Corrective Action Plans

Finding 564146 (2024-002)

Significant Deficiency 2024

NY

HUD Housing Programs Subrecipient Monitoring Allowable Costs / Cost Principles

Name of Auditee: Cohoes Housing Authority Name of Audit Firm: EFPR Group, CPAs, PLLC Period Covered by the Audit: September 30, 2024 CAP Prepared by; Mathew Ethier, Executive Director (2) Finding 2024-002 (d) Comments on the finding and recommendation - The...

Name of Auditee: Cohoes Housing Authority Name of Audit Firm: EFPR Group, CPAs, PLLC Period Covered by the Audit: September 30, 2024 CAP Prepared by; Mathew Ethier, Executive Director (2) Finding 2024-002 (d) Comments on the finding and recommendation - The Authority agrees with the finding. The Authority also agrees with the recommendation, please see below for action. (e) Action taken - The Authority will strengthen internal controls and training of staff to ensure reporting deadlines. The Authority has also engaged a new fee accountant to assist with the year-end closing procedures. (f) Planned Implementation Date - The Authority expects to complete the corrective action by September 30, 2025, at the time of its next required unaudited submission.

View Audit 358311

Finding 564117 (2024-004)

Significant Deficiency 2024

Young Men's Christian Association of the Greater Houston Area

TX

Allowable Costs / Cost Principles HUD Housing Programs Reporting

Finding #2024-004 – Significant Deficiency and Other Noncompliance. Applicable federal program: U. S. Department of Health and Human Services, 93.576, Refugee and Entrant Assistance Discretionary Grants, Passed through U. S. Committee for Refugees and Immigrants: 09/30/24 – 09/29/25, GPK5RHKAEUGS, ...

Finding #2024-004 – Significant Deficiency and Other Noncompliance. Applicable federal program: U. S. Department of Health and Human Services, 93.576, Refugee and Entrant Assistance Discretionary Grants, Passed through U. S. Committee for Refugees and Immigrants: 09/30/24 – 09/29/25, GPK5RHKAEUGS, 09/30/23 – 09/29/24, 90RP0119, 09/30/22 – 09/29/23, 90RP0119-01-01, 09/30/24 – 09/29/25, 90RP0119, 09/30/22 – 09/29/23, 90RP0119, 09/30/23 – 09/29/24, 90RP0119-02-04. Condition and context: During our testing of the accuracy and timeliness of financial and programmatic programming for the major programs selected for testing, we identified the following exception: Documentation of the submission and review of the one semi-annual narrative and one semi-annual data reports tested for the Refugee and Entrant Assistance Discretionary Grants was not evidenced on the copy of the reported provided. Recommendation: Provide additional training and emphasize adherence to established policies and procedures to ensure maintenance of documentation of submission of reports and timely submission of reports. Management’s response: Management agrees with the finding. While these reports were submitted as required, proof of submission and review were not available. We will reinforce the importance of documentation and retention thereof with staff assigned to all grant-funded programs. We will also improve our documentation tracking system to ensure this information is available in our internal records and will incorporate into our internal control system procedures to address staff turnover and personnel changes. Responsible officer: Jennifer Garcia, Chief Financial Officer. Estimated completion date: June 2025.

View Audit 358211

Finding 564106 (2024-001)

Significant Deficiency 2024

Mental Health America of Dutchess County, Inc.

NY

Eligibility Significant Deficiency Matching / Level of Effort / Earmarking

The person responsible for the correcting the finding and timeline are as follows: The Director of Veterans Programs, Alyssa Carion, Due Date: May 1, 2025. Regarding finding #2024-001, all items identified have been addressed and the due date has been met. All missing program agreements noted in the...

The person responsible for the correcting the finding and timeline are as follows: The Director of Veterans Programs, Alyssa Carion, Due Date: May 1, 2025. Regarding finding #2024-001, all items identified have been addressed and the due date has been met. All missing program agreements noted in the SSG Fox audit have been loaded to participant files. Policy and procedures have been updated to state that the patient health questionnaire must be completed by a staff member and a policy for releasing program participants has been added. Tracking participants outside of the online portal is in place and includes enrollment date, disenrollment date for all clients form program inception. In addition, a monthly control is in place to review the spreadsheet o ensure all documents are included.

