Corrective Action Plans

Finding 571474 (2024-005)

None 2024

FL

Questioned Costs HUD Housing Programs Cash Management

Finding 2024-005: Residual Receipts Deposit: Recommendation: The Project needs to determine if these funds must be submitted to the new owner. Action Taken: To be determined.

View Audit 362385 Questioned Costs: $1

Finding 571435 (2024-002)

Material Weakness 2024

Hope Shines Bright Holding Company, Inc.

NV

Allowable Costs / Cost Principles Internal Control / Segregation of Duties Cash Management § 200.62

2004-002: Controls over Allowable Costs, etc. St. Jude’s Ranch for Children (the parent entity of HSB Holding Company) acknowledges that weaknesses in the financial oversight process contributed to this finding. Specifically, limited knowledge of Generally Accepted Accounting Principles (GAAP) and ...

2004-002: Controls over Allowable Costs, etc. St. Jude’s Ranch for Children (the parent entity of HSB Holding Company) acknowledges that weaknesses in the financial oversight process contributed to this finding. Specifically, limited knowledge of Generally Accepted Accounting Principles (GAAP) and federal cost principles by key financial personnel led to misclassification of costs and errors in reimbursement requests in a new type of grant unfamiliar to the accounting team. In response, the organization is restructuring its finance department to ensure that individuals with appropriate qualifications and experience in nonprofit GAAP and federal grant compliance are responsible for reviewing accounting records and reimbursement requests. This includes a new Chief Financial Officer with demonstrated experience in federal grant accounting and compliance and a dedicated grants manager to prepare all reimbursement submissions under the oversight of the CFO.

View Audit 362369

Finding 571396 (2024-002)

None 2024

Adams County, Colorado

CO

Questioned Costs Eligibility Cash Management

Condition: During our testing of 40 Foster Care IV-E benefit transactions, we noted one sample out of forty total samples where the individual receiving payment under Foster Care IV-E was not eligible as the individual did not meet the eligibility requirement of living with a parent or specified rel...

Condition: During our testing of 40 Foster Care IV-E benefit transactions, we noted one sample out of forty total samples where the individual receiving payment under Foster Care IV-E was not eligible as the individual did not meet the eligibility requirement of living with a parent or specified relative during the required timeframe. Recommendation: We recommend the County collaborate with the Colorado Department of Human Services to ensure that reimbursements under Foster Care IV-E only occur for individuals that are eligible under the Foster Care IV-E Program. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to the finding: The Adams County Human Services (ADHS) finance staff will implement a monthly review comparing the IV-E status report in the ADHS Mango application to the monthly Discoverer payments report from the State of Colorado system. This monthly process should show IV-E payments made for clients who were flagged non-IV eligible. If errors are found, ADHS will send a list of the clients and payments in question to the state for their review and correction. ADHS finance staff will also verify that we have correctly entered the client eligibility determination in the state system. Name of the contact person responsible for corrective action: Maurice Stenberg Planned completion date for corrective action plan: December 31, 2025

View Audit 362347 Questioned Costs: $1

Finding 571328 (2024-006)

Significant Deficiency 2024

Morris Colllege

SC

Cash Management Internal Control / Segregation of Duties

Management will take necessary steps to adopt a cash management policy that meets all the requirements. The College has put a reconciliation process in place to ensure funds are only drawdown after a review and approval of all expenditures has been completed.

View Audit 362285

Finding 571307 (2024-001)

Material Weakness 2024

Lyle School District No. 406

WA

Questioned Costs Internal Control / Segregation of Duties Subrecipient Monitoring

CORRECTIVE ACTION PLAN FOR FINDINGS REPORTED UNDER UNIFORM GUIDANCE Lyle School District No. 406 September 1, 2023 through August 31, 2024 This schedule presents the corrective action the District is planning to take for findings included in this report in accordance with Title 2 U.S. ...

