Corrective Action Plans

Finding 1223516 (2025-003)

Material Weakness 2025

Community Health & Social Services Center, Inc.

MI

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

2025-003 – Material Weakness and Material Noncompliance – Cash Management – Cash Request Recommendation We recommend that the organization implement and enforce policies and procedures, to ensure that all federal fund requests are supported by documented, allowable expenditures. Staff responsible fo...

2025-003 – Material Weakness and Material Noncompliance – Cash Management – Cash Request Recommendation We recommend that the organization implement and enforce policies and procedures, to ensure that all federal fund requests are supported by documented, allowable expenditures. Staff responsible for grant management should receive training in federal compliance requirements, and all reimbursement requests should be reviewed and approved by a qualified financial officer prior to submission. Action Taken CHASS management concurs with the audit findings and will put the following corrective action plan in place to mitigate this finding in the future: Implement separation of expenditures that are funded by grants will be recorded only related to that grant. Implementation of separating only revenue and expenditures to draw down grants will be reflected in general ledger for those grants. Implementation of grant 999 to reflect all other expenditures and revenues that are not covered by the grants. Staff will receive training in federal compliance requirements, and all reimbursement. Reconciliation of grants will be done at least once a quarter by grant clerk and will submit documentation of findings to CFO/ designated staff individuals. The CFO will only draw down funds when the general ledger supports the grant expenses. Monthly general ledgers will serve as backup documentation. CEO approval is required before any drawdown is completed. Responsible Parties: Feliz Valbuena, Chief Executive Office and Angela Salgado, Interim Chief Financial Officer

View Audit 406870

Finding 1223510 (2025-002)

Material Weakness 2025

El Paso County

CO

Questioned Costs Student Financial Aid Subrecipient Monitoring § 200.303

During the 2025 audit, the auditors discovered that a secondary review of eligibility determinations did not occur in a timely manner. The lack of internal control opened the possibility that an individual was incorrectly determined to be eligible to receive benefits and this error would not have be...

During the 2025 audit, the auditors discovered that a secondary review of eligibility determinations did not occur in a timely manner. The lack of internal control opened the possibility that an individual was incorrectly determined to be eligible to receive benefits and this error would not have been identified or corrected in a timely manner. Federal Regulations establish requirements for internal control over compliance with Federal program requirements. 2 CFR Section 200.303 requires non-Federal entities to establish and maintain effective internal control over Federal awards that provides reasonable assurance the entity is managing the award in compliance with Federal statutes, regulations, and the terms and conditions of the award. These requirements include the design, implementation, and operation of control activities to ensure compliance with applicable compliance requirements, including eligibility. As eligibility is a key compliance requirement identified in the OMB Compliance Supplement, the County is required to implement a review process and system of internal controls that allows management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, errors or noncompliance in eligibility determinations on a timely basis. The Department of Human Services (DHS) has implemented a monthly review process to audit a random sample of the IV-E cases. The review includes verification of timely and accurate determinations, client information, supporting documentation, and system entries, with results documented and approved by the reviewer. DHS Division leadership will monitor compliance to ensure the reviews are conducted each month. DHS believes this additional review procedure will provide the needed internal controls over IV-E determination.

View Audit 406864

Finding 1223499 (2025-006)

Material Weakness 2025

Guam Housing and Urban Renewal Authority

GU

Questioned Costs Special Tests & Provisions HUD Housing Programs

Finding #2025-006 14.225 CDBG – Endtitlement Grants Cluster B19ST660001, B20ST660001, B21ST660001, B22ST660001, B23ST660001, B24ST660001 Special Tests and Provisions - Rehabilitation Views of Responsible Officials and Planned Corrective Action Management’s Position: Management partially concurs with...

Finding #2025-006 14.225 CDBG – Endtitlement Grants Cluster B19ST660001, B20ST660001, B21ST660001, B22ST660001, B23ST660001, B24ST660001 Special Tests and Provisions - Rehabilitation Views of Responsible Officials and Planned Corrective Action Management’s Position: Management partially concurs with the finding. Management acknowledges that documentation can be strengthened. However, management does not concur that controls for project documentation and assigned personnel are absent. Explanation of Disagreement: Pre-rehabilitation inspections are conducted by GHURA engineering personnel for all proposed acquisitions. The assessment process requires multiple visits while personnel build the details to develop the scope of the necessary rehab work. These assessments lead to the work writeups to address identified deficiencies (safety, structural, electrical, plumbing, HVAC, lead, radon, etcetera). Senior engineering personnel oversee this process from initial assessment to final writeup. Corrective Actions: Management will reassess current procedures and documentation of pre-rehab condition. This will include inclusion of a periodic review of these procedures. The purpose of this assessment is to augment compliance with rehab requirements and coordination between key divisions responsible for activity completion. The A&E Division will remain responsible for the rehabilitation of CDBG-funded activities and to maintain appropriate documentation. The RPE Division will remain responsible for coordinating and ensuring compliance with CDBG requirements for the rehabilitation of funded activities and to maintain appropriate documentation. Responsible Party: Katherine Taitano, Chief Planner Anticipated Date of Completion: The enhanced documentation procedures will be implemented by or before the beginning of the next program year cycle.

