Corrective Action Plans

Finding 401635 (2023-004)

Significant Deficiency 2023

ND

Reporting Internal Control / Segregation of Duties

2023-004 Finding 1. Correcting Plan School District personnel will establish a policy for completion of audits on a timely basis. 2. Explanation of Disagreement with the Audit Findings There is essentially no disagreement with the finding. 3. Official Responsible for Insuring CAP The Superintendent,...

2023-004 Finding 1. Correcting Plan School District personnel will establish a policy for completion of audits on a timely basis. 2. Explanation of Disagreement with the Audit Findings There is essentially no disagreement with the finding. 3. Official Responsible for Insuring CAP The Superintendent, Seth Engelstad, is responsible for carrying out the corrective action plan. 4. Planned Completion Date for CAP School district personnel will attend training annually effective March 31, 2025. 5. Plan to Monitor Completion of CAP The Superintendent will monitor the completion of the CAP, with reports to the Board of Education, on an annual basis.

View Audit 309600

Finding 401598 (2023-006)

Material Weakness 2023

Refugee & Immigrant Self-Empowerment, Inc.

NY

Procurement, Suspension & Debarment HUD Housing Programs Reporting

Name of Auditee: Refugee & Immigrant Self-Empowerment, Inc. Name of Audit Firm: EFPR Group, CPAs, PLLC Period Covered by the Audit: Year ended September 30, 2023 CAP Prepared by: Haji Adan, Executive Director Phone: 315-214-4480 (A) Current Finding on the Schedule of Findings and Responses (6) Audit...

Name of Auditee: Refugee & Immigrant Self-Empowerment, Inc. Name of Audit Firm: EFPR Group, CPAs, PLLC Period Covered by the Audit: Year ended September 30, 2023 CAP Prepared by: Haji Adan, Executive Director Phone: 315-214-4480 (A) Current Finding on the Schedule of Findings and Responses (6) Audit Finding 2023-006 (a) Comments on the finding and recommendation: Refugee & Immigrant Self-Empowerment, Inc. acknowledges the need for documenting credit card usage. (b) Actions Taken: Refugee & Immigrant Self-Empowerment, Inc. will establish a clear process requiring verification of identity and purpose for each transaction. We will implement strict controls, such as mandatory receipts, detailed transaction logs, and periodic audits. Additionally, we will provide comprehensive training to all employees on the proper use and accountability of credit cards, emphasizing the importance of adherence to established protocols. We will regularly review and update these procedures to adapt to evolving risks and maintain effective internal controls. (c) Anticipated Completion Date: August 31, 2024

View Audit 309599

Finding 401597 (2023-005)

Material Weakness 2023

Refugee & Immigrant Self-Empowerment, Inc.

NY

Procurement, Suspension & Debarment Reporting Internal Control / Segregation of Duties

Name of Auditee: Refugee & Immigrant Self-Empowerment, Inc. Name of Audit Firm: EFPR Group, CPAs, PLLC Period Covered by the Audit: Year ended September 30, 2023 CAP Prepared by: Haji Adan, Executive Director Phone: 315-214-4480 (A) Current Finding on the Schedule of Findings and Responses (5) Audit...

Name of Auditee: Refugee & Immigrant Self-Empowerment, Inc. Name of Audit Firm: EFPR Group, CPAs, PLLC Period Covered by the Audit: Year ended September 30, 2023 CAP Prepared by: Haji Adan, Executive Director Phone: 315-214-4480 (A) Current Finding on the Schedule of Findings and Responses (5) Audit Finding 2023-005 (a) Comments on the finding and recommendation: Refugee & Immigrant Self-Empowerment, Inc. acknowledges the need for the approval of purchases within the organization. (b) Actions Taken: Refugee & Immigrant Self-Empowerment, Inc. will conduct a thorough review of current expenditure review and approval processes to identify gaps and weaknesses. Clear documentation standards and procedures will be developed, outlining roles, responsibilities, and methods for maintaining expenditure review and approval records. Staff members will receive comprehensive training on these new standards, and compliance will be regularly monitored. (c) Anticipated Completion Date: August 31, 2024

View Audit 309599

Finding 401596 (2023-004)

None 2023

Refugee & Immigrant Self-Empowerment, Inc.

