Corrective Action Plans

Finding 569933 (2024-002)

Material Weakness 2024

DC

Allowable Costs / Cost Principles Reporting Cash Management

Management has implemented a review process over the hours submitted by staff for specific grant work on 05/01/2025. The Chief Science Officer (CSO) will review and sign off on the hours submitted which form the basis of the salaries and benefit reimbursement(s). The Finance Director computes the sa...

Management has implemented a review process over the hours submitted by staff for specific grant work on 05/01/2025. The Chief Science Officer (CSO) will review and sign off on the hours submitted which form the basis of the salaries and benefit reimbursement(s). The Finance Director computes the salaries and benefits allowance along with the indirect costs per the award budget and the hours submitted. The Chief Finance Officer will review the salary, benefit and indirect computations prior to submitting a reimbursement request.

View Audit 361183

Finding 569897 (2024-005)

Material Weakness 2024

Kings Mountain Housing Authority

NC

Cash Management HUD Housing Programs Procurement, Suspension & Debarment

Name of Contact Person: Veronica Williams, Interim Executive DirectorCorrective Action:KHMA’s Board has approved new written policies and procedures and are in place now.Appropriate staff have begun taking proper safeguards for Capital Fund Program management to ensure proper accountability. This in...

Name of Contact Person: Veronica Williams, Interim Executive DirectorCorrective Action:KHMA’s Board has approved new written policies and procedures and are in place now.Appropriate staff have begun taking proper safeguards for Capital Fund Program management to ensure proper accountability. This includes the oversight of processing payments of CFP expenditures, which includes the following procedures for: 1) payment of invoices; 2) requisition of funds; 3) monitoring; and 4) reporting of CFP funds.payment of InvoicesAll CFP invoices will be reviewed and clearly marked as approved and documented to show that the source of funds for payment are CFP grant funds by the Executive Director prior to payment. The Executive Director will specify the general ledger code, including the BLI account to be used for payment processing on the invoice before providing the invoice to the accounts payable clerk.Under no circumstances will a payment be made if KMHA has not drawdown and received the respective CFP funds.With the exception of funds associated with BLI 1406 “Operations”, PHAs have three (3) business days to issue and mail the check once the CFP funds are received.The Executive Director/accounts payable clerk will specify the BLI account and CFP grant year on the check voucher prior to sending the check voucher to the fee accountant for financial statement processing.Requisition of FundsFor each drawdown, the Executive Director will print the associated eLOCCS Voucher Payment form from the eLOCCS system.The Executive Director will document the check number(s) and vendor(s) associated with each CFP draw (i.e., the eLOCCS Voucher Payment form). In addition, each individual draw shall be numbered for reference purposes.A copy of each draw shall be submitted to the fee accountant to ensure proper reporting of the grant drawdown.With the exception of funds associated with BLI 1406 “Operations”, in no case shall a draw be made without the proper approved invoices.MonitoringThe fee accountant's monthly financial statements will include a CFP report for each grant which will be reviewed by the Executive Director for proper coding and accuracy.Folder has been created to track all required information in the management of a CFP grant to include correspondence to and from HUD, expenses, grant reimbursements, budgets, closeout documentation and EPIC management.Proposed Completion Date: Immediately

View Audit 361147

Finding 569855 (2024-001)

Material Weakness 2024

Impact Community Action Partnership, Inc.

IA

Cash Management Matching / Level of Effort / Earmarking Internal Control / Segregation of Duties

Management’s Response: Management agrees with the finding. Contact Person Responsible for Corrective Action: Anne Bacon, CEO Corrective Action Plan: The auditor finding concludes that the cause of the finding is: “Rapid growth of new funding without a corresponding increase in fiscal personnel, comb...

