Corrective Action Plans

Finding 50141 (2022-004)

Material Weakness 2022

CA

Subrecipient Monitoring Material Weakness Reporting

Corrective Action Plan and Views of Responsible Officials The District will review its records and verify alignment with reports submitted to the Los Angeles COE.

View Audit 42607

Finding 50136 (2022-001)

Material Weakness 2022

Global Foundation for Ocean Exploration

CT

Internal Control / Segregation of Duties

Recommendation: All invoice approvals should be in writing and the documentation kept with the invoice. Planned Corrective Action: Management agrees with the findings and will review personnel needs with the objective of being able to better support the office staff and perform monitoring activit...

Recommendation: All invoice approvals should be in writing and the documentation kept with the invoice. Planned Corrective Action: Management agrees with the findings and will review personnel needs with the objective of being able to better support the office staff and perform monitoring activities.

View Audit 43496

Finding 50114 (2022-002)

Material Weakness 2022

Harvest Regional Food Bank, Inc.

AR

Special Tests & Provisions Material Weakness Reporting

Finding 2022-002 Harvest Regional Food Bank, Inc. agrees with Finding 2022-002. Corrective Action Plan: All USDA/CSFP food received and entered into the SMF QuickBooks system by the Operations Manager will be verified by a secondary employee. All USDA/CSFP food distributed and invoiced in the SMF Q...

Finding 2022-002 Harvest Regional Food Bank, Inc. agrees with Finding 2022-002. Corrective Action Plan: All USDA/CSFP food received and entered into the SMF QuickBooks system by the Operations Manager will be verified by a secondary employee. All USDA/CSFP food distributed and invoiced in the SMF QuickBooks system by the Operations Manager will be verified by a secondary employee. All USDA/CSFP food receipt submissions to Arkansas Department of Human Services (DHS) will be verified by a Harvest employee to ensure Arkansas DHS files are updated with Harvest USDA/CSFP receipts. Any discrepancies will be discussed and corrected as necessary. Harvest will perform an inventory count quarterly and adjust inventory amounts as needed in the SMF QuickBooks system. Management Contact: Camille Wrinkle Phone Number: 870-774-1398 Completion by Date: 8/31/2023

View Audit 43634

Finding 50107 (2022-007)

Material Weakness 2022

North Judson -- San Pierre School Corporation

IN

Internal Control / Segregation of Duties Material Weakness Reporting § 200.302 § 200.303 § 200.328

FINDING 2022-007 Subject: COVID-19 ? Education Stabilization Fund ? Reporting Federal Agency: Department of Education Federal Program: COVID-19 ? Education Stabilization Fund Assistance Listing Number: 84.425D Federal Award Numbers and Years (or Other Identifying Numbers): S425D200013, S425U200013...

FINDING 2022-007 Subject: COVID-19 ? Education Stabilization Fund ? Reporting Federal Agency: Department of Education Federal Program: COVID-19 ? Education Stabilization Fund Assistance Listing Number: 84.425D Federal Award Numbers and Years (or Other Identifying Numbers): S425D200013, S425U200013 Pass-Through Entity: Indiana Department of Education Compliance Requirement: Reporting Audit Finding: Material Weakness Condition: An effective internal control system was not in place at the School Corporation in order to ensure compliance with requirements related to the grant agreement and the Reporting compliance requirements. Context: The School Corporation was required to submit two Annual Data Reports to the Indiana Department of Education (IDOE) to meet federal reporting requirements for ESSER grant awards. The first report was for the period of March 13, 2020 to September 30, 2020 and was due by January 21, 2021. The second report was for the period of October 1, 2020 to June 30, 2021 and was due by May 13, 2022. The amounts reported as expended on the second report did not agree to the underlying expenditure records of the School Corporation. Per discussion with the Treasurer, the amounts reported on the second report were the appropriated amounts, not the actual amounts expended during the period. Therefore, the amounts on the report were overstated by approximately 25% for ESSER I and 280% for ESSER II compared to the correct amounts on the School Corporation?s records. Additionally, for both reports that were submitted, there was no documented review by someone other than the preparer of the report to ensure the information submitted was complete and accurate. Views of Responsible Officials and Planned Corrective Actions: We concur with the finding. Description of Corrective Action Plan: The NJ-SP School Corporation will implement effective internal controls to oversee that the federal grant information prepared and submitted is accurate and reviewed. This will be done in order to detect and correct errors that may be entered prior to submission. This will be done by having an employee prepare the Annual Data Report information while another employee reviews and approves the information before submitting. These controls will be implemented by July 1, 2023. Responsible Party and Timeline for Completion: Dalton C. Tunis ? Corporation Business Manager/Treasurer Anticipated Completion Date: July 1, 2023

