Corrective Action Plans

Finding 559952 (2023-005)

Material Weakness 2023

AK

Reporting Material Weakness § 200.512

Finding 2023-005 Late Reporting and Noncompliance with Reporting Requirements Name of Contact Person: Kaylee Reierson, Finance Officer Corrective Action: Neither current City Administrator or Finance Officer was employed with the City during this time period. Moving forward, all reporting will be...

Finding 2023-005 Late Reporting and Noncompliance with Reporting Requirements Name of Contact Person: Kaylee Reierson, Finance Officer Corrective Action: Neither current City Administrator or Finance Officer was employed with the City during this time period. Moving forward, all reporting will be done in a timely manner. Proposed Completion Date: Already implemented when the new administration was hired.

View Audit 355888

Finding 559920 (2023-001)

Material Weakness 2023

People's Emergency Center and Subsidiaries

PA

Material Weakness Reporting § 200.512

Finding 2023-001 – Material Weakness – Accounting Recordkeeping All Programs Other Condition During the year ended June 30, 2023, management was unable to provide timely year end trial balances in accordance with U.S. GAAP without significant adjusting journal entries required to accurately refle...

Finding 2023-001 – Material Weakness – Accounting Recordkeeping All Programs Other Condition During the year ended June 30, 2023, management was unable to provide timely year end trial balances in accordance with U.S. GAAP without significant adjusting journal entries required to accurately reflect the underlying accounting transactions. Recommendation We recommend that individuals overseeing the accounting and finance department continue to review the Organization's current accounting policies and update existing policies or implement new policies, as needed, to ensure that the trial balances are accurately maintained throughout the year, reconciliations are completed and reviewed monthly or quarterly, as appropriate, and the trial balances and related supporting schedules are prepared and reviewed timely after year-end. Management’s Corrective Action Plan Management has implemented a structured monthly closing process to ensure timely and accurate recording of transactions. All balance sheet accounts will be reconciled by the 15th day of the following month. We will develop and implement a month-end and year-end closing checklist based on U.S. GAAP and, as necessary, any city, state, or federal reporting requirements. We are also evaluating current staffing levels to determine if there is a need to hire additional personnel or retain external accounting support during the year-end closing process. We will conduct a pre-closing review in the 4th quarter to identify and resolve discrepancies prior to year-end. We will also prepare a preliminary trial balance and draft financial statements by July 31 to allow sufficient time for audit fieldwork. The Finance Committee of the HopePHL Board of Directors will receive quarterly updates on the status of the monthly financial closing process. Contact Person: Kathy Desmond, President and CEO Anticipated Completion Date: June 30, 2025

View Audit 355861

Finding 559858 (2023-002)

Material Weakness 2023

Washington County

OR

Subrecipient Monitoring Allowable Costs / Cost Principles Material Weakness § 200.208 § 200.328

Finding Number: 2023-002 Planned Corrective Action: The Chief Financial Administrator will ensure all ARPA expenditures are included on the Project and Expenditure Reports. Anticipated Completion Date: March 31, 2025 Responsible Contact Person: Ben Cowdery, Chief Financial Administrator

View Audit 355799

Finding 559071 (2023-002)

Material Weakness 2023

Manhattan Housing Authoirty

KS

Questioned Costs HUD Housing Programs Special Tests & Provisions

Authority Response and Planned Corrective Action: The Authority accepts the recommendation of the auditor. The Authority will increase oversight in the Section 8 Housing Choice Vouchers Program to ensure that established internal control policies are being followed on a timely basis. Aaron Estabroo...

Authority Response and Planned Corrective Action: The Authority accepts the recommendation of the auditor. The Authority will increase oversight in the Section 8 Housing Choice Vouchers Program to ensure that established internal control policies are being followed on a timely basis. Aaron Estabrook, Executive Director, is responsible for implementing this corrective action by December 31, 2024.

