Corrective Action Plans

Finding 392816 (2023-001)

Significant Deficiency 2023

NE

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

Response: The Loan Officer, along with the preparer of the loan documents, if different, will verify the document has appropriate SBA verbiage and is compliant before issuing closing documents. Both should be knowledgeable about the rules and regulations associated with the process and double check ...

Response: The Loan Officer, along with the preparer of the loan documents, if different, will verify the document has appropriate SBA verbiage and is compliant before issuing closing documents. Both should be knowledgeable about the rules and regulations associated with the process and double check one another.

View Audit 303152

Finding 392771 (2023-001)

Significant Deficiency 2023

Lake Superior State University

MI

Questioned Costs Matching / Level of Effort / Earmarking Internal Control / Segregation of Duties

Finding Number: 2023-01 Bank Reconciliations Condition: As of June 30, 2023, the University had only completed bank reconciliations and approvals through October 2022. Planned Corrective Action: The University concurs with the finding and has already remedied the condition and bank reconciliations...

Finding Number: 2023-01 Bank Reconciliations Condition: As of June 30, 2023, the University had only completed bank reconciliations and approvals through October 2022. Planned Corrective Action: The University concurs with the finding and has already remedied the condition and bank reconciliations are now current and being completed and reviewed on a monthly basis. Contact person responsible for corrective action: Crystal Wilcox, Director of Finance Completion Date: October 10, 2023

View Audit 303126

Finding 392742 (2023-001)

Significant Deficiency 2023

Ahepa 310-Iv, Inc.

AL

HUD Housing Programs Questioned Costs Procurement, Suspension & Debarment

Finding 2023-001 - Mortgage Insurance for the Purchase or Refinancing of Existing #14.155 Concur or Do Not Concur with this Finding Concur Agree or Disagree with auditor recommendations Agree Completion Date or Proposed Completion Date March 31, 2024 Actions Taken or Planned on the Finding Managemen...

Finding 2023-001 - Mortgage Insurance for the Purchase or Refinancing of Existing #14.155 Concur or Do Not Concur with this Finding Concur Agree or Disagree with auditor recommendations Agree Completion Date or Proposed Completion Date March 31, 2024 Actions Taken or Planned on the Finding Management will either get HUD approval or refund the distributions made. Contact Person First Name Dawn Contact Person Last Name Cole

View Audit 303051

Finding 392740 (2023-001)

Significant Deficiency 2023

Ahepa - Penelope 38 Apartments, Inc.

IA

Questioned Costs HUD Housing Programs Reporting

Finding 2023-001 - Supportive Housing for the Elderly, AL # 14.157 Concur or Do Not Concur with this Finding Concur Agree or Disagree with auditor recommendations Agree Completion Date or Proposed Completion Date January 5, 2024 Actions Taken or Planned on the Finding Management has refunded the dis...

Finding 2023-001 - Supportive Housing for the Elderly, AL # 14.157 Concur or Do Not Concur with this Finding Concur Agree or Disagree with auditor recommendations Agree Completion Date or Proposed Completion Date January 5, 2024 Actions Taken or Planned on the Finding Management has refunded the distribution made in error. Contact Person First Name Dawn Contact Person Last Name Cole

View Audit 303027

Finding 392680 (2023-005)

Significant Deficiency 2023

Vaughn Public Schools

MT

Procurement, Suspension & Debarment Subrecipient Monitoring Internal Control / Segregation of Duties

FINDING 2022/2023-005: Capital Purchases Response: The district will follow better practices and have better communication regarding special purchases to ensure the correct coding.

View Audit 302966

Finding 392675 (2023-004)

Material Weakness 2023

Vaughn Public Schools

MT

Subrecipient Monitoring Matching / Level of Effort / Earmarking Internal Control / Segregation of Duties § 200.326

FINDING 2022/2023-004: Wage Rate Compliance Response: The District has policy# 8502 already in place and was adopted in April of 2022. The next time a construction job comes up in the district and is over $5000.00 and being paid out of federal funds, the district will ask for payroll reports that ...