NY

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

Name of Auditee: Refugee & Immigrant Self-Empowerment, Inc. Name of Audit Firm: EFPR Group, CPAs, PLLC Period Covered by the Audit: Year ended September 30, 2023 CAP Prepared by: Haji Adan, Executive Director Phone: 315-214-4480 (A) Current Finding on the Schedule of Findings and Responses (4) Audit...

Name of Auditee: Refugee & Immigrant Self-Empowerment, Inc. Name of Audit Firm: EFPR Group, CPAs, PLLC Period Covered by the Audit: Year ended September 30, 2023 CAP Prepared by: Haji Adan, Executive Director Phone: 315-214-4480 (A) Current Finding on the Schedule of Findings and Responses (4) Audit Finding 2023-004 (a) Comments on the finding and recommendation: Refugee & Immigrant Self-Empowerment, Inc. acknowledges improvement in the process of recognizing the allowable matching requirements is needed. (b) Actions Taken: Refugee & Immigrant Self-Empowerment, Inc. will ensure training for relevant program staff and implement robust procedures to accurately monitor and fulfill matching requirements stipulated in grant agreements. This will involve establishing clear guidelines for tracking and documenting matching contributions, assigning responsibility for oversight, implementing regular reviews, and conducting internal audits to ensure compliance. (c) Anticipated Completion Date: August 31, 2024

View Audit 309599

Finding 401595 (2023-003)

None 2023

Refugee & Immigrant Self-Empowerment, Inc.

NY

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

Name of Auditee: Refugee & Immigrant Self-Empowerment, Inc. Name of Audit Firm: EFPR Group, CPAs, PLLC Period Covered by the Audit: Year ended September 30, 2023 CAP Prepared by: Haji Adan, Executive Director Phone: 315-214-4480 (A) Current Finding on the Schedule of Findings and Responses (3) Audit...

Name of Auditee: Refugee & Immigrant Self-Empowerment, Inc. Name of Audit Firm: EFPR Group, CPAs, PLLC Period Covered by the Audit: Year ended September 30, 2023 CAP Prepared by: Haji Adan, Executive Director Phone: 315-214-4480 (A) Current Finding on the Schedule of Findings and Responses (3) Audit Finding 2023-003 (a) Comments on the finding and recommendation: Refugee & Immigrant Self-Empowerment, Inc. acknowledges the need for enhanced internal controls to track grant reporting requirements. (b) Actions Taken: RISE has introduced a bookkeeper position within our finance department to alleviate the workload of the Finance Director and ensure timely submission of required grant reports. The Executive Director will oversee the submission of grant financial reports, ensuring they meet contracting deadlines. (c) Anticipated Completion Date: The position is already added and recruited on April 22, 2024.

View Audit 309599

Finding 401555 (2023-001)

Material Weakness 2023

Clarion Goldfield Dows Csd

IA

Internal Control / Segregation of Duties

SEE RESPONSE AND CORRECTIVE ACTION PLAN AT 2023-001

View Audit 309592

Finding 401554 (2023-002)

Material Weakness 2023

Ikm-Manning Community School District

IA

Internal Control / Segregation of Duties Reporting

As a small district we have added an employee that is shared between our district and another to help review and delegate. As a small district I believe we are doing a good job of internal controls. Would it be nice to hire additional people, yes but financially it is not responsible. (we review eve...

As a small district we have added an employee that is shared between our district and another to help review and delegate. As a small district I believe we are doing a good job of internal controls. Would it be nice to hire additional people, yes but financially it is not responsible. (we review every year our procedures and make sure we obtain the maximum internal control possible for our district under the circumstances).

View Audit 309591

Finding 401552 (2023-008)

Significant Deficiency 2023

The Housing Authority of East Baton Rouge Parish

LA

Questioned Costs HUD Housing Programs Significant Deficiency

Special Tests – Formula Income – Public and Indian Housing – Assistance Listing No. 14.850 Recommendation: We recommend the Authority reviews their controls over submitting forms to HUD to ensure they contain accurate information. Explanation of disagreement with audit finding: There is no disagre...

Special Tests – Formula Income – Public and Indian Housing – Assistance Listing No. 14.850 Recommendation: We recommend the Authority reviews their controls over submitting forms to HUD to ensure they contain accurate information. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: New CFO is preparing a Subsidy Calculation procedure so new staff will be aware of what is eligible and non-eligible transactions for preparing forms. Name(s) of the contact person(s) responsible for corrective action: Shannon Sterling and/or Carlton Brown

View Audit 309583 Questioned Costs: $1

Finding 401551 (2023-007)

Significant Deficiency 2023

The Housing Authority of East Baton Rouge Parish

LA

HUD Housing Programs Significant Deficiency Matching / Level of Effort / Earmarking

Allowable Costs – Operating Fund – Public and Indian Housing – Assistance Listing No. 14.850 Recommendation: We recommend the Authority establishes procedures to properly reconcile the revolving fund cash account to ensure that cash and interprogram accounts are properly reported at the program lev...

