Corrective Action Plans

Finding 504240 (2024-001)

Significant Deficiency 2024

South Dakota Housing Development Authority

SD

Allowable Costs / Cost Principles Subrecipient Monitoring Significant Deficiency

Federal Agency Name: U.S. Department of Housing and Urban Development Program Name and FALN #: FALN # 14.231 COVID-19 Emergency Solutions Grant Program (ESG – CV) and Emergency Solutions Grant Program (ESG) Finding Summary: In three instances, the amount reimbursed to subrecipients were paid out bas...

Federal Agency Name: U.S. Department of Housing and Urban Development Program Name and FALN #: FALN # 14.231 COVID-19 Emergency Solutions Grant Program (ESG – CV) and Emergency Solutions Grant Program (ESG) Finding Summary: In three instances, the amount reimbursed to subrecipients were paid out based on the persons paycheck stub showing allocation of hours which did not match backup provided for hours worked under the program, Responsible Individuals: Denise Albertson, ESG Administrator Amy Eldridge – Director of Rental Housing Development Corrective Action Plan: The ESG Administrator will review the timesheet information to ensure the hours and amounts for payroll costs are correctly allocated by the subrecipient to the program. Any differences in the allocation between the timesheets and paycheck stubs will be reviewed prior to disbursements. Anticipated Completion Date: September 30, 2024

View Audit 326747

Finding 504199 (2024-003)

Material Weakness 2024

High Street Homes Inc.

MD

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

Contact person: Katherine Dannenfelser, Director of Finance Recommendation: The Project should review the HUD agreement and approved budget to obtain a better understanding of the type of costs that are allowable, and ensure they are only using HUD funds for allowable costs. Corrective Action: A f...

Contact person: Katherine Dannenfelser, Director of Finance Recommendation: The Project should review the HUD agreement and approved budget to obtain a better understanding of the type of costs that are allowable, and ensure they are only using HUD funds for allowable costs. Corrective Action: A formal scheduled training and study session would benefit staff as there is a need to understand allowable costs. As Senior Management reviews the disbursements, the final review before check signing, a top level review can also be done. At this point, the best approach seems there should be formal purchase orders written for the HUD homes - differentiating High Street Homes from Five Rivers Homes - expenses that should be attached to the invoices before approval. This additional layer of review will benefit the situation as staff can easily see if an item is approved.

View Audit 326671 Questioned Costs: $1

Finding 503982 (2024-001)

Significant Deficiency 2024

Wantagh Union Free School District

NY

Allowable Costs / Cost Principles Subrecipient Monitoring Significant Deficiency

The forms were distributed timely, most were returned timely, and as noted ultimately all were returned. Every effort is made to collect all required forms timely, and the district will continue to do so. A filing system is in place to readily identify those that require follow up and follow up on o...

The forms were distributed timely, most were returned timely, and as noted ultimately all were returned. Every effort is made to collect all required forms timely, and the district will continue to do so. A filing system is in place to readily identify those that require follow up and follow up on outstanding forms will continue on a regular basis until all forms are returned. Implementation Date- October 22, 2024. Beginning with the forms to be distributed and collected during the 2024-2025 school year, follow-up with begin on a timelier basis and continue until all required forms are returned. Person responsible for implementation- Anthony Cedrone, Assistant Superintendent for Business

View Audit 326332

Finding 503773 (2024-003)

Significant Deficiency 2024

Edwardsburg Public Schools

MI

Allowable Costs / Cost Principles School Nutrition Programs Significant Deficiency

Auditor Description of Condition and Effect. Throughout the year journal entries were posted without independent approval. As a result of this condition, the District is exposed to an increased risk that misstatements or misappropriations might occur and not be detected by management in a timely ma...

Auditor Description of Condition and Effect. Throughout the year journal entries were posted without independent approval. As a result of this condition, the District is exposed to an increased risk that misstatements or misappropriations might occur and not be detected by management in a timely manner. Auditor Recommendation. We recommend that the District's journal entries be independently reviewed, signed and dated, as evidence of this control. Corrective Action. The District will implement a new procedure to ensure each journal entry goes through a review process before being posted. Responsible Person. Gail Enders, Finance Director Anticipated Completion Date. June 30, 2025

View Audit 326057

Finding 503762 (2024-001)

Significant Deficiency 2024

McKinley Ii, Inc.

