Corrective Action Plans

Finding 386303 (2023-002)

Significant Deficiency 2023

VA

Student Financial Aid Subrecipient Monitoring Significant Deficiency

Recommendation: We recommend that the University engage a third party or perform the risk assessment for the areas required by the Gramm-Leach-Bliley Act and ensure that there are documented safeguards for identified risks. Explanation of disagreement with audit finding: There is no disagreement wi...

Recommendation: We recommend that the University engage a third party or perform the risk assessment for the areas required by the Gramm-Leach-Bliley Act and ensure that there are documented safeguards for identified risks. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: Acquired Isora GRC, a software tool to facilitate and document compliance with GLBA requirements and the corresponding NIST 800-171 information security framework. Management has also created an Enterprise Risk Management Committee which will incorporate compliance with GLBA as a top priority. Name(s) of the contact person(s) responsible for corrective action: Carl Whitman, Associate Vice President and Chief Information Officer (703-526-6901) Planned completion date for corrective action plan: Action plan by June 1, 2024, including decision regarding use of a third party or in-house resources to perform the risk assessment. Completion of 90% of action plan items within one year.

View Audit 298705

Finding 386290 (2023-002)

Significant Deficiency 2023

University of Maine System

ME

Reporting Significant Deficiency Matching / Level of Effort / Earmarking § 200.328 § 200.329

Higher Education Emergency Relief Funds – Assistance Listing No. 84.425 Recommendation: We recommend the University review their reporting procedures to ensure reports are being uploaded and submitted timely. University of Maine at Farmington Condition: During our testing of 11 quarterly reports, ...

Higher Education Emergency Relief Funds – Assistance Listing No. 84.425 Recommendation: We recommend the University review their reporting procedures to ensure reports are being uploaded and submitted timely. University of Maine at Farmington Condition: During our testing of 11 quarterly reports, it was noted that University of Maine at Farmington (UMF) had two reports of two sampled that were not submitted timely. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: The upcoming reporting requirements have been added to the calendar and invoicing spreadsheet of UMF’s Director of Finance. Additionally, due dates and requirements are noted by both UMF’s Chief Business Officer (CBO) and its Vice President for Student Affairs and Enrollment Management. The CBO will continue to perform a final review prior to submission. Name(s) of the contact person(s) responsible for corrective action: Kathleen Falco, Director of Finance for the University of Maine at Farmington Planned completion date for corrective action plan: Completed

View Audit 298686

Finding 386285 (2023-001)

Significant Deficiency 2023

University of Maine System

ME

Student Financial Aid Reporting Significant Deficiency

Student Financial Assistance Cluster – Assistance Listing No. Various Recommendation: We recommend the University review their reporting procedures to ensure that students’ statuses are accurately and timely reported to the National Student Loan Data System (NSLDS) within the appropriate timeframe ...

Student Financial Assistance Cluster – Assistance Listing No. Various Recommendation: We recommend the University review their reporting procedures to ensure that students’ statuses are accurately and timely reported to the National Student Loan Data System (NSLDS) within the appropriate timeframe as required by regulations. University of Maine Condition: During our testing of 40 students, we noted that seven of the 17 University of Maine (UM) students tested had changes in enrollment status that were not reported in a timely manner. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: The University will update its protocols for post-term reporting to the National Student Clearinghouse (NSC) each academic term to ensure students who have applied for graduation, and are pending final eligibility review, are assigned a withdrawn status until such time their degree(s) are conferred or they are reported as enrolled in a future term. Guidance received from the NSC School Operations team has been forwarded to UMS:IT, and steps to identify (or develop) and deploy the necessary reports are underway. The first round of updated reporting protocols are planned to take place in May 2024, for Spring 2024 graduation applicants. Name(s) of the contact person(s) responsible for corrective action: W. Sam Carrell, Registrar for the University of Maine Connie Smith, Director of Financial Aid for the University of Maine Planned completion date for corrective action plan: May 2024

