Corrective Action Plans

Finding 372175 (2023-001)

Significant Deficiency 2023

WI

Internal Control / Segregation of Duties Procurement, Suspension & Debarment Matching / Level of Effort / Earmarking

Finding #2023-001 -Limited Segregation of Duties (Prior Year Finding #2022-001) Condition: The available office staff precludes a proper segregation of duties in the control areas reviewed. Effect: Because of the lack of segregation of duties, errors or irregularities could occur and not be detected...

Finding #2023-001 -Limited Segregation of Duties (Prior Year Finding #2022-001) Condition: The available office staff precludes a proper segregation of duties in the control areas reviewed. Effect: Because of the lack of segregation of duties, errors or irregularities could occur and not be detected on a timely basis. Cause: The condition is due to limited staff available. Criteria: Internal controls should be in place that provide adequate segregation of duties. Generally, a system of internal control contemplates separation of duties such that no individual has responsibility to execute a transaction, have physical access to the related assets, and have responsibility or authority to record the transaction. Recommendation: Procedures should be implemented segregating duties among different employees. Management should continue to maintain a working knowledge of matters relating to the district's operations. Response: We agree with this finding and continue to work to achieve segregation of duties whenever cost effective. The cash disbursements process includes approval of purchase orders and matching of approved purchase orders with invoices. Review of account coding is perfo1med by the district accounting staff. The payroll disbursement process includes approval of timesheets and review of coding on an ongoing basis. The Board of Education reviews budget to actual information along with disbursement information monthly.

View Audit 293499

Finding 372173 (2023-002)

Material Weakness 2023

Oak Park Elementary School District 97

IL

Questioned Costs Cash Management Internal Control / Segregation of Duties

Condition: The District claimed $136,026 of capital expenditures between their March 31, 2023 and June 30, 2023 reimbursement claim submitted to the Illinois State Board of Education that could not be supported by documentation. Plan: The District is in the process of restructuring finance and opera...

Condition: The District claimed $136,026 of capital expenditures between their March 31, 2023 and June 30, 2023 reimbursement claim submitted to the Illinois State Board of Education that could not be supported by documentation. Plan: The District is in the process of restructuring finance and operations to align roles and responsibilities. We will implement additional procedures for review and approval of reimbursement claims prior to submission to ensure that expenditures are claimed within a reasonable period of time in relation to when a reimbursement claim is submitted. Anticipated Date of Completion: 6/30/2024 Name of Contact Person: Sheila Johnson, Assistant Superintendent of Finance and Operations

View Audit 293479 Questioned Costs: $1

Finding 372170 (2023-001)

Significant Deficiency 2023

City of Walnut

CA

Internal Control / Segregation of Duties

2023-001 Program: COVID-19 – Coronavirus State and Local Fiscal Recovery Funds Financial Assistance Listing Number: 21.027 Federal Agency: U.S. Department of Treasury Award Year: 2021 Grant Award Number: N/A Compliance Requirement: Reporting Type of Finding: Significant Deficiency in Internal Contro...

2023-001 Program: COVID-19 – Coronavirus State and Local Fiscal Recovery Funds Financial Assistance Listing Number: 21.027 Federal Agency: U.S. Department of Treasury Award Year: 2021 Grant Award Number: N/A Compliance Requirement: Reporting Type of Finding: Significant Deficiency in Internal Control Over Compliance Views of Responsible Officials: The City will revise its policies and procedures to incorporate an appropriate level of review prior to report submission. The Finance Manager will review all program reporting for Coronavirus State and Local Fiscal Recovery Funds and the Director of finance will approve and submit all program reporting. Name of Responsible Person: Karen Ogawa, Director of Finance Implementation Date: February 21, 2024

View Audit 293462

Finding 372131 (2023-002)

Significant Deficiency 2023

Western New Mexico University

NM

Student Financial Aid Reporting Matching / Level of Effort / Earmarking

Enrollment certifications will be sent to the National Student Clearninghouse on a monthly basis, no later than 10 days following the end of the month. The final degree file will be submitted no later than 30 days after the last day of class, with additional awards submitted individually. The Financ...

Enrollment certifications will be sent to the National Student Clearninghouse on a monthly basis, no later than 10 days following the end of the month. The final degree file will be submitted no later than 30 days after the last day of class, with additional awards submitted individually. The Financial Aid Director will review all NSLDS errors.

