Corrective Action Plans

Finding 1215074 (2024-004)

Material Weakness 2024

HOUSING AUTHORITY OF THE CITY OF LITTLE ROCK, ARKANSAS

CA

Allowable Costs / Cost Principles HUD Housing Programs Questioned Costs

Finding 2024-004 Federal Agency: U.S. Department of Housing and Urban Development Federal Program Titles: Housing Voucher Cluster, Public and Indian Housing Program, Public Housing Capital Fund Program, and Coronavirus Relief Fund Assistance Listing Numbers: 14.871, 14.879, 14.850, 14.872, and 21.01...

Finding 2024-004 Federal Agency: U.S. Department of Housing and Urban Development Federal Program Titles: Housing Voucher Cluster, Public and Indian Housing Program, Public Housing Capital Fund Program, and Coronavirus Relief Fund Assistance Listing Numbers: 14.871, 14.879, 14.850, 14.872, and 21.019 Material Noncompliance Non Compliance Material to the Financial Statements: Yes Material Weakness in Internal Control over Compliance Criteria: The Authority must maintain complete and accurate accounts and other records for the program in accordance with HUD compliance requirements. Condition: The Authority did not maintain complete and accurate accounts and other records in accordance with HUD compliance requirements regarding Activities Allowed or Unallowed, Allowable Costs/Cost Principles, Eligibility, Reporting, and Special Tests and Provisions. Context: The Authority was unable to provide requested documentation at the time of audit to properly test the HUD compliance requirements. Known Questioned Costs: Unknown Cause: There is a material weakness in internal controls over compliance related to the maintenance of tenant files, wait lists, inspection reports and other records. 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 and Public and Indian Housing Program are in material non- compliance with the compliance requirements of the program. Recommendation: We recommend that the Authority implement a process whereby Authority documents are stored and safeguarded to ensure compliance with the Uniform Guidance and the compliance supplement. View of Responsible Officials and Corrective Actions: The Authority experienced significant turnover in employees during the year and as a result certain source documents were misplaced or destroyed. Management agrees with the Auditors' finding and has hired a new Executive Director who will implement the required safeguards and ensure that the Authority follows its internal control over compliance processes and procedures related to the Housing Voucher Cluster, Public and Indian Housing Program and Public Housing Capital fund Program to remedy the aforementioned deficiencies. Bryant McClellan, CFO, will be responsible to implement this corrective action by December 31, 2025.

View Audit 401788

Finding 1214683 (2024-002)

Material Weakness 2024

City of Texas City, Texas

TX

Reporting Internal Control / Segregation of Duties Questioned Costs

CDBG Performance Reporting (ALN 14.228) Condition The PR28 and CAPER reports were submitted 11 months late. This is a repeat finding and resulted from insufficient controls and inadequate staff training. Corrective Action Plan To ensure timely and compliant reporting, the following actions will be t...

CDBG Performance Reporting (ALN 14.228) Condition The PR28 and CAPER reports were submitted 11 months late. This is a repeat finding and resulted from insufficient controls and inadequate staff training. Corrective Action Plan To ensure timely and compliant reporting, the following actions will be taken: • Developing written procedures for PR28 and CAPER preparation and submission. • Implementing a compliance calendar with required reporting deadlines. • Assigning both primary and secondary preparers to ensure redundancy. • Providing HUD IDIS training to relevant staff. • Conducting supervisory review prior to submission. • Hired a Grants Compliance Specialist to support ongoing compliance.(10/2025) Responsible Staff Grants Administrator Target Completion Date August 31, 2026

View Audit 401408

Finding 1214622 (2024-001)

Material Weakness 2024

WABASH TELEPHONE COOPERATIVE INC

IL

Allowable Costs / Cost Principles Internal Control / Segregation of Duties Cash Management § 200.302 § 200.303

Finding 2024-001 Allowable Cost Principles and Activities Allowed or Unallowed Material Weakness in Internal Control Over Compliance Assistance Listing Number 21.029 While Wabash currently maintains informal procedures for coding and reviewing invoices and payroll records, we recognize the need for ...

