Corrective Action Plans

Finding No. 2023-002 HUD HOME Investment Partnerships Program Federal Assistance Listing Number #14.239 Uniform Guidance Compliance Requirement Code: E-Eligibility Criteria Tenant lease files are required to be maintained and tenant eligibility determined in accordance with the Compliance in State of Oregon Housing and Community Services HOME Program Compliance Manual. Condition In connection with our lease file review we noted four instances of eight tenants tested where management did not provide support that they performed a 3rd party income verification in accordance with policy. Cause Management’s policies with respect to recertifications and eligibility and the maintenance of tenant lease files in accordance with Compliance in State of Oregon Housing and Community Services HOME Program Compliance Manual were not consistently followed. Effect or Potential Effect This could result in units being rented to ineligible tenants. Questioned Costs: Not applicable. Context In connection with the procedures applied to our HOME units testing, four of the eight tenants tested did not have the a 3rd party income verification in accordance with policy. Repeat Finding: Yes - Finding 2022-002 Recommendation Management should establish procedures and monitor compliance with those procedures to ensure that recertifications and correct income verification procedures are performed timely, tenant eligibility is correctly determined and that tenant lease files are properly maintained in accordance with the requirements of Compliance in State of Oregon Housing and Community Services HOME Program Compliance Manual. Views of Responsible Officials For the properties in Washington, they have several sources of HOME funds based on the issuing jurisdiction State, County or City that adds a layer of complexity to the recertification process and due to staffing turnover, both at the properties and REACH main office some of the HOME 3rd party income verifications were missed at recertification. Management has established policies and procedures for complying with the HOME program which includes a centralized tracker for HOME certifications.

