Corrective Action Plans

Finding 50526 (2022-001)

None 2022

DC

Reporting Internal Control / Segregation of Duties

Finding 2022-001 ? Reporting Grantor: Department of Education Program: Education Stabilization Fund Assistance Listing#: 84.425F Award Title: Higher Education Emergency Relief Funding Award Year: 07/1/2021 ? 06/30/2022 Award Number: 204302 - 20A Pass-through Number: Not applicable T...

Finding 2022-001 ? Reporting Grantor: Department of Education Program: Education Stabilization Fund Assistance Listing#: 84.425F Award Title: Higher Education Emergency Relief Funding Award Year: 07/1/2021 ? 06/30/2022 Award Number: 204302 - 20A Pass-through Number: Not applicable The finding above was noted during the Uniform Guidance audit for the year ended June 30, 2022 which is performed in accordance with Government Auditing Standards. Management of American University agrees with this finding and proposes the following Corrective Action Plan. Corrective Action Plan As of June 30, 2021, American University (the University) expended one hundred percent of both the student and institutional allocations of the Coronavirus Response and Relief Supplemental Appropriations Act (CRRSAA). Due to an oversight by management, the final reports were not posted until July 27, 2021, seventeen days after the required reporting date of July 10, 2021. The university revised its internal communication process around reporting for all awards received for Higher Education Emergency Relief Funds having no further reporting findings related to the CRRSAA or American Rescue Plan Act (ARPA) funding. Nicole L. Bresnahan Assistant Vice President, Financial Operations American University Washington, DC 20016

View Audit 44754

Finding 50525 (2022-003)

Significant Deficiency 2022

YWCA Madison, Inc.

WI

Procurement, Suspension & Debarment Subrecipient Monitoring Matching / Level of Effort / Earmarking § 200.313

FINDINGS ? FEDERAL AWARD PROGRAM AUDIT SIGNIFICANT DEFICIENCY 2022-003 Coronavirus State and Local Fiscal Recovery Funds ? Assistance Listing No. 21.027 Recommendation: YWCA should establish written policies and procedures over procurement to clearly document who is responsible for reviewing, wha...

FINDINGS ? FEDERAL AWARD PROGRAM AUDIT SIGNIFICANT DEFICIENCY 2022-003 Coronavirus State and Local Fiscal Recovery Funds ? Assistance Listing No. 21.027 Recommendation: YWCA should establish written policies and procedures over procurement to clearly document who is responsible for reviewing, what is to be reviewed, and how and where to document the review of procurement methods, rationale, and decisions. Action Taken: We concur with the recommendation and have developed the following plan. Consistent with the above findings and in compliance with guidance set forth in the Uniform Guidance 2 CFR section 200.303, YWCA Madison, Inc. will update our procurement policy to list who is responsible for reviewing quotes, what information is to be reviewed, and how and where to document the review of procurement methods, rationale, and decisions. YWCA Madison, Inc. will also create a procurement checklist to document the item or service being purchased, the dollar threshold, basic information about quotes requested and obtained, the vendor selected and the rationale and approval. We will update the monitoring checklist to include a review of any procurement checklists for the month. The monitoring checklist will be reviewed monthly by the CEO and the review will be documented.

View Audit 48383

Finding 50523 (2022-001)

Material Weakness 2022

YWCA Madison, Inc.

WI

Subrecipient Monitoring Allowable Costs / Cost Principles Reporting § 200.303

FINDINGS ? FEDERAL AWARD PROGRAM AUDIT MATERIAL WEAKNESS 2022-001 Coronavirus State and Local Fiscal Recovery Funds ? Assistance Listing No. 21.027 Recommendation: YWCA should establish written policies and procedures to provide for timely and appropriate review and approval and adequate document...

FINDINGS ? FEDERAL AWARD PROGRAM AUDIT MATERIAL WEAKNESS 2022-001 Coronavirus State and Local Fiscal Recovery Funds ? Assistance Listing No. 21.027 Recommendation: YWCA should establish written policies and procedures to provide for timely and appropriate review and approval and adequate documentation of overhead allocations and time and effort reporting. Action Taken: We concur with the recommendation and have developed the following plan. In compliance with guidance set forth in the Uniform Guidance 2 CFR section 200.303, YWCA Madison, Inc. will document written policies and procedures to ensure timely and appropriate review and approval of overhead allocations and time and effort reporting. These policies and procedures will also describe the documentation to be used as support for the overhead allocations and time and effort reporting i.e., signed staff timesheets, program or department headcount, and facility floor plans. Additionally, on a quarterly basis, YWCA Madison, Inc. will document, review, and update, if necessary, the basis used for allocating overhead costs and time and effort reporting. A review of this process will be added to the monitoring checklist as part of the internal controls checklist. This checklist will be reviewed monthly by the CEO and the review will be documented.

