Corrective Action Plans

Finding 519071 (2023-005)

None 2023

TX

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

The Houston Housing Authority agrees with this finding. A review of existing procedures revealed that there were issues with the management of the waiting lists. The Houston Housing Authority is transitioning to a new software program during 2024. One of the reasons for the implantation of the new...

The Houston Housing Authority agrees with this finding. A review of existing procedures revealed that there were issues with the management of the waiting lists. The Houston Housing Authority is transitioning to a new software program during 2024. One of the reasons for the implantation of the new software is to make use of a better wait list management feature that is available within the new software. Waitlists have been reviewed and purged of stale an do dated information which will facilitate better management of the waitlist for future periods.

View Audit 337570

Finding 519070 (2023-002)

Material Weakness 2023

Houston Housing Authority

TX

HUD Housing Programs Eligibility Material Weakness

The Houston Housing Authority agrees with this finding. The Houston Housing Authority has for the past several months undertaken a program to review all voucher files for purposes of getting all delinquent recertifications completed. During this process if other required documents are found to be m...

The Houston Housing Authority agrees with this finding. The Houston Housing Authority has for the past several months undertaken a program to review all voucher files for purposes of getting all delinquent recertifications completed. During this process if other required documents are found to be missing steps are being taken to complete the missing documentation and make sure that the files are complete. This review is substantially completed with final completion expected during the final quarter of 2024. Procedures have been implemented with regards to preventing this situation from recurring. Where needed staff will be provided the necessary training to make sure that all HCVP staff have the skills needed to successfully complete their job tasks. To facilitate this training, the Houston Housing Authority has created a training center that is made available to not only Houston Housing Authority staff but also others to provide a wide variety of training classes. Current leadership at the Houston Housing Authority is committed to having a competent trained staff working in the HCVP as well as other departments with the agency. Because the file clean up work was being performed in calendar year 2024 we expected this finding would be present for the 2023 audit. This work is handled by the Voucher Program Operations department. The VP of this department and the Director of this department are primarily responsible for making sure the necessary corrections are made and the fill review is completed within the final quarter of 2024.

View Audit 337570

Finding 519069 (2023-001)

Material Weakness 2023

Houston Housing Authority

TX

Internal Control / Segregation of Duties HUD Housing Programs Material Weakness

The Houston Housing Authority agrees with this finding and related recommendations. During this audit, as these issues arose, notes were taken, evaluation of what had happened was made so that we could make the necessary adjustments to our procedures to prevent the continuation of these issues. In a...

The Houston Housing Authority agrees with this finding and related recommendations. During this audit, as these issues arose, notes were taken, evaluation of what had happened was made so that we could make the necessary adjustments to our procedures to prevent the continuation of these issues. In addition, we hired a firm to come in and undertake a review of the finance department. The purpose of this review was to review our existing staffing levels, workloads, experience, etc., for purposes of proposing a reorganization of the finance department to address any deficiencies. We have reviewed the recommendations from this consultant and are in the process of implementing many of the recommended changes. We are in the process of bringing in additional staff to expand the capacity of the Finance department. As we had fallen behind on our audits we anticipated the weaknesses noted in prior audits would continue to be present in future audits including the 2023 audit. We have been working very diligently to address the issues within the finance department that gave rise to this finding. We fully expected this finding or a similar finding to be present for the 2023 audit as many of the departmental improvements and changes were not in place during the 2023 calendar year. We have also been somewhat limited in the time available to implement changes as we have been working on clearing up the prior audit delinquencies since hiring out new outside auditors. This will be the first time in years where we will have a prior year audit available to us prior to the end of the current year. We will be able to have any 2023 audit adjustments posted to the general ledger prior to yearend 2024 so many of the reconciliation issues that have been encountered on the prior audits are not expected to be present when we move into the 2024 audit. The VP Fiscal and Business Operations as well as the Director of Finance are responsible for implementing the necessary process and procedural changes to eliminate the need for this type of finding for the 2024 audit.

