Corrective Action Plans

Finding 2690 (2021-006)

Material Weakness 2021

Sacramento Housing and Revelopment Agency

CA

HUD Housing Programs Eligibility Material Weakness

Recommendation: We recommend management to assign a person that verifies all the documents are in place before processing the determination of eligibility. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: The exi...

Recommendation: We recommend management to assign a person that verifies all the documents are in place before processing the determination of eligibility. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: The existing protocol involves a checklist that staff complete before submitting the file for intake review and prior to the electronic transfer of the file to the site. To address the identified issues, we are reinforcing this process, including retraining staff and emphasizing the importance of meticulous scanning and uploading of documents. For errors that occurred during occupancy, we will reiterate and enhance the interim and annual recertification processes. Staff will undergo retraining, and we will intensify the quality control measures for file management to prevent such discrepancies. Name(s) of the contact person(s) responsible for corrective action: Troy Lynch (Intake) and Diana Pop (Occupancy) and Christen H. Gore (Occupancy). Planned completion date for corrective action plan: The enhanced staff training, along with the additional processes, will be implemented before August 31, 2023.

View Audit 4551

Finding 2688 (2021-005)

Material Weakness 2021

Sacramento Housing and Revelopment Agency

CA

Special Tests & Provisions HUD Housing Programs Material Weakness

Recommendation: We recommend management to assign a person that verifies all the documents are in place before processing new move ins. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: To address this issue, as of 2...

Recommendation: We recommend management to assign a person that verifies all the documents are in place before processing new move ins. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: To address this issue, as of 2017, the Intake unit initiated a practice of saving all selection letters as a backup. It's important to note that the audit focused on files predating this backup system, when no duplicate copies were available. To prevent such issues in the future, a comprehensive intake checklist is now completed by staff before transferring files for review, and the reviewing staff will verify the inclusion of these essential documents in the file. Name(s) of the contact person(s) responsible for corrective action: Troy Lynch Planned completion date for corrective action plan: The targeted completion date is set for August 31, 2023

View Audit 4551

Finding 1820 (2021-007)

Material Weakness 2021

Athens Metropolitan Housing Authority

OH

Allowable Costs / Cost Principles HUD Housing Programs Reporting

Finding Number: 2021-007 Planned Corrective Action: The new Fiscal Procedure Manual addresses reconciliation of cash, bank to book and sets the procedure for staff to complete monthly reconciliations which are to be reviewed by the Executive Director always and periodically presented to the Board fo...

Finding Number: 2021-007 Planned Corrective Action: The new Fiscal Procedure Manual addresses reconciliation of cash, bank to book and sets the procedure for staff to complete monthly reconciliations which are to be reviewed by the Executive Director always and periodically presented to the Board for review. The finding for Adjustment will be forwarded to the engaged accounting firm for assessment and advice on how to accomplish that. Anticipated Completion Date: June 30, 2023 Responsible Contact Person: Stan W. Popp, Acting Executive Director

View Audit 3185

Finding 1819 (2021-006)

Material Weakness 2021

Athens Metropolitan Housing Authority

OH

HUD Housing Programs Eligibility Material Weakness

Finding Number: 2021-006 Planned Corrective Action: The previous Executive Director was supposed to do quality control reviews on HCV files, however that was not being done. At present, the Coordinator of Housing Programs and Administration is assigned to do quality controls on a percentage of files...

Finding Number: 2021-006 Planned Corrective Action: The previous Executive Director was supposed to do quality control reviews on HCV files, however that was not being done. At present, the Coordinator of Housing Programs and Administration is assigned to do quality controls on a percentage of files touched within the previous 30 days. Each month, a number of files will be reviewed. Also, the Housing Authority has purchased a complete training academy as part of the Yardi software system that the Housing Authority has used since 2017. The training academy offers on-line courses in each of the areas of the HCV process and will be assigned all training modules that apply to the HCV process. Anticipated Completion Date: July 31, 2023 Responsible Contact Person: Stan W. Popp, Acting Executive Director

View Audit 3185

Finding 1818 (2021-005)

Material Weakness 2021

Athens Metropolitan Housing Authority

OH

HUD Housing Programs Procurement, Suspension & Debarment Material Weakness

Finding Number: 2021-005 Planned Corrective Action: Housing Quality Standards inspection had been contracted for since the pandemic began in 2020, and the agreement had not included quality control or reinspection for failed inspections. That was supposedly corrected but for much of 2021, HQS inspec...

