Corrective Action Plans

Finding 522981 (2023-003)

Material Weakness 2023

MN

Material Weakness Reporting Matching / Level of Effort / Earmarking § 200.303

Head Start - ALN #93.600 Recommendation: We recommend that the assigned individual to review, formally documents their review and approval of the SF-425 and SF-429/A reports with a signature before the required date to be submitted. We recommend implementing a process to ensure timely submission of...

Head Start - ALN #93.600 Recommendation: We recommend that the assigned individual to review, formally documents their review and approval of the SF-425 and SF-429/A reports with a signature before the required date to be submitted. We recommend implementing a process to ensure timely submission of all reports. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: WCCA will implement a control policy for a documented review and approval of reports prior to submission as well as ensuring reports are filed timely. Name(s) of the contact person(s) responsible for corrective action: Carrie Tripp, Executive Director Planned completion date for corrective action plan: September 30, 2025

View Audit 342228

Finding 522805 (2023-003)

Material Weakness 2023

The Order of Fishermen Ministry Head Start Program, Inc.

MI

Allowable Costs / Cost Principles Cash Management Material Weakness

TOFMHS concurs with the finding. The excess drawdowns were the result of accounting entries to record refunds, or other adjustments which reduced previously allowable expenses. Subsequent drawdowns should have been reduced to offset these adjustments. TOFMHS will implement ACF-IM-HS-23-01 (Treatment...

TOFMHS concurs with the finding. The excess drawdowns were the result of accounting entries to record refunds, or other adjustments which reduced previously allowable expenses. Subsequent drawdowns should have been reduced to offset these adjustments. TOFMHS will implement ACF-IM-HS-23-01 (Treatment of Rebates, Refunds, Discounts), and prevent an recurrence of this issue in the future. Corrective Active Taken: TOFMHS returned the $51,664 to the Payment Management System on January 16, 2025 in accordance with the referenced Information Memorandum. Drawdowns will be based upon actual expenses and disbursed within 3 business days. Responsible Person: Finance Director with oversight by the Program Director.

View Audit 342174

Finding 522683 (2023-003)

Material Weakness 2023

Catholic Community Services, INC

AK

Internal Control / Segregation of Duties Material Weakness Reporting § 200.512

Finding: 2023-003: Material Weakness in Internal Controls over Compliance - Single Audit Report Submission Name of Contact Person: Shema Jones CFO Catholic Community Service 1803 Glacier Highway Juneau, AK 99801 Corrective Action: CCS will work with its audit firm to ensure the audit is submi...

Finding: 2023-003: Material Weakness in Internal Controls over Compliance - Single Audit Report Submission Name of Contact Person: Shema Jones CFO Catholic Community Service 1803 Glacier Highway Juneau, AK 99801 Corrective Action: CCS will work with its audit firm to ensure the audit is submitted in a timely manner. Proposed Completion Date: 6/30/24

View Audit 342019

Finding 522214 (2023-005)

Material Weakness 2023

City of Clinton

MN

Material Weakness Reporting Internal Control / Segregation of Duties

Recommendation: We recommend the City adopt procedures to ensure applicable reports are submitted timely and accurately. Explanation of Disagreement with Audit Finding: There is no disagreement with the audit finding. Action Taken in Response to the Finding: The City will adopt procedures and work w...

Recommendation: We recommend the City adopt procedures to ensure applicable reports are submitted timely and accurately. Explanation of Disagreement with Audit Finding: There is no disagreement with the audit finding. Action Taken in Response to the Finding: The City will adopt procedures and work with federal agencies to ensure accurate and timely reporting. Official Responsible for Corrective Action: Kristi Lillehaug, City Clerk/Treasurer. Planned Completion Date for Corrective Action Plan: December 31, 2024.

View Audit 341444

Finding 521247 (2023-001)

Material Weakness 2023

The Island Water Association, Inc.

FL

Material Weakness Reporting Internal Control / Segregation of Duties

Management will continue to rely on the audit firm to draft the financial statements and the related notes to the financial statements, and will review, approve, and accept responsibility for the annual financial statements prior to their issuance. Management will continue to increase internal abili...

