Corrective Action Plans

Finding 553700 (2024-001)

Significant Deficiency 2024

PA

HUD Housing Programs Procurement, Suspension & Debarment Eligibility

Finding 2024-001 Department of Housing and Urban Development Mortgage Insurance for the Purchase or Refinancing of Existing Multifamily Housing Projects - Section 223(f)/207, ALN 14.155. ...

Finding 2024-001 Department of Housing and Urban Development Mortgage Insurance for the Purchase or Refinancing of Existing Multifamily Housing Projects - Section 223(f)/207, ALN 14.155. Recommendation: The Property should have procedures in place to ensure the internal controls established to review Form HUD-50059 verifying all documentation used to calculate the tenant rent and assistance payment is supported and properly calculated. Action taken: The new property manager was informed of the finding. The error occurred prior to his management assignment. The new property manager, will ensure the internal controls established to review Form HUD-50059 verifying all documentation used to calculate the tenant rent and assistance payment is supported and properly calculated.

View Audit 352302

Finding 553598 (2024-001)

Material Weakness 2024

The Housing Company and Subsidiaries

ID

HUD Housing Programs Material Weakness Internal Control / Segregation of Duties

Federal Award Finding Finding 2024-001 Federal Agency Name: Department of Housing and Urban Development Assistance Listing Number: Federal Financial Assistance Listing 14.195 Program Name: Section 8 Project-Based Cluster – Project Based Rental Assistance (PBRA) – Section 8 Housing Assistance Payment...

Federal Award Finding Finding 2024-001 Federal Agency Name: Department of Housing and Urban Development Assistance Listing Number: Federal Financial Assistance Listing 14.195 Program Name: Section 8 Project-Based Cluster – Project Based Rental Assistance (PBRA) – Section 8 Housing Assistance Payment Program Finding Summary: Material Weakness in internal control over compliance was found in relation to owner’s performance of housing quality inspections. Annual housing quality inspections did not occur at one of the properties operating under Section 8 during 2024. The cause was turnover at the property management level and incomplete monitoring controls. Corrective Action Plan: The Housing Company will enhance its inspection process to ensure annual inspections are completed and reported for all properties. The plan includes the following steps: 1. Regional Managers will collect inspection data and enter it into a centralized tracking system. 2. The Operations Manager and/or Director of The Housing Company will review the tracker semi-annually to verify completeness. 3. Any incomplete inspections will be promptly identified and addressed to maintain annual inspection compliance. 4. The centralized tracker will be stored in an easily accessible location for authorized personnel. 5. Follow-up actions will be taken to complete any outstanding inspections in a timely manner. Responsible Individual: Erin Anderson, Director Anticipated Completion Date: Immediately – March 27, 2025. Very truly yours, Erin Anderson Director The Housing Company

View Audit 352192

Finding 553483 (2024-001)

Material Weakness 2024

City of Scotts Valley

CA

Reporting Cash Management HUD Housing Programs

2024-001 Failure to comply with Reporong Requirements The grant was executed in October 2023, making the first reporong period to start January 2024. The City was unable to access the DRGR portal until late April 2024. During this period, the City maintained regular communica􀆟on with the HUD represe...

2024-001 Failure to comply with Reporong Requirements The grant was executed in October 2023, making the first reporong period to start January 2024. The City was unable to access the DRGR portal until late April 2024. During this period, the City maintained regular communica􀆟on with the HUD representa􀆟ve . A􀅌er gaining access the data was entered into the portal and the City has remained in communica􀆟ons with HUD representa􀆟ves. While the report was entered, there are addi􀆟onal steps to be able to submit. The City is ac􀆟vely working with DRGR staff to resolve a system issue that is not allowing us to complete the submi􀆫ng process. To date, the City has not received any no􀆟fica􀆟on from HUD indica􀆟ng that the performance reports are overdue, and they have been able to proceed with processing the reimbursement requests. The City has gained beter knowledge in rela􀆟on to the steps for full report submissions on the DRGR website and has strengthened internal controls on repor􀆟ng requirements, and grants management in general to avoid cases like this in the future Contact – Stephanie Hill, Administra􀆟ve Services Director Es􀆟mated Implementa􀆟on – June 30, 2025

View Audit 352165

Finding 553475 (2024-001)

Significant Deficiency 2024

Miles City Eagles Manor

MT

HUD Housing Programs Matching / Level of Effort / Earmarking

Underpayment of the Flex Subsidy Loan On June 1, 2020, the Organization reached out to HUD with a plan to resolve the delinquent payments. Suggestions were to either forgive the loan or to have the payments be made from surplus cash. The Organization has not received correspondence concerning these ...

Underpayment of the Flex Subsidy Loan On June 1, 2020, the Organization reached out to HUD with a plan to resolve the delinquent payments. Suggestions were to either forgive the loan or to have the payments be made from surplus cash. The Organization has not received correspondence concerning these suggestions as of the date on this report, November 25, 2024. Karen Burkett, the Managing Agent, will work with the Organization to resolve this matter. The anticipated completion date is June 30, 2025.

