Corrective Action Plans

Finding 395990 (2023-002)

Material Weakness 2023

Boys and Girls Clubs of Philadelphia, Inc.

PA

Allowable Costs / Cost Principles Questioned Costs Cash Management

The questioned costs were immaterial and relate to a pay period that was split across the fiscal year (6/27/22 to 7/8/22, with a pay date of 7/15/22). Reports to the funder for the year ending 6/30/22 were due on 7/10/22, before all payroll information and supporting documentation for this pay perio...

The questioned costs were immaterial and relate to a pay period that was split across the fiscal year (6/27/22 to 7/8/22, with a pay date of 7/15/22). Reports to the funder for the year ending 6/30/22 were due on 7/10/22, before all payroll information and supporting documentation for this pay period was available. Therefore, the full pay period was included in the July reimbursement report. This practice was approved by the funder. Moving forward, the organization will be more cognizant of accrual dates for payroll reporting and submit a true-up as needed to ensure that payroll costs are correctly allocated at the end of the fiscal year. Additionally, in May 2024, the organization will be implementing a new electronic payroll system that will allow us to obtain this information more quickly at the close of each fiscal year to complete billing reports.

View Audit 305611 Questioned Costs: $1

Finding 395925 (2023-002)

Material Weakness 2023

Nance County Nebraska

NE

Internal Control / Segregation of Duties Questioned Costs Material Weakness

March 28, 2024 Nance County, Nebraska, respectfully submits the following corrective action plan for the year ended June 30, 2023. Name and address of independent public accounting firm: Romans, Wiemer & Associates, Certified Public Accountants, P.C., 1910 N Lincoln Ave, York, NE 68467 Audit Pe...

March 28, 2024 Nance County, Nebraska, respectfully submits the following corrective action plan for the year ended June 30, 2023. Name and address of independent public accounting firm: Romans, Wiemer & Associates, Certified Public Accountants, P.C., 1910 N Lincoln Ave, York, NE 68467 Audit Period: July 1, 2022 through June 30, 2023 The findings from the March 28, 2024 schedule of findings and questioned cost are discussed below. The findings are numbered consistently with the numbers assigned in the schedule. FINDINGS – FINANCIAL STATEMENT AUDIT MATERIAL WEAKNESS 2023-001 Internal Control Structure Design Recommendation: While considering the cost of any benefits derived, activities should be segregated and handled by different employees. Action Taken: The cost of implementing a complete set of controls far outweighs the benefits derived by such. It is not financially feasible to have a complete set of controls. FINDINGS – FEDERAL AWARD PROGRAM AUDIT U.S. Department of the Treasury 2023-002 Internal Control Structure Design Recommendation: While considering the cost of any benefits derived, activities should be segregated and handled by different employees. Action Taken: The cost of implementing a complete set of controls far outweighs the benefits derived by such. It is not financially feasible to have a complete set of controls. If the U.S. Department of the Treasury has questions regarding this plan, please call Adrian Chlopek at (308) 536-2331.

View Audit 305578

Finding 395924 (2023-001)

Significant Deficiency 2023

Hartford Village

MI

HUD Housing Programs Questioned Costs Significant Deficiency

HARTFORD VILLAGE HUD PROJECT NO. 044-38023 CORRECTIVE ACTION PLAN Hartford Village respectfully submits the following corrective action plan for the year ended December 31, 2023. Auditor: Maner Costerisan 2425 E. Grand River Avenue, Suite 1 Lansing, MI 48912 Audit Period: Year ended December 31, 202...

HARTFORD VILLAGE HUD PROJECT NO. 044-38023 CORRECTIVE ACTION PLAN Hartford Village respectfully submits the following corrective action plan for the year ended December 31, 2023. Auditor: Maner Costerisan 2425 E. Grand River Avenue, Suite 1 Lansing, MI 48912 Audit Period: Year ended December 31, 2023 Corporation Contact Person: Bruce Blalock, Director at Management Agent The findings from the December 31, 2023 schedule of findings and questioned costs are discussed below. The findings are numbered consistently with the number assigned in the schedule. Finding – Federal Award Findings and Questioned Costs Finding 2023-001: Considered a significant deficiency in internal control over compliance. Recommendation: The HUD-prescribed percentage of rental and other receipts used to calculate management fees should be adjusted after changes to rent rates to ensure that the management fees charged are under the per-unit-permonth amount outlines in the management agent certification. Action to be Taken: The Organization concurs with the facts of this finding, and will pay back the $8,928 to the organization in the 2024 audit year.