View Audit 358209

Finding 563969 (2024-001)

Significant Deficiency 2024

Fouke School District

AR

Questioned Costs Allowable Costs / Cost Principles Internal Control / Segregation of Duties

We concur with the recommendation and will contact DESE to ensure that the correct process is used to move the unallowable costs totaling $843 to the Operating Fund. To correct the payroll issue of charging unallowable costs, the payroll clerk will run reports quarterly to verify all payroll charge...

We concur with the recommendation and will contact DESE to ensure that the correct process is used to move the unallowable costs totaling $843 to the Operating Fund. To correct the payroll issue of charging unallowable costs, the payroll clerk will run reports quarterly to verify all payroll charges to any federal fund are appropriate.

View Audit 358144 Questioned Costs: $1

Finding 563968 (2024-001)

Material Weakness 2024

Commonbond Communities

MN

Internal Control / Segregation of Duties Material Weakness Reporting

Corrective action – Management has designed and implemented an improved month end procedure and related review process, it will continue documenting its training program and developing team members, and more fully utilizing the accounting modules in its Enterprise Resource Planning system to add mor...

Corrective action – Management has designed and implemented an improved month end procedure and related review process, it will continue documenting its training program and developing team members, and more fully utilizing the accounting modules in its Enterprise Resource Planning system to add more system-based controls. Name of contact person – Jennifer Anderson, Interim Chief Financial Officer Proposed completion date – Management has begun the corrective action and is expected to have additional processes in place and training done by December 31, 2025.

View Audit 358143

Finding 563967 (2024-001)

None 2024

603 Legal Aid

NH

Subrecipient Monitoring Internal Control / Segregation of Duties

Planned Corrective Action: The 603LA Accounting Manual has been updated and completed, taking into consideration the requirements of the 2023 LSC Financial Guide, including the completion of the Self-Assessment Questionnaire (Appendix 9) of the Guide. The Board of Directors reviewed, approved, and ...

Planned Corrective Action: The 603LA Accounting Manual has been updated and completed, taking into consideration the requirements of the 2023 LSC Financial Guide, including the completion of the Self-Assessment Questionnaire (Appendix 9) of the Guide. The Board of Directors reviewed, approved, and codified the Accounting Manual at the May 28, 2025 Board of Directors meeting. Responsible Person: Controller. Date of Completion: Compliant as of May 2025.

View Audit 358140

Finding 563939 (2024-003)

None 2024

845 Housing Corporation

RI

Internal Control / Segregation of Duties

The Corporation is applying for their auditee unique entity identifier. When it is received, the Corporation will file the Data Collection Form for the year ended December 31, 2024 with the Federal Audit Clearinghouse.

View Audit 358112

Finding 563936 (2024-001)

Material Weakness 2024

Trees Forever, Inc.

IA

Cash Management Internal Control / Segregation of Duties

Finding 2024-001 – Review of Expense Details for Compliance Condition: From the selections made for internal controls testing, the auditor noted no review/approval for compliance with the terms of the grant agreement was conducted prior to submission of the costs to the grantor. Recommendation: W...

Finding 2024-001 – Review of Expense Details for Compliance Condition: From the selections made for internal controls testing, the auditor noted no review/approval for compliance with the terms of the grant agreement was conducted prior to submission of the costs to the grantor. Recommendation: We recommend management implement processes and controls to perform a review of expenses being submitted for reimbursement to document approval of costs in compliance with the terms of the grant. View of responsible officials and planned corrective actions: Management agrees with the finding and will conduct an internal review of federal expenditures for compliance with the requirements applicable to each federal grant received prior to submission for reimbursement. Anticipated Completion Date: May 31, 2025

View Audit 358111

Finding 563872 (2024-002)

Significant Deficiency 2024

Federation of American Scientists

DC

Material Weakness Reporting Internal Control / Segregation of Duties

Identifying Number: 2024-001 Finding: Current management noted that the audited financial statements as of and for the year ended June 30, 2023, were materially misstated for certain contribution transactions recorded in error in the amount of $7,997,654. Those errors were corrected and recorded in...

