Corrective Action Plans

Finding 1208542 (2025-056)

Material Weakness 2025

State of Alaska

AK

Allowable Costs / Cost Principles Eligibility

Finding: 2025-056 - Sixty Medicaid and sixty CHIP recipients were randomly selected for eligibility testing. Testing revealed the following errors: Medicaid five of 60 cases lacked eligibility determination issues (note, some case had multiple deficiencies): • One of sixty case files lacked the prop...

Finding: 2025-056 - Sixty Medicaid and sixty CHIP recipients were randomly selected for eligibility testing. Testing revealed the following errors: Medicaid five of 60 cases lacked eligibility determination issues (note, some case had multiple deficiencies): • One of sixty case files lacked the proper case notes to properly maintain how the individual was determined eligible for payments. • One of sixty cases had an incorrect social security number entered into the ARIES system. In addition: • Five of sixty files lacked documentation of facts supporting the eligibility determination. • One of sixty participants did not meet income eligibility requirements. • Two of sixty cases lacked documentation to verify that the Income and Eligibility Verification System (IEVS) was used to verify income eligibility. CHIP 17 of 60 cases lacked eligibility: determination issues, (note, some case had multiple deficiencies). • One of sixty case files was missing a: CHIP-specific application that was signed of by the program recipient. • Three of the sixty identified cases had identified income that exceeded income limits or income was unable to be verified. • Four of sixty cases lacked documentation to verify that the Income and Eligibility Verification System was used, to verify income eligibi1ity. • Three of sixty cases were not properly closed after the period of eligibility to receive benefits had ended. • Four of sixty cases that had payments to programs participants that were deemed unallowable costs activities due to-multiple individual compliance issues. • Sixteen of sixty cases lacked adequate support for eligibility determinations/redeterminations. Questioned Costs: AL 93.778: 138 (known questioned costs); 37,006,989 (likely questioned costs), AL 93.767: 288 (known questioned costs); 582,269 (likely questioned costs) Assistance Listing Number: 93.767, 93.775, 93.777, 93.778 Assistance Listing Title: CHIP Medicaid Cluster Views of Responsible Officials (state whether your agency agrees or disagrees with the finding; if you disagree, briefly explain why): The department agrees with the finding but does not concur with the questioned costs. CMS has notified the state that financial recoveries based on eligibility errors can only be pursued when identified by programs operating under CMS’ Payment Error Rate Measurement (PERM) program, under section 1903(u) of the Social Security Act and regulations at 42 CFR Part 431, Subpart Q. Corrective Action (corrective action planned): The Division of Public Assistance will continue to perform case reviews and will randomly sample eligibility determinations to identify error trends and improve training opportunities. Case reviews that specifically target income and case documentation will be performed. The division will broadly message case documentation expectations as well as review in individual office meetings. The division will analyze its case documentation protocols and update them as necessary to ensure all relevant documentation supporting eligibility decisions are present in electronic case files. Completion Date (list anticipated completion date): The department anticipates the finding will be resolved in FY2027. Agency Contact (name of person responsible for corrective action): Pam Halloran, Assistant Commissioner

View Audit 399484

Finding 1208541 (2025-055)

Material Weakness 2025

State of Alaska

AK

Eligibility Material Weakness

Finding: 2025-055 - Sixty Medicaid and sixty Children’s Health Insurance Program (CHIP) recipients were randomly selected for eligibility testing. Testing revealed the following errors: Medicaid 14 of 60 cases had timing issues (note, some cases had multiple deficiencies): • Seven of the sixty cases...

