Corrective Action Plans

Finding 1164281 (2024-002)

Material Weakness 2024

Mac Housing Development Fund Corporation

NY

Special Tests & Provisions HUD Housing Programs

Name of auditee: MAC Housing Development Fund Corporation TIN: 014-EE134 Name of Audit Firm: EFPR Group, CPAs, PLLC Period covered by audit: September 30, 2024 CAP prepared by: Amanda Hamilton Finance Director Franklin County Community Housing Council, Inc. (518) 483-5934 Current Finding on the Sche...

Name of auditee: MAC Housing Development Fund Corporation TIN: 014-EE134 Name of Audit Firm: EFPR Group, CPAs, PLLC Period covered by audit: September 30, 2024 CAP prepared by: Amanda Hamilton Finance Director Franklin County Community Housing Council, Inc. (518) 483-5934 Current Finding on the Schedule of Findings and Questioned Costs and Recommendations (2) Finding 2024-002 (a) Comments on the finding and recommendation: Management agrees with the finding. Management also agrees with the recommendation. Please see below for action taken. (b) Action taken: Management has deposited the underfunded amount as of the date of this report.

View Audit 373668

Finding 1164259 (2024-001)

Material Weakness 2024

Hiv Alliance INC

OR

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

U.S. Department of Health and Human Services Significant Deficiency in Internal Controls over Compliance: Activities Allowed or Unallowed, Allowable Costs/Cost Principles, Reporting Recommendation: CLA recommends that additional emphasis of documentary evidence of approvals be made, and such evidenc...

U.S. Department of Health and Human Services Significant Deficiency in Internal Controls over Compliance: Activities Allowed or Unallowed, Allowable Costs/Cost Principles, Reporting Recommendation: CLA recommends that additional emphasis of documentary evidence of approvals be made, and such evidence obtained and retained by the Alliance as proof of oversight of expenditure of federal funds. Additionally, CLA recommends increased emphasis and training on the importance of consistent application of procedures and controls. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: All reports relating to a federally funded project will be reviewed prior to being submitted to the funding agency and documentation relating to that review will be retained by HIV Alliance. Name(s) of the contact person(s) responsible for corrective action: Renee Yandel, Executive Director; Wayne Hamblin, Finance Director Planned completion date for corrective action plan: July 1, 2025

View Audit 373559

Finding 1163592 (2024-002)

Material Weakness 2024

Zvago Cooperative at Long Lake

MN

Special Tests & Provisions HUD Housing Programs Significant Deficiency

The Cooperative is making required deposits to the General Operating Reserve. Management will implement a process to ensure deposits are made as required by the HUD regulatory agreement.

View Audit 373336

Finding 1163581 (2024-005)

Material Weakness 2024

Housing Authority of the City of Asheville

NC

Questioned Costs HUD Housing Programs Special Tests & Provisions

Federal Agency: U.S. Department of Housing and Urban Development Federal Program Titles: Moving to Work Demonstration Program - Section 8 Housing Choice Vouchers & Housing Voucher Cluster Federal Assistance Listing Numbers: 14.881, 14.871, 14.879, 14.EHV Noncompliance – N. Special Tests and Provisio...

Federal Agency: U.S. Department of Housing and Urban Development Federal Program Titles: Moving to Work Demonstration Program - Section 8 Housing Choice Vouchers & Housing Voucher Cluster Federal Assistance Listing Numbers: 14.881, 14.871, 14.879, 14.EHV Noncompliance – N. Special Tests and Provisions – HQS Inspections Non Compliance Material to the Financial Statements: No Significant Deficiency in Internal Control over Compliance for Special Tests and Provisions Criteria: HQS Inspections. Per the Authority's HCV Admin Plan, the PHA must inspect the unit leased to a family at least biennially to determine if the unit meets HQS standards and the PHA must conduct quality control re-inspections. The PHA must prepare a unit inspection report (24 CFR sections 982.158(d) and 982.405(b)). These inspection reports 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 inspection reports that were unavailable for examination at the time of audit. Context: Of a sample size of thirty-six (36) units in the Moving to Work Demonstration Program - Section 8 Housing Choice Vouchers, one (1) unit did not have a biennial HQS inspection performed. Of a sample size of fifteen (15) units in the Housing Voucher Cluster, three (3) units did not have a have a biennial HQS inspection performed. Our sample size is statistically valid. Known Questioned Costs: Moving to Work Demonstration Program - Section 8 Housing Choice Vouchers Program: $4,000 Housing Voucher Cluster: $9,268 Cause: There is a significant deficiency in internal controls over the compliance for the special tests and provisions type of compliance related to HQS inspections. 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 Moving to Work Demonstration - Section 8 Housing Choice Vouchers Program and Housing Voucher Cluster are in non-compliance with the special tests and provisions type of compliance related to HQS inspections. Auditors' Recommendation: We recommend the Authority design and implement internal control procedures that will reasonably assure compliance with the Uniform Guidance and the compliance supplement related to HQS inspections. View of Responsible Officials and Corrective Actions: The Authority has recognized the significant deficiency in the Moving to Work Demonstration - Section 8 Housing Choice Vouchers Program and Housing Voucher Cluster and will implement internal control procedures that will ensure compliance with federal regulations. Noelle Tackett, Director of the Housing Choice Voucher Program, will be responsible to implement this corrective action by December 31, 2025.