Identifying Number: 2024-001 Finding: Current management noted that the audited financial statements as of and for the year ended June 30, 2023, were materially misstated for certain contribution transactions recorded in error in the amount of $7,997,654. Those errors were corrected and recorded in fiscal year 2024, which is not in accordance with U.S. GAAP. Corrective Actions Taken or Planned: The entire finance team was new in FY24. During an internal review, management identified that certain revenue transactions had been recorded incorrectly in the prior fiscal year (FY23), resulting in a materially misstated ending balance for FY23 and, consequently, an inaccurate beginning balance for FY24. Because FY23 had already been closed and audited, the necessary corrections were recorded in FY24. Management proactively informed the new auditors of these adjustments. Due to the materiality of the correction, the auditors determined that the FY23 ending balance needed to be reinstated. As a result, they expanded their scope to include a re-audit of FY23 to ensure the accuracy of the reinstated balances, which extended the overall audit timeline. It’s important to emphasize that this finding was self-identified and communicated by management, and the correction was properly recorded in FY24. No further corrective action is required for FY25. Throughout FY24, the finance team has worked diligently to strengthen internal policies, processes, controls, and systems, which contributed to a clean audit result for FY24. This finding relates solely to FY23 and does not reflect the current state of financial management. Name of Responsible Person: Manizha Nabieva, CFO Projected Date of Completion: 05/28/2025 Identifying Number: 2024-002 Finding: Federation of American Scientists’ fiscal year 2024 data collection form was not submitted within nine months after the end of the audit period. Corrective Actions Taken or Planned: The delay in filing the data collection form was directly related to the delay in finalizing the audit, as noted in the first finding above. Since this was our first year working with RSM, the audit scope expanded significantly due to the reinstatement of beginning balances. The auditors required additional time to ensure the accuracy of the financial statements before issuing their final report. We will finalize and submit the data collection form as soon as the audit is complete, but no later than May 28, 2025. To prevent similar delays in the future, we have already initiated discussions with our auditors regarding the FY25 audit and plan to begin the audit process in October 2025. Name of Responsible Person: Manizha Nabieva, CFO Projected Date of Completion: 5/28/2025

View Audit 358091

Finding 563866 (2024-007)

Material Weakness 2024

Hitchcock Independent School District

TX

Allowable Costs / Cost Principles Internal Control / Segregation of Duties § 200.430

Finding Reference Number: 2024-007 Description of Finding: Lack of Semi-Annual Certifications for Special Education Personnel (Controls over Compliance - Special Education Cluster) Corrective Action Planned:The district has implemented new procedures for fiscal year 2025 to ensure that semiannual ce...

Finding Reference Number: 2024-007 Description of Finding: Lack of Semi-Annual Certifications for Special Education Personnel (Controls over Compliance - Special Education Cluster) Corrective Action Planned:The district has implemented new procedures for fiscal year 2025 to ensure that semiannual certifications are prepared, signed, and retained for all employees working solely on federal programs, including the Special Education Cluster (IDEA). A tracking system has been established, and staff training has been completed to reinforce documentation requirements. The district will continue to monitor compliance to ensure procedures are consistently applied. Responsible Contact Person: Patrick M. Faour, Interim Superintendent Anticipated Completion Date: August 30, 2025

View Audit 358090

Finding 563861 (2024-006)

Material Weakness 2024

Hitchcock Independent School District

TX

Allowable Costs / Cost Principles Internal Control / Segregation of Duties

Finding Reference Number: 2024-006 Description of Finding: Unauthorized Use of Child Nutrition Funds (Controls over Compliance - Child Nutrition Cluster) Corrective Action Planned: The district is conducting a full review of interfund activity involving Child Nutrition funds to ensure compliance wit...

