Corrective Action Plans

Finding 22388 (2022-001)

Material Weakness 2022

Montezuma Community School District

IA

Internal Control / Segregation of Duties

We will continue to review our procedures and implement additional controls where possible.

View Audit 21053

Finding 22386 (2022-001)

Significant Deficiency 2022

Magnolia Housing Corporation of Natchitoches, Inc.

LA

Questioned Costs HUD Housing Programs Reporting

Magnolia Manor has taken steps to assure that the Replacement Reserve account will not be underfunded again by making the transfer an automatic transfer from the Operating account to the Replacement Reserve account. The amount that the account was underfunded was deposited on September 15, 2022.

View Audit 20670

Finding 22383 (2022-001)

Significant Deficiency 2022

Christian Community Action

TX

Allowable Costs / Cost Principles Internal Control / Segregation of Duties Significant Deficiency

Christian Community Action respectfully submits the following corrective action plan for the year ended June 30, 2022. Audit period: 07/01/2021 ? 06/30/2022. The finding from the schedule of findings and questioned costs is discussed below. The finding is numbered consistently with the number assign...

Christian Community Action respectfully submits the following corrective action plan for the year ended June 30, 2022. Audit period: 07/01/2021 ? 06/30/2022. The finding from the schedule of findings and questioned costs is discussed below. The finding is numbered consistently with the number assigned in the schedule. FINDINGS?FEDERAL AWARD PROGRAMS AUDITS U.S. Department of Housing and Urban Development 2022-001 Emergency Shelter Grant Program ? Assistance Listing No. 14.231 Recommendation: The organization should establish a process for review of the calculation of the rate per hour used to charge wages to the grant as well as a process for review of the calculation that is used to apply total salaries under the program to applicable grants. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: I. A process has been implemented for the CFO Consultant to perform and document review of the calculation of the rate per hour used to charge wages to the grant. II. A process has been implemented for the Controller to perform and document review of payroll data used to calculate the rate per hour. III. A process is being implemented for the Controller and CFO Consultant to perform and document review the report of total salaries and fringe benefits applied to the applicable grant program. Names of the contact persons responsible for corrective action: Janet Moore Planned completion date for corrective action plan: 02/28/2023 If the U.S. Department of Housing and Urban Development has questions regarding this plan, please call Janet Moore at 972-219-4375.

View Audit 20297

Finding 22382 (2022-001)

Material Weakness 2022

Little Buns, Inc.

IN

Material Weakness Reporting Matching / Level of Effort / Earmarking

Corrective Action Plan September 26, 2023 Little Buns, Inc. (the "Organization") respectfully submits the following corrective action plan ("CAP") for the year ended December 31, 2022. Independent Public Accounting Firm Pettit & Company, LLC 3725 E. Southport Rd., Suite A Indianapolis, IN 4622...

Corrective Action Plan September 26, 2023 Little Buns, Inc. (the "Organization") respectfully submits the following corrective action plan ("CAP") for the year ended December 31, 2022. Independent Public Accounting Firm Pettit & Company, LLC 3725 E. Southport Rd., Suite A Indianapolis, IN 46227 Period covered by the audit: Year ended 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. Finding 2022-001 Financial Close Process Type of Finding: Material Weakness in Internal Control over Financial Reporting Condition and Context: The financial statements provided by management did not include all of the activity of the Organization. There was another bank account and loan that was not recorded on the financial statements that were provided to the auditor. Corrective Action(s) Taken or Planned: In order to fully engage with non-profit regulation, Little Buns, Inc. will create transparency of all non-profit accounts, including fundraising, investment and grant streams by creating a Board of Directors that has knowledge of non-profit regulations. All decisions regarding Little Buns, Inc will flow through the Board of Directors.

View Audit 20797

Finding 22381 (2022-002)

Material Weakness 2022

Little Buns, Inc.

IN

Questioned Costs Allowable Costs / Cost Principles Material Weakness

Finding 2022-002 Internal Control Over Activities Allowed or Unallowable (ALN# 59.008 COVID-19 Disaster Assistance Loans) Type of Finding: Material Weakness in Internal Control Over Compliance Condition and Context: During the year ended December 31, 2022, the Executive Director was paid a one-tim...

