Corrective Action Plans

Finding 286714 (2022-075)

Significant Deficiency 2022

State of Colorado

CO

HUD Housing Programs Internal Control / Segregation of Duties Cash Management § 200.303

The Department of Local Affairs (Department) agrees with the recommendation. The Department will strengthen its internal controls through the development of an onboarding program that will include different modules that new employees and/or contractors must work through to receive certification. The...

The Department of Local Affairs (Department) agrees with the recommendation. The Department will strengthen its internal controls through the development of an onboarding program that will include different modules that new employees and/or contractors must work through to receive certification. These modules will include all relevant steps associated with the waiting list process.

View Audit 282464

Finding 286697 (2022-059)

Significant Deficiency 2022

State of Colorado

CO

Questioned Costs Reporting Internal Control / Segregation of Duties § 200.303

Front Range: Moving forward the Director of Financial Aid will engage the Restricted Funds Accountants in a quality assurance review of both dollars spent, type of fund, and student counts before it is submitted for final review and publishing by the Director of Resource Development and Senior Grant...

Front Range: Moving forward the Director of Financial Aid will engage the Restricted Funds Accountants in a quality assurance review of both dollars spent, type of fund, and student counts before it is submitted for final review and publishing by the Director of Resource Development and Senior Grant Administrator. The most recently submitted information for the quarterly report of September 30, 2022 will be sent to the Restricted Funds Accountants to validate that FRCC has been and will continue to be in compliance for quarterly HEERF reporting. Lamar: The Financial Aid Director and the Controller will compile their reporting support on the shared drive they utilize for other routine purposes as well, to ensure clear documentation of the numbers reported. The original report containing errors was corrected, validated, and reposted. All past year?s reporting data was made available on the shared drive as of July 2022. Pueblo: Each quarter Financial aid will obtain and compare Cognos and Banner disbursement reports for accuracy. Once the unduplicated student count is determined it will be sent to the Vice President of Student Success to validate and approve going forward. Financial aid will ensure staff maintain supporting documentation for any institutional expenditures information that was obtained from the fiscal office. Disbursement and expenditure data will be compiled for the Department of Education?s Quarterly Report by the submission deadline and will be submitted as PDF to webmaster for posting on PCC?s website and a copy emailed to a contact at the Department of Education and will archive the submission for future reference.

View Audit 282464

Finding 286696 (2022-063)

Significant Deficiency 2022

State of Colorado

CO

Subrecipient Monitoring Reporting Internal Control / Segregation of Duties § 200.303 § 200.334

In December 2022, the Office of Financial Aid strengthened its internal control over the reporting requirements for the Higher Education Emergency Relief Fund (HEERF), by adding the report due dates to the internal operational calendar. Additional level reviews were also added to the submission proc...

In December 2022, the Office of Financial Aid strengthened its internal control over the reporting requirements for the Higher Education Emergency Relief Fund (HEERF), by adding the report due dates to the internal operational calendar. Additional level reviews were also added to the submission process before the required reports will be sent to the Department of Education and posted on the financial aid website.

View Audit 282464

Finding 286695 (2022-062)

Significant Deficiency 2022

State of Colorado

CO

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

In January 2023, the Executive Director of Financial Aid and Scholarships implemented a code of conduct that addresses and prohibits University personnel from awarding financial aid to their family members or other persons considered conflicts of interest. The Office of Financial Aid and Scholarship...

In January 2023, the Executive Director of Financial Aid and Scholarships implemented a code of conduct that addresses and prohibits University personnel from awarding financial aid to their family members or other persons considered conflicts of interest. The Office of Financial Aid and Scholarships will draft policy by June 30, 2023, to address the segregation of duties that prohibits awarding and disbursing federal, state, or institutional funding to students by one employee.

View Audit 282464 Questioned Costs: $1

Finding 286570 (2022-060)

Significant Deficiency 2022

State of Colorado

CO

Student Financial Aid Reporting Matching / Level of Effort / Earmarking

Mines was delayed in processing NSLDS files due to staffing changes and employee leave. Mines has constructed a process to ensure timely future reporting along with an agreed upon trained back-up for the primary person if they are out for an extended time. Additionally, we have changed how often we ...