View Audit 337570

Finding 519041 (2023-008)

Significant Deficiency 2023

MacOn and Piatt Counties Regional Office of Education No. 39

IL

Internal Control / Segregation of Duties Subrecipient Monitoring Reporting § 200.303 § 200.512

CONDITION: The Regional Office of Education No. 39 was required to submit its June 30, 2022, data collection form and related reporting package to the Federal Audit Clearinghouse by March 31, 2023; however, it was not submitted until January 3, 2024, resulting in a delay of 278 days. PLAN: The new ...

CONDITION: The Regional Office of Education No. 39 was required to submit its June 30, 2022, data collection form and related reporting package to the Federal Audit Clearinghouse by March 31, 2023; however, it was not submitted until January 3, 2024, resulting in a delay of 278 days. PLAN: The new ROE Business Office Manager will work closely with their contracted accounting firm to ensure that the office gets back on schedule with the yearly audit deadlines. Because the audit for FY22 was not completed until January 2024 the Federal Audit Clearinghouse could not be submitted until that time. The FY24 financial statements are scheduled to be provided in January 2025 so that the office can get back on schedule for the FY25 audit deadline of August 31, 2025 and therefore the March 31, 2026 Federal Audit Clearinghouse deadline. ANTICIPATED DATE OF COMPLETION: The anticipated date of completion is December 2025. CONTACT PERSON: Jill Reedy, Regional Superintendent

View Audit 337563

Finding 519040 (2023-007)

Significant Deficiency 2023

MacOn and Piatt Counties Regional Office of Education No. 39

IL

Reporting Internal Control / Segregation of Duties § 200.303 § 200.510

CONDITION: The Regional Office of Education No. 39 did not have sufficient internal controls over the preparation of the SEFA to ensure all federal expenditures during the fiscal year were reported and information in the SEFA was accurately reported. PLAN: The ROE will implement controls over finan...

CONDITION: The Regional Office of Education No. 39 did not have sufficient internal controls over the preparation of the SEFA to ensure all federal expenditures during the fiscal year were reported and information in the SEFA was accurately reported. PLAN: The ROE will implement controls over financial statements for both the internal Business Office Manager and the contracted accounting firm to prepare and review the financial statements including the schedule of expenditures of federal awards, to ensure program titles, assistance listing numbers and other pertinent information is accurate for financial statement presentation ANTICIPATED DATE OF COMPLETION: The anticipated date of completion is December 2024. CONTACT PERSON: Jill Reedy, Regional Superintendent

View Audit 337563

Finding 519039 (2023-006)

Significant Deficiency 2023

MacOn and Piatt Counties Regional Office of Education No. 39

IL

Subrecipient Monitoring Internal Control / Segregation of Duties § 200.303 § 200.332 § 200.501

CONDITION: The Regional Office of Education No. 39 did not have adequate controls over subrecipient monitoring in compliance with the Code. PLAN: The ROE drafted subrecipient monitoring policies and procedures for FY24 after receiving the FY22 audit finding December 2023. Policies and procedures wi...

CONDITION: The Regional Office of Education No. 39 did not have adequate controls over subrecipient monitoring in compliance with the Code. PLAN: The ROE drafted subrecipient monitoring policies and procedures for FY24 after receiving the FY22 audit finding December 2023. Policies and procedures will include required reporting, monitoring, and award notification for the subrecipients of the ARP- Social Emotional Learning grant. ANTICIPATED DATE OF COMPLETION: Implemented April 2024 CONTACT PERSON: Jill Reedy, Regional Superintendent

View Audit 337563

Finding 519038 (2023-005)

Significant Deficiency 2023

MacOn and Piatt Counties Regional Office of Education No. 39

IL

Allowable Costs / Cost Principles Internal Control / Segregation of Duties § 200.303 § 200.403

CONDITION: The Regional Office of Education No. 39 did not ensure costs or expenditures were adequately documented, reviewed, and approved to ensure allowability under the federal award. PLAN: Although procedures were put into place in March 2023 to ensure that all expenditures were signed by the P...

