Corrective Action Plans

Finding 547550 (2023-003)

Material Weakness 2023

Housing Authority of the County of Monterey

CA

Questioned Costs HUD Housing Programs Eligibility

Finding 2023-003 Federal Agency: U.S. Department of Housing and Urban Development Federal Program Titles: Section 8 Housing Choice Vouchers Program Federal Assistance Listing Numbers: 14.871 and 14.EHV Noncompliance – E. Eligibility – Tenant Files Non Compliance Material to the Financial Statements:...

Finding 2023-003 Federal Agency: U.S. Department of Housing and Urban Development Federal Program Titles: Section 8 Housing Choice Vouchers Program Federal Assistance Listing Numbers: 14.871 and 14.EHV Noncompliance – E. Eligibility – Tenant Files Non Compliance Material to the Financial Statements: Yes Significant Deficiency in Internal Control over Compliance for Eligibility: Emergency Housing Vouchers Material Weakness in Internal Control over Compliance for Eligibility: Section 8 Housing Choice Vouchers Program 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 3,328 units. Of a sample size of fifty-four (54) tenant files, the following was noted: • One tenant file was missing entirely • Original application was missing in 6 files • Lead based paint form was missing in 3 files • Signed lease was missing in 3 files Our sample size is statistically valid. Known Questioned Costs: $88,087 Cause: There is significant deficiency in the Emergency Housing Vouchers Program and a material weakness in the Section 8 Housing Choice Vouchers Program 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 Emergency Housing Vouchers Program is in non-compliance and the Section 8 Housing Choice Vouchers Program is in material non-compliance with the eligibility type of compliance related to the maintenance of tenant files. Recommendation: We recommend the Authority design and implement internal control procedures that will assure compliance with the Uniform Guidance and the compliance supplement. Views of responsible officials and planned corrective action: The Authority accepts the recommendation of the auditor. The affected files relate to clients that have been on the program for decades and as files get large, archiving takes place. To correct this finding, a directive will be issued to staff that will ensure that when files are archived the original application must be placed in the current working file going forward. Jonathan Campbell, Director of Housing Programs, will be responsible to implement this corrective action by June 30, 2024.

View Audit 351739 Questioned Costs: $1

Finding 547119 (2023-001)

Material Weakness 2023

Industrial Technology Institute Dba Mi Manufacturing Tech Center

MI

Reporting Cash Management Material Weakness

Condition: A process was not in place during the year to ensure program income was reported accurately on the SF-425 reports submitted during the year. Planned Corrective Action: Subsequent to year end, the reorganized finance team performed a recalculation and resubmitted corrected SF-425 reports. ...

Condition: A process was not in place during the year to ensure program income was reported accurately on the SF-425 reports submitted during the year. Planned Corrective Action: Subsequent to year end, the reorganized finance team performed a recalculation and resubmitted corrected SF-425 reports. Moving forward the Accounting Supervisor will calculate the NIST MEP monthly program income which is used to determine the monthly award drawdown of cash from the available grant award funds. This is reviewed by the Controller and this report is used to create SF-425. Contact person responsible for corrective action: Alan Kowalewski, Controller Anticipated Completion Date: 07/01/2024

View Audit 351488

Finding 546945 (2023-008)

Material Weakness 2023

Municipality of Juana Diaz

PR

HUD Housing Programs Material Weakness Reporting

Instructions were given to the Program staff to strengthen existing internal controls and procedures to ensure the equity balances were properly calculated and reported in the Voucher Management System (VMS). Also, the Program staff were instructed to analyze previous equity balances reported in the...

Instructions were given to the Program staff to strengthen existing internal controls and procedures to ensure the equity balances were properly calculated and reported in the Voucher Management System (VMS). Also, the Program staff were instructed to analyze previous equity balances reported in the VMS, an realize any necessary corrections.

View Audit 351312

Finding 546944 (2023-007)

Material Weakness 2023

Municipality of Juana Diaz

PR

HUD Housing Programs Material Weakness Reporting

Instructions were given to the Program staff to strengthen existing internal controls and procedures to ensure the submission of financial information according to applicable requirements, and to reconcile the amounts reported in the Voucher Management System (VMS) with the accounting records and pr...

Instructions were given to the Program staff to strengthen existing internal controls and procedures to ensure the submission of financial information according to applicable requirements, and to reconcile the amounts reported in the Voucher Management System (VMS) with the accounting records and proceed with any necessary corrections about the information previously reported. Moreover, the audited financial data schedule for the fiscal year 2022-2023 will be submitted as soon as the Single Audit Report be finally issued by the external auditors.

