Corrective Action Plans

Finding 503645 (2022-001)

Significant Deficiency 2022

Hospital Comunitario Buen Samaritano, Inc.

PR

Reporting Significant Deficiency Matching / Level of Effort / Earmarking § 200.512

Finding No. 2022-001-Reporting-Late filing of data collection form and reporting package We agree that we have not been reporting on a timely basis current findings and results. We have established a schedule to ensure that the submission of all required annual reports is strictly adhered to. To thi...

Finding No. 2022-001-Reporting-Late filing of data collection form and reporting package We agree that we have not been reporting on a timely basis current findings and results. We have established a schedule to ensure that the submission of all required annual reports is strictly adhered to. To this end, we aim to complete the year-end closing within the first 20 days after the end of the calendar year, in order to complete the audit within the first 90 days after the end of the calendar year. This Plan must be implemented no later than December 27, 2024.

View Audit 325833

Finding 503562 (2022-005)

Material Weakness 2022

Kagman Community Health Center, Inc.

MP

Questioned Costs Subrecipient Monitoring Matching / Level of Effort / Earmarking

Finding No. 2022-005 KCHC disagrees with the finding that it is in noncompliance with the applicable period of performance requirements. The sample request was received after the August 19 meeting with the CEO and board representative, during which it was noted that no further samples would be acce...

Finding No. 2022-005 KCHC disagrees with the finding that it is in noncompliance with the applicable period of performance requirements. The sample request was received after the August 19 meeting with the CEO and board representative, during which it was noted that no further samples would be accepted as the audit had extended beyond one year. The delays were due to staffing challenges both on the part of the auditor and within KCHC. In FY 2025, KCHC has started the following corrective actions ensuring that all records are systematically filed and digitized for easy retrieval, regardless of changes in staff. This new system allows for seamless access to documents and a clear audit trail: 1. DocuSign for Document Management: In FY2025, KCHC adopted DocuSign to facilitate the management of financial documents. While DocuSign does not automatically upload supporting documents to the accounting software, it provides an efficient way to manage approvals and ensure an audit trail. After approval, the assigned accountant is responsible for manually uploading the supporting documents into the accounting software to ensure they are properly recorded and retrievable for audit purposes. 2. Timely Upload and Filing of Documentation: To address the delays, KCHC has updated its procedures requiring that all financial staff upload supporting documents at the time of expenditure approval or payment. This process will ensure that no documentation is missing or delayed, and all records are maintained in compliance with federal guidelines. 3. Ongoing Monitoring and Reporting: The CFO will oversee quarterly internal audits to ensure that the enhanced recordkeeping system is functioning effectively and that all expenditures continue to comply with the period of performance requirements. Progress will be reported to the Board of Directors to ensure transparency and ongoing compliance. By taking these corrective actions, KCHC will ensure that all expenditures are supported by proper documentation, uploaded timely, and readily available for audit review, preventing any future delays or compliance issues. Implementation Timeline: Completed as of August 31, 2024 with continued updates and monitoring. Responsible person: Arlene Deleon Guerrero, CFO

View Audit 325728 Questioned Costs: $1

Finding 503189 (2022-002)

Material Weakness 2022

City of Manhattan, Kansas

KS

Reporting Internal Control / Segregation of Duties Subrecipient Monitoring § 200.303

Management’s Response (Unaudited) – The Community Development staff is in the process of preparing all outstanding FFATA reports and is developing a compliance checklist to ensure that these reports are filed timely. Corrective Action Plan (Unaudited) – The Community Development staff will create a...

Management’s Response (Unaudited) – The Community Development staff is in the process of preparing all outstanding FFATA reports and is developing a compliance checklist to ensure that these reports are filed timely. Corrective Action Plan (Unaudited) – The Community Development staff will create a checklist to ensure that these reports are filed timely once the agreements with the subrecipients have been approved.

View Audit 325285

Finding 502919 (2022-001)

Significant Deficiency 2022

Astronomical Scoiety of the Pacific

CA

Reporting Equipment & Real Property Management Matching / Level of Effort / Earmarking

Views of Responsible Officials and Corrective Actions: Astronomical Society of the Pacific has retained an accounting firm LTD Global to review and revise our accounting system to better conform to current accounting practices.

View Audit 324909

Finding 502272 (2022-003)

Material Weakness 2022

American Association of Physics Teachers, Inc.

MD

Cash Management Material Weakness Period of Performance § 200.302 § 200.508 § 200.510

Finding 2022-003: Reconciliation of Accounts Federal Program: Research and Development Cluster (Education and Human Resources)Assistance Listing Number and Title: 47.076 STEM Education Name of Federal Agency, Pass Through Entity (when applicable), Award Number and Year: National Science Foundation: ...

