANF Views of Responsible Officials (state whether your agency agrees or disagrees with the finding; if you disagree, briefly explain why): The department does not agree with the finding. The Division of Public Assistance (DPA) met with CLA regarding the questioned costs which were explained and documented. For the sample selected, the employee did positive time keep to LDP U6615 - LIHEAP Policy for their time spent processing heating assistance applications. This was during a time when our Policy section was understaffed, and the administrative section absorbed programmatic duties. The division followed the State of Alaska’s payroll correction process. When IRIS-HRM (payroll) interfaced to IRIS-FIN (financial), the payroll transactions errored due to insufficient program budget. The Department of Administration, Division of Finance provides an erroring payroll transaction report. The departments are instructed to update the report with correct financial coding and send to a BOT email address. The BOT enters the correction in the State’s financial system and attaches the spreadsheet to document the update in coding. Department staff do not have permissions to add notes or additional attachments to the payroll transaction. DPA accounting staff reviewed the errored transaction and identified another allowable fund source to code these expenditures to. Therefore, the payroll expenses were adjusted and charged to the TANF program. Corrective Action (corrective action planned): Division of Public Assistance will enhance the process to review payroll transactions and document supporting information for changes. Completion Date (list anticipated completion date): The department anticipates the finding will be resolved in FY2025. Agency Contact (name of person responsible for corrective action): Pam Halloran, Assistant Commissioner

View Audit 361087 Questioned Costs: $1

Finding 569784 (2024-056)

Significant Deficiency 2024

State of Alaska

AK

Questioned Costs Allowable Costs / Cost Principles Eligibility

Finding: 2024-056 - Three of 60 Temporary Assistance for Needy Families (TANF) recipient case files tested lacked adequate documentation to indicate that the participant met all eligibility criteria. The following errors were noted: • Two cases exceeded the 60-month benefit limit, which resulted in ...

Finding: 2024-056 - Three of 60 Temporary Assistance for Needy Families (TANF) recipient case files tested lacked adequate documentation to indicate that the participant met all eligibility criteria. The following errors were noted: • Two cases exceeded the 60-month benefit limit, which resulted in excess benefits. • One case lacked documentation to verify one parent’s relational status to the children. Additionally, seven of 60 cases tested had documentation to support individual’s eligibility but lacked sufficient documentation to verify that the key control over compliance occurred. Questioned Costs: AL 93.558: $ 5,720 (known questioned costs); $173,417 (likely questioned costs) Assistance Listing Number: 93.558 Assistance Listing Title: TANF Views of Responsible Officials (state whether your agency agrees or disagrees with the finding; if you disagree, briefly explain why): The department agrees with the finding. Corrective Action (corrective action planned): Division of Public Assistance staff will be coached on proper case documentation standards and procedures such as including appropriate information in case notes and uploading documentation in ILINX to support eligibility determinations. Spot checks and case reviews will be performed for case completion and accuracy. Completion Date (list anticipated completion date): The department anticipates the finding will be resolved in FY2025. Agency Contact (name of person responsible for corrective action): Pam Halloran, Assistant Commissioner

View Audit 361087 Questioned Costs: $1

Finding 569770 (2024-043)

Significant Deficiency 2024

State of Alaska

AK

Allowable Costs / Cost Principles Internal Control / Segregation of Duties § 200.303 § 200.421

Finding: 2024-043 - Testing a random sample of 60 FY 24 non-personal service expenditures charged to the Fish and Wildlife Cluster (FWC) identified two expenditures that lacked proper approval, and one that charged unallowable costs to the FWC. Questioned Costs: ALN 15.611: $206 Assistance Listing...

