Corrective Action Plans

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Corrective Action Plan: The Lake County Housing Authority, in its administrative oversight of the North Chicago Housing Authority, acknowledges the finding related to the untimely submission of its audited financial statements to the Federal Audit Clearinghouse and the U.S. Department of Housing and...
Corrective Action Plan: The Lake County Housing Authority, in its administrative oversight of the North Chicago Housing Authority, acknowledges the finding related to the untimely submission of its audited financial statements to the Federal Audit Clearinghouse and the U.S. Department of Housing and Urban Development Real Estate Assessment Center (REAC), as required under 2 CFR §200.512. The delay resulted from control deficiencies within the financial reporting and audit coordination process during a period of system transition and evolving staffing capacity. These conditions affected the timely preparation of audit-ready financial information and supporting schedules. Management has implemented corrective actions to strengthen internal controls and ensure timely submission of future audits. These actions include the establishment of a formal audit timeline with defined milestones and assigned responsibilities; enhanced year-end close and reconciliation procedures to ensure audit-ready financial data; and the implementation of routine audit status monitoring to track progress and address issues in real time. In addition, the Authority engaged BDO USA to provide technical assistance, system support, and audit readiness consulting to improve financial reporting accuracy and alignment with HUD requirements. These measures address the underlying control deficiencies and establish a sustainable framework to ensure compliance with federal reporting deadlines. Responsible Staff: Executive Director/CEO in coordination with Chief Financial Officer Expected Completion Date: Implemented August 1, 2026; ongoing compliance thereafter
Program Name: Emergency Housing Voucher (EHV) Program (Housing Voucher Cluster) 14.EHV During the audit of the financial statements for the year ended September 30, 2025, testing of Emergency Housing Voucher (EHV) program activity identified that approximately $90,317 of EHV funds were used for acti...
Program Name: Emergency Housing Voucher (EHV) Program (Housing Voucher Cluster) 14.EHV During the audit of the financial statements for the year ended September 30, 2025, testing of Emergency Housing Voucher (EHV) program activity identified that approximately $90,317 of EHV funds were used for activities outside of the EHV program - specifically, within the Moving to Work (MTW) Demonstration Program - without a waiver or approval from HUD. EHV funds are restricted to activities allowable under the EHV program and are not subject to MTW funding fungibility; any application of MTW administrative flexibilities to EHV vouchers requires HUD approval before implementation. The Authority did not maintain adequate controls to ensure EHV funds were restricted to allowable EHV expenditures or to verify that appropriate HUD approval was obtained prior to using EHV funds for non-EHV activities. As a result, federal funds may have been expended for purposes not authorized under the EHV program, resulting in noncompliance with federal requirements and questioned costs of $90,317. This condition represents noncompliance and a significant deficiency in internal control over compliance. Questioned Costs: $90,317 The Authority concurs with the finding and questioned costs of $90,317. The Authority will strengthen controls over federal program expenditures to ensure EHV funds are used solely for allowable EHV activities; establish procedures to obtain and retain documentation of any HUD approvals or waivers before applying MTW flexibilities to EHV vouchers or using EHV funds outside of their intended purpose; work with HUD to resolve the questioned costs; and provide staff training on EHV program eligibility and allowable-cost requirements.Timeline for completion: 3 months
Compliance Deficiencies Identified in HUD Monitoring Review (Repeat of Finding 2024-006) Program Name: N/A ALN: N/A Description: The compliance deficiencies identified in the U.S. Department of Housing and Urban Development (HUD) Compliance Monitoring Review conducted June 24-28, 2024 (formalized in...
Compliance Deficiencies Identified in HUD Monitoring Review (Repeat of Finding 2024-006) Program Name: N/A ALN: N/A Description: The compliance deficiencies identified in the U.S. Department of Housing and Urban Development (HUD) Compliance Monitoring Review conducted June 24-28, 2024 (formalized in HUD's letter dated March 24, 2025) remained unresolved as of September 30, 2025. The open items span multiple program areas, including governance and internal controls, HoJsing Choice Voucher (HCV) program compliance, Project-Based Voucher (PBV) documentation, Public Housing operations, ROSS grant administration, Violence Against Women Act (VAWA) policy, and Section 3 compliance. This condition is a repeat of prior year finding 2024-006. Planned Corrective Action: The Authority concurs with the finding and acknowledges it is a repeat of finding 2024-006. Maintain a remediation tracker; implement corrective actions identified by HUD; conduct training and file reviews; submit required certifications; and provide progress updates until all items are closed. Timeline for completion: 6 months
Moving to Work Demonstration Program ALN: 14.881 Description: The Authority's fiscal year ended September 30, 2025. The unaudited Financial Data Schedule (FDS) was required to be submitted electronically to HUD's Real Estate Assessment Center (REAC) through the Financial Assessment Subsystem (FASS-P...