Management will continue to rely on the audit firm to draft the financial statements and the related notes to the financial statements, and will review, approve, and accept responsibility for the annual financial statements prior to their issuance. Management will continue to increase internal abilities and advancement in order to monimize reliance on audit firm for financial statements.

View Audit 341192

Finding 521095 (2023-008)

Material Weakness 2023

City of Medford

MA

Questioned Costs Procurement, Suspension & Debarment Material Weakness § 200.319

Condition: Five vendors were awarded a contract without a competitive procurement process. Corrective Action Planned: Complete competitive procurement will be done via the federal guidelines for Purchase Orders below and over the $50,000.00 threshold. This means upholding the laws laid out in 20...

Condition: Five vendors were awarded a contract without a competitive procurement process. Corrective Action Planned: Complete competitive procurement will be done via the federal guidelines for Purchase Orders below and over the $50,000.00 threshold. This means upholding the laws laid out in 200.319 by allowing competitive bidding for each contract given out to a vendor by soliciting quotes and having a written internal procedure with the help of the audit team. We will create a Google folder to upload all supporting documents on a yearly basis. Anticipated Completion Date: 2/17/2025 Contact: Noel Velez, Director of Finance

View Audit 341024 Questioned Costs: $1

Finding 521094 (2023-010)

Material Weakness 2023

City of Medford

MA

Material Weakness Internal Control / Segregation of Duties

Condition: The City did not reconcile its 2021 and 2022 revenue loss calculations with the final adjusted general ledger. Calendar year 2021 revenue was understated by $5,040,960 and calendar year 2022 revenue was understated by $1,455,486 in the 2021 and 2022 revenue loss calculations, respective...

Condition: The City did not reconcile its 2021 and 2022 revenue loss calculations with the final adjusted general ledger. Calendar year 2021 revenue was understated by $5,040,960 and calendar year 2022 revenue was understated by $1,455,486 in the 2021 and 2022 revenue loss calculations, respectively. Corrective Action Planned: Revenue reports for Calendar years 2020 - 2023 have been re-run and revenue loss calculations have been re-run by ARPA consultant for those years with results given to Auditors. Anticipated Completion Date: Complete Contact: Robert Dickinson, City Auditor

View Audit 341024

Finding 521084 (2023-006)

Material Weakness 2023

City of Medford

MA

School Nutrition Programs Eligibility Material Weakness

Condition: The Food Service Department did not perform its verification process by the date required by the state pass-through agency. Corrective Action Planned: No applications were submitted to be verified. The school district prompted caregivers on numerous occasions to return the forms witho...

Condition: The Food Service Department did not perform its verification process by the date required by the state pass-through agency. Corrective Action Planned: No applications were submitted to be verified. The school district prompted caregivers on numerous occasions to return the forms without receiving any. Anticipated Completion Date: 2/17/2025 Contact: Peter Cushing, Assistant Superintendent

View Audit 341024

Finding 521083 (2023-005)

Material Weakness 2023

City of Medford

MA

School Nutrition Programs Eligibility Material Weakness

Condition: Free or reduced meals applications could not be provided. The Food Service Department did not process free or reduced priced meals applications for the 2022-2023 school year. Corrective Action Planned: The School District has hired a qualified leader for the School Nutrition Program i...

Condition: Free or reduced meals applications could not be provided. The Food Service Department did not process free or reduced priced meals applications for the 2022-2023 school year. Corrective Action Planned: The School District has hired a qualified leader for the School Nutrition Program in order to comply with the requirements of this program. Additionally, the school district has enrolled all but the Brooks Elementary School as Community Eligibility Provision (CEP) sites and we are no longer required to collect these forms. At the Brooks School, these forms were sent to families from the Brooks School during the FY24 school year. Despite the efforts of the school and Food Services Director, no forms were returned to the school. Presently the forms are not required for the Brooks as the CEP eligibility requirements were reduced from 40% to 25% for determination. Anticipated Completion Date: 2/15/2025 Contact: Peter Cushing, Assistant Superintendent

View Audit 341024

Finding 521082 (2023-004)

Material Weakness 2023

City of Medford

MA

Questioned Costs School Nutrition Programs Allowable Costs / Cost Principles

Condition: Claims support could only be provided by the School for two months. For one month, support was in the form of spreadsheets with tray counts in lieu of a point-of-sale system. For the other month, the tray count spreadsheets were accompanied by reports from the point-of-sale system. Th...