Finding 2022-003: Reconciliation of Accounts Federal Program: Research and Development Cluster (Education and Human Resources)Assistance Listing Number and Title: 47.076 STEM Education Name of Federal Agency, Pass Through Entity (when applicable), Award Number and Year: National Science Foundation: 1500529 (9/1/2015 – 8/31/2022), 1640791 (9/15/2016 – 8/31/2022) Condition: The year-end schedules for federal grants receivable, net assets, and for vacation payable were not reconciled and needed to be revised and updated. Views of Responsible Officials and Planned Corrective Actions: The outstanding liability due to NSF of $115,244 will be reimbursed when AAPT files the next drawn down request. Anticipated date of drawn down will be by July 31,2024. The senior accountant will be trained to prepare entries previously prepared by the CFO The senior accountant will reconcile accounts, and provide updated current schedules. The CFO will review and approve the entries and schedules prepared by the Senior accountant. Anticipated Completion Date: 10/15/2024 Responsible Official: Michael Brosnan, CFO

View Audit 324376

Finding 502268 (2022-004)

Significant Deficiency 2022

American Association of Physics Teachers, Inc.

MD

Matching / Level of Effort / Earmarking Procurement, Suspension & Debarment Significant Deficiency § 200.303

Finding 2022-004: Payroll Federal Program: Research and Development Cluster (Education and Human Resources) Assistance Listing Number and Title: 47.076 STEM Education Name of Federal Agency, Pass Through Entity (when applicable), Award Number and Year: National Science Foundation: 1431638 (9/1/2014 ...

Finding 2022-004: Payroll Federal Program: Research and Development Cluster (Education and Human Resources) Assistance Listing Number and Title: 47.076 STEM Education Name of Federal Agency, Pass Through Entity (when applicable), Award Number and Year: National Science Foundation: 1431638 (9/1/2014 – 8/31/2022), 1500529 (9/1/2015 – 8/31/2022), 1624185 (9/16/2016 – 8/31/2022), 1726113 (8/1/2017 – 9/30/2023), 1907950 (7/1/2019 – 6/30/2024), 2141745 (5/1/2022 – 4/30/2027), 2212807 (7/1/2022 – 6/30/2026) Federal Program: Research and Development Cluster (Mathematical and Physical Sciences) Assistance Listing Number and Title: 47.049 Mathematical and Physical Sciences Name of Federal Agency, Pass Through Entity, Award Number and Year: National Science Foundation: 1821372 (10/1/2018 – 9/30/2024 pass through entity American Physical Society) Condition: Payroll approvals for individuals are not always made by individuals who are the employee’s supervisors or are otherwise knowledgeable about their level of effort during the payroll periods paid for. Of the 63 individual payroll payments tested to 12 separate individuals, totaling $105,046 charged to federal grants, we identified 38 total payments to 7 separate individuals, totaling $43,704, where the timesheet was approved by the CFO, who we do not consider to be knowledgeable of the employee’s activities during a given pay period. Five of these seven individuals were full-time employees and the other two were part-time employees. Views of Responsible Officials and Planned Corrective Actions: AAPT has made changes to correctly reflect the employee’s assigned supervisor based on the position and job duties of the employees. Anticipated Completion Date: 04/01/2024 Responsible Official: Michael Brosnan, CFO

View Audit 324376

Finding 502267 (2022-002)

Material Weakness 2022

American Association of Physics Teachers, Inc.

MD

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

Federal Program: Research and Development Cluster (Education and Human Resources) Assistance Listing Number and Title: 47.076 STEM Education Name of Federal Agency, Pass Through Entity (when applicable), Award Number and Year: National Science Foundation: 1431638 (9/1/2014 – 8/31/2022), 1500529 (9/1...