FINDING 2022/2023-004: Wage Rate Compliance Response: The District has policy# 8502 already in place and was adopted in April of 2022. The next time a construction job comes up in the district and is over $5000.00 and being paid out of federal funds, the district will ask for payroll reports that show prevailing wages.

View Audit 302966

Finding 392630 (2023-001)

Material Weakness 2023

Community Housing Solutions

OH

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

The finding from the schedule of findings and questioned costs for the year ended December 31, 2023 are discussed below. The findings are numbered consistently with the numbers assigned in the Schedule. Finding 2023-001 Condition: The Organization does not have proper segregation of duties and app...

The finding from the schedule of findings and questioned costs for the year ended December 31, 2023 are discussed below. The findings are numbered consistently with the numbers assigned in the Schedule. Finding 2023-001 Condition: The Organization does not have proper segregation of duties and appropriate level of review and approval prior to charging costs to a federal program. The same individual was approving timecards and reimbursement packets without an additional layer of review. Additionally there was no documentation of review of the reimbursement packets prior to being submitted for reimbursement. Planned Corrective Action: Management has implemented a process to ensure review of the reports prior to finalization and submission to the funder. One person will gather data and appropriate paperwork for reporting and reimbursement purposes. To ensure proper segregation of duties, there will be 2 different individuals that approve timecards and gather reimbursement packets. In addition, a second person will review and approve completed reports and packet prior to submission. This review process will be properly documented and evidenced through signature of the reports. Anticipated Completion Date: March 31, 2024 Contact Person: Pam Schuellerman, Executive Director

View Audit 302933

Finding 392600 (2023-003)

Material Weakness 2023

Chugachmiut

AK

Eligibility Internal Control / Segregation of Duties Material Weakness

Finding 2023-003: Material Weakness in Internal Control over Compliance – Eligibility. Name of Contact Person: Phyllis Wimberley, Deputy Director. Corrective Action: The Heritage program will create and implement a checklist of required documentation to ensure all participants are eligible to partic...

Finding 2023-003: Material Weakness in Internal Control over Compliance – Eligibility. Name of Contact Person: Phyllis Wimberley, Deputy Director. Corrective Action: The Heritage program will create and implement a checklist of required documentation to ensure all participants are eligible to participate in the program. Proposed Completion Date: June 2024

View Audit 302897

Finding 392589 (2023-001)

Significant Deficiency 2023

Hattiesburg Area Senior Services, Inc. - Wesley Manor I

MS

Questioned Costs HUD Housing Programs Reporting

March 26, 2024 Healthcare Account Executive U.S. Department of Housing and Urban Development 451 7th Street, S.W. Washington, DC 20410 Mississippi Methodist Senior Services, Inc. respectfully submits the following corrective action plan for Hattiesburg Area Senior Services, Inc. (the "Company") ...

March 26, 2024 Healthcare Account Executive U.S. Department of Housing and Urban Development 451 7th Street, S.W. Washington, DC 20410 Mississippi Methodist Senior Services, Inc. respectfully submits the following corrective action plan for Hattiesburg Area Senior Services, Inc. (the "Company") for the year ended December 31, 2023. The Correction Plan was necessitated by findings reported by the independent public accounting firm of: HORNE LLP 661 Sunnybrook Road Suite 100 Ridgeland, MS 39157 Current Findings on the Schedule of Findings and Questioned Costs Audit Finding #2023-001 / ALN 14.157 – Equal Housing Opportunity Logo Auditors Recommendation: HORNE recommends that all current marketing materials without the equal housing opportunity logo be corrected and any future materials produced include the equal housing opportunity logo. Action Taken: To be cost effective, the current video advertisements are run for a period of time and then updated when the commercial run has ended. Controls have been put in place to ensure the logo is placed on all future marketing materials, especially commercial advertisements. Status of Corrective Actions on the Schedule of Prior Year Audit Findings Audit Finding #2022-001 / ALN 14.157 – Equal Housing Opportunity Logo Action Taken: To be cost effective, the current video advertisements are run for a period of time and then updated when the commercial run has ended. Controls have been put in place to ensure the logo is placed on all future marketing materials, especially commercial advertisements. Should you need anything further or have any questions regarding management's plan of correction response, you may contact me at Mississippi Methodist Senior Services, Inc. (662-844-8977) or by email at jim.zuelzke@mss.org. Sincerely, Jim Zuelzke, CFO Mississippi Methodist Senior Services, Inc.