View Audit 355357 Questioned Costs: $1

Finding 559007 (2023-007)

Material Weakness 2023

City of Dunkirk Housing Authority

NY

HUD Housing Programs Material Weakness

2023-007 Material Weakness: See finding 2023-007. Recommendation: We recommend that management of the Authority work with its newly retained fee accountant to better establish policies and procedures to ensure compliance with the grant requisition processes. Management’s response: We concur with ...

2023-007 Material Weakness: See finding 2023-007. Recommendation: We recommend that management of the Authority work with its newly retained fee accountant to better establish policies and procedures to ensure compliance with the grant requisition processes. Management’s response: We concur with the recommendation. The Authority has had some staff turnover over the past several years. A new executive director and a new account clerk were both hired within the past several years. Management is evaluating its processes and procedures related to grant requisitions and is planning on implementing procedures to ensure grants are requisitioned in the future. Additionally, management is working with its newly hired fee accountant to ensure grant funds are properly requisitioned in the future.

View Audit 355249

Finding 559005 (2023-005)

Material Weakness 2023

City of Dunkirk Housing Authority

NY

HUD Housing Programs Reporting Material Weakness

2023-005 Material Weakness: See finding 2023-005. Recommendation: We recommend that management of the Authority review the deadlines for FDS submission and the financial statement submission and work with the newly retained fee accountant to ensure that these deadlines are met in the future. Mana...

2023-005 Material Weakness: See finding 2023-005. Recommendation: We recommend that management of the Authority review the deadlines for FDS submission and the financial statement submission and work with the newly retained fee accountant to ensure that these deadlines are met in the future. Management’s response: We concur with the recommendation. The Authority has had some staff turnover over the past several years. A new executive director and a new account clerk were both hired within the past several years. Management was aware that its submissions were not timely. Management engaged the services of a fee-accountant subsequent to year-end who will assist with these submission going forward.

View Audit 355249

Finding 556042 (2023-003)

Significant Deficiency 2023

Joseph's House and Shelter, Inc.

NY

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

Finding 2023-003--General Oversight--Significant Deficiency Recommendation: We recommend that the Organization create policies and procedures to ensure proper oversight of the financial reporting function. In addition, we would recommend the Organization to consider the costs and benefits of restr...

Finding 2023-003--General Oversight--Significant Deficiency Recommendation: We recommend that the Organization create policies and procedures to ensure proper oversight of the financial reporting function. In addition, we would recommend the Organization to consider the costs and benefits of restructuring the finance department. This could include allocating additional resources to hire additional employees, reallocation of responsibilities within the organization and less reliance on the contracted accounting services. View of Responsible Officials and Planned Corrective Actions: The Executive Director has worked to reduce the reliance on outside contracted accounting services. Beginning in Q1 2022, agency leadership took necessary action to begin restructuring the Finance Department following a change in staffing with the contracted accounting service. In Q2 2022, the agency promoted a long-tenured staff member to the newly-created Director of Grants and Finance position, which separated and removed all finance duties from the Director of Administration. To support the Director of Grants and Finance, a full-time Grants and Finance Specialist staff position was created in Q3 of 2022 To further strengthen financial oversight and ensure timely access to grant funds, the organization implemented a structured monthly grant billing schedule. This process ensures that vouchering is completed on time, reducing delays in reimbursements and mitigating cash flow disruptions. As a result, grant reimbursements have been received more consistently, alleviating financial strain and improving overall fiscal stability. Joseph’s House has created a 21-page Accounting Policies and Procedures Manual to ensure proper oversight of all fiscal functions. Changes are currently in process and will be sent for review by the Board’s Finance Committee followed by a final review and approval of the full Board of Directors. The organization has scaled back reliance on the contracted accounting service and has ensured that all claims, with the implementation of personnel time-tracking systems, are submitted through our Finance Department. We continue to use a contracted accounting service for higher-level accounting duties and for on-going advisement that supplements, instead of replaces, the work of internal staff. We are confident these changes have improved the agency’s ability to provide adequate management oversight in the financial reporting process. This was completed in Q2 of 2023.