View Audit 406860

Finding 1223494 (2025-002)

Material Weakness 2025

DAUPHIN COUNTY CONSERVATION DISTRICT

PA

Questioned Costs Reporting Internal Control / Segregation of Duties

Contact Person: Eric A. Naguski, District Manager. Recommendation: The District should establishe procedures to ensure reports are reviewed and approved prior to submission in the state's GIS system. Action: The Financial Coordinator will prepare the quarterly report and related supporting documenta...

Contact Person: Eric A. Naguski, District Manager. Recommendation: The District should establishe procedures to ensure reports are reviewed and approved prior to submission in the state's GIS system. Action: The Financial Coordinator will prepare the quarterly report and related supporting documentation and enter the data into the state's GIS system. A draft of the quarterly GIS report and supporting documentation will be fowarded to the District Manager for review and approval. The manager approved report will be submitted in the state's GIS system by the Financial Coordinator for final review and approval by the state. Date for Completion: June 16, 2026.

View Audit 406857

Finding 1223482 (2025-003)

Material Weakness 2025

Spirit Lake Community School District

IA

Internal Control / Segregation of Duties

SEE RESPONSE AND CORRECTIVE ACTION PLAN AT 2025-001

View Audit 406845

Finding 1223470 (2025-003)

Material Weakness 2025

COUNTY OF POCAHONTAS

IA

Subrecipient Monitoring Reporting Internal Control / Segregation of Duties

The County will develop procedures to ensure that required federal reports will be reviewed and approved by an independent person who is knowledgeable about the program. Indpendent review will be documented.

View Audit 406835

Finding 1223289 (2025-003)

Material Weakness 2025

Wapello Community School District

IA

Internal Control / Segregation of Duties Reporting

The District acknowledges this finding. Due to the limited number of administrative and business office personnel, complete segregation of duties is not always feasible. District administration continually evaluates internal control procedures and has implemented compensating controls to reduce the ...

The District acknowledges this finding. Due to the limited number of administrative and business office personnel, complete segregation of duties is not always feasible. District administration continually evaluates internal control procedures and has implemented compensating controls to reduce the risks associated with limited segregation of duties. As an additional compensating control, the Board of Directors receives and reviews a monthly internal control report that includes receipts, journal entries, manual journal entries, paid claims, and employee absence data. The Board reviews this information and documents its review through a formal sign-off process. In addition, the Board approves claims, reviews monthly financial reports, and monitors budget activity throughout the year. The District will continue to evaluate internal control procedures and implement additional compensating controls when practical to strengthen oversight and reduce the risk of errors or irregularities.

View Audit 406794

Finding 1223281 (2025-001)

Material Weakness 2025

Dakota Business Lending

ND

Internal Control / Segregation of Duties Questioned Costs Reporting

The Organization will review its procedures for preparing and submitting reports under federal loan programs and put proper supervision controls in place.

View Audit 406780

Finding 1223263 (2025-001)

Material Weakness 2025

Hancock County, Illinois

IL

Subrecipient Monitoring Internal Control / Segregation of Duties

Corrective Action Plan The County Board will continue to review all claims provided to them. Anticipated Completion Date The County is not in a financial position to hire additional employees. The increased monitoring will begin December 1, 2025. Responsible Parties Mark Menn, County Board Chairman ...

