Corrective Action Plans

Finding 28315 (2022-086)

Significant Deficiency 2022

State of Maine

ME

Allowable Costs / Cost Principles Internal Control / Segregation of Duties Eligibility § 200.303 § 200.403

Department: Health and Human Services Title: Internal control over deceased client cases and claims analysis needs improvement Questioned Costs: None Status: Corrective action in progress Corrective Action: The Department will complete a review of claims identified by OSA and if that analysis sugges...

Department: Health and Human Services Title: Internal control over deceased client cases and claims analysis needs improvement Questioned Costs: None Status: Corrective action in progress Corrective Action: The Department will complete a review of claims identified by OSA and if that analysis suggests that procedures need to be enhanced, the Department will do so. Completion Date: May 31, 2023 Agency Contact: Anthony Pelotte, Director, Office for Family Independence, DHHS, 207-624-4104

View Audit 32781

Finding 28314 (2022-085)

Significant Deficiency 2022

State of Maine

ME

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

Department: Health and Human Services Title: Internal control over cost of care assessments needs improvement Questioned Costs: Undeterminable Status: Management?s opinion is that corrective action is not required Corrective Action: The Department agrees with the two exceptions found by the Office o...

Department: Health and Human Services Title: Internal control over cost of care assessments needs improvement Questioned Costs: Undeterminable Status: Management?s opinion is that corrective action is not required Corrective Action: The Department agrees with the two exceptions found by the Office of the State Auditor. However, we believe that the Department has reasonable assurance with the controls in place that results in a 97% compliance rate with the COC calculations, which is a 2% increase from last year. In the prior year's finding the Department committed to continuing to achieve a 95% compliance rate and CMS agreed with the Department and closed the prior finding. No corrective action is necessary as a result of an error rate of only 3%. The Department will continue to actively manage and monitor the Cost of Care system in compliance with federal regulations. Completion Date: N/A Agency Contact: Anthony Pelotte, Director, Office for Family Independence, DHHS, 207-624-4104

View Audit 32781 Questioned Costs: $1

Finding 28313 (2022-084)

Significant Deficiency 2022

State of Maine

ME

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

Department: Health and Human Services Administrative and Financial Services Title: Internal control over Medicare Part B premium payments needs improvement Questioned Costs: None Status: Corrective action in progress Corrective Action: The Office for Family Independence (OFI) will incorporate the CM...

Department: Health and Human Services Administrative and Financial Services Title: Internal control over Medicare Part B premium payments needs improvement Questioned Costs: None Status: Corrective action in progress Corrective Action: The Office for Family Independence (OFI) will incorporate the CMS business change processes (ELMO portal) into the Buy-In Reconciliation standard operating procedures. OFI will implement technology improvements in support of reducing manual data entry and increased regulatory compliance. Completion Date: September 30, 2023 and June 1, 2024 respectively Agency Contact: Anthony Pelotte, Director, Office for Family Independence, DHHS, 207-624-4104

View Audit 32781

Finding 28289 (2022-079)

Significant Deficiency 2022

State of Maine

ME

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

Department: Health and Human Services Title: Internal control over the CCDF Cluster eligibility determination process needs improvement Questioned Costs: None Status: Management?s opinion is that corrective action is not required Corrective Action: DHHS believes the current internal controls that ar...