View Audit 352155

Finding 551523 (2024-001)

Significant Deficiency 2024

Suffolk Redevelopment and Housing Authority

VA

HUD Housing Programs Eligibility Significant Deficiency

Finding No. 2024-001 Housing Choice Voucher: Tenant Eligibility – Significant Deficiency Contact Person: Patricia Tyus Executive Director/CEO The Authority's Housing Choice Voucher program was not pulling Earned Income Verifications (EIVs) within 90 days of move-in, as required by HUD regulations....

Finding No. 2024-001 Housing Choice Voucher: Tenant Eligibility – Significant Deficiency Contact Person: Patricia Tyus Executive Director/CEO The Authority's Housing Choice Voucher program was not pulling Earned Income Verifications (EIVs) within 90 days of move-in, as required by HUD regulations. Additionally, the Authority was missing one recertification for a tenant during the audit period and was missing criminal background checks for tenants. These issues were all for tenants at Whitemarsh Point Eagle Landing. CORRECTIVE ACTION: EIV compliance The Nelrod Company was solicited to provide a Compliance Monitor Plan for SRHA. They did not completely prepare what was required for; but focused on SEMAP, and they were delayed with the deliveries in the contract. We discontinue the contractual relationship and implemented the following items in 2024. We have completed the following items: 1. SRHA placed a priority on getting the staff EIV access so that all the staff can pull and print the EIVs 2. HCV added additional EIV procedures to the HCV SOPs 3. Worked with Vista Management (PBV) to ensure the EIV are printed and in the files 4. Management staff completed training for the staff on the following dates: Quality Control file training—02/08/2024; Compliance Training on all processes--09/06/2024; Adjustment Payment Training--10/4/2024; File Compliance Procedures—1/17/2025. TARGET DATE: On-going

View Audit 352125

Finding 551506 (2024-003)

Significant Deficiency 2024

Clarkson University

NY

Student Financial Aid Matching / Level of Effort / Earmarking Internal Control / Segregation of Duties

Management accepts this finding. The error on the verification (1 student) was made by a former staff that did not verify the student wages. Clarkson’s procedure clearly states the income is required to be verified, however the former staff member made an error in processing this verification. Impr...

Management accepts this finding. The error on the verification (1 student) was made by a former staff that did not verify the student wages. Clarkson’s procedure clearly states the income is required to be verified, however the former staff member made an error in processing this verification. Improvements to the training process have been implemented including emphasis on the requirement that staff verify income as part of the review process. A multi-tier review system has been implemented whereby after the initial review process has been completed, verification documents are submitted to the Director who then performs a second review to ensure that the initial review process was correctly followed and that the data is reliable. Anticipated Completion Date December 2024 - completed Responsible Person Nicole Adner, Director of Financial Aid

View Audit 352112

Finding 551223 (2024-001)

None 2024

Temple University

PA

Questioned Costs Equipment & Real Property Management HUD Housing Programs § 200.313

Corrective Action Plan: Temple concurs with the finding and has contacted the specified sponsors to obtain specific required documentation on transferred equipment and request retroactive disposition instructions. To improve compliance, Temple will update its equipment management policy to include p...

Corrective Action Plan: Temple concurs with the finding and has contacted the specified sponsors to obtain specific required documentation on transferred equipment and request retroactive disposition instructions. To improve compliance, Temple will update its equipment management policy to include procedures for equipment transfers between institutions. Equipment transfers will also be added to the internal PI transfer checklist. Additionally, we will enhance the training program for equipment managers to cover equipment transfer procedures. Action Date: March 24, 2025 Final Implementation Date: May 31, 2025 Name And Phone Number of Person Responsible for Implementation: Josh Gladden, (215) 204-370- 8138 See " Corrective Plan" on pages 127-128

View Audit 352087 Questioned Costs: $1

Finding 551180 (2024-004)

Material Weakness 2024

The City of New York

NY

HUD Housing Programs Eligibility Material Weakness § 200.303

Finding No. 2024-004 Department(s): New York City Housing Preservation & Development Program(s): Assistance Listing Number 14.871, Housing Voucher Cluster: Section 8 Housing Choice Vouchers Corrective Action(s): During the COVID 19 pandemic, HPD adopted HUD CARES Act waivers, intended to minimiz...