View Audit 373324 Questioned Costs: $1

Finding 1163580 (2024-004)

Material Weakness 2024

Housing Authority of the City of Asheville

NC

Questioned Costs HUD Housing Programs

Federal Agency: U.S. Department of Housing and Urban Development Federal Program Titles: Moving to Work Demonstration Program - Section 8 Housing Choice Vouchers & Housing Voucher Cluster Federal Assistance Listing Numbers: 14.881, 14.871, 14.879, 14.EHV Noncompliance – E. Eligibility – Tenant Files...

Federal Agency: U.S. Department of Housing and Urban Development Federal Program Titles: Moving to Work Demonstration Program - Section 8 Housing Choice Vouchers & Housing Voucher Cluster Federal Assistance Listing Numbers: 14.881, 14.871, 14.879, 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: Moving to Work Demonstration Program - Section 8 Housing Choice Vouchers Program: There are approximately 2,556 units. Of a sample size of thirty-six (36) tenant files, the following information was unavailable for examination at the time of audit: • Original application was missing in three (3) files • HUD-9887 form was missing in two (2) files • Lead based paint form was missing in one (1) file • Signed lease was missing in four (4) files • Verification of income was missing in two (2) files Housing Voucher Cluster: There are approximately 347 units. Of a sample size of fifteen (15) tenant files, the following information was unavailable for examination at the time of audit: • Citizenship declaration form was missing in one (1) file • Signed lease was missing in one (1) files • Verification of income was missing in two (2) files Our sample size is statistically valid. Known Questioned Costs: Moving to Work Demonstration Program - Section 8 Housing Choice Vouchers Program: $21,643 Housing Voucher Cluster: $34,166 Cause: There is a material weakness in internal controls over the compliance in the Moving to Work Demonstration - Section 8 Housing Choice Vouchers Program and Housing Voucher Cluster 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 Moving to Work Demonstration - Section 8 Housing Choice Vouchers Program and Housing Voucher Cluster are in material non-compliance with the eligibility type of compliance related to the maintenance of tenant files. Auditors' Recommendation: We recommend the Authority design and implement internal control procedures that will assure compliance with the Uniform Guidance and the compliance supplement related to eligibility requirements. View of Responsible Officials and Corrective Actions: The Authority accepts the recommendation of the auditor on the inspection of tenant files and has made arrangements to comply with the Moving to Work Demonstration - Section 8 Housing Choice Vouchers Program and Housing Voucher Cluster. Noelle Tackett, Director of the Housing Choice Voucher Program, will be responsible to implement this corrective action by December 31, 2025.

View Audit 373324 Questioned Costs: $1

Finding 1163579 (2024-003)

Material Weakness 2024

Housing Authority of the City of Asheville

NC

Questioned Costs HUD Housing Programs Special Tests & Provisions

Federal Agency: U.S. Department of Housing and Urban Development Federal Program Titles: Moving to Work Demonstration Program - Section 8 Housing Choice Vouchers & Housing Voucher Cluster Federal Assistance Listing Numbers: 14.881, 14.871, 14.879, 14.EHV Noncompliance – N. Special Tests and Provisio...

