Corrective Action Plans

Finding 569899 (2024-007)

Material Weakness 2024

NC

Internal Control / Segregation of Duties

Name of Contact Person: Veronica Williams, Interim Executive DirectorCorrective Action: Currently, the Authority is tracking all utility consumption for future OpFund application.Proposed Completion Date: Immediately

View Audit 361147

Finding 569896 (2024-004)

Material Weakness 2024

Kings Mountain Housing Authority

NC

Internal Control / Segregation of Duties

Name of Contact Person: Veronica Williams, Interim Executive DirectorCorrective Action: Management will insure that all insurance policies are up to date and the fidelity bonding will be increased to the appropriate levels.Proposed Completion Date: Immediately

View Audit 361147

Finding 569895 (2024-003)

Material Weakness 2024

Kings Mountain Housing Authority

NC

HUD Housing Programs Internal Control / Segregation of Duties

Name of Contact Person: Veronica Williams, Interim Executive DirectorCorrective Action: A budget for FYE 9/30/25 was approved by the Board in their October 2024 meeting.Proposed Completion Date: Immediately

View Audit 361147

Finding 569894 (2024-002)

Material Weakness 2024

Kings Mountain Housing Authority

NC

Internal Control / Segregation of Duties

Name of Contact Person:Veronica Williams, Interim Executive DirectorCorrective Action: KMHA’s Board has approved new written policies and procedures and are in place now.Appropriate staff have begun taking proper safeguards for deposits and bank reconciliations to ensure proper accountability. Bank ...

Name of Contact Person:Veronica Williams, Interim Executive DirectorCorrective Action: KMHA’s Board has approved new written policies and procedures and are in place now.Appropriate staff have begun taking proper safeguards for deposits and bank reconciliations to ensure proper accountability. Bank statements will be provided directly to the Fee Accountant monthly. The reconciliation of all bank accounts in a timely manner is a key component of good controls over cash. The reconciliation of the bank balance with the book balance (i.e., general ledger) is necessary to ensure that:All receipts and disbursements are recorded, which is an essential process for ensuring complete and accurate monthly financial statements;Checks are clearing the bank in a reasonable timeframe;Items reconciled are appropriate and are being recorded;Fraudulent claims can be discovered and investigated; andReconciled cash balance agrees to the general ledger cash balance.Each bank account will be reconciled by the fee accountant returned.This documentation will be made available to the Authority’s auditorProposed Completion Date: Immediately

View Audit 361147

Finding 569872 (2024-002)

Significant Deficiency 2024

Marion County

SC

Reporting Internal Control / Segregation of Duties

Council and Administration will continue to use supervisory reviews such as monitoring financial statements and budget reports, and segregate duties where cost beneficial to do so.

View Audit 361144

Finding 569855 (2024-001)

Material Weakness 2024

Impact Community Action Partnership, Inc.

IA

Cash Management Matching / Level of Effort / Earmarking Internal Control / Segregation of Duties

Management’s Response: Management agrees with the finding. Contact Person Responsible for Corrective Action: Anne Bacon, CEO Corrective Action Plan: The auditor finding concludes that the cause of the finding is: “Rapid growth of new funding without a corresponding increase in fiscal personnel, comb...

Management’s Response: Management agrees with the finding. Contact Person Responsible for Corrective Action: Anne Bacon, CEO Corrective Action Plan: The auditor finding concludes that the cause of the finding is: “Rapid growth of new funding without a corresponding increase in fiscal personnel, combined with the replacement of the CFO resulted in significant delays in reconciliations and preparing for the September 30, 2024 audit..” In order to address these causes, IMPACT Community Action Partnership will follow a rectifying course of action. 1. Establish a Reconciliation Schedule: A monthly reconciliation calendar will be implemented, assigning specific due dates for reconciling each of the following accounts: o Cash o Grant revenue and receivables o Prepaid expenses o Accounts payable o Accrued liabilities o Receivable advances Anticipated completion date: July 15, 2025 2. Assign Responsibilities: The Controller will be responsible for completing and reviewing all reconciliations monthly. The Chief Operating Officer will provide a second-level review and sign-off and will provide weekly verbal updates to the Chief Executive Officer beginning in August, 2025 3. Document Procedures: Standard Operating Procedures (SOPs) will be created or updated for each account reconciliation process, including templates and documentation requirements and entered into the Whale software. Anticipated completion date: August 30, 2025 4. Training: All finance staff involved in reconciliations will receive training on reconciliation standards, documentation. Anticipated completion date: September 30, 2025 5. Monitoring and Reporting: A reconciliation checklist and status report will be submitted to the board of directors each month for accountability beginning in August, 2025

View Audit 361122

Finding 569850 (2024-003)

Significant Deficiency 2024

Catholic Charities of the Diocese of Agana Dba Catholic Social Service

GU

Internal Control / Segregation of Duties Procurement, Suspension & Debarment

- CSS will revisit the existing forms and procedure to streamline approvals and minimize redundant approvals by the same individual/ authority while maintaining sound internal control. Orientation with program staff will be conducted.