Finding 2022-002 Internal Control Over Activities Allowed or Unallowable (ALN# 59.008 COVID-19 Disaster Assistance Loans) Type of Finding: Material Weakness in Internal Control Over Compliance Condition and Context: During the year ended December 31, 2022, the Executive Director was paid a one-time payment in the amount of $60,000 and another $50,000 was paid to an LLC that is owned by the Executive Director?s daughter. There were no services provided to support these payments. Action(s) taken or planned on the finding: Little Buns, Inc. will provide oversight with a paid position of a CPA controller to oversee the fundraising efforts for compliance with all non-profit regulations. In order to fully engage with non-profit regulation, Little Buns, Inc. will create transparency of all non-profit accounts, including fundraising, investment and grant streams. All funds deemed inappropriate will be paid back by the Executive Director. If there are any questions regarding this plan, please call the undersigned at 317-663-8276. Sincerely, Maxine Jeglum, Director

View Audit 20797 Questioned Costs: $1

Finding 22380 (2022-003)

None 2022

Blanchester Local School District

OH

Allowable Costs / Cost Principles Questioned Costs Internal Control / Segregation of Duties § 200.303 § 200.403

The district will implement procedures to ensure that personnel paid from federal funding complete single funding certifications and/ or time and effort logs.

View Audit 20899 Questioned Costs: $1

Finding 22328 (2022-001)

Significant Deficiency 2022

Bandon Community Health Center Dba Coast Community Health Center

OR

Special Tests & Provisions Questioned Costs Significant Deficiency

November 11, 2022 Fr: Linda Maxon Re: Single Audit Finding: CliftonLarsonAllen LLP Audit Finding #2022-001, for Coast Community Health Centers fiscal year audit period ending 1/31/2022 With respect to the audit finding, Coast Community Health Center will address the following: ? Review and further d...

November 11, 2022 Fr: Linda Maxon Re: Single Audit Finding: CliftonLarsonAllen LLP Audit Finding #2022-001, for Coast Community Health Centers fiscal year audit period ending 1/31/2022 With respect to the audit finding, Coast Community Health Center will address the following: ? Review and further develop trainings for front-desk staff on the appropriate procedures to assist in preparation and required completion of the sliding fee applications and proof of income forms. ? Review and further develop trainings for staff on appropriate evaluation of the forms and determining the appropriate category on which to place patients regarding the sliding fee program ? Review and further develop trainings for staff on monitoring the periodic update of the patients sliding fee application and related information ? Review and further develop trainings for staff on coordinating initial placement and subsequent updates with billing so the billing system is consistent with the supporting information for the sliding fee program ? Review document retention procedures regarding the sliding fee program to ensure each patient participating in the program has documentation supporting their classification within the billing system ? Finance staff will, at minimum quarterly, review and audit a sample of sliding fee patients to ensure that discounts are being applied appropriately and that documentation of eligibility is being collected This should address the deficiencies noted in correct placement of patients on the sliding fee scale and the issue of missing supporting documentation. Respectfully Submitted, Linda S. Maxon Chief Executive Officer

View Audit 26343

Finding 22324 (2022-001)

Significant Deficiency 2022

Valley of the Sun School Properties Four

AZ

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

The project has been reimbursed $51 for the expenditure paid for another property. We have re-trained the staff on the proper protocol and review procedures for the payment of expenditures for each of the properties we manage.

View Audit 26339 Questioned Costs: $1

Finding 22320 (2022-002)

Significant Deficiency 2022

Haven - Violence Prevention and Support Services

NH

Internal Control / Segregation of Duties

2022-002: Wage Approvals Wage rate approvals support the wages charged to the grants. Four wage approvals could not be located by the Office Manager. We recommend that wage rate forms be properly approved by the Executive Director and filed in the employee's file. Action Taken: Future documentati...

2022-002: Wage Approvals Wage rate approvals support the wages charged to the grants. Four wage approvals could not be located by the Office Manager. We recommend that wage rate forms be properly approved by the Executive Director and filed in the employee's file. Action Taken: Future documentation of employee wage changes shall be in the sole custody of the Office Manager (HR) who will create a master payroll sheet for approval by the Executive Director. It shall be the responsibility of the Office Manager to execute the document(s) and ensure all required signatures have been obtained by the employee and their supervisor and that proper filing of the document has occurred.

