Corrective Action Plans

Corrective Action Plan: To address the accuracy and timeliness of our entries into the FFATA system, we will use the USASPENDING.GOV website to assist us in reconciling what has been entered into the FFATA system. This will allow us to ensure that our grant ledgers agree with what is entered into FFATA. This will be a reconciliation completed at least quarterly (following SOV fiscal year quarters) and will be completed by the Deputy CFO or position assigned by the Deputy CFO. We will also implement a process that will have all the steps necessary for a grant award or an amendment to ensure it is posted properly within our internal files and the external systems. This will ensure that new awards and amendments get routed and entered in the FFATA system timely. Our finance team also attended a FFATA training on February 3, 2023 for additional training on the FFATA system. We will look into the Batch upload process which was described in that training. Position Responsible for Implementation of Corrective Action Name: Sean Cousino Position: Deputy CFO Email: sean.cousino@vermont.gov Phone Number: 802 595-3693 Date of Implementation of Corrective Action: First Reconciliation to be completed March/April 2023 Full Implementation June 1,2023

The Department acknowledges and accepts this finding, and as this is a repeat finding from last year?s ACFR audit, the Department maintains the same response and corrective action plan. The Pandemic Unemployment Assistance (PUA) program did not exist prior to the COVID-19 global health pandemic. Unlike the unemployment insurance program, which has been in existence since 1935, the PUA program did not have the inherent checks and balances built into the system to ensure proper program administration. Instead, state workforce agencies were expected to build the PUA program from the ground up with little guidance from the USDOL all the while managing through a pandemic that caused unprecedented upheaval in the employment status of millions of citizens. It is accurate that the Vermont Department of Labor was not able to implement the necessary checks and balances into the PUA program to ensure proper program eligibility. As has been pointed out in the audit finding, it was not until nine months after the start of the PUA program that Congress passed legislation that required documentation to be provided to substantiate program eligibility. At that time, due to the significant and unprecedented strains on the Department of Labor?s resources, the newly established documentation requirements were not able to be implemented prior to the end of the PUA program. The Department acknowledges that the lack of the ability to review claimant financial eligibility may have resulted in improper payments. It is important to point out that UIPL 16-20, Change 4 was issued on January 8, 2021, providing no time for UI programs to implement the required changes while still continuing to provide vital economic assistance to tens of thousands of individuals. The only other recourse available to the Department at that time would have been to stop program payments from issuing until the new eligibility requirements were reviewed. This would have left claimants without benefits for months while the Department used our limited financial and staff resources to implement the necessary changes. This is the result of the continuously changing eligibility requirements built from hastily implemented legislation and program design. In calendar year 2022, the Department began the process of retroactively reviewing all PUA claims that were filed and paid after the date of UIPL 16-20, Change 4 to ensure that proper documentation was provided to ensure program eligibility. Where appropriate, claims are being placed into an overpayment status and collection efforts will ensue. Corrective Action Plan: As mentioned above, the Department was aware that it was unable to implement the documentation requirement for the PUA program as required by the amendments to the CARES Act. The Department had every intention of going back and retroactively reviewing PUA claims for documentation and requiring submission for those claims that lacked adequate documentation retroactively. The USDOL Regional Office is aware of the process identified by the Department to resolve this issue retroactively. The Department has begun this work in early 2022 and will continue this review for PUA program eligibility for as long as USDOL provides the funding to do so until the Department has reviewed all PUA claims filed in calendar year 2021. Scheduled Completion Date of Corrective Action Plan: June 30, 2024 Contacts for Corrective Action Plan: Cameron Wood, UI Director Cameron.Wood@vermont.gov