Mines was delayed in processing NSLDS files due to staffing changes and employee leave. Mines has constructed a process to ensure timely future reporting along with an agreed upon trained back-up for the primary person if they are out for an extended time. Additionally, we have changed how often we report enrollment files to the Clearinghouse (NSC). We are now reporting every two weeks. The error reports generated after the files are submitted are reviewed as soon as they?re posted, a copy downloaded from NSC and reviewed for corrections which are then completed as soon as possible. Mines is working on an updating the documentation for the full process, including all of the cleanup reports that are run in COGNOS and the Banner jobs before the enrollment file is even processed.

View Audit 282464

Finding 279111 (2022-001)

Significant Deficiency 2022

Northeast Iowa Food Bank

IA

Questioned Costs Special Tests & Provisions School Nutrition Programs

The Food Bank has updated the weight and has implemented procedures to ensure products are updated annually.

View Audit 265977

Finding 279107 (2022-002)

Significant Deficiency 2022

Legal Aid Chicago

IL

Special Tests & Provisions Questioned Costs Significant Deficiency

2022-002: Special Tests and Provisions Recommendation: We recommend that management implement a procedure to maintain documentation of employees written acceptance of the policies. Explanation of disagreement with audit finding: There is no disagreement with this finding. Action taken in respon...

2022-002: Special Tests and Provisions Recommendation: We recommend that management implement a procedure to maintain documentation of employees written acceptance of the policies. Explanation of disagreement with audit finding: There is no disagreement with this finding. Action taken in response to finding: The Organization will implement a process whereby new staff sign an acknowledgment that they have received and reviewed the Organization?s policies. This will happen during the HR onboarding process. For existing staff members, the Organization will separately secure written acknowledgement and retain in our organizational files. Name of the contact person responsible for corrective action: McKenzie Marks, Director of Human Resources Planned completion date for corrective action plan: September 30, 2023

View Audit 265967

Finding 279106 (2022-001)

Significant Deficiency 2022

Legal Aid Chicago

IL

Questioned Costs Eligibility Significant Deficiency

2022-001: Eligibility Recommendation: We recommend that management implement a control to ensure documentation is maintained to support that all cases have been reviewed when closed. Explanation of disagreement with audit finding: There is no disagreement with this finding. Action taken in respon...

2022-001: Eligibility Recommendation: We recommend that management implement a control to ensure documentation is maintained to support that all cases have been reviewed when closed. Explanation of disagreement with audit finding: There is no disagreement with this finding. Action taken in response to finding: We will draft a supervisor case closing checklist. We will distribute the checklist to supervisors once it is finalized. We will then pull a random sample of recently closed cases in October to see if supervisors are completing the review as instructed. Name of the contact person responsible for corrective action: Daniel Lindsey, Chief Litigation Officer Planned completion date for corrective action plan: September 30, 2023

View Audit 265967

Finding 279102 (2022-002)

None 2022

Greater Cleveland Food Bank

OH

Questioned Costs Subrecipient Monitoring Reporting

Finding: 2022-002 Internal Control over Compliance with Reporting Agency: Greater Cleveland Food Bank Name of responsible contact person and title: Jessica Morgan, CPO & Valissa Turner Howard, VP of Talent and Legal Affairs Anticipated completion date: 7/31/2023 Agency's response: Concur Planned Cor...

Finding: 2022-002 Internal Control over Compliance with Reporting Agency: Greater Cleveland Food Bank Name of responsible contact person and title: Jessica Morgan, CPO & Valissa Turner Howard, VP of Talent and Legal Affairs Anticipated completion date: 7/31/2023 Agency's response: Concur Planned Corrective Action(s): ? The Agency Services Analyst will complete the quarterly report within 35 days of the end of the quarter to ensure proper review, approval, and corrections if necessary, in order to be submitted within the 45-day requirement. Prior to the report being submitted, the Director of Agency Services will continue to review and will provide oversight for timely submission. ? Include in our Internal Auditing Program of the OAF/TANF contract, review of all supporting documents to validate timely reporting. ? The VP of Talent and Legal Affairs with the support of the Compliance Manager will review the timelines for all required reporting to the Ohio Association of Food banks on an annual basis with supervisors and those employees responsible for reporting.