View Audit 305573

Finding 395923 (2023-003)

Significant Deficiency 2023

Wauwatosa School District

WI

Questioned Costs Cash Management

The district has changed internal verifications and has engaged a new Medicare processing provider which will ensure future compliance with having all M5 forms on file.

View Audit 305572 Questioned Costs: $1

Finding 395913 (2023-003)

Material Weakness 2023

Louisville Metro Housing Authority

KY

Questioned Costs Special Tests & Provisions HUD Housing Programs

Finding Reference Number: 2023-003 Statement of Concurrence or Nonconcurrence: Louisville Metro Housing Authority agrees with Cherry Bekaert in reference to audit finding 2023-003. Corrective Action: To ensure supporting documents are maintained to support all HUD-52722 forms, all privately managed ...

Finding Reference Number: 2023-003 Statement of Concurrence or Nonconcurrence: Louisville Metro Housing Authority agrees with Cherry Bekaert in reference to audit finding 2023-003. Corrective Action: To ensure supporting documents are maintained to support all HUD-52722 forms, all privately managed Mixed-Finance developments will submit utility cost and consumption data to include copies of invoices to LMHA monthly. Utility cost and consumption data to include copies of invoices are already collected by LMHA managed sites. Name of Contact Person: Jeff Ralph, Director of Finance, 502-569-4372, ralph@lmha1.org Projected Completion Date: Louisville Metro Housing Authority is actively working with third party managers to ensure that LMHA receives, on a monthly basis, the utility invoices that support the HUD-52722 forms and maintaining the documentation on LMHA network servers along with a secondary review of all HUD-52723 and HUD 52722 forms prior to annual submission to HUD /Secure Systems/Public Housing Portal (PIH Operating Fund). QUESTIONED COSTS Undeterminable per Cherry Bekaert If the (Office of Policy and Management and/ or Oversight Agency) has questions regarding this Plan, please call Jeff Ralph at 502-569-4372.

View Audit 305538

Finding 395912 (2023-002)

Material Weakness 2023

Louisville Metro Housing Authority

KY

Questioned Costs Special Tests & Provisions HUD Housing Programs

Finding Reference Number: 2023-002 Statement of Concurrence or N onconcurrence: Louisville Metro Housing Authority agrees with Cherry Bekaert in reference to audit finding 2023-002. Corrective Action: To verify that the hours charged by maintenance staff are reasonable, Central Maintenance superviso...

Finding Reference Number: 2023-002 Statement of Concurrence or N onconcurrence: Louisville Metro Housing Authority agrees with Cherry Bekaert in reference to audit finding 2023-002. Corrective Action: To verify that the hours charged by maintenance staff are reasonable, Central Maintenance supervisors/coordinators will verify the accuracy of the hours recorded to work orders completed. Questionable hours will be reviewed and corrected when appropriate. The report will then be submitted to Finance to be charged to Public Housing development. The Finance Department will perform an additional review for reasonableness prior to posting. Name of Contact Person: Greg Crum, Director of Property Management, 502-569-3416, crum@lmhal.org Projected Completion Date: Louisville Metro Housing Authority implemented the corrective action measure in April 2024. LMHA will monitor the issue on a monthly basis in conjunction with its month end accounting close process to ensure compliance with the special fees charged in related party transactions. QUESTIONED COSTS All costs were corrected and fees were reversed. If the (Office of Policy and Management and/ or Oversight Agency) has questions regarding this Plan, please call Jeff Ralph at 502-569-4372.