Corrective Action Plan The County Board will continue to review all claims provided to them. Anticipated Completion Date The County is not in a financial position to hire additional employees. The increased monitoring will begin December 1, 2025. Responsible Parties Mark Menn, County Board Chairman 500 Main Street, P.O. Box 248 Carthage, Illinois 62321 (217) 357-3986 Kris Pilkington, County Treasurer 500 Main Street, P.O. Box 248 Carthage, Illinois 62321 (217) 357-3986 Holly Wilde-Tillman, County Clerk 500 Main Street, P.O. Box 248 Carthage, Illinois 62321 (217) 357-3911

View Audit 406751

Finding 1223233 (2025-001)

Material Weakness 2025

Grid Alternatives

CA

Allowable Costs / Cost Principles Internal Control / Segregation of Duties

Corrective Action Plan: The Organization concurs with this finding and has implemented enhanced internal controls to ensure all timesheets charged to federal awards are properly reviewed and approved in accordance with policy; specifically, The Organization has established a requirement that all tim...

Corrective Action Plan: The Organization concurs with this finding and has implemented enhanced internal controls to ensure all timesheets charged to federal awards are properly reviewed and approved in accordance with policy; specifically, The Organization has established a requirement that all timecards must be reviewed and approved no later than the fifth day following each pay date, supported by monitoring procedures to track completion and identify any exceptions, and has also implemented a formal delegation protocol requiring supervisors to designate an alternate qualified approver when they are unavailable to ensure approvals occur timely and consistently. Person responsible for corrective action: Tamara Robinson Crayton - Controller Anticipated Completion Date: Initial implementation is in place by June 2026.

View Audit 406731

Finding 1223226 (2025-002)

Material Weakness 2025

Town of Westport

IN

Internal Control / Segregation of Duties § 200.303

FINDING 2025-002 Finding Subject: Water and Waste Disposal Systems for Rural Communities - Reporting Contact Person Responsible for Corrective Action: Gloria Alumbaugh Contact Phone Number and Email Address: 812-591-3500 and townofwestport@comcast.net Views of Responsible Officials: We concur with t...

FINDING 2025-002 Finding Subject: Water and Waste Disposal Systems for Rural Communities - Reporting Contact Person Responsible for Corrective Action: Gloria Alumbaugh Contact Phone Number and Email Address: 812-591-3500 and townofwestport@comcast.net Views of Responsible Officials: We concur with the finding. Description of Corrective Action Plan: The Clerk Treasurer will ensure that a review process is in place when completing the RD442-2 (Statement of Budget, Income and Equity) and the RD442-3 (Balance Sheet) for the annual USDA reports. The Clerk Treasurer will complete the RD442-2 and RD442-3 forms with working papers and reports to support the information reported on the forms. Then the Deputy Clerk will review the working papers and reports to verify the same results reported on the forms, before signing off on approval of the form, ensuring two signatures are included on the official forms before submittal to USDA each year. Anticipated Completion Date: The next annual USDA reports will be completed by March 1, 2027. INDIANA STATE

View Audit 406718

Finding 1223214 (2025-001)

Material Weakness 2025

Prairie Ridge Integrated Behavioral Healthcare

IA

Internal Control / Segregation of Duties

We are aware of the condition and will review procedures to make changes when appropriate and cost effective.

View Audit 406704

Finding 1223174 (2025-001)

Material Weakness 2025

Centre Care, Inc.

PA

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

Views of Responsible Officials and Planned Corrective Actions Centre Care acknowledges the 2024 Uniform Guidance Audit report was submitted late to the Federal Audit Clearinghouse. Centre Care was in the process of negotiating with the USDA related to another loan agreement and financial statements ...

Views of Responsible Officials and Planned Corrective Actions Centre Care acknowledges the 2024 Uniform Guidance Audit report was submitted late to the Federal Audit Clearinghouse. Centre Care was in the process of negotiating with the USDA related to another loan agreement and financial statements were reissued to alleviate the going concern impacting the timing of reporting. In addition, our consulting team (CHR) incurred transition within the accounting team and as a result the reporting deadline was not communicated to the new team, and the reporting deadline was missed. Corrective Action Plan: Centre Care already remedied this issue in 2026 by submitting the reporting package and data collection form for the year ended December 31, 2024, and the data collection form process has been started for the December 31, 2025, audit and will be submitted upon finalizing the audit report in accordance with Uniform Guidance requirements.

View Audit 406690

Finding 1223157 (2025-004)

Material Weakness 2025

CLEAN ENERGY FUND OF TEXAS, INC.

TX

Questioned Costs Significant Deficiency Internal Control / Segregation of Duties § 200.303 § 200.430

Management agrees with the finding and acknowledges that documentation of timesheet and payroll reviews was not consistently retained during the audit period. Management notes that this finding relates primarily to the documentation and consistency of review controls rather than an indication that r...

