Corrective Action Plans

Finding 551098 (2024-010)

Material Weakness 2024

NC

Student Financial Aid Eligibility Material Weakness

Student Financial Assistance Cluster - Assistance Listing No. No. 84.268 Recommendation: We recommend the University review its process around sending exit counseling information to students to ensure this information is received and the University is performing required procedures. Explanation of d...

Student Financial Assistance Cluster - Assistance Listing No. No. 84.268 Recommendation: We recommend the University review its process around sending exit counseling information to students to ensure this information is received and the University is performing required procedures. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: The Financial Aid Office has hired additional staff, enhanced training efforts, and established a standard procedure to send loan exit counseling notifications to students at the end of each term, ensuring regulatory compliance. Name(s) of the contact person(s) responsible for corrective action: Damon Wade, VP for Enrollment Management and Marketing Planned completion date for corrective action plan: June 2025

View Audit 352022

Finding 551082 (2024-003)

Material Weakness 2024

Housing Authority of the Township of North Bergen

NJ

Questioned Costs HUD Housing Programs Eligibility

Views of responsible officials and planned corrective action: The Authority accepts the recommendation of the auditor. The Authority will increase oversight in the Public and Indian Housing and Section 8 Housing Choice Vouchers Programs to ensure that established internal control policies are bein...

Views of responsible officials and planned corrective action: The Authority accepts the recommendation of the auditor. The Authority will increase oversight in the Public and Indian Housing and Section 8 Housing Choice Vouchers Programs to ensure that established internal control policies are being followed on a timely basis. Julio Marenco, Interim Executive Director, will be responsible to implement this corrective action by June 30, 2025.

View Audit 352015 Questioned Costs: $1

Finding 548642 (2024-001)

Material Weakness 2024

Women in Safe Homes, Inc.

AK

Subrecipient Monitoring Material Weakness Reporting

Federal Award Finding: 2024-001 Material Weakness in Compliance and Internal Control over Reporting Name and Contact Person: Adrienne Gaines, Executive Director Corrective Action: WISH has evaluated and revised the processes and procedures regarding monitoring of grant reporting and deadlines, as we...

Federal Award Finding: 2024-001 Material Weakness in Compliance and Internal Control over Reporting Name and Contact Person: Adrienne Gaines, Executive Director Corrective Action: WISH has evaluated and revised the processes and procedures regarding monitoring of grant reporting and deadlines, as well as the processes for maintaining records supporting all grant reports, submission details, and corresponding approvals. Management will appoint an individual to oversee this for each grant. Proposed Completion Date: June 30, 2025

View Audit 351973

Finding 548010 (2024-001)

Material Weakness 2024

County of Shasta

CA

Procurement, Suspension & Debarment Subrecipient Monitoring Material Weakness

The County will implement procedures to ensure suspension and debarment checks are performed for all vendors. The County will also provide direction to staff involved in the preparation on contracts to ensure compliance. The County commits to mitigate the risks associated with engaging vendors who...

The County will implement procedures to ensure suspension and debarment checks are performed for all vendors. The County will also provide direction to staff involved in the preparation on contracts to ensure compliance. The County commits to mitigate the risks associated with engaging vendors who may be ineligible for federal funding.

View Audit 351917

Finding 548004 (2024-004)

None 2024

Quincy Asian Resources, Inc.

MA

Questioned Costs Material Weakness

Views of Responsible Officials and Planned Corrective Action: While Quincy Asian Resources, Inc. concurs with the ultimate outcome identified in the finding, we want to emphasize our review indicates all transactions were handled with appropriate intent. The identified adjustments were primarily due...

Views of Responsible Officials and Planned Corrective Action: While Quincy Asian Resources, Inc. concurs with the ultimate outcome identified in the finding, we want to emphasize our review indicates all transactions were handled with appropriate intent. The identified adjustments were primarily due to timing of personnel transitions on our accounting department. To further strengthen our financial reporting processes, we have subsequently hired a new controller with extensive nonprofit accounting experience. This addition to our team Views of Responsible Officials and Planned Corrective Action: While Quincy Asian Resources, Inc. concurs with the ultimate outcome identified in the finding regarding timesheet the identified documentation issues stemmed from procedural gaps in our timekeeping processes rather than any misuse of funds. Our internal review confirms employees dedicated appropriate time to grant activities, but our timecard reporting system did not adequately capture this effort due to: 1. Staff’s incomplete understanding of federal documentation requirements 2. Need for enhanced timesheet review protocols 3. Limitations of our current time tracking system To strengthen our processes, we are: 1. Implementing a new time tracking system better aligned with federal requirements 2. Providing comprehensive training to all employees on proper time reporting 3. Training supervisors on thorough timesheet review procedures 4. Enhancing our internal controls around time documentation These improvements will ensure our documentation fully supports the valuable grant-funded services we provide to the community

View Audit 351904 Questioned Costs: $1

Finding 547993 (2024-004)

Material Weakness 2024

Umpqua Public Transportation District

OR

Procurement, Suspension & Debarment Material Weakness Internal Control / Segregation of Duties § 200.318

Finding 2024-004 - Procurement (Material Weakness) CFDA Title and Number: 20.526 Grants for Buses and Bus Facilities Formula Program Name of Federal Agency: Department of Transportation Internal Control over Compliance: Procurement CFDA Title and Number: 20.513 (5310) Enhanced Mobility of Seniors ...

