Corrective Action Plans

Finding 399885 (2023-005)

Significant Deficiency 2023

AL

Internal Control / Segregation of Duties Subrecipient Monitoring Reporting § 200.303

Management concurs. The City will strengthen its policies and procedures related to federal award reporting to comply with reporting requirements.

View Audit 308010

Finding 399884 (2023-004)

Significant Deficiency 2023

City of Montgomery, Alabama

AL

Internal Control / Segregation of Duties Procurement, Suspension & Debarment HUD Housing Programs § 200.303

Management concurs. The City will reinforce its procurement policies through regular training and clear communication to all relevant staff members. Specifically, the importance of using a contract routing sheet and obtaining all required signatures on contracts will be emphasized. Additionally, a p...

Management concurs. The City will reinforce its procurement policies through regular training and clear communication to all relevant staff members. Specifically, the importance of using a contract routing sheet and obtaining all required signatures on contracts will be emphasized. Additionally, a periodic review process to ensure compliance with this policy will be implemented to help prevent future occurrences. The City will also take steps to review past contacts for similar issues and take corrective action when necessary.

View Audit 308010

Finding 399882 (2023-003)

Significant Deficiency 2023

Housing Authority of the City of Beaumont

TX

Questioned Costs HUD Housing Programs Eligibility

Finding 2023-003 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 – N. Special Tests and Provisions - Housing Quality Standards Non Compliance Material to the Financial...

Finding 2023-003 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 – N. Special Tests and Provisions - Housing Quality Standards Non Compliance Material to the Financial Statements: No Significant Deficiency in Internal Control over Compliance for Special Tests and Provisions 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 thirty-one (31) tenant files, the following information was unavailable for examination at the time of audit: Annual inspection reports were missing in one file. Our sample size is statistically valid. 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 special tests and provisions - housing quality standards 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. Allison Landrum, Chief Executive Officer, is responsible for implementing this corrective action by September 30, 2024.

View Audit 308006 Questioned Costs: $1

Finding 399881 (2023-002)

Significant Deficiency 2023

Housing Authority of the City of Beaumont

TX

Questioned Costs HUD Housing Programs Significant Deficiency

Finding 2023-002 Federal Agency: U.S. Department of Housing and Urban Development Federal Program Titles: Section 8 Housing Choice Vouchers Programs Federal Catalog Numbers: 14.871 Noncompliance – N. Special Tests and Provisions - Housing Quality Standards Non Compliance Material to the Financi...

Finding 2023-002 Federal Agency: U.S. Department of Housing and Urban Development Federal Program Titles: Section 8 Housing Choice Vouchers Programs Federal Catalog Numbers: 14.871 Noncompliance – N. Special Tests and Provisions - Housing Quality Standards Non Compliance Material to the Financial Statements: No Significant Deficiency in Internal Control over Compliance for Special Tests and Provisions Criteria: Housing Quality Standards Inspections. The PHA must inspect the unit leased to a family at least annually to determine if the unit meets the Housing Quality Standards (HQS) and the PHA must conduct quality control re-inspections. The PHA must prepare a unit inspection report (24 CFR sections 982.158(d) and 982.405(b)). For units that fail inspection the PHA must correct all life threatening HQS deficiencies within 24 hours and all other deficiencies within 30 days. Condition: Based upon inspection of the Authority’s files and on discussion with management, there were failed inspections that did not pass reinspection within 30 days without penalty. Context: There are approximately 489 units with failed inspections. Of a sample size of twenty-five (25) failed inspections, two (2) failed inspections did not pass reinspection within 30 days. HAP was not abated nor was the tenant evicted. Our sample size is statistically valid. Cause: There is a significant deficiency in internal controls over the compliance for the special tests and provisions type of compliance related to HQS inspections. The Authority has not properly performed HQS inspections in compliance with program requirements following the expiration of HUD waivers as a result of insufficient staffing. Effect: The Section 8 Housing Choice Vouchers Program is in non-compliance with the special tests and provisions type of compliance related to HQS inspections. Recommendation: We recommend the Authority design and implement a corrective action plan 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 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. Allison Landrum, Chief Executive Officer, is responsible for implementing this corrective action by September 30, 2024.

View Audit 308006 Questioned Costs: $1

Finding 399880 (2023-001)

Significant Deficiency 2023

Housing Authority of the City of Beaumont

TX

Questioned Costs HUD Housing Programs Eligibility

Finding 2023-001: 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...