Management’s Response: Management agrees with the finding. Contact Person Responsible for Corrective Action: Anne Bacon, CEO Corrective Action Plan: The auditor finding concludes that the cause of the finding is: “Rapid growth of new funding without a corresponding increase in fiscal personnel, combined with the replacement of the CFO resulted in significant delays in reconciliations and preparing for the September 30, 2024 audit..” In order to address these causes, IMPACT Community Action Partnership will follow a rectifying course of action. 1. Establish a Reconciliation Schedule: A monthly reconciliation calendar will be implemented, assigning specific due dates for reconciling each of the following accounts: o Cash o Grant revenue and receivables o Prepaid expenses o Accounts payable o Accrued liabilities o Receivable advances Anticipated completion date: July 15, 2025 2. Assign Responsibilities: The Controller will be responsible for completing and reviewing all reconciliations monthly. The Chief Operating Officer will provide a second-level review and sign-off and will provide weekly verbal updates to the Chief Executive Officer beginning in August, 2025 3. Document Procedures: Standard Operating Procedures (SOPs) will be created or updated for each account reconciliation process, including templates and documentation requirements and entered into the Whale software. Anticipated completion date: August 30, 2025 4. Training: All finance staff involved in reconciliations will receive training on reconciliation standards, documentation. Anticipated completion date: September 30, 2025 5. Monitoring and Reporting: A reconciliation checklist and status report will be submitted to the board of directors each month for accountability beginning in August, 2025

View Audit 361122

Finding 569833 (2024-001)

Significant Deficiency 2024

Mountainview Daycare Nutrition Program

WA

Questioned Costs Cash Management

In response to the Operational Weakness found during the recent audit, MDNP has put into effect the following training and processes. MDNP is in the process of converting all day care sites to electronic enrollment through the KidKare software. Electronic enrollments require all information to be co...

In response to the Operational Weakness found during the recent audit, MDNP has put into effect the following training and processes. MDNP is in the process of converting all day care sites to electronic enrollment through the KidKare software. Electronic enrollments require all information to be completed and all information to be correct before approval. This will eliminate errors on the Enrollment/Income-Eligibility Forms (EIEA's). We will be training current staff and new staff for center EIEA review.

View Audit 361098 Questioned Costs: $1

Finding 569791 (2024-025)

Significant Deficiency 2024

State of Alaska

AK

Cash Management Internal Control / Segregation of Duties

Finding: 2024-025 - DOR staff processed an FY 24 Child Support Services (CSS) federal cash draw that was inadequately supported at the time of the draw. Questioned Costs: None Assistance Listing Number: 93.563 Assistance Listing Title: CSS Views of Responsible Officials (state whether your ag...

Finding: 2024-025 - DOR staff processed an FY 24 Child Support Services (CSS) federal cash draw that was inadequately supported at the time of the draw. Questioned Costs: None Assistance Listing Number: 93.563 Assistance Listing Title: CSS Views of Responsible Officials (state whether your agency agrees or disagrees with the finding; if you disagree, briefly explain why): The Department of Revenue agrees with this finding. Corrective Action (corrective action planned): DOR management has implemented additional controls to ensure the completeness and accuracy of cash draws, including the preparation of more frequent expense reconciliations to ensure that the expenditure amounts recorded in IRIS match what is reported on the quarterly financial report (form 396). This step additionally ensures that the net federal share of expenditures matches the amount of receivables generated in IRIS. DOR’s finance officer will also take a more active role in the review process, ensuring cash draws are accurate and complete. Completion Date (list anticipated completion date): Implementation of the plan has begun. Final procedure testing and evaluation to be completed by December 31, 2025, based on the current Federal award being closed out. Agency Contact (name of person responsible for corrective action): Robert Doremus

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 569767 (2024-081)

Significant Deficiency 2024

State of Alaska

AK

Subrecipient Monitoring Cash Management Significant Deficiency § 200.305

Finding: 2024-081 - Fifteen of the sampled 40 subrecipient draws, on reimbursement basis, were paid to the subrecipients beyond 30 days of when the University received the payment request. Questioned Costs: None Assistance Listing Number: 81.049, 12.000, 43.001, 11.417 Assistance Listing Title...