Finding Reference Number: 2024-006 Description of Finding: Unauthorized Use of Child Nutrition Funds (Controls over Compliance - Child Nutrition Cluster) Corrective Action Planned: The district is conducting a full review of interfund activity involving Child Nutrition funds to ensure compliance with the grant requirements. Staff will be trained on programspecific requirements, including reviewing all expenditures for allowability. The District will evaluate the impact of budget amendments that may be necessary if significant reimbursements to the Child Nutrition fund must be made from the general fund. Responsible Contact Person: Patrick M. Faour, Interim Superintendent Anticipated Completion Date: August 31, 2025

View Audit 358090

Finding 563854 (2024-002)

Significant Deficiency 2024

School District 12 Education Foundation Dba Five Star Education Foundation

CO

Reporting Significant Deficiency Internal Control / Segregation of Duties

Finding 2024-002: Internal Control Over Financial Reporting– Significant Deficiency Audit Finding: Management is responsible for the design and implementation of internal controls over year-end financial reporting, including controls over procedures used to enter transaction in the general ledge...

Finding 2024-002: Internal Control Over Financial Reporting– Significant Deficiency Audit Finding: Management is responsible for the design and implementation of internal controls over year-end financial reporting, including controls over procedures used to enter transaction in the general ledger and record recurring and nonrecurring adjustments to the financial statements on an accrual basis. During the course of the audit, journal entries were required to reconcile accounts receivable, accrued expenses, and accrued PTO from a cash basis to an accrual basis, which indicate a lack of operating effectiveness of internal controls over the financial reporting process. Audit Recommendation: We recommend School District 12 Education Foundation (dba Five Star Education Foundation) review policies and procedures related to the year-end financial reporting process and controls should be implemented to ensure accrual basis financial reporting can be achieved. Management’s Response and Corrective Action Plan: School District 12 Education Foundation (dba Five Star Education Foundation) agrees with the finding and recommendation. These transactions were proactively shared with the auditor at the commencement of the audit and discussed. Actions were already taken to fix these processes. In 2023 an outside professional was hired to mitigate these circumstances and ensure adherence to GAAP accounting. Management is hiring new accountants to alleviate future issues in this space. Management is in the process of implementing enhanced processes and procedures to achieve the proper recording of transactions on an accrual basis. A year-end checklist will be used to ensure that all accruals are booked in accounts receivable and payables. Contact and Completion Date: Shannon Hancock, 720-972-4342, shannon.hancock@5starfoundation.org, is the primary contact, and the Executive Director at School District 12 Education Foundation (dba Five Star Education Foundation). The corrective action is expected to be resolved before the end of the next fiscal year-end of December 31, 2025.

View Audit 358066

Finding 563847 (2024-001)

Material Weakness 2024

Seminole County Board of Edcuation

GA

Questioned Costs Allowable Costs / Cost Principles Matching / Level of Effort / Earmarking § 200.303 § 200.403

FA 2024-001 Strengthen Controls over Expenditures Compliance Requirement: Activities Allowed or Unallowed Allowable Costs/Cost Principle Internal Control Impact: Material Weakness Compliance Impact: Material Noncompliance Federal Awarding Agency: U.S. Department of Education Pass-Through Entity: ...

FA 2024-001 Strengthen Controls over Expenditures Compliance Requirement: Activities Allowed or Unallowed Allowable Costs/Cost Principle Internal Control Impact: Material Weakness Compliance Impact: Material Noncompliance Federal Awarding Agency: U.S. Department of Education Pass-Through Entity: Georgia Department of Education Assistance Listing Number and Title: COVID-19 - 84.425D - Elementary and Secondary School Emergency Relief Fund COVID-19 - 84.425U - American Rescue Plan Elementary and Secondary School Emergency Relief Fund Federal Award Number: S425D210012 (Year: 2021), S425U210012 (Year: 2021) Questioned Costs: $72,595 Description: A review of expenditures charged to the Elementary and Secondary School Emergency Relief Fund programs revealed that the School District's internal control procedures were not operating appropriately to ensure that expenditures were properly recorded. Corrective Action Plans: Our office was unaware our financial program could automatically generate employee's supplemental checks in addition to standard monthly checks. Now that we are aware, Ivey McLendon and I will monitor our financial program's automatically generated claims closely to adapt our manual accrual entries. Estimated Completion Date: June 30, 2025 Contact Person: Sherry Gray, Financial Director Telephone: (229) 524-2433 Email: sgray@seminole.k12.ga.us

View Audit 358065 Questioned Costs: $1

Finding 563809 (2024-003)

Significant Deficiency 2024

The Housing & Redevelopment Commission of the City of Watertown, Sd

SD

HUD Housing Programs Eligibility Reporting

Federal Agency Name: US Department of Housing and Urban Development Program Name: Section 8 Housing Choice Vouchers Federal Financial Assistance Listing Number: 14.871 Finding Summary: The commission is required to calculate the tenant's rent payment using documentation from third party verification...