Finding: 2024-043 - Testing a random sample of 60 FY 24 non-personal service expenditures charged to the Fish and Wildlife Cluster (FWC) identified two expenditures that lacked proper approval, and one that charged unallowable costs to the FWC. Questioned Costs: ALN 15.611: $206 Assistance Listing Number: 15.605, 15.611 Assistance Listing Title: FWC Views of Responsible Officials (state whether your agency agrees or disagrees with the finding; if you disagree, briefly explain why): Alaska Department of Fish & Game (ADFG) agrees with this finding. ADFG agrees that the control environment was weakened with the transition of non-personal service expenditure input and certification in the accounting system from ADFG staff to Shared Services of Alaska (SSoA) staff and that inadequate training is a contributing factor. Corrective Action (corrective action planned): ADFG will enhance the training and approval process for ADFG staff to ensure all expenditures are allowable, properly authorized, and compliant with regulatory requirements before being processed by SSoA staff. ADFG will update the approving officer policy to include the following requirements: Develop an onboarding training video for new approving officers, providing them with a comprehensive introduction to their responsibilities, ensuring they are well-prepared from the start. Implement annual approving officer training to keep approving officers updated on current policies and reinforce best practices. Establish an annual recertification process for approving officers to ensure ongoing proficiency and accountability, reinforcing the importance of compliance and proper authorization. ADFG will meet with SSoA to discuss and implement a process that ensures all missing authority signatures are captured and returned to the department for correction before processing occurs. ADFG will meet with SSoA to discuss this audit finding and request their staff receive further training equivalent to ADFG staff to prevent potential errors and findings in the future. Additionally, ADFG will request that SSoA provide training on invoice processing and backup requirements as a core service for the State of Alaska. Completion Date (list anticipated completion date): November 15, 2025 Agency Contact (name of person responsible for corrective action): Jessica Hood, Accountant 5

View Audit 361087

Finding 569769 (2024-035)

Significant Deficiency 2024

State of Alaska

AK

Subrecipient Monitoring Allowable Costs / Cost Principles Cash Management § 200.303 § 200.308 § 200.344

Finding: 2024-035 -Six of seven award extensions for the NGMOMP program were untimely. Additionally, one award was not closed timely. Questioned Costs: None Assistance Listing Number: 12.401 Assistance Listing Title: NGMOMP Views of Responsible Officials (state whether your agency agrees or ...

Finding: 2024-035 -Six of seven award extensions for the NGMOMP program were untimely. Additionally, one award was not closed timely. Questioned Costs: None Assistance Listing Number: 12.401 Assistance Listing Title: NGMOMP Views of Responsible Officials (state whether your agency agrees or disagrees with the finding if you disagree, briefly explain why): DMVA concurs with the finding. Corrective Action (corrective action planned): Administrative Services has consistently provided notification and set clear deadlines to the Federal and State Program Managers of an expiring award under the Cooperative Agreement (CA). This notification has included a financial report detailing posted expenses and open obligations and when applicable, a copy of the most resent approved extension for reference. Due to inconsistent and untimely responses, the Finance officer in conjunction with the Administrative Services Director will update and strengthen written procedures, elevating responsibility for follow-up when responses are not received to ensure timely submission of extension requests and award closeouts following 2 CFR 200.303(a), 2 CFR 200.308(e), and 2 CFR 200.344. Updated documented procedures and training will be provided to the components under the CA. Completion Date (list anticipated completion date): 06/30/2025 Agency Contact (name of person responsible for corrective action): Bob Ernisse Pamela Wiederspohn

View Audit 361087

Finding 569768 (2024-034)

Significant Deficiency 2024

State of Alaska

AK

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

Finding: 2024-034 - The State’s accounting system was not updated for changes to the FFY 24 federally certified Facilities Inventory and Support Plan, which is used to allocate costs to the National Guard Military Operations and Maintenance Projects (NGMOMP program. Questioned Costs: AL 12.401: $88...

Finding: 2024-034 - The State’s accounting system was not updated for changes to the FFY 24 federally certified Facilities Inventory and Support Plan, which is used to allocate costs to the National Guard Military Operations and Maintenance Projects (NGMOMP program. Questioned Costs: AL 12.401: $88,984 Assistance Listing Number: 12.401 Assistance Listing Title: NGMOMP Views of Responsible Officials (state whether your agency agrees or disagrees with the finding; if you disagree, briefly explain why): DMVA concurs with the finding. Corrective Action (corrective action planned): Army Guard turnover stabilized in fiscal year 2024. The FISP is annually certified each spring for the following federal year. The Army Administrative Officer (AO) reviewed the certified 2024 Facilities Inventory and Support Plan (FISP) and requested updates to the State accounting system. Administrative Services Revenue office will make requested updates and provide a financial report to the AO for the purpose of identifying expenses posted to prior FISP percentages. The AO will submit correcting adjustments (CH8) to rectify any discrepancies. Future federal year structure will only be activated by the Revenue office once the AO has certified the review is complete and identifies needed changes. Completion Date (list anticipated completion date): 06/30/2025 Agency Contact (name of person responsible for corrective action): Pamela Wiederspohn Tanya Iskra

