Corrective Action Plans

Finding 391127 (2023-004)

Significant Deficiency 2023

SD

Student Financial Aid Matching / Level of Effort / Earmarking Internal Control / Segregation of Duties

Identifying Number: 2023-004: U.S. Department of Education: Student Financial Aid Cluster – 84.268, Federal Direct Student Loans Finding: During testing of disbursement notifications, one student did not receive the notification in a timely manner. Corrective Action Taken or Planned: STC Financial A...

Identifying Number: 2023-004: U.S. Department of Education: Student Financial Aid Cluster – 84.268, Federal Direct Student Loans Finding: During testing of disbursement notifications, one student did not receive the notification in a timely manner. Corrective Action Taken or Planned: STC Financial Aid Office will continue to monitor disbursements and work to create a report of notifications sent or errors so that notifications are not missed. Contact person: Micah Hansen, Director of Financial Aid, Southeast Technical College Status of finding – The above corrective actions will be implemented beginning July 1, 2024.

View Audit 301715

Finding 391126 (2023-003)

Significant Deficiency 2023

Sioux Falls School District 49-5

SD

Questioned Costs Student Financial Aid Subrecipient Monitoring

Identifying Number: 2023-003: U.S. Department of Education: Student Financial Aid Cluster – 84.268, Federal Direct Student Loans Finding: For one student out of 61 students tested, an incorrect amount of subsidized and unsubsidized loan was awarded. Corrective Action Taken or Planned: STC Financial ...

Identifying Number: 2023-003: U.S. Department of Education: Student Financial Aid Cluster – 84.268, Federal Direct Student Loans Finding: For one student out of 61 students tested, an incorrect amount of subsidized and unsubsidized loan was awarded. Corrective Action Taken or Planned: STC Financial Aid Office will request a list of Build Dakota students and estimated scholarship amounts at the beginning of the academic year. This information will be added into the student’s financial aid packaging formula to review for potential changes needed in federal aid awards. Once the Business Office has completed applying Build Dakota funds for the term, the information will be shared with the Financial Aid Office to make adjustments to the original estimates used. Contact person: Micah Hansen, Director of Financial Aid, Southeast Technical College Status of finding – The above corrective actions will be implemented beginning July 1, 2024.

View Audit 301715 Questioned Costs: $1

Finding 391119 (2023-008)

Significant Deficiency 2023

State of Iowa

IA

Reporting Internal Control / Segregation of Duties

The Department established policies and procedures to ensure evidence of an independent review is documented by the reviewer and date of the review prior to submission, within the reporting deadline. The ETA 2208A report will be reviewed by the Chief Financial Officer or Comptroller and will be evid...

The Department established policies and procedures to ensure evidence of an independent review is documented by the reviewer and date of the review prior to submission, within the reporting deadline. The ETA 2208A report will be reviewed by the Chief Financial Officer or Comptroller and will be evidenced by email approval prior to any future ETA 2208A submissions to the ETA. The Department began this process September 2023.

View Audit 301710

Finding 391117 (2023-007)

Significant Deficiency 2023

State of Iowa

IA

Reporting Internal Control / Segregation of Duties

and retrain as necessary to follow existing policies and procedures to ensure variances identified during the reconciliation process are corrected. The Department is also modifying policies and procedures related to the ETA 2112 report. In addition, management will review ETA 2112 reports for accu...

and retrain as necessary to follow existing policies and procedures to ensure variances identified during the reconciliation process are corrected. The Department is also modifying policies and procedures related to the ETA 2112 report. In addition, management will review ETA 2112 reports for accuracy and to identify if an amended report should be filed

View Audit 301710

Finding 391115 (2023-006)

Significant Deficiency 2023

State of Iowa

IA

Reporting Equipment & Real Property Management Internal Control / Segregation of Duties

Procedures have been established for transmitting the ETA 9050, 9052 and 9055 reports. Included in the procedures are where to retain the supporting data file and review of the report by the Division Administrator or Deputy Division Administrator prior to final transmission. The report must be retur...