Finding Number: 2021-005 Planned Corrective Action: Housing Quality Standards inspection had been contracted for since the pandemic began in 2020, and the agreement had not included quality control or reinspection for failed inspections. That was supposedly corrected but for much of 2021, HQS inspections had been suspended due to the pandemic. Since that time failed, HQS is tracked by each staff person who has that unit in their caseload, and they assure a reinspection is automatically scheduled and notice sent to the landlord and tenant. If the unit fails a second inspection, in most cases the HAP is abated, or a formal extension is granted on occasion. The plan going forward is to bring the inspection process back in-house within the next year when the existing contract expires. An outside contractor will still be used for inspection when Housing Choice Vouchers are used in the AMHA owed units. All files will be reviewed to ensure compliance. Anticipated Completion Date: July 31, 2023 Responsible Contact Person: Stan W. Popp, Acting Executive Director

View Audit 3185

Finding 1793 (2021-006)

Material Weakness 2021

Bristol Bay Borough, Alaska

AK

Period of Performance Subrecipient Monitoring Allowable Costs / Cost Principles § 200.512

Finding 2021-006 Reporting - Timely Submission of Financial Reports – Material Weakness in Internal Control over Compliance and Noncompliance Name of Contact Person: James Wilson, Borough Manager Corrective Action Plan: The Borough is currently in process of catching up on audits with the goal of co...

Finding 2021-006 Reporting - Timely Submission of Financial Reports – Material Weakness in Internal Control over Compliance and Noncompliance Name of Contact Person: James Wilson, Borough Manager Corrective Action Plan: The Borough is currently in process of catching up on audits with the goal of completing the FY 2023 audit timely. Completion Date: March 2024

View Audit 3119

Finding 1792 (2021-005)

Material Weakness 2021

Bristol Bay Borough, Alaska

AK

Questioned Costs Subrecipient Monitoring Allowable Costs / Cost Principles § 200.516

Finding 2021-005 Activities Allowed and Unallowed, Allowable Costs, Period of Performance – Material Weakness in Internal Control over Compliance and Noncompliance Name of Contact Person: James Wilson, Borough Manager Corrective Action Plan: The Borough is currently undergoing an upgrade in record r...

Finding 2021-005 Activities Allowed and Unallowed, Allowable Costs, Period of Performance – Material Weakness in Internal Control over Compliance and Noncompliance Name of Contact Person: James Wilson, Borough Manager Corrective Action Plan: The Borough is currently undergoing an upgrade in record retention policies and procedures. Completion Date: December 2023

View Audit 3119 Questioned Costs: $1

Finding 1697 (2021-001)

Material Weakness 2021

Community Action of East Central Indiana, Inc.

IN

Reporting Material Weakness

Community Action of East Central Indiana, Inc. management will implement auditor's recommendations through revisions of policies and procedures with annual target of June 1 for availability of all relevant information for completion of annual audit.

View Audit 2962

Finding 1609 (2021-007)

Material Weakness 2021

Laramie Regional Airport

WY

Material Weakness Reporting Internal Control / Segregation of Duties

2021-007: Cash & Grant Reconciliation & Segregation of Duties - Material Weakness Views of Responsible Officials: Management agrees with this finding. Corrective Action Plan: The Board hired a contract accountant to perform reconciliations on all previously unreconciled accounts. The Accounting Mana...