CORRECTIVE ACTION PLAN FOR FINDINGS REPORTED UNDER UNIFORM GUIDANCE Lyle School District No. 406 September 1, 2023 through August 31, 2024 This schedule presents the corrective action the District is planning to take for findings included in this report in accordance with Title 2 U.S. Code of Federal Regulations (CFR) Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Finding ref number: 2024-001 Finding caption: The District did not have adequate controls for ensuring compliance with federal requirements for allowable costs and cost principles and federal wage rate requirements. Name, address, and telephone of District contact person: Susan Carabin, Business Manager PO Box 368 Lyle, WA 98635 (509) 365-2191 Corrective action the auditee plans to take in response to the finding: A new methodology for calculating indirect cost rates has been implemented, including working directly with EGMS staff at the beginning of the fiscal year to document the correct indirect rate per grant (for the 2024-25 fiscal year this was completed in March 2025). The District was previously not aware that OSPI was not modifying the hard coded rate. The District has significantly strengthened its internal controls over expenditures. We've implemented a checklist system for accounts payable, designed to catch errors such as duplicate taxation. Additionally, the District developed a master spreadsheet to reconcile all grant claims monthly, ensuring each claim is reconciled both before and after submission, and upon revenue receipt. Anticipated date to complete the corrective action: March 2025

View Audit 362249 Questioned Costs: $1

Finding 571152 (2024-001)

Significant Deficiency 2024

Hinds Community College District

MS

Student Financial Aid Special Tests & Provisions Matching / Level of Effort / Earmarking

a. Administrator: V.P. Finance/ CFO ....... Victor Parker 601-857-3961 b. Administrator: V.P. Student Services ...... Jennifer Scott-Gilmore 601-857-3250 The District using a Servicer to Deliver Title IV Credit Balances to a card did not provide a URL for the contract to the Department of Education ...

a. Administrator: V.P. Finance/ CFO ....... Victor Parker 601-857-3961 b. Administrator: V.P. Student Services ...... Jennifer Scott-Gilmore 601-857-3250 The District using a Servicer to Deliver Title IV Credit Balances to a card did not provide a URL for the contract to the Department of Education in the Cash Management Contracts Database and disclose the contract on the District's website. b. Corrective Action Planned: The Management has reviewed the District process of delivering Title IV credit balances to students. Management will disclose the third-party contractual agreement to its Servicer as well and provide the URL to the Department of Education via the Cash Management Contracts Database. The anticipated completion date is August 2025.

View Audit 362076

Finding 571138 (2024-001)

Significant Deficiency 2024

Central Texas Senior Ministry

TX

Cash Management Internal Control / Segregation of Duties § 200.303

Management has established and implemented written procedures to ensure future compliance.

View Audit 362038

Finding 571015 (2024-001)

Significant Deficiency 2024

Mrc Crestview Terrace

TX

Questioned Costs Internal Control / Segregation of Duties Cash Management

2024-001 Surplus Cash Payments Recommendation: We recommend management implement a control to ensure the surplus cash payments are deposited into the correct account and in accordance with the Regulatory Agreement. Explanation of disagreement with audit finding: There is no disagreement with the a...

2024-001 Surplus Cash Payments Recommendation: We recommend management implement a control to ensure the surplus cash payments are deposited into the correct account and in accordance with the Regulatory Agreement. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: Management transferred the funds to the correct account and implemented additional procedures to review monthly deposits, ensuring this issue is prevented in the future. Name(s) of the contact person(s) responsible for corrective action: Don Stephens and Michelle Miles. Planned completion date for corrective action plan: As of April 2025, Management is working with their lender, Lument, to have the surplus cash payment transferred from the Reserve for Replacement account to the Residual Receipts account.

View Audit 361975 Questioned Costs: $1

Finding 571007 (2024-002)

Significant Deficiency 2024

Morristown Housing Auhtority

TN

HUD Housing Programs Cash Management § 200.05

TVHS will implement a system to ensure the three-day rule is followed.

View Audit 361942

Finding 570868 (2024-001)

Significant Deficiency 2024

City of Corcoran

MN

Allowable Costs / Cost Principles Procurement, Suspension & Debarment Cash Management § 200.302

Finding 2024-001 Internal Controls Over Compliance for Cash Management, Allowable Costs, Procurement, and Conflicts of Interest 1. Explanation of Disagreement with Audit Finding There is no disagreement with the audit finding. 2. Action Planned in Response to Finding Subsequent to year-end, the City...