Management agrees with the finding and acknowledges that documentation of timesheet and payroll reviews was not consistently retained during the audit period. Management notes that this finding relates primarily to the documentation and consistency of review controls rather than an indication that reviews were not performed. To address this finding, management has implemented a formal, documented review process for timesheets and payroll prior to disbursement. Timesheets will be reviewed and approved through a centralized system or documented workflow to ensure that evidence of supervisory review is retained. Payroll changes require CEO approval prior to or concurrent with processing and documentation retained. Each payroll is subject to independent review and confirmation. Cumulative payroll and allocation are further subject to independent quarterly review by the CEO with supporting documentation. These procedures will be incorporated into standard operating practices and monitored periodically to ensure consistent application and retention of audit evidence. Anticipated Implementation Date: Implemented and ongoing; formal policy incorporation expected by September 1, 2026. Contact Person Responsible for Corrective Action: Shahara Wright, Chief Operating Officer & General Counsel and Brook Abitz, Director of People and Operations

View Audit 406679

Finding 1223152 (2025-003)

Material Weakness 2025

CLEAN ENERGY FUND OF TEXAS, INC.

TX

Internal Control / Segregation of Duties § 200.303 § 200.403

Management agrees with the finding and acknowledges that documentation supporting review, approval, and segregation of duties for certain nonpayroll transactions was not consistently maintained during the audit period. To address this finding, management has formalized procedures requiring documente...

Management agrees with the finding and acknowledges that documentation supporting review, approval, and segregation of duties for certain nonpayroll transactions was not consistently maintained during the audit period. To address this finding, management has formalized procedures requiring documented approval of invoices and nonpayroll expenditures prior to payment. These procedures require a clear separation between the individual requesting or managing a transaction and the individual approving the invoice or payment. Management has also implemented standardized approval workflows to strengthen segregation of duties, enforce approval requirements, and maintain a complete audit trail. Management will incorporate these procedures into formal policies and standard operating procedures and will periodically monitor compliance to ensure controls are consistently applied across programs. Anticipated Implementation Date: Implemented and ongoing; formal policy incorporation expected by September 1, 2026 Contact Person Responsible for Corrective Action: Shahara Wright, Chief Operating Officer & General Counsel and Brook Abitz, Director of People and Operations

View Audit 406679

Finding 1223147 (2025-002)

Material Weakness 2025

CLEAN ENERGY FUND OF TEXAS, INC.

TX

Procurement, Suspension & Debarment Internal Control / Segregation of Duties Allowable Costs / Cost Principles § 200.318 § 200.320

Management agrees with the finding and acknowledges that procurement approval documentation was not consistently retained during the audit period. Management notes that the finding primarily relates to documentation and retention of approval evidence, including reliance on verbal approvals and docum...

Management agrees with the finding and acknowledges that procurement approval documentation was not consistently retained during the audit period. Management notes that the finding primarily relates to documentation and retention of approval evidence, including reliance on verbal approvals and documentation gaps associated with system transitions. To address this finding, management has implemented corrective actions requiring documented, written approval for procurements prior to execution. The organization will use standardized approval workflows to ensure procurement approvals are properly evidenced, retained, and available for audit review. Management has also established a centralized repository for procurement records to improve accessibility, consistency, and document retention. In addition, management will enhance data backup and migration procedures to reduce the risk of documentation loss during future system transitions. These procedures will be incorporated into formal policies and standard operating procedures. Management will monitor compliance to ensure procurement documentation and approval controls are consistently followed across federally funded programs. Anticipated Implementation Date: Implemented and ongoing; formal policy incorporation expected by September 1, 2026. Contact Person Responsible for Corrective Action: Shahara Wright, Chief Operating Officer & General Counsel and Brook Abitz, Director of People and Operations

View Audit 406679

Finding 1223138 (2025-005)

Material Weakness 2025

Puerto Rico Ports Authority

PR

Questioned Costs Reporting Significant Deficiency § 200.512

Finding No. 2025-005 – Late filing of data collection form and reporting package Condition The Authority did not submit the required data collection form and reporting package within the required period by March 31, 2026 (9 months after the end of fiscal year). Views of Responsible Officials and Cor...