Condition: Claims support could only be provided by the School for two months. For one month, support was in the form of spreadsheets with tray counts in lieu of a point-of-sale system. For the other month, the tray count spreadsheets were accompanied by reports from the point-of-sale system. The point-of-sale system reports provided did not agree to the amounts claimed for reimbursement. The tray counts did not indicate whether the meal provided was paid, free or reduced. The claims for reimbursement submitted by the School used allocation percentages derived from prior year claims when estimating amounts to be claimed as paid, free and reduced. The tray count spreadsheets for the other months could not be located by the School. Corrective Action Planned: In January 2023 DESE sent an auditor to review the Medford School Nutrition Program. Before this review, there was significantly limited oversight by the central office finance team. Almost no documents were prepared before the review as required by DESE. As a result of this audit a 58-item, 19-page Corrective Action Plan was issued to the district. A new district leader was assigned for departmental oversight. The district then had weekly meetings with DESE to address the corrective action plan, for this was the single largest CAP DESE has issued to any district of our size. Nearly $1.3 million in reimbursements were withheld from the district from approximately November 2022 through the end of the Fiscal Year. DESE issued the reimbursements with a nominal penalty during the summer of 2023. At the end of FY23, the district terminated the director of the program. We are now training several individuals in the MCPPO program for enhanced oversight. DESE forced an immediate return audit for FY24. This was an exceptional action as DESE has only rarely done this. The same reviewer attended and noted significant improvements as a result of district actions undertaken. As relates to this particular finding, the School Department has purchased and is consistently using a point of sale system for students to purchase their meals. The system is used to track all transactions. Anticipated Completion Date: 2/17/2025 Contact: Peter Cushing, Assistant Superintendent

View Audit 341024 Questioned Costs: $1

Finding 520582 (2023-001)

Material Weakness 2023

Centennial Square

MN

Material Weakness Reporting Internal Control / Segregation of Duties

Management will continue to rely on CliftonLarsonAllen to draft the financial statements and the related notes to the financial statements, and will review, approve, and accept responsibility for the annual financial statements prior to their issuance.

View Audit 340189

Finding 520345 (2023-004)

Material Weakness 2023

Talbot County Board of Education

GA

Questioned Costs Subrecipient Monitoring Cash Management § 200.302 § 200.303 § 200.511

FA 2023-004 Strengthen Controls over Financial Reporting Compliance Requirement: Reporting Internal Control Impact: Material Weakness Compliance Impact: Material Noncompliance Federal Awarding Agency: U.S. Department of Education Pass-Through Entity: Georgia Department of Education Assistance List...

FA 2023-004 Strengthen Controls over Financial Reporting Compliance Requirement: Reporting Internal Control Impact: Material Weakness Compliance Impact: Material Noncompliance Federal Awarding Agency: U.S. Department of Education Pass-Through Entity: Georgia Department of Education Assistance Listing Number and Title: 84.010 - Title I Grants to Local Educational Agencies Federal Award Number: SO10A210010 (Year: 2022) SO10A220010 (Year: 2023) Questioned Costs: $84,283 Repeat of Prior Year Finding: FA 2022-004, FA 2021-002, FA 2019-002 Description: The School District did not file accurate completion reports for the Title I Grants to Local Educational Agencies program. Corrective Action Plans: District office has put procedures in action to make sure that all drawdowns are in line with expenditures. All draw down packets will be viewed and signed off by federal program director. This packet will include detail expenditure sheet for the month, year to date expenditure report and a cover sheet. Estimated Completion Date: December 31, 2024 Contact Person: Torrence H. Freeman, III CFO Telephone: 706-665-8577 Email: tfreeman@talbot.k12.ga.us

View Audit 340053 Questioned Costs: $1

Finding 520250 (2023-002)

Material Weakness 2023

Project Weber/renew

RI

Material Weakness

Management intends to have its 2024 audit performed in a timely manner to allow sufficient time to file its 2024 data collection form prior to the due date.