View Audit 264352

Finding 279096 (2022-001)

Material Weakness 2022

Greater Cleveland Food Bank

OH

Questioned Costs Subrecipient Monitoring Allowable Costs / Cost Principles

Finding: 2022-001 Internal Control over Compliance with Activities Allowed or Unallowable Agency: Greater Cleveland Food Bank Name of responsible contact person and title: Jessica Morgan, Chief Programs Officer and Dwayne Brake, VP of Operations Anticipated completion date: 7/31/2023 Agency's respon...

Finding: 2022-001 Internal Control over Compliance with Activities Allowed or Unallowable Agency: Greater Cleveland Food Bank Name of responsible contact person and title: Jessica Morgan, Chief Programs Officer and Dwayne Brake, VP of Operations Anticipated completion date: 7/31/2023 Agency's response: Concur Planned Corrective Action(s): ? Reimplementation of pre-COVID delivery and rece iving practices, signed receipts, regarding all food and commodities to sub-recipient agencies. ? Include a review of all supporting documents and signed receipts in our Internal Auditing Program of the TEFAP contract. ? Staff who are responsible for collecting invoice signatures, including the responsible parties, will be retrained on the procedure and will annually review the requirements for signed receipts for government commodities to ensure proper record keeping.

View Audit 264352

Finding 279095 (2022-002)

Significant Deficiency 2022

Mahoning-Youngstown Community Action Partnership, Inc.

OH

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

Finding: 2022-002 Agency: U.S. Department of Health and Human Services ? ALN 93.558 ? TEMPORARY ASSISTANCE FOR NEEDY FAMILIES (TANF) Name of contact person and title: Shelia Triplett, Executive Director Anticipated completion date: September 2023 MYCAP?s respo...

Finding: 2022-002 Agency: U.S. Department of Health and Human Services ? ALN 93.558 ? TEMPORARY ASSISTANCE FOR NEEDY FAMILIES (TANF) Name of contact person and title: Shelia Triplett, Executive Director Anticipated completion date: September 2023 MYCAP?s response: Concur MYCAP agrees with this finding and provided the following response for corrective action: U.S. Department of Health and Human Services ? Significant Deficiency ? Internal Controls over Compliance ? Eligibility Plan of Action: The Support Specialist will gather all required documents for the TANF program, ensuring the application documents and required income are on file. The Chief Operating Officer (COO) will conduct a second review of all TANF files for proper eligibility requirements including recalculations of income, ensuring all files are eligible, marking the file with initial and approval for processing.

View Audit 264349

Finding 270209 (2022-001)

Material Weakness 2022

Project for Pride in Living, Inc.

MN

Material Weakness Internal Control / Segregation of Duties

Project for Pride in Living, Inc. respectfully submits the following corrective action plan for the year ended December 31, 2022. Audit period: January 1, 2022 ? December 31, 2022 The findings from the December 31, 2022, schedule of findings and questioned costs are discussed below. The findings...

Project for Pride in Living, Inc. respectfully submits the following corrective action plan for the year ended December 31, 2022. Audit period: January 1, 2022 ? December 31, 2022 The findings from the December 31, 2022, schedule of findings and questioned costs are discussed below. The findings are numbered consistently with the numbers assigned in the schedule. Findings ? Financial Statements Audit Material Weakness 2022-001 ? Audit Adjustments Recommendation ? The Organization establish procedures to regularly review out-of-the-ordinary activities to ensure its accounting is complete and accurate. Auditee's comments ? During 2022, PPL experienced turnover in its Corporate Controller position. Transfer of knowledge regarding the acceptance of the donated property and communication regarding the timing of its recording were not properly executed during the transition. Additionally, the nature of the contribution (noncash/property) is unique to our organization and the omission of its recording was not identified within the established internal controls for cash transactions. As such, recording of the donated property was inadvertently overlooked. The Organization is actively working to update its financial policies, to include recording of unique transactions such as non-cash donations of property. When large non-cash donations are made, the Corporate Controller will work with the Chief Financial Officer and auditing firm on the best way to accurately record the transaction in accordance with GAAP. Generally, the transaction will be recorded in the period the donation is received to avoid a similar recording error in the future. Furthermore, PPL Financial Leadership, including the CFO and Corporate Controller, in collaboration with our external auditors, have established a mid-point check-in that will take place at the end of third quarter to reflect on previous year audit takeaways as well as year-to-date financial status. Name(s) and contact person(s) responsible for corrective action: Scott Cordes. Planned completion date for corrective action plan: New procedures have been established and are anticipated to be approved by the Board of Directors in October. A mid-point check-in with our auditing firm has also been scheduled to take place in October 2023. If there are any questions regarding this plan, please contact Scott Cordes at (612) 455-5149.