Corrective Action Plan: Prior to the onset of the COVID-19 pandemic, the Unemployment Insurance (UI) program was significantly underfunded by Congress and the USDOL leading to significantly reduced staffing levels. When the pandemic led to drastic increasing workload levels, the Department consciously chose to prioritize ensuring that critical functions of the UI program were met and deprioritize other administrative aspects of the program, such as federal reporting. The Department continues to struggle with staffing challenges that have prevented the Department from cross training additional staff on these duties and having staff available to review and approve all USDOL required reports. The Department is currently working to implement organizational changes and implement policies and internal controls to address this issue. Scheduled Completion Date of Corrective Action Plan: December 31, 2023 Contacts for Corrective action Plan: Cameron Wood, UI Director Cameron.Wood@vermont.gov

Corrective Action Plan: The AOE CNP team will be implementing a new procedure starting 3/1/23, which adds an additional internal control (quarterly review by a Grants Program Manager) and outlines specific steps that the Grants Management Specialist and Grants Program Manager will take in the event that there is a discrepancy. Position Responsible for Implementation of Corrective Action Name: Conor Floyd Position: Grant Programs Manager, Child Nutrition Programs Email: conor.floyd@vermont.gov Phone Number: 802-828-0310 Date of Implementation of Corrective Action: 3/1/23

Corrective Action Plan: To address the accuracy and timeliness of our entries into the FFATA system, we will use the USASPENDING.GOV website to assist us in reconciling what has been entered into the FFATA system. This will allow us to ensure that our grant ledgers agree with what is entered into FFATA. This will be a reconciliation completed at least quarterly (following SOV fiscal year quarters) and will be completed by the Deputy CFO or position assigned by the Deputy CFO. We will also implement a process that will have all the steps necessary for a grant award or an amendment to ensure it is posted properly within our internal files and the external systems. This will ensure that new awards and amendments get routed and entered in the FFATA system timely. Our finance team also attended a FFATA training on February 3, 2023 for additional training on the FFATA system. We will look into the Batch upload process which was described in that training. Position Responsible for Implementation of Corrective Action Name: Sean Cousino Position: Deputy Chief Financial Officer Email: sean.cousino@vermont.gov Phone Number: 802 595-3693 Date of Implementation of Corrective Action: First Reconciliation to be completed March/April 2023 Full Implementation June 1,2023

Audit Period: Fiscal year ended June 30, 2022 The findings from the June 30, 2022 schedule of findings and questioned costs are discussed below. The findings are numbered consistently with the numbers assigned in the schedule of findings and questioned costs. Findings - Financial Statement Audit MATERIAL WEAKNESS None Reported SIGNIFICANT DEFICIENCY None Reported Findings - Federal Award Programs Audit MATERIAL WEAKNESS None Reported SIGNIFICANT DEFICIENCY None Reported Water and Waste Systems -ALN: 10.760 Finding: Schedule of Expenditures of Federal Awards Preparation Recommendation: Procedures should be implemented to ensure completion of an entry to the Schedule of Federal Expenditures of Federal Awards to achieve a reliable reporting of total expenditures for an audit period. Action Taken: We acknowledge our responsibility to present the Schedule of Expenditures of Federal Awards and related notes in accordance with Uniform Guidance requirements. To ensure future implementation of this requirement, the City of Cave Spring will record all expenditures on the schedule of federal expenditures.

Finding Number: 2022-002 Planned Corrective Action: The School District in the future will monitor contracts paid with federal funds to ensure if they require prevailing wage language in contracts that it is included and properly monitored. Anticipated Completion Date: April 30, 2023 Responsible Contact Person: Samantha Hamilton, Treasurer

Finding Number: 2022-001 Planned Corrective Action: Multiple staff will verify the dates used in the Common Origination and Disbursement's (COD) R2T4 calculator. Additionally, procedures have been updated to require the proper sequence that departments engage in the R2T4 process and mini-sessions are now interpreted as modular courses. Person Responsible for Corrective Action Plan: Director of Financial Aid Compliance, Elease Cox Anticipated Date of Completion: Already implemented, Fall 2022

