Corrective Action Plans

Finding 1175820 (2025-001)

Material Weakness 2025

NY

Special Tests & Provisions Subrecipient Monitoring Eligibility

The Center should establish a system of internal controls to ensure that all sliding fee discounts are properly calculated and supported based on family size and income. Repeat Finding No Action Taken Management has implemented enhanced internal controls to ensure sliding fee discounts are accuratel...

The Center should establish a system of internal controls to ensure that all sliding fee discounts are properly calculated and supported based on family size and income. Repeat Finding No Action Taken Management has implemented enhanced internal controls to ensure sliding fee discounts are accurately calculated and fully supported. The Center standardized income verification procedures, reinforced documentation requirements for family size and income, and updated its sliding fee eligibility checklist to ensure consistency. Supervisory review protocols were established to verify proper calculation and supporting documentation prior to approval. Additionally, staff received refresher training on sliding fee policy requirements to promote ongoing compliance. Management will conduct periodic internal audits to monitor adherence and ensure continued effectiveness of these controls. If the Cognizant or Oversight Agency for Audit has questions regarding this plan, please call: Sean Murphy, CFO at 860-610-6387.

View Audit 389772

Finding 1175766 (2025-002)

Material Weakness 2025

Our Lady of Guadalupe

CA

HUD Housing Programs Matching / Level of Effort / Earmarking

Management’s Response – Based on legal counsel’s advice, and that the lender has an approved Concept Meeting Proposal with HUD, we believe HUD has approved our efforts to pursue predevelopment activities to add 29 units on the existing parcel using available cash from operations, while seeking forma...

Management’s Response – Based on legal counsel’s advice, and that the lender has an approved Concept Meeting Proposal with HUD, we believe HUD has approved our efforts to pursue predevelopment activities to add 29 units on the existing parcel using available cash from operations, while seeking formal approval and ultimately loan proceeds from a HUD-insured supplemental loan under Section 241(a) of the National Housing Act. Once the new loan is approved, we intend to use a portion of the proceeds from the HUD-insured supplemental loan to repay the Project’s Operating Account for funds used to cover predevelopment costs.

View Audit 389682

Finding 1175584 (2025-001)

Material Weakness 2025

McDaniel College and Subsidiary

MD

Subrecipient Monitoring Cash Management Reporting

Finding 2025-001 Condition Significant Deficiency – Disbursement/Refund of Credit Balances - Title IV regulations (34 CFR 668.164(h)(1) require that Title IV credit balances on student accounts be paid directly to the student as soon as possible but no later than 14 days after the credit balance occ...

Finding 2025-001 Condition Significant Deficiency – Disbursement/Refund of Credit Balances - Title IV regulations (34 CFR 668.164(h)(1) require that Title IV credit balances on student accounts be paid directly to the student as soon as possible but no later than 14 days after the credit balance occurred. A student or parent may authorize the Institution to hold the credit balance to be applied to specified other nontuition fees, room and board charges as noted in the regulations at (34 CFR 668.165(b)). The credit balance generated in the accounts of 2 out of 25 students tested was not timely refunded to them based on the outlined criteria, leading to late refunds to those students (neither of which completed a voluntary hold authorization). The sample was not a statistically valid sample. The College's payment process cycle is not set up to process refunds as soon as possible, which caused delays in refunds being made to students, resulting in a violation of the 14-day maximum policy. Corrective Action Plan Corrective Action Planned: The College acknowledges the untimely disbursement of Title IV credit balance refunds. We concur that, for 2 of the 25 student accounts reviewed, Title IV credit balances were not refunded within the 14-day period required under 34 CFR 668.164(h)(1). We further acknowledge that no valid student or parent authorization to hold these credit balances was on file, and therefore the refunds should have been issued promptly. The College completed an internal review and determined that the delays resulted from the structure of the existing payment processing cycle. Although the College’s processes emphasize careful reconciliation and verification of student account activity, the timing of our refund cycle was not aligned with the regulatory requirement. To remediate this deficiency and ensure full compliance going forward, the College is implementing the following corrective action: Revision of Federal Funds Disbursement Policies: The College is revising its policy governing the drawdown and disbursement of federal funds to align the timing of Title IV activity with the academic add/drop period. This change will ensure greater predictability of credit balance creation and enhance monitoring capabilities. The College is committed to strengthening its internal controls to ensure sustained compliance with all Title IV cash management regulations. Name(s) of Contact Person(s) Responsible for Corrective Action: Pat Tyler, Bursar and Destiny Guerrero, Director of Financial Aid. Anticipated Completion Date: May 2026 – next semester starting date

View Audit 389412

Finding 1175481 (2025-001)

Material Weakness 2025

Center Township Elderly Housing, Inc.