Department: Health and Human Services Title: Internal control over the CCDF Cluster eligibility determination process needs improvement Questioned Costs: None Status: Management?s opinion is that corrective action is not required Corrective Action: DHHS believes the current internal controls that are in place provide reasonable assurance that DHHS is managing the funds in compliance with all regulations. Reasons include; ? The ongoing quality assurance process is one of the major controls in place. In 2019, the OCFS Quality Assurance (QA) team, separate from the Child Care Subsidy Program (CCSP) team, comprised of 10 staff, began conducting 23 CCSP case reviews per month. This is systematic monitoring. QA uses the initial documentation submitted by the parent (applications, proof of income, etc.) and checks it against the information in the MACWIS system to ensure eligibility is calculated correctly and data was entered accurately. ? A summary of findings from the QA check is provided to CCSP management each month. CCSP management documents the needed remediation plan, with the Financial Resource Specialist (FRS) making the necessary corrections as soon as possible. Additionally, CCSP management conducts internal periodic audits of files and evaluates deficiencies. ? Information Technology Controls minimizes potential errors by utilizing pre-defined drop-down menus of approved entries. Several fields limit the number of characters allowed to be entered or only allow numeric entries. ? The Information Technology system provides an enhanced internal control that provides visual cues to enter dollar amounts. Users receive an error message if data is entered incorrectly. ? The Financial Resource Specialist Staff Manual provides detailed, step-by-step instructions of the process for entering information into the Information Technology system to ensure accuracy and consistency of data entry. Staff are trained using this manual and are provided ongoing access to the manual. Staff undergo regular training on the eligibility determination process. DHHS believes the process and technical solutions in place are a reasonable attempt to assure proper eligibility determination for CCSP funding. Completion Date: N/A Agency Contact: Todd Landry, Director of the Office of Child and Family Services, DHHS, 207-624-7900

View Audit 32781

Finding 28265 (2022-075)

Significant Deficiency 2022

State of Maine

ME

Internal Control / Segregation of Duties Special Tests & Provisions Subrecipient Monitoring § 200.303

Department: Health and Human Services Title: Internal control over TANF performance reporting and work participation procedures needs improvement Questioned Costs: None Status: Management?s opinion is that corrective action is not required Corrective Action: Due to the nature of corrective action pl...

Department: Health and Human Services Title: Internal control over TANF performance reporting and work participation procedures needs improvement Questioned Costs: None Status: Management?s opinion is that corrective action is not required Corrective Action: Due to the nature of corrective action plans, and the timing of recent edits to the standard operating procedures in February and May of 2022, a corrective action plan is not warranted at this time. Completion Date: N/A Agency Contact: Anthony Pelotte, Director, Office for Family Independence, DHHS, 207-624-4104

View Audit 32781

Finding 28260 (2022-070)

Material Weakness 2022

State of Maine

ME

Internal Control / Segregation of Duties Special Tests & Provisions Student Financial Aid § 200.303

Department: Health and Human Services Title: Internal control over TANF client child support sanction procedures needs improvement Questioned Costs: None Status: Management?s opinion is that corrective action is not required Corrective Action: The Department disagrees with this finding. The Office f...

Department: Health and Human Services Title: Internal control over TANF client child support sanction procedures needs improvement Questioned Costs: None Status: Management?s opinion is that corrective action is not required Corrective Action: The Department disagrees with this finding. The Office for Family Independence (OFI) has sufficient internal controls in place to ensure compliance with Federal requirements. Specifically, based on the finding's stated condition, OSA did not take exception with the 22 items that were actually tested for compliance. Additionally, OFI has provided sufficient information for OSA to identify and conduct the audit and compliance testing of cases referred by DSER for sanction. The Department has provided OSA with the following material as requested: 1. The list of all sanction referrals generated by OFI-DSER, the Title IV-D agency. 2. The list of all OFI-TANF clients actually sanctioned by TANF Eligibility. 3. The list of all OFI-TANF clients 4. Copies of all emails pertaining to all sanction activity 5. Access to our Automated Client Eligibility System which includes all documented case notes. Completion Date: N/A Agency Contact: Anthony Pelotte, Director, Office for Family Independence, DHHS, 207-624-4104

View Audit 32781

Finding 28258 (2022-068)

Material Weakness 2022

State of Maine

ME

Special Tests & Provisions Eligibility Material Weakness § 200.303

Department: Health and Human Services Title: Internal control over Income Eligibility and Verification System procedures needs improvement Questioned Costs: None Status: Management?s opinion is that corrective action is not required Corrective Action: The Department disagrees with this finding. The ...