Federal Agency: U.S. Department of Housing and Urban Development Federal Program Titles: Moving to Work Demonstration Program - Section 8 Housing Choice Vouchers & Housing Voucher Cluster Federal Assistance Listing Numbers: 14.881, 14.871, 14.879, 14.EHV Noncompliance – N. Special Tests and Provisions – Housing Quality Standards (HQS) & HQS Enforcement Non Compliance Material to the Financial Statements: Yes Material Weakness in Internal Control over Compliance for Special Tests and Provisions Criteria: HQS & HQS Enforcement. For units under HAP contract that fail to meet HQS, the PHA must require the owner to correct all life threatening HQS deficiencies within 24 hours after the inspections and all other deficiencies within 30 days or within a specified PHA-approved extension. Condition: Based upon inspection of the Authority’s files and on discussion with management, the Authority did not properly abate or provide proper extension documentation for failed inspections selected for testing. In addition, there were inspection reports that were unavailable for examination at the time of audit. Context: The Authority did not properly abate thirteen (13) out of twenty-five (25) annual failed inspections selected for testing in the Moving to Work Demonstration Program - Section 8 Housing Choice Vouchers Program. As a result, the Authority was not in compliance with the HQS as required by 24 CFR sections 982.158(d) and 982.405(b). The Authority did not properly abate one (1) out of two (2) annual failed inspections selected for testing in the Housing Voucher Cluster. Additionally, the Authority was unable to provide inspection reports for 2 (two) out of 2 (two) failed inspections selected for testing, therefore we were unable to determine if the unit passed reinspection within the required time in the Housing Voucher Cluster. As a result, the Authority was not in compliance with the HQS as required by 24 CFR sections 982.158(d) and 982.405(b). Known Questioned Costs: Moving to Work Demonstration Program - Section 8 Housing Choice Vouchers Program: $22,500 Housing Voucher Cluster: $6,940 Cause: There is a material weakness in internal controls over the compliance in the Moving to Work Demonstration - Section 8 Housing Choice Vouchers Program and the Housing Voucher Cluster for the special tests and provisions type of compliance related to HQS enforcement. 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 Moving to Work Demonstration - Section 8 Housing Choice Vouchers Program and Housing Voucher Cluster are in material non-compliance with the special tests and provisions type of compliance related to HQS enforcement. Auditors' Recommendation: We recommend the Authority design and implement internal control procedures that will reasonably assure compliance with the Uniform Guidance and the compliance supplement related to HQS enforcement. View of Responsible Officials and Corrective Actions: The Authority accepts the recommendation of the auditor regarding HQS inspections and has made arrangements to comply with the Moving to Work Demonstration - Section 8 Housing Choice Vouchers program. Noelle Tackett, Director of the Housing Choice Voucher Program, will be responsible to implement this corrective action by December 31, 2025.

View Audit 373324 Questioned Costs: $1

Finding 1163578 (2024-006)

Material Weakness 2024

Housing Authority of the City of Asheville

NC

HUD Housing Programs Special Tests & Provisions Reporting

Federal Agency: U.S. Department of Housing and Urban Development Federal Program Titles: Housing Voucher Cluster Federal Assistance Listing Numbers: 14.871, 14.879, 14.EHV Noncompliance – N. Special Tests and Provisions – Depository Agreements Non Compliance Material to the Financial Statements: No ...

Federal Agency: U.S. Department of Housing and Urban Development Federal Program Titles: Housing Voucher Cluster Federal Assistance Listing Numbers: 14.871, 14.879, 14.EHV Noncompliance – N. Special Tests and Provisions – Depository Agreements Non Compliance Material to the Financial Statements: No Significant Deficiency in Internal Control over Compliance for Special Tests and Provisions Criteria: PHAs are required to enter into general depository agreements (GDA) with their financial institutions in the form required by HUD. The agreements serve as safeguards for federal funds and provide third party rights to HUD. Among the terms in many agreements are requirements for funds to be placed in an interest-bearing account (24 CFR section 982.156). Condition: Based on inspection of files and discussions with management, it was determined that the depository agreements were signed after the reporting period. Context: The Authority did not have signed depository agreements with their financial institutions on file during the reporting period, therefore we were unable to verify the existence of depository agreements and unable to determine if the Authority met the terms of the agreements. Cause: There is a significant deficiency in internal controls over compliance for the special tests and provision type of compliance related to depository agreements. The Authority has not properly considered, designed, implemented, maintained and monitored a system of internal controls for their partnered management company that assures the program is in compliance. Effect: The Housing Voucher Cluster is in noncompliance with the special tests and provisions type of compliance related to depository agreements. Auditors' Recommendation: We recommend that the Authority properly file HUD-51999 forms in accordance with HUD guidelines. View of Responsible Officials and Corrective Actions: The Authority accepts the recommendation of the auditor and will properly file HUD- 51999 forms in accordance with HUD guidelines. Noelle Tackett, Director of the Housing Choice Voucher Program, will be responsible to implement this corrective action by December 31, 2025.