Finding No. 2024-004 Department(s): New York City Housing Preservation & Development Program(s): Assistance Listing Number 14.871, Housing Voucher Cluster: Section 8 Housing Choice Vouchers Corrective Action(s): During the COVID 19 pandemic, HPD adopted HUD CARES Act waivers, intended to minimize health and safety risks to applicants, participants, owners and staff, and which included the temporary suspension of adverse actions. Although HPD continued to request recertification packages during the period the waivers, February 2020 through December 2021, HPD did not penalize families who did not submit complete recertification packages at that time until more recently. HPD continues to make progress in addressing this substantial backlog through the implementation of technological and streamlined program improvements. HPD increased its HUD reporting rate of actions taken on household cases by 34% from FY23. Although there has been significant progress towards on time recertifications, HPD anticipates it will continue to take time until the agency achieves pre-pandemic overall submission levels as HPD ensures that any enforcement action the agency takes is taken as a last resort. HPD’s COVID-era policies involving adverse action have ceased and normal processes are in effect. However, it takes intensive tracking and follow up to ensure participants comply with requirements to submit annual certifications or have due-process before terminating subsidy for failing to respond. As a result, there is a lag between the re-implementation of HPD’s policy to take enforcement actions and ensuring every active participant has a completed certification. 1. Continue to build on existing systems to more closely track recertifications that are mailed and not returned. 2. Build on the more robust digital operations that were started during the pandemic to track the submission of documents improving reporting capabilities that help track overdue recertifications. 3. Create a streamlined process for referring overdue cases for Community Based Organizations that can assist participants complete and return recertification package 4. Continue to provide automated reminders for participants at risk of termination of assistance because of their failure to submit a recertification package. 5. Invest in a training team to meet the training needs of new staff Anticipated Completion Date: Implemented as of March 2025 Person(s) Responsible for Implementation: Dinsiri Fikru, Assistant Commissioner, Division of Program Policy and Innovation, Office of Housing Access and Stability FIKRUD@hpd.nyc.gov

View Audit 352075

Finding 551178 (2024-005)

Material Weakness 2024

The City of New York

NY

HUD Housing Programs Internal Control / Segregation of Duties Eligibility § 200.303

Finding No. 2024-005 Department(s): New York City Housing Preservation & Development Program(s): Assistance Listing Numbers: 14.249, Section 8 Project-Based Cluster: Section 8 Moderate Rehabilitation Single Room Occupancy 14.856, Section 8 Project-Based Cluster: Lower Income Housing Assistance Pro...

Finding No. 2024-005 Department(s): New York City Housing Preservation & Development Program(s): Assistance Listing Numbers: 14.249, Section 8 Project-Based Cluster: Section 8 Moderate Rehabilitation Single Room Occupancy 14.856, Section 8 Project-Based Cluster: Lower Income Housing Assistance Program – Section 8 Moderate Rehabilitation Corrective Action(s): During the COVID 19 pandemic, HPD adopted HUD CARES Act waivers, intended to minimize health and safety risks to applicants, participants, owners and staff, and which included the temporary suspension of adverse actions. Although HPD continued to request recertification packages during the period the waivers, February 2020 through December 2021, HPD did not penalize families who did not submit complete recertification packages at that time until more recently. HPD continues to make progress in addressing this substantial backlog through the implementation of technological and streamlined program improvements. HPD increased its HUD reporting rate of actions taken on household cases by 34% from FY23. Although there has been significant progress towards on time recertifications, HPD anticipates it will continue to take time until the agency achieves pre-pandemic overall submission levels as HPD ensures that any enforcement action the agency takes is taken as a last resort. HPD’s COVID-era policies involving adverse action have ceased and normal processes are in effect. However, it takes intensive tracking and follow up to ensure participants comply with requirements to submit annual certifications or have due-process before terminating subsidy for failing to respond. As a result, there is a lag between the re-implementation of HPD’s policy to take enforcement actions and ensuring every active participant has a completed certification. 1. Continue to build on existing systems to more closely track recertifications that are mailed and not returned. 2. Build on the more robust digital operations that were started during the pandemic to track the submission of documents improving reporting capabilities that help track overdue recertifications. 3. Create a streamlined process for referring overdue cases for Community Based Organizations that can assist participants complete and return recertification package 4. Continue to provide automated reminders for participants at risk of termination of assistance because of their failure to submit a recertification package. 5. Invest in a training team to meet the training needs of new staff Anticipated Completion Date: Implemented as of March 2025 Person(s) Responsible for Implementation: Dinsiri Fikru, Assistant Commissioner, Division of Program Policy and Innovation, Office of Housing Access and Stability FIKRUD@hpd.nyc.gov

View Audit 352075

Finding 551082 (2024-003)

Material Weakness 2024

Housing Authority of the Township of North Bergen

NJ

Questioned Costs HUD Housing Programs Eligibility

Views of responsible officials and planned corrective action: The Authority accepts the recommendation of the auditor. The Authority will increase oversight in the Public and Indian Housing and Section 8 Housing Choice Vouchers Programs to ensure that established internal control policies are bein...

Views of responsible officials and planned corrective action: The Authority accepts the recommendation of the auditor. The Authority will increase oversight in the Public and Indian Housing and Section 8 Housing Choice Vouchers Programs to ensure that established internal control policies are being followed on a timely basis. Julio Marenco, Interim Executive Director, will be responsible to implement this corrective action by June 30, 2025.

View Audit 352015 Questioned Costs: $1

Finding 551081 (2024-002)

Significant Deficiency 2024

Housing Authority of the Township of North Bergen

NJ

Questioned Costs Allowable Costs / Cost Principles HUD Housing Programs § 200.423 § 200.438 § 200.459 § 200.475

View of Responsible Officials and Corrective Actions: The Authority has recognized the deficiencies related to payroll and will implement internal control procedures that will ensure compliance with the Authority's internal control policies and personnel policy. Julio Marenco, Interim Executive Dire...

View of Responsible Officials and Corrective Actions: The Authority has recognized the deficiencies related to payroll and will implement internal control procedures that will ensure compliance with the Authority's internal control policies and personnel policy. Julio Marenco, Interim Executive Director, will be responsible to implement this corrective action by June 30, 2025.

