Corrective Action Plans

Finding 505267 (2024-001)

Material Weakness 2024

MI

Reporting School Nutrition Programs Internal Control / Segregation of Duties

Condition: The School District must submit monthly claims for reimbursement for meals served to eligible students within 60 days following the last day of the month covered by the claim (7 CFR sections 210.8, 220.11, 215.10, and 225.15 (c)). Upon preparation of meal reimbursement claims, the School ...

Condition: The School District must submit monthly claims for reimbursement for meals served to eligible students within 60 days following the last day of the month covered by the claim (7 CFR sections 210.8, 220.11, 215.10, and 225.15 (c)). Upon preparation of meal reimbursement claims, the School District is required to have controls in place to ensure the accuracy of the request for reimbursement. For certain periods during the year the School District asserts there was a review process in place over the reimbursement requests; however, the review was not documented, and therefore we were not able to verify if the control was in place and operating effectively. For other periods during the year, the School District did not have a control in place where a review of the meal counts entered into the Michigan Nutrition Data (MiND) system takes place, which could result in incorrect reporting of the number of free and reduced priced meals, which could result in the School District being reimbursed an incorrect amount by the Michigan Department of Education. Planned Corrective Action: The School District's business office performed a detailed review of all meal claim submissions for the 2023-2024 fiscal year. Ultimately, the lack of a review control during the 2023-2024 fiscal year did not result in inaccurate reporting or incorrect amount of reimbursement paid by the Michigan Department of Education. The Business Office has since implemented a formalized internal control procedure beginning in July 2024, whereby a formal documented review of the meal claim submission is performed. Contact person responsible for corrective action: Kevin Taratuta, Chief Financial and Operations Officer Anticipated Completion Date: August 1, 2024

View Audit 327892

Finding 504962 (2024-002)

Material Weakness 2024

Clarkson College

NE

Student Financial Aid Matching / Level of Effort / Earmarking Material Weakness § 200.303

Recommendation: We recommend the College review its procedures to ensure controls are in place to ensure to catch any inconsistencies that occur during the year. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: C...

Recommendation: We recommend the College review its procedures to ensure controls are in place to ensure to catch any inconsistencies that occur during the year. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: Clarkson College will review, revise and implement procedures for cost of attendance, award packaging, and R2T4, in addition to the review of the process of all monthly reconciliations related to Pell, Direct Loans, SEOG and FWS along with G5 drawdowns annotated and reconciled with the Finance Department. The 2024-2025 year has started off with a strong process to avoid these findings. The Director of Financial Aid & Scholarships is in communication with NASFAA about policy and procedure development services. All Policies & Procedures (P&P) will be revised and updated to reflect processes within the new student information system. In February of 2025 a proposal will be made for an additional staff member for a total of four full-time staff members in the Financial Aid & Scholarships department. Name(s) of the contact person(s) responsible for corrective action: Andrea Padilla-Rosas Planned completion date for corrective action plan: Ongoing

View Audit 327718

Finding 504958 (2024-001)

Material Weakness 2024

Clarkson College

NE

Student Financial Aid Material Weakness Reporting

Recommendation: We recommend the College review its reporting procedures to ensure the students' statuses are accurately reported to NSLDS as required by regulations. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to findin...

Recommendation: We recommend the College review its reporting procedures to ensure the students' statuses are accurately reported to NSLDS as required by regulations. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: The Registrar Office reports enrollment statuses to the National Student Clearinghouse (Clearinghouse) and then the Clearinghouse reports enrollment statuses to NSLDS. The procedure is for one Financial Aid staff person to work with the Registrar each time enrollment is reported and that all errors are cleared in the allowed timeframe. The Registrar and the Financial Aid & Scholarships Director plan to meet to review the reports when reporting to the Clearinghouse. Name(s) of the contact person(s) responsible for corrective action: Andrea Padilla-Rosas Planned completion date for corrective action plan: November 2024

View Audit 327718

Finding 504946 (2024-002)

Material Weakness 2024

Oak Park School District

MI

Questioned Costs Special Tests & Provisions Subrecipient Monitoring

Finding 2024-002 - Material Weakness and Material Non-Compliance: Special Test and Provisions related to the Education Stabilization Fund, Assistance Listing Number, 84.425U, Award Number 213713/2122 Corrective Action: Both Finance and Operations Department will work simultaneously on preparing bid...