Finding 2024-001 Allowable Cost Principles and Activities Allowed or Unallowed Material Weakness in Internal Control Over Compliance Assistance Listing Number 21.029 While Wabash currently maintains informal procedures for coding and reviewing invoices and payroll records, we recognize the need for a formalized, written policy governing expenditures charged to federal awards. To address identified material weaknesses, Wabash is committed to implementing a comprehensive written policy by June 30, 2026. This policy will formalize the coding, review, and reporting processes for all federal expenditures. Key improvements will include: • Enhanced Internal Controls: We will establish a clear segregation of duties to ensure oversight and accuracy. • Timely Reporting: We are refining our payroll allocation process. Previously, payroll expenditures were withheld pending budget verification, which occasionally led to reporting delays. New controls will ensure that all expenditures, including payroll, are reported within the required quarterly timeframes. • Monitoring: The Controller will oversee the development of these procedures and remain responsible for ongoing monitoring and compliance. These steps will ensure our financial practices meet federal standards and provide rigorous oversight of project funds. Contact person(s): Cheryl Gaither, Controller Justin Gephart, Chief Operating Officer

View Audit 401306

Finding 1214615 (2024-011)

Material Weakness 2024

Town of Saugerties

NY

HUD Housing Programs Special Tests & Provisions

Finding 2024-011 - Special Tests and Provisions: Depository Agreements Auditee's Response and Planned Corrective Action The Town will work with the Public Housing administrator to insure a depository agreement is in place and documentation of same is on file and readily available. Planned Implementa...

Finding 2024-011 - Special Tests and Provisions: Depository Agreements Auditee's Response and Planned Corrective Action The Town will work with the Public Housing administrator to insure a depository agreement is in place and documentation of same is on file and readily available. Planned Implementation Date of Corrective Action: January 2025 Person Responsible for Corrective Action: Fred Costello, Town Supervisor

View Audit 401284

Finding 1214614 (2024-010)

Material Weakness 2024

Town of Saugerties

NY

HUD Housing Programs

Finding 2024-010 -Reporting Auditee's Response and Planned Corrective Action The town will work with the Public Housing administrator to implement a system to complete and file the unaudited fmancial information within two and a half months, and with the independent audit frrm to file within nine mo...

Finding 2024-010 -Reporting Auditee's Response and Planned Corrective Action The town will work with the Public Housing administrator to implement a system to complete and file the unaudited fmancial information within two and a half months, and with the independent audit frrm to file within nine months. Planned Implementation Date of Corrective Action: January 2025 Person Responsible for Corrective Action: Fred Costello, Town Supervisor

View Audit 401284

Finding 1214343 (2024-002)

Material Weakness 2024

Amsterdam Housing I, INC

NY

HUD Housing Programs Special Tests & Provisions Cash Management

Corrective Action Plan (CAP) Name of auditee: Amsterdam Housing I, Inc. TIN: 014-EE264 Name of Audit Firm: EFPR Group, CPAs, PLLC Period covered by audit: June 30, 2024 CAP prepared by: Henry Rodriguez, Jr. President Corvus Property Intelligence, LLC (410) 896-6770 Current Finding on the Schedule of...

Corrective Action Plan (CAP) Name of auditee: Amsterdam Housing I, Inc. TIN: 014-EE264 Name of Audit Firm: EFPR Group, CPAs, PLLC Period covered by audit: June 30, 2024 CAP prepared by: Henry Rodriguez, Jr. President Corvus Property Intelligence, LLC (410) 896-6770 Current Finding on the Schedule of Findings and Questioned Costs and Recommendations (2) Finding 2024-002 (a) Comments on the finding and recommendation: Management agrees with the finding. Management also agrees with the recommendation, please see below for action taken. (b) Action taken: Management will deposit the underfunded amounts when a cash flow surplus is realized. Management is actively working with HUD to collect retroactive subsidy payments.

View Audit 401017

Finding 1214342 (2024-001)

Material Weakness 2024

Amsterdam Housing I, INC

NY

Special Tests & Provisions HUD Housing Programs

Corrective Action Plan (CAP) Name of auditee: Amsterdam Housing I, Inc. TIN: 014-EE264 Name of Audit Firm: EFPR Group, CPAs, PLLC Period covered by audit: June 30, 2024 CAP prepared by: Henry Rodriguez, Jr. President Corvus Property Intelligence, LLC (410) 896-6770 Current Finding on the Schedule of...