Moving to Work Demonstration Program ALN: 14.881 Description: The Authority's fiscal year ended September 30, 2025. The unaudited Financial Data Schedule (FDS) was required to be submitted electronically to HUD's Real Estate Assessment Center (REAC) through the Financial Assessment Subsystem (FASS-PH) no later than December 31, 2025 (60 days after fiscal year end). The Authority did not submit the unaudited FDS until May 29, 2026 -approximately five months after the required due date. Planned Corrective Action: The Authority concurs with the finding regarding late submission of the unaudited FDS. Establish a regulatory reporting calendar; assign responsibilities and supervisory review; and accelerate year-end closing procedures to support timely FDS submissions.
Title: Inadequate Tenant File Documentation in MTW Housing Choice Vouchers (ALN 14.881) (Repeat of Finding 2024-005) Program Name: Moving to Work Demonstration Program - Housing Choice Voucher ALN: 14.881 Description: During tenant file testing for the Housing Choice Voucher (HCV) component of the M...
Title: Inadequate Tenant File Documentation in MTW Housing Choice Vouchers (ALN 14.881) (Repeat of Finding 2024-005) Program Name: Moving to Work Demonstration Program - Housing Choice Voucher ALN: 14.881 Description: During tenant file testing for the Housing Choice Voucher (HCV) component of the MTW Demonstration Program, we identified the following deficiencies. This condition is a repeat of prior year finding 2024-005: 1. Melissa McCullum (port-out tenant): The tenant file did not contain the required HUD Form 50058 or the Enterprise Income Verification (EIV} documentation. As a result, the family's eligibility, income determination, and assistance could not be substantiated from the file. 2. Mark'elia Keyona Reaves: The Authority was unable to provide the HUD Form 50058; the form was not retained in the tenant file and only tenant balances from the Authority's housing software were available. The data is reportedly retrievable from HUD's IMS/PIC system but could not be reproduced from the Authority's records. 3. Deborah Waiters: The income determination was incorrect. Social Security income was not recalculated based on the prior-year recertification; although an updated Social Security benefit letter was received indicating a change in the monthly benefit, the income reported on the HUD Form 50058 was not updated accordingly, resulting in an inaccurate rent and housing assistance payment (HAP) calculation. Planned Corrective Action: The Authority concurs with the finding and questioned costs of $395,580.79 and acknowledges it is a repeat of finding 2024-005. Ensure Forms 50058 and supporting documentation are retained; recalculate household income when required; retrieve or reconstruct missing records; resolve questioned costs with HUD; conduct file reviews; and prcvide staff training. Timeline for completion: 6 months
The Authority's unaudited Financial Data Schedule (FDS) for the fiscal year ended September 30, 2025 was submitted on April 27, 2026, approximately four months after the HUD-required deadline of 60 days following fiscal year end (November 29, 2025). Planned Corrective Action: The Authority will esta...
The Authority's unaudited Financial Data Schedule (FDS) for the fiscal year ended September 30, 2025 was submitted on April 27, 2026, approximately four months after the HUD-required deadline of 60 days following fiscal year end (November 29, 2025). Planned Corrective Action: The Authority will establish a financial reporting calendar with assigned responsibility and interim deadlines to ensure the unaudited Financial Data Schedule (FDS) is prepared, reviewed, and submitted to HUD within 60 days of fiscal year end. The Authority will perform timely monthly general ledger reconciliations to support a timely year-end close.
During testing of the MTW Demonstration Program - Capital Fund Program (CFP), four eLOCCS drawdown vouchers were identified for which funds were drawn down but not disbursed within a reasonable timeframe (ranging from 7 to 36 days after deposit), contrary to the federal immediate-disbursement ("just...
During testing of the MTW Demonstration Program - Capital Fund Program (CFP), four eLOCCS drawdown vouchers were identified for which funds were drawn down but not disbursed within a reasonable timeframe (ranging from 7 to 36 days after deposit), contrary to the federal immediate-disbursement ("just-in-time") requirement. Planned Corrective Action: The Authority will implement a process to ensure that Capital Fund Program drawdowns are requested only when funds are needed for immediate disbursement, consistent with federal ca􀀉h management ("just-in-time") requirements. Drawdowns will be reconciled to disbursements, the elapsed time between each drawdown and the related disbursement will be monitored, and any excess cash held will be returned or interest remitted to HUD as required.
