Corrective Action Plans

Finding 24848 (2022-001)

Significant Deficiency 2022

TN

Allowable Costs / Cost Principles Matching / Level of Effort / Earmarking Internal Control / Segregation of Duties

Finding No. 2022-001 Corrective Action Plan 1. Name of the contact person responsible for corrective action Brooks Champion- Controller 2. Corrective action planned Regional One Health will implement controls and processes to ensure all costs are manually reviewed and approved to ensure allowab...

Finding No. 2022-001 Corrective Action Plan 1. Name of the contact person responsible for corrective action Brooks Champion- Controller 2. Corrective action planned Regional One Health will implement controls and processes to ensure all costs are manually reviewed and approved to ensure allowability under the grant and that evidence of review is maintained. 3. Completion date November 1, 2022 4. If the client does not agree with the audit findings or believes corrective action is not required, include an explanation and specific reasons We agree with Finding No. 2022-001 5. The reference numbers the auditors assigned to the audit findings in the schedule of findings and questioned costs Finding No. 2022-001

View Audit 22190

Finding 24847 (2022-003)

Significant Deficiency 2022

Shelby County Health Care Corporation

TN

Program Income Internal Control / Segregation of Duties Special Tests & Provisions

Finding No. 2022-003 Corrective Action Plan 1. Name of the contact person responsible for corrective action Brooks Champion- Controller 2. Corrective action planned ROH will implement controls and processes to ensure program income is reviewed by those familiar with both the program and specifi...

Finding No. 2022-003 Corrective Action Plan 1. Name of the contact person responsible for corrective action Brooks Champion- Controller 2. Corrective action planned ROH will implement controls and processes to ensure program income is reviewed by those familiar with both the program and specifically the program income allocation methodology prior to submission and that evidence of review is maintained. 3. Completion date April 15, 2023 4. If the client does not agree with the audit findings or believes corrective action is not required, include an explanation and specific reasons We agree with Finding No. 2022-003 5. The reference numbers the auditors assigned to the audit findings in the schedule of findings and questioned costs Finding No. 2022-003

View Audit 22190

Finding 24846 (2022-002)

Significant Deficiency 2022

Shelby County Health Care Corporation

TN

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

Finding No. 2022-002 Corrective Action Plan 1. Name of the contact person responsible for corrective action Brooks Champion- Controller 2. Corrective action planned ROH will implement controls and processes to ensure grant reports are reviewed prior to submission and that evidence of review is ...

Finding No. 2022-002 Corrective Action Plan 1. Name of the contact person responsible for corrective action Brooks Champion- Controller 2. Corrective action planned ROH will implement controls and processes to ensure grant reports are reviewed prior to submission and that evidence of review is maintained. 3. Completion date November 1, 2022 4. If the client does not agree with the audit findings or believes corrective action is not required, include an explanation and specific reasons We agree with Finding No. 2022-002 5. The reference numbers the auditors assigned to the audit findings in the schedule of findings and questioned costs Finding No. 2022-002

View Audit 22190

Finding 24845 (2022-002)

Significant Deficiency 2022

Beacon College, Inc.

FL

Reporting Significant Deficiency Internal Control / Segregation of Duties § 200.303

2022-002 Higher Education Emergency Relief Fund (HEERF) Reporting Recommendation: We recommend that the College review their reporting policies and procedures to ensure accurate and timely reporting. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Act...

2022-002 Higher Education Emergency Relief Fund (HEERF) Reporting Recommendation: We recommend that the College review their reporting policies and procedures to ensure accurate and timely reporting. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action planned/taken in response to finding: Although the student data for the September 30, 2021 report was gathered timely and accurately, the report was posted on-line three days late and had an error in the quarterly amount awarded. The College will provide a more careful review of all reporting both before and after posting to ensure timeliness and accuracy. Name(s) of the contact person(s) responsible for corrective action: Rich Killion, V.P. of Institutional Advancement; Stephanie Knight, Director of Enrollment Services; Sandi Rysell, Chief Financial Officer Planned completion date for corrective action plan: Completed. If the U.S. Department of Education has questions regarding this plan, please call Dale Herold, Vice President for Admissions and Enrollment Management, Beacon College, 855-220-5376, dherold@beaconcollege.edu.

View Audit 20958

Finding 24843 (2022-001)

Significant Deficiency 2022

Beacon College, Inc.

FL

Student Financial Aid Questioned Costs Matching / Level of Effort / Earmarking

2022-001 Awarding of Direct Loans and Pell Grants Recommendation: We recommend the College evaluate its policies and procedures for identifying transfer credits and other changes made after the initial packaging to ensure that federal awards are revised as needed. Explanation of disagreement with au...

