Corrective Action Plans

Finding 519404 (2023-002)

Significant Deficiency 2023

GA

Questioned Costs Allowable Costs / Cost Principles Subrecipient Monitoring § 200.303 § 200.403 § 200.415

FA 2023-002 Strengthen Budgetary Controls over Expenditures Internal Control Impact: Significant Deficiency Compliance Impact: Activities Allowed or Unallowed Allowable Costs/Cost Principle Prior Year Finding: None Description: A review of expenditures charged to the Elementary and Secondary ...

FA 2023-002 Strengthen Budgetary Controls over Expenditures Internal Control Impact: Significant Deficiency Compliance Impact: Activities Allowed or Unallowed Allowable Costs/Cost Principle Prior Year Finding: None Description: A review of expenditures charged to the Elementary and Secondary School Emergency Relief Fund program revealed instances in which expenditures has not been properly approved by the pass- through entity. Corrective Action Plans: the School District will work with all entities to confirm that all existing controls are adhered to by developing and implementing an improved monitoring process. This process will ensure that all expenditures comply with all applicable policies and regulations. 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 Questioned Costs: $1

Finding 519400 (2023-007)

Material Weakness 2023

Town of Seabrook

NH

Questioned Costs Allowable Costs / Cost Principles Internal Control / Segregation of Duties § 200.303 § 200.430

Audit Finding Reference: 2023-007 Management’s Response and Planned Corrective Action: Implement a record keeping process for all rates and weighted rates for payroll. Name of Contact Person and Completion Date: Name: William Manzi

View Audit 338332 Questioned Costs: $1

Finding 519360 (2023-005)

Material Weakness 2023

Housing Authority of the County of Marin

CA

HUD Housing Programs Internal Control / Segregation of Duties Questioned Costs

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

HUD Housing Programs Questioned Costs 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

Finding 519357 (2023-003)

Significant Deficiency 2023

Housing Authority of the County of Marin

CA

Questioned Costs HUD Housing Programs Significant Deficiency

Federal Agency: U.S. Department of Housing and Urban Development Federal Program Titles: Housing Voucher Cluster - Section 8 Housing Choice Vouchers - Mainstream Vouchers - Emergency Housing Vouchers Assistance Listing Numbers: 14.871, 14.879, and 14.EHV Noncompliance – N. Special Tests and ...

Federal Agency: U.S. Department of Housing and Urban Development Federal Program Titles: Housing Voucher Cluster - Section 8 Housing Choice Vouchers - Mainstream Vouchers - Emergency Housing Vouchers Assistance Listing Numbers: 14.871, 14.879, and 14.EHV Noncompliance – N. Special Tests and Provisions – Housing Quality Standards Non Compliance Material to the Financial Statements: No Significant Deficiency in Internal Control over Compliance for Special Tests and Provisions Criteria: Housing Quality Standards Inspections. The PHA must inspect the unit leased to a family at least biennially to determine if the unit meets the Housing Quality Standards (HQS) and the PHA must conduct quality control re-inspections. The PHA must prepare a unit inspection report (24 CFR sections 982.158(d) and 982.405(b)). For units that fail inspection the PHA must correct all life threatening HQS deficiencies within 24 hours and all other deficiencies within 30 days. Condition: Based upon inspection of the Authority’s files and on discussions with management, the Authority did not properly abate five (5) out of thirty-six (36) annual failed inspections selected for testing. Context: The Authority did not properly abate five (5) out of thirty-six (36) failed inspections selected for testing. As a result, the Authority was not in compliance with the HQS as required by 24 CFR sections 982.158(d) and 982.405(b). Finding 2023-003 (continued): Known Questioned Costs: • 14.871 - Section 8 Housing Choice Vouchers - $11,067 • 14.879 - Mainstream Vouchers - $160 • 14.EHV - Emergency Housing Vouchers - $341 Cause: There is a significant deficiency in internal controls over compliance for the special tests and provisions type of compliance related to HQS inspections. 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 Section 8 Housing Choice Vouchers, Mainstream Vouchers, and Emergency Housing Vouchers programs are in non-compliance with the special tests and provisions type of compliance related to HQS inspections. 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 significant deficiency in the Section 8 Housing Choice Vouchers, Mainstream Vouchers, and Emergency Housing Vouchers programs and will implement internal control procedures that will ensure compliance with federal regulations. Kathleen Wyatt, Director of Housing Operations, will be responsible to implement this corrective action by December 31, 2024.