Title: Inadequate Tenant File Documentation in Public Housing Program Name: Moving to Work Demonstration Program - Public Housing ALN: 14.881 Description: During tenant file testing for the Public Housing component of the MTW Demonstration Program, food stamp (SNAP) income was not fully excluded fro...
Title: Inadequate Tenant File Documentation in Public Housing Program Name: Moving to Work Demonstration Program - Public Housing ALN: 14.881 Description: During tenant file testing for the Public Housing component of the MTW Demonstration Program, food stamp (SNAP) income was not fully excluded from the annual income calculations for three tenants. In addition, the Authority was unable to locate the entire tenant file, including all required compliance documentation, for one additional tenant. Planned Corrective Action: The Authority will review and correct the affected income determinations to ensure that food stamp (SNAP) benefits are properly excluded from tenant annual income, with corrections to be reflected at the December 2026 annual recertification. The Authority will reconstruct or obtain the missing tenant file and will implement supervisory review over annual recertifications. Staff will receive training on income calculation and exclusion requirements, and periodic file reviews will be performed to verify completeness and accuracy.
2025-001 – ALN 14.872 – Public Housing Capital Fund Program – Period of Performance The Authority has developed and implemented the necessary standard operating procedures to verify the timing of drawdowns relative to obligations and actual payments and periodically review drawdown and expenditure r...
2025-001 – ALN 14.872 – Public Housing Capital Fund Program – Period of Performance The Authority has developed and implemented the necessary standard operating procedures to verify the timing of drawdowns relative to obligations and actual payments and periodically review drawdown and expenditure records to proactively identify and correct discrepancies. Person Responsible for Correction of Finding: Krista Bolemon, Executive Director Projected Completion Date: December 31, 2026
Management concurs that stronger documentation surrounding the collection and monitoring of Continuum of Care program income would have strengthened internal controls and the audit trail. The finding relates to a program that has since been discontinued. Throughout the audit period, all program inco...
Management concurs that stronger documentation surrounding the collection and monitoring of Continuum of Care program income would have strengthened internal controls and the audit trail. The finding relates to a program that has since been discontinued. Throughout the audit period, all program income that was collected was used for allowable program purposes; however, management acknowledges that documentation supporting assessment, collection, monitoring, and reconciliation procedures should have been more comprehensive. Although this activity is no longer part of the Organization's operations, Ability1st has strengthened its overall documentation standards. Should the Organization administer future programs involving program income, written policies and procedures will be implemented prior to program implementation and will include: • documented fee assessment methodology; • collection and deposit procedures; • reconciliation requirements; • supervisory review; • record retention standards; and • periodic internal monitoring. Management believes these procedures will provide an appropriate level of accountability and compliance with federal requirements should program income be collected in the future. Responsible Official: Executive Director Implementation Date: Completed for discontinued program; procedures will be implemented before any future program income activity.
U.S. Department of Housing and Urban Development MATERIAL WEAKNESS Segregation of Duties Recommendation: When this condition exists, management’s and the board’s close supervision and review of accounting information is the best means of preventing or detecting errors and fraud. Explanation of disag...
U.S. Department of Housing and Urban Development MATERIAL WEAKNESS Segregation of Duties Recommendation: When this condition exists, management’s and the board’s close supervision and review of accounting information is the best means of preventing or detecting errors and fraud. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action planned in response to finding: We agree and will continue to monitor financial results and accounting information as hiring additional employees is not practical. Name(s) of the contact person(s) responsible for corrective action: Donald Bly Planned completion date for corrective action plan: In process
Corrective Action Plan – December 31, 2025 Audit Findings 2025-001 Condition: Deficiencies Noted in Examination of Housing Choice Voucher Program Participant Files Auditor Recommendation: The Authority should review its internal control procedures over tenant file re-certifications and documentation...
