Corrective Action Plans

Finding 503381 (2024-001)

Significant Deficiency 2024

MI

Internal Control / Segregation of Duties HUD Housing Programs Reporting

Condition: The Organization failed to maintain the proper EIV documentation Planned Corrective Action: Management has acknowledges the significant deficiency in internal control over compliance and has taken measures to improve internal control over compliance by ensuring EIV system will be properl...

Condition: The Organization failed to maintain the proper EIV documentation Planned Corrective Action: Management has acknowledges the significant deficiency in internal control over compliance and has taken measures to improve internal control over compliance by ensuring EIV system will be properly utilized. Contact person responsible for corrective action: Bruce Blalock Anticipated Completion Date: 12/31/24

View Audit 325542

Finding 503379 (2024-300)

Significant Deficiency 2024

Rivertown Neighborhood Senior Dba Rivertown Senior Apts. 044-Ee112

MI

Internal Control / Segregation of Duties HUD Housing Programs Reporting

Condition: The Organization failed to maintain the proper EIV documentation Planned Corrective Action: Management has acknowledges the significant deficiency in internal control over compliance and has taken measures to improve internal control over compliance by ensuring EIV system will be properl...

Condition: The Organization failed to maintain the proper EIV documentation Planned Corrective Action: Management has acknowledges the significant deficiency in internal control over compliance and has taken measures to improve internal control over compliance by ensuring EIV system will be properly utilized. Contact person responsible for corrective action: Bruce Blalock Anticipated Completion Date: 12/31/24

View Audit 325539

Finding 503378 (2024-002)

None 2024

Virginia Street Baptist Church

IN

Internal Control / Segregation of Duties

The Project implemented a new system in place to ensure tenant rent is collected within 30 days.

View Audit 325537

Finding 503368 (2024-001)

Significant Deficiency 2024

Warner Pacific University

OR

Student Financial Aid Subrecipient Monitoring Significant Deficiency

Student Financial Assistance Cluster – Assistance Listing No. Various Recommendation: We recommend that the University review the updated GLBA requirements and ensure their WISP includes all required elements and is formally implemented. Explanation of disagreement with audit finding: There is no di...

Student Financial Assistance Cluster – Assistance Listing No. Various Recommendation: We recommend that the University review the updated GLBA requirements and ensure their WISP includes all required elements and is formally implemented. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: The currently-implemented IT procedures were documented in a written information security program (WISP). However, they had not been reviewed and approved during the year of the audit. A penetration test was completed in the Spring of 2024. The penetration testers were unable to gain access to any of the University’s information systems. A risk assessment and vulnerability assessment are scheduled to be completed before April 30, 2025. These actions should correct all significant deficiencies identified in section 2024-001. Name of the contact person responsible for corrective action: Douglas Wade, Executive Vice President and CFO Warner Pacific University 2219 SE 68th Ave Portland OR 97215 dswade@warnerpacific.edu Office Phone 503-517-1043 Cell Phone 661-706-8379 Planned completion date for corrective action plan: April 30, 2025

View Audit 325532

Finding 503329 (2024-002)

Significant Deficiency 2024

Global Learning Public Charter School

MA

Internal Control / Segregation of Duties

The Global Learning Charter Public School Administration and Board of Trustees acknowledge that the limitations present with the segregation of financial duties are the direct result of the size of the school’s financial operation. The change in management roles towards the end of FY24 has removed ...

The Global Learning Charter Public School Administration and Board of Trustees acknowledge that the limitations present with the segregation of financial duties are the direct result of the size of the school’s financial operation. The change in management roles towards the end of FY24 has removed the conflict of interest that had been present in years past and has allowed us to implement additional controls aimed at improving oversight in response to this finding. GLCPS will continue evaluating these procedures and implementing changes as recommended. The Global Learning Charter Public School Administration will continue to review policies and procedures to ensure compliance with federal guidelines.

View Audit 325492

Finding 503282 (2024-001)

Significant Deficiency 2024

Greenville Public Schools

MI

School Nutrition Programs Internal Control / Segregation of Duties Cash Management

Finding Number: 2024-001. Responsible Person:Daniel Kuk, Food Service Director. Management View: Management agrees with the finding and is in the process of implementing the recommendation. Corrective Action: The District has already changed its meal reimbursement process to use data from Meal Magic...