Finding: 2024-081 - Fifteen of the sampled 40 subrecipient draws, on reimbursement basis, were paid to the subrecipients beyond 30 days of when the University received the payment request. Questioned Costs: None Assistance Listing Number: 81.049, 12.000, 43.001, 11.417 Assistance Listing Title: Research and Development Cluster (RDC) Views of Responsible Officials (state whether your agency agrees or disagrees with the finding; if you disagree, briefly explain why): There is no disagreement with the audit finding. Corrective Action (corrective action planned): The Associate Vice Chancellor (AVC) for Financial & Business is working with the Office of Finance & Accounting to establish a procedure for follow up on all invoices sent to the departments to ensure timely payment. Also the departments will develop a procedure to ensure that appropriate delegations are in place in case a PI is unavailable when an invoice is received. Completion Date (list anticipated completion date): June 2025 Agency Contact (name of person responsible for corrective action): Amanda Wall, AVC Financial Services 907-474-7552

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 569731 (2024-001)

Significant Deficiency 2024

Limestone Valley Resource Conservation and Development Council, Inc.

GA

Internal Control / Segregation of Duties Cash Management Reporting

2023-01: Segregation of Duties Name of contact person: Stephen Bontekoe, Program Coordinator Corrective Action: Duties and functions will be reviewed to determine where segregation needs to occur. The duties will be separated as much as possible and alternative controls will be implemented to ...

2023-01: Segregation of Duties Name of contact person: Stephen Bontekoe, Program Coordinator Corrective Action: Duties and functions will be reviewed to determine where segregation needs to occur. The duties will be separated as much as possible and alternative controls will be implemented to compensate for lack of segregation. However, the risk of not segregated certain duties are not worth the additional costs. Nonfinancial employees will be trained and provide some assistance. Proposed completion date: The Board will implement the above procedure immediately.

View Audit 361079

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 569700 (2024-004)

None 2024

Nebraska Urban Indian Health Coalition, Inc.

NE

Cash Management § 200.305

Finding 2024-004 – Cash Collateralization (Repeat Finding 2023-003) Condition: During our review of the Coalition’s cash, it was noted that as of September 30, 2024, they have. not collateralized cash balances more than the amounts insured by the Federal Despot Insurance Corporation. Cash balances o...

Finding 2024-004 – Cash Collateralization (Repeat Finding 2023-003) Condition: During our review of the Coalition’s cash, it was noted that as of September 30, 2024, they have. not collateralized cash balances more than the amounts insured by the Federal Despot Insurance Corporation. Cash balances of $7,596,383 were uninsured at September 30, 2024. Unearned revenue was reported at approximately $4,434,584 which includes advance payments of Federal Funds. Corrective Action Plan – Finding 2024-004 Corrective Action: In response to the finding regarding the lack of collateralization for cash balances exceeding the amounts insured by the Federal Deposit Insurance Corporation (FDIC), the Nebraska Urban Indian Health Coalition (NUIHC) acknowledges that corrective actions were initially delayed due to the illness and eventual retirement of the former CEO. However, under new leadership, these actions have since been fully implemented. As of April 2025, NUIHC is in full compliance with the cash collateralization requirements outlined in 2 CFR §200.305(b)(7). A formal cash collateralization agreement has been executed with our financial institutions, ensuring that all cash balances—including advanced federal funds—are now either insured or properly collateralized. In addition to entering into this agreement, the following measures are in the process to strengthen ongoing compliance: 1. Updated Cash Management Policies: Policies are being reviewed and revised to reflect current federal requirements and internal procedures regarding custodial credit risk and cash handling practices. 2. Monitoring and Compliance Controls: A monitoring system is in place to routinely review cash balances and coordinate with our financial institution to ensure all funds remain protected. 3. Staff Training: Targeted training was provided to financial and accounting staff to ensure continued understanding of cash collateralization requirements and the importance of ongoing compliance. Implementation Summary: • Cash Collateralization Agreement: Completed – April 2025 • Policy Revisions and Monitoring System: In process– July 2025 • Staff Training: Completed by – August 2025 Responsible Party: Chief Financial Officer, Carlett Gregory

