Corrective Action Plans

Finding 528331 (2024-001)

Significant Deficiency 2024

NE

Reporting Internal Control / Segregation of Duties Significant Deficiency § 200.512

Panhandle Public Health District engaged with a firm demonstrating the capacity to perform PPHD's audit in time for the required submission deadline to the Federal Audit Clearing House. PPHD engaged HBE LLP from Lincoln, NE to conduct audits of Fiscal Year 2024, 2025, and 2026. Subsequent engagement...

Panhandle Public Health District engaged with a firm demonstrating the capacity to perform PPHD's audit in time for the required submission deadline to the Federal Audit Clearing House. PPHD engaged HBE LLP from Lincoln, NE to conduct audits of Fiscal Year 2024, 2025, and 2026. Subsequent engagement planning will prioritize timely repo11ing.

View Audit 346374

Finding 528298 (2024-002)

Significant Deficiency 2024

West Virginia Public Transit Association

WV

Reporting Internal Control / Segregation of Duties

CONTROLS OVER GRANT REPORTING Department of Health and Human Services 93.788 Management within West Virginia Public Transit Association appreciates and shares the auditors' concern with integrity as it relates to controls over grant reporting. The State Opioid Response Transportation Project Manage...

CONTROLS OVER GRANT REPORTING Department of Health and Human Services 93.788 Management within West Virginia Public Transit Association appreciates and shares the auditors' concern with integrity as it relates to controls over grant reporting. The State Opioid Response Transportation Project Manager will submit all future grant reports to a member of the West Virginia Public Transit Association Board. This approval will be documented in writing.

View Audit 346351

Finding 528296 (2024-001)

Significant Deficiency 2024

National Health Care for the Homeless Council, Inc.

TN

Period of Performance Reporting Significant Deficiency

Corrective Action: More than one person has been given access to the portal to upload financial reports in case of turnover or other unforeseen circumstances. Person Responsible: Melinda Graham, Director of Finance Timing for Implementation: Effective October 1, 2024

View Audit 346341

Finding 528263 (2024-004)

Material Weakness 2024

Housing Authority of the City of Newton, Kansas

KS

Special Tests & Provisions Eligibility HUD Housing Programs

Finding 2024 – 2004: Internal Control Structure While I reviewed files and rent collections throughout the year, I did not take the time to make a list of the files. Going forward, any file I conduct a review of will be listed in a excel spread.

View Audit 346293

Finding 528261 (2024-002)

None 2024

Housing Authority of the City of Newton, Kansas

KS

HUD Housing Programs Internal Control / Segregation of Duties Allowable Costs / Cost Principles

Finding 2024-002: Allowable Activities NHA Corrective Action: A new study has been completed by the administrative staff then reviewed by the fee accounting staff. The percentage of allocation has been adjusted according to the time spent on each program. With those results the percentages of t...

Finding 2024-002: Allowable Activities NHA Corrective Action: A new study has been completed by the administrative staff then reviewed by the fee accounting staff. The percentage of allocation has been adjusted according to the time spent on each program. With those results the percentages of the time allocation increased. The agency was transferring funds on a regular basis by the old percentage estimation which was less than the new time study percentage. The percentage of allocation was more than the estimation which then created a larger deficit of repayment. Now that the percentage has been determined the estimated amount will be more accurate percentages. It has been difficult to get financial statements in time to make a transfer of percentages for the exact amount. Going forward, the fee accounting firm will complete the monthly financial reports and will add a transmittal letter. Voucher program’s reimbursement of Public Housing Funds will be based on each month’s transmittal letter which will allow for exact reimbursement of prior month along with estimate of the current month. Allocated expenses once the financials are received from the fee accountant.

View Audit 346293

Finding 528259 (2024-002)

None 2024

Town of Arrowsic

ME

Internal Control / Segregation of Duties Subrecipient Monitoring

Finding: Reconciliation of the Town’s Accounting Records During the audit, we proposed 20 journal entries to be recorded by management of which 8 were material. Name of contact person responsible for corrective action: Eileen Bonine, Treasurer Anticipated completion date: June 30, 2025 Corrective Ac...

