Corrective Action Plans

Finding 1153377 (2024-001)

Material Weakness 2024

Little Earth of United Tribes Housing Corporation

MN

Reporting Internal Control / Segregation of Duties

Management will review any future entries of this nature with care.

View Audit 366575

Finding 1153371 (2024-001)

Material Weakness 2024

City of Virginia, Minnesota

MN

Internal Control / Segregation of Duties

Finding Number: 2024-001 Finding Title: SEGREGATION OF DUTIES Name of Contact Person Responsible for Corrective Action Britt See-Benes, City Administrator and Sherry Erickson, Finance Director Corrective Action Planned The City Administrator and Finance Director will attempt to monitor transactions ...

Finding Number: 2024-001 Finding Title: SEGREGATION OF DUTIES Name of Contact Person Responsible for Corrective Action Britt See-Benes, City Administrator and Sherry Erickson, Finance Director Corrective Action Planned The City Administrator and Finance Director will attempt to monitor transactions and restructure the duties of office personnel to help ensure as much segregation of duties as possible within the City’s staffing limitations and funding constraints. Anticipated Completion Date Ongoing.

View Audit 366568

Finding 1153304 (2024-002)

Material Weakness 2024

Benet Place South

MN

HUD Housing Programs Material Weakness Reporting

Material Weakness: Internal Controls Over Compliance: The HUD approved budget for the 24-25 grant period, one replacement reserve withdrawal, and the bank reconciliations for August through December did not have documented review or approval. Recommendation: The Project should establish and follow a...

Material Weakness: Internal Controls Over Compliance: The HUD approved budget for the 24-25 grant period, one replacement reserve withdrawal, and the bank reconciliations for August through December did not have documented review or approval. Recommendation: The Project should establish and follow a consistent review process for budgets, replacement reserve withdrawals, and bank reconciliations. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: Management continues to review and establish monthly processes related to review and approval of budgets, replacement reserve withdrawals, and bank reconciliations.

View Audit 366520

Finding 1153303 (2024-004)

Material Weakness 2024

Benet Place

MN

Questioned Costs HUD Housing Programs Significant Deficiency

Significant Deficiency: Missing one deposit to the replacement reserve. $11,422 Recommendation: The Project should establish and follow a consistent monthly review process to ensure all deposits to the replacement reserve are made on a timely basis. Explanation of disagreement with audit finding: Th...

Significant Deficiency: Missing one deposit to the replacement reserve. $11,422 Recommendation: The Project should establish and follow a consistent monthly review process to ensure all deposits to the replacement reserve are made on a timely basis. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: Management continues to review and establish processes related to review and approval to ensure monthly replacement reserve deposits are made.

View Audit 366519 Questioned Costs: $1

Finding 1153302 (2024-003)

Material Weakness 2024

Benet Place

MN

HUD Housing Programs Material Weakness Reporting

Material Weakness: Internal Controls Over Compliance: The HUD approved budget for the 24-25 grant period, one replacement reserve withdrawal, and the bank reconciliations for August through December did not have documented review or approval. Recommendation: The Project should establish and follow a...

Material Weakness: Internal Controls Over Compliance: The HUD approved budget for the 24-25 grant period, one replacement reserve withdrawal, and the bank reconciliations for August through December did not have documented review or approval. Recommendation: The Project should establish and follow a consistent review process for budgets, replacement reserve withdrawals, and bank reconciliations. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: Management continues to review and establish monthly processes related to review and approval of budgets, replacement reserve withdrawals, and bank reconciliations.

View Audit 366519

Finding 1153301 (2024-002)

Material Weakness 2024

Benet Place

MN

Questioned Costs Allowable Costs / Cost Principles HUD Housing Programs

Material Weakness: Unauthorized Loan Recommendation: Management should implement a monthly review process to ensure that management fees are billed in accordance with the terms of the management agreement. Additionally, payroll allocations should be reviewed monthly to confirm that only the appropri...

Material Weakness: Unauthorized Loan Recommendation: Management should implement a monthly review process to ensure that management fees are billed in accordance with the terms of the management agreement. Additionally, payroll allocations should be reviewed monthly to confirm that only the appropriate share of expenses is charged to the Project. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: Management continues to review and establish month end and year end procedures to properly record management fees accordance with HUD approved rate. The payroll allocation issue arose due to a salary allocation being missed during the property management transition. Management continues to review and establish procedures related to payroll allocations to ensure correct expenses are allocated to the Project.