Allowable Costs – Operating Fund – Public and Indian Housing – Assistance Listing No. 14.850 Recommendation: We recommend the Authority establishes procedures to properly reconcile the revolving fund cash account to ensure that cash and interprogram accounts are properly reported at the program level. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: There are procedures in place to settle interfunds if possible. Name(s) of the contact person(s) responsible for corrective action: J Daniels and Shannon Sterling

View Audit 309583

Finding 401549 (2023-006)

Significant Deficiency 2023

The Housing Authority of East Baton Rouge Parish

LA

HUD Housing Programs Reporting Significant Deficiency

Reporting – PIC – Housing Voucher Cluster – Assistance Listing No. 14.871 Recommendation: We recommend that the person assigned to submit the 50058s to PIC assures a quality control review is performed on the submissions to ensure timely and accurate reporting. Explanation of disagreement with au...

Reporting – PIC – Housing Voucher Cluster – Assistance Listing No. 14.871 Recommendation: We recommend that the person assigned to submit the 50058s to PIC assures a quality control review is performed on the submissions to ensure timely and accurate reporting. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: Following CLA’s recommendation, SVP of Housing Choice will audit a random sample of 50058 submissions to PIC each month to ensure that all submissions are accurate in PIC. Additionally, the Agency is transitioning to Yardi software which should eliminate many of the submission issues caused by current enterprise software. Name(s) of the contact person(s) responsible for corrective action: Janie Anderson, VP Housing Voucher Cluster Planned completion date for corrective action plan: September 30, 2023

View Audit 309583

Finding 401547 (2023-005)

Material Weakness 2023

The Housing Authority of East Baton Rouge Parish

LA

Questioned Costs HUD Housing Programs Subrecipient Monitoring

Eligibility – Housing Voucher Cluster – Assistance Listing No. 14.871 Recommendation: CLA recommends management should designate one person to review a sample of the files that have been recertified each month. The purpose of the review is to determine if the tenant files were prepared in accordanc...

Eligibility – Housing Voucher Cluster – Assistance Listing No. 14.871 Recommendation: CLA recommends management should designate one person to review a sample of the files that have been recertified each month. The purpose of the review is to determine if the tenant files were prepared in accordance with internal policies and verify the compliance deficiencies have been corrected. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: : Following CLA’s recommendation, SVP of Housing Choice will audit a random sample of 10 files on a monthly basis. Agency working with Human Resources contractor to fill open staff positions Name(s) of the contact person(s) responsible for corrective action: Janie Anderson, VP Housing Voucher Cluster Planned completion date for corrective action plan: September 30, 2023

View Audit 309583 Questioned Costs: $1

Finding 401545 (2023-004)

Significant Deficiency 2023

The Housing Authority of East Baton Rouge Parish

LA

HUD Housing Programs Eligibility Significant Deficiency

Special Tests – Top of the Waiting List – Housing Voucher Cluster – Assistance Listing No. 14.871 Recommendation: We recommend that the Authority reviews their standard procedures to ensure requests for informal reviews are granted and notified to the applicant within 30 days of the receipt of the ...

Special Tests – Top of the Waiting List – Housing Voucher Cluster – Assistance Listing No. 14.871 Recommendation: We recommend that the Authority reviews their standard procedures to ensure requests for informal reviews are granted and notified to the applicant within 30 days of the receipt of the request. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: The Agency hired a dedicated Hearing Officer following last year’s audit. Unfortunately, during the period in question, the Hearing Officer went on maternity leave and then subsequently left the position resulting in a delay in completing hearings and reviews. The Agency has since contracted with a 3rd party to conduct hearings and reviews in a timely manner. Name(s) of the contact person(s) responsible for corrective action: Janie Anderson, VP Housing Voucher Cluster Planned completion date for corrective action plan: September 30, 2023

View Audit 309583

Finding 401543 (2023-003)

Significant Deficiency 2023

The Housing Authority of East Baton Rouge Parish

LA

HUD Housing Programs Significant Deficiency Internal Control / Segregation of Duties

Special Tests – Annual HQS and Quality Control Inspections – Housing Voucher Cluster – Assistance Listing No. 14.871 Recommendation: We recommend that management review their controls for conducting HQS biennial and quality control re-inspections and ensure compliance standards are met. Explanatio...