Finding: Reconciliation of the Town’s Accounting Records During the audit, we proposed 20 journal entries to be recorded by management of which 8 were material. Name of contact person responsible for corrective action: Eileen Bonine, Treasurer Anticipated completion date: June 30, 2025 Corrective Action Plan: This was mostly due to turnover of Town personnel and implementation of a new accounting software, which resulted in issues with beginning balances and reconciliation of accounts. Management realizes the importance of performing reconciliations and is in the process developing processes for future reconciliations

View Audit 346292

Finding 528258 (2024-001)

None 2024

Town of Arrowsic

ME

Internal Control / Segregation of Duties

Finding: Segregation of Duties The assignment of responsibilities to the Town’s General Fund accounting staff did not provide for optimum segregation of duties between those responsible for the custody of assets, authorization of transactions, and recording of accounting transactions. Name of contac...

Finding: Segregation of Duties The assignment of responsibilities to the Town’s General Fund accounting staff did not provide for optimum segregation of duties between those responsible for the custody of assets, authorization of transactions, and recording of accounting transactions. Name of contact person responsible for corrective action: Eileen Bonine, Treasurer Anticipated completion date: June 30, 2025 Corrective Action Plan: The Selectboard has been made aware of the deficiency in segregation of duties and is willing to accept the risk associated with the current delegation of duties. The Treasurer reconciles the bank statements and prepares a financial report for review by the Selectboard at regular monthly meetings.

View Audit 346292

Finding 528252 (2024-001)

Material Weakness 2024

Sylvan Heights Science Charter School

PA

Internal Control / Segregation of Duties Reporting

The School had established processes to ensure the accuracy of required reports. For the PDE Reconciliation of Cash on Hand Quarterly Reports, all filings were reviewed with management immediately following submission. Given the low risk of material misstatement associated with these reports, the ex...

The School had established processes to ensure the accuracy of required reports. For the PDE Reconciliation of Cash on Hand Quarterly Reports, all filings were reviewed with management immediately following submission. Given the low risk of material misstatement associated with these reports, the existing procedures were effective in ensuring compliance. For the annual report, management conducted all reviews, discussions and approvals prior to submission; however, the review process was not formally documented. To strengthen internal controls, the School will implement a process to ensure that all reviews and approvals are documented in advance of submission. This will provide clear evidence of oversight while maintaining the efficiency of the reporting process. This is further evidenced by the Principal/CAO providing documented approval of the most recent report submission.

View Audit 346288

Finding 528203 (2024-001)

Significant Deficiency 2024

Glendale Union High School District No. 205

AZ

Reporting Significant Deficiency Internal Control / Segregation of Duties § 200.303

Annual Reporting for ESSER ‐ District Annual Report for ESSER FTE was keyed incorrectly 1. District will assign Business Manager and CFO to verify and review reports prior to submission.

View Audit 346267

Finding 528201 (2024-003)

Material Weakness 2024

West River Area Health Education Center

SD

Internal Control / Segregation of Duties Allowable Costs / Cost Principles Matching / Level of Effort / Earmarking

Finding No. 2024-003: Compliance Controls Responsible Individuals: Stephanie Mayfield, Executive Director Corrective Action Plan: The Organization is continuing to evaluate its internal control systems to ensure proper segregation of duties surrounding various compliance requirements with grant prog...

Finding No. 2024-003: Compliance Controls Responsible Individuals: Stephanie Mayfield, Executive Director Corrective Action Plan: The Organization is continuing to evaluate its internal control systems to ensure proper segregation of duties surrounding various compliance requirements with grant programs. The Organization cancelled contracts with grant partners that refused to comply with eligibility internal control processes. Additionally, the Organization purchased grant tracking software to track participant data including eligibility and tuition and stipend payments. Anticipated Completion Date: June 30, 2025

View Audit 346262

Finding 528190 (2024-001)

Significant Deficiency 2024

Housing Authority of the City of Brownsville

TX

Questioned Costs HUD Housing Programs Eligibility

Views of responsible officials and planned corrective action: The Authority accepts the recommendation of the auditor on the inspection of tenant files and has made arrangements to comply with the Section 8 Housing Choice Vouchers program. Leticia Gonzalez, Director of Client Services, will be respo...