STDC concurs with the finding regarding incomplete intake documentation due to the absence of case worker signatures on multiple client intake forms under the Area Agency on Aging (AAA) programs. While client eligibility and demographic information were present, the lack of formal sign-off by the assigned case worker represents a lapse in documentation compliance and internal control. STDC management acknowledges the importance of complete and accurate documentation to uphold program integrity and compliance with the Older Americans Act. We are fully committed to strengthening internal controls, reinforcing training, and implementing procedural safeguards to ensure that all eligibility determinations and service authorizations are properly reviewed and documented. To address this, STDC will reinforce existing policies requiring case worker authorization of client intakes, implement a formal quality assurance checkpoint before service initiation, and provide refresher training to all intake and case management staff. These steps will ensure compliance with documentation standards required under the Older Americans Act and STDC’s own internal procedures. Corrective Action Plan Finding Number: 2023-04 Planned Completion Date: July 31, 2025 Responsible Official: Aging and Disability Services Director Corrective Actions: 1. Reinforce Policy Compliance through Staff Training The Aging and Disability Services Director will conduct mandatory refresher training for all intake and case management staff. The training will emphasize the importance of complete documentation, specifically the requirement to sign and date all applicable forms, including: o Intake Forms 2270 and 2276 o Rights and Responsibilities Form 2275 o Client Information Release Form 2277 o Care Plan o Caregiver Assessment o Consumer Needs Evaluation (CNE) o Evaluation of the Home (Housing Assessment) Staff training shall be verified for completion using: training attendance logs, training agenda, and post-training quiz results. 2. Implement a Secondary Review Process (Quality Assurance Checkpoint) The Aging and Disability Services Director will establish a secondary quality assurance review by the Contract Manager or other designated staff prior to initiating services. The reviewer will confirm that all required forms are fully completed and include both client and case worker signatures. 3. Update Intake Documentation Checklist and Procedures-Attached The Aging and Disability Services Director will revise the internal Required Documentation Checklist to include a checkbox for verifying the presence of AAA staff signatures and dates on all applicable forms. The updated checklist will be implemented in all new client intake files. CASE FILE CHECKLIST 1. Referral and Screening The referral and screening process begins with the Information, Referral, and Assistance (I&R/A) staff, who receive the client’s initial inquiry or service request. Once initial details are collected, the referral is assigned to a designated AAA case manager for follow-up. Screening The case manager reviews the client’s records to verify information gathered during the referral. This step helps determine eligibility (typically for individuals aged 60 and over) and whether the client qualifies for AAA services or should be referred externally. The screening must include: o Medical history o Employment background o Home environment o Self-care ability o Socioeconomic and financial status o Services received in the past o General demographics and needs o Past and current health conditions o Physical, emotional, and cognitive functioning o Living arrangements and home safety o Health insurance coverage and benefits Referral and screening documentation must be included in the client’s file to support coordination, follow-up, and accountability. 2. Intake – Form 2270 (Applicable to Caregiver Support Coordination) This form is required and must be completed by AAA staff or the case manager to collect demographic information necessary to determine eligibility. The form must include: o Initial Intake Completion – Form 2270 o Client Rights and Responsibilities (read and checked off as explained) o Part I – Recipient Identification o Part II – Services Requested o Part III – Emergency Contact Information o Part IV – Relationship to Care Recipient o Part V – Care Recipient Identification AAA staff signature and date 3. Intake – Form 2276 (Applicable to Care Coordination Support) This form is required and must be completed by AAA staff or the case manager to collect demographic information necessary to determine eligibility. The form must include: o Initial Intake Completion – Form 2276 o Client Rights and Responsibilities (read and checked off as explained) o Part I – Recipient Identification o Part II – Services Requested o Part III – Emergency Contact Information o Part IV – If referred, enter referred by; if not, leave blank o AAA staff signature and date Forms must be fully and accurately completed and include the printed name or signature of the AAA staff completing the intake, along with the date. 4. Client Rights and Responsibilities – Form 2275 This form is provided and explained to the client. A copy must be given to the client. The form must include: o Explanation of client rights and responsibilities o Client signature and date Must be signed and dated by the participant/client. 5. Client Information Release – Form 2277 This form serves as authorization to release client information to support assessment, service arrangement, and coordination of care. The form must include: o Individual’s name and WellSky ID o Completion of Parts A, B, and C o Client signature and date in Part C A copy must be provided to the client. 6. Care Plan (15–25 minutes – form attached) The care plan is developed collaboratively with the client and/or caregiver and is based on preferences, identified needs, and available resources. It outlines specific services to be provided and desired outcomes. The Care Plan Form must include: o Complete client information o Type of service (e.g., Respite, Homemaker, Personal Assistance, or other services such as Residential Repair, Health Maintenance, or ERS) o Number of units or hours per day/week (if applicable) o Duration of services o Objectives and care-related goals o Self-care resources o Desired results and measurable outcomes The form must be signed and dated by the client and/or caregiver and AAA staff/Care Coordinator. 7. Caregiver Assessment – AIAAA CAQ E 3.0 (15–25 minutes – form attached) Only applicable for Caregiver Support Coordination case files. This assessment identifies caregiver needs, strengths, limitations, and stressors to support effective care planning. The form must include: o Complete caregiver information o Caregiver needs and profile o Skills and training assessment o Caregiver stress interview o Priority status o Optional targeting categories o Additional notes, if applicable Must include the printed name or signature of the AAA staff completing the assessment and the date of completion. 7. Consumer Needs Evaluation (CNE) (form attached) The CNE documents the client’s impairment level and helps determine eligibility for services. The evaluation must include: o Completion of Parts I–V o Classification of impairment level (low, moderate, or high), based on functional needs o Consideration of mobility, self-care, cognitive ability, and support systems The form must be signed and dated by the AAA staff member completing the evaluation. 8. Comprehensive Assessment & Statement of Need (form attached) This assessment provides a holistic view of the client’s condition and support needs. The form must include: o Complete client information o Documentation of physical, mental, and medical conditions o Identification of mobility limitations o Functional/physical status – check all that apply o List of current services or treatments being received o Family caregiver support o Medication listing, if applicable AAA staff must complete and check all relevant sections to ensure full and accurate documentation. 9. Evaluation of the Home (Housing Assessment – if applicable) Required for requests related to residential repairs or identifying health/safety concerns in the home. The form must include: o Residential status o Client name and address o List of items needing repair The form must be signed and dated by the homeowner/tenant (if applicable) and the AAA staff completing the evaluation.