View Audit 302867

Finding 392588 (2023-001)

Significant Deficiency 2023

Lauderdale Se Svcs, Inc. - Aldersgate Retirement Center - Phase I

MS

Questioned Costs HUD Housing Programs Reporting

March 26, 2024 Healthcare Account Executive U.S. Department of Housing and Urban Development 451 7th Street, S.W. Washington, DC 20410 Mississippi Methodist Senior Services, Inc. respectfully submits the following corrective action plan for Lauderdale Senior Services, Inc. (the "Company") for th...

March 26, 2024 Healthcare Account Executive U.S. Department of Housing and Urban Development 451 7th Street, S.W. Washington, DC 20410 Mississippi Methodist Senior Services, Inc. respectfully submits the following corrective action plan for Lauderdale Senior Services, Inc. (the "Company") for the year ended December 31, 2023. The Correction Plan was necessitated by findings reported by the independent public accounting firm of: HORNE LLP 661 Sunnybrook Road Suite 100 Ridgeland, MS 39157 Current Findings on the Schedule of Findings and Questioned Costs Audit Finding #2023-001 / ALN 14.155 – Equal Housing Opportunity Logo Auditors Recommendation: HORNE recommends that all current marketing materials without the equal housing opportunity logo be corrected, and any future materials produced include the equal housing opportunity logo. Action Taken: To be cost effective, the current video advertisements are run for a period of time and then updated when the commercial run has ended. Controls have been put in place to ensure the logo is placed on all future marketing materials, especially commercial advertisements. Status of Corrective Actions on Findings on the Schedule of Prior Year Audit Schedule of Findings and Questions Costs Audit Finding #2022-001 / ALN 14.155 – Equal Housing Opportunity Logo Action Taken: To be cost effective, the current video advertisements are run for a period of time and then updated when the commercial run has ended. Controls have been put in place to ensure the logo is placed on all future marketing materials, especially commercial advertisements. Should you need anything further or have any questions regarding management's plan of correction response you may contact me at Mississippi Methodist Senor Services, Inc. (662-844-8977) or by email at jim.zuelzke@mss.org. Sincerely, Jim Zuelzke, CFO Mississippi Methodist Senior Services, Inc.

View Audit 302866

Finding 392587 (2023-001)

None 2023

Montgomery Supported Housiing INC

TX

Questioned Costs HUD Housing Programs Reporting

Management fees and bookkeeping fees for the year ended December 31, 2023 were overpaid. By $120. Management repaid the $120 on 04/04/2024 by deducting $120 from the management fee for April. Name and Title of contact person responsible for corrective action: Steve Colella, Making a Difference in ...

Management fees and bookkeeping fees for the year ended December 31, 2023 were overpaid. By $120. Management repaid the $120 on 04/04/2024 by deducting $120 from the management fee for April. Name and Title of contact person responsible for corrective action: Steve Colella, Making a Difference in Property Management, LLC; Management Agent; 6800 Park Ten Blvd, Ste 184-W; San Antonio, TX 78213

View Audit 302860 Questioned Costs: $1

Finding 392474 (2023-001)

Significant Deficiency 2023

Barium Springs Home for Children

NC

Internal Control / Segregation of Duties

Finding: 2023-001 Name of contact person: Celeste Dominguez, President and CEO Corrective Action: Management of Barium Springs Home for Children will establish formal internal controls procedures related to the approval of payroll prior to its submission. Management will mon...

Finding: 2023-001 Name of contact person: Celeste Dominguez, President and CEO Corrective Action: Management of Barium Springs Home for Children will establish formal internal controls procedures related to the approval of payroll prior to its submission. Management will monitor those procedures to ensure they are performed. Proposed Completion Date: Immediately.