View Audit 366519 Questioned Costs: $1

Finding 1153300 (2024-002)

Material Weakness 2024

St Croix Valley Supportive Housing for the Elderly, Inc.

WI

Questioned Costs Allowable Costs / Cost Principles HUD Housing Programs

Federal Agency: U.S. Dept. of Housing and Urban Development Federal Program: Section 202 Capital Advance Assistance Listing Number: 14.157 Federal Award Identification Number and Year: WI39S971003-23Z-2023 2024-002 Material Weakness: Unauthorized Loan Recommendation: Payroll allocations should be re...

Federal Agency: U.S. Dept. of Housing and Urban Development Federal Program: Section 202 Capital Advance Assistance Listing Number: 14.157 Federal Award Identification Number and Year: WI39S971003-23Z-2023 2024-002 Material Weakness: Unauthorized Loan Recommendation: Payroll allocations should be reviewed monthly to confirm that only the appropriate share of expenses is charged to the Project. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: The issue arose due to a salary allocation being missed during the general ledger conversion. Management continues to review and establish procedures related to payroll allocations to ensure correct expenses are allocated to the Project. Names of the contact persons responsible for corrective action: Tom Krolak Planned completion date for corrective action plan: December 31, 2025

View Audit 366518 Questioned Costs: $1

Finding 1153297 (2024-001)

Material Weakness 2024

Dunn Housing Authority

NC

Eligibility HUD Housing Programs Reporting

Corrective Action Plan Section II - Financial Statement Findings None Reported Section III - Federal Award Findings and Questioned Costs Finding 2024-001 Name of Contact Person: Felicia Chester, Executive Director Corrective Action: We will implement proper internal control procedures for the Public...

Corrective Action Plan Section II - Financial Statement Findings None Reported Section III - Federal Award Findings and Questioned Costs Finding 2024-001 Name of Contact Person: Felicia Chester, Executive Director Corrective Action: We will implement proper internal control procedures for the Public and Indian Housing program elegibility requirements. Mangement has established a checklist for applications and will establish checklists for move-ins and move-outs. Proposed Completion Date: Immediately

View Audit 366512

Finding 1153296 (2024-003)

Material Weakness 2024

Montgomery County

IN

Internal Control / Segregation of Duties Allowable Costs / Cost Principles Material Weakness § 200.1 § 200.303

FINDING 2024-003 (prior finding audit number 2023-002) Finding Subject: COVID-19 – Coronavirus State and Local Fiscal Recovery Funds - Reporting Contact Person Responsible for Corrective Action: Mindy Byers, Auditor Contact Phone Number and Email Address: 765-364-6401 mindy.byers@montgomerycounty.in...

FINDING 2024-003 (prior finding audit number 2023-002) Finding Subject: COVID-19 – Coronavirus State and Local Fiscal Recovery Funds - Reporting Contact Person Responsible for Corrective Action: Mindy Byers, Auditor Contact Phone Number and Email Address: 765-364-6401 mindy.byers@montgomerycounty.in.gov Views of Responsible Officials: We concur with the finding. Description of Corrective Action Plan: One person will complete the report and another will sign off on a full review. Anticipated Completion Date: April 1, 2026 (based on due date of the next report)

View Audit 366496

Finding 1153283 (2024-002)

Material Weakness 2024

Howard County

IN

Allowable Costs / Cost Principles Material Weakness Period of Performance § 200.1 § 200.303

FINDING 2024-002 Finding Subject: COVID-19 - Coronavirus State and Local Fiscal Recovery Funds – Reporting Contact Person Responsible for Corrective Action: Jessica Secrease, County Auditor Contract Phone Number and Email Address: 765-456-2804 Views of Responsible Officials: We concur with the findi...

FINDING 2024-002 Finding Subject: COVID-19 - Coronavirus State and Local Fiscal Recovery Funds – Reporting Contact Person Responsible for Corrective Action: Jessica Secrease, County Auditor Contract Phone Number and Email Address: 765-456-2804 Views of Responsible Officials: We concur with the finding. Description of Corrective Action Plan: To prevent a recurrence of this issue in future audits, the County will implement a new internal control procedure. Specifically, the Auditor’s Office will require that both the Deputy Auditor and the County Auditor review and sign off on all Coronavirus State and Local Fiscal Recovery Fund reports prior to submission. This dual-review process will include a standardized checklist to verify data accuracy, consistency with supporting documentation, and compliance with federal reporting requirements. In addition, staff involved in the preparation of the reports will receive refresher training on the applicable guidance and reporting protocols to ensure a thorough understanding of expectations and requirements Anticipated Completion Date: September 2025