View Audit 338241 Questioned Costs: $1

Finding 519356 (2023-002)

Material Weakness 2023

Housing Authority of the County of Marin

CA

Questioned Costs HUD Housing Programs Material Weakness

Federal Agency: U.S. Department of Housing and Urban Development Federal Program Titles: - Section 8 Housing Choice Vouchers - Emergency Housing Vouchers Assistance Listing Numbers: 14.871, 14.EHV Noncompliance – N. Special Tests and Provisions - Housing Quality Standards Non Compliance Materia...

Federal Agency: U.S. Department of Housing and Urban Development Federal Program Titles: - Section 8 Housing Choice Vouchers - Emergency Housing Vouchers Assistance Listing Numbers: 14.871, 14.EHV Noncompliance – N. Special Tests and Provisions - Housing Quality Standards Non Compliance Material to the Financial Statements: Yes Material Weakness in Internal Control over Compliance for Special Tests and Provisions Criteria: HQS Inspections. Per the Authority's HCV Admin Plan, the PHA must inspect the unit leased to a family biennially in order to determine if the unit meets HQS standards, and the PHA must conduct quality control re-inspections. The PHA must prepare a unit inspection report (24 CFR sections 982.158(d) and 982.405(b)). These inspection reports 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 inspection reports that were unavailable for examination at the time of audit. Context: Of a sample size of forty-four (44) units, twelve (12) units did not have biennial HQS inspections performed timely. Our sample size is statistically valid. Known Questioned Costs: • 14.871 - Section 8 Housing Choice Vouchers - $246,504 • 14.EHV - Emergency Housing Vouchers - $30,252 Cause: There is a material weakness in internal controls over the compliance for the special tests and provisions type of compliance related to HQS inspections. The Authority has not properly considered, designed, implemented, maintained and monitored a system of internal controls that assures the program is in compliance. Finding 2023-002 (continued): Effect: The Section 8 Housing Choice Vouchers and Emergency Housing Vouchers programs are in material non-compliance with the with the special tests and provisions type of compliance related to HQS inspections. Recommendation: We recommend the Authority design and implement internal control procedures that will reasonably 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 Section 8 Housing Choice Vouchers and Emergency Housing Vouchers programs and will implement internal control procedures that will ensure compliance with federal regulations. Kathleen Wyatt, Director of Housing Operations, will be responsible to implement this corrective action by December 31, 2024.

View Audit 338241 Questioned Costs: $1

Finding 519355 (2023-001)

Material Weakness 2023

Housing Authority of the County of Marin

CA

Questioned Costs HUD Housing Programs Eligibility

Finding 2023-001: Federal Agency: U.S. Department of Housing and Urban Development Federal Program Titles: Housing Voucher Cluster - Section 8 Housing Choice Vouchers - Mainstream Vouchers - Emergency Housing Vouchers Assistance Listing Numbers: 14.871, 14.879, 14.EHV Noncompliance – E. Eli...