View Audit 361119

Finding 569849 (2024-002)

Significant Deficiency 2024

Catholic Charities of the Diocese of Agana Dba Catholic Social Service

GU

Subrecipient Monitoring Internal Control / Segregation of Duties

- Review existing CSS personnel procedure 4.1 to streamline and improve efficiency of payroll process. '- Develop written procedure on payroll documentation on timesheets, leave request forms, and overtime work as incurred including review requirements and timelines. '- Review and discuss proposed r...

- Review existing CSS personnel procedure 4.1 to streamline and improve efficiency of payroll process. '- Develop written procedure on payroll documentation on timesheets, leave request forms, and overtime work as incurred including review requirements and timelines. '- Review and discuss proposed revisions during management meeting to address issues and concerns. '- Finalize policy/procedure and distribute to management staff. Coordinate orientation of policy to program staff directly involved with payroll.

View Audit 361119

Finding 569828 (2024-003)

Material Weakness 2024

Jacksonville Housing Authority

FL

HUD Housing Programs Eligibility Internal Control / Segregation of Duties

The Jacksonville Housing Authority’s (JHA) Housing Choice Voucher (HCV) program is the largest rental assistance program in the City of Jacksonville. Through the Annual Contributions Contract (ACC), the program receives over $90M from the United States Department of Housing and Urban Development (HU...

The Jacksonville Housing Authority’s (JHA) Housing Choice Voucher (HCV) program is the largest rental assistance program in the City of Jacksonville. Through the Annual Contributions Contract (ACC), the program receives over $90M from the United States Department of Housing and Urban Development (HUD) and assist over 7,700 families each year. The ACC requires JHA to comply with federal regulations and HUD guidelines, as amended from time to time. Audit Findings Berman Hopkins Wright & LaHam, CPAs and Associates, LLP conducted the recent FY2024 JHA Audit (Period: October 1, 2023 – September 30, 2024) and identified continued material weakness findings within the JHA Housing Choice Voucher (HCV) program including but not limited to: Material Weaknesses in Internal Controls, Material Weaknesses in Non-Compliance and Material Weaknesses in the Housing Quality Standards (HQS) Inspection process. Berman Hopkins Wright & LaHam, CPAs and Associates, LLP previously conducted JHA’s FY2023 audit (Period: October 1, 2022 – September 30, 2023) and FY2022 audit (Period: October 1, 2021 – September 30, 2022) which disclosed consecutive historical material weaknesses in JHAs internal controls and noncompliance of the Housing Choice Voucher (HCV) program. Under new CEO leadership at JHA, a request to the JHA Board of Commissioners is in place for a vote on Friday, June 27, 2025, to authorize the following action of Nan McKay & Associates to Administer, Manage and Operate the JHA Housing Choice Voucher Program for an effective date of Monday July 7, 2025. Pending Resolution: AUTHORIZE THE AWARD OF THE MIAMI-DADE HOUSING & COMMUNITY DEVELOPMENT PIGGYBACK CONTRACT IN THE NOT-TO-EXCEED AMOUNT OF 72% OF THE ADMINISTRATIVE FEES CONCURRENT WITH THE EXISTING CONTRACT TERMS TO NAM MCKAY AND ASSOCIATES, FOR HOUSING CHOICE VOUCHER MANAGEMENT AND OPERATIONS. As evidenced by the increase in overall HCV audit findings, loss of federal revenues, inability to correctly serve existing and future HCV program participants, noncompliance on both a local and federal level for section 8 program funding for the administration and operations of the HCV program, immediate action is requested to authorize Nan McKay & Associates to administer and operate JHA’s HCV program immediately. Combined with a plethora of likely compliance issues and deteriorated financial condition, these concerns pose a significant threat to both the immediate and long-term success of Jacksonville’s HCV program. Responsible: Nan McKay & Associates POINT OF CONTACT: Steven Rosario, Sr. Director EMAIL: srosario@nanmckay.com JHA POC: Roslyn Phillips, Interim COO EMAIL: RPHILLIPS@JAXHA.ORG

View Audit 361093

Finding 569825 (2024-001)

Material Weakness 2024

Jacksonville Housing Authority

FL

HUD Housing Programs Eligibility Internal Control / Segregation of Duties

The Jacksonville Housing Authority’s (JHA) Housing Choice Voucher (HCV) program is the largest rental assistance program in the City of Jacksonville. Through the Annual Contributions Development (HUD) and assist over 7,700 families each year. The ACC requires JHA to comply with federal regulations a...