Federal Program: Research and Development Cluster (Education and Human Resources) Assistance Listing Number and Title: 47.076 STEM Education Name of Federal Agency, Pass Through Entity (when applicable), Award Number and Year: National Science Foundation: 1431638 (9/1/2014 – 8/31/2022), 1500529 (9/1/2015 – 8/31/2022), 1624185 (9/16/2016 – 8/31/2022), 1640791 (9/15/2016 – 8/31/2022), 1720869 (5/15/2017 – 4/30/2022), 1726113 (8/1/2017 – 9/30/2023), 1821462 (7/1/2018 – 6/30/2024), 1940925 (1/15/2020 – 12/31/2023), 1907950 (7/1/2019 – 6/30/2024), 2015205 (4/1/2020 – 3/31/2022), 2021059 (10/1/2020 – 9/30/2024), 2141745 (5/1/2022 – 4/30/2027), 2212807 (7/1/2022 – 6/30/2026) Federal Program: Research and Development Cluster (Mathematical and Physical Sciences) Assistance Listing Number and Title: 47.049 Mathematical and Physical Sciences Name of Federal Agency, Pass Through Entity, Award Number and Year: National Science Foundation: 1821372 (10/1/2018 – 9/30/2024 pass through entity American Physical Society), 1834530 (9/1/2018 – 8/31/2025 pass through entity American Physical Society), 1938815 (8/1/2020 – 7/31/2024) Federal Program: Research and Development Cluster (Science) Assistance Listing Number and Title: 43.001 Science Name of Federal Agency, Pass Through Entity: National Aeronautics and Space Administration: NNX16AR36A (8/24/2016 – 8/23/2021 pass through entity Temple University of the Commonwealth System of Higher Education), 80NSSC21K1560 (6/28/2021 – 6/27/2022 pass through entity Temple University of the Commonwealth System of Higher Education), 80NSSC22K1071 (5/23/2022 – 5/22/2023)Condition: The Chief Financial Officer is responsible for posting entries into the accounting system without a second level review, and obtaining all bank statements unopened while also having the ability to add or modify payees and unilaterally initiate and authorize electronic fund transfers such as automated clearing house payments. The CFO is also responsible for opening the mail which may contain payments by check, and can manually reduce receivable balances. Views of Responsible Officials and Planned Corrective Actions: AAPT has instituted the segregation of duties of submitting and approval of electronic payments. The senior accountant has been authorized to submit the ACH/Wire transfer requests. The CFO has the authorization of approval of submitted electronic payments. The change was activated during March, 2024 The staff will be trained on generating journal entries previously prepared by the CFO and supervised and approve by the CFO – completed date May 15, 2024 The administrative assistant of the CEO will come to AAPT twice weekly to process incoming mail and create an initial recordation log of checks or cash received. The administrative assistant will not have access in any system to enter/modify/delete any information related to checks that are received. Anticipated Completion Date: January 2025 Responsible Official: Michael Brosnan, CFO

View Audit 324376

Finding 502069 (2022-005)

Material Weakness 2022

Municipality of Loiza

PR

Questioned Costs Allowable Costs / Cost Principles Matching / Level of Effort / Earmarking § 200.208 § 200.302 § 200.339 § 200.403

The Municipality Administration is committed to identify the control of deficiency that allowed for the deficiency to happen. Additionally, the administration is committed to implementing the correct control structure to prevent the situation from happening in the future. The Municipality Manageme...

The Municipality Administration is committed to identify the control of deficiency that allowed for the deficiency to happen. Additionally, the administration is committed to implementing the correct control structure to prevent the situation from happening in the future. The Municipality Management will continue the search of supporting documentation of the highlighted transactions. New proposed control structure to be evaluated by Municipality for adequacy.

View Audit 324264 Questioned Costs: $1

Finding 502066 (2022-002)

Significant Deficiency 2022

Municipality of Loiza

PR

Reporting Matching / Level of Effort / Earmarking § 200.501 § 200.508 § 200.510 § 200.512 § 200.514

The Municipality Administration is committed to complying with all submissions and has ensured the proper signing of an external auditors firm to comply with such requirements.

View Audit 324264

Finding 501925 (2022-007)

Material Weakness 2022

Hill & Dales General Hospital and Subsidiary

MI

Reporting Material Weakness Matching / Level of Effort / Earmarking

Finding 2022-007 Federal Agency Names: Department of Health and Human Services and Department of Agriculture Program Names: COVID-19 Provider Relief Fund and American Rescue Plan and Community Facilities Loans and Grants Federal Financial Assistance Listings: #93.498 and #10.766 Initial Fiscal Year ...

Finding 2022-007 Federal Agency Names: Department of Health and Human Services and Department of Agriculture Program Names: COVID-19 Provider Relief Fund and American Rescue Plan and Community Facilities Loans and Grants Federal Financial Assistance Listings: #93.498 and #10.766 Initial Fiscal Year Finding Occurred: 2022 Finding Summary: The Corporation does not have the internal control system designed to provide for a complete and accurate schedule of expenditures of federal awards (Schedule) being audited. The Corporation requested Eide Bailly LLP to draft the Schedule. Responsible Individuals: Renee Henry, Corporate Controller Corrective Action Plan: It is not cost effective to have an internal control system designed to provide for the preparation of the Schedule. We will continue to have our auditors prepare the Schedule as part of their single audit. Anticipated Completion Date: Ongoing

View Audit 324085

Finding 501897 (2022-002)

Material Weakness 2022

Access, INC

CA

Questioned Costs Cash Management Material Weakness § 200.303

Management will undertake the following corrective actions to address the material weakness identified: 1.Provide additional training to staff involved in payroll processing. 2.Establish procedures and implement more precise controls to ensure that expenditures are properly reviewed and approved bef...