Finding 2023-001: Federal Agency: U.S. Department of Housing and Urban Development Federal Program Titles: Housing Voucher Cluster - Section 8 Housing Choice Vouchers - Mainstream Vouchers - Emergency Housing Vouchers Assistance Listing Numbers: 14.871, 14.879, 14.EHV Noncompliance – E. Eligibility – Tenant Files Non Compliance Material to the Financial Statements: Housing Voucher Cluster - Section 8 Housing Choice Vouchers - Yes - Mainstream Vouchers - Yes - Emergency Housing Vouchers - No Finding 2023-001 (continued): Material Weakness and Significant Deficiency 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. Context: There are approximately 2,434 units. Of a sample size of fifty-six (56) tenant files, the following was noted: • HUD form 9886 was unable to be provided in 4 files • Verification of income was unable to be provided in 5 files • Verification of assets was unable to be provided in 4 files • HUD 50058 annual recertification was not filed timely in 8 files • Original Application was unable to be provided in 12 files • Citizen Declaration Section 214 form was unable to be provided in 2 files • Lead based paint form was unable to be provided in 16 files • Signed lease was unable to be provided in 6 files • Our sample size is statistically valid. Known Questioned Costs: • 14.871 - Section 8 Housing Choice Vouchers - $65,025 • 14.879 - Mainstream Vouchers - $31,974 • 14.EHV - Emergency Housing Vouchers - $14,095 Cause: There is a material weakness in the Section 8 Housing Choice Vouchers and Mainstream Vouchers programs and a significant deficiency in the Emergency Housing 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 Section 8 Housing Choice Vouchers and Mainstream Vouchers programs are in material non-compliance, and the Emergency Housing Vouchers program is in 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 Authority will increase oversight in the Housing Voucher Cluster to ensure that established internal control policies are being followed on a timely basis. Kathleen Wyatt, Director of Housing Operations, will be responsible to implement this corrective action by December 31, 2024.

View Audit 338241 Questioned Costs: $1

Finding 519349 (2023-005)

None 2023

Thornton Township High School District 205

IL

Reporting Questioned Costs Procurement, Suspension & Debarment

Condition: The District did not claim expenditures in conformity with the approved detail budget. Plan: Management will review its policies and procedures and implement changes to strengthen internal control over federal reporting. Anticipated Date of Completion: June 30, 2024. Name of Contact Perso...

Condition: The District did not claim expenditures in conformity with the approved detail budget. Plan: Management will review its policies and procedures and implement changes to strengthen internal control over federal reporting. Anticipated Date of Completion: June 30, 2024. Name of Contact Person: Dr. Albert Holmes. Management Response: The District will continue to monitor and review all expenditures to ensure that internal controls are applied as allowable costs and reporting required by federal and state guidelines.

View Audit 338190 Questioned Costs: $1

Finding 519298 (2023-003)

None 2023

City of Sweetwater, Florida

FL

Reporting Questioned Costs Equipment & Real Property Management § 200.328

Views of Responsible Officials and Planned Corrective Actions The Grants Administrator and the Finance Department will work closely to compare all expenditures incurred by quarter to the expenditures as reported to the grantor in the quarterly reports. The Grants Administrator and Finance Department...

Views of Responsible Officials and Planned Corrective Actions The Grants Administrator and the Finance Department will work closely to compare all expenditures incurred by quarter to the expenditures as reported to the grantor in the quarterly reports. The Grants Administrator and Finance Department have been working to make any corrections as needed for reporting purposes and to address the timing and presentation issues of expenditures as incurred versus as reported. Going forward, the Grants Administrator will be more involved in communicating with the Finance Department, at a minimum on a monthly basis, as related to the reporting of expenditures that are being funded by federal, state, and local awards.

View Audit 338088

Finding 519297 (2023-002)

Significant Deficiency 2023

City of Sweetwater, Florida

FL

Reporting Questioned Costs Equipment & Real Property Management § 200.1 § 200.303

Views of Responsible Officials and Planned Corrective Actions The Deputy Finance Director and the Finance Department identified the transactions as potentially being incorrectly recorded; however, it was not identified timely and/or officially addressed, and was not detected by the Grants Administra...

Views of Responsible Officials and Planned Corrective Actions The Deputy Finance Director and the Finance Department identified the transactions as potentially being incorrectly recorded; however, it was not identified timely and/or officially addressed, and was not detected by the Grants Administrator as being recorded in the incorrect period. The Deputy Finance Director and Finance Department were working diligently to review the accounting and handle various tasks, but were not able to timely address the issue with the specific transactions mentioned above. During June 2023, the City hired a Finance Director which was expected to allow the Deputy Finance Director and staff to improve year-end closing procedures and provide additional support to the Finance Department to ensure controls in place over financial reporting are sufficient. The Grants Administrator will be more involved in communicating with the Finance Department, at a minimum on a monthly basis, as related to reporting of expenditures that are being funded by federal, state, and local awards. Management expects this finding to be fully corrected for fiscal year ended September 30, 2024.