View Audit 352015 Questioned Costs: $1

Finding 548753 (2024-003)

Significant Deficiency 2024

State of Utah

UT

Subrecipient Monitoring HUD Housing Programs Reporting

2024-003. Incomplete Pharmacy Rebate Reporting and Invoicing State Agency: Department of Health and Human Services Federal Agency: Department of Health and Human Services Following the launch of the Medicaid Provider Reimbursement Information System for Medicaid (PRISM) in April 2023, not all pharma...

2024-003. Incomplete Pharmacy Rebate Reporting and Invoicing State Agency: Department of Health and Human Services Federal Agency: Department of Health and Human Services Following the launch of the Medicaid Provider Reimbursement Information System for Medicaid (PRISM) in April 2023, not all pharmacy files from managed care entities and JCODE drugs properly transmitted to the third-party organization’s system. The key pharmacy claims files that needed to interface with the third-party organization’s system have now been rebuilt and are undergoing interface testing. After testing, the historic and more current files will be put into production and be transmitted to the third-party organization. Following receipt, the third-party organization will invoice and collect the unbilled rebates. Once this interface issue is resolved, all future required drug utilization data as well as rebate invoices will be sent to manufacturers within the required time frame. All claims received will be invoiced 60 days after the end of the current quarter they are received in, per CMS's rule. DHHS informed CMS of this issue in August 2024. At that time, CMS said the state was out of compliance and inquired on timelines to come into compliance. The state will provide updates to CMS when the backlogged files have been successfully transmitted and manufacturers have been invoiced. According to the third-party pharmacy organization, manufacturers were notified about this issue when it was discovered in May 2023 and advised that when the issues with invoicing these rebates is resolved they will be expected to pay the balance due. Implementation Date: May 30, 2025 Contact: Sepideh Daeery, Pharmacy Director, Division of Integrated Healthcare, sepidehdaeery@utah.gov Anticipated Correction Date: June 30, 2024

View Audit 352012

Finding 548699 (2024-016)

None 2024

State of Utah

UT

Procurement, Suspension & Debarment Subrecipient Monitoring Allowable Costs / Cost Principles

2024-016. Working Capital Reserves in Excess of Federal Guidelines State Agency: Department of Governmental Operations Federal Agency: Various Division of Purchasing and General Services Cooperative Contract Management Fund – State Purchasing continues to decrease the administrative fees on state co...

2024-016. Working Capital Reserves in Excess of Federal Guidelines State Agency: Department of Governmental Operations Federal Agency: Various Division of Purchasing and General Services Cooperative Contract Management Fund – State Purchasing continues to decrease the administrative fees on state cooperative contracts as each contract expires and is rebid. This is a slow process since State Purchasing has nearly 1,300 cooperative contracts with an average 5-year term. With only about 20% of the contracts expiring each year, this is an ongoing and slow process. Although State Purchasing is allowed under law to collect up to a 1.0% administrative fee on each cooperative contract, currently the average administrative fee is 0.35%. The excess reserves are also being reallocated to other programs. These allocations are intended to both reduce the excess reserve balance and to create efficiencies within the division to better serve state agencies. Federal Surplus Property Fund – The excess reserves are to be used in relocating Surplus to the Taylorsville State Office Building in March 2025. Contact Person: Windy Aphayrath (waphayrath@utah.gov, 801-957-7138), Director, Division of Purchasing and General Services Anticipated Correction Date: June 30, 2025 Division of Finance Purchasing Cards Fund (P-Card) – The system implementation was completed at the end of calendar year 2024. State Finance is working to analyze the annual costs of the system, develop a cost allocation strategy between the travel and P-Card programs, and adjust travel rates to cover the travel program's ongoing costs. The P-Card program will then distribute any remaining P-Card rebates to state agencies respective to their spending, if applicable. This effort will eliminate any excess federal reserves in the P-Card fund by the end of fiscal year 2025. Contact Person: Allyson Branch (abranch@utah.gov, 801-597-3523), Assistant Director, Division of Finance Anticipated Correction Date: June 30, 2025 Division of Risk Management Workers’ Compensation Fund – The Division of Risk Management has received approval from the Utah Legislature to reduce rates for workers’ compensation in fiscal year 2026. This will take effect on July 1, 2025. The division will also request at the next Legislative session to reallocate excess reserves from the Workers’ Compensation Fund to the Property Fund. This will be completed by July 1, 2026. Contact Person: Rachel Terry (rachelgterry@utah.gov, 801-702-7445), Director, Division of Risk Management, Anticipated Correction Date: July 1, 2026 Division of Technology Services Communication Services – The Division has worked to reduce the excess reserves and has been successful in decreasing the balance compared to the previous year. In addition, the current year rate was calculated to continue decreasing the excess reserve balance. Next year rates have also been adjusted to further reduce the excess reserve balance. We are working to balance reductions in retained earnings while maintaining services until the products reach the end of their lifecycle. Network Services – The Division is estimating that excess reserves will decrease as a result of anticipated increases in expenses over fiscal years 2025, 2026, and 2027 to support the migration to a cloud-based platform. We will continue to monitor rates and expenses as the technology environment continually changes. Printing Services – The Division has set the current year rate to recover costs in order to reduce the excess reserves. The threshold for this program has a small limit for a product with a very high volume. Print demand this year has been low, and we are forecasting this to be fully corrected by the end of fiscal year 2025. Contact Person: Jake Hennessy (jakehennessy@utah.gov, 385-271-2301), Executive Finance Director, Department of Government Operations Anticipated Correction Date: June 30, 2025 Division of Human Resource Management Human Resources Field Services – A cost allocation plan was developed to better align expenses with the specific service area supported. Field Service rates were lowered for fiscal year 2025. We anticipate continuing to fine tune rates to bring the Field Service reserve balance down. Contact Person: John Barrand (jbarrand@utah.gov, 801-957-9350), Director, Division of Human Resource Management Anticipated Correction Date: June 30, 2025