View Audit 305538 Questioned Costs: $1

Finding 395910 (2023-002)

None 2023

Washington Adventist University

MD

Questioned Costs Special Tests & Provisions Student Financial Aid

I will ensure the Financial Aid Office works closely with the Accounts Payables department to monitor that all Title IV refund checks have been cashed after 30 days of issuance of the refund. If a check has not been cashed a new check will be reissued immediately. If, after 30 days of the reissuance...

I will ensure the Financial Aid Office works closely with the Accounts Payables department to monitor that all Title IV refund checks have been cashed after 30 days of issuance of the refund. If a check has not been cashed a new check will be reissued immediately. If, after 30 days of the reissuance, the check has not been cashed then the funds will be returned to the Department of Education within the mandated 45-day period.

View Audit 305536 Questioned Costs: $1

Finding 395909 (2023-001)

Significant Deficiency 2023

Washington Adventist University

MD

Questioned Costs Student Financial Aid Special Tests & Provisions

We recently completed the transition and onboarding of departmental staff which would allow the University to fully enact its plan to ensure both the financial aid and the Registrar's office will perform prompt review of processing University withdrawals. The Registrar's office will develop process ...

We recently completed the transition and onboarding of departmental staff which would allow the University to fully enact its plan to ensure both the financial aid and the Registrar's office will perform prompt review of processing University withdrawals. The Registrar's office will develop process and procedures documentation as an internal control measuring tool to ensure that Administrative Withdrawals (AW) and Withdrawals for lack of attendance (WA) that affect student emollment are identified immediately. Staff in the Financial Aid and the Registrar's office will actively take part in training workshops and webinars provided by the Depatiment of Education and NASF AA for continuing education to stay abreast of new developments and best practices in the industry.

View Audit 305536 Questioned Costs: $1

Finding 395870 (2023-002)

Significant Deficiency 2023

Powell Boulevard Apartments, Inc.

OR

HUD Housing Programs Questioned Costs Special Tests & Provisions

Finding No. 2023-002; Federal Assistance Listing Number 14.181 Statement of Condition: The Company did not respond to HUD to indicate that the exigent health and safety deficiencies were resolved in connection with the physical inspection conducted on July 25, 2023 timely. Corrective Action: R...

Finding No. 2023-002; Federal Assistance Listing Number 14.181 Statement of Condition: The Company did not respond to HUD to indicate that the exigent health and safety deficiencies were resolved in connection with the physical inspection conducted on July 25, 2023 timely. Corrective Action: REACH has policies in place to respond to the REAC inspections in a timely manner but due to staffing shortages had issues with timely completion of the filing in 2023. Staff will receive additional assistance to the ensure the property is in compliance.

View Audit 305489

Finding 395865 (2023-004)

Significant Deficiency 2023

Community Housing, Inc.

OR

Questioned Costs Special Tests & Provisions HUD Housing Programs

Finding 2023-004 – Federal Assistance Listing Number 14.239 Statement of Condition: During the period of affordability (i.e., the period for which the nonfederal entity must maintain subsidized housing) for HOME assisted rental housing, the participating jurisdiction must perform on-site inspecti...

Finding 2023-004 – Federal Assistance Listing Number 14.239 Statement of Condition: During the period of affordability (i.e., the period for which the nonfederal entity must maintain subsidized housing) for HOME assisted rental housing, the participating jurisdiction must perform on-site inspections to determine compliance with property standards and verify the information submitted by the owners no less than every year for projects containing 26 or more units. The participating jurisdiction must perform on-site inspections of rental housing occupied by tenants receiving HOME/HOME-ARP-assisted tenant-based rental assistance to determine compliance with housing quality standards (24 CFR sections 92.209(i), 92.251(f), and 92.504(d)). Corrective Action: REACH has policies in place to ensure that HQS inspections are done in a timely manner. Staffing shortages at the property had an impact on the completion of HQS inspections in 2023. As new staff are brought onboard training is provided and additional training will be provided to on-site staff to ensure that the inspections are being completed and properties are in compliance.

View Audit 305485

Finding 395864 (2023-003)

Significant Deficiency 2023

Community Housing, Inc.