Finding 2023-001: 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 1,782 units. Of a sample size of thirty-one (31) tenant files, the following was noted: • HUD 50058 Form was missing in 1 file • Verification of income and assets was missing in 1 file. Our sample size is statistically valid. 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. Allison Landrum, Chief Executive Officer, is responsible for implementing this corrective action by September 30, 2024.

View Audit 308006 Questioned Costs: $1

Finding 399874 (2023-001)

Significant Deficiency 2023

Legal Services of Northwest Jersey, INC

NJ

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

INTERNAL CONTROL OVER COMPLIANCE AND OTHER MATTERS RECOMMENDATIONS: THE ORGANIZATION SHOULD DESIGN AND IMPLEMENT CONTROLS TO ENSURE AN ADEQUATE REVIEW PROCESS IS IN PLACE TO REVIEW COMPLIANCE WITH LSC REGULATION 45 C.R.F 1630 COST STANDARD AND PROCEDURES AS IT RELATES TO THE ALLOCATION OF DERIVATI...

INTERNAL CONTROL OVER COMPLIANCE AND OTHER MATTERS RECOMMENDATIONS: THE ORGANIZATION SHOULD DESIGN AND IMPLEMENT CONTROLS TO ENSURE AN ADEQUATE REVIEW PROCESS IS IN PLACE TO REVIEW COMPLIANCE WITH LSC REGULATION 45 C.R.F 1630 COST STANDARD AND PROCEDURES AS IT RELATES TO THE ALLOCATION OF DERIVATIVE INCOME. THERE IS NO DISAGREEMENT WITH THE AUDIT FINDING. ACTION TAKEN IN RESPONSE TO FINDING: LSNWJ'S ADMINISTRATIVE PROCEDURES MANUAL ALREADY INCLUDES A SECTION REGARDING DERIVATIVE INCOME. IT COMPLIES WITH LSC REGULATIONS. THE CHIEF FINANCIAL OFFICER WILL BE RESPONSIBLE TO ENSURE THE POLICY IS FOLLOWED IN THE FUTURE. NAME OF THE CONTACT PERSON FOR CORRECTIVE ACTION: MICHAEL WOJCIK, CHIEF EXECUTIVE OFFICER. PLANNED COMPLETION DATE FOR CORRECTIVE ACTION PLAN: THIS CORRECTIVE ACTION PLAN IS EFFECTIVE IMMEDIATELY.

View Audit 307990

Finding 399400 (2023-001)

Material Weakness 2023

Department of Housing of the Commonwealth of Puerto Rico

PR

Material Weakness Reporting Matching / Level of Effort / Earmarking § 200.512

VIEWS OF RESPONSIBLE OFFICIALS During the fiscal year we implemented the Yardi Software to improve the efficiency of the accounting system and the related procedures and ensure that the required financial statements are submitted in compliance with 2 CFR § 200.512 for the Single Audit for fiscal yea...

VIEWS OF RESPONSIBLE OFFICIALS During the fiscal year we implemented the Yardi Software to improve the efficiency of the accounting system and the related procedures and ensure that the required financial statements are submitted in compliance with 2 CFR § 200.512 for the Single Audit for fiscal year 2024. IMPLEMENTATION DATE March 31, 2025 RESPONSIBLE PERSON Juan R. Rivera Carrillo Assistance Secretary for Finance and Administration

View Audit 307907

Finding 399379 (2023-001)

Significant Deficiency 2023

Blue Earth County

MN

Eligibility Significant Deficiency Matching / Level of Effort / Earmarking § 200.303

The County will implement additional review procedures.

View Audit 307886

Finding 399376 (2023-002)

Material Weakness 2023

Albuquerque Housing Authority

NM

Internal Control / Segregation of Duties Material Weakness Reporting

Management will provide a dual review on the unaudited FDS for accuracy and completeness. Hired a consultant to review process.

View Audit 307880

Finding 399366 (2023-001)

Significant Deficiency 2023

City of Donna, Texas

TX

Reporting Internal Control / Segregation of Duties

Individual responsible for corrective action: David R. Vasquez, Director of Finance and Margaret Lopez, Grants Administrator/Accountant Date corrective action will be implemented: March 2024 Corrective action plan: The City will ensure grant reporting is completed in a timely manner. The G...