Federal Agency Name: US Department of Housing and Urban Development Program Name: Section 8 Housing Choice Vouchers Federal Financial Assistance Listing Number: 14.871 Finding Summary: The commission is required to calculate the tenant's rent payment using documentation from third party verification used to calculate payment of assistance; in one of the 40 tenant files tested, the tenant's payment amounts were calculated incorrectly. Responsible Individuals: Mary Goldade, Executive Director Corrective Action Plan: Continued training and additional review of calculations by an individual not performing the original calculation will be done to ensure accurate calculations going forward. Anticipated Completion Date: June 30, 2025

View Audit 358024

Finding 563807 (2024-001)

Significant Deficiency 2024

Healthwest

MI

Subrecipient Monitoring Internal Control / Segregation of Duties Cash Management § 200.305

Finding 2024-001: Cash Management Federal Grant – ALN 93.788 and ALN 93.959 Condition – During testing, it was noted that cash was requested prior to disbursement of funds by a month or more. Corrective Action –HealthWest finance management will conduct a mandatory staff training session for all r...

Finding 2024-001: Cash Management Federal Grant – ALN 93.788 and ALN 93.959 Condition – During testing, it was noted that cash was requested prior to disbursement of funds by a month or more. Corrective Action –HealthWest finance management will conduct a mandatory staff training session for all relevant staff on cash management requirements, including timing of cash requests, documentation of expenditures, and consequences of non-compliance. Refresher grant compliance and cash management policy review and training will be incorporated into annual training for all grant management personnel. HealthWest will update grant pre-draw process to require a documented review and approval of all cash draw requests by finance leadership or designee ensuring drawdowns are supported by general ledger expenditure activity reports. Contract Person – Brandy Carlson, Chief Financial Officer Anticipated Completion Date – June 30, 2025

View Audit 358023

Finding 563801 (2024-004)

Significant Deficiency 2024

Wallingford Housing Authority

CT

HUD Housing Programs Subrecipient Monitoring Reporting

Finding Reference Number: 2024-004 Reporting Description of Finding: During the fiscal year ended June 30, 2024, the Authority's internal controls over the submission of VMS to HUD did not include a review or reconciliation of the information submitted to supporting documentation. As a result, hous...

Finding Reference Number: 2024-004 Reporting Description of Finding: During the fiscal year ended June 30, 2024, the Authority's internal controls over the submission of VMS to HUD did not include a review or reconciliation of the information submitted to supporting documentation. As a result, housing assistance payments for Mainstream Port-out vouchers were not reported in VMS. Statement of Concurrence or Nonconcurrence: The Wallingford Housing Authority agrees and accepts the above reference findings. Corrective Action Plan: Maintaining a properly staffed and trained staff will ensure that each montky VMS report will be reconciled prior to being submitted by the third-party fee accountant. A schedule or reconciliations will be created and implemented.

View Audit 358012

Finding 563792 (2024-002)

Significant Deficiency 2024

Herzing University, Ltd.

WI

Student Financial Aid Subrecipient Monitoring Eligibility § 200.303

Audit Firm: RSM US LLP 30 S Wacker Drive, Suite 3300 Chicago, IL 60606 Audit Period: 1/1/2024 – 12/31/2024 Comments on Findings and Recommendations: Finding 2024-002 – Eligibility - Pell Finding: Herzing University did not properly award Pell funding to an eligible student in the Spring 2024 semeste...