Corrective Action Plan – December 31, 2025 Audit Findings 2025-001 Condition: Deficiencies Noted in Examination of Housing Choice Voucher Program Participant Files Auditor Recommendation: The Authority should review its internal control procedures over tenant file re-certifications and documentation. Response: The audit indicates there were egregious errors with the participants’ files. We agree. Even though 50058 were processed, for over 95% of the participants, there were two issues which made the 50058 submissions inadequate. 1. The 50058’s were submitted through Yardi MTCS files, but often records were rejected by PIC. We did not review and resolve the PIC errors in a timely manner. These errors were due to our change in operating programs, from Lindsey to Yardi. In Yardi, we complete biannual inspections and annual recertifications. However, if there were any issues with dates of submissions relative to date either transaction was processed, they often failed in the PIC submission. It takes a great deal of work and effort to go back and fix these issues, and we got very behind and finally hired a consultant to assist us with the cleanup. 2. The second issue is more concerning. Our two Section 8 analysts completed 50058 for recertifications and interims but often did not include the back up in the electronic file or the paper file for the participant. They also made many calculation issues, rule issues, and would forget to process the 50058 all the way through. Even when the system showed there might be an error of some type, they did not clear those errors before submitting. a. As background, we implemented Yardi in August 2024. It took several months to a year to clean the data that was put into the system by the Yardi implementation team. b. Our Section 8 analysts had over 15 days of on-site personal training with Yardi trainers and provided a great deal of documentation for each module/class. c. Our Section 8 analysts have both completed a Section 8 Certification course with industry leaders like Nan McKay. d. We are a four-person office, so our Section 8 analyst have access to two other people in the office as well as a contractor who has 25 years of housing experience with Fort Lauderdale Housing and Yardi implementation a year before us. The contractor is on site for 4 ½ hours on Wednesday and available via email and phone. She has provided process documents, instructions, and sometimes multiple times for the same issue. e. The workload on both Section 8 analysts has been reduced. Each analyst is responsible for approximately 235 files, interims and recertifications. The inspections are mostly outsourced, and analysts only get involved with placing abatements. f. The failure to complete the recertifications when they are incorrect relative to information and calculations, and not maintaining the backup documentation is inexcusable. g. These issues were discovered before the auditor came on site, when we started up our file audits and we shared our findings with the auditor when they came on site. The auditor came to the same opinion as us. 38 Therefore, to correct this situation, we are taking the following steps and implementing several processes to ensure the files are in line with HUD’s standards. 1. Every 50058 processed will have to be printed, and management will review the 50058, changes made, calculations, and all pertinent information including family composition, answers on recertification packages, et. The manager will sign and date and file the record. 2. The agency will continue to randomly select 15 – 25 files for spot audit each month relative to last interim and annual recertification. The sample will depend on the number of files processed for the month. 3. The Housing Authority will run recertification and inspection reports at least twice a month to ensure all recertifications and inspections due are being completed timely and not processed as late transactions. 4. The agency will continue training and retraining for all employees. This has been ongoing for several years including HOTMA, NSpire, calculating HAP, verifying eligibility, reviewing deductions, processing reasonable accommodations requests to name a few. 5. We have implemented a no override policy for any information in Yardi including dates, payment standards, etc. without Executive Director approval. 6. We have implemented that all reasonable accommodation requests must be signed by the Assistant Executive Director or the Executive Director. 7. We are looking at purchasing licensing software solutions such as Monday which helps manage daily tasks. 8. We have already documented some of the egregious transactions for each analyst and will continue to do so. If there is no improvement over time, counseling may include termination of employment. We hope these steps will reverse the errors with the files immediately. If there is time available, we plan to start a review of every file to make corrections. We are currently doing that with about forty participants who appeared in the EIV/IVT report. We have been meeting with each head of household and correcting records or executing a repayment agreement. Timeframe: By FYE December 31, 2026 Individual responsible for correction: Ms. Anne Castro, Executive Director
The Authority will strengthen internal controls over the income determination process by enhancing review procedures, verifying income documentation, and providing additional staff training to ensure compliance with HUD requirements.
The Authority will strengthen internal controls over the income determination process by enhancing review procedures, verifying income documentation, and providing additional staff training to ensure compliance with HUD requirements.
The Authority will establish controls to ensure all certifications are completed timely and in accordance with requirements.
The Authority will establish controls to ensure all certifications are completed timely and in accordance with requirements.
Finding Reference Number: 2025-001 for U.S. Department of Housing and Urban Development: Assistance Listing 14.195 Project-Based Rental Assistance (PBRA) View of Responsible Officials and Corrective Actions: Management agrees with the finding. Management will establish procedures and monitor complia...