Views of responsible officials and planned corrective action: The Authority accepts the recommendation of the auditor on the inspection of tenant files and has made arrangements to comply with the Section 8 Housing Choice Vouchers program. Leticia Gonzalez, Director of Client Services, will be responsible to implement this corrective action by June 30, 2025.

View Audit 346245 Questioned Costs: $1

Finding 528184 (2024-001)

Significant Deficiency 2024

Workforce Investment Council of Clackamas County Dba Clackamas Workfor

OR

Allowable Costs / Cost Principles Significant Deficiency Internal Control / Segregation of Duties

Condition: While performing audit procedures over payroll disbursements, we identified three separate instances where the allocation of an employee’s hours by grant in the monthly timesheet distribution spreadsheet was not consistent with the actual time charged to the respective grants as reflected...

Condition: While performing audit procedures over payroll disbursements, we identified three separate instances where the allocation of an employee’s hours by grant in the monthly timesheet distribution spreadsheet was not consistent with the actual time charged to the respective grants as reflected in the employee’s approved timesheet for the pay period. As a result, the payroll allocation journal entries recorded for those months was not consistent with the actual work performed for each grant. Cause of Condition: Internal controls in place are not adequately designed and implemented to ensure payroll allocation journal entries are determined based on actual hours worked on the employees’ timesheets for the respective pay periods. Corrective Plan: CWP will separate duties. The error occurred at the beginning of the payroll process while entering hours from the timesheets. The Executive Assistant will enter hours from the timesheets into the distribution spreadsheet. The Fiscal Manager will review and signoff the data entered. Implementation Date: February 1, 2025 Responsible Staff: Laura Kropf, Fiscal Manager

View Audit 346243

Finding 528181 (2024-001)

Significant Deficiency 2024

Decorah Community School District

IA

Internal Control / Segregation of Duties

Management is cognizant of this limitation and will implement additional procedures where possible.

View Audit 346240

Finding 528180 (2024-002)

Significant Deficiency 2024

Housing Authority of the City of Allentown

PA

Questioned Costs HUD Housing Programs Eligibility

Finding 2024-002: Federal Agency: U.S. Department of Housing and Urban Development Federal Program Titles: Section 8 Housing Choice Vouchers Program Federal Catalog Numbers: 14.871 Noncompliance – E. Eligibility – Tenant Files Non Compliance Material to the Financial Statements: No Significant Defi...

Finding 2024-002: Federal Agency: U.S. Department of Housing and Urban Development Federal Program Titles: Section 8 Housing Choice Vouchers Program Federal Catalog Numbers: 14.871 Noncompliance – E. Eligibility – Tenant Files Non Compliance Material to the Financial Statements: No Significant Deficiency in Internal Control over Compliance for Eligibility Criteria: Tenant Files. The PHA must do the following: As a condition of admission or continued occupancy, require the tenant and other family member to provide necessary information, documentation, and releases for the PHA to verify income eligibility (24 CFR sections 5.230, 5.609, and 982.516). These files are required to be maintained and available for examination at the time of audit. Condition: Based upon inspection of the Authority’s files and on discussion with management, there were documents that were unavailable for examination at the time of audit. Context: There are approximately 1,634 units. Of a sample size of twenty-nine (29) tenant files, the following was noted: • Verification of income was missing in 1 file • Lead based paint form was missing in 1 file Our sample size is statistically valid. Known Questioned Costs: $8,500 Cause: There is a significant deficiency in internal controls over the compliance for the eligibility type of compliance related to the maintenance of tenant files. The Authority has not properly considered, designed, implemented, maintained and monitored a system of internal controls that assures the program is in compliance. Effect: The Section 8 Housing Choice Vouchers Program is in non-compliance with the eligibility type of compliance related to the maintenance of tenant files. Recommendation: We recommend the Authority design and implement internal control procedures that will assure compliance with the Uniform Guidance and the compliance supplement. Views of responsible officials and planned corrective action: The Authority accepts the recommendation of the auditor. The affected files relate to clients that have been on the program for decades and as files get large, archiving takes place. To correct this finding, a directive will be issued to staff that will ensure that when files are archived the original application must be placed in the current working file going forward. Julio Guridy, Executive Director, will be responsible to implement this corrective action by June 30, 2025.