The Jacksonville Housing Authority’s (JHA) Housing Choice Voucher (HCV) program is the largest rental assistance program in the City of Jacksonville. Through the Annual Contributions Development (HUD) and assist over 7,700 families each year. The ACC requires JHA to comply with federal regulations and HUD guidelines, as amended from time to time. Audit Findings Berman Hopkins Wright & LaHam, CPAs and Associates, LLP conducted the recent FY2024 JHA Audit (Period: October 1, 2023 – September 30, 2024) and identified continued material weakness findings within the JHA Housing Choice Voucher (HCV) program including but not limited to: Material Weaknesses in Internal Controls, Material Weaknesses in Non-Compliance and Material Weaknesses in the Housing Quality Standards (HQS) Inspection process. Berman Hopkins Wright & LaHam, CPAs and Associates, LLP previously conducted JHA’s FY2023 audit (Period: October 1, 2022 – September 30, 2023) and FY2022 audit (Period: October 1, 2021 – September 30, 2022) which disclosed consecutive historical material weaknesses in JHAs internal controls and noncompliance of the Housing Choice Voucher (HCV) program. Under new CEO leadership at JHA, a request to the JHA Board of Commissioners is in place for a vote on Friday, June 27, 2025, to authorize the following action of Nan McKay & Associates to Administer, Manage and Operate the JHA Housing Choice Voucher Program for an effective date of Monday July 7, 2025. Pending Resolution: AUTHORIZE THE AWARD OF THE MIAMI-DADE HOUSING & COMMUNITY DEVELOPMENT PIGGYBACK CONTRACT IN THE NOT-TO-EXCEED AMOUNT OF 72% OF THE ADMINISTRATIVE FEES CONCURRENT WITH THE EXISTING CONTRACT TERMS TO NAM MCKAY AND ASSOCIATES, FOR HOUSING CHOICE VOUCHER MANAGEMENT AND OPERATIONS. As evidenced by the increase in overall HCV audit findings, loss of federal revenues, inability to correctly serve existing and future HCV program participants, noncompliance on both a local and federal level for section 8 program funding for the administration and operations of the HCV program, immediate action is requested to authorize Nan McKay & Associates to administer and operate JHA’s HCV program. Combined with a plethora of likely compliance issues and deteriorated financial condition, these concerns pose a significant threat to both the immediate and long-term success of Jacksonville’s HCV program.

View Audit 361093

Finding 569824 (2024-002)

Material Weakness 2024

Jacksonville Housing Authority

FL

HUD Housing Programs Eligibility Internal Control / Segregation of Duties

Berman Hopkins Wright & LaHam, CPAs and Associates, LLP recently identified in the FY2024 JHA Audit (Period: October 1, 2023 – September 30, 2024) material weakness findings and noncompliance findings for the JHA Public Housing Program. Please note that the JHA’s Public Housing Program was not teste...

Berman Hopkins Wright & LaHam, CPAs and Associates, LLP recently identified in the FY2024 JHA Audit (Period: October 1, 2023 – September 30, 2024) material weakness findings and noncompliance findings for the JHA Public Housing Program. Please note that the JHA’s Public Housing Program was not tested by the auditors in previous years. Note: JHA will have a finding in FY2025 due to existing months of the public housing program operations that have already commenced for the periods: October 1, 2024 – June 27, 2025. The audit period will end for FY2025 September 30, 2025. JHA will quickly evaluate each PH employee, train, hire skilled employees and streamline organizational inefficiencies, while implementing new internal process controls to address the findings identified in the FY2024 audit report for the Public Housing program. An evaluation of the current employee role structure and staff qualifications will commence July 2025. The entire public housing department will be assessed to ensure that JHA is efficient, productive, utilizes the technology system of record Yardi V7 to adhere to compliance, and works in a collaborative matter to better serve all existing a potential future client of the agency. The Public Housing organizational re-org will be implemented no later than September 1, 2025. Responsible: Jacksonville Housing Authority JHA POC: William Mitchell (a.k.a.Daniel/Danny), Deputy Chief EMAIL: dmitchell@jaxha.org JHA POC: Roslyn Phillips, Interim COO EMAIL: RPHILLIPS@JAXHA.ORG