Finding 2024-004 - Procurement (Material Weakness) CFDA Title and Number: 20.526 Grants for Buses and Bus Facilities Formula Program Name of Federal Agency: Department of Transportation Internal Control over Compliance: Procurement CFDA Title and Number: 20.513 (5310) Enhanced Mobility of Seniors & Individuals with Disabilities. Name of Federal Agency: Department of Transportation Internal Control over Compliance: Procurement CFDA Title and Number: 20.509 (5311) Operating Assistance. Formula Grants for Rural. Name of Federal Agency: Department of Transportation Internal Control over Compliance: Procurement Criteria: 2 CFR Part 200.318(a-k) Numerous procurement regulations exist requiring federal grant awardees to develop and implement internal control policies and procedures related to procurement activities. Condition: The District made expenditures and engaged in contracts without following relevant procurement requirements. Cause: Management lacked awareness of relevant procurement regulations. Consequently, no internal control policies or procedures related to procurement existed, or policies and procedures existed but were not implemented. Effect or Potential Effect: The lack of effective internal controls over procurement activities allowed for widespread deficiencies and noncompliant activities, which resulted in the District’s revocation of one award. Questioned Cost: No Context: Without proper procurement policies and procedures, the risk of compliance requirement violations is significant. The District failed to meet numerous procurement requirements throughout the year, and ultimately lost a significant award for bus acquisitions. Repeat of a Prior-Year Finding: No Recommendation: The District should design and implement internal controls related to procurement regulations that will reduce the risk that the District’s procurement activities are not in compliance with federal regulations. District's Response: The District acknowledges the weaknesses and its intention of correcting weaknesses. Corrective Action Plan: The District’s shall design and implement, or revise, policies and procedures for meeting procurement compliance requirements. The District will work with ODOT to ensure compliance. The new procurement policy must include not only policies for procurements, but also for documentation of solicitations, contracts activities. Planned Implementation Date: October 31, 2024 Responsible Persons: District Board, Umpqua Public Transit District

View Audit 351895

Finding 547987 (2024-003)

Material Weakness 2024

Umpqua Public Transportation District

OR

Cash Management Subrecipient Monitoring Material Weakness § 200.302 § 200.328 § 200.329

Finding 2024-003 – Fiscal Management (Material Weakness) CFDA Title and Number: 20.513 (5310) Enhanced Mobility of Seniors and Individuals with Disabilities. Name of Federal Agency: Department of Transportation Internal Control over Compliance: Cash Management CFDA Title and Number: 20.509 (53...

Finding 2024-003 – Fiscal Management (Material Weakness) CFDA Title and Number: 20.513 (5310) Enhanced Mobility of Seniors and Individuals with Disabilities. Name of Federal Agency: Department of Transportation Internal Control over Compliance: Cash Management CFDA Title and Number: 20.509 (5311) Operating Assistance. Formula Grants for Rural. Name of Federal Agency: Department of Transportation Internal Control over Compliance: Cash Management Criteria: 2 CFR Part 200.302(b)(1) The financial management system of each non-federal entity must provide for the following: Identification, in its accounts, of all Federal awards received and expended and the Federal programs under which they were received. 200.302(b)(2) Accurate, current, and complete disclosure of the financial results of each Federal award or program in accordance with the reporting requirements set forth in 200.328 and 200.329. Condition: During portions of the fiscal year, the District prepared reimbursement calculations relying on an internally developed spreadsheet tool, rather than using amounts solely obtained from the general ledger and supporting documentation. The reimbursement reports were prepared by management with limited review. Conflicts over review and other monitoring procedures occurred, and were not always resolved. Complete supporting documentation for the claimed costs were not always available. Claims and other financial reports due to ODOT were regularly submitted after the due dates. The late and/or unsubstantiated filings have resulted in lost claims for the District, and potential refunding of reimbursements received. Cause: Internal control procedures assuring timely and accurate preparation of reports and filing of the reimbursement requests were not designed or implemented adequately. Maintaining sufficient and accurate supporting documentation for each report was not possible because original data was not relied upon by management, to complete the reports and reimbursement requests. Effect or Potential Effect: The lack of effective internal control activities over cash management, including financial reporting, allowed for reporting and claims errors, from simple calculation errors to requests for reimbursements of unauthorized purposes. Improper financial reporting to the ODOT occurred regularly. Lack of timely filing of reimbursement requests for amounts claimed, resulted in lost revenues and claims that may be required to be returned. Questioned Cost: No Context: Delays in filing reimbursement claims, delays in filing financial reports to ODOT, and internal disputes regarding completion of grant reimbursement request procedures were evident. Weak or nonexistent controls over cash management, including fiscal management, may result in lost revenues and risks of creating unnecessary liabilities in the form of refunds due to ODOT. Repeat of a Prior-Year Finding: Yes Recommendation: The District should design and implement internal control policies and procedures for cash management, including fiscal management and financial reporting. Monitoring, information and communication control activities should also be designed and implemented as part of the effort the reduce the risk of continued matters of noncompliance related to cash management. District's Response: The District acknowledges the weaknesses and its intention of correcting weaknesses. Corrective Action Plan: The District’s General Manager resigned effective September 13, 2024. The Board has adopted a plan to procure qualified professional assistance to evaluate and restructure the organization and assist in daily management activities until a new General Manager can be hired and trained. Additional assistance for resolving these deficiencies has been offered by ODOT and accepted by the Board. Planned Implementation Date: October 31, 2024 Responsible Persons: District Board, Umpqua Public Transit District