Finding Number: 2024-001. Responsible Person:Daniel Kuk, Food Service Director. Management View: Management agrees with the finding and is in the process of implementing the recommendation. Corrective Action: The District has already changed its meal reimbursement process to use data from Meal Magic to submit the meal claim reports. Anticipated Completion Date: Immediate Implementation.

View Audit 325375

Finding 503280 (2024-001)

Significant Deficiency 2024

Essex Properties Urban Renewal Associates

NJ

HUD Housing Programs Subrecipient Monitoring Significant Deficiency

2024-001 Underfunding of the replacement reserve account. Recommendation: The Project should review its budgeting process to ensure compliance with HUD funding requirements for the replacement reserve account. Additionality, they should implement regular monitoring to prevent future underfunding. Ex...

2024-001 Underfunding of the replacement reserve account. Recommendation: The Project should review its budgeting process to ensure compliance with HUD funding requirements for the replacement reserve account. Additionality, they should implement regular monitoring to prevent future underfunding. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: In July 2024 management identified the increase in monthly deposits and made a deposit in July 2024 to the replacement reserve cash account for the deficiency. Name(s) of the contact person(s) responsible for corrective action: David Bishop, CEO and President Planned completion date for corrective action plan: July 2024. If the U.S. Department of Housing and Urban Development has questions regarding this plan, please call David Bishop at 973-763-9900.

View Audit 325374

Finding 503253 (2024-004)

Significant Deficiency 2024

Sebeka Public Schools

MN

Reporting Internal Control / Segregation of Duties Cash Management

2024-004 FINDING Contact Person – Dave Kerkvliet, Superintendent Corrective Action Plan – The District will begin reviewing and approving reports prior to submission for reimbursement. Completion Date – November 1, 2024

View Audit 325307

Finding 503251 (2024-003)

Significant Deficiency 2024

Sebeka Public Schools

MN

Allowable Costs / Cost Principles Internal Control / Segregation of Duties

2024-003 FINDING Contact Person – Dave Kerkvliet, Superintendent Corrective Action Plan – The District will implement policies and procedures to ensure all timecards are approved before payroll is processed. Completion Date – November 1, 2024

View Audit 325307

Finding 503210 (2024-001)

Significant Deficiency 2024

Rockton School District No. 140

IL

Internal Control / Segregation of Duties

The District will continue procedures to provide oversight to the bookkeeper and treasurer positions, including oversight of bank reconciliations.

View Audit 325288

Finding 503180 (2024-001)

Significant Deficiency 2024

South Pointe Phase Ii, Inc.

LA

HUD Housing Programs Reporting Internal Control / Segregation of Duties

Deposits to the replacement reserve accounts are set up to automatically debit the operating account and credit the replacement reserve account. In July, 2023, this transfer was completed in the amount of $1,200.00. However, due to a system glitch, South Pointe II did not receive their July HAP pa...

Deposits to the replacement reserve accounts are set up to automatically debit the operating account and credit the replacement reserve account. In July, 2023, this transfer was completed in the amount of $1,200.00. However, due to a system glitch, South Pointe II did not receive their July HAP payment from HUD. This resulted in funds not being sufficient for the replacement reserve transfer and the bank reversed the transfer making it appear that we withdrew money. We did not authorize a withdrawal of funds from the replacement reserve account.

View Audit 325250

Finding 503179 (2024-001)

Significant Deficiency 2024

Passman Plaza Ii, Inc.

LA

HUD Housing Programs Reporting Internal Control / Segregation of Duties

An approval from HUD to withdraw funds from the replacement reserve account was processed twice in error. This was discovered when the bank reconciliation was done and immediately, the funds were returned to the replacement reserve account. At no time did the replacement reserve account fall under...

An approval from HUD to withdraw funds from the replacement reserve account was processed twice in error. This was discovered when the bank reconciliation was done and immediately, the funds were returned to the replacement reserve account. At no time did the replacement reserve account fall under the required balance.

View Audit 325249

Finding 503178 (2024-001)

Significant Deficiency 2024

Ouachita Grand Plaza, Inc.