OR

HUD Housing Programs Questioned Costs Special Tests & Provisions

Finding 2023-003 – Federal Assistance Listing Number 14.157 Statement of Condition: In connection with our lease file testing one out of one move-out tenant files tested did not have a security deposit refunded timely or a move out inspection on file. Corrective Action: REACH has policies in ...

Finding 2023-003 – Federal Assistance Listing Number 14.157 Statement of Condition: In connection with our lease file testing one out of one move-out tenant files tested did not have a security deposit refunded timely or a move out inspection on file. Corrective Action: REACH has policies in place to ensure that move out inspections and the return of tenant security deposits are done in a timely manner. Staffing shortages at the property had an impact on the timeliness of the move out inspection and the return of security deposits. As new staff are brought onboard training is provided and additional training will be provided to on-site staff to ensure that the inspections and the return of security deposits are being completed and properties are in compliance.

View Audit 305485

Finding 395863 (2023-002)

Significant Deficiency 2023

Community Housing, Inc.

OR

HUD Housing Programs Questioned Costs Special Tests & Provisions

Finding 2023-002 – Federal Assistance Listing Number 14.157 Statement of Condition: In accordance with Chapter 6 of HUD Handbook 4350.1, Management and Occupancy Reports (“MOR”) must be replied to within HUD specified timelines. Corrective Action: REACH has policies in place to respond to MORs ...

Finding 2023-002 – Federal Assistance Listing Number 14.157 Statement of Condition: In accordance with Chapter 6 of HUD Handbook 4350.1, Management and Occupancy Reports (“MOR”) must be replied to within HUD specified timelines. Corrective Action: REACH has policies in place to respond to MORs but due to staffing shortages in 2023 had issues filing in a timely manner. Staff have been reminded to respond to MOR findings in a timely manner going forward.

View Audit 305485

Finding 395834 (2023-001)

Material Weakness 2023

Child Nutrition Program of Southern California

CA

HUD Housing Programs Internal Control / Segregation of Duties Questioned Costs

During the period of April 2023 through September 2023, the turnover in staff put too many accounting functions on Program Manager I. The Organization hired additional staff and restructured accounting functions to Program manager II that eliminated the segregation of duties.

View Audit 305471

Finding 395826 (2023-002)

Material Weakness 2023

National Council for Behavioral Health and Subsidiary

DC

Questioned Costs Internal Control / Segregation of Duties

National Council for Behavioral Health (d/b/a National Council for Mental Wellbeing) Corrective Action Plan Department of Health and Human Services The National Council for Mental Wellbeing respectfully submits the following corrective action plan for the year ended September 30, 2023. Name and a...

National Council for Behavioral Health (d/b/a National Council for Mental Wellbeing) Corrective Action Plan Department of Health and Human Services The National Council for Mental Wellbeing respectfully submits the following corrective action plan for the year ended September 30, 2023. Name and address of independent public accounting firm: Marcum LLP 1899 L Street NW Suite 850 Washington DC 20036 The finding from the September 30, 2023, schedule of findings and questioned costs is discussed below. The finding is numbered consistently with the number assigned in the schedule. Finding No. 2023-002: Inadequate Review of Subsidiary Ledger – Material Weakness Recommendation We recommend that the Council enhance its internal control over reconciliation and review to ensure that its subsidiary ledgers only include proper and valid transactions. Management’s Response: When uncashed checks were reissued in the previous accounting system, there were occurrences that we did not fully complete a second step needed to void these checks. This resulted in recording duplicate expense and accounts payable in these occurrences. The error was not discovered due to the subsidiary ledger not being fully scanned for content by preparers and reviewers in the previous system. For our ongoing financial reconciliation process, several internal controls are already in place to catch such errors. One, this two-step error is no longer possible in our new accounting system that when live on October 1, 2022. Two, a continuation of ongoing comprehensive reconciliations of all balance sheet accounts, to include accounts payable, a proper segregation of duties, where staff/senior accountants prepare reconciliations and accounting management reviews. Going forward the preparers and reviewers procedure is to fully review the contents of the accounts payable subsidiary ledger just the same as we do with every other balance sheet account. Regarding the monies owed on closed federal awards, staff are currently reaching out to those federal project officials to facilitate reimbursement. Contact Person Responsible for Corrective Action: Jonathan Hutchins Expected Completion Date: 5/31/2024