View Audit 24945

Finding 22319 (2022-001)

Significant Deficiency 2022

Haven - Violence Prevention and Support Services

NH

Reporting Internal Control / Segregation of Duties

2022-001: Financial Statement Preparation HAVEN does not have an internal control policy in place over annual financial reporting that would enable management to prepare its annual financial statements and ensure related footnote disclosures are complete and presented in accordance with generally ac...

2022-001: Financial Statement Preparation HAVEN does not have an internal control policy in place over annual financial reporting that would enable management to prepare its annual financial statements and ensure related footnote disclosures are complete and presented in accordance with generally accepted accounting principles. Management should continue to review and approve the annual financial statements and the related footnote disclosures. Action Taken: We are moving forward with exploring what needs to be in place for continuing education and time and resources to implement an internal control policy that would make the financial statement preparation and review an internal function by the Finance Director.

View Audit 24945

Finding 22318 (2022-001)

Significant Deficiency 2022

Nebraska Methodist Health System

NE

Questioned Costs Reporting Matching / Level of Effort / Earmarking § 200.303

Finding 2022 001 Corrective Action Plan: Due to the cumulative nature of lost revenues, amended reports are not allowed and future reports should include the accurate information. The Health System will accurately present lost revenues and allowable expenditures in the period 5 PRF rep...

Finding 2022 001 Corrective Action Plan: Due to the cumulative nature of lost revenues, amended reports are not allowed and future reports should include the accurate information. The Health System will accurately present lost revenues and allowable expenditures in the period 5 PRF reports. We also plan to improve our report review process by reconciling all information in the report even those amounts from prior period reports. Contact Person: Teri Larsen, System Controller Anticipated Completion Date: September 30, 2023

View Audit 19517 Questioned Costs: $1

Finding 22306 (2022-003)

Significant Deficiency 2022

Cayuga Counseling Services, Inc.

NY

Internal Control / Segregation of Duties Reporting

Cayuga Counseling Services, Inc. has a process for the review and processing of payroll. Each payroll the included form is utilized to ensure all checks have been completed prior to processing payroll. This is utilized by Lynn Smith to verify all information is correct before it is processed. The ...

Cayuga Counseling Services, Inc. has a process for the review and processing of payroll. Each payroll the included form is utilized to ensure all checks have been completed prior to processing payroll. This is utilized by Lynn Smith to verify all information is correct before it is processed. The responsibilities of preparing/processing payroll is as follows:1. all staff are responsible for preparing and signing their PARS. 2. Management is required to turn their assigned supervisee's approved PARS with their signature and date attesting they have reviewed them to the accounting assistant by noon on mondays on payroll weeks. 3. The Accounting assistant reviews the PARS for accuracy ensuring they match what is in payentry and include the correct dates, all required signatures and dates. 4. once they are reviewed, they are provided to the senior accounting assistant who enters to allocation information into the payentry system. 5. prior to finalizing payroll, the executive administrative assistant reviews the PARS against payentry to make sure all information is accurate. 6. after payroll processes a journal entry is prepared by the executive administrative assistant. 7. the deputy director reviews the entry and books it in blackbaud

View Audit 23008

Finding 22305 (2022-002)

Material Weakness 2022

Cayuga Counseling Services, Inc.

NY

Reporting Internal Control / Segregation of Duties

The Deputy director will review all voucher reconciliations at the time of vouchering (monthly or quarterly) to identify the need for budget modifications. In addition, the Directors will be provided with training on budgets, how to read them and what to look for and will be provided with budget to...

The Deputy director will review all voucher reconciliations at the time of vouchering (monthly or quarterly) to identify the need for budget modifications. In addition, the Directors will be provided with training on budgets, how to read them and what to look for and will be provided with budget to actual reports monthly to review. Adjustments to programs will be made in real time and a final reconciliation will be done prior to closing out any grants during the year.

View Audit 23008

Finding 22263 (2022-001)

Significant Deficiency 2022

School District of Westfield

WI

Internal Control / Segregation of Duties Procurement, Suspension & Debarment Eligibility

Finding #2022-001- Segregation of Duties (Prior Year Finding #2021-001) Condition: A properly designed system of internal control includes adequate staffing, policies, and procedures to properly segregate duties. This includes systems that are designed to limit access or control of any one individu...