View Audit 352012

Finding 548686 (2024-005)

Significant Deficiency 2024

Wilberforce University

OH

Student Financial Aid Matching / Level of Effort / Earmarking Eligibility

Management agrees with the auditors and has initiated the necessary corrective action plan to mitigate the deficiency from occuring again. The plan is to implement new procedures to ensure the reporting to the NSLDS is done on a timely basis.

View Audit 352009

Finding 548627 (2024-001)

None 2024

The Jewish Home Tower, Inc.

GA

Questioned Costs Allowable Costs / Cost Principles HUD Housing Programs

To: Department of Housing and Urban Development and the Federal Audit Clearinghouse The Jewish Home Tower, Inc. respectfully submits the following corrective action plan for the year ended June 30, 2024. Responsible Official: Neelam Rahatekar, COO & CFO Anticipated Completion Date: April 30, 2025...

To: Department of Housing and Urban Development and the Federal Audit Clearinghouse The Jewish Home Tower, Inc. respectfully submits the following corrective action plan for the year ended June 30, 2024. Responsible Official: Neelam Rahatekar, COO & CFO Anticipated Completion Date: April 30, 2025 Name and Address of the Independent Public Accounting Firm: Mauldin & Jenkins, LLC 200 Galleria Parkway SE, Suite 1700 Atlanta, GA 30339 Audit Period: Year Ended June 30, 2024 Section III – Findings and Questioned Costs for Federal Awards 2024-001 Recommendation: It is recommended that the Organization should implement further procedures surrounding the accounts payable function to ensure all supporting documentation is retained for all expenditures. Action Taken: This issue arose because of turnover in the accounting department during the year under audit. We have implemented a new accounts payable software that will automate processes surrounding the accounts payable function and store required supporting documentation for all expenditures.

View Audit 351969 Questioned Costs: $1

Finding 548605 (2024-002)

Significant Deficiency 2024

City of Madera

CA

Subrecipient Monitoring HUD Housing Programs Period of Performance

Finding 2024-002 Special Tests and Provision – Internal Control and Compliance over Environmental Reviews (Significant Deficiency) Criteria: Title 24 U.S. Code of Federal Regulations sections 58.1, 58.22, 58.34, 58.35, and 570.604 require projects to have an environmental review unless they meet ...

Finding 2024-002 Special Tests and Provision – Internal Control and Compliance over Environmental Reviews (Significant Deficiency) Criteria: Title 24 U.S. Code of Federal Regulations sections 58.1, 58.22, 58.34, 58.35, and 570.604 require projects to have an environmental review unless they meet criteria specified in the regulations that would exempt or exclude them from environmental certification requirements. For projects where the environmental review was not performed, a written documentation that the review was not required must be prepared. Condition and Context: The City could not provide support that there was pre-award or post-award review of grant projects to determine if a project requires an environmental review or is categorically excluded from the environmental review requirements. The City did not have adequate internal controls to ensure compliance with the special test – environmental review requirements. Testing was performed over each requirement for the City. Out of a total population of twelve (12) projects, we selected a sample of four (4) projects to test for environmental reviews. Four (4) out of the four (4) projects tested did not have an exemption report prepared in a timely manner. The sample was not intended to be, and was not, a statistically valid sample. City’s Corrective Action Plan: The City will reinforce its standard operating procedure concerning Environmental Reviews (ER) and will reinsure that environmental reviews are properly completed for every awarded grant project. Contact person responsible for corrective action: Michael Lima, Finance Director Anticipated completion date: June 30, 2025

View Audit 351953

Finding 548202 (2024-002)

None 2024

Dartmouth-Hitchcock Health and Subsidiaries

NH

Subrecipient Monitoring Allowable Costs / Cost Principles HUD Housing Programs § 200.430

Management agrees with the finding related to effort certifications. Dartmouth-Hitchcock published a new effort policy on February 11, 2025, for all research staff to emphasize the importance of Principal Investigators and Research Staff certifying their efforts on grants promptly. Management will b...