View Audit 354774

Finding 555997 (2023-001)

Material Weakness 2023

County of Hancock, Maine

ME

Subrecipient Monitoring Material Weakness

2023-001 Material Weakness Name of contact person: Michael Crooker, County Administrator Corrective Action: The County will develop and implement a subrecipient monitoring program. Proposed implementation date: The corrective action plan will be implemented as soon as possible.

View Audit 354709

Finding 555949 (2023-002)

Material Weakness 2023

Municipality of Lajas

PR

Reporting Material Weakness Matching / Level of Effort / Earmarking

The Municipality will take all necessary administrative measures to promptly address and correct the situation. I will instruct the Finance Department to submit all required financial information promptly to our financial consultant and external auditor to meet the deadline for submitting the Singl...

The Municipality will take all necessary administrative measures to promptly address and correct the situation. I will instruct the Finance Department to submit all required financial information promptly to our financial consultant and external auditor to meet the deadline for submitting the Single Audit Report for the year 2024. Expected completion date : April 30, 2026.

View Audit 354662

Finding 555828 (2023-004)

Material Weakness 2023

Open Cities Health Center, Inc. and Affiliate

MN

Material Weakness Reporting

Finding 2023-004 Compliance Requirement: Reporting Material Weakness Assistance Living Number 93.224 Health Center Programs Grant Award Number H80CS00112 US Department of Health and Human Services Condition: The report for the year ended December 31, 2023, was not filed within the required report ...

Finding 2023-004 Compliance Requirement: Reporting Material Weakness Assistance Living Number 93.224 Health Center Programs Grant Award Number H80CS00112 US Department of Health and Human Services Condition: The report for the year ended December 31, 2023, was not filed within the required report submission period. Action Planned in Response to the Finding: The organization will prioritize the financial reporting cycle to ensure the timely preparation, review, and audit of financial statements. This action will support ongoing compliance with all applicable reporting requirements and enhance the accuracy and reliability of financial information. Official Responsible for Ensuring the CAP: Harold Minor Planned Completion Date: December 2024

View Audit 354532

Finding 555823 (2023-003)

Material Weakness 2023

Open Cities Health Center, Inc. and Affiliate

MN

Eligibility Special Tests & Provisions Subrecipient Monitoring

Finding 2023-003 Compliance Requirement: Special Tests and Provisions-Sliding Fee Discounts Material Weakness Assistance Living Number 93.224 Health Center Programs Grant Award Number H80CS00112 US Department of Health and Human Services Condition and Context: Documents to verify income could not ...

Finding 2023-003 Compliance Requirement: Special Tests and Provisions-Sliding Fee Discounts Material Weakness Assistance Living Number 93.224 Health Center Programs Grant Award Number H80CS00112 US Department of Health and Human Services Condition and Context: Documents to verify income could not be located for six of the twenty-five patients selected for testing. Also, there was no documentation of family size for five of the patients in this sample. The result is that we were unable to determine eligibility for a total of seven of the fourteen tested. Action Planned in Response to the Finding: Procedures will be implemented and actively monitored to ensure that all supporting documentation used to determine patient eligibility is properly collected, maintained, and retained. These procedures will help ensure compliance with applicable guidelines and support the accuracy and integrity of eligibility determinations. Official Responsible for Ensuring the CAP: Sabrina SalazarPlanned Completion Date: December 2024

View Audit 354532

Finding 555618 (2023-001)

Material Weakness 2023

Okanogan County

WA

Subrecipient Monitoring Internal Control / Segregation of Duties Allowable Costs / Cost Principles

The County did experience issues with the reporting portal for these funds. When we requested assistance, we received generic responses and little assistance from the Treasury. It wasn’t until November 2024 that we were finally able to gain the assistance we needed to gain full access to the Treas...