2021-007: Cash & Grant Reconciliation & Segregation of Duties - Material Weakness Views of Responsible Officials: Management agrees with this finding. Corrective Action Plan: The Board hired a contract accountant to perform reconciliations on all previously unreconciled accounts. The Accounting Manager will reconcile bank accounts monthly, with all reconciliations being reviewed and approved by the Airport Director. Anticipated Completion: July 1, 2022 Responsible Party: Tamie Wick, Accounting Manager. Amy Terrell, Airport Director

View Audit 2850

Finding 1608 (2021-006)

Material Weakness 2021

Laramie Regional Airport

WY

Material Weakness § 200.501 § 200.512

2021-006: Audit Completion and Submission to the State and Federal Government - Material Weakness and Non-Compliance Views of Responsible Officials: Management agrees with this finding as the Data Collection Form was not submitted to the Federal Audit Clearinghous within nine months after fiscal yea...

2021-006: Audit Completion and Submission to the State and Federal Government - Material Weakness and Non-Compliance Views of Responsible Officials: Management agrees with this finding as the Data Collection Form was not submitted to the Federal Audit Clearinghous within nine months after fiscal year-end. However, the Board does not agree that the late filing of the Data Collection Form rationalizes a qualified opinion over Reporting for the Airport Improvement Program. Corrective Action Plan: The Board will fire a contract accountant to assist the Accounting Manager in the timely finanical close to report and audit preparation to ensure timely completion of their finanicial and compliance audits. Anticipated Completion: December 31, 2023 Responsible Party: Tamie Wick, Accounting Manager. Amy Terrell, Airport Director.

View Audit 2850

Finding 754 (2021-004)

Material Weakness 2021

Municipality of Corozal

PR

HUD Housing Programs Material Weakness Reporting

The pandemic caused by the outbreak of COVID-19 disrupted and delayed many accounting processes during fiscal year 2020 and 2021, since the Municipality had to modified its way of operating and some services were being interrupted due personnel turn overs. Consequently, several projects and tasks ca...

The pandemic caused by the outbreak of COVID-19 disrupted and delayed many accounting processes during fiscal year 2020 and 2021, since the Municipality had to modified its way of operating and some services were being interrupted due personnel turn overs. Consequently, several projects and tasks calendared were postponed, including the reconciliation and review of bank reconciliations and financial reports required by HUD. The person In charge of this task is the Federal Program Director and the anticipated completion date is for December of 2022.

View Audit 1414

Finding 703 (2021-003)

Material Weakness 2021

Housing Authority of the County of Monterey

CA

Questioned Costs HUD Housing Programs Eligibility

Finding 2021-003 Federal Agency: U.S. Department of Housing and Urban Development Federal Program Titles: Section 8 Housing Choice Vouchers Program Federal Catalog Numbers: 14.871 Material Noncompliance – E. Eligibility – Tenant Files Non Compliance Material to the Financial Statements: Yes Ma...

Finding 2021-003 Federal Agency: U.S. Department of Housing and Urban Development Federal Program Titles: Section 8 Housing Choice Vouchers Program Federal Catalog Numbers: 14.871 Material Noncompliance – E. Eligibility – Tenant Files Non Compliance Material to the Financial Statements: Yes Material Weakness in Internal Control over Compliance for Eligibility Criteria: Tenant Files. The PHA must do the following: As a condition of admission or continued occupancy, require the tenant and other family member to provide necessary information, documentation, and releases for the PHA to verify income eligibility (24 CFR sections 5.230, 5.609, and 982.516). These files are required to be maintained and available for examination at the time of audit. Condition: Based upon inspection of the Authority’s files and on discussion with management, there were documents that were unavailable for examination at the time of audit. Context: There are approximately 3,383 units. Of a sample size of forty (40) tenant files, the following was noted: Original application was missing in 3 files, Lead based paint form was missing in 5 files, signed lease was missing in 5 files, Rent reasonableness was missing in 10 files , Annual inspection report was missing in 15 files. Our sample size is statistically valid. Known Questioned Costs: $294,952. Cause: There is a material weakness in internal controls over the compliance for the eligibility type of compliance related to the maintenance of tenant files. The Authority has not properly considered, designed, implemented, maintained and monitored a system of internal controls that assures the program is in compliance. Effect: The Section 8 Housing Choice Vouchers Program is in material non-compliance with the eligibility type of compliance related to the maintenance of tenant files. Recommendation: We recommend the Authority design and implement internal control procedures that will assure compliance with the Uniform Guidance and the compliance supplement. Views of responsible officials and planned corrective action: The Authority accepts the recommendation of the auditor. The affected files relate to clients that have been on the program for decades and as files get large, archiving takes place. To correct this finding, a directive will be issued to staff that will ensure that when files are archived the original application must be placed in the current working file going forward. Zulieka Boykin, Executive Director, will be responsible to implement this corrective action by June 30, 2022.