View Audit 373324

Finding 1163524 (2024-004)

Material Weakness 2024

Town of Union

NY

HUD Housing Programs Reporting Matching / Level of Effort / Earmarking § 200.512

Name of Auditee: Town of Union, New York Name of Audit Firm: EFPR Group, CPAs, PLLC Period Covered by the Audit: Year ended December 31, 2024 CAP Prepared by: Jennifer Lindsay, Comptroller Phone: (607) 786-2931 (4) Audit Finding 2024-004 - The Town did not submit its audited financial information fo...

Name of Auditee: Town of Union, New York Name of Audit Firm: EFPR Group, CPAs, PLLC Period Covered by the Audit: Year ended December 31, 2024 CAP Prepared by: Jennifer Lindsay, Comptroller Phone: (607) 786-2931 (4) Audit Finding 2024-004 - The Town did not submit its audited financial information for the year ended December 31, 2024, to the FAC or to HUD via the FDS by the required deadlines. (a) Implementation Plan of Actions - The Town will work with MUNIS representatives to address specific challenges and expedite the resolution of technical system issues. (b) Implementation Date - This will be implemented for the year ending December 31, 2025. (c) Persons Responsible for Implementation - The Comptroller and the Town Board.

View Audit 373182

Finding 1163515 (2024-002)

Material Weakness 2024

Catholic Housing Corporation of St. Clair

PA

Questioned Costs HUD Housing Programs

Management’s Response: Management will initiate controls to ensure that the funds from the calculation of the prior year surplus cash calculation are deposited in the residual receipts reserve for the year ended December 31, 2025.

View Audit 373162 Questioned Costs: $1

Finding 1163514 (2024-002)

Material Weakness 2024

Catholic Housing Corporation of Schuylkill County

PA

Questioned Costs HUD Housing Programs

Management’s Response: Management will initiate controls to ensure that the funds from the calculation of the prior year surplus cash calculation are deposited in the residual receipts reserve for the year ended December 31, 2025.

View Audit 373160 Questioned Costs: $1

Finding 1163513 (2024-002)

Material Weakness 2024

Catholic Housing Corporation of Northern Berks County

PA

Questioned Costs HUD Housing Programs

Management’s Response: Management will initiate controls to ensure that the funds from the calculation of the prior year surplus cash calculation are deposited in the residual receipts reserve for the year ended December 31, 2025.

View Audit 373159 Questioned Costs: $1

Finding 1163512 (2024-002)

Material Weakness 2024

The Antonian LTD Dba Antonian Towers Pa26-T841-007

PA

Questioned Costs HUD Housing Programs

Management’s Response: Management will initiate controls to ensure that the funds from the calculation of the prior year surplus cash calculation are deposited in the residual receipts reserve for the year ending December 31, 2025.

View Audit 373155 Questioned Costs: $1

Finding 1163438 (2024-003)

Material Weakness 2024

City of Jacinto City, Texas

TX

Internal Control / Segregation of Duties Subrecipient Monitoring HUD Housing Programs § 200.303 § 200.328

City will establish a clear policy with grant management firm to provide an opportunity for review and approval of monthly and quarterly reports to GLO.

View Audit 373038

Finding 1163378 (2024-005)

Material Weakness 2024

Economic Development Bank for Puerto Rico

PR

Subrecipient Monitoring Reporting HUD Housing Programs § 200.302 § 200.328

Management concurs that reconciliation procedures can be strengthened. All accounting and reporting activities are performed using the Recipient systems, ensuring compliance with HUD reporting standards. Enhancements will focus on improving documentation and internal oversight.