The County did experience issues with the reporting portal for these funds. When we requested assistance, we received generic responses and little assistance from the Treasury. It wasn’t until November 2024 that we were finally able to gain the assistance we needed to gain full access to the Treasury portal as well as some guidance on the reports. On January 1, 2025, the Treasury provided guidance that is helpful to us in understanding the reporting requirements. Now that we have the access and guidance we need, all reports will be submitted accurately and on time.

View Audit 354181

Finding 555237 (2023-001)

Material Weakness 2023

Municipality of Lennox

SD

Internal Control / Segregation of Duties Material Weakness

A material weakness in internal controls was noted due to a lack of proper segregation of duties for revenues. This affects the compliance requirement for Coronavirus State and Local Fiscal Recovery Funds, ALN No. 21.027. Corrective Action: The City of Lennox's Mayor, Danny Fergen, is the contact...

A material weakness in internal controls was noted due to a lack of proper segregation of duties for revenues. This affects the compliance requirement for Coronavirus State and Local Fiscal Recovery Funds, ALN No. 21.027. Corrective Action: The City of Lennox's Mayor, Danny Fergen, is the contact person responsible for the corrective action plan of this finding. Because of the size of the City of Lennox, the municipality cannot support hiring additional staff that would be sufficient to support the internal controles neceessary to properly segregate duties. The Mayor, City Council, and Finance employees are aware of this challenge, and have put in place controls that minimize risk.

View Audit 353866

Finding 555183 (2023-003)

Material Weakness 2023

Porchlight, Inc.

WI

Procurement, Suspension & Debarment Material Weakness Period of Performance

We will implement several key improvements to enhance our compliance and reporting processes. We will utilize new software to automate the preparation and compilation of audit and compliance reports, streamlining workflows and reducing the risk of delays. Additionally, we are establishing a centrali...

We will implement several key improvements to enhance our compliance and reporting processes. We will utilize new software to automate the preparation and compilation of audit and compliance reports, streamlining workflows and reducing the risk of delays. Additionally, we are establishing a centralized document management system with strong retention and access protocols to ensure all relevant documentation is properly maintained and readily accessible. As part of this process, we will improve our procedures for identifying and aligning expenses with the appropriate grants to ensure accurate reporting and proper use of funds.

View Audit 353787

Finding 555179 (2023-001)

Material Weakness 2023

Porchlight, Inc.

WI

Reporting Procurement, Suspension & Debarment Material Weakness

To fortify our internal controls over financial reporting, we will introduce new software to streamline data management and reporting processes, ensuring both accuracy and efficiency. Concurrently, we will refine our internal workflows, introducing comprehensive procedural guides to standardize oper...

To fortify our internal controls over financial reporting, we will introduce new software to streamline data management and reporting processes, ensuring both accuracy and efficiency. Concurrently, we will refine our internal workflows, introducing comprehensive procedural guides to standardize operations and enhance transparency across all departments. Additionally, we'll implement a centralized repository for document storage with stringent retention policies to uphold organized and accessible record-keeping. Finally, we commit to conducting regular, rigorous reviews of financial information by designated personnel, enabling timely identification and resolution of any discrepancies, thereby reinforcing our control environment and safeguarding the integrity of our financial reporting system.

View Audit 353787

Finding 555147 (2023-004)

Material Weakness 2023

Samu Foundation

DC

Reporting Material Weakness § 200.510

Views of Responsible Officials: SAMU has identified the following actions point: 1. Implement a thorough review process for all funding streams to determine if they are federal, state, or private. 2. Establish clear guidelines for identifying and tracking federal awards. 3. Provide training to accou...

Views of Responsible Officials: SAMU has identified the following actions point: 1. Implement a thorough review process for all funding streams to determine if they are federal, state, or private. 2. Establish clear guidelines for identifying and tracking federal awards. 3. Provide training to accounting staff on the proper application of ASC 958, particularly regarding the recognition of conditional awards. 4. Develop a checklist for SEFA preparation to ensure all required elements are included and properly reported. 5. Consider seeking expert advice or additional training on federal award accounting and reporting. By implementing these measures, SAMU can improve the accuracy of its SEFA, ensure compliance with federal regulations, and provide a more reliable basis for audit procedures.