PA

HUD Housing Programs

Management will update internal procedures to ensure that RFR deposits are recorded only when cash is transferred and will review the RFR account regularly to ensure compliance with HUD requirements.

View Audit 389276

Finding 1175445 (2025-002)

Material Weakness 2025

Round Rock Housing Authority

TX

HUD Housing Programs

During the time of the SEMAP submission the housing authority had an unexpected change of staff. This contributed to the agency overlooking the signing of the required board resolution to approve the SEMAP. To keep this from occurring again, RRHA will not submit the SEMAP certification to HUD until ...

During the time of the SEMAP submission the housing authority had an unexpected change of staff. This contributed to the agency overlooking the signing of the required board resolution to approve the SEMAP. To keep this from occurring again, RRHA will not submit the SEMAP certification to HUD until the resolution has been signed.

View Audit 389242

Finding 1175444 (2025-001)

Material Weakness 2025

Round Rock Housing Authority

TX

HUD Housing Programs Internal Control / Segregation of Duties Subrecipient Monitoring

At the time of the most recent independent audit by Smith Marion conducted in December 2025, it was found that RRHA was not completing voucher re-inspections within the required timeframe when an inspection failed. Health and safety inspections are required to be reinspected within 48 hours, and oth...

At the time of the most recent independent audit by Smith Marion conducted in December 2025, it was found that RRHA was not completing voucher re-inspections within the required timeframe when an inspection failed. Health and safety inspections are required to be reinspected within 48 hours, and other inspections must be completed within 30 days. In the past RRHA only had one inspector on staff who tracked all inspections. Due to an increase in portability vouchers a second caseworker was hired in 2025. However, a new system was not created to track both caseworker’s inspections. This resulted in RRHA overlooking timelines and not completing inspections in a timely manner as required. Part of this was also related to miscommunication between the two case workers. To ensure inspections are completed as required by HUD regulation, in the future, each caseworker/inspector is now required to schedule a follow-up inspection appointment at the same time as the failed inspection report is created. Additionally, a separate shared spreadsheet has been created to track failed inspection and verify that each one is being completed within the required time. With these new steps in place we can indicate if a failed inspection needs a 24-hour and/or a 30- day re-inspection and if a follow-up inspection has been already scheduled. RRHA also increased the scheduled time/ days from once a week to two days a week for inspection since we now have two HCV employees/ inspectors available. Effective immediately the process for inspection has been updated and both HCV employees are completing inspections.

View Audit 389242

Finding 1175441 (2025-001)

Material Weakness 2025

City of Sand Springs

OK

Procurement, Suspension & Debarment HUD Housing Programs Internal Control / Segregation of Duties

Finding 2025-001 Corrective Action Plan Condition: Various departments received invoices for goods purchased or services performed prior to receiving appropriate approvals per the City's purchasing policies. In conjunction with our fiscal year 2025 annual audit, please see the City's corrective acti...

Finding 2025-001 Corrective Action Plan Condition: Various departments received invoices for goods purchased or services performed prior to receiving appropriate approvals per the City's purchasing policies. In conjunction with our fiscal year 2025 annual audit, please see the City's corrective action plan below: Staff authorized to submit and approve requisitions will be subject to further training on the City's purchasing process and procedures. Together with additional training, and new software tools, this process is expected to be improved. Expected completion date: 6/30/2026 Party Responsible: Arlena Barnes, Finance Director Contact Information: 918-246-2646 | arlena.barnes@sandspringsok.gov

View Audit 389227

Finding 1175247 (2025-004)

Material Weakness 2025

Bay Cove Human Services, Inc. & Affiliate

MA

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

Management acknowledges that certain internal controls did not operate effectively during the year ended June 30, 2025. Management is in the process of implementing additional controls to ensure a stable control environment that supports compliance with cash management and special tests and provisio...