Finding 2024-001 Internal Controls Over Compliance for Cash Management, Allowable Costs, Procurement, and Conflicts of Interest 1. Explanation of Disagreement with Audit Finding There is no disagreement with the audit finding. 2. Action Planned in Response to Finding Subsequent to year-end, the City addressed this matter by formally adopting written policies meeting the referenced requirements of the Code of Federal Regulations. 3. Official Responsible The City Administrator is the official responsible for ensuring corrective action. 4. Planned Completion Date June 30, 2025. 5. Plan to Monitor Completion The City Council will be monitoring this Corrective Plan.

View Audit 361794

Finding 570798 (2024-003)

None 2024

Aids Healthcare Foundation

CA

Procurement, Suspension & Debarment Cash Management HUD Housing Programs

Views of Responsible Officials and Planned Corrective Actions The Foundation will ensure that the Contracts Manager assigned to the contract works closely with the Program Staff and the designated contract representative at the granting agency to ensure accurate and timely reporting going forward. ...

Views of Responsible Officials and Planned Corrective Actions The Foundation will ensure that the Contracts Manager assigned to the contract works closely with the Program Staff and the designated contract representative at the granting agency to ensure accurate and timely reporting going forward. Personnel responsible for implementation: Shibu Sam Position of responsible personnel: National Director of Contracts Date of Implementation: August 1, 2025

View Audit 361757

Finding 570615 (2024-001)

Material Weakness 2024

Scott County Redevelopment and Housing Authority

VA

Questioned Costs HUD Housing Programs Cash Management

Please accept this letter as my response for our audit finding. The inter-program amount of $106,589.00 reported at the end ofFY2024 between the Public Housing and Housing Choice Voucher (HCV) programs occurred because of lack of funding from HUD. Our HAP funding has also been declining and we are n...

Please accept this letter as my response for our audit finding. The inter-program amount of $106,589.00 reported at the end ofFY2024 between the Public Housing and Housing Choice Voucher (HCV) programs occurred because of lack of funding from HUD. Our HAP funding has also been declining and we are not receiving enough funding to cover the expenses for our program. Currently, we are working with our Field Representative, Wilma Henry and Finance Management, Lin Wang to release our reserves to resolve this issue.

View Audit 361639 Questioned Costs: $1

Finding 570584 (2024-005)

Significant Deficiency 2024

Huron County

MI

Student Financial Aid Cash Management Reporting

2024-005 TIMELINESS OF FEDERAL REPORTING County personnel responsible for resolution: Timothy Rutkowski, Prosecuting Attorney Ann Schultz, Friend of the Court/Director of Juvenile Services Corrective action plan response: The County will review current procedures and implement new procedures as nece...

2024-005 TIMELINESS OF FEDERAL REPORTING County personnel responsible for resolution: Timothy Rutkowski, Prosecuting Attorney Ann Schultz, Friend of the Court/Director of Juvenile Services Corrective action plan response: The County will review current procedures and implement new procedures as necessary to ensure all reports are completed, reviewed, and submitted timely. Anticipated completion date: December 31, 2025

View Audit 361620

Finding 570557 (2024-001)

Material Weakness 2024

Wise County Redevelopment and Housing Authority

VA

Allowable Costs / Cost Principles Cash Management HUD Housing Programs

Corrective Action Plan: The Housing Authority understands that our prior procedure was incorrect and inadequate for capital fund drawdowns. The Finance Director has been instructed on the proper procedure of capital fund drawdowns to first reconcile LOCCS requests to vendor billing to properly reque...

Corrective Action Plan: The Housing Authority understands that our prior procedure was incorrect and inadequate for capital fund drawdowns. The Finance Director has been instructed on the proper procedure of capital fund drawdowns to first reconcile LOCCS requests to vendor billing to properly request and expend funds with the three-day period.

View Audit 361578

Finding 570553 (2024-004)

Significant Deficiency 2024

City of Pine River

MN

Allowable Costs / Cost Principles Procurement, Suspension & Debarment Cash Management § 200.302

Finding 2024-004 Internal Controls Over Compliance for Cash Management, Allowable Costs, Procurement, and Conflicts of Interest 1. Explanation of Disagreement with Audit Finding There is no disagreement with the audit finding. 2. Action Planned in Response to Finding The City will adopt the referenc...