Corrective Action Plan (CAP) Name of auditee: Amsterdam Housing I, Inc. TIN: 014-EE264 Name of Audit Firm: EFPR Group, CPAs, PLLC Period covered by audit: June 30, 2024 CAP prepared by: Henry Rodriguez, Jr. President Corvus Property Intelligence, LLC (410) 896-6770 Current Finding on the Schedule of Findings and Questioned Costs and Recommendations (1) Finding 2024-001 (a) Comments on the finding and recommendation: Management agrees with the finding. Management also agrees with the recommendation, please see below for action taken. (b) Action taken: Management will deposit the underfunded amounts when a cash flow surplus is realized. Management is actively working with HUD to collect retroactive subsidy payments.

View Audit 401017

Finding 1213957 (2024-003)

Material Weakness 2024

Ville Platte Affordable Housing CORP

LA

HUD Housing Programs

FINDING #2024-003 RESIDUAL RECEIPTS DEPOSIT Recommendation: The management agent should compute an estimate of surplus cash (residual receipts) for the fiscal year upon completion of that period. In the event that surplus cash exists at the completion of the fiscal period, the management agent must ...

FINDING #2024-003 RESIDUAL RECEIPTS DEPOSIT Recommendation: The management agent should compute an estimate of surplus cash (residual receipts) for the fiscal year upon completion of that period. In the event that surplus cash exists at the completion of the fiscal period, the management agent must further ensure that all required deposits are made to the residual receipts account within the required time frame and that the balance in that account meets the minimum required balance in accordance with the regulatory agreement between the Entity and HUD. Views of Responsible Officials and Planned Corrective Action: The management agent agrees with the finding and the auditor’s recommendations have been adopted. Surplus cash will be calculated upon the completion of an annual fiscal period. If it is concluded that surplus cash exists at the end of the annual fiscal period, and further determined that the surplus cash was received within that fiscal period, that amount of surplus cash will be deposited into the Residual Receipts Account within ninety days of the close of that fiscal period.

View Audit 400800

Finding 1213956 (2024-002)

Material Weakness 2024

Ville Platte Affordable Housing CORP

LA

HUD Housing Programs

FINDING #2024-002 LATE CENSUS BUREAU FILING Recommendation: We recommend that the property comply with all continuing compliance requirements and ensure that the data collection form is submitted by the required deadline in the future. Views of Responsible Officials and Planned Corrective Action: Ma...

FINDING #2024-002 LATE CENSUS BUREAU FILING Recommendation: We recommend that the property comply with all continuing compliance requirements and ensure that the data collection form is submitted by the required deadline in the future. Views of Responsible Officials and Planned Corrective Action: Management is now aware of the continuing compliance requirement and will comply with this recommendation in the future.

View Audit 400800

Finding 1213955 (2024-001)

Material Weakness 2024

Ville Platte Affordable Housing CORP

LA

HUD Housing Programs

FINDING #2024-001 LATE AUDIT SUBMISSION Recommendation: We recommend that the property comply with HUD’s audit requirements and ensure that the audit is submitted by the required deadline in the future. Views of Responsible Officials and Planned Corrective Action: Management is aware and will comply...

FINDING #2024-001 LATE AUDIT SUBMISSION Recommendation: We recommend that the property comply with HUD’s audit requirements and ensure that the audit is submitted by the required deadline in the future. Views of Responsible Officials and Planned Corrective Action: Management is aware and will comply with this recommendation in the future.

View Audit 400800

Finding 1213637 (2024-001)

Material Weakness 2024

Westhaven of Englewood, Ltd.

IL

Cash Management HUD Housing Programs

Management agrees that the amount needs to be deposited as soon as possible.

View Audit 400565

Finding 1213532 (2024-030)

Material Weakness 2024

Government of Guam

GU

Reporting Subrecipient Monitoring Cash Management

Finding No.: 2024-030 Reporting Responding Agency: Bureau of Budget and Management Research (BBMR) Responsible Personnel: Lester Carlson, Director BBMR will work with DOA to make sure reports are submitted on time. BBMR will also retain documentation of submitted reports.