View Audit 302783

Finding 392472 (2023-001)

Significant Deficiency 2023

Sonoran University of Health Sciences

AZ

Questioned Costs Subrecipient Monitoring Significant Deficiency

Student Financial Aid Cluster – Assistance Listing No.: Various Recommendation: We recommend that the University review the updated GLBA requirements and ensure their WISP includes all required elements. Explanation of disagreement with audit finding: There is no disagreement with the audit finding....

Student Financial Aid Cluster – Assistance Listing No.: Various Recommendation: We recommend that the University review the updated GLBA requirements and ensure their WISP includes all required elements. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: Sonoran University will implement the corrective action suggestions outlined in the audit findings, including: • Expansion of vulnerability mitigation to include the prescribed penetration and exploitation operations. • Complete migration of Sonoran servers vendor-supported versions (as of this writing, only two systems remaining). • Implementation of a phishing campaign education initiative for Sonoran University Employees. • Update WISP documents to meet the prescribed documentation requirements. • Build University-consistent data retention strategy. Name of the contact person responsible for corrective action: • Paul Collins, Senior Director of IT, Sonoran University. Planned completion date for corrective action plan: • Completion of all items by September 30, 2024.

View Audit 302771

Finding 392365 (2023-001)

Significant Deficiency 2023

Nevins Manor, Inc.

MA

Questioned Costs HUD Housing Programs Significant Deficiency

Section 202 Supportive Housing for the Elderly – Assistance Listing No. 14.157 Recommendation: The Auditors recommend that the Organization obtain approval from HUD to repay the loan advances after the initial due date and to establish internal controls to monitor the repayment of loan advances to e...

Section 202 Supportive Housing for the Elderly – Assistance Listing No. 14.157 Recommendation: The Auditors recommend that the Organization obtain approval from HUD to repay the loan advances after the initial due date and to establish internal controls to monitor the repayment of loan advances to ensure compliance with HUD requirements. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: Procedures have been put in place that all replacement reserve requests due to cash shortfalls are elevated to the VP of Operations who will ensure a plan is in place for timely repayment. Name(s) of the contact person(s) responsible for corrective action: Steve Lodi Planned completion date for corrective action plan: March 21, 2024.

View Audit 302692

Finding 392300 (2023-001)

Significant Deficiency 2023

Southern Union State Community College

AL

Subrecipient Monitoring Reporting Internal Control / Segregation of Duties § 200.303

Dealing with multiple HEERF grants was challenging because each grant required recording in a separate restricted fund. The college omitted one of these funds from the December 2022 quarterly HEERF report. The accountant for restricted grants did not realize a $71,280 purchase order was paid before ...

Dealing with multiple HEERF grants was challenging because each grant required recording in a separate restricted fund. The college omitted one of these funds from the December 2022 quarterly HEERF report. The accountant for restricted grants did not realize a $71,280 purchase order was paid before the end of the quarter, resulting in inaccurate reporting for the quarter. For future reports, the accountant for restricted grants will review all open purchase orders for payment to ensure that paid expenses are correctly included on the published report.

View Audit 302624

Finding 392296 (2023-002)

Significant Deficiency 2023

Southern Union State Community College

AL

Student Financial Aid Reporting Matching / Level of Effort / Earmarking

The Student Financial Aid department will address the circumstances of the finding by working with the institution’s primary contact at the National Student Clearinghouse before Fall 2024. They will review and establish a scheduled transmission of reporting to meet the standards of The Department of...

The Student Financial Aid department will address the circumstances of the finding by working with the institution’s primary contact at the National Student Clearinghouse before Fall 2024. They will review and establish a scheduled transmission of reporting to meet the standards of The Department of Education Title IV programs. The Financial Aid Director and Registrar will work closely together to revise the unofficial withdrawal process before Fall 2024. The new process should ensure unofficial withdrawals are reported promptly, with accurate data, and within the roster file, based on the 50% midpoint of the semester instead of the last date of attendance. Testing will be conducted randomly during Fall 2024 to ensure the accuracy of the new process and the information reported in each roster file.

