Corrective Action Plans

Finding 480779 (2023-001)

Significant Deficiency 2023

Puerto Rico Office Management and Budget

PR

Questioned Costs Reporting Significant Deficiency

GOBIERNO DE PUERTO RICO OFICINA DE GERENCIA Y PRESUPUESTO July 23, 2024 OFFICE OF MANAGEMENT AND BUDGET CORRECTIVE ACTION PLAN FOR PROGRAM SPECIFIC AUDIT FINDING FISCAL YEAR 2022-2023 Finding No. 2023-001: Program 21.027 Condition: Single Audit report for fiscal year 2022-2023 was ...

GOBIERNO DE PUERTO RICO OFICINA DE GERENCIA Y PRESUPUESTO July 23, 2024 OFFICE OF MANAGEMENT AND BUDGET CORRECTIVE ACTION PLAN FOR PROGRAM SPECIFIC AUDIT FINDING FISCAL YEAR 2022-2023 Finding No. 2023-001: Program 21.027 Condition: Single Audit report for fiscal year 2022-2023 was not submitted by March 31, 2024, as required by regulations. Recommendation: Keep track and communication of federal programs compliances with regulatory parties and among agency's responsible departments involve and establish a program deadline calendar. Views of Responsible Officials/Corrective Action Plan: 1. Engagement of CPA Firm: o Action: The Puerto Rico Office of Management and Budget has contracted a CPA firm, contract number 2024-00003 7 for the Single Audit 2023 that was signed on August 2, 2023. o Responsible Officer: Mrs. Nivis Gonzalez Rodriguez o Timeline: Immediate and ongoing 2. Early Initiation of the Audit Process: o Action: Initiate the audit process well in advance of the deadline to ensure sufficient time for completion and review. o Responsible Officer: Mrs. Nivis Gonzalez Rodriguez o Timeline: Audit process to begin six months prior to the submission deadline. 3. Improvement of Internal Controls: o Action: Develop and implement stronger internal controls over financial reporting to ensure timely production of financial statements. o Responsible Officer: Mrs. Nivis Gonzalez Rodriguez o Timeline: Within three months 4. Training and Communication: o Action: Conduct training sessions for all relevant personnel on compliance requirements and the importance of timely financial reporting. Calle Cruz #254 Esq. Tetu~n, San Juan, PR/ PO Box 9023228, San Juan, PR 00902-3228 o Responsible Officer: Mrs. Nivis Gonzalez Rodriguez o Timeline: Bi annually training sessions 5. Establishment of Deadline Calendar: o Action: Create and maintain a detailed program deadline calendar to ensure all involved departments are aware of key dates and responsibilities. o Responsible Officer: Mrs. Nivis Gonzalez Rodriguez o Timeline: Calendar to be established and communicated within one month Responsible Officials: ( Mrs. Nivis Gonzalez Rodrigu Estimated Completion Date: July 2024 for Single audit implementation, if apply.

View Audit 316956

Finding 480778 (2023-001)

Significant Deficiency 2023

National Foundation for Credit Counseling, Inc.

DC

Questioned Costs Reporting Significant Deficiency § 200.303

Reporting Recommendation: We recommend that the Foundation update its policies and procedures to ensure formal documented review and approval over financial and performance reports. Procedures must include documentation and proper sign offs from preparer and reviewer of the reports. Explanation of...

Reporting Recommendation: We recommend that the Foundation update its policies and procedures to ensure formal documented review and approval over financial and performance reports. Procedures must include documentation and proper sign offs from preparer and reviewer of the reports. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: Procedures updated to reflect a formal sign off for all electronically submitted reports to prove proper reviews were completed. A sign off email will be included in the files going forward. Name of the contact person responsible for corrective action: Ellen Goury Planned completion date for corrective action plan: 6/30/2024

View Audit 316953

Finding 480745 (2023-001)

Significant Deficiency 2023

Dunn Housing Authority

NC

Questioned Costs Eligibility HUD Housing Programs

Dunn Housing Authority Corrective Action Plan For the Year Ended December 31, 2023 Finding 2023-001 Name of Contact Person: Felicia Chester Executive Director Corrective Action: We will implement proper internal control procedures for the Public and Indian Housing program eligibility requirements. ...