View Audit 298686

Finding 386267 (2023-002)

Significant Deficiency 2023

Hugo Public School District No. I-39, Choctaw County, Ok

OK

Subrecipient Monitoring Internal Control / Segregation of Duties Special Tests & Provisions

Hugo Schools will communicate to and require that construction contracts provide proof of compliance such as payroll documents or other certifying records. Hugo schools administration will ensure that construction companies under contract will abide by all rules mandated by the Davis Bacon Act

View Audit 298674

Finding 386223 (2023-001)

Significant Deficiency 2023

Rockingham Nutrition and Meals on Wheels Program

NH

Subrecipient Monitoring Reporting Significant Deficiency § 200.328 § 200.329

Audit Finding Reference: 2023-001 Improve Controls Over Reporting Planned Corrective Action: 1. Request a list from DHHS of definitions of income types by program in the Quarterly Reports. Ensure that this list provides clarity on how to report income that is not explicitly tied to a single progr...

Audit Finding Reference: 2023-001 Improve Controls Over Reporting Planned Corrective Action: 1. Request a list from DHHS of definitions of income types by program in the Quarterly Reports. Ensure that this list provides clarity on how to report income that is not explicitly tied to a single program. 2. Review AFY23 and AFY24-to-date reports against these criteria (once received), and re-submit any reports which may need to be modified to comply with the guidance. 3. Going forward, the Quarterly Reports will be generated differently. The Client Services Manager will prepare actuals by program for number of clients and units. The Director of Administration will prepare actuals by program for income and expense. The Executive Director will compile the final report, which will not be submitted until both the Client Services Manager and Director of Administration have both checked the reports and electronically signed them. In the absence of specific guidance from DHHS to the contrary, any non-program-specific income will be allocated to programs by share of service units delivered. Planned Implementation Date of Corrective Action: 1. 3/29/24. 2. 6/30/24. 3. 4/15/24. Person Responsible for Corrective Action: Tim Diaz, Executive Director

View Audit 298652

Finding 386214 (2023-002)

Material Weakness 2023

Klamath Falls City School District

OR

Questioned Costs Internal Control / Segregation of Duties

Please find below the corrective action plans for Klamath Falls City School’s audit for the period ending June 30, 2023. Finding: Excess indirect costs of $70,531 were requested and received. Department’s Response: Cause: The excess was primarily due to a period of transition of business staff. ...

Please find below the corrective action plans for Klamath Falls City School’s audit for the period ending June 30, 2023. Finding: Excess indirect costs of $70,531 were requested and received. Department’s Response: Cause: The excess was primarily due to a period of transition of business staff. This created a duplicated claim for 2 quarters for a majority of the amount identified. After the transition of department personnel, the corrective action to assure that this issue does not happen again is to submit claims monthly and claim indirect costs at that time. At the end of each quarter review each account and reconcile expenses to claimed indirect costs to assure we are 100% in compliance. Name of Responsible Person: Charity Roach, Business Manager Name of Department Contact: Charity Roach, Business Manager Projected Implementation Date: Implemented

View Audit 298650 Questioned Costs: $1

Finding 386207 (2023-002)

Significant Deficiency 2023

City of Worcester, Massachusetts

MA

Reporting Significant Deficiency Internal Control / Segregation of Duties

DEPARTMENT OF HEALTH AND HUMAN SERVICES 2023-002 Head Start Program – Assistance Listing Number 93.600 Recommendation: We recommend procedures be implemented to file all required reports timely. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action t...

DEPARTMENT OF HEALTH AND HUMAN SERVICES 2023-002 Head Start Program – Assistance Listing Number 93.600 Recommendation: We recommend procedures be implemented to file all required reports timely. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: Program management has begun the process of strengthening procedures to timelier file all reports. Name(s) of the contact person(s) responsible for corrective action: Program management. Planned completion date for corrective action plan: As soon as possible.