View Audit 361093

Finding 569819 (2024-003)

Material Weakness 2024

Navajo Housing Authority

AZ

Eligibility Material Weakness Internal Control / Segregation of Duties

Management Response: We will regularly review the recertification process to determine areas of weakness. We have created a standard re-certification plan, check list, and a monitor log and will routinely review the Authority’s Policy to ensure proper required eligibility documentations are provided...

Management Response: We will regularly review the recertification process to determine areas of weakness. We have created a standard re-certification plan, check list, and a monitor log and will routinely review the Authority’s Policy to ensure proper required eligibility documentations are provided and placed in the client file. We will review clients’ files monthly with the results of these reviews being forwarded to the Housing Management Division Director and, if deficiencies are found, they will be corrected immediately. Deficiencies will also be tracked to determine if additional staff training is needed. The Housing Directors are charged with the responsibility of ensuring proper documentation of Public Rental and Homeownership folders at the time of move in, during the Annual Inspection and Annual/Interim Recertification process. Anticipated Completion Date: September 30, 2025 Responsible Party:  Housing Management Division - Division Director  Housing Management Office - Housing Directors  Housing Management Office - Housing Specialists  Housing Management Office - Housing Technicians  Housing Management Office - Administrative Assistants/Specialists

View Audit 361089

Finding 569794 (2024-065)

Significant Deficiency 2024

State of Alaska

AK

Special Tests & Provisions Subrecipient Monitoring Significant Deficiency

Finding: 2024-065 - The State developed a sufficient state plan outlining appropriate procedures for ensuring child care providers serving children who receive subsidies are compliant with relevant health and safety requirements. However, one of 27 selections lacked documentation to adequately suppo...

Finding: 2024-065 - The State developed a sufficient state plan outlining appropriate procedures for ensuring child care providers serving children who receive subsidies are compliant with relevant health and safety requirements. However, one of 27 selections lacked documentation to adequately support that all controls, as outlined in the state plan, were fully followed. Questioned Costs: None Assistance Listing Number: 93.575, 93.596 Assistance Listing Title: CCDF Views of Responsible Officials (state whether your agency agrees or disagrees with the finding; if you disagree, briefly explain why): The department agrees with the finding. Corrective Action (corrective action planned): The Division of Public Assistance Child Care Program Office will provide coaching to staff who monitor health and safety requirements to ensure proper and complete documentation exists to show all controls were fully followed. Completion Date (list anticipated completion date): The department anticipates the finding will be resolved in FY2025. Agency Contact (name of person responsible for corrective action): Pam Halloran, Assistant Commissioner

View Audit 361087

Finding 569793 (2024-064)

Significant Deficiency 2024

State of Alaska

AK

Procurement, Suspension & Debarment Subrecipient Monitoring Reporting

Finding: 2024-064 - Five of five ACF-696 quarterly reports and three of five FFATA reports selected for testing were submitted after the required due dates. Questioned Costs: None Assistance Listing Number: 93.575, 93.596 Assistance Listing Title: CCDF Views of Responsible Officials (state wheth...

Finding: 2024-064 - Five of five ACF-696 quarterly reports and three of five FFATA reports selected for testing were submitted after the required due dates. Questioned Costs: None Assistance Listing Number: 93.575, 93.596 Assistance Listing Title: CCDF Views of Responsible Officials (state whether your agency agrees or disagrees with the finding; if you disagree, briefly explain why): The department agrees with the finding. Corrective Action (corrective action planned): Division of Public Assistance (DPA) staff in partnership with the Division of Finance and Management Services (FMS) will update procedures to streamline ACF-696 quarterly reporting. DPA will enhance financial accounting structure, which should also reduce time spent compiling data and result in more timely submissions. For FFATA, the applicable FMS staff experienced turnover affecting timely submission of reports. New staff will be trained in the procedures and requirements so FFATA reporting can occur in a timely manner. Completion Date (list anticipated completion date): The department anticipates the finding will be resolved in FY2025. Agency Contact (name of person responsible for corrective action): Pam Halloran, Assistant Commissioner

View Audit 361087

Finding 569791 (2024-025)

Significant Deficiency 2024

State of Alaska

AK

Cash Management Internal Control / Segregation of Duties

Finding: 2024-025 - DOR staff processed an FY 24 Child Support Services (CSS) federal cash draw that was inadequately supported at the time of the draw. Questioned Costs: None Assistance Listing Number: 93.563 Assistance Listing Title: CSS Views of Responsible Officials (state whether your ag...