View Audit 293430

Finding 372126 (2023-003)

Significant Deficiency 2023

Independent School District No. 139

MN

Procurement, Suspension & Debarment Internal Control / Segregation of Duties School Nutrition Programs

SIGNIFICANT DEFICIENCY IN INTERNAL CONTROL OVER COMPLIANCE – U.S. DEPARTMENT OF AGRICULTURE, PASSED THROUGH MINNESOTA DEPARTMENT OF EDUCATION, CHILD NUTRITION CLUSTER – FEDERAL ALN 10.553, 10.555, AND 10.556 2023-003 Internal Control Over Compliance With Federal Suspension and Debarment Requiremen...

SIGNIFICANT DEFICIENCY IN INTERNAL CONTROL OVER COMPLIANCE – U.S. DEPARTMENT OF AGRICULTURE, PASSED THROUGH MINNESOTA DEPARTMENT OF EDUCATION, CHILD NUTRITION CLUSTER – FEDERAL ALN 10.553, 10.555, AND 10.556 2023-003 Internal Control Over Compliance With Federal Suspension and Debarment Requirements Finding Summary 2 CFR § 180 requires the District to establish and maintain effective internal control over compliance with requirements applicable to federal program expenditures, including suspension and debarment requirements applicable to the child nutrition cluster federal program. The District did not have sufficient controls in place within its child nutrition cluster federal program to assure that it was not contracting for goods or services with parties that are suspended or debarred, or whose principals are suspended or debarred from participating in contracts involving the expenditures of federal program funds. Corrective Action Plan Actions Planned – The District will review policies and procedures relating to suspension and debarment for its federal programs and will ensure that all parties with which it contracts for goods or services are eligible to participate in contracts involving the expenditures of federal program funding. Official Responsible – Kerstin Quigley, Business Manager. Planned Completion Date – June 30, 2024. Disagreement With or Explanation of Finding – The District agrees with this finding. Plan to Monitor – The District’s Business Manager and the Superintendent will ensure appropriate controls are in place to verify that any vendor with which the District contracts for federal program goods or services exceeding $25,000 is not listed as suspended or debarred on the federal Excluded Parties List System website.

View Audit 293419

Finding 372115 (2023-002)

Significant Deficiency 2023

Houston Recovery Center, Lgc

TX

Cash Management Reporting Significant Deficiency

Finding #2023-002 – Significant Deficiency and Other Noncompliance. Applicable federal programs: U. S. Department of Treasury, Assistance Listing #21.027, COVID-19 Coronavirus State and Local Fiscal Recovery Funds, Passed through Harris County, Texas, Contract #220163, Contract year: 12/01/22 – 12...

Finding #2023-002 – Significant Deficiency and Other Noncompliance. Applicable federal programs: U. S. Department of Treasury, Assistance Listing #21.027, COVID-19 Coronavirus State and Local Fiscal Recovery Funds, Passed through Harris County, Texas, Contract #220163, Contract year: 12/01/22 – 12/31/24, U. S. Department of Health and Human Services:, Assistance Listing #93.243, Substance Abuse and Mental Health Services Projects of Regional and National Significance, Contract #5H79TI080624-03, Contract year: 09/30/21 – 09/29/22, Contract #5H79TI080624-04, Contract year: 09/30/22 – 09/29/23, Passed through the City of Houston Health Department, Contract #H79SP080300, Contract years: 11/01/21 – 10/31/22, 11/01/22 – 10/31/23 and 06/08/21 – 06/30/23, Assistance Listing #93.788, Opioid STR, Passed through the Texas Health and Human Services Commission, Contract #HHS000357900001, Contract years: 09/01/21 – 08/31/22 and 09/01/22 – 08/31/23, Passed through the University of Texas Health Science Center, San Antonio, Contract #HHS000561800001, Contract year: 09/01/21 – 08/31/22, Assistance Listing #93.959, Block Grants for Prevention and Treatment of Substance Abuse, Passed through the Texas Health and Human Services Commission, Contract #HHS000130500019, Contract years: 09/01/21 – 08/31/22 and 09/01/22 – 08/31/23. Condition and context: Houston Recovery Center is required to submit monthly reimbursement requests for five of its federal programs; one program requires reimbursement requests based on achievement of certain milestones rather than time. Out of a sample of 17 requests, we found six did not have evidence of review and approval as required by Houston Recovery Center’s policies and procedures. Recommendation: Training should be provided to ensure that policies and procedures regarding independent review and approval are followed. Planned corrective action: Houston Recovery Center will strengthen its internal control policies and procedures over independent review and approval of grant payment requests by shifting the primary review and approval process from the Chief Executive Officer (CEO) to the Chief Operating Officer (COO). The COO has full knowledge of allowable costs and has more availability than the CEO, which will make it easier to ensure that our policies and procedures are followed on a consistent basis. The CEO will continue in this role as backup to the COO to ensure immediate access for needed approval. We believe we have a strong system in place used by our accounting department to ensure all expenses underlying the grant payment requests are reviewed, checked for accuracy, and properly approved which further supports the reimbursement policies and procedures. Responsible officer: Leonard Kincaid, Executive Director. Estimated completion date: November 1, 2023.