View Audit 262592

Finding 270208 (2022-006)

Material Weakness 2022

Overdose Lifeline, Inc.

IN

Reporting Internal Control / Segregation of Duties Material Weakness

Finding 2022-06 Report Preparation and Submission Condition: It was discovered that the Organization demonstrated deficiencies in reporting accuracy and completeness, as well as a failure to comply with state law by not filing a required annual report. Upon review of the Organization?s reporting p...

Finding 2022-06 Report Preparation and Submission Condition: It was discovered that the Organization demonstrated deficiencies in reporting accuracy and completeness, as well as a failure to comply with state law by not filing a required annual report. Upon review of the Organization?s reporting practices, it was observed that three out of the five reports selected for testing contained discrepancies, inaccuracies, or incomplete reporting metrics. These discrepancies raise concerns about the reliability of the organization's reported data, which can impact decision-making, program effectiveness, and the organization's ability to fulfill its fiduciary responsibilities. Furthermore, the Organization failed to file the mandatory annual report as required by Indiana Code 5-11-1-4, further indicating a deficiency in compliance with local regulations. Corrective Actions Taken or Planned: The Organization?s Board and Executive Team consisting of the CEO and COO acknowledge the finding related to reporting deficiencies. The Organization has adopted internal policies to address this to include a grants management tracking system that records reporting requirements and a checks and balance system. The required annual report process has been initiated and a 2023 report will be filed in the month of October 2023.

View Audit 261078

Finding 265183 (2022-003)

Material Weakness 2022

Overdose Lifeline, Inc.

IN

Questioned Costs Period of Performance Subrecipient Monitoring

Finding 2022-03 Expenditure of Funds Outside Contract Period Condition: In the course of testing direct disbursements for adherence to appropriate cutoffs concerning the contract's period of performance, it was discovered that the Organization incurred a substantial amount of expenditures on contr...

Finding 2022-03 Expenditure of Funds Outside Contract Period Condition: In the course of testing direct disbursements for adherence to appropriate cutoffs concerning the contract's period of performance, it was discovered that the Organization incurred a substantial amount of expenditures on contracts prior to the official contract start date. These disbursements took place without acquiring proper authorization for making disbursements prior to the contract's commencement. Despite the unique nature of Naloxone inventory being treated as a prepaid asset due to its delayed usage, the majority, if not all, of the Naloxone units were fully expended before the contract officially commenced. Corrective Actions Taken or Planned: The Organization?s Board and Executive Team consisting of the CEO and the COO acknowledge the finding of expending funds outside the contract period. This finding is connected to the purchase of the emergency medication naloxone. The Organization decided to purchase with no assurance of reimbursement in order to eliminate the lack of emergency medication in an overdose epidemic. The Organization had verbal approval but did not secure approval in writing. Numerous policies will be adopted in 2023 to ensure this does not occur again. Some of these policies include the transition to an experienced nonprofit bookkeeper, training for Finance and Grants Management and tracking mechanisms, monthly grants tracking meetings to ensure inventory and spending, and the adoption of a clear and documented approval process should spending, outside a contract period, be required.

View Audit 261078 Questioned Costs: $1

Finding 265181 (2022-001)

Material Weakness 2022

Overdose Lifeline, Inc.

IN

Internal Control / Segregation of Duties Allowable Costs / Cost Principles Material Weakness

Finding 2022-01 Financial Close Process Condition: The auditors noted a lack of a strong financial close process which led to several material audit adjustments that were proposed during the audit and recorded by the client to properly reflect various financial statement accounts. Corrective Acti...