STDC acknowledges the finding regarding the provision of CSBG-funded services to an individual without verifying household-level eligibility. While this was an isolated incident, it represents a deviation from both federal CSBG guidance (Office of Community Services CSBG Informational Memorandum 139 [OCS IM-149]) and STDC’s internal case management procedures, which require eligibility and service assessments at both the household and individual level. STDC has identified this as a training and documentation oversight. As a result, we are reinforcing compliance through mandatory case management refresher training, enhanced supervision, and internal file reviews to ensure consistent application of household-based eligibility protocols. Corrective Action Plan Finding Number: 2023-03 Planned Completion Date: September 30, 2025 Responsible Official: Community Action Program Manager Corrective Actions to Be Implemented: 1. Mandatory Refresher Training All Community Action Program (CAP) Case managers and intake staff will complete a refresher training on: OCS IM-149 “Strengthening Outcome Through Two-Generation Approaches”; Existing STDC Case Management standards and intake procedures; and proper documentation of household and individual case notes. Trainings will be held annually and during onboarding for new hires. 2. Standard Operating Procedure (SOP) Reinforcement Supervisors will reinforce the use of STDC’s CAP standardized intake, eligibility, and case management forms. Clear instructions will be recirculated to all case managers on verifying and recording household information. In instances where an eligible households is declining additional services, Case Managers will obtain signed affidavits from the individuals declining services or participation. 3. Case Management Packet Review and Update Case Management forms will be reviewed and updated, if needed, to ensure required fields for household size, income, and composition are clearly marked and completed prior to service approval. A standardized affidavit where individuals are declining services or participation in eligible households shall be created to document client refusal of services. 4. Internal Monitoring Protocol The CAP Program Manager will conduct quarterly reviews of a sample of client files to verify household-based eligibility and client file documentation standards. Any deviation will trigger corrective coaching and documentation of follow-up. 5. Documentation Audit Trail All CAP client records must include: o Completed household intake form; o Income verification and eligibility determination; o Corresponding service delivery/case management service authorizations, service delivery plans, and notes. Files lacking required documentation will be flagged and corrected. Continued deficiencies from Case Managers will be noted on annual performance evaluations with individualized employee improvement plans.

Federal Perkins Loan Program Reconciliation Federal Agency: U.S. Department of Education Federal Program Name: Federal Perkins Loan Program Assistance Listing Number: 84.038 Recommendation: We recommend reviewing procedures around Perkins Loan Program funds and implementing reconciliations and review to the third‐party servicer reports. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: The university is in the process of implementing policies and procedures regarding reconciliations for Perkins loan services managed by a 3rd party supplier. Name(s) of the contact person(s) responsible for corrective action: Danyel Tolbert ‐Bursar Planned completion date for corrective action plan: June 30, 2025

Federal Perkins Loan Program Third‐Party Servicer Federal Agency: U.S. Department of Education Federal Program Name: Federal Perkins Loan Program Assistance Listing Number: 84.038 Recommendation: We recommend reviewing procedures and requirements regarding Perkins third party service providers and ensure compliance with regulations. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: The university is in the process of implementing policies and procedures regarding reconciliations for Perkins loan services managed by a 3rd party supplier. Name(s) of the contact person(s) responsible for corrective action: Danyel Tolbert ‐Bursar Planned completion date for corrective action plan: June 30,2025

Finding Number: 2023-006 Finding Title: Eligibility Name of Contact Person Responsible for Corrective Action: Patti Hart – Financial Assistance Supervisor II in conjunction with Kevin DeVriendt – Auditor-Treasurer Corrective Action Planned: This topic will be a standing agenda item on the Public Health and Human Services Income Maintenance unit meeting agendas, being reviewed at least monthly to ensure compliance. Supervisor Hart will review five Medical Assistance (MA) applications or renewals per month, to ensure MAXIS has been updated with the correct asset and income eligibility information. Anticipated Completion Date: May 15, 2025