Audit Firm: RSM US LLP 30 S Wacker Drive, Suite 3300 Chicago, IL 60606 Audit Period: 1/1/2024 – 12/31/2024 Comments on Findings and Recommendations: Finding 2024-002 – Eligibility - Pell Finding: Herzing University did not properly award Pell funding to an eligible student in the Spring 2024 semester. Condition: A student was eligible to receive Pell funding but did not receive Pell funds due to an employee error. For one out of 40 students tested for eligibility, we noted 1 student (2.5%) who was eligible to receive Pell funding but did not receive Pell funds due to an employee error. Action Taken: The identified student withdrew from the University on May 8, 2023. The student’s 2023-24 Pell award was cancelled during the required R2T4 process that was completed on May 23, 2023. The 2023-24 Pell award for the Spring 2024 semester was not manually reinstated upon the student’s return to an Active status on June 28, 2023. The employee who was responsible for updating the student’s financial aid package upon the student’s return to an Active status erroneously neglected to reinstate the 2023-24 Pell award for the Spring 2024 semester. This finding is attributed to human error. In April 2025, Herzing University created an internal compliance checkpoint for Pell awarding. This checkpoint will identify any students with a Pell eligible SAI for the Federal Award year that do not have Pell packaged for the semester. This checkpoint was completed for the Spring 2025 semester on April 7, 2025, and will be completed each semester going forward. Any affected students identified during the completion of this semester-based checkpoint will have their financial aid package revised to include Pell funding for the applicable semester, prior to the end of the semester. Herzing University’s Policy Manual was updated in April 2025 to reflect the addition of the Pell Awarding compliance checkpoint. For the identified student, Herzing University has provided a tuition waiver for the amount of the Pell funds that the student was eligible for and should have received for the Spring 2024 semester. The required corrective action for Finding 2024-002 listed in the SFA audit for the period 1/1/2024 – 12/31/2024 was completed on 5/7/2025. The person responsible for completion of the corrective action was Kevin McShane, Vice President of Financial Aid & Compliance. ____________________________________ _______________________ Kevin McShane Date Vice President of Financial Aid & Compliance Herzing University 275 W. Wisconsin Ave., Ste. 210, Milwaukee, WI 53203 Email Address: kmcshane@herzing.edu

View Audit 358003

Finding 563791 (2024-001)

Significant Deficiency 2024

Herzing University, Ltd.

WI

Student Financial Aid Subrecipient Monitoring Eligibility § 200.303

Audit Firm: RSM US LLP 30 S Wacker Drive, Suite 3300 Chicago, IL 60606 Audit Period: 1/1/2024 – 12/31/2024 Comments on Findings and Recommendations: Finding 2024-001 – Eligibility - SEOG Finding: Herzing University did not properly award SEOG funding to an eligible student in the Fall 2024 semester....

Audit Firm: RSM US LLP 30 S Wacker Drive, Suite 3300 Chicago, IL 60606 Audit Period: 1/1/2024 – 12/31/2024 Comments on Findings and Recommendations: Finding 2024-001 – Eligibility - SEOG Finding: Herzing University did not properly award SEOG funding to an eligible student in the Fall 2024 semester. Condition: A student was eligible to receive SEOG funding but did not receive SEOG funds due to an employee error. For one out of 40 students tested for eligibility, we noted 1 student (2.5%) who was eligible to receive SEOG funding but did not receive SEOG funds due to an employee error. Action Taken: On May 1, 2024, a Financial Aid Advisor manually cancelled the identified student’s 2024-25 SEOG award in Regent (Herzing University’s Financial Aid Management Software), with a notation that the student had an ineligible Student Aid Index (SAI). The student had an SAI of -117 on their 2024-25 ISIR, and in accordance with Herzing University’s FSEOG policy were eligible for 2024-25 SEOG in the Fall 2024 semester. The award was incorrectly manually canceled by the advisor because of human error. In April 2025, Herzing University created an internal compliance checkpoint for FSEOG awarding. This checkpoint will serve as a safety net to identify any students who have a Pell award for the Federal Award year, have an SAI that is FSEOG eligible according to Herzing University’s FSEOG policy, and do not correctly have FSEOG packaged for the semester. Any affected students identified during the completion of this semester-based checkpoint will have their financial aid package reviewed and if necessary revised to include FSEOG funding for the applicable semester, prior to the end of the semester. This checkpoint was completed for the Spring 2025 semester on April 4, 2025, and will be completed each semester going forward. Herzing University’s Policy Manual was updated in April 2025 to reflect the addition of the FSEOG Awarding compliance checkpoint. For the identified student, Herzing University has provided a tuition waiver for the amount of the FSEOG funds that the student was eligible for and should have received for the Fall 2024 semester. The required corrective action for Finding 2024-001 listed in the SFA audit for the period 1/1/2024 – 12/31/2024 was completed on 5/7/2025. The person responsible for completion of the corrective action was Kevin McShane, Vice President of Financial Aid & Compliance. ____________________________________ _______________________ Kevin McShane Date Vice President of Financial Aid & Compliance Herzing University 275 W. Wisconsin Ave., Ste. 210, Milwaukee, WI 53203 Email Address: kmcshane@herzing.edu