View Audit 48383

Finding 50503 (2022-003)

Material Weakness 2022

Vigo County School Corporation

IN

Subrecipient Monitoring Special Tests & Provisions Matching / Level of Effort / Earmarking § 200.303 § 200.333 § 200.334

FINDING 2022-003 Contact Person Responsible for Corrective Action: Teresa Stuckey, Director of Elementary Education and Title I Contact Phone Number: 812-462-4228 Views of Responsible Official: The School Corporation will implement effective processes to ensure that the Special Tests and Provisions ...

FINDING 2022-003 Contact Person Responsible for Corrective Action: Teresa Stuckey, Director of Elementary Education and Title I Contact Phone Number: 812-462-4228 Views of Responsible Official: The School Corporation will implement effective processes to ensure that the Special Tests and Provisions ? Annual Report Card, High School Graduation Rate data is solicited and maintained for audit purposes. Description of Corrective Action Plan: The School Corporation will work to develop a more defined process that ensures compliance with procedures that were established, but have not always followed, to ensure that the Special Tests and Provisions ? Annual Report Card, High School Graduation Rate compliance requirement is met. Specific employees will be placed in charge of obtaining documentation from students leaving the district and others will be asked to review and approve the documentation. If documentation is not successfully garnered from parents, schools will maintain records indicating the school?s efforts to solicit the correct documentation from parents. Anticipated Completion Date: Immediately.

View Audit 53341

Finding 50502 (2022-002)

Material Weakness 2022

Vigo County School Corporation

IN

Subrecipient Monitoring Internal Control / Segregation of Duties Matching / Level of Effort / Earmarking § 200.303 § 200.333 § 200.334 § 200.77 § 200.78

FINDING 2022-002 Contact Person Responsible for Corrective Action: Teresa Stuckey, Director of Elementary Education and Title I Contact Phone Number: 812-462-4228 Views of Responsible Official: The School Corporation will work with non-public schools to make sure that their enrollment is properly re...

FINDING 2022-002 Contact Person Responsible for Corrective Action: Teresa Stuckey, Director of Elementary Education and Title I Contact Phone Number: 812-462-4228 Views of Responsible Official: The School Corporation will work with non-public schools to make sure that their enrollment is properly reported. Description of Corrective Action Plan: School Corporation personnel will work with non-public school representatives to secure accurate enrollment information and maintain the proper documentation for audit purposes. Additionally, enrollment data entered on the Title I application portal will be reviewed prior to submission to ensure that data entered agrees with supporting documentation. Anticipated Completion Date: During submission of the 23-24 Title I application.

View Audit 53341

Finding 50501 (2022-005)

Material Weakness 2022

City of Bloomer

WI

Internal Control / Segregation of Duties Procurement, Suspension & Debarment Material Weakness

2022-005 Procurement Policy Recommendation: The City should be familiar with compliance requirements outlined by Uniform Guidance. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action planned in response to finding: The City approved a procurement p...

2022-005 Procurement Policy Recommendation: The City should be familiar with compliance requirements outlined by Uniform Guidance. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action planned in response to finding: The City approved a procurement policy in 2023 that follows the related requirements outlined in Uniform Guidance. Name(s) of the contact person(s) responsible for corrective action: Sandi Frion, Administrator. Planned completion date for corrective action plan: The activities outlined above will be completed by September 30, 2023.

View Audit 52928

Finding 50500 (2022-004)

Material Weakness 2022

City of Bloomer

WI

Material Weakness Reporting Internal Control / Segregation of Duties

2022-004 Investment Financial Reporting under Generally Accepted Accounting Principles (GAAP) Recommendation: The City should continue to evaluate its internal staff and expertise to determine if an internal control policy over the investment related disclosures is beneficial. Explanation of disagre...

2022-004 Investment Financial Reporting under Generally Accepted Accounting Principles (GAAP) Recommendation: The City should continue to evaluate its internal staff and expertise to determine if an internal control policy over the investment related disclosures is beneficial. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action planned in response to finding: The City will continue to rely upon the audit firm to prepare the investment related footnote disclosures in accordance with GAAP. Management will review, approve, and accept responsibility for these investment related footnote disclosures prior to issuance. Name(s) of the contact person(s) responsible for corrective action: Sandi Frion, Administrator. Planned completion date for corrective action plan: The activities outlined above will be completed by September 30, 2023.