View Audit 298624

Finding 386204 (2023-001)

None 2023

Ncr of Victor Hdfc, Inc. Dba Autumn Grove

OH

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

The security deposit has been refunded and management is currently reviewing internal controls over security deposit refunds to ensure all deposits are returned timely.

View Audit 298618

Finding 386178 (2023-004)

Significant Deficiency 2023

Lincoln University of the Commonwealth System of Higher Education

PA

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

Action taken in response to finding: Fiscal Affairs will review reporting requirements for any funding received; communicate such requirements to the appropriate parties within the University; and coordinate with Office of Research & Sponsored Programs to ensure that the reporting requirement is me...

Action taken in response to finding: Fiscal Affairs will review reporting requirements for any funding received; communicate such requirements to the appropriate parties within the University; and coordinate with Office of Research & Sponsored Programs to ensure that the reporting requirement is met.

View Audit 298611

Finding 386170 (2023-004)

None 2023

Municipality of Culebra

PR

Subrecipient Monitoring Reporting Internal Control / Segregation of Duties

The quarterly reports mentioned in the findings were prepared and submitted to the Puerto Rico Housing Department for review and evaluation.

View Audit 298592

Finding 386160 (2023-001)

Material Weakness 2023

Morris Heights Health Center, Inc. and Subsidiaries

NY

Material Weakness Reporting Internal Control / Segregation of Duties

2023-001 - Accuracy of Reporting to the PRF Portal: U.S. Department of Health and Human Services, COVID-19: Provider Relief Fund and American Rescue Plan ("ARP") Rural Distribution: Assistance Listing Number 93.498 - Reporting Recommendation We recommend that the Organization strengthen its system...

2023-001 - Accuracy of Reporting to the PRF Portal: U.S. Department of Health and Human Services, COVID-19: Provider Relief Fund and American Rescue Plan ("ARP") Rural Distribution: Assistance Listing Number 93.498 - Reporting Recommendation We recommend that the Organization strengthen its system of internal controls to ensure that all reporting that is done and submitted is consistent with requirements and instructions as provided by regulatory agencies. Action Taken Morris Heights Health Center is in the process of updating its Financial Policy & Procedures to strengthen its system of internal controls by including language that requires adequate review of the requirements and instructions of all regulatory reports. The policy also requires the review & sign-off of all regulatory reports by the Controller/CFO prior to any submission. We expect this to be corrected by April 30th, 2024.

View Audit 298583

Finding 386124 (2023-004)

Significant Deficiency 2023

Brooklyn Unit School District No. 188

IL

Reporting Internal Control / Segregation of Duties

We recommend that steps are taken, including oversight by a second employee, to ensure that all quarterly expenditure reports are filed by the due dates. Management will take the necessary steps to file all quarterly expenditure reports on time in the future.

View Audit 298533

Finding 386119 (2023-002)

Material Weakness 2023

Northwestern Consolidated School District of Shelby County

IN

School Nutrition Programs Internal Control / Segregation of Duties Allowable Costs / Cost Principles § 200.303

FINDING 2023-002 Finding Subject: Child Nutrition Cluster – Internal Controls Federal Agency: Department of Agriculture Federal Programs: School Breakfast Program, National School Lunch Program Assistance Listing Numbers: 10.553, 10.555 Federal Award Number: 7350 Pass-Through Entity: Indiana Departm...