View Audit 400461

Finding 1211181 (2024-001)

Material Weakness 2024

Houston Housing Authority

TX

HUD Housing Programs Internal Control / Segregation of Duties Material Weakness

2024-001 Financial Reporting Material Weakness in Internal Control Material Noncompliance Condition: During our audit of the Authority’s financial statements, numerous adjustments were needed to properly report the financial statements in accordance with generally accepted accounting principles. Cer...

2024-001 Financial Reporting Material Weakness in Internal Control Material Noncompliance Condition: During our audit of the Authority’s financial statements, numerous adjustments were needed to properly report the financial statements in accordance with generally accepted accounting principles. Certain accounts had not been properly reconciled and corrective entries were not readily available. Significant audit adjustments were necessary for several audit areas and the audit was significantly delayed due to these adjustments. Auditor’s Recommendations: The Authority should continue to develop and implement internal controls over both internal and external reporting, and the year-end close process to ensure reporting remains accurate and timely, with any unexpected financial data being investigated and corrected before it is reported. The Authority should consider additional staff training on development activities. Action Taken: The Houston Housing Authority agrees with this finding and related recommendations. During this audit, as these issues arose, notes were taken, evaluation of what had happened was made so that we could make the necessary adjustments to our procedures to prevent the continuation of these issues. In addition, in the previous year we hired a firm to come in and undertake a review of the finance department. The purpose of this review was to review our existing staffing levels, workloads, experience, etc., for purposes of proposing a reorganization of the finance department to address any deficiencies. We have reviewed the recommendations from this consultant and are in the process of implementing many of the recommended changes. There have been a number of staffing changes made during the year with the intent of improving the overall performance of the finance department. We are in the process of evaluating if additional staff are needed to expand the capacity of the Finance department. In November of 2024 the Houston Housing authority converted to a new accounting system. The Yardi system was implemented and we began processing all transactions on this new system. Unfortunately, there have been a significant amount of post implementation corrections and modifications that have had to be made and continue to occur. We are still undergoing these implementation and modification processes and as a result of this we continue to have to make adjusting entries to correct errors as they are discovered. To further complicate this system conversion there were a number of changes made to the management companies that we utilize to do our primary property level accounting. They have also been converting portions of their accounting systems to Yardi. Many of the same problems that have been encountered during our system conversion have also been encountered by the management companies. It is anticipated that most of these system conversion related issues will be resolved within the 2025 calendar year. The VP Fiscal and Business Operations as well as the Director of Finance are responsible for implementing the necessary process and procedural changes to eliminate the need for this type of finding for the 2024 audit.

View Audit 400373

Finding 1211180 (2024-004)

Material Weakness 2024

Houston Housing Authority

TX

HUD Housing Programs

Eligibility Section 8 Project-Based Cluster Material Weakness in Internal Control Material Noncompliance Condition: Out of an approximate population of 240 of tenants, 11 tenant files were tested and the following deficiencies were noted: Four files did not have annual recertifications performed dur...

Eligibility Section 8 Project-Based Cluster Material Weakness in Internal Control Material Noncompliance Condition: Out of an approximate population of 240 of tenants, 11 tenant files were tested and the following deficiencies were noted: Four files did not have annual recertifications performed during the year, Two files did not have a 214 declaration form for all members of the household, Two files used incorrect income based on the support provided during the annual recertification, One file did not have documentation necessary to verify the reported income, and One files did not have utility allowance documentation. Auditor Recommendations: The Authority should reevaluate their established procedures and controls in place to ensure full compliance in regards to eligibility and the timeliness of recertifications. The Authority needs to correct the deficiencies noted in the tested files and consider the impact to the rest of the population of tenant files that were not selected as part of the auditor’s sample. Action Taken: The Houston Housing Authority agrees with this fining and related recommendations. During 2024 the voucher and public housing programs converted to a new software system. Yardi is not the principal operating system for both the voucher and public housing programs. This system conversion has required that work flows had to be modified. This modification and implementation of a new processing system did not allow staff to conduct the necessary reviews of existing files to make sure that the compliance related materials that should be found in each file were to be completed. This issue has been discussed and there will be an internal review conducted on file samples to determine what compliance deficiencies are prevalent. Corrective action steps will be implemented to address these issues designed to correct them. Additional training resources will be devoted to staff in these departments designed to improve quality control with these program areas.