Finding #2022-001- Segregation of Duties (Prior Year Finding #2021-001) Condition: A properly designed system of internal control includes adequate staffing, policies, and procedures to properly segregate duties. This includes systems that are designed to limit access or control of any one individual to your government?s assets, and to achieve a higher likelihood that errors or irregularities in your processes would be discovered by your staff. There are key controls related to significant transaction cycles that are important in reducing the risk of errors or irregularities. At this time, the District does not have the following controls in place: -Persons processing accounts payable are not always separate from those ordering or receiving goods or services. -Persons initiating electronic fund transfers are not separate from those authorizing, confirming, or reconciling the transactions. -There are no procedures in place for review and approval of new vendors. -Persons preparing the payroll also maintain employee records, change employee rates, and change data in the payroll system. -The person reviewing free and reduced food service eligibility can also modify information entered into the system to determine eligibility. -Account reconciliations are not performed by someone independent of the processing of transactions in the account. Effect: Errors or intentional fraud could occur and not be detected timely by other employees in the normal course of their responsibilities as a result of the lack of segregation of duties. Cause: Limited number of personnel. 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 has the ability to both make and conceal an error, whether such error is intentional or unintentional. Recommendation: We recommend that the District 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 the office staff in an attempt to bring about a more effective segregation of duties. The Building Principals and the Business Manager approve purchase orders and the Business Manager approves monthly accounts payable checks. Also, the Building Principals or department supervisors approve payroll timesheets prior to processing payroll. The payroll along with the time sheets are then approved by the Business Manager. The Business Manager, Building Principals, and department supervisors will continue to monitor transactions of the District. Contact Person: Greg Benz Anticipated Completion: Not applicable

View Audit 27055

Finding 22260 (2022-004)

Significant Deficiency 2022

Oblong Cusd #4

IL

Subrecipient Monitoring Cash Management Reporting

UNITED STATED DEPARTMENT OF EDUCATION Education Stabilization Fund? 84.425D/84.425W Corrective Action Plan ? Noncompliance with Reporting Requirements Finding No.: 2022-004 Condition: The District has inadequate controls over reviewing and approving quarterly ?historical expenditure reports? filed w...

UNITED STATED DEPARTMENT OF EDUCATION Education Stabilization Fund? 84.425D/84.425W Corrective Action Plan ? Noncompliance with Reporting Requirements Finding No.: 2022-004 Condition: The District has inadequate controls over reviewing and approving quarterly ?historical expenditure reports? filed with the Illinois State Board of Education. Plan: The superintendent will review and approve quarterly ?historical expenditure reports? and supporting documentation on a regular basis prior to electronic submissions. Corresponding documents will be manually signed and dated to indicate approval. Anticipated Date of Completion: January 1, 2023 Management Response: The District intends to implement the recommendations in FY 2023. Name of Contact Person: Michelle Meese, District Superintendent (P): 618-592-3933

View Audit 26281

Finding 22253 (2022-003)

Significant Deficiency 2022

Oblong Cusd #4

IL

Cash Management Reporting School Nutrition Programs

UNITED STATED DEPARTMENT OF AGRICULTURE Child Nutrition Cluster ? 10.553/10.555/10.559 Corrective Action Plan ? Noncompliance with Reporting Requirements Finding No.: 2022-003 Condition: The District has inadequate controls over reviewing and approving child nutrition monthly ?claims summary? forms....

UNITED STATED DEPARTMENT OF AGRICULTURE Child Nutrition Cluster ? 10.553/10.555/10.559 Corrective Action Plan ? Noncompliance with Reporting Requirements Finding No.: 2022-003 Condition: The District has inadequate controls over reviewing and approving child nutrition monthly ?claims summary? forms. Plan: The administrative assistant will prepare the ?claims summary? forms by obtaining the number of meals served directly from the "Food Service: Reimbursement" reports on Skyward?s website. The Treasurer or Superintendent will also review the "claims summary" forms and supporting documentation for accuracy prior to the electronic submissions. Corresponding documents will be manually signed and dated to indicate approval. Anticipated Date of Completion: January 1, 2023 Management Response: The District intends to implement the recommendations in FY 2023. Name of Contact Person: Michelle Meese, District Superintendent (P): 618-592-3933

View Audit 26281

Finding 22251 (2022-001)

Material Weakness 2022

City of Portland

IN

Internal Control / Segregation of Duties Matching / Level of Effort / Earmarking Special Tests & Provisions § 200.303

FINDING 2022-001 Contact Person Responsible for Corrective Action: Lori Phillips, Clerk Treasurer Contact Phone Number: 260-726-9395 x 224 Views of Responsible Official: We concur with the finding. Description of Corrective Action Plan: Moving forward, management will implement a stronger internal c...