View Audit 305464 Questioned Costs: $1

Finding 395815 (2023-102)

Material Weakness 2023

Greater Phoenix Urban League INC

AZ

Allowable Costs / Cost Principles Reporting Questioned Costs

Finding 2023-102 – Allowable Costs/Cost Principle (Material Weakness, Compliance Finding) Responsible Individual: William Bridgeman-Chief Fiscal Officer Corrective Action Plan: The organization tracks all revenue and expenses specifically and directly related to the Head Start Program CFDA 93.600 by...

Finding 2023-102 – Allowable Costs/Cost Principle (Material Weakness, Compliance Finding) Responsible Individual: William Bridgeman-Chief Fiscal Officer Corrective Action Plan: The organization tracks all revenue and expenses specifically and directly related to the Head Start Program CFDA 93.600 by individual general ledger. Each revenue and expenses account are supported with documentation. Classes within QuickBooks are available within the platform. However, using classes is optional and with the purchase of the more advance version of QuickBooks “QuickBooks Enterprise Platinum” it’s the intent of the organization to move to enhanced detail general ledger accounts (which will provide detail data relating to each individual transaction). As it relates to Assistance Listing No 93.185 National Urban League Vaccine Equity 2021-22 in the amount of $40,000 and Assistance Listing no. 10-551 in the amount of $52,129 is not affiliated with Head Start from a program perspective. No staff time or expenses of the two grants are related to the Head Start Program. Each of the reference programs are stand-alone funded through a third-party pass through grantee and not a direct grant from a federal agency. However, the organization will establish separate classes within QuickBooks Enterprise Platinum for each federal and state contract. The implementation of the vertical classes within the QuickBooks Enterprise Platinum platform will consist of the reconciliation of cost reimbursements with a separate and dedicated “in kind” calculation of 25% within the class where applicable as per grantee requirement. Implementation Date: July 1, 2024

View Audit 305459 Questioned Costs: $1

Finding 395814 (2023-101)

Material Weakness 2023

Greater Phoenix Urban League INC

AZ

Allowable Costs / Cost Principles Questioned Costs Cash Management

Finding 2023-101 Allowable Costs/Cost Principle and Reporting (Material Weakness Compliance Finding) Repeat Finding Responsible Individuals: William Bridgeman Chief Fiscal Officer Natalie Alvarez- Chief Operating Officer Head Start Director Corrective Action Plan: Greater Phoenix Urban League has r...