2022-001 Awarding of Direct Loans and Pell Grants Recommendation: We recommend the College evaluate its policies and procedures for identifying transfer credits and other changes made after the initial packaging to ensure that federal awards are revised as needed. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action planned/taken in response to finding: Beacon is implementing a new comprehensive software system (Jenzabar One) which ? paired with NetPartner and PowerFAIDS ?will better identify changes in student status. The system will also include InfoMaker software which the financial aid office will use to pull information needed to double check for late changes in student eligibility. Full implementation of the new software is now estimated to occur in December 2022. In the interim, enhanced procedures have been put in place by the Financial Aid Office to prevent further issues: a. Requesting an updated anticipated graduation list from the Registrar at the beginning of each term to confirm students are awarded appropriately b. Requesting a final graduation list from the Registrar at the end of each term to identify any students whose graduation plan has been delayed and making immediate adjustments to their aid eligibility, if needed. c. Performing a finalized review of all graduating students prior to the end of the academic year to ensure proper adjustments have been made. d. Requesting updated reports from the Registrar of any student receiving credit for transfer coursework prior to the start of each semester and making adjustments immediately to their aid eligibility; e. Prior to disbursement, a second review of all students is being performed to identify students whose grade-level conflicts with determination level for pending loans f. A final review prior to the end of each term is conducted so late adjustments can be made if needed. Name(s) of the contact person(s) responsible for corrective action: Daphne Parks, Vice President of Processing at FAS; Stephanie Knight, Director of Enrollment Services & Financial Aid, Beacon College; Carrie Santaw, Registrar, Beacon College Planned completion date for corrective action plan: Interim measures ? already implemented. Software implementation is scheduled to go live in December 2022.

View Audit 20958 Questioned Costs: $1

Finding 24837 (2022-004)

Significant Deficiency 2022

Monticello Cusd #25

IL

Questioned Costs Cash Management School Nutrition Programs

Finding No.: 2022-_ 004__ Condition: The District prepared analysis of the profitability of the food service program was not clerically accurate by a material amount. Plan: The profitability analysis will be reviewed by someone independent of the preparer to ensure that ...

Finding No.: 2022-_ 004__ Condition: The District prepared analysis of the profitability of the food service program was not clerically accurate by a material amount. Plan: The profitability analysis will be reviewed by someone independent of the preparer to ensure that all food service receipts and disbursements are included in the profitability analysis. Anticipated Date of Completion: 06/30/2023 Name of Contact Person: Adam Clapp Management Response: Management will implement the corrective action plan for the year ended June 30, 2023.

View Audit 22047

Finding 24826 (2022-002)

Significant Deficiency 2022

Rockhurst University

MO

Questioned Costs Reporting Significant Deficiency § 200.328 § 200.329

Finding No. 2022-002 Corrective Action Plan University Response: The University concurs with the finding concerning quarterly reporting of HEERF funds. Corrective Action: Rockhurst will conduct an additional review of the released guidance and reporting requirements to ensure compliance of any pub...

Finding No. 2022-002 Corrective Action Plan University Response: The University concurs with the finding concerning quarterly reporting of HEERF funds. Corrective Action: Rockhurst will conduct an additional review of the released guidance and reporting requirements to ensure compliance of any published, missing or future reports. In accordance with HEERF guidance, any reports with expenses that were incorrectly reported will be revised and publicly published, if applicable. Responsible Official: Kris Pace, Controller Anticipated Completion Date: June 30, 2023

View Audit 23899

Finding 24824 (2022-001)

Significant Deficiency 2022

City of Platteville

WI

Internal Control / Segregation of Duties HUD Housing Programs

Finding #2022-001- Segregation of Duties Criteria: Segregation of duties is an aspect of internal control intended to prevent or decrease opportunities of intentional and unintentional errors and fraud. Duties and responsibilities are properly segregated if no single individual either has control ov...