View Audit 293417

Finding 372110 (2023-001)

Significant Deficiency 2023

Ada County Housing Authority

ID

Significant Deficiency Program Income Internal Control / Segregation of Duties § 200.303

Federal Award Findings and Questioned Costs Reference Number: 2023‐001 Federal Agency Name: U.S. Department of Housing and Urban Development Program Name: Continuum of Care Program Federal Financial Assistance Listing: 14.267 Finding Summary: Program Income Significant Deficiency in Internal Control...

Federal Award Findings and Questioned Costs Reference Number: 2023‐001 Federal Agency Name: U.S. Department of Housing and Urban Development Program Name: Continuum of Care Program Federal Financial Assistance Listing: 14.267 Finding Summary: Program Income Significant Deficiency in Internal Control over Compliance Contact: Jillian Patterson, Deputy Director 2 CFR 200.303(a) establishes that the auditee must establish and maintain effective internal control over the federal award that provides assurance that the entity is managing the federal award in compliance with federal statutes, regulations, and conditions of the federal award. Condition: There was not a documented review by a separate individual outside of the preparer of the program income calculations. The Housing Authority had a review process in place over program income calculations. However, the review process was not documented. Corrective Action Plan: It is important to note that while we do have a process in place for program income calculations, we recognize that it was not adequately documented. To remedy this and ensure compliance with federal regulations, we have developed the following corrective action plan: Implementation of Controls Configure Yardi Voyager PHA software to enforce controls and workflows that ensure consistency and documentation of the review process. This may include setting up automated notifications for review assignments, establishing approval hierarchies, and creating standardized templates for documentation. Designation of Reviewer Utilize Yardi Voyager PHA software to assign designated reviewers for program income calculations, ensuring separation from the preparer. The software will facilitate clear identification of reviewers, their roles, and responsibilities within the review process. Documentation of Review Process Utilize Yardi Voyager PHA software to streamline and document the review process for program income calculations. The software will be configured to include a dedicated workflow specifically for documenting and tracking reviews conducted by separate individuals outside of the preparer. Periodic Monitoring and Evaluation Utilize the reporting and analytics features to monitor and evaluate the effectiveness of the review process. Generate regular reports to assess compliance with established procedures and identify any areas for improvement. Ongoing Compliance Monitoring Utilize Yardi Voyager PHA software to conduct ongoing compliance monitoring of internal controls and processes related to program income calculations. Set up automated alerts and notifications to flag any potential non‐compliance issues for timely resolution. By leveraging the capabilities of Yardi Voyager PHA software, the Housing Authority will enhance its ability to document, track, and monitor the review process for program income calculations, thereby strengthening internal controls and ensuring compliance with 2 CFR 200.303(a).

View Audit 293405

Finding 372098 (2023-001)

Material Weakness 2023

Andrews Center

TX

Material Weakness Reporting Internal Control / Segregation of Duties § 200.303

Finding Summary: The Center was unable to provide records to support amounts reported for 2021 Total Revenue / Net Patient Charges, a part of the lost revenue calculation on PRF required reporting. The Reporting Period 4 PRF Report did not contain evidence of proper review and approval prior to subm...

Finding Summary: The Center was unable to provide records to support amounts reported for 2021 Total Revenue / Net Patient Charges, a part of the lost revenue calculation on PRF required reporting. The Reporting Period 4 PRF Report did not contain evidence of proper review and approval prior to submission. Responsible Individuals: Becki Mangum, Chief Financial Officer Corrective Action Plan: Management will ensure the following evidence is maintained for all required reports: review of all reports prior to submission, and documents to support all reported amounts. Anticipated Completion Date: Ongoing

View Audit 293381

Finding 372080 (2023-001)

Significant Deficiency 2023

University of the Pacific

CA

Reporting Significant Deficiency Internal Control / Segregation of Duties

Pacific understands finding #2023-001 and although the University failed to post the HEERF quarterly reports on its website by the required dates, the reports have been posted and will remain available for any interested parties to view through June 30, 2025. Finding #2023-001 Action: The university...

