Corrective Action Plans

Finding 565013 (2024-001)

Significant Deficiency 2024

FL

Cash Management Reporting Matching / Level of Effort / Earmarking § 200.303

2024-001 GRANT REPORTING U.S. Department of Treasury ALN 21.027 – Coronavirus State and Local Fiscal Recovery Funds Contract No. 23.saa.900.46 (2023) Passed through the Florida Department of State 2024 Funding Repeat Finding Criteria: 2 CFR 200.303 requires non-federal entities to establish and main...

2024-001 GRANT REPORTING U.S. Department of Treasury ALN 21.027 – Coronavirus State and Local Fiscal Recovery Funds Contract No. 23.saa.900.46 (2023) Passed through the Florida Department of State 2024 Funding Repeat Finding Criteria: 2 CFR 200.303 requires non-federal entities to establish and maintain effective internal controls. Reports and reimbursement requests should be subject to independent review for the full fiscal year to verify completeness, validity and timeliness of submission. The grant agreement requires quarterly progress reports to be filed with the pass through entity, Florida Department of State. Condition: Review of quarterly reports was not always documented by City officials before submittal by their third party consultant. Cause of condition: The department at the City that is responsible for managing the grant did not originally have a process in place to document their review of progress reports submitted to the Florida Department of State by their third party consultant. Potential effect of condition: Reports submitted to the Florida Department of State may be incomplete, include errors, or be submitted late. Perspective: After this condition was reported as a finding for the fiscal year ending September 30, 2023, the City’s department that is responsible for managing the grant implemented a review process, but it was not in place for the full fiscal year 2024. Questioned costs: None. Recommendation: The City’s department responsible for the grant should continue to perform the review process that was put in place late in fiscal year 2024. Management’s Response: The City updated its control process to ensure that reports prepared by thirdparty consultant are reviewed by City staff prior to being submitted to the grantor. Responsible Parties: Natalia Eckroth, CFO and Christine Aiken, Assistant Finance Director. Anticipated Completion: December 31, 2024.

View Audit 358881

Finding 564783 (2024-001)

Significant Deficiency 2024

The Parenting Center

TX

Allowable Costs / Cost Principles Cash Management Reporting

Subject: Management Response to FY 2024 Single Audit finding 2024-001 Based on changes in The Parenting Center personnel assigned to the Federal Grant programs in early 2024, a decision was made for staff to be cross trained on similar grant programs. In this situation, TPC lost a few key personnel,...

Subject: Management Response to FY 2024 Single Audit finding 2024-001 Based on changes in The Parenting Center personnel assigned to the Federal Grant programs in early 2024, a decision was made for staff to be cross trained on similar grant programs. In this situation, TPC lost a few key personnel, and restructuring was done by cross-training so that there should always be a trained employee that could step from one Youth program to the other and also grant directors that were familiar with each of the Federal Grant programs. In doing this, personnel costs for some individuals have to be spread across multiple grants in a given pay period. That spread is tracked and calculated based on time sheets prepared by the employee and approved by their supervisor. At the beginning of the 2024 fiscal period, if a grant employee used PTO, their PTO continued to be charged to the grant they had been hired under and not spread according to time sheets, since the budgets had been prepared in October 2023 with that job basis. However, at the beginning of the new grant year in October 2024, it appeared more equitable to spread PTO for a grant employee based on the FTE they were budgeted in each grant. The PTO is not earned in one pay period, so I do not believe using the time sheet that could fluctuate between grants each pay period matches how they earn the PTO as well as using the FTE percentage does. The alloca􀆟on of time was not smooth throughout the year, but the change was made as practice made it clear that the second method was a more accurate depiction of what was happening. We are commitied to the spread as it was being done at the end of FY 2024. Starting FY 2025, our internal control procedures specify allocations of hours worked being based on the employee time sheets and allocations of PTO being based on the FTE assignments of the employee.