FINDING 2023-002 Finding Subject: Child Nutrition Cluster – Internal Controls Federal Agency: Department of Agriculture Federal Programs: School Breakfast Program, National School Lunch Program Assistance Listing Numbers: 10.553, 10.555 Federal Award Number: 7350 Pass-Through Entity: Indiana Department of Education Compliance Requirements: Activities Allowed and Unallowed, Allowable Costs/Costs Principles, Special Tests and Provisions-Verification of Free and Reduced Price Applications Summary of Finding: Material Weakness Internal Controls were not implemented to prevent noncompliance related to the verification of free and reduced applications and hours and wages. A new internal control procedure will be implemented for the second review of the free and reduced applications and for the hours and wages. Repeat Finding: Prior audit finding number was 2021-002. Contact Person Responsible for Corrective Action: Tammy Achenbach Contact Information: Phone: 317-835-7461 Email: tachenbach@nwshelbyschools.org Views of Responsible Officials: Management agrees with the finding. Management will ensure proper documented review of amounts billed for personnel and for the free and reduce verification 􀀃 INDIANA STATE BOARD OF ACCOUNTS 23 First ~ Best ~ Different! 􀀃 Northwestern􀀃 Consolidated􀀃School􀀃 District􀀃of􀀃Shelby􀀃County􀀃 􀀃 4920􀀃W.􀀃600􀀃N􀀃 Fairland,􀀃IN􀀃46126􀀃 􀀃 Phone:􀀃317􀍲835􀍲7461􀀃 Fax:􀀃317􀍲835􀍲4441􀀃 􀀃 www.nwshelbyschools.org􀀃 Superintendent􀀃 Mr.􀀃Chris􀀃Hoke􀀃 􀀃 Business􀀃Manager􀀃 Mrs.􀀃Tammy􀀃Achenbach􀀃 􀀃 Technology􀀃Director􀀃 Mr.􀀃Josh􀀃Landis􀀃 􀀃 Maintenance􀀃Director􀀃 Mr.􀀃Terry􀀃Coons􀀃 􀀃 Transportation􀀃Director􀀃 Mrs.􀀃Susie􀀃Childress􀀃 􀀃 Special􀀃Education􀀃Director􀀃 Mrs.􀀃Terri􀀃Branson􀀃 􀀃􀀃 School􀀃Board􀀃 Mr.􀀃David􀀃Ploog􀀃 Mrs.􀀃Brooke􀀃Lockett􀀃 Mrs.􀀃Cressa􀀃Rund􀀃 Mr.􀀃Ken􀀃Polston􀀃 Mr.􀀃Terry􀀃Morgan􀀃 Mr.􀀃Travis􀀃Hensler􀀃 Mrs.􀀃Karen􀀃Humphreys􀀃 Cont. page 2 Description of Corrective Action Plan: Review for personnel charges: During the monthly meeting to review the FSMC invoice, along with Operations Ledger, Client P&L, Monthly Reimbursements, Invoices, USDA Reconciliation, Direct Certification, The Hours and Wages will be reviewed and approved. Free and Reduced Verification: Internal Controls for the first round of Free and Reduce Applications will be verified by the Data Controller or the Business Manager and the verification of the random testing of the verifications will be done by the Business Manager or the Deputy Treasurer. Anticipated Completion Date: The district will start the new internal control procedure March 2024 to correct for the 23-24 school year.

View Audit 298525

Finding 386118 (2023-001)

Material Weakness 2023

Hydro-Eakly Independent School District #11

OK

Procurement, Suspension & Debarment Subrecipient Monitoring Material Weakness

The School Superintendent will review all projects funded by Federal funds to determine if any projects are considered construction projects. The Superintendent will require all such contracts to include prevailing wage clauses to ensure that federal wage rates and fringe benefits, are met, as requ...

The School Superintendent will review all projects funded by Federal funds to determine if any projects are considered construction projects. The Superintendent will require all such contracts to include prevailing wage clauses to ensure that federal wage rates and fringe benefits, are met, as required by the Davis-Bacon Act. The Superintendent will review weekly payroll reports provided by the contractor to ensure adherence to the contract clauses. The Superintendent will survey the job site weekly to ensure that required work site notices are posted.

View Audit 298524

Finding 386104 (2023-001)

Significant Deficiency 2023

Northwest Mississippi Community College

MS

Student Financial Aid Subrecipient Monitoring Internal Control / Segregation of Duties

Name Connie Joseph Title Controller Phone (662) 562-3292 Email cjoseph@northwestms.edu Finding 2023-001: U.S. Department of Education-Student Financial Assistance Management is in the process of developing a written information security program. Anticipated Completion Date: Prior to June ...