Special Tests – Annual HQS and Quality Control Inspections – Housing Voucher Cluster – Assistance Listing No. 14.871 Recommendation: We recommend that management review their controls for conducting HQS biennial and quality control re-inspections and ensure compliance standards are met. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: Previously, staff used a 90-day window to select Quality Control samples. Doing so caused some QC inspections to be completed past the regulatory time period. Going forward, staff are selecting the sample size from a 45-day window. This allows sufficient time to complete the QC inspection within the regulatory time period. Name(s) of the contact person(s) responsible for corrective action: Janie Anderson, VP Housing Voucher Cluster Planned completion date for corrective action plan: September 30, 2023

View Audit 309583

Finding 401542 (2023-002)

Significant Deficiency 2023

Goodwill Industries of Greater Cleveland and East Central, Ohio, Inc.

OH

Questioned Costs Allowable Costs / Cost Principles Significant Deficiency

In 2024 the manual component of the calculations has been eliminated and all calculations of billing units are now completed using an Excel spreadsheet.

View Audit 309574 Questioned Costs: $1

Finding 401509 (2023-001)

Significant Deficiency 2023

Saint Luke's Health System, INC

MO

Special Tests & Provisions Subrecipient Monitoring Matching / Level of Effort / Earmarking

Finding 2023-001 – Special Tests and Provisions – Key Personnel Information of the federal program: Research and Development (R&D) Cluster Federal Grantor: U.S. Department of Health and Human Services Pass-Through Grantor: Oregon Health & Science University Assistance Listing No.: 93.847 Pass-Throug...

Finding 2023-001 – Special Tests and Provisions – Key Personnel Information of the federal program: Research and Development (R&D) Cluster Federal Grantor: U.S. Department of Health and Human Services Pass-Through Grantor: Oregon Health & Science University Assistance Listing No.: 93.847 Pass-Through Award Number: 1020881_STLUKES Pass-Through Award Period: 09/03/2021-12/31/2023 Pass-Through Grantor: University of Southern California Assistance Listing No.: 93.837 Pass-Through Award Numbers: 117726140/SCON-00003287; 117726140/SCON-00005033 Pass-Through Award Period: 03/22/2019-02/29/2024 Pass-Through Grantor: The Curators of the University of Missouri on Behalf of University of Missouri at Kansas City Assistance Listing No.: 93.103 Pass-Through Award Numbers: 00119058/00079685 Pass-Through Award Period: 09/30/22-09/29/2025 Views of Responsible Officials and Planned Corrective Actions: Quarterly reviews of key personnel effort were instituted in December 2023 to allow for timely identification and communication of potential changes in key personnel or significant reductions of effort. Responsible Individual: Brian Walton, Director Finance Research Operations Completion Date: December 2023

View Audit 309562

Finding 401463 (2023-001)

Significant Deficiency 2023

Housing Authority of the County of Merced

CA

HUD Housing Programs Reporting Significant Deficiency

1. Finding 2023-001 a. Comments on the Finding and Each Recommendation: The Authority concurs with the finding. Additionally, we agree with the recommendations. b. Action(s) Taken or Planned on the Finding To address the significant deficiency in HQS re-inspections, we will immediately implement a s...

1. Finding 2023-001 a. Comments on the Finding and Each Recommendation: The Authority concurs with the finding. Additionally, we agree with the recommendations. b. Action(s) Taken or Planned on the Finding To address the significant deficiency in HQS re-inspections, we will immediately implement a streamlined scheduling and tracking system to ensure timely re-inspections and compliance with 24 CFR Part 982. Additionally, we have since replaced the staff member responsible for the non-compliance and reassigned these responsibilities to another department staff member to better allocate resources and talent to prioritize HQS re-inspections.

View Audit 309554

Finding 401447 (2023-001)

Significant Deficiency 2023

Community Mental Health Services of Livingston County

MI

Procurement, Suspension & Debarment Internal Control / Segregation of Duties § 200.214

Community Mental Health Services of Livingston County Single Audit Report: Corrective Action Plan Year ended September 30, 2023 Finding 2023-001- Suspension and Debarment Requirement: As required by 2 CFR 200.214, Non-Federal entities are subject to the non-procurement debarment and suspension regul...