Pacific understands finding #2023-001 and although the University failed to post the HEERF quarterly reports on its website by the required dates, the reports have been posted and will remain available for any interested parties to view through June 30, 2025. Finding #2023-001 Action: The university notes that throughout the two years that HEERF was available it maintained an active application process which was published on its website through which students could submit applications to request funding. Thus, although the quarterly reports should have been made available, we do not believe that any students were harmed by their absence. The university’s HEERF allocation for students was fully expended as of June 30, 2023, thus no further corrective action is required to resolve this funding. Person(s) responsible: Aquila Galgon | Assistant Vice President of Financial Aid and Enrollment Strategy

View Audit 293358

Finding 372060 (2023-001)

Material Weakness 2023

Coker University

SC

Allowable Costs / Cost Principles Material Weakness Reporting

Enrollment Reporting Name of contact person responsible for Corrective Action Plan: Whitney Costner, Registrar Corrective Action Plan: We concur with the finding. The University is currently implementing additional controls and procedures to ensure that all student roster files are reviewed, updated...

Enrollment Reporting Name of contact person responsible for Corrective Action Plan: Whitney Costner, Registrar Corrective Action Plan: We concur with the finding. The University is currently implementing additional controls and procedures to ensure that all student roster files are reviewed, updated, and submitted in accordance with applicable compliance requirements. Anticipated Completion Date: January 2024

View Audit 293336

Finding 372042 (2023-001)

Material Weakness 2023

Indiana State University

IN

Subrecipient Monitoring Internal Control / Segregation of Duties § 200.303 § 200.332 § 200.521

FINDING 2023-001 Finding Subject: Research and Development Cluster – Subrecipient Monitoring Summary of Finding: Audit Finding 2023-001 states that Indiana State University did not have an effective internal control system in place in order to ensure that subrecipient Federal Audit Clearinghouse rep...

FINDING 2023-001 Finding Subject: Research and Development Cluster – Subrecipient Monitoring Summary of Finding: Audit Finding 2023-001 states that Indiana State University did not have an effective internal control system in place in order to ensure that subrecipient Federal Audit Clearinghouse reports are reviewed in a timely manner for the Research & Development Cluster. Contact Person Responsible for Corrective Action: Hope Waldbieser, Executive Director of Finance Contact Phone Number and Email Address: 812-237-3524 - hope.waldbieser@indstate.edu Views of Responsible Officials: We concur with the finding that Indiana State University should have completed the Federal Audit Clearinghouse review in a more timely manner. Indiana State University conducted the required review, but it was completed later than allowed by the excerpt of 2 CFR 200.521(d) below. 2 CFR 200.521(d) states in part: “The federal awarding agency or pass-through entity responsible for issuing a management decision must do so within six months of acceptance of the audit report by the FAC. . . . “ Indiana State University did have other aspects of subrecipient monitoring in place related to the review of financial and programmatic reports for the subrecipients. Explanation and Reasons for Disagreement: Description of Corrective Action Plan: Effective January 2024, Indiana State University will update its Subrecipient Monitoring procedures in the following ways to ensure the Federal Audit Clearinghouse is reviewed in a timely manner and that appropriate documentation is maintained. 1. Subrecipient Federal Audit Clearinghouse reviews for prior fiscal year audits will be completed quarterly (July, October, January & April) during each fiscal year. The final Subrecipient Federal Audit Clearinghouse review for prior fiscal year audits will be completed in July after all current fiscal year payments have been made. 2. In order to ensure there is a segregation of duties the Office of Contracts & Grants Director will provide the Executive Director of Finance a report of the completed review each quarter including INDIANA STATE BOARD OF ACCOUNTS 20 the final review in July for their review and approval. The Executive Director of Finance will confirm the following: a. There is adequate documentation to support each quarterly review. b. Any deficiencies pertaining to the subrecipients Federal Audit Clearinghouse findings related to an award from Indiana State University are addressed in a timely manner. 3. Any identified issues during these reviews will be appropriately addressed by management as required by 2 CFR 200.332 and 2 CFR 200.521(d). Anticipated Completion Date: Indiana State University will ensure that the revised timeline for these procedures is in place during January 2024.