View Audit 351895

Finding 547966 (2024-003)

Material Weakness 2024

Community Action Partnership of Mercer County

PA

Questioned Costs Cash Management Reporting

Condition: During audit procedures, we noted expenditures were charged to the program via adjusting journal entry for which adequate supporting documentation could not be provided. Corrective Actions: Going forward, the Organization will implement procedures requiring supporting documentation for a...

Condition: During audit procedures, we noted expenditures were charged to the program via adjusting journal entry for which adequate supporting documentation could not be provided. Corrective Actions: Going forward, the Organization will implement procedures requiring supporting documentation for all journal entries made to the program to ensure that amount charged to the program are actual expenses/expenditure of the program. Employee Responsible for Corrective Action: Michelle Clarke Completion Date: March 31, 2025

View Audit 351890 Questioned Costs: $1

Finding 547965 (2024-002)

Material Weakness 2024

Community Action Partnership of Mercer County

PA

Allowable Costs / Cost Principles Material Weakness

Condition: During the audit several adjusting journal entries were proposed. These entries would have a material effect on the financial statements if not proposed and recorded. Corrective Actions: Going forward, the Organization will implement procedures to perform a more comprehensive monthly clo...

Condition: During the audit several adjusting journal entries were proposed. These entries would have a material effect on the financial statements if not proposed and recorded. Corrective Actions: Going forward, the Organization will implement procedures to perform a more comprehensive monthly closing, especially at year end, to ensure that all general ledger accounts are reviewed and reconciled to arrive at a complete and accurate set of books and records to be audited. Employee Responsible for Corrective Action: Michelle Clarke Completion Date: March 31, 2025

View Audit 351890

Finding 547964 (2024-001)

Material Weakness 2024

Community Action Partnership of Mercer County

PA

Questioned Costs Allowable Costs / Cost Principles Cash Management § 200.403

Condition: During audit procedures, it was noted total reimbursements received exceeded expenditures. The Organization has charged costs to the program and received reimbursement; however, the products cost charged to the program had not been received prior to June 30, 2024. Corrective Actions: Goi...

Condition: During audit procedures, it was noted total reimbursements received exceeded expenditures. The Organization has charged costs to the program and received reimbursement; however, the products cost charged to the program had not been received prior to June 30, 2024. Corrective Actions: Going forward, the Organization will review all vouchers being charged to the program to make sure costs have been incurred before being charged to the program. Employee Responsible for Corrective Action: Michelle Clarke Completion Date: March 31, 2025

View Audit 351890 Questioned Costs: $1

Finding 547954 (2024-001)

Material Weakness 2024

County of El Dorado

CA

Eligibility Material Weakness Matching / Level of Effort / Earmarking

Reference Number: 2024-001 Name of Contact Person: Kelly Nakamura Phone: 530-642-7167 Email: Kelly.nakamura@edcgov.us Corrective Action: • Increasing Staffing Levels: o By April 1, 2025, the County will have 11 newly trained Eligibility Specialists who are fully trained to proces...

Reference Number: 2024-001 Name of Contact Person: Kelly Nakamura Phone: 530-642-7167 Email: Kelly.nakamura@edcgov.us Corrective Action: • Increasing Staffing Levels: o By April 1, 2025, the County will have 11 newly trained Eligibility Specialists who are fully trained to process Medi-Cal applications. o Ongoing recruitment efforts will continue to fill vacant positions, including the hiring additional trainees to build capacity for timely eligibility determinations. • Improving Internal Processes: o The County is conducting a review of workflows to identify inefficiencies and implement streamlined processes that eliminate bottlenecks. o Digital tools and automation are being introduced to enhance efficiency and accuracy case processing. • Providing Additional Support: o Overtime opportunities are being offered to eligibility specialists to expedite the processing of pending cases. o Applications are being assigned to Eligibility Specialists on a weekly basis to ensure consistent progress in reducing the backlog. • Enhancing Monitoring and Reporting: o Administrative staff are generating weekly reports from CalSAWS to track the status Medi-Cal pending applications and monitor progress. o Weekly meetings are being held with supervisors to review performance, discuss challenges, and adjust strategies as needed. • Strengthening Internal Controls: o The County is improving its internal controls to prevent future delays, including increased use of system reports to identify applications nearing the 45-day processing requirement, regular audits of the eligibility determination process and enhanced compliance training for staff. • Ongoing Evaluation and Adaptation: o Progress will be assessed weekly to ensure the implemented measures are effective. Adjustments will be made as needed to maintain compliance with the 45-day requirement. Proposed Completion Date: The county has already implemented this process and expects it to be completed by July 31, 2026.