View Audit 358840

Finding 564768 (2024-004)

Material Weakness 2024

Unified School District No. 431 Hoisington, Kansas

KS

Cash Management Material Weakness Reporting

MATERIAL WEAKNESS 2024-004 – Education Stabilization Fund - Reporting Condition The quarterly reports had incorrect expenditures reported for the ESSER III award. Recommendation Reporting methods required by the awarding agency should be well understood, and an individual other than the preparer ...

MATERIAL WEAKNESS 2024-004 – Education Stabilization Fund - Reporting Condition The quarterly reports had incorrect expenditures reported for the ESSER III award. Recommendation Reporting methods required by the awarding agency should be well understood, and an individual other than the preparer should review all reports prior to their submission. Comments on the Finding The District is aware of the oversight and has implemented procedures to prevent this in the future. Actions Taken As of the date of this notice, an individual other than the one preparing the ESSER reporting will be asked to review it, prior to submission.

View Audit 358831

Finding 564593 (2024-005)

Significant Deficiency 2024

Goshen Community Schools

IN

Cash Management Subrecipient Monitoring Significant Deficiency § 200.303

FINDING 2024-005 Finding Subject: Special Education Cluster (IDEA) - Internal Controls Contact Person Responsible for Corrective Action: Whitney Dixon, Treasurer Contact Phone Number: 574-533-8631 Views of Responsible Official: We concur with the finding. Description of Corrective Action Plan: Cash ...

FINDING 2024-005 Finding Subject: Special Education Cluster (IDEA) - Internal Controls Contact Person Responsible for Corrective Action: Whitney Dixon, Treasurer Contact Phone Number: 574-533-8631 Views of Responsible Official: We concur with the finding. Description of Corrective Action Plan: Cash Management Requests for reimbursement will not be submitted until the Treasurer has attached the supporting documentation from the financial software system (member schools will provide documentation). The documentation will be reviewed and approved by the Executive Director of ECSEC prior to submission to the Treasurer. The reimbursement request will require an approval signature from the Chief Financial Officer/Treasurer prior to submittal. Anticipated Completion Date: June 2025

View Audit 358719

Finding 564509 (2024-001)

Significant Deficiency 2024

Northwest Hills Council of Governments

CT

Subrecipient Monitoring Cash Management Reporting

The Council has hired a grant financial manager to handle all grant and financial related reporting. The Council will develop, improve, and implement policies and procedures for grant reimbursement requests. This will reduce or eliminate delays when potential errors are avoided or detected and corre...

The Council has hired a grant financial manager to handle all grant and financial related reporting. The Council will develop, improve, and implement policies and procedures for grant reimbursement requests. This will reduce or eliminate delays when potential errors are avoided or detected and corrected timelier.

View Audit 358636

Finding 564425 (2024-102)

Significant Deficiency 2024

B J Enterprises, Inc.

AZ

Cash Management Reporting Matching / Level of Effort / Earmarking § 200.303

REFERENCE: 2024-102 CFDA NUMBER: 10.558 – CHILD AND ADULT CARE FOOD PROGRAM U.S. DEPARTMENT OF AGRICULTURE - FOOD AND NUTRITION - 2024 PASSED THROUGH ARIZONA STATE DEPARTMENT OF EDUCATION GRANT NUMBER 6AZ300003 CLIENT RESPONSE AND CORRECTIVE ACTION PLAN We concur with the condition. 1. Name of the...

REFERENCE: 2024-102 CFDA NUMBER: 10.558 – CHILD AND ADULT CARE FOOD PROGRAM U.S. DEPARTMENT OF AGRICULTURE - FOOD AND NUTRITION - 2024 PASSED THROUGH ARIZONA STATE DEPARTMENT OF EDUCATION GRANT NUMBER 6AZ300003 CLIENT RESPONSE AND CORRECTIVE ACTION PLAN We concur with the condition. 1. Name of the contact person responsible for corrective action: Katie O’Neill, MPH, RD 2. Corrective action planned: B J Enterprises has hired a Payroll Service that double checks the timesheets each month. Both the Director and Assistant Director will double check the Administrative costs prior to submitting that month’s claim in order to ensure that the administrative costs are accurately reported. 3. Anticipated completion date: June 2025

View Audit 358561

Finding 564424 (2024-101)

Significant Deficiency 2024

B J Enterprises, Inc.