View Audit 52928

Finding 50499 (2022-003)

Material Weakness 2022

City of Bloomer

WI

Material Weakness Reporting Internal Control / Segregation of Duties

2022-003 Annual Financial Reporting under Generally Accepted Accounting Principles (GAAP) Recommendation: The City should continue to evaluate its internal staff and expertise to determine if an internal control policy over the annual financial reporting is beneficial. Explanation of disagreement wi...

2022-003 Annual Financial Reporting under Generally Accepted Accounting Principles (GAAP) Recommendation: The City should continue to evaluate its internal staff and expertise to determine if an internal control policy over the annual financial reporting is beneficial. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action planned in response to finding: The City will continue to rely upon the audit firm to prepare the annual financial statements and related footnote disclosures in accordance with GAAP. Management will review, approve and accept responsibility for these financial statements and related footnote disclosures prior to issuance. Name(s) of the contact person(s) responsible for corrective action: Sandi Frion, Administrator. Planned completion date for corrective action plan: The activities outlined above will be completed by September 30, 2023.

View Audit 52928

Finding 50498 (2022-002)

Material Weakness 2022

City of Bloomer

WI

Internal Control / Segregation of Duties

2022-002 Material Audit Adjustments Recommendation: The City should continue to evaluate its internal control processes to determine if additional internal control procedures should be implemented to ensure that accounts are adjusted to their appropriate year end balances in accordance with Generall...

2022-002 Material Audit Adjustments Recommendation: The City should continue to evaluate its internal control processes to determine if additional internal control procedures should be implemented to ensure that accounts are adjusted to their appropriate year end balances in accordance with Generally Accepted Accounting Principles (GAAP). Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action planned in response to finding: The City will continue to rely upon the audit firm to propose audit adjustments necessary to adjust accounts in accordance with GAAP. Management will review and approve these entries prior to recording them. Name(s) of the contact person(s) responsible for corrective action: Sandi Frion, Administrator. Planned completion date for corrective action plan: The activities outlined above will be completed by September 30, 2023.

View Audit 52928

Finding 50497 (2022-001)

Material Weakness 2022

City of Bloomer

WI

Internal Control / Segregation of Duties Material Weakness Reporting

MATERIAL WEAKNESSES 2022-001 Limited Segregation of Duties Recommendation: The City should continue to evaluate its staffing in order to segregate incompatible duties whenever possible. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action planned in...

MATERIAL WEAKNESSES 2022-001 Limited Segregation of Duties Recommendation: The City should continue to evaluate its staffing in order to segregate incompatible duties whenever possible. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action planned in response to finding: The City will continue to work to achieve segregation of duties whenever cost effective. Name(s) of the contact person(s) responsible for corrective action: Sandi Frion, Administrator. Planned completion date for corrective action plan: The activities outlined above will be completed by September 30, 2023.

View Audit 52928

Finding 50494 (2022-002)

Significant Deficiency 2022

Sitka School District

AK

Cash Management Reporting Significant Deficiency

Finding 2022-002 Late Reporting and Noncompliance with Reporting Requirements Name of Contact Person: Leslie Young Corrective Action Plan: The district business office has had significant staffing transitions within the last year and was without a business manager for six months, despite a continu...

Finding 2022-002 Late Reporting and Noncompliance with Reporting Requirements Name of Contact Person: Leslie Young Corrective Action Plan: The district business office has had significant staffing transitions within the last year and was without a business manager for six months, despite a continual search for qualified applicants. It was identified that the district did not provide one quarterly reimbursement request to the State of Alaska in a timely manner during this period. The district business office is now fully staffed, with new staff hired in August, and is currently addressing this matter. Staff are being trained to support timely submission of quarterly reporting. Proposed Completion Date: 6/30/2023

View Audit 52864

Finding 50478 (2022-002)

Significant Deficiency 2022

Pewamo-Westphalia Community Schools

MI

Subrecipient Monitoring Internal Control / Segregation of Duties

District response to Audit Finding 2022-001 ? Contact Person Responsible for Corrective Action ? Scott Brown and Jennifer Goodman Management agrees with this audit finding. The district received an unprecedented amount of federal funding in 2021-2022 to reimburse the district for Food Service meal...