Finding 2023-101 Allowable Costs/Cost Principle and Reporting (Material Weakness Compliance Finding) Repeat Finding Responsible Individuals: William Bridgeman Chief Fiscal Officer Natalie Alvarez- Chief Operating Officer Head Start Director Corrective Action Plan: Greater Phoenix Urban League has received great support from our community partners by providing in-kind space in 4 school districts and the abundance of parent volunteer support for our Head Start program, however, the program struggles to identify the in-kind match during the turn to full on campus instruction. COVID19 has had a considerable impact on the programs ’s ability to meet the non-federal share obligation as families and community volunteers are not allowed fully back onto Head Start Campuses and enrollment has declined. The program was unable to open several classrooms due to lack of qualified staff and low enrollment. In the past, Greater Phoenix Urban League Head Start has relied heavily on in-kind Space as the main source of program match and with the closing of classrooms in-kind was very difficult to collect. We believe we have worked towards meeting the challenge of program in-kind match. We have used ARPA funds to develop “A grow your own program.” Greater Phoenix Urban League Head Start has recruited parents and the community to participant in a workforce development program to train and hire new Head Start staff as classroom aides and teacher assistances. We also have contracted with an organization to provided contracted instructional support to open up temporarily closed classrooms. The program will continue to identify non-federal share to meet the obligations of the grant award. COVID will continue to have an impact on the programs ’s ability to meet non-federal share but it certainly opens new channels of identifying non-federal share. The following steps are in progress of being implemented in fiscal year 23-24 within the grantee: • An internal control process has been developed to review the current system to document the resources for non-federal share. A Data Assistant will review and analyze at our process in collecting in kind. • Revised Policies and procedures will be developed to assisted instructional staff to collect parent volunteer hours. • Parent Policy Committee will be trained on the non-federal share in-kind as it relates to their important role within the Head Start Program. • Greater Phoenix Urban League Head Start will continue to review the internal control process annually to ensure compliance with the Head Start Program Performance Standards, federal regulations, and City of Phoenix Grantee regulations. • Greater Phoenix Urban League Chief Fiscal Officer, fiscal staff, Program Director and Grantee Fiscal and Program staff will meet monthly to review fiscal reporting and requirements, to ensure grant obligations are on track. • Greater Phoenix Urban League will continue their efforts to identify citywide partners that can provide non-federal share to the Head Start Program. • Greater Phoenix Urban League Chief Fiscal Officer, fiscal staff, Program Director and Grantee Fiscal and Program staff will meet monthly to review fiscal reporting and requirements, to ensure grant obligations are on track. • All third-party appraisals will be conducted in May 2024 to reflect the current market value of space and real property. • The activities mentioned above will assist the Greater Phoenix Urban League-Head Start Program in meeting its obligations in the coming years. Anticipated Completion Date: Ongoing throughout the contract period on an annualized basis. May 1, 2024

View Audit 305459 Questioned Costs: $1

Finding 395808 (2023-001)

Significant Deficiency 2023

Aarp Foundation

DC

Matching / Level of Effort / Earmarking Questioned Costs Subrecipient Monitoring

Person responsible for corrective action Emily Allen, SVP Programs Corrective Action The Foundation concurs with this finding. We have worked with the U.S. Department of Labor and the matter is now closed. In February 2024, the Foundation repaid the $435,289 identified in this finding, and a mod...

Person responsible for corrective action Emily Allen, SVP Programs Corrective Action The Foundation concurs with this finding. We have worked with the U.S. Department of Labor and the matter is now closed. In February 2024, the Foundation repaid the $435,289 identified in this finding, and a modified final report has been filed. The Foundation will design and implement additional processes to ensure that earmarking requirements are monitored on a continuous basis by SCSEP staff. In the meantime, the Foundation has implemented additional controls to address the risks of noncompliance with earmarking requirements. Beginning with the March 2024 quarterly report (which was filed on April 9, 2024), all such reports will be reviewed by the Group Controller and Assistant National Director, SCSEP, with specific reference to the earmarking requirements. In the event of any report identifying a risk of noncompliance with the earmarking requirements, the Foundation will immediately raise the matter with our colleagues at the U.S. Department of Labor. Anticipated Completion Date Initial implementation completed, with further control enhancements to be in place by June 30, 2024

View Audit 305433 Questioned Costs: $1

Finding 395806 (2023-002)

Significant Deficiency 2023

Gallagher Mansion, INC

MD

Questioned Costs

Replacement Reserve Deposits Unexpected ...

Replacement Reserve Deposits Unexpected delays were encountered due to the change in the Managing Agent at the end of the fiscal year and the transfer of cash accounts were delayed The Entity has reviewed the replacement reserve account and will deposit the shortfall of funds upon receipt of HUD Monthly subsidy payments to ensure the account is properly funded.

View Audit 305426

Finding 395805 (2023-001)

Significant Deficiency 2023

Gallagher Mansion, INC

MD

Questioned Costs Reporting

Timely submission of Required Reporting Packages Management understands the need to...

Timely submission of Required Reporting Packages Management understands the need to be in compliance with the filing requirements and will ensure that these reports are filed timely. Unexpected delays were encountered due to the change in the Managing Agent at the end of the fiscal year and the transition took longer than expected. The filings have been subsequently completed with FAC and REAC.

View Audit 305426

Finding 395803 (2023-006)

None 2023

Winnebago Cusd #323

IL

Questioned Costs

Monitoring the grant and what is being purchased using grant account numbers, making sure that only approved expenditures are being purchased and approved with the grant. See full Corrective Action Plan on district letterhead.

