Corrective Action Plans

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Funds were withdrawn from the reserve for replacement account to cover an operational shortfall and were withdrawn without HUD approval. Response: Management will refund the replacement reserve for the cash withdrawn as soon as possible.
Funds were withdrawn from the reserve for replacement account to cover an operational shortfall and were withdrawn without HUD approval. Response: Management will refund the replacement reserve for the cash withdrawn as soon as possible.
The Organization should fund the security deposit account immediately and cease using these funds for operations. In acknowledgement of the seriousness of the issue (security deposit funds had been moved to the operating account), a new control system has been established for a more thorough review ...
The Organization should fund the security deposit account immediately and cease using these funds for operations. In acknowledgement of the seriousness of the issue (security deposit funds had been moved to the operating account), a new control system has been established for a more thorough review of security deposit accounts. Furthermore, the Controller is no longer with the management company.
Administrative delays resulted in poor cash flow in 2023. Those delays have been resolved and Management expects to fund the replacement reserve adequately for 2024 and catch up with the missed deposits from 2023.
Administrative delays resulted in poor cash flow in 2023. Those delays have been resolved and Management expects to fund the replacement reserve adequately for 2024 and catch up with the missed deposits from 2023.
Finding Number: 2023-001 Condition: The Corporation failed to make the required reserve for replacements deposits in the current fiscal year. The Corporation made 3 deposits, a suspension was approved for 6 months, therefore 3 months were underfunded. Planned Corrective Action: Management will be...
Finding Number: 2023-001 Condition: The Corporation failed to make the required reserve for replacements deposits in the current fiscal year. The Corporation made 3 deposits, a suspension was approved for 6 months, therefore 3 months were underfunded. Planned Corrective Action: Management will be making payments during the year ended August 31, 2024 in order to correct the funding of the replacement reserve account. Contact person responsible for corrective action: Jill Kolb, Vice President Housing Accounting Anticipated Completion Date: August 31, 2024 Contact person responsible for corrective action: Jill Kolb, Vice President Housing Accounting Anticipated Completion Date: August 31, 2024
The Organization was fortunate to have sufficient cash on hand in order to continue to provide the highest quality of care to its residents during the COVID-19 pandemic, primarily as a result of federal and state stimulus funds, which were restricted in usage, received during 2020 and 2021. The Orga...
The Organization was fortunate to have sufficient cash on hand in order to continue to provide the highest quality of care to its residents during the COVID-19 pandemic, primarily as a result of federal and state stimulus funds, which were restricted in usage, received during 2020 and 2021. The Organization made it a priority to ensure that its staff continued to be compensated throughout the pandemic. Accordingly, the Organization kept cash on hand in order to meet the needs of the residents cared for daily and the dedicated staff who serve them. The Organization was not expecting a surplus cash situation at December 31, 2020 or June 30, 2021. Had the Organization not received stimulus funds through programs such as the Provider Relief Fund and Paycheck Protection Program, the Organization would not have had surplus cash at both December 31, 2020 and June 30, 2021. The required deposit due to the residual receipt account for the year ended December 31, 2020 was made on May 31, 2022. The Organization is currently in the process of discussing repayment terms for the deposit due for the period June 30, 2021 with its asset manager.
The Organization is a community based non-profit and considers supporting local businesses, including a bank, a worthwhile business practice. The Organization is currently in the process of reviewing its banking relationships, and looking at other scenarios which would involve transferring funds to ...
The Organization is a community based non-profit and considers supporting local businesses, including a bank, a worthwhile business practice. The Organization is currently in the process of reviewing its banking relationships, and looking at other scenarios which would involve transferring funds to another institution.
Finding Number 2023-2 Condition: Cathedral Towers did not indicate the date and time received on two applications. Criteria: Per HUD Handbook 4350.3, the project owner must indicate on the application the date and time received, either by using and date and time stamp or by writing and initialing...