2023-004 Public Housing Waiting List Tenant Selection – RF (2022-006) In October of 2022 there was no waiting list in the Housing Management Software, there was not a handwritten waitlist that could be located. Staff entered all applications that were located into the software by date and time and with preferences that are in the out-of-date Admissions and Occupancy Policy and Administrative Plan. Documentation was submitted to the San Antonio Field Office in September of 2023 to show the waitlist and the families that have been selected in order of the waitlist or removed at the request of the family.

CORRECTIVE ACTION PLAN Name of the Project: Baten Arms Apartments FHA/CONTACT NO. 114-11227 Audit Firm: M Group, LLP Audit Period: The year ended June 30, 2023 Compliance Review COMMENTS ON FINDINGS AND RECOMMENDATIONS We concur with the findings and recommendations of our auditors regarding our noncompliance as cited in the accompanying Schedule of Findings and Questioned Costs. ACTIONS TAKEN FINDING #2023-003: Section 8 Housing Assistance Payments Program, CFDA: 14.195 and Mortgage Insurance Section 223(f) Insured Loan, CFDA:14.155 CORRECTIVE ACTION TO BE COMPLETED: The Corporation will review and monitor documentation procedures to ensure compliance regarding cash disbursements. We have prepared the corrective action plan as required by the standards applicable to financial statements contained in Government Auditing Standards and by the audit requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principals, and Audit Requirements for Federal Awards. Any questions regarding the above corrective action plan should be directed to Mr. Stewart Grounds.

Contact Person Derek Johnson, Executive Director Corrective Action Plan The Authority will review its policies and procedures over program compliance requirements and continue to provide occupancy training to staff to prevent future exceptions. Planned Completion Date for CAP December 31, 2024

Finding 2023-002: Eligibility Documentation Management’s Response Mid Michigan CAA acknowledges the audit finding regarding the documentation of diaper distribution to income-eligible participants under the Temporary Assistance for Needy Families (TANF) program. We appreciate the opportunity to provide clarification and outline corrective actions. The Diaper Bank Program operated under the oversight of the Michigan Department of Health and Human Services (MDHHS), which conducted regular monitoring and did not identify any concerns related to eligibility or distribution practices during their reviews. In accordance with program requirements, all participating diaper banks were pre-existing programs with access to alternative funding sources. These sources were explicitly intended to support the distribution of diapers to households that did not meet TANF income eligibility criteria. While Mid Michigan CAA did not maintain centralized documentation of the specific funding source used for each distribution, it was understood and communicated to partner entities that TANF-funded diapers were to be reserved for eligible households only. To strengthen internal controls and ensure full compliance with TANF requirements, Mid Michigan CAA has implemented the following measures: 1. Development of a standardized tracking system to document only diapers distributed to each household using TANF funds. 2. Training for all partner entities on eligibility verification procedures and documentation requirements. 3. Periodic internal audits to verify compliance and ensure accurate recordkeeping. Contact Person Responsible for Corrective Action: Eva Rohlman, Outreach & Opportunities Director Anticipated Completion Date: 10/1/2024

As of 2/17/2025 OKVU added sub-coding to the general ledger to identify administrative labor costs under 7000 – Salaries & wages, 7100 – Fringe benefits and 7200 – Payroll taxes bases on direct allocations provided to the payroll system. This information will be provided by report from the payroll system and added via journal entry to the GL.

As of 12/06/2024 OKVU implemented the addition of the Asset Calculation Worksheet to the veteran case file. To ensure compliance the requirement was also added to the discharge file QC checklist and the SSVF policy and procedure manual updated. As of 12/11/2024 all case manager staff were provided training.

N/A - The Healthy Start Program transitioned to another local non-profit October 31, 2023. The Council will no longer have direct control over their corrective action plan.