Finding 2024-004 Internal Controls Over Compliance for Cash Management, Allowable Costs, Procurement, and Conflicts of Interest 1. Explanation of Disagreement with Audit Finding There is no disagreement with the audit finding. 2. Action Planned in Response to Finding The City will adopt the referenced policies in order to comply with Uniform Guidance. 3. Official Responsible Nicole Coler, City Clerk/Treasurer, is the official responsible for ensuring corrective action. 4. Planned Completion Date December 31, 2025. 5. Plan to Monitor Completion The City Council will be monitoring this Corrective Plan.

View Audit 361564

Finding 570520 (2024-001)

Material Weakness 2024

Village of Streamwood

IL

Cash Management Reporting Internal Control / Segregation of Duties

Condition: During audit fieldwork, our testing resulted in a restatement of net position in order to correct capital assets that were improperly recorded in prior years. Corrective Action Plan: The Village and Finance Director will implement internal controls to properly record capital assets on a t...

Condition: During audit fieldwork, our testing resulted in a restatement of net position in order to correct capital assets that were improperly recorded in prior years. Corrective Action Plan: The Village and Finance Director will implement internal controls to properly record capital assets on a timely basis prior to audit fieldwork. Anticipated Date of Completion: December 31, 2025 Name of Contact Person: Josh Peacock, Finance Director Management Response: In conjunction with our auditors, the Village identified certain capital assets that were under the capitalization policy threshold. During 2024, Village staff took the opportunity to clean up (identify and remove) these items which resulted in the restatement. The Village will be more diligent in following the capitalization policy moving forward and do not see this as an area of concern for the foreseeable future.

View Audit 361511

Finding 570486 (2024-001)

Material Weakness 2024

Community Coalition Against Human Trafficking

TN

Questioned Costs Subrecipient Monitoring Cash Management § 200.403 § 200.430

Management concurs with the recommendation to implement internal controls to ensure all costs charged to the program are accurate, allowable, and properly allocated in accordance with the terms of the federal award, and that there is proper review and approval.

View Audit 361435 Questioned Costs: $1

Finding 570470 (2024-003)

Material Weakness 2024

International Registration Plan, Inc.

VA

Questioned Costs Reporting Allowable Costs / Cost Principles § 200.309 § 200.403

Finding Reference Number: 2024-003 – Period of Performance Federal Program: AL 20.237 High Priority Grant — FMCSA Cluster Name of Contact Person: Tim Adams, CEO Views of Responsible Officials: IRP acknowledges the finding and concurs with the recommendation. Planned Corrective Action: Grant managem...

Finding Reference Number: 2024-003 – Period of Performance Federal Program: AL 20.237 High Priority Grant — FMCSA Cluster Name of Contact Person: Tim Adams, CEO Views of Responsible Officials: IRP acknowledges the finding and concurs with the recommendation. Planned Corrective Action: Grant management procedures have been revised to verify that services are received and costs incurred within the authorized period of performance in accordance with 2 CFR § 200.403 before the costs are charged to a federal award. Staff involved in grant management will receive targeted training on 2 CFR requirements related to period-of-performance compliance and allowable cost timing. Anticipated Completion Date: September 30, 2025

View Audit 361417 Questioned Costs: $1

Finding 570074 (2024-026)

Significant Deficiency 2024

West Central Mental Health Center, Inc.

CO

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

agreement, the Group will implement grant monitoring internal controls and procedures to ensure that expenditures comply with all earmarking limitations specified in grant agreements and approved budgets. These procedures will track expenditures by budget category and verify compliance prior to subm...

agreement, the Group will implement grant monitoring internal controls and procedures to ensure that expenditures comply with all earmarking limitations specified in grant agreements and approved budgets. These procedures will track expenditures by budget category and verify compliance prior to submitting reimbursement requests.

View Audit 361368 Questioned Costs: $1

Finding 570070 (2024-024)

Significant Deficiency 2024

West Central Mental Health Center, Inc.

CO

Questioned Costs Allowable Costs / Cost Principles Subrecipient Monitoring § 200.430

Solvista Health management agrees with the auditor’s finding. In conjunction with the shared services agreement, the Group will implement a system of internal controls that are designed and operating to provide an accurate calculation of payroll costs incurred under the federal programs, including r...

Solvista Health management agrees with the auditor’s finding. In conjunction with the shared services agreement, the Group will implement a system of internal controls that are designed and operating to provide an accurate calculation of payroll costs incurred under the federal programs, including review and monitoring of process and procedures. In addition, documentation ensuring accurate payroll costs allocated to federal programs, along with support of review and approval of such expenses, will be retained in accordance with federal regulations.