Name Connie Joseph Title Controller Phone (662) 562-3292 Email cjoseph@northwestms.edu Finding 2023-001: U.S. Department of Education-Student Financial Assistance Management is in the process of developing a written information security program. Anticipated Completion Date: Prior to June 30, 2024

View Audit 298492

Finding 386101 (2023-002)

Significant Deficiency 2023

Wellspace Health

CA

Subrecipient Monitoring Internal Control / Segregation of Duties

Corrective Action Plan: The Organization will strengthen procedures to ensure discounts for sliding fee is applied consistently and accurately. Immediately, the Organization will conduct monthly application audits. An audit of 25 sliding fee application forms completed in the month prior will be exa...

Corrective Action Plan: The Organization will strengthen procedures to ensure discounts for sliding fee is applied consistently and accurately. Immediately, the Organization will conduct monthly application audits. An audit of 25 sliding fee application forms completed in the month prior will be examined for accuracy, along with their supporting data. All information from these applications will be cross‐verified in NextGen. The results from the sliding fee monthly audits will be monitored and reported quarterly at the Quality Assurance and Quality Improvement meetings. This has continued to occur monthly. We will be implementing a workflow adjustment stating all Slide applications will be noted in the system with a 30day expire date. This will ensure the staff will be able to notify the patient they would need to begin the process over and present the supporting documentation. Once the documentation is received the timeframe will extend to the one year. Furthermore, the Organization will continue the practice of conducting skills assessments at the start of the year and once more in July. These assessments are crucial as they help pinpoint staff members who might benefit from refresher training. Moreover, a meeting has been scheduled to finalize the days and times for virtual sliding fee application training. This training, aimed at all staff who handle a sliding fee form, will be spread out over four weeks, with one session per week lasting an hour. Additionally, the Organization will introduce a sliding fee training video to the new employee orientation. After completing their NextGen training, staff will receive this training video via email. Furthermore, this video will also be sent to all health center leadership to be utilized at the health center level. Estimated completion date: September 30, 2024 Contact person: Shannon Potter, Deputy Chief of Business Service

View Audit 298487

Finding 386100 (2023-005)

Significant Deficiency 2023

Shelby County, Tn

TN

Allowable Costs / Cost Principles Internal Control / Segregation of Duties

Rosita Timmons, Deputy Administrator, is currently working with the Project Officer, Jennifer Gray, to gain a better understanding of the finding and the changes necessary to comply with the site visit report. In prevoius conversations with Melody Berry, former project officer, during 2023, the chan...

Rosita Timmons, Deputy Administrator, is currently working with the Project Officer, Jennifer Gray, to gain a better understanding of the finding and the changes necessary to comply with the site visit report. In prevoius conversations with Melody Berry, former project officer, during 2023, the changes were considered acceptable. The department was moving forward with the plan to update duties. After discussing the logistics of adding Non-Medical Case Management, it was determined by the Planning Council Evaluation and Assessment Committee which consists of sub-recipients and clients that it is not feasible to add Non-Medical Case Management because it would create a barrier for the clients due to having to see multiple staff and make multiple appointments, which is something the clients and provider agreed would cause a barrier. The Evaluation Committee agreed that EIS workers could take some of those Non-Medical Case Management duties from the medical case managers which will give them more time to focus on the clients' helthcare outcomes. Final approval and acceptance of the corrective action taken is still pending. Upon final approval from the HRSA, this finding will be considered addressed and closed.

View Audit 298480

Finding 386097 (2023-001)

Significant Deficiency 2023

City of Portsmouth

NH

Procurement, Suspension & Debarment Subrecipient Monitoring Reporting

The City of Portsmouth, New Hampshire respectfully submits the following corrective action plan for the year ended June 30, 2023. Audit period: July 1, 2022 – June 30, 2023 The finding from the schedule of findings and questioned costs is discussed below. The finding is numbered consistently with th...