District response to Audit Finding 2022-001 ? Contact Person Responsible for Corrective Action ? Scott Brown and Jennifer Goodman Management agrees with this audit finding. The district received an unprecedented amount of federal funding in 2021-2022 to reimburse the district for Food Service meals for all students. As a result, the district's Food Service program completed the 2021-2022 fiscal year with an ending fund balance that exceeded the average three months of expenditures threshold by approximately $144,000. The corrective action planned is for management to meet and determine how to spend this $144,000 excess amount toward allowable Food Service program expenditures no later than June 30, 2023. The District must then report to the Michigan Department of Education (MOE) how it expects to spend this excess amount by January 2023. The district expects to meet the January 2023 deadline to submit a spending plan to MDE. The district also expects to spend down the excess $144,000 by June 30, 2023. District response to Audit Finding 2022-002 ? Contact Person Responsible for Corrective Action ? Scott Brown and Jennifer Goodman Management agrees with this audit finding. The district did not have controls in place to determine if contractors are complying with the Davis-Bacon Act regarding the payment of prevailing wage rates. District personnel were unaware that monitoring compliance with the Davis-Bacon Act regarding the payment of prevailing wage rates was a responsibility of the district. The corrective action plan to address this audit finding begins with education. Management now understands that compliance with the Davis-Bacon Act must be considered when working with contractors and subcontractors on federal contracts in excess of $2,000. The district has also updated the district's Business Office Operating Procedures Manual to include language that prevailing wage rates and review of contractor's employee timesheets must be complied. The district expects to be in compliance in regard to all Davis-Bacon Act regulations moving forward when contracting with contractors and subcontracted in excess of $2,000.00 when utilizing federal grant funding.

View Audit 51225

Finding 50470 (2022-001)

Significant Deficiency 2022

Council Towers IV Housing Development Fund Corporation

NY

Questioned Costs Special Tests & Provisions HUD Housing Programs

Views of Responsible Officials and Planned Corrective Actions Management agrees with the finding and will implement the auditor?s recommendations. The recommendation, if effectively implemented, should prevent this condition from arising again. Action 1- The issue was communicated to the management ...

Views of Responsible Officials and Planned Corrective Actions Management agrees with the finding and will implement the auditor?s recommendations. The recommendation, if effectively implemented, should prevent this condition from arising again. Action 1- The issue was communicated to the management company and the property was reimbursed for $2,450 on September 26th, 2023. Action 2-To prevent a future overpayment of the management fee, a procedure will be implemented whereby the management fee will be recalculated using the rate included in the current management certification. Any differences will be investigated and resolved before the management fee is paid to the management company.

View Audit 41871 Questioned Costs: $1

Finding 50469 (2022-002)

Significant Deficiency 2022

Home Forward

OR

HUD Housing Programs Eligibility Significant Deficiency

2022-02 Moving to Work Demonstration Program ? Assistance Listing No. 14.881 Recommendation: We recommend the Authority review their process and internal controls over eligibility to ensure compliance with HUD requirements and their administrative plan. Explanation of disagreement with audit findin...

2022-02 Moving to Work Demonstration Program ? Assistance Listing No. 14.881 Recommendation: We recommend the Authority review their process and internal controls over eligibility to ensure compliance with HUD requirements and their administrative plan. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: The files in question were moved from one office to another using Home Forward?s contracted courier system. Moving forward, any file that must be transported from one office to another will require the signature of the individual who is receiving the file as well as the individual relinquishing the file. The department will develop a new policy and train staff on the new procedure. In addition, the department will be conducting an audit of each site to assure that all files are present and accounted for. Name(s) of the contact person(s) responsible for corrective action: Elise Anderson, Celeste King Planned completion date for corrective action plan: 12/31/2023.

View Audit 45210

Finding 50468 (2022-001)

Significant Deficiency 2022

Home Forward

OR

Special Tests & Provisions HUD Housing Programs Significant Deficiency § 200.326

U.S. Department of Housing and Urban Development 2022-01 Moving to Work Demonstration Program ? Assistance Listing No. 14.881 Recommendation: We recommend Home Forward review their process and internal controls over contracts subject to wage rate requirements to ensure compliance with HUD requireme...

U.S. Department of Housing and Urban Development 2022-01 Moving to Work Demonstration Program ? Assistance Listing No. 14.881 Recommendation: We recommend Home Forward review their process and internal controls over contracts subject to wage rate requirements 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: Home Forward?s Procurement group will add an additional layer of contract review to the department?s quarterly review process. Procurement will begin review of the activity input into the agency?s certified payroll reporting system to compare to the payments made to contractors withing the period. Any payment activity will be cross referenced with the certified payroll to ensure receipt of Davis Bacon reporting has been submitted. Procurement will work with the Property Management group to resolve any items that require follow up with the contractors as a result of the review. Name(s) of the contact person(s) responsible for corrective action: Elise Anderson Planned completion date for corrective action plan: 12/31/2023.