Dunn Housing Authority Corrective Action Plan For the Year Ended December 31, 2023 Finding 2023-001 Name of Contact Person: Felicia Chester Executive Director Corrective Action: We will implement proper internal control procedures for the Public and Indian Housing program eligibility requirements. Management has established a checklist for applications and will establish checklists for move-ins and move-outs. Proposed Completion Date: Immediately

View Audit 316948

Finding 480735 (2023-002)

Significant Deficiency 2023

Childhelp Inc.

AZ

Questioned Costs Allowable Costs / Cost Principles Reporting

Corrective Action Plan: Childhelp will implement the following actions by December 31, 2024. 1. Develop Comprehensive Review Procedures: Create detailed review checklists and procedures to be used by management for assessing the accuracy and completeness of grant reports. Ensure checklists address a...

Corrective Action Plan: Childhelp will implement the following actions by December 31, 2024. 1. Develop Comprehensive Review Procedures: Create detailed review checklists and procedures to be used by management for assessing the accuracy and completeness of grant reports. Ensure checklists address all key elements of Uniform Guidance compliance, including allowable costs, matching principles, and required disclosures. 2.Enhance Management Oversight: Implement regular management reviews of grant reports prior to submission 3. Strengthen Communication and Collaboration: Establish formal communication channels between finance and the program managers. Develop a collaborative approach to report preparation and review. Implement regular meetings to discuss reporting requirements and challenges. 4. Implement a Robust Monitoring System: Develop key performance indicators (KPIs) to measure the accuracy and timeliness of grant reporting. Establish a monitoring system to track and trend KPIs. 5. Provide Training and Development: Develop and implement training programs on Uniform Guidance requirements for all relevant personnel. Provide ongoing training to address changes in regulations or reporting requirements.

View Audit 316944

Finding 480718 (2023-004)

Significant Deficiency 2023

Three Links Apartments

MN

Special Tests & Provisions Questioned Costs Procurement, Suspension & Debarment

Special Tests and Provisions Noncompliance and Significant Deficiency in Internal Control over Compliance US Department of Housing and Urban Development CFA #14.155 Section 223(f) Mortgage Insurance for the Purchase or Refinance of Existing Multifamily Housing Projects Finding Summary: No documentat...

Special Tests and Provisions Noncompliance and Significant Deficiency in Internal Control over Compliance US Department of Housing and Urban Development CFA #14.155 Section 223(f) Mortgage Insurance for the Purchase or Refinance of Existing Multifamily Housing Projects Finding Summary: No documentation was maintained for two cash disbursements. Responsible Individuals: Mari Chambers, CFO Corrective Action Plan: All invoices are now maintained electronically which will eliminate the possibility of misplacing paper invoices. Anticipated Completion Date: Resolved

View Audit 316935

Finding 480717 (2023-003)

Significant Deficiency 2023

Three Links Apartments

MN

Special Tests & Provisions Questioned Costs Procurement, Suspension & Debarment

Special Tests and Provisions Significant Deficiency in Internal Control over Compliance US Department of Housing and Urban Development CFA #14.155 Section 223(f) Mortgage Insurance for the Purchase or Refinance of Existing Multifamily Housing Projects Finding Summary: The Project did not have proper...

Special Tests and Provisions Significant Deficiency in Internal Control over Compliance US Department of Housing and Urban Development CFA #14.155 Section 223(f) Mortgage Insurance for the Purchase or Refinance of Existing Multifamily Housing Projects Finding Summary: The Project did not have proper documentation of reviews over cash disbursements and bank reconciliations. Responsible Individuals: Mari Chambers, CFO Corrective Action Plan: Management agrees with the finding and has implemented procedures to properly document the approvals of cash disbursements and bank reconciliations. Anticipated Completion Date: Resolved

View Audit 316935

Finding 480695 (2023-001)

Significant Deficiency 2023

Southwest Mississippi Regional Medical Center

MS

Questioned Costs Subrecipient Monitoring Allowable Costs / Cost Principles § 200.303 § 200.430

Finding 2023-001 – Allowable Activities and Costs of Provider Relief Fund Significant Deficiency in Internal Control over Compliance Program: COVID-19 Provider Relief Fund (PRF) and American Rescue Plan (ARP) Rural Distribution Federal Assistance Listing Number: 93.498 Federal Grantor: U.S. D...