Finding: 2025-055 - Sixty Medicaid and sixty Children’s Health Insurance Program (CHIP) recipients were randomly selected for eligibility testing. Testing revealed the following errors: Medicaid 14 of 60 cases had timing issues (note, some cases had multiple deficiencies): • Seven of the sixty cases had not gone through a renewal assessment within 12 months of the last determination. • Eleven of the sixty cases’ eligibility determinations were not done timely (i.e., within 45 days). CHIP 26 of 60 cases had timing issues (note, some cases had multiple deficiencies): • Fifteen of sixty cases’ eligibility determinations were not done timely (i.e., within 45 days). • Eighteen of sixty cases had not gone through a renewal assessment within 12 months of the last determination. Questioned Costs: AL 93.778: 2,653 (known questioned costs); 712,969,620 (likely questioned costs), AL 93.767: 2,825 (known questioned costs); 5,719,575 (likely questioned costs) Assistance Listing Number: 93.767, 93.775, 93.777, 93.778 Assistance Listing Title: CHIP Medicaid Cluster Views of Responsible Officials (state whether your agency agrees or disagrees with the finding; if you disagree, briefly explain why): The department agrees with the finding but does not concur with the questioned costs. CMS has notified the state that financial recoveries based on eligibility errors can only be pursued when identified by programs operating under CMS’ Payment Error Rate Measurement (PERM) program, under section 1903(u) of the Social Security Act and regulations at 42 CFR Part 431, Subpart Q. Corrective Action (corrective action planned): The Division of Public Assistance continues engaging with contractors to incorporate system upgrades to improve timeliness and accuracy with Medicaid determinations. The division will provide additional eligibility resources to ensure timely review of Medicaid cases. Completion Date (list anticipated completion date): The department anticipates the finding will be resolved in FY2027. Agency Contact (name of person responsible for corrective action): Pam Halloran, Assistant Commissioner

View Audit 399484

Finding 1208533 (2025-070)

Material Weakness 2025

State of Alaska

AK

Allowable Costs / Cost Principles Student Financial Aid Eligibility

Finding No. 2025-070 - An evaluation of the Office of Children’s Services (OCS) Online Resources for the Children of Alaska (ORCA) system controls identified an internal control weakness. Views of Responsible Officials (state whether your agency agrees or disagrees with the finding; if you disagree,...

Finding No. 2025-070 - An evaluation of the Office of Children’s Services (OCS) Online Resources for the Children of Alaska (ORCA) system controls identified an internal control weakness. Views of Responsible Officials (state whether your agency agrees or disagrees with the finding; if you disagree, briefly explain why): DFCS agrees with the finding. Corrective Action (corrective action planned): OCS will be making modifications to the ORCA system that will automatically deactivate any user who has not logged in within 30 days during the ORCA update on 4 16 2026. Completion Date (list anticipated completion date): DFCS anticipates the finding will be resolved in FY2026. Agency Contact (name of person responsible for corrective action): Nancy Miller, Finance Officer

View Audit 399484

Finding 1208529 (2025-051)

Material Weakness 2025

State of Alaska

AK

Eligibility Subrecipient Monitoring Significant Deficiency

Finding: 2025-051 - Five of sixty Temporary Assistance for Needy Families (TANF) recipient case files - tested lacked adequate documentation to indicate that the participant met all eligibility criteria. The following errors were noted: • One case had the monthly benefit the individual calculated in...

Finding: 2025-051 - Five of sixty Temporary Assistance for Needy Families (TANF) recipient case files - tested lacked adequate documentation to indicate that the participant met all eligibility criteria. The following errors were noted: • One case had the monthly benefit the individual calculated incorrectly causing an underpayment to the individual. • One case lacked documentation to verify if an 18 year old was attending high school and expected graduation date. • Three cases did not contain a child support cooperation form that assigns to the State the rights the family member may have for support from any other person. Questioned Costs: 3,702 (known questioned costs); 759,673 (likely questioned costs) Assistance Listing Number: 93.558 Assistance Listing Title: TANF Views of Responsible Officials (state whether your agency agrees or disagrees with the finding; if you disagree, briefly explain why): The department agrees with the finding. Corrective Action (corrective action planned): The Division of Public Assistance will continue to perform case reviews and will randomly sample eligibility determinations to identify error trends and improve training opportunities. The division will present refresher training for child support cooperation protocols. Case reviews that specifically target income and case documentation will be performed. The division will broadly message case documentation expectations as well as review those expectations in individual office meetings. The division will analyze its case documentation protocols and update them as necessary to ensure all relevant documentation supporting eligibility decisions are present in electronic case files. Completion Date (list anticipated completion date): The department anticipates the finding will be resolved in FY2027. Agency Contact (name of person responsible for corrective action): Pam Halloran, Assistant Commissioner

View Audit 399484

Finding 1208520 (2025-010)

Material Weakness 2025

State of Alaska

AK

Eligibility Significant Deficiency § 200.303

Finding: 2025-010 - Internal controls to ensure applicants were eligible to receive donations of federal surplus personal property were not consistently applied. Questioned Costs: None Assistance Listing Number: 39.003 Assistance Listing Title: Donation of Federal Surplus Personal Property Views of ...