Finding #2022-001- Segregation of Duties Criteria: Segregation of duties is an aspect of internal control intended to prevent or decrease opportunities of intentional and unintentional errors and fraud. Duties and responsibilities are properly segregated if no single individual either has control over all phases of a transaction or can both make and conceal an error, whether such error is intentional or unintentional. Condition: A properly designed system of internal control includes adequate staffing, policies, and procedures to properly segregate duties. All internal control duties can be classified into four broad categories: authorization, custody, recordkeeping, and reconciliation. No one person should have control of two or more of these four categories for any one cycle. There are key controls related to significant transaction cycles that are important in reducing the risk of errors or irregularities. Currently, there are the following overlapping duties: - Both Accounting Specialists have the authority to enter invoices into the system, print checks, and have access to the electronic signatures. Preferably, the check cutting process would separate the entering of payment information into the system and the ability to print signed checks. - One Accounting Specialist creates deposits and makes deposits with the bank. Although not the standard procedure, the Accounting Specialist has the authority to collect cash receipts. Ideally, separate individuals would collect cash and make deposits. - The Housing Authority Executive Director opens the mail, creates deposits and takes deposits to the bank. The Executive Director also enters invoices into the system and prints checks. The Board of Commissioners approves disbursements and all checks require dual signatures. Effect: Errors or intentional fraud could occur and not be detected timely by other employees in the normal course of their responsibilities because of the lack of segregation of duties. Cause: Limited number of personnel. Recommendation: We recommend that the City consider the benefits of implementing additional policies and procedures to address key controls related to its significant transaction cycles as noted. Response: We agree with this finding but do not believe it is cost effective to increase personnel to bring about a more effective segregation of duties.

View Audit 20767

Finding 24783 (2022-059)

Significant Deficiency 2022

State of Michigan

MI

Questioned Costs Subrecipient Monitoring Reporting

Finding 2022-059 Social Services Block Grant, ALN 93.667 - Post-Expenditure Report Management Views MDHHS agrees with the finding. Planned Corrective Action MDHHS revised its methodology to include Independent Living Services recipients in the Social Services Block Grant (SSBG) Post-Expenditure ...

Finding 2022-059 Social Services Block Grant, ALN 93.667 - Post-Expenditure Report Management Views MDHHS agrees with the finding. Planned Corrective Action MDHHS revised its methodology to include Independent Living Services recipients in the Social Services Block Grant (SSBG) Post-Expenditure Report. In addition, MDHHS revised and re-submitted the fiscal year 2022 SSBG Post-Expenditure Report with the correct recipient counts. Anticipated Completion Date Completed Responsible Individual(s) Emiliza Noel, MDHHS Tiffany Clarke, MDHHS Rebecca Jones, MDHHS

View Audit 20093

Finding 24737 (2022-058)

Significant Deficiency 2022

State of Michigan

MI

Questioned Costs Subrecipient Monitoring Reporting

Finding 2022-058 Low Income Home Energy Assistance, ALN 93.568 - Annual Report on Households Assisted by LIHEAP Management Views MDHHS agrees with the finding. Planned Corrective Action MDHHS and DTMB plan to improve communication with Treasury to help ensure that accurate data is received prior t...

Finding 2022-058 Low Income Home Energy Assistance, ALN 93.568 - Annual Report on Households Assisted by LIHEAP Management Views MDHHS agrees with the finding. Planned Corrective Action MDHHS and DTMB plan to improve communication with Treasury to help ensure that accurate data is received prior to the report submission. MDHHS will also evaluate the Interagency Agreement and determine if changes are needed. In addition, DTMB is currently evaluating the cause of query inaccuracies and plans to make necessary changes to the query. Anticipated Completion Date MDHHS and DTMB will coordinate with Treasury to clarify when the data is needed for the report by July 31, 2023. MDHHS will evaluate and make changes to the fiscal year 2024 Interagency Agreement by September 30, 2023. DTMB will make necessary changes to the query by December 1, 2023. Responsible Individual(s) Denise Hawkins, DTMB Julie McLaughlin, MDHHS

View Audit 20093

Finding 24719 (2022-055)

Significant Deficiency 2022

State of Michigan

MI

Reporting Internal Control / Segregation of Duties Questioned Costs § 200.302

Finding 2022-055 Temporary Assistance for Needy Families, ALN 93.558 - Accuracy of Financial Reports Management Views MDHHS agrees with the finding. Planned Corrective Action MDHHS will revise the financial reports for the quarters ending September 30, 2022, and December 31, 2022, and submit to t...

Finding 2022-055 Temporary Assistance for Needy Families, ALN 93.558 - Accuracy of Financial Reports Management Views MDHHS agrees with the finding. Planned Corrective Action MDHHS will revise the financial reports for the quarters ending September 30, 2022, and December 31, 2022, and submit to the U.S. Department of Health and Human Services Administration for Children and Families by May 15, 2023. MDHHS will also evaluate the internal control approval process and determine if any changes are needed. Anticipated Completion Date MDHHS will complete its evaluation of the internal control approval process by September 30, 2023, and will then develop a timeline for implementing changes identified during the evaluation, if applicable. Responsible Individual(s) Rebecca Jones, MDHHS Tiffany Clarke, MDHHS Emiliza Noel, MDHHS

View Audit 20093

Finding 24714 (2022-002)

Material Weakness 2022

Isanti County

MN

Questioned Costs Eligibility Material Weakness

Finding Number: 2022-002 Finding Title: Eligibility Program: 93.778 Medicaid Cluster Name of Contact Person Responsible for Corrective Action: Penny Messer, Health and Human Services Division Leader, and Karrie Kolb, Financial Assistance Supervisor Corrective Action Planned: The errors from this rev...