Individual responsible for corrective action: David R. Vasquez, Director of Finance and Margaret Lopez, Grants Administrator/Accountant Date corrective action will be implemented: March 2024 Corrective action plan: The City will ensure grant reporting is completed in a timely manner. The Grant administrator will provide a list of all due dates for each grant. Finance will periodically monitor grants to ensure timely reporting. Grant administrator will provide confirmation of each grant filed.

View Audit 307859

Finding 399365 (2023-003)

Significant Deficiency 2023

Rock Island County, Illinois

IL

Subrecipient Monitoring Reporting Matching / Level of Effort / Earmarking § 200.303

The original preparer will provide the report prior to submission to the United States Department of Treasury each quarter to another employee in the Administration office to cross reference totals from New World financial software system and information provided from the Auditor's Office. A written...

The original preparer will provide the report prior to submission to the United States Department of Treasury each quarter to another employee in the Administration office to cross reference totals from New World financial software system and information provided from the Auditor's Office. A written report on findings of this review will be submitted to the Auditor's Office by the due date of the submission to the United States Department of the Treasury.

View Audit 307847

Finding 399361 (2023-002)

Material Weakness 2023

Bean's Cafe

AK

Eligibility Significant Deficiency Internal Control / Segregation of Duties

Federal Award Findings Finding 2023-002 Late Reporting and Noncompliance with Reporting Requirements Name of Contact Person: Fony Imawan Corrective Action Plan: - Management will carefully review report deadlines and ensure that submission of reports is made before they are due. Management wi...

Federal Award Findings Finding 2023-002 Late Reporting and Noncompliance with Reporting Requirements Name of Contact Person: Fony Imawan Corrective Action Plan: - Management will carefully review report deadlines and ensure that submission of reports is made before they are due. Management will also carefully review reporting requirements and ensure that requirements are adhered to. Proposed Completion Date: - Fiscal Year 2024

View Audit 307838

Finding 399360 (2023-001)

Significant Deficiency 2023

Bean's Cafe

AK

Eligibility Significant Deficiency Internal Control / Segregation of Duties

Finding 2023-001 Lack of Internal Controls over Eligibility Name of Contact Person: Fony Imawan Corrective Action Plan: -We will introduce supplementary policies and procedures -Staff/ the program manager will undergo training to review signed applications from the client -Managers will document...

Finding 2023-001 Lack of Internal Controls over Eligibility Name of Contact Person: Fony Imawan Corrective Action Plan: -We will introduce supplementary policies and procedures -Staff/ the program manager will undergo training to review signed applications from the client -Managers will document their findings, noting whether clients are deemed eligible or not. -If clients are eligible, we will include supporting documentation with their application to validate their eligibility determination Proposed Completion Date: The end of the month

View Audit 307838

Finding 399356 (2023-005)

Significant Deficiency 2023

Franklin General Hospital

IA

Reporting Significant Deficiency Internal Control / Segregation of Duties § 200.303

American Rescue Plan Rural Distribution, Provider Relief Fund – Assistance Listing No. 93.498 Recommendation: We recommend that management implement more formal control process surrounding the use of federal awards where there is segregation between individuals identifying or proposing expenditures/...

American Rescue Plan Rural Distribution, Provider Relief Fund – Assistance Listing No. 93.498 Recommendation: We recommend that management implement more formal control process surrounding the use of federal awards where there is segregation between individuals identifying or proposing expenditures/uses of funds and an individual reviewing and approving that expenditure/use. We also recommend for any formal reporting required under federal awards that there be a formal review process where an individual is reviewing and approving the report who did not prepare the report. Documentation of review and approval should be retained in both cases. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action planned in response to finding: We will formalize policies and procedures around documenting review and approval for both use of grant funds, and related reporting. Name(s) of the contact person(s) responsible for corrective action: Lee Elbert, CFO Planned completion date for corrective action plan: June 30, 2024

View Audit 307835

Finding 399351 (2023-001)

Significant Deficiency 2023

Regional School Unit No. 55

ME

Special Tests & Provisions Significant Deficiency Internal Control / Segregation of Duties

CORRECTIVE ACTION PLAN (Concerning Finding 2023-001) Contact Person Responsible for Corrective Action: Peggy McKenzie, Accounting Office Manager Corrective Action: The District has already started the implementation of corrective action and will take the following actions to address finding 2023-01:...