View Audit 338088

Finding 519296 (2023-004)

Material Weakness 2023

Jacobson Memorial Hospital Care Center and Subsidiary

ND

Questioned Costs Subrecipient Monitoring Material Weakness § 200.303

Federal Agency Name: Deportment of Agriculture Program Name: Community Facilities Loans and Grants Federal Assistance Listing #10.766 Finding Summary: The Hospital was not able to provide sufficient support for the total net patient care revenues that were reported to the Department of Health and H...

Federal Agency Name: Deportment of Agriculture Program Name: Community Facilities Loans and Grants Federal Assistance Listing #10.766 Finding Summary: The Hospital was not able to provide sufficient support for the total net patient care revenues that were reported to the Department of Health and Human Services. As well as the Hospital's total net patient care revenue did not agree to the amount in the report submitted to the Department of Health and Human Services. Responsible Individuals: Scott Brooks, CEO and Stephanie LaBrie, CFO Corrective Action Plan: Management will review proced ures to ensure that proper documents are kept and filed for support of expenditures used towards federal grants. Anticipated Completion Date: 6/30/2025

View Audit 338062

Finding 519295 (2023-003)

Material Weakness 2023

Jacobson Memorial Hospital Care Center and Subsidiary

ND

Questioned Costs Allowable Costs / Cost Principles Material Weakness § 200.303

Federal Agency Name: Department af Health and Human Services Program Name: Cavid-19 Provider Relief Fund and American Rescue Plan (ARP) Rural Distribution Federal Assistance Listing #93.498 Finding Summary: The Hospital's calculation of lost revenue claimed under the federal program as an allowable...

Federal Agency Name: Department af Health and Human Services Program Name: Cavid-19 Provider Relief Fund and American Rescue Plan (ARP) Rural Distribution Federal Assistance Listing #93.498 Finding Summary: The Hospital's calculation of lost revenue claimed under the federal program as an allowable cost contained no formal review or approval by a separate individual outside of the preparer. In addition, there was no evidence retained that the Hospital's special report submitted to t he Department of Health and Human Services for Period 4 was reviewed and approved by a separate individual outside of the preparer. Responsible Individuals: Scott Brooks, CEO and Stephanie La Brie, CFO Corrective Action Plan: Internal controls will be updated to include that all reports and supporting documents will be reviewed by the CEO if the CFO compiles for accuracy and vice versa. The reviewer will sign off by email or by physical signature that they have reviewed and agree with the support. Anticipated Completion Date: 6/30/2024

View Audit 338062

Finding 519152 (2023-005)

Material Weakness 2023

Southwest Center for Hiv/aids, INC

AZ

Questioned Costs Material Weakness Reporting

Item: 2023-005 Assistance Listing Number: 93.940 Programs: HIV Prevention Activities Health Department Based Federal Agency: U.S. Department of Health and Human Services Pass-Through Agency: Arizona Department of Health Services Compliance Requirement: Reporting Criteria or Specific Requirement: Per...

Item: 2023-005 Assistance Listing Number: 93.940 Programs: HIV Prevention Activities Health Department Based Federal Agency: U.S. Department of Health and Human Services Pass-Through Agency: Arizona Department of Health Services Compliance Requirement: Reporting Criteria or Specific Requirement: Per grant agreements the organization was required to submit multiple reports at various dates during the grant period. Condition: Required reports not submitted to granting agency and incomplete record retention to evidence the timely submission of reports to granting agencies. Name of Contact Person: Rosalie Johnson, Chief Financial Officer Phone Number: (602) 595-8109 Anticipated Completion Date: January 1, 2024 Views of Responsible Officials and Corrective Actions: Management agrees with the finding. Reports will be submitted timely.