Finding: 2024-025 - DOR staff processed an FY 24 Child Support Services (CSS) federal cash draw that was inadequately supported at the time of the draw. Questioned Costs: None Assistance Listing Number: 93.563 Assistance Listing Title: CSS Views of Responsible Officials (state whether your agency agrees or disagrees with the finding; if you disagree, briefly explain why): The Department of Revenue agrees with this finding. Corrective Action (corrective action planned): DOR management has implemented additional controls to ensure the completeness and accuracy of cash draws, including the preparation of more frequent expense reconciliations to ensure that the expenditure amounts recorded in IRIS match what is reported on the quarterly financial report (form 396). This step additionally ensures that the net federal share of expenditures matches the amount of receivables generated in IRIS. DOR’s finance officer will also take a more active role in the review process, ensuring cash draws are accurate and complete. Completion Date (list anticipated completion date): Implementation of the plan has begun. Final procedure testing and evaluation to be completed by December 31, 2025, based on the current Federal award being closed out. Agency Contact (name of person responsible for corrective action): Robert Doremus

View Audit 361087

Finding 569788 (2024-060)

Material Weakness 2024

State of Alaska

AK

Subrecipient Monitoring Internal Control / Segregation of Duties Material Weakness

Finding: 2024-060 - No Federal Funding and Transparency Act (FFATA) reports were submitted during the audit period of July 1, 2023 through June 30, 2024. Additionally, the State could not provide evidence that the FFY 23 ACF-204 annual report was completed or submitted to the federal agency. Questi...

Finding: 2024-060 - No Federal Funding and Transparency Act (FFATA) reports were submitted during the audit period of July 1, 2023 through June 30, 2024. Additionally, the State could not provide evidence that the FFY 23 ACF-204 annual report was completed or submitted to the federal agency. Questioned Costs: None Assistance Listing Number: 93.558 Assistance Listing Title: TANF Views of Responsible Officials (state whether your agency agrees or disagrees with the finding; if you disagree, briefly explain why): The department agrees with the finding. Corrective Action (corrective action planned): Division of Public Assistance will compile comprehensive procedures. Staff will be trained on the ACF-204 reporting process to ensure both accurate and timely reporting in future fiscal years. For FFATA, the Division of Shared Services will implement procedures in FY2025 to coordinate workflow of necessary information within and between agencies so that FFATA reporting can occur in a timely manner. Completion Date (list anticipated completion date): The department anticipates the finding will be resolved in FY2026. Agency Contact (name of person responsible for corrective action): Pam Halloran, Assistant Commissioner

View Audit 361087

Finding 569783 (2024-028)

Material Weakness 2024

State of Alaska

AK

Subrecipient Monitoring Internal Control / Segregation of Duties § 200.303

Finding: 2024-028 - The Elementary and Secondary School Emergency Relief fund annual report filed by DEED in May 2024 was submitted with incomplete subrecipient expenditure data for key line item 3b.1. Questioned Costs: None Assistance Listing Number: 84.425 Assistance Listing Title: Education St...

Finding: 2024-028 - The Elementary and Secondary School Emergency Relief fund annual report filed by DEED in May 2024 was submitted with incomplete subrecipient expenditure data for key line item 3b.1. Questioned Costs: None Assistance Listing Number: 84.425 Assistance Listing Title: Education Stabilization Fund - COVID- 19 Views of Responsible Officials (state whether your agency agrees or disagrees with the finding; if you disagree, briefly explain why): The department partially disagrees with Finding 2024-028. While it is true that the department did initially report zeros in the LEA portion of ESSER III reporting it is untrue that the effect was a reduction in transparency or impaired the federal agency’s oversight ability. No ESSER annual reporting can be submitted if all entered answers do not conform to implemented data validations requirements. Relevant in this instance is that if district level data reported does not match, to the penny, between different reporting categories, data validation errors occur. Including zeros, when accurate data conforming to data validation checks was not able to be entered, allowed the department to enter the data accurately during the first reporting reopen period. Had the department not entered zeros, data validation errors would have prevented the department from submitting the entire FY2023 ESSER annual report. If no report had been entered as of the initial due date the department would not have been allowed to submit any report at all, which would be less accurate than temporary partial inaccuracy. Corrective Action (corrective action planned): ESSER III reporting was corrected during the first reopen period for the FY2023 ESSER annual report in September of 2024 after additional consultation with districts and review of available data. Completion Date (list anticipated completion date): 9/26/24 Agency Contact (name of person responsible for corrective action): Deborah Riddle, Division Operations Manager, Division of Innovation & Education Excellence