View Audit 351887

Finding 547925 (2024-002)

Material Weakness 2024

Local Area Workforce Development South Central

PR

Material Weakness Reporting Internal Control / Segregation of Duties

We gave instructions to the Finance Department Director to strengthen internal procedures and controls to ensure accurate preparation and submission of financial reports within the required timeframe. Implementation Date: April 1, 2025. Responsible Person: Mrs. Rosa J. La Torre Santiago, Executive...

We gave instructions to the Finance Department Director to strengthen internal procedures and controls to ensure accurate preparation and submission of financial reports within the required timeframe. Implementation Date: April 1, 2025. Responsible Person: Mrs. Rosa J. La Torre Santiago, Executive Director

View Audit 351865

Finding 547783 (2024-004)

Material Weakness 2024

Rural Resources Community Action

WA

Subrecipient Monitoring Material Weakness Reporting

FINDING 2024-004 – Reporting; Material Weakness in Internal Control over Compliance and Instance of Material Noncompliance Views of responsible officials and planned corrective actions: Management agrees with the assessment and has implemented corrective action. The Organization has implemented a re...

FINDING 2024-004 – Reporting; Material Weakness in Internal Control over Compliance and Instance of Material Noncompliance Views of responsible officials and planned corrective actions: Management agrees with the assessment and has implemented corrective action. The Organization has implemented a review and documentation control surrounding the timely submission of all financial reports, special reports, and performance reports. Reports required by contract must be submitted timely and must have two levels of documented review. All financial reports required by contract must have a documented review by a member of the fiscal department. Additionally, report backup and proof of timely submission must be retained. Contact Persons: Ryan Berendsen, Chief Operating Officer Delana Kromer, Controller

View Audit 351833

Finding 547731 (2024-011)

Material Weakness 2024

County of Orange, California

CA

Subrecipient Monitoring Reporting Allowable Costs / Cost Principles § 200.303 § 200.510

2024-011 Program: Disaster Grants – Public Assistance (Presidentially Declared Disasters) Federal Financial Assistance Listing Number: 97.036 Federal Grantor: U.S. Department of Homeland Security Pass Through: California Office of Emergency Services Award No. and Year: 059-00000 Compliance Requireme...

2024-011 Program: Disaster Grants – Public Assistance (Presidentially Declared Disasters) Federal Financial Assistance Listing Number: 97.036 Federal Grantor: U.S. Department of Homeland Security Pass Through: California Office of Emergency Services Award No. and Year: 059-00000 Compliance Requirements: Other - Title 2 U.S. Code of Federal Regulations (CFR) Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance) §200.510(b) - Schedule of Expenditures of Federal Awards Type of Finding: Material Weakness in Internal Control Over Compliance Criteria: In accordance with the 2024 OMB Compliance Supplement, nonfederal entities must record expenditures on the Schedule of Expenditures of Federal Awards (SEFA) when (1) FEMA has approved the nonfederal entity’s Project, and (2) the nonfederal entity has incurred the eligible expenditures. FEMA’s approval of a subaward is indicated when FEMA obligates the federal share of the eligible project cost to the recipient. Federal awards expended in years subsequent to the fiscal year in which the Project is approved are to be recorded on the nonfederal entity’s SEFA in those subsequent years. In addition, section 200.303 of the Uniform Guidance states that recipients and subrecipients must establish effective internal control over the federal awards, including controls over the accuracy of program information and expenditure amounts. Condition: During our audit procedures performed over the Schedule of Expenditures of Federal Awards and expenditures reported for the Disaster Grants – Public Assistance (Presidentially Declared Disasters) we noted the County reported expenditures totaling $5,820,436 that should have been reported on the FY 2023 SEFA, as the granting agency approved the expenditures in FY 2023 and the County incurred the expenditures prior to June 30, 2023. Cause: The County lacks adequate internal controls to ensure the SEFA is completely and accurately stated. Effect: The initial FY 2024 SEFA provided was overstated by $5,820,436. However, we noted these expenditures would not have had a material effect on the FY 2023 SEFA. Questioned Costs: No questioned costs were identified as a result of our procedures. Context/Sampling: No sampling was used. Program expenditures on the SEFA were reconciled to supporting records. Repeat Finding from Prior Years: No. Recommendation: We the recommend that the County establish policies and implement internal controls to ensure that expenditures are reported on the SEFA in accordance with program requirements. Management Response and Corrective Action: 1. Person Responsible: Trevor Richardson, OCPW Emergency Manager 2. Corrective Action Plan: Due to the change in reporting guidance, we will now report the full amount of the award in the fiscal year it is approved, based on the obligation letter, instead of on a cash basis. 3. Anticipated Implementation date: Effective immediately for FY24-25.