Boston Public Schools (BPS) student withdrawal working group has been monitoring the number of students withdrawn from the district; reviewing associated documentation of the withdrawal; and working with school leaders and school administration both at the central office level as well as through the liaisons and leaders within the regional structure to upload appropriate withdrawal documentation or update withdrawal codes to reflect the evidence associated with each student?s withdrawal case. Anticipated Completion Date: June 30, 2023 Responsible Contact Person: Scott Finn, Assistant City Auditor, Grants Monitoring Unit scott.finn@boston.gov

FINDING 2022-003 (Auditor Assigned Reference Number) Contact Person Responsible for Corrective Action: Greg Elkins, CFO Contact Phone Number: 317-485-3100 Views of Responsible Official : We concur with the finding Description of Corrective Action Plan: The CFO and Corporation Treasurer will create, review, and retain electronic documents for any ESSER/GEER data requests. The CFO will submit any required reports to the IDOE. The CFO has currently saves all jotform documentation and email transaction receipts. The CFO will now ?cc? all jotform submissions and receipt acknowledgements to the Corporation Treasurer as well. Anticipated Completion Date: 2/9/2023

Finding Number: 2022-001 Condition: The Hospital's controls in place for reporting submissions did not identify that General and Targeted Distribution Post-Payment Notice of Reporting Requirements guidelines were not followed related to the lost revenue calculations. The Hospital's Period 1 and Period 2 reporting submissions for lost revenue did not follow the acceptable options provided by HHS Planned Corrective Action: The Hospital will review its processes surrounding the methodologies used to report lost revenue and will implement additional levels of review to ensure that the proper lost revenue methodology is used in future reporting periods. Contact person responsible for corrective action: Andrew Poole, Chief Financial Officer Anticipated Completion Date: 3/31/2023

Corrective action plan: In December 2021, HHSC implemented the Texas Medicaid & Healthcare Partnership (TMHP) Provider Enrollment Management System (PEMS), an automated system that is the single tool for provider enrollment, re-enrollment, revalidation, and maintenance requests (maintaining and updating provider enrollment record information). HHSC is confident that as the LTC providers are enrolled and re-validated through PEMS, the errors for documentation will be corrected. The LTC process will mirror the sampled acute care providers which were found to be 100 percent compliant during this review, further supporting that the process is working. Implementation date(s): December 2021 Responsible persons: Deputy Associate Commissioner, Operations Management

Corrective action plan: In December 2022, the Federal Funds Office (FFO) identified all prime awards with a potential subaward action date of 10/1/2021 or later. FFO is in the process of determining which of these have issued subawards for which no Federal Funding Accountability and Transparency Act (FFATA) reporting has been received from the program areas. In addition, FFO has revised the subaward reporting templates for programs. The goal of the revised templates is to 1) clearly state instructions for the information requested and 2) delineate between a) earlier subawards that are being reported late and b) subawards that fall into the current reporting period. These changes will assist FFO in maintaining current reporting and bringing all past due reporting up to date. The goal is to have all past due subawards from 10/1/2021 forward submitted to FFATA Subaward Reporting System (FSRS) by 12/31/2023. Implementation date(s): December 1, 2022 Responsible persons: Director, Federal Funds

Federal Agency Name: Department of Health and Human Services Program Name: COVID-19 Provider Relief Fund and American Rescue Plan Federal Financial Assistance Listing Number: 93.498 Finding Summary: There was no evidence of formal review and approval over tracking of expenditures that were claimed for the program. In addition, there was no evidence retained that the Medical Center?s special reports submitted to the Department of Health and Human Services for Periods 2 and 3 TIN #426037888 were reviewed or approved by an individual separate from the preparer prior to submission. Responsible Individuals: Mark Wall, CFO Response: The Medical Center has made changes in the Finance Staff and now communicate regularly with an outside accounting firm. This firm will be used for guidance going forward to meet the terms and conditions of federal grants. Documents will be compiled by staff Accountant and Controller and verified for appropriateness by the accounting firm. Anticipated Completion Date: September 30, 2022