Department: Health and Human Services Title: Internal control over Income Eligibility and Verification System procedures needs improvement Questioned Costs: None Status: Management?s opinion is that corrective action is not required Corrective Action: The Department disagrees with this finding. The Office for Family Independence (OFI) has conducted the required IEVS eligibility verifications. Additionally, sufficient evidence of these efforts has been provided to the Office of the State Auditor so that audit procedures can be performed in accordance with Federal regulations. OFI utilizes the Federally provided IEVS system which integrates the three named population groups (Medicaid, SNAP, TANF). The IEVS discrepancy reports have not contained Federal program indicators since program inception over 20 years ago. This is consistent with the methodology utilized by the Social Security Administration, as they too group the OFI programs together in their discrepancy reports. These same reports have been provided for prior Single Audits without being considered an exception condition. Upon request, the Department provided OSA: 1. All IEVS discrepancy reports for State fiscal year 2022, containing cases for Medicaid, SNAP, and TANF. 2. A complete listing of all TANF cases subject to IEVS in State fiscal year 2022. 3. Access to our Automated Client Eligibility System, which documents all IEVS related case notes. Completion Date: N/A Agency Contact: Anthony Pelotte, Director, Office for Family Independence, DHHS, 207-624-4104

View Audit 32781

Finding 28151 (2022-045)

Material Weakness 2022

State of Maine

ME

Questioned Costs Allowable Costs / Cost Principles Eligibility § 200.303 § 200.403

Department: Labor Title: Internal control over UI claim payments needs improvement Questioned Costs: Known: $19,278 Likely: $2,700,000 Status: Management?s opinion is that corrective action is not required (first item) Corrective action in progress (remaining items) Corrective Action: The Department...

Department: Labor Title: Internal control over UI claim payments needs improvement Questioned Costs: Known: $19,278 Likely: $2,700,000 Status: Management?s opinion is that corrective action is not required (first item) Corrective action in progress (remaining items) Corrective Action: The Department disagrees with the findings around the PUA program and the timing of the notices to provide Proof of Employment for continued eligibility. USDOL in its guidance acknowledged that it would take time to implement the new requirement from a systems and operational perspective. The Department worked diligently to implement the new requirement (along with other requirements from the CAA) as soon as possible. Furthermore, the PUA program was a one-time program created by the Federal government in response to the COVID-19 pandemic, to provide monetary support to those individuals who traditionally do not qualify for unemployment compensation benefits. All CARES Act programs, including PUA, ended in September, 2021. At this time there is no corrective action we can take, as the program no longer exists in its prior form. At most we may still see PUA eligibility as a result of a pending appeal, or court case. We will follow established processes at that time, which are based on Federal guidance provided. The Department will add a text field to obtain more information on the location of a job fair or the name of an activity when a claimant reports a CareerCenter job fair or other activity as a work search. Information will be provided to businesses through a new report for review. The Department will create a work search issue for fact-finding and possible adjudication when a claimant reports a CareerCenter Job Fair or other activity as a work search more than three times. The Department will review functionality of Vital Statistics Crossmatch to ensure that all data related to date of death for active claimants is received as timely as possible. The Department will add system controls when entering a date of birth, both for claimants and businesses to prevent avoidable data entry errors. Completion Date: June 30, 2023 (second and third items), June 30, 2024 (fourth and fifth items) Agency Contact: Laura Boyett, Director, Bureau of Unemployment Compensation, DOL, 207-621-5156

View Audit 32781 Questioned Costs: $1

Finding 28105 (2022-043)

Significant Deficiency 2022

State of Maine

ME

Questioned Costs Allowable Costs / Cost Principles Eligibility § 200.303

Department: Education Title: Internal control over CACFP eligibility needs improvement Questioned Costs: Known: $50,275 Likely: Undeterminable Status: Corrective action complete Corrective Action: The Department added to the check list a space for the on-site documentation for the pre-approval site ...