CONDITION: The Regional Office of Education No. 39 did not ensure costs or expenditures were adequately documented, reviewed, and approved to ensure allowability under the federal award. PLAN: Although procedures were put into place in March 2023 to ensure that all expenditures were signed by the Program Directors, or Assistant/Regional Superintendent the previous Business Office Manager and Accounts Payable employee were not consistent on ensuring that all receipts/invoices were reviewed if a PO was created and approved or if it was approved with prior requisition form. A new purchasing process will be implemented that will document all expenditures have been reviewed, approved, and ensured that they are allowable under the federal and state award. This process will be consistent across all purchases to ensure that all approvals and reviews are conducted and documented. ANTICIPATED DATE OF COMPLETION: Implemented May 2024 CONTACT PERSON: Jill Reedy, Regional Superintendent

View Audit 337563

Finding 519037 (2023-004)

Significant Deficiency 2023

MacOn and Piatt Counties Regional Office of Education No. 39

IL

Equipment & Real Property Management Internal Control / Segregation of Duties § 200.303 § 200.313

CONDITION: The Regional Office of Education No. 39 manually maintains and stores its inventory of property and equipment. Asset details in the property records include only the description of the property, acquisition date, and cost of the property. The other minimum requirements specified by the Co...

CONDITION: The Regional Office of Education No. 39 manually maintains and stores its inventory of property and equipment. Asset details in the property records include only the description of the property, acquisition date, and cost of the property. The other minimum requirements specified by the Code are not included in the property records. Moreover, the Regional Office of Education No. 39 was unable to properly account for the results of its physical inventory count and only performed partial reconciliation. PLAN: The ROE will combine the current inventory documents to provide a complete detailed accounting of all property and equipment which will provide both the required information for federal funds as well as a reconciliation to the capital outlay disclosures within the financial statements. Physical inventory will be taken each year with additions and deletions recorded and signed off on by management. These documents will be recorded and stored each year for review. ANTICIPATED DATE OF COMPLETION: The anticipated date of completion is January 2025. CONTACT PERSON: Jill Reedy, Regional Superintendent

View Audit 337563

Finding 519036 (2023-002)

None 2023

MacOn and Piatt Counties Regional Office of Education No. 39

IL

Internal Control / Segregation of Duties Period of Performance Reporting § 200.303

CONDITION: The Regional Office of Education No. 39 did not submit or timely submit the required reports to the Illinois State Board of Education in compliance with the grant award agreement. PLAN: The ROE management will provide close oversight for the timely submission of grant expenditures and pe...

CONDITION: The Regional Office of Education No. 39 did not submit or timely submit the required reports to the Illinois State Board of Education in compliance with the grant award agreement. PLAN: The ROE management will provide close oversight for the timely submission of grant expenditures and performance reports. Checklist, due dates, and reminders are shared from the Regional Superintendent to the Business Office Manager and Program Directors. Management will review the grant report submissions in IWAS for accuracy and completion before approving and submitting to ISBE. ANTICIPATED DATE OF COMPLETION: Implemented January 2024 CONTACT PERSON: Jill Reedy, Regional Superintendent

View Audit 337563

Finding 519029 (2023-005)

Significant Deficiency 2023

School District of Cudahy

WI

Subrecipient Monitoring Significant Deficiency Matching / Level of Effort / Earmarking § 200.326

Elementary and Secondary Education School Emergency Relief and Governors Emergency Education Relief Fund– Assistance Listing No. 84.425D & 84.425C Recommendation: We recommend the District design and implement internal controls that ensure required documentation of weekly certified payrolls are obt...