View Audit 293291

Finding 371994 (2023-005)

Material Weakness 2023

Garrett-Evangelical Theological Seminary

IL

Student Financial Aid Material Weakness Matching / Level of Effort / Earmarking

Finding Number: 2023-005 Condition: During our review of internal controls and testing procedures, it was noted that no reconciliations could be provided. In addition, the Seminary does not have a quality assurance system in place. Planned Corrective Action: Within 1-2 weeks of each month's end, the...

Finding Number: 2023-005 Condition: During our review of internal controls and testing procedures, it was noted that no reconciliations could be provided. In addition, the Seminary does not have a quality assurance system in place. Planned Corrective Action: Within 1-2 weeks of each month's end, the Financial Aid Director requests a report from COD (US Department of Education Common Origination & Disbursement) for Direct Loans disbursed that month. That report is retrieved through EDConnect and reviewed. Financial Aid Director generates a report from Jenzabar Financial Aid system of Direct Loans disbursed for that month. The Financial Aid Director also retrieves a report of Direct Loans applied to students' accounts for that month from Business Office Senior Accountant. These three reports are then compared and reconciled for each month. Contact person responsible for corrective action: Ashley Schreiner, Director of Financial Aid Anticipated Completion Date: Beginning 10/1/2023 (after first month of disbursement)

View Audit 293235

Finding 371935 (2023-001)

Significant Deficiency 2023

Morehouse Place Cooperative

MN

Reporting Internal Control / Segregation of Duties

Housing and Urban Development Morehouse Place Cooperative respectfully submits the following corrective action plan for the year ended December 31, 2023. Westberg Eischens, PLLP 2630 1st Street South P.O. Box 362 Willmar, MN 56201 Audit Period: December 31, 2023 The finding from the December 31, 202...

Housing and Urban Development Morehouse Place Cooperative respectfully submits the following corrective action plan for the year ended December 31, 2023. Westberg Eischens, PLLP 2630 1st Street South P.O. Box 362 Willmar, MN 56201 Audit Period: December 31, 2023 The finding from the December 31, 2023 schedule of findings and questioned costs and the summary schedule of prior audit findings is discussed below. The finding is numbered consistently with the number assigned in the schedules. Summary of audit results does not include findings and is not addressed. Finding 2023-001 Recommendation: We recommend that the Cooperative continue to review the auditor prepared adjusting journal entries and financial statements with the intention of understanding and acceptance of responsibility for reporting under generally accepted accounting principles. Action Taken: The Cooperative will continue to review the auditor prepared adjusting journal entries and financial statements with the intention of understanding and acceptance of responsibility for reporting under generally accepted accounting principles. Planned Completion Date: Not Applicable.

View Audit 293207

Finding 371933 (2023-001)

Significant Deficiency 2023

Saint Joseph's Tower, INC

IN

HUD Housing Programs Allowable Costs / Cost Principles Eligibility

March 1, 2024 FEDERAL AWARD FINDINGS AND QUESTIONED COSTS 2023-001 – Eligibility - Tenant File Documentation Finding Type. Immaterial noncompliance, Significant deficiency in internal controls over compliance (Eligibility) Federal programs U.S. Department of Housing and Urban Development  Supp...

March 1, 2024 FEDERAL AWARD FINDINGS AND QUESTIONED COSTS 2023-001 – Eligibility - Tenant File Documentation Finding Type. Immaterial noncompliance, Significant deficiency in internal controls over compliance (Eligibility) Federal programs U.S. Department of Housing and Urban Development  Supportive Housing for the Elderly (ALN# 14.157)  Section 8 Housing Assistance Payments Program (ALN# 14.195) Condition. Out of a sample of 8 tenant files, we noted three instances where an EIV was not run for a tenant within 90 days of move in. Additionally, out of a sample of 8 tenant files, we noted one instance where a refund check was not disbursed to the tenant within 60 days of move out. Effect. As a result of this condition, employees did not follow HUD guideline procedures. While there were no differences in the amount of subsidies allowed upon review of the subsequent EIV compared to subsidies received, the lack of effective internal controls could lead to future significant noncompliance. Additionally, a former tenant was not disbursed a refund in a timely manner under the HUD guidelines. Plan. Management agrees with finding 2023-001. All files are to be inspected in the current fiscal year to ensure compliance with HUD regulations. File maintenance will be competed following each move in, move out, and annual recertification. In addition to one-on-one training, the housing administrator has signed up for additional training including a WebEx on annual recertification and a basic EIV course. Additional training sessions are forthcoming. Contact Person Responsible for This Corrective Action: Laura Maisevich, Senior Housing Manager Anticipated completion date: December 31, 2024

View Audit 293201

Finding 371928 (2023-001)

Significant Deficiency 2023

East Detroit Area Non-Profit Housing Corporation

MI

Allowable Costs / Cost Principles Eligibility HUD Housing Programs

March 1, 2024 FEDERAL AWARD FINDINGS AND QUESTIONED COSTS 2023-001 – Eligibility - Tenant File Documentation Finding Type. Immaterial noncompliance, Significant deficiency in internal controls over compliance (Eligibility) Federal programs U.S. Department of Housing and Urban Development  Supp...

