Corrective Action Plans

Finding 51967 (2022-002)

Material Weakness 2022

MD

HUD Housing Programs Material Weakness Internal Control / Segregation of Duties

2022-002 Housing Choice Voucher Program ? FALN No. 14.871 Recommendation: We recommend that the Commission review their policies and ensure that rent reasonableness is determined and documented for all rent changes. Explanation of disagreement with audit finding: There is no disagreement with the au...

2022-002 Housing Choice Voucher Program ? FALN No. 14.871 Recommendation: We recommend that the Commission review their policies and ensure that rent reasonableness is determined and documented for all rent changes. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: Rent Reasonableness is an essential requirement for the HCV program, as it ensures that the rents paid by the program participants are fair and comparable to the market rates. The following actions have been implemented to ensure rent reasonableness calculations are being made and properly applied: ? Staff uses an automated system called ?RentEllect?, that captures data of unassisted units in the Howard County market area and uses it to determine rent reasonableness. ? Staff documents the rent reasonableness determination for each program unit using clear and concise language. The documentation includes the source of information, the comparison units, the method of calculation, and the final rent decision. The documentation is maintained electronically and is attached to the tenant file in HCHC?s Yardi Database. The HCHC uses Yardi Software to manage all HCV program transactions. ? The HCV department trained staff on the rent reasonableness process and procedures and provided appropriate tools, including ?RentEllect,? to ensure accurate data. ? Supervisory staff will review the rent reasonableness determinations periodically and update the procedures as needed, especially when there are changes in the Fair Market Rents (FMRs), the rent to the owner, or the unit condition. Name(s) of the contact person(s) responsible for corrective action: Paul Diggs, Director of HCVP Planned completion date for corrective action plan: December 1, 2023

View Audit 49580

Finding 51959 (2022-007)

Material Weakness 2022

Garrett-Evangelical Theological Seminary

IL

Student Financial Aid Material Weakness Matching / Level of Effort / Earmarking

Finding Number: 2022-007 Condition: The Seminary did not maintain appropriate documentation to substantiate the allowable charges on the students ledger account to identity whether credit balances were created and required additional documentation from the student to hold the credit balance. Planned...

Finding Number: 2022-007 Condition: The Seminary did not maintain appropriate documentation to substantiate the allowable charges on the students ledger account to identity whether credit balances were created and required additional documentation from the student to hold the credit balance. Planned Corrective Action: The Seminary will no longer be holding any credit balances for students. Any Title IV aid that is disbursed for 23-24 and creates a credit balance will be refunded to the student within 14 days of disbursement. Contact person responsible for corrective action: Vu Huynh Anticipated Completion Date: 07/31/2023

View Audit 41785

Finding 51956 (2022-003)

Material Weakness 2022

Garrett-Evangelical Theological Seminary

IL

Student Financial Aid Matching / Level of Effort / Earmarking Material Weakness

Finding Number: 2022-003 Condition: Of the 16 students who received disbursements selected for testing, the Seminary did not notify 11 students or parents, as applicable, that received direct federal loans within the required 30 days. Planned Corrective Action: Financial Aid Director has already set...

Finding Number: 2022-003 Condition: Of the 16 students who received disbursements selected for testing, the Seminary did not notify 11 students or parents, as applicable, that received direct federal loans within the required 30 days. Planned Corrective Action: Financial Aid Director has already set up a disbursement notification email to be sent out of the new financial aid management system (JFA). Shortly after Title IV disbursements are made, the Director will send out the disbursement notification to any group of students who have had aid disbursed. Each time a disbursement is made, these notifications will be sent to the necessary students. These notifications will be documented in each students? records. Contact person responsible for corrective action: Ashley Schreiner Anticipated Completion Date: 07/31/2024 (to be completed throughout 23-24 academic year)

View Audit 41785

Finding 51955 (2022-002)

Material Weakness 2022

Garrett-Evangelical Theological Seminary

IL

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

Finding Number: 2022-002 Condition: During our review of internal controls and testing procedures, it was noted that no reconciliations could be provided. In addition, the Seminary does not have a quality...