View Audit 366471

Finding 1153267 (2024-003)

Material Weakness 2024

City of Greenfield

IN

Internal Control / Segregation of Duties Allowable Costs / Cost Principles Material Weakness § 200.1 § 200.303

FINDING 2024-003 Finding Subject: COVID-19 - Coronavirus State and Local Fiscal Recovery Funds - Reporting Contact Person Responsible for Corrective Action: Lori Elmore Contact Phone Number and Email Address: 317-325-1315 Lelmore@greenfieldin.org Views of Responsible Officials: We concur with the fi...

FINDING 2024-003 Finding Subject: COVID-19 - Coronavirus State and Local Fiscal Recovery Funds - Reporting Contact Person Responsible for Corrective Action: Lori Elmore Contact Phone Number and Email Address: 317-325-1315 Lelmore@greenfieldin.org Views of Responsible Officials: We concur with the finding. Description of Corrective Action Plan: We will ensure an internal person reviews the items included in the Annual Project and Expenditure Report before the submission of the report, we will implement a system where communications are exchanged between the Clerk-Treasurer and the person reviewing the submission to verify the report has been reviewed by someone other than the preparer. The spreadsheet which tracks expenditures has been amended to separate the reporting periods. Anticipated Completion Date: By April 30th, 2026 when the next Annual Project and Expenditure Report is due to be submitted.

View Audit 366453

Finding 1153205 (2024-001)

Material Weakness 2024

Benton-Franklin Council of Governments

WA

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

Corrective action the auditee plans to take in response to the finding: CORRECTIVE ACTION PLAN: 7. Closely following the GUIDE FOR EDA CARES REVOLVING LOAN FUND SEMI-ANNUAL FINANCIAL REPORTING PROCESS FOR BFCOG-47289WA FOR EDA AWARD NUMBER 07-79-07622 document. To avoid errors in key lines, such as ...

Corrective action the auditee plans to take in response to the finding: CORRECTIVE ACTION PLAN: 7. Closely following the GUIDE FOR EDA CARES REVOLVING LOAN FUND SEMI-ANNUAL FINANCIAL REPORTING PROCESS FOR BFCOG-47289WA FOR EDA AWARD NUMBER 07-79-07622 document. To avoid errors in key lines, such as administrative expenses, RLF income earned during the fiscal year, and RLF income used for administrative costs for the fiscal year. 8. To further avoid discrepancies, BFCOG will move to a semi-annual administrative expense reimbursement cycle to align with the semi-annual reporting periods. By doing this instead of only once at year's end, we will lessen the chance of those expenses being missed in reporting. 9. The primary responsibilities of this process will be transferred to our Staff Accountant (A. Fernandez) and reviewed with the Authorized Representative/Lending Director (M. Holt). During this transfer of duties, our Staff Accountant and Authorized Representative/Lending Director will ensure adequate training for upcoming reporting cycles and proper internal and EDA-level review. 10. The EDA RLF Program Administrator provided guidance that there is no mechanism for correcting reports filed in error and that necessary corrections must be made when filing the 2025 Year-End Financial Report. 11. File the 2025 Year-End Financial Report accurately and on time and document the review and submission paper trail for future reference.

View Audit 366431

Finding 1153198 (2024-004)

Material Weakness 2024

Payne County, Oklahoma

OK

Reporting Internal Control / Segregation of Duties Subrecipient Monitoring § 200.303

Communicate with the Budget Board regarding this finding. We have already introduced to the budget board, a form guideline called "Payne County Grant Administration Plan" to aid in maintaining proper documentation, reporting and proper spending of all grant awards, including creating a capital outla...

Communicate with the Budget Board regarding this finding. We have already introduced to the budget board, a form guideline called "Payne County Grant Administration Plan" to aid in maintaining proper documentation, reporting and proper spending of all grant awards, including creating a capital outlay sub account as recommended.

View Audit 366419

Finding 1153197 (2024-006)

Material Weakness 2024

Swift County

MN

Allowable Costs / Cost Principles Material Weakness Internal Control / Segregation of Duties § 200.516

ALLOWABLE COSTS - MEDICAL ASSISTANCE Recommendation: It is recommended that the County implement procedures to ensure that all disbursements are reviewed and approved prior to payment. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in re...