View Audit 339880

Finding 520210 (2023-007)

Material Weakness 2023

I&f Incorporated Nfp

IL

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

FINDING 2023-007: LACK OF INTERNAL CONTROLS OVER COMPLIANCE Corrective Action Plan A compliance management framework will be developed by March 31, 2025, and training for relevant staff will begin shortly thereafter. Monitoring mechanisms and documentation practices will also be implemented to ensu...

FINDING 2023-007: LACK OF INTERNAL CONTROLS OVER COMPLIANCE Corrective Action Plan A compliance management framework will be developed by March 31, 2025, and training for relevant staff will begin shortly thereafter. Monitoring mechanisms and documentation practices will also be implemented to ensure ongoing compliance. Estimated Completion Date: 3/31/2025 Contact Person for Implementation of All Corrective Action Plans: Andre Thomas (Executive Director) (773) 756-6806

View Audit 339764

Finding 520084 (2023-003)

Material Weakness 2023

City of Gary

IN

Internal Control / Segregation of Duties Material Weakness Reporting § 200.303

CORRECTIVE ACTION PLAN FINDING 2023-003 Contact Person Responsible for Corrective Action: Ragen Hatcher Contact Phone Number: 219‐881‐5085 View of Responsible Officials: We Concur Description of Corrective Action: The City will work with the department to develop a review process for the PR29 quarte...

CORRECTIVE ACTION PLAN FINDING 2023-003 Contact Person Responsible for Corrective Action: Ragen Hatcher Contact Phone Number: 219‐881‐5085 View of Responsible Officials: We Concur Description of Corrective Action: The City will work with the department to develop a review process for the PR29 quarterly reports, Section 2 Summary Reports, and FFATA report prior to submission to address internal control concerns. Anticipated Completion Date: November 2025

View Audit 339577

Finding 519961 (2023-002)

Material Weakness 2023

Human Response Network

CA

Reporting Material Weakness

Explanation and Corrective Action Taken: The audit for the Year Ended June 30, 2021 was completed in June 2023 which has caused a rippling effect for subsequent audits to be late. The Fiscal Officer that was responsible for the June 30, 2021 audit did not prepare or provide the necessary financial i...

Explanation and Corrective Action Taken: The audit for the Year Ended June 30, 2021 was completed in June 2023 which has caused a rippling effect for subsequent audits to be late. The Fiscal Officer that was responsible for the June 30, 2021 audit did not prepare or provide the necessary financial information to the Auditors. That Fiscal Officer resigned in March 2022 and the position remained vacant until August 1st, 2022. In August 2022, the preceding Fiscal Officer was rehired. During their prior employment from February 2013 until March 2021 there were no audit findings. In addition to the Fiscal Officer position being vacant for five months, there was a new fiscal coordinator position created and the fiscal assistant position had gone through 3 staff members in less than three years. There are no staff at Human Response Network (HRN) with accounting experience except for the Fiscal Officer and fiscal department of three. The Fiscal Officer who was re-hired in August 2022 completed the 6/30/2021 audit and the 6/30/2022 audit. The 6/30/2023 audit is currently in progress and nearly finished. Preparation and planning for the 6/30/2024 audit has already begun. All efforts to submit it to the Federal Clearinghouse by 3/31/2025 will be made. Human Response Network agrees that monthly reconciliations of all general ledger and balance sheet accounts should be performed timely and accurately. As of August 2022, Human Response Network staff began reconciling accounts and projects on a regular basis as a part of the monthly closing process. Staff continue to receive internal and external training and mentoring from experienced staff members.

View Audit 339409

Finding 519875 (2023-004)

Material Weakness 2023

Town of Lafontaine

IN

Matching / Level of Effort / Earmarking Material Weakness Reporting § 200.302 § 200.303 § 200.328 § 200.329

FINDING 2023 - 004 Finding Subject: Water and Waste Disposal System for Rural Communities - Reporting Summary of Finding: Material Weakness, Modified Opinion Contact Person Responsible for Corrective Action: Pamela Whitener Contact Phone Number and Email Address: 765-981-4591 clerk@lafontaine.in.gov...