Finding Number 2023-2 Condition: Cathedral Towers did not indicate the date and time received on two applications. Criteria: Per HUD Handbook 4350.3, the project owner must indicate on the application the date and time received, either by using and date and time stamp or by writing and initialing the date and time received. Cause: Applications are generally stamped with the date and time received and signed by a representative of Cathedral Towers, Inc. Two stamps and signatures were not appropriately applied in tenant files reviewed during compliance testing. Effect: Two tenant applications did not include evidence of the date and time received. Amount in Questioned Cost: $0 Recommendation: Cathedral Towers should review the procedures in place to ensure tenant application files include evidence of the date and time received. Auditee’s Response: Cathedral Towers agreed with the finding and will review the application process to ensure the required steps are performed and documented.
We have discussed and reviewed the HUD and State of Minnesota security deposit requirements with our staff. The staff understands the 21-day requirement and will process security deposit refunds or notify the tenant of the balance owed in excess of the deposit within 21 days of the tenant moving out...
We have discussed and reviewed the HUD and State of Minnesota security deposit requirements with our staff. The staff understands the 21-day requirement and will process security deposit refunds or notify the tenant of the balance owed in excess of the deposit within 21 days of the tenant moving out.
Comments on the Finding and Each Recommendation: The Corporation did not obtain a HUD approved Project Owner's/Management Agent's Certification (Form HUD-9839-B) and the Property paid unapproved management fees to the Agent. The Agent should submit an updated Project Owner's/Management Agent's Certi...
Comments on the Finding and Each Recommendation: The Corporation did not obtain a HUD approved Project Owner's/Management Agent's Certification (Form HUD-9839-B) and the Property paid unapproved management fees to the Agent. The Agent should submit an updated Project Owner's/Management Agent's Certification for HUD's review and approval. Action(s) taken or planned on the finding: Management concurs with the finding and recommendation, and the Agent will submit an updated Project Owner's/Management Agent's Certification for HUD's review and approval.
Department of Housing and Urban Development Federal Financial Assistance Listing #14.128 Section 242 – Mortgage Insurance ‐ Hospitals Reporting Finding Summary: The Section 242 – Mortgage Insurance ‐ Hospitals Program requires quarterly reports and certain annual reports. For the year ended July 31,...
Department of Housing and Urban Development Federal Financial Assistance Listing #14.128 Section 242 – Mortgage Insurance ‐ Hospitals Reporting Finding Summary: The Section 242 – Mortgage Insurance ‐ Hospitals Program requires quarterly reports and certain annual reports. For the year ended July 31, 2023, the Organization failed to file the annual budget prior to the start of the year. Responsible Individuals: Paul Courtney, CFO Corrective Action Plan: Management will enhance internal controls to ensure that required reports under the Section 242 Program are submitted timely and accurately. Anticipated Completion Date: June 30, 2024
Department of Housing and Urban Development Federal Financial Assistance Listing #14.128 Section 242 – Mortgage Insurance – Hospitals Department of Health and Human Services Federal Financial Assistance Listing #93.498 COVID‐19 Provider Relief Fund and American Rescue Plan (ARP) Rural Distribution A...
Department of Housing and Urban Development Federal Financial Assistance Listing #14.128 Section 242 – Mortgage Insurance – Hospitals Department of Health and Human Services Federal Financial Assistance Listing #93.498 COVID‐19 Provider Relief Fund and American Rescue Plan (ARP) Rural Distribution Applicable Federal Award Number and Year – Period 4 TIN #370645239 Preparation of Schedule of Expenditures of Federal Awards - Other Finding Summary: Eide Bailly LLP prepated the consolidated schedule of expenditures of federal awards ("Schedule") and the accompanying notes to the Schedule as the Organization does not have a system of internal control adequate for its preparation. Responsible Individuals: Paul Courtney, CFO Corrective Action Plan: Given the size of the Organization and its limited staffing, it will be necessary for the entity to continue its reliance on Eide Bailly LLP for completion of future Schedules. Anticipated Completion Date: Ongoing
Corrective Action Plan: I am in receipt of the draft finding letter for the audit that was recently conducted for the Housing Authority of McDonough County. Of the 15 tenant files randomly chosen to review, 7 were not in compliance. Discrepancies include: • Failing to gather proper income verificati...