View Audit 45210

Finding 50462 (2022-005)

Material Weakness 2022

City of West Allis

WI

HUD Housing Programs Material Weakness Period of Performance

Housing Choice Voucher Program ? Assistance Listing No. 14.871 We recommend that the City review its system of internal control related to the policies and procedures in place to mitigate the risk of noncompliance with the requirements of the stated criteria. Explanation of disagreement with audit f...

Housing Choice Voucher Program ? Assistance Listing No. 14.871 We recommend that the City review its system of internal control related to the policies and procedures in place to mitigate the risk of noncompliance with the requirements of the stated criteria. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: PHA staff will review its current procedures for completing rent reasonableness requirements. As noted above, they will pursue options available under their contract with McCright, data feeds that could work within their existing software, and any other options in use at peer agencies to determine the best specific path forward to ensuring compliance with rent reasonableness requirements. PHA Supervisory Staff have also requested more detailed information on the audit results to help them further analyze the specific rent reasonableness cases where documentation and performance errors were made which led to this finding. This will help supervisory staff conduct a more thorough review and consider additional procedural changes. Also, as noted above the Finance Department suggests the PHA engage its software vendor or a peer agency to review functionality in the software to determine whether additional features could be employed in the software to prevent a HAP payment on a unit where rent reasonableness has not been completed yet. Name(s) of the contact person(s) responsible for corrective action: Steve Schaer Planned completion date for corrective action plan: 3/31/2024

View Audit 45206

Finding 50461 (2022-004)

Significant Deficiency 2022

City of West Allis

WI

HUD Housing Programs Significant Deficiency Internal Control / Segregation of Duties

Housing Choice Voucher Program ? Assistance Listing No. 14.871 Recommendation: We recommend that the City review its system of internal control related to the policies and procedures in place to mitigate the risk of noncompliance with the requirements of the annual HQS inspection. Explanation of dis...

Housing Choice Voucher Program ? Assistance Listing No. 14.871 Recommendation: We recommend that the City review its system of internal control related to the policies and procedures in place to mitigate the risk of noncompliance with the requirements of the annual HQS inspection. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: As mentioned previously, the PHA is currently finalizing a contract with a 3rd party contractor to perform the required HQS inspections. They anticipate that outsourcing the inspection work will lessen the workload on PHA staff to allow for program staff to focus their efforts on improving overall program compliance, including HQS inspection procedures. As the contract arrangement is rolled out staff will review procedures between inspectors and PHA staff to ensure proper communication and clear procedures are in place to ensure all required inspections are completed. The Housing Coordinator or other PHA staff should review summary reports of renewals processed each month and compare them to inspections processed each month to ensure all necessary inspections are completed. PHA Supervisory Staff have also requested more detailed information on the audit results to help them further analyze the specific cases that did not have a documented or completed annual inspection. This will help supervisory staff conduct a more thorough review and consider additional procedural changes. Additionally, the Finance Department suggests the PHA engage its software vendor or a peer agency to review functionality in the software to determine whether additional features could be employed in the software to prevent a HAP payment on a unit with an incomplete inspection, for example. Name(s) of the contact person(s) responsible for corrective action: Steve Schaer Planned completion date for corrective action plan: 3/31/2024

View Audit 45206

Finding 50460 (2022-003)

Significant Deficiency 2022

City of West Allis

WI

HUD Housing Programs Significant Deficiency Internal Control / Segregation of Duties

Housing Choice Voucher Program ? Assistance Listing No. 14.871 Recommendation: We recommend that the City review its system of internal control related to the policies and procedures in place to mitigate the risk of noncompliance with the requirements of the stated criteria. Explanation of disagreem...

Housing Choice Voucher Program ? Assistance Listing No. 14.871 Recommendation: We recommend that the City review its system of internal control related to the policies and procedures in place to mitigate the risk of noncompliance with the requirements of the stated criteria. Explanation of disagreement with audit finding: There is no disagreement with the audit finding Action taken in response to finding: PHA supervisory staff will review the detailed income verification procedures that are in place, including documentation procedures. Supervisory staff have also requested more detailed information on the audit results to help them review the specific instances that led to this finding so specific procedural changes can be considered and implemented. Staff understand that income verification is essential to ensuring that only eligible participants are provided HAP benefits. Results of the PHA?s internal procedural review will be submitted to the Finance Department for additional review to ensure proper procedural controls are in place. Name(s) of the contact person(s) responsible for corrective action: Steve Schaer Planned completion date for corrective action plan: 3/31/2024

View Audit 45206

Finding 50459 (2022-002)

Material Weakness 2022

City of West Allis

WI

HUD Housing Programs Material Weakness Internal Control / Segregation of Duties

Housing Choice Voucher Program ? Assistance Listing No. 14.871 Recommendation: We recommend that the City review its system of internal control related to the policies and procedures in place to mitigate the risk of noncompliance with the requirements of the stated criteria. Explanation of disagreem...