Management acknowledges that certain internal controls did not operate effectively during the year ended June 30, 2025. Management is in the process of implementing additional controls to ensure a stable control environment that supports compliance with cash management and special tests and provisions requirements.

View Audit 388951

Finding 1175224 (2025-002)

Material Weakness 2025

Ide Center Apartments Ii, Inc. 042-Hd045

OH

Internal Control / Segregation of Duties HUD Housing Programs Material Weakness

Supportive Housing for Persons with Disabilities – Assistance Listing No. 14.181 Unadjusted Rental Rates Recommendation: Adjust rental rates immediately, and request adjustment on next HAP Voucher to begin repayment. Ensure proper training of employees, prepare the budget worksheet as soon as possib...

Supportive Housing for Persons with Disabilities – Assistance Listing No. 14.181 Unadjusted Rental Rates Recommendation: Adjust rental rates immediately, and request adjustment on next HAP Voucher to begin repayment. Ensure proper training of employees, prepare the budget worksheet as soon as possible and promptly read all correspondence for HUD and forward to management company. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: Amounts will be adjusted over the next few HAP voucher to repay HUD and adjust rental rates on the next voucher. Name(s) of the contact person(s) responsible for corrective action: Stacy Lawson, CFO Planned completion date for corrective action plan: June 30, 2026

View Audit 388921

Finding 1175222 (2025-001)

Material Weakness 2025

Casa Santa Maria

CA

HUD Housing Programs

Management’s Response – Management acknowledges the error and agrees to the amount owed for the overpayment of property management fees and have updated their procedures to ensure future compliance. The Project was reimbursed for the overpayment as of the independent auditor’s report date.

View Audit 388916

Finding 1175181 (2025-001)

Material Weakness 2025

Housing Authority of the County of Howard, Arkansas

AR

HUD Housing Programs

Housing Authority of the County of Howard respectfully submits the following corrective action plan for the year ended June 30, 2025. Responsible Official: Mr. Ross Allen, Executive Director Name and address of independent public accounting firm: Miller & Rose, PA 1309 East Race Searcy, AR 72143 Aud...

Housing Authority of the County of Howard respectfully submits the following corrective action plan for the year ended June 30, 2025. Responsible Official: Mr. Ross Allen, Executive Director Name and address of independent public accounting firm: Miller & Rose, PA 1309 East Race Searcy, AR 72143 Audit period: Year ended June 30, 2025 Oversight Agency: U.S. Department of Housing and Urban Development The finding from June 30, 2025, audit is discussed below. The finding is numbered to correspond to the auditing findings disclosed in Sections B and C of the Schedule of Findings and Questioned Costs. C. FINDINGS AND QUESTIONED COSTS-MAJOR FEDERAL AWARD PROGRAMS AUDIT 2025-01 Family file Deficiencies 14.850 Public and Indian Housing Program Criteria and Criteria: The Authority’s purpose for existence is to provide decent, safe, and affordable housing to low-income persons. As such, the Authority prepares a file for each admitted family, which contains information necessary to determine eligibility for assistance and calculations of rent to be charged to eligible families. HUD regulations prescribe the content of these family files. These requirements consist of the following: Criteria: Our review of 23 family files revealed the following: a. As a condition of admission or continued occupancy, the tenant and other family members provide necessary information, documentation, and releases for the PHA to verify income eligibility. b. For both family income examinations and reexaminations, obtain and document in the family file third party verification of (1) reported family annual income; (2) the value of assets; (3) expenses related to deductions from annual income; and (4) other factors that affect the determination of adjusted income or income-based rent. c. Determine income eligibility and calculate the tenant’s rent payment in accordance with HUD regulations. d. Select tenants from the public housing waiting list in accordance with the PHA’s tenant selection policies. Context: Our review of 23 family files revealed the following: a. One file with a delinquent annual reexamination. b. One file lacked verification of childcare deduction. c. Two files contained rent calculation errors. Effect: Delays in performing annual reexaminations may result in under charging the tenant rent and thus understating dwelling rental income. Deduction for medical expenses and childcare could be overstated without proper verification and could result in an incorrect rental charge to the tenant. Rental calculation errors may result in an incorrect rent charge to the tenant, Recommendation: The Authority should ensure all tenant reexaminations are performed timely. Verification of medical and childcare deductions should be documented with appropriate documentation. The Authority should ensure the proper verified income is used in calculation of rent charges to the tenant. Response: We have modified policies and procedures to ensure all re-examinations are performed timely, appropriate deductions are documented and rental charges are calculated correctly. Views of Responsible Officials and Planned Corrective Actions: We will review tenant’s files for the deficiencies identified above and implement new internal control procedures to correct these conditions. We anticipate a complete resolution of this type of error by February 29, 2026.