View Audit 346230 Questioned Costs: $1

Finding 528161 (2024-003)

Material Weakness 2024

Metropolitan School District of Boone Township

IN

School Nutrition Programs Internal Control / Segregation of Duties Eligibility § 200.303

Finding 2024-003 Finding Subject: Child Nutrition Cluster - Eligibility Contact Person Responsible for Corrective Action: Kelsey Rodriguez and Beverly Hindes Contact Phone Number: 574-229-2209 and 219-996-4771 x128 Views of Responsible Officials: We agree with the finding. Description of Corrective ...

Finding 2024-003 Finding Subject: Child Nutrition Cluster - Eligibility Contact Person Responsible for Corrective Action: Kelsey Rodriguez and Beverly Hindes Contact Phone Number: 574-229-2209 and 219-996-4771 x128 Views of Responsible Officials: We agree with the finding. Description of Corrective Action Plan: The Treasurer will ensure compliance with the Food Service Director (NIESC) Kelsey Rodriguez, with the student determination guidelines to receive free or reduced priced meals. The designee will review and sign off. Additionally, all documentation will be maintained. Anticipated Completion Date: March 31, 2025

View Audit 346211

Finding 528145 (2024-004)

Material Weakness 2024

Clay Community Schools

IN

Reporting Internal Control / Segregation of Duties Subrecipient Monitoring § 200.303

FINDING 2024-004 Finding Subject: COVID-19 – Education Stabilization Fund - Reporting Summary of Finding: The school corporation had not designed or implemented a system of internal controls to ensure that the Elementary and Secondary School Emergency Relief (ESSER) annual data reports (Reports) wer...

FINDING 2024-004 Finding Subject: COVID-19 – Education Stabilization Fund - Reporting Summary of Finding: The school corporation had not designed or implemented a system of internal controls to ensure that the Elementary and Secondary School Emergency Relief (ESSER) annual data reports (Reports) were complete and accurately submitted. The reports were prepared by the Director of Business Affairs without a documented oversight, review or approval process in place to prevent, or detect and correct, errors. It is recommended that the school corporation’s management establish internal controls to ensure compliance with the grant agreement and Reporting compliance requirement. Any and all future ESSER reports submitted in Jotform should document an oversight, review or approval process by someone other than the Director of Business Affairs. Contact Person Responsible for Corrective Action: John Szabo, Director of Business Affairs Contact Phone Number and Email Address: (812) 443-4461 / szaboj@clay.k12.in.us Views of Responsible Officials: We concur with the finding. Description of Corrective Action Plan: When completing data reporting, as requested by the state, for federally funded emergency relief grant funding, the Director of Business Affairs will compile the data necessary to complete the reporting. The data will then be presented to the appropriate member of corporation management for review – data related to student enrollment, eligibility, or other information will be presented to the corporation Data Coordinator. Data related to employee positions, or other employment related data, will be presented to the Director of Human Resources. All other data, including but not limited to corporation financial data, will be presented to the Assistant Superintendent. Anticipated Completion Date: Immediately, upon next required data submission for Education Stabilization Fund reporting.

View Audit 346210

Finding 528141 (2024-003)

Material Weakness 2024

Clay Community Schools

IN

Special Tests & Provisions Subrecipient Monitoring Material Weakness § 200.303

FINDING 2024-003 Finding Subject: Title I Grants to Local Educational Agencies – Special Tests & Provisions – Supplement Not Supplant Summary of Finding: During the Audit period, there were three Title I applications. One of the three applicable grant year applications included information in the su...