View Audit 361040

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 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 569621 (2024-005)

None 2024

Spring Meadow Association of Responsible Tenants, Inc. 023-44087

MA

HUD Housing Programs Cash Management Eligibility

FINDINGS - MAJOR FEDERAL AWARD PROGRAM AUDIT Department of Housing and Urban Development Finding, 2024-005: Major Programs: Capital Advance Program, Federal Assistance Listing Number 14.U01 and Section 8 New Construction and Substantial Rehabilitation, Federal Assistance Listing Number 14.182 REC...

FINDINGS - MAJOR FEDERAL AWARD PROGRAM AUDIT Department of Housing and Urban Development Finding, 2024-005: Major Programs: Capital Advance Program, Federal Assistance Listing Number 14.U01 and Section 8 New Construction and Substantial Rehabilitation, Federal Assistance Listing Number 14.182 RECOMMENDATION The auditor recommends ensuring all tenant’s paperwork is thoroughly reviewed and accurately used in the calculation of the tenant’s required monthly rent and HUD’s tenant assistance payments. ACTION TAKEN Carrasquillo Management LLC acknowledges the audit finding related to rent miscalculations for five tenant files during the fiscal year ended September 30, 2024. These errors resulted in both minor tenant overcharges and undercharges, as well as corresponding discrepancies in HUD’s rental assistance payments. 1. Financial Corrections ○ The Project will reimburse the two affected tenants a total of $14 to correct the overcharges. ○ The Project will submit a request to HUD to repay the $14 in overpaid rental assistance associated with these tenants. ○ For the three tenants who were undercharged a total of $826, the Project will bill the tenants for the rent differential in accordance with HUD regulations and provide HUD with reimbursement of the $826 in excess rental assistance paid. 2. File Review and Quality Control Measures Management has implemented a secondary file review process for all certifications and recertifications to ensure that income is correctly verified, entered, and calculated in accordance with HUD Handbook 4350.3 requirements. All tenant income documentation will be double-checked by the compliance team prior to finalizing certifications. 3. Staff Training All staff involved in income verification and rent calculation have been retrained on HUD rent calculation guidelines, including handling of paystubs, Social Security statements, and other income documentation. Training includes real-case scenarios and common error prevention techniques. 4. Compliance Oversight Moving forward, Carrasquillo Management LLC will conduct quarterly internal audits of a random sample of tenant files to verify the accuracy of income calculations and ensure compliance with HUD regulations. Carrasquillo Management LLC remains committed to ensuring the accuracy of tenant rent determinations and maintaining compliance with HUD’s income calculation requirements. All necessary reimbursements and corrective actions will be completed promptly and documented for HUD’s records.

View Audit 361007

Finding 569619 (2024-003)

None 2024

Spring Meadow Association of Responsible Tenants, Inc. 023-44087

MA

HUD Housing Programs Cash Management Internal Control / Segregation of Duties

FINDINGS - MAJOR FEDERAL AWARD PROGRAM AUDIT Department of Housing and Urban Development Finding, 2024-003: Major Programs: Capital Advance Program, Federal Assistance Listing Number 14.U01 and Section 8 New Construction and Substantial Rehabilitation, Federal Assistance Listing Number 14.182 REC...