Finding No. 2025-005 – Late filing of data collection form and reporting package Condition The Authority did not submit the required data collection form and reporting package within the required period by March 31, 2026 (9 months after the end of fiscal year). Views of Responsible Officials and Corrective Actions The Federal Funds Management Office (FFMO) is aware of the deadlines for filing the data collection form and the reporting package, however, as indicated in previous year’s audits, the completion of the required information continues out of their control. In addition, to having difficulties with its monthly accounting closings due to personnel limitations in the Accounting Office, the implementation of new accounting standards, such as GASBs No. 73, N0. 75, No. 87 and others have been additional obstacles to achieve our objective to file the data collection form and reporting package timely. Accordingly, it has not been possible to complete the audit of the financial statements and the single audits for various fiscal years on time, nor to file the data collection form and the reporting packages. In August 2025 and January 2026, the audited financial statements for 2024 and 2025, respectively were issued. Also, the Authority’s management expects to issue the 2026 financial statements during December 2026. Management will continue emphasizing to the FFMO that reports need to be submi􀄴ed on a timely basis. Management will do its best to procure additional personnel for the Accounting and Federal Funds Management Offices. Once a final catch-up of the timely issuance of the audited financial statements is achieved, the required information will be filed within the timeframe established by federal regulations. Name(s) of the Contact Person(s) Responsible for Corrective Action Romel Pedraza Claudio. P.E. – Assistant Executive Director for Planning & Engineering Luis R. Torres Meléndez – Federal Funds Area Officer José Mojica Bonet – Federal Funds Area Officer Anticipated Completion Date Once the Authority catches up with the financial statements’ issuance, the data collection form and reporting package will be filed timely.

View Audit 406665

Finding 1223102 (2025-003)

Material Weakness 2025

Central East Alcoholism and Drug Council Dba Hour House

IL

Questioned Costs Allowable Costs / Cost Principles Cash Management

The Council agrees with finding 2025-003 and will follow its policy to report direct costs and appropriate cost allocations in expense-based programs.

View Audit 406656

Finding 1223064 (2025-001)

Material Weakness 2025

City of Ely, Minnesota

MN

Internal Control / Segregation of Duties

Finding Number: 2025-001 Name of Contact Person: Harold Langowski, City Clerk-Treasurer Corrective Action Planned: Clerk-Treasurer will attempt to monitor transactions and structure the duties of office personnel to help ensure as much segregation of duties as possible within the City’s staffing lim...

Finding Number: 2025-001 Name of Contact Person: Harold Langowski, City Clerk-Treasurer Corrective Action Planned: Clerk-Treasurer will attempt to monitor transactions and structure 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: Management has been monitoring transactions and reviewing the duties of office personnel on an ongoing basis.

View Audit 406640

Finding 1223030 (2025-001)

Material Weakness 2025

West Valley Housing Authority

OR

HUD Housing Programs Internal Control / Segregation of Duties Questioned Costs

CORRECTIVE ACTION PLAN -For FY 2025 Audit Finding FINDING: 2025-001-ALN 14.871 & 14.879: U.S. Department of Housing and Urban Development’s (HUD’s) Section 8 Housing Choice Voucher (HCV) Program & Housing Quality Standards Inspection/HQS Enforcement CRITERIA: 24 CFR 982.405 & 983.103 require units l...

CORRECTIVE ACTION PLAN -For FY 2025 Audit Finding FINDING: 2025-001-ALN 14.871 & 14.879: U.S. Department of Housing and Urban Development’s (HUD’s) Section 8 Housing Choice Voucher (HCV) Program & Housing Quality Standards Inspection/HQS Enforcement CRITERIA: 24 CFR 982.405 & 983.103 require units leased, under the HCV Program, to be inspected at least biennially to determine if the unit meets Housing Quality Standards (HQS) and the PHA must conduct quality control re-inspections. CONDITION: During the audit, three (3) failed HQS inspections, with life threatening issues as defined by the WVHA’s Administrative Plan, was found that did not receive a pass in conformance with the Criteria noted above and no HAP abatement process was enforced. Additionally, two (2) HCV units were found to have not been inspected at least biennially. PLAN FOR CORRECTION: Inspection Protocols- With the limitation of time imposed by the 24-hour remedy period, staff were calling and/or emailing the landlords as soon as they noted a Life, Health & Safety deficiency. Inspection staff have been informed that all Life Health and Safety deficiencies will immediately trigger a letter to the landlord (with a copy to the HCV caseworker) stating that Housing Assistance Payments will be placed in abatement and the HCV caseworkers will perform such abatement action as soon as the 24-hour period has elapsed (unless informed by the inspector that the property has subsequently corrected the deficiencies). Documentation- Physical inspection records will be provided to each HCV caseworker and be added to the tenant household’s HCV file within 24 hours of the inspection. HCV caseworkers are required to ensure all inspection documentation is properly located within each HCV file and such documentation is in accordance with the program’s rules and regulations. CONTACTS FOR PLAN: Cheryl Slagle – Housing Programs Manager Ph. (503) 623-8387 Ext. 328 cslagle@wvpha.org Christian Edelblute - Executive Director Ph. (503) 623-8387 Ext. 314 cedelblute@wvpha.org