View Audit 388792

Finding 1175155 (2025-001)

Material Weakness 2025

Vna Apartments, Inc.

WI

HUD Housing Programs Internal Control / Segregation of Duties

Financial Reporting – The Organization has evaluated the cost/benefit of outsourcing the task of preparing the financial statements to an external accountant. However, management of the Organization has obtained the necessary skills, knowledge, and experience to accept responsibility for the Organiz...

Financial Reporting – The Organization has evaluated the cost/benefit of outsourcing the task of preparing the financial statements to an external accountant. However, management of the Organization has obtained the necessary skills, knowledge, and experience to accept responsibility for the Organization’s financial statements prepared by the external accountant. Responsible Official – Vicki McAuliffe, CFO Anticipated Completion Date – This finding will not completely resolve itself given the cost/benefit basis the Organization continues to make.

View Audit 388771

Finding 1175154 (2025-001)

Material Weakness 2025

Breakthrough Phase Iii, Inc.

TN

HUD Housing Programs

Breakthrough Phase III, Inc. respectfully submits the following corrective action plan for the year ended June 30, 2025. Purkey, Carter, Compton, Swann, & Carter, PLLC P.O. Box 727 Morristown, Tennessee 37815 Audit period: July 1, 2024 – June 30, 2025 The findings from the schedule of findings and q...

Breakthrough Phase III, Inc. respectfully submits the following corrective action plan for the year ended June 30, 2025. Purkey, Carter, Compton, Swann, & Carter, PLLC P.O. Box 727 Morristown, Tennessee 37815 Audit period: July 1, 2024 – June 30, 2025 The findings from the schedule of findings and questioned costs are discussed below. The findings are numbered consistently with the numbers assigned in the schedule. Section A of the schedule, Summary of Audit Results, does not include findings and is not addressed. FINDINGS – FINANCIAL STATEMENT AUDIT None FINDINGS – FEDERAL AWARD PROGRAMS AUDITS FINDING NO. 2025-001: Ineffective operation of internal controls by management Management did not conduct recertifications of the Project’s tenants during the fiscal year under audit. Criteria: According to HUD Handbook 4350.3, owners must conduct a recertification of family income and composition at least annually by the tenant’s recertification anniversary date. Owners then must recompute the tenants’ rents and assistance payments, if applicable, based on the information gathered. If a new recertification is not submitted within 15 months of the previous year’s recertification anniversary date, HUD will terminate assistance payments. Cause of Condition: Management did not have systems in place to ensure tenant files and recertification documentation were completed in accordance with HUD requirements. Recommendation: Auditor recommends management review HUD Handbook 4350.3 and put proper internal controls in place to ensure tenant files are in compliance with HUD and kept in accordance with HUD requirements. Action Taken: The Board is working closely with Breakthrough Corporation to ensure the Project is complying with HUD requirements and will ensure personnel complete HUD-related training. The Board is also considering contracting with a management agent to manage the Project. If the U.S. Department of Housing and Urban Development has questions regarding this plan, please contact Antonio Luna at 865-247-0065. Sincerely yours, Antonio Luna Financial Controller Breakthrough Corporation

View Audit 388759

Finding 1175153 (2025-001)

Material Weakness 2025

Breakthrough Phase Ii, Inc.

TN

HUD Housing Programs

CORRECTIVE ACTION PLAN Breakthrough Phase II, Inc. respectfully submits the following corrective action plan for the year ended June 30, 2025. Purkey, Carter, Compton, Swann, & Carter, PLLC P.O. Box 727 Morristown, Tennessee 37815 Audit period: July 1, 2024 – June 30, 2025 The findings from the sche...