FINDING 2023 - 004 Finding Subject: Water and Waste Disposal System for Rural Communities - Reporting Summary of Finding: Material Weakness, Modified Opinion Contact Person Responsible for Corrective Action: Pamela Whitener Contact Phone Number and Email Address: 765-981-4591 clerk@lafontaine.in.gov Views of Responsible Officials: We concur with the finding. Description of Corrective Action Plan: We were of the understanding that Commonwealth filed these reports. Going forward the Clerk will submit the reports after review by the Deputy-Clerk and the Town Council. Anticipated Completion Date: January 2025

View Audit 339193

Finding 519843 (2023-004)

Material Weakness 2023

Productive Alternatives, Inc.

MN

Questioned Costs Allowable Costs / Cost Principles Matching / Level of Effort / Earmarking

Formula Grants for Rural Area and Tribal Transit Program Federal Assistance Listing #20.509 Recommendation: The organization should ensure proper documentation is retained to support the approval of allowable costs by someone knowledgeable of the grant and its guidelines. The Organization should re...

Formula Grants for Rural Area and Tribal Transit Program Federal Assistance Listing #20.509 Recommendation: The organization should ensure proper documentation is retained to support the approval of allowable costs by someone knowledgeable of the grant and its guidelines. The Organization should reconcile the budgeted payroll allocation charged to the grant after-the-fact to actual work performed to ensure the allocation accurately reflected. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: The Organization will ensure moving forward that proper support is retained for allowable costs charged to the grant and budgeted amounts are reconciled to after-the fact actual amounts. Name(s) of the contact person(s) responsible for corrective action: Denise DeMartelaere, Co-Director of Finance Planned completion date for corrective action plan: 12/31/2025

View Audit 339087 Questioned Costs: $1

Finding 519623 (2023-001)

Material Weakness 2023

Longview School District No. 122

WA

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

CORRECTIVE ACTION PLAN FOR FINDINGS REPORTED UNDER UNIFORM GUIDANCE Longview School District No. 122 September 1, 2022 through August 31, 2023 This schedule presents the corrective action the District is planning to take for findings included in this report in accordance with Title 2 U.S. Code of F...

CORRECTIVE ACTION PLAN FOR FINDINGS REPORTED UNDER UNIFORM GUIDANCE Longview School District No. 122 September 1, 2022 through August 31, 2023 This schedule presents the corrective action the District 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 District did not have adequate internal controls for ensuring compliance with federal wage rate requirements. Name, address, and telephone of District contact person: Joan Parsons, Lead Accountant 2715 Lilac St Longview, WA 98632 (360)575-7177 Corrective action the auditee plans to take in response to the finding: The District has now enhanced its process surrounding collection and verification of certified payroll reports to include sending a weekly inquiry to the point of contact for the prime contractor for each federally-funded construction project. The inquiry requests the prime contractor to: • disclose if the prime contractor performed any work on the project that would be subject to Davis-Bacon prevailing wage requirements and if so, supply the certified payroll reports • identify any subcontractors who performed work on the project that would be subject to Davis-Bacon prevailing wage requirements, and if so, supply the certified payroll reports This communication is sent via email, read receipt requested, and the prime contractor’s response (or lack thereof) is documented and followed up on as necessary. Anticipated date to complete the corrective action: This process was implemented June 2024.

View Audit 338730

Finding 519523 (2023-002)

Material Weakness 2023

Fort Defiance Housing Corporation D/b/a Sandstone Housing

NM

Reporting Subrecipient Monitoring Material Weakness

Submission of Single Audit Reports (Material Weakness) (Repeat Finding 2022-001) Criteria – Section 200.512 of the Uniform Guidance states that the single audit shall be completed and the data collection form and reporting package shall be submitted within the earlier of 30 calendar days after rece...