Procedures have been established for transmitting the ETA 9050, 9052 and 9055 reports. Included in the procedures are where to retain the supporting data file and review of the report by the Division Administrator or Deputy Division Administrator prior to final transmission. The report must be returned with a signature and date prior to submitting the finalized reports to the Department of Labor within the reporting deadline

View Audit 301710

Finding 391113 (2023-005)

Significant Deficiency 2023

State of Iowa

IA

Reporting Internal Control / Segregation of Duties

A policy and procedure has been established for reporting and filing the ETA 191. Included in the procedure is a requirement to submit the report to the Chief Financial Officer or Comptroller for review and approval. Evidence of review and transmittal is documented via email confirmation to the Acco...

A policy and procedure has been established for reporting and filing the ETA 191. Included in the procedure is a requirement to submit the report to the Chief Financial Officer or Comptroller for review and approval. Evidence of review and transmittal is documented via email confirmation to the Accountant 3 responsible for preparing the ETA 191. Review and approval of the ETA 191 is required to be completed prior to the reports due date. After transmittal to DOL of the ETA 191; a copy with supporting documentation is made available to the Unemployment Division Administrator

View Audit 301710

Finding 391100 (2023-004)

Material Weakness 2023

Ninnekah School District I-51

OK

Questioned Costs Procurement, Suspension & Debarment Subrecipient Monitoring

Air conditioners were purchased by the district as part of the remodeling of the high school to go along with the bond issue. The purchase was made in good faith and the superintendent believed it to be within compliance of the bond issue. The district accepts that the actions were not in complian...

Air conditioners were purchased by the district as part of the remodeling of the high school to go along with the bond issue. The purchase was made in good faith and the superintendent believed it to be within compliance of the bond issue. The district accepts that the actions were not in compliance and will review policy and seek training opportunities to not make the same mistake in the future. All actions will be corrected by June 30, 2024.

View Audit 301693

Finding 391099 (2023-006)

Significant Deficiency 2023

Avera Health

SD

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

Department of Health and Human Services Federal Financial Assistance Listing #93.498 COVID-19 Provider Relief Fund and American Rescue Plan (ARP) Rural Distribution Activities Allowed and Allowable Costs Significant Deficiency in Internal Control over Compliance Finding Summary: Our testing over a...

Department of Health and Human Services Federal Financial Assistance Listing #93.498 COVID-19 Provider Relief Fund and American Rescue Plan (ARP) Rural Distribution Activities Allowed and Allowable Costs Significant Deficiency in Internal Control over Compliance Finding Summary: Our testing over activities allowed and allowable costs identified four instances where the supporting documentation did not agree with the expenditures claimed in the expenditure listing for the program. Responsible Individuals: Jamie Schaefer, John Neth Corrective Action Plan: The Organization will review and strengthen the controls surrounding the period of performance and activities allowed and allowable costs. There are no questioned costs related to this finding. The Organization is in the process of implementing a new enterprise resource planning software which will include a grant module. The grant module will have automated controls surrounding period of performance evaluation and costs will be drillable to ensure cost claimed and supporting documentation exact alignment. Anticipated Completion Date: October 1, 2024

View Audit 301691

Finding 391083 (2023-004)

Significant Deficiency 2023

Avera Health

SD

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

Department of Homeland Security Federal Financial Assistance Listing #97.036 Disaster Grants - Public Assistance Activities Allowed and Allowable Costs Significant Deficiency in Internal Control over Compliance Finding Summary: Our testing over activities allowed and allowable costs identified one...

Department of Homeland Security Federal Financial Assistance Listing #97.036 Disaster Grants - Public Assistance Activities Allowed and Allowable Costs Significant Deficiency in Internal Control over Compliance Finding Summary: Our testing over activities allowed and allowable costs identified one instance where the internal control process failed to identify that the grant was charged at a rate of pay higher than the employee’s hourly approved rate of pay. Responsible Individuals: Jamie Schaefer, John Neth Corrective Action Plan: The Organization will review and strengthen the controls surrounding activities allowed and allowable costs. There are no questioned costs related to this finding. The Organization is in the process of implementing a new enterprise resource planning software which will include a grant module. The grant module will have automated controls surrounding allocations of personnel costs. Anticipated Completion Date: October 1, 2024

View Audit 301691

Finding 391082 (2023-003)

Significant Deficiency 2023

Avera Health

SD

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

Department of Health and Human Services Federal Financial Assistance Listing #93.697 COVID-19 Testing and Mitigation for Rural Health Clinics Period of Performance Significant Deficiency in Internal Control over Compliance Activities Allowed and Allowable Costs Significant Deficiency in Internal C...