View Audit 1338 Questioned Costs: $1

Finding 354 (2021-003)

Material Weakness 2021

Wicomico County Housing Authority

MD

HUD Housing Programs Material Weakness Special Tests & Provisions

Views of Responsible Officials: The Authority specialist responsible for file maintenance and recertifications during fiscal year 2021 is no longer with the Agency. In addition the Authority misinterpreted the COVID waiver related to HQS inspections. The Authority has experienced staff now in place ...

Views of Responsible Officials: The Authority specialist responsible for file maintenance and recertifications during fiscal year 2021 is no longer with the Agency. In addition the Authority misinterpreted the COVID waiver related to HQS inspections. The Authority has experienced staff now in place to perform these services. The Authority will revisit our policy and procedures over recertification, HQS, and file maintenance to ensure documentation is maintained and is in compliance with HUD regulations.

View Audit 724

Finding 353 (2021-002)

Material Weakness 2021

Wicomico County Housing Authority

MD

Questioned Costs HUD Housing Programs Eligibility

Views of Responsible Officials: The Authority specialist responsible for file maintenance and recertifications during fiscal year 2021 is no longer with the Agency. The Authority has experienced staff now in place to perform these services. The Authority will revisit our policy and procedures over r...

Views of Responsible Officials: The Authority specialist responsible for file maintenance and recertifications during fiscal year 2021 is no longer with the Agency. The Authority has experienced staff now in place to perform these services. The Authority will revisit our policy and procedures over recertification and file maintenance to ensure documentation is maintained and is in compliance with HUD regulations.

View Audit 724 Questioned Costs: $1

Finding 261 (2021-003)

Material Weakness 2021

Transportation District Commission of Hampton Roads

VA

Cash Management Material Weakness Reporting

Corrective Action Plan: Going forward, both grants and projects will be reconciled on a monthly basis. Per the detailed project activity listing, all project transactions will be reviewed to ensure that all expenses and reimbursements are posted in the correct fiscal year. In addition, reimbursement...

Corrective Action Plan: Going forward, both grants and projects will be reconciled on a monthly basis. Per the detailed project activity listing, all project transactions will be reviewed to ensure that all expenses and reimbursements are posted in the correct fiscal year. In addition, reimbursement for all grants will be supported by corresponding documents to further guarantee that transactions are posted in the correct period. Reconciliations will be completed by the senior staff accountant and reviewed by the Director of Finance. Person Responsible: Donna Brumbaugh, Director of Finance dbrumbaugh@hrtransit.org (757) 222-6000 ext. 6611 Date of Corrective Action implementation: September 1, 2023

View Audit 508

Finding 1214949 (2020-004)

Material Weakness 2020

HOUSING AUTHORITY OF THE CITY OF LITTLE ROCK, ARKANSAS

CA

Allowable Costs / Cost Principles Special Tests & Provisions Eligibility

Finding 2020-004 Federal Agency: U.S. Department of Housing and Urban Development Federal Program Titles: Housing Voucher Cluster, Public and Indian Housing Program, and Coronavirus Relief Fund Assistance Listing Numbers: 14.871, 14.879, 14.850, and 21.019 Material Noncompliance Non Compliance Mater...