Department: Education Title: Internal control over CACFP eligibility needs improvement Questioned Costs: Known: $50,275 Likely: Undeterminable Status: Corrective action complete Corrective Action: The Department added to the check list a space for the on-site documentation for the pre-approval site visit to be uploaded into CNPWeb. The Department made the pre-site visit mandatory before the start of the program. Completion Date: March 6, 2023 Agency Contact: Jane McLucas, Director of Child Nutrition, DOE, 207-624-6880

View Audit 32781 Questioned Costs: $1

Finding 28048 (2022-082)

Material Weakness 2022

State of Maine

ME

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

Department: Health and Human Services Title: Internal control over the eligibility determination process needs improvement Questioned Costs: None Status: Management?s opinion is that corrective action is not required Corrective Action: The Department disagrees with this finding. The systems we have ...

Department: Health and Human Services Title: Internal control over the eligibility determination process needs improvement Questioned Costs: None Status: Management?s opinion is that corrective action is not required Corrective Action: The Department disagrees with this finding. The systems we have in place are both necessary and sufficient in meeting programmatic requirements to ensure accurate eligibility determinations are being made. There has been no citation of federal regulation provided by OSA during this review that contradicts this. The Department would like to note: 1. Supervisors do a minimum of 1 case reading per month and a minimum of 1 call monitoring per week for staff on phones. It is commonplace for them to do more, especially for a new employee, or known coaching issues. 2. These case readings were tracked by supervisors and units and were tracked centrally on our Streamline Management Y-Drive in SFY2022. 3. Phone calls can be referenced by Supervisors in real time or afterwards, via recording. 4. Specifics of case reading, and call monitoring were formalized with specific expectations in multiple categories, which were followed up on by coaching staff if not all of the expectations were met. With a goal of continuous improvement, it was also noted to the OSA that we formally implemented the Calabrio System which dramatically enhanced and further automated our ability to track Case Readings and Call Monitoring performance statewide in June of 2022. A corresponding user guide was also developed and implemented in June of 2022. This example of continuous quality improvement has led to a more holistic understanding of trends and training needs. Furthermore, SNAP cases are randomly selected and reviewed by USDA partially-funded SNAP Quality Control staff. These findings are reported monthly to FNS and OFI senior management. A team of QC, training, program, operations, business technology and senior management meet bi-weekly to review trends and implement solutions. These have included technological enhancements, reminder e-mails, targeted trainings, and pop quizzes. While this effort focuses on SNAP, the vast majority of SNAP cases also involve MaineCare, and some include TANF. Solutions for one program typically aid all. Completion Date: N/A Agency Contact: Anthony Pelotte, Director, Office for Family Independence, DHHS, 207-624-4104

View Audit 32781

Finding 28043 (2022-025)

Significant Deficiency 2022

State of Maine

ME

Questioned Costs Allowable Costs / Cost Principles Eligibility § 200.303 § 200.403

Department: Health and Human Services Title: Internal control over automated SNAP eligibility determinations and benefit calculations needs improvement Questioned Costs: Known: $2,952 Likely: $7,686,166 Status: Corrective action in progress Corrective Action: The management of OFI will review the st...

Department: Health and Human Services Title: Internal control over automated SNAP eligibility determinations and benefit calculations needs improvement Questioned Costs: Known: $2,952 Likely: $7,686,166 Status: Corrective action in progress Corrective Action: The management of OFI will review the standard operating procedures to identify opportunities for improvement and distribute to all staff involved. Completion Date: June 1, 2023 Agency Contact: Anthony Pelotte, Director, Office for Family Independence, DHHS, 207-624-4104

View Audit 32781 Questioned Costs: $1

Finding 27971 (2022-005)

Significant Deficiency 2022

Dakota Plains Legal Services, Inc.