IL

Internal Control / Segregation of Duties Procurement, Suspension & Debarment Allowable Costs / Cost Principles

Statement of Condition - Expenditures totaling $9,250 were improperly charged to the improper Project during the year ended June 30, 2024. Planned Corrective Action - We concur with the finding expenditures totaling $9,250 were improperly charged to the Project during the year ended June 30, 2024...

Statement of Condition - Expenditures totaling $9,250 were improperly charged to the improper Project during the year ended June 30, 2024. Planned Corrective Action - We concur with the finding expenditures totaling $9,250 were improperly charged to the Project during the year ended June 30, 2024. This Project and a separate Project are located on the same street which contributed to the error. The Finance team currently reviews and will continue to review invoices charged to each Project to ensure invoices are charged to the proper Project. Contact person responsible for corrective action – Brian Grundy Completion Date – September 30, 2024

View Audit 326031

Finding 503761 (2024-001)

Significant Deficiency 2024

Ada S. McKinley Community Services, Inc. Group Homes

IL

Internal Control / Segregation of Duties Procurement, Suspension & Debarment Allowable Costs / Cost Principles

Statement of Condition - Expenditures totaling $9,250 were improperly charged to the improper Project during the year ended June 30, 2024. Planned Corrective Action - We concur with the finding expenditures totaling $9,250 which should have been charged to this Project were improperly charged to a s...

Statement of Condition - Expenditures totaling $9,250 were improperly charged to the improper Project during the year ended June 30, 2024. Planned Corrective Action - We concur with the finding expenditures totaling $9,250 which should have been charged to this Project were improperly charged to a separate Project during the year ended June 30, 2024. This Project and the separate Project are located on the same street which contributed to the error. The Finance team currently reviews and will continue to review invoices charged to each Project to ensure invoices are charged to the proper Project. Contact person responsible for corrective action – Brian Grundy Completion Date – September 30, 2024

View Audit 326028

Finding 503609 (2024-004)

Significant Deficiency 2024

Unified School District No. 395 Lacrosse, Kansas

KS

Allowable Costs / Cost Principles § 200.430

2024-004 Epidemiology and Laboratory Capacity for Infectious Diseases (ELC) – 93.323 Activities Allowed or Unallowed and Allowable Costs and Cost Principles Condition Three employees were paid an additional amount using program funding in order to reflect the administrative burden associated with ru...

2024-004 Epidemiology and Laboratory Capacity for Infectious Diseases (ELC) – 93.323 Activities Allowed or Unallowed and Allowable Costs and Cost Principles Condition Three employees were paid an additional amount using program funding in order to reflect the administrative burden associated with running the program for three years. For two of the employees, no personnel activity reports or other time records could be provided to support those costs. For the third employee, a monthly log of hours worked on grant activities was provided. However, it only showed the total hours for that month and did not break them out by date of occurrence. Additionally, no supervisor review or other control over that log occurred. Lastly, the employees’ contracts were not amended and approved by the Board to reflect these additional amounts. Recommendation Employees with grant administration responsibilities should undergo training to better their understanding of the compliance requirements that accompany Federal programs. Additionally, controls should be implemented to ensure that all required records are prepared, as well as to ensure that the Board approves all wage rates. Comments on the Finding Staff are aware of the oversight and will strive to improve the process. Action Taken Staff involved in grant administration will review training available from the Kansas State Department of Education regarding federal programs. Additionally, a year-end review of gross wages will be implemented to ensure that paid amounts match the approved contracts.

View Audit 325792

Finding 503538 (2024-001)

Material Weakness 2024

Coldwater Community Schools

MI

Allowable Costs / Cost Principles Internal Control / Segregation of Duties § 200.430

The District will work with the Assistant Superintendent of Curriculum and Instruction and the payroll supervisor to ensure that pars are matching what is being charged in the payroll system. A form will be created to ensure that they align and both parties will sign off on it quarterly.

View Audit 325665

Finding 503440 (2024-003)

Material Weakness 2024

Vista Homes Housing Corporation

NY

HUD Housing Programs Allowable Costs / Cost Principles Material Weakness

Reporting views of responsible officials and planned corrective actions The Organization will enhance its controls to ensure that at year-end there is a final review of the transactions to ensure completeness, accuracy and proper classification.