Housing Choice Voucher Program ? Assistance Listing No. 14.871 Recommendation: We recommend that the City review its system of internal control related to the policies and procedures in place to mitigate the risk of noncompliance with the requirements of the stated criteria. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: PHA staff noted that the current process of finding comparable data for rent reasonableness comparisons is challenging and obtaining accurate, up-todate data has been a struggle. As part of the RFP process for inspection services, staff noted that McCright offers a process that can assist in accessing data and making the rent reasonableness comparisons PHA staff will also pursue options available under its contract with McCright, data feeds that could work within its existing software, and any other options in use at peer agencies to determine the best specific path forward to ensuring compliance with rent reasonableness requirements. PHA Supervisory Staff have also requested more detailed information on the audit results to help them further analyze the specific rent reasonableness cases where documentation and performance errors were made which led to this finding. This will help supervisory staff conduct a more thorough review and consider additional procedural changes. Name(s) of the contact person(s) responsible for corrective action: Steve Schaer Planned completion date for corrective action plan: 3/31/2024

View Audit 45206

Finding 50458 (2022-001)

Material Weakness 2022

City of West Allis

WI

HUD Housing Programs Material Weakness Internal Control / Segregation of Duties

Housing Choice Voucher Program ? Assistance Listing No. 14.871 Recommendation: We recommend that the City review its system of internal control related to the policies and procedures in place to mitigate the risk of noncompliance with the requirements of HQS enforcement. Explanation of disagreement ...

Housing Choice Voucher Program ? Assistance Listing No. 14.871 Recommendation: We recommend that the City review its system of internal control related to the policies and procedures in place to mitigate the risk of noncompliance with the requirements of HQS enforcement. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: The PHA is currently finalizing a contract with a 3rd party contractor to perform the required HQS inspections. They anticipate that outsourcing the inspection work will lessen the workload on PHA staff to allow program staff to focus their efforts on improving overall program compliance, including HQS enforcement procedures. As the contract arrangement is rolled out staff will review procedures between inspectors and PHA staff to ensure proper communication and clear procedures are in place as they relate to enforcement actions. PHA staff also will implement a new standard procedure in which the Housing Coordinator will check a list of units with failed or incomplete inspection records against the payment batch report prior to sending the batch to Finance to issue the HAP payments. PHA Supervisory Staff have also requested more detailed information on the audit results to help them further analyze the 3 specific cases where customers were issued HAP payments despite a failed inspection. This will help supervisory staff conduct a more thorough review and consider additional procedural changes. Additionally, the Finance Department suggests the PHA engage its software vendor or a peer agency to review functionality in the software to determine whether additional features could be employed in the software to prevent a HAP payment on a unit with a failed inspection, for example. Name(s) of the contact person(s) responsible for corrective action: Steve Schaer Planned completion date for corrective action plan: 3/31/2024

View Audit 45206

Finding 50454 (2022-002)

Material Weakness 2022

Independence Community College

KS

Internal Control / Segregation of Duties Cash Management Reporting

Corrective Action Plan February 16, 2023 Cognizant or Oversight Agency for Audit Independence Community College respectfully submits the following corrective action plan for the year ended June 30, 2022. Name and address of independent public accounting firm: Jarred, Gilmore & Phillips, PA, P.O. Box...