View Audit 351312

Finding 546943 (2023-006)

Material Weakness 2023

Municipality of Juana Diaz

PR

HUD Housing Programs Subrecipient Monitoring Eligibility

Instructions were given to the Program staff to strengthen existing internal controls and procedures to ensure that the re-examination and HAP determination processes will be performed according to program requirements and guidelines, and to obtain in a timely manner all the required documentation f...

Instructions were given to the Program staff to strengthen existing internal controls and procedures to ensure that the re-examination and HAP determination processes will be performed according to program requirements and guidelines, and to obtain in a timely manner all the required documentation for each reexamination executed.

View Audit 351312

Finding 541798 (2023-002)

Material Weakness 2023

Housing Authority of Covington

KY

Questioned Costs Internal Control / Segregation of Duties Eligibility

Authority Response: The Authority agrees with the finding and is in process of assessing and modifying controls over compliance to avoid similar issues. The Authority will increase oversight of the compliance of program. Steve Arlinghaus, Executive Director, is responsible for implementing this cor...

Authority Response: The Authority agrees with the finding and is in process of assessing and modifying controls over compliance to avoid similar issues. The Authority will increase oversight of the compliance of program. Steve Arlinghaus, Executive Director, is responsible for implementing this corrective action by June 30, 2024.

View Audit 350707 Questioned Costs: $1

Finding 540523 (2023-007)

Material Weakness 2023

Village of Woodmere

OH

Reporting Subrecipient Monitoring Material Weakness § 200.414 § 200.502 § 200.510

The Village Treasurer will start preparing the Schedule of Expenditures of Federal Awards each year or contract with a CPA firm for assistance in preparing the Schedule of Expenditures of Federal Awards each year.

View Audit 350273

Finding 540414 (2023-001)

Material Weakness 2023

Metlakatla Power and Light

AK

Reporting Material Weakness § 200.512

Metlakatla Power and Light Management will ensure the annual audit is completed and submitted by the deadline.

View Audit 350228

Finding 539607 (2023-001)

Material Weakness 2023

Highline School District No. 401

WA

Subrecipient Monitoring Internal Control / Segregation of Duties Special Tests & Provisions

CORRECTIVE ACTION PLAN FOR FINDINGS REPORTED UNDER UNIFORM GUIDANCE Highline School District No. 401 September 1, 2022 through August 31, 2023 This schedule presents the corrective action planned by the District for findings reported in this report in accordance with Title 2 U.S. Code of Federal Reg...

CORRECTIVE ACTION PLAN FOR FINDINGS REPORTED UNDER UNIFORM GUIDANCE Highline School District No. 401 September 1, 2022 through August 31, 2023 This schedule presents the corrective action planned by the District for findings reported in this report in accordance with Title 2 U.S. Code of Federal Regulations (CFR) Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Finding ref number: 2023-001 Finding caption: The District did not have adequate internal controls for ensuring compliance with federal wage requirements. Name, address, and telephone of District contact person: Andrew Burgess, Controller 15675 Ambaum Blvd SW Burien, WA 98166 (206) 631-3201 Corrective action the auditee plans to take in response to the finding: For Federally funded public works contracts, the district will continue to collect and review all weekly certified payroll reports from contractors and subcontractors to confirm laborers were paid proper prevailing wages Further, the district will continue to ensure that staff (both current and future) that oversee and monitor the distribution and use of Federal funds are trained and made aware of this requirement, and the differences between prevailing wage requirements at the state versus the Federal level. Anticipated date to complete the corrective action: August 31, 2024 75

View Audit 350149

Finding 538983 (2023-002)

Material Weakness 2023

Weston Senior Citizens Housing, Inc.

MO

Eligibility Subrecipient Monitoring Material Weakness

Finding 2023-002 Responsible Party Name: Tamara Wallace Position: Executive Director – Management Agent Telephone Number: 816-233-4250 Federal Agency U.S. Department of Agriculture Federal Program Rural Rental Housing Loans (Section 515) Compliance Requirements E - Eligibili...

Finding 2023-002 Responsible Party Name: Tamara Wallace Position: Executive Director – Management Agent Telephone Number: 816-233-4250 Federal Agency U.S. Department of Agriculture Federal Program Rural Rental Housing Loans (Section 515) Compliance Requirements E - Eligibility Finding Type Federal Awards Auditee’s Comments on Finding We agree with the auditors’ finding. Corrective Action(s) We will follow procedures to ensure tenant eligibility and will review the accuracy / completeness of the documentation being processed in the tenant files on a periodic basis. Anticipated Completion Date June 30, 2024

View Audit 349655

Finding 538982 (2023-001)

Material Weakness 2023

Weston Senior Citizens Housing, Inc.