View Audit 353757

Finding 554899 (2023-001)

Material Weakness 2023

Santa Clara Valley Transportation Authority

CA

Reporting Allowable Costs / Cost Principles Material Weakness § 200.502 § 200.510

2023-001 Program: Highway Planning and Construction Federal Financial Assistance Listing No.: 20.205 Federal Agency: U.S. Department of Transportation Pass-through: Metropolitan Transportation Commission Award Year: 2023 Grant Award Number: MTC/STP Agreement Compliance Requirements: Other - Title 2 ...

2023-001 Program: Highway Planning and Construction Federal Financial Assistance Listing No.: 20.205 Federal Agency: U.S. Department of Transportation Pass-through: Metropolitan Transportation Commission Award Year: 2023 Grant Award Number: MTC/STP Agreement 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 Recommendation: VTA should establish policies and implement internal controls to ensure all federal expenditures are accurately identified on the Schedule of Expenditures of Federal Awards (SEFA). Corrective Action: VTA will reinforce its system of internal control in communicating timely the Catalog of Federal Domestic Assistance (CFDA) number to the department preparing the SEFA. CFDA of direct and pass-through grants will be obtained from the Federal Transit Administration (FTA) and related grantors, respectively. If the CFDA number of a grant is not available at the time of preparation of SEFA, this will be identified accordingly. Responsible Party: The Fiscal Resources Manager and the Transportation Planners, Grants Implementation Date: March 31, 2025

View Audit 353461

Finding 554894 (2023-002)

Material Weakness 2023

Lincoln Hall

NY

Internal Control / Segregation of Duties Material Weakness Reporting

Finding Number: 2023-002 Closing Process – (Material Weakness) Planned Corrective Action: The auditors noted issues related to the timeliness of the financial statement close process, the quantity of entries to close the books, the reconciliation of the beginning trial balance to the prior year aud...

Finding Number: 2023-002 Closing Process – (Material Weakness) Planned Corrective Action: The auditors noted issues related to the timeliness of the financial statement close process, the quantity of entries to close the books, the reconciliation of the beginning trial balance to the prior year audited trial balance, and a lack of segregation of duties which led to journal entries being prepared, reviewed and posted by the same person in the general ledger system. The issues noted were largely the result of significant turnover within the Finance Department, including the departure of the former head of the department without a proper transfer of institutional knowledge to remaining staff or incoming leadership. Since that time, oversight has improved considerably, and key processes have been reviewed, updated, and formally documented. While the current size of the Finance Team necessitates that the same individual generally enters and posts journal entries, we have implemented compensating controls that we believe are appropriate given the assessed levels of risk and materiality. These controls include role-specific responsibilities for journal entries and reconciliations. For example, with respect to cash activity, different team members handle cash receipts, disbursements, and inter-account transfers. A fourth team member is responsible for preparing the monthly bank reconciliations, which are then formally reviewed and signed off by Fiscal Department management, including the CFO. Management remains committed to strengthening internal controls, maintaining adequate segregation of duties to the extent practicable, and continuing to enhance the overall financial close and reporting process. Person Responsible: The Executive Director and Chief Financial Officer Completion Date: April 30, 2025

View Audit 353459

Finding 554893 (2023-001)

Material Weakness 2023

Lincoln Hall

NY

Allowable Costs / Cost Principles Material Weakness

Finding Number: 2023-001 Cost Allocations – (Material Weakness) Planned Corrective Action: The auditors noted that payroll and the related personnel costs are not being charged directly or allocated to the correct cost center in the Serenic Navigator accounting system monthly. The Finance team perf...