Corrective Action Plan February 16, 2023 Cognizant or Oversight Agency for Audit Independence Community College respectfully submits the following corrective action plan for the year ended June 30, 2022. Name and address of independent public accounting firm: Jarred, Gilmore & Phillips, PA, P.O. Box 779, 1815 S Santa Fe, Chanute, Kansas 66720. Audit period: Year ended June 30, 2022. The findings from the February 16, 2023 schedule of findings and questioned costs are discussed below. The findings are numbered consistently with the numbers assigned in the schedule. Finding: 2022-001 ? Improper Classification of Transactions Condition: Reconciliations of most balance sheet accounts found transactions that were improperly classified and/or not recorded at all. These balance sheet account reconciliations resulted in material amounts of general ledger adjustments posted after year end and through the date of the audit report. Recommendation: Additional training for staff is needed in the area of financial statement preparation and use of the general ledger software. Views of responsible officials: We are in agreement and the proper training will be added. Policies will also be updated to include additional detail & steps to assure that misclassifications can be traced and reclassified in a timely manner, along with assuring reconciliation of all balance sheet accounts can properly occur monthly. Finding: 2022-002 ? Reporting Condition: During our testing of financial reports to the grantor, it was determined a breakdown in internal controls occurred, because staff did not keep support for amounts reported to grantors from the accounting system. Staff tried to re-create the reports withthe accounting system and amounts were materially different than originally reported to the grantor. Recommendation: Additional training for staff is needed in the area of internal control over reporting. All reports filed should be thoroughly reviewed and approved before issuance. This review would include tying amounts reported to attached support from the accounting system. Views of responsible officials: We are in agreement and policies will be updated to include the proper internal controls are in place. It will also be required that all supporting GL documentation be included for all reporting aspects for Grants from the draws to annual reports. If the Oversight Agency for Audit has questions regarding this plan, please call Jonathan Sadhoo, Vice President for Administration & Finance, at (620) 332-5412. Sincerely, Independence Community College Independence Community College -

View Audit 48294

Finding 50436 (2022-002)

Significant Deficiency 2022

Enrichment Services Program, Inc.

GA

Reporting Internal Control / Segregation of Duties Allowable Costs / Cost Principles § 200.302 § 200.327 § 200.328 § 200.510

INTERNAL CONTROLS OVER FINANCIAL STATEMENT PREPARATION, GRANT CLOSE OUT AND COMPLIANCE WITH RELATED PROVISIONS OF GRANTS AND CONTRACTS SHOULD BE IMPROVED HEAD START AND EARLY HEAD START PROGRAMS LOW-INCOME HOME ENERGY and WATER ASSISTANCE PROGRAM CFDA # 93.600, 93.568 and 93.499 (Questioned Costs -...

INTERNAL CONTROLS OVER FINANCIAL STATEMENT PREPARATION, GRANT CLOSE OUT AND COMPLIANCE WITH RELATED PROVISIONS OF GRANTS AND CONTRACTS SHOULD BE IMPROVED HEAD START AND EARLY HEAD START PROGRAMS LOW-INCOME HOME ENERGY and WATER ASSISTANCE PROGRAM CFDA # 93.600, 93.568 and 93.499 (Questioned Costs - Undetermined) Management is in the process of assessing the organizational structure and capacity to provide adequate financial reporting. With Board review and approval of the agency?s financial funding sources, the agency will hire additional fiscal clerk to further support financial requirements and segregation of duties to ensure adequate internal controls are fully implemented. The CFO will have the overall responsibility of properly reconciling and closing out the accounting system and grant activity each month in an efficient and timely manner to eliminate the risk of significant errors occurring. Budget-to-actual schedules will be an integral part of the grant accountant analyst?s basic responsibilities. The fiscal policies and procedures will be updated with the enhancements implemented within the fiscal department. Staff will be trained on revised policies and procedures and uniform guidance regulations. The new automated financial system, will support financial reporting to meet GAAP requirements and to provide informative reports for Board and Management. All enhancements will be implemented by December 31, 2023.

View Audit 43073

Finding 50426 (2022-001)

Material Weakness 2022

Boston Mountain Rural Health Center, Inc.

AR

Questioned Costs Allowable Costs / Cost Principles Reporting

Contact Name: Becky Blair, CFO Contact Phone Number: 870-448-5733 Audit Period Ending: December 31, 2022 Audit Firm: FORVIS, LLP Federal Program: Provider Relief Fund (PRF) and American Rescue Plan (ARP) Rural Distribution, Assistance Listing No. 93.498 Federal Agency: U.S. Department of Healt...

Contact Name: Becky Blair, CFO Contact Phone Number: 870-448-5733 Audit Period Ending: December 31, 2022 Audit Firm: FORVIS, LLP Federal Program: Provider Relief Fund (PRF) and American Rescue Plan (ARP) Rural Distribution, Assistance Listing No. 93.498 Federal Agency: U.S. Department of Health and Human Services Payment Received Period: Period 4, July 1, 2021 to December 31, 2021 Finding Number: 2022-001 Statement Condition: The Organization incorrectly reported all period four provider relief payments were applied to unreimbursed expenses attributable to COVID-19 within the HHS Provider Relief Fund (PRF) portal. Total expenditures reported had not been incurred by the Organization. Response: Management concurs with the finding and recommendation and will implement controls to ensure all reporting is reviewed for accuracy.