View Audit 351824

Finding 547598 (2024-006)

Material Weakness 2024

Housing Authority of the County of Monterey

CA

Questioned Costs HUD Housing Programs Eligibility

Federal Agency: U.S. Department of Housing and Urban Development Federal Program Titles: Section 8 Housing Choice Vouchers and Mainstream Vouchers Federal Assistance Listing Numbers: 14.871, 14.879, and 14.EHV Noncompliance – N. Special Tests and Provisions – Selections from the Waiting List Non Com...

Federal Agency: U.S. Department of Housing and Urban Development Federal Program Titles: Section 8 Housing Choice Vouchers and Mainstream Vouchers Federal Assistance Listing Numbers: 14.871, 14.879, and 14.EHV Noncompliance – N. Special Tests and Provisions – Selections from the Waiting List Non Compliance Material to the Financial Statements: Yes Material Weakness in Internal Control over Compliance for Special Tests and Provisions Criteria: Selections from the Waiting List. The PHA must have written policies in its HCVP administrative plan for selecting applicants from the waiting list and PHA documentation must show that the PHA follows these policies when selecting applicants from the waiting list. Except for as provided in 24 CFR section 982.203(Special admission (non-waiting list)), all families admitted to the program must be selected from the waiting list. “Selection” from the waiting list generally occurs when the PHA notifies a family whose name reaches the top of the waiting list to come in to verify eligibility for admission (24CFR sections 5.410, 982.54(d), and 982.201 through 982.207). Condition: Based upon inspection of the waiting list provided to us during the time of audit, the new move-in list and discussions with management, it could not be determined with any certainty that new move-ins were selected from the wait list in an order that is in accordance with the Authority’s policy. Context: Forty-two (42) names were selected from the new move-in list and those names were to be traced to the waiting list to verify new move-ins were chosen in an order that was in accordance with the Authority’s policy. It was determined that thirty-eight (38) out of forty-two (42) new move-ins selected could not be traced with any certainty back to the Authority's waiting list. Known Questioned Costs: $741,293. Cause: There is a material weakness in internal controls over the compliance for the special tests and provisions type of compliance related to selections from the waiting list. The Authority has not properly considered, designed, implemented, maintained and monitored a system of internal controls that assures the program is in compliance. Effect: The Housing Voucher Cluster is in material non-compliance with the special tests and provisions type of compliance related to selections from the waiting list. Recommendation: We recommend the Authority design and implement internal control procedures that will reasonably assure compliance with the Uniform Guidance and the compliance supplement. Views of responsible officials and planned corrective action: The Authority has recognized the material weakness in the Housing Voucher Cluster will implement internal control procedures that will ensure compliance with federal regulations. Gabriela Rivero, Executive Assistant, will be responsible to implement this corrective action by June 30, 2025.

View Audit 351761 Questioned Costs: $1

Finding 547594 (2024-004)

Material Weakness 2024

Housing Authority of the County of Monterey

CA

Questioned Costs Special Tests & Provisions HUD Housing Programs

Federal Agency: U.S. Department of Housing and Urban Development Federal Program Titles: Housing Voucher Cluster Federal Assistance Listing Numbers: 14.871, 14.879, and 14.EHV Material Noncompliance – N. Special Tests and Provisions – HQS Inspections Non Compliance Material to the Financial Statemen...

Federal Agency: U.S. Department of Housing and Urban Development Federal Program Titles: Housing Voucher Cluster Federal Assistance Listing Numbers: 14.871, 14.879, and 14.EHV Material Noncompliance – N. Special Tests and Provisions – HQS Inspections Non Compliance Material to the Financial Statements: Yes Material Weakness in Internal Control over Compliance for Special Tests and Provisions Criteria: HQS Inspections. Per the Authority's HCV Admin Plan, the PHA must inspect the unit leased to a family at least biennially to determine if the unit meets HQS standards and the PHA must conduct quality control re-inspections. The PHA must prepare a unit inspection report (24 CFR sections 982.158(d) and 982.405(b)). These inspection reports 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 inspection reports that were unavailable for examination at the time of audit. Context: Of a sample size of fifty-eight (58) units, sixteen (16) units did not have a biennial HQS inspection performed. Our sample size is statistically valid. Known Questioned Costs: $325,733 Cause: There is a material weakness in internal controls over the compliance for the special tests and provisions type of compliance related to HQS inspections. The Authority has not properly considered, designed, implemented, maintained and monitored a system of internal controls that assures the program is in compliance. Effect: The Housing Voucher Cluster is in material non-compliance with the with the special tests and provisions type of compliance related to HQS inspections. Recommendation: We recommend the Authority design and implement internal control procedures that will reasonably assure compliance with the Uniform Guidance and the compliance supplement. Views of responsible officials and planned corrective action: The Authority has recognized the material weakness in the Housing Voucher Cluster will implement internal control procedures that will ensure compliance with federal regulations. Gabriela Rivero, Executive Assistant, will be responsible to implement this corrective action by June 30, 2025.