SD

Internal Control / Segregation of Duties Subrecipient Monitoring Cash Management

Legal Services Corporation CFDA #09-742018 Legal Services Corporation -Basic Field - General CFDA #09-742018 Legal Services Corporation - Basic Field - Native American Eligibility Significant Deficiency in Internal Control over Compliance 2022-005 Condition: One instance identified in which the Gr...

Legal Services Corporation CFDA #09-742018 Legal Services Corporation -Basic Field - General CFDA #09-742018 Legal Services Corporation - Basic Field - Native American Eligibility Significant Deficiency in Internal Control over Compliance 2022-005 Condition: One instance identified in which the Grant Compliance Checklist wasn't completed as required by DPLS policy. Additionally, one instance identified in which Form 1644 Disclosure of Case Information was not completed timely, resulting in the case information not being reported to the Corporation. Auditor's Recommendation: We recommend DPLS review policies and procedures with applicable employees and remind them of the importance of established review and monitoring processes. Management's Response: All employees have received additional training on compliance procedures and new employees will receive the same. All files being closed are now reviewed first for accuracy by the case handler of that file. The files are double checked by the office secretary for accuracy. At the end of the quarter, all files are sent to compliance for a third review. Any needed corrections are noted by compliance and the file is then sent back to the office where it originated from to be corrected. Then the corrections to the file are reported back to compliance to verify that they have been made. Responsible Individuals: Dawn Marshall, Compliance Officer, Tom Mortland, Executive Director, Annemarie Michaels, Deputy Director. Anticipated Completion Date: December 31, 2023.

View Audit 23914

Finding 26351 (2022-003)

Significant Deficiency 2022

Community Food Bank of Eastern Oklahoma, INC

OK

Subrecipient Monitoring Eligibility Allowable Costs / Cost Principles

Item 2022-003 ? Software Access Restrictions Significant Deficiency Recommendation: New employees should be evaluated for proper software access and authority. The ability to edit subrecipient eligibility status should be limited to key partner agency personnel, and the Organization should routinel...

Item 2022-003 ? Software Access Restrictions Significant Deficiency Recommendation: New employees should be evaluated for proper software access and authority. The ability to edit subrecipient eligibility status should be limited to key partner agency personnel, and the Organization should routinely review the list of authorized users for accuracy. The organization monitors subrecipient eligibility through software. Only certain users should be having access to edit sub recipient eligibility status. In one of five selections an employee was improperly granted authority to edit subrecipient eligibility status. Management Views: Management agrees with the finding. Action Planned: New employees will be reviewed for appropriate levels of access upon Onboarding. Checklist will be maintained in department and periodically reviewed. Anticipated Completion Date: June 30,2023 Responsible Party: Ying Thao, IT Director

View Audit 26275

Finding 26350 (2022-009)

Significant Deficiency 2022

Richmond County

NC

Eligibility

Finding 2022-009 Inadequate Request for Information Name of contact person: Theressa Smith, Deputy Social Services Director Corrective Action: Training completed on August 23, 2022. Electronic verifications and hierarchy of verifications was discussed with all ...

Finding 2022-009 Inadequate Request for Information Name of contact person: Theressa Smith, Deputy Social Services Director Corrective Action: Training completed on August 23, 2022. Electronic verifications and hierarchy of verifications was discussed with all Medicaid Staff. A follow up training will be scheduled for the first quarter of 2023. Agency will continue to complete second party reviews to monitor compliance with Medicaid policy. Agency will conduct quarterly trainings to address accuracy. Agency will send a monthly email reminder to address trending errors. Proposed Completion Date: By March 31, 2023 and ongoing

View Audit 25920

Finding 26349 (2022-008)

Significant Deficiency 2022

Richmond County

NC

Eligibility Reporting

Finding 2022-008 Untimely Review of SSI Termination Name of contact person: Theressa Smith, Deputy Social Services Director Corrective Action: Training completed on November 3, 2022. Policy MA-1000 and MA-1100 was discussed with all Adult Medicaid Workers. Jo...