Finding Number: 2022-002 Finding Title: Eligibility Program: 93.778 Medicaid Cluster Name of Contact Person Responsible for Corrective Action: Penny Messer, Health and Human Services Division Leader, and Karrie Kolb, Financial Assistance Supervisor Corrective Action Planned: The errors from this review will be thoroughly discussed at the next all unit meeting. The Income Maintenance Supervisor plans to meet with each worker independently to review the errors and ensure understanding of policy and requirements, and a coaching plan will be implemented with each employee that had two or more case errors. Additionally, the Income Maintenance unit will conduct an average of 15 case reviews on a quarterly basis. Anticipated Completion Date: These actions were implemented on June 6, 2023, and the case reviews will begin in the third quarter of 2023, and be completed on an ongoing basis thereafter.

View Audit 21275

Finding 24685 (2022-001)

Material Weakness 2022

Guild

MN

Special Tests & Provisions Questioned Costs HUD Housing Programs

Finding 2022-001 Federal Agency Name: Department of Housing and Urban Development, Passed through Hearth Connections Program Name: Continuum of Care CFDA # 14.267 Finding Summary: Identified five instances where the participant?s file did not have documentation that the rent reasonableness test was ...

Finding 2022-001 Federal Agency Name: Department of Housing and Urban Development, Passed through Hearth Connections Program Name: Continuum of Care CFDA # 14.267 Finding Summary: Identified five instances where the participant?s file did not have documentation that the rent reasonableness test was performed in a timely manner. In addition, we identified 19 instances where the participant?s file did not have documentation that the rent reasonableness test was reviewed. Creating Inadequate internal controls over compliance could result in noncompliance with the federal program. Responsible Individuals: Paul Bloomer, VP of Finance Corrective Action Plan: A complete review and policy and procedures along with proper training for new staff. The findings occurred during position vacancy and onboarding training. Additional steps are taken to ensure training is completed and random spot checks of client files. Anticipated Completion Date: Ongoing in nature.

View Audit 21274

Finding 24684 (2022-002)

Significant Deficiency 2022

Guild

MN

Questioned Costs Subrecipient Monitoring Cash Management

Finding 2022-002 Federal Agency Name: Department of Housing and Urban Development, Passed through Hearth Connections Program Name: Continuum of Care CFDA # 14.267 Finding Summary: Identified three months in which the reimbursement amount received from the pass-through entity was more than the Org...

Finding 2022-002 Federal Agency Name: Department of Housing and Urban Development, Passed through Hearth Connections Program Name: Continuum of Care CFDA # 14.267 Finding Summary: Identified three months in which the reimbursement amount received from the pass-through entity was more than the Organization?s documentation. In addition, there was no indication that a review was performed of the information submitted for one of the four months tested, which resulted in the reimbursement amount from the pass-through entity being more than the support maintained by the Organization for three of the 12 months and no documentation of the review for one of the months. Responsible Individuals: Paul Bloomer, VP of Finance Corrective Action Plan: Schedule meetings with 3rd party vendor to identify the significant rounding errors occurring. Develop an agreement on rounding procedures to be used by both parties ensuring reconciliation. Anticipated Completion Date: 12/31/23 ? Note- this system of reimbursement terminated on 3/31/23

View Audit 21274

Finding 24681 (2022-008)

Significant Deficiency 2022

State of Michigan

MI

Internal Control / Segregation of Duties Questioned Costs Eligibility

Finding 2022-008 MiSACWIS Security Management and Access Controls Management Views MDHHS agrees with parts a., b., d., and e. of the finding. DTMB disagrees with part c. of the finding. For part c., although MDHHS and DTMB had not fully documented all database specific configuration standards unti...