Auditor's Recommendation: The auditor recommends the Organization enhance the design of its control activities and procedures over the reporting of consumer eligibility dates to ensure that date of eligibility agree between the ILS and DRS systems. Management’s Response: The LIFE Inc. staff have received training on new measures to ensure that the eligibility dates in the databases are consistent. When new Consumers request assistance through the Purchased Services Program, their intake appointments are scheduled simultaneously with those for the Base Grant Services. This coordination helps guarantee that the dates in both databases match. Due date of completion: May 31, 2025 Responsible Official: Program Director, Lidia Taylor

Federal Agency: U.S. Department of Housing and Urban Development Federal Program Titles: Section 8 Housing Choice Vouchers and Mainstream Vouchers Federal Assistance Listing Numbers: 14.871 and 14.879 Noncompliance – N. Special Tests and Provisions – Selections from the Waiting List Non Compliance Material to the Financial Statements: Yes Material Weakness in Internal Control over Compliance for Special Tests and Provisions Criteria: Selections from the Waiting List. The PHA must have written policies in its HCVP administrative plan for selecting applicants from the waiting list and PHA documentation must show that the PHA follows these policies when selecting applicants from the waiting list. Except for as provided in 24 CFR section 982.203(Special admission (non-waiting list)), all families admitted to the program must be selected from the waiting list. “Selection” from the waiting list generally occurs when the PHA notifies a family whose name reaches the top of the waiting list to come in to verify eligibility for admission (24CFR sections 5.410, 982.54(d), and 982.201 through 982.207). Condition: Based upon inspection of the waiting list provided to us during the time of audit, the new move-in list and discussions with management, it could not be determined with any certainty that new move-ins were selected from the wait list in an order that is in accordance with the Authority’s policy. Context: Thirty-two (32) names were selected from the new move-in list and those names were to be traced to the waiting list to verify new move-ins were chosen in an order that was in accordance with the Authority’s policy. It was determined that six (6) out of thirty-two (32) new move-ins selected could not be traced with any certainty back to the Authority's waiting list. Known Questioned Costs: 14.871 - Section 8 Housing Choice Vouchers - $35,098 14.879 - Mainstream Vouchers - $13,796 Cause: There is a material weakness in internal controls over the compliance for the special tests and provisions type of compliance related to selections from the waiting list. The Authority has not properly considered, designed, implemented, maintained and monitored a system of internal controls that assures the program is in compliance. Effect: The Section 8 Housing Choice Vouchers and Mainstream Vouchers programs are in material non-compliance with the special tests and provisions type of compliance related to selections from the waiting list. Recommendation: We recommend the Authority design and implement internal control procedures that will reasonably assure compliance with the Uniform Guidance and the compliance supplement. Views of responsible officials and planned corrective action: The Authority has recognized the material weakness in the Section 8 Housing Choice Vouchers and Mainstream Vouchers programs and will implement internal control procedures that will ensure compliance with federal regulations. Shannon Koenig, executive director and CEO, is responsible for implementing this corrective action by December 31, 2024.