Finding 2024-002 - Material Weakness and Material Non-Compliance: Special Test and Provisions related to the Education Stabilization Fund, Assistance Listing Number, 84.425U, Award Number 213713/2122 Corrective Action: Both Finance and Operations Department will work simultaneously on preparing bid offers associated to all grant funding. Department of Operations will provide the Finance with copies of all grant funded bid projects and review for approval prior to engagement. In addition, we will seek legal guidance regarding contractual terms. Corrective Action Date of Completion: Beginning October 2024 and ongoing Responsible Party: Executive Director of Finance and Director of Operations

View Audit 327697 Questioned Costs: $1

Finding 504923 (2024-001)

Material Weakness 2024

School District of the City of Dearborn, Michigan

MI

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

Condition: The School District applies the simplified method to determine indirect costs for the Title I program. The allocation of indirect costs and the computation of an indirect cost rate may be accomplished through simplified allocation procedures described in 2 CFR Part 200, Appendix VII, para...

Condition: The School District applies the simplified method to determine indirect costs for the Title I program. The allocation of indirect costs and the computation of an indirect cost rate may be accomplished through simplified allocation procedures described in 2 CFR Part 200, Appendix VII, paragraph C.2. The indirect cost rate is approved by the Michigan Department of Education. The School District calculated indirect costs using an inaccurate rate. The School District reported indirect costs in excess of the approved rate for the federal program. Planned Corrective Action: The School District recorded an adjusting journal entry to correct the indirect costs charged in excess of the approved rate charged to the Title I program for the year ended June 30, 2024. In addition, a secondary analytical review will be incorporated over the Budgetary and indirect costs budgeted specifically to grants prior to it being recorded. Contact person responsible for corrective action: Thomas Wall, Executive Director of Business Services and Operations. Anticipated Completion Date: November 1, 2024

View Audit 327675

Finding 504877 (2024-002)

Material Weakness 2024

North Providence Housing Authority

RI

HUD Housing Programs Special Tests & Provisions Material Weakness

Section III – Federal Award Findings and Questioned Costs 2024-002-Special Tests & Provisions: Rent Reasonableness Material Weakness/Material Noncompliance Corrective Action: The North Providence Housing Authority hired an outside company to perform yearly rent reasonableness studies. Nelrod h...

Section III – Federal Award Findings and Questioned Costs 2024-002-Special Tests & Provisions: Rent Reasonableness Material Weakness/Material Noncompliance Corrective Action: The North Providence Housing Authority hired an outside company to perform yearly rent reasonableness studies. Nelrod has given us the tools to perform these studies fast and efficiently with the use of their software program. Additionally, due to being a small housing authority, with only one HCV staff member, we have hired an HCV Assistant to help the HCV Coordinator in obtaining all information needed to comply with HUD’s regulations. Planned Implementation Date of Corrective Action: Immediately Planned Implementation Date of Corrective Action: Eileen Reyes/Michael McMahon/Cheryl Lonardo

View Audit 327628

Finding 504751 (2024-003)

Material Weakness 2024

Housing Authority of the City of Imperial, Nebraska

NE

Internal Control / Segregation of Duties Special Tests & Provisions Eligibility

Finding 2024-003 The Authority agrees with the finding and responds by stating that our project is relatively small with only one administrative staff. The Board has reviewed this issue and determined there are no additional procedures which can reasonably be done to eliminate these deficiencies a...

Finding 2024-003 The Authority agrees with the finding and responds by stating that our project is relatively small with only one administrative staff. The Board has reviewed this issue and determined there are no additional procedures which can reasonably be done to eliminate these deficiencies and accepts them.