View Audit 400373

Finding 1211174 (2024-003)

Material Weakness 2024

Houston Housing Authority

TX

HUD Housing Programs Questioned Costs Eligibility

Eligibility Housing Voucher Cluster Material Weakness in Internal Control Material Noncompliance Condition: Out of an approximate population of 1,500 of Housing Voucher Cluster tenants we tested 11 tenants and the following deficiencies were noted: Five files did not have an annual recertification p...

Eligibility Housing Voucher Cluster Material Weakness in Internal Control Material Noncompliance Condition: Out of an approximate population of 1,500 of Housing Voucher Cluster tenants we tested 11 tenants and the following deficiencies were noted: Five files did not have an annual recertification performed with 12 months of the previous certification Two files did not have inspection documentation during the period, One file did not have an annual recertification performed, One file did not have documentation to support HAP amount reported, One file used an incorrect payment standard, One file did not have dependency documentation for a dependent member of the household, One file was missing documentation to support income claimed during recertification, and One file will missing rent reasonableness documentation and approval. Auditor Recommendations: The Authority should reevaluate their established procedures and controls in place to ensure full compliance in regards to eligibility and the timeliness of recertifications. The Authority needs to correct the deficiencies noted in the tested files and consider the impact to the rest of the population of tenant files that were not selected as part of the auditor’s sample. Action Taken: The Houston Housing Authority agrees with this fining and related recommendations. During 2024 the voucher and public housing programs converted to a new software system. Yardi is not the principal operating system for both the voucher and public housing programs. This system conversion has required that work flows had to be modified. This modification and implementation of a new processing system did not allow staff to conduct the necessary reviews of existing files to make sure that the compliance related materials that should be found in each file were to be completed. This issue has been discussed and there will be an internal review conducted on file samples to determine what compliance deficiencies are prevalent. Corrective action steps will be implemented to address these issues designed to correct them. Additional training resources will be devoted to staff in these departments designed to improve quality control with these program areas.

View Audit 400373

Finding 1211171 (2024-002)

Material Weakness 2024

Houston Housing Authority

TX

HUD Housing Programs

Eligibility Moving to Work Demonstration Program AL No. 14.881 Material Weakness in Internal Control Material Noncompliance Condition: Out of an approximate population of 17,500 of Section 8 Housing Choice Voucher and 2,200 Low Rent Public Housing tenants the following deficiencies were noted: Secti...

Eligibility Moving to Work Demonstration Program AL No. 14.881 Material Weakness in Internal Control Material Noncompliance Condition: Out of an approximate population of 17,500 of Section 8 Housing Choice Voucher and 2,200 Low Rent Public Housing tenants the following deficiencies were noted: Section 8 Housing Choice Voucher (a total of 11 tenants selected for testing): One file did not have annual recertifications performed during the year, Two files did not have 9886 release of information forms within 15 months of annual recertification, Three files did not have an annual recertification performed with 12 months of the previous certification, Two files did not have a utility allowance calculation sheet during annual recertification, Three files did not have documentation necessary to verify the reported income, Two files did not have an inspection performed during the period, and Two files did not utilize the correct payment standard. Low Rent Public Housing (a total of 12 tenants selected for testing): Three files did not contain flat rent options forms, Four files did not have documentation necessary to verify the reported income, Six files did not have a 214 declaration for a member of the household, and One file did not have support necessary to verify income allowances. Auditor Recommendations: The Authority should reevaluate their established procedures and controls in place to ensure full compliance in regards to eligibility and the timeliness of recertifications. The Authority needs to correct the deficiencies noted in the tested files and consider the impact to the rest of the population of tenant files that were not selected as part of the auditor’s sample. Action Taken: The Houston Housing Authority agrees with this fining and related recommendations. During 2024 the voucher and public housing programs converted to a new software system. Yardi is not the principal operating system for both the voucher and public housing programs. This system conversion has required that work flows had to be modified. This modification and implementation of a new processing system did not allow staff to conduct the necessary reviews of existing files to make sure that the compliance related materials that should be found in each file were to be completed. This issue has been discussed and there will be an internal review conducted on file samples to determine what compliance deficiencies are prevalent. Corrective action steps will be implemented to address these issues designed to correct them. Additional training resources will be devoted to staff in these departments designed to improve quality control with these program areas. The Senior Vice President of Voucher Operations and the Senior Vice President of Asset Management will be focused on improving the quality of our files that support the voucher and public housing operations.