Finding: 2025-010 - Internal controls to ensure applicants were eligible to receive donations of federal surplus personal property were not consistently applied. Questioned Costs: None Assistance Listing Number: 39.003 Assistance Listing Title: Donation of Federal Surplus Personal Property Views of Responsible Officials (state whether your agency agrees or disagrees with the finding; if you disagree, briefly explain why): SSOA/OPPM, State Property Office agrees with this finding Corrective Action (corrective action planned): The State Property Office has implemented a two-step process with a monthly review to help ensure compliance with this requirement. The State Property Office also conducted internal staff training on the updated internal control procedures in December 2025. Completion Date (list anticipated completion date): The two-step review process was implemented September 30, 2025, internal staff training was completed in December 2025, with the State Plan of Operations also being updated. Agency Contact (name of person responsible for corrective action): Jonathon Harshfield State of Alaska Property Manager

View Audit 399484

Finding 1208497 (2025-049)

Material Weakness 2025

State of Alaska

AK

Allowable Costs / Cost Principles Eligibility Special Tests & Provisions § 200.303

Finding: 2025-049 - DOH’s information technology staff did not properly limit user access to EIS during FY25. Questioned Costs: None Assistance Listing Number: 10.551, 10.561 Assistance Listing Title: SNAP Cluster Views of Responsible Officials (state whether your agency agrees or disagrees with the...

Finding: 2025-049 - DOH’s information technology staff did not properly limit user access to EIS during FY25. Questioned Costs: None Assistance Listing Number: 10.551, 10.561 Assistance Listing Title: SNAP Cluster Views of Responsible Officials (state whether your agency agrees or disagrees with the finding; if you disagree, briefly explain why): The department agrees with the finding. Corrective Action (corrective action planned): The Division of Public Assistance will revise and strengthen the EIS account reconciliation process to include a change in cadence and update protocols for sponsored accounts. Completion Date (list anticipated completion date): The department anticipates the finding will be resolved in FY2026. Agency Contact (name of person responsible for corrective action): Pam Halloran, Assistant Commissioner

View Audit 399484

Finding 1208496 (2025-048)

Material Weakness 2025

State of Alaska

AK

Allowable Costs / Cost Principles Eligibility Special Tests & Provisions § 200.303

Finding: 2025-048 - Testing of 72 FY 25 SNAP EBT issuances found two automated EIS benefit calculations that did not consider an increase in unearned income related to Alaska’s Senior Benefits Program. Questioned Costs: AL 10.551: 660 Assistance Listing Number: 10.551, 10.561 Assistance Listing Titl...

Finding: 2025-048 - Testing of 72 FY 25 SNAP EBT issuances found two automated EIS benefit calculations that did not consider an increase in unearned income related to Alaska’s Senior Benefits Program. Questioned Costs: AL 10.551: 660 Assistance Listing Number: 10.551, 10.561 Assistance Listing Title: SNAP Cluster Views of Responsible Officials (state whether your agency agrees or disagrees with the finding; if you disagree, briefly explain why): The department agrees with the finding. Corrective Action (corrective action planned): The Senior Benefits Program encountered a one-time mass change that did not result in an update on all affected cases. The Division of Public Assistance will correct the affected claims and refund associated Questioned Costs: The division will also review mass change protocols with leadership to ensure proper implementation to mitigate recurrence of resulting errors. Completion Date (list anticipated completion date): The department anticipates the finding will be resolved in FY2026. Agency Contact (name of person responsible for corrective action): Pam Halloran, Assistant Commissioner

View Audit 399484

Finding 1208495 (2025-047)

Material Weakness 2025

State of Alaska

AK

Allowable Costs / Cost Principles Eligibility Special Tests & Provisions § 200.1 § 200.303

Finding: 2025-047 - The amount of FY 25 SNAP benefits reported to United States Department of Agriculture as issued by the State’s Electronic Benefits Transfer (EBT) contractor, Fidelity National Information Services (FIS), was 1,235,577 more than the amount of authorized benefits reported in data f...