Elementary and Secondary Education School Emergency Relief and Governors Emergency Education Relief Fund– Assistance Listing No. 84.425D & 84.425C Recommendation: We recommend the District design and implement internal controls that ensure required documentation of weekly certified payrolls are obtained and reviewed for all contracts subject to compliance with Davis-Bacon Act. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: See the previous corrective action plan for item2023-05. Name(s) of the contact person(s) responsible for corrective action: Brian Dasher, Director of Business Services Planned completion date for corrective action plan: 12/1/2024

View Audit 337545

Finding 519026 (2023-004)

Material Weakness 2023

School District of Cudahy

WI

Material Weakness Matching / Level of Effort / Earmarking Internal Control / Segregation of Duties

Elementary and Secondary Education School Emergency Relief and Governors Emergency Education Relief Fund– Assistance Listing No. 84.425D & 84.425C Recommendation: We recommend the District design and implement internal controls that ensure all necessary clauses, provisions and languages in included...

Elementary and Secondary Education School Emergency Relief and Governors Emergency Education Relief Fund– Assistance Listing No. 84.425D & 84.425C Recommendation: We recommend the District design and implement internal controls that ensure all necessary clauses, provisions and languages in included in contracts subject to compliance with Davis-Bacon Act. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: We will develop written procedures for compliance with the Davis-Bacon Act which will include obtaining a wage determination for our area, ensuring that all bid documents reference the requirement to comply with the law, and obtaining weekly payroll documentation from contractors Name(s) of the contact person(s) responsible for corrective action: Brian Dasher, Director of Business Services Planned completion date for corrective action plan: 12/1/2024

View Audit 337545

Finding 519023 (2023-003)

Significant Deficiency 2023

School District of Cudahy

WI

Procurement, Suspension & Debarment Significant Deficiency Equipment & Real Property Management § 200.313

Elementary and Secondary Education School Emergency Relief and Governors Emergency Education Relief Fund– Assistance Listing No. 84.425D & 84.425C Recommendation: We recommend the District design and implement capital asset record procedures and controls that ensure all necessary information is tra...

Elementary and Secondary Education School Emergency Relief and Governors Emergency Education Relief Fund– Assistance Listing No. 84.425D & 84.425C Recommendation: We recommend the District design and implement capital asset record procedures and controls that ensure all necessary information is tracked in capital asset records for assets purchased with federal awards. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: Business office staff will receive training on current district policies regarding the tracking of capital assets for federal purposes. A separate inventory of captial assets purchased with federal funds will be created and maintained. Name(s) of the contact person(s) responsible for corrective action: Brian Dasher, Director of Business Services Planned completion date for corrective action plan: 12/1/2024

View Audit 337545

Finding 519022 (2023-007)

Material Weakness 2023

School District of Cudahy

WI

Material Weakness Internal Control / Segregation of Duties

Title I Grants to Local Educational Agencies – Assistance Listing No. 84.010 Recommendation: We recommend the District design and implement test security measures and internal controls to ensure these policies comply with requirements of Title I. Explanation of disagreement with audit finding: There...

Title I Grants to Local Educational Agencies – Assistance Listing No. 84.010 Recommendation: We recommend the District design and implement test security measures and internal controls to ensure these policies comply with requirements of Title I. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: We will create written internal controls which will implement the guidance outlined in the Wisconsin Department of Public Instruction’s Test Security Manual. Name(s) of the contact person(s) responsible for corrective action: Mallory Umar, Director of Learning Services. Planned completion date for corrective action plan: 1/1/2025

View Audit 337545

Finding 519021 (2023-006)

Material Weakness 2023

School District of Cudahy

WI

Material Weakness Internal Control / Segregation of Duties

Title I Grants to Local Educational Agencies – Assistance Listing No. 84.010 Recommendation: We recommend the District design and implement procedures and internal controls to ensure proper documentation is obtained and retained for any students removed from the adjusted cohort. Explanation of disag...