Finding 2022-004: Preparation of Schedule of Expenditures of Federal Awards Federal Agency Name: Department of Health and Human Services Program Name: Community Facilities Loans and Grants Federal Financial Assistance Listing Number: 10.766 Finding Summary: The Medical Center does not have an internal control system designed to provide for the preparation of the schedule of expenditures of federal. The auditors were requested to assist with the preparation of the schedule of expenditures of federal awards. Responsible Individuals: Mark Wall, CFO Response: This finding and recommendation are not a result of any change in the Medical Center?s procedures, rather it is due to an auditing standard. This is our initial completion of SEFA. With the help of our auditors we have become more familiar with this document and are prepared to handle this in subsequent audits. Anticipated Completion Date: September 30, 2022

Corrective Action Plan 2022-002: The College concurs with the finding and has provided corrective action through posting the correct institutional report in July 2022 to its website. Completion Date: July 2022 Contact Person: Krista Harris, Chief Financial Officer

Mental Health Association of San Francisco (?the Organization?) respectfully submits the following corrective action plan for the year ended June 30, 2022. Audit period: July 1, 2021 ? June 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. Finding 2022-001 Allowable Costs/Cost Principles and Activities Allowed or Unallowed Finding Summary: During the performance of the June 30, 2022 audit, we noted that there was a lack of appropriate and sufficient review and approval of the timesheets of certain employees, a condition that may result in inaccurate payroll expenditures. Responsible Person for the Implementation of the Corrective Action Plan: Mark Salazar, President & CEO. If there are any questions regarding this plan, please call Mark Salazar at (415) 421-2926. Corrective Action Plan: Management provided a walkthrough of the updated time & attendance records approval policy to all supervisors and managers during the management team meeting on Wednesday, January 11, 2023. Additionally, management had an agency wide mandatory training which included a more thorough training and review of the policy, a review of the timecard review, approval and submission procedure and a Q&A session. Management offered the training during the regularly scheduled agency-wide all staff trainings on Wednesday, January 18, 2023 and on Friday, January 20, 2023 (3 separate time slots) and Monday, January 23, 2023 (3 separate time slots). Management tracked attendance and sent out the recorded training and FAQ sheet to all staff. To ensure a high approval rate, the HR team will run a timecard approval report after each pay period to monitor and track approvals and notify applicable staff of missing timecard approvals. Applicable staff have 2 days to approve their timecard to avoid the implementation of a disciplinary action. Anticipated Completion Date: The corrective action plan is underway and will be assessed frequently with full correction taking effect on or before June 30, 2023.