MO

Allowable Costs / Cost Principles Special Tests & Provisions Subrecipient Monitoring

CORRECTIVE ACTION PLAN FOR THE YEAR ENDED DECEMBER 31, 2023 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...

CORRECTIVE ACTION PLAN FOR THE YEAR ENDED DECEMBER 31, 2023 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 December 31, 2023. Finding 2023-001 Responsible Party Name: Tamara Wallace Position: Executive Director – Management Agent Telephone Number: 816-233-4250 Federal Agency U.S. Department of Agriculture Federal Program Rural Rental Housing Loans (Section 515) Compliance Requirements A/B – Activities Allowed or Unallowed and Allowable Costs/Costs Principles and N – Special Tests and Provisions Finding Type Financial Statement and Federal Awards Auditee’s Comments on Finding We agree with the auditors’ finding. Corrective Action(s) We will ensure that processes and procedures are established for compliance with the USDA guidelines and generally accepted accounting principles. Anticipated Completion Date June 30, 2024

View Audit 349655

Finding 538272 (2023-001)

Significant Deficiency 2023

Town of Eatonville

WA

Subrecipient Monitoring Procurement, Suspension & Debarment Internal Control / Segregation of Duties § 200.318

CORRECTIVE ACTION PLAN FOR FINDINGS REPORTED UNDER UNIFORM GUIDANCE Town of Eatonville January 1, 2023 through December 31, 2023 This schedule presents the corrective action the Town is planning to take for findings included in this report in accordance with Title 2 U.S. Code of Federal Regulations...

CORRECTIVE ACTION PLAN FOR FINDINGS REPORTED UNDER UNIFORM GUIDANCE Town of Eatonville January 1, 2023 through December 31, 2023 This schedule presents the corrective action the Town is planning to take for findings included in this report in accordance with Title 2 U.S. Code of Federal Regulations (CFR) Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Finding ref number: 2023-001 Finding caption: The Town did not have adequate internal controls for ensuring compliance with federal procurement requirements. Name, address, and telephone of Town contact person: Miranda Doll 201 Center St. W Eatonville, WA 98328 (360) 832-3361 Corrective action the auditee plans to take in response to the finding: The Town commits to developing written procurement standards in Uniform Guidance (2 CFR 200.318-327) and implementing internal controls to ensure compliance with federal procurement requirements at the Town staff level rather than relying so heavily on consultants. Anticipated date to complete the corrective action: July 1, 2025

View Audit 349296

Finding 538130 (2023-005)

Material Weakness 2023

Allen County Drug and Alcohol Consortium, Inc.

IN

Allowable Costs / Cost Principles Material Weakness § 200.141

Views of Responsible Officials and Planned Corrective Actions: The Organization will develop, implement, and consistently apply a policy that governs how shared services are calculated and charged to all funds. This policy will be developed by the Executive Director, with the assistance of the DAC ...

Views of Responsible Officials and Planned Corrective Actions: The Organization will develop, implement, and consistently apply a policy that governs how shared services are calculated and charged to all funds. This policy will be developed by the Executive Director, with the assistance of the DAC Finance Committee, and approved by the DAC Board of Directors. Monique Johnson, Executive Director of Allen County Drug & Alcohol Consortium, is responsible for this corrective action. The anticipated completion date is June 30, 2025.

View Audit 349144

Finding 538129 (2023-004)

Material Weakness 2023

Allen County Drug and Alcohol Consortium, Inc.

IN

Subrecipient Monitoring Allowable Costs / Cost Principles Material Weakness § 200.403

Views of Responsible Officials and Planned Corrective Actions: The Organization will update policy to ensure that all payments made in any form have appropriate documentation. Additionally, policy on review of invoices prior to payment will be reviewed by Executive Director and Business Manager. M...

Views of Responsible Officials and Planned Corrective Actions: The Organization will update policy to ensure that all payments made in any form have appropriate documentation. Additionally, policy on review of invoices prior to payment will be reviewed by Executive Director and Business Manager. Monique Johnson, Executive Director of Allen County Drug & Alcohol Consortium, is responsible for this corrective action. The anticipated completion date is May 31, 2025.

View Audit 349144

Finding 538126 (2023-002)

Material Weakness 2023

Allen County Drug and Alcohol Consortium, Inc.

IN

Material Weakness Reporting

Views of Responsible Officials and Planned Corrective Actions: The Organization will establish policies and procedures for composing and reviewing financial and performance reports before submission to grantors, including electronic storage of all reports. Monique Johnson, Executive Director of All...