Finding Reference Number: 2025-001 for U.S. Department of Housing and Urban Development: Assistance Listing 14.195 Project-Based Rental Assistance (PBRA) View of Responsible Officials and Corrective Actions: Management agrees with the finding. Management will establish procedures and monitor compliance with those procedures to ensure that the determination of tenant eligibility and the maintenance of lease files are in accordance with guidelines specified by HUD. Contact Person Responsible: Flynann Skeen, President/Executive Director, Equality Community Housing Corporation Joshua Allen, President, J. Allen Management Co. Inc. Completion Date: Open
Finding The City did not verify correction of Housing Quality Standards (HQS) deficiencies within required timeframes and did not timely initiate Housing Assistance Payment (HAP) abatement when corrective action was not completed. Corrective Action Planned A process to monitor Quality Control inspec...
Finding The City did not verify correction of Housing Quality Standards (HQS) deficiencies within required timeframes and did not timely initiate Housing Assistance Payment (HAP) abatement when corrective action was not completed. Corrective Action Planned A process to monitor Quality Control inspections performed by the third-party inspection contractor was implemented in 2026 to ensure compliance with required inspection and enforcement timelines. Contact Person Nicole Babcock Anticipated Completion Date Implemented June 2026; ongoing monitoring thereafter.
Finding Number: 2025-002 Application of Rent Reasonableness Standards Planned Corrective Action: 1. Rent reasonableness forms will undergo a secondary review to ensure proper comparability. 2. If the assisted unit is above those of comparable units, documentation will be made and relevant support wi...
Finding Number: 2025-002 Application of Rent Reasonableness Standards Planned Corrective Action: 1. Rent reasonableness forms will undergo a secondary review to ensure proper comparability. 2. If the assisted unit is above those of comparable units, documentation will be made and relevant support will be retained to explain the justifiable reason to ensure no departures occur. Person Responsible for Corrective Action: Heather Ryan-Figueroa, VP of Programs and Colleen Cooper, Director of Finance. Anticipated Date of Completion: July 31, 2026.
Contact Person Derek Johnson, Managing Agent Corrective Action Plan The Authority recognizes the deficiency and plans to implement the auditor's recommendations. Planned Completion Date for CAP Immediately.
Contact Person Derek Johnson, Managing Agent Corrective Action Plan The Authority recognizes the deficiency and plans to implement the auditor's recommendations. Planned Completion Date for CAP Immediately.
Contact Person Derek Johnson, Managing Agent Corrective Action Plan The Authority recognizes the deficiency and plans to implement the auditor's recommendations. Planned Completion Date for CAP Immediately.
Contact Person Derek Johnson, Managing Agent Corrective Action Plan The Authority recognizes the deficiency and plans to implement the auditor's recommendations. Planned Completion Date for CAP Immediately.
Contact Person Derek Johnson, Managing Agent Corrective Action Plan The Authority recognizes the deficiency and plans to implement the auditor's recommendations. Planned Completion Date for CAP Immediately.
Contact Person Derek Johnson, Managing Agent Corrective Action Plan The Authority recognizes the deficiency and plans to implement the auditor's recommendations. Planned Completion Date for CAP Immediately.
Contact Person Derek Johnson, Managing Agent Corrective Action Plan The Authority recognizes the deficiency and plans to implement the auditor's recommendations. Planned Completion Date for CAP Immediately.
Contact Person Derek Johnson, Managing Agent Corrective Action Plan The Authority recognizes the deficiency and plans to implement the auditor's recommendations. Planned Completion Date for CAP Immediately.
Finding Number: 2025-002 Finding Title: Reporting – Federal Funding Accountability and Transparency Act (FFATA) Program: 14.218 Community Development Block Grants/Entitlement Grants 14.218 COVID-19 – Community Development Block Grants/Entitlement Grants Name of Contact Person Responsible for Correct...
Finding Number: 2025-002 Finding Title: Reporting – Federal Funding Accountability and Transparency Act (FFATA) Program: 14.218 Community Development Block Grants/Entitlement Grants 14.218 COVID-19 – Community Development Block Grants/Entitlement Grants Name of Contact Person Responsible for Corrective Action: Matthew Bower, George Hardgrove Corrective Action Planned: The City concurs with this finding. City has hired additional resources to perform review of subrecipient transactions. On a monthly basis, the new position will review system generated reports to timely capture reportable subrecipient transactions. Additionally, the City has an ongoing quarterly meeting with all grant managers. Training will be provided to grant managers to ensure proper identification of subrecipient contracts and proper entry into the SAM.gov system. Anticipated Completion Date: December 31, 2026
Finding Number: 2025-003 Finding Title: Reporting – PR29 CDBG Cash on Hand Quarterly Report Program: 14.218 Community Development Block Grants/Entitlement Grants Name of Contact Person Responsible for Corrective Action: Matthew Bower, George Hardgrove Corrective Action Planned: The City acknowledges...