Department of Health and Human Services Federal Financial Assistance Listing #93.697 COVID-19 Testing and Mitigation for Rural Health Clinics Period of Performance Significant Deficiency in Internal Control over Compliance Activities Allowed and Allowable Costs Significant Deficiency in Internal Control over Compliance Finding Summary: Our testing over activities allowed and allowable costs and period of performance identified one expenditure that fell outside of the period of performance under the grant and two expenditures that did not agree to supporting documentation. Responsible Individuals: Jamie Schaefer, John Neth Corrective Action Plan: The Organization will review and strengthen the controls surrounding the period of performance and activities allowed and allowable costs. There are no questioned costs related to this finding. The Organization is in the process of implementing a new enterprise resource planning software which will include a grant module. The grant module will have automated controls surrounding Period of performance evaluation and costs will be drillable to ensure cost claimed and supporting documentation are in alignment. Anticipated Completion Date: October 1, 2024

View Audit 301691

Finding 391078 (2023-004)

Material Weakness 2023

Pershing County Hospital District

NV

Questioned Costs Allowable Costs / Cost Principles Material Weakness § 200.303

Department of Health and Human Services Federal Assistance Listing #93.498 COVID-19 Provider Relief Fund and American Rescue Plan (ARP) Rural Distribution Reporting Material Weakness in Internal Control Over Compliance and Material Noncompliance Finding Summary: The Hospital selection the Actual R...

Department of Health and Human Services Federal Assistance Listing #93.498 COVID-19 Provider Relief Fund and American Rescue Plan (ARP) Rural Distribution Reporting Material Weakness in Internal Control Over Compliance and Material Noncompliance Finding Summary: The Hospital selection the Actual Revenue Option (i.e., Option 1) in the HHS Special Report. Option 1 is based on actual quarterly net revenues by payor which are included in the HHS Special Report -Period 4 for years 2019 through 2022. However, management calculated the net revenues using various allocations due to reporting limitations within the accounting and billing system and did not use the actual quarterly financial statements to complete the HHS Special Report. The calculation used by management would be considered an Alternative Reasonable Methodology (i.e., Option 3). The selection of Option 1 was improperly reported within the HHS Special Report – Period 4 which caused the report to be inaccurate. In addition, for Quarter 3 and Quarter 4 of 2021, the amounts reported on the HHS Special Report do not agree to the related client support by $168,838 and $157,009, respectively. In both cases, the support indicated a higher amount of revenue. It should be noted that no lost revenue was reported for Quarter 3 and Quarter 4 in 2021, so there was no impact to the lost revenue calculation. In addition, lost revenue was not used to support the provider relief fund amounts claimed by the Hospital in the HHS Special Report – Period 4 as the Hospital had eligible expenditures to support the amount of provider relief funds claimed. Responsible Individuals: Lynn Broyles, CFO Corrective Action Plan: The Hospital will update the selection for lost revenue on the Report to option 3 and will include a lost revenue calculation narrative on the next Special Report that is required to be filed for Provider Relief Funds. Anticipated Completion Date: June 30, 2024

View Audit 301678

Finding 391068 (2023-001)

Material Weakness 2023

Cedarburg School District

WI

Internal Control / Segregation of Duties

Finding #2023-001 - Material Adjustments - Condition: Material adjusting journal entries not prepared by the District before the audit were required to record and reconcile account balances. Effect: Financial reports generated by the accounting system may not provide an accurate reflection of the D...