View Audit 358003

Finding 563790 (2024-003)

Significant Deficiency 2024

Leelanau County, Michigan

MI

Procurement, Suspension & Debarment Internal Control / Segregation of Duties

2024-003 – Procurement, Suspension and Debarment Auditor Description of Condition and Effect. The County did not verify that all of their vendors over $25,000 were not suspended or debarred from doing business with the County. As a result of this condition, the County was exposed to the risk that di...

2024-003 – Procurement, Suspension and Debarment Auditor Description of Condition and Effect. The County did not verify that all of their vendors over $25,000 were not suspended or debarred from doing business with the County. As a result of this condition, the County was exposed to the risk that disbursements of federal awards would be made to vendors suspended or debarred by the federal government. Auditor Recommendation. We recommend that the County verify that all of their vendors over $25,000 spent with federal funds were not suspended or debarred. Corrective Action. The County will be creating a Certification of Suspension/Debarment Status form for vendor certification. Responsible Person. County Administrator/Finance Department. Anticipated Completion Date. December 31, 2025.

View Audit 358000

Finding 563693 (2024-002)

Material Weakness 2024

Toole County

MT

Subrecipient Monitoring Allowable Costs / Cost Principles Internal Control / Segregation of Duties

Finding 2024-002: Transit Grants. Federal Award Numbers: 113057, 113061, 113052, 113093 Response: Toole County on behalf of Northern Transit Interlocal will implement and set up different expenditure and revenue codes to identify the grants and the expenditure of the grant funds.

View Audit 357988

Finding 563660 (2024-001)

Significant Deficiency 2024

YMCA of Greater San Antonio

TX

Reporting Internal Control / Segregation of Duties § 200.512

Management’s Comments and Corrective Action Plan: Management has reviewed finding 2024-001 related to timely Single Audit report submission to the Federal Audit Clearinghouse and has developed the following plan to address this finding and ensure compliance going forward. 1. Root Cause Analysis...

Management’s Comments and Corrective Action Plan: Management has reviewed finding 2024-001 related to timely Single Audit report submission to the Federal Audit Clearinghouse and has developed the following plan to address this finding and ensure compliance going forward. 1. Root Cause Analysis – Previous to 2023, the last time the Y was required to have a Single Audit was the year ended December 31, 2012. Because this was a new process to the Y, we were unaware that we needed to submit the Single Audit to the Federal Audit Clearinghouse. In past years, the independent audit firm initiated the e-filing process on our behalf. 2. Action Steps – The Y will develop a year-end Federal Awards checklist to include all necessary preparation steps including but not limited to preparation of the Schedule of Expenditures of Federal Awards (SEFA); corresponding audit documentation; and procedures for filing the completed Single Audit to the Federal Audit Clearinghouse including confirmation that independent auditors have reviewed and certified the submission to the Clearinghouse. 3. Responsible Parties – The Controller will complete the checklist and perform the filing to the Federal Audit Clearinghouse and the CFO will review and approve. 4. Timeline – Submission of the Single Audit to the Federal Audit Clearinghouse as well as completion, review, and approval of the checklist will be done within 30 days of receipt of the final Single Audit report. 5. Monitoring & Evaluation – The checklist and approval process will be monitored on an annual basis to ensure ongoing compliance and effectiveness of this corrective action plan.

View Audit 357967

Finding 563644 (2024-001)

Significant Deficiency 2024

The Community Action Agency of Western Connecticut, Inc.

CT

Significant Deficiency Internal Control / Segregation of Duties § 200.414

Internal Control Over Compliance Recommendation: We recommend that the organization implement additional review process over the rate determination to ensure it is being calculated correctly. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action t...