View Audit 406612

Finding 1223018 (2025-002)

Material Weakness 2025

Polk County Housing Authority

WI

Reporting Internal Control / Segregation of Duties

2025-002 Material Audit Adjustment Corrective Action Planned: The material misstatements detected as a result of audit procedures were corrected by management. The Authority will review all adjusting entries posted and make all such necessary adjustments in the future. The Executive Director will co...

2025-002 Material Audit Adjustment Corrective Action Planned: The material misstatements detected as a result of audit procedures were corrected by management. The Authority will review all adjusting entries posted and make all such necessary adjustments in the future. The Executive Director will continue to monitor all financial activity and adjust account balances as needed throughout the year and at year-end to prevent misstatements from occurring. Completion Date: December 31, 2026

View Audit 406568

Finding 1223017 (2025-001)

Material Weakness 2025

Polk County Housing Authority

WI

Internal Control / Segregation of Duties

Corrective Action Planned: Due to the Authority's size, it is cost-prohibitive and impractical to achieve the ideal level of segregation of duties. The Authority has implemented as many controls and segregation of duties as practically possible for an organization of this size. Completion Date: Ongo...

Corrective Action Planned: Due to the Authority's size, it is cost-prohibitive and impractical to achieve the ideal level of segregation of duties. The Authority has implemented as many controls and segregation of duties as practically possible for an organization of this size. Completion Date: Ongoing

View Audit 406568

Finding 1223011 (2025-005)

Material Weakness 2025

Lee's Summit Housing Authority

MO

Reporting Internal Control / Segregation of Duties

Management has established standardized filing procedures for both electronic and hard-copy records, requiring supporting documentation for all reeipts, disbursements, journal entries, payroll transactions, procurement activities, grant expenditures, and bank reconiciliations. LSHA updated it's writ...

Management has established standardized filing procedures for both electronic and hard-copy records, requiring supporting documentation for all reeipts, disbursements, journal entries, payroll transactions, procurement activities, grant expenditures, and bank reconiciliations. LSHA updated it's written records retention policy that complies with applicable HUD regulations, federal record retention requirements, and the LSHA's internal policies. Finance staff have received training on documentation standards, file maintenance, and record retention requirements.

View Audit 406556

Finding 1223010 (2025-004)

Material Weakness 2025

Lee's Summit Housing Authority

MO

Questioned Costs HUD Housing Programs Internal Control / Segregation of Duties

Management has strengthened its recordkeeping practices to ensure that all revenues are fully supported by appropriate source documentation and are readily available for audit, monitoring, and financial reporting purposes. The Finance Director has conducted a review of current revenue documentation ...

Management has strengthened its recordkeeping practices to ensure that all revenues are fully supported by appropriate source documentation and are readily available for audit, monitoring, and financial reporting purposes. The Finance Director has conducted a review of current revenue documentation procedures to identify any gaps in record retention and establish standardized filing requirements for all revenue sources, including tenant rent, HUD operating subsidies, Capital Fund reimbursements, Housing Assistance Payments (HAP), administrative fees, miscellaneous income, grant revenues, and other receipts. Where documentation is incomplete, management has made reasonable efforts to obtain or recreate supporting records from available internal and external sources.

View Audit 406556

Finding 1223009 (2025-003)

Material Weakness 2025

Lee's Summit Housing Authority

MO

Internal Control / Segregation of Duties Questioned Costs

A review of financials determined that due to fraud bank accounts were closed and not correctly documented in the financials leading to a misstatement of assets. All accounts have been reviewed and adjusting entries made to correct prior deficienceis. LSHA has strengthened internal controls to preve...

A review of financials determined that due to fraud bank accounts were closed and not correctly documented in the financials leading to a misstatement of assets. All accounts have been reviewed and adjusting entries made to correct prior deficienceis. LSHA has strengthened internal controls to prevent future discrepencies and has implemented a formal cash reconciliation procedure requiring all bank accounts to be reconciled following the end of each month. Each reconiciliation includes verification that the adjusted bank balance agrees to the general ledger cash balance, documentation of all outstanding reconciling items, and timely resolution of any differences identified.

View Audit 406556

Corrective Action Plans

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