Finding Number: 2025-003 Finding Title: Reporting – PR29 CDBG Cash on Hand Quarterly Report Program: 14.218 Community Development Block Grants/Entitlement Grants Name of Contact Person Responsible for Corrective Action: Matthew Bower, George Hardgrove Corrective Action Planned: The City acknowledges this finding. City has communicated directly with Housing and Urban Development for clarification on reporting requirements and intends on following the updated guidance they provided. Anticipated Completion Date: July 31, 2026
Finding Number: 2025-001 Reporting – Noncompliance (Control Deficiency) Programs: U.S. Department of Housing and Urban Development - Project Based Rental Assistance (PBRA) (Section 8 Project-Based Cluster), Award Listing Number 14.195. Planned Corrective Action: The Corporation acknowledges that the...
Finding Number: 2025-001 Reporting – Noncompliance (Control Deficiency) Programs: U.S. Department of Housing and Urban Development - Project Based Rental Assistance (PBRA) (Section 8 Project-Based Cluster), Award Listing Number 14.195. Planned Corrective Action: The Corporation acknowledges that the 2025 data collection form and REAC filing were not filed timely. The planned correction plan is to file the 2025 data collection form and REAC filing upon the issuance of the Uniform Guidance financial statements and ensure that future data collection forms and REAC filing are submitted timely. Person Responsible: A’isha Torrence, Chief Financial Officer Expected Completion Date: July 2026
Management's Response and Corrective Action Plan Fiscal Year 2025 Single Audit Finding Reference: 2025-001 & 2025-004 o Classification: Material Weakness in Internal Control Over Financial Reporting / Compliance o Target Completion Date: 120 Days (from the issuance of the final audit report o Respon...
Management's Response and Corrective Action Plan Fiscal Year 2025 Single Audit Finding Reference: 2025-001 & 2025-004 o Classification: Material Weakness in Internal Control Over Financial Reporting / Compliance o Target Completion Date: 120 Days (from the issuance of the final audit report o Responsible Officials: Finance Director, Director of Information Systems and the Municipal Advisor Management's Response & Corrective Action Plan: Concurrence with the Findings: The Management of the Municipality of Corozal concurs with the conditions and recommendations outlined in Findings 2025-001 and 2025-004 We acknowledge that the recent migration of our core accounting system compromised the system's operational and technical capacity to generate balanced trial balances, reconcile subsidiary ledgers, and streamline the automatic production of the Schedule of Expenditures of Federal Awards (SEFA). Corrective Actions to be Implemented: To resolve these deficiencies systematically and ensure full compliance with Government Auditing Standards and the Uniform Guidance (2 CFR 200), the Municipality will execute the following action plan within a strict 120-day timeframe: 1. System Re-alignment & Expert Remediation (Led by: Director of Information Systems and the Municipal Advisor): The Municipality will immediately retain specialized software implementation engineers and municipal accounting consultants to trace the migration mapping errors. This team will re-align the platform's database structure to correct the corrupted historical financial data and prior-period balances. 2. Opening Balance Reconstruction (Led by: Finance Director & Municipal Advisor): A formal data-clearing project will be established to reconstruct, cross-reference, and validate all opening balances transferred from the legacy system against the prior year's audited financial statements to restore data integrity. 3. Interim Manual Tracking for Federal Programs (Led by: Finance Director): To address the risks highlighted in Finding 2025-004 the Finance Department will immediately implement an interim manual spreadsheet tracking matrix. This will ensure all federal expenditures across all active Assistance Listings (ALN) are manually reconciled with federal drawdowns and physical invoices until the core accounting database is completely functional. 4. Closing Controls & Migration Policies (Led by: Joint Committee): We will design and implement rigid monthly closing routines and formal trial balance reviews. Furthermore, we will establish strict IT transition frameworks requiring dual-system running periods and mandatory data-integrity sign-offs before any future application or ledger upgrades are deployed. Should you have any questions or require additional information, please do not hesitate to contact the undersigned at (787) 859-3060, ext. 1703. Sincerely Jose A Rivera Miranda Finance Director
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