The City of Portsmouth, New Hampshire respectfully submits the following corrective action plan for the year ended June 30, 2023. Audit period: July 1, 2022 – June 30, 2023 The finding from the schedule of findings and questioned costs is discussed below. The finding is numbered consistently with the number assigned in the schedule. FINDING—FEDERAL AWARD PROGRAMS AUDITS DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT 2023-001 Community Development Block Grant - Assistance Listing Number 14.218 Recommendation: We recommend the City enhance internal controls and procedures to comply with all FFATA reporting requirements. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: Some FFATA reports were not entered timely into FSRS in FY 23. This was due to an incomplete understanding about the requirement as well as no FFATA reporting requests by the federal granting agency (HUD) to the City. All required FFATA reports were entered into the FSRS after the deadlines, and City staff responsible for FFATA reporting have completed additional training on the requirements. We do not anticipate untimely reports to the FSRS in the future. Name(s) of the contact person(s) responsible for corrective action: Elise Annunziata, Community Development Director Planned completion date for corrective action plan: All required FFATA reports were already entered into the FSRS, and City staff responsible for FFATA reporting have completed additional training on the requirements. We do not anticipate untimely reports to the FSRS in the future.

View Audit 298471

Finding 386093 (2023-003)

Significant Deficiency 2023

Municipality of Rio Grande

PR

Subrecipient Monitoring Reporting Significant Deficiency

As an internal control, the accountant in charge of the program will keep monthly reports of the expenditures to expedite the collection of information and submit timely and complete reports. The documentation of the reports will be physically filed and digitally saved in the accounting files. Impl...

As an internal control, the accountant in charge of the program will keep monthly reports of the expenditures to expedite the collection of information and submit timely and complete reports. The documentation of the reports will be physically filed and digitally saved in the accounting files. Implementation Date: Fiscal Year 2023-2024 Responsible Person: Mr. Ángel L. Reyes Matos, Finance Director

View Audit 298462

Finding 386092 (2023-002)

None 2023

Sacred Heart Village II Inc.

DE

HUD Housing Programs Internal Control / Segregation of Duties

Corrective Action Plan: Sacred Heart Village II Inc. will contact its HUD representative to discuss this matter and determine if there is an obligation to repay any previous subsidies received. Contact Person Responsible for Corrective Action: Karen Smith, CFO Anticipated Completion Date of Correcti...

Corrective Action Plan: Sacred Heart Village II Inc. will contact its HUD representative to discuss this matter and determine if there is an obligation to repay any previous subsidies received. Contact Person Responsible for Corrective Action: Karen Smith, CFO Anticipated Completion Date of Corrective Action: Immediately

View Audit 298461

Finding 386090 (2023-002)

Significant Deficiency 2023

Delaware College of Art and Design

DE

Questioned Costs Internal Control / Segregation of Duties Special Tests & Provisions

Internal control procedures will be strengthened between Financial Aid, the Registrar’s Office, and the Bursar’s Office.

View Audit 298459 Questioned Costs: $1

Finding 386084 (2023-001)

Significant Deficiency 2023

Miracosta Community College District

CA

Special Tests & Provisions Student Financial Aid Subrecipient Monitoring

During the year-end audit testing phase, the Financial Aid office was notified in August 2023 of the deficiencies noted on this finding. The Financial Aid office immediately took action to implement the recommendations in August 2023. The District established effective controls in August 2023 to en...

During the year-end audit testing phase, the Financial Aid office was notified in August 2023 of the deficiencies noted on this finding. The Financial Aid office immediately took action to implement the recommendations in August 2023. The District established effective controls in August 2023 to ensure the return of funds occurs within 45 days from the date the institution determines the student withdrew from all classes and that the withdrawal determination is performed within the required timeframe. Additionally, the District implemented procedures in August 2023 to ensure that the academic calendar loaded in the financial aid software is accurate and based on the most up to date information. The District implemented procedures in August 2023 to ensure that the correct student status is utilized in the calculation of Return to Title IV.