Finding 2023-001: Federal Agency: U.S. Department of Housing and Urban Development Federal Program Titles: Housing Voucher Cluster Federal Assistance Listing Numbers: 14.871, 14.879, and 14.EHV Noncompliance – E. Eligibility – Tenant Files Non Compliance Material to the Financial Statements: Yes Material Weakness in Internal Control over Compliance for Eligibility. Criteria: Tenant Files. The PHA must do the following: As a condition of admission or continued occupancy, require the tenant and other family member to provide necessary information, documentation, and releases for the PHA to verify income eligibility (24 CFR sections 5.230, 5.609, and 982.516). These files are required to be maintained and available for examination at the time of audit. Condition: Based upon inspection of the Authority’s files and on discussion with management, there were documents that were unavailable for examination at the time of audit. Context: There are approximately 6,531 units. Of a sample size of seventy-seven (77) tenant files, the following was noted: - Section 214 citizen declaration form missing in 15 files - HUD 9887 consent to release information form missing in 2 files - Original application missing in 1 file - Annual inspection missing in 1 file - Lead based paint form missing in 4 files - Verification of income missing in 6 files Our sample size is statistically valid. Known Questioned Costs: 14.871 - Section 8 Housing Choice Vouchers - $36,728 14.879 - Mainstream Vouchers - $13,028 14.EHV - Emergency Housing Vouchers - $1,272 Cause: There is a material weakness in the Housing Voucher Cluster in internal controls over the compliance for the eligibility type of compliance related to the maintenance of tenant files. The Authority has not properly considered, designed, implemented, maintained and monitored a system of internal controls that assures the program is in compliance. Effect: The Housing Voucher Cluster is in material non-compliance with the eligibility type of compliance related to the maintenance of tenant files. Recommendation: We recommend the Authority design and implement internal control procedures that will assure compliance with the Uniform Guidance and the compliance supplement. Authority Response: The Authority accepts the recommendation of the auditor, and will make the several changes to its inspection process to ensure enforcement of Housing Quality Standards (or any subsequent replacement). Views of responsible officials and planned corrective action: The Authority accepts the recommendation of the auditor. The Authority will increase oversight in the Housing Voucher Cluster to ensure that established internal control policies are being followed on a timely basis. Shannon Koenig, executive director and CEO, is responsible for implementing this corrective action by December 31, 2024.

CORRECTIVE ACTION PLAN FOR THE YEAR ENDED DECEMBER 31, 2023 Title 2, U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance), Subpart F, Section 511 – Audit Findings Follow-up requires the auditee to prepare a corrective action plan to address each audit finding included in the current year auditor’s reports. The Corrective Action Plan for Current Year Findings present our corrective action plan for the Financial Statement and/or Federal Award Findings described in the accompanying Schedule of Findings and Questioned Costs for the period ended December 31, 2023. Finding 2023-001 Responsible Party Name: Gina Rice Position: Director of Accounting Telephone Number: 816-238-4511 ext 131 Federal Agency U.S. Department of Agriculture Federal Program Emergency Food Assistance Program (Food Commodities) Compliance Requirements E - Eligibility Finding Type Federal Awards Auditee’s Comment on Finding We agree with the auditor’s finding. Corrective Action We will establish a process to ensure required eligibility documentation is maintained in accordance with federal program requirements which will include periodic monitoring and review performed by personnel not directly involved with program administration. Anticipated Completion Date June 2025

2023-004 Activities Allowed or Unallowed – Interprogram Activity Public and Indian Housing – CFDA Number 14.850 Other Matters, Questioned Costs Condition: The Authority has loaned monies from the Public and Indian Housing Program to the COCC. As of September 30, 2023 these loans totaled $349,352. Recommendation: The Authority should develop a plan based on budgeting and monitoring of COCC expenses to have the ability to reimburse funds to the Public and Indian Housing Program. Action Taken: To restore financial integrity and ensure proper use of COCC funds, the Authority will take the following actions: 1. COCC Optimization and Budget Reform: Develop and implement a proper, balanced COCC budget that reflects actual operating costs and allocates shared services appropriately. Establish budget accountability protocols, including monthly budget-to-actual reviews and variance reporting to the CFO, CEO, and Board. 2. Training and Capacity Building: Provide training for finance staff on COCC operations, HUD’s Asset Management model, and best practices for cost allocation and shared services. Engage external consultants to support financial modeling and long-term sustainability planning for RAD and LIHTC properties. 3. Shared Services Agreement: Formalize a Consulting and Shared Services Agreement to ensure that COCC services are appropriately billed and reimbursed by other programs. Monitor inter-program transactions to ensure compliance with HUD’s financial management requirements. 4. Salary Allocation and Cost Tracking: Conduct a salary allocation study to ensure that staff time is distributed adequately across programs. Implement time-tracking tools and cost allocation methodologies that align with HUD guidance and OMB Uniform Guidance. Effective Date: June 3, 2025 Contact Information Dr. Michael C. Threatt, Chief Executive Officer Sanford Housing Authority 317 Chatham Street Sanford, North Carolina 27330 (919) 776-7655