View Audit 337692

Finding 519151 (2023-004)

Significant Deficiency 2023

Southwest Center for Hiv/aids, INC

AZ

Questioned Costs Allowable Costs / Cost Principles Significant Deficiency § 200.430

Item: 2023-004 Assistance Listing Number: 93.940 Programs: HIV Prevention Activities Health Department Based Federal Agency: U.S. Department of Health and Human Services Pass-Through Agency: Arizona Department of Health Services Compliance Requirement: Allowable Activities and Costs Criteria or Spec...

Item: 2023-004 Assistance Listing Number: 93.940 Programs: HIV Prevention Activities Health Department Based Federal Agency: U.S. Department of Health and Human Services Pass-Through Agency: Arizona Department of Health Services Compliance Requirement: Allowable Activities and Costs Criteria or Specific Requirement: In accordance with 2 CFR § 200.430 – Compensation – charges to federal programs for salaries and wages should be supported by a system of internal controls which provides reasonable assurance the amounts charged are accurate, allowable and properly allocated. Condition: Incorrect allocation of employee hours were charged to the federal program. Name of Contact Person: Rosalie Johnson, Chief Financial Officer Phone Number: (602) 595-8109 Anticipated Completion Date: January 1, 2024 Views of Responsible Officials and Corrective Actions: Management agrees with the finding. Billings are reviewed by supervisors, including a review of the underlying supporting documentation, prior to submission of the billing. Additional training and record retention practices will be added and/or enhanced to ensure there is evidence of supervisory review of the underlying supporting documentation. Such review and record retention processes will include documentation of noted discrepancies and rationale for such discrepancies if not corrected.

View Audit 337692

Finding 519084 (2023-001)

Significant Deficiency 2023

City of Biloxi

MS

Questioned Costs

The City strives to comply with governing rules and regulations. The current year audit was delayed due to the late issuance of the prior year as well as the implementation of new accounting standard GASB 96-Subscription-based Information Technology Arrangements. The City continues their efforts t...

The City strives to comply with governing rules and regulations. The current year audit was delayed due to the late issuance of the prior year as well as the implementation of new accounting standard GASB 96-Subscription-based Information Technology Arrangements. The City continues their efforts to improve processess and have a routing audit schedule beginning with fiscal year 2024.

View Audit 337575

Finding 519073 (2023-003)

Material Weakness 2023

Houston Housing Authority

TX

HUD Housing Programs Questioned Costs Eligibility

The Houston Housing Authority agrees with this finding. The Houston Housing Authority has for the past several months undertaken a program to review all voucher files for purposes of getting all delinquent recertifications completed. During this process if other required documents are found to be m...

The Houston Housing Authority agrees with this finding. The Houston Housing Authority has for the past several months undertaken a program to review all voucher files for purposes of getting all delinquent recertifications completed. During this process if other required documents are found to be missing steps are being taken to complete the missing documentation and make sure that the files are complete. This review is substantially completed with final completion expected in the third quarter of 2024. Procedures have been implemented with regards to preventing this situation from recurring. Where needed staff will be provided the necessary training to make sure that a HCVP staff have the skills needed to successfully complete their job tasks. To facilitate this training, the Houston Housing Authority has created a training center that is made available to not only Houston Housing Authority staff but also others to provide a wide variety of training classes. Current leadership at the Houston Housing Authority is committed to having a competent trained staff working in the HCVP as well as other departments with the agency. Because the file clean up work was being performed in calendar year 2024 we expected this finding would be present for the 2023 audit. This work is handled by the Voucher Program Operations department. The VP of this department and the Director of this department are primarily responsible for making sure the necessary corrections are made and the fill review is completed within the third quarter of 2024.

View Audit 337570

Finding 519071 (2023-005)

None 2023

Houston Housing Authority

TX

Questioned Costs Special Tests & Provisions HUD Housing Programs

The Houston Housing Authority agrees with this finding. A review of existing procedures revealed that there were issues with the management of the waiting lists. The Houston Housing Authority is transitioning to a new software program during 2024. One of the reasons for the implantation of the new...

The Houston Housing Authority agrees with this finding. A review of existing procedures revealed that there were issues with the management of the waiting lists. The Houston Housing Authority is transitioning to a new software program during 2024. One of the reasons for the implantation of the new software is to make use of a better wait list management feature that is available within the new software. Waitlists have been reviewed and purged of stale an do dated information which will facilitate better management of the waitlist for future periods.