March 1, 2024 FEDERAL AWARD FINDINGS AND QUESTIONED COSTS 2023-001 – Eligibility - Tenant File Documentation Finding Type. Immaterial noncompliance, Significant deficiency in internal controls over compliance (Eligibility) Federal programs U.S. Department of Housing and Urban Development  Supportive Housing for the Elderly (ALN# 14.157) Condition. Out of a sample of 6 tenant files, it was noted: 1. Two out of six instances where an EIV was not run for a tenant file within 90 days of move in; 2. One out of six instances where the incorrect tenant income was used to calculate the tenant assistance payment; 3. One out of six instances where a tenant moved out and the requested overages were not adjusted for the correct time period; In addition, procedures were not in place to document the applicants, admissions, and removals to and from the tenant waitlist. Effect. As a result of this condition, certain tenant files did not contain all required supporting documentation. In addition, employees did not follow HUD guideline procedures, and/or did not properly calculate the tenant subsidy in HUD Form 50059. While there were no significant differences in the amount of subsidies allowed compared to subsidies received, the lack of effective internal controls could lead to future significant noncompliance. Plan. Management agrees with finding 2023-001. All files are to be inspected in the current fiscal year to ensure compliance with HUD regulations. File maintenance will be competed following each move in and annual recertification. In addition to one-on-one training, the housing administrator has signed up for additional training including a WebEx on annual recertification and a basic EIV course. Additional training sessions are forthcoming. A tenant waitlist will be created and maintained. Contact Person Responsible for This Corrective Action: Laura Maisevich, Senior Housing Manager Anticipated completion date: December 31, 2024

View Audit 293198

Finding 371927 (2023-001)

Significant Deficiency 2023

Highland Area Non-Profit Housing Corporation

MI

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

March 1, 2024 FEDERAL AWARD FINDINGS AND QUESTIONED COSTS 2023-001 – Timely Payment of Mortgage Balance Finding Type. Immaterial noncompliance, Significant deficiency in internal controls over compliance (Special Tests and Provisions) Federal programs U.S. Department of Housing and Urban Deve...

March 1, 2024 FEDERAL AWARD FINDINGS AND QUESTIONED COSTS 2023-001 – Timely Payment of Mortgage Balance Finding Type. Immaterial noncompliance, Significant deficiency in internal controls over compliance (Special Tests and Provisions) Federal programs U.S. Department of Housing and Urban Development Supportive Housing for the Elderly (ALN# 14.157) Condition. Out of 12 monthly payments on the Project's HUD insured mortgage payable, that are due each fiscal year, 1 payment was late, resulting in a late fee. Effect. As a result of this condition, the mortgage was not paid on time. While there was ultimately payment of the delinquent monthly balance, the lack of effective internal controls could lead to future significant noncompliance. Plan. Management agrees with finding 2023-001 and has developed the following plan. Mortgage invoices are now sent to two accounts payable employees, as well as a monitored inbox, to ensure timely processing. Contact Person Responsible for This Corrective Action: David DeFrain Anticipated completion date: July 17, 2023

View Audit 293195

Finding 371926 (2023-001)

Significant Deficiency 2023

Orion Area Not-for Profit Housing Corporation

MI

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

March 1, 2024 FEDERAL AWARD FINDINGS AND QUESTIONED COSTS 2023-001 – Timely Payment of Mortgage Balance Finding Type. Immaterial noncompliance, Significant deficiency in internal controls over compliance (Special Tests and Provisions) Federal programs U.S. Department of Housing and Urban Deve...