Management will undertake the following corrective actions to address the material weakness identified: 1.Provide additional training to staff involved in payroll processing. 2.Establish procedures and implement more precise controls to ensure that expenditures are properly reviewed and approved before being charged to a federal award.

View Audit 324040 Questioned Costs: $1

Finding 501764 (2022-004)

Significant Deficiency 2022

Isuroon

MN

Reporting Special Tests & Provisions Matching / Level of Effort / Earmarking

To rectify the audit finding concerning the untimely submission of financial statements to the SBA as mandated by the EIDL agreement, Isuroon will prioritize the immediate filing of the required documentation with the SBA to mitigate any potential risks associated with non-compliance. This proactive...

To rectify the audit finding concerning the untimely submission of financial statements to the SBA as mandated by the EIDL agreement, Isuroon will prioritize the immediate filing of the required documentation with the SBA to mitigate any potential risks associated with non-compliance. This proactive approach will include a comprehensive review of all SBA filing requirements, enabling Isuroon to develop standardized procedures for prompt and accurate submissions. Additionally, Isuroon will establish robust internal controls tailored to manage obligations with all lenders, banks, and financial institutions, ensuring timely filing of financial reports in accordance with their respective agreements. By addressing these deficiencies and bolstering internal controls, Isuroon aims to safeguard its financial standing and uphold regulatory compliance across all loan agreements.

View Audit 323854

Finding 499189 (2022-001)

Material Weakness 2022

King County Public Hospital District #2 Dba Evergreen Healthcare

WA

Reporting Matching / Level of Effort / Earmarking § 200.303 § 200.502 § 200.510

AUDIT FINDINGS 2022-001: There were not adequate controls related to the reporting of expenditures on the schedule of expenditures of federal awards (Schedule) for the COVID-19 Disaster Grants – Public Assistance (Presidentially Declared Disasters) program (FEMA). Specifically, review controls over ...

AUDIT FINDINGS 2022-001: There were not adequate controls related to the reporting of expenditures on the schedule of expenditures of federal awards (Schedule) for the COVID-19 Disaster Grants – Public Assistance (Presidentially Declared Disasters) program (FEMA). Specifically, review controls over the accuracy and completeness of the Schedule were not designed to operate at an appropriate level of precision for the discretely presented component unit. As a result, $1,795,854 of FEMA expenditures was inadvertently omitted from the December 31, 2022 Schedule. Name of Contact Person: Daria Heimerman, Director of Financial Reporting, dtheimerman@evergreenhealthcare.org Corrective Action Planned: Implement a control of management review at an appropriate level of precision for the discretely presented component unit in order to ensure the accuracy and completeness of the Schedule. Anticipated Completion Date: September 2023 Statement of Concurrence or Nonconcurrence: Management concurs with audit finding 2022-001.

View Audit 321987

Finding 498914 (2022-003)

Significant Deficiency 2022

Panthera Corporation

NY

Matching / Level of Effort / Earmarking § 200.303 § 200.306

We already implemented a formal review and approval process in 2023 and anticipate this finding to be resolved on our next year audit. We will also ensure the review and approval is properly documented.

View Audit 321740

Finding 498568 (2022-003)

Material Weakness 2022

Wishek Hospital Clinic Association D/b/a South Central Health

ND

Reporting Material Weakness Matching / Level of Effort / Earmarking § 200.303

Contact Person Megan Rath 2022-003 Corrective Action Plan The USDA was made aware that the financial statements had errors and were unaudited at the time of the submission of the RD 442-2 and RD 442-3 for 2022. The Association’s audited financial statements are now up to date. Proper checks and ba...

Contact Person Megan Rath 2022-003 Corrective Action Plan The USDA was made aware that the financial statements had errors and were unaudited at the time of the submission of the RD 442-2 and RD 442-3 for 2022. The Association’s audited financial statements are now up to date. Proper checks and balances have been put into place to ensure ongoing complete and accurate financial data for USDA reporting. Completion Date The corrective action plan steps are planned to be sufficiently in place prior to the beginning of the 2023 USDA required reporting.

View Audit 321317

Finding 498223 (2022-003)

Significant Deficiency 2022

Organic Seed Alliance

WA

Reporting Matching / Level of Effort / Earmarking § 200.303

Criteria or specific requirement: 2 CFR 200.303(a) requires non federal entities receiving Federal awards to "Establish and maintain internal controls over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statut...