Corrective Action Plan: I am in receipt of the draft finding letter for the audit that was recently conducted for the Housing Authority of McDonough County. Of the 15 tenant files randomly chosen to review, 7 were not in compliance. Discrepancies include: • Failing to gather proper income verification; • Failing to properly calculate annual income; • Failing to maintain EIV documentation; • Failing to maintain birth certificates or social security cards; and • Failing to maintain Declaration 214s. As I am Executive Director, I am responsible for the Corrective Action Plan that will include rental calculation and HOTMA training for a property managers and me. I am scheduled to attend a rent calc/HOTMA training seminar the week of March 18th. The managers are scheduled to attend a rent calc/HOTMA training seminar the week of April 3rd. In addition, a Quality Assurance program to monitor tenant files will be in effect by April 30, 2024. Anticipated Completion Date: April 30, 2024. Person Responsible: Annette Carper, Executive Director
The following represents the Corrective Action Plan related to the audit finding listed in the Schedule of Findings and Questioned Costs included in the December 31, 2023 audited financial statements of Machester Supportive Housing, Inc. d/b/a Page Place: Finding 2023-001: Failure to make the correc...
The following represents the Corrective Action Plan related to the audit finding listed in the Schedule of Findings and Questioned Costs included in the December 31, 2023 audited financial statements of Machester Supportive Housing, Inc. d/b/a Page Place: Finding 2023-001: Failure to make the correct required deposit into the Reserve for Replacement Account. Condition and Criteria: The Corporation failed to increase its monthly deposits into its Reserve for Replacement account based on a required increase in its monthly deposit. The incorrect deposit was made during the months September 2022 through January 2023. As a result, its reserve for replacement account has been underfunded by $4,750. Management Response and Corrective Action Plan: Management agrees with the finding. The Corporation will make an additional deposit in April 2024 to satisfy this deficiency.
The following represents the Corrective Action Plan related to the audit finding listed in the Schedule of Findings and Questioned Costs included in the December 31, 2023 audited financial statements of McDonald Presbyterian Senior Housing, Inc. d/b/a HaveLoch Commons: Finding 2023-001: Incorrect El...
The following represents the Corrective Action Plan related to the audit finding listed in the Schedule of Findings and Questioned Costs included in the December 31, 2023 audited financial statements of McDonald Presbyterian Senior Housing, Inc. d/b/a HaveLoch Commons: Finding 2023-001: Incorrect Eligibility Assessment Condition and Criteria: The Corporation made a data entry error for the annual medical expenses of a resident. Accurate financial information is essential in order to calculate the correct subsidy each resident is eligible for. Management Response and Corrective Action Plan: Management agrees with the finding. The Corporation will perform re-education to its existing members on the importance of this data entry, and update its standard review process over these calculations in order to detect errors on a timely basis.
Condition: Gethsemane Manor Apartments did not make all twelve required deposits to the replacement reserve account. Recommendation: Gethsemane Manor Apartments should deposit the necessary funds as soon as possible to ensure that the replacement reserve is fully funded in accordance with the HU...
Condition: Gethsemane Manor Apartments did not make all twelve required deposits to the replacement reserve account. Recommendation: Gethsemane Manor Apartments should deposit the necessary funds as soon as possible to ensure that the replacement reserve is fully funded in accordance with the HUD Regulatory Agreement. Action Taken: The missed deposits will be made as soon as the operating cash becomes available.
Finding Number: 2023-017 Federal Program: 14.218, Department of Housing and Urban Development (HUD), CDBG – Entitlement Grants Cluster, Community Development Block Grants/Entitlement Grants Program (CDBG) Condition Per Auditor: The County filed the FFATA report seven months late Planned Corrective A...