View Audit 327370

Finding 504702 (2024-006)

Material Weakness 2024

Mason Consolidated Schools

MI

School Nutrition Programs Reporting Material Weakness § 200.502 § 200.510

2CFR 200.510(b) requires organizations to prepare a Schedule of Expenditures of Federal Awards (SEFA) for the period covered by the auditee’s financial statements, which must include the total of federal awards as determined in accordance with 2 CFR 200.502. The original SEFA prepared by the School...

2CFR 200.510(b) requires organizations to prepare a Schedule of Expenditures of Federal Awards (SEFA) for the period covered by the auditee’s financial statements, which must include the total of federal awards as determined in accordance with 2 CFR 200.502. The original SEFA prepared by the School District was not complete and accurate. The School District will implement a procedure to ensure that accounting records are closed timely, internal accounts are reconciled, and appropriate workpapers are prepared to support SEFA balances. The School District will implement these procedures for the 2025 fiscal year end.

View Audit 327318

Finding 504647 (2024-001)

Material Weakness 2024

Life Pacific University

CA

Subrecipient Monitoring Material Weakness

Gramm-Leach-Bliley Act (GLBA) Compliance Planned Corrective Action: Life Pacific University has engaged in a contractual partnership with Vertical Computers to accurately address and proactively mitigate audit findings and deficiencies, thereby ensuring sustained adherence to regulatory standards an...

Gramm-Leach-Bliley Act (GLBA) Compliance Planned Corrective Action: Life Pacific University has engaged in a contractual partnership with Vertical Computers to accurately address and proactively mitigate audit findings and deficiencies, thereby ensuring sustained adherence to regulatory standards and operational excellence. Vertical Computers specializes in Voice over IP (VoIP), networking, virtualization, open-source integration, IT management, project management, data backup solutions, cloud services, remote monitoring, and offsite backup. Below will address all findings and deficiencies outlined by the Gramm-Leach-Bliley Act (GLBA). Person Responsible for Corrective Action Plan: George Bostanic - COO and Vice President of Student Life, Alex Wright — Director of Audio, Visual, and Technology, Service Provider Vertical Computers Anticipated Date of Completion: All areas of findings and deficiencies outlined by the Gramm- Leach-Bliley Act (GLBA) are being actively addressed

View Audit 327230

Finding 504486 (2024-004)

Material Weakness 2024

Ecorse Public Schools

MI

Questioned Costs Allowable Costs / Cost Principles Material Weakness

Issue: Allowable Activities - Allocable Fringe Benefits Corrective Action Plan: The district will ensure that retirement rates are updated in the SMART program and that all accounts are charged at a consistent rate.

View Audit 327038 Questioned Costs: $1

Finding 504485 (2024-003)

Material Weakness 2024

Ecorse Public Schools

MI

Questioned Costs Procurement, Suspension & Debarment Subrecipient Monitoring

Issue: Material Weakness in Internal Controls Over Financial Reporting and Material Noncompliance - Allowable Activities and Chart of Accounts and Budget Monitoring Corrective Action Plan: The district is updating and correcting all accounts in accordance with the 1022 manuals.

View Audit 327038 Questioned Costs: $1

Finding 504218 (2024-001)

Material Weakness 2024

North Greenville University

SC

Questioned Costs Student Financial Aid Matching / Level of Effort / Earmarking

Return of Title IV (R2T4) Calculations Planned Corrective Action: The financial aid office has developed a checklist that the aid administrators will use to determine if aid sources have been posted/disbursed to student accounts prior to completing R2T4 calculations. The Financial Aid Office will m...

Return of Title IV (R2T4) Calculations Planned Corrective Action: The financial aid office has developed a checklist that the aid administrators will use to determine if aid sources have been posted/disbursed to student accounts prior to completing R2T4 calculations. The Financial Aid Office will maintain the checklist record of this verification for audit purposes and to track compliance. The Senior Financial Aid Counselor will complete the R2T4 calculations and one of our Financial Aid Counselors will monitor the completion of all checklist records as part of a check and balance process. Person Responsible for Corrective Action Plan: Cindi Patterson, Director for Financial Aid Anticipated Date of Completion: 10/01/24

View Audit 326717 Questioned Costs: $1

Finding 504118 (2024-001)

Material Weakness 2024

Terraces Assisted Living INC

MN

Questioned Costs HUD Housing Programs Material Weakness

2024-001 - Management Fees Name of contact person - Vicky Dwyer, CFO, Great Lakes Management Company Corrective action - Management began the process of requesting these changes from HUD prior to when the changes went into effect, working through the mortgage company. However, due to turnover at t...