Community Mental Health Services of Livingston County Single Audit Report: Corrective Action Plan Year ended September 30, 2023 Finding 2023-001- Suspension and Debarment Requirement: As required by 2 CFR 200.214, Non-Federal entities are subject to the non-procurement debarment and suspension regulations implementing Executive Orders 12549 and 12689, 2 CFR part 180. The regulations in 2 CFR part 180 restrict awards, subawards, and contracts with certain parties that are debarred, suspended, or otherwise excluded from or ineligible for participation in Federal assistance programs or activities. Finding: Vendor was not checked for suspension and debarment prior to execution of the contract. Also, the contract did not include certification that vendor was not suspended or debarred. Questioned Cost: None. Recommendation: Contract language should be updated to include certification that vendor is not suspended or debarred. Corrective Action Plan LCCMHA is committed to addressing the concern raised by RPC and agrees with the above recommendation. The Contract Manager will modify existing contract language to include certification that vendors are not suspended or debarred. This change will be implemented for fiscal year 2025 commencing 10/01/24.

View Audit 309552

Finding 401430 (2023-001)

Significant Deficiency 2023

Harrison County, Mississippi

MS

Reporting Significant Deficiency Program Income

CORRECTIVE ACTION PLAN 2023-001 Item 2023-001 Significant Deficiency in Internal Control over Compliance Program Coronavirus State and Local Fiscal Recovery Fund, Assistance Listing 21.027 Compliance Requirement Reporting Criteria The U.S. Department of Treasury SLFRF Compliance and Report...

CORRECTIVE ACTION PLAN 2023-001 Item 2023-001 Significant Deficiency in Internal Control over Compliance Program Coronavirus State and Local Fiscal Recovery Fund, Assistance Listing 21.027 Compliance Requirement Reporting Criteria The U.S. Department of Treasury SLFRF Compliance and Reporting Guidance requires the County prepare quarterly submissions of the Project and Expenditure Report. The 2023 Compliance Supplement identifies multiple Key Line Items in the report, including cumulative expenditures and current period expenditures. Internal control should be established and maintained to provide reasonable assurance that these requirements are complied with by submitting the reports accurately. Condition For the fiscal year under audit, the Project and Expenditure Report reported cumulative expenditures as program income, and the total obligation was reported as cumulative expenditures before the amounts had actually been spent. This was noted on the first two quarterly reports, but the last two quarterly reports were corrected. Cause The County followed a process for reviewing the reports and understanding program requirements; however, the new and emerging nature of the program and related guidance limited the internal knowledge necessary to identify the errors. Effect Required reports submitted to the Federal Agency contained inaccuracies to identified key elements. Recommendation We recommend that the County expand its review process for key reports to consider if new or emerging funding merits additional staff training or the engagement of outside assistance. PERSON RESPONSIBLE FOR CORRECTION ACTION: Becky Haynes, County Auditor CORRECTIVE ACTION PLANNED: We agree with the finding and have initiated discussions to provide training and implement procedures to ensure compliance. We have made these changes during the fiscal year, where the last two quarterly reports were properly stated . ANTICIPATED COMPLETION DATE: September 30, 2023. See prior year finding 2022-001.

View Audit 309550

Finding 401413 (2023-001)

Significant Deficiency 2023

Boulder Crest Foundation

VA

Cash Management Reporting Significant Deficiency § 200.61

Corrective Action Plan For the year ended December 31, 2023 Identifying Number: 2023-001 Finding: The overall process for tracking federal funds spent and the reimbursement process is a manual process performed by one department. The Foundation lacks formal policies for reimbursement and timely...

Corrective Action Plan For the year ended December 31, 2023 Identifying Number: 2023-001 Finding: The overall process for tracking federal funds spent and the reimbursement process is a manual process performed by one department. The Foundation lacks formal policies for reimbursement and timely review of calculations throughout the year. Corrective Action Taken or Planned: Management is actively working with the awarding agencies to fully understand the compliance requirements and implement appropriate policy and process to administer the federal programs. Management is reviewing the current procedures and formalizing the process for tracking and reporting of federal funds. The responsible individuals for the plan are the Chief Executive Officer and Controller.