View Audit 337570

Finding 519029 (2023-005)

Significant Deficiency 2023

School District of Cudahy

WI

Questioned Costs Subrecipient Monitoring Significant Deficiency § 200.326

Elementary and Secondary Education School Emergency Relief and Governors Emergency Education Relief Fund– Assistance Listing No. 84.425D & 84.425C Recommendation: We recommend the District design and implement internal controls that ensure required documentation of weekly certified payrolls are obt...

Elementary and Secondary Education School Emergency Relief and Governors Emergency Education Relief Fund– Assistance Listing No. 84.425D & 84.425C Recommendation: We recommend the District design and implement internal controls that ensure required documentation of weekly certified payrolls are obtained and reviewed for all contracts subject to compliance with Davis-Bacon Act. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: See the previous corrective action plan for item2023-05. Name(s) of the contact person(s) responsible for corrective action: Brian Dasher, Director of Business Services Planned completion date for corrective action plan: 12/1/2024

View Audit 337545

Finding 519026 (2023-004)

Material Weakness 2023

School District of Cudahy

WI

Questioned Costs Material Weakness Matching / Level of Effort / Earmarking

Elementary and Secondary Education School Emergency Relief and Governors Emergency Education Relief Fund– Assistance Listing No. 84.425D & 84.425C Recommendation: We recommend the District design and implement internal controls that ensure all necessary clauses, provisions and languages in included...

Elementary and Secondary Education School Emergency Relief and Governors Emergency Education Relief Fund– Assistance Listing No. 84.425D & 84.425C Recommendation: We recommend the District design and implement internal controls that ensure all necessary clauses, provisions and languages in included in contracts subject to compliance with Davis-Bacon Act. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: We will develop written procedures for compliance with the Davis-Bacon Act which will include obtaining a wage determination for our area, ensuring that all bid documents reference the requirement to comply with the law, and obtaining weekly payroll documentation from contractors Name(s) of the contact person(s) responsible for corrective action: Brian Dasher, Director of Business Services Planned completion date for corrective action plan: 12/1/2024

View Audit 337545

Finding 519023 (2023-003)

Significant Deficiency 2023

School District of Cudahy

WI

Questioned Costs Procurement, Suspension & Debarment Significant Deficiency § 200.313

Elementary and Secondary Education School Emergency Relief and Governors Emergency Education Relief Fund– Assistance Listing No. 84.425D & 84.425C Recommendation: We recommend the District design and implement capital asset record procedures and controls that ensure all necessary information is tra...

Elementary and Secondary Education School Emergency Relief and Governors Emergency Education Relief Fund– Assistance Listing No. 84.425D & 84.425C Recommendation: We recommend the District design and implement capital asset record procedures and controls that ensure all necessary information is tracked in capital asset records for assets purchased with federal awards. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: Business office staff will receive training on current district policies regarding the tracking of capital assets for federal purposes. A separate inventory of captial assets purchased with federal funds will be created and maintained. Name(s) of the contact person(s) responsible for corrective action: Brian Dasher, Director of Business Services Planned completion date for corrective action plan: 12/1/2024

View Audit 337545

Finding 519022 (2023-007)

Material Weakness 2023

School District of Cudahy

WI

Questioned Costs Material Weakness Internal Control / Segregation of Duties

Title I Grants to Local Educational Agencies – Assistance Listing No. 84.010 Recommendation: We recommend the District design and implement test security measures and internal controls to ensure these policies comply with requirements of Title I. Explanation of disagreement with audit finding: There...

Title I Grants to Local Educational Agencies – Assistance Listing No. 84.010 Recommendation: We recommend the District design and implement test security measures and internal controls to ensure these policies comply with requirements of Title I. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: We will create written internal controls which will implement the guidance outlined in the Wisconsin Department of Public Instruction’s Test Security Manual. Name(s) of the contact person(s) responsible for corrective action: Mallory Umar, Director of Learning Services. Planned completion date for corrective action plan: 1/1/2025

View Audit 337545

Finding 519021 (2023-006)

Material Weakness 2023

School District of Cudahy

WI

Questioned Costs Material Weakness Internal Control / Segregation of Duties

Title I Grants to Local Educational Agencies – Assistance Listing No. 84.010 Recommendation: We recommend the District design and implement procedures and internal controls to ensure proper documentation is obtained and retained for any students removed from the adjusted cohort. Explanation of disag...