Finding: 2025-047 - The amount of FY 25 SNAP benefits reported to United States Department of Agriculture as issued by the State’s Electronic Benefits Transfer (EBT) contractor, Fidelity National Information Services (FIS), was 1,235,577 more than the amount of authorized benefits reported in data from the Division of Public Assistance’s Eligibility Information System (EIS). Furthermore, FIS could not provide a reliable audit trail of issuances. Questioned Costs: AL 10.551: 1,235,577 Assistance Listing Number: 10.551, 10.561 Assistance Listing Title: Supplemental Nutrition Assistance Program (SNAP) Cluster Views of Responsible Officials (state whether your agency agrees or disagrees with the finding; if you disagree, briefly explain why): The department agrees with the finding but does not concur with the questioned costs. The Division of Public Assistance completes reconciliations between FIS daily transaction records and EBT Account Management Agent (AMA) data to ensure issuance accuracy. Corrective Action (corrective action planned): A workgroup identified the root causes of the discrepancies. A revised reporting process is being implemented to ensure all EBT payments are accurately captured, improving completeness and accuracy Daily reconciliations are now in place to support ongoing accuracy and reduce reliance on ad hoc reporting. As a result, the report previously developed for this audit by the EBT contractor, FIS, is not expected to be needed moving forward. Completion Date (list anticipated completion date): The department anticipates the finding will be resolved in FY2026. Agency Contact (name of person responsible for corrective action): Pam Halloran, Assistant Commissioner

View Audit 399484

Finding 1208476 (2025-005)

Material Weakness 2025

Milwaukee Public Schools

WI

Allowable Costs / Cost Principles Cash Management Eligibility § 200.303 § 200.430

Special Education Cluster (IDEA programs) – Assistance Listing No. 84.027, 84.170 Recommendation: The District should implement controls that allow for the identification and proper classification of vendor payments to applicable grant period. Explanation of disagreement with audit finding: There is...

Special Education Cluster (IDEA programs) – Assistance Listing No. 84.027, 84.170 Recommendation: The District should implement controls that allow for the identification and proper classification of vendor payments to applicable grant period. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: The District will strengthen internal controls to ensure that vendor payments are appropriately aligned with the correct grant reporting period. MPS will implement a standardized review process to validate that vendor invoices and related purchase orders are coded to the correct grant period, establish clear procedures for identifying the period of performance for goods and services, enhance coordination between program and finance staff to validate the timing and allowability of expenditures, conduct periodic monitoring of vendor payments to ensure compliance with grant period requirements, and provide training to relevant staff relating to grant period compliance and expenditure classification. Name(s) of the contact person(s) responsible for corrective action: Senior Director of Specialized Services, Accounting Director (Deputy CFO), Financial Reporting Manager Planned completion date for corrective action plan: 6/30/2026

View Audit 399474

Finding 1208468 (2025-001)

Material Weakness 2025

S.d.s.i. Housing Corporation, Inc.

KS

HUD Housing Programs Cash Management Eligibility

Management will contact HUD and negotiate a payment plan to return the ineligible funds of $135,824 withdrawn from the reserve for replacements.

View Audit 399458

Finding 1208462 (2025-001)

Material Weakness 2025

Manor Apartments, Inc.