View Audit 309540

Finding 401406 (2023-001)

Significant Deficiency 2023

Community Mental Health Partnership of Southeast Michigan

MI

Subrecipient Monitoring Internal Control / Segregation of Duties Significant Deficiency § 200.332

Corrective Action Plan Finding: 2023-001 – Communications with Subrecipients (repeat comment) Condition: Contracts with subrecipients did not include portions of required disclosures. Corrective Action Plan: CMHPSM added an additional staff position, Regional Project Assistant, to do additional w...

Corrective Action Plan Finding: 2023-001 – Communications with Subrecipients (repeat comment) Condition: Contracts with subrecipients did not include portions of required disclosures. Corrective Action Plan: CMHPSM added an additional staff position, Regional Project Assistant, to do additional work on contracts. This position was added after the April 2023 Board meeting to assist with contract reviews. The position reports up to CJ Witherow.

View Audit 309525

Finding 401399 (2023-004)

Significant Deficiency 2023

Ouachita Multi-Purpose Community Action Program, Inc.

LA

Subrecipient Monitoring Cash Management Internal Control / Segregation of Duties

Management will have the employee responsible for the review of the LIHEAP Agency Invoice Reports sign each weekly report as approved.

View Audit 309493

Finding 401396 (2023-001)

Significant Deficiency 2023

Ouachita Multi-Purpose Community Action Program, Inc.

LA

Questioned Costs Internal Control / Segregation of Duties

Management is currently working on creating policies and procedures for applications submitted by family members of employees and to require all clients to complete a disclosure that states if they are a family member of an employee. The Executive Director notified the Legislative Auditor and Fourth...

Management is currently working on creating policies and procedures for applications submitted by family members of employees and to require all clients to complete a disclosure that states if they are a family member of an employee. The Executive Director notified the Legislative Auditor and Fourth District Attorney of the matter on June 10, 2024. The board of directors has placed the LIHEAP manager on administrative leave.

View Audit 309493 Questioned Costs: $1

Finding 401370 (2023-001)

Significant Deficiency 2023

Lake Area Improvement Corporation

SD

Significant Deficiency Internal Control / Segregation of Duties

Action Plan for Addressing Audit Finding on Intermediary Relending Program (IRP) Funds 1. Introduction Purpose: To address the audit finding regarding the Intermediary Relending Program (IRP) funds that were not fully insured by the Federal Deposit Insurance Corporation (FDIC) and to implement cor...

Action Plan for Addressing Audit Finding on Intermediary Relending Program (IRP) Funds 1. Introduction Purpose: To address the audit finding regarding the Intermediary Relending Program (IRP) funds that were not fully insured by the Federal Deposit Insurance Corporation (FDIC) and to implement corrective actions to ensure compliance with U.S. Department of Agriculture requirements. Scope: This action plan focuses on ensuring that all reserves and cash in the IRP revolving fund are fully insured or collateralized with U.S. Government obligations, as outlined in 7 CFR Part 4274.332(b). 2. Audit Findings Summary Finding: IRP funds on deposit with a local financial institution were not fully insured by the FDIC. Questioned Costs: None. Criteria: U.S. Department of Agriculture requires all reserves and cash in the IRP revolving fund to be fully insured or collateralized. Cause: Management was aware of the requirement but inadvertently overlooked it due to an influx of cash received during the year. Effect: Inadequate internal controls over compliance could result in noncompliance with grantor agency requirements and jeopardize LAIC’s continued participation in the program. Recommendation: Management should be aware of all program requirements and take appropriate action to correct deficiencies. 3. Action Steps Action Step 1: Review and Understand Program Requirements Finding Addressed: Lack of full insurance or collateralization of IRP funds. Description: Conduct a comprehensive review of 7 CFR Part 4274.332(b) and related requirements to ensure both team members and board of directors understand the compliance obligations. Responsible Person: Executive Director Resources Needed: Access to relevant regulatory documents, training materials. Timeline: Complete review and training by July 15, 2024. Success Criteria: All relevant staff have reviewed the regulations and can demonstrate understanding of the requirements. Action Step 2: Implement Monitoring and Controls Finding Addressed: Inadequate internal controls over compliance. Description: Develop and implement internal controls to monitor the insurance and collateralization status of IRP funds regularly. Responsible Persons: Executive Director and Administrative Assistant Resources Needed: Financial monitoring and monthly reviews. Timeline: Controls implemented by July 31, 2024. Success Criteria: Regular monitoring reports indicating compliance with insurance and collateralization requirements. Action Step 3: Secure Additional Insurance or Collateralization Finding Addressed: IRP funds not fully insured by the FDIC. Description: Ensure all IRP funds on deposit are either fully insured by the FDIC or collateralized with U.S. Government obligations. Responsible Persons: Executive Director and Administrative Assistant Resources Needed: Coordination with local financial institutions, legal advice if needed. Timeline: Complete by September 1, 2024. Success Criteria: Documentation showing that all IRP funds are fully insured or collateralized. Action Step 4: Regular Reporting to Board of Directors Finding Addressed: Inadequate internal controls over compliance. Description: Establish a regular reporting through monthly financials to update governance on the status of IRP fund compliance. Responsible Person/Team: Administrative Assistant Resources Needed: Reporting template, monthly meeting schedules. Timeline: Start regular reporting by September 26, 2024 Success Criteria: Monthly reports submitted to board of directors, with compliance status and any issues addressed. 4. Monitoring and Reporting Monitoring Process: Progress will be monitored through regular monthly meetings and monthly internal audits. Reporting Frequency: Monthly reports to board of directors. Responsible Person/Team: Executive Director and Administrative Assistant 5. Review and Adjustments Review Schedule: The action plan will be reviewed quarterly to assess progress and make necessary adjustments. Adjustment Process: Adjustments will be based on feedback from internal audits and progress reports, with updates approved by board of directors. 6. Conclusion Summary: This action plan outlines the steps to address the audit finding regarding the IRP funds and to ensure full compliance with USDA requirements. Commitment: LAIC is committed to implementing these actions to enhance internal controls, ensure compliance, and maintain continued participation in the IRP program. _________________________________________________________ Brooke Rollag, Executive Director