Finding Number: 2022-002 Condition: During our review of internal controls and testing procedures, it was noted that no reconciliations could be provided. In addition, the Seminary does not have a quality assurance system in place. Planned Corrective Action: The Financial Aid Director will implement an efficient procedure for monthly reconciliation using the new JFA system and COD. First disbursement for 23-24 is planned for September, so beginning October 1, 2023, a new, efficient process will occur at the beginning of each month to reconcile federal funds. Financial Aid will maintain copies of data to support the monthly reconciliation. Contact person responsible for corrective action: Ashley Schreiner Anticipated Completion Date: 07/31/2024 (to be completed throughout 23-24 academic year)

View Audit 41785

Finding 51953 (2022-005)

Material Weakness 2022

Garrett-Evangelical Theological Seminary

IL

Procurement, Suspension & Debarment Student Financial Aid Material Weakness

Finding Number: 2022-005 Condition: The Seminary was unable to support that required records were retained for outstanding Perkins loans. Planned Corrective Action: Garrett has finalized the closeout of the Perkins Loan program (except for the audit final step, which is to be conducted as part of th...

Finding Number: 2022-005 Condition: The Seminary was unable to support that required records were retained for outstanding Perkins loans. Planned Corrective Action: Garrett has finalized the closeout of the Perkins Loan program (except for the audit final step, which is to be conducted as part of the 2022 audit. The Seminary has purchased the loans that were not accepted by the Department of Education. Contact person responsible for corrective action: Ashley Schreiner Anticipated Completion Date: 08/25/2023

View Audit 41785

Finding 51952 (2022-008)

Material Weakness 2022

Garrett-Evangelical Theological Seminary

IL

Student Financial Aid Material Weakness Matching / Level of Effort / Earmarking

Finding Number: 2022-008 Condition: The Seminary did not have the appropriate procedures and controls in place to file an accurate and timely Fiscal Operations Report and Application to Participate ("FISAP"). Planned Corrective Action: Financial Aid Director plans to have the FISAP completed and sub...

Finding Number: 2022-008 Condition: The Seminary did not have the appropriate procedures and controls in place to file an accurate and timely Fiscal Operations Report and Application to Participate ("FISAP"). Planned Corrective Action: Financial Aid Director plans to have the FISAP completed and submitted by the required deadline of September 29th, 2023. The Seminary will implement an independent second review of the FISAP, where the supporting records will be included. Contact person responsible for corrective action: Ashley Schreiner Anticipated Completion Date: 09/29/2023

View Audit 41785

Finding 51951 (2022-006)

Material Weakness 2022

Garrett-Evangelical Theological Seminary

IL

Student Financial Aid Matching / Level of Effort / Earmarking Allowable Costs / Cost Principles

Finding Number: 2022-006 Condition: The Seminary did not have controls in place to identify and document the students who have withdrawn and the applicability of performing a return of Title IV funds. Planned Corrective Action: Financial Aid Director has created a spreadsheet to document detailed st...

Finding Number: 2022-006 Condition: The Seminary did not have controls in place to identify and document the students who have withdrawn and the applicability of performing a return of Title IV funds. Planned Corrective Action: Financial Aid Director has created a spreadsheet to document detailed student information for withdrawals to include withdrawal date, whether federal funds were received, date R2T4 was calculated, if/how much unearned aid was returned, date processed, and any helpful notes for each student. Registrar will continue to email Financial Aid with any withdrawal details. Contact person responsible for corrective action: Ashley Schreiner Anticipated Completion Date: 07/31/2024 (to be completed throughout 23-24 academic year)

View Audit 41785

Finding 51939 (2022-001)

Material Weakness 2022

Crosspurpose

CO

Allowable Costs / Cost Principles Cash Management Material Weakness § 200.413

Finding: 2022-001 Material Weakness in Internal Control over Financial Reporting and Compliance Personnel Responsible for Corrective Action: Kerry Romero, Director of Accounting Anticipated Completion Date: December 31, 2023 Condition: During our testing, we noted reimbursement requests were ...