Finding Number: 2023-017 Federal Program: 14.218, Department of Housing and Urban Development (HUD), CDBG – Entitlement Grants Cluster, Community Development Block Grants/Entitlement Grants Program (CDBG) Condition Per Auditor: The County filed the FFATA report seven months late Planned Corrective Action: Management agrees with this finding. The County will implement a notification process to include communication to the grants division once grant contracts are approved. Subsequent FFATA reports will be filed of notification of approval no later than the last day of the month following the month in which the subaward/subaward amendment obligation. Anticipated Completion Date: 6/30/25 Responsible Contact Person: Shauntika Bullard
Finding Number: 2023-016 Federal Program: 14.218, Department of Housing and Urban Development (HUD), CDBG – Entitlement Grants Cluster, Community Development Block Grants/Entitlement Grants Program (CDBG), COVID 19 Community Development Block Grants/Entitlement Grants Program (CDBG-CV) Condition Per...
Finding Number: 2023-016 Federal Program: 14.218, Department of Housing and Urban Development (HUD), CDBG – Entitlement Grants Cluster, Community Development Block Grants/Entitlement Grants Program (CDBG), COVID 19 Community Development Block Grants/Entitlement Grants Program (CDBG-CV) Condition Per Auditor: The County did not have adequate controls in place to submit the Consolidated Annual Performance and Evaluation Report (CAPER) for the program year ended June 30, 2023 within 90 days after the close of the program year. Planned Corrective Action: Management agrees with the finding. Prior to submitting the CAPER, it was brought to the attention of staff that the CDBG Financial Summary Report had to be completed and attached to the CAPER. Staff held discussions with HUD during a MSHDA Conference (September of 2022) to obtain assistance in completing the report. It was suggested that a meeting would be necessary to provide technical assistance for the report. Staff met with HUD October 4th to discuss the report and provide further guidance. The CAPER report was completed and submitted October 6th. The CDBG Financial Summary Report was completed as part of the CAPER. Management will ensure the CAPER is submitted prior to the deadline moving forward. Anticipated Completion Date: 6/30/25 Responsible Contact Person: Tuesday Redmond
Finding Number: 2023-015 Federal Program: 14.218 – U.S. Department of Housing and Urban Development (HUD) – Community Development Block Grant (CDBG) – Entitlement Grants Cluster 93.563 – Title IV-D, U.S. Department of Health and Human Service - Child Support Enforcement (CSE) 10.557, U.S. Department...
Finding Number: 2023-015 Federal Program: 14.218 – U.S. Department of Housing and Urban Development (HUD) – Community Development Block Grant (CDBG) – Entitlement Grants Cluster 93.563 – Title IV-D, U.S. Department of Health and Human Service - Child Support Enforcement (CSE) 10.557, U.S. Department of Agriculture – WIC Special Supplemental Nutrition Program for Women, Infants, and Children Condition Per Auditor: Controls in place were not adequate to ensure compliance with 2 CFR 200 Appendix V submission requirements for the County’s self insurance cost allocation process and annual chargeback plan. Planned Corrective Action: Management communicated with the cognizant agency which confirmed in November 2021, OMB issued guidance relating to CARES Act funding and its effect on indirect cost. Part of this guidance stated that “CARES Act funding should not be included toward the threshold amount for indirect cost submission required in 2 C.F.R. part 200, Appendix VII, paragraph D.1.b”. Therefore, County governments that met the $100 million threshold as a result of CARES Act funding are not required to submit their Central Service Cost Allocation Plan for approval. The CARES Act funding would have increased the County’s funding in excess of $100 million, which should not have been a part of the determination for the original finding. However, since CSLFRF funds were also received increasing the County’s funding in excess of $100 million the annual chargeback plans were submitted to the cognizant agency and U.S. Treasury in 2023 for implementation in FY 24 and will continue to submit subsequent plans to federal cognizant agency, as required by 2 CFR 200 Appendix V. Anticipated Completion Date: 9/30/24 Responsible Contact Person: Shauntika Bullard and Michael Bridges
Finding Number: 2023-013 Federal Program: 21.027, US Department of Treasury, COVID-19 – Coronavirus State and Local Fiscal Recovery Fund (CSLFRF) Condition Per Auditor: The County entered into intergovernmental agreements with local communities using the revenue loss provision of the County’s CSLFRF...