FINDINGS - MAJOR FEDERAL AWARD PROGRAM AUDIT Department of Housing and Urban Development Finding, 2024-003: Major Programs: Capital Advance Program, Federal Assistance Listing Number 14.U01 and Section 8 New Construction and Substantial Rehabilitation, Federal Assistance Listing Number 14.182 RECOMMENDATION The auditor recommends management review the HUD Handbook on determining eligible income included in the management fee calculation. ACTION TAKEN Carrasquillo Management LLC acknowledges the auditor’s finding regarding the overcharged management fee of $13,884 for the fiscal year ended September 30, 2024. The overcharge occurred during the management transition in March 2024. The outgoing management company, Mount Holyoke Management LLC, issued and received a management fee payment for the full month of March despite their services ending early in the month. Carrasquillo Management LLC officially took over management of the Project on March 9, 2024, and also received the management fee for services rendered during the remainder of that month. This resulted in both management companies receiving compensation for the same period, causing the annual management fee to exceed HUD’s allowable limits. Corrective Actions: 1. Fee Review and Adjustment Carrasquillo Management LLC is working with the auditor and ownership to correct the management fee overcharge in the Project’s financial records. Any necessary adjustments or reimbursements will be made to bring the project into compliance. 2. HUD Handbook Compliance Training Management has reviewed the relevant guidance in HUD Handbook 4381.5 Revision 2 and is ensuring that all future management fee calculations strictly follow HUD’s criteria for eligible income and fee limits. 3. Transition Protocols To prevent this issue from recurring during future management transitions, Carrasquillo Management LLC has developed a formal transition protocol that includes a reconciliation of income and fees and written confirmation of responsibilities to avoid any overlapping charges. 4. Oversight and Internal Controls All future management fee calculations will be reviewed and approved by the Regional Manager and Accounting Department to verify accuracy and compliance with HUD guidelines prior to disbursement. Carrasquillo Management LLC remains committed to ensuring proper financial stewardship of HUD program funds and maintaining compliance with all applicable regulations.

View Audit 361007

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 569391 (2024-003)

Significant Deficiency 2024

Woodbend Housing Corporation

OH

Questioned Costs HUD Housing Programs Reporting

Management acknowledges the auditor’s observation and deposit will be made.

View Audit 360895 Questioned Costs: $1

Finding 569378 (2024-001)

Significant Deficiency 2024

El Proyecto Del Barrio, Inc.

CA

Questioned Costs Special Tests & Provisions Subrecipient Monitoring

El Proyecto del Barrio, Inc. acknowledges the finding related to the incorrect administration of sliding fee discounts. We are committed to strengthening the administration of the sliding fee program to ensure full compliance with grant requirements. To address these issues and prevent recurrence, ...

El Proyecto del Barrio, Inc. acknowledges the finding related to the incorrect administration of sliding fee discounts. We are committed to strengthening the administration of the sliding fee program to ensure full compliance with grant requirements. To address these issues and prevent recurrence, the following corrective actions are being implemented: 1. Revised Application and Documentation Requirements: o The Sliding Fee Program application forms are being updated to include structured sections for staff to record income from supporting documentation (e.g., pay stubs, tax returns), rather than relying on the patient to write their income on the application, which will greatly reduce incorrect income stated on support. Staff will be responsible for calculating annual gross income based on supporting documentation and have a checklist to ensure documentation is complete and retained/uploaded in the system. 2. Two-Step Review Process: o A staff member (the “Preparer) will calculate the annual gross income, determine the household size, and determine the eligible sliding fee discount, and a second staff member (the “Reviewer”) will independently review and verify the Preparer’s calculations and determinations based on the supporting documentation. Both parties will document their review of the application to establish accountability. 3. Staff Training and Ongoing Competency Checks: o Comprehensive refresher training will be provided to all staff involved in the sliding fee program process, including the use of the poverty guidelines, income calculation methods, the new forms, entering income and household size into the system, and uploading support to the system. 4. Formal Review: o The Billing Department will conduct regular audits of completed sliding fee applications and eligibility determination forms to ensure compliance with policies. Errors will be tracked and addressed through corrective action and coaching. El Proyecto del Barrio, Inc. remains committed to accurate, compliant, and equitable implementation of the Sliding Fee Program. Person Responsible: Ricardo Ornelas Position of Responsible Party: Chief Financial Officer Completion Date: August 31, 2025

View Audit 360886 Questioned Costs: $1

Finding 569374 (2024-003)

None 2024

Homes for Good Housing Agency

OR

Questioned Costs HUD Housing Programs Cash Management § 200.302 § 200.305

Action: Set Fridays as a standard recurring day to pay invoices. Date completed: May 2025 Responsible Person: Accounting Technician, Kary Smith Action: Set Monday as the day to make capital grant drawdowns. HUD deposits the draws via ACH on Wednesdays. The PHA releases the payment on Friday Date co...