ALLOWABLE COSTS - MEDICAL ASSISTANCE Recommendation: It is recommended that the County implement procedures to ensure that all disbursements are reviewed and approved prior to payment. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: The County will train employees to ensure that all disbursements are reviewed prior to payment. Name of the contact person responsible for corrective action plan: Tesa Tomaschett, Administrator Planned completion date for corrective action plan: December 31, 2025

View Audit 366418

Finding 1153194 (2024-002)

Material Weakness 2024

Redlands Christian Migrant Asociation, Inc.

FL

Reporting Internal Control / Segregation of Duties

Corrective Action Plan: To address the noted condition, management has implemented corrective measures effective with the FY25 reporting cycle: 1. New ERP System Implementation – The transition to the new ERP system will automate the tracking of federal and state grant expenditures against the gener...

Corrective Action Plan: To address the noted condition, management has implemented corrective measures effective with the FY25 reporting cycle: 1. New ERP System Implementation – The transition to the new ERP system will automate the tracking of federal and state grant expenditures against the general ledger and streamline the preparation of the Schedule of Expenditures of Federal Awards (SEFA) and State Financial Assistance. 2. Strengthened Internal Controls and Approvals – Beginning in FY25, updated policies and procedures require monthly reconciliations of the SEFA schedule to the general ledger. These reconciliations are reviewed and approved by senior finance staff to ensure timely identification and correction of discrepancies. 3. Independent Oversight and Expertise – The organization has engaged an independent consulting firm with deep nonprofit expertise to assist in reviewing internal controls and reconciliation processes, ensuring alignment with best practices, and providing periodic oversight during the ERP transition. 4. Ongoing Staff Training – Finance staff are receiving training in the new ERP system and updated internal control procedures to ensure consistency and accuracy across reporting periods. Management believes these measures, beginning with FY25 reporting, will ensure timely, accurate reconciliations of the SEFA schedule to the financial statements, prevent future audit delays, and strengthen overall grant compliance. Questioned Costs None reported.

View Audit 366413

Finding 1153178 (2024-001)

Material Weakness 2024

Liberty Hill Foundation

CA

Internal Control / Segregation of Duties Reporting Matching / Level of Effort / Earmarking § 200.512

Views of Responsible Officials and Planned Corrective Action Plan: Management acknowledges the late submission and concurs with the recommendation to strengthen internal controls over the financial close process. The Foundation has begun implementing a corrective action plan focused on addressing st...

Views of Responsible Officials and Planned Corrective Action Plan: Management acknowledges the late submission and concurs with the recommendation to strengthen internal controls over the financial close process. The Foundation has begun implementing a corrective action plan focused on addressing staffing constraints and enhancing internal processes to support timely completion of the annual Single Audit. This includes hiring additional accounting personnel and refining financial reporting procedures to improve efficiency and ensure compliance in future reporting cycles.

View Audit 366410

Finding 1153169 (2024-001)

Material Weakness 2024

Wabash County

IN

Internal Control / Segregation of Duties Allowable Costs / Cost Principles Material Weakness § 200.1 § 200.303

FINDING 2024-001 Finding Subject: COVID-19 - Coronavirus State and Local Fiscal Recovery Funds – Reporting Contact Person Responsible for Corrective Action: Shelly Baucco, County Auditor Contact Phone Number and Email Address: (260) 563-0661 Views of Responsible Officials: We concur with the finding...

FINDING 2024-001 Finding Subject: COVID-19 - Coronavirus State and Local Fiscal Recovery Funds – Reporting Contact Person Responsible for Corrective Action: Shelly Baucco, County Auditor Contact Phone Number and Email Address: (260) 563-0661 Views of Responsible Officials: We concur with the finding and submit the following corrective action plan. Description of Corrective Action Plan: 1. The Auditor will print reports in the date span of the reporting period. 2. The Auditor will fill out the SLFRF Compliance Report and print it out for review. 3. A Deputy Auditor will compare the report documents to the Compliance report from SLFRF with checkmarks, for date span and correct amounts reported. Then sign off when correct and completed. 4. The documentation will be filed in the Grant binder. Anticipated Completion Date: August 2025

View Audit 366397

Finding 1153156 (2024-003)

Material Weakness 2024

Afghan Medical Professionals Association of America

VA

Internal Control / Segregation of Duties

The CFO will handle all financial operations with the Treasurer and third-party non-auditor CPA reviewing on a monthly basis. A board member compliance position has been added to ensure internal control guidelines are met and reports the results to the board. Additionally, the following actions will...

