Corrective Action Plans

Finding 504486 (2024-004)

Material Weakness 2024

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

Finding 502613 (2024-003)

Material Weakness 2024

Cumberland Memorial Hospital, Inc.

WI

Material Weakness Reporting Internal Control / Segregation of Duties

Recommendation – We recommend that all accounts be reconciled and adjustments be posted to the accounting records on a quarterly basis, at a minimum. Management’s Response – The Organization will work to establish policies and procedures to reduce the number of adjusting journal entries proposed by...

Recommendation – We recommend that all accounts be reconciled and adjustments be posted to the accounting records on a quarterly basis, at a minimum. Management’s Response – The Organization will work to establish policies and procedures to reduce the number of adjusting journal entries proposed by the auditors.

View Audit 324596

Finding 502611 (2024-001)

Material Weakness 2024

Cumberland Memorial Hospital, Inc.

WI

Internal Control / Segregation of Duties Material Weakness Reporting

Recommendation – We recommend management and those charged with governance continue to evaluate whether to accept the degree of risk associated with this condition because of cost or other considerations. Management’s Response – The Organization does not have the resources and staff to prepare the ...

Recommendation – We recommend management and those charged with governance continue to evaluate whether to accept the degree of risk associated with this condition because of cost or other considerations. Management’s Response – The Organization does not have the resources and staff to prepare the financial statements and notes but will continue to oversee the auditor’s services and review and approve the financial statements and notes.

View Audit 324596

Finding 502089 (2024-002)

Material Weakness 2024

River Kourt Apartments

OR

HUD Housing Programs Eligibility Material Weakness

Management’s Response and Planned Corrective Actions: 1. The name of the contact person(s) responsible for the corrective action a. Dana Petersen-Crabb, Sr. Director of Housing, ShelterCare b. Amanda Smith, Property Development Manager, ShelterCare 2. The corrective action planned: a. Pinehurst Mana...

Management’s Response and Planned Corrective Actions: 1. The name of the contact person(s) responsible for the corrective action a. Dana Petersen-Crabb, Sr. Director of Housing, ShelterCare b. Amanda Smith, Property Development Manager, ShelterCare 2. The corrective action planned: a. Pinehurst Management was overseeing property through 4/30/23. ShelterCare was assigned as new managing agent 5/1/2023. It took ShelterCare’s property management department some time to hire an Assistant Property Manager and for the department to determine just how they would tackle the number of recertifications that were delinquent. b. ShelterCare is working to ensure that the onsite manager will be trained in HUD compliance. Training started in October 2023 and continues. c. We are currently prioritizing recertifications by oldest first and getting the property recertifications back on track. d. Monthly review of TRACS to ensure recertifications are being completed in a timely manner. 3. The anticipated completion date: a. Monthly review of TRACS reports will be implemented by 10/1/2023. Training was provided to new staff in February of 2024 and is ongoing. b. Recertifications are expected to be completed by December 31, 2024.

View Audit 324276

Finding 502088 (2024-003)

Material Weakness 2024

Afiya Apartments INC

OR

HUD Housing Programs Special Tests & Provisions Cash Management

Management’s Response and Planned Corrective Actions: 1. The name of the contact person(s) responsible for the corrective action a. Kathleen Broadhurst, Sr. Director of Finance, ShelterCare 2. The corrective action planned: a. ShelterCare, as managing agent, will ensure that there are no HUD unautho...

Management’s Response and Planned Corrective Actions: 1. The name of the contact person(s) responsible for the corrective action a. Kathleen Broadhurst, Sr. Director of Finance, ShelterCare 2. The corrective action planned: a. ShelterCare, as managing agent, will ensure that there are no HUD unauthorized withdrawals/disbursements from the replacement reserve account and/or residual receipts account going forward. 3. The anticipated completion date: a. 07/01/2024

View Audit 324275

Finding 502086 (2024-001)

Material Weakness 2024

Afiya Apartments INC

OR

HUD Housing Programs Eligibility Material Weakness

Management’s Response and Planned Corrective Actions: 1. The name of the contact person(s) responsible for the corrective action a. Dana Petersen, Sr. Director of Housing, ShelterCare b. Amanda Smith, Property Development Manager, ShelterCare 2. The corrective action planned: a. Pinehurst Management...