View Audit 298451

Finding 386080 (2023-001)

None 2023

Town of Wakefield

MA

Reporting Internal Control / Segregation of Duties

CORRECTIVE ACTION PLAN Oversight Agency for Audit: U.S. Department of Elementary and Secondary Education The Town of Wakefield, Massachusetts respectfully submits the following corrective action plan for the year ended June 30, 2023. Name and address of independent public accounting firm: ...

CORRECTIVE ACTION PLAN Oversight Agency for Audit: U.S. Department of Elementary and Secondary Education The Town of Wakefield, Massachusetts respectfully submits the following corrective action plan for the year ended June 30, 2023. Name and address of independent public accounting firm: Powers & Sullivan, LLC 100 Quannapowitt Parkway, Suite 101 Wakefield, MA 01880 Audit period: July 1, 2022 through June 30, 2023 The finding from the June 30, 2023, schedule of findings and questioned costs is discussed below. The finding is numbered consistently with the number assigned in the schedule. FINDINGS—FEDERAL AWARD PROGRAMS AUDITS U.S. DEPARTMENT OF TREASURY COVID-19 - Coronavirus State and Local Fiscal Recovery Funds Federal Assistance Listing Number 21.027 2023-001: Reporting to the Federal Government Compliance Requirement: Reporting Type of Finding: Compliance and Internal Control over Compliance – Other Matter Criteria or Specific Requirement: Grantees must comply with reporting requirements established by the U.S. Treasury that includes reporting the total grant expenditures incurred for the reporting period. Since the Town is a Non-Entitlement Unit that was allocated less than $10.0 million in funding, the Town is required to submit, to the U.S. Department of Treasury, a project and expenditure report by April 30, 2022, and annually thereafter. Condition: The Town submitted the annual project and expenditure report timely, however the expenditures reported as of June 30, 2023, did not reconcile with the Town’s accounting ledger. Questioned Costs: None Reported. Context: The Town filed the required project and expenditure report in a timely manner; however the current period expenditures and cumulative expenditures were overstated by $7,215,950 and $6,453,661, respectively. The discrepancies were due to a misunderstanding about how expenditures should be recognized on the project and expenditure report. Effect: The expenditures reported on the Town’s project and expenditure report did not match the accounting ledger. Cause: The Town reported the total allotment of Coronavirus State and Local Fiscal Recovery Funds as expended and obligated on the project and expenditure report, instead of the expenditures incurred and obligated as of March 31, 2023. Recommendation: Management should implement procedures to ensure that current period and cumulative expenditures reported on the project all expenditure report are recorded in the corresponding period that they are reported on the Town’s general ledger. The Town should amend the previous submission so that the correct expenditures are reported. Views of Responsible Officials and Planned Corrective Actions: Management made a good faith effort to submit its reporting to the U.S. Treasury on a timely basis. This was a misunderstanding regarding how the expenditures should be recognized on the project and expenditure report. Management plans to amend the previous submission and to implement procedures to properly report expenditures going forward.

View Audit 298435

Finding 386079 (2023-004)

Material Weakness 2023

Howard County

IA

Internal Control / Segregation of Duties

We have reviewed procedures and plan to make improvements to internal control.

View Audit 298433

Finding 386065 (2023-002)

Significant Deficiency 2023

Rice Lake Housing Authority

WI

Subrecipient Monitoring HUD Housing Programs Internal Control / Segregation of Duties

2023-002 - Insufficient Collateral Corrective Action Planned: The Authority will closely monitor all deposits to make sure that the amount of funds on deposit are protected by federal deposit insurance, corporate surety bond, or collateral. Completion Date: June 30, 2024

View Audit 298424

Corrective Action Plans

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