Title I Grants to Local Educational Agencies – Assistance Listing No. 84.010 Recommendation: We recommend the District design and implement procedures and internal controls to ensure proper documentation is obtained and retained for any students removed from the adjusted cohort. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: We will create written procedures to confirm the removal of a student from the cohort and will comply with the following: To remove a student from the cohort, a school or LEA must confirm, in writing, that the student transferred out, emigrated to another country, transferred to a prison or juvenile facility, or is deceased. To confirm that a student transferred out, the school or LEA must have official written documentation that the student enrolled in another school or in an educational program that culminates in the award of a regular high school diploma. A student who is retained in grade, enrolls in a GED program, or leaves school for any other reason may not be counted as having transferred out for the purpose of calculating graduation rate and must remain in the adjusted cohort (ESEA sections Name(s) of the contact person(s) responsible for corrective action: Mallory Umar, Director of Learning Services Planned completion date for corrective action plan: 1/1/2025

View Audit 337545

Finding 518999 (2023-001)

Significant Deficiency 2023

Friendly Temple Apartments Ii, INC

MO

Questioned Costs HUD Housing Programs Significant Deficiency

Management agrees with this finding and the overpayment was corrected in March 2024. Management will review internal controls and implement a review process to only pay expenses already incurred to avoid future overpayments.

View Audit 337486 Questioned Costs: $1

Finding 518925 (2023-003)

Material Weakness 2023

Eclectic Soul Voices Corporation

IN

Procurement, Suspension & Debarment Questioned Costs Allowable Costs / Cost Principles § 200.302

Finding 2023-03 Lack of Documentation to Support Expenditures Condition: The Organization failed to maintain financial records that properly substantiated expenditures which limited the ability to test several compliance requirements as part of audit procedures. These issues were most prevalent in ...

Finding 2023-03 Lack of Documentation to Support Expenditures Condition: The Organization failed to maintain financial records that properly substantiated expenditures which limited the ability to test several compliance requirements as part of audit procedures. These issues were most prevalent in testing direct disbursements. As part of audit procedures, 81 transactions were selected in a testing sample from a population which included 315 transactions. Of the 81 transactions tested, the Organization was unable to provide sufficient source documentation to support 21 of the transactions. Further, vendor and contract files were not consistently maintained and failed to provide adequate support to detail the history, method, and selection of procurement. Corrective Actions Taken or Planned: - Collaborate with the CPA firm to develop a standardized process for recording and tracking gift card transactions and allotments, ensuring accountability and traceability. - Add LaKisha (Executive Administrative Assistant) to QuickBooks with specific responsibilities for recording receipts, requisition forms, and matching these to corresponding transactions. Provide QuickBooks training for the Executive Assistant to strengthen understanding and ensure timely and accurate documentation of financial activities. - Develop and enforce a formal policy requiring comprehensive documentation (e.g., invoices, receipts, contracts) for all expenditures over a certain threshold (e.g., $500 or higher). This policy will include requirements for approval and justification prior to disbursement. - Require all staff to complete requisition forms for supplies or purchases in advance of procurement. These forms will include itemized details, purpose of purchase, and approval signatures. - Update processes to ensure vendor and contract files include critical details: procurement history, selection method, contract terms, and vendor agreements. These files will be consistently maintained and reviewed for completeness. - Strengthen the credit card usage process to require staff to submit itemized receipts, purpose of purchase, and pre-approval for all credit card transactions. This will include monthly reconciliations and management review of all credit card statements. - Implement periodic internal reviews to ensure compliance with the new documentation and procurement processes. The CPA firm will assist with quality checks and provide ongoing guidance.

View Audit 337399 Questioned Costs: $1

Corrective Action Plans

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