View Audit 351761 Questioned Costs: $1

Finding 547592 (2024-003)

Material Weakness 2024

Housing Authority of the County of Monterey

CA

Questioned Costs Special Tests & Provisions HUD Housing Programs

Federal Agency: U.S. Department of Housing and Urban Development Federal Program Titles: Housing Voucher Cluster Federal Assistance Listing Numbers: 14.871, 14.879, and 14.EHV Noncompliance – N. Special Tests and Provisions – Housing Quality Standards (HQS) Enforcement Non Compliance Material to the...

Federal Agency: U.S. Department of Housing and Urban Development Federal Program Titles: Housing Voucher Cluster Federal Assistance Listing Numbers: 14.871, 14.879, and 14.EHV Noncompliance – N. Special Tests and Provisions – Housing Quality Standards (HQS) Enforcement Non Compliance Material to the Financial Statements: Yes Material Weakness in Internal Control over Compliance for Special Tests and Provisions Criteria: HQS Enforcement. For units under HAP contract that fail to meet HQS, the PHA must require the owner to correct all life threatening HQS deficiencies within 24 hours after the inspections and all other deficiencies within 30 days or within a specified PHA-approved extension. Condition: Based upon inspection of the Authority’s files and on discussion with management, the Authority did not properly abate or provide proper extension documentation for failed inspections selected for testing. In addition, there were inspection reports that were unavailable for examination at the time of audit. Context: The Authority did not provide proper extension documentation or properly abate or seven (7) out of twenty-seven (27) failed inspections selected for testing. In addition, the Authority was unable to provide four (4) out twenty-seven (27) failed or passed inspections selection for testing. As a result, the Authority was not in compliance with the HQS as required by 24 CFR sections 982.158(d) and 982.405(b). Known Questioned Costs: $31,398 Cause: There is a material weakness in internal controls over the compliance for the special tests and provisions type of compliance related to HQS enforcement. The Authority has not properly considered, designed, implemented, maintained and monitored a system of internal controls that assures the program is in compliance. Effect: The Housing Voucher Cluster is in material non-compliance with the special tests and provisions type of compliance related to HQS enforcement. Recommendation: We recommend the Authority design and implement internal control procedures that will reasonably assure compliance with the Uniform Guidance and the compliance supplement. Views of responsible officials and planned corrective action: The Authority has recognized the material weakness in the Housing Voucher Cluster and will implement internal control procedures that will ensure compliance with federal regulations. Gabriela Rivero, Executive Assistant, will be responsible to implement this corrective action by June 30, 2025.

View Audit 351761 Questioned Costs: $1

Finding 547590 (2024-002)

Material Weakness 2024

Housing Authority of the County of Monterey

CA

Questioned Costs HUD Housing Programs Eligibility

Finding 2024-002 Federal Agency: U.S. Department of Housing and Urban Development Federal Program Titles: Housing Voucher Cluster Federal Assistance Listing Numbers: 14.871, 14.879, and 14.EHV Noncompliance – E. Eligibility – Tenant Files Non Compliance Material to the Financial Statements: Yes Mat...

Finding 2024-002 Federal Agency: U.S. Department of Housing and Urban Development Federal Program Titles: Housing Voucher Cluster Federal Assistance Listing Numbers: 14.871, 14.879, and 14.EHV 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 3,785 units. Of a sample size of fifty-eight (58) tenant files, the following was noted: • Seven tenant files were missing entirely • Original application was missing in 1 file • Declaration of Section 214 Status form was missing in 1 file • HUD-9887 form was missing in 1 file • Lead based paint form was missing in seven files • Signed lease was missing in 8 files • HUD-50058 form was missing in 1 file • Verification of income and assets was missing in 2 files Our sample size is statistically valid. Known Questioned Costs: $297,971 Cause: There is a material weakness in the Housing Voucher Cluster in internal controls over the compliance for the eligibility type of compliance related to the maintenance of tenant files. The Authority has not properly considered, designed, implemented, maintained and monitored a system of internal controls that assures the program is in compliance. Effect: The Housing Voucher Cluster is in material non-compliance with the eligibility type of compliance related to the maintenance of tenant files. Recommendation: We recommend the Authority design and implement internal control procedures that will assure compliance with the Uniform Guidance and the compliance supplement. Views of responsible officials and planned corrective action: The Authority has recognized the material weakness in the Housing Voucher Cluster and will implement internal control procedures that will ensure compliance with federal regulations. Gabriela Rivero, Executive Assistant, will be responsible to implement this corrective action by June 30, 2025.