The CFO will handle all financial operations with the Treasurer and third-party non-auditor CPA reviewing on a monthly basis. A board member compliance position has been added to ensure internal control guidelines are met and reports the results to the board. Additionally, the following actions will be taken:

View Audit 366391

Finding 1153155 (2024-002)

Material Weakness 2024

Afghan Medical Professionals Association of America

VA

Allowable Costs / Cost Principles Internal Control / Segregation of Duties

All of AMPAA’s transactions are electronic using the accounting software from QuickBooks. Monthly billing invoices will either be generated through QuickBooks or uploaded into QuickBooks on the date received. When cash is deposited it will be applied against the appropriate invoice in QuickBooks. Di...

All of AMPAA’s transactions are electronic using the accounting software from QuickBooks. Monthly billing invoices will either be generated through QuickBooks or uploaded into QuickBooks on the date received. When cash is deposited it will be applied against the appropriate invoice in QuickBooks. Disbursements will be entered into QuickBooks directly. Bank account balances will be compared per trial balances with all QuickBooks transactions reconciled to the monthly bank statements. For procurement processes, all invoices will be issued and cleared through QuickBooks.

View Audit 366391

Finding 1153151 (2024-002)

Material Weakness 2024

Golden Harvest Food Bank, Inc.

GA

Special Tests & Provisions School Nutrition Programs Significant Deficiency

Finding 2024-002 Recommendation: We recommend controls be strengthened to ensure all donations are supported with verification of count, weight, product identification, and other inspection of the product as evidenced through signature of the person(s) receiving inventory items. This could be made t...

Finding 2024-002 Recommendation: We recommend controls be strengthened to ensure all donations are supported with verification of count, weight, product identification, and other inspection of the product as evidenced through signature of the person(s) receiving inventory items. This could be made through a checklist attached to the bill of lading and used with entering the items into the inventory system that includes verification was properly made and items properly set up in inventory. Corrective Action: A majority of TEFAP orders arrive with a BOL that will have the USDA secondary 5000 PO number as well as a 4000 Customer sales number and many times a 2000 Solicitation number. These are requirements the USDA has with the vendors supplying the items. We report both the 5000 and 4000 numbers to GA DHS/SC Dept of Ag upon receipt of the goods. If either or both numbers are missing from the BOL, we note that in the receipt report sent to these agencies. These numbers, although unique to USDA product, are not the only designation we use for TEFAP loads. We can access the TEFAP Requisition Status Report that indicates items that we have ordered and the status such as approved and delivery period. By contract the vendors/delivery brokers are required to give us a 48-hour notice prior to delivery. Moving forward, we will attach the TEFAP report sent to the respective state agencies in the event that either the 4000 or 5000 number is not on the BOL to the required retention paperwork for audit purposes. Person Responsible for Corrective Action: Norman Stafford, VP of Operations Anticipated Completion Date for Corrective Action: 8/14/25

View Audit 366380

Finding 1153147 (2024-003)

Material Weakness 2024

Golden Harvest Food Bank, Inc.

GA

Special Tests & Provisions Subrecipient Monitoring School Nutrition Programs

Finding 2024-003 Recommendation: We recommend original records relating to the requirements for distributed foods be retained for the required period. Corrective Action: Dates not matching shipping and receipt by agency can be attributed to two main reasons. A majority of the date discrepancies are ...

Finding 2024-003 Recommendation: We recommend original records relating to the requirements for distributed foods be retained for the required period. Corrective Action: Dates not matching shipping and receipt by agency can be attributed to two main reasons. A majority of the date discrepancies are deliveries that are made on weekends when the warehouse office is closed. Trucks are loaded out Friday afternoon and the required paperwork is generated and put in the truck for the next day. Occasionally on the date of delivery, agencies contact us as we are loading out and the paperwork has been generated informing us that due to some issue on their end, they cannot accept delivery and it is rescheduled. On these occasions, paperwork and product are set to the side until the next available day when the agency is capable of receiving the order. In the future, we will annotate on our copy of the documents if the delivery was on a Saturday or if the delivery date was moved at the request of t he agency. Person Responsible for Corrective Action: Norman Stafford, VP of Operations Anticipated Completion Date for Corrective Action: 8/14/25

View Audit 366380

Finding 1153131 (2024-004)

Material Weakness 2024

Cibecue Community Education Board, Inc. Dba Dishchii'bikoh Comm School

AZ

Material Weakness Reporting Internal Control / Segregation of Duties § 200.512 § 200.520

2024-004: Reporting Type of Finding: Noncompliance, Material Weakness Condition: The School did submit their audit for the fiscal year ending June 30, 2024 timely. The audit was submitted September 15, 2025, which was 168 days past the March 31, 2025 deadline. Action planned in response to finding: ...