Finding 2022-008 MiSACWIS Security Management and Access Controls Management Views MDHHS agrees with parts a., b., d., and e. of the finding. DTMB disagrees with part c. of the finding. For part c., although MDHHS and DTMB had not fully documented all database specific configuration standards until after the audit period, DTMB disagrees that during the audit period the system contained potentially vulnerable database configurations and disagrees that DTMB cannot ensure the security of the data. DTMB has been and continues to implement the manufacturer?s recommendations regarding security configurations. In addition, the databases reside in restricted trusted internal security zones, protected by firewalls, which are specific to each application and database, in conjunction with intrusion protection, antivirus software, and SOM standard security safeguards. Planned Corrective Action For parts a. and e., MDHHS will continue to provide training for LOSCs via quarterly webinars to emphasize the proper procedures for granting access and how to review and compare access to DSA approved requests. For part b., MDHHS will add an Incompatible Role form into the DSA Michigan Statewide Automated Child Welfare Information System (MiSACWIS) request with automated routing for appropriate approval. This would ensure that documentation was maintained, and appropriate approvals secured in all situations. For part c., DTMB developed an organization-wide framework for database security configuration management. For part d., MDHHS has implemented a quarterly report in MiSACWIS that will identify any financial authorization that was approved by the same person that created the authorization. Anticipated Completion Date a. and e. Corrective action is ongoing. b. MDHHS has not yet determined an anticipated completion date because implementation is dependent on funding, approval, and prioritization of proposed system changes. c. DTMB anticipates having compliance documentation by September 30, 2023. d. MDHHS will receive the first quarterly report on September 30, 2023, and will perform a review of the transactions identified on that report during October 2023. Responsible Individual(s) a., b., and e. Alana Lowe and Deon Nelson, MDHHS c. Heather Frick and Nathan Buckwalter, DTMB d. Alana Lowe, MDHHS

View Audit 20093

Finding 24674 (2022-026)

Significant Deficiency 2022

State of Michigan

MI

Questioned Costs Cash Management Matching / Level of Effort / Earmarking § 200.303

Finding 2022-026 Epidemiology and Laboratory Capacity for Infectious Diseases (ELC), ALN 93.323 and Disaster Grants - Public Assistance (Presidentially Declared Disasters), ALN 97.036 - Long-Term Care (LTC) Facility COVID-19 Testing Reimbursements Management Views MDHHS agrees with the finding. ...

Finding 2022-026 Epidemiology and Laboratory Capacity for Infectious Diseases (ELC), ALN 93.323 and Disaster Grants - Public Assistance (Presidentially Declared Disasters), ALN 97.036 - Long-Term Care (LTC) Facility COVID-19 Testing Reimbursements Management Views MDHHS agrees with the finding. Planned Corrective Action MDHHS will enhance written procedures to reflect the process in place to ensure that LTC facility COVID-19 testing reimbursement requests are reasonable and appropriate. MDHHS will also improve documentation of the procedures performed as part of the current process. Anticipated Completion Date MDHHS expects completion of the written procedures and improved documentation going forward by June 15, 2023. MDHHS expects to process all remaining payments for costs incurred during the PHE by September 30, 2023. Responsible Individual(s) Shannah Havens, MDHHS

View Audit 20093

Finding 24665 (2022-052)

Significant Deficiency 2022

State of Michigan

MI

Questioned Costs Special Tests & Provisions Equipment & Real Property Management

Finding 2022-052 Immunization Cooperative Agreements, ALN 93.268 - MCIR General Controls Management Views Although MDHHS and DTMB had not fully documented all database specific configuration standards until after the audit period, DTMB disagrees that during the audit period the system contained pot...

Finding 2022-052 Immunization Cooperative Agreements, ALN 93.268 - MCIR General Controls Management Views Although MDHHS and DTMB had not fully documented all database specific configuration standards until after the audit period, DTMB disagrees that during the audit period the system contained potentially vulnerable database configurations and disagrees that DTMB cannot ensure the security of the data. DTMB has been and continues to implement the manufacturer?s recommendations regarding security configurations. In addition, the databases reside in restricted trusted internal security zones, protected by firewalls, which are specific to each application and database, in conjunction with intrusion protection, antivirus software, and SOM standard security safeguards. Planned Corrective Action DTMB developed an organization-wide framework for database security configuration management. Anticipated Completion Date DTMB anticipates having compliance documentation by September 30, 2023. Responsible Individual(s) Nathan Buckwalter, DTMB

View Audit 20093

Finding 24637 (2022-002)

None 2022

The City of New York

NY

Equipment & Real Property Management Internal Control / Segregation of Duties § 200.313

Finding No. 2022-002 Department(s) New York City Police Department Program(s) Assistance Listing Number 97.056, Port Security Grant Program Corrective Action(s) Since the original finding in the FY2020 Single Audit, the NYPD has and continues to implement policies and procedures to ensure there are ...