Management’s Response and Planned Corrective Actions: 1. The name of the contact person(s) responsible for the corrective action a. Dana Petersen, Sr. Director of Housing, ShelterCare b. Amanda Smith, Property Development Manager, ShelterCare 2. The corrective action planned: a. Pinehurst Management was overseeing property through 4/30/23. ShelterCare was assigned as new managing agent 5/1/2023. It took ShelterCare’s property management department some time to hire an Assistant Property Manager and for the department to determine just how they would tackle the number of recertifications that were delinquent. b. ShelterCare is working to ensure that the onsite manager will be trained in HUD compliance. Training started in October 2023 and continues. c. We are currently prioritizing recertifications by oldest first and getting the property recertifications back on track. d. Monthly review of TRACS to ensure recertifications are being completed in a timely manner. 3. The anticipated completion date: a. New onsite HUD compliance training was started in October 2023 and is ongoing. Monthly review of TRACS reports was implemented in October of 2023. b. Recertifications are expected to be completed by December 31, 2024.

View Audit 324275

Finding 502056 (2024-001)

Material Weakness 2024

Wyoming Community Development Authority

WY

HUD Housing Programs Material Weakness Reporting

CORRECTIVE ACTION PLAN Finding 2024-001 Name of Contact Person – Tammy Krei, Director of Housing & Neighborhood Development Corrective Action Effective immediately, the Housing & Neighborhood Development (HND) Department will establish controls and procedures to allow for proper reporting and submis...

CORRECTIVE ACTION PLAN Finding 2024-001 Name of Contact Person – Tammy Krei, Director of Housing & Neighborhood Development Corrective Action Effective immediately, the Housing & Neighborhood Development (HND) Department will establish controls and procedures to allow for proper reporting and submission of the required CDBG Annual Formula Grants PR28 Performance and Evaluation (PER) Financial Summary Report. Proposed Completion Date: October 2024

View Audit 324241

Finding 501977 (2024-004)

Material Weakness 2024

Low Rent Housing Agency of Knoxville, Iowa

IA

Cash Management Material Weakness Internal Control / Segregation of Duties

Finding 2024-004 Planned corrective action: The checklist for CFP activity utilized by the Housing Agency was updated last year, but wording was updated this year to reflect the 3-day Treasury Rule. Nan McKay training varies from this rule. The Housing Agency made progress in this area this year, b...

Finding 2024-004 Planned corrective action: The checklist for CFP activity utilized by the Housing Agency was updated last year, but wording was updated this year to reflect the 3-day Treasury Rule. Nan McKay training varies from this rule. The Housing Agency made progress in this area this year, but will use the 3-day Treasury Rule as a guide and closely follow the checklist. Estimated completion date: The HA’s plan is to have this corrected at 2025’s audit. The CFP checklist was updated when the auditor was on-site and staff will closely utilize it.

View Audit 324135

Finding 501976 (2024-003)

Material Weakness 2024

Low Rent Housing Agency of Knoxville, Iowa

IA

Internal Control / Segregation of Duties Special Tests & Provisions Cash Management

Finding 2024-003 Planned corrective action: The Housing Agency has limited funds for additional staff hires. Internal controls will be implemented by building them into what the Board reviews monthly. This will provide additional oversight and aid in elimination of errors. Estimated completion dat...

Finding 2024-003 Planned corrective action: The Housing Agency has limited funds for additional staff hires. Internal controls will be implemented by building them into what the Board reviews monthly. This will provide additional oversight and aid in elimination of errors. Estimated completion date: The HA’s plan is to have this corrected at 2025’s audit. A new checklist of items for monthly Board review will be established within 30 days and followed.

View Audit 324135

Finding 501814 (2024-001)

Material Weakness 2024

Chippewa Valley Schools

MI

Questioned Costs School Nutrition Programs Subrecipient Monitoring

Condition: The School District does not currently have a control in place whereby a review of the meal counts entered into the Michigan Nutrition Data (MiND) system takes place, which could result in an incorrect reporting of the number of free and reduced priced meals, which could result in the Sch...

Condition: The School District does not currently have a control in place whereby a review of the meal counts entered into the Michigan Nutrition Data (MiND) system takes place, which could result in an 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 Business Office has implemented a formalized internal control procedure for the Food Service Department to adhere, alongside performing a thorough review of the monthly claims reimbursement submission. The formalized internal control procedure will accompany the supporting documentation submitted to the Business Office monthly (Attachment A). The procedure involves a review of inputted meal counts, prior to the claim submission. The Food Service Department Administrator responsible for meal claim input will provide corroboration of input accuracy, as documented by signoff from a secondary reviewer. In addition, the Business Office has prepared a Meal Claim Check Tool spreadsheet to utilize, on a monthly basis, as another layer of validation. The Meal Claim Check Tool spreadsheet allows the Business Office to input meal count figures from the Food Service POS system report and compare against the figures from the claims submission report. Any discrepancy identified would be immediately addressed with the Food Service Department and would require an amended claim submission. Contact person responsible for corrective action: Danielle Jacobs, Director of Business Services Anticipated Completion Date: 08/01/2024

View Audit 323903 Questioned Costs: $1

Corrective Action Plans

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