AZ

Procurement, Suspension & Debarment Cash Management Eligibility § 200.303

REFERENCE: 2024-101 REPEAT FINDING REFERENCE: 2023-001 CFDA NUMBER: 10.558 – CHILD AND ADULT CARE FOOD PROGRAM U.S. DEPARTMENT OF AGRICULTURE - FOOD AND NUTRITION - 2024 PASSED THROUGH ARIZONA STATE DEPARTMENT OF EDUCATION GRANT NUMBER 6AZ300003 CLIENT RESPONSE AND CORRECTIVE ACTION PLAN We concur ...

REFERENCE: 2024-101 REPEAT FINDING REFERENCE: 2023-001 CFDA NUMBER: 10.558 – CHILD AND ADULT CARE FOOD PROGRAM U.S. DEPARTMENT OF AGRICULTURE - FOOD AND NUTRITION - 2024 PASSED THROUGH ARIZONA STATE DEPARTMENT OF EDUCATION GRANT NUMBER 6AZ300003 CLIENT RESPONSE AND CORRECTIVE ACTION PLAN We concur with the condition. 1. Name of the contact person responsible for corrective action: Katie O’Neill, MPH, RD 2. Corrective action planned: The menu reader (Area Coordinator) will double check the meal counts to the menus to ensure all meal counts: * are clerically accurate; * are claimed for providers own, only when day care children are present; * are claimed only when children are present to eat those meals and; * are claimed only when 2 snacks and 1 meal or 2 meals and 1 snack are claimed for each child. The menu reader will double check the list of Income Eligible providers each month to make sure providers’ own are claimed only when we have the Income Affidavits. The Director will re-train the menu readers in these specific areas at the next staff meeting and through virtual training. 3. Anticipated completion date: June 2025 through October 2025

View Audit 358561

Finding 564411 (2024-002)

Significant Deficiency 2024

City of Marquette, Michigan

MI

Subrecipient Monitoring Internal Control / Segregation of Duties Cash Management § 200.303

2024-002 – Internal Controls Over Reporting Corrective Action Plan: The City will develop and implement procedures that require all reports be reviewed by a responsible City official, other than the preparer, prior to being submitted to a federal reporting agency. Responsible Party(ies): o Chief ...

2024-002 – Internal Controls Over Reporting Corrective Action Plan: The City will develop and implement procedures that require all reports be reviewed by a responsible City official, other than the preparer, prior to being submitted to a federal reporting agency. Responsible Party(ies): o Chief Financial Officer o City Manager Anticipated Completion Date: September 30, 2025

View Audit 358521

Finding 564410 (2024-001)

Significant Deficiency 2024

City of Marquette, Michigan

MI

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

reports be reviewed by a responsible City official prior to being submitted to a federal reporting agency. Responsible Party(ies): o Chief Financial Officer o City Manager Anticipated Completion Date: September 30, 2025

View Audit 358521

Finding 564274 (2024-003)

Significant Deficiency 2024

East River Legal Services Corporation

SD

Internal Control / Segregation of Duties Cash Management Eligibility

Federal Agency Name: Legal Services Corporation Program Name: Legal Services Corporation – Basic Field Grant FFAL#: 09-542026 Finding Summary: Testing identified one case in which the U.S. Citizen Attestation was not obtained and one case in which documentation was not obtained and retained within ...