FINDING 2022-001 Contact Person Responsible for Corrective Action: Lori Phillips, Clerk Treasurer Contact Phone Number: 260-726-9395 x 224 Views of Responsible Official: We concur with the finding. Description of Corrective Action Plan: Moving forward, management will implement a stronger internal controls system over Federal Grants. This includes segregation of duties for proper oversight and approval. More specifically, management will receive and review all certified payrolls from the contractor to verify that the Wage Rate Requirements are being adhered to. Anticipated Completion Date: 8/28/2023

View Audit 18096

Finding 22246 (2022-001)

Significant Deficiency 2022

Missouri Community Action Network

MO

Subrecipient Monitoring Questioned Costs Matching / Level of Effort / Earmarking § 200.302

Finding Reference Number: 2022-001 Federal Agency: U.S. Department of Health and Senior Services Program Name: Temporary Assistance for Needy Families Assistance Listing Number: 93.558 Responsible Official: Megan Bania, Executive Director Views of Responsible Individuals: The Board of Directors...

Finding Reference Number: 2022-001 Federal Agency: U.S. Department of Health and Senior Services Program Name: Temporary Assistance for Needy Families Assistance Listing Number: 93.558 Responsible Official: Megan Bania, Executive Director Views of Responsible Individuals: The Board of Directors had difficulty filling the position of Finance Director in May of 2022. They hired a firm at the end of May, but the firm received very little support in making the transition to handling the SkillUp program billing from the outgoing Finance Director. Other resignations in the Finance Department left MCAN with no institutional knowledge of the billing process. The existing SkillUp program manager was not responsible and not trained in the financial reporting and billing for the program. The Board has resolved the issue by hiring a new SkillUp program manager and a new executive director.

View Audit 18250 Questioned Costs: $1

Finding 22112 (2022-002)

Significant Deficiency 2022

Memorial Hospital D/b/a Memorial Healthcare

MI

Questioned Costs Allowable Costs / Cost Principles Matching / Level of Effort / Earmarking § 200.303

The items in question were included on the same purchase order as other COVID-19 related supplies and were incorrectly charged to the grant. Going forward, the Organization will ensure the individuals accumulating allowable expenses ensure they understand the nature of all items being charged to ens...

The items in question were included on the same purchase order as other COVID-19 related supplies and were incorrectly charged to the grant. Going forward, the Organization will ensure the individuals accumulating allowable expenses ensure they understand the nature of all items being charged to ensure compliance with the program requirements.

View Audit 25483 Questioned Costs: $1

Finding 22111 (2022-001)

Significant Deficiency 2022

Memorial Hospital D/b/a Memorial Healthcare

MI

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

The error identified during the audit was the result of a miscommunication with HRSA personnel. When management reached out to the agency regarding the recording of excess revenues for certain quarters, the Organization was directed to offset lost revenues in other quarters. This led to the underrep...

The error identified during the audit was the result of a miscommunication with HRSA personnel. When management reached out to the agency regarding the recording of excess revenues for certain quarters, the Organization was directed to offset lost revenues in other quarters. This led to the underreporting of lost revenues. If the Organization has future PRF reporting requirements, these quarters will be revised to reflect the corrected amounts.

View Audit 25483

Finding 22093 (2022-004)

Significant Deficiency 2022

Village of Rantoul

IL

Questioned Costs Reporting Significant Deficiency

The Village agrees with this finding and have made personnel changes to ensure timely filings are completed. The task of overseeing this process has been added to the duties of the Urban Planning Manager, and the Village will have all new operational procedures in place no later than December 31, 2...

The Village agrees with this finding and have made personnel changes to ensure timely filings are completed. The task of overseeing this process has been added to the duties of the Urban Planning Manager, and the Village will have all new operational procedures in place no later than December 31, 2022.

View Audit 19360

Finding 22091 (2022-004)

Significant Deficiency 2022

O'Neill Airport Authority

NE

Subrecipient Monitoring Reporting Internal Control / Segregation of Duties

Corrective Action Plan For the Year Ended July 31, 2022 Finding: 2022-001 Name of Contact Person: Bart Becker, Chairman Corrective Action: The Authority has responded to the condition to the extent possible at this time. The cost would outweigh any benefits received. Proposed Completion Date: Imm...