Finding 2020-004 Federal Agency: U.S. Department of Housing and Urban Development Federal Program Titles: Housing Voucher Cluster, Public and Indian Housing Program, and Coronavirus Relief Fund Assistance Listing Numbers: 14.871, 14.879, 14.850, and 21.019 Material Noncompliance Non Compliance Material to the Financial Statements: Yes Material Weakness in Internal Control over Compliance Criteria: The Authority must maintain complete and accurate accounts and other records for the program in accordance with HUD compliance requirements. Condition: The Authority did not maintain complete and accurate accounts and other records in accordance with HUD compliance requirements including Activities Allowed or Unallowed, Allowable Costs/Cost Principles, Eligibility, Reporting, and Special Tests and Provisions. Context: The Authority was unable to provide requested documentation at the time of audit to properly test the HUD compliance requirements. Known Questioned Costs: Unknown Cause: There is a material weakness in internal controls over compliance related to the maintenance of tenant files, wait lists, inspection reports and other records. The Authority has not properly considered, designed, implemented, maintained and monitored a system of internal controls that reasonably assures the program is in compliance. Effect: The Housing Voucher Cluster and Public and Indian Housing Program are in material non- compliance with the compliance requirements of the program. Recommendation: We recommend that the Authority implement a process whereby Authority documents are stored and safeguarded to ensure compliance with the Uniform Guidance and the compliance supplement. View of Responsible Officials and Corrective Actions: The Authority experienced significant turnover in employees during the year and as a result certain source documents were misplaced or destroyed. Management agrees with the Auditors' finding and has hired a new Executive Director who will implement the required safeguards and ensure that the Authority follows its internal control over compliance processes and procedures related to the Housing Voucher Cluster and Public and Indian Housing Programs to remedy the aforementioned deficiencies. Byran McClellan, CFO, will be responsible to implement this corrective action by December 31, 2021.

View Audit 401725

Finding 1161837 (2020-005)

Material Weakness 2020

City of Mount Vernon

NY

Questioned Costs Allowable Costs / Cost Principles Material Weakness § 200.430

Management Response: Due to turnover program pay records such as timesheets and equivalent documentation could not be located. The missing files had been stored on a drive maintained by a former employee and could not be recovered. The City implemented a records retention policy in 2023 and establis...

Management Response: Due to turnover program pay records such as timesheets and equivalent documentation could not be located. The missing files had been stored on a drive maintained by a former employee and could not be recovered. The City implemented a records retention policy in 2023 and established a system to ensure that all documentation supporting expenditures is properly gathered, organized, and retained in compliance with federal requirements.

View Audit 371774 Questioned Costs: $1

Finding 574599 (2020-009)

Material Weakness 2020

Minnesota Chippewa Tribe

MN

Subrecipient Monitoring Material Weakness

Contact Person Luke Warnsholz, Executive Director Planned Corrective Action Due to cost constraints, there is a lack of adequate human services staff to perform monitoring of subrecipients. However, the Tribe will review subrecipient policies to determine what procedures can be implemented regarding...

Contact Person Luke Warnsholz, Executive Director Planned Corrective Action Due to cost constraints, there is a lack of adequate human services staff to perform monitoring of subrecipients. However, the Tribe will review subrecipient policies to determine what procedures can be implemented regarding the monitoring of subrecipient activities. Planned Completion Date Beginning in fiscal year 2025, the Tribe will work on developing and implementing policies and procedures regarding the monitoring of subrecipient activities.

View Audit 364856

Finding 569334 (2020-012)

Material Weakness 2020

St. Croix Chippewa Housing Authority

CA

Subrecipient Monitoring Material Weakness Reporting § 200.302 § 200.327

2020-012 Financial Statement Reconciliations/Tie-In Procedures Material Weakness Recommendation: The Housing Authority should adopt written reconciliation and tiein procedures into its financial policies and procedures manual. These policies should require timely reconciliations to take place as def...

2020-012 Financial Statement Reconciliations/Tie-In Procedures Material Weakness Recommendation: The Housing Authority should adopt written reconciliation and tiein procedures into its financial policies and procedures manual. These policies should require timely reconciliations to take place as defined under policy. Action Taken: The Housing Authority agrees with this finding and will implement this recommendation within 120 days of this audit report.

View Audit 360843

Finding 569333 (2020-011)

Material Weakness 2020

St. Croix Chippewa Housing Authority

CA

Matching / Level of Effort / Earmarking Subrecipient Monitoring Cash Management § 200.305

2020-011 Timely Grant Draws Material Weakness Recommendation: The Housing Authority should adopt written grant draw policies into its financial policies and procedures manual. Financials should be reviewed monthly, and drawdowns made as needed. Action Taken: The Housing Authority agrees with this fi...