View Audit 351761 Questioned Costs: $1

Finding 547579 (2024-002)

Material Weakness 2024

Newberry College

SC

Reporting Student Financial Aid Eligibility

Enrollment Reporting to NSLDS Planned Corrective Action: Finalize automation of file configuration, reporting schedule, and transmission process. Person Responsible for Corrective Action Plan: Sid Parrish, Vice President of Institutional Reporting Anticipated Date of Completion: December 31, 2025...

Enrollment Reporting to NSLDS Planned Corrective Action: Finalize automation of file configuration, reporting schedule, and transmission process. Person Responsible for Corrective Action Plan: Sid Parrish, Vice President of Institutional Reporting Anticipated Date of Completion: December 31, 2025 While Newberry College successfully transitioned to the JI platform as planned, the automation of enrollment reporting to the National Student Loan Data System (NSLDS) has not yet been fully implemented on the projected timeline. This delay is primarily due to the unexpectedly complex nature of the data table transition required within the new system. The structure and formatting of enrollment data in JI differed significantly from our previous platform, requiring extensive mapping, validation, and customization to ensure accuracy and alignment with NSLDS reporting requirements. That portion of the work is now complete. In addition, the College experienced a change in personnel within the Registrar's Office. While our new Registrar brings significant experience with other student information systems, she required full training on the JI system before assuming full reporting responsibilities. To ensure resolution, the College's Director of Institutional Research is working closely with the Information Technology team and the new Registrar to finalize the automation process. This includes active collaboration with both the National Student Clearinghouse (NSC) and NSLDS to identify, understand, and clear errors that have surfaced in early iterations of the automated enrollment file. These efforts have helped isolate remaining issues and informed adjustments to the file configuration, reporting schedule, and transmission process. We believe this will lead to a fully functional, automated enrollment reporting process by the end of fiscal year 2025. In the interim, the Registrar is manually submitting enrollment files to the NSC to ensure that student status information is communicated to NSLDS in a timely and accurate manner. This manual submission process remains in place and will continue until the automated solution is fully operational.

View Audit 351759

Finding 547566 (2024-001)

Material Weakness 2024

City of Vallejo

CA

Special Tests & Provisions Subrecipient Monitoring Material Weakness

CORRECTIVE ACTION PLAN Reference Number: 2024-001 Name of Contact Person: Chari Corleto, Administrative Manager Corrective Action: Per OMB Compliance supplement under special tests and provisions and 24CFR Part 92 properties funded by HOME the City of Vallejo Housing and Community Development...

CORRECTIVE ACTION PLAN Reference Number: 2024-001 Name of Contact Person: Chari Corleto, Administrative Manager Corrective Action: Per OMB Compliance supplement under special tests and provisions and 24CFR Part 92 properties funded by HOME the City of Vallejo Housing and Community Development Department will have an annual HQS inspection schedule and conducted within 90 to 120 days of the last completed inspection beginning calendar year 2025. The property owner will be notified via email and USPS of any deficiencies found and must take corrective action to resolve each deficiency within 30 calendar days from the notice date. The Avian Glen project located at 301 Avian Drive, Vallejo, Ca is a 25-unit project and Blue Oak Landing is a 74-unit project located at 2118 Sacramento Street, Vallejo, Ca. Unit inspections for both projects will be conducted on an annual basis and according to the timeline listed in this corrective action plan. Inspections will be conducted by a third-party entity and will be included during the project monitoring process each year. The completed HQS inspection reports will be retained in the City of Vallejo system of records for the HOME program in an electronic file format listed by fiscal year. The project monitoring visits will be: • Avian Glen – will be monitored and inspection completed for FY 24/25 by June 30, 2025. • Blue Oak Landing – HQS Inspections completed for FY 24/25 on March 13, 2025 Monitoring site visit will be completed by June 30, 2025. Proposed Completion Date: June 30, 2024

View Audit 351748

Finding 547554 (2024-001)

Material Weakness 2024

Chicago Citywide Literacy Coalition Dba Scalelit

IL

Subrecipient Monitoring Allowable Costs / Cost Principles Material Weakness § 200.430

2024-001 – MATERIAL WEAKNESS IN INTERNAL CONTROLS OVER FINANCIAL REPORTING In July 2024, scaleLIT switched accounting firms. This engagement has led to a more robust monthly close-out process to ensure accurate and complete class allocations. The Director of Operations meets with the firm weekly to ...