View Audit 309466

Finding 401357 (2023-005)

Significant Deficiency 2023

Leelanau County, Michigan

MI

Procurement, Suspension & Debarment Internal Control / Segregation of Duties

2023-005 – Procurement, Suspension and Debarment Auditor Description of Condition and Effect. The County did not verify that any of their vendors over $25,000 were not suspended or debarred from doing business with the County. As a result of this condition, the County was exposed to the risk that di...

2023-005 – Procurement, Suspension and Debarment Auditor Description of Condition and Effect. The County did not verify that any of their vendors over $25,000 were not suspended or debarred from doing business with the County. As a result of this condition, the County was exposed to the risk that disbursements of federal awards would be made to vendors suspended or debarred by the federal government. Auditor Recommendation. We recommend that the County verify that all of their vendors over $25,000 spent with federal funds were not suspended or debarred. Corrective Action. The County will be creating a Certification of Suspension/Debarment Status form for vendor certification. Responsible Person. County Administrator/Finance Department. Anticipated Completion Date. June 30, 2024.

View Audit 309459

Finding 401348 (2023-003)

Significant Deficiency 2023

Marygrove Non-Profit Housing Corporation II

MI

Special Tests & Provisions Allowable Costs / Cost Principles HUD Housing Programs

Corrective Action Plan Marygrove Nonprofit Housing Corp II, dba McGivney Bethune Apartments Project No. 044-EE011 Year Ended December 31, 2023 June 20, 2024 FEDERAL AWARD FINDINGS AND QUESTIONED COSTS 2023-003 – Replacement Reserve Account Finding Type. Immaterial noncompliance; Significant def...

Corrective Action Plan Marygrove Nonprofit Housing Corp II, dba McGivney Bethune Apartments Project No. 044-EE011 Year Ended December 31, 2023 June 20, 2024 FEDERAL AWARD FINDINGS AND QUESTIONED COSTS 2023-003 – Replacement Reserve Account Finding Type. Immaterial noncompliance; Significant deficiency in internal control over compliance (Special Tests and Provisions) Federal programs U.S. Department of Housing and Urban Development  Supportive Housing for the Elderly (CFDA# 14.157) Condition. The replacement reserve balance was not maintained in an interest-bearing account. Effect. As a result of this condition, the reserve for replacements account was underfunded during 2023 as no interest was earned. Plan. Management agrees with finding 2023-003 and has developed the following plan. Management will request a waiver from HUD for the interest-bearing requirement on the project’s reserve account due to the fees charged by Bank of America, which will exceed any interest earned on the account. Contact Person Responsible for This Corrective Action: David DeFrain, Vice President of Finance Anticipated completion date: June 30, 2024

View Audit 309440

Corrective Action Plans

Filters