FINDING 2024-003 Finding Subject: Title I Grants to Local Educational Agencies – Special Tests & Provisions – Supplement Not Supplant Summary of Finding: During the Audit period, there were three Title I applications. One of the three applicable grant year applications included information in the supplement, not supplant section. The other two applications were blank for this section. Documentation of the calculations and per pupil expenditure comparisons were not provided for the audit. Additionally, the Indiana Department of Education (IDOE) monitors compliance with this requirement using Comparability Reports, which compare Full-Time Equivalent (FTE) staff positions for Title I schools to FTE staff positions for non-Title I schools within the school corporation. Although IDOE determined that FTE staff positions were comparable in the 2022, 2023, and 2024 Comparability reports, the school corporation was unable to provide supporting documentation for the FTE staff numbers reported to IDOE. It is recommended that the school corporation adopt and document an acceptable methodology to allocate State and local funds to schools. In addition, it is recommended the calculation of such methodology and any other supporting documentation be retained for audit. Contact Person Responsible for Corrective Action: John Szabo, Director of Business Affairs Contact Phone Number and Email Address: (812) 443-4461 / szaboj@clay.k12.in.us Views of Responsible Officials: We concur with the finding Description of Corrective Action Plan: Title I Grant Coordinator, currently Dr. Brady Scott, will monitor this requirement using Comparability reports, as an option considered by the Indiana Department of Education (IDOE). In doing so, the Grant Coordinator will complete a list of FTE staff positions for each Title I school, as well as non-Title I school according to the methodology designed for school corporations as communicated by the IDOE. The Grant Coordinator will confer with the corporation Payroll Specialist (currently Mary Mershon) to ensure accuracy of the data used to complete the reporting, and both the Grant Coordinator and the Director of Business Affairs will maintain a record of the data used to complete the report. Anticipated Completion Date: July 2025

View Audit 346210

Finding 528139 (2024-001)

Material Weakness 2024

Clay Community Schools

IN

Internal Control / Segregation of Duties Subrecipient Monitoring Eligibility § 200.303

FINDING 2024-001 Finding Subject: Title I Grants to Local Educational Agencies - Eligibility Summary of Finding: The school corporation did not have a documented oversight, review, or approval process in place to ensure the accuracy of enrollment and poverty data in the Eligible School Summary porti...

FINDING 2024-001 Finding Subject: Title I Grants to Local Educational Agencies - Eligibility Summary of Finding: The school corporation did not have a documented oversight, review, or approval process in place to ensure the accuracy of enrollment and poverty data in the Eligible School Summary portion of the Title I application, which is how Title I funding is determined. It is recommended that the school corporation’s management strengthen its system of internal controls to ensure that data in the Eligible School Summary section of the Title I application has been verified for accuracy to the corresponding period’s Pupil Enrollment (PE) report data. Contact Person Responsible for Corrective Action: John Szabo, Director of Business Affairs Contact Phone Number and Email Address: (812) 443-4461 / szaboj@clay.k12.in.us Views of Responsible Officials: We concur with the finding. Description of Corrective Action Plan: Real time reporting will be compiled by the Data Management Specialist (currently Stephanie Jackson) and will be reviewed by the Title I Grant Coordinator (currently Dr. Brady Scott). Annual Financial reports will be compiled by the Director of Business Affairs (currently John Szabo), and prior to submission those reports will be reviewed by the Title I Grant Coordinator. Anticipated Completion Date: July 2025

View Audit 346210

Finding 528137 (2024-001)

Significant Deficiency 2024

Menomonie Housing Authority

WI

Internal Control / Segregation of Duties Reporting

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 346209

Finding 528134 (2024-002)

Significant Deficiency 2024

Williamsburg Area Improved Dwellings, Inc.

PA

Allowable Costs / Cost Principles Internal Control / Segregation of Duties

2024-002 Inadequate Documentation of the Components of Internal Control Corrective Action Plan WAID management will consider documenting its policies and procedures in the event duties need to be transitioned. Responsible Party: Michelle Ross, Manager: (814) 832-3212 Anticipated Completion Date: Jun...

2024-002 Inadequate Documentation of the Components of Internal Control Corrective Action Plan WAID management will consider documenting its policies and procedures in the event duties need to be transitioned. Responsible Party: Michelle Ross, Manager: (814) 832-3212 Anticipated Completion Date: June 30, 2025

View Audit 346200

Finding 528133 (2024-001)

Significant Deficiency 2024

Williamsburg Area Improved Dwellings, Inc.