Finding 2022-008 Untimely Review of SSI Termination Name of contact person: Theressa Smith, Deputy Social Services Director Corrective Action: Training completed on November 3, 2022. Policy MA-1000 and MA-1100 was discussed with all Adult Medicaid Workers. Job aids and powerpoint from The Learning Gateway were reviewed and distributed to all Adult Medicaid workers. Proposed Completion Date: November 3, 2022 and ongoing

View Audit 25920

Finding 26348 (2022-007)

Significant Deficiency 2022

Richmond County

NC

Eligibility

Finding 2022-007 Inaccurate Resources Entry Name of contact person: Theressa Smith, Deputy Social Services Director Corrective Action: Training was completed on December 7, 2022 discussing manual MA-2230 and MA-3320 with all Medicaid staff. A documentation tem...

Finding 2022-007 Inaccurate Resources Entry Name of contact person: Theressa Smith, Deputy Social Services Director Corrective Action: Training was completed on December 7, 2022 discussing manual MA-2230 and MA-3320 with all Medicaid staff. A documentation template was created for applications and recerts to include a resource checklist reminder. Agency will continue to complete second party reviews to monitor compliance with Medicaid policy. Agency will conduct quarterly trainings to address accuracy. Agency will send a monthly email reminder to address trending errors. Proposed Completion Date: December 7, 2022 and ongoing

View Audit 25920

Finding 26347 (2022-006)

Significant Deficiency 2022

Richmond County

NC

Eligibility Internal Control / Segregation of Duties

Finding 2022-006 Inaccurate Information Entry Name of contact person: Theressa Smith, Deputy Social Services Director Corrective Action: Training was completed on December 7, 2022. A documentation template was created to remind workers of TWN and other informa...

Finding 2022-006 Inaccurate Information Entry Name of contact person: Theressa Smith, Deputy Social Services Director Corrective Action: Training was completed on December 7, 2022. A documentation template was created to remind workers of TWN and other informational resources available. Agency will continue to complete second party reviews to monitor compliance with Medicaid policy. Agency will conduct quarterly trainings to address accuracy. Agency will send a monthly email reminder to address trending errors. Proposed Completion Date: December 7, 2022 and ongoing

View Audit 25920

Finding 26346 (2022-005)

Significant Deficiency 2022

Richmond County

NC

Eligibility

Finding 2022-005 IV-D Cooperation with Child Support Name of contact person: Theressa Smith, Deputy Social Services Director Corrective Action: Training was completed on December 7, 2022. Will continue to complete second party reviews to monitor compliance with...

Finding 2022-005 IV-D Cooperation with Child Support Name of contact person: Theressa Smith, Deputy Social Services Director Corrective Action: Training was completed on December 7, 2022. Will continue to complete second party reviews to monitor compliance with Medicaid policy. Agency will conduct quarterly trainings to address IV-D child support cooperation. Agency will send a monthly email reminder to address trending errors. Proposed Completion Date: December 7, 2022 and ongoing

View Audit 25920

Finding 26298 (2022-002)

Significant Deficiency 2022

Timber Hills Housing of Alcorn County, INC

MS

Eligibility HUD Housing Programs Significant Deficiency

CORRECTIVE ACTION PLAN SEPTEMBER 30, 2022 U. S. Department of Housing and Urban Development Timber Hills Housing of Alcorn County, Inc. (the "Project") respectfully submits the following corrective action plan for the year ended September 30, 2022. Audit Firm: Harper, Rains, Knight & Company, P.A. 1...

CORRECTIVE ACTION PLAN SEPTEMBER 30, 2022 U. S. Department of Housing and Urban Development Timber Hills Housing of Alcorn County, Inc. (the "Project") respectfully submits the following corrective action plan for the year ended September 30, 2022. Audit Firm: Harper, Rains, Knight & Company, P.A. 1052 Highland Colony Parkway, Suite 100 Ridgeland, MS 39157 Audit Period: Year Ended September 30, 2022 Audit Finding Reference: 2022-002 Planned Corrective Action: Management will ensure that the Project has all required forms for each tenant. Name of Contact Person: If the U. S. Department of Housing and Urban Development for audit has questions regarding this plan, please call Scott Russell at 601-856-2362. Sincerely, Timber Hills Housing of Alcorn County, Inc.