CORRECTIVE ACTION PLAN Breakthrough Phase II, Inc. respectfully submits the following corrective action plan for the year ended June 30, 2025. Purkey, Carter, Compton, Swann, & Carter, PLLC P.O. Box 727 Morristown, Tennessee 37815 Audit period: July 1, 2024 – June 30, 2025 The findings from the schedule of findings and questioned costs are discussed below. The findings are numbered consistently with the numbers assigned in the schedule. Section A of the schedule, Summary of Audit Results, does not include findings and is not addressed. FINDINGS – FINANCIAL STATEMENT AUDIT None FINDINGS – FEDERAL AWARD PROGRAMS AUDITS FINDING NO. 2025-001: Ineffective operation of internal controls by management Management did not conduct recertifications of the Project’s tenants during the fiscal year under audit. Criteria: According to HUD Handbook 4350.3, owners must conduct a recertification of family income and composition at least annually by the tenant’s recertification anniversary date. Owners then must recompute the tenants’ rents and assistance payments, if applicable, based on the information gathered. If a new recertification is not submitted within 15 months of the previous year’s recertification anniversary date, HUD will terminate assistance payments. Cause of Condition: Management did not have systems in place to ensure tenant files and recertification documentation were completed in accordance with HUD requirements. Recommendation: Auditor recommends management review HUD Handbook 4350.3 and put proper internal controls in place to ensure tenant files are in compliance with HUD and kept in accordance with HUD requirements. Action Taken: The Board is working closely with Breakthrough Corporation to ensure the Project is complying with HUD requirements and will ensure personnel complete HUD-related training. The Board is also considering contracting with a management agent to manage the Project. If the U.S. Department of Housing and Urban Development has questions regarding this plan, please contact Antonio Luna at 865-247-0065. Sincerely yours, Antonio Luna Financial Controller Breakthrough Corporation

View Audit 388758

Finding 1175152 (2025-001)

Material Weakness 2025

Breakthrough Phase I, Inc.

TN

HUD Housing Programs

CORRECTIVE ACTION PLAN Breakthrough Phase I, Inc. respectfully submits the following corrective action plan for the year ended June 30, 2025. Purkey, Carter, Compton, Swann, & Carter, PLLC P.O. Box 727 Morristown, Tennessee 37815 Audit period: July 1, 2024 – June 30, 2025 The findings from the sched...

CORRECTIVE ACTION PLAN Breakthrough Phase I, Inc. respectfully submits the following corrective action plan for the year ended June 30, 2025. Purkey, Carter, Compton, Swann, & Carter, PLLC P.O. Box 727 Morristown, Tennessee 37815 Audit period: July 1, 2024 – June 30, 2025 The findings from the schedule of findings and questioned costs are discussed below. The findings are numbered consistently with the numbers assigned in the schedule. Section A of the schedule, Summary of Audit Results, does not include findings and is not addressed. FINDINGS – FINANCIAL STATEMENT AUDIT None FINDINGS – FEDERAL AWARD PROGRAMS AUDITS FINDING NO. 2025-001: Ineffective operation of internal controls by management Management did not conduct recertifications of the Project’s tenants during the fiscal year under audit. Criteria: According to HUD Handbook 4350.3, owners must conduct a recertification of family income and composition at least annually by the tenant’s recertification anniversary date. Owners then must recompute the tenants’ rents and assistance payments, if applicable, based on the information gathered. If a new recertification is not submitted within 15 months of the previous year’s recertification anniversary date, HUD will terminate assistance payments. Cause of Condition: Management did not have systems in place to ensure tenant files and recertification documentation were completed in accordance with HUD requirements. Recommendation: Auditor recommends management review HUD Handbook 4350.3 and put proper internal controls in place to ensure tenant files are in compliance with HUD and kept in accordance with HUD requirements. Action Taken: The Board is working closely with Breakthrough Corporation to ensure the Project is complying with HUD requirements and will ensure personnel complete HUD-related training. The Board is also considering contracting with a management agent to manage the Project. If the U.S. Department of Housing and Urban Development has questions regarding this plan, please contact Antonio Luna at 865-247-0065. Sincerely yours, Antonio Luna Financial Controller Breakthrough Corporation

View Audit 388756

Finding 1175151 (2025-007)

Material Weakness 2025

City of Albuquerque

NM

Subrecipient Monitoring Matching / Level of Effort / Earmarking Internal Control / Segregation of Duties § 200.303 § 200.306

The City concurs with the finding. The City will update Continuum of Care procedures related to subrecipient monitoring, in-kind contribution documentation, match tracking and reporting, and grant closeout review to strengthen compliance and oversight. Additionally, the City will provide additional ...