View Audit 400373

Finding 1211031 (2024-004)

Material Weakness 2024

Municipality of Ceiba

PR

HUD Housing Programs Reporting

We concur with this finding. During the fiscal year 2025-2026, both reports for fiscal years 2022 and 2023 will be filed. Therefore, the conditions of the findings will be corrected.

View Audit 400309

Finding 1210988 (2024-013)

Material Weakness 2024

State of Mississippi

MS

Reporting Questioned Costs Student Financial Aid

Finding 2024- 013: Terminated User Access Not Removed Timely Significant Deficiency In Internal Control Over Financial Reporting Criteria: Per 45 CFR 75.303(a), non-Federal entitles expendingHHS awards must establish and maintain effective internal controls over compliance with Federal states, regul...

Finding 2024- 013: Terminated User Access Not Removed Timely Significant Deficiency In Internal Control Over Financial Reporting Criteria: Per 45 CFR 75.303(a), non-Federal entitles expendingHHS awards must establish and maintain effective internal controls over compliance with Federal states, regulati ons, and the terms and conditions of the Federal award. Management must mainta in effective user access controls over financia l reporting systems. This Includes promptly removing or disabling access for terminated users and periodically reviewing user access to confirm it aligns with current employment status and job responsibilities. Condition: Testing of IT general controls identifiedinstances where terminated employees' user accounts or financial application access remained active beyond the termination date. MDCPS did not disable terminated user access or remove related application rights in a timely manner. Perspective: During our review of general IT controls, the auditor received a list of terminated employees. Of the 11 employees presented, 6 maintainedaccess to MACWIS after termination.Further, during the performance of a process walkthrough,it was noted that the former chief financial officer was still active in CapPlus and SPHARS. Personnel Responsiblefor Corrective Action: Nome: Shannon Rushton (Employee Seporotlon SOP) Title : Deputy Commissionerof Human Capitol Email: Shannon.Rushton@mdcps.ms.gov Phone Number: 601-359-2696 Name: Christopher Ray (CapPlus User Termination) Title: Deputy Director to the CFO Email: Christopher.Roy@mdcps.ms.gov Phone Number: 601-359-4043 Corrective Action Plan: MDCPS has reinforcedthe EmployeeSeparation St andard Operating Procedure(2.19.2.2) to ensure all system access is removed promptly upon employee separation. Human Resources will notify system administrators immedai tely upon employeetermination, and system administrators will disable all associated application access no later than th e employee's final day of employment. Human Resources will conduct periodic user access reviews to ensure procedures are properly Imp lemented. The Finance Division will ensure the cap Plus software's access and penn1ss1ons are monitored and maintained by the agency with assistance from Interactive Voice Application (IVA). Upon a Cap Plus user's termination , they will be removed from the Cap Plu s software upon their last day of employment or the removal of th eir dutie.s by the agency. These permissions do not require IT or Human Resource control as Cap Plus i s independent of all accounting, payroll, and HR software. Antldpated Completion Date: Empl oyee Separation SOP effectiveas of July 22, 2025. CapP lus user's termination procedures effective as of March 31, 2026.

View Audit 400294

Finding 1209005 (2024-104)

Material Weakness 2024

State of Arizona

AZ

Allowable Costs / Cost Principles Eligibility HUD Housing Programs § 200.303 § 200.403 § 200.404 § 200.513 § 200.521

Assistance listing numbers and program names: 21.023 COVID-19 Emergency Rental Assistance Program 21.027 COVID-19 Coronavirus State and Local Fiscal Recovery Funds Agency: Department of Economic Security (DES) Name of contact person and title: Molly Bright, Community Services Division Assistant Dire...