View Audit 372904

Finding 1163377 (2024-004)

Material Weakness 2024

Economic Development Bank for Puerto Rico

PR

Allowable Costs / Cost Principles Procurement, Suspension & Debarment HUD Housing Programs

Management acknowledges the recommendation and confirms that grant disbursements are processed using the systems and procedures established by the Recipient. Management is committed to reinforcing review processes to ensure proper documentation and oversight while remaining compliant with HUD requir...

Management acknowledges the recommendation and confirms that grant disbursements are processed using the systems and procedures established by the Recipient. Management is committed to reinforcing review processes to ensure proper documentation and oversight while remaining compliant with HUD requirements.

View Audit 372904

Finding 1163375 (2024-002)

Material Weakness 2024

Economic Development Bank for Puerto Rico

PR

Subrecipient Monitoring Reporting Cash Management

Management concurs with the facts presented by the auditor. However, we do not agree with the conclusion that there is a lack of adequate internal controls in the area of program reports and accounting records. The Bank, as a Subrecipient, performs the closing of the CDBG-DR SBF grants and records e...

Management concurs with the facts presented by the auditor. However, we do not agree with the conclusion that there is a lack of adequate internal controls in the area of program reports and accounting records. The Bank, as a Subrecipient, performs the closing of the CDBG-DR SBF grants and records each transaction in a system provided by the Recipient and its consultants. The Administrative and Performance Reports referenced by the auditor are automatically generated from the grant management systems provided by the Recipient. The differences reflected between the Bank’s records and these reports result from a system error under the exclusive control of the Recipient and its consultants. These differences were duly reported to the Recipient and its consultants for correction.

View Audit 372904

Finding 1163322 (2024-001)

Material Weakness 2024

Koinonia, Inc. 053-11202

NC

Questioned Costs HUD Housing Programs Internal Control / Segregation of Duties § 200.302 § 200.303

Koinonia, Inc. Lenoir, North Carolina CORRECTIVE ACTION PLAN October 31, 2025 U.S. Department of Housing and Urban Development Charles Bennett Federal Building 400 West Bay Street, Suite 1015 Jacksonville, Florida 32202 Koinonia, Inc. respectfully submits the following Corrective Action Plan for the...

Koinonia, Inc. Lenoir, North Carolina CORRECTIVE ACTION PLAN October 31, 2025 U.S. Department of Housing and Urban Development Charles Bennett Federal Building 400 West Bay Street, Suite 1015 Jacksonville, Florida 32202 Koinonia, Inc. respectfully submits the following Corrective Action Plan for the year ended December 31, 2024. Bernard Robinson & Company, L.L.P. 1501 Highwoods Blvd., Suite 300 Post Office Box 19608 Greensboro, North Carolina 27419-9608 The finding from the year ended December 31, 2024 Schedule of Findings and Questioned Costs is discussed below. The finding is numbered consistently with the number assigned in the schedule. FINDING - Financial Statement Audit and Federal Award Program Audit Finding 2024-001: U.S. Department of Housing and Urban Development, Mortgage Insurance for the Purchase or Refinancing of Existing Multifamily Housing Projects (Section 223(f)/207) Recommendation: We recommend management review/enhance its accounting and internal control procedures to ensure that all key accounts are reconciled and reviewed with supporting evidence of such review. Action Taken: We agree with Finding 2024-001 and the recommendation described in the accompanying schedule of findings and questioned costs. Management will review the accounting and financial procedures, system of internal controls and policies. If HUD has questions regarding this corrective action plan, please call 828-758-2617. Sincerely yours, Chassidy Triplett Project Administrator Koinonia, Inc.

View Audit 372842 Questioned Costs: $1

Finding 1163269 (2024-001)

Material Weakness 2024

Wingo Elderly Housing Corporation D/b/a Locust Ridge Apartments

KY

Questioned Costs Cash Management HUD Housing Programs

Management will deposit required amounts.

View Audit 372786 Questioned Costs: $1

Finding 1163234 (2024-002)

Material Weakness 2024

Benton Franklin Community Action Committee

WA

Questioned Costs Allowable Costs / Cost Principles HUD Housing Programs

BFCAC made a change in personnel during 2024. Subsequently, BFCAC has emphasized the need to maintain supporting documentation for all charges, including changes to timesheets, and supporting documentation for manual adjustments. The Executive Director and the Finance Manager are responsible for thi...