View Audit 361087

Finding 569780 (2024-083)

Significant Deficiency 2024

State of Alaska

AK

Period of Performance Significant Deficiency Matching / Level of Effort / Earmarking § 200.303

Finding: 2024-083 - One of 40 sampled transactions were coded incorrectly to the wrong grant. Questioned Costs: None Assistance Listing Number: 47.076 Assistance Listing Title: RDC Views of Responsible Officials (state whether your agency agrees or disagrees with the finding; if you disagree, br...

Finding: 2024-083 - One of 40 sampled transactions were coded incorrectly to the wrong grant. Questioned Costs: None Assistance Listing Number: 47.076 Assistance Listing Title: RDC Views of Responsible Officials (state whether your agency agrees or disagrees with the finding; if you disagree, briefly explain why): There is no disagreement with the audit finding. Corrective Action (corrective action planned): The expenditure with issue was charged to a ‘Closed’ grant and UAF Office of Grants & Contracts Administration (OGCA) was not aware of this until it showed up on the aged receivable report so it was not corrected in time before year-end. OGCA will develop a plan to detect and correct these inappropriate expenditures charged on closed grants timely. Completion Date (list anticipated completion date): June 2025 Agency Contact (name of person responsible for corrective action): Michelle Bunch, Office of Grants and Contracts Associate Director, 907-474-6173

View Audit 361087

Finding 569774 (2024-003)

Significant Deficiency 2024

State of Alaska

AK

Internal Control / Segregation of Duties Reporting Significant Deficiency § 200.303

Finding: 2024-003 — Office of Management and Budget staff submitted the quarter ended December 31, 2023, FY 24 Coronavirus State and Local Fiscal Recovery Funds (SLFRF) program project and expenditure report to US Treasury with material errors. Questioned Costs: None Assistance Listing Number: 21....

Finding: 2024-003 — Office of Management and Budget staff submitted the quarter ended December 31, 2023, FY 24 Coronavirus State and Local Fiscal Recovery Funds (SLFRF) program project and expenditure report to US Treasury with material errors. Questioned Costs: None Assistance Listing Number: 21.027 Assistance Listing Title: SLFRF COVID- 19 Views of Responsible Officials (state whether your agency agrees or disagrees with the finding; if you disagree, briefly explain why): The Office of the Governor, Office of Management and Budget (OMB), agrees with this finding. Corrective Action (corrective action planned): A standard operating procedure policy for completing the quarterly Project and Expenditure Report was drafted and finalized in coordination with the Division of Finance. This policy has been utilized since completion and will be followed for all future SLFRF reporting periods. The U.S. Treasury was contacted for guidance on how to correct prior-quarter obligation and expenditure data. Completion Date (list anticipated completion date): February 25, 2025 Agency Contact (name of person responsible for corrective action): Lacey Sanders, Director

View Audit 361087

Finding 569770 (2024-043)

Significant Deficiency 2024

State of Alaska

AK

Allowable Costs / Cost Principles Internal Control / Segregation of Duties § 200.303 § 200.421

Finding: 2024-043 - Testing a random sample of 60 FY 24 non-personal service expenditures charged to the Fish and Wildlife Cluster (FWC) identified two expenditures that lacked proper approval, and one that charged unallowable costs to the FWC. Questioned Costs: ALN 15.611: $206 Assistance Listing...