Title I Grants to Local Educational Agencies – Assistance Listing No. 84.010 Recommendation: We recommend the District design and implement procedures and internal controls to ensure proper documentation is obtained and retained for any students removed from the adjusted cohort. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: We will create written procedures to confirm the removal of a student from the cohort and will comply with the following: To remove a student from the cohort, a school or LEA must confirm, in writing, that the student transferred out, emigrated to another country, transferred to a prison or juvenile facility, or is deceased. To confirm that a student transferred out, the school or LEA must have official written documentation that the student enrolled in another school or in an educational program that culminates in the award of a regular high school diploma. A student who is retained in grade, enrolls in a GED program, or leaves school for any other reason may not be counted as having transferred out for the purpose of calculating graduation rate and must remain in the adjusted cohort (ESEA sections Name(s) of the contact person(s) responsible for corrective action: Mallory Umar, Director of Learning Services Planned completion date for corrective action plan: 1/1/2025

View Audit 337545

Finding 518999 (2023-001)

Significant Deficiency 2023

Friendly Temple Apartments Ii, INC

MO

Questioned Costs HUD Housing Programs Significant Deficiency

Management agrees with this finding and the overpayment was corrected in March 2024. Management will review internal controls and implement a review process to only pay expenses already incurred to avoid future overpayments.

View Audit 337486 Questioned Costs: $1

Finding 518920 (2023-006)

Material Weakness 2023

Eclectic Soul Voices Corporation

IN

Questioned Costs Allowable Costs / Cost Principles Internal Control / Segregation of Duties § 200.430

Finding 2022-06 Unallowable and Improperly Documented Payroll Expenditures Condition: The Organization failed to establish critical processes and internal controls over payroll expenditures to ensure compliance with Uniform Guidance requirements and several compliance issues were identified. As par...

Finding 2022-06 Unallowable and Improperly Documented Payroll Expenditures Condition: The Organization failed to establish critical processes and internal controls over payroll expenditures to ensure compliance with Uniform Guidance requirements and several compliance issues were identified. As part of audit procedures, 44 transactions were selected in a testing sample from a population of 243 direct payroll transactions. Of the transactions tested, the auditors noted 8 instances of payroll costs overclaimed by way of claiming the same work effort for the same period on multiple grants. The auditors noted 18 instances of failure to properly calculate and allocate the work effort completed by employees that worked on multiple grants and programs. The auditors noted 9 instances of the Organization failing to have approved pay rates on file that matched the amounts paid to the employees. The auditors also noted a significant lack of supervisory approval on timesheets or other time allocation support. Corrective Actions Taken or Planned: - Conduct mandatory training for all supervisors to reinforce the importance of: + Accurate timesheet approval processes. + Proper time allocation for employees working on multiple grants or programs. + Ensuring timely and consistent documentation of payroll expenditures. - Engage Christy Paddock Advisors LLC (CPA firm) to: + Oversee payroll allocation processes to ensure employee time is properly distributed across grants and programs based on actual work effort. + Implement controls to flag and prevent duplicate payroll charges to multiple grants. + Payroll expense reports will be systematically reviewed and approved by the CPA firm and VOICES’ executive team prior to filing federal claims. - Ensure all approved pay rates are documented, signed, and filed for each employee. - Configure QuickBooks to ensure payroll costs and grant allocations are: + Clearly identifiable and traceable. + Linked to corresponding grants and federal claims. - Revise the PTO policy to address liability and improve tracking by: + Implementing a "use-it-or-lose-it" policy with a defined carryover limit. + Removing PTO payout upon termination to reduce financial exposure. + Communicate the updated policy clearly to staff and implement tracking in payroll systems.

View Audit 337399 Questioned Costs: $1

Finding 518913 (2023-001)

Material Weakness 2023

Eclectic Soul Voices Corporation

IN

Internal Control / Segregation of Duties Material Weakness Reporting

Finding 2023-01 Financial Close Process Condition: The auditors noted a lack of a strong financial close process which led to several material audit adjustments that were proposed during the audit and recorded by the client to properly reflect various financial statement accounts. Corrective Actio...