View Audit 305425 Questioned Costs: $1

Finding 395759 (2023-004)

Significant Deficiency 2023

Grand Forks Regional Airport Authority

ND

Allowable Costs / Cost Principles Questioned Costs Internal Control / Segregation of Duties

Contact Person – Krista Martin, Director of Finance and Administration, and Ryan Riesinger, Executive Director Corrective Action Plan – Review and update procedures over payment requests to ensure allowability accuracy. Completion Date –December 31, 2024

View Audit 305388 Questioned Costs: $1

Finding 395758 (2023-003)

Significant Deficiency 2023

Grand Forks Regional Airport Authority

ND

Internal Control / Segregation of Duties Questioned Costs Cash Management § 200.302 § 200.305

Contact Person – Krista Martin, Director of Finance and Administration, and Ryan Riesinger, Executive Director Corrective Action Plan – Review and update procedures to ensure accurate reporting. Completion Date –December 31, 2024

View Audit 305388

Finding 395755 (2023-002)

Significant Deficiency 2023

Occk, Inc.

KS

Questioned Costs Subrecipient Monitoring Allowable Costs / Cost Principles

Auditors’ Recommendation: We recommend the Agency implement control activities and monitoring procedures to ensure monthly reports that are submitted to the funding agencies are accurately reflecting allowable grant costs. Action Taken: We agree with the finding and have taken the actions as outlin...

Auditors’ Recommendation: We recommend the Agency implement control activities and monitoring procedures to ensure monthly reports that are submitted to the funding agencies are accurately reflecting allowable grant costs. Action Taken: We agree with the finding and have taken the actions as outlined in finding 2023‐001 to fully address and improve the control process. Specifically, Agency management has reviewed the internal processes and enhanced control activities to ensure the mechanic salaries are accurately reported in the monthly operating reports going forward.

View Audit 305387 Questioned Costs: $1

Finding 395754 (2023-001)

Significant Deficiency 2023

Occk, Inc.

KS

Questioned Costs Allowable Costs / Cost Principles

Auditors’ Recommendation: Agency management took immediate action to determine the effect for the entire year, communicated with the auditor, communicated with the Kansas Department of Transportation, and developed the plan to respond to the finding. As recommended by the Kansas Department of Transp...

Auditors’ Recommendation: Agency management took immediate action to determine the effect for the entire year, communicated with the auditor, communicated with the Kansas Department of Transportation, and developed the plan to respond to the finding. As recommended by the Kansas Department of Transportation, a check for $13,715 will be written to the Kansas Department of Transportation. The last six‐month amount of $20,781 will be reported on the February, 2024, operating report to reduce the Kansas Department of Transportation reimbursement provided to the Agency for the year ending June 30, 2024. Action Taken: We agree with the finding and have taken the following actions to fully address and correct the discrepancies. 1. Agency management reviewed all twelve months of 2023 billing to determine the total amount to return to the Kansas Department of Transportation. After this review, management determined that the overreporting discrepancies began in January, 2023, and occurred every month through December, 2023. 2. A meeting was held between Agency management and the Kansas Department of Transportation Program Administrator and Program Consultant to discuss the findings and determine a plan of action to correct the discrepancies. The action planned is outlined in the Recommendation section of this finding. 3. Monthly Operating Budget billings for January 2023 through December 2023, were reviewed and the appropriate amounts that should have been billed were determined and compared to the actual amount billed to KDOT. The net result is as identified in the Recommendation section of this finding. 4. Agency management has reviewed the internal processes and enhanced control activities to ensure the mechanic salaries are accurately reported in the monthly operating reports going forward.

View Audit 305387 Questioned Costs: $1

Finding 395732 (2023-001)

None 2023

Fountain Court Consumer Housing Cooperative, Inc.

IN

Questioned Costs

Management deposited $1,980 on March 15, 2024 to fully fund the replacement reserve.

View Audit 305365 Questioned Costs: $1

Corrective Action Plans

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