Finding No. 2022-002 Department(s) New York City Police Department Program(s) Assistance Listing Number 97.056, Port Security Grant Program Corrective Action(s) Since the original finding in the FY2020 Single Audit, the NYPD has and continues to implement policies and procedures to ensure there are multiple levels of inventory asset verification and validation are completed in accordance with Federal requirements. The Grants Unit works closely with project managers to ensure they have continued access to the Grant Tracking System (GTS) and provide hands on training on the system. As previously mentioned, GTS has been updated, and access has been provided to at least two individuals within each command to ensure compliance and redundancy. The newer version of GTS will automatically email the project manager for each individual item that needs to be inspected and checked into the system at least 1 month prior to the expiration of the inventory due date. The Grant Units is also notified of this upcoming deadline and a follow up email is sent to the project manager again. In addition, on a regular basis, the Grants Unit manager will email the command points of contact reminding them of their Asset Inventory requirement as a follow up to the alerts automatically received from GTS. For the 3 items referenced above, an inventory verification was performed February 25, 2021. While the NYPD was unable to provide confirmation of a biannual inventory between the purchase date (April 2018 and May 2018) and a prior inventory date, we can confirm these assets were inventoried in November 2022. In addition, all assets currently listed in GTS are currently up to date and have been so since the FY2020 Single audit. Because all equipment entries are now being monitored regularly by the Grants Unit, in addition to the individual commands receiving automatic emails instructing them to update their inventory, we do not anticipate any further Inventory Verification issues as long as the period referenced is after February 2021. Anticipated Completion Date March 2023 Person(s) Responsible for Implementation Kristine Ryan Deputy Commissioner, Management and Budget (646) 610-6670

View Audit 22749

Finding 24635 (2022-004)

None 2022

The City of New York

NY

Subrecipient Monitoring Internal Control / Segregation of Duties

Finding No. 2022-004 Department(s) New York City Department of Health and Mental Hygiene Program(s) Assistance Listing Number 93.940, HIV Prevention Activities ? Health Department Based Corrective Action(s) We agree with the recommendation provided above and have been working on an internal control...

Finding No. 2022-004 Department(s) New York City Department of Health and Mental Hygiene Program(s) Assistance Listing Number 93.940, HIV Prevention Activities ? Health Department Based Corrective Action(s) We agree with the recommendation provided above and have been working on an internal control structure to address the compliance requirements. Subsequently, we will ensure that all FFATA reports are submitted within the required timeframe. Anticipated Completion Date September 2023 Person(s) Responsible for Implementation Jenny Fernandez Director of Administration, BHHS (347) 396-4258 Jenny Tejada Director of Programmatic Budgets, Budget Administration (347) 396-6247

View Audit 22749

Finding 24634 (2022-015)

Material Weakness 2022

The City of New York

NY

Matching / Level of Effort / Earmarking Internal Control / Segregation of Duties Questioned Costs § 200.303

Finding No. 2022-015 Department(s) New York City Administration for Children?s Services New York City Human Resources Administration Program(s) Assistance Listing Number 93.575, Child Care and Development Block Grant Corrective Action(s) HRA HRA will convene a small workgroup to meet bi-weekly to r...

Finding No. 2022-015 Department(s) New York City Administration for Children?s Services New York City Human Resources Administration Program(s) Assistance Listing Number 93.575, Child Care and Development Block Grant Corrective Action(s) HRA HRA will convene a small workgroup to meet bi-weekly to review the details and history of the cases identified to try to isolate the cause of the errors, and once we determine the cause, will work with the necessary parties/stakeholders to develop an approach to avoid the situation from repeating itself. First meeting will be 2nd week of April to identify the appropriate parties to include and come up with meeting goal and agenda. ACS Case No. 1 The audit reviewed a child care case relating to an older Fair Hearing which had not been closed timely per the original State Fair Hearing decision, which had been issued prior to FY22. ACS' Child and Family Well-Being (CFWB) division had previously instituted a new Quality Assurance review of pending Fair Hearing cases and through this QA review had already identified and closed the case. However, the auditors reviewed an earlier State FY22 claim prior to ACS' identification of the case. Per the new QA protocol, CFWB will be reviewing HRA/DSS systems reports on a monthly basis, identify any questioned cases and take appropriate follow-up action. CFWB is also preparing new written guidelines. Case No. 2 In one child care case, ACS was not able to provide eligibility documentation. Further ACS research determined a systems coding inconsistency. ACS procedure is to run reports to identify inconsistencies with programmatic codes and review any flagged cases prior to submission of claims to the State. However, in this instance, the case was not identified in the report. ACS will propose creation of a new exception report with a more refined level of detail to identify any case coding inconsistencies and allow follow up to ensure complete case eligibility support for any flagged cases. ACS will work with HRA/DSS on report development. Anticipated Completion Date HRA Beginning Q2 2023 ? Convene workgroup Beginning Q3 2023 ? Completion date ACS Initiated in FY 2022 ? New quality assurance (QA) review To be completed in FY 2023 ? New written guidelines and refined reporting Person(s) Responsible for Implementation HRA Ramon E. Flores Assistant Deputy Commissioner, Family Independence Administration (FIA) FloresRa@hra.nyc.gov ACS For new QA and guidelines Isabel Villegas Executive Director, Policy & Compliance Division of Child and Family Well-Being (212) 393-5325 For refined reporting Pauline Young Assistant Commissioner for Claiming and Revenue Division of Finance (212) 676-8803