Finding Number: 2023-013 Federal Program: 21.027, US Department of Treasury, COVID-19 – Coronavirus State and Local Fiscal Recovery Fund (CSLFRF) Condition Per Auditor: The County entered into intergovernmental agreements with local communities using the revenue loss provision of the County’s CSLFRF award. Those contracts contained subrecipient language/provisions. The County did not have adequate controls in place to ensure that the form and substance of these agreements were in compliance with the intended nature of the relationship and/or the requirements of the federal award. Planned Corrective Action: Management does not agree with this finding. As noted in the Condition of this finding itself, the agreements in question are intergovernmental agreements, clearly labeled as such. They specifically state they are funding each project with SLFRF funds under the Revenue Replacement Category (Category 6.1). Section 4.01 states “Project Funds must be used for eligible activities for revenue replacement funds as described in the SLFRF final rules, regulations, and guidance.” As Management informed the auditor before auditor edited its preliminary finding to reflect this, “as described in the SLFRF final rules, regulations, and guidance” under 6.1 there are no subrecipients by definition as the County itself is the beneficiary. The County is being "made whole" for calculated revenue loss due to the pandemic under this category; therefore, once the funds are obligated and spent by the County the purpose has been satisfied. The entity receiving those funds would not have subrecipient obligations. FAQ 13.14 confirms this understanding. The communities enter into subrecipient agreements on an annual basis with the County and are very familiar with the format of such agreements. Those agreements always state clearly that they are subrecipient agreements in the title and the introductory paragraph. The communities also enter into intergovernmental agreements with the County on an annual basis. Therefore, they are aware that these two types of agreement are distinct. In this case the agreements are clearly labeled as intergovernmental agreements in the title and the introductory paragraph and there is no mention of subrecipient status in the body of the agreement. In fact, Section 4.05, Relationship of Parties, states “Relationship of the Community to the County is, and will continue to be, that of an independent contractor.” In the subrecipient agreements the County enters into with these communities on an annual basis this clause says the relationship is that of a subrecipient. Therefore, the agreement is clear on the relationship and the communities would know to consult the County if there is any question of compliance requirements. Any language requiring compliance with provisions applicable to subrecipients was paired with the qualifier "applicable". For example Article IX requires compliance with laws only “as applicable”. This is catch-all language and is good legal practice to include for contingencies. In this case, the program being a new federal program, the County intentionally included this catch-all language referencing compliance with 2 CFR 200 (Uniform Guidance) “as applicable” and required the community to “provide any disclosures required by law.” to allow itself the ability to enforce should the laws, rules, or regulations be interpreted in a certain manner to be applicable or even changed. This is based on experience with programs such as the Neighborhood Stabilization Program through HUD where such occurrences were noted. Consequently; the County believes it would actually be irresponsible not to include such language. As far as the recommendation of increased guidance to contracted communities, given the increased guidance available now the County has provided such guidance as needed. Auditor seems to indicate that the communities “may improperly conclude they are subject to certain compliance requirements, including but not limited to incorrectly concluding they are required to report expenditures incurred under the agreements on their schedule of expenditures of federal awards, which could further lead to those communities incorrectly concluding they are subject to the requirement to obtain a single audit and/or incorrect major program determinations being made in conjunction with their single audit engagements.” The finding is essentially noting that if these communities conclude that they have a subrecipient relationship and that the Uniform Guidance is applicable to them as subrecipients it is an improper conclusion. Given the wide availability of FAQs and guidance on this topic, Management agrees it would be an improper conclusion. Anticipated Completion Date: 9/30/23 Responsible Contact Person: Haaris Ahmad
Finding Number: 2023-001 Condition: The Corporation failed to refund a security deposit to a tenant within 30 days of their move out date. Planned Corrective Action: The security deposit has been refunded and management is currently reviewing internal controls over security deposit refunds to ensure...