2024-001 - Management Fees Name of contact person - Vicky Dwyer, CFO, Great Lakes Management Company Corrective action - Management began the process of requesting these changes from HUD prior to when the changes went into effect, working through the mortgage company. However, due to turnover at the mortgage company, the request for approval by HUD was never sent to HUD. As a result, management is now currently in the process of working with HUD, the mortgage company, and ownership’s lawyer to obtain all necessary approvals. Proposed completion date - Management has put in the necessary requests with HUD and the mortgage company to receive the necessary approvals, and the finding will be corrected once HUD has issued its approval or other response to Management.

View Audit 326539 Questioned Costs: $1

Finding 503767 (2024-002)

Material Weakness 2024

The School District of the City of Harper Woods

MI

Questioned Costs Special Tests & Provisions Subrecipient Monitoring

Finding 2024-002 – Material Weakness & Material Noncompliance – Special Tests and Provisions related to the Education Stabilization Fund, Assitance Listing Number 84.425U, Award Number 213713/2122 Corrective Action The District’s Chief Financial Team in coordination with the financial consultants w...

Finding 2024-002 – Material Weakness & Material Noncompliance – Special Tests and Provisions related to the Education Stabilization Fund, Assitance Listing Number 84.425U, Award Number 213713/2122 Corrective Action The District’s Chief Financial Team in coordination with the financial consultants will continue to tighten procedures relating to grant expenditures as well as include prevailing wage language in any construction projects that are paid with federal funds. This correction will be completed by 6/30/25.

View Audit 326047 Questioned Costs: $1

Finding 503441 (2024-004)

Significant Deficiency 2024

Vista Homes Housing Corporation

NY

HUD Housing Programs Eligibility Material Weakness

Reporting views of responsible officials and planned corrective actions The Organization will enhance its controls to ensure all tenant files are maintained in accordance with the HUD Handbook.

View Audit 325560

Finding 503440 (2024-003)

Material Weakness 2024

Vista Homes Housing Corporation

NY

HUD Housing Programs Allowable Costs / Cost Principles Material Weakness

Reporting views of responsible officials and planned corrective actions The Organization will enhance its controls to ensure that at year-end there is a final review of the transactions to ensure completeness, accuracy and proper classification.

View Audit 325560

Finding 503439 (2024-002)

Material Weakness 2024

Vista Homes Housing Corporation

NY

HUD Housing Programs Reporting Internal Control / Segregation of Duties

Reporting views of responsible officials and planned corrective actions The Organization will enhance its controls and procedures to ensure financial reporting is complete, accurate, and timely.

View Audit 325560

Finding 503438 (2024-001)

Material Weakness 2024

Vista Homes Housing Corporation

NY

HUD Housing Programs Material Weakness Internal Control / Segregation of Duties

Reporting views of responsible officials and planned corrective actions The Organization has opened a new residual receipts account and will transfer the funds to the account. The Organization will enhance its controls to ensure the residual receipts reserve is retained in a separate account going f...

Reporting views of responsible officials and planned corrective actions The Organization has opened a new residual receipts account and will transfer the funds to the account. The Organization will enhance its controls to ensure the residual receipts reserve is retained in a separate account going forward.

View Audit 325560

Finding 503433 (2024-002)

Material Weakness 2024

New Visions Housing Corporation

CA

HUD Housing Programs Reporting Internal Control / Segregation of Duties

Reporting views of responsible officials and planned corrective actions The Organization will enhance its controls and procedures to ensure financial reporting is complete, accurate, and timely.