Criteria or specific requirement: 2 CFR 200.303(a) requires non federal entities receiving Federal awards to "Establish and maintain internal controls over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award." Per the United States Department of Agriculture SF-425 FAQs, SF-425 Reports are to be submitted within 90 days of the anniversary date of the award. Condition: During testing it was noted that the financial report tested was filed after the required filing deadline. In addition, there was no evidence of review or approval over the report filing prior to submission to the granting agency. Questioned costs: None Context: A sample of 1 was made from a population of 1 financial report (entire population). The financial report did not have documentary evidence of review and approval. In addition, the report was filed after the submission deadline date. Cause: Documentary evidence of supervisor review and approval of the SF-425s is not retained. Rather, such approval is only communicated verbally. In addition, the Organization does not currently have monitoring procedures in place to ensure reports are submitted timely. Effect: Not filing reports on a timely basis can present risks, such as outdated and unreliable information or the inability to detect potential fraud or irregularities. In addition, delayed reports can impede regulatory authorities' ability to monitor compliance, detect patterns or trends, and assess risks in a timely manner. Without adequate documentary evidence around the review of financial reports, there is an increased risk of errors and fraud in the reporting process, which could result in inaccurate financial reporting and misappropriation of funds. Repeat Finding: No Recommendation: CLA recommends for the Organization to place emphasis on stronger controls around the timely filing of required reports, such as retaining a monthly checklist of required reconciliations and reports. CLA also recommends implementing a procedure that documents the supervisor's review (another individual who did not prepare the report) and approval of the Federal Financial Reports (SF-425s), whether that be via an email chain or retaining a copy that also includes the supervisor's signature on the report. Views of responsible officials: Management agrees with the finding. Action Taken in Response to Finding: In response to these findings, OSA has reviewed its formal review and approval procedures to ensure that documentation of review and approval occurs with every federal expense and invoice, and all federal reports are submitted accurately and on-time. In response to this review, OSA has implemented the following: ● Adherence to a current and accurate Financial Management Policy Manual. The manual documents OSA’s policy and procedures regarding this finding: ○ Monthly close/reconciliation reviewed by Executive Director and Board of Directors. ○ Review of federal grant requirements by OSA Leadership Team to support the finance manager, to ensure all federal financial reports are filed accurately and on time. ○ Review and approval of all allowable federal expenditures and invoices by the OSA Executive Director. ○ Archiving a digital copy of review and approvals for every invoice submitted, including review and approval for all supporting documentation including approved timesheets. Name(s) of the Contact Person Responsible for Corrective Action: Laurajean Lewis, Executive Director, at laurajean@seedalliance.org Planned Completion Date for Corrective Action Plan: 06/01/2024

View Audit 320973

Finding 497468 (2022-010)

Material Weakness 2022

Clarendon County School District

SC

Procurement, Suspension & Debarment Matching / Level of Effort / Earmarking Internal Control / Segregation of Duties

The District no longer exists due to consolidation. Internal controls will be practiced in the new district by the Director of Finance. Anticipated completion date: 6/30/23

View Audit 320254

Finding 497454 (2022-005)

Material Weakness 2022

Lead Academy

AL

Questioned Costs Internal Control / Segregation of Duties Cash Management § 200.303

here was inadequate oversight of activities and information provided by the contractor resulting in a material overstatement of meals claimed for the current year. Sufficient controls were not in place for the current fiscal year to ensure that an accurate meal count was claimed for USDA reimburseme...

here was inadequate oversight of activities and information provided by the contractor resulting in a material overstatement of meals claimed for the current year. Sufficient controls were not in place for the current fiscal year to ensure that an accurate meal count was claimed for USDA reimbursement. We recommend that a knowledgeable person be assigned responsibility for oversight of the child nutrition program. We further recommend procedures be implemented to provide oversight of contractor services and information provided including a review process for the USDA claims requests. Views of Responsible Officials and Planned Corrective Actions: The Academy has employed a supervisor responsible for overseeing the child nutrition program and the contract with the previous provider has terminated. Further, the Academy currently provides onsite meal service beginning with the 2022-23 school year provided by a new contractor.

View Audit 320243 Questioned Costs: $1

Finding 497055 (2022-006)

Significant Deficiency 2022

Disability Empowerment Center

WA

Procurement, Suspension & Debarment Allowable Costs / Cost Principles Cash Management § 200.303

ACL Centers for Independent Living – Assistance Listing No. 93.435 Type of Finding: Allowable Activities and Allowable Costs – General Disbursements • Significant Deficiency in Internal Control over Compliance Criteria or specific requirement: Per 2 CFR 200.303, non-Federal entities must establish a...