View Audit 43779

Finding 50093 (2022-003)

Material Weakness 2022

North Daviess Community Schools

IN

Subrecipient Monitoring Material Weakness Reporting § 200.302 § 200.328

FINDING 2022-003 Information on the federal program: Subject: Education Stabilization Fund - Annual Data Report Federal Agency: Department of Education Federal Program: COVID-19 - Education Stabilization Fund Assistance Listing Number: 84.425C, 84.425D, 84.425U Pass-Through Entity: Indiana Dep...

FINDING 2022-003 Information on the federal program: Subject: Education Stabilization Fund - Annual Data Report Federal Agency: Department of Education Federal Program: COVID-19 - Education Stabilization Fund Assistance Listing Number: 84.425C, 84.425D, 84.425U Pass-Through Entity: Indiana Department of Education Compliance Requirement: Reporting Audit Finding: Material Weakness Condition: The School Corporation did not have a documented review control in place to ensure the annual data report was reviewed by someone other than the preparer and that the report was submitted timely. Context: The Annual Data Report for the period of October 1, 2020 to June 30, 2021 was due to the Indiana Department of Education (IDOE) by May 13, 2022. The School Corporation submitted the report on May 16, 2022. In addition, there was no documented review by someone other than the preparer of the report to ensure the information submitted was complete and accurate. Views of Responsible Officials and Planned Corrective Actions: Management agrees with the finding and will take the following corrective action. Dr. Barry Stone, Director of Curriculum will prepare the Annual Data Report in a timely matter and the reports will be reviewed by Mrs. Berry, Superintendent and then signed off before submitting the report. Responsible party and timeline for completion: Federal regulation requires name and title of person overseeing corrective action plan and anticipated completion date. Dr. Barry Stone, Director of Curriculum will compile the report and Mrs. Berry, Superintendent will approve and sign off when the report is due.

View Audit 43321

Finding 50084 (2022-002)

Material Weakness 2022

North Vermillion Community School Corporation

IN

Subrecipient Monitoring Matching / Level of Effort / Earmarking Internal Control / Segregation of Duties § 200.302 § 200.303 § 200.328 § 200.329 § 200.334

FINDING 2020-002 Contact Person Responsible for Corrective Action: Shelly Harrison, Corporation Treasurer Contact Phone Number: 765-492-5102 Views of Responsible Official: We concur to the findings; however, while completing the ESSER Reports, some formatting errors of the provided spreadsheet cr...

FINDING 2020-002 Contact Person Responsible for Corrective Action: Shelly Harrison, Corporation Treasurer Contact Phone Number: 765-492-5102 Views of Responsible Official: We concur to the findings; however, while completing the ESSER Reports, some formatting errors of the provided spreadsheet created some questions by the North Vermillion officials prompting a clarification email to the DOE. Since the formatting errors were not addressed and all completed boxes on the North Vermillion ESSER Report spreadsheet turned green (indicating the correct amounts on the spreadsheet), the North Vermillion officials felt the ESSER report submitted was correct. Description of Corrective Action Plan: To correct the internal control issue, the Superintendent and Corporation Treasurer will work independently as well as collaboratively on the ESSER Reports. Prior to submitting any future report, the corporation officials will document their work by signing off and dating the report prior to submission to the DOE. To rectify the incorrect dollar amount on the Yearly ESSER Report Spreadsheet, the corporation treasurer and superintendent will work collaboratively to correct the amounts on either the ESSER I Year End Report and the ESSER II Year 2 and/or Year End Report. Anticipated Completion Date: Both the Internal Control and ESSER I corrective actions have been corrected, with the ESSER I Final Expenditure Report being completed and signed off on. The ESSER II corrective actions will be completed on the upcoming ESSER III Year End Report when that report is due.