Submission of Single Audit Reports (Material Weakness) (Repeat Finding 2022-001) Criteria – Section 200.512 of the Uniform Guidance states that the single audit shall be completed and the data collection form and reporting package shall be submitted within the earlier of 30 calendar days after receipt of the auditor’s report, of nine months after the end of the audit period. Condition and Context – The organization did not complete its single audit and submit its data collection form and reporting package for the year ended December 31, 2023 by the required deadline. Cause and Effect – Due to a delay in the finalization of the Schedule of Expenditures of Federal Awards and the compiling of records and supporting documentation relation to the financial statement audit and compliance audit, the Organization was late in completing its single audit and submitting its data collection form and reporting package to the Federal Audit Clearinghouse. Questioned Costs – None noted. Recommendation – We recommend that the organization improve its financial reporting close process in order to complete its annual single audit and submit the data collection form and reporting package to the Federal Audit Clearinghouse by the required deadline. Corrective Action Plan – FDHC provided all items requested by auditors on or before the required deadline (typically within 24 hours of request). Due to circumstances out of FDHC’s control, FDHC received a default judgement close to the time of audit issuance. This default judgement was based upon an ongoing court case that began in 2019. Once the auditors were notified of default judgement, the auditors made the decision not to issue until they could thoroughly review all relevant court documents related to the default judgement. The late issuance of the audit was not due to the readiness of FDHC accounting team. We do not feel that this will be an issue going forward. FDHC CEO, Shelby Garcia, and FDHC legal counsel will continue to keep auditors updated on any future court proceedings.

View Audit 338530

Finding 519520 (2023-001)

Material Weakness 2023

Fort Defiance Housing Corporation D/b/a Sandstone Housing

NM

Reporting Procurement, Suspension & Debarment Material Weakness

Improve Procedures over the Preparation of the Schedule of Expenditure of Federal Awards (Material Weakness) As part of our audit procedures, we audit the completeness and the accuracy of the Schedule of Expenditures of Federal Awards. Management is responsible for the preparation of the Schedul...

Improve Procedures over the Preparation of the Schedule of Expenditure of Federal Awards (Material Weakness) As part of our audit procedures, we audit the completeness and the accuracy of the Schedule of Expenditures of Federal Awards. Management is responsible for the preparation of the Schedule of Expenditures of Federal Awards in accordance with the requirements of the Uniform Guidance. This schedule is an integral component of the Organization’s reporting in accordance with the Uniform Guidance as it identifies total federal awards expended for each individual federal program and it serves as the primary basis for the auditor’s major program determination. During our audit, we became aware of evidence which indicated that in a prior year loans that had been thought to be forgiven by USDA were in fact repurchased by USDA. The debt should have been reflected on the Schedule of Expenditures of Federal Awards under the Section 538 program. The Schedule of Expenditures of Federal Awards was Corrected during the audit, however, it appears the errors were made due to a lack of sufficient Internal controls over the preparation of the Schedule of Expenditures of Federal Awards. Recommendation – We recommend that the Organization implement adequate procedures, including Staff training and formal review and verification process by supervisory personnel, as part of its annual process to prepare the Schedule of Expenditures of Federal Awards in order to ensure its accuracy. Corrective Action Plan – The repurchase of the loans occurred in 2022 and all documents regarding the Repurchase of the loans were provided to FDHC who then provided all documents to auditors. At that time it was not made clear to FDHC that the repurchase of the loans should be included on the Schedule of Expenditures of Federal Awards under the Section 538 program. The repurchase was not included on the 2022 Schedule of Expenditures of Federal Awards under the Section 538 program and this was not an issue on FDHC’s 2022 audit which was also provided to and reviewed by USDA. It was not until 2024 that this came into question. FDHC reached out to USDA to verify if this repurchase should be included on the Schedule of Expenditures of Federal Awards under the Section 538 program. After going through multiple channels of USDA, it was determined that FDHC should include the repurchase of the Schedule of Expenditures of Federal Awards under the Section 538 program. Now that FDHC has been made aware that this needs to be included, CEO, Shelby Garcia, FDHC will get written confirmation from USDA as to the nature of any future debt restructurings/forgiveness, and the corrective action plan has been in place since the start of the fiscal year.