Finding #2023-001 - Material Adjustments - Condition: Material adjusting journal entries not prepared by the District before the audit were required to record and reconcile account balances. Effect: Financial reports generated by the accounting system may not provide an accurate reflection of the District's financial position or activities. Not reconciling accounts on a timely basis could lead to errors or other problems not being recognized and resolved. Cause: Financial information was not recorded in a timely manner and material adjustments were needed in order to correct various transactions. Criteria: Material adjusting journal entries not prepared by the District before the audit are considered an internal control weakness. Recommendation: Policies and procedures should be implemented to ensure account balances are properly recorded in a timely manner. Response: The District will work to establish policies and procedures to reduce the materiality of adjusting journal entries proposed by the auditor.

View Audit 301669

Finding 391031 (2023-001)

Material Weakness 2023

Center City Housing Corp.

MN

Material Weakness Reporting Internal Control / Segregation of Duties § 200.512

2023-001: Filing of Single Audit Report Name of contact person: Kris Meyer, Director of Operations Corrective Action: The Corporation continues to work on educating their new team on completing efficient and timely financial close procedures. Management believes their processes are properly design...

2023-001: Filing of Single Audit Report Name of contact person: Kris Meyer, Director of Operations Corrective Action: The Corporation continues to work on educating their new team on completing efficient and timely financial close procedures. Management believes their processes are properly designed to ensure timely filing of the Single Audit Reporting Package under normal circumstances. Proposed completion date: The Organization completed the plan by September 30, 2023.

View Audit 301641

Finding 391017 (2023-031)

Significant Deficiency 2023

State of Louisiana

LA

Questioned Costs Subrecipient Monitoring Reporting

Dear Mr. Waguespack: The Governor’s Office of Homeland Security and Emergency Preparedness (GOHSEP) hereby provides this response to the fiscal year 2023 single audit finding. As requested in your January 25, 2024 correspondence, please see the details of our response below: • This response is pro...

Dear Mr. Waguespack: The Governor’s Office of Homeland Security and Emergency Preparedness (GOHSEP) hereby provides this response to the fiscal year 2023 single audit finding. As requested in your January 25, 2024 correspondence, please see the details of our response below: • This response is provided for the revised finding, “Noncompliance with Reporting Requirements for the Federal Funding Accountability and Transparency Act (FFATA).” • GOHSEP concurs with the individual finding and recommendation: • While all FY23 FMA obligation entries were made into FSRS, GOHSEP concedes that the FSRS entries were not made in accordance with the portion of 2 CFR Part 170, Appendix A(I)(a) which requires the entries to be made by the end of the month following the month in which the obligation was made. • As discussed with LLA staff, GOHSEP encountered issues with staff having limited access to all necessary grants in FSRS. • Also as previously discussed, GOHSEP Hazard Mitigation Assistance (HMA) is currently unable to use the FFATA reporting feature in GOHSEP Grants (system of record) to import the data into FSRS. • GOHSEP concurs with LLA’s recommendation that GOHSEP should strengthen internal controls to ensure that appropriate personnel have the necessary access to FSRS and are timely entering the required award information for FFATA reporting in accordance with federal requirements. • Corrective Action Plan: o Persons responsible for corrective action: • Sandra D. Gaspard (Assistant Director, HMA) • Jeffrey Giering (Executive Officer, HMA) o Corrective Action Planned: • Identify additional HM staff that will be responsible for accurate and timely FSRS entry and reporting (prime contact plus support staff) • Access to Grants/Subgrants in FSRS: GOHSEP will work with FEMA and other Federal contacts as required to ensure all assigned staff have the proper access and permissions to edit all HMA grants/subgrants as necessary. • GOHSEP HMA will continue working with GOHSEP IT and with the GOHSEP Grants vendor to ensure that the FFATA reporting function in the system becomes functional and continues working correctly. This will enable HMA staff to more accurately and efficiently enter the required obligation information into FSRS, versus a manual process. o Anticipated Completion Date: • We estimate that the appropriate staff will have proper access to the FSRS within 30-90 days, depending on timeline of federal permissions approval. Data entry in the system will proceed via a manual process and will be monitored for timely entry, as per 2 CFR Part 170, Appendix A (I)(a). • Due to the need for technical assistance and potentially for funding for a system enhancement on the GOHSEP Grants portion, we estimate this will be complete in 90-180 days. We appreciate your assistance with this matter. If you need additional information, please contact Sandra D. Gaspard, Assistant Director, HMA at 985-969-0410 or via email at Sandra.Dugas@la.gov.