View Audit 22749 Questioned Costs: $1

Finding 24633 (2022-006)

None 2022

The City of New York

NY

Matching / Level of Effort / Earmarking Internal Control / Segregation of Duties Questioned Costs § 200.514

Finding No. 2022-006 Department(s) New York City Department of Health and Mental Hygiene Program(s) Assistance Listing Number 93.069, Public Health Emergency Preparedness Corrective Action(s) DOHMH?s Office of Emergency Preparedness and Response (OEPR) and Division of Finance are in agreement with t...

Finding No. 2022-006 Department(s) New York City Department of Health and Mental Hygiene Program(s) Assistance Listing Number 93.069, Public Health Emergency Preparedness Corrective Action(s) DOHMH?s Office of Emergency Preparedness and Response (OEPR) and Division of Finance are in agreement with the recommendations. Non-compliance with the level of effort requirement occurred because the agency received additional federal funds as part of the American Rescue Plan and utilized those funds to cover city tax levy costs in FY22. This was a one-time offset. In addition to strengthening and maintaining internal controls, DOHMH plans to revisit how maintenance of effort is calculated for the PHEP award, as it is currently calculated using a 15-year-old formula that has not been tweaked to ensure it accurately captures health care preparedness and public health security spending. DOHMH will close out a 5-year project period on the PHEP award in 2024 and plans to revisit the current maintenance of effort formula in advance of applying for the new project period. Anticipated Completion Date June 2024 Person(s) Responsible for Implementation Monica Marquez Assistant Commissioner, OEPR (347) 396-2730 Wai ting Yu Assistant Commissioner, Central Finance (347) 396-6214

View Audit 22749

Finding 24622 (2022-010)

Significant Deficiency 2022

The City of New York

NY

Equipment & Real Property Management Internal Control / Segregation of Duties § 200.303 § 200.313

Finding No. 2022-010 Department(s) New York City Police Department Program(s) Assistance Listing Number 16.922, Equitable Sharing Program Corrective Action(s) The NYPD has, and continues to, implement policies and procedures to ensure that there are multiple levels of inventory asset verification a...

Finding No. 2022-010 Department(s) New York City Police Department Program(s) Assistance Listing Number 16.922, Equitable Sharing Program Corrective Action(s) The NYPD has, and continues to, implement policies and procedures to ensure that there are multiple levels of inventory asset verification and validation completed in accordance with Federal requirements. To that end, the NYPD is in the midst of discussions to utilize the NYPD?s Grants Unit?s Grants Tracking System (GTS) for equipment purchased with Asset Forfeiture funds. Currently, the GTS only tracks the inventory for a subset of equipment purchased with federal grant funding. While these discussions have not yet been finalized, the GTS has the ability to provide the type of robust inventory oversight necessary. This includes features such as an automatic email to the command points of contact (POC) for each item that needs to be inspected and checked into the system at least one month prior to the expiration of the inventory due date. If this solution is not deemed feasible, however, the NYPD will look to obtain a system exclusively for Asset Forfeiture item inventorying purposes. In addition, on a regular basis, the Management and Budget Analysis Unit will email the command POCs reminding them of their Asset Forfeiture Inventory responsibilities. For the four items referenced above, inventory verifications were indeed performed; however, the NYPD was unable to provide tangible date-specific documentation. As such, a standardized protocol is being developed for use by all commands with Asset Forfeiture equipment items to ensure that this documentation will exist going forward, and will be distributed upon any new Asset Forfeiture equipment purchases. In addition, this documentation will be the basis for updates/entries into the GTS or any other future system. Once the standardized protocol and systems are fully established, we do not anticipate any further Inventory Verification issues as long as the period referenced is after implementation. Anticipated Completion Date Spring/Summer 2023 Person(s) Responsible for Implementation Kristine Ryan Deputy Commissioner, Management and Budget (646) 610-6670

View Audit 22749

Finding 24621 (2022-009)

Significant Deficiency 2022

The City of New York

NY

Equipment & Real Property Management Internal Control / Segregation of Duties § 200.303 § 200.313

Finding No. 2022-009 Department(s) New York City Department of Investigation Program(s) Assistance Listing Number 16.922, Equitable Sharing Program Corrective Action(s) Based on the recommendations outlined in the audit report, we have developed the following corrective action plan to address the de...