View Audit 338530

Finding 519402 (2023-001)

Material Weakness 2023

Crawford County Board of Education

GA

Subrecipient Monitoring Internal Control / Segregation of Duties Matching / Level of Effort / Earmarking § 200.302 § 200.303

FA 2023-001 Improve Controls over Financial Reporting Internal Control Impact: Material Weakness Compliance Impact: Material Noncompliance Prior Year Finding: None Description: The accounting procedures of the School District were insufficient to provide adequate internal controls over multipl...

FA 2023-001 Improve Controls over Financial Reporting Internal Control Impact: Material Weakness Compliance Impact: Material Noncompliance Prior Year Finding: None Description: The accounting procedures of the School District were insufficient to provide adequate internal controls over multiple control categories. Corrective Action Plans: Management will review, design, and implement procedures to strengthen the internal controls over the accounting functions to ensure transactions are properly processed and reported. Estimated Completion Date: June 30, 2024 Contact Person: Daisy M. Prather, Finance Director Telephone: (478) 836-3131 extension 106 Email: daisy.prather@crawfordschools.org

View Audit 338350

Finding 519360 (2023-005)

Material Weakness 2023

Housing Authority of the County of Marin

CA

Questioned Costs HUD Housing Programs Internal Control / Segregation of Duties

Federal Agency: U.S. Department of Housing and Urban Development Federal Program Titles: Public and Indian Housing Program Federal Assistance Listing Numbers: 14.850 Noncompliance – N. Special Tests and Provisions – Public Housing Waiting List Non Compliance Material to the Financial Statements: Yes...

Federal Agency: U.S. Department of Housing and Urban Development Federal Program Titles: Public and Indian Housing Program Federal Assistance Listing Numbers: 14.850 Noncompliance – N. Special Tests and Provisions – Public Housing Waiting List Non Compliance Material to the Financial Statements: Yes Material Weakness in Internal Control over Compliance for Special Tests and Provisions Finding 2023-005 (continued): Criteria: Selections from the Waiting List. The PHA must have written policies in its Admissions and Continued Occupancy Policy for selecting applicants from the waiting list and PHA documentation must show that the PHA follows these policies when selecting applicants from the waiting list. Except for as provided in 24 CFR section 982.203 (Special admission (non-waiting list), all families admitted to the program must be selected from the waiting list. “Selection” from the waiting list generally occurs when the PHA notifies a family whose name reaches the top of the waiting list to come in to verify eligibility for admission (24CFR sections 5.410, 982.54(d), and 982.201 through 982.207). Condition: Based upon inspection of the waiting list provided to us during the time of audit, the new move-in list and discussions with management, it could not be determined with any certainty that certain new move-ins to the Public and Indian Housing Program were selected from the wait list in an order that is in accordance with the Authority’s Admissions and Continued Occupancy Policy. Context: Of a sample size of nine (9) new move-ins, nine (9) could not be determined to be housed in proper order from the Authority's waiting list. Our sample size is statistically valid. Known Questioned Costs: $89,397 Cause: There is a material weakness in internal controls over the compliance for the special tests and provisions type of compliance related to the public housing waiting list. The Authority has not properly considered, designed, implemented, maintained and monitored a system of internal controls that assures the program is in compliance. Effect: The Public and Indian Program is in material non-compliance with the special tests and provisions type of compliance related to selection of applicants from the waiting list. 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 Authority will increase oversight on the maintenance of the waiting list and process of housing applicants to better monitor adequacy with compliance requirements. Kim Dolan, Chief Financial officer, will be responsible to implement this corrective action by December 31, 2024.

View Audit 338241 Questioned Costs: $1

Finding 519359 (2023-004)

Material Weakness 2023

Housing Authority of the County of Marin

CA

Questioned Costs HUD Housing Programs Eligibility

Federal Agency: U.S. Department of Housing and Urban Development Federal Program Titles: Public and Indian Housing Assistance Listing Numbers: 14.850 Noncompliance – E. Eligibility – Tenant Files Non Compliance Material to the Financial Statements: Yes Material Weakness in Internal Control over Comp...