Finding 2023-001 – Allowable Activities and Costs of Provider Relief Fund Significant Deficiency in Internal Control over Compliance Program: COVID-19 Provider Relief Fund (PRF) and American Rescue Plan (ARP) Rural Distribution Federal Assistance Listing Number: 93.498 Federal Grantor: U.S. Department of Health and Human Services Pass-Through Entity: None Criteria: Per 2 CFR 200.430(i), personnel costs charged to federal grants are required to be supported by documentation including time records. Per 2 CFR 200.303, a non-federal entity must establish and maintain effective internal control over Federal awards that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and terms and conditions of the Federal award. Condition: Our audit procedures over the calculation of COVID patient days used to allocate the payroll cost to the PRF/ARP federal program disclosed the amounts were not properly calculated. Cause: The Medical Center has controls in place to review the calculation; however, the control did not operate to identify an error in the calculation of COVID patient days. Effect: The error in the calculation resulted in underreporting payroll costs allowed to be charged to PRF/ARP in the amount of $566,272. Questioned Costs: None Perspective: The error in the calculation resulted in underreporting payroll costs allowed to be charged to PRF/ARP in the amount of $566,272. Repeat Finding: This is not a repeat finding. Recommendation: We recommend the Medical Center implement additional internal controls over compliance in order to properly identify any errors in calculation. Management’s Action Plan: The Medical Center will implement additional internal controls over compliance. Such controls will include verification of all calculations used by two parties, the Director of Finance and CFO as well as signoff on calculations. Name of Person Responsible for the Plan: Mallory Ginn, CFO Anticipated Completion Date of the Plan: 7/31/2024

View Audit 316922

Finding 480668 (2023-003)

Significant Deficiency 2023

Yankton Transit, Inc.

SD

Questioned Costs Procurement, Suspension & Debarment Allowable Costs / Cost Principles § 200.313

Response to "2023 - 003 Finding: Activities Allowed/Unallowed and Cost Principles (Compliance; Internal Controls Over Compliance)" Yankton Transit will become familiar with the requirements of 2 CFR, §200.313(a) and will establish internal control policies and procedures and will train staff on tho...

Response to "2023 - 003 Finding: Activities Allowed/Unallowed and Cost Principles (Compliance; Internal Controls Over Compliance)" Yankton Transit will become familiar with the requirements of 2 CFR, §200.313(a) and will establish internal control policies and procedures and will train staff on those policies and procedures.

View Audit 316848

Finding 480663 (2023-008)

Material Weakness 2023

Integrated Community Solutions, Inc.

WI

HUD Housing Programs Allowable Costs / Cost Principles Material Weakness

Action taken in response to finding: A paperless / electronic invoice approval system has begun in 2024. All invoices are received via email or scanned in and saved as a PDF and stored by month paid. Invoices are emailed to a responsible manager for approval and the approval response email is save...

Action taken in response to finding: A paperless / electronic invoice approval system has begun in 2024. All invoices are received via email or scanned in and saved as a PDF and stored by month paid. Invoices are emailed to a responsible manager for approval and the approval response email is saved with the invoice. The invoice and approval is also uploaded into Financial Edge with the invoice. Electronic records are available in an Accounts Payable network folder and in Financial Edge for additional review or reference. Names of the contact persons responsible for corrective action: Matt Roberts, Joe Kahler, Chimeng Vang Planned completion date for corrective action plan: Began January 2024

View Audit 316843

Finding 480658 (2023-007)

Significant Deficiency 2023

Integrated Community Solutions, Inc.

WI

HUD Housing Programs Subrecipient Monitoring Significant Deficiency

Action taken in response to finding: ICS will train current and new staff regarding the importance of ensuring all documentation is in the file prior to scanning and that when the file is scanned all documentation is legible. Housing Specialists will continue to be trained on calculating HAP and th...