BFCAC made a change in personnel during 2024. Subsequently, BFCAC has emphasized the need to maintain supporting documentation for all charges, including changes to timesheets, and supporting documentation for manual adjustments. The Executive Director and the Finance Manager are responsible for this corrective action.

View Audit 372721 Questioned Costs: $1

Finding 1163170 (2024-001)

Material Weakness 2024

Purdy R-II School District

MO

Internal Control / Segregation of Duties HUD Housing Programs

CORRECTIVE ACTION PLAN August 13, 2024 U.S. DEPARTMENT OF EDUCATION U.S. DEPT. OF AGRICULTURE Purdy School District R-II respectfully submits the following corrective action plan for the year ended June 30, 2024. Contact information for the individual responsible for the corrective action: Dr Travis...

CORRECTIVE ACTION PLAN August 13, 2024 U.S. DEPARTMENT OF EDUCATION U.S. DEPT. OF AGRICULTURE Purdy School District R-II respectfully submits the following corrective action plan for the year ended June 30, 2024. Contact information for the individual responsible for the corrective action: Dr Travis Graham, Superintendent Purdy School District R-II 201 Gabby Gibbons Dr Purdy, MO 65734 (417) 442-3215 Independent Public Accounting Firm: The CPA Group, PC, 217 4th Street, Monett, MO 65708 Audit Period: Year ended June 30, 2024 The findings from the June 30, 2024, Schedule of Findings and Questioned Costs are discussed below. The findings are numbered consistently with the numbers assigned in the schedule. FINDINGS – FINANCIAL STATEMENT AUDIT Material Weakness – Internal Control over Financial Reporting - Segregation of duties Finding 2024-001 Recommendation: We realize Because of limited resources and personnel, management may not be able to achieve a proper segregation of duties; however, our professional standards require that we bring this lack of segregation of duties to your attention in this report. Action Taken: The limited number of available personnel prohibits segregation of incompatible duties and the District does not have the resources to hire additional accounting personnel. Completion Date: Not applicable Sincerely, Dr Travis Graham, Superintendent Purdy School District R-II

View Audit 372681

Finding 1163051 (2024-001)

Material Weakness 2024

Southwest R-V School District

MO

Internal Control / Segregation of Duties HUD Housing Programs

CORRECTIVE ACTION PLAN August 20, 2024 UNITED STATES DEPARTMENT OF EDUCATION UNITED STATES DEPARTMENT OF AGRICULTURE Southwest R-V School District respectfully submits the following corrective action plan for the year ended June 30, 2024. Contact information for the individual responsible for the co...

CORRECTIVE ACTION PLAN August 20, 2024 UNITED STATES DEPARTMENT OF EDUCATION UNITED STATES DEPARTMENT OF AGRICULTURE Southwest R-V School District respectfully submits the following corrective action plan for the year ended June 30, 2024. Contact information for the individual responsible for the corrective action: Dr. Tosha Tilford, Superintendent Southwest R-V School District 529 Pineville Rd Washburn, MO 65772 (417) 826-5410 Independent Public Accounting Firm: The CPA Group, PC, 217 4th Street, Monett, MO 65708 Audit Period: Year ended June 30, 2024 The findings from the June 30, 2024, Schedule of Findings and Questioned Costs are discussed below. The findings are numbered consistently with the numbers assigned in the schedule. FINDINGS – FINANCIAL STATEMENT AUDIT Material Weakness – Internal Control over Financial Reporting - Segregation of duties Finding 2024-001 Recommendation: We realize Because of limited resources and personnel, management may not be able to achieve a proper segregation of duties; however, our professional standards require that we bring this lack of segregation of duties to your attention in this report. Action Taken: The limited number of available personnel prohibits segregation of incompatible duties and the District does not have the resources to hire additional accounting personnel. Completion Date: Not applicable Sincerely, Dr. Tosha Tilford, Superintendent Southwest R-V School District

View Audit 372616

Finding 1162999 (2024-006)

Material Weakness 2024

New Brighton Borough

PA

Internal Control / Segregation of Duties HUD Housing Programs

2024-6 Segregation of Duties Recommendation: Ideally, the Borough would hire the number of staff necessary to segregate all duties. However, we realize segregation of duties is not practical, if not impossible. Because of this internal control situation, the responsibility of the Business Manager is...

