Corrective Action Plans

Finding 538649 (2024-002)

Material Weakness 2024

SD

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

– 84.425F Finding: Two errors were noted related to period of performance: 1) the lost revenue calculation was completed in October 2023, which was after the June 30, 2023 period of performance date; and 2) the District also spent money on expenses for the program in November 2023 and January 2024, ...

– 84.425F Finding: Two errors were noted related to period of performance: 1) the lost revenue calculation was completed in October 2023, which was after the June 30, 2023 period of performance date; and 2) the District also spent money on expenses for the program in November 2023 and January 2024, which was after the 120-day liquidation period. Corrective Action Taken or Planned: The School will create and maintain a funding schedule according to the grant agreements. The schedule will be reviewed by various finance staff members for timing of grant reimbursements and deadlines. Contact person: Mike Stephens, Director of Accounting Status of finding – The above corrective actions will be implemented beginning April 1, 2025.

View Audit 349380 Questioned Costs: $1

Finding 538643 (2024-008)

Material Weakness 2024

Jemez Mountain School District

NM

Questioned Costs Eligibility

Corrective Action Plan 2024-008 [2023-006] – Improper Certification of Impact Aid (Material Weakness and Material Non-Compliance) Repeated Federal Program Information: Funding Agency: U. S. Department of Education Title: Impact Aid Federal Assistance Listing: 84-041 Passthrough: State of NM Public E...

Corrective Action Plan 2024-008 [2023-006] – Improper Certification of Impact Aid (Material Weakness and Material Non-Compliance) Repeated Federal Program Information: Funding Agency: U. S. Department of Education Title: Impact Aid Federal Assistance Listing: 84-041 Passthrough: State of NM Public Education Department Award Year: 2024 Responsible Official’s Plan: The district Superintendent, Federal Programs Manager and Lybrook principal have received training from Impact Aid in identifying eligible students. The recommended process will be used when submitting the next funding application. Specific corrective action plan for finding: The 2025 application was submitted using the process outlined in the corrective action plan. Timeline for completion of corrective action plan: June 2025 Employee positions responsible for meeting the timeline: Superintendent-Loren Cushman Principal-Arsenio Jacquez Federal Programs Manager-Patricia Cordova

View Audit 349366 Questioned Costs: $1

Finding 538589 (2024-010)

Material Weakness 2024

City of Montgomery, Alabama

AL

Questioned Costs Procurement, Suspension & Debarment Subrecipient Monitoring § 200.317

Management concurs. The City will reinforce its procurement policies through regular training and clear communication to all relevant staff members. Specifically, the importance of documenting the appropriate procurement procedures took place and obtaining all required signatures on contracts will b...

Management concurs. The City will reinforce its procurement policies through regular training and clear communication to all relevant staff members. Specifically, the importance of documenting the appropriate procurement procedures took place and obtaining all required signatures on contracts will be emphasized. Additionally, a periodic review process to ensure compliance with this policy will be implemented to help prevent future occurrences. The City will also take steps to review past contacts for similar issues and take corrective action when necessary.

View Audit 349361 Questioned Costs: $1

Finding 538518 (2024-064)

Material Weakness 2024

State of Maine

ME

Questioned Costs Allowable Costs / Cost Principles § 200.303 § 200.403

Department: Health and Human Services Title: Internal control over the Adoption Assistance – Title IV-E eligibility and benefit determination process needs improvement Questioned Costs: Known: ALN 93.659 $10,860 Likely: Undeterminable Status: Corrective action in progress Corrective Action: The Adop...

Department: Health and Human Services Title: Internal control over the Adoption Assistance – Title IV-E eligibility and benefit determination process needs improvement Questioned Costs: Known: ALN 93.659 $10,860 Likely: Undeterminable Status: Corrective action in progress Corrective Action: The Adoption Program Manager will continue to review the final Adoption Assistance Packet for completeness before approval. The Adoption Manager will review the most current Level of Care in foster care in the Child Welfare System to verify proper subsidy rates prior to approval. The Adoption Manager will work with the OCFS team on implementing and training on the updated Adoption Policy. The Office of Child and Family Services will organize a workgroup to evaluate how to improve the financial review process and define any changes needed to be implemented in Katahdin to support validating payments are processed appropriately. All children entering adoption must have a completed determination by the District FRS for verification of third-party benefits/Social Security. Effective date of last audit 2024, the documentation procedure was changed to clearly shows any determination. This is documented within the adoption application for all cases. This verification is used to determine an appropriate adoption assistant rate. Completion Date: March 1, 2025, first, second and fifth items, September 1, 2025, third item, and November 1, 2025, fourth item Agency Contact: Karen Benson, Adoption Program Manager, OCFS, DHHS, 207-561-4208