Action taken in response to finding: ICS will train current and new staff regarding the importance of ensuring all documentation is in the file prior to scanning and that when the file is scanned all documentation is legible. Housing Specialists will continue to be trained on calculating HAP and the importance of reviewing all documentation in the file prior to releasing payments to assure all rent amounts and dates are accurate and match what is being put into the system. RTAs and Leases should always be compared to assure the rent amount provided on the RTA matches the rent amount provided on the executed lease. Names of the contact persons responsible for corrective action: Matt Roberts and Megan Walker Planned completion date for corrective action plan: Immediately

View Audit 316843

Finding 480653 (2023-006)

Significant Deficiency 2023

Integrated Community Solutions, Inc.

WI

HUD Housing Programs Subrecipient Monitoring Allowable Costs / Cost Principles

Action taken in response to finding: ICS will provide additional training for staff regarding how to document family size, voucher size, and citizenship. Proper documentation will be reviewed, and files will continue to be reviewed monthly for compliance. Names of the contact persons responsible f...

Action taken in response to finding: ICS will provide additional training for staff regarding how to document family size, voucher size, and citizenship. Proper documentation will be reviewed, and files will continue to be reviewed monthly for compliance. Names of the contact persons responsible for corrective action: Matt Roberts and Megan Walker Planned completion date for corrective action plan: Immediately

View Audit 316843

Finding 480648 (2023-005)

Significant Deficiency 2023

Integrated Community Solutions, Inc.

WI

HUD Housing Programs Subrecipient Monitoring Eligibility

Action taken in response to finding: ICS will provide additional training to current and new staff regarding the importance of retaining Authorization For Release of Information documentation and the requirement that there are two Authorization forms saved and scanned with each file. ICS will also ...

Action taken in response to finding: ICS will provide additional training to current and new staff regarding the importance of retaining Authorization For Release of Information documentation and the requirement that there are two Authorization forms saved and scanned with each file. ICS will also request that staff review file as they are scanning to assure that documentation is included and scanned properly before saving and shredding the paper file. Names of the contact persons responsible for corrective action: Matt Roberts and Megan Walker Planned completion date for corrective action plan: Immediately

View Audit 316843

Finding 480643 (2023-004)

Significant Deficiency 2023

Integrated Community Solutions, Inc.

WI

HUD Housing Programs Subrecipient Monitoring Eligibility

ICS will provide additional training to current and new staff regarding the importance of retaining asset documentation. ICS will also request that staff review files as they are scanning to assure that documentation is included and scanned properly before saving and shredding the paper file. ICS ...

ICS will provide additional training to current and new staff regarding the importance of retaining asset documentation. ICS will also request that staff review files as they are scanning to assure that documentation is included and scanned properly before saving and shredding the paper file. ICS will also encourage staff provide in writing on the documents how they calculated what was entered. They can either circle the amount they are using or if a calculation is necessary they should write the equation on the verification so all parties know how they came to the amount they are entering into the file. Names of the contact persons responsible for corrective action: Matt Roberts and Megan Walker Planned completion date for corrective action plan: Immediately.

View Audit 316843

Finding 480625 (2023-001)

Significant Deficiency 2023

The Utica Center for Development, Inc.

NY

Questioned Costs Subrecipient Monitoring Allowable Costs / Cost Principles

Planned Action: We will develop required written policies and procedures as required by the 0MB's Uniform Guidance.

View Audit 316821

Finding 480549 (2023-002)

Material Weakness 2023

Stilwell Area Devlopment Authority

OK

Equipment & Real Property Management Matching / Level of Effort / Earmarking Internal Control / Segregation of Duties

CORRECTIVE ACTION PLAN: IMPROVING MONTH-END CLOSING RECONCILIATION-OBJECTIVE: TO ENHANCE THE ACCURACY AND EFFICIENCY OF THE MONTH-END CLOSING PROCESS, PARTICULARLY IN RECONCILING ACCOUNTS RECEIVABLE, INVENTORY, AND CUSTOMER DEPOSITS. 1. IDENTIFY AND DOCUMENT CURRENT ISSUES-ACTION: CONDUCT A THOROUGH...