2022-005 Special Tests and Provisions: Public Housing New Admissions and Waiting List Public and Indian Housing Program ? CFDA Number 14.850 Material Weakness in Internal Control, Material Noncompliance Repeat Finding from June 30, 2021 reported as Finding 2021-003 Condition: New Admissions: We selected 5 new admissions (out of a population of 13) and noted the following: ? We are unable to test if the 5 new admissions were properly selected from the waiting list. Normally we are able to verify by checking where the applicant was on the wait list prior to selection and comparing the waiting list ranking (for date/time applied and preferences) to the application submitted. However, the Authority was not able to provide the applications from which would show the date and time they applied as well as any preferences selected so we were unable to determine if the new admissions were properly selected from the waiting list. Waiting list: We selected 25 applicants on the current waiting list (out of approximately of 700 applicants) and noted the following: ? We were unable to test the 25 applicants selected for testing. The Authority was unable to provide the application for each person on the waiting list and therefore we were unable to determine if the waiting list is ranked properly. As discussed with personnel, all active applications are received electronically (when the waiting list is open). The families create the application entering information such as family members, family income and family expenses. However, the on-line system appears to be flawed as it does not provide fields to indicate preferences (such as for being homeless or living locally) which if entered, would give the applicant points so they could be ranked higher on the waiting list and therefore selected faster. Once the applicant is selected to be housed, the Authority manually applies the applicable preferences (but at that point the Authority may have selected someone on the waiting list that should have been selected earlier and defeats the purpose of having preferences). The Authority has addressed this issue with Yardi and has sent notices to all active applicants asking them to update their preferences which the Authority will manually apply and generate the waiting list and the process is expected to be finalized before March 31, 2023. As a result of the above, applicants may not be ranked properly on the waiting list and applicants may be selected out of order. Auditor?s Recommendation: The Authority should review procedures and increase training to employees and reviewers to ensure that the Authority is in compliance with HUD rules for new admissions and waiting list maintenance. In addition, the Authority should implement a review procedure to make sure that all tenants are admitted in the proper order with proper supporting documentation. In addition, the Authority should continue to investigate the issues with the waiting list software. Action Taken: The Authority transitioned its waiting list to Yardi in March 2020. All HCV staff were trained on the use of Yardi?s Wait List module and subsequently trained on wait list administration such as eligibility, preferences, selection, and file processing. Considering the recent audit findings, the following actions items will be implemented in the specified time frame: ? The Authority has fully implemented the use of an electronic system to maintain the waitlist activity. The Yardi system inherently, with proper usage, provides a more thorough approach to waitlist maintenance. The errors noted were data entry errors not a system flaw. As such, a 100% QC will be conducted by the Senior Property Manager for each existing applicant. Task will be completed on or before April 30, 2023. ? The Authority will review all applicants and assign the correct preference status for each. Task will be completed on or before May 15, 2023. ? The site based waiting list will be merged into a centralized wait list and will be managed by the Occupancy Specialists and overseen by the Senior Property Manager. Waitlist merge will be completed on or before May 15, 2023. ? Provide additional hands-on training for staff on the proper wait list procedures and protocol. Hands-on training will include the use of Yardi?s wait list module as well as HUDs rules on wait list administration coupled with the guidance outlined in the Administrative Plan. Task will be completed on or before May 31, 2023. ? Implement a 100% quality control review of all applicant files. Task will be completed by an outside specialized compliance consulting company. The consulting company will report initial findings to the Authority and deficiencies will be cured before the final completion of leasing activities. Thereby reducing any additional findings with waiting list. Task will begin March 1, 2023 and will continue for one year. ? Repeated noted errors will be reported to the Senior Property Manager and additional hand?s-on training will be completed as necessary. ? Standard Operating Procedures on waitlist management will be developed and implemented. All staff will receive training on the procedures and will be expected to adhere to the protocol and will be made accountable for such work. Effective Date: March 21, 2023 Contact Information Charles Woodyard, Executive Director/CEO Housing Authority of the City of Daytona Beach, Florida 211 N. Ridgewood Avenue, Suite 300 Daytona Beach, Florida 32114 (386) 253-5653