View Audit 361087 Questioned Costs: $1

Finding 569758 (2024-055)

Material Weakness 2024

State of Alaska

AK

Allowable Costs / Cost Principles Special Tests & Provisions Procurement, Suspension & Debarment § 200.303

Finding: 2024-055 - Daily SNAP EBT reconciliations were not performed in FY 24. Questioned Costs: None Assistance Listing Number: 10.551, 10.561 Assistance Listing Title: SNAP Cluster Views of Responsible Officials (state whether your agency agrees or disagrees with the finding; if you disagree,...

Finding: 2024-055 - Daily SNAP EBT reconciliations were not performed in FY 24. Questioned Costs: None Assistance Listing Number: 10.551, 10.561 Assistance Listing Title: SNAP Cluster Views of Responsible Officials (state whether your agency agrees or disagrees with the finding; if you disagree, briefly explain why): The department agrees with the finding. Corrective Action (corrective action planned): The Division of Public Assistance has increased administrative staff and will restore the daily reconciliation processes that were affected by staff turnover. Newer staff will be trained in the reconciliation and discrepancy processes, including review and follow-up of documentation. Completion Date (list anticipated completion date): The department anticipates the finding will be resolved in FY2025. Agency Contact (name of person responsible for corrective action): Pam Halloran, Assistant Commissioner

View Audit 361087

Finding 569757 (2024-054)

Material Weakness 2024

State of Alaska

AK

Allowable Costs / Cost Principles Eligibility Special Tests & Provisions § 200.303

Finding: 2024-054 - Testing of 42 SNAP recipient cases to verify the completeness and accuracy of benefit calculations found 37 (88 percent) were incorrect or unsupported, including 24 (57 percent) in which the recipients’ application or reports of changes were not processed within federally require...

Finding: 2024-054 - Testing of 42 SNAP recipient cases to verify the completeness and accuracy of benefit calculations found 37 (88 percent) were incorrect or unsupported, including 24 (57 percent) in which the recipients’ application or reports of changes were not processed within federally required timeframes. Testing of 42 SNAP recipient cases to verify the adequacy of case information stored in EIS and DOH’s document management system, ILINX, found 18 (43 percent) had inadequate verifications of required information. Questioned Costs: AL 10.551: $59,073 Assistance Listing Number: 10.551, 10.561 Assistance Listing Title: SNAP Cluster Views of Responsible Officials (state whether your agency agrees or disagrees with the finding; if you disagree, briefly explain why): The department agrees with the finding. Corrective Action (corrective action planned): The Division of Public Assistance has reinstated SNAP interview requirements and verification procedures in FY2025. It will also review casework via supervisory case reviews to ensure accuracy and documentation standards are met. The division’s Learning & Development Team is creating training modules that will provide continuing education to existing staff. Completion Date (list anticipated completion date): The department anticipates the finding will be resolved in FY2026. Agency Contact (name of person responsible for corrective action): Pam Halloran, Assistant Commissioner

View Audit 361087

Finding 569756 (2024-053)

Material Weakness 2024

State of Alaska

AK

Allowable Costs / Cost Principles Eligibility Special Tests & Provisions § 200.303

Finding: 2024-053 - The amount of FY 24 Supplemental Nutrition Assistance Program (SNAP) benefits reported to the United States Department of Agriculture (USDA) as issued by the State’s EBT contractor, FIS, was $2,628,951 more than the amount of authorized benefits reported in data from DPA’s Eligib...