Finding: 2024-043 - Testing a random sample of 60 FY 24 non-personal service expenditures charged to the Fish and Wildlife Cluster (FWC) identified two expenditures that lacked proper approval, and one that charged unallowable costs to the FWC. Questioned Costs: ALN 15.611: $206 Assistance Listing Number: 15.605, 15.611 Assistance Listing Title: FWC Views of Responsible Officials (state whether your agency agrees or disagrees with the finding; if you disagree, briefly explain why): Alaska Department of Fish & Game (ADFG) agrees with this finding. ADFG agrees that the control environment was weakened with the transition of non-personal service expenditure input and certification in the accounting system from ADFG staff to Shared Services of Alaska (SSoA) staff and that inadequate training is a contributing factor. Corrective Action (corrective action planned): ADFG will enhance the training and approval process for ADFG staff to ensure all expenditures are allowable, properly authorized, and compliant with regulatory requirements before being processed by SSoA staff. ADFG will update the approving officer policy to include the following requirements: Develop an onboarding training video for new approving officers, providing them with a comprehensive introduction to their responsibilities, ensuring they are well-prepared from the start. Implement annual approving officer training to keep approving officers updated on current policies and reinforce best practices. Establish an annual recertification process for approving officers to ensure ongoing proficiency and accountability, reinforcing the importance of compliance and proper authorization. ADFG will meet with SSoA to discuss and implement a process that ensures all missing authority signatures are captured and returned to the department for correction before processing occurs. ADFG will meet with SSoA to discuss this audit finding and request their staff receive further training equivalent to ADFG staff to prevent potential errors and findings in the future. Additionally, ADFG will request that SSoA provide training on invoice processing and backup requirements as a core service for the State of Alaska. Completion Date (list anticipated completion date): November 15, 2025 Agency Contact (name of person responsible for corrective action): Jessica Hood, Accountant 5

View Audit 361087

Finding 569769 (2024-035)

Significant Deficiency 2024

State of Alaska

AK

Subrecipient Monitoring Allowable Costs / Cost Principles Cash Management § 200.303 § 200.308 § 200.344

Finding: 2024-035 -Six of seven award extensions for the NGMOMP program were untimely. Additionally, one award was not closed timely. Questioned Costs: None Assistance Listing Number: 12.401 Assistance Listing Title: NGMOMP Views of Responsible Officials (state whether your agency agrees or ...

Finding: 2024-035 -Six of seven award extensions for the NGMOMP program were untimely. Additionally, one award was not closed timely. Questioned Costs: None Assistance Listing Number: 12.401 Assistance Listing Title: NGMOMP Views of Responsible Officials (state whether your agency agrees or disagrees with the finding if you disagree, briefly explain why): DMVA concurs with the finding. Corrective Action (corrective action planned): Administrative Services has consistently provided notification and set clear deadlines to the Federal and State Program Managers of an expiring award under the Cooperative Agreement (CA). This notification has included a financial report detailing posted expenses and open obligations and when applicable, a copy of the most resent approved extension for reference. Due to inconsistent and untimely responses, the Finance officer in conjunction with the Administrative Services Director will update and strengthen written procedures, elevating responsibility for follow-up when responses are not received to ensure timely submission of extension requests and award closeouts following 2 CFR 200.303(a), 2 CFR 200.308(e), and 2 CFR 200.344. Updated documented procedures and training will be provided to the components under the CA. Completion Date (list anticipated completion date): 06/30/2025 Agency Contact (name of person responsible for corrective action): Bob Ernisse Pamela Wiederspohn

View Audit 361087

Finding 569755 (2024-052)

Material Weakness 2024

State of Alaska

AK

Questioned Costs School Nutrition Programs Eligibility § 200.303

Finding: 2024-052 - DOH’s Division of Public Assistance (DPA) did not determine or distribute benefits to school children or children in child care in accordance with the process and timeframes in the federally approved state plan. The audit identified the following deficiencies in FY 24: • The chi...

Finding: 2024-052 - DOH’s Division of Public Assistance (DPA) did not determine or distribute benefits to school children or children in child care in accordance with the process and timeframes in the federally approved state plan. The audit identified the following deficiencies in FY 24: • The children in child care beneficiaries were not identified as required by the school year 2020—2021 state plan. • The per child benefit amount paid to the 15,697 children in child care was understated by $6.21 and 125 children were included in both the student and the child care benefit eligibility lists. • Issuance records provided by DPA’s Electronic Benefits Transfer (EBT) contractor, Fidelity National Information Services (FIS), were $795,659 more than DPA reported issuances. Furthermore, the FIS report included $28,992 in duplicate summer 2021 benefit issuances to school children. • School year 2020—2021 student beneficiaries paid in FY 24 received benefits at least two years late and the children in child care beneficiaries were paid benefits at least 20 months late. Summer of 2021 beneficiaries paid in FY24 received benefits at least 20 months late. Questioned Costs: AL 10.542: Indeterminate Assistance Listing Number: 10.542 Assistance Listing Title: Pandemic Electronic Benefit Transfer Food Benefits (P-EBT) COVID-19 Views of Responsible Officials (state whether your agency agrees or disagrees with the finding; if you disagree, briefly explain why): The department partially agrees with the finding. The Division of Public Assistance disagrees with the finding regarding issuance timelines. The division communicated with FNS regarding manual benefit issuance for Alaska expressing timelines would be affected and FNS did not request an updated timeline. Communication with FNS regarding issuance remained consistent, with no indication to alter our issuance plan. Corrective Action (corrective action planned): Shall the department agree to administer this federal program in the future, the Commissioner will allocate the resources necessary to prevent the necessity to manually administer the federal program. Completion Date (list anticipated completion date): Not applicable. This federal program is complete. Agency Contact (name of person responsible for corrective action): Pam Halloran, Assistant Commissioner