View Audit 302624

Finding 392292 (2023-004)

None 2023

Carlyle Community Unit School Dist. #1

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. The District will take the necessary steps to file all quarterly expenditure reports on time in the future.

View Audit 302582

Finding 392282 (2023-002)

Significant Deficiency 2023

Cary Community Consoldiated School District No. 26

IL

Internal Control / Segregation of Duties

The Chief School Business Official, along with staff, will review year-end adjustments as part of the audit preparation process and work to reduce the number of entries proposed by the auditors and prepare fully adjusted financial statements prior to audit fieldwork.

View Audit 302542

Finding 392257 (2023-001)

Material Weakness 2023

Home Share 092-Hd017

MN

Internal Control / Segregation of Duties Eligibility HUD Housing Programs § 200.303

Finding: 2023-001 – Compliance and Controls over Compliance – Eligibility Supportive Housing for Persons with Disabilities (Section 811), CFDA No. 14.181 Material Weakness & Noncompliance In 2023, Home Share did not have controls in place to ensure that eligibility criteria and rent calculations w...

Finding: 2023-001 – Compliance and Controls over Compliance – Eligibility Supportive Housing for Persons with Disabilities (Section 811), CFDA No. 14.181 Material Weakness & Noncompliance In 2023, Home Share did not have controls in place to ensure that eligibility criteria and rent calculations were being reviewed and/or approved by someone other than the individual making the initial determination or annual recertification. Actions Taken or Planned: Management agrees with this finding. Beginning in September 2023, management has changed the contractor they work with for the eligibility determination process. Management is working with the contractor to include a second individual in this process so that there will be a review performed by someone other than the individual making the initial determination or annual recertification. Contact Persons: Robert Pickering, Chief Financial Officer

View Audit 302523

Finding 392222 (2023-001)

Significant Deficiency 2023

Voices of Stephenson County

IL

Internal Control / Segregation of Duties Reporting

It is not economically feasible to hire additional staff to resolve the segregation of duties issue. The board will continue to review financial statements, budget vs. actual results, bank reconciliations and expense reports. See full Corrective Action Plan on district letterhead.

View Audit 302435

Finding 392200 (2023-003)

Significant Deficiency 2023

Native American Connections, Inc. and Subsidiary

AZ

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

Initial Fiscal Year Finding Occurred: 2023 Federal Agency Name: U.S. Dept of Housing and Urban Development Program Name: Continuum of Care CFDA #: 14.267 Finding Summary: Significant Deficiency over Internal Controls over Compliance. Matching, Level of Effort, Earmarking No more than 10% of any gra...

Initial Fiscal Year Finding Occurred: 2023 Federal Agency Name: U.S. Dept of Housing and Urban Development Program Name: Continuum of Care CFDA #: 14.267 Finding Summary: Significant Deficiency over Internal Controls over Compliance. Matching, Level of Effort, Earmarking No more than 10% of any grant awarded may be used for paying the costs of administering the assistance. Administrative costs include costs associated with general management, oversight, and coordination, training on the CoC program requirements, and environmental review. Administrative costs do not include costs for CoC planning activities and UFA costs. During testing, differences in amounts in the grant billing worksheets and amounts recorded in general ledger were identified. Responsible Individual: Theresa Perkins, Chief Financial Officer Corrective Action Plan: The NAC Finance leadership team is responsible for the following and will report on the following for FYE 2024: Implementing a structure of internal controls and proper and timely reconciliation of all funding sources and expenses to ensure proper allocation of expenses as well as ensure grant billing and general ledger amounts agree. Anticipated Completion Date: June 30, 2024

View Audit 302424

Finding 392153 (2023-007)

Material Weakness 2023

City of Baldwin Park

CA

Questioned Costs Subrecipient Monitoring Eligibility

2023-007 - Special Tests – Internal Control and Compliance over Housing Quality Standards Inspections (Material Weakness) Condition: We found five (5) instances out of 9 in which the City did not conduct the HQS failed inspection follow up in a timely manner. We also noted three (3) instances out of...