Action: Set Fridays as a standard recurring day to pay invoices. Date completed: May 2025 Responsible Person: Accounting Technician, Kary Smith Action: Set Monday as the day to make capital grant drawdowns. HUD deposits the draws via ACH on Wednesdays. The PHA releases the payment on Friday Date completed: May 2025 Responsible Person: Senior Accounting Technician, Stacy Verrinder Action: At the time of the request for capital grant transfers from the Moving to Work account to the operating account, include the Accounts Payable tech in the email distribution and include information about which invoice A/P must pay by Friday Date completed: May 2025 Responsible Person: Senior Accounting Technician, Stacy Verrinder

View Audit 360862 Questioned Costs: $1

Finding 569335 (2024-002)

Material Weakness 2024

The Housing Authority of Cheraw

SC

Questioned Costs Cash Management Eligibility § 200.302 § 200.305

Mov ing to Work Demonstra tion Program - Capital Fund ProgramALN: 14.881 Description: During testing of the Mov ing to Work Demonstration Program - Capital Fund Progra m, we selected a sample of eight elOCCS drawdown vouchers for rev iew. Of these, the Authority was unable to provide sufficient supp...

Mov ing to Work Demonstra tion Program - Capital Fund ProgramALN: 14.881 Description: During testing of the Mov ing to Work Demonstration Program - Capital Fund Progra m, we selected a sample of eight elOCCS drawdown vouchers for rev iew. Of these, the Authority was unable to provide sufficient supporting documentation to substantia te the eligibility, timing, or purpose of the draw d owns for four v ouchers. For another v oucher, the Authority could only partially support the a mount dra wn. These issues reflect a lack of a dequate documentation necessary to substantiate the allowability and propriety of the expenditure charged to the CFP grants. Planned Corrective Action: Fiscal Year 2024 was a year marked by personnel turnover in key administrative, accounting, and human resources positions. The Authority will work to implement a process to ensure that every drawdown request is accompanied by the required supporting documentation. In addition, the supporting documentation will be reviewed to ensure that it meets eligibility and "just-in-time" requirements prior to the Executive Director signing the request.

View Audit 360844 Questioned Costs: $1

Finding 569320 (2024-003)

Material Weakness 2024

Housing Authority of Florence

AL

Questioned Costs HUD Housing Programs Subrecipient Monitoring § 200.302 § 200.305

Title: Incomplete Support for Capital Fund Program (CFP) Drawdown Sample Program Name: Capital Fund Program ALN: 14.872 Description: As part of the testing of the Capital Fund Program (CFP) major program, a sample of six drawdown vouchers were selected for review. The Authority was unable to prov...

Title: Incomplete Support for Capital Fund Program (CFP) Drawdown Sample Program Name: Capital Fund Program ALN: 14.872 Description: As part of the testing of the Capital Fund Program (CFP) major program, a sample of six drawdown vouchers were selected for review. The Authority was unable to provide adequate supporting documentation for one voucher in the sample. The missing documentation prevented verification of the eligibility, timing, and allowability of the associated expenditures. Planned Corrective Action: Fiscal Vear 2024 was a year marked by personnel turnover in key administrative, accounting, and human resources positions. The Authority will work to implement a process to ensure that every drawdown request is accompanied by the required supporting documentation. In addition, the supporting documentation will be reviewed to ensure that it meets eligibility, timing, and allowability of the associated expenditures.

View Audit 360842 Questioned Costs: $1

Finding 569319 (2024-002)

Material Weakness 2024

Housing Authority of Florence

AL

Questioned Costs Cash Management § 200.302 § 200.305

Title: Unsupported MTW Capital Fund Program (CFP) Drawdowns Program Name: Moving to Work Demonstration Program - Capital Fund Program ALN: 14.881 Description: During testing of the Moving to Work Demonstration Program - Capital Fund Program, we selected a sample of eight eLOCCS drawdown vouchers ...