View Audit 325560

Finding 503432 (2024-001)

Material Weakness 2024

New Visions Housing Corporation

CA

HUD Housing Programs Allowable Costs / Cost Principles Material Weakness

Reporting views of responsible officials and planned corrective actions The Organization will enhance its controls to ensure that at year-end there is a final review of the transactions to ensure completeness, accuracy and proper classification.

View Audit 325559

Finding 503429 (2024-002)

Material Weakness 2024

Housing for the Multi-Handicapped Blind

NY

Allowable Costs / Cost Principles HUD Housing Programs Material Weakness

Reporting views of responsible officials and planned corrective actions The Organization will enhance its controls at year-end to ensure there is a final review of the transactions for proper classification.

View Audit 325558

Finding 503423 (2024-002)

Material Weakness 2024

Great Expectations Housing Corporation

CA

HUD Housing Programs Allowable Costs / Cost Principles Material Weakness

Reporting views of responsible officials and planned corrective actions The Organization will enhance its controls to ensure expenses are captured in the correct fiscal period and that at year-end there is a final review of the transactions to ensure completeness, accuracy and proper classification ...

Reporting views of responsible officials and planned corrective actions The Organization will enhance its controls to ensure expenses are captured in the correct fiscal period and that at year-end there is a final review of the transactions to ensure completeness, accuracy and proper classification of expenses.

View Audit 325557

Finding 503251 (2024-003)

Significant Deficiency 2024

Sebeka Public Schools

MN

Allowable Costs / Cost Principles Internal Control / Segregation of Duties

2024-003 FINDING Contact Person – Dave Kerkvliet, Superintendent Corrective Action Plan – The District will implement policies and procedures to ensure all timecards are approved before payroll is processed. Completion Date – November 1, 2024

View Audit 325307

Finding 503248 (2024-002)

Significant Deficiency 2024

Unified School District No. 355 Ellinwood, Kansas

KS

Allowable Costs / Cost Principles

SIGNIFICANT DEFICIENCY 2024-002 Education Stabilization Fund – 84.425 Condition During inquiry of District personnel and review of program documents, we identified that certain amounts booked with journal entries to the program expenditure account either could not be fully substantiated with suppo...

SIGNIFICANT DEFICIENCY 2024-002 Education Stabilization Fund – 84.425 Condition During inquiry of District personnel and review of program documents, we identified that certain amounts booked with journal entries to the program expenditure account either could not be fully substantiated with supporting documentation or were booked to an incorrect period. Recommendation We recommend that the District carefully review supporting documentation when preparing journal entries associated with federal programs. Comments on the Finding The District is aware of the oversight and will strive to improve the process, in the future. Action Taken As of the date of this notice, prior to the Business Manager posting any journal entries to the accounting records, the Superintendent will carefully review the proposed entries and compare them against supporting documentation. Furthermore, the District will conduct regular meetings with District Office staff to ensure that best practices are being implemented when documenting data destined for journal entries and accounting records.

View Audit 325303

Finding 502910 (2024-001)

Significant Deficiency 2024

Goshen Central School District

NY

Allowable Costs / Cost Principles § 200.430

The District will implement a system of internal controls to ensure that all certifications are completed by employees working in the federal award programs and in a timely manner. Additionally, the District will ensure that the time being charged to the grant agrees to actual time spent working in...

The District will implement a system of internal controls to ensure that all certifications are completed by employees working in the federal award programs and in a timely manner. Additionally, the District will ensure that the time being charged to the grant agrees to actual time spent working in the grant for each employee. Anticipated completion Date: Currently in process with final expected date of October 31, 2024.

View Audit 324892

Finding 502902 (2024-001)

Significant Deficiency 2024

Pine Bush Central School District

NY

Allowable Costs / Cost Principles

The District provided all forms but the forms contained language that has the employee confirming what percentage of pay is coming from the grant funds rather than what amount of time is being spent working in activities covered by the grant. The language on the forms have been updated to now state...

The District provided all forms but the forms contained language that has the employee confirming what percentage of pay is coming from the grant funds rather than what amount of time is being spent working in activities covered by the grant. The language on the forms have been updated to now state that the employee is confirming the percentage of activities that are eligible within the grants. The person that will be responsible for ensuring this change takes place is Jospeh, Lenz, Assistant Superintendent for Business. Another change will be that the forms in the upcoming year will be distributed, collected and managed by Angela Wise-Landman, HR Director and Amy Zupetz, Account Clerk to ensure that everything is completed timely and accurately. Anticipated Completion Date 10/01/2024.