CORRECTIVE ACTION PLAN: IMPROVING MONTH-END CLOSING RECONCILIATION-OBJECTIVE: TO ENHANCE THE ACCURACY AND EFFICIENCY OF THE MONTH-END CLOSING PROCESS, PARTICULARLY IN RECONCILING ACCOUNTS RECEIVABLE, INVENTORY, AND CUSTOMER DEPOSITS. 1. IDENTIFY AND DOCUMENT CURRENT ISSUES-ACTION: CONDUCT A THOROUGH REVIEW OF CURRENT MONTH-END CLOSING PROCEDURES TO IDENTIFY SPECIFIC ISSUES AND DISCREPANCIES IN ACCOUNTS RECEIVABLE, INVENTORY, AND CUSTOMER DEPOSITS. RESPONSIBILITY: FINANCE TEAM LEAD. TIMELINE: 1 WEEK 2. IMPLEMENT ENHANCED RECONCILIATION PROCEDURES - ACTION: DEVELOP AND DOCUMENT DETAILED RECONCILIATION PROCEDURES FOR ACCOUNTS RECEIVABLE, INVENTORY, AND CUSTOMER DEPOSITS, INCLUDING STEP-BY-STEP INSTRUCTIONS AND TIMELINES. RESPONSIBILITY: ACCOUNTING MANAGER. TIMELINE: 2 WEEKS-3. STANDARDIZE DATA ENTRY AND REPORTING-ACTION: ESTABLISH STANDARDIZED PROCESSES FOR DATA ENTRY, REPORTING, AND RECORD-KEEPING TO ENSURE CONSISTENCY AND ACCURACY ACROSS ALL FINANCIAL DOCUMENTS. RESPONSIBILITY: DATA ENTRY SPECIALIST. TIMELINE: 2 WEEKS. 4. UPGRADE ACCOUNTING SOFTWARE AND TOOLS-ACTION: ASSESS CURRENT ACCOUNTING SOFTWARE AND TOLLS FOR GAPS OR INEFFICIENCIES. INVEST IN UPGRADES OR NEW TOOLS IF NECESSARY TO IMPROVE RECONCILIATION PROCESSES. RESPONSIBILITY: IT MANAGER AND FINANCE DIRECTOR. TIMELINE: 4 WEEKS. 5. TRAIN STAFF ON REVISED PROCEDURES. ACTION: CONDUCT TRAINING SESSIONS FOR ALL RELEVANT STAFF ON THE UPDATED RECONCILIATION PROCEDURES AND ANY NEW SOFTWARE OR TOLLS. ENSURE THAT EVERYONE UNDERSTANDS THEIR ROLES AND RESPONSIBILITIES. RESPONSIBILITY: HR TRAINING COORDINATOR. TIMELINE: 2 WEEKS. 6. IMPLEMENT REGULAR RECONCILIATION REVIEWS. ACTION: ESTABLISH A SCHEDULE FOR REGULAR RECONCILIATION REVIEWS (E.G. WEEKLY OR BI-WEEKLY) TO CATCH AND ADDRESS DISCREPANCIES EARLY. ASSIGN RESPONSIBILITY FOR THESE REVIEWS TO SENIOR STAFF MEMBERS. RESPONSIBILITY: SENIOR ACCOUNTANT. TIMELINE: ONGOING, WITH INITIAL SETUP WITHIN 1 WEEK. 7. ENHANCE INTERNAL CONTROLS AND MONITORING. ACTION: REVIEW AND STENGTHEN INTERNAL CONTROLS RELATED TO ACCOUNTS RECEIVABLE, INVENTORY, AND CUSTOMER DEPOSITS. IMPLEMENT ADDITIONAL MONITORING MECHANISMS TO DETECT AND PREVENT ERRORS OR FRAUD. RESPONSIBILITY: INTERNAL AUDITOR. TIMELINE: 3 WEEKS. 8. DEVELOP AND TRACK PERFORMANCE METRICS. ACTION: CREATE PERFORMANCE METRICS TO TRACK THE EFFICIENCY AND ACCURACY OF THE MONTH-END CLOSIN PROCESS. REGULARLY REVIEW THESE METRICS TO IDENTIFY AREAS FOR IMPROVEMENT. RESPONSIBILITY: FINANCE DIRECTOR. TIMELINE: 2 WEEKS. 9. CONDUCT POST-IMPLEMENTATION REVIEW. ACTION: AFTER IMPLEMENTING THE CORRECTIVE ACTIONS, CONDUCT A COMPREHENSIVE REVIEW TO ASSESS THE EFFECTIVENESS OF THE CHANGES. SOLICIT FEEDBACK FROM STAFF AND MAKE ANY NECESSARY ADJUSTMENTS. RESPONSIBILITY: FINANCE TEAM LEAD AND ACCOUNTING MANAGER. TIMELINE: 1 MONTH AFTER IMPLEMENTATION. 10. CONTINUOUS IMPROVEMENT. ACTION: ESTABLISH A PROCESS FOR ONGOING EVALUATION AND REVINEMENT OF MONTH-END CLOSING PROCEDURES. ENCOURAGE STAFF TO PROVIDE FEEDBACK AND SUGGEST IMPROVEMENTS REGULARLY. RESPONSIBILITY: CONTINOUS IMPROVEMENT COMMITTEE. TIMELINE: ONGOING. EXPECTED OUTCOMES: IMPROVED ACCURACY AND EFFICIENCY IN RECONCILING ACCOUNTS RECEIVABLE, INVENTORY, AND CUSTOMER DEPOSITS. REDUCED DISCREPANCIES AND ERRORS IN MONTH-END FINANCIAL REPORTS. ENHANCED STAFF KNOWLEDGE AND ADHERENCE TO UPDATED PROCEDURES BETTER FINANCIAL OVERSIGHT AND CONTROL. BY FOLLOWING THIS CORRECTIVE ACTION PLAN, WE AIM TO STREAMLINE THE MONTH-END CLOSING PROCESS, ENSURING THAT FINANCIAL STATEMENTS ARE ACCURATE, TIMELY, AND RELIABLE.