2022-004 Eligibility: Public Housing Tenant Files Public and Indian Housing Program ? CFDA Number 14.850 Material Weakness in Internal Control, Material Noncompliance Repeat Finding from June 30, 2021 reported as Finding 2021-002 Condition: Out of a total tenant population of approximately 300 tenant files, 25 files were selected for testing (but stopped testing after 18 files due to the volume of errors). Exceptions were noted as follows: ? 1 tenant file where the Authority was unable to locate and therefore could not test items such as Form 9986, personal declaration form, birth certificates, social security cards, income and deduction support, and EIV verification. The Authority indicated it was recreating the file. ? 2 tenant files with missing 214 affidavits. ? 1 tenant file where the 214 affidavit was not signed. ? 5 tenant files where the personal declaration form was not in the file. ? 1 tenant file where the Form 9886 was not in the file. ? 1 tenant file where the Form 9886 was signed approximately 3 months after the recertification date. ? 4 tenant files with income issues which may have changed the tenant rent amount: o 1 file where there was no support for the family contribution listed on the 50058. o 1 file where there was no support for the child support listed on the 50058. o 2 files where general assistance income (food stamps) was listed as income on the 50058 but should have been excluded. ? 4 tenant files with deduction issues which may have changed the tenant rent amount: o 1 file where the utility allowance of $91 was not on the 50058. This was corrected subsequently on an interim certification. o 1 file where the ?Disclosure of Information? form listed weekly child care expenses, but no child care expenses were deducted on the 50058 and there was no documentation or support in the file explaining if the child care expenses were deductible. o 1 file where the ?Recertification Summary? form listed weekly medical expenses, but no medical expenses were deducted on the 50058 and there was no documentation or support in the file explaining if the medical expenses were deductible. o 1 tenant file where the prior year utility allowance of $82 was used instead of the current utility allowance of $90. ? 1 file where the tenant is paying a flat rent of $686. However, the flat rent appears to be the amount from the previous year and it doesn?t appear that a current flat rent study was conducted or approved. ? 1 file where the dependent date of birth listed on the 50058 did not agree to the birth certificate. ? 2 files where the birth certificates were missing. ? 2 files where the social security cards were missing. ? 1 file where the EIV was not in the file. Auditor?s 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: As was also instituted for HCV participant files, the Authority has instituted a checklist sheet that will occupy the front interior of all tenant files. This checklist will contain every document that is required to be placed in the tenant file. The Authority has and will affirm the use of its procedures, and continue to implement procedures to ensure all tenant files are maintained in accordance with policies and procedures. Additionally: ? All noted deficiencies will be corrected and cured on or before March 31, 2023. ? The Authority has also taken steps to stabilize staff by hiring a Property Manager and an Occupancy Specialist that will support the Public Housing Department. ? The Authority has implemented a 100% quality control review of all participant files. Task will be completed by an outside specialized compliance consulting company. The consulting company will report initial findings to the Authority and deficiencies will be cured before the final completion of certification. Thereby reducing any additional findings with tenant files. Task began February 1, 2023, and will continue for one year. ? Repeated noted errors will be reported to the Senior Property Manager and additional hand?s-on training regarding deficient items will be completed as necessary

2022-003 Special Tests and Provisions: HCV Failed Inspections Section 8 Housing Voucher Cluster (Section 8): Section 8 Housing Choice Vouchers Program ? CFDA Number 14.871 Mainstream Vouchers ? CFDA Number 14.879 Material Weakness in Internal Control, Material Noncompliance Condition: Out of a total failed inspection population of approximately 540 units, 25 failed inspections were selected for testing. Exceptions were noted as follows: ? 1 Inspection and HAP abatement error where the tenant?s unit did not pass inspection and HAP payments were not withheld from July 2022 through February 2023. ? 1 HAP abatement error where the Authority pro-rated the HAP payment for August 2022 and abated the HAP payment for September through November 2022, but subsequently, whether due to a user or system error, HAP payments were paid out for the months from September through November 2022. ? 1 HAP abatement error where the Authority pro-rated the HAP payment for January & May 2022 and abated the HAP payment for February through April 2022, but subsequently, whether due to a user or system error, HAP payments were paid out for the months from January through May 2022. ? 1 HAP abatement error where the Authority didn't pro-rate the HAP payment withholding for June & December 2022 nor withhold the HAP payment for the month of July 2022. The Authority properly withheld the HAP payments for the months of August, September, October, and November 2022. Auditor?s Recommendation: The Authority should review procedures and increase training to employees and reviewers to ensure that the Authority is in compliance with HUD rules for HQS inspections. In addition, the Authority should implement a review procedure to make sure that HAP payments are properly abated when required. Action Taken: The Authority has moved to an electronic records management system for the inspections. A third party vendor has been procured to manage this process; such process will be overseen by the Housing Choice Voucher Manager. Additionally, the following action items has been implemented: ? The Authority has access to the vendor database on a 24 hour basis and the vendor also provides the Authority with a daily email of inspection data. Actual inspections will be printed and maintained to assure that greater than 10% of the inspections are readily available for each participant. ? The third-party vendor will perform quality control inspections of each completed inspection and make note of such in the electronic database. ? Warranted and recommended abatements will be entered into the database by the third-party vendor and subsequently monitored by the Housing Choice Voucher Manager ? Contract administration of the third-party vendor?s work will be monitored by the Housing Choice Voucher Manager. ? Training on HUD rules for HQS inspections will be completed on or before April 30, 2023