View Audit 43320

Finding 50076 (2022-003)

Material Weakness 2022

Metropolitan School District of Shakamak

IN

Subrecipient Monitoring Matching / Level of Effort / Earmarking Internal Control / Segregation of Duties § 200.302 § 200.303 § 200.328 § 200.329 § 200.334

FINDING 2022-003 Contact Person Responsible for Corrective Action: Jeff Gambill, Superintendent; Jennifer Barcus, Corporation Treasurer. Contact Phone Number: 812-665-3550 Views of Responsible Official: We concur with the finding. Description of Corrective Action Plan: The Corporation Treasurer wil...

FINDING 2022-003 Contact Person Responsible for Corrective Action: Jeff Gambill, Superintendent; Jennifer Barcus, Corporation Treasurer. Contact Phone Number: 812-665-3550 Views of Responsible Official: We concur with the finding. Description of Corrective Action Plan: The Corporation Treasurer will begin reviewing all annual data reports completed by the Superintendent, prior to submission of the reports, to verify that all expenditures are reported in the correct reporting period. Anticipated Completion Date: Immediate review will begin of all annual data reports.

View Audit 43315

Finding 50072 (2022-005)

Significant Deficiency 2022

Frontier School Corporation

IN

Internal Control / Segregation of Duties Subrecipient Monitoring Reporting § 200.303

FINDING 2022-005 Contact Person Responsible for Corrective Action: Cortney Parrish, Corporation Treasurer Contact Phone Number: 765-240-2346 Views of Responsible Official: We agree with the finding Description of Corrective Action Plan: The School Corporation plans to have the Jr/Sr. High Sch...

FINDING 2022-005 Contact Person Responsible for Corrective Action: Cortney Parrish, Corporation Treasurer Contact Phone Number: 765-240-2346 Views of Responsible Official: We agree with the finding Description of Corrective Action Plan: The School Corporation plans to have the Jr/Sr. High School ECA Treasurer review and approve all financial data collection reports for grants prior to submission. Anticipated Completion Date: Immediately

View Audit 43314

Finding 50065 (2022-004)

Material Weakness 2022

Frontier School Corporation

IN

School Nutrition Programs Internal Control / Segregation of Duties Cash Management § 200.303

Finding 2022-004 Contact Person Responsible for Corrective Action: Rhonda Morgan, FSD Contact Phone Number: 765-240-2386 Views of Responsible Official: We concur with the finding. Description of Corrective Action Plan: Frontier School Corporation will have the Elementary and Jr/Sr High Kitchen ...

Finding 2022-004 Contact Person Responsible for Corrective Action: Rhonda Morgan, FSD Contact Phone Number: 765-240-2386 Views of Responsible Official: We concur with the finding. Description of Corrective Action Plan: Frontier School Corporation will have the Elementary and Jr/Sr High Kitchen Managers pull the monthly reports from eTrition for breakfast and lunch meals served for their respective schools. A blank Monthly Worksheet will be provided to each Kitchen Manager to be filled out using the data report from eTrition, the foodservice software. The reports and worksheets from each school will be given to the Food Service Director. The FSD will have independently prepared a complete report using data pulled from eTrition including both schools. The FSD will then compare the elementary Kitchen Manager?s report with the Master Report. The FSD will then compare the Jr/Sr High Kitchen Manager?s report with the Master Report. The Master Report will then be presented to each Kitchen Manager for their approval after checking to see that the data matches, initialing and dating the Master Report. The Food Service Director will then submit the Monthly Claims Report to CNPweb. The Corporation Treasurer will also have access to all data collected to ensure proper reportig. All data and internal checks will be filed in the Food Service Director?s office.. Anticipated Completion Date: The CAP will be in place by March 24, 2023 in preparation for the Monthly Claim of March 2023 to be the first month these internal controls will be implemented.

View Audit 43314

Finding 50047 (2022-002)

Material Weakness 2022

Glenwood Community School District

IA

Internal Control / Segregation of Duties

The District did identify the wage rate falsification matter in a timely manner. We proactively worked with legal counsel, the Iowa Auditor of State, external auditors, the Glenwood Board of Education and our software vendor to appropriately report and resolve the situation. We have requested our sc...