CORRECTIVE ACTION PLAN (Concerning Finding 2023-001) Contact Person Responsible for Corrective Action: Peggy McKenzie, Accounting Office Manager Corrective Action: The District has already started the implementation of corrective action and will take the following actions to address finding 2023-01: 1) The District has already added the certified payroll requirement elements to all wage rate certifications forms for Federally funded projects. It should be known that the District, through consultation with its attorney, thought it had all the required elements in place. Through this audit process, once becoming aware, the District believes now it will be in full compliance. Anticipated Completion Date: Completion as of submission of the 6/30/23 audit

View Audit 307824

Finding 399339 (2023-002)

Significant Deficiency 2023

Western Maine Community Action, Inc.

ME

Reporting Significant Deficiency Internal Control / Segregation of Duties § 200.512

CFO will be logging into websites necessary for submitting audit ahead of time to prevent login issues. CFO will wait for Auditors to give the approval to submit when the audit is ready to ensure we don’t run into issues with multiple users being logged in. Fiscal team works diligently to get all ...

CFO will be logging into websites necessary for submitting audit ahead of time to prevent login issues. CFO will wait for Auditors to give the approval to submit when the audit is ready to ensure we don’t run into issues with multiple users being logged in. Fiscal team works diligently to get all audit requests submitted in a timely manner during fieldwork. Person(s) Responsible: Chief Financial Officer, Rebecca Gage Timing for Implementation: Effective immediately as of 5/31/2024

View Audit 307817

Finding 399332 (2023-003)

Material Weakness 2023

King Philip Regional School District

MA

Questioned Costs Subrecipient Monitoring Cash Management

The District will utilize DESE's Federal & State Grant Manual document as a guide to ensure compliance with grant management.

View Audit 307806 Questioned Costs: $1

Finding 399330 (2023-004)

Significant Deficiency 2023

Tarrant County B'nai B'rith Housing Corporation

TX

HUD Housing Programs Reporting Internal Control / Segregation of Duties § 200.512

Comments on Finding and Recommendations: We concur that our required financial filings were not made timely with HUD. We agree with the auditor’s recommendations. Planned Corrective Action: We will follow the HUD filing requirements of the regulatory agreement going forward. The financial statement...

Comments on Finding and Recommendations: We concur that our required financial filings were not made timely with HUD. We agree with the auditor’s recommendations. Planned Corrective Action: We will follow the HUD filing requirements of the regulatory agreement going forward. The financial statements for the year ended April 30, 2023 have not been submitted electronically to HUD.

View Audit 307803

Finding 399324 (2023-001)

Significant Deficiency 2023

Tarrant County B'nai B'rith Housing Corporation

TX

Internal Control / Segregation of Duties Reporting Significant Deficiency

Comments on Finding and Recommendations: We concur that certain internal controls were not in place to ensure that the books and records are maintained in accordance with generally accepted accounting principles throughout the year. This is primarily due to system limitations within the accounting s...

Comments on Finding and Recommendations: We concur that certain internal controls were not in place to ensure that the books and records are maintained in accordance with generally accepted accounting principles throughout the year. This is primarily due to system limitations within the accounting system. We agree with the auditor’s recommendations. Planned Corrective Action: We have recorded all adjusting entries to correct misstatements. We will implement measures to ensure all supporting schedules and documents are reconciled to the underlying general ledger accounts consistently and timely going forward.

View Audit 307803

Finding 399282 (2023-001)

Material Weakness 2023

Fulton County, Illinois

IL

Subrecipient Monitoring Internal Control / Segregation of Duties

Corrective Action Plan To the extent possible, monitoring of monthly financial results and compliance information will continue in the County Courthouse offices and the County Health Department. Anticipated Completion Date The County is not in a financial position to hire additional employees. The...

Corrective Action Plan To the extent possible, monitoring of monthly financial results and compliance information will continue in the County Courthouse offices and the County Health Department. Anticipated Completion Date The County is not in a financial position to hire additional employees. The increased monitoring has already begun. Responsible Parties John Spangler, Fulton County Board Chairman 257 West Lincoln Street Lewistown, Illinois 61542 (309)547-0901 Staci Mayall, County Treasurer 100 North Main Street Lewistown, Illinois 61542 (309)547-3041 Patrick O’Brian, County Clerk 100 North Main Street Lewistown, Illinois 61542 (309)547-3041

View Audit 307800

Finding 399274 (2023-002)

Significant Deficiency 2023

Alamo Community College District

TX

Eligibility Significant Deficiency Internal Control / Segregation of Duties § 200.303 § 200.407

The Alamo Colleges District Student Financial Aid Office has collaborated with Internal Audit to put into place controls that ensure Alamo Colleges District Board policies are followed and that all Financial Aid staff are trained on the execution of those policies. Additional control reporting has b...