View Audit 316749

Finding 480543 (2023-003)

Material Weakness 2023

McIntosh Senior Living

MN

Questioned Costs Special Tests & Provisions Material Weakness § 200.303

Single Audit Finding 2023-003 Federal Agency Name: Program Name: Finding Summary: Responsible Individuals: Status: United States Department of Agriculture Community Facilities Loans and Grants Cluster Federal Assistance Listing #10.766 Corrective Action Plan The Organization did not have an adeq...

Single Audit Finding 2023-003 Federal Agency Name: Program Name: Finding Summary: Responsible Individuals: Status: United States Department of Agriculture Community Facilities Loans and Grants Cluster Federal Assistance Listing #10.766 Corrective Action Plan The Organization did not have an adequate internal control policy in place to ensure the reserve account was separately tracked and a documented review and approval over the reserve fund occurred. Sharlene Knutson, Administrator We have adopted a policy to enhance internal control to ensure the reserve fund reconciliation has a secondary review and approval that is documented. Anticipated Completion Date: 6/30/2024

View Audit 316739

Finding 480540 (2023-002)

Significant Deficiency 2023

Housing and Redevelopment Authority of the City of Worthington

MN

HUD Housing Programs Internal Control / Segregation of Duties

Explanation of Disagreement with Audit Finding: There is no disagreement with the audit finding. Actions Planned in Response to Finding: The HRA will monitor claims approvals going forward. Official Responsible for Ensuring CAP: Tanner Rogers, Executive Director, is the official responsible for ensu...

Explanation of Disagreement with Audit Finding: There is no disagreement with the audit finding. Actions Planned in Response to Finding: The HRA will monitor claims approvals going forward. Official Responsible for Ensuring CAP: Tanner Rogers, Executive Director, is the official responsible for ensuring corrective action. Planned Completion Date for CAP: The planned completion date is December 31, 2024. Plan to Monitor Completion of CAP: The Board will be monitoring this corrective action plan and believes the Executive Director will remedy this finding. Tanner Rogers Executive Director

View Audit 316737

Finding 480513 (2023-002)

Material Weakness 2023

Perkasie Regional Authority

PA

Cash Management Reporting Internal Control / Segregation of Duties

The Manager acknowledges that there is no separation of duties, but with the Authority being very small and there only being three (3) office employees; it does not make financial sense to hire an additional person to oversee the grant proceeds. The Manager will make sure that going forward all ite...