MD

HUD Housing Programs Eligibility

a. Comments on the Finding and Each Recommendation Management agrees that the EIV Income Report for two selected files were not generated in a timely manner, as required by HUD guidelines. Management agrees that a portion of the tenant lease files reviewed were not signed/completed within the 120 da...

a. Comments on the Finding and Each Recommendation Management agrees that the EIV Income Report for two selected files were not generated in a timely manner, as required by HUD guidelines. Management agrees that a portion of the tenant lease files reviewed were not signed/completed within the 120 day time frame. b. Action(s) Taken or Planned on the Finding Management compliance is addressing the generating of EIV reports to align with verification dates (<120 days) rather than when annual recertification notices are generated/sent (at least 120 days). Delays in recertification completion have improved; a majority of the certifications reviewed were effective within first 6 months of transition while the site was still adjusting to new software and management. Additional training has been provided to emphasize the importance of timely reporting and completion.

View Audit 399440

Finding 1208460 (2025-001)

Material Weakness 2025

Victory Oaks, Inc.

MD

HUD Housing Programs Eligibility

a.Comments on the Finding and Each Recommendation Management agrees that the EIV Income Report for certain selected files were not generated in a timely manner, as required by HUD guidelines. Management agrees that a portion of the tenant lease files reviewed were not signed/completed within the 120...

a.Comments on the Finding and Each Recommendation Management agrees that the EIV Income Report for certain selected files were not generated in a timely manner, as required by HUD guidelines. Management agrees that a portion of the tenant lease files reviewed were not signed/completed within the 120 day time frame. b. Action(s) Taken or Planned on the Finding Management compliance is addressing the generating of EIV reports to align with verification dates (<120 days) rather than when annual recertification notices are generated/sent (at least 120 days). Delays in recertification completion have improved; a majority of the certifications reviewed were effective within first 6 months of transition while the site was still adjusting to new software and management. Additional training has been provided to emphasize the importance of timely reporting and completion.

View Audit 399437

Finding 1208458 (2025-001)

Material Weakness 2025

Victory Heights, Inc.

MD

HUD Housing Programs Eligibility

a. Comments on the Finding and Each Recommendation Management agrees that the EIV Income Report for certain selected files were not generated in a timely manner, as required by HUD guidelines. Management agrees that a portion of the tenant lease files reviewed were not signed/completed within the 12...

a. Comments on the Finding and Each Recommendation Management agrees that the EIV Income Report for certain selected files were not generated in a timely manner, as required by HUD guidelines. Management agrees that a portion of the tenant lease files reviewed were not signed/completed within the 120 day time frame and that an error was made on a rent calculation. b. Action(s) Taken or Planned on the Finding Management compliance is addressing the generating of EIV reports to align with verification dates (<120 days) rather than when annual recertification notices are generated/sent (at least 120 days). Delays in recertification completion have improved; a majority of the certifications reviewed were effective within first 6 months of transition while the site was still adjusting to new software and management. Additional training has been provided to emphasize the importance of timely reporting and completion. There has also been a change in site staff.

View Audit 399436

Finding 1208456 (2025-001)

Material Weakness 2025

Victory Crest, Inc.

MD

HUD Housing Programs Eligibility

a. Comments on the Finding and Each Recommendation: Management agrees with the finding b. Action(s) Taken or Planned on the Finding Management has updated the policies and procedures and monitoring of EIV processes. All employees renew EIV training annually and are monitored by the compliance depart...

a. Comments on the Finding and Each Recommendation: Management agrees with the finding b. Action(s) Taken or Planned on the Finding Management has updated the policies and procedures and monitoring of EIV processes. All employees renew EIV training annually and are monitored by the compliance department to ensure compliance.

View Audit 399435

Finding 1208454 (2025-001)

Material Weakness 2025

Palmer Park Senior Housing, Inc.

MD

HUD Housing Programs Eligibility

a. Comments on the Finding and Each Recommendation Management agrees that a portion of the tenant lease files reviewed were not signed/completed within the 120 day time frame. b. Action(s) Taken or Planned on the Finding Delays in recertification completion have improved; a majority of the certifica...

a. Comments on the Finding and Each Recommendation Management agrees that a portion of the tenant lease files reviewed were not signed/completed within the 120 day time frame. b. Action(s) Taken or Planned on the Finding Delays in recertification completion have improved; a majority of the certifications reviewed were effective within first 6 months of transition while the site was still adjusting to new software and management. Additional training has been provided to emphasize the importance of timely reporting and completion.