The District did identify the wage rate falsification matter in a timely manner. We proactively worked with legal counsel, the Iowa Auditor of State, external auditors, the Glenwood Board of Education and our software vendor to appropriately report and resolve the situation. We have requested our school accounting system vendor, Software Unlimited, to develop a wage rate change report that can be regularly reviewed. The requested report is in process of development and will be included in an upcoming software maintenance release. We have received and reviewed a pay rate change query report from Software Unlimited for the months of January 2022 to April 2022 and no exceptions were discovered. Appropriate review procedures have been established to regularly review this report in the future. We have both contacted the insurance company and legal counsel both of whom indicated that this is a School District decision that does not need approval by either of them. We will also work on revising procedures to include documentation of administrative approval of employee time cards and we do have procedures for the Board President to sign all contracts entered into by the District that comply with Chapter 291 .1 of the Code of Iowa. We have enhanced internal procedures so that procedures are in place to allow for confirmation of all required payroll filings and to ensure that the filings are timely. Our procedures now include a requirement that all W-2 filings are confirmed by two individuals at the District. In addition, we have contacted the District insurance company and informed them of the situation so that a claim can be filed if needed to cover any penalties associated with the late W-2 filing.

View Audit 53484

Finding 50046 (2022-001)

Material Weakness 2022

Glenwood Community School District

IA

Internal Control / Segregation of Duties

Compensating controls to address the segregation of duties internal control deficiency due to limited staff size have been established in these areas to obtain the maximum internal control possible under current circumstances. The District continuously reviews internal controls for opportunities to ...

Compensating controls to address the segregation of duties internal control deficiency due to limited staff size have been established in these areas to obtain the maximum internal control possible under current circumstances. The District continuously reviews internal controls for opportunities to further enhance the internal control environment.

View Audit 53484

Finding 50027 (2022-001)

Significant Deficiency 2022

Paterson Task Force for Community Action Inc.

NJ

Internal Control / Segregation of Duties

Action Taken: The documentation of posting vendors? invoices is the bookkeeper?s responsibility. During the course of the fiscal year, the bookkeeper position was vacant for a period of time. A new bookkeeper, who is considered very competent, has been hired. Management believes that this matter ...

Action Taken: The documentation of posting vendors? invoices is the bookkeeper?s responsibility. During the course of the fiscal year, the bookkeeper position was vacant for a period of time. A new bookkeeper, who is considered very competent, has been hired. Management believes that this matter has already been addressed with the hiring of the competent bookkeeper. Compliance with this control will be that of the Organization?s bookkeeper, Ms. Charity Sims, and overseen by the comptroller, Mr. Darien Allen.

View Audit 51459

Finding 50007 (2022-004)

Significant Deficiency 2022

Palmdale Aerospace Academy

CA

Procurement, Suspension & Debarment Subrecipient Monitoring Allowable Costs / Cost Principles

All accounting and business transactions procedures for FY 21/22 were completed by the Academy?s back-office provider. This relationship caused reporting conflicts between the academy and outside agency. Effective July 2022, all accounting and business transactions have been brought in-house and ar...

All accounting and business transactions procedures for FY 21/22 were completed by the Academy?s back-office provider. This relationship caused reporting conflicts between the academy and outside agency. Effective July 2022, all accounting and business transactions have been brought in-house and are not processed by Academy staff. By bringing the financial process in house, this will increase the strength of the internal controls within the Academy. The financials are monitored and processed by only one entity instead of between the back-office staff and Academy staff. There was a disconnect between the Academy and back-office staff regarding the preparation of the calculation of Every Student Succeeds Act Maintenance of Effort. The Academy will continue to have internal staff work along with the Director of Business Services and Finance to record and report expenses related to Title I, Part A quarterly. The Director of Business Services and Finance will report quarterly to the Ed Service department along with the Executive Director/Superintendent the current standing and projection of the MOE. Each quarter there will be a discussion on the additional actions that may need to be taken to make sure MOE will be met at end of each fiscal year.

View Audit 48315

Finding 50003 (2022-002)

Significant Deficiency 2022

Palmdale Aerospace Academy

CA

Allowable Costs / Cost Principles Internal Control / Segregation of Duties Subrecipient Monitoring

All accounting and business transactions procedures for FY 21/22 were completed by the Academy?s back office provider. This relationship caused reporting conflicts between the academy and outside agency. Effective July 2022, all accounting and business transactions have been brought in-house and ar...