The Manager acknowledges that there is no separation of duties, but with the Authority being very small and there only being three (3) office employees; it does not make financial sense to hire an additional person to oversee the grant proceeds. The Manager will make sure that going forward all items pertaining to the grant are reviewed by the Board and Engineer to help off-set that separation of duty issue. The Authority Manager did not disclose the grant receivable as it was not yet received at the end of 2023 and should have been booked as an accrual and not a cash basis receipt. The Manager will ensure that going forward items are booked based on the accrual and not the cash basis.

View Audit 316706

Finding 480511 (2023-002)

Significant Deficiency 2023

Southwest Ohio Regional Transit Authority

OH

Reporting Internal Control / Segregation of Duties Subrecipient Monitoring

Views of Responsible Official: The Project Grant Administrator did prepare and submit the FRA quarterly reports. This person was the official reviewer of the project progress for the FRA quarterly report submission. The financial information for the report was first compiled by the Capital Project...

Views of Responsible Official: The Project Grant Administrator did prepare and submit the FRA quarterly reports. This person was the official reviewer of the project progress for the FRA quarterly report submission. The financial information for the report was first compiled by the Capital Projects and Grant Tracking (CPGT) Administrator Accountant. (Note that CPGT is reconciled with CODA, the SORTA accounting system, before this information is provided.) The Project Grant Administrator received project implementation information from the Construction Project Manager. The Grant Administrator married this information with what was provided by the CPGT Administrator/Accountant, as well as what was in Maximo (the SORTA procurement system), The Project Grant Administrator also visited the project site to verify progress of the FRA project(s) when needed. The final quarterly reports were used by the Director of Grants as well as FRA to keep up with the implementation progress of the project(s). Any actual draw down of funding for the project was prepared separately by the CPGT Administrator/Accountant and signed off by the Director of Accounting. We concur with the finding that the FFATA report for reporting of an award to a subrecipient above a certain dollar threshold was submitted in November of 2023, which was after the regulatory date for submission. Description of Corrective Action Plan: The Federal Railroad Administration (FRA) CRISI Grant- that this finding relates to has been completed and is now closed. Thus, there will not be any further Quarterly reports prepared or submitted under this particular Grant. And, it is not anticipated that SORTA will be administering any other FRA CRISI Grants in the foreseeable future. In relation to the FFATA reporting, the Grants Department will add the FFATA reporting requirements to the Grants Processes and Procedures so that should SORTA encounter a grant subrecipient situation with a future grant, Grants staff will have a reminder and reference to help ensure the reporting requirements are performed in a timely manner. Responsible Party and Timeline for Completion: Federal regulation requires name and title of person overseeing corrective action plan and anticipated completion date. The Director or Grants, Mary Huller, will complete the modification to the Processes and Procedures to include FFATA reporting requirements by the end of August 2024.

View Audit 316703

Finding 480510 (2023-001)

Significant Deficiency 2023

Montgomery County Housing Authority

TX

HUD Housing Programs Special Tests & Provisions Significant Deficiency

Views of responsible officials and planned corrective action: The Authority accepts the recommendation of the auditor. The Authority has updated the practice to follow the HUD compliance supplement. Amanda Bone, Chief Executive Officer, is responsible for implementing this corrective action by Dece...

Views of responsible officials and planned corrective action: The Authority accepts the recommendation of the auditor. The Authority has updated the practice to follow the HUD compliance supplement. Amanda Bone, Chief Executive Officer, is responsible for implementing this corrective action by December 31, 2024.

View Audit 316701

Finding 480508 (2023-001)

Material Weakness 2023

County of Adams

PA

Questioned Costs Reporting Internal Control / Segregation of Duties

The County should implement internal control procedures to ensure the Project and Expenditure Report is properly reviewed prior to submission. Applicable staff will be briefed on the finding and training will be provided on both written policy and procedure. The County of Adams has developed and imp...

The County should implement internal control procedures to ensure the Project and Expenditure Report is properly reviewed prior to submission. Applicable staff will be briefed on the finding and training will be provided on both written policy and procedure. The County of Adams has developed and implemented a process to ensure all respective reports submitted to the respective granting agency reflect accurate amounts in the period of benefit as of July 2024.

View Audit 316697

Finding 480498 (2023-001)

Significant Deficiency 2023

The Link

MN

Significant Deficiency Internal Control / Segregation of Duties

The Link updated RRH policies and procedures Manual to include: i. Updated Housing Identification Section (Page 9) to reflect that rent reasonableness will be conducted prior to lease signing. ii. Updated Rent Reasonableness form to match policy. Determine whether the rent charged for the unit rec...