2023-007 - Special Tests – Internal Control and Compliance over Housing Quality Standards Inspections (Material Weakness) Condition: We found five (5) instances out of 9 in which the City did not conduct the HQS failed inspection follow up in a timely manner. We also noted three (3) instances out of 40 samples for eligibility testing has HQS inspections that are over a year apart, which shows that the City did not conduct the HQS biennial inspection in a timely manner. Management concurs. Corrective Actions: Management has directed staff to abide by the PHA policy and HUD regulations for the HQS inspection process. Management will continue to enforce HUD regulations and the use of the PHA’s administrative plan to ensure staff will conduct the HQS biennial inspection in a timely manner. Name of Responsible Person: Ron Garcia, Director of Community Development Imelda Delgado, Housing Manager Projected Implementation Date: Immediately implemented.

View Audit 302364

Finding 392148 (2023-005)

Material Weakness 2023

City of Baldwin Park

CA

Subrecipient Monitoring HUD Housing Programs Reporting § 200.327

2023-005 - Reporting – Internal Control and Compliance over Reporting (Material Weakness) Condition: Community Development Block Grants-Entitlement Grants Cluster The City did not submit the required Cash on Hand Quarterly Report in a timely manner. The quarterly Cash on Hand Quarterly Report for th...

2023-005 - Reporting – Internal Control and Compliance over Reporting (Material Weakness) Condition: Community Development Block Grants-Entitlement Grants Cluster The City did not submit the required Cash on Hand Quarterly Report in a timely manner. The quarterly Cash on Hand Quarterly Report for the all of the four (4) reporting periods were submitted on February 26, 2024. The City did not submit any of the four (4) quarterly Section 15011 Reports for the year ended June 30, 2023. Housing Voucher Cluster The audited Financial Data Schedule (FDS) for the fiscal year ended June 30, 2022 was not submitted on or before the March 31, 2023 due date. The unaudited Financial Data Schedule (FDS) for the fiscal year ended June 30, 2023 was not submitted on or before the August 31, 2023 due date. We also noted for 2 out of 4 VMS reports tested, there was no evidence of review and approval prior to submission to HUD. A nonstatistical sample of 4 out of 12 VMS reports were selected for test work. Management concurs. Corrective Actions: Due to large staff turnover in the Housing Department and Finance Department during the last 2 years, the reporting has been delayed. The City will submit all the approved reports stated above timely going forward. Name of Responsible Person: Ron Garcia, Director of Community Development Imelda Delgado, Housing Manager Rose Tam, Director of Finance Albert Trinh, Accounting Manager Projected Implementation Date: Immediately implemented.

View Audit 302364

Finding 392125 (2023-002)

None 2023

Central Community High School District No. 71

IL

Reporting Internal Control / Segregation of Duties Questioned Costs

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.

View Audit 302324

Finding 392124 (2023-002)

Material Weakness 2023

The Arc of Atlantic County, Inc.

NJ

Reporting Internal Control / Segregation of Duties

The following actions will be taken to address this process. A formalized closing process, completed on both a monthly and annual basis for all financial statement areas, has been initiated. To aid in this process, the accounting software suite used by the organization was expanded to add additional...

The following actions will be taken to address this process. A formalized closing process, completed on both a monthly and annual basis for all financial statement areas, has been initiated. To aid in this process, the accounting software suite used by the organization was expanded to add additional financial reporting modules. In addition, formal modifications have been made to the closeout process. These modifications will include the addition of new support schedules for all significant accounts. To ensure proper segregation, the schedules will be prepared and reviewed by separate individuals with the organization. As part of this new process, these support schedules will be reviewed to ensure consistency with the corresponding general ledger account. Any variances that are identified will be immediately resolved. Management is confident that the actions undertaken will improve the internal controls and financial reporting process of the organization.

View Audit 302297

Corrective Action Plans

Filters