Federal Agency Name: Legal Services Corporation Program Name: Legal Services Corporation – Basic Field Grant FFAL#: 09-542026 Finding Summary: Testing identified one case in which the U.S. Citizen Attestation was not obtained and one case in which documentation was not obtained and retained within the case file detailing immigration documents being received and reviewed. Responsible Individuals: Lea Wroblewski, Executive Director. Corrective Action Plan: The Organization will communicate to staff the importance of ensuring all required case file documentation is obtained and retained as required by the federal program. The compliance officer will review case file documentation for compliance after the case is closed and will provide staff training as needed to improve compliance. Completion Date: May 2025

View Audit 358389

Finding 564258 (2024-001)

Material Weakness 2024

Lakeland Union High School

WI

Cash Management Reporting

Condition: The District audit resulted in a material restatement to fund balance/net position that was detected by auditing procedures. Plan: The District acknowledges the finding and will continue to review new standards as part of the fiscal audit process. Anticipated Date of Completion: The Distr...

Condition: The District audit resulted in a material restatement to fund balance/net position that was detected by auditing procedures. Plan: The District acknowledges the finding and will continue to review new standards as part of the fiscal audit process. Anticipated Date of Completion: The District will immediately implement yearly review of new standards as part of the fiscal audit process.

View Audit 358371

Finding 563959 (2024-001)

Significant Deficiency 2024

Greenville County Commission on Alcohol and Drug Abuse

SC

Cash Management

Procedures have been put in place to request reimbursements timely on a monthly basis.

View Audit 358124

Finding 563936 (2024-001)

Material Weakness 2024

Trees Forever, Inc.

IA

Cash Management Internal Control / Segregation of Duties

Finding 2024-001 – Review of Expense Details for Compliance Condition: From the selections made for internal controls testing, the auditor noted no review/approval for compliance with the terms of the grant agreement was conducted prior to submission of the costs to the grantor. Recommendation: W...

Finding 2024-001 – Review of Expense Details for Compliance Condition: From the selections made for internal controls testing, the auditor noted no review/approval for compliance with the terms of the grant agreement was conducted prior to submission of the costs to the grantor. Recommendation: We recommend management implement processes and controls to perform a review of expenses being submitted for reimbursement to document approval of costs in compliance with the terms of the grant. View of responsible officials and planned corrective actions: Management agrees with the finding and will conduct an internal review of federal expenditures for compliance with the requirements applicable to each federal grant received prior to submission for reimbursement. Anticipated Completion Date: May 31, 2025

View Audit 358111

Finding 563849 (2024-001)

Significant Deficiency 2024

School District 12 Education Foundation Dba Five Star Education Foundation

CO

Reporting Cash Management

Finding 2024-001: Late Submission of Reports Audit Finding: School District 12 Education Foundation (dba Five Star Education Foundation) is required to submit Monthly Financial Reports by the 10th of each month for the periods January through February and by the 15th of each month for the remain...

Finding 2024-001: Late Submission of Reports Audit Finding: School District 12 Education Foundation (dba Five Star Education Foundation) is required to submit Monthly Financial Reports by the 10th of each month for the periods January through February and by the 15th of each month for the remaining months through December. In addition, School District 12 Education Foundation (dba Five Star Education Foundation) is required to submit Quarterly Reports by the 15th of each month. In our audit, we found that 2 out of 8 Reports tested were submitted after the 15th of the following month. After reviewing all the reports with School District 12 Education Foundation (dba Five Star Education Foundation), we noted 3 monthly reports, out of a total of 50 required reports, and 7 quarterly reports, out of a total of 25 required reports, were submitted untimely Audit Recommendation: We recommend School District 12 Education Foundation (dba Five Star Education Foundation) review and follow policies and procedures to ensure timely submission of reports. Management’s Response and Corrective Action Plan: School District 12 Education Foundation (dba Five Star Education Foundation) agrees with the finding and recommendation. Late submissions occurred due to delays in responses from the grantor and verbal approval of changes in due dates from the grantor. Management will be more proactive in documenting communication regarding reports to ensure that, if they are submitted late, there is clear evidence of approved date modifications, why and what date they were initially submitted. Management is now aware that the grantor’s system only reflects the final submission date once approved, not the initial submission date for reports that required modification at the request of the grantor. To address this, School District 12 Education Foundation (dba Five Star Education Foundation) will implement a process to document the initial submission date along with any backup documentation of delays, including communications with Adams County or other relevant parties. Additionally, Adams County has a clear policy that while timely submission of reports is required by the original grant agreement, grantees who communicate a need for additional time by the 15th of the month are considered compliant. Adams County also noted that, based on School District 12 Education Foundation (dba Five Star Education Foundation’s) history and previous communications, they would not consider this a finding or an indicator of poor performance. Moving forward, School District 12 Education Foundation (dba Five Star Education Foundation) will ensure that any anticipated delays are formally communicated to Adams County in writing (not verbally) before the due date and that records of these communications are retained for audit purposes. Contact and Completion Date: Shannon Hancock, 720-972-4342, shannon.hancock@5starfoundation.org, is the primary contact, and the Executive Director at School District 12 Education Foundation (dba Five Star Education Foundation). The corrective action is already in place and active as of this audit.