Corrective Action Plan For the Year Ended July 31, 2022 Finding: 2022-001 Name of Contact Person: Bart Becker, Chairman Corrective Action: The Authority has responded to the condition to the extent possible at this time. The cost would outweigh any benefits received. Proposed Completion Date: Immediately Finding: 2022-002 Name of Contact Person: Bart Becker, Chairman Corrective Action: The Authority relies on the auditor to propose adjustments necessary to prepare the financial statements including the related note disclosures. Management reviews the financial statements and approves all adjustments. Proposed Completion Date: Immediately Finding: 2022-003 Name of Contact Person: Bart Becker, Chairman Corrective Action: Informal control procedures are adequate due to our small size and supervisory activities by the Board. We will adopt any proposed revisions of this process as may be suggested by the auditor. Proposed Completion Date: Immediately Finding: 2022-004 Name of Contact Person: Bart Becker, Chairman Corrective Action: The Authority relies on the auditor to propose adjustments necessary to prepare the schedule of expenditures of federal awards including the related note disclosures. The Authority reviews the schedule of expenditures of federal awards and approves all adjustments. Proposed Completion Date: Immediately

View Audit 21404

Finding 22087 (2022-002)

Material Weakness 2022

Low Rent Housing Agency of Grinnell, Iowa

IA

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

Section III: Finding 2022-002 Internal Control Structure Material Weakness ? Eligibility, Reporting and Special Tests and Provisions, Repeat Finding 2022-001 Agree with finding. The Authority is relatively small with limited administrative staff. Further, the Board of Commissioners is a volunteer...

Section III: Finding 2022-002 Internal Control Structure Material Weakness ? Eligibility, Reporting and Special Tests and Provisions, Repeat Finding 2022-001 Agree with finding. The Authority is relatively small with limited administrative staff. Further, the Board of Commissioners is a volunteer oversight board and not a managing board and does not have the time or expertise to provide the necessary services to correct the internal control deficiencies noted. The Board has reviewed the issue and determined that there are no additional procedures which can be reasonably done to eliminate the deficiencies and accepts them.

View Audit 20049 Questioned Costs: $1

Finding 22081 (2022-002)

Material Weakness 2022

Housing Authority of the County of Marin

CA

Questioned Costs HUD Housing Programs Eligibility

Finding 2022-002: Federal Agency: U.S. Department of Housing and Urban Development Federal Program Titles: Housing Voucher Cluster - Section 8 Housing Choice Vouchers - Mainstream Vouchers Federal Catalog Numbers: 14.871, 14.879 Noncompliance ? E. Eligibility ? Tenant Files Non Compliance Material t...

Finding 2022-002: Federal Agency: U.S. Department of Housing and Urban Development Federal Program Titles: Housing Voucher Cluster - Section 8 Housing Choice Vouchers - Mainstream Vouchers Federal Catalog Numbers: 14.871, 14.879 Noncompliance ? E. Eligibility ? Tenant Files Non Compliance Material to the Financial Statements: Yes Material Weakness in Internal Control over Compliance for Eligibility Criteria: Tenant Files. The PHA must do the following: As a condition of admission or continued occupancy, require the tenant and other family member to provide necessary information, documentation, and releases for the PHA to verify income eligibility (24 CFR sections 5.230, 5.609, and 982.516). These files are required to be maintained and available for examination at the time of audit. Condition: Based upon inspection of the Authority?s files and on discussion with management, there were documents that were unavailable for examination at the time of audit. Context: There are approximately 2,313 units. Of a sample size of forty-five (45) tenant files, the following was noted: - HUD 9886 Form was missing in 1 file - Verification of income was missing in 2 files - Verification of assets was missing in 1 file - HUD 50058 annual recertification was missing in 4 files - Original Application was missing in 5 files Our sample size is statistically valid. Known Questioned Costs: $215,596 Cause: There is a material weakness in internal controls over the compliance for the eligibility type of compliance related to the maintenance of tenant files. The Authority has not properly considered, designed, implemented, maintained, and monitored a system of internal controls that assures the program is in compliance. Effect: The Housing Voucher Cluster is in material non-compliance with the eligibility type of compliance related to the maintenance of tenant files. Recommendation: We recommend the Authority design and implement internal control procedures that will assure compliance with the Uniform Guidance and the compliance supplement. Finding 2022-002 (continued): Authority Response: MHA agrees with the findings that some tenant file documents were essentially unavailable for examination at the time of the audit and that a system of consistent document filing, and regular file reviews are necessary. The ?missing? documents were subsequently found but in various electronic locations, thereby making them not easily accessible to the auditors. There were also timing issues, in that a recertification was begun in 2022 but not completed or made effective until 2023 once all documents had been received. ? The tenant documents will now be filed in one place, in Yardi as attachments to the Family Detail Info (FDI) screen in the proper subfolder depending upon subject (e.g. Assets, Income, Member). MHA is working to create and label the subfolders needed for this purpose. ? The contractor and internal staff will receive detailed instructions on how to file all documents, from the receipt of documents from the tenant to the commemoration of the transaction in a HUD Form 50058. All will be required to sign a confirmation they received such instructions. ? All new staff responsible for collecting documents, processing transactions and creating 50058s will obtain training in the correct system of filing such documents as part of their on-boarding packet of trainings. ? MHA will institute a quality control procedure for the regular review of random sample files at least quarterly to ensure that the filing system is being followed and the documents are complete and readily found. Views of responsible officials and planned corrective action: Susanne Joyce, HCV Program Manager, is responsible for implementing this corrective action by December 31, 2023.