Finding: 2022-001 Material Weakness in Internal Control over Financial Reporting and Compliance Personnel Responsible for Corrective Action: Kerry Romero, Director of Accounting Anticipated Completion Date: December 31, 2023 Condition: During our testing, we noted reimbursement requests were prepared using grant budgets rather than direct costs incurred. Management was unable to determine direct costs related to general and payroll disbursements. As a result, proper revenue recognition could not be determined for financial reporting purposes. Corrective Action Plan: The Organization will use the jobs and classes functions within their accounting software to track expenses related to grants. The Organization hired a Grant Coordinator to oversee the review, tracking, and reporting for all grants. The Organization will train and work with all applicable staff to create timesheets for grants requiring such documentation. The Organization will prepare a Schedule of Expenditures of Federal Awards (SEFA) which will be used in conjunction with the accounting software to track grant costs.

View Audit 45317

Finding 51883 (2022-001)

Significant Deficiency 2022

Kittitas Reclamation District

WA

Procurement, Suspension & Debarment Subrecipient Monitoring Internal Control / Segregation of Duties § 200.318 § 200.320

Kittitas Reclamation District P.O. Box 276 Ellensburg, WA 98926 Phone: (509) 925-6158 Fax: (509) 925-7425 CORRECTIVE ACTION PLAN FOR FINDINGS REPORTED UNDER UNIFORM GUIDANCE Kittitas Reclamation District January 1, 2022 through December 31, 2022 This schedule presents the corrective action the D...

Kittitas Reclamation District P.O. Box 276 Ellensburg, WA 98926 Phone: (509) 925-6158 Fax: (509) 925-7425 CORRECTIVE ACTION PLAN FOR FINDINGS REPORTED UNDER UNIFORM GUIDANCE Kittitas Reclamation District January 1, 2022 through December 31, 2022 This schedule presents the corrective action the District is planning to take for findings included in this report in accordance with Title 2 U.S. Code of Federal Regulations (CFR) Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Finding ref number: 2022-001 Finding caption: The District?s internal Controls were inadequate for ensuring it complied with federal procurement requirements. Name, address, and telephone of District contact person: Stacy Berg PO Box 276 Ellensburg, WA 98926 (509)925-6158 Corrective action the auditee plans to take in response to the finding: (If the auditee does not concur with the finding, the auditee must list the reasons for disagreement). Upon receiving the guidance on the current audit, the District would like to move forward by reviewing the procurement policy and making any necessary changes while working under the guidance of the SAO Procurement Specialist to ensure that an updated procurement policy continues to meet the needs of the District and the federal guidelines for federal funding. Anticipated date to complete the corrective action: September 30, 2023

View Audit 47110

Finding 51866 (2022-002)

Material Weakness 2022

American Jewish University

CA

Questioned Costs Student Financial Aid Special Tests & Provisions

FINDING 2022-002 ? Special Tests and Provisions ? Borrower Data Transmission and Reconciliation: Condition/context: The University did not have effective internal control in place that would provide reasonable assurance that the University complied with federal regulations, and the University did no...

FINDING 2022-002 ? Special Tests and Provisions ? Borrower Data Transmission and Reconciliation: Condition/context: The University did not have effective internal control in place that would provide reasonable assurance that the University complied with federal regulations, and the University did not complete reconciliations for all of 2022 except March 2022. Cause: Management did not have an established policy and procedure for borrower data transmission and reconciliation. Further, the process was not completed in the noted months due to turnover in the position responsible for performing the monthly reconciliation. Corrective Action Plan: Due to significant turnover in the Financial Aid Office, management has outsourced its financial aid function to a third party. This partnership will ensure monthly loan reconciliations are performed on time and approved by the CFO. Responsible person: Sarah Stooksberry / Cindy Farrington Planned completion date: Completed as of the date of this letter.

View Audit 43164 Questioned Costs: $1

Finding 51829 (2022-001)

Material Weakness 2022

Monroe-Gregg School District

IN

Internal Control / Segregation of Duties Subrecipient Monitoring Material Weakness § 200.303

Contact Person Responsible for Corrective Action: Kelly Dillon Contact Phone Number: 317-996-3720 x1003 Views of Responsible Official: Monroe-Gregg School District concurs with the finding. Description of Corrective Action Plan: The Grant Administrator and one other person will each review and initi...