LA

HUD Housing Programs Procurement, Suspension & Debarment Reporting

Replacement Reserves are held in escrow by the mortgage company. When we receive approval for withdrawal from HUD, that approval is forwarded to the mortgage company by email. Only one email was sent requesting funds of $34,996. The mortgage company processed this request twice. Ouachita Grand P...

Replacement Reserves are held in escrow by the mortgage company. When we receive approval for withdrawal from HUD, that approval is forwarded to the mortgage company by email. Only one email was sent requesting funds of $34,996. The mortgage company processed this request twice. Ouachita Grand Plaza remitted a check back to the mortgage company for the duplicate disbursement.

View Audit 325248

Finding 503162 (2024-001)

Significant Deficiency 2024

Renaissance Court, INC

OR

HUD Housing Programs Eligibility Significant Deficiency

Renaissance Court respectfully submits the following corrective action plan for the year ended June 30, 2025. Name & address of public accounting firm: Kernutt Stokes 1600 Executive Parkway, Suite 110 Eugene OR 97401 Audit Period: June 30, 2024 Major Federal Award Findings: Finding R...

Renaissance Court respectfully submits the following corrective action plan for the year ended June 30, 2025. Name & address of public accounting firm: Kernutt Stokes 1600 Executive Parkway, Suite 110 Eugene OR 97401 Audit Period: June 30, 2024 Major Federal Award Findings: Finding Reference #: 2024-001 Significant deficiency Recommendation: We recommend management design and implement internal controls over compliance to ensure tenant recertification is performed within the timeframe specified by HUD. Corrective Action: Renaissance Court has contracted with a new property management company, effective April 1, 2024. Due to the transition, certain tenant recertifications were completed late. Management will work with Guardian Management to improve the procedures and ensure tenant recertifications are completed in a timely manner, as specified by HUD. Questions regarding this corrective action plan may be directed to Marci Pierce, Chief Financial and Administrative Officer, at (503) 688-2646.

View Audit 325204

Finding 503152 (2024-003)

Significant Deficiency 2024

Hill Top Home of Comfort, Inc.

ND

Special Tests & Provisions Significant Deficiency Matching / Level of Effort / Earmarking § 200.303

Finding 2024-003 Federal Agency Name: Department of Agriculture Program Name: Community Facilities Loans andGrants CFDA #10.766 Finding Summary: There was no formal review separate from the preparer performed over reconciliations of the USDA program reserve fund. Responsible Individuals: Gerry Le...

Finding 2024-003 Federal Agency Name: Department of Agriculture Program Name: Community Facilities Loans andGrants CFDA #10.766 Finding Summary: There was no formal review separate from the preparer performed over reconciliations of the USDA program reserve fund. Responsible Individuals: Gerry Leadbetter, Administrator Corrective Action Plan: Management will ensure a review separate from the preparer of the reconciliation for the program's reserve fund is completed with formal documentation noting the review. The Business Office Manager will reconcile the bank statement and will sign off on the bank statement, along with the Administrator for the USDA Loan Reserve Bank Account. Anticipated Completion Date: Ongoing

View Audit 325174

Finding 503110 (2024-001)

Significant Deficiency 2024

Saint Martin's University

WA

Student Financial Aid Significant Deficiency Matching / Level of Effort / Earmarking

Gramm-Leach-Bliley Act – Student Information Security – Significant Deficiency in Internal Controls over Compliance – Federal Assistance Listing Number 84.063, 84.268, 84.007, 84.033, 84.379, 84.038 Recommendation: The auditors recommend the University review the compliance requirements and update o...