View Audit 358066

Finding 563807 (2024-001)

Significant Deficiency 2024

Healthwest

MI

Subrecipient Monitoring Internal Control / Segregation of Duties Cash Management § 200.305

Finding 2024-001: Cash Management Federal Grant – ALN 93.788 and ALN 93.959 Condition – During testing, it was noted that cash was requested prior to disbursement of funds by a month or more. Corrective Action –HealthWest finance management will conduct a mandatory staff training session for all r...

Finding 2024-001: Cash Management Federal Grant – ALN 93.788 and ALN 93.959 Condition – During testing, it was noted that cash was requested prior to disbursement of funds by a month or more. Corrective Action –HealthWest finance management will conduct a mandatory staff training session for all relevant staff on cash management requirements, including timing of cash requests, documentation of expenditures, and consequences of non-compliance. Refresher grant compliance and cash management policy review and training will be incorporated into annual training for all grant management personnel. HealthWest will update grant pre-draw process to require a documented review and approval of all cash draw requests by finance leadership or designee ensuring drawdowns are supported by general ledger expenditure activity reports. Contract Person – Brandy Carlson, Chief Financial Officer Anticipated Completion Date – June 30, 2025

View Audit 358023

Finding 563602 (2024-003)

Significant Deficiency 2024

Olmsted County Housing and Redevelopment Authority

MN

HUD Housing Programs Matching / Level of Effort / Earmarking Internal Control / Segregation of Duties

Audit Finding Number: 2024-003 Cash Management Agency: Department of Housing and Urban Development Responsible Person, Title: Karla Strain, Assistant Controller Completion date: 5/15/2025 Agency Response: Concur Corrective Action Plan: In response to these findings, the Authority has reviewed and ...

Audit Finding Number: 2024-003 Cash Management Agency: Department of Housing and Urban Development Responsible Person, Title: Karla Strain, Assistant Controller Completion date: 5/15/2025 Agency Response: Concur Corrective Action Plan: In response to these findings, the Authority has reviewed and revised its Capital Fund cash management procedures to ensure full compliance with the Capital Fund Handbook. The updated procedures have been reviewed in collaboration with both the Housing Project Manager and the Housing Program Manager. Invoices will be organized to fulfil the monthly obligation and paid within three days of the fund draw. To prevent recurrence and ensure ongoing compliance, the Authority will hold monthly meetings to review project timelines and cash flow needs. Communication frequency will increase during complex, multi-phase projects to support effective oversight and coordination. Furthermore, updated policy and payment procedures will be clearly communicated to all current and future vendors to ensure alignment with federal regulations. These corrective actions reflect the Authority’s commitment to improved financial oversight and adherence to all applicable funding regulations.

View Audit 357879

Finding 563587 (2024-002)

Significant Deficiency 2024

Western Maine Community Action, Inc.