The City concurs with the finding. The City will update Continuum of Care procedures related to subrecipient monitoring, in-kind contribution documentation, match tracking and reporting, and grant closeout review to strengthen compliance and oversight. Additionally, the City will provide additional grants training and a list of subject matter experts within each department that can work with auditors during the single audit.

View Audit 388755

Finding 1175084 (2025-001)

Material Weakness 2025

Crystal Run Owner Corporation V

NY

HUD Housing Programs Reporting

CORRECTIVE ACTION PLAN FOR THE YEAR ENDED JUNE 30, 2025 U.S. Department of Housing and Urban Development Crystal Run Owner Corporation V (the Organization), HUD Project No. 012-HD091 respectfully submits the following corrective action plan for the year ended June 30, 2025. Name and address of indep...

CORRECTIVE ACTION PLAN FOR THE YEAR ENDED JUNE 30, 2025 U.S. Department of Housing and Urban Development Crystal Run Owner Corporation V (the Organization), HUD Project No. 012-HD091 respectfully submits the following corrective action plan for the year ended June 30, 2025. Name and address of independent public accounting firm: Bonadio & Co., LLP, 432 North Franklin Street #60, Syracuse, New York 13204 Audit period: July 1, 2024 – June 30, 2025 The findings from the 2025 schedule of findings and questioned costs are discussed below. Findings are numbered consistently with the number assigned in the schedule. FINDINGS – FINANCIAL STATEMENT AUDIT None FINDINGS – FEDERAL AWARD PROGRAM AUDIT Finding 2025-001: Supportive Housing for Persons with Disabilities, Federal Assistance Listing Number 14.181 Recommendation: We recommend that new procedures be implemented to ensure move-outs are timely reported. Action Taken: Management is in the process of implementing a new move-out notification workflow. Name of Contact Person Responsible for Corrective Action: Audra Coon, Director of Finance, (845) 695-2554. Anticipated Completion Date: May 2026

View Audit 388708

Finding 1175083 (2025-002)

Material Weakness 2025

Crystal Run Owner Corporation

NY

HUD Housing Programs Reporting

Finding 2025-002: Supportive Housing for Persons with Disabilities, Federal Assistance Listing Number 14.181 Recommendation: We recommend that new procedures be implemented to ensure move-outs are timely reported. Action Taken: Management is in the process of implementing a new move-out notification...

Finding 2025-002: Supportive Housing for Persons with Disabilities, Federal Assistance Listing Number 14.181 Recommendation: We recommend that new procedures be implemented to ensure move-outs are timely reported. Action Taken: Management is in the process of implementing a new move-out notification workflow. Name of Contact Person Responsible for Corrective Action: Audra Coon, Director of Finance, (845) 695-2554. Anticipated Completion Date: May 2026

View Audit 388706

Finding 1175082 (2025-001)

Material Weakness 2025

Crystal Run Owner Corporation

NY

HUD Housing Programs

Finding 2025-001: Supportive Housing for Persons with Disabilities, Federal Assistance Listing Number 14.181 Condition: The Organization’s residual receipts account exceeded the $250 per unit retained balance at the PRAC anniversary/renewal date, but the Organization did not remit the excess residua...

Finding 2025-001: Supportive Housing for Persons with Disabilities, Federal Assistance Listing Number 14.181 Condition: The Organization’s residual receipts account exceeded the $250 per unit retained balance at the PRAC anniversary/renewal date, but the Organization did not remit the excess residual receipts to HUD’s Accounting Center nor obtain HUD approval for retention or alternative use. The overage that was not submitted amounted to $255,280. Recommendation: We recommend that the Organization remit the overage of $255,280 to HUD’s Accounting Center or submit HUD 9250 for HUD approved application if directed. Views of management and planned corrective action: Management concurs and will submit form HUD 9250. Action Taken: Management is in the process of submitting form HUD 9250. Anticipated Completion Date: May 2026 Name of Contact Person Responsible for Corrective Action: Audra Coon, Director of Finance, (845) 695-2554.