2024-004: Reporting Type of Finding: Noncompliance, Material Weakness Condition: The School did submit their audit for the fiscal year ending June 30, 2024 timely. The audit was submitted September 15, 2025, which was 168 days past the March 31, 2025 deadline. Action planned in response to finding: Management will implement procedures to ensure that all audit documentation, is available for the audit in a timely manner and the audit report is completed and submitted within the appropriate timeframe. Repeat Finding: Similar to prior year finding 2023-005. Planned completion date for corrective action plan: June 30, 2025 Name of the contact person responsible for corrective action: Dolores Silva, Chief Financial Officer

View Audit 366362

Finding 1153126 (2024-003)

Material Weakness 2024

Cibecue Community Education Board, Inc. Dba Dishchii'bikoh Comm School

AZ

Special Tests & Provisions Material Weakness Internal Control / Segregation of Duties

2024-003: Special Tests and Provisions Type of Finding: Noncompliance, Material Weakness Context: For three of 20 employees tested, the School did not maintain a current and full background check and character investigation on file. Repeat Finding: Similar to prior year finding 2023-004. Action plan...

2024-003: Special Tests and Provisions Type of Finding: Noncompliance, Material Weakness Context: For three of 20 employees tested, the School did not maintain a current and full background check and character investigation on file. Repeat Finding: Similar to prior year finding 2023-004. Action planned in response to finding: Management will implement procedures to ensure that all employees have a current character investigation and background check on file. Planned completion date for corrective action plan: June 30, 2025 Name of the contact person responsible for corrective action: Dolores Silva, Chief Financial Officer

View Audit 366362

Finding 1153123 (2024-003)

Material Weakness 2024

City of Marion

IN

Internal Control / Segregation of Duties Allowable Costs / Cost Principles Material Weakness § 200.1 § 200.303

FINDING 2024-003 Finding Subject: COVID-19 - Coronavirus State and Local Fiscal Recovery Funds - Reporting Contact Person Responsible for Corrective Action: Dana Gault, Controller Contact Phone Number and Email Address: 765-382-3762 dgault@cityofmarion.in.gov Views of Responsible Officials: We concu...

FINDING 2024-003 Finding Subject: COVID-19 - Coronavirus State and Local Fiscal Recovery Funds - Reporting Contact Person Responsible for Corrective Action: Dana Gault, Controller Contact Phone Number and Email Address: 765-382-3762 dgault@cityofmarion.in.gov Views of Responsible Officials: We concur with the finding. Explanation: While the City concurs with the finding that funds were reported as expended in the April 1, 2023 to March 31, 2024 program reporting period, while in fact, these funds were merely transferred from the City’s American Rescue Plan Act Local Fiscal Recovery Fund to accounts for the City’s Redevelopment Commission and Airport Authority, and were not actually expended during said program reporting period from the accounts to which they had been transferred. The City wishes to make it clear that the City made the relevant transfers appropriately and did so to advance permissible programs and projects under the Award Terms and Conditions of the City’s Local Fiscal Recovery Fund Program award. At all times, the City maintained awareness of the funds in question and the status of the programs and projects being undertaken by the Redevelopment Commission and Airport Authority, respectively. The only matter with which the City concurs is the finding that, for purposes of reporting in the City’s Project and Expenditure Report, these funds were in fact transferred to allow the Redevelopment Commission and Airport Authority, respectively, to expend the funds, and that this transfer was reported as an expenditure of such funds in error. Description of Corrective Action Plan: The Deputy Controller will prepare the report and the Controller and the Financial Advisor will review and approve the current reporting period dates and data are correct. We will update the INTERNAL CONTROL to require that the Deputy Controller, Controller and Financial Advisor will include in their preparation and review, identification of the specific expenditure underlying any report of expended funds to avoid future incidents of a transfer of funds being mischaracterized as an expenditure of funds. Anticipated Completion Date: December 31, 2025

View Audit 366354

Finding 1153121 (2024-001)

Material Weakness 2024

Civic Arts

TX

Cash Management Material Weakness Matching / Level of Effort / Earmarking

Management concurs with the recommendation as proposed and is implementing policies and procedures to provide for proper segregation of duties over grant activities. This has been implemented effective immediately.

View Audit 366353

Corrective Action Plans

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