2024-001 – MATERIAL WEAKNESS IN INTERNAL CONTROLS OVER FINANCIAL REPORTING In July 2024, scaleLIT switched accounting firms. This engagement has led to a more robust monthly close-out process to ensure accurate and complete class allocations. The Director of Operations meets with the firm weekly to review accounts receivable, expense and income coding and allocations, and other activities related to billing and invoicing. The Director of Operations and Executive Director meet monthly with another accounting team member to review monthly financial reports. PART III - FEDERAL PROGRAM AUDIT FINDINGS 2024-001 – MATERIAL WEAKNESS IN INTERNAL CONTROLS OVER FINANCIAL REPORTING As stated above, scaleLIT is now working with a new accounting firm, Jitasa. Jitasa tracks all grants on separate ledgers. scaleLIT meets with Jitasa weekly to ensure that all income and expenses are correctly allocated. scaleLIT is implementing time studies for staff beginning on April 1, 2025, to become more detailed with the staff time spent on federal contracts.

View Audit 351740

Finding 547497 (2024-001)

Material Weakness 2024

Deerbrook, Inc.

MO

Special Tests & Provisions Subrecipient Monitoring HUD Housing Programs

CORRECTIVE ACTION PLAN FOR THE YEAR ENDED JUNE 30, 2024 Title 2, U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance), Subpart F, Section 511 – Audit Findings Follow-up requires the auditee to pr...

CORRECTIVE ACTION PLAN FOR THE YEAR ENDED JUNE 30, 2024 Title 2, U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance), Subpart F, Section 511 – Audit Findings Follow-up requires the auditee to prepare a corrective action plan to address each audit finding included in the current year auditor’s reports. The Corrective Action Plan for Current Year Findings present our corrective action plan for the Financial Statement and/or Federal Award Findings described in the accompanying Schedule of Findings and Questioned Costs for the period ended June 30, 2024. Finding 2024-001 Responsible Party Name: Myra Cerna Position: Project Accountant Telephone Number: (816) 608-1799 x 259 Federal Agency Department of Housing and Urban Development Federal Program Supportive Housing for Persons with Disabilities (Sec 811) Compliance Requirements N – Special Tests and Provisions Finding Type Federal Awards Auditee’s Comment on Finding We agree with the auditor’s finding. Corrective Action Management reported that the failure(s) involved records related to the period managed by the predecessor management company. We will request and keep all required documentation from HUD and establish processes and procedures to ensure compliance with the Regulatory Agreement or Capital Advance Use Agreement. Anticipated Completion Date October 31, 2024

View Audit 351695

Finding 547411 (2024-001)

None 2024

90works, INC

FL

Internal Control / Segregation of Duties Allowable Costs / Cost Principles Material Weakness

Actions Planned in Response to Finding: In response to the finding, the organization will establish and implement a formal journal entry review process. All journal entries will be reviewed and approved by authorized personnel before being posted to the financial system. Additionally, clear document...

Actions Planned in Response to Finding: In response to the finding, the organization will establish and implement a formal journal entry review process. All journal entries will be reviewed and approved by authorized personnel before being posted to the financial system. Additionally, clear documentation of the review and approval process will be maintained to ensure accuracy and compliance. Official Responsible for Ensuring CAP: The Interim ED will be responsible for overseeing the implementation of corrective actions. Planned Completion Date for CAP: The planned completion date is June 30, 2025. Plan to Monitor Completion of CAP: The Board of Directors will monitor the completion of the CAP through reviews of journal entries to ensure the review process is being followed and all necessary documentation is maintained.

View Audit 351650

Finding 547357 (2024-003)

Material Weakness 2024

Puerto Rico Safe Drinking Water Treatment Revolving Loan Fund

PR

Matching / Level of Effort / Earmarking Material Weakness Reporting

PRDOH agrees with the finding. PRDOH has fixed the segregation of financial record, we already have the system in place in People Soft 8.4 in which permit the tracing of the funds to the level of expenditures that will be adequate.

View Audit 351620

Finding 547321 (2024-005)

Material Weakness 2024

Mount St. Mary's University

MD

Student Financial Aid Material Weakness Reporting

Identifying Number: 2024-005 – Special Tests – Enrollment Reporting Finding: Student status changes were not reported accurately to NSLDS. The audit team noted that the University does not appear to have a control in place to identify in a timely manner inaccurate information that was provided to th...

Identifying Number: 2024-005 – Special Tests – Enrollment Reporting Finding: Student status changes were not reported accurately to NSLDS. The audit team noted that the University does not appear to have a control in place to identify in a timely manner inaccurate information that was provided to the NSLDS by their third party servicer. Corrective Actions Taken or Planned: We agree with the auditors’ findings. NSLDS receives enrollment data from MSMU through the National Student Clearinghouse (NSC). If a student who was previously reported as enrolled is not listed subsequently, NSC will report the student as withdrawn. If MSMU does not update the records on a timely basis, NSC automatically reports to NSLDS that the student has withdrawn, which may not be the case. The errors in the reporting process have been resolved and the appropriate steps are in place to report on a timely basis. Person(s) Responsible for Correction Actions: Boyd Creasman, Provost Anticipated Completion Date: April 30, 2025

View Audit 351604

Corrective Action Plans

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