Finding: 2024-053 - The amount of FY 24 Supplemental Nutrition Assistance Program (SNAP) benefits reported to the United States Department of Agriculture (USDA) as issued by the State’s EBT contractor, FIS, was $2,628,951 more than the amount of authorized benefits reported in data from DPA’s Eligibility Information System (EIS). Furthermore, FIS could not provide a reliable audit trail of issuances. Questioned Costs: AL 10.551: $2,628,951 Assistance Listing Number: 10.551, 10.561 Assistance Listing Title: SNAP Cluster Views of Responsible Officials (state whether your agency agrees or disagrees with the finding; if you disagree, briefly explain why): The department agrees with the finding, but not the questioned cost. The Division of Public Assistance performs monthly reconciliations and balancing efforts to ensure accuracy with routine FIS reports, EIS authorization and issuance reports, and federal reporting. However, the division agrees that a new ad hoc report created for this audit by the EBT contractor, FIS, does not match with issuances and reporting. Corrective Action (corrective action planned): The Division of Public Assistance will work with the EBT contractor, FIS, through the contract performance management process to address discrepancies found between a non standard ad hoc report and program issuances and reporting. The division will evaluate further ad hoc reports against previously established documents for accuracy. Completion Date (list anticipated completion date): The department anticipates the finding will be resolved in FY2026. Agency Contact (name of person responsible for corrective action): Pam Halloran, Assistant Commissioner

View Audit 361087

Finding 569754 (2024-026)

Significant Deficiency 2024

State of Alaska

AK

Questioned Costs Eligibility School Nutrition Programs § 200.303

Finding: 2024-026 — Department of Education and Early Development’s (DEED) child nutrition services management authorized Summer 2021 Pandemic Electronic Benefit Transfer Food Benefits (P-EBT) benefits for ineligible children. Questioned Costs: AL 10.542: $62,816 Assistance Listing Number: 10.542 ...

Finding: 2024-026 — Department of Education and Early Development’s (DEED) child nutrition services management authorized Summer 2021 Pandemic Electronic Benefit Transfer Food Benefits (P-EBT) benefits for ineligible children. Questioned Costs: AL 10.542: $62,816 Assistance Listing Number: 10.542 Assistance Listing Title: P-EBT COVID- 19 Views of Responsible Officials (state whether your agency agrees or disagrees with the finding; if you disagree, briefly explain why): The department agrees with Finding 2024-026. Corrective Action (corrective action planned): As the program is complete no corrective action can be taken for the Summer P-EBT program. If a new Summer EBT program is implemented, the department would work to implement a combination of standard operating procedures and automated electronic data validation processes to prevent erroneous benefit issuance. The department did not have sufficient time or resources to establish such features when implementing Pandemic EBT due to the urgent nature of the program. Completion Date (list anticipated completion date): n/a Agency Contact (name of person responsible for corrective action): Gavin Northey, Child Nutrition Programs Manager

View Audit 361087 Questioned Costs: $1

Finding 569708 (2024-006)

Significant Deficiency 2024

Children's Advocacy Center of Hidalgo County, Inc.

TX

Allowable Costs / Cost Principles Cash Management

Reference Number 2024-006 Prepaid Expenses and Requests for Reimbursement Recommendation – It is recommended the Center evaluate and update its internal controls and procedures to ensure costs are appropriately considered when preparing the Center's monthly RFRs. Corrective Action Plan – Under new...

Reference Number 2024-006 Prepaid Expenses and Requests for Reimbursement Recommendation – It is recommended the Center evaluate and update its internal controls and procedures to ensure costs are appropriately considered when preparing the Center's monthly RFRs. Corrective Action Plan – Under new leadership, the CACHSC Finance Department fully recognizes the grant requirements stipulating that all expenses must be paid upfront and subsequently submitted for reimbursement. Additionally, annual contracts will now be broken down into monthly submissions to align with these guidelines. These procedures have been formally incorporated into our updated Financial Policies. Proposed Completion Date – Immediately Contact Person – Finance Director: Daniel Sanchez Accountant 2: Thelma Vasquez Bookkeeper: Angie Zecca

View Audit 361057

Finding 569692 (2024-002)

Material Weakness 2024

The Housing Authority of East Baton Rouge Parish

LA

Cash Management HUD Housing Programs Subrecipient Monitoring

2024-002 – ALN 14.871 – Housing Voucher Cluster – Allowable Activities Management acknowledged the finding and will follow the Auditor's recommendations as listed in the Schedule of Findings and Questioned Costs. Person Responsible for Correction of Finding: Mr. J. Daniels, Chief Executive Officer P...