March 1, 2024 FEDERAL AWARD FINDINGS AND QUESTIONED COSTS 2023-001 – Timely Payment of Mortgage Balance Finding Type. Immaterial noncompliance, Significant deficiency in internal controls over compliance (Special Tests and Provisions) Federal programs U.S. Department of Housing and Urban Development Supportive Housing for the Elderly (ALN# 14.157) Condition. Out of 12 monthly payments on the Project's HUD insured mortgage payable, that are due each fiscal year, 1 payment was late, resulting in a late fee. Effect. As a result of this condition, the mortgage was not paid on time. While there was ultimately payment of the delinquent monthly balance, the lack of effective internal controls could lead to future significant noncompliance. Plan. Management agrees with finding 2023-001 and has developed the following plan. Mortgage invoices are now sent to two accounts payable employees, as well as a monitored inbox, to ensure timely processing. Contact Person Responsible for This Corrective Action: David DeFrain Anticipated completion date: July 17, 2023

View Audit 293194

Finding 371921 (2023-007)

Significant Deficiency 2023

City of Albuquerque

NM

Procurement, Suspension & Debarment Significant Deficiency Matching / Level of Effort / Earmarking § 200.320

The City agrees with the finding. Over the past several years, the City has developed a significant number of guidance documents and trainings in the area of federal procurement. All of the guidance documents for Central Purchasing are housed in the Purchasing SharePoint site. The guidance and train...

The City agrees with the finding. Over the past several years, the City has developed a significant number of guidance documents and trainings in the area of federal procurement. All of the guidance documents for Central Purchasing are housed in the Purchasing SharePoint site. The guidance and training have in the past been directed at the members of the Purchasing Liaison User Group, but given the continued findings, the City intends to reach out to a much broader group to ensure compliance, including Directors, Deputy Directors, and program representatives. This will be complete by June 30, 2024.

View Audit 293176

Finding 371917 (2023-004)

Material Weakness 2023

City of Albuquerque

NM

Material Weakness Matching / Level of Effort / Earmarking Internal Control / Segregation of Duties § 200.303

The City agrees with the finding. The City will ensure that the federal report preparers reconcile all entries to program limitations prior to having the report submitted for final certification. This will be complete by June 30, 2024.

View Audit 293176

Finding 371751 (2023-004)

Material Weakness 2023

Cedars-Sinai Health System

CA

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

Finding 2023-004 Internal control deficiency and noncompliance over Activities Allowed or Unallowed, Allowable Costs/Cost Principles, and Reporting related to expenses attributable to coronavirus reported in the provider relief fund reports. The entity has excess lost revenues to cover all payment...

Finding 2023-004 Internal control deficiency and noncompliance over Activities Allowed or Unallowed, Allowable Costs/Cost Principles, and Reporting related to expenses attributable to coronavirus reported in the provider relief fund reports. The entity has excess lost revenues to cover all payments received (excluding the expenses submitted). Therefore, no refund is required for any payments received. Since the program has ended, the management has implemented the following procedures for future grants: 1) An education session occurred on February 15, 2024, with the relevant parties across Huntington Health entities to formally implement a review process whereby the Controller will review the support files prior to filings being made related to grant applications/programs across any of Huntington’s entities. Documentation of this review will be retained in the central file repository. These steps and controls will be updated and documented in the departmental policy. 2) A central folder on the Huntington Hospital’s main accounting drive has been created. This folder will be populated with all support for filed figures related to grant applications/programs across the hospital’s various entities. The support will be validated as having been placed into this folder as part of the reporting out process by the accounting manager and Controller handling the reporting. Files will be retained in this central drive for a minimum of 7 years. These steps and controls will be updated and documented in the departmental policy. Contact Person: Byron Davis, Controller and Steven Mohr, Senior Vice President and Chief Financial Officer, Huntington Hospital Anticipated Completion Date: Completed

View Audit 293159 Questioned Costs: $1

Finding 371633 (2023-001)

Significant Deficiency 2023

Cedars-Sinai Health System

CA

Allowable Costs / Cost Principles Cash Management Internal Control / Segregation of Duties

Finding 2023-001 Internal control deficiency and noncompliance over Activities Allowed or Unallowed and Allowable Costs/Cost Principles related to salary cap limitation. In response to this finding management will implement the following: We are revising our internal controls to more frequently p...