Contact Person Responsible for Corrective Action: Kelly Dillon Contact Phone Number: 317-996-3720 x1003 Views of Responsible Official: Monroe-Gregg School District concurs with the finding. Description of Corrective Action Plan: The Grant Administrator and one other person will each review and initial each progress and final grant report before submitting in order to ensure accuracy. Anticipated Completion Date: March 13, 2023

View Audit 47093

Finding 51734 (2022-005)

Material Weakness 2022

Genesee County, Michigan

MI

Subrecipient Monitoring Material Weakness Reporting

Finding Number: 2022-005 Condition: The County did not file the required FFATA reports for HSC and HSI subrecipients. Planned Corrective Action: The County staff implemented a process to collect the data that is required for reporting from each subrecipient and to ensure that the reports are filed t...

Finding Number: 2022-005 Condition: The County did not file the required FFATA reports for HSC and HSI subrecipients. Planned Corrective Action: The County staff implemented a process to collect the data that is required for reporting from each subrecipient and to ensure that the reports are filed timely each year. Contact person responsible for corrective action: Chrystal Simpson, CFO Anticipated Completion Date: 6/30/2023

View Audit 40786

Finding 51728 (2022-003)

Material Weakness 2022

Genesee County, Michigan

MI

Questioned Costs Material Weakness Internal Control / Segregation of Duties

Finding Number: 2022-003 Condition: During allowability testing, we identified one participant that received a payment that was more than what was supported. Planned Corrective Action: The cover sheet for the payment to participant had a typo which resulted in the amount paid to the recipient to dif...

Finding Number: 2022-003 Condition: During allowability testing, we identified one participant that received a payment that was more than what was supported. Planned Corrective Action: The cover sheet for the payment to participant had a typo which resulted in the amount paid to the recipient to differ from the supporting documentation. There will be a thorough review moving forward to ensure that cover sheets for payment processing agree to the supporting documentation included with the request. Contact person responsible for corrective action: Stephanie Howard, GCCARD Executive Director Anticipated Completion Date: 10/01/2022

View Audit 40786 Questioned Costs: $1

Finding 51725 (2022-001)

Material Weakness 2022

Genesee County, Michigan

MI

Procurement, Suspension & Debarment Material Weakness

Finding Number: 2022-001 Condition: We noted during testing that the County had no procedure in place to verify contractors are not suspended, debarred, or otherwise excluded pursuant to 2 CFR Section 180.300 prior to entering into contracts with award funds. Planned Corrective Action: The County st...

Finding Number: 2022-001 Condition: We noted during testing that the County had no procedure in place to verify contractors are not suspended, debarred, or otherwise excluded pursuant to 2 CFR Section 180.300 prior to entering into contracts with award funds. Planned Corrective Action: The County staff checked the suspension and debarment listing, however, did not print the screen for audit documentation. Going forward, the page confirming that the contractor is not on the excluded parties listing will be retained to provide proof that the check was performed. Contact person responsible for corrective action: Chrystal Simpson, CFO Anticipated Completion Date: 6/20/2023

View Audit 40786

Finding 51724 (2022-004)

Material Weakness 2022

Genesee County, Michigan

MI

Cash Management Material Weakness Internal Control / Segregation of Duties

Finding Number: 2022-004 Condition: We noted during testing that one draw request was made prior to the expenditures being incurred. Planned Corrective Action: The accounting function for GCCARD transitioned to the Office of Fiscal Services in August of 2022. From that point forward accounting staff...

Finding Number: 2022-004 Condition: We noted during testing that one draw request was made prior to the expenditures being incurred. Planned Corrective Action: The accounting function for GCCARD transitioned to the Office of Fiscal Services in August of 2022. From that point forward accounting staff were trained that draw requests were to be made after allowable expenditures were incurred. Contact person responsible for corrective action: Chrystal Simpson, CFO Anticipated Completion Date: 10/01/2022

View Audit 40786

Finding 51723 (2022-002)

Material Weakness 2022

Genesee County, Michigan

MI

Questioned Costs Eligibility Internal Control / Segregation of Duties

Finding Number: 2022-002 Condition: We noted during testing that initial eligibility review and approval was not completed and on file for one out of 40 individuals that received a food distribution. Planned Corrective Action: GCCARD?s intake and office staff have been fully trained on the rules and...