ACL Centers for Independent Living – Assistance Listing No. 93.435 Type of Finding: Allowable Activities and Allowable Costs – General Disbursements • Significant Deficiency in Internal Control over Compliance Criteria or specific requirement: Per 2 CFR 200.303, non-Federal entities must establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statues regulations, and the terms and conditions of the Federal award. Condition: Documentation not maintained to support one cash disbursement. Questioned costs: None Context: 1/40 of the general disbursements tested lacked indication of approval. Deemed to be an isolated incident as the vendor in question provides physical receipts to DEC, which is an unusual and infrequent method. Limited transactions with said vendor. Cause: Vendor purchases are in-person and physical receipt is obtained. This is unusual for common vendors used and leads to more opportunity for documentation loss. Effect: Reimbursement requests could be made for unallowed expenditures. Repeat Finding: No Recommendation: Review document retention process to ensure all costs that are charged to a federal program are adequately reviewed and documentation of that process is maintained. If documentation is not available, costs should not be charged to the Federal program. Views of responsible officials: There is no disagreement with the audit finding. Action taken in response to finding: This was an isolated incident and DEC now takes steps to digitally record physical receipts with a photograph as soon as possible. Name(s) of the contact person(s) responsible for corrective action: Kimberly Meck, Executive Director Planned completion date for corrective action plan: Already implemented.

View Audit 319773

Finding 496925 (2022-001)

Material Weakness 2022

Hospital Authority of Liberty County

GA

Questioned Costs Material Weakness Reporting

Hospital Authority of Liberty County (A Component Unit of Liberty County, Georgia) respectfully submits the following corrective action plan for the year ended November 30, 2022. The finding from the November 30, 2022 Schedule of Findings and Questioned Costs is discussed below. The finding is numbe...

Hospital Authority of Liberty County (A Component Unit of Liberty County, Georgia) respectfully submits the following corrective action plan for the year ended November 30, 2022. The finding from the November 30, 2022 Schedule of Findings and Questioned Costs is discussed below. The finding is numbered consistently with the numbers assigned in the schedule. FEDERAL AWARD PROGRAMS AUDIT FINDING Material Weakness - Noncompliance (2022-001) Recommendation: The Authority should continue to improve its understanding of the reporting requirements as specified in the applicable loan document and create a process to ensure all USDA requirements are met. Planned Corrective Action: The Authority has elected to pay off the outstanding balance of the USDA loan. Derek Rozier Chief Financial Officer

View Audit 319660 Questioned Costs: $1

Finding 496382 (2022-002)

None 2022

Deep South Center for Environmental Justice

LA

Matching / Level of Effort / Earmarking

DSCEJ has implemented internal processes and controls to ensure timely submission of audits. In early 2022, an audit firm was engaged to perform the 2021 audit. That firm, for reasons unrelated to DSCEJ, delayed commencement of the audit for months and finally withdrew from the engagement before be...

DSCEJ has implemented internal processes and controls to ensure timely submission of audits. In early 2022, an audit firm was engaged to perform the 2021 audit. That firm, for reasons unrelated to DSCEJ, delayed commencement of the audit for months and finally withdrew from the engagement before beginning. Another audit firm was engaged in 2023 and has completed the 2021 audit in May 2024. The 2022 audit was completed shortly thereafter on August 2024. We anticipate beginning the 2023 audit shortly thereafter.

View Audit 319269

Finding 496178 (2022-001)

Significant Deficiency 2022

City of Beverly Hills

CA

Questioned Costs Matching / Level of Effort / Earmarking Allowable Costs / Cost Principles § 200.300 § 200.303 § 200.306 § 200.308 § 200.309

CORRECTIVE ACTION PLAN Program: COVID-19 - Coronavirus State and Local Fiscal Recovery Funds Assistance Listing No.: 21.027 Federal Agency: Department of the Treasury ? Pass-through from the State of California Award No.: WWID 4SSO10370 & CA 1910156 Award Year: Fiscal year 2021-2022 Category o...