The Link updated RRH policies and procedures Manual to include: i. Updated Housing Identification Section (Page 9) to reflect that rent reasonableness will be conducted prior to lease signing. ii. Updated Rent Reasonableness form to match policy. Determine whether the rent charged for the unit receiving rental assistance is reasonable in relation to rents being charged for comparable units. Complete Rent Reasonableness Form using 3 comparable apartments (Appendix F). iii. Attach printouts from the 3 comparable units. • One of the units must be for the same owner to ensure reasonable rent will not exceed rents currently being charged by the same owner for Name of Contact Person: Pheng Vang, Finance Director, pvang@thelinkmn.org, 612-767-4468 Anticipated Completion Date: September 25, 2023

View Audit 316696

Finding 480497 (2023-002)

Significant Deficiency 2023

Shawano County, Wisconsin

WI

Questioned Costs Cash Management Internal Control / Segregation of Duties

Finding 2023-002 AL No. 21.027 COVID-19 Coronavirus State and Local Fiscal Recovery Funds Federal Agency U.S. Department of Treasury Pass-through Agency Not applicable Award Number / Year 2023 Department Shawano County Department of Finance Criteria: The Uniform Guidance and State Single Audit Gui...

Finding 2023-002 AL No. 21.027 COVID-19 Coronavirus State and Local Fiscal Recovery Funds Federal Agency U.S. Department of Treasury Pass-through Agency Not applicable Award Number / Year 2023 Department Shawano County Department of Finance Criteria: The Uniform Guidance and State Single Audit Guidelines require that local entities receiving federal and state awards establish and maintain internal control designed to reasonably ensure compliance with laws, regulations and program compliance requirements. The Uniform Guidance and State Single Audit Guidelines further require auditors to obtain an understanding of the local entity's internal control over federal and state programs. To minimize the risk of errors, internal controls should be in place for all program compliance requirements, including the preparation and submission of monthly reports, which should be reviewed and approved by a responsible party other than the original preparer before they are submitted to the granting agency. Condition/Context: During our testing, it was noted that the 2023 project and expenditure report was not reviewed by an independent person before submission for reimbursement. Our sample was not statistically valid. Cause: The county did not have internal control procedures in place requiring an independent person to review the reports before submission to ensure the report was accurate. Questioned Costs: None noted. Effect: Reports submitted could contain errors. Recommendation: We recommend that an employee other than the preparer review all reports before they are submitted to grantors. Management’s Response: Internal guidance has been provided to all departments for documented reviews of compliance requirements. An update will be made to the financial policy.

View Audit 316691

Finding 480493 (2021-001)

Significant Deficiency 2023

New Mexico Rural Water Association

NM

Questioned Costs Procurement, Suspension & Debarment Cash Management

It is management's policy to update and distribute travel reimbursement forms with new mileage and per diem rates the first of each calendar year, and at any other time the rates may change. Federal per diem and travel rates will be verified on a monthly basis to ensure that the most current rates a...

It is management's policy to update and distribute travel reimbursement forms with new mileage and per diem rates the first of each calendar year, and at any other time the rates may change. Federal per diem and travel rates will be verified on a monthly basis to ensure that the most current rates are being used. Formulas in travel vouchers will be checked to make sure that they have not been changed and that they calculate properly. A staff person will review all travel vouchers to verify that rates and calculations are correct prior to the vouchers being paid.

View Audit 316679

Finding 480492 (2023-003)

Material Weakness 2023

County of Scott

IL

Internal Control / Segregation of Duties

Recommendation: Procedures should be implemented to segregate duties where possible including a cross training or rotating of job duties to ensure one person does not have complete unsupervised control over one particular area. Action Taken: We concur with the recommendation, and we will begin th...

Recommendation: Procedures should be implemented to segregate duties where possible including a cross training or rotating of job duties to ensure one person does not have complete unsupervised control over one particular area. Action Taken: We concur with the recommendation, and we will begin this process immediately. This implementation process will be ongoing.

View Audit 316673

Corrective Action Plans

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