View Audit 399433

Finding 1208452 (2025-001)

Material Weakness 2025

Avondale Park Apartments, INC

MD

HUD Housing Programs Eligibility

a. Comments on the Finding and Each Recomendation: Management agrees that the EIV Income Report for certain slected files were not generated in a timely manner, as required by HUD guidelines. Management agrees that a portion of the tenant lease files reviewed were not signed/completed within the 120...

a. Comments on the Finding and Each Recomendation: Management agrees that the EIV Income Report for certain slected files were not generated in a timely manner, as required by HUD guidelines. Management agrees that a portion of the tenant lease files reviewed were not signed/completed within the 120 day time frame. b. Action(s) Taken or Planned on the Finding: Management compliance is addressing the generating of EIV reports to align with verification dates (<120 days) rather than when annual recertification notices are generated/sent (at least 120 days). Delays in recertification completion have improved; a majority of the certifications reviewed were effective within first 6 months of transition while the site was still adjusting to new software and management. Additional training has been provided to emphasize the importance of timely reporting and completion.

View Audit 399431

Finding 1208424 (2025-002)

Material Weakness 2025

Thompson-Woodlief Apartments, Inc.

KY

Eligibility HUD Housing Programs

Recommendation: The design of the current controls should be reviewed to ensure tenants receive proper notice of the annual recertification process and that all documents related to recertification are acquired. Additionally, tenant files should be reviewed to ensure all supporting documentation is ...

Recommendation: The design of the current controls should be reviewed to ensure tenants receive proper notice of the annual recertification process and that all documents related to recertification are acquired. Additionally, tenant files should be reviewed to ensure all supporting documentation is included. Action Taken: The management of Thompson-Woodlief Apartments, Inc. accepts the recommendation of Deming, Malone, Livesay & Ostroff and, accordingly, management will implement procedures to ensure that tenant recertifications are documented in accordance with HUD guidelines and that proper documentation is maintained within the tenant files.

View Audit 399382

Finding 1208264 (2025-007)

Material Weakness 2025

Polytechnic University of Puerto Rico, Inc.

PR

Eligibility

As a resolution plan to ensure proper compliance with eligibility criteria required for student admission to the TRIO Program, specifically regarding disability, we will implement the following measures: Review and modify the program admission application to include a checklist format for the docume...

As a resolution plan to ensure proper compliance with eligibility criteria required for student admission to the TRIO Program, specifically regarding disability, we will implement the following measures: Review and modify the program admission application to include a checklist format for the documents submitted by the student to validate compliance with eligibility criteria during the program admission process. Create a form that a qualified professional or specialist can use to validate and document relevant information about the disability to determine eligibility and reasonable accommodations or modifications, as established and defined by the Americans with Disabilities Act (ADA). This form will be required when the medical certification provided by the qualified professional/specialist does not detail relevant information to determine the student’s eligibility based on disability or is more than one year old. Access and participate in training sessions, workshop, seminars, and webinars that focus on the ADA and its amendments, and on Title 42, Chapter 126, Section 1210, to gain greater knowledge and experience in meeting disability eligibility criteria in the Program.

View Audit 399265

Finding 1208230 (2025-003)

Material Weakness 2025

Leap Charities, Inc.

ID

Eligibility

PRIOR TO THE COMPLETION OF THE AUDIT, ALL CERTIFICATIONS WERE COMPLETED AND NO ISSUES FOUND IN THE SUBSEQUENTLY COMPLETED LATE RECERTIFICATIONS. WE HAVE INSPECTED FILES AND VERIFIED THAT ANNUAL INCOME RECERTIFICATIONS HAVE BEEN COMPLETED FOR HTF, HOME AND NSP PROPERTIES EXCLUSIVELY OWNED BY LEAP CHA...