Incorrect Pell Calculations Planned Corrective Action: A process will be implemented to verify Pell is correctly awarded before disbursements are made. Person Responsible for Corrective Action Plan: Lee Anders, Vice President for Business Services Anticipated Date of Completion: 09/30/25

Enrollment Reporting to NSLDS Planned Corrective Action: A process will be created to ensure enrollment is reported timely and accurately. Spot checks of NSLDS will be performed on enrollment status throughout the year. Person Responsible for Corrective Action Plan: Lee Anders, Vice President for Business Services Anticipated Date of Completion: 09/30/25

ISIR Comment Resolution Planned Corrective Action: All ISIR comment codes will be resolved before disbursement of federal aid to students. Person Responsible for Corrective Action Plan: Lee Anders, Vice President for Business Services Anticipated Date of Completion: 09/30/25

Satisfactory Academic Progress Planned Corrective Action: The SAP policy will be reviewed or created as needed and a procedure will be implemented based on that policy. Person Responsible for Corrective Action Plan: Lee Anders, Vice President for Business Services Anticipated Date of Completion: 09/30/25

Finding Number: 2023-006 Finding Title: Reporting – DHS Social Service Fund (DHS-2556) Program: 93.658 Foster Care – Title IV-E Name of Contact Person Responsible for Corrective Action: Janelle White – Controller for Ramsey County’s Health & Wellness Service Team Enrique Rivera – Fiscal Services Manager for Ramsey County’s Health & Wellness Service Team Corrective Action Planned: Starting in the third quarter of 2024, Ramsey County instituted an additional verification step in the review process to support the determination of accurate cost pool categorization of reimbursable costs for the Random Moment Time Study Reports cost reports. The additional step will be to confirm that on the Summary Tab of the Quarterly Payroll file, the cost codes lines are in sequential order and that the corresponding expense totals match the cost code. The Senior Accountant will do the first review of this step, and the Fiscal Manager will complete the second review. The error on the 2nd quarter 2023 report was remedied and resubmitted in the 2nd quarter of 2024. Anticipated Completion Date: July of 2024 when the 2nd quarter DHS-2556 and DHS 2550 are due to be complete and finalized.

Finding Number: 2023-004 Finding Title: Eligibility Program: 21.023 COVID-19 – Emergency Rental Assistance Program Name of Contact Person Responsible for Corrective Action: Daniel Rahkola, Division Director Finance Corrective Action Planned: Staff will be retrained on the procedures to ensure compliance with the needed standards. Anticipated Completion Date: June 30, 2025

The auditors reviewed 6 tenant files for initial admission criteria being met, such as Income calculations. Of the 6 files, 5 did not contain supporting documentation of how the income was calculated. Again, those staff are not present coming into FY2024. Of the 6 files reviewed, 3 also did not have 50058’s in the tenant file. And all 6 files could not be traced back to the waitlist to determine proper entrance to the program. In response to the tracking of the waitlist not being tracked on new admissions, there have not been any new HCV vouchers issued from the waitlist since the end of FY2022. RHA has an over utilization of voucher budget authority and has not issued new vouchers from that waiting list nor has RHA opened that waiting list up. RHA administration does not expect to open this waiting list in FY2024 nor FY2025. At the tail end of FY2023, RHA sent the PBV waiting lists over to the contracted third-party management company to track for RHA. Currently, that third-party management company is Allied Residential Management. Halfway through FY2024, RHA converted over to a different Housing Software which has better tracking reports than the prior software. Again, RHA has hired new staff and removed old staff that did not want to learn correct compliance procedures with the HCV department. RHA has a strong team coming into FY2025 now. FY2024 had staff in/out until we found good staff that wanted to learn and retain them.