2024-6 Segregation of Duties Recommendation: Ideally, the Borough would hire the number of staff necessary to segregate all duties. However, we realize segregation of duties is not practical, if not impossible. Because of this internal control situation, the responsibility of the Business Manager is greatly increased because the Board must rely on his knowledge of the everyday operations to discover any material changes in the Borough's financial position.Management's Response: The Borough recognizes that the limited number of staff adds to the risk associated with the daily operations. To mitigate this risk, the Assistant Borough Manager has to take an active role in the day-to-day operations of the Business Unit. She actively reviews all reconciliations and receipts to ensure they are posted to the accounting system properly. In addition, Borough Council approves all disbursements.

View Audit 372591

Finding 1162880 (2024-002)

Material Weakness 2024

City of Hempstead, Texas

TX

Internal Control / Segregation of Duties Special Tests & Provisions Subrecipient Monitoring § 200.303 § 200.328

Finding 2024-002: Insufficient Documentation of Management Review of Section 3 Quarterly and Annual Reporting Planned Corrective Action: Management agrees with the finding and will establish a formal review and approval process for all Section 3 quarterly and annual reports prepared and submitted by...

Finding 2024-002: Insufficient Documentation of Management Review of Section 3 Quarterly and Annual Reporting Planned Corrective Action: Management agrees with the finding and will establish a formal review and approval process for all Section 3 quarterly and annual reports prepared and submitted by the grant administrator to the Texas General Land Office. Going forward, the City Secretary will review each report for accuracy and completeness prior to submission, and evidence of this review, such as signed approval or email confirmation, will be retained in the grant files. The City anticipates implementing this procedure for all future reporting periods to ensure compliance with federal reporting and internal control requirements. Anticipated Completion Date: December 2025

View Audit 372549

Finding 1162712 (2024-005)

Material Weakness 2024

Anthony Housing Authority

TX

HUD Housing Programs Reporting

Corrective Action Plan Finding: 2024-005-Reporting Deadline Not Met-Reporting Condition: The audit report is being filed beyond the due date. Corrective Action Planned: We will comply with the auditor’s recommendation. Person responsible for corrective action: Louie Alfaro, Executive Director Teleph...

Corrective Action Plan Finding: 2024-005-Reporting Deadline Not Met-Reporting Condition: The audit report is being filed beyond the due date. Corrective Action Planned: We will comply with the auditor’s recommendation. Person responsible for corrective action: Louie Alfaro, Executive Director Telephone: (915) 886-4650 Housing Authority of the Town of Anthony, Texas Fax: (915) 886-2296 1007 Franklin Anthony, TX 79821 Anticipated Completion Date: September 30, 2025

View Audit 372346

Finding 1162711 (2024-003)

Material Weakness 2024

Anthony Housing Authority

TX

HUD Housing Programs Internal Control / Segregation of Duties

Corrective Action Plan Finding: 2024-003-Lack of quality control and SEMAP-Eligibility and Special Tests Condition: The tenant files and waiting list were much improved over the prior year, for which numerous exceptions were noted. However, we did note the following: (a)-SEMAP was apparently not pre...

Corrective Action Plan Finding: 2024-003-Lack of quality control and SEMAP-Eligibility and Special Tests Condition: The tenant files and waiting list were much improved over the prior year, for which numerous exceptions were noted. However, we did note the following: (a)-SEMAP was apparently not prepared by prior management. SEMAP is required by HUD regulations. This is a documentation that quality control was performed, broken down into subsets. Even if SEMAP was not required by HUD, at least similar documented quality control should be done and available for third party review. Statement of Auditing Standard #115, which auditors must follow, states “absent or inadequate segregation of duties within a significant account or process” is defined by the Standard as at least a significant deficiency or material weakness. Either require an audit finding. (b)-It appears that quality control inspections were not done. (c)-It appears that the last utility allowance review was done in August 2023. Federal regulations require that utility allowances be done annually. At least when any one category changes more than 10% since the last review, the allowances must be revised. Corrective Action Planned: We will comply with the auditor’s recommendation. Person responsible for corrective action: Louie Alfaro, Executive Director Telephone: (915) 886-4650 Housing Authority of the Town of Anthony, Texas Fax: (915) 886-2296 1007 Franklin Anthony, TX 79821 Anticipated Completion Date: September 30, 2025

View Audit 372346

Corrective Action Plans

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