Federal Agency: U.S. Department of Housing and Urban Development Federal Program Titles: Public and Indian Housing Assistance Listing Numbers: 14.850 Noncompliance – E. Eligibility – Tenant Files Non Compliance Material to the Financial Statements: Yes Material Weakness in Internal Control over Compliance for Eligibility Criteria: Tenant Files. The PHA must do the following: As a condition of admission or continued occupancy, require the tenant and other family member to provide necessary information, documentation, and releases for the PHA to verify income eligibility (24 CFR sections 5.230, 5.609, and 982.516). These files are required to be maintained and available for examination at the time of audit. Condition: Based upon inspection of the Authority’s files and on discussion with management, there were documents that were unavailable for examination at the time of audit. Finding 2023-004 (continued): Context: There are approximately 460 units. Of a sample size of seventeen (17) tenant files, the following was noted: • HUD 50058 annual recertification was not filed timely in 2 files • Original Application was missing in 1 file • Verification of income was missing in 3 files • Verification of assets was missing in 2 files Our sample size is statistically valid. Known Questioned Costs: $28,961 Cause: There is a material weakness 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 Public and Indian Housing 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 has recognized the material weakness in the Public and Indian Housing Program and will implement internal control procedures that will ensure compliance with federal regulations. Elizabeth Campbell, Interim Deputy Director, will be responsible to implement this corrective action by December 31, 2024.

View Audit 338241 Questioned Costs: $1

Finding 519358 (2023-006)

Material Weakness 2023

Housing Authority of the County of Marin

CA

Questioned Costs HUD Housing Programs Eligibility

Federal Agency: U.S. Department of Housing and Urban Development Federal Program Titles: Section 8 Housing Choice Vouchers Program Federal Assistance Listing Numbers: 14.871 Noncompliance - N. Special Tests and Provisions - Selection from the Waiting List Non Compliance Material to the Financial Sta...

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 Noncompliance - N. Special Tests and Provisions - Selection from the Waiting List Non Compliance Material to the Financial Statements: Yes Material Weakness in Internal Control over Compliance for Special Tests and Provisions Criteria: Selections from the Waiting List. The PHA must have written policies in its Section 8 Administrative Plan for selecting applicants from the waiting list and PHA documentation must show that the PHA follows these policies when selecting applicants from the waiting list. Except for as provided in 24 CFR section 982.203 (Special admission (non-waiting list), all families admitted to the program must be selected from the waiting list. “Selection” from the waiting list generally occurs when the PHA notifies a family whose name reaches the top of the waiting list to come in to verify eligibility for admission (24CFR sections 5.410, 982.54(d), and 982.201 through 982.207). Condition: Based upon inspection of the waiting list provided to us during the time of audit, the new move-in list and discussions with management, it could not be determined with any certainty that certain new move-ins to the Section 8 Housing Choice Vouchers Program were selected from the wait list in an order that is in accordance with the Authority’s Section 8 Administrative Plan. Context: Of a sample size of thirteen (13) new move-ins, seven (7) could not be determined to be housed in proper order from the Authority's waiting list. Our sample size is statistically valid. Known Questioned Costs: $181,533 Cause: There is a material weakness in internal controls over the compliance for the special tests and provisions type of compliance related to selection from the waiting list. The Authority has not properly housed applicants in compliance with program requirements. Effect: The Section 8 Housing Choice Vouchers Program is in material non-compliance with the eligibility type of compliance related to selection from the waiting list. Recommendation: We recommend the Authority design and implement internal control procedures that will reasonably assure compliance with the Uniform Guidance and the compliance supplement. Finding 2023-006 (continued): Views of responsible officials and planned corrective action: The Authority accepts the recommendation of the auditor. The Authority will increase oversight in the Section 8 Housing Choice Voucher Program to ensure that established internal control policies are being followed on a timely basis. Kim Dolan, Chief Financial officer, will be responsible to implement this corrective action by December 31, 2024.

View Audit 338241 Questioned Costs: $1

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