Title: Unsupported MTW Capital Fund Program (CFP) Drawdowns Program Name: Moving to Work Demonstration Program - Capital Fund Program ALN: 14.881 Description: During testing of the Moving to Work Demonstration Program - Capital Fund Program, we selected a sample of eight eLOCCS drawdown vouchers for review. Of these, the Authority was unable to provide sufficient supporting documentation to substantiate the eligibility, timing, or purpose of the drawdowns for two vouchers. In addition, for one voucher, the Authority did not provide evidence of immediate obligations or expenditures to support the drawdown, indicating a potential violation of the federal "just-in-time" funding requirement. Planned Corrective Action: Fiscal Year 2024 was a year marked by personnel turnover in key administrative, accounting, and human resources positions. The Authority will work to implement a process to ensure that every drawdown request is accompanied by the required supporting documentation. In addition, the supporting documentation will be reviewed to ensure that it meets eligibility and "just-in-time" requirements prior to the Executive Director signing the request.

View Audit 360842 Questioned Costs: $1

Finding 569299 (2024-029)

Significant Deficiency 2024

Government of the District of Columbia

DC

Cash Management § 200.303 § 200.305

The Department of Behavioral Health (DBH) concurs with the finding. All grant expenditures and cash drawdowns will comply with the guidelines established for DIFS including the requirement that drawdowns are only submitted for paid expenditures. The receivable invoice will be generated in the Proje...

The Department of Behavioral Health (DBH) concurs with the finding. All grant expenditures and cash drawdowns will comply with the guidelines established for DIFS including the requirement that drawdowns are only submitted for paid expenditures. The receivable invoice will be generated in the Project and Grant module reflecting the total paid expenditure. DIFS will automatically send notification to the Accounting Officer for invoice approval. Upon approval, the Accountant must submit the draw request through the relevant Federal Treasury system based on the approved invoiced amount. The funds will not be drawn until the approval of the invoice. Contact: Barbara S. Roberson, Accounting Officer, Human Support Services Cluster Estimated Completion Date: October 2025 See Corrective Action Plan for chart/table

View Audit 360834

Finding 569244 (2024-004)

Material Weakness 2024

McLeod Health

SC

Questioned Costs Allowable Costs / Cost Principles Cash Management

Condition: The Organization had a control in place to approve contractor expenditures prior to charging the expense to the Program; however, the control was ineffective and resulted in a cost being requested for reimbursement that had not been incurred by the Organization. Planned Corrective Action:...

Condition: The Organization had a control in place to approve contractor expenditures prior to charging the expense to the Program; however, the control was ineffective and resulted in a cost being requested for reimbursement that had not been incurred by the Organization. Planned Corrective Action: The Organization will implement a mandatory documentation checklist, including verified contractor invoices and proof of service completion, prior to approving any expense charged to the Program. The Organization will adopt a two-level approval process- requiring sign-off by both the Program Manager and the Finance Department to validate incurred costs. Contact person responsible for corrective action: Kristen Miller, Director and David Anderson, Assistant Controller Anticipated Completion Date: August 2025

View Audit 360820 Questioned Costs: $1

Finding 569242 (2024-002)

Material Weakness 2024

McLeod Health

SC

Cash Management Material Weakness § 200.302 § 200.305

Condition: The Organization did not have a formal cash management policy in place for the period under audit. Planned Corrective Action: The Organization implemented a Federal Awards Administration Policy which includes a formal cash management policy in February 2025. Contact person responsible f...

Condition: The Organization did not have a formal cash management policy in place for the period under audit. Planned Corrective Action: The Organization implemented a Federal Awards Administration Policy which includes a formal cash management policy in February 2025. Contact person responsible for corrective action: Valeria Watson Anticipated Completion Date: February 2025

View Audit 360820

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