Finding 2022-01 Financial Close Process Condition: The auditors noted a lack of a strong financial close process which led to several material audit adjustments that were proposed during the audit and recorded by the client to properly reflect various financial statement accounts. Corrective Actions Taken or Planned: The Organization?s Board and Executive Team consisting of the Chief Executive Officer (?CEO?) and the Chief Operating Officer (?COO?) recognize the existence of gaps in the financial accounting practices at the organization during the year ending 2022. A transition occurred between independent bookkeepers during this year causing these discrepancies. The Executive Team recognized the need to hire staff and put new policies and processes in place. The Organization began this process in October of 2022 with the hiring of a Finance Manager. Additionally, a transition occurred in the first quarter of 2023 to a new independent bookkeeper with strong training in nonprofit accounting. The Organization will adopt all GAAP nonprofit accounting practices in 2023. New processes have been adopted to reconcile the financial statements weekly. The Finance Manager and Bookkeeper meet weekly for additional oversight. Balance sheet accounts are reconciled monthly and presented to the COO and Board Treasurer.

View Audit 261078

Finding 264816 (2022-005)

Material Weakness 2022

Elysian School

MT

Internal Control / Segregation of Duties

AUDITOR PREPARED FINANCIAL STATEMENTS Name of contact person: Laurie Hickethier Corrective Action: Elysian School does not have the resources in time or money to comply with sending a district representative to school on a periodic basis to keep up with the regulations required to prepare annual f...

AUDITOR PREPARED FINANCIAL STATEMENTS Name of contact person: Laurie Hickethier Corrective Action: Elysian School does not have the resources in time or money to comply with sending a district representative to school on a periodic basis to keep up with the regulations required to prepare annual financial statements and notes to the financial statements. There is a significant cost involved in annual training and also significant time involved in preparing the annual financial statements and notes to the financial statements. The District believes the cost would outweigh the benefits of preparing the annual financial statements and notes to the financial statements. The draft financial statements are read to ensure the quality of the document and the preparer.

View Audit 262547

Finding 264815 (2022-004)

Material Weakness 2022

Elysian School

MT

Internal Control / Segregation of Duties

SEGREGATION OF DUTIES Name of Contact Person: Laurie Hickethier Corrective Action: Elysian School has numerous compensating controls in place to help prevent mistakes or fraud. The District could always do more to segregate duties, but this would require additional personnel. The District believ...

SEGREGATION OF DUTIES Name of Contact Person: Laurie Hickethier Corrective Action: Elysian School has numerous compensating controls in place to help prevent mistakes or fraud. The District could always do more to segregate duties, but this would require additional personnel. The District believes the costs of the additional personnel would outweigh the benefits to provide perfect segregation of duties. Many steps have been recommended in the past by auditors and all those steps have been taken to ensure proper segregation of duties with our current personnel. Proposed Completion Date: Immediately

View Audit 262547

Finding 261142 (2022-015)

Material Weakness 2022

Pinecrest Academy of Nevada

NV

Allowable Costs / Cost Principles Cash Management Questioned Costs § 200.303

Finding Number: 2022-015 ? Cash Management Corrective Action Plan: A process has been put in place for the school principal to review all RFRs prior to submission to the grantor. Approval is evidenced by email sent by principal to the Director of Grant Management, which is saved with the RFR as supp...

Finding Number: 2022-015 ? Cash Management Corrective Action Plan: A process has been put in place for the school principal to review all RFRs prior to submission to the grantor. Approval is evidenced by email sent by principal to the Director of Grant Management, which is saved with the RFR as support. Responsible Individuals: Nachum Golodner, Director of Accounting Anticipated Completion Date: June 30, 2023

View Audit 258987

Finding 261140 (2022-017)

Material Weakness 2022

Pinecrest Academy of Nevada

NV

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

Finding Number: 2022-017 ? SEFA Preparation Corrective Action Plan: In 2022, the office had downsized due to turnover in staff. While a process was in place for reconciling, a secondary review was not performed to verify accuracy of the residual value calculations. To strengthen the oversight of fin...