Assistance listing numbers and program names: 21.023 COVID-19 Emergency Rental Assistance Program 21.027 COVID-19 Coronavirus State and Local Fiscal Recovery Funds Agency: Department of Economic Security (DES) Name of contact person and title: Molly Bright, Community Services Division Assistant Director Anticipated completion date: June 30, 2026 Agency’s Response: Concur The Department of Economic Security will address the audit recommendations as follows: 1. Ensure benefit payments are for allowable costs paid to or on behalf of eligible program applicants. The Division will review and confirm that benefits payments paid to or on behalf of eligible program applicants are allowable expenditures of the federal funding being disbursed. 2. Update existing policies and procedures to include a post-review of the benefits subsystem’s automated review of eligibility requirements, such as verifying the income thresholds and geographic location aligned with the Division’s written policies and procedures, and supported by required documentation. The Division should correct any inaccurate eligibility determinations identified during the post-review. Emergency Rental Assistance Program policies and procedures require validation of eligibility based upon substantiating applicant documentation, including household income and geographic location. The Division will update Division policy to include a post-review process to identify and correct any errors or discrepancies. 3. Allocate sufficient staffing resources to perform a thorough evaluation of program benefits applications and provide training on eligibility requirements and allowable benefit payments. The Division will allocate sufficient staffing resources to evaluate program benefits applications and provide training on eligibility requirements and allowable benefit payments. 4. Work with the federal agencies to resolve the $64,131 in program funds that were spent in violation of federal regulations, policies and procedures, and may need to be returned to the federal agencies. The Department of Economic Security will address the audit recommendations as follows: 1. Ensure benefit payments are for allowable costs paid to or on behalf of eligible program applicants. The Division will review and confirm that benefits payments paid to or on behalf of eligible program applicants are allowable expenditures of the federal funding being disbursed. 2. Update existing policies and procedures to include a post-review of the benefits subsystem’s automated review of eligibility requirements, such as verifying the income thresholds and geographic location aligned with the Division’s written policies and procedures, and supported by required documentation. The Division should correct any inaccurate eligibility determinations identified during the post-review. Emergency Rental Assistance Program policies and procedures require validation of eligibility based upon substantiating applicant documentation, including household income and geographic location. The Division will update Division policy to include a post-review process to identify and correct any errors or discrepancies. 3. Allocate sufficient staffing resources to perform a thorough evaluation of program benefits applications and provide training on eligibility requirements and allowable benefit payments. The Division will allocate sufficient staffing resources to evaluate program benefits applications and provide training on eligibility requirements and allowable benefit payments. 4. Work with the federal agencies to resolve the $64,131 in program funds that were spent in violation of federal regulations, policies and procedures, and may need to be returned to the federal agencies. The Division will coordinate with applicable federal agencies to resolve these unallowable costs.

View Audit 399861

Finding 1208624 (2024-006)

Material Weakness 2024

Jefferson Parish

LA

Reporting Subrecipient Monitoring HUD Housing Programs

Management acknowledges this repeat finding and recognizes that, while prior conditions contributed to the issue, corrective actions have been implemented and significant progress has been made to resolve the finding. Since the audit finding, required compliance reports have been submitted timely. M...

Management acknowledges this repeat finding and recognizes that, while prior conditions contributed to the issue, corrective actions have been implemented and significant progress has been made to resolve the finding. Since the audit finding, required compliance reports have been submitted timely. Management considers the issue resolved; however, monitoring procedures will remain in place as a precaution to ensure continued compliance. Chief Administrative Assistant Nicole Thompson and Community Development Director Stephanie Brumfield will continue to monitor the submission of timely reports in compliance with federal requirements.

View Audit 399587

Finding 1208595 (2024-004)

Material Weakness 2024

Vernon J. Harris East End Community Health Center

VA

HUD Housing Programs Internal Control / Segregation of Duties

Management will implement standardized procedures for determining and verifying patient eligibility for sliding fee discounts, including required documentation and supervisory review. System controls will be enhanced to reduce manual errors, and staff will receive training on proper application of t...