View Audit 388706

Finding 1175071 (2025-001)

Material Weakness 2025

Community Health and Counseling Services

ME

HUD Housing Programs

Section II—Financial Statement Findings Finding 2025-001 Program Affected AL 93.829 Section 223 Demonstration Programs to Improve Community Mental Health Services (MAAP Program Number CBH-24-1001C) – Agreement period July 1, 2024, through March 31, 2025. Criteria The Agency shall submit all of the r...

Section II—Financial Statement Findings Finding 2025-001 Program Affected AL 93.829 Section 223 Demonstration Programs to Improve Community Mental Health Services (MAAP Program Number CBH-24-1001C) – Agreement period July 1, 2024, through March 31, 2025. Criteria The Agency shall submit all of the reports listed to the Maine Department of Health and Human Services (the Department) in accordance with the deadlines established. The Agency understands that the reports are due within the timeframes established and that the Department will not make subsequent payment installments under this Agreement until such reports are received, reviewed, and accepted. Condition and Context Of the two reports haphazardly selected for testing, one was not submitted timely Corrective Action Plan Report deadlines are tracked by the finance team. We have further refined tracking steps to ensure that reports are not marked completed until emails have been successfully sent to DHHS. Responsible Official: Kathie Norwood, Finance Director Implementation Date: 2/21/2025

View Audit 388693

Finding 1174652 (2025-001)

Material Weakness 2025

Lifeworks, Inc. and Affiliates

MA

HUD Housing Programs Cash Management

The findings from the June 30, 2025 schedule of findings and questioned costs are discussed below. The findings are numbered consistently with the numbers assigned in the schedule. A. Current Findings on the Schedule of Findings and Recommendations 1. Finding 2025-001 - Residual receipts deposits no...

The findings from the June 30, 2025 schedule of findings and questioned costs are discussed below. The findings are numbered consistently with the numbers assigned in the schedule. A. Current Findings on the Schedule of Findings and Recommendations 1. Finding 2025-001 - Residual receipts deposits not made timely - Significant Deficiency Federal Program Name: Project-Based Rental Assistance - Section 8 Project Based Cluster Assistance Listing Number: 14.195 Federal Award Identfication Number and Year: MA06T831033-25Z, MA06T791016-25Z. Program year - 2025. a. Issue: During the year ended June 30, 2025, management did not make the required residual receipts reserve deposit in the amount of $34,811, within 90 days of June 30, 2024 as required by HUD. The residual receipts amount was deposited in October 2025. b. Recommendation: Management should establish internal controls and procedures to ensure that required residual receipts reserve deposits are made timely. c. Action taken: Management agrees with the finding and has implemented controls to ensure the residual receipts deposits are timely made within 90 days of year end. B. Status of Corrective Actions on Findings Reported in the Schedule of the Status of Prior Audit Findings, Questioned Costs and Recommendations No prior year audit findings identified.

View Audit 388195

Finding 1174641 (2025-002)

Material Weakness 2025

Big Beaver Falls Area School District

PA

Internal Control / Segregation of Duties Procurement, Suspension & Debarment HUD Housing Programs

The District recognizes the limited staff in the Business Office makes segregating duties virtually impossible. The Board does rely on the Business Manager to keep them updated on the financial state of the District and, due to financial constraints, does not intend to increase staffing at this time...

The District recognizes the limited staff in the Business Office makes segregating duties virtually impossible. The Board does rely on the Business Manager to keep them updated on the financial state of the District and, due to financial constraints, does not intend to increase staffing at this time.

View Audit 388144

Finding 1174612 (2025-001)

Material Weakness 2025

Stovall Housing Corporation Stovall Terrace

CA

Eligibility HUD Housing Programs

Corrective Action Plan

View Audit 388121

Finding 1174612 (2025-001)

Material Weakness 2025

Stovall Housing Corporation Stovall Terrace

CA