All accounting and business transactions procedures for FY 21/22 were completed by the Academy?s back office provider. This relationship caused reporting conflicts between the academy and outside agency. Effective July 2022, all accounting and business transactions have been brought in-house and are not processed by Academy staff. By bringing the financial process in house, this will increase the strength of the internal controls within the Academy. The financials are monitored and processed by only one entity instead of between the back office staff and Academy staff. The Academy has created an internal Personal Action Request (PAR) form. This form identifies the employee, position and funding source or sources for each employee. On a quarterly basis all positions will be reviewed and compared to the most current PAR. Any adjustments, changes, reallocations, etc. will be made at each review period.

View Audit 48315

Finding 49997 (2022-001)

Significant Deficiency 2022

Excela Health and Subsidiaries

PA

Internal Control / Segregation of Duties Reporting Significant Deficiency § 200.303

Finding 2022-001 Condition: The Organization did not complete the PRF reporting in accordance with the U.S. Department of Health and Human Services guidance. The Organization inadvertently excluded certain value-based incentive payments in its reporting of total revenue/net charges from patient care...

Finding 2022-001 Condition: The Organization did not complete the PRF reporting in accordance with the U.S. Department of Health and Human Services guidance. The Organization inadvertently excluded certain value-based incentive payments in its reporting of total revenue/net charges from patient care for all quarters presented. The adjustments needed within the PRF report to correct the errors decreased year over year lost revenues from $44,218,904 to $43,347,174 on total distributions of PRF funding of $19,837,251. Corrective Action Plan: Corrective Action Planned: Management has updated its policies and procedures and anticipates updating this information with its Period 4 reporting. The Period 4 reporting portal opens January 1, 2023 and closes on March 31, 2023. Name(s) of Contact Person(s) Responsible for Corrective Action: Allison Lutz, Vice President, Finance & Business Intelligence, 724-832-4016, alutz@excelahealth.org Anticipated Completion Date: Will be corrected by Reporting Period 4?s submission due date of March 31, 2023.

View Audit 43607

Finding 49996 (2022-002)

Material Weakness 2022

1260 Housing Development Corporation

PA

HUD Housing Programs Matching / Level of Effort / Earmarking Internal Control / Segregation of Duties

VIEW OF RESPONSIBLE OFFICIALS AND PLANNED CORRECTIVE ACTION: IT IS THE GOAL OF THE ORGANIZATION TO MAINTAIN COMPLIANCE WITH REGULATORY REQUIREMENTS. AS OF REPORT ISSUANCE, THE ORGANIZATION ACHIEVED 51% INCOME CERTIFIED AT MID-CITY AND CONTINUING RECERTIFICATION EFFORTS AT APPLETREE. WHERE HARDSHIPS ...

VIEW OF RESPONSIBLE OFFICIALS AND PLANNED CORRECTIVE ACTION: IT IS THE GOAL OF THE ORGANIZATION TO MAINTAIN COMPLIANCE WITH REGULATORY REQUIREMENTS. AS OF REPORT ISSUANCE, THE ORGANIZATION ACHIEVED 51% INCOME CERTIFIED AT MID-CITY AND CONTINUING RECERTIFICATION EFFORTS AT APPLETREE. WHERE HARDSHIPS ARE ENCOUNTERED THE ORGANIZATION REMAINS IN ONGOING COMMUNICATIONS WITH THE RESPECTIVE REGULATORY AGENCIES TO PROMOTE TRANSPARENCY AND MITIGATE RISK OF LOSS IN FUNDING OR DEFAULT.

View Audit 45835

Finding 49973 (2022-002)

Material Weakness 2022

Snohomish School District No. 201

WA

Subrecipient Monitoring Allowable Costs / Cost Principles Material Weakness

See Corrective Action Plan for chart/table.

View Audit 49702

Finding 49970 (2022-003)

Significant Deficiency 2022

Moore Center Service, Inc.

NH

Allowable Costs / Cost Principles Eligibility Period of Performance

Finding 2022-003: COVID-19 Provider Relief Fund and American Rescue Plan (ARP) Rural Distribution Plan to Correct: If we are to receive federal funding of this kind in the future we will insure the validity of any expense chosen after verifying against the standards set by the fund guidelines before...