CORRECTIVE ACTION PLAN Program: COVID-19 - Coronavirus State and Local Fiscal Recovery Funds Assistance Listing No.: 21.027 Federal Agency: Department of the Treasury ? Pass-through from the State of California Award No.: WWID 4SSO10370 & CA 1910156 Award Year: Fiscal year 2021-2022 Category of Finding: Activities Allowed or Unallowed, Allowable Costs Name responsible for correction action plan: Emily Armstrong, Revenue Services Manager The corrective action planned: Payments applied to the 93 water bills and 81 wastewater bills will be reversed on the customer?s accounts. A notice will be issued to customers via mail and email (where possible) of the discrepancy. The funds will be returned to the State pursuant to their outlined procedures. Moving forward, the City will ensure that there is a multi-layered approval process to review the eligibility period of any State funding to identify the correct eligible applicants prior to disbursement. For future funding related to water and/or waster bills, the list of eligible applicants will be compiled by an analyst within the department and will be reviewed by the Revenue Services Manager and Assistant Finance Director prior to disbursement. Anticipated completion date: March 24, 2023

View Audit 319093 Questioned Costs: $1

Finding 496176 (2022-001)

Material Weakness 2022

Rainbow Municipal Water District

CA

Allowable Costs / Cost Principles Material Weakness Reporting

Reference Number: 2022-001 Name of Contact Person: Tracy Largent Corrective Action: Staff inquired with the State Water Resources Control Board and with our auditors regarding if a single audit would be necessary for the funds received through the Water Arrearages Program. A definitive answer was ...

Reference Number: 2022-001 Name of Contact Person: Tracy Largent Corrective Action: Staff inquired with the State Water Resources Control Board and with our auditors regarding if a single audit would be necessary for the funds received through the Water Arrearages Program. A definitive answer was not available. In the future the District will include all funds that could possibly be considered federal, regardless of confirmation. Proposed Completion Date: 5/12/2023

View Audit 319067

Finding 486169 (2022-004)

Material Weakness 2022

Housing Authority of Brevard County

FL

HUD Housing Programs Material Weakness Special Tests & Provisions

2022-004 Special Tests and Provisions – Selection from the Waiting List Section 8 Housing Choice Vouchers Program – CFDA Number 14.871 Mainstream Vouchers – CFDA Number 14.879 Material Weakness in Internal Control and Material Noncompliance Condition: 13 out of 123 new admissions were tested. Excep...

2022-004 Special Tests and Provisions – Selection from the Waiting List Section 8 Housing Choice Vouchers Program – CFDA Number 14.871 Mainstream Vouchers – CFDA Number 14.879 Material Weakness in Internal Control and Material Noncompliance Condition: 13 out of 123 new admissions were tested. Exceptions were noted as follows: • 3 tenant file errors where the HAP contract was not signed by the Authority until after 120 days of the tenant’s move-in date, but was signed by the landlord within 120 days of the tenant’s move-in date (adoption of HUD COVID waiver). • 1 tenant file error where the tenant’s application date, time, and preference did not agree to the date, time, and preference recorded on the waiting list. The tenant should have been housed earlier based on the tenant’s application date, time, and preference. • 1 tenant file had the following errors: o The HAP was not signed by the Authority until after 120 days of the tenant’s move-in date, but was signed by the landlord within 120 days of the tenant’s move-in date (adoption of HUD COVID waiver). o The tenant’s application date and time did not agree to the date, time, on the waiting list. The tenant should have been housed earlier based on their application date, time, and preference. • A separate waiting list was maintained for tenant based mainstream vouchers in the same county or municipality covered by the regular Section 8 waiting list (the mainstream waiting list has currently been exhausted). The Authority’s administrative plan does not allow a separate waiting list for the mainstream vouchers. In addition, the separate tenant based mainstream voucher waiting list was ranked randomly by the Authority’s system through a lottery ranking technique. This is not in compliance with the Authority’s administrative plan, which states that the waiting list should be organized by preference point and then by date and time of application (first come first serve basis). Recommendation: The Authority should correct the deficiencies and ensure staff is aware of acceptable procedures as outlined in the Authority’s Administrative plan. In addition, the Authority should review staffing levels, skill sets and case load. Furthermore, the Authority should utilize an ongoing quality control review process to ensure proper procedures are being followed. Action Taken: We concur with the recommendation. Due to the COVID-19 pandemic and related staff absences and turnover, we were unable to provide an ongoing quality control review processes and provide ongoing staff training and timely management reviews. We are focused on implementing such procedures and will review staffing levels, skill sets, and case load for each employee.

View Audit 318813

Finding 486166 (2022-003)

Material Weakness 2022

Housing Authority of Brevard County

FL

HUD Housing Programs Eligibility Material Weakness

2022-003 Eligibility – Tenant Files Section 8 Housing Choice Vouchers Program – CFDA Number 14.871 Mainstream Vouchers – CFDA Number 14.879 Material Weakness in Internal Control and Material Noncompliance Repeat of Finding from March 31, 2021 (Finding 2021-003, Significant Deficiency) Condition: O...