PRIOR TO THE COMPLETION OF THE AUDIT, ALL CERTIFICATIONS WERE COMPLETED AND NO ISSUES FOUND IN THE SUBSEQUENTLY COMPLETED LATE RECERTIFICATIONS. WE HAVE INSPECTED FILES AND VERIFIED THAT ANNUAL INCOME RECERTIFICATIONS HAVE BEEN COMPLETED FOR HTF, HOME AND NSP PROPERTIES EXCLUSIVELY OWNED BY LEAP CHARITIES, INC. MANAGEMENT HAS TAKEN CORRECTIVE ACTIONS TO CREATE QUALITY ASSURANCE CHECKPOINTS THAT REDUCE THE LIKELIHOOD OF LATE RECERTIFICATIONS OF INCOME IN THE FUTURE. SPECIFIC INTERVENTIONS ALREADY IMPLEMENTED INCLUDE THE USE OF PROPERTY MANAGEMENT SOFTWARE THAT PROVIDES AUTOMATIC REMINDERS RELATED TO INCOME COMPLIANCE REQUIREMENTS, STAFF TRAINING, AND INTERNAL COMPLIANCE DEPARTMENT REVIEWS. MANAGEMENT IS ADDITIONALLY SEEKING EXTERNAL COMPLIANCE REVIEWS. WE HAVE COMPLETED ALL RECERTIFICATIONS AS OF FEBRUARY 20, 2026. WE HAVE COMPLETED IMPLEMENTATION OF NEW SOFTWARE THAT PROVIDES REMINDERS FOR COMPLIANCE DEADLINES PER INDIVIDUAL HOMEOWNER. INTERNAL COMPLIANCE DEPARTMENT REVIEWS WERE IMPLEMENTED STARTING IN MARCH 2026. WE EXPECT ADDITIONAL STAFF TRAINING TO OCCUR BY APRIL 30, 2026. WE EXPECT TO ENGAGE AN EXTERNAL COMPLIANCE REVIEW ORGANIZATION BY JUNE 2026.

View Audit 399175

Finding 1208200 (2025-004)

Material Weakness 2025

UNITED WAY OF WEST TENNESSEE, INC.

TN

Eligibility § 200.303

United Way will ensure all timesheets are appropriately retained and approved.

View Audit 399104

Finding 1208170 (2025-006)

Material Weakness 2025

Stillwater County

MT

Subrecipient Monitoring Special Tests & Provisions Cash Management

FINDING 2025-006: FEMA Grants Response: The county finance office has implemented a project number for each grant received and follows other projects according to this numbering schedule. At the time of the initial FEMA grant operations there was not a Finance Officer in place, and all expenditure w...

FINDING 2025-006: FEMA Grants Response: The county finance office has implemented a project number for each grant received and follows other projects according to this numbering schedule. At the time of the initial FEMA grant operations there was not a Finance Officer in place, and all expenditure went into one Fund without description as to what expenditure they were covering. The FEMA grants for events in 2022 and 2023 are near close out with FEMA and the State, all revenue from these grants has been redeemed.

View Audit 399021

Finding 1207139 (2025-003)

Material Weakness 2025

Sacred Heart Rehabilitation Center, INC

MI

Eligibility

A checklist to ensure all files are completed and all information is maintained was developed. A review will be held after the reassessment, to ensure all required documentation is up to date and in the client file and in CAREWare.

View Audit 398994

Finding 1207138 (2025-002)

Material Weakness 2025

Sacred Heart Rehabilitation Center, INC

MI

Subrecipient Monitoring Eligibility

Although the updated MDHHS form 5522 has the same information as the outdated form, MDHHS was contacted to ensure Sacred Heart is on the state listserv to receive all MDHHS email updates and the program leader will contact the Contract Monitor prior to the start of the new contract year and search t...

Although the updated MDHHS form 5522 has the same information as the outdated form, MDHHS was contacted to ensure Sacred Heart is on the state listserv to receive all MDHHS email updates and the program leader will contact the Contract Monitor prior to the start of the new contract year and search the website periodically to ensure there are no updates to forms. All updated forms will be distributed to case managers.