Finding Number: 2022-002 Condition: We noted during testing that initial eligibility review and approval was not completed and on file for one out of 40 individuals that received a food distribution. Planned Corrective Action: GCCARD?s intake and office staff have been fully trained on the rules and regulation of completing the whole process of receiving and approval of a CSFP application which will include handing out blank applications in December, receiving completed applications in January, determining eligibility, providing the participant with a CSFP card (Valid for 1year), completing the office portion of the application, having the Intake staff sign the application, and filing of the application. This particular item was related to when eligibility was performed outdoors. Now the eligibility is performed indoors which allows for easier access to eligibility documentation. Contact person responsible for corrective action: Stephanie Howard, GCCARD Executive Director Anticipated Completion Date: 10/01/2022

View Audit 40786 Questioned Costs: $1

Finding 51715 (2022-007)

Material Weakness 2022

City of Elkhart

IN

Internal Control / Segregation of Duties Material Weakness Reporting § 200.302 § 200.303 § 200.328 § 200.329

FINDING 2022-007 Contact Person Responsible for Corrective Action: Mary K. Kaczka, Assistant Director, Community Development Contact Phone Number: 574-322-4472 Views of Responsible Official: We concur with the finding. Description of Corrective Action Plan: Financial Reporting: Management has develo...

FINDING 2022-007 Contact Person Responsible for Corrective Action: Mary K. Kaczka, Assistant Director, Community Development Contact Phone Number: 574-322-4472 Views of Responsible Official: We concur with the finding. Description of Corrective Action Plan: Financial Reporting: Management has developed the following process to correct for the lack of evidence for review or approval for reports that are submitted: Staff responsible for preparing the report in IDIS and management responsible for review for accuracy and completeness will both sign appropriate documentation detail (PR 5 and PR 7, draw spread sheets, draw vouchers) supporting the Cash on Hand Report and the IDIS report. CDBG staff has consulted with HUD CPD staff for additional training on how to complete the PR 26 report. The training assisted staff in filing two (2) past due reports and resulted in changes to the reporting process utilized by staff. Performance Reporting: Management will address the performance reporting weaknesses by taking the following steps: The assistant director of community development will document the segregation of duties for the completion and submittal of the CAPER before submission to HUD. Documentation will consist of a clear and understandable workflow on City workpapers, and final submissions, evidenced by signature (ink or digital stamp), email string other generally acceptable audit trail. Additionally, as part of continuing education, CDBG staff participated in a workshop organized by our CDBG consultant this past June, 2023 to better understand the Section 3 reporting requirements. Special Reporting for Federal Funding Accountability and Transparency Act (FFATA): Management will address the weaknesses identified in Special Reporting for Federal Funding Accountability and Transparency (FFATA) by taking the following actions: Management will review and strengthen the current process in place for identification and timely submission of projects that qualify for FFATA reporting. Completed reports will show evidence of segregation of duty for completion, and review and approval. Anticipated Completion Date: August 31, 2023

View Audit 48532

Finding 51714 (2022-006)

Material Weakness 2022

City of Elkhart

IN

Internal Control / Segregation of Duties Subrecipient Monitoring Allowable Costs / Cost Principles § 200.1 § 200.211 § 200.303

FINDING 2022-006 Contact Person Responsible for Corrective Action: Mary K. Kaczka, Assistant Director, Community Development Contact Phone Number: 574-322-4472 Views of Responsible Official: We concur with the finding. Description of Corrective Action Plan: Management will take the following steps t...