The Alamo Colleges District Student Financial Aid Office has collaborated with Internal Audit to put into place controls that ensure Alamo Colleges District Board policies are followed and that all Financial Aid staff are trained on the execution of those policies. Additional control reporting has been established to monitor compliance. The Board Policy F.2.4 has also been revised to clarify those expectations. Implementation Date: June 2024 Responsible Persons: Dr. Harold Whitis, District Director of Student Financial Aid

View Audit 307792

Finding 399270 (2023-001)

Significant Deficiency 2023

Alamo Community College District

TX

Student Financial Aid Significant Deficiency Matching / Level of Effort / Earmarking § 200.303

To ensure compliance with the provisions of the Gramm-Leach-Bliley Act (GLBA), specifically the requirement that the District’s written Enterprise Data Governance Standard (EDGS) includes a description of the use of a data inventory that includes how the institution is identifying and managing data,...

To ensure compliance with the provisions of the Gramm-Leach-Bliley Act (GLBA), specifically the requirement that the District’s written Enterprise Data Governance Standard (EDGS) includes a description of the use of a data inventory that includes how the institution is identifying and managing data, personnel, devices, systems and facilities, management has revised the EDGS to specify that a data inventory for each functional system domain shall take place annually under the direction of the Data Owners and the procedures performed and results shall be adequately documented. Implementation Date: August 2024 Responsible Persons: Phong Banh, District Director of Information Technology Services Patrick Vrba, Controller

View Audit 307792

Finding 399216 (2023-002)

Material Weakness 2023

Energetics Technology Center Inc.

MD

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

Management concurs with this finding. Management has focused its attention on both the determination and designation of key personnel within a contract as well as the ongoing compliance of key personnel designations. Management has implemented control provisions to highlight and approve future key p...

Management concurs with this finding. Management has focused its attention on both the determination and designation of key personnel within a contract as well as the ongoing compliance of key personnel designations. Management has implemented control provisions to highlight and approve future key personnel designations within future contracts. Further, a semi-annual review process will be undertaken to review and document ongoing contractual compliance which will include reference to and consideration of key personnel designations.

View Audit 307788

Finding 399214 (2023-001)

Significant Deficiency 2023

Boys & Girls Club of Dundee Township, Inc.

IL

Subrecipient Monitoring Internal Control / Segregation of Duties

Condition: A few of the employee timecards were missing supervisor approval. Plan: The Club will review their monitoring procedures to ensure consistent approval of employee timecards. Anticipated Date of Completion: As soon as possible – before FY24 year end Name of Contact Person: Drew Glassford...

Condition: A few of the employee timecards were missing supervisor approval. Plan: The Club will review their monitoring procedures to ensure consistent approval of employee timecards. Anticipated Date of Completion: As soon as possible – before FY24 year end Name of Contact Person: Drew Glassford, CEO Management Response: Since the audit, we have evaluated our monitoring procedures to make sure that the review/approval on electronic timecards is done consistently.

View Audit 307783

Finding 399188 (2023-002)

Material Weakness 2023

Wenatchee School District No. 246

WA

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

Finding ref number: 2023-002 Finding caption: The District’s internal controls were inadequate for ensuring compliance with priority of service federal requirements. Name, address, and telephone of District contact person: Karen Walters, Director of Accounting 235 Sunset Ave, Wenatchee, WA 98801 5...

Finding ref number: 2023-002 Finding caption: The District’s internal controls were inadequate for ensuring compliance with priority of service federal requirements. Name, address, and telephone of District contact person: Karen Walters, Director of Accounting 235 Sunset Ave, Wenatchee, WA 98801 509-663-8161 Corrective action the auditee plans to take in response to the finding: The District will put controls into place to ensure that all PFS students are receiving services in an adequate and timely manner. Anticipated date to complete the corrective action: August 2024, for new school year

View Audit 307755

Corrective Action Plans

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