ME

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

To address this issue identified with nonpayroll employee disbursements, we have implemented a new requirement that all such payments made through payroll must be preceded by a Personnel Action Form. This form must be submitted to HR in advance and signed by the applicable department director and wi...

To address this issue identified with nonpayroll employee disbursements, we have implemented a new requirement that all such payments made through payroll must be preceded by a Personnel Action Form. This form must be submitted to HR in advance and signed by the applicable department director and with the HR Director or CFO. This process ensures that all nonpayroll disbursements are properly reviewed and authorized prior to payment. The new procedure has been communicated to relevant staff and integrated into exisiting workflows to ensure compliance and strengthen internal controls moving forward.

View Audit 357850

Finding 563580 (2024-003)

Significant Deficiency 2024

City of La Habra

CA

Cash Management

The City will update its procedures to ensure the most current school enrollment data is used when determining tier status for day care homes. Before completing any of the provider’s determinations upon enrollment or updating tier determination, the Site Director will double-check the Department of ...

The City will update its procedures to ensure the most current school enrollment data is used when determining tier status for day care homes. Before completing any of the provider’s determinations upon enrollment or updating tier determination, the Site Director will double-check the Department of Education website to ensure the City uses the most updated data.

View Audit 357845

Finding 563032 (2024-026)

Material Weakness 2024

City of Baltimore, Maryland

MD

Cash Management Subrecipient Monitoring § 200.302 § 200.303

Finding 2024-026 U.S. Department of Health and Human Services AL No. 93.940 HIV Prevention Activities Health Department Based Programs Material Weakness in Internal Controls and Noncompliance over Cash Management Repeat Finding: Yes; 2023-022 Auditee’s Corrective Action Plan: BCHD fiscal department ...

Finding 2024-026 U.S. Department of Health and Human Services AL No. 93.940 HIV Prevention Activities Health Department Based Programs Material Weakness in Internal Controls and Noncompliance over Cash Management Repeat Finding: Yes; 2023-022 Auditee’s Corrective Action Plan: BCHD fiscal department continues to revise its internal processes to strengthen capacity and to ensure compliance with 2 CFR 200 by implementing the following: A. Comprehensive staff training, supported by documented Standard Operating Procedures, training guides and updated policies which will include processes for timely submission of grant reports with required fiscal approvals. B. Create a standard reconciliation process that will ensure expenditures reported on required grantor reports are properly reflected in the general ledger in addition to clearly identifying variances from the SEFA due to timing. C. Created an internal comprehensive grants tracker via Smartsheet which includes all grant award periods, reporting requirements, due dates and other pertinent grant award data. Contact Person: Unyime Ekpa, Chief Financial Officer, Baltimore City Health Department Completion Date: September 30, 2025

View Audit 357839

Finding 562944 (2024-024)

Material Weakness 2024

City of Baltimore, Maryland

MD

Cash Management Subrecipient Monitoring § 200.302 § 200.303

Finding 2024-024 U.S. Department of Health and Human Services AL No. 93.914 HIV Emergency Relief Project Grants Material Weakness in Internal Controls and Noncompliance over Cash Management Repeat Finding: Yes; 2023-020 Auditee’s Corrective Action Plan: BCHD fiscal department continues to revise its...

Finding 2024-024 U.S. Department of Health and Human Services AL No. 93.914 HIV Emergency Relief Project Grants Material Weakness in Internal Controls and Noncompliance over Cash Management Repeat Finding: Yes; 2023-020 Auditee’s Corrective Action Plan: BCHD fiscal department continues to revise its internal processes to strengthen capacity and to ensure compliance with 2 CFR 200 by implementing the following: A. Comprehensive staff training, supported by documented Standard Operating Procedures, training guides and updated policies which will include processes for timely submission of grant reports with required fiscal approvals. B. Create a standard reconciliation process that will ensure expenditures reported on required grantor reports are properly reflected in the general ledger in addition to clearly identifying variances from the SEFA due to timing. C. Created an internal comprehensive grants tracker via Smartsheet which includes all grant award periods, reporting requirements, due dates and other pertinent grant award data. Contact Person: Unyime Ekpa, Chief Financial Officer, Baltimore City Health Department Completion Date: September 30, 2025