View Audit 301612

Finding 390977 (2023-027)

Significant Deficiency 2023

State of Louisiana

LA

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

Dear Mr. Waguespack, The Louisiana Department of Health (LDH) acknowledges receipt of correspondence from the Louisiana Legislative Auditor dated January 10, 2024, regarding a reportable audit finding related to controls over and noncompliance with provider overpayments at the LDH. The LDH apprecia...

Dear Mr. Waguespack, The Louisiana Department of Health (LDH) acknowledges receipt of correspondence from the Louisiana Legislative Auditor dated January 10, 2024, regarding a reportable audit finding related to controls over and noncompliance with provider overpayments at the LDH. The LDH appreciates the opportunity to provide this response to your office's findings. Finding: Weakness in Controls over and Noncompliance with Provider Overpayments Recommendation: LDH should ensure it is able to provide supporting documentation timely for the amounts reported in the quarterly CMS reports for provider overpayments. In addition, LDH should strengthen internal controls to ensure identification for the correct date of discovery for provider overpayments and compliance with federal regulations regarding the timely return of those overpayments. LDH Response: LDH concurs with the finding and recommendation. Corrective Action Plan: We will continue to actively engage in communication with the state auditors throughout the review period to ensure we yield a clear picture and understanding of what is being evaluated and what documentation is needed to mitigate future findings. Additionally, LDH has reviewed its current practices and procedures and are making modifications to the notification documents submitted to Fiscal to ensure that the discovery date is clearly identified. The anticipated completion date of all corrective action is June 30, 2024. You may contact Helen Harris, LDH Fiscal Director, by telephone at 225-342-9568 or by e-mail at helen.harris@la.gov with any questions about this matter.

View Audit 301612

Finding 390976 (2023-026)

Material Weakness 2023

State of Louisiana

LA

Questioned Costs Special Tests & Provisions Reporting

Dear Mr. Waguespack: The Louisiana Department of Health (LDH) acknowledges receipt of correspondence from the Louisiana Legislative Auditor (LLA) dated December 21, 2023, regarding a reportable audit finding related to Noncompliance with Managed Care Provider Enrollment and Screening Requirement. L...

Dear Mr. Waguespack: The Louisiana Department of Health (LDH) acknowledges receipt of correspondence from the Louisiana Legislative Auditor (LLA) dated December 21, 2023, regarding a reportable audit finding related to Noncompliance with Managed Care Provider Enrollment and Screening Requirement. LDH appreciates the opportunity to provide this response to your office's findings. Finding: Noncompliance with Managed Care Provider Enrollment and Screening Requirement Recommendation: LDH should ensure all providers are screened and enrolled as required by federal regulations. LDH Response: LDH concurs with the finding that it did not complete all five-year revalidations during State Fiscal Year (SFY) 23. Corrective Actions: LDH is in the process of amending the Gainwell Technologies contract to establish a process whereby new fee for service and Managed Care Entity (MCE) providers are identified for inclusion in the Provider Enrollment Compliance Implementation (PECI) enrollment module. The tentative completion date of enrolling the new providers is September 30, 2024, then a bi-monthly cycle will be utilized to invite incoming providers to enroll. LDH is seeking a longer-term solution that will modernize the provider management system and achieve the CMS preference of modularity. LDH continues to keep CMS informed of our progress toward achieving compliance with CMS regulations. You may contact Kimberly Sullivan, Interim Medicaid Director at (225) 219-7810 or via e-mail at Kimberly.Sullivan@la.gov or Brandon Bueche, Medicaid Section Chief at (225) 384-0460 or via email at Brandon.Bueche@la.gov with any questions about this matter.