FINDING 2022-006 Contact Person Responsible for Corrective Action: Mary K. Kaczka, Assistant Director, Community Development Contact Phone Number: 574-322-4472 Views of Responsible Official: We concur with the finding. Description of Corrective Action Plan: Management will take the following steps to address the period of performance weakness that have been identified: Staff involved with posting or reviewing of claims in both the city ledger and IDIS will be trained on the requirements of 2 CFR 200.343(b) regarding allowable costs during the period of performance. Changes to the claims process has been implemented in which CDBG staff includes the grant number and program year on the face of the invoice or claim sheet in addition to general ledger account number. Invoices are processed for claim packets by department office service staff and reviewed for accuracy and completeness by management. This change in process will assist in reconciliation between the City Ledger and IDIS. Anticipated Completion Date: August 31, 2023

View Audit 48532

Finding 51562 (2022-002)

Material Weakness 2022

Metropolitan Council of the Twin Cities Area

MN

HUD Housing Programs Eligibility Material Weakness

Finding Number: 2022-002 Finding Title: Eligibility ? Source Documentation Program: 14.871 Section 8 Housing Choice Vouchers 14.879 Mainstream Vouchers Name of Contact Person Responsible for Corrective Action: Terri Smith, Director Metro HRA Corrective Action Planned: HRA staff will develop a checkl...

Finding Number: 2022-002 Finding Title: Eligibility ? Source Documentation Program: 14.871 Section 8 Housing Choice Vouchers 14.879 Mainstream Vouchers Name of Contact Person Responsible for Corrective Action: Terri Smith, Director Metro HRA Corrective Action Planned: HRA staff will develop a checklist form and update procedures for all staff to ensure signatures and forms are not missing in case files, this includes but is not limited to background checks performed, citizenship forms and members of the household. The checklist will be completed for each case and stored in each participant file as part of the quality control process. Anticipated Completion Date: The checklist and the review process is currently in place effective June 2023.

View Audit 48360

Finding 51517 (2022-102)

Material Weakness 2022

State of Wisconsin

WI

Questioned Costs Eligibility Material Weakness

CAP for Finding: 2022-102 Auditor Recommendation: Obtain the required documentation for the 22 individuals we identified or seek to recoup improper benefit payments it made to these individuals. Planned Corrective Action: The Wisconsin Department of Administration (Department or DOA) will request fr...

CAP for Finding: 2022-102 Auditor Recommendation: Obtain the required documentation for the 22 individuals we identified or seek to recoup improper benefit payments it made to these individuals. Planned Corrective Action: The Wisconsin Department of Administration (Department or DOA) will request from the auditors the cases identified, review available documentation in its eligibility and benefit determination system to determine that all of the applicants were eligible to receive benefits under the program or that the costs were allowable to be funded by the Wisconsin Emergency Rental Assistance (WERA) Program, and obtain the required supporting documentation. Should DOA determine that it provided rental and utility assistance to individuals who were ineligible to receive WERA Program benefits, it will identify alternate eligible Department funding sources or seek to recoup improper benefit payments made, as appropriate. Anticipated Completion Date: June 30, 2023 Auditor Recommendation: Closely monitor the documentation being accepted by the community action agencies and Energy Services, Inc., and provide further training to address individual instances of noncompliance with the Wisconsin Emergency Rental Assistance Program Manual and guidance from the U.S. Department of the Treasury. Planned Corrective Action: The Department will monitor the documentation accepted by the community action agencies and Energy Services, Inc. (ESI), and provide further training to address individual instances of noncompliance with the WERA Program Manual and guidance from the U.S. Department of the Treasury. As the auditors noted, DOA provided training to the community action agencies and ESI in June 2022, and updated the WERA Program Manual as of June 30, 2022. The Department further notes that, after serving nearly 40,000 households with close to $250 million of assistance for rent, utilities and home internet bills, and preventing thousands of evictions across the state, the WERA Program closed to new applications as of January 31, 2023, but housing stability services remain available. Anticipated Completion Date: June 30, 2023 Auditor Recommendation: Regularly review and update its procedures to ensure that it is following the guidance from the U.S. Department of the Treasury in administering the Wisconsin Emergency Rental Assistance program. Planned Corrective Action: The Department will continue to review and update its procedures to ensure that it is following the guidance from the U.S. Department of Treasury in administering the WERA program. As the auditors noted, in response to its prior recommendation, DOA updated the WERA Program Manual as of June 30, 2022. Anticipated Completion Date: June 30, 2023 Person responsible for corrective action: Susan Brown, Administrator Division of Energy, Housing and Community Resources susan.brown@wisconsin.gov