View Audit 18247

Finding 26265 (2022-003)

Material Weakness 2022

Valders Area School District

WI

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

Management is cognizant of the District?s internal control structure and continues to evaluate cost effective opportunities to further improve segregation of duties. The District has strengthened the internal control structure in recent years by revising the roles and responsibilities of multiple po...

Management is cognizant of the District?s internal control structure and continues to evaluate cost effective opportunities to further improve segregation of duties. The District has strengthened the internal control structure in recent years by revising the roles and responsibilities of multiple positions within the accounting department. The District continues to identify and implement effective mitigating controls when possible. Current District procedures in both the accounts payable and payroll functions include one position that is primarily responsible for transaction processing and require that a second individual review and approve transactions. As a result of these procedures, the Finance Manager has less responsibility with daily functions which enables the position to provide additional secondary review and oversight both in the financial areas of accounts payable, accounts receivable, and in the payroll/HR areas. Name of responsible official: Michelle Lillibridge, Business Services Director Expected Completion Date: Ongoing, no formal expected completion date

View Audit 18106

Finding 26254 (2022-004)

Significant Deficiency 2022

Pardeeville Area School District

WI

School Nutrition Programs Eligibility

Management Views ? Management agrees with the finding and the recommendation. Corrective Action Planned ? Management has implemented procedures to ensure that the free and reduced price applications and the verifications are kept on file and scanned. The appropriate employees will be trained and b...

Management Views ? Management agrees with the finding and the recommendation. Corrective Action Planned ? Management has implemented procedures to ensure that the free and reduced price applications and the verifications are kept on file and scanned. The appropriate employees will be trained and be made aware of the requirements for these documents. Anticipated Completion Date ? This procedure has been implemented for the 2022-2023 school year and all of the appropriate employees are aware of the importance of keeping these documents.

View Audit 23165

Finding 26180 (2022-005)

Material Weakness 2022

Palestine Gardens, INC

MO

HUD Housing Programs Procurement, Suspension & Debarment Eligibility

Finding 2022-005 Responsible Party Name: Ju Chinnery Position: Property Accountant Telephone Number: (816) 246-9220 Federal Agency Department of Housing and Urban Development Federal Program Mortgage Insurance for the Purchase or Refinancing of Existing Multifamily Housing Projects (Sec 207/223(F)) ...

Finding 2022-005 Responsible Party Name: Ju Chinnery Position: Property Accountant Telephone Number: (816) 246-9220 Federal Agency Department of Housing and Urban Development Federal Program Mortgage Insurance for the Purchase or Refinancing of Existing Multifamily Housing Projects (Sec 207/223(F)) Compliance Requirements E - Eligibility Finding Type Federal Awards Auditee?s Comment on Finding We agree with the auditor?s finding. Corrective Action We will follow procedures to ensure applicant and tenant eligibility and recertification is being maintained properly and management will review the accuracy / completeness of the documentation being processed in the tenant files on a quarterly basis. Anticipated Completion Date June 30, 2023

View Audit 23691

Finding 26179 (2022-004)

Material Weakness 2022

Palestine Gardens, INC

MO

HUD Housing Programs Procurement, Suspension & Debarment Eligibility

Finding 2022-004 Responsible Party Name: Ju Chinnery Position: Property Accountant Telephone Number: (816) 246-9220 Federal Agency Department of Housing and Urban Development Federal Program Mortgage Insurance for the Purchase or Refinancing of Existing Multifamily Housing Projects (Sec 207/223(F)) ...