View Audit 361087 Questioned Costs: $1

Finding 569731 (2024-001)

Significant Deficiency 2024

Limestone Valley Resource Conservation and Development Council, Inc.

GA

Internal Control / Segregation of Duties Cash Management Reporting

2023-01: Segregation of Duties Name of contact person: Stephen Bontekoe, Program Coordinator Corrective Action: Duties and functions will be reviewed to determine where segregation needs to occur. The duties will be separated as much as possible and alternative controls will be implemented to ...

2023-01: Segregation of Duties Name of contact person: Stephen Bontekoe, Program Coordinator Corrective Action: Duties and functions will be reviewed to determine where segregation needs to occur. The duties will be separated as much as possible and alternative controls will be implemented to compensate for lack of segregation. However, the risk of not segregated certain duties are not worth the additional costs. Nonfinancial employees will be trained and provide some assistance. Proposed completion date: The Board will implement the above procedure immediately.

View Audit 361079

Finding 569729 (2024-001)

Material Weakness 2024

City of Osceola

NE

Internal Control / Segregation of Duties HUD Housing Programs

The City has discussed the finding but must consider the cost of adequate segregation of duties when determining the use of taxpayer resources.

View Audit 361067

Finding 569696 (2024-002)

Material Weakness 2024

Nebraska Urban Indian Health Coalition, Inc.

NE

Material Weakness Period of Performance Matching / Level of Effort / Earmarking § 200.313

Finding 2024-002 – Activities Allowed/Unallowed, Costs Principles and Period of Performance (Internal Controls Over Compliance) (Repeat Finding 2023-001) Condition: During our review of the Coalition’s disbursements related to the Title V major program, we examined 68 transactions for internal cont...

Finding 2024-002 – Activities Allowed/Unallowed, Costs Principles and Period of Performance (Internal Controls Over Compliance) (Repeat Finding 2023-001) Condition: During our review of the Coalition’s disbursements related to the Title V major program, we examined 68 transactions for internal controls over compliance. 7 of the 68 transactions examined did not contain sufficient evidence that a review and approval process was completed prior to payment being processed. Corrective Action Plan: In response to the finding regarding insufficient internal controls over compliance for disbursements related to the Title V major program, the Nebraska Urban Indian Health Coalition (NUIHC) has previously taken several corrective actions to strengthen compliance, including: 1. Review and Revision of Policies and Procedures: NUIHC conducted a comprehensive review of internal control policies and procedures related to disbursements. Updates were made to ensure alignment with 2 CFR §200.313(a), and clear guidelines for review and approval processes were established. 2. Staff Training and Education: Training was provided to procurement and finance staff to ensure understanding of the revised procedures and federal compliance requirements, emphasizing the importance of proper approvals prior to disbursement. 3. Implementation of Standardized Approval Controls: A formal approval process and checklist system were implemented to ensure all disbursements are reviewed and approved by designated authorities before payment, with documentation retained for compliance. 4. Ongoing Monitoring and Internal Reviews: NUIHC began conducting quarterly internal compliance checks to verify adherence to updated procedures. Update and Continuation Plan: While these corrective actions were successfully implemented, the retirement of the former CEO temporarily stalled consistent oversight and reinforcement of these procedures. With new leadership in place, NUIHC is recommitting to the continued execution and monitoring of these corrective actions. Refresher training will be incorporated into ongoing professional development and onboarding for new staff, and quarterly internal audits will resume as scheduled. Timeline for Implementation: Corrective actions were initially implemented in 2024, and reinforcement activities—including staff refreshers and compliance monitoring—will continue a rolling basis starting July 2025. Responsible Party: Chief Financial Officer, Carlett Gregory Anticipated Completion Date: Ongoing; reinforcement begins July 2025

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