Finding Number: 2023-001 Cost Allocations – (Material Weakness) Planned Corrective Action: The auditors noted that payroll and the related personnel costs are not being charged directly or allocated to the correct cost center in the Serenic Navigator accounting system monthly. The Finance team performed manual calculations of all allocations in Excel at the end of the fiscal year to update the allocations. Beginning in FY 2025, personnel costs are being manually recorded to the correct cost centers in Serenic Navigator each month. A parallel review of employee setups in ADP, our payroll system, led to the reassignment of staff to appropriate cost centers as needed. Going forward, ADP cost center assignments will be reviewed monthly to reflect any departmental changes. These steps are expected to reduce manual adjustments, improve the accuracy of interim financials, and ensure more precise federal and program drawdowns. Person Responsible: The Executive Director and Chief Financial Officer Completion Date: April 30, 2025

View Audit 353459

Finding 554889 (2023-001)

Material Weakness 2023

Arctic Village Tribal Council

AK

Questioned Costs Cash Management Material Weakness § 200.305

Federal Award Findings Finding 2023-001 Lack of Internal Controls Over Cash Management Name of Contact Person: Galen Gilbert, First Chief Corrective Action Plan: AVC staff were unable to complete a drawdown for the HUD grants due to a change in staff. AVC is working with HUD to resolve the matt...

Federal Award Findings Finding 2023-001 Lack of Internal Controls Over Cash Management Name of Contact Person: Galen Gilbert, First Chief Corrective Action Plan: AVC staff were unable to complete a drawdown for the HUD grants due to a change in staff. AVC is working with HUD to resolve the matter. AVC staff is currently drawing down all other funds in a timely matter. AVC has limited unrestricted cash. AVC is currently looking for opportunities to increase unrestricted cash, such as increasing prices for gas and electric. Proposed Completion Date: July 31, 2024

View Audit 353454 Questioned Costs: $1

Finding 554485 (2023-002)

Material Weakness 2023

Holbrook Housing Authority

MA

HUD Housing Programs Internal Control / Segregation of Duties Subrecipient Monitoring

2023-002 - Reporting Auditee’s Response and Planned Corrective Action The Authority is now under the management of the Quincy Housing Authority and all controls and processes have been updated to account for the needs of the Holbrook Housing Authority, including internal controls over financial re...

2023-002 - Reporting Auditee’s Response and Planned Corrective Action The Authority is now under the management of the Quincy Housing Authority and all controls and processes have been updated to account for the needs of the Holbrook Housing Authority, including internal controls over financial reporting, documentation retention, and timeliness of reporting. Planned Implementation Date of Corrective Action: June 30, 2024 Person Responsible for Corrective Action: James Marathas, Executive Director

View Audit 353119

Finding 554438 (2023-006)

Material Weakness 2023

Leech Lake Tribal College

AZ

Procurement, Suspension & Debarment Subrecipient Monitoring Material Weakness § 200.318 § 200.320

The College will retain all procurement documentation going forward.

View Audit 353088

Finding 554432 (2023-005)

Material Weakness 2023

Leech Lake Tribal College

AZ

Material Weakness Reporting Internal Control / Segregation of Duties § 200.512

The Department has hired a new audit firm that specializes in the audits of Tribes. Our new audit firm has demonstrated a commitment to allocating the necessary resources to complete our audits in a timely manner.

View Audit 353088

Finding 554426 (2023-004)

Material Weakness 2023

Leech Lake Tribal College

AZ

Internal Control / Segregation of Duties Material Weakness

The College is in the process of establishing journal entry controls including an independent review and approval process for all entries and ensuring sufficient documentation is maintained for each entry.

View Audit 353088

Finding 554420 (2023-003)

Material Weakness 2023

Leech Lake Tribal College

AZ

Internal Control / Segregation of Duties Material Weakness

The College has spent a significant amount of time in FY 2025 evaluating their IT controls and policies and procedures. New internal controls are expected to be implemented to address these findings.

View Audit 353088

Corrective Action Plans

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