View Audit 324854

Finding 502060 (2024-003)

Significant Deficiency 2024

Forest Park School District

MI

Allowable Costs / Cost Principles Eligibility Reporting

2024-003 Child Nutrition Cluster – Assistance Listing No. 10.CNC Recommendation: CLA recommends the District designate an individual to review student lunch statuses. Having an appropriate reviewer over student status is intended to prevent, detect, and correct a potential error in the food servic...

2024-003 Child Nutrition Cluster – Assistance Listing No. 10.CNC Recommendation: CLA recommends the District designate an individual to review student lunch statuses. Having an appropriate reviewer over student status is intended to prevent, detect, and correct a potential error in the food service system. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action planned/taken in response to finding: Management will designate an individual to review student lunch statuses. Name of the contact person responsible for corrective action: Kathy Stankewicz, Business Manager Planned completion date for corrective action plan: June 30, 2025

View Audit 324255

Finding 502057 (2024-001)

None 2024

Kentucky Housing Corporation

TN

Questioned Costs Subrecipient Monitoring Allowable Costs / Cost Principles § 200.516

The Corporation identified a subrecipient’s misuse of grant funds during a regular audit of draws and a scheduled monitoring review/technical assistance consultation for the agency. Ethic complaints were received by the Corporation during the same timeframe regarding the subrecipient’s management wh...

The Corporation identified a subrecipient’s misuse of grant funds during a regular audit of draws and a scheduled monitoring review/technical assistance consultation for the agency. Ethic complaints were received by the Corporation during the same timeframe regarding the subrecipient’s management which expanded the scope of the financial review. As a result of these monitoring efforts, the Corporation identified ineligible and questioned costs, and efforts are underway to recapture ineligible and unsupported costs. The Corporation has put the following policies and procedures in place to mitigate future risk: 1. Biennial Risk Assessment with Annual Updates 2. Annual Project Compliance Report (APCR) required by subrecipient agencies (with the exception of subrecipients receiving only Department of Energy and LIHEAP grants for the Weatherization Assistance Program, which are governed by separate monitoring procedures). 3. Enhanced Draw Monitoring and draw documentation requirements 4. Expansion of the Corporation’s Compliance and Training Team Given the policies, procedures, and changes outlined above, the Corporation feels confident it will be able to comply with its Compliance Monitoring Plan going forward and identify any concerns with subrecipient compliance in a timely manner. Curtis Stauffer, Managing Director, Housing Contract Administration, and applicable compliance staff will implement by October 1, 2024.

View Audit 324253 Questioned Costs: $1

Finding 499877 (2024-002)

Significant Deficiency 2024

Kanesville Heights, INC

IA

HUD Housing Programs Allowable Costs / Cost Principles Reporting

Finding 2024-002 – Disbursement Support Condition: Kanesville’s disbursements omitted required support in accordance with the HUD handbook and PRAC contract This finding occurred when M3 was managing the property. Kanesville hired a new management agent that is familiar with HUD standards. Correctiv...

Finding 2024-002 – Disbursement Support Condition: Kanesville’s disbursements omitted required support in accordance with the HUD handbook and PRAC contract This finding occurred when M3 was managing the property. Kanesville hired a new management agent that is familiar with HUD standards. Corrective Action Plan: Management agent is currently retaining documentation concerning disbursements in compliance with the HUD handbook and PRAC contract. Status: Completed.

View Audit 322740

Finding 499876 (2024-001)

Significant Deficiency 2024

Kanesville Heights, INC

IA

HUD Housing Programs Allowable Costs / Cost Principles Reporting

Finding 2024-001 – Tenant Files Condition: Kanesville’s tenant move out files omitted required elements in accordance with the HUD handbook and PRAC contract. This finding occurred when M3 was managing the property. Kanesville hired a new management agent that is familiar with HUD standards. Correct...

Finding 2024-001 – Tenant Files Condition: Kanesville’s tenant move out files omitted required elements in accordance with the HUD handbook and PRAC contract. This finding occurred when M3 was managing the property. Kanesville hired a new management agent that is familiar with HUD standards. Corrective Action Plan: Management agent is currently documenting tenant move out files in compliance with the HUD handbook and PRAC contract. Status: Completed.

View Audit 322740

Finding 499458 (2024-007)

Material Weakness 2024

Outpatient Medical Center, Inc.