Finding Number: 2022-017 ? SEFA Preparation Corrective Action Plan: In 2022, the office had downsized due to turnover in staff. While a process was in place for reconciling, a secondary review was not performed to verify accuracy of the residual value calculations. To strengthen the oversight of financial management in the School, Academica Nevada, the School?s management company, has filled all the open positions and realigned staff responsibilities to reduce individual workloads and provide additional oversight and review. The grant manager will reconcile all grants to ensure proper cutoff, with a secondary review performed by a member of management. Responsible Individuals: Nachum Golodner, Director of Accounting Anticipated Completion Date: June 30, 2023

View Audit 258987

Finding 261138 (2022-014)

Material Weakness 2022

Pinecrest Academy of Nevada

NV

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

Finding Number: 2022-014 ? Activities Allowed or Unallowed and Allowable Costs/Cost Principles Corrective Action Plan: A process has been put in place for the school principal to review all RFRs prior to submission to the grantor. Approval is evidenced by email sent by principal to the Director of G...

Finding Number: 2022-014 ? Activities Allowed or Unallowed and Allowable Costs/Cost Principles Corrective Action Plan: A process has been put in place for the school principal to review all RFRs prior to submission to the grantor. Approval is evidenced by email sent by principal to the Director of Grant Management, which is saved with the RFR as support. Responsible Individuals: Nachum Golodner, Director of Accounting Anticipated Completion Date: June 30, 2023

View Audit 258987

Finding 254944 (2022-001)

Significant Deficiency 2022

Cedar Valley Friends of the Family, Inc.

IA

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

Management agrees with the finding and has reviewed procedures with the appropriate personnel.

View Audit 235552

Finding 252560 (2022-002)

Significant Deficiency 2022

United Food Bank

AZ

Internal Control / Segregation of Duties Procurement, Suspension & Debarment Significant Deficiency § 200.303 § 200.318

2022-002 U.S. Department of Agriculture, Food, and Nutrition Service Emergency Food Assistance Program CFDA Number: 10.568/10.569 Passed Through: The Arizona Department of Economic Security Pass Through Number: CtR052634 Award Period: July 1, 2021 ? June 30, 2022 Condition/Context ? Internal cont...

2022-002 U.S. Department of Agriculture, Food, and Nutrition Service Emergency Food Assistance Program CFDA Number: 10.568/10.569 Passed Through: The Arizona Department of Economic Security Pass Through Number: CtR052634 Award Period: July 1, 2021 ? June 30, 2022 Condition/Context ? Internal control procedures over procurement requirements did not ensure compliance with federal awards. For 1 of 8 vendors tested, there was no documented evidence that the vendor was reviewed and approved in accordance with the Organization?s procurement policy. Contact Person ? Megan Montalvo, Chief Financial Officer Corrective Action Plan ? United Food Bank follows the set procurement policy. Quotes are obtained for all vendors who meet a certain dollar threshold. For the instance that occurred, quotes were obtained and reviewed. A meeting was held to discuss the quotes received, and it was decided to use the service of all of the vendors that quotes were obtained from, not just a single vendor. The failure occurred due to not documenting the selection of using multiple vendors for the same service on the Organization?s Vendor Selection Form. The Vendor Selection Form will be completed for all procurement services, even if multiple vendors are selected for the same type of goods or services.

View Audit 257571

Finding 252559 (2022-001)

Significant Deficiency 2022

United Food Bank

AZ

Internal Control / Segregation of Duties Questioned Costs Subrecipient Monitoring § 200.303

2022-001 U.S. Department of Agriculture, Food, and Nutrition Service Emergency Food Assistance Program CFDA Number: 10.568/10.569 Passed Through: The Arizona Department of Economic Security Pass Through Number: CtR052634 Award Period: July 1, 2021 ? June 30, 2022 Type of Finding ? Significant Defi...