View Audit 398994

Finding 1206856 (2025-002)

Material Weakness 2025

Casa Otonal Housing Corporation

CT

HUD Housing Programs Eligibility

Project Legal Name: Casa Otonal Housing Corporation HUD Project No.: 017-EH073 Audit Firm: CohnReznick LLP Period covered by the audit: 06/30/2025 Corrective Action Plan prepared by: Name: Sabine Cox Position: Comptroller/Director of Finance Telephone Number: (203) 230-4809 The following is a recomm...

Project Legal Name: Casa Otonal Housing Corporation HUD Project No.: 017-EH073 Audit Firm: CohnReznick LLP Period covered by the audit: 06/30/2025 Corrective Action Plan prepared by: Name: Sabine Cox Position: Comptroller/Director of Finance Telephone Number: (203) 230-4809 The following is a recommended format to be followed by the auditee for preparing a correction action plan: A. Current Findings on the Schedule of Findings, Questioned Costs and Recommendation Finding 2025-002 a. Comments on the Finding and Each Recommendation In connection with our lease file review, we noted the following deficiencies: For one out of one new tenant tested, the Project did not maintain evidence in the lease file that the Enterprise Income Verification ("EIV") system was utilized within 90 days of the tenant's initial certification date of April 1, 2025. For two out of ten existing tenants tested, the Project did not maintain evidence in the lease files that the EIV system was utilized within 120 days of the tenant's annual certification dates of August 1, 2024. For one out of one new tenant tested, the Project did not maintain evidence in the lease file that a move-in inspection was performed. b. Action(s) Taken or Planned on the Finding During the transition of a new site from a prior management company, the Property Manager, Regional Manager, and Director of Compliance must collaborate closely to conduct a thorough review of all tenant files. This coordinated effort helps ensure accuracy, identify any discrepancies early, and supports more effective and efficient use of the EIV system for tenant file testing.

View Audit 398860

Finding 1206654 (2025-001)

Material Weakness 2025

Blue Earth County

MN

HUD Housing Programs Eligibility

HQS Enforcement CORRECTIVE ACTION PLAN (CAP): Explanation of Disagreement with Audit Finding: There is no disagreement with the audit finding. Actions Planned in Response to Finding: To address the issues identified and prevent recurrence, the EDA has implemented the following corrective actions: 1....

HQS Enforcement CORRECTIVE ACTION PLAN (CAP): Explanation of Disagreement with Audit Finding: There is no disagreement with the audit finding. Actions Planned in Response to Finding: To address the issues identified and prevent recurrence, the EDA has implemented the following corrective actions: 1. StaffingA new rental housing inspector has been hired. The position has been converted from part-time to full-time, allowingadequate time for the inspector to monitor inspection timelines, complete required inspections and reinspections, andensure timely reporting and compliance with program requirements. 2. Training and CertificationStaff completed training on new inspection guidelines and protocols in March 2024. Certification in both HQS andNSPIRE inspection standards are currently underway for the new inspector. This training will ensure the inspector isfully knowledgeable of federal inspection requirements, documentation standards, and required compliancetimelines. 3. Improved Inspection Monitoring and DocumentationThe EDA has strengthen internal procedures for scheduling and tracking inspections and reinspections within theinspection software to ensure all failed inspections are documented and scheduled for reinspection within therequired timeframe. 4. Transition to Electronic Inspection ReportingThe EDA requires the use of iPad-based electronic inspections rather than paper inspection forms. This changeprovides real-time documentation, ensure inspections are entered directly into the tracking system, and reduce therisk of inspections being completed but not logged. 5.Compliance Notification and Payment ControlsA formal procedure has been established to notify appropriate staff in the event of inspection non-compliance. Underthis procedure, Housing Assistance Payments (HAP) will be held until compliance is achieved or the tenant has movedfrom the unit, consistent with program regulations. Management believes these corrective actions will strengthen internal controls over the inspection process, improve documentation and tracking, and ensure compliance with HUD Housing Quality Standards requirements moving forward. The EDA will continue to monitor inspection activities to maintain safe and habitable housing conditions for program participants. Official Responsible for Ensuring CAP: Nicole Cunningham, Housing Coordinator, is the official responsible for ensuring corrective action.

View Audit 398782

Corrective Action Plans

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