Finding 2022-003: COVID-19 Provider Relief Fund and American Rescue Plan (ARP) Rural Distribution Plan to Correct: If we are to receive federal funding of this kind in the future we will insure the validity of any expense chosen after verifying against the standards set by the fund guidelines before expenditures are made or any reporting is completed. Internal staff will also review work papers in detail to double check data integrity to ensure reporting is accurate. We will work with our CPA firm or other appropriate consultant if we have any questions surrounding expenses chosen. Responsible Party: Denise Doucette, CFO/VP Estimated Completion: Ongoing.

View Audit 47452

Finding 49968 (2022-001)

Material Weakness 2022

C.s. Lewis Academy

UT

Material Weakness Reporting Matching / Level of Effort / Earmarking

Finding 2022-001 Finding Summary: C.S. Lewis Academy is required to submit annual financial statements and the proposed budget to the USDA. These items were not provided to the USDA by June 30, 2022. Responsible Individuals: Diane Nelson, Executive Director and Nate Adams, Business Manager Co...

Finding 2022-001 Finding Summary: C.S. Lewis Academy is required to submit annual financial statements and the proposed budget to the USDA. These items were not provided to the USDA by June 30, 2022. Responsible Individuals: Diane Nelson, Executive Director and Nate Adams, Business Manager Corrective Action Plan: Management will provide a copy of the audited financial statements and copy of the proposed budget to USDA annually. Anticipated Completion Date: Ongoing Anticipated Completion Date: Management will ensure all necessary corrective action plan items are in place by the end of 2022.

View Audit 43577

Finding 49959 (2022-006)

Material Weakness 2022

Maricopa County Regional School District No. 509

AZ

Questioned Costs Equipment & Real Property Management Internal Control / Segregation of Duties

Type of Finding: Noncompliance, material weakness Repeat Finding: No Condition/Context: The District spent $52,380 of federal funding on equipment and services related to the Maricopa County Juvenile Detention Center. These expenditures were not authorized within the budget for the related grant as ...

Type of Finding: Noncompliance, material weakness Repeat Finding: No Condition/Context: The District spent $52,380 of federal funding on equipment and services related to the Maricopa County Juvenile Detention Center. These expenditures were not authorized within the budget for the related grant as the Juvenile Detention Center is a separate entity from the District. Action planned in response to finding: The District will establish proper internal controls over processing expenditures to ensure that only those expenditures that are allowed and approved within the budget be spent out of grant funds. Planned completion date for corrective action plan: For the period ending June 30, 2023. Name of the contact person responsible for corrective action: Adrian De Alba, Assistant Superintendent of Instruction and Student Services and Bonnie Romo, Financial Services Coordinator.

View Audit 47934 Questioned Costs: $1

Finding 49926 (2022-001)

Significant Deficiency 2022

Home Opportunities Made Easy, Inc.

IA

Reporting Internal Control / Segregation of Duties

Condition: During our audit, material adjustments were needed to correct the recording of various revenue accounts related to government grants and related receivables. Recommendation: We recommend management perform monthly reconciliations of the general ledger accounts, both in general and to the...

Condition: During our audit, material adjustments were needed to correct the recording of various revenue accounts related to government grants and related receivables. Recommendation: We recommend management perform monthly reconciliations of the general ledger accounts, both in general and to the governmental grant reporting forms. Current Status: After completion of the prior year audit, Management developed and implemented new procedures for the monthly reconciliation process that reconciles the general ledger to the government grant reporting forms. This finding has been repeated as 2022-001. In addition to continuing the reconciliation processes previously implemented, the organization is in the process of transitioning controller responsibilities to a third-party financial services firm.

View Audit 42943

Finding 49915 (2022-001)

Material Weakness 2022

Wellpinit School District No. 49

WA

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

The District will ensure compliance with wage rate requirements going forward. The District will ensure that contracts have the language in it going forward.

View Audit 42248

Finding 49912 (2022-002)

Material Weakness 2022

City of Port Huron, Michigan

MI

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

Finding Number: 2022-002 Condition: We noted during testing that the City had no procedure in place to verify contractors are not suspended, debarred, or otherwise excluded pursuant to 2 CFR Section 180.300 prior to entering into contracts with award funds. Planned Corrective Action: Procedures have...