2022-001 U.S. Department of Agriculture, Food, and Nutrition Service Emergency Food Assistance Program CFDA Number: 10.568/10.569 Passed Through: The Arizona Department of Economic Security Pass Through Number: CtR052634 Award Period: July 1, 2021 ? June 30, 2022 Type of Finding ? Significant Deficiency in Internal Control over Compliance Condition/Context ? Internal control procedures over eligibility requirements for 1 of 40 eligibility sheets tested indicated there was no certifying signature by the eligible recipient agency volunteer, and there was no evidence of secondary review by the distribution agency program officials. Contact Person ? Chariti Stern, Chief Program Officer Corrective Action Plan ? United Food Bank has entirely onboarded all TEFAP agencies to be active on Link2Feed; however, a handful of agencies still use sign-in sheets due to technology limitations. At the 2022 Agency Conference, a presentation was done that conveyed the importance of checking all signatures on United Food Bank documents. The 2022 Partner Agency Handbook explains that a signature is required for the reports and sign-in sheets to be authorized and accepted by United Food Bank. Re-training United Food Bank staff has also occurred to ensure that all reports have the correct signatures and that the United Food Bank staff?s initials are on all documents to ensure that the reports were reviewed.

View Audit 257571

Finding 247639 (2022-002)

Significant Deficiency 2022

Mi Residential Community, Inc. 023-11147

MA

HUD Housing Programs Equipment & Real Property Management Internal Control / Segregation of Duties

U.S. Department of Housing and Urban Development, passed through the Massachusetts Housing Finance Agency (continued) Section 8 Housing Assistance Payments Program ? Assistance Listing No. 14.195 (continued) Significant Deficiencies (continued) 2022-002 Condition: 2 of the 40 units selected for tes...

U.S. Department of Housing and Urban Development, passed through the Massachusetts Housing Finance Agency (continued) Section 8 Housing Assistance Payments Program ? Assistance Listing No. 14.195 (continued) Significant Deficiencies (continued) 2022-002 Condition: 2 of the 40 units selected for testing did not have annual quality inspections completed within one year of the previous inspection. Auditor's Recommendation: We recommend that an internal control procedure be implemented to ensure that the required annual housing inspections are performed within one year of the previous inspection and that the inspection reports are being maintained within the tenant files. Action Taken: Management will continue to work tenaciously to comply with `performing unit inspections on at lease an annual basis to determine whether the applicants and equipment in the unit are functioning properly and to assess whether a component needs to be repaired or replaced.? [HUD Occupancy Handbook, 4350.3 rev-1, Chapter 6 Lease Requirement and Leasing Activities, Section 6-29, Unit Inspection, Paragraph 3].

View Audit 258341

Finding 247638 (2022-001)

Significant Deficiency 2022

Mi Residential Community, Inc. 023-11147

MA

HUD Housing Programs Eligibility Reporting

U.S. Department of Housing and Urban Development, passed through the Massachusetts Housing Finance Agency Section 8 Housing Assistance Payments Program ? Assistance Listing No. 14.195 Significant Deficiencies 2022-001 Condition: 1) 1 of the 40 tenants selected for testing had an incorrect amount r...

U.S. Department of Housing and Urban Development, passed through the Massachusetts Housing Finance Agency Section 8 Housing Assistance Payments Program ? Assistance Listing No. 14.195 Significant Deficiencies 2022-001 Condition: 1) 1 of the 40 tenants selected for testing had an incorrect amount reported for social security income on Form HUD-50059. 2) 1 of the 40 tenants selected for testing had an amount reporting for medical expenses on Form HUD-50059 that was not supported by documentation in the tenant?s file. Auditor's Recommendation: We recommend that an internal control procedure be implemented to ensure that all HUD-50059 forms are completed accurately and all required information is obtained and maintained within the tenant files. Action Taken: 1) Management will meet with the tenant to properly investigate causation for the finding noted above. Pending the outcome of the investigation, Management will correct the July 2022 Annual Certification with the expectation of correcting the income used to tabulate the tenant?s level of rental assistance, the tenant will not be charged for the error, and HUD will be reimbursed for subsidy accordingly. 2) Management removed the active medical expense from the expense tab on the management software. The medical expenses do not impact the level of rental assistance since the amount did not exceed 3 percent of the tenant?s household income. Nevertheless, Management reclassified the medical expense as inactive to ensure the medical expense is not part of the future certifications.

View Audit 258341

Corrective Action Plans

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