Finding No. 2022-009 Department(s) New York City Department of Investigation Program(s) Assistance Listing Number 16.922, Equitable Sharing Program Corrective Action(s) Based on the recommendations outlined in the audit report, we have developed the following corrective action plan to address the deficiencies and improve our equipment and real property management compliance requirements. The following steps will be taken: ? Strengthen Controls over the Inventory Process: We will develop and implement additional controls over the inventory process to ensure that equipment dispositions are updated in the equipment records, inventories performed are reconciled back to equipment records, and biennial inventory counts are consistently performed over all equipment within the required timeframe. ? Develop and Implement a Standard Operating Procedure: We will develop and implement a standard operating procedure that outlines the process for conducting physical inventory counts, reconciling the inventory records with the equipment records, and documenting the review and approval of each inventory performed. ? Training for Personnel: We will provide training to all personnel involved in the equipment and real property management process, including property officers and program managers, to ensure they are aware of the new controls and standard operating procedure, and understand their roles and responsibilities related to compliance requirements. ? Continuous Monitoring: We will implement a continuous monitoring program to ensure that the new controls and procedures are being followed, and to identify any areas for improvement. The agency is actively pursuing a centralized inventory management system to improve the effectiveness of inventory management. These corrective actions will help to ensure that federally funded equipment is accurately recorded on inventory records, and that inventory is not misplaced, misappropriated, or otherwise disposed outside of the requirements of federal guidelines. We appreciate the opportunity to address the audit findings, and we are committed to implementing these corrective actions. Anticipated Completion Date September 2023 Person(s) Responsible for Implementation Caspar Barrow Director of Finance (212) 825-0666 Orane Gordon Internal Auditor (212) 825-0123

View Audit 22749

Finding 24620 (2022-014)

Significant Deficiency 2022

The City of New York

NY

Internal Control / Segregation of Duties Special Tests & Provisions Questioned Costs § 200.303

Finding No. 2022-014 Department(s) New York City Human Resources Administration Program(s) Assistance Listing Number 14.241, Housing Opportunities for Persons with AIDS Corrective Action(s) The auditors selected a non-statistical sample of nineteen (19) units that were subject to an initial inspect...

Finding No. 2022-014 Department(s) New York City Human Resources Administration Program(s) Assistance Listing Number 14.241, Housing Opportunities for Persons with AIDS Corrective Action(s) The auditors selected a non-statistical sample of nineteen (19) units that were subject to an initial inspection by HRA during fiscal 2022 and noted that for three (3) selections, HRA was unable to provide a copy of the inspection checklist that was completed by the QA Inspector prior to assistance being provided for the unit. Unfortunately, during the height of the COVID-19 pandemic, many housing vendor staff were working remotely, and a few documents may have been mislaid. To ensure continual compliance with federal HOPWA grant requirements, HRA will enhance its efforts to confirm that housing vendors properly maintain a copy of inspection checklists completed prior to initial move in. Monitoring visits conducted by HRA will include a review of the checklists. Anticipated Completion Date April 2023 and ongoing Person(s) Responsible for Implementation Pamela Xiomara Farquhar Assistant Deputy Commissioner FarquharX@hra.nyc.gov

View Audit 22749

Finding 24619 (2022-013)

Material Weakness 2022

The City of New York

NY

Internal Control / Segregation of Duties Questioned Costs Eligibility § 200.303

Finding No. 2022-013 Department(s) New York City Human Resources Administration Program(s) Assistance Listing Number 14.241, Housing Opportunities for Persons with AIDS Corrective Action(s) Rental assistance payments made on behalf of tenants residing in supportive housing are calculated by contract...

Finding No. 2022-013 Department(s) New York City Human Resources Administration Program(s) Assistance Listing Number 14.241, Housing Opportunities for Persons with AIDS Corrective Action(s) Rental assistance payments made on behalf of tenants residing in supportive housing are calculated by contracted supportive housing vendors, not directly by HRA. On December 20, 2022, agency staff received a formal notice informing them that the agency will cease issuing to clients a notification of their rent payment responsibility for agency-contracted supportive housing programs, as this is the responsibility of the supportive housing vendor. To ensure continual compliance with federal HOPWA grant requirements, HRA will enhance its monitoring of contract vendors during annual monitoring visits. This includes sampling of rent payments made to verify calculation of rent payment is appropriate, payments made are timely, and tenant income documentation is appropriately budgeted in rent payment calculation. Monitoring visits will also include a review of each client?s Notice of Rights, which describes rent information, including the client?s share, as per the Local Law that went into effect May 9, 2022. Anticipated Completion Date April 2023 Person(s) Responsible for Implementation Pamela Xiomara Farquhar Assistant Deputy Commissioner FarquharX@hra.nyc.gov

View Audit 22749 Questioned Costs: $1

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