Finding 2023-001 Internal control deficiency and noncompliance over Activities Allowed or Unallowed and Allowable Costs/Cost Principles related to salary cap limitation. In response to this finding management will implement the following: We are revising our internal controls to more frequently perform our salary cap reconciliation ensuring the appropriate sponsor invoicing for employees who are over the salary cap limitation. For the salary cap variances that were identified through the previous reconciliation process, they will be adjusted and posted by the close of our March 2024 accounting period. Lastly, we will offset our cash for the March 2024 letter of credit draw down process in the Payment Management System, and incorporate adjustments in our March 2024 invoices for federal pass-thru awards. In addition, the salary cap adjustment program in our new ERP system was designed to remove the defect experienced in our legacy system. Contact Person: Nicole Anderson Leonard, Vice President, Research and Vice Dean Anticipated Completion Date: March 31, 2024

View Audit 293159

Finding 371629 (2023-002)

Significant Deficiency 2023

Cedars-Sinai Health System

CA

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

Finding 2023-002 Internal control deficiency and noncompliance over Equipment and Real Property Management related to the physical inventory of property. In response to this finding management will implement the following: An education session occurred on February 7, 2024, with the relevant parti...

Finding 2023-002 Internal control deficiency and noncompliance over Equipment and Real Property Management related to the physical inventory of property. In response to this finding management will implement the following: An education session occurred on February 7, 2024, with the relevant parties across the Cedars-Sinai Research Facilities department. The session focused on the uniform guidance, more specifically the requirements to perform a physical inventory of property at least once every two years as set forth in CFR 200.313 (d) (2). We will schedule follow up sessions in March 2024 (first session scheduled for March 1st, second session TBD) to review and update existing policies and procedures to ensure future transfer of knowledge, as well as finalize a plan of action in order to complete a physical inventory of research equipment by the end of the fiscal year period, June 2024. Contact Person: Nicole Anderson Leonard, Vice President, Research and Vice Dean Anticipated Completion Date: June 30, 2024

View Audit 293159

Finding 371623 (2023-006)

Material Weakness 2023

Hitchcock Independent School District

TX

Internal Control / Segregation of Duties Material Weakness School Nutrition Programs

Corrective Action Plan: All borrowed cash has been transferred back to proper accounts. Journal entries and bank transfers shown above. District Administration will assess staffing needs to determine separation of duties and to determine additional staffing needs to meet the requirements of duty ...

Corrective Action Plan: All borrowed cash has been transferred back to proper accounts. Journal entries and bank transfers shown above. District Administration will assess staffing needs to determine separation of duties and to determine additional staffing needs to meet the requirements of duty separation in connection with the reconciliation process. Currently, the Finance Department consists of one Payroll/Benefits position, one Accounts Payable/Receivable Position, one Grants Specialist Position, and one Finance Director. In prior years, the Finance Department had two additional positions that have since been eliminated, causing position duties to be absorbed amongst the remaining staff. Anticipated Completion Date: March 29, 2024

View Audit 293147

Finding 371620 (2023-005)

Material Weakness 2023

Hitchcock Independent School District

TX

Allowable Costs / Cost Principles Cash Management Material Weakness

Corrective Action Plan: Reimbursement of Department of Agriculture cash has been completed for year-end 2022-2023. District Administration will assess staffing needs to determine separation of duties and to determine additional staffing needs to meet the requirements of duty separation. Currently,...

Corrective Action Plan: Reimbursement of Department of Agriculture cash has been completed for year-end 2022-2023. District Administration will assess staffing needs to determine separation of duties and to determine additional staffing needs to meet the requirements of duty separation. Currently, the Finance Department consists of one Payroll/Benefits position, one Accounts Payable/Receivable Position, one Grants Specialist Position, and one Finance Director. In prior years, the Finance Department had two additional positions that have since been eliminated, causing position duties to be absorbed amongst the remaining staff. Journal postings to reimburse shown below. Anticipated Completion Date: March 29, 2024

View Audit 293147

Finding 371615 (2023-001)

Significant Deficiency 2023

Claremont Unified School District

CA

Eligibility HUD Housing Programs School Nutrition Programs

Management's Response: We concur. View of Responsible Officials and Corrective Action Plan In the 2023-24 school year, Nutrition Services has implemented an additional step when processing meal applications to improve accuracy. Meal applications are verified a total of three times. The Nutritio...

Management's Response: We concur. View of Responsible Officials and Corrective Action Plan In the 2023-24 school year, Nutrition Services has implemented an additional step when processing meal applications to improve accuracy. Meal applications are verified a total of three times. The Nutrition Specialist is the Determining Official, the Director is the Confirming Official, and either the Secretary or Clerk is the Verifying official. Each official reviews the application for accuracy. Name of responsible individual: Brenda Zarate Implementation Date: 7/1/2023

View Audit 293142

Corrective Action Plans

Filters