View Audit 301612

Finding 390967 (2023-019)

None 2023

State of Louisiana

LA

Questioned Costs Allowable Costs / Cost Principles Matching / Level of Effort / Earmarking

Dear Mr. Waguespack: The Department of Children and Family Services (DCFS) has reviewed the finding “Control Weakness over Social Services Block Grant Activities Allowed or Unallowed”. The finding noted that as of June 30, 2023, the Department of Children and Family Services (DCFS) did not have a ...

Dear Mr. Waguespack: The Department of Children and Family Services (DCFS) has reviewed the finding “Control Weakness over Social Services Block Grant Activities Allowed or Unallowed”. The finding noted that as of June 30, 2023, the Department of Children and Family Services (DCFS) did not have a formalized process in place to ensure Temporary Assistance for Needy Families (TANF) grant funds transferred to the Social Services Block Grant (SSBG) were only used for programs or services for children or their families whose income is less than 200 percent of the federal poverty level. DCFS continuously strives to improve processes and controls and concurs with the finding. In addition to developing written procedures to document the department’s process for ensuring expenditures related to TANF funds transferred to SSBG are used only for services related to children and families who meet TANF income requirements, DCFS will no longer utilize TANF transfer funds on salaries to caseworkers through its Public Assistance Cost Allocation Plan. The new procedures, which include monthly reports of TANF eligibility to support TANF transfers to SSBG, were implemented in October 2023, and system enhancements to Tracking Information Payment System (TIPS) is in progress. The expected date of completion is January 2024. The contact person for the Title IVE Foster Care program is Sharla Lewis-Thomas, Child Welfare Manager 2, and she can be reached at (318) 487-5437 or Sharla.Thomas.DCFS@LA.GOV.

View Audit 301612 Questioned Costs: $1

Finding 390928 (2023-014)

Significant Deficiency 2023

State of Louisiana

LA

Questioned Costs Special Tests & Provisions HUD Housing Programs

Dear Mr. Waguespack: The Department is in receipt of your single audit finding entitled "Inadequate Controls over and Noncompliance with Wage Rate Requirements". I appreciate the opportunity to respond to the finding and also to have my response letter included as an attachment in the final report....

Dear Mr. Waguespack: The Department is in receipt of your single audit finding entitled "Inadequate Controls over and Noncompliance with Wage Rate Requirements". I appreciate the opportunity to respond to the finding and also to have my response letter included as an attachment in the final report. The Department concurs with the finding. We plan to implement all corrective actions by April 30, 2024. Ms. Paula Roddy, Compliance Programs Director, will be responsible for ensuring implementation for all Compliance related matters. Mr. M. Todd Donmyer, Assistant Secretary of Operations, will be responsible for ensuring implementation for all Operations related matters. The following are our corrective action plans for each of the issues noted: • To address the exceptions identified with DOTD's compliance with the Copeland Act ensuring that contractor's estimates are only approved after all required payrolls for the service period are submitted, we offer the following control enhancements: o Compliance Programs will update the Labor Compliance Manual to add the Estimate Approval Process with specific instructions for the following Construction phases of a project: • Assembly Period 1st estimate • Zero Dollar estimate • Project estimate (payroll coverage needed to approve) • 30-day estimate • 30 plus day estimate • Closeout estimate o Responsible Compliance Programs employee and backup will be trained on Manual updates o Compliance Programs will discuss these requirements at any Project Engineer and District Administrator meetings section personnel attend, as well as at the annual shade tree meetings, when possible. • To address the exceptions identified with compliance with DOTD's policy for site interviews for Davis-Bacon eligible projects, we offer the following control enhancements: o The Office of Operations will develop a District by District process to schedule, coordinate, and follow-up with their respective Project Engineers to ensure site interviews are performed, signed, and scanned into the system of record. Additionally, part of this process will be to develop an internal audit process to ensure the controls implemented are working effectively. o Compliance Programs will work with the Enterprise Support Services to develop a report identifying all Davis-Bacon eligible projects. This list will be communicated on an ongoing basis to the responsible District personnel and will be used by the Labor Compliance Manager to perform spot audits for compliance. Any areas of deficiency should be addressed or exceptions documented accordingly. o Compliance Programs will discuss these requirements at any Project Engineer and District Administrator meetings section personnel attend, as well as at the annual shade tree meeting when possible. Thank you for the opportunity to respond to this audit finding and to have this Management Response Letter included in the final audit report. Please feel free to contact me at (225) 379-1200 or Don Johnson, Undersecretary, at (225) 379-1010, should you have any questions.