View Audit 19934 Questioned Costs: $1

Finding 22080 (2022-001)

Significant Deficiency 2022

Housing Authority of the County of Marin

CA

Questioned Costs HUD Housing Programs Significant Deficiency

Finding 2022-001: Federal Agency: U.S. Department of Housing and Urban Development Federal Program Titles: Section 8 Housing Choice Vouchers Program Federal Catalog Numbers: 14.871 Noncompliance ? N. Special Tests and Provisions ? Housing Quality Standards Non Compliance Material to the Financial S...

Finding 2022-001: Federal Agency: U.S. Department of Housing and Urban Development Federal Program Titles: Section 8 Housing Choice Vouchers Program Federal Catalog Numbers: 14.871 Noncompliance ? N. Special Tests and Provisions ? Housing Quality Standards Non Compliance Material to the Financial Statements: No Significant Deficiency in Internal Control over Compliance for Special Tests and Provisions Finding 2022-001 (continued): Criteria: Housing Quality Standards Inspections. The PHA must inspect the unit leased to a family at least annually to determine if the unit meets the Housing Quality Standards (HQS) and the PHA must conduct quality control re-inspections. The PHA must prepare a unit inspection report (24 CFR sections 982.158(d) and 982.405(b)). For units that fail inspection the PHA must correct all life threatening HQS deficiencies within 24 hours and all other deficiencies within 30 days. Condition: Based upon inspection of the Authority?s files and on discussions with management, the Authority did not properly abate two (2) out of thirty-one (31) annual failed inspections selected for testing. Context: The Authority did not properly abate two (2) out of thirty-one (31) failed inspections selected for testing. As a result, the Authority was not in compliance with Housing Quality Standards (HQS) as required by 24 CFR sections 982.158(d) and 982.405(b). Known Questioned Costs: $1,925 Cause: There is a significant deficiency in internal controls over compliance for the special tests and provisions type of compliance related to HQS inspections. The Authority has not properly considered, designed, implemented, maintained and monitored a system of internal controls that assures the program is in compliance. Effect: The Section 8 Housing Choice Vouchers Program is in non-compliance with the special tests and provisions type of compliance related to HQS inspections. Recommendation: We recommend the Authority design and implement internal control procedures that will assure compliance with the Uniform Guidance and the compliance supplement. Authority Response: MHA Assistant Program Manager will hold Bi-Weekly inspection meetings with the contractor to discuss compliance with inspection policies and procedures, to confirm that software is running properly, and to confirm that inspections-related payment holds and abatements/inspection cures comply with MHA?s policies. The contractor is to notify MHA immediately if any non-compliance inspections-related payment hold or non-abatement occurs. Views of responsible officials and planned corrective action: Susanne Joyce, HCV Program Manager, is responsible for implementing this corrective action by December 31, 2023.

View Audit 19934 Questioned Costs: $1

Corrective Action Plans

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