View Audit 44861 Questioned Costs: $1

Finding 51503 (2022-001)

Material Weakness 2022

Kalamazoo Youth Development Network

MI

Subrecipient Monitoring Material Weakness Internal Control / Segregation of Duties

Responsible Person: Meg V. Blinkiewicz, Executive Director Finding Number: 2022-001 Condition: The organization?s internal financial policies manual states the Executive Director is authorized to sign checks up to $5,000. Checks for amounts greater than $5,000 require the signature of the Treasu...

Responsible Person: Meg V. Blinkiewicz, Executive Director Finding Number: 2022-001 Condition: The organization?s internal financial policies manual states the Executive Director is authorized to sign checks up to $5,000. Checks for amounts greater than $5,000 require the signature of the Treasurer or Board Chair. During testing, it was noted that the Treasurer or Board chair did not sign checks over $5,000 to sub-recipients. Planned corrective action: The organization?s internal financial policies manual will be revised and approved at the April 4, 2023 board meeting. The revised policies will state that the Executive Director has the authority to sign checks up to $15,000. Checks over the amount of $15,000 will require the Treasurer or Board Chair to sign as well. KYD Network staff and board will receive training on this policy. The Executive Director will notify the Treasurer and Board Chair of checks exceeding the $15,000 limit and will schedule time to receive their signature. Anticipated completion date: April 7, 2023

View Audit 43067

Finding 51409 (2022-006)

Material Weakness 2022

Ramsey County

MN

Eligibility Material Weakness Internal Control / Segregation of Duties

Finding Number: 2022-006 Finding Title: Eligibility Program: 21.023 COVID-19 ? Emergency Rental Assistance Program Name of Contact Person Responsible for Corrective Action: Kim Cleminson, Deputy Director, Housing Stability Department Corrective Action Planned: In response to the finding, Ramsey Coun...

Finding Number: 2022-006 Finding Title: Eligibility Program: 21.023 COVID-19 ? Emergency Rental Assistance Program Name of Contact Person Responsible for Corrective Action: Kim Cleminson, Deputy Director, Housing Stability Department Corrective Action Planned: In response to the finding, Ramsey County Housing Department (HSD) will implement the following: 1. For the ERA-based Highway to Housing program that ended May 30, 2023 a. Records from the hotels, outlining the costs were located and will be migrated to a centralized/ Sharepoint site; and b. Additionally, HSD will source the income verification for the three participants and save copies to the centralized/ Sharepoint site 2. For the new ERA-based Housing Court program, which is a tenant rental assistance program, no hotels stays will be covered- only outstanding rent, fees, and utilities as outlined by the landlord. For this program, the following records are obtained for each client and maintained on the centralized SharePoint site: a. Application to the programming outlining program eligibility and amount owed with signed self-attestation, third party verification, and signed attestation from an authorized representative; and b. Copy of the lease, ledger, or notice of outstanding rent and/or utility arrears. Anticipated Completion Date: 1. Migration of records to be complete by July 31, 2023 2. Housing Court program launched on June 16, 2023. All the records supporting newly approved ERA expenditures are saved on Sharepoint.

View Audit 51214

Finding 51405 (2022-004)

Material Weakness 2022

Ramsey County

MN

Subrecipient Monitoring Allowable Costs / Cost Principles Cash Management

Finding Number: 2022-004 Finding Title: Activities Allowed or Unallowed and Allowable Costs/Cost Principles Program: 14.231 Emergency Solutions Grant Program Name of Contact Person Responsible for Corrective Action: George Hardgrove, EGCI Service Team Controller Corrective Action Planned: Ramsey Cou...