2024-002 – ALN 14.871 – Housing Voucher Cluster – Allowable Activities Management acknowledged the finding and will follow the Auditor's recommendations as listed in the Schedule of Findings and Questioned Costs. Person Responsible for Correction of Finding: Mr. J. Daniels, Chief Executive Officer Projected Completion Date: September 30, 2025

View Audit 361037

Finding 569690 (2024-003)

Material Weakness 2024

Hardee County, Fl

FL

Questioned Costs Matching / Level of Effort / Earmarking Allowable Costs / Cost Principles § 200.302 § 200.303

Department of Homeland Security Federal Emergency Management Agency Disaster Grant Public Assistance – FEMA – Assistance Listing No. 97.036 Recommendation: Provide clear, updated guidance and periodic training sessions on earmarking rules and how to apply them. Conduct reviews of earmarking compli...

Department of Homeland Security Federal Emergency Management Agency Disaster Grant Public Assistance – FEMA – Assistance Listing No. 97.036 Recommendation: Provide clear, updated guidance and periodic training sessions on earmarking rules and how to apply them. Conduct reviews of earmarking compliance. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: New procedures will be implemented that strengthen internal controls to ensure that all grant revenues are recorded properly. Name(s) of the contact person(s) responsible for corrective action: Lindsey Barwick, Accounting Manager Hardee County Clerk of Courts & Lorie Ayers, General Services Director Hardee County Board of County Commissioners Planned completion date for corrective action plan: September 30, 2025

View Audit 361030 Questioned Costs: $1

Finding 569689 (2024-001)

Material Weakness 2024

California Foundation for Independent Living Centers

CA

Procurement, Suspension & Debarment Allowable Costs / Cost Principles Cash Management

Finding Reference Number: 2024-001 Description of Finding: Expenditures totaling $273,298 were incorrectly charged to the 93.464 program for a fiscal year in which the costs were not actually incurred. This misclassification resulted from recording expenses based on the purchase order date (Septemb...

Finding Reference Number: 2024-001 Description of Finding: Expenditures totaling $273,298 were incorrectly charged to the 93.464 program for a fiscal year in which the costs were not actually incurred. This misclassification resulted from recording expenses based on the purchase order date (September 30) rather than the actual service date, leading to overbilling for the grant year. Statement of Concurrence or Nonconcurrence: We concur with the audit finding regarding the misclassification of expenditures totaling $273,298 to the 93.464 program after the fiscal year-end. We acknowledge that these costs were recorded in the incorrect accounting period, resulting in an overstatement of grant expenditures for the fiscal year. Corrective Action: 1. Policy Update: CFILC will revise expense recognition policies to require that costs be recorded in the period matching the actual service date. 2. Year-End Review Process: CFILC will implement a formal review process at fiscal year-end to confirm expenses are attributed to the correct fiscal year. 3. Staff Training: CFILC will provide training for financial reporting and grant billing staff on the expense recognition policy and year-end review process. 4. Monitoring & Compliance: CFILC will establish periodic internal audits or reviews to ensure ongoing compliance with the updated procedures. 5. Finance Committee Oversight: Executive Director will report to the Finance Committee on the status of this corrective action plan by the completion date of December 31, 2025. Name of Contact Person: Kathrine Crowley, Acting Executive Director, kathrine@cfilc.org, (916) 232-1985 Projected Completion Date: December 31, 2025

View Audit 361029

Finding 569685 (2024-006)

Material Weakness 2024

City of Long Beach

CA

HUD Housing Programs Eligibility Subrecipient Monitoring § 200.303

Program: Section 8 Housing Choice Voucher Finding: 2024-006 Contact Person: Michelle Mel-Duch Housing Administrative and Financial Services Officer Health & Human Services Department Phone: (562) 570-5344 Email: Michelle.Mel-Duch@longbeach.gov Planned Actions: 1. Automated Data Validation and Err...