Management agrees with the finding related to effort certifications. Dartmouth-Hitchcock published a new effort policy on February 11, 2025, for all research staff to emphasize the importance of Principal Investigators and Research Staff certifying their efforts on grants promptly. Management will begin implementing and enforcing the policy starting with the quarter ending March 31, 2025. Leadership Responsible: John Muhlen, System Vice President of Corporate Finance Anticipated Completion Date: March 31, 2025

View Audit 351922

Finding 548012 (2024-001)

None 2024

Dartmouth-Hitchcock Health and Subsidiaries

NH

Subrecipient Monitoring HUD Housing Programs

Management agrees with the finding related to cost transfer approval. The Dartmouth-Hitchcock Office of Research Operations experienced significant turnover in Fiscal Year 2024. Management will provide training materials for all new and existing staff in both the Research Post-Award and Research Fi...

Management agrees with the finding related to cost transfer approval. The Dartmouth-Hitchcock Office of Research Operations experienced significant turnover in Fiscal Year 2024. Management will provide training materials for all new and existing staff in both the Research Post-Award and Research Finance areas to reemphasize the Cost Transfer Policy. Additionally, management will review the current policy on cost transfers to determine whether any updates are needed to better align with current business practices and compliance requirements by June 30, 2025. Leadership Responsible: John Muhlen, System Vice President of Corporate Finance Anticipated Completion Date: June 30, 2025

View Audit 351922

Finding 548001 (2024-001)

Significant Deficiency 2024

Quincy Asian Resources, Inc.

MA

HUD Housing Programs Reporting Internal Control / Segregation of Duties

Views of Responsible Officials and Planned Corrective Action: While Quincy Asian Resources, Inc. concurs with the ultimate outcome identified in the finding, we want to emphasize our review indicates all transactions were handled with appropriate intent. The identified adjustments were primarily due...

Views of Responsible Officials and Planned Corrective Action: While Quincy Asian Resources, Inc. concurs with the ultimate outcome identified in the finding, we want to emphasize our review indicates all transactions were handled with appropriate intent. The identified adjustments were primarily due to timing of personnel transitions on our accounting department. To further strengthen our financial reporting processes, we have subsequently hired a new controller with extensive nonprofit accounting experience. This addition to our team will help ensure continued accuracy in financial reporting while maintaining strong internal controls.

View Audit 351904

Finding 547937 (2024-002)

Significant Deficiency 2024

New River Health Association, Inc.

WV

Procurement, Suspension & Debarment HUD Housing Programs Reporting

Management agrees with the auditors' recommendations. The UDS formulas were updated and the issues corrected for the 2024 UDS report. In the upcoming year it is expected that new accounting leadership and Grant Management will work together to ensure the accuracy of the UDS Report. Organization con...

Management agrees with the auditors' recommendations. The UDS formulas were updated and the issues corrected for the 2024 UDS report. In the upcoming year it is expected that new accounting leadership and Grant Management will work together to ensure the accuracy of the UDS Report. Organization contact persons responsible for corrective action: Michele Sarrett Anticipated completion date: 12/31/2025

View Audit 351868

Finding 547600 (2024-007)

Significant Deficiency 2024

Housing Authority of the County of Monterey

CA

Questioned Costs HUD Housing Programs Special Tests & Provisions

Federal Agency: U.S. Department of Housing and Urban Development Federal Program Titles: Section 8 Housing Choice Vouchers Program Federal Assistance Listing Numbers: 14.871, 14.879, and 14.EHV Noncompliance – N. Special Tests and Provisions - Reasonable Rent Non Compliance Material to the Financial...

Federal Agency: U.S. Department of Housing and Urban Development Federal Program Titles: Section 8 Housing Choice Vouchers Program Federal Assistance Listing Numbers: 14.871, 14.879, and 14.EHV Noncompliance – N. Special Tests and Provisions - Reasonable Rent Non Compliance Material to the Financial Statements: No Significant Deficiency in Internal Control over Compliance for Special Tests and Provisions Criteria: Reasonable Rent. The Authority must do the following: The Authority must determine that the rent to owner is reasonable at the time of initial leasing. Also, the Authority must determine reasonable rent during the term of the contract (a) before any increase in the rent to owner, and (b) at the HAP contract anniversary if there is a 5 percent decrease in the published Fair Market Rent in effect 60 days before the HAP contract anniversary. The Authority must maintain records to document the basis for the determination that rent to owner is a reasonable rent (initially and during the term of the HAP contract) (24 CFR sections 982.4, 982.54(d)(15), 982.158(f)(7), and 982.507). Condition: Based upon inspection of the Authority’s files and discussion with management, there were newly leased units for which the evaluation of rent reasonableness was not performed. Context: There were approximately 821 newly leased units. Of a sample size of forty-two (42) newly leased units, one (1) unit's documentation of reasonable rent was not available for examination. Our sample size is statistically valid. Known Questioned Costs: $16,685 Cause: There is a significant deficiency in internal controls over the compliance for the special tests and provisions type of compliance related to reasonable rent. The Authority has not properly considered, designed, implemented, maintained and monitored a system of internal controls that reasonably assures the program is in compliance. Effect: The Housing Voucher Cluster is in non-compliance with the special tests and provisions type of compliance related to reasonable rent. Recommendation: We recommend the Authority design and implement internal control procedures that will reasonably assure compliance with the Uniform Guidance and the compliance supplement. Views of responsible officials and planned corrective action: The Authority has recognized the significant deficiency in the Housing Voucher Cluster and will implement internal control procedures that will ensure compliance with federal regulations. Gabriela Rivero, Executive Assistant, will be responsible to implement this corrective action by June 30, 2025.