View Audit 357839

Finding 562862 (2024-019)

Significant Deficiency 2024

City of Baltimore, Maryland

MD

Cash Management Subrecipient Monitoring § 200.302 § 200.303

Finding 2024-019 U.S. Department of Health and Human Services AL No. 93.686 Ending the HIV Epidemic: A Plan for America Significant Deficiency in Internal Controls and Noncompliance over Cash Management Repeat Finding: No Auditee’s Corrective Action Plan: BCHD fiscal department continues to revise i...

Finding 2024-019 U.S. Department of Health and Human Services AL No. 93.686 Ending the HIV Epidemic: A Plan for America Significant Deficiency in Internal Controls and Noncompliance over Cash Management Repeat Finding: No Auditee’s Corrective Action Plan: BCHD fiscal department continues to revise its internal processes to strengthen capacity and to ensure compliance with 2 CFR 200 by implementing the following: A. Comprehensive staff training, supported by documented Standard Operating Procedures, training guides and updated policies which will include processes for timely submission of grant reports with required fiscal approvals. B. Create a standard reconciliation process that will ensure expenditures reported on required grantor reports are properly reflected in the general ledger in addition to clearly identifying variances from the SEFA due to timing. C. Created an internal comprehensive grants tracker via Smartsheet which includes all grant award periods, reporting requirements, due dates and other pertinent grant award data. Contact Person: Unyime Ekpa, Chief Financial Officer, Baltimore City Health Department Completion Date: September 30, 2025

View Audit 357839

Finding 562452 (2024-012)

Significant Deficiency 2024

City of Baltimore, Maryland

MD

Subrecipient Monitoring Cash Management Eligibility § 200.303

Finding 2024-012 U.S. Department of Housing and Urban Development (HUD) AL No. 14.241 Housing Opportunities for Persons with AIDS Significant Deficiency in Internal Controls and Noncompliance over Eligibility Repeat Finding: Yes; 2023-009 Auditee’s Corrective Action Plan: Condition #1 Response MOHS ...

Finding 2024-012 U.S. Department of Housing and Urban Development (HUD) AL No. 14.241 Housing Opportunities for Persons with AIDS Significant Deficiency in Internal Controls and Noncompliance over Eligibility Repeat Finding: Yes; 2023-009 Auditee’s Corrective Action Plan: Condition #1 Response MOHS acknowledges that 1 of 60 files did not have evidence of the case manager’s review of the file for eligibility requirements. Corrective Action: The HAP Housing Contract Specialist will conduct an annual review of the client eligibility documentation to ensure that all eligibility documentation is maintained in the client’s file. Condition #2 Response MOHS acknowledges that 1 out of 60 selections did not contain the rent calculation worksheet. Corrective Action: MOHS collects client income at intake and annually to determine eligibility and the tenant’s rent portion. The rent calculation worksheet ensures that the tenant’s rent portion does not exceed 30% of the client’s income. This rent calculation worksheet and income verification is maintained in the client’s file. Condition #3 Response MOHS acknowledges the 1 out of 60 selections did not have evidence of property inspection. Corrective Action: MOHS requires that all housing units under the program be inspected prior to the client’s lease up and annually. We will ensure that units assisted under the program are inspected annually and the passed inspection is maintained in the client’s file. Condition #4 Response MOHS acknowledges that 1 out of 60 selections did not have the supporting third-party documentation of income. Corrective Action: MOHS policy requires that clients are required to submit third party verification of income, assets, and medical expenses at program entry and annual recertification to ensure proper calculation of tenant rent. Contact Person: Lakeysha Williams, Director of Programs, Mayor’s Office of Homeless Services Completion Date: April 7, 2025