Program: Section 8 Housing Choice Voucher Finding: 2024-006 Contact Person: Michelle Mel-Duch Housing Administrative and Financial Services Officer Health & Human Services Department Phone: (562) 570-5344 Email: Michelle.Mel-Duch@longbeach.gov Planned Actions: 1. Automated Data Validation and Error Detection: o HACLB utilizes the MRI housing management software, which syncs to the HUD’s PIC (Public and Indian Housing Information Center)requirements, ensuring data consistency and validation. o The MRI system incorporates HUD’s mandated validation standards and automatically identifies errors in participant data before submission to the PIC system. o Validation errors flagged by MRI are reviewed and corrected prior to submission to HUD, ensuring data accuracy and compliance. 2. Compliance with HUD Standards and Reporting: o Each recertification is submitted to the HUD PIC system, which further validates the data and alerts HACLB to any errors through the PIC Error Dashboard. o HACLB promptly addresses and corrects errors identified by PIC to maintain program integrity and compliance with HUD reporting standards. 3. Quality Control and Training: o HACLB conducts annual SEMAP (Section Eight Management Assessment Program) evaluations, which include quality control indicators to assess the accuracy of calculations and program administration. o Errors identified through SEMAP and system validations are used proactively as training opportunities for staff. o New Housing Specialists’ work is closely reviewed during their training period to ensure accuracy and compliance. 4. Systematic Tracking and Monitoring: o The MRI system facilitates ongoing quality control tracking, enabling Housing staff to monitor and correct errors effectively. o HACLB’s process includes regular oversight and review of participant files and related transactions to ensure timely and accurate housing assistance payments and reporting. Expected Completion Date: December 31, 2025

View Audit 361021

Finding 569679 (2024-003)

Material Weakness 2024

City of Long Beach

CA

HUD Housing Programs Allowable Costs / Cost Principles Eligibility

Program: Section 8 Housing Choice Voucher Finding: 2024-003 Contact Person: Michelle Mel-Duch Housing Administrative and Financial Services Officer Health & Human Services Department Phone: (562) 570-5344 Email: Michelle.Mel-Duch@longbeach.gov Planned Actions: 1. Staff Augmentation and Training: ...

Program: Section 8 Housing Choice Voucher Finding: 2024-003 Contact Person: Michelle Mel-Duch Housing Administrative and Financial Services Officer Health & Human Services Department Phone: (562) 570-5344 Email: Michelle.Mel-Duch@longbeach.gov Planned Actions: 1. Staff Augmentation and Training: o In January 2025, HACLB submitted requisitions to the Human Resources Department to recruit additional Housing Specialists to improve the management of high volume HCV program participants, documentations, processes, and to meet various requirement deadlines. o As of May 3, 2025, four new Housing Specialists have been hired and are currently undergoing training. Four additional Housing Specialists are in the onboarding process with Human Resources Department. o Several supervisory positions remain unfilled due to the need to renew the hiring list. HACLB has submitted a request to initiate the renewal process in order to recruit from a new list. o In addition, HACLB has hired a Housing Administrative and Financial Services Officer and a Housing Operations Program Officer. These roles are critical in providing oversight of operational workflows, evaluating staff productivity, and developing strategies to optimize staffing levels and resource allocation. 2. Contracted Support Services: o To address a backlog of overdue reexaminations, HACLB renewed its contract with an external agency to provide dedicated assistance in processing pending cases. This contract became effective in May 2025 and has already begun to support the reexamination workload. 3. Technology Upgrade: o HACLB has transitioned to a new housing software platform tailored to improve the tracking and processing of annual recertifications. This system upgrade enhances productivity monitoring, facilitates efficient workflow management, and supports compliance with HUD timeliness standards. Expected Completion Date: September 30, 2026

View Audit 361021

Finding 569666 (2024-002)

Significant Deficiency 2024

Alfred Saliba Family Services Center, Inc.

AL

Reporting Allowable Costs / Cost Principles § 200.303

Item 2024-002 (Repeat 2023-002) Reporting – Management’s Response – The Agency will implement controls to ensure proper review and approval is obtained on required grant reports prior to submission to the grantor. Anticipated Completion: September 30, 2025 Responsible Party: Jim Harnett, Execut...