2022-002 Special Tests and Provisions: HCV Current Waiting List Section 8 Housing Voucher Cluster (Section 8): Section 8 Housing Choice Vouchers Program ? CFDA Number 14.871 Mainstream Vouchers ? CFDA Number 14.879 Material Weakness in Internal Control, Material Noncompliance Condition: Out of a total waiting list population of approximately 1300 applicants, 25 applicants were selected for testing. Exceptions were noted as follows: ? 1 preference point error where the applicant selected the involuntary displacement and homeless preference points on their pre-application, which agrees to the information in Yardi, but doesn?t agree to the generated waiting list. ? 7 preference point errors where the applicants? selected the residency preference points on their pre-applications, which agrees to the information in Yardi, but doesn?t agree to the generated waiting list. As a result of the above, applicants may not be ranked properly on the waiting list and applicants may be selected out of order. Auditor?s Recommendation: The Authority should review procedures and increase training to employees and reviewers to ensure that the Authority is in compliance with HUD rules for new admissions and waiting list maintenance. In addition, the Authority should implement a review procedure to make sure that all tenants are admitted in the proper order with proper supporting documentation Action Taken: The Authority transitioned its waiting list to Yardi in March 2020. All HCV staff were trained on the use of Yardi?s Wait List module and subsequently trained on wait list administration such as eligibility, preferences, selection, and file processing. Considering the recent audit findings, the following actions items will be implemented in the specified time frame: ? The Authority has fully implemented the use of an electronic system to maintain the waitlist activity. The Yardi system inherently, with proper usage, provides a more thorough approach to waitlist maintenance. As such, a 100% QC will be conducted by the HCV Manager for each existing applicant. Task will be completed on or before April 30, 2023. ? The Authority will review all applicants and assign the correct preference status for each. Task will be completed on or before May 15, 2023. ? Provide additional hands-on training for staff on the proper wait list procedures and protocol. Hands-on training will include the use of Yardi?s wait list module as well as HUDs rules on wait list administration coupled with the guidance outlined in the Administrative Plan. Task will be completed on or before May 31, 2023. ? Implement a 100% quality control review of all applicant files. Task will be completed by an outside specialized compliance consulting company. The consulting company will report initial findings to the Authority and deficiencies will be cured before the final completion of leasing activities. Thereby reducing any additional findings with waiting list. Task will begin March 1, 2023 and will continue for one year. ? Repeated noted errors will be reported to the HCV Manager and additional hand?s-on training will be completed as necessary. ? Standard Operating Procedures on waitlist management will be developed and implemented. All staff will receive training on the procedures and will be expected to adhere to the protocol and will be made accountable for such work.