PA

Internal Control / Segregation of Duties

2024-001 Segregation of Duties Corrective Action Plan Compensating controls are believed to be in place to effectively mitigate risks involved with cash disbursements. WAID will also consider compensating controls to effectively mitigate the risks surrounding cash receipts and cash management. These...

2024-001 Segregation of Duties Corrective Action Plan Compensating controls are believed to be in place to effectively mitigate risks involved with cash disbursements. WAID will also consider compensating controls to effectively mitigate the risks surrounding cash receipts and cash management. These controls will include: • The review and reconciliation of monthly cash receipts to the bank statements by a member of the Board. Responsible Party; Michelle Ross, Manager: (814) 832-3212 Anticipated Completion Date: Corrective Action Plan is in place but the mitigating control does not solve the segregation of duties issue. -

View Audit 346200

Finding 527045 (2024-001)

Significant Deficiency 2024

Shawano Housing Authority

WI

Internal Control / Segregation of Duties Reporting

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.

View Audit 346137

Finding 527043 (2024-002)

Significant Deficiency 2024

Oak Ridge Housing Authority

TN

HUD Housing Programs Cash Management Significant Deficiency

2024-002 Utilities Allowance Calculation ORHA management is in agreement with this finding that multiple HUD Forms 50058 had utility allowances calculated not in accordance with HUD regulations. ORHA experienced a complete staff turnover in the Section 8/HCV department in 2023 and was without full s...

2024-002 Utilities Allowance Calculation ORHA management is in agreement with this finding that multiple HUD Forms 50058 had utility allowances calculated not in accordance with HUD regulations. ORHA experienced a complete staff turnover in the Section 8/HCV department in 2023 and was without full staff capacity for most of 2024. During that time frame it was determined that utility allowances were not entered correctly into the housing software. By September 30, 2025, and internal audit of all tenant files will be completed to review utility allowance calculations and correct if necessary. ORHA management commits to accurate utility allowance calculations moving forward. Housing Choice Voucher Director, Alistair Blair, will be responsible for ensuring the utility allowance review and corrections are made.

View Audit 346128

Finding 527042 (2024-001)

Significant Deficiency 2024

Oak Ridge Housing Authority

TN

HUD Housing Programs Internal Control / Segregation of Duties Special Tests & Provisions

2024-001 Housing Quality Standards Inspection/HQS Enforcement: ORHA management is in agreement with this finding. There were transitions in Housing Qaulity Standards to INSPIRE regulations and the appropriate regulations in place at the time were not followed. ORHA staff will recieve training in the...

2024-001 Housing Quality Standards Inspection/HQS Enforcement: ORHA management is in agreement with this finding. There were transitions in Housing Qaulity Standards to INSPIRE regulations and the appropriate regulations in place at the time were not followed. ORHA staff will recieve training in the new INSPIRE regulations to ensure that all life- threatening items are addressed with the 24-hr period. All training will be completed by the end of the first quarter of 2025. ORHA management commits to life-threatening items being addressed with the 24- hr period moving froward, Executive Director, Maria Catron, will be responsible for ensuring staff is up to date on current INSPIRE training.

View Audit 346128

Finding 527036 (2024-001)

Significant Deficiency 2024

Postville Community School District

IA

Internal Control / Segregation of Duties

Internal control deficiencies: See Finding 2024-001 Recommendation: The District should review the operating procedures of the District offices to obtain the maximum internal control possible under the circumstances utilizing currently available staff. While we do recognize that the District is n...

Internal control deficiencies: See Finding 2024-001 Recommendation: The District should review the operating procedures of the District offices to obtain the maximum internal control possible under the circumstances utilizing currently available staff. While we do recognize that the District is not large enough to permit a segregation of duties for effective internal controls, we believe it is important the Board be aware that this condition does exist. Action Taken: Management is cognizant of this limitation and will implement additional procedures where possible.

View Audit 346119

Corrective Action Plans

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