Item 2024-002 (Repeat 2023-002) Reporting – Management’s Response – The Agency will implement controls to ensure proper review and approval is obtained on required grant reports prior to submission to the grantor. Anticipated Completion: September 30, 2025 Responsible Party: Jim Harnett, Executive Director

View Audit 361018

Finding 569596 (2024-005)

Significant Deficiency 2024

Wayne Metropolitan Community Action Agency and Affiliates

MI

Questioned Costs Allowable Costs / Cost Principles Significant Deficiency

2024-005 Significant Deficiency in Internal Control over Financial Reporting - Payroll Documentation and Approvals All employees complete an electronic timecard in the payroll system. Payroll time sheets are approved by the employee as well as their direct supervisor. Should any approval gaps occur ...

2024-005 Significant Deficiency in Internal Control over Financial Reporting - Payroll Documentation and Approvals All employees complete an electronic timecard in the payroll system. Payroll time sheets are approved by the employee as well as their direct supervisor. Should any approval gaps occur the Payroll Manager and/or Executive Director of Budget and Information Systems review those exceptions and approve or deny, as necessary.

View Audit 360986 Questioned Costs: $1

Finding 569472 (2024-002)

Material Weakness 2024

Rock Island Housing Authority

IL

HUD Housing Programs Allowable Costs / Cost Principles Matching / Level of Effort / Earmarking

In order to keep cash as accurate as possible, we will clear interfunds monthly. In order to prevent co-mingling of cash, we will begin a plan to break apart the funds for each program – Spencer, COCC, 3rd and 11th. We also adjusted allocations to better reflect employees’ use of time and actual c...

In order to keep cash as accurate as possible, we will clear interfunds monthly. In order to prevent co-mingling of cash, we will begin a plan to break apart the funds for each program – Spencer, COCC, 3rd and 11th. We also adjusted allocations to better reflect employees’ use of time and actual costs incurred by program and by LITC property. Public Housing and COCC training is planned that all finance staff will attend to make sure proper HUD procedures, rules, and guidelines are followed. By June 2025, we have already reduced the receivable by 200,000. The plan is to reduce the receivable down to $0 in 3-5 years.

View Audit 360951

Finding 569443 (2024-004)

Material Weakness 2024

Associated Ministries of Tacoma/pierce County

WA

Allowable Costs / Cost Principles Special Tests & Provisions Subrecipient Monitoring § 200.302

Views of responsible officials and planned corrective actions: The documentation supporting program check requests is maintained by the program staff in the client files. When requesting a disbursement for a client, the case manager prepares a check request after following the process prescribed b...

Views of responsible officials and planned corrective actions: The documentation supporting program check requests is maintained by the program staff in the client files. When requesting a disbursement for a client, the case manager prepares a check request after following the process prescribed by the program and contract for determining an allowable disbursement. The check request is then reviewed and approved by a supervisor who also checks for eligibility and allowability of the disbursement. Only the approved check request is provided to the finance office to create the disbursement to avoid duplication of records. The client files and these records have been reviewed during site visits and previous audits without exception and with no delay in providing requested information. To further improve this process, however, the program has added a new form to be completed for each new client’s rental costs clearly identifying the costs to be paid and the source information for those costs. The supervisor reviewing disbursement requests will also affirmatively indicate on the check request that they have verified this documentation in the client file. Responsible Official: Molly Archer, Chief Operating Officer and Valorie Crout, Chief Program Officer Anticipated Completion Date: 6/1/2025

View Audit 360932

Finding 569415 (2024-003)

Material Weakness 2024

First Financial Credit Union

NM

Allowable Costs / Cost Principles HUD Housing Programs Material Weakness

3. Finding 2024-003 Section 5.1 of the grant agreement incorporates 2 CFR Part 200, which establishes uniform administrative requirements, cost principles, and audit requirements for Federal awards, Uniform Guidance (UG) Administrative Requirements. UG administrative requirements puts emphasis on wr...