Management will implement standardized procedures for determining and verifying patient eligibility for sliding fee discounts, including required documentation and supervisory review. System controls will be enhanced to reduce manual errors, and staff will receive training on proper application of the sliding fee schedule. Routine audits will be conducted to verify compliance and ensure accuracy in patient fee assignments.

View Audit 399556

Finding 1208594 (2024-003)

Material Weakness 2024

Vernon J. Harris East End Community Health Center

VA

HUD Housing Programs Reporting Internal Control / Segregation of Duties

Management will establish a formal reconciliation process between the general ledger and all federal reports prior to submission. This will include documented review procedures, supervisory approval, and the use of standardized reconciliation templates. Staff will be trained on reporting accuracy re...

Management will establish a formal reconciliation process between the general ledger and all federal reports prior to submission. This will include documented review procedures, supervisory approval, and the use of standardized reconciliation templates. Staff will be trained on reporting accuracy requirements, and periodic internal reviews will be conducted to ensure financial data integrity and compliance.

View Audit 399556

Finding 1208593 (2024-002)

Material Weakness 2024

Vernon J. Harris East End Community Health Center

VA

HUD Housing Programs Reporting Internal Control / Segregation of Duties

Management will implement a centralized compliance tracking system that includes a reporting calendar with automated reminders for all federal reporting deadlines. Responsibility for report preparation and submission will be formally assigned, with supervisory review prior to submission. Compliance ...

Management will implement a centralized compliance tracking system that includes a reporting calendar with automated reminders for all federal reporting deadlines. Responsibility for report preparation and submission will be formally assigned, with supervisory review prior to submission. Compliance meetings will be established to monitor reporting status and ensure deadlines are met.

View Audit 399556

Finding 1208588 (2024-002)

Material Weakness 2024

San Diego Workforce Partnership

CA

Subrecipient Monitoring HUD Housing Programs Reporting

Effective March 1, 2026, the San Diego Workforce Partnership will incorporate the Federal Funding Accountability and Transparency Act (FFATA) Subaward Reporting System (FSRS) reporting deadline into the Month‑End Schedule. The activities outlined in this schedule help ensure that all required financ...

Effective March 1, 2026, the San Diego Workforce Partnership will incorporate the Federal Funding Accountability and Transparency Act (FFATA) Subaward Reporting System (FSRS) reporting deadline into the Month‑End Schedule. The activities outlined in this schedule help ensure that all required financial data is captured, reviewed, and reported in a timely and complete manner. The Accounting Manager will oversee the operational steps required to meet FSRS reporting deadlines, while the Chief Financial Officer (CFO) will provide overall oversight to ensure that these procedures are consistently followed and that internal control expectations are met. Effective March 1, 2026, to address the delay in submission of monthly reports for the ARPA grant to the pass-through agency, the San Diego Workforce Partnership is implementing strengthened internal controls and workflow procedures to ensure all required reports are submitted by the 15th day following the end of each month, as stipulated in the grant agreement.

View Audit 399554

Finding 1208412 (2024-002)

Material Weakness 2024

Anderson Place Apartments, Inc.

IN

Eligibility HUD Housing Programs

Recommendation: The design of the current controls should be reviewed to ensure tenant files are complete and accurate. The Organization should fill out and maintain HUD Form 50059 for each annual recertification and keep information in the files that support the data used in its preparation. Tenant...

Recommendation: The design of the current controls should be reviewed to ensure tenant files are complete and accurate. The Organization should fill out and maintain HUD Form 50059 for each annual recertification and keep information in the files that support the data used in its preparation. Tenants should sign the recertification form. In addition, management should review all files and report any discrepancies to HUD in a timely manner. Action Taken: The management of Anderson Place Apartments, Inc. accepts the recommendation of Deming, Malone, Livesay & Ostroff and, accordingly, management will complete and document all annual recertifications, will maintain all documentation in tenant files to support the 50059 forms, will review all tenant files and report any discrepancies to HUD, and will make the necessary adjustments to tenant rent and rental subsidy calculations on the 50059 forms as soon as possible.

View Audit 399377

Corrective Action Plans

Filters