View Audit 357839

Finding 562451 (2024-011)

Material Weakness 2024

City of Baltimore, Maryland

MD

Cash Management Subrecipient Monitoring § 200.303

Finding 2024-011 U.S. Department of Housing and Urban Development (HUD) AL No. 14.241 Housing Opportunities for Persons with AIDS Material Weakness in Internal Controls and Noncompliance over Cash Management Repeat Finding: Yes; 2023-008 Auditee’s Corrective Action Plan: Condition #1 MOHS Fiscal kno...

Finding 2024-011 U.S. Department of Housing and Urban Development (HUD) AL No. 14.241 Housing Opportunities for Persons with AIDS Material Weakness in Internal Controls and Noncompliance over Cash Management Repeat Finding: Yes; 2023-008 Auditee’s Corrective Action Plan: Condition #1 MOHS Fiscal knowledges the finding that 2 out of 10 selections had not evidence of approval of the drawdown request and management. Condition #2 MOHS fiscal acknowledges that 1 of 10 selections, there was no evidence that the drawdown request was submitted on the IDIS portal Corrective Action With the implementation of the “Fiscal and Compliance Manual”, MOHS Fiscal staff are now required to maintains copies of the Submitted expenditure reports to the Fiscal “G drive”. For draws, MOHS Fiscal Staff are now required to adopt a naming conversion for each grant, draw request, Confirmation of payment posting to the GL, save supporting documentation, including the proof of the IDIS voucher) to the Fiscal “G drive” and complete reconciliations. Contact Person: Diamond Okojie, Fiscal Director, Mayor’s Office of Homeless Services Completion Date: April 7, 2025

View Audit 357839

Finding 562210 (2024-002)

Significant Deficiency 2024

Independent Housing Ii, Inc.--Costello House 022-Ee-035

MA

HUD Housing Programs Cash Management

FINDINGS - MAJOR FEDERAL AWARD PROGRAM AUDIT Department of Housing and Urban Development Finding, 2024-002: Section 202 Supportive Housing for the Elderly Program, Capital Advance - Accumulated Balance, CFDA 14.157. RECOMMENDATION The auditor recommends depositing the surplus cash amount of $4,6...

FINDINGS - MAJOR FEDERAL AWARD PROGRAM AUDIT Department of Housing and Urban Development Finding, 2024-002: Section 202 Supportive Housing for the Elderly Program, Capital Advance - Accumulated Balance, CFDA 14.157. RECOMMENDATION The auditor recommends depositing the surplus cash amount of $4,695 into the residual receipts account immediately. The auditor also recommends that the management company continue to monitor the 60 days after year-end deadline and transmit the funds to the residual receipts account prior to this deadline, if applicable, in future years. ACTION TAKEN Management has deposited the surplus cash amount of $4,695 into the residual receipts account on March 31, 2025.

View Audit 357809

Finding 562208 (2024-002)

Significant Deficiency 2024

Highland House, Inc. 023-Eh-276

MA

HUD Housing Programs Cash Management

FINDINGS - MAJOR FEDERAL AWARD PROGRAM AUDIT Department of Housing and Urban Development Finding, 2024-002: Major Programs: Major Program: Section 202 Supportive Housing for the Elderly, Federal Assistance Listing Number 14.157 RECOMMENDATION The auditor recommends depositing surplus cash of $7,...

FINDINGS - MAJOR FEDERAL AWARD PROGRAM AUDIT Department of Housing and Urban Development Finding, 2024-002: Major Programs: Major Program: Section 202 Supportive Housing for the Elderly, Federal Assistance Listing Number 14.157 RECOMMENDATION The auditor recommends depositing surplus cash of $7,183 into the residual receipts account ACTION TAKEN Management has deposited the surplus cash amount of $7,183 into the residual receipts account on March 31, 2025.

View Audit 357808

Corrective Action Plans

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