3. Finding 2024-003 Section 5.1 of the grant agreement incorporates 2 CFR Part 200, which establishes uniform administrative requirements, cost principles, and audit requirements for Federal awards, Uniform Guidance (UG) Administrative Requirements. UG administrative requirements puts emphasis on written policies and procedures as central in its objective to maintain effective internal controls over federal awards. a. Action(s) Taken or Planned on the Finding Management has is in the process of developing policies and procedures to comply with the grant agreement and 2 CFR 200. b. Implementation Date: Estimated completion date is August 31, 2025.

View Audit 360908

Finding 569390 (2024-002)

Significant Deficiency 2024

Woodbend Housing Corporation

OH

Questioned Costs HUD Housing Programs Allowable Costs / Cost Principles

Management is currently conducting a comprehensive review of the process to ensure alignment with compliance requirements and identify areas for improvement.

View Audit 360895 Questioned Costs: $1

Finding 569381 (2024-004)

None 2024

El Proyecto Del Barrio, Inc.

CA

Allowable Costs / Cost Principles Internal Control / Segregation of Duties Matching / Level of Effort / Earmarking § 200.303

El Proyecto will update the standard operating procedure for approving timecards while an employee is on leave while remaining compliant with applicable employment laws and regulations. Person Responsible: Ricardo Ornelas Position of Responsible Party: Chief Financial Officer ...

El Proyecto will update the standard operating procedure for approving timecards while an employee is on leave while remaining compliant with applicable employment laws and regulations. Person Responsible: Ricardo Ornelas Position of Responsible Party: Chief Financial Officer Completion Date: August 31, 2025

View Audit 360886

Finding 569375 (2024-002)

Material Weakness 2024

Skagway Traditional Council

AK

Questioned Costs Allowable Costs / Cost Principles Matching / Level of Effort / Earmarking § 200.403 § 200.414

Federal Award Finding: 2024-002 Material Weakness in Internal Control and Noncompliance – Allowable Costs/Cost Principles: Indirect Costs Name of Individual Responsible for Corrective Action: Sara Kinjo-Hischer, Tribal Administrator Corrective Action: Skagway Traditional Council will work closely wi...

Federal Award Finding: 2024-002 Material Weakness in Internal Control and Noncompliance – Allowable Costs/Cost Principles: Indirect Costs Name of Individual Responsible for Corrective Action: Sara Kinjo-Hischer, Tribal Administrator Corrective Action: Skagway Traditional Council will work closely with the contract accountant to ensure that indirect costs charged to each grant are within the grant’s budget and are in accordance with the terms and conditions of each grant award and with Uniform Guidance. Planned Completion Date: September 30, 2025

View Audit 360863 Questioned Costs: $1

Finding 569372 (2024-003)

Significant Deficiency 2024

Housing Authority of the City of Deerfield Beach

FL

Questioned Costs Allowable Costs / Cost Principles HUD Housing Programs

Management’s Corrective Action Plan Program Name: Name of Federal Program or Cluster CFDA Number:14.871 2024-003: FSS Liability and Insufficient Cash Criteria: FSS Program Regulations (24 CFR 984.305): Specifically for the FSS program, this regulation governs the management of FSS escrow ac...

Management’s Corrective Action Plan Program Name: Name of Federal Program or Cluster CFDA Number:14.871 2024-003: FSS Liability and Insufficient Cash Criteria: FSS Program Regulations (24 CFR 984.305): Specifically for the FSS program, this regulation governs the management of FSS escrow accounts, which are funded using HAP funds for HCV participants. These escrow funds are restricted to deposits for participants’ savings accounts based on increased rent due to earned income. Using these funds for other purposes, such as covering unrelated HA expenses, is unallowable. Condition: During our audit we noted that the Authority’s HCV program did have sufficient cash to cover the FSS liability Context: Per the authority’s FSS escrow liability listing, there should be $168,708 in escrow account. The Authority only has $156,715 in this account, leaving it short by $11,990. The Authority only has $585 in unrestricted HCV cause the program to insufficient cash to cover liability. Management Response: Due to the HCV program being in shortfall and awaiting set-aside funding during this period, it was significantly challenging to consistently fund the Family Self-Sufficiency (FSS) liability on a monthly basis. However, once sufficient funding was received, the issue was fully resolved.

View Audit 360859 Questioned Costs: $1

Corrective Action Plans

Filters