View Audit 351761 Questioned Costs: $1

Finding 547598 (2024-006)

Material Weakness 2024

Housing Authority of the County of Monterey

CA

Questioned Costs HUD Housing Programs Eligibility

Federal Agency: U.S. Department of Housing and Urban Development Federal Program Titles: Section 8 Housing Choice Vouchers and Mainstream Vouchers Federal Assistance Listing Numbers: 14.871, 14.879, and 14.EHV Noncompliance – N. Special Tests and Provisions – Selections from the Waiting List Non Com...

Federal Agency: U.S. Department of Housing and Urban Development Federal Program Titles: Section 8 Housing Choice Vouchers and Mainstream Vouchers Federal Assistance Listing Numbers: 14.871, 14.879, and 14.EHV Noncompliance – N. Special Tests and Provisions – Selections from the Waiting List Non Compliance Material to the Financial Statements: Yes Material Weakness in Internal Control over Compliance for Special Tests and Provisions Criteria: Selections from the Waiting List. The PHA must have written policies in its HCVP administrative plan for selecting applicants from the waiting list and PHA documentation must show that the PHA follows these policies when selecting applicants from the waiting list. Except for as provided in 24 CFR section 982.203(Special admission (non-waiting list)), all families admitted to the program must be selected from the waiting list. “Selection” from the waiting list generally occurs when the PHA notifies a family whose name reaches the top of the waiting list to come in to verify eligibility for admission (24CFR sections 5.410, 982.54(d), and 982.201 through 982.207). Condition: Based upon inspection of the waiting list provided to us during the time of audit, the new move-in list and discussions with management, it could not be determined with any certainty that new move-ins were selected from the wait list in an order that is in accordance with the Authority’s policy. Context: Forty-two (42) names were selected from the new move-in list and those names were to be traced to the waiting list to verify new move-ins were chosen in an order that was in accordance with the Authority’s policy. It was determined that thirty-eight (38) out of forty-two (42) new move-ins selected could not be traced with any certainty back to the Authority's waiting list. Known Questioned Costs: $741,293. Cause: There is a material weakness in internal controls over the compliance for the special tests and provisions type of compliance related to selections from the waiting list. The Authority has not properly considered, designed, implemented, maintained and monitored a system of internal controls that assures the program is in compliance. Effect: The Housing Voucher Cluster is in material non-compliance with the special tests and provisions type of compliance related to selections from the waiting list. Recommendation: We recommend the Authority design and implement internal control procedures that will reasonably assure compliance with the Uniform Guidance and the compliance supplement. Views of responsible officials and planned corrective action: The Authority has recognized the material weakness in the Housing Voucher Cluster will implement internal control procedures that will ensure compliance with federal regulations. Gabriela Rivero, Executive Assistant, will be responsible to implement this corrective action by June 30, 2025.

View Audit 351761 Questioned Costs: $1

Finding 547596 (2024-005)

Significant Deficiency 2024

Housing Authority of the County of Monterey

CA

Questioned Costs HUD Housing Programs Internal Control / Segregation of Duties

Federal Agency: U.S. Department of Housing and Urban Development Federal Program Titles: Housing Voucher Cluster Federal Catalog Numbers: 14.871, 14.879, and 14.EHV Noncompliance – L. Reporting - Special Reporting Non Compliance Material to the Financial Statements: No Significant Deficiency in Inte...

Federal Agency: U.S. Department of Housing and Urban Development Federal Program Titles: Housing Voucher Cluster Federal Catalog Numbers: 14.871, 14.879, and 14.EHV Noncompliance – L. Reporting - Special Reporting Non Compliance Material to the Financial Statements: No Significant Deficiency in Internal Control over Compliance for Reporting Criteria: The PHA must do the following: As a condition of admission or continued occupancy, require the tenant and other family members to provide necessary information, documentation, and releases for the PHA to verify income eligibility (24 CFR sections 5.230, 5.609, and 982.516). These files are required to be maintained and available for examination at the time of audit. Cause: There is a significant deficiency in internal controls over the compliance for the reporting type of compliance related to special reporting. The Authority has not maintained and monitored a system of internal controls that reasonably assures the program is in compliance. Effect: The Housing Voucher Cluster is in non-compliance with the reporting type of compliance related to special reporting. Recommendation: We recommend the Authority design and implement internal control procedures that will reasonably assure compliance with the Uniform Guidance and the compliance supplement. Views of responsible officials and planned corrective action: The Authority accepts the recommendation of the auditor. The Authority will increase oversight in the Housing Voucher Cluster to ensure that established internal control policies are being followed accurately and on a timely basis. Gabriela Rivero, Executive Assistant, will be responsible to implement this corrective action by June 30, 2025. Condition: Based upon inspection of the Authority’s files and on discussion with management, the Authority included income that was miscalculated during their annual reexamination. Context: Of a sample size of fifty-eight (58) tenant files, three (3) tenant's annual recertification (HUD-50058 form) included income that was miscalculated. Our sample size is statistically valid. Known Questioned Costs: $32,407

View Audit 351761 Questioned Costs: $1

Finding 547594 (2024-004)

Material Weakness 2024

Housing Authority of the County of Monterey

CA

Questioned Costs Special Tests & Provisions HUD Housing Programs

Federal Agency: U.S. Department of Housing and Urban Development Federal Program Titles: Housing Voucher Cluster Federal Assistance Listing Numbers: 14.871, 14.879, and 14.EHV Material Noncompliance – N. Special Tests and Provisions – HQS Inspections Non Compliance Material to the Financial Statemen...