2022-001 Eligibility: HCV Tenant Files Section 8 Housing Voucher Cluster (Section 8): Section 8 Housing Choice Vouchers Program ? CFDA Number 14.871 Mainstream Vouchers ? CFDA Number 14.879 Material Weakness in Internal Control, Material Noncompliance Repeat Finding from June 30, 2021 (Finding 2021-001 and originally reported in 2017 as Finding 2017-001) Condition: Out of a total tenant population of approximately 1400 vouchers, 26 files were selected for testing. Exceptions were noted as follows: ? 1 utility allowance error where the utility allowance amount of $288 on the 52667 form was reported on the 50058 form for $298. This had no effect on the HAP rent. ? 2 214 affidavit errors where a member of the tenant?s household did not checkmark the box on their 214 forms indicating that they are either a U.S. citizen or a permanent resident. Based on the birth certificates, the member of the households were a U.S. citizen. ? 1 214 affidavit error where the 214 form was missing for a member of the tenant?s household. ? 1 income error where one of the tenant?s pay check was missing for the tenant?s income calculation. Basing the tenant?s wage income calculation on the support in the tenant file would not have changed the HAP rent. ? 1 HAP contract error where the HAP contract is missing from the tenant file. ? 2 9886 errors where members of the household over the age of 18 did not sign and date the 9886 forms. ? 2 deduction errors where members of two households, who were 18 years of age, received a $480 deduction. Correcting this error caused the HAP rent to decrease by $12 for each tenant. ? 1 lead base paint error where the lessor (landlord) did not sign the form to indicate that the information provided to the tenant is accurate. ? 2 EIV errors where the EIV form was not generated or were missing for the tenant?s annual recertification. ? 1 50058 error where the tenant?s childcare support was coded as unemployment benefits on the 50058. ? 1 tenant file unavailable for review due to Hurricane IAN, but no support could be provided. In addition, we also noted as part of our new admissions testing (21 files tested out of approximately 203 new admissions) the following: ? 1 tenant file unavailable for review due to Hurricane IAN, but no support could be provided. Auditor?s 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: The Authority has implemented a 100% quality control review of all participant files. Task will be completed by an outside specialized compliance consulting company. The consulting company will report initial findings to the Authority and deficiencies will be cured before the final completion of certification. Thereby reducing any additional findings with tenant files. Task began February 1, 2023, and will continue for one year. Repeated noted errors will be reported to the HCV Manager and additional hand?s-on training regarding deficient items will be completed as necessary

CORRECTIVE ACTION PLAN FOR FINDINGS REPORTED UNDER UNIFORM GUIDANCE North Franklin School District No. JSl-162 September 1, 2021, through August 31, 2022 This schedule presents the corrective action planned by the District for findings reported in this report in accordance with Title 2 US. 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 did not have adequate internal controls for ensuring compliance with wage rate requirements. Name, address, and telephone of District contact person: Cindy Sital, Business Manager PO Box 829 Connell, WA 99326 (509)-234-2021 Corrective action the auditee plans to take in response to the finding: This was North Franklin School District?s first federally funded construction project. In previous years, construction projects have been state or locally funded. The District did comply with requirements for state or locally funded construction projects. This particular project was funded through ESSER funds which are considered federal funds. Federal funds require a different set of guidelines. In the future, if the District uses federal funds for construction projects, the District will include a provision that the contractor or subcontractors comply with requirements to submit to the District weekly, for each week in which any contract work is performed, certified payroll reports. These reports will included a copy of the payroll and a signed statement of compliance. The District will also include inserting the required prevailing wage provisions into the contract. Anticipated date to complete the corrective action: 05/31/2023

2022-002 Activities Allowed / Un-Allowed Material Weakness/Material Noncompliance This finding was identified during the QAD review that was performed in 2022 and has been corrected as of June 30, 2022, with prior period and current year adjustments. The current revised indirect cost allocation was approved by HUD QAD in July 2022. Indirect costs are being reviewed on a quarterly basis and adjusted as needed. The Comptroller, Jennifer Yager corrected this finding in October 2022. Jennifer can be reached at 203-596-2640.

2022-006 Special Tests and Provisions ? Operating Transfers and Administrative Fees Material Weakness / Material Noncompliance This finding was corrected in October 2022. The interfund transfers were not initially set up correctly in the PHA-Web software. In October 2022 the Comptroller worked with PHA-Web to fix this issue. Jennifer can be reached at 203-596-2640.