Internal Control Over Compliance Recommendation: We recommend that the organization implement additional review process over the rate determination to ensure it is being calculated correctly. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: The Daycare Director will review all parent fee calculations with signed approval, beginning upon enrollment of the student and, annually, for as long as they remain enrolled at AELC. Name(s) of the contact person(s) responsible for corrective action: Michelle James Planned completion date for corrective action plan: May 23, 2025 f the State has questions regarding this plan, please call Michelle James at (203) 744-4700.

View Audit 357957

Finding 563604 (2024-002)

Material Weakness 2024

Olmsted County Housing and Redevelopment Authority

MN

HUD Housing Programs Internal Control / Segregation of Duties

Audit Finding Number: 2024-002 Reasonable Rent Agency: Department of Housing and Urban Development Responsible Person, Title: Dave Dunn, Housing Director Completion date: 5/15/2025 Agency Response: Concur Corrective Action Plan: An evaluation has been completed to determine the gaps in staff trai...

Audit Finding Number: 2024-002 Reasonable Rent Agency: Department of Housing and Urban Development Responsible Person, Title: Dave Dunn, Housing Director Completion date: 5/15/2025 Agency Response: Concur Corrective Action Plan: An evaluation has been completed to determine the gaps in staff training on this topic. For the staff struggling with this area, step-by-step instruction has been provided and on-going weekly mentoring with the Program Manager initiated. Significant improvement in this category is anticipated.

View Audit 357879

Finding 563603 (2024-001)

Material Weakness 2024

Olmsted County Housing and Redevelopment Authority

MN

HUD Housing Programs Internal Control / Segregation of Duties

Audit Finding Number: 2024-001 Housing Quality Standards Inspections & Enforcement Agency: Department of Housing and Urban Development Responsible Person, Title: Dave Dunn, Housing Director Completion date: 5/15/2025 Agency Response: Concur Corrective Action Plan: Monthly reports for failed inspec...

Audit Finding Number: 2024-001 Housing Quality Standards Inspections & Enforcement Agency: Department of Housing and Urban Development Responsible Person, Title: Dave Dunn, Housing Director Completion date: 5/15/2025 Agency Response: Concur Corrective Action Plan: Monthly reports for failed inspections were set up in May of 2024 in response to the previous year’s finding. While these reports were helpful, they did not fully resolve the issue. Two additional changes have since been implemented: 1) Staffing changes including the removal of one Specialist that had a high frequency of missed follow-ups and the addition of a “Lead” Housing Specialist; 2) The Lead Housing Specialist is now receiving all-staff monthly reports on failed HQS inspections to ensure that follow-up is not only completed by completed timely. We expect a drastic improvement in this category.

View Audit 357879

Finding 563602 (2024-003)

Significant Deficiency 2024

Olmsted County Housing and Redevelopment Authority

MN

HUD Housing Programs Matching / Level of Effort / Earmarking Internal Control / Segregation of Duties

Audit Finding Number: 2024-003 Cash Management Agency: Department of Housing and Urban Development Responsible Person, Title: Karla Strain, Assistant Controller Completion date: 5/15/2025 Agency Response: Concur Corrective Action Plan: In response to these findings, the Authority has reviewed and ...

Audit Finding Number: 2024-003 Cash Management Agency: Department of Housing and Urban Development Responsible Person, Title: Karla Strain, Assistant Controller Completion date: 5/15/2025 Agency Response: Concur Corrective Action Plan: In response to these findings, the Authority has reviewed and revised its Capital Fund cash management procedures to ensure full compliance with the Capital Fund Handbook. The updated procedures have been reviewed in collaboration with both the Housing Project Manager and the Housing Program Manager. Invoices will be organized to fulfil the monthly obligation and paid within three days of the fund draw. To prevent recurrence and ensure ongoing compliance, the Authority will hold monthly meetings to review project timelines and cash flow needs. Communication frequency will increase during complex, multi-phase projects to support effective oversight and coordination. Furthermore, updated policy and payment procedures will be clearly communicated to all current and future vendors to ensure alignment with federal regulations. These corrective actions reflect the Authority’s commitment to improved financial oversight and adherence to all applicable funding regulations.

View Audit 357879

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