Gramm-Leach-Bliley Act – Student Information Security – Significant Deficiency in Internal Controls over Compliance – Federal Assistance Listing Number 84.063, 84.268, 84.007, 84.033, 84.379, 84.038 Recommendation: The auditors recommend the University review the compliance requirements and update our written policy to ensure that it addresses all the required elements. Action taken: The CIO, Mary Donahoo, worked in conjunction with prior CFO to create a timeline for implementation for the requirements of GLBA. The Information Technology Services (ITS) department had begun policy development pertaining to the Gramm-Leach- Bliley Act (GLBA) specific elements in 16 CFR 314.4 during fiscal year 2024 but was unable to complete all the required implementations. The ITS department implemented, during fiscal year 2024, improvements to cyber security and minor elements of GLBA, including multifactor authentication. The action plan anticipates completion of all elements of GLBA by the end of the calendar year. Name of Responsible Party: Mary Donahoo Anticipated completion date: 12/31/2024

View Audit 325123

Finding 503064 (2023-002)

Significant Deficiency 2024

Township of Pointe Aux Barques

MI

Significant Deficiency Internal Control / Segregation of Duties

Findings 2023-001 & 2023-002 Considered a significant deficiency Recommendation: It is recommended that the Township acquire the expertise necessary to complete the year-end accounting procedures, to prepare the Township’s accounting records needed for the audit, and to prepare the annual financial ...

Findings 2023-001 & 2023-002 Considered a significant deficiency Recommendation: It is recommended that the Township acquire the expertise necessary to complete the year-end accounting procedures, to prepare the Township’s accounting records needed for the audit, and to prepare the annual financial statements including the required disclosures in accordance with U.S. generally accepted accounting principles. Action to be taken: We acknowledge these findings and agree that these recommendations would help strengthen internal controls. However, due to the cost of implementing these recommendations, we believe the cost of obtaining the necessary expertise would out-weigh the benefit. We will continue to request assistance from our financial statement auditors for these nonattest services.

View Audit 325037

Finding 503063 (2023-001)

Significant Deficiency 2024

Township of Pointe Aux Barques

MI

Reporting Significant Deficiency Internal Control / Segregation of Duties

Findings 2023-001 & 2023-002 Considered a significant deficiency Recommendation: It is recommended that the Township acquire the expertise necessary to complete the year-end accounting procedures, to prepare the Township’s accounting records needed for the audit, and to prepare the annual financial ...

Findings 2023-001 & 2023-002 Considered a significant deficiency Recommendation: It is recommended that the Township acquire the expertise necessary to complete the year-end accounting procedures, to prepare the Township’s accounting records needed for the audit, and to prepare the annual financial statements including the required disclosures in accordance with U.S. generally accepted accounting principles. Action to be taken: We acknowledge these findings and agree that these recommendations would help strengthen internal controls. However, due to the cost of implementing these recommendations, we believe the cost of obtaining the necessary expertise would out-weigh the benefit. We will continue to request assistance from our financial statement auditors for these nonattest services.

View Audit 325037

Finding 503000 (2024-001)

Significant Deficiency 2024

Thi-8 Hud Project No. 071-Hh010

IL

HUD Housing Programs Reporting Significant Deficiency

Finding Number: 2024-001 Condition: The Corporation withdrew a total of $44,190 from the replacement reserve account when only $22,095, representing the 50% deposit, was approved by HUD in advance of the withdrawal. The remaining $22,095 was withdrawn without obtaining approval from HUD in advance o...

Finding Number: 2024-001 Condition: The Corporation withdrew a total of $44,190 from the replacement reserve account when only $22,095, representing the 50% deposit, was approved by HUD in advance of the withdrawal. The remaining $22,095 was withdrawn without obtaining approval from HUD in advance of the second withdrawal. Planned Corrective Action: Management should obtain approval from HUD via form 9250 prior to withdrawing funds from the replacement reserve. Management added an additional level of control by requiring all nonrecurring THI-8 spending be approved by Manager of Real Estate Accounting prior to contract approval. Such approval will alert the manager to seek replacement reserve approval, where applicable. Contact person responsible for corrective action: Shijo Joseph, Manager of Real Estate Accounting Anticipated Completion Date: August 4, 2024

View Audit 324936

Finding 502907 (2024-001)

Significant Deficiency 2024

Montana Food Bank Network, Inc.

MT

Reporting Internal Control / Segregation of Duties

Action Taken: We concur with the recommendation, and it was implemented effective September 25, 2024.

View Audit 324871

Finding 502880 (2024-003)

Material Weakness 2024

Friendship Central School District

NY

Internal Control / Segregation of Duties

2024-003 – Adjusting Journal Entries, Required Disclosures and Draft Financial Statements ...