2022-003 Eligibility – Tenant Files Section 8 Housing Choice Vouchers Program – CFDA Number 14.871 Mainstream Vouchers – CFDA Number 14.879 Material Weakness in Internal Control and Material Noncompliance Repeat of Finding from March 31, 2021 (Finding 2021-003, Significant Deficiency) Condition: Out of a total tenant population of approximately 1,775 tenants, 25 files were selected for testing, but testing was suspended after 24 files due to the number of errors. Exceptions were noted as follows: • 1 tenant file error where the Authority performed their rent reasonableness procedures on a 2-bedroom unit for a 1-bedroom unit, and the comparable rents did not appear reasonable. • 1 tenant file had the following errors and correcting the errors would decrease the HAP rent by $23: o 1 error for miscalculation of the tenant’s social security income o 1 error for miscalculation of the tenant’s medical expense. • 1 tenant file had the following errors: o Two members of the household did not check the box on the 214-affidavit form indicating their eligible immigration status, but based on their birth certificates, they have eligible immigration status. o Miscalculation of the tenant’s utility allowance amount. Correcting the utility allowance amount would not change the HAP rent. • 1 tenant file error where the utility allowance amount was calculated correctly but was reported incorrectly on the 50058 form. Correcting this error would not change the HAP rent. • 1 tenant file had the following errors: o The 50058 form reported the wrong number of bedrooms in the unit. o The tenant did not sign the lease agreement. • 1 tenant file error where the tenant’s utility allowance amount was calculated incorrectly. Correcting the utility allowance amount would not change the HAP rent. • 1 tenant file had the following errors & correcting the errors would decrease HAP rent $11: o Miscalculation of the tenant’s social security income o Miscalculation of the tenant’s medical expense. • 1 tenant file had the following errors and correcting the miscalculation of tenant’s income and utility allowance would decrease the HAP by $8.: o Miscalculation of the tenant’s supplemental security benefit o Miscalculation of the tenant’s utility allowance amount. o The tenant’s supplemental security benefit income was coded as social security income when it should have been coded as supplemental income on the 50058 form. o Missing 214-affidavit form for a member in the tenant’s household, but based on their birth certificate, they have eligible immigration status. o Member of the household, over the age of 18, did not sign and date the 9886 form. o The HAP contract was not signed and dated by the Authority. • 1 tenant file error due to a missing signed lead base paint form. • 1 tenant file had the following errors: o The 50058 form incorrectly reported the tenant’s monthly rent. Correcting this error increases the HAP rent by $8. o The lease agreement’s signature page is missing. • 1 tenant file error where the rent reasonableness procedure was performed one month after the tenant’s move-in date. The rent appears reasonable, but should have been performed before the tenant’s move-in date. • 1 tenant file had the following errors: o Missing HAP contract and lease agreement. o Missing rent reasonableness support. • 1 tenant file error for missing rent reasonableness support. • 1 tenant file had the following errors: o The utility allowance amount was calculated correctly but was reported incorrectly on the 50058 form. Correcting this error would not change the HAP rent. o The lease agreement’s signature page is missing. • 1 tenant file had the following errors: o Miscalculation of the tenant’s social security income. Correcting the miscalculation would decrease the HAP by $2. o Miscalculation of the tenant’s annual unreimbursed medical expense. Correcting the miscalculation would have no effect on the HAP rent. o The tenant’s name was reported incorrectly on the 50058 form. • 1 tenant file had the following errors: o A member of the household did not check the checkbox on the 214-form indicating their immigration status. However, based on the tenant’s birth certificate, the tenant has eligible immigration status. o A member of the household over the age of 18 didn’t sign and date the 9886 form. o General assistance was included as household income when it should have been excluded. Correcting this error would increase the HAP rent by $12. o Missing rent reasonableness support. o The landlord did not sign the lease agreement. • 1 tenant file had the following errors: o A member of the household did not check the checkbox on the 214-form indicating their immigration status. However, based on the tenant’s birth certificate, the tenant has eligible immigration status. o Missing support for total annual unreimbursed childcare costs. o Missing support for total annual unreimbursed medical expense. Recommendation: The Authority should correct the deficiencies noted in the tested files and utilize an ongoing quality control review process on the entire tenant population to ensure proper compliance with the requirements related to tenant eligibility. Ongoing staff training and timely management reviews should be utilized to ensure staff is aware of acceptable procedures. In addition, the Authority should review staffing levels, skill sets and case load. Action Taken: We concur with the recommendation. Due to the COVID-19 pandemic and related staff absences and turnover, we were unable to provide an ongoing quality control review processes and provide ongoing staff training and timely management reviews. We are focused on implementing such procedures and will review staffing levels, skill sets, and case load for each employee.

View Audit 318813

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