View Audit 301612

Finding 390900 (2023-002)

None 2023

Lutheran Housing Services, Inc. No.3 Dba Luther Oaks 042-11109-Wah-L8

OH

Procurement, Suspension & Debarment Subrecipient Monitoring HUD Housing Programs

Condition: The Organization did not comply with the regulatory agreement requirement to have a security deposit cash account that meets or exceeds the security deposit liability account. Planned Corrective Action: Management acknowledges noncompliance in the current fiscal year and has taken measure...

Condition: The Organization did not comply with the regulatory agreement requirement to have a security deposit cash account that meets or exceeds the security deposit liability account. Planned Corrective Action: Management acknowledges noncompliance in the current fiscal year and has taken measures to improve internal controls over compliance. Management will deposit funds to the security deposit cash account in order to meet the regulatory agreement requirement. Contact person responsible for corrective action: Lorinda Schalk, Chief Financial Officer / Treasurer Anticipated Completion Date: March 31, 2024

View Audit 301609

Finding 390899 (2023-001)

None 2023

Lutheran Housing Services, Inc. No.3 Dba Luther Oaks 042-11109-Wah-L8

OH

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

Condition: The Organization failed to make, on a monthly basis, the required reserve for replacements deposits in the amounts specified in the subsequent amendments to required deposit amounts approved by HUD. Planned Corrective Action: Management detected the error and worked with the Organization'...

Condition: The Organization failed to make, on a monthly basis, the required reserve for replacements deposits in the amounts specified in the subsequent amendments to required deposit amounts approved by HUD. Planned Corrective Action: Management detected the error and worked with the Organization's lender to calculate and remit a corrective deposit in the current fiscal year to catch-up previously underfunded amounts. Management acknowledges noncompliance and has taken measures to improve internal controls over compliance. Contact person responsible for corrective action: Lorinda Schalk, Chief Financial Officer / Treasurer Anticipated Completion Date: March 31, 2024

View Audit 301609

Finding 390898 (2023-001)

None 2023

Lutheran Housing Svcs, Inc. No. 1 D/b/a Luther Pines 043-35588

OH

HUD Housing Programs Internal Control / Segregation of Duties

Condition: The Organization failed to make, on a monthly basis, the required reserve for replacements deposits in the amounts specified in the subsequent amendments to required deposit amounts approved by HUD. Planned Corrective Action: Management detected the error and worked with the Organization'...

Condition: The Organization failed to make, on a monthly basis, the required reserve for replacements deposits in the amounts specified in the subsequent amendments to required deposit amounts approved by HUD. Planned Corrective Action: Management detected the error and worked with the Organization's lender to calculate and remit a corrective deposit in the current fiscal year to catch-up previously underfunded amounts. Management acknowledges noncompliance and has taken measures to improve internal controls over compliance. Contact person responsible for corrective action: Lorinda Schalk, Chief Financial Officer / Treasurer Anticipated Completion Date: March 31, 2024

View Audit 301608

Finding 390867 (2023-001)

Significant Deficiency 2023

Saugatucket Spring INC

RI

HUD Housing Programs Internal Control / Segregation of Duties

Corrective Action Plan United States Department of Housing and Urban Development Saugatucket Springs, Inc. respectfully submits the following corrective action plan for the year ended June 30, 2023 Name of Audit Firm: Damiano, Burk & Nuttall, P.C. 6 Blackstone Valley Place Suite 109 Lincoln, RI 0286...