View Audit 361368 Questioned Costs: $1

Finding 570066 (2024-023)

Significant Deficiency 2024

West Central Mental Health Center, Inc.

CO

Internal Control / Segregation of Duties Allowable Costs / Cost Principles Cash Management § 200.305

Solvista Health management agrees with the auditor’s finding. In conjunction with the shared services agreement, the Group will ensure that all reimbursable costs are submitted for reimbursement in a timely manner. The Group has significant experience in submitting for reimbursement for federal, sta...

Solvista Health management agrees with the auditor’s finding. In conjunction with the shared services agreement, the Group will ensure that all reimbursable costs are submitted for reimbursement in a timely manner. The Group has significant experience in submitting for reimbursement for federal, state, and similar types of grants and contracts.

View Audit 361368

Finding 570058 (2024-020)

Significant Deficiency 2024

West Central Mental Health Center, Inc.

CO

Allowable Costs / Cost Principles Cash Management Eligibility § 200.334

Solvista Health management agrees with the auditor’s finding. In conjunction with the shared services agreement, the Group will work with management to strengthen its document retention policies and processes and implement internal controls to ensure that all required grant reports are consistently ...

Solvista Health management agrees with the auditor’s finding. In conjunction with the shared services agreement, the Group will work with management to strengthen its document retention policies and processes and implement internal controls to ensure that all required grant reports are consistently reviewed, approved, submitted, retained and retrievable for the required retention period. This includes quarterly reports, expense reimbursement packets submitted to the grantors, project expenditure reports, or other grant-related records necessary to demonstrate compliance with federal reporting and record retention standards under the federal programs.

View Audit 361368

Finding 570053 (2024-016)

Material Weakness 2024

West Central Mental Health Center, Inc.

CO

Questioned Costs Allowable Costs / Cost Principles Cash Management § 200.430

Solvista Health management agrees with the auditor’s finding. In conjunction with the shared services agreement, the Group will design and implement a system of internal controls which includes a review process to ensure accurate use of approved fringe benefit rates in all federal reporting. The Gro...

Solvista Health management agrees with the auditor’s finding. In conjunction with the shared services agreement, the Group will design and implement a system of internal controls which includes a review process to ensure accurate use of approved fringe benefit rates in all federal reporting. The Group will reconcile budgeted and actual fringe benefit costs regularly to ensure continued compliance.

View Audit 361368 Questioned Costs: $1

Finding 570052 (2024-015)

Material Weakness 2024

West Central Mental Health Center, Inc.

CO

Questioned Costs Allowable Costs / Cost Principles Subrecipient Monitoring § 200.430

Solvista Health management agrees with the auditor’s finding. In conjunction with the shared services agreement, the Group will implement a system of internal controls that are designed and operating to provide an accurate accounting of payroll costs incurred under the federal programs, including re...

Solvista Health management agrees with the auditor’s finding. In conjunction with the shared services agreement, the Group will implement a system of internal controls that are designed and operating to provide an accurate accounting of payroll costs incurred under the federal programs, including review and monitoring of processes and procedures. Documentation ensuring accurate payroll costs allocated to federal programs, along with support of review and approval of such charges, will be retained in accordance with federal regulations.

View Audit 361368 Questioned Costs: $1

Finding 570038 (2024-006)

Significant Deficiency 2024

Passage Home

NC

Questioned Costs Allowable Costs / Cost Principles Cash Management

Supportive Services for Veteran Families Assistance Listing No. 64.033 Recommendation: We recommend the Corporation review the expenditures submitted to sales taxes. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to findin...

Supportive Services for Veteran Families Assistance Listing No. 64.033 Recommendation: We recommend the Corporation review the expenditures submitted to sales taxes. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: Within 60 days of audit issuance, the Interim CFO will conduct training for finance staff regarding accounts payable invoices and sales tax requirements and coding. Updated accounts payable policies and procedures include a process to ensure that the CFO reviews and codes sales tax when checks are prepared, approved and signed. Name of the contact person responsible for corrective action: Karen Harshman Planned completion date for corrective action plan: 09/30/2025

View Audit 361326 Questioned Costs: $1

Corrective Action Plans

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