Finding 2023-01 Financial Close Process Condition: The auditors noted a lack of a strong financial close process which led to several material audit adjustments that were proposed during the audit and recorded by the client to properly reflect various financial statement accounts. Corrective Actions Taken or Planned: - Retained Christy Paddock Advisors LLC, a licensed CPA firm with significant expertise in financial reporting and audit compliance. Their role includes providing oversight and ensuring that all financial activities are appropriately reviewed and recorded. - A comprehensive financial close process will be formalized and documented. This process will include clear timelines, task ownership, and internal controls to ensure the timely and accurate reconciliation of all accounts prior to audit submission. - Beginning in 2025, all financial transactions and balances will undergo rigorous monthly reviews to ensure proper classification in the correct financial statement accounts, reducing the likelihood of errors.

View Audit 337399

Finding 518870 (2023-003)

Material Weakness 2023

The Astraea Foundation, Inc.

NY

Allowable Costs / Cost Principles Material Weakness Reporting

Views of Responsible Officials: All Astraea staff members are required to complete timesheets. Astraea’s internal processes were reviewed and overhauled in December 2021 (midway through FY2022) with department heads determining how their direct reports would spend time on various Astraea work stream...

Views of Responsible Officials: All Astraea staff members are required to complete timesheets. Astraea’s internal processes were reviewed and overhauled in December 2021 (midway through FY2022) with department heads determining how their direct reports would spend time on various Astraea work streams and projects.This information is detailed in a level of effort (LOE) spreadsheet tracked against timesheets and budgets regularly. However, the processes for instituting regular updates to the LOE spreadsheet and timesheet allocations remained time-consuming and highly manual in FY2023 – which we believe resulted in misallocations. Astraea is currently reviewing internal processes to ensure, 1) that review and revision of the LOE spreadsheet and timesheet allocations can happen in a timely manner with less administrative burden, and 2) allowance of a more detailed review of the payroll allocation approval and entry process. As of November 2024, the Astraea Finance team was in the process of transitioning to a more sophisticated finance and accounting system. This system will allow for automation of the processes. Since this system is expected to be live starting in January of 2025, the anticipated completion date remains January 31, 2025.

View Audit 337275

Finding 518866 (2023-003)

Material Weakness 2023

Agape Community Health Center, Inc.

FL

Reporting Internal Control / Segregation of Duties § 200.512

Actions Planned: The Organization has contracted with a healthcare consulting firm and has outsourced the financial reporting function in its entirety. They are responsible for general ledger reconciliations to the appropriate subsidiary ledgers and/or supporting documentation. They will also be r...

Actions Planned: The Organization has contracted with a healthcare consulting firm and has outsourced the financial reporting function in its entirety. They are responsible for general ledger reconciliations to the appropriate subsidiary ledgers and/or supporting documentation. They will also be responsible for all internal and external financial reporting.

View Audit 337264

Finding 518748 (2023-002)

Significant Deficiency 2023

Housing Authority of the City of Norwalk

CT

Questioned Costs HUD Housing Programs Eligibility

Finding 2023-002 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 Defici...

Finding 2023-002 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: Of a sample size of twenty-two (22) tenant files, the following information was unavailable for examination at the time of audit: • Biennial inspection reports were missing in two (2) files Our sample size is statistically valid. Known Questioned Costs: $21,520 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 reasonably 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 reasonably 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 Authority will increase oversight in the Section 8 Housing Choice Vouchers program to ensure that established internal control policies are being followed on a timely basis. Adam Bovilsky, Executive Director, is responsible for implementing this corrective action by March 31, 2024.

View Audit 337205 Questioned Costs: $1

Finding 518732 (2023-002)

Material Weakness 2023

Inland Southern California United Way

CA

Reporting Internal Control / Segregation of Duties

2023-002 – Controls over Reporting (previously 2022-005): Material Weakness. Federal Programs: AL 21.023 – Emergency Rental Assistance Program. AL 14.231 – Emergency Solutions Grant. Auditors Notes: As a part of the administering federal funds, the Organization should have internal controls over co...