Finding 2022-004 Responsible Party Name: Ju Chinnery Position: Property Accountant Telephone Number: (816) 246-9220 Federal Agency Department of Housing and Urban Development Federal Program Mortgage Insurance for the Purchase or Refinancing of Existing Multifamily Housing Projects (Sec 207/223(F)) Compliance Requirements E - Eligibility Finding Type Federal Awards Auditee?s Comment on Finding We agree with the auditor?s finding. Corrective Action We will follow procedures to ensure tenant eligibility and establish and maintain security deposits for move outs and management will review the accuracy / completeness of the documentation being processed in the tenant files on a quarterly basis. Anticipated Completion Date June 30, 2023

View Audit 23691

Finding 26114 (2022-001)

Significant Deficiency 2022

Housing Authority of the City of Beaumont

TX

HUD Housing Programs Eligibility Significant Deficiency

Finding 2022-001 Federal Agency: U.S. Department of Housing and Urban Development Federal Program Titles: Section 8 Housing Choice Vouchers Program Federal Catalog Numbers: 14.871 Noncompliance ? E. Eligibility ? Tenant Files Non Compliance Material to the Financial Statements: No Significant ...

Finding 2022-001 Federal Agency: U.S. Department of Housing and Urban Development Federal Program Titles: Section 8 Housing Choice Vouchers Program Federal Catalog Numbers: 14.871 Noncompliance ? E. Eligibility ? Tenant Files Non Compliance Material to the Financial Statements: No Significant Deficiency 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 1,805 units. Of a sample size of thirty-one (31) tenant files, the following was noted: ? Annual inspection report was missing in 1 file ? HUD 50058 Form was missing in 1 file ? Verification of income and assets was missing in 1 file. Our sample size is statistically valid. Cause: There is a significant deficiency 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 Section 8 Housing Choice Vouchers Program is in 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. Views of responsible officials and planned corrective action: The Authority accepts the recommendation of the auditor. The affected files relate to clients that have been on the program for decades and as files get large, archiving takes place. To correct this finding, a directive will be issued to staff that will ensure that when files are archived the original application must be placed in the current working file going forward. Allison Landrum, Chief Executive Officer, is responsible for implementing this corrective action by September 30, 2023.

View Audit 23692

Finding 26109 (2022-001)

None 2022

Puerto Rico Medical Services Administration

PR

Questioned Costs Eligibility

Galindez LLC Urb. Perez Morris, 19 Ponce St. San Juan, PR 00917 Dear CPA Marcos Claudio: In connection with the Schedule of Findings and Questioned Cost of Administracion de Servicios Medicos de Puerto Rico (ASEM) for the year ended June 30, 2022, below please find our comments, and planned co...

Galindez LLC Urb. Perez Morris, 19 Ponce St. San Juan, PR 00917 Dear CPA Marcos Claudio: In connection with the Schedule of Findings and Questioned Cost of Administracion de Servicios Medicos de Puerto Rico (ASEM) for the year ended June 30, 2022, below please find our comments, and planned corrective actions for Finding identified. Finding No. 2022-001 Eligible Uses Providing Premium Pay to Eligible Workers As more fully explained to your representative during the audit, the Administrator of this Premium Pay Program was the Health Department of Puerto Rico (HD) who was in charge of developing the program to all Public Hospital in Puerto Rico, among them, the Administracion de Servicios Medicos de Puerto Rico (ASEM). At all times, ASEM followed the instructions provided by the HD. Furthermore, we provided the HD with the list of possible eligible employees, including the information of the requirements established by them. The salary $40,000.00's limit was not a requirement to be considered. After the review done by HD, they provided ASEM with the authorized list of employees eligible for the benefit which ASEM used for the payment. Accordingly, it was never the intention of ASEM to pay this benefit to not eligible beneficiaries, it was only a matter of not providing ASEM with the actual requirements from the Program's Administrator. Should you have any question, please call at your convenience. Paul Barreras Diaz, CPA Finance & Budget Director

View Audit 21496 Questioned Costs: $1

Corrective Action Plans

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