Views of Responsible Officials and Planned Corrective Actions: The Organization will establish policies and procedures for composing and reviewing financial and performance reports before submission to grantors, including electronic storage of all reports. Monique Johnson, Executive Director of Allen County Drug & Alcohol Consortium, is responsible for this corrective action. The anticipated completion date is May 31, 2025.

View Audit 349144

Finding 538124 (2023-001)

Material Weakness 2023

Allen County Drug and Alcohol Consortium, Inc.

IN

Subrecipient Monitoring Material Weakness Reporting § 200.508

Views of Responsible Officials and Planned Corrective Actions: The Organization will prepare a current Scheduel of Expenditures of Federal Awards, listing awards by federal agency, total federal awards expended, name of pass-through entity, assistance listing number, and total amount provided to su...

Views of Responsible Officials and Planned Corrective Actions: The Organization will prepare a current Scheduel of Expenditures of Federal Awards, listing awards by federal agency, total federal awards expended, name of pass-through entity, assistance listing number, and total amount provided to subrecipients. Monique Johnson, Executive Director of Allen County Drug & Alcohol Consortium, is responsible for this corrective action. The anticipated completion date is April 15, 2025.

View Audit 349144

Finding 537640 (2023-001)

Material Weakness 2023

Northeast Woodland Chartered Public School

VT

Material Weakness Reporting Internal Control / Segregation of Duties

The school is required to prepare financial statements in accordance with generally accepted accounting principles (GAAP). This is the responsibility of the School’s management. The preparation of the financial statements in accordance with GAAP requires internal controls over both maintaining inter...

The school is required to prepare financial statements in accordance with generally accepted accounting principles (GAAP). This is the responsibility of the School’s management. The preparation of the financial statements in accordance with GAAP requires internal controls over both maintaining internal books and records and reporting the external financial statements and the related footnotes. The current staffing of the School does not allow the School to have an internal control system in place designed to provide for the preparation of the financials and related footnotes being audited. The School requested that the external auditors draft the financial statements and accompanying notes as a result. Statement of Concurrence or Nonconcurrence: It is correct that due to the cost and other considerations, the School has requested that their auditors draft the financial statement and related footnotes. Corrective Action: The School has evaluated the cost vs. benefit of establishing internal controls over the preparation of financial statements in accordance with GAAP and determined that it is in the best interest of the School to outsource this task to its external auditors, and to carefully review the draft financial statements and notes prior to approving them and accepting responsibility for their content and preparation. The School will continue to evaluate the cost vs. benefit of having someone in management capable of preparation and/or of the financial statements in accordance with GAAP. Projected Completion Date: Due to funding issues, the school is unable at this time to correct this finding.

View Audit 348931

Finding 530189 (2023-001)

Material Weakness 2023

B'nai B'rith Covenant House of Peoria Inc. II 072-Ee038

IL

Internal Control / Segregation of Duties Material Weakness

We agree and will continue to monitor monthly financial results and accounting information as correction is not practical.

View Audit 348278

Finding 529192 (2023-002)

Material Weakness 2023

City of Cupertino

CA

Internal Control / Segregation of Duties Subrecipient Monitoring Material Weakness § 200.303

Beginning with the March 2024 reporting period, the City implemented a formal control framework designed to segregate the duties associated with the preparation, review, and submission of ARPA Project and Expenditure reports, in alignment with SEFA (Schedule of Expenditures of Federal Awards) report...

Beginning with the March 2024 reporting period, the City implemented a formal control framework designed to segregate the duties associated with the preparation, review, and submission of ARPA Project and Expenditure reports, in alignment with SEFA (Schedule of Expenditures of Federal Awards) reporting requirements. This enhanced control structure ensures that no single individual is responsible for all stages of the reporting process, thereby strengthening the City's internal control over federal awards. Furthermore, the City has adopted a strict reporting schedule to guarantee the timely submission of all ARPA-related reports. Responsible Person: Finance Manager Expected Implementation Date: April 2024

View Audit 347168

Finding 528944 (2023-002)

Material Weakness 2023

Northwest Native Development Fund

WA

Allowable Costs / Cost Principles Material Weakness

Recommendation: We recommend that the Organization implements policies and procedures to properly calculate and allocate payroll, including review and approval of time and effort. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in respons...