Finding Number: 2023-001 Condition: The Corporation failed to refund a security deposit to a tenant within 30 days of their move out date. Planned Corrective Action: The security deposit has been refunded and management is currently reviewing internal controls over security deposit refunds to ensure all deposits are returned timely. Contact Person responsible for corrective action: Jill Kolb, Vice President - Housing Accounting Completion Date: February 7, 2023
2023-001 Supportive Housing for the Elderly – CFDA No. 14.157 Recommendation: We recommend that management implement a process to ensure proper approval is obtained prior to withdrawing funds from the residual receipts account. Explanation of disagreement with audit finding: There is no disagreement...
2023-001 Supportive Housing for the Elderly – CFDA No. 14.157 Recommendation: We recommend that management implement a process to ensure proper approval is obtained prior to withdrawing funds from the residual receipts account. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: Management has since implemented a process to ensure the proper forms are filled out and submitted with HUD prior to withdrawing funds from the residual receipts account. Name(s) of contact person(s) responsible for corrective action: Nicole Chwala Planned completion date for corrective action plan: April 2024
View Audit 304553 Questioned Costs: $1
Because there was not an existing Residual Receipt account, management has started the process to open an account. The bank required minutes from the Board of Directors of Tomball Pines, Inc. before they would open the account. A board meeting was held April 9, 2024 and the motion was made, second...
Because there was not an existing Residual Receipt account, management has started the process to open an account. The bank required minutes from the Board of Directors of Tomball Pines, Inc. before they would open the account. A board meeting was held April 9, 2024 and the motion was made, seconded, and approved to open the needed account. Management will be making the deposit the week of April 15, 2024.
Management agrees that the $50,000 of questioned costs must be returned to the reserve for replacement account. In order to replenish the reserve balance and remediate the finding, management will be depositing an additional $10,000 per month to the reserve from project operations to be made over th...
Management agrees that the $50,000 of questioned costs must be returned to the reserve for replacement account. In order to replenish the reserve balance and remediate the finding, management will be depositing an additional $10,000 per month to the reserve from project operations to be made over the course of five months (March 2024 to July 2024). The first $10,000 deposit was made on March 18, 2024. Planned deposits for the remaining $40,000 still owed will be made on the payment schedule as follows: April 15, 2024, May 15, 2024, June 15, 2024, and July 15, 2024.
View Audit 304518 Questioned Costs: $1
All of the required deposits to the replacement reserve were not made during the year. Response: The new management company will make deposits in 2024 for the shortfalls.
All of the required deposits to the replacement reserve were not made during the year. Response: The new management company will make deposits in 2024 for the shortfalls.
Corrective Action Plan: In response to the findings regarding the missed monthly deposits totaling $19,221 in the replacement reserve account, the organization has taken the following corrective measures. Firstly, the required deposits have been made to rectify the deficit.Additionally, the organiza...
Corrective Action Plan: In response to the findings regarding the missed monthly deposits totaling $19,221 in the replacement reserve account, the organization has taken the following corrective measures. Firstly, the required deposits have been made to rectify the deficit.Additionally, the organization has requested a waiver from HUD for the monthly deposits to the replacement reserve accounts for 2024. Also, a request for an increase in subsidy for 2024 will be submitted to the HUD Account Executive to address the cash flow issue within the organization.To prevent similar occurrences in the future, a robust monitoring and review process has been implemented such as quarterly monitoring of deposits to ensure compliance with HUD requirements. All communications with HUD and monitoring activities will be documented meticulously for audit purposes and continuous evaluation of these measures will help prevent the likelihood of recurrence. Completion Date: Immediately Contact Person: Jacqueline C. Gholson, Co - Manager Caseal J. Medley, Co - Manager
View Audit 304468 Questioned Costs: $1
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