LA

Allowable Costs / Cost Principles Material Weakness Reporting

2024-007 Reporting (repeat of finding 2023-003) Corrective action planned: The new accounting system which OMC implemented in April 2024, allows for better tracking of UDS related costs, primarily financial related data. Documentation for UDS reporting will be maintained and updated when needed. ...

2024-007 Reporting (repeat of finding 2023-003) Corrective action planned: The new accounting system which OMC implemented in April 2024, allows for better tracking of UDS related costs, primarily financial related data. Documentation for UDS reporting will be maintained and updated when needed. Internal auditing has already been implemented to ensure compliance with reporting requirements. Anticipated completion date: 11-30-2024 Contact person responsible for corrective action: Richard Bruce, Chief Operating Officer

View Audit 322303

Finding 499450 (2024-005)

Material Weakness 2024

Outpatient Medical Center, Inc.

LA

Questioned Costs Allowable Costs / Cost Principles § 200.403

2024-005 Period of Performance Corrective action planned: The Fiscal Supervisor and/or the Director of Fiscal Operations will review expenditures before payment to ensure that GAAP and the accrual basis of accounting are being followed. Month-end closing procedures will include a review of all pre...

2024-005 Period of Performance Corrective action planned: The Fiscal Supervisor and/or the Director of Fiscal Operations will review expenditures before payment to ensure that GAAP and the accrual basis of accounting are being followed. Month-end closing procedures will include a review of all prepaid expenses to assure that a separate schedule is maintained and reconciled to the general ledger. Anticipated completion date: 11-30-2024 Contact person responsible for corrective action: Cathy Liles, Director of Fiscal Operations

View Audit 322303 Questioned Costs: $1

Finding 499446 (2024-004)

Material Weakness 2024

Outpatient Medical Center, Inc.

LA

Questioned Costs Allowable Costs / Cost Principles

2024-004 Allowable Costs/Cost Principles Corrective action planned: The Fiscal Supervisor and/or the Director of Fiscal Operations will review expenditures before payment and will ensure that goods and/or services have been received before expenditure is posted into the accounting records. OMC c...

2024-004 Allowable Costs/Cost Principles Corrective action planned: The Fiscal Supervisor and/or the Director of Fiscal Operations will review expenditures before payment and will ensure that goods and/or services have been received before expenditure is posted into the accounting records. OMC clerical and other staff will be trained on expenditure coding, based on the current year’s budget. Financial reports for each grant cost center will be reviewed each month and reconciled to the cash disbursements shown in the Payment Management System. Anticipated completion date: 11-30-24 Contact person responsible for corrective action: Cathy Liles, Director of Fiscal Operations

View Audit 322303 Questioned Costs: $1

Finding 499442 (2024-001)

Significant Deficiency 2024

Shenandoah Haven, Inc.

TN

Allowable Costs / Cost Principles HUD Housing Programs

Findings Reference Number: 2024-001 Federal Agency: Department of Housing and Urban Development Federal Program:Supportive Housing for Persons with Disabilities CFDA Number: 14.181 Management's response: Management concurs with the finding. Corrective Action Plan: Management will re -evaluate contro...

Findings Reference Number: 2024-001 Federal Agency: Department of Housing and Urban Development Federal Program:Supportive Housing for Persons with Disabilities CFDA Number: 14.181 Management's response: Management concurs with the finding. Corrective Action Plan: Management will re -evaluate controls around cost identification and authorization in efforts to minimize potential error going forward. Implementation Date: Immediately.

View Audit 322299

Finding 499412 (2024-001)

Significant Deficiency 2024

Stoddard CO Public Water District #4

MO

Internal Control / Segregation of Duties Procurement, Suspension & Debarment Subrecipient Monitoring

1. Finding 2024-001 a. We concur with the finding and recommendation. b. Management realizes the duties are reevaluated regularly and with the size of the District it is not feasible to add additional employees. They believe that they have adequate safeguards against material misstatements; however...

1. Finding 2024-001 a. We concur with the finding and recommendation. b. Management realizes the duties are reevaluated regularly and with the size of the District it is not feasible to add additional employees. They believe that they have adequate safeguards against material misstatements; however, they will continue to strive to improve this deficiency. c. The Board of Directors is responsible for evaluating safeguards against material misstatements to the financial statements. d. This is an ongoing process, therefore, there is no anticipated completion date.

View Audit 322270

Corrective Action Plans

Filters