View Audit 325559

Finding 503432 (2024-001)

Material Weakness 2024

New Visions Housing Corporation

CA

HUD Housing Programs Allowable Costs / Cost Principles Material Weakness

Reporting views of responsible officials and planned corrective actions The Organization will enhance its controls to ensure that at year-end there is a final review of the transactions to ensure completeness, accuracy and proper classification.

View Audit 325559

Finding 503429 (2024-002)

Material Weakness 2024

Housing for the Multi-Handicapped Blind

NY

Allowable Costs / Cost Principles HUD Housing Programs Material Weakness

Reporting views of responsible officials and planned corrective actions The Organization will enhance its controls at year-end to ensure there is a final review of the transactions for proper classification.

View Audit 325558

Finding 503428 (2024-001)

Material Weakness 2024

Housing for the Multi-Handicapped Blind

NY

Reporting Internal Control / Segregation of Duties Material Weakness

Reporting views of responsible officials and planned corrective actions The Organization will enhance its controls and procedures to ensure financial reporting is complete, accurate, and timely.

View Audit 325558

Finding 503423 (2024-002)

Material Weakness 2024

Great Expectations Housing Corporation

CA

HUD Housing Programs Allowable Costs / Cost Principles Material Weakness

Reporting views of responsible officials and planned corrective actions The Organization will enhance its controls to ensure expenses are captured in the correct fiscal period and that at year-end there is a final review of the transactions to ensure completeness, accuracy and proper classification ...

Reporting views of responsible officials and planned corrective actions The Organization will enhance its controls to ensure expenses are captured in the correct fiscal period and that at year-end there is a final review of the transactions to ensure completeness, accuracy and proper classification of expenses.

View Audit 325557

Finding 503422 (2024-001)

Material Weakness 2024

Great Expectations Housing Corporation

CA

HUD Housing Programs Reporting Internal Control / Segregation of Duties

Reporting views of responsible officials and planned corrective actions The Organization will enhance its controls and procedures to ensure financial reporting is complete, accurate, and timely.

View Audit 325557

Finding 503146 (2024-001)

Material Weakness 2024

Amridge University, Inc.

AL

Student Financial Aid Reporting Matching / Level of Effort / Earmarking § 200.303

Correction action University personnel corrected the records in NSLDS and Clearinghouse on July 26, 2024 that were identified in Finding 2024-001. Additionally, university personnel conducted a thorough review of all students to ensure the records in NSLDS properly reflected an accurate enrollment s...

Correction action University personnel corrected the records in NSLDS and Clearinghouse on July 26, 2024 that were identified in Finding 2024-001. Additionally, university personnel conducted a thorough review of all students to ensure the records in NSLDS properly reflected an accurate enrollment status. The university immediately (August 2024) implemented training for the newly appointed Interim Registrar on the importance of timely and accurate reporting of enrollment status changes and graduation status. This training was conducted in coordination with the Vice President of Student Services, the Director of Financial Aid, the Controller, and the Director of Information Technology. In addition to hands-on training provided by university personnel, online resources were utilized from NSLDS, Clearinghouse, and the United States Department of Education. The policies and procedures for enrollment reporting has been strengthened, and includes the following reporting schedule: a student roster schedule will be submitted every 30 days. The exceptions report will be reviewed immediately and will be corrected within 10 days. Within 15 days of the end of each semester, a list of graduated students will be submitted to NSLDS. Exceptions will be corrected immediately to ensure all records in NSLDS match the student’s record. The university is confident that the finding related to enrollment reporting has been resolved. Enrollment files are being submitted every 30 days. Summer 2024 completers graduated on August 9, 2024. These students were reported through Clearinghouse, exceptions were addressed, and enrollment statuses of “Graduated” show on NSLDS as certified on September 13, 2024. The schedule of enrollment and reporting and graduation reporting will ensure that the statuses will be accurate in NSLDS. Responsible Person Rose Mulkey, Interim Registrar Anticipated completion date Completed as of July 26, 2024.

View Audit 325158

Corrective Action Plans

Filters