Finding Number: 2022-004 Finding Title: Activities Allowed or Unallowed and Allowable Costs/Cost Principles Program: 14.231 Emergency Solutions Grant Program Name of Contact Person Responsible for Corrective Action: George Hardgrove, EGCI Service Team Controller Corrective Action Planned: Ramsey County had exceptions for 6 of 40 transactions tested. The exceptions noted were for a lack of receipt copies and not having the proper payroll reports attached. We agree with the lack of receipt copies. For payroll, we felt the payroll reports provided were adequate to determine the appropriate labor cost. The receipt issue came to about 2.5% of the $5.5M that was expended under this award in 2022 while the payroll documentation was about 7% of this amount. Nonetheless, we will create and use a check list to ensure we have the proper receipt copies and payroll reports for each subrecipient invoice we approve. We will also work on clarifying the required payroll reports with our grantors. Anticipated Completion Date: December 31, 2023.

View Audit 51214

Finding 51398 (2022-001)

Material Weakness 2022

Suburban Mobility Authority for Regional Transportation

MI

Questioned Costs Allowable Costs / Cost Principles Subrecipient Monitoring § 200.403

Finding Type - Material weakness and material noncompliance with laws and regulations Condition ? The Authority disbursed a portion of its CARES Act funds to community partners; however, many of those partners offer only Section 5310 service for seniors and individuals with disabilities. Section 531...

Finding Type - Material weakness and material noncompliance with laws and regulations Condition ? The Authority disbursed a portion of its CARES Act funds to community partners; however, many of those partners offer only Section 5310 service for seniors and individuals with disabilities. Section 5310 program expenses are not allowable under the CARES Act. Identification of How Questioned Costs Were Computed ? Questioned costs represent the total amount of CARES Act funds passed through to community partners. Context - During the fiscal year, SMART passed through $1,146,291 to 35 community partners. Cause and Effect - The CARES Act award was new to SMART in fiscal year 2020. SMART's other federal awards have existed for many years and SMART is very familiar with their requirements and allowable uses. SMART sought to share the new award with its community partners but was not aware that most of them did not have expenditures allowable under the CARES Act until the matter was identified during SMART's most recent triennial review. Recommendation - When new awards are received, we recommend SMART thoroughly analyze the compliance requirements, including the allowable uses. Views of Responsible Officials and Corrective Action Plan ? SMART management is aware of the issue and has been diligently working with our FTA regional office to correct the issue. While certain community partner expenses were not eligible under CARES, they are certainly eligible under CRRSA and ARPA funding grants. We are in the process of finalizing a plan, with the FTA, where all community partner relief funding will be reprogramed under the CRRSA and ARPA grants. This correction plan, once finalized, will result in no reduction of federal relief funding to SMART or any of our community partners. Given extraordinary circumstances and expedited nature of the CARES funding, we do not believe that this issue will be a significant risk for future grant funding, however SMART has modified our grant policy manual to ensure a more thorough review of eligible expenses for subrecipients. Contact person responsible for corrective action: Ryan Byrne, CFO Anticipated Completion Date: 12/31/2022

View Audit 49229 Questioned Costs: $1

Finding 51379 (2022-002)

Material Weakness 2022

The Naples Players, Inc.

FL

Internal Control / Segregation of Duties Material Weakness

Small Business Administration Naples Players, Inc. respectfully submits the following corrective action plan for the year ended April 30, 2022. Audit period: May 1, 2021 ? April 30, 2022 The findings from the schedule of findings and questioned costs are discussed below. The findings are numbered c...

Small Business Administration Naples Players, Inc. respectfully submits the following corrective action plan for the year ended April 30, 2022. Audit period: May 1, 2021 ? April 30, 2022 The findings from the schedule of findings and questioned costs are discussed below. The findings are numbered consistently with the numbers assigned in the schedule. FINDINGS?FINANCIAL STATEMENT AUDIT Small Business Administration 2022-002 Material Weakness in Internal Control over Segregation of Duties Recommendation: We recommend the Organization develop internal control policies to implement segregation of duties to the extent possible. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: CFO and experienced accounting assistant hired. Banking transactions have been segregated. Bookkeeping duties are completed by accounting assistant and reviewed by CFO. Payments are approved by CEO. Monthly reconciliations to bank statement, ticket sales, receivables and payables are prepared or reviewed by CFO. Name(s) of the contact person(s) responsible for corrective action: Doren Danis Planned completion date for corrective action plan: June, 2022 ? May, 2023

View Audit 45158

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