2023-002 – Controls over Reporting (previously 2022-005): Material Weakness. Federal Programs: AL 21.023 – Emergency Rental Assistance Program. AL 14.231 – Emergency Solutions Grant. Auditors Notes: As a part of the administering federal funds, the Organization should have internal controls over compliance in place to ensure that reporting deadlines are met. The Organization experienced delays in the completion of the financial statement audit, and therefore the single audit was delayed until after the required submission date. The Organization is relatively new to the single audit process and requirements, there were various versions of guidance received and unclear identification of responsibilities until later into the program year that resulted in delays. The effect was a delay in the finalization of the single audit and inappropriate reporting to the related granting agencies. We recommend that the Organization develop a process to track and ensure that reporting deadlines are met. Management’s Response: Inland Southern California United Way and Subsidiaries are currently catching up on both financial audits and single audits for the Organization, therefore deadlines that have already passed could not have been met. However, the Accounting Manager and Executive Director of Finance will be responsible for ensuring that any future deadlines, effective FY24, for program reporting requirements as well as both financial audits and single audits are completed and submitted in a timely manner.

View Audit 337167

Finding 518700 (2023-008)

Significant Deficiency 2023

State of Mississippi

MS

Questioned Costs Subrecipient Monitoring Allowable Costs / Cost Principles § 200.303

2023-008 Assistance Listing No. 96.001, 96.006 and Social Security Disability lnsurance Cluster Type of Compliance Requirement: Allowable Costs lnternal Controls gtver glant disbursements were not consistently performed Response: There is no disagreement with the audit finding. Corrective Action Pla...

2023-008 Assistance Listing No. 96.001, 96.006 and Social Security Disability lnsurance Cluster Type of Compliance Requirement: Allowable Costs lnternal Controls gtver glant disbursements were not consistently performed Response: There is no disagreement with the audit finding. Corrective Action Plan: Item is isolated and immaterial. And, we feel effective controls are in place to mitigate the likelihood of this type of error. We have also, since, reached out to the vendor to redeem the $14 associated with this transaction. However, we will continue to monitor and reinforce, with our managers, the importance of being vigilant during their review and approval processes for this type of situatlon. Planned completion date for corrective action plan: lmmediately Name(s) of the contact person(s) responsible for corrective actions: Andy Salin Finance Director 601-853-5220.

View Audit 337153 Questioned Costs: $1

Finding 518679 (2023-017)

Material Weakness 2023

State of Mississippi

MS

Subrecipient Monitoring Internal Control / Segregation of Duties Material Weakness

SUBRECIPIENT MONITORING ALN Number 2023-017 Response: 93.568 Low Income Home Energy Assistance (LIH EAP) 93.489, 93.575, and 93 .596 Child Care Deve lopment Fund (CCDf-') Strenl.!.lhen Controls Over Onsite Monitorirw for the Low-Income Home Enerl.!.v Assistance Program ( LI HEAP). MOHS Concurs that ...

SUBRECIPIENT MONITORING ALN Number 2023-017 Response: 93.568 Low Income Home Energy Assistance (LIH EAP) 93.489, 93.575, and 93 .596 Child Care Deve lopment Fund (CCDf-') Strenl.!.lhen Controls Over Onsite Monitorirw for the Low-Income Home Enerl.!.v Assistance Program ( LI HEAP). MOHS Concurs that cont ro ls should be strengthened over On-Site monitoring for the LIHEAP and CCDF. Corrective Action Plan: I. Strengthen cont ro ls over the subrec ipienl monitoring process: A. The Office of Compliance, Division of Monitoring has made sign ifi cant strides in strength ening cont ro ls over the subreci pient monitor ing process. The Division continues to rev iew and update the processes and procedures as necessary to ensure processes are adeq uate and effective. Staff are constantly notified/trained on updates to poli cies, procedures, and regulations to ensure continued compliance with monitoring the agency's subgrant agreem ents. Additionally, the Division is in the process of implementing a case management system to ass ist in better track ing the status of monitoring reviews. B. Responsible Party: Kameron Harri s, Chief Compliance Officer, Director of Monitoring, Laketha Gilmore C. Completion Date: This corrective action has been implemented and is ongoi ng.