Federal Agency: U.S. Department of Housing and Urban Development Federal Program Titles: Housing Voucher Cluster Federal Assistance Listing Numbers: 14.871, 14.879, and 14.EHV Material Noncompliance – N. Special Tests and Provisions – HQS Inspections Non Compliance Material to the Financial Statements: Yes Material Weakness in Internal Control over Compliance for Special Tests and Provisions Criteria: HQS Inspections. Per the Authority's HCV Admin Plan, the PHA must inspect the unit leased to a family at least biennially to determine if the unit meets HQS standards and the PHA must conduct quality control re-inspections. The PHA must prepare a unit inspection report (24 CFR sections 982.158(d) and 982.405(b)). These inspection reports are required to be maintained and available for examination at the time of audit. Condition: Based upon inspection of the Authority’s files and on discussion with management there were inspection reports that were unavailable for examination at the time of audit. Context: Of a sample size of fifty-eight (58) units, sixteen (16) units did not have a biennial HQS inspection performed. Our sample size is statistically valid. Known Questioned Costs: $325,733 Cause: There is a material weakness in internal controls over the compliance for the special tests and provisions type of compliance related to HQS inspections. The Authority has not properly considered, designed, implemented, maintained and monitored a system of internal controls that assures the program is in compliance. Effect: The Housing Voucher Cluster is in material non-compliance with the with the special tests and provisions type of compliance related to HQS inspections. Recommendation: We recommend the Authority design and implement internal control procedures that will reasonably assure compliance with the Uniform Guidance and the compliance supplement. Views of responsible officials and planned corrective action: The Authority has recognized the material weakness in the Housing Voucher Cluster will implement internal control procedures that will ensure compliance with federal regulations. Gabriela Rivero, Executive Assistant, will be responsible to implement this corrective action by June 30, 2025.

View Audit 351761 Questioned Costs: $1

Finding 547592 (2024-003)

Material Weakness 2024

Housing Authority of the County of Monterey

CA

Questioned Costs Special Tests & Provisions HUD Housing Programs

Federal Agency: U.S. Department of Housing and Urban Development Federal Program Titles: Housing Voucher Cluster Federal Assistance Listing Numbers: 14.871, 14.879, and 14.EHV Noncompliance – N. Special Tests and Provisions – Housing Quality Standards (HQS) Enforcement Non Compliance Material to the...

Federal Agency: U.S. Department of Housing and Urban Development Federal Program Titles: Housing Voucher Cluster Federal Assistance Listing Numbers: 14.871, 14.879, and 14.EHV Noncompliance – N. Special Tests and Provisions – Housing Quality Standards (HQS) Enforcement Non Compliance Material to the Financial Statements: Yes Material Weakness in Internal Control over Compliance for Special Tests and Provisions Criteria: HQS Enforcement. For units under HAP contract that fail to meet HQS, the PHA must require the owner to correct all life threatening HQS deficiencies within 24 hours after the inspections and all other deficiencies within 30 days or within a specified PHA-approved extension. Condition: Based upon inspection of the Authority’s files and on discussion with management, the Authority did not properly abate or provide proper extension documentation for failed inspections selected for testing. In addition, there were inspection reports that were unavailable for examination at the time of audit. Context: The Authority did not provide proper extension documentation or properly abate or seven (7) out of twenty-seven (27) failed inspections selected for testing. In addition, the Authority was unable to provide four (4) out twenty-seven (27) failed or passed inspections selection for testing. As a result, the Authority was not in compliance with the HQS as required by 24 CFR sections 982.158(d) and 982.405(b). Known Questioned Costs: $31,398 Cause: There is a material weakness in internal controls over the compliance for the special tests and provisions type of compliance related to HQS enforcement. The Authority has not properly considered, designed, implemented, maintained and monitored a system of internal controls that assures the program is in compliance. Effect: The Housing Voucher Cluster is in material non-compliance with the special tests and provisions type of compliance related to HQS enforcement. Recommendation: We recommend the Authority design and implement internal control procedures that will reasonably assure compliance with the Uniform Guidance and the compliance supplement. Views of responsible officials and planned corrective action: The Authority has recognized the material weakness in the Housing Voucher Cluster and will implement internal control procedures that will ensure compliance with federal regulations. Gabriela Rivero, Executive Assistant, will be responsible to implement this corrective action by June 30, 2025.

View Audit 351761 Questioned Costs: $1

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