Corrective Action Plan United States Department of Housing and Urban Development Saugatucket Springs, Inc. respectfully submits the following corrective action plan for the year ended June 30, 2023 Name of Audit Firm: Damiano, Burk & Nuttall, P.C. 6 Blackstone Valley Place Suite 109 Lincoln, RI 02865 Audit period covered: 7/1/2022-6/30/2023 The findings from the June 30, 2023 schedule of findings and questioned costs are discussed below. The findings are numbered consistently with the numbers assigned in the schedule. Section A of the schedule, Summary of Audit Results, does not include findings and is not addressed. FINDINGS—FEDERAL AWARD PROGRAMS AUDITS DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT FINDING 2023-001: Section 202 Project Rental Assistance—Assistance Listing # 14.157 Recommendation: The Partnership should design and implement internal controls to ensure that all security deposits are transferred in the required time period. Management should also conduct a monthly inspection of the security deposit listing. Action Taken: Management is in agreement with the auditors’ findings. Management has instructed all accounting personnel to review all matters related to tenant compliance. If the United States Department of Housing and Urban Development has questions regarding this plan, please call Frank Shea at (401) 296-3761.

View Audit 301572

Finding 390866 (2023-001)

Significant Deficiency 2023

Wildberry Apartments, INC

RI

HUD Housing Programs Internal Control / Segregation of Duties

Corrective Action Plan United States Department of Housing and Urban Development Wildberry Apartments, Inc. respectfully submits the following corrective action plan for the year ended June 30, 2023 Name of Audit Firm: Damiano, Burk & Nuttall, P.C. 6 Blackstone Valley Place Suite 109 Lincoln, RI 028...

Corrective Action Plan United States Department of Housing and Urban Development Wildberry Apartments, Inc. respectfully submits the following corrective action plan for the year ended June 30, 2023 Name of Audit Firm: Damiano, Burk & Nuttall, P.C. 6 Blackstone Valley Place Suite 109 Lincoln, RI 02865 Audit period covered: 7/1/2022-6/30/2023 The findings from the June 30, 2023 schedule of findings and questioned costs are discussed below. The findings are numbered consistently with the numbers assigned in the schedule. Section A of the schedule, Summary of Audit Results, does not include findings and is not addressed. FINDINGS—FEDERAL AWARD PROGRAMS AUDITS DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT FINDING 2023-001: Section 202 Project Rental Assistance—Assistance Listing # 14.157 Recommendation: The Partnership should design and implement internal controls to ensure that all security deposits are transferred in the required time period. Management should also conduct a monthly inspection of the security deposit listing. Action Taken: Management is in agreement with the auditors’ findings. Management has instructed all accounting personnel to review all matters related to tenant compliance. If the United States Department of Housing and Urban Development has questions regarding this plan, please call Frank Shea at (401) 296-3761.

View Audit 301563

Finding 390842 (2023-001)

Significant Deficiency 2023

Rockton School District No. 140

IL

Internal Control / Segregation of Duties

The District will continue procedures to provide oversight to the bookkeeper and treasurer positions, including oversight of bank reconciliations.

View Audit 301558

Finding 390832 (2023-005)

Material Weakness 2023

County of Solano

CA

Internal Control / Segregation of Duties Questioned Costs Material Weakness § 200.303

Federal Agency: U.S. Department of Health and Human Services Program/Cluster: Epidemiology and Laboratory Capacity for Infectious Diseases Federal Assistance Listing Number: 93.323 Pass‐through: California Department of Public Health Award No. and Year: COVID-19ELC48, COVID-19ELC106, 2021/2022 Compl...

Federal Agency: U.S. Department of Health and Human Services Program/Cluster: Epidemiology and Laboratory Capacity for Infectious Diseases Federal Assistance Listing Number: 93.323 Pass‐through: California Department of Public Health Award No. and Year: COVID-19ELC48, COVID-19ELC106, 2021/2022 Compliance Requirement: Reporting Type of Finding: Material Weakness in Internal Control over Compliance Views of Responsible Officials and Corrective Action Plan: Management agrees with the finding. Corrective action was implemented in April 2023. Responsible Individual(s): Nina Delmendo, Director of Administrative Services Anticipated Completion Date: April 2023

View Audit 301557

Corrective Action Plans

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