2020-011 Timely Grant Draws Material Weakness Recommendation: The Housing Authority should adopt written grant draw policies into its financial policies and procedures manual. Financials should be reviewed monthly, and drawdowns made as needed. Action Taken: The Housing Authority agrees with this finding and will implement this recommendation within 120 days of this audit report.

View Audit 360843

Finding 569329 (2020-007)

Material Weakness 2020

St. Croix Chippewa Housing Authority

CA

Eligibility HUD Housing Programs Material Weakness

2020-007 Tenant Eligibility Material Weakness Recommendation: In general, we continue to recommend a review of the re-certification process to determine areas of weakness. Specifically, we recommend the use of a standard checklist in the recertification process. We further recommend that each re-cer...

2020-007 Tenant Eligibility Material Weakness Recommendation: In general, we continue to recommend a review of the re-certification process to determine areas of weakness. Specifically, we recommend the use of a standard checklist in the recertification process. We further recommend that each re-certification clerk’s work be routinely audited. We also recommend more standardization in resident files organization of information, and procedures established to make sure all files are maintained adequately in order to be compliant. Action Taken: The Housing Authority agrees with this finding and will implement this recommendation within 120 days of this audit report.

View Audit 360843

Finding 569328 (2020-006)

Material Weakness 2020

St. Croix Chippewa Housing Authority

CA

Subrecipient Monitoring Material Weakness Internal Control / Segregation of Duties

2020-006Minutes/Resolutions Material Weakness Recommendation: Written minutes should be prepared for each council meeting along with any approved resolutions/recommendations. The minutes and resolutions should be centrally filed, maintained by the Council’s Secretary, and easily accessible to the au...

2020-006Minutes/Resolutions Material Weakness Recommendation: Written minutes should be prepared for each council meeting along with any approved resolutions/recommendations. The minutes and resolutions should be centrally filed, maintained by the Council’s Secretary, and easily accessible to the auditor. Action Taken: The Housing Authority agrees with this finding and will implement this recommendation within 120 days of this audit report.

View Audit 360843

Finding 569327 (2020-005)

Material Weakness 2020

St. Croix Chippewa Housing Authority

CA

Cash Management Material Weakness

2020-005 Timely Bank Reconciliations Material Weakness Recommendation: Implement currently adopted policies over bank reconciliations. Action Taken: The Housing Authority agrees with this finding and will implement this recommendation within 120 days of this audit report.

View Audit 360843

Finding 569326 (2020-004)

Material Weakness 2020

St. Croix Chippewa Housing Authority

CA

Cash Management Material Weakness

2020-004 Cash Management Material Weakness Recommendation: Auditors recommend filing documentation for grant draws along with payment vouchers throughout the year. Action Taken: Documentation for grant draws and expenditures to support the request for funding is vouchered along with wire transaction...

2020-004 Cash Management Material Weakness Recommendation: Auditors recommend filing documentation for grant draws along with payment vouchers throughout the year. Action Taken: Documentation for grant draws and expenditures to support the request for funding is vouchered along with wire transaction documentation that requires the signature of 3 Tribal Council for processing.

View Audit 360843

Finding 569324 (2020-002)

Material Weakness 2020

St. Croix Chippewa Housing Authority

CA

Questioned Costs Procurement, Suspension & Debarment Cash Management

2020-002 Support for Expenditures Material Weakness Recommendation: Auditor’s recommend the governing board require proper documentation on all types of expenditures and that only members of the board have the authority to sign checks. Action Taken: The Tribal Chairperson has been a designated check...

2020-002 Support for Expenditures Material Weakness Recommendation: Auditor’s recommend the governing board require proper documentation on all types of expenditures and that only members of the board have the authority to sign checks. Action Taken: The Tribal Chairperson has been a designated check signer as well as the St. Croix Tribal Council reviews revenue and expenditures on a monthly basis.

View Audit 360843 Questioned Costs: $1

Corrective Action Plans

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