View Audit 43428 Questioned Costs: $1

Finding 50424 (2022-003)

Material Weakness 2022

Lyons Fire District

NY

Internal Control / Segregation of Duties Reporting

2022-003 Segregation of Duties Auditors? Recommendation: The Fire District should continue to obtain involvement from the Board of Fire Commissioners in reviewing monthly financial reports and approving expenditures. In addition, the Fire District should consider having a Board member prepare or rev...

2022-003 Segregation of Duties Auditors? Recommendation: The Fire District should continue to obtain involvement from the Board of Fire Commissioners in reviewing monthly financial reports and approving expenditures. In addition, the Fire District should consider having a Board member prepare or review bank reconciliations for each of its bank accounts. Fire District Response: Meghan Nagel, Treasurer, and Brian Engels, Board chairman, understand the importance of having strong segregation of duties and will attempt to separate certain responsibilities as outline above for the year ending December 31, 2023, but does prove difficult in a small district with minimal employees. The Fire District will continue to have the Board review monthly reports and approve expenditures. Further, the Fire District will continue to print the operating account reconciliation and will have that reviewed by a board member. The Fire District will start printing the reconciliation for all other accounts for them to be reviewed by a board member, as well continuing to print each bank statement to be reviewed.

View Audit 43532

Finding 50421 (2022-003)

Material Weakness 2022

Housing Authority of the City and County of San Francisco

CA

Questioned Costs HUD Housing Programs Material Weakness

Reference Number: 2022-003 Federal Agency: U.S. Department of Housing and Urban Development Federal Program Title: Section 8 Housing Choice Vouchers Federal Catalog Number: 14.871 Federal Grant Number: Not Applicable Category of Finding: Special Tests and Provisions (Housing Quality Standards Inspec...

Reference Number: 2022-003 Federal Agency: U.S. Department of Housing and Urban Development Federal Program Title: Section 8 Housing Choice Vouchers Federal Catalog Number: 14.871 Federal Grant Number: Not Applicable Category of Finding: Special Tests and Provisions (Housing Quality Standards Inspections) Classification of Finding: Material Weakness in Internal Control over Compliance Material Noncompliance Authority?s Response & Actions Taken The Authority has made considerable progress in addressing the backlog of annual inspections. Since outsourcing the programmatic functions of the HCV program to a third-party contractor. The Authority acknowledges that more progress in this area is required and continues to work diligently with the third-party HCV contractor to ensure this occurs. The Authority will continue to reinforce its current oversight process to ensure HQS inspections are performed in accordance with HUD requirements. The Authority adopted a series of HUD waivers following the COVID-19 pandemic, one of which HQS-5, under Notice PIH 2021-14, allowing the Authority to waive the completion of HQS Inspections through December 31, 2021. The Authority resumed the completion of HQS Inspections and was required by HUD to complete all delayed inspections by December 31, 2022. During fiscal year 2022, the Authority had inspections not completed in a timely manner, however, was not out of compliance as waivers were in place. The Authority is committed to ensuring all units under contract are beyond safe, sanitary, and decent in accordance with HQS requirements and the Authority's Administrative Plan. The Authority uses the Emphasys Elite software to check against HUD's PIH Information Center (PIC) system to identify units with outstanding Housing Quality Standards (HQS) Inspections. The Authority has scheduled HQS Inspections for the units identified to be out of compliance. Some key strategies and controls in place are as follows: ? Review the report of outstanding HQS Inspections on a weekly basis. ? Schedule outstanding HQS Inspections in order of aging date. ? Conduct HQS Inspections prior to anniversary date of previously completed inspection. ? Running a monthly report of failed inspections and comparing them with future scheduled inspections to ensure a timely scheduling of the second inspection. ? Running a monthly report to identify units with two failed inspections to ensure all have been abated correctly. ? Implement weekly monitoring to ensure all units are properly abated and lifted timely when units pass inspections and contracts are properly terminated after being in abatement for 180 days without a cure. The Authority will continue to execute these sound procedures to prevent further findings related to inspections. The Authority has implemented a robust internal audit program starting fiscal year 2021- 22 and will continue to select annually a statistically significant random sample of actions completed by the HCV contractor to ensure that all actions are in compliance and files contain all required documentation. Although the HCV program subscribes to a quality control process, the Authority's internal audit program provides a method to reasonably understand the condition of the program as the Authority fully understands its responsibility to ensure the program complies to all applicable laws and regulations governing HCV operations. The HCV program is a part of our continuous monitoring process. Anticipated Implementation Date September 30, 2023 Name(s) and Title(s) of Contact Person(s) Responsible for Correction Action HCV Contractor Kendra Crawford, Director of Housing Operations

View Audit 43529 Questioned Costs: $1

Corrective Action Plans

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