View Audit 337153

Finding 518674 (2023-016)

Material Weakness 2023

State of Mississippi

MS

Internal Control / Segregation of Duties Subrecipient Monitoring Material Weakness

REPORTING ALN Number 2023-016 Response: 93.558 Temporary Assistance for Needy Families (TANI') 93.568 Low Income Home Energy Assistance (LIH EAP) 93.489, 93.596 and 93.575 Child Care Development Fund (CCDF) Strengthen Controls to Ensure Compliance with l'ecleral Fundinl.!. Accountabi litv and Transp...

REPORTING ALN Number 2023-016 Response: 93.558 Temporary Assistance for Needy Families (TANI') 93.568 Low Income Home Energy Assistance (LIH EAP) 93.489, 93.596 and 93.575 Child Care Development Fund (CCDF) Strengthen Controls to Ensure Compliance with l'ecleral Fundinl.!. Accountabi litv and Transparency Act ffF AT A) req uirements. MOHS concurs that controls should be strengthened over FF AT A reporting requirements. Corrective Action Plan: I. Strengthen controls to ensure compliance with FFATA reporting requirements. A. MOHS implemented a process as of January I. 2023, to ensure that FFATA reporting is being clone and verified on a periodic basis. After doing an initial submission of reports the first year and completing the process, Standard Operating Procedures were deve loped to ensure that the reports are entered, rev iewed and submitted within the required tim efram e. B. Responsible Parties: Debra Dixon, Deputy of Finance and Samuel Cole, Director of Procurement Services C. Anticipated Completion Date: This correct ive action has been implemented.

View Audit 337153

Finding 518668 (2023-025)

Material Weakness 2023

State of Mississippi

MS

Subrecipient Monitoring Internal Control / Segregation of Duties Eligibility § 200.303

2023-025 Response: Strengthen Controls to Ensure Compliance with Eligibility Requirements for the Emergency Rental Assistance Program (ERA). ALN# 21.023 We acknowledge the finding. The Mississippi Department of Finance and Administration was not appropriated funds for this program nor was the agency...

2023-025 Response: Strengthen Controls to Ensure Compliance with Eligibility Requirements for the Emergency Rental Assistance Program (ERA). ALN# 21.023 We acknowledge the finding. The Mississippi Department of Finance and Administration was not appropriated funds for this program nor was the agency given any authority for the administration for the program. As such, DFA was not in a position to assess eligibility determinations or perform monitoring. DFA drew down funds on behalf of Mississippi Home Corp in light of an impending federal deadline. Mississippi Home Corporation had eligibility and fraud prevention policies in place for the ARPA programs. These policies included, but are not limited to, contracting with a third-party law firm to review all applications with a three-tier review system, monitoring with random sample selections for every 10% completed, employing an internal, qualitycontrol auditor, and reviewing any applications submitted that were greater than $10,000. As a result of their monitoring, MHC was able to identify suspicious applications and report them to the Mississippi Attorney General for investigation. MHC continues to report all expenditures directly to U.S. Treasury on a quarterly basis. It is also worth noting that the program stopped taking applications in September of 2022 which was prior to the issuance of the 2022 Single Audit Report that was released on July 31, 2023. Thus, policies and controls in place could not be changed for this. DFA is taking the position that corrective action is no longer necessary for these funds. Corrective Action: A. The Mississippi Department of Finance and Administration is taking the position that corrective action is no longer necessary. The program stopped taking applications in September of 2022, which is prior to the current 2023 single audit report dated November 21, 2024. Policies and controls in place could not be changed for this. B . N/A C. N/A D. The Emergency Rental Assistance program stopped taking applications September of 2022.

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