Recommendation: We recommend that the Organization implements policies and procedures to properly calculate and allocate payroll, including review and approval of time and effort. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: Although they were not documented, checks and balances were in place for approval and time allocation. We have implemented formal policies and procedures to be in compliance with proper time and effort federal regulations over wages. We have also implemented a formal review and approval process for payroll and allocations with a new payroll software. Name(s) of the contact person(s) responsible for corrective action: Jordan Ruiz, Executive Director Planned completion date for corrective action plan: December 01, 2024

View Audit 346931

Finding 528850 (2023-009)

Material Weakness 2023

Iliff School of Theology

CO

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

Condition: The School does not have evidence that exit counseling was provided to students who withdrew or graduated as required by 34 CFR 682.604. Planned Corrective Action: The Iliff School of Theology has contracted with a professional, third-party processing company to administer its student ai...

Condition: The School does not have evidence that exit counseling was provided to students who withdrew or graduated as required by 34 CFR 682.604. Planned Corrective Action: The Iliff School of Theology has contracted with a professional, third-party processing company to administer its student aid programs. The school has also ensured that this third-party processor is properly coordinated with the registrar’s office to meet federal requirements for exit counseling when status changes are processed. Contact person responsible for corrective action: Jason Warr, VP for Business, Controller Anticipated Completion Date: May 2024

View Audit 346899

Finding 528849 (2023-008)

Material Weakness 2023

Iliff School of Theology

CO

Material Weakness Matching / Level of Effort / Earmarking Special Tests & Provisions

Condition: The School does not have written policies and procedures that incorporate the provisions of 34 CFR 668.51 through 668.61. Planned Corrective Action: The Iliff School of Theology has contracted with a professional, third-party processing company to administer its student aid programs. Al...

Condition: The School does not have written policies and procedures that incorporate the provisions of 34 CFR 668.51 through 668.61. Planned Corrective Action: The Iliff School of Theology has contracted with a professional, third-party processing company to administer its student aid programs. All verification procedures are established, and documentation will be maintained to demonstrate compliance. Contact person responsible for corrective action: Jason Warr, VP for Business, Controller Anticipated Completion Date: May 2024

View Audit 346899

Finding 528848 (2023-007)

Material Weakness 2023

Iliff School of Theology

CO

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

Condition: The School does not have a documented Direct Loan quality assurance program. Planned Corrective Action: The Iliff School of Theology has contracted with a professional, third-party processing company to administer its student aid programs. The school will coordinate with this third-party...

Condition: The School does not have a documented Direct Loan quality assurance program. Planned Corrective Action: The Iliff School of Theology has contracted with a professional, third-party processing company to administer its student aid programs. The school will coordinate with this third-party processor to ensure that there is a documented quality assurance program that is regularly exercised for compliance purposes. All documentation will be maintained. Contact person responsible for corrective action: Jason Warr, VP for Business, Controller Anticipated Completion Date: May 2024

View Audit 346899

Finding 528847 (2023-006)

Material Weakness 2023

Iliff School of Theology

CO

Questioned Costs Student Financial Aid Material Weakness

Condition: Our audit procedures identified an instance where the School could not locate evidence that the required R2T4 calculation under federal regulation was completed and another instance whereas the calculation was inaccurate. Planned Corrective Action: The Iliff School of Theology has contr...

Condition: Our audit procedures identified an instance where the School could not locate evidence that the required R2T4 calculation under federal regulation was completed and another instance whereas the calculation was inaccurate. Planned Corrective Action: The Iliff School of Theology has contracted with a professional, third-party processing company to administer its student aid programs. This third-party processor is adequately skilled to complete Return of Title IV calculations and includes an established review process for quality control. All documentation will be maintained. Contact person responsible for corrective action: Jason Warr, VP for Business, Controller Anticipated Completion Date: May 2024

View Audit 346899 Questioned Costs: $1

Finding 528846 (2023-005)

Material Weakness 2023

Iliff School of Theology

CO

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

Condition: The School does not reconcile institutional records with Direct Loan funds received from the Secretary of the U.S. Department of Education and the Direct Loan disbursement records submitted to and accepted by the Secretary of the U.S. Department of Education. Planned Corrective Action: T...

Condition: The School does not reconcile institutional records with Direct Loan funds received from the Secretary of the U.S. Department of Education and the Direct Loan disbursement records submitted to and accepted by the Secretary of the U.S. Department of Education. Planned Corrective Action: The Iliff School of Theology has contracted with a professional, third-party processing company to administer its student aid programs who will ensure that direct loan reconciliations are conducted on a monthly basis in coordination with the business office. Contact person responsible for corrective action: Jason Warr, VP for Business, Controller Anticipated Completion Date: May 2024

View Audit 346899

Corrective Action Plans

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