Finding Number: 2022-002 Condition: We noted during testing that the City had no procedure in place to verify contractors are not suspended, debarred, or otherwise excluded pursuant to 2 CFR Section 180.300 prior to entering into contracts with award funds. Planned Corrective Action: Procedures have already been put into place to ensure that each new contractor is not on the Federal list of suspended and/or debarred contractors. Furthermore, all vendors previously paid have been searched for in the Federal list and none were suspended and/or debarred. Contact person responsible for corrective action: Cynthia Cutright Anticipated Completion Date: 09/23/2022

View Audit 42066

Finding 49902 (2022-003)

Significant Deficiency 2022

Midas Council of Governments

IA

Internal Control / Segregation of Duties

Finding Corrective Action Planned Responsible Official Completion Date 2022-001 We have taken steps to include as many office personnel as possible in segregating incompatible duties. We have added a full-time fiscal officer during the year ended June 30, 2022 in order to address this finding. Shi...

Finding Corrective Action Planned Responsible Official Completion Date 2022-001 We have taken steps to include as many office personnel as possible in segregating incompatible duties. We have added a full-time fiscal officer during the year ended June 30, 2022 in order to address this finding. Shirley Helgevold ? Executive Director 5/31/23 2022-002 and 2022-003 We have hired an experienced full time fiscal officer and provided professional training so as to address this finding moving forward. Shiley Helgevold ? Executive Director 5/31/23

View Audit 43086

Finding 49897 (2022-002)

Significant Deficiency 2022

Housing Authority of the City of Arlington, Texas

TX

Questioned Costs HUD Housing Programs Eligibility

SIGNIFICANT DEFICIENCY 2022-001 Financial Close Process Recommendation: The Authority should re-evaluate its financial reporting system: reviewing the general ledger mapping and close processes. This determines whether additional controls over the preparation of the final trial balances and related ...

SIGNIFICANT DEFICIENCY 2022-001 Financial Close Process Recommendation: The Authority should re-evaluate its financial reporting system: reviewing the general ledger mapping and close processes. This determines whether additional controls over the preparation of the final trial balances and related schedules can be implemented to provide reasonable assurance that financial statements are prepared in accordance with U.S. GAAP and HUD Public Housing Authority accounting briefs. We recommend the Authority to review its current procedures for reconciliations and year end close procedures and evaluate the need for additional review to ensure accurate reporting. Explanation of disagreement with audit finding: While management agrees that improvements are needed, related to the newly implemented financial software the City of Arlington adopted; including mapping of the general ledger and with coordination with the Federal Data Schedule (FDS), management believes actual internal controls are effective as demonstrated by previous audits. The AHA should have until 6/30/2023 to complete the audit. However, because AHA is a component unit of the City, the timeline to complete the audit is much earlier, reducing the time available to complete the corrections needed to account for the new financial software. Action planned in response to finding: Management and the City of Arlington are working with consultants to improve general ledger mapping and crosswalks to the FDS. Name(s) of the contact person(s) responsible for corrective action: Mindy Cochran and Borhan Uddin Planned completion date for corrective action plan: June 30, 2023 2022~002 Housing Voucher Cluster-Assistance Listing No. 14.871/14.879 Recommendation: We recommend that the Authority reviews its internal controls over obtaining and maintaining income, expense tenant file documentation, and reviewing the calculation to ensure compliance with eligibility requirements. Explanation of disagreement with audit finding: There is no disagreement with this finding. However, management maintains that internal controls are effective noting that errors are found and corrected through the internal control processes. Human errors do occur, and internal controls cannot cover the thousands of transactions processed annually. AHA's SEMAP scores consistently recognize AHA as a high performer, scoring all points in indicators 3 and 10 which monitor correct calculations for adjusted income and correct tenant rent calculations. AHA does intend to increase internal audits through the addition of a dedicated compliance staff member. Action planned in response to finding: Both errors have been corrected. The total dollar amount of rental assistance provided was $162 for both errors. AHA is in the process of hiring for additional compliance reviews. Name(s) of the contact person(s) responsible for corrective action: Mindy Cochran Planned completion date for corrective action plan: Corrections have been made for the two files indicated, and hiring for compliance is expected to be complete by June 30, 2023.

View Audit 42867 Questioned Costs: $1

Corrective Action Plans

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