2024-003 – Adjusting Journal Entries, Required Disclosures and Draft Financial Statements Auditors' Recommendation: Although auditors may continue to provide such assistance both now and in the future, under the pronouncement, the District should continue to review and accept both proposed adjusting journal entries and footnote disclosures, along with the draft financial statements. School District’s Response: The District has received, reviewed and approved all journal entries, footnote disclosures and draft financial statements proposed for the current year audit and will continue to review similar information in future years. Further, the District believes it has a thorough understanding of these financial statements and the ability to make informed judgments based on these financial statements. Ms. Constance Spring (District Treasurer) will continue to review and approve the journal entries, footnote disclosures and draft financial statements for the year ending June 30, 2025.

View Audit 324835

Finding 502714 (2024-002)

Significant Deficiency 2024

Blair County Community Action Program

PA

Internal Control / Segregation of Duties

Corrective Action It was decided that we were going to use an external payroll service prior to the Finance Director leaving the agency. After multiple times of trying to work with the company for them to produce a correct general ledger for us, it was decided that we stop using the company. We on...

Corrective Action It was decided that we were going to use an external payroll service prior to the Finance Director leaving the agency. After multiple times of trying to work with the company for them to produce a correct general ledger for us, it was decided that we stop using the company. We only utilized the company for October, November, and December of 2023 and went back to completing payroll out of QuickBooks starting in January 2024. We are no longer entering the receivables until we receive the funds and invoices are paid upon receipt. Upong program/fiscal year end, invoices will be entered as bills appropriately. Agency Response Does the agency agree with the finding? -x-Yes --No Additional Comments N/A Agency Contact Responsible for Correction Action Name: Lisa Hann - Board President Address: 2301 Beale Ave Altoona, PA 16601 Phone Number: (814) 944-3583 Email: Ihann@familyservicesinc.net

View Audit 324780

Finding 502713 (2024-001)

Material Weakness 2024

Blair County Community Action Program

PA

Internal Control / Segregation of Duties

Corrective Action Measures were put into place to correct his mid fiscal year. The processes are as follows: Cash/checks coming into the agency go to the receptionist first who prepares a receipt, then to Amy to create the deposit slip and enter them into QuickBooks, then Jodi takes everything to t...

Corrective Action Measures were put into place to correct his mid fiscal year. The processes are as follows: Cash/checks coming into the agency go to the receptionist first who prepares a receipt, then to Amy to create the deposit slip and enter them into QuickBooks, then Jodi takes everything to the bank. For disbursemetns, Jodi approves/codes the inoices not coming from Weatherization, Mark approves invoices for Weatherization, Amy enters and prints the checks from QuickBooks, then Lisa and Jodi sign the checks. Agency Response Does the agency agree with the finding? -x-Yes --No Additional Comments N/A Agency Contact Responsible for Correction Action Name: Lisa Hann - Board President Address: 2301 Beale Ave Altoona, PA 16601 Phone Number: (814) 944-3583 Email: Ihann@familyservicesinc.net

View Audit 324780

Finding 502710 (2024-002)

Significant Deficiency 2024

Housing Authority of Burkesville

KY

HUD Housing Programs Internal Control / Segregation of Duties

Finding number 2023-002 When completing a lease up, we will start putting a copy of the waiting list in each tenant file.

View Audit 324761

Finding 502692 (2024-004)

Significant Deficiency 2024

Runestone Area Education District

MN

Period of Performance Significant Deficiency Internal Control / Segregation of Duties § 200.309

Finding 2024-004 Period of Performance Finding Summary: During the course of the engagement, one instance was noted of a fiscal year 2023 expenditure recorded during fiscal year 2024 and therefore not allowable under the terms of the grant. Responsible Individuals: Michelle Bethke-Kaliher, Director ...

Finding 2024-004 Period of Performance Finding Summary: During the course of the engagement, one instance was noted of a fiscal year 2023 expenditure recorded during fiscal year 2024 and therefore not allowable under the terms of the grant. Responsible Individuals: Michelle Bethke-Kaliher, Director Corrective Action Plan: A thorough review of expenditures should be performed to ensure expenditures are being properly recorded in the appropriate grant periods. Anticipated Completion Date: June 30, 2025

View Audit 324713

Corrective Action Plans

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