View Audit 349360 Questioned Costs: $1

Finding 538516 (2024-063)

Material Weakness 2024

State of Maine

ME

Questioned Costs Allowable Costs / Cost Principles Eligibility § 200.303 § 200.403

Department: Health and Human Services Title: Internal control over the Foster Care – Title IV-E and Adoption Assistance – Title IV-E eligibility and benefit determination process needs improvement Questioned Costs: Known: ALN 93.658 $4,647 ALN 93.659 $9,367 Likely: Undeterminable Statu...

Department: Health and Human Services Title: Internal control over the Foster Care – Title IV-E and Adoption Assistance – Title IV-E eligibility and benefit determination process needs improvement Questioned Costs: Known: ALN 93.658 $4,647 ALN 93.659 $9,367 Likely: Undeterminable Status: Corrective action in progress Corrective Action: The Title IV-E Program Manager will continue to educate and train the FRS on the proper completion of the Title IV-E initial determination checklists for their FRS files, including the importance of signing off on those checklists for the initial determinations that they have completed. The Title IV-E Program Manager will conduct quarterly quality assurance (QA) reviews in the District that this issue was found, randomly pulling 10 cases to ensure compliance. When FRS staff conduct QA reviews, they will continue to be advised to monitor if signatures are present on the Title IV-E initial determination checklist. Reviewing if a checklist is signed is an existing question within our internal QA review document. The Department will establish a work group to identify the challenges of managing overpayments made to foster parents and to develop a process to minimize this problem. The Department will finalize and receive approval of the protocol/process form managing overpayments. The Department will implement the new overpayments management procedures. Completion Date: March 26, 2025, March 31, 2025, July 1, 2025, September 1, 2025, and November 1, 2025 respectively Agency Contact: Robert Blanchard, Associate Director, OCFS, DHHS, 207-624-7955

View Audit 349360 Questioned Costs: $1

Finding 538505 (2024-059)

Material Weakness 2024

State of Maine

ME

Questioned Costs Matching / Level of Effort / Earmarking Internal Control / Segregation of Duties § 200.303

Department: Health and Human Services Administrative and Financial Services Title: Internal control over CCDF financial reporting needs improvement Questioned Costs: Known: ALN 93.575 $3.7 million Likely: ALN 93.575 $3.7 million Status: Corrective action in progress Corrective Action: The DHHS Finan...

Department: Health and Human Services Administrative and Financial Services Title: Internal control over CCDF financial reporting needs improvement Questioned Costs: Known: ALN 93.575 $3.7 million Likely: ALN 93.575 $3.7 million Status: Corrective action in progress Corrective Action: The DHHS Financial Service Center will enhance policies and procedures for the CCDF grant by modifying the FSR Reviewer Checklist and add an additional layer of FSR reviewer The DHHS Financial Service Center will collaborate with the Office of Child and Family Services to make reporting line determinations. Completion Date: April 30, 2025, and September 1, 2025, respectively Agency Contact: Sarah Gove, Director, DHHS Service Center, DAFS, 207-458-6626

View Audit 349360 Questioned Costs: $1

Finding 538498 (2024-052)

Material Weakness 2024

State of Maine

ME

Questioned Costs Allowable Costs / Cost Principles Internal Control / Segregation of Duties § 200.303 § 200.403

Department: Health and Human Services Title: Internal control over payments made to TANF clients needs improvement Questioned Costs: Known: $1,014 Likely: Undeterminable Status: Corrective action in progress Corrective Action: The Department will increase monitoring procedures over payments, specifi...

Department: Health and Human Services Title: Internal control over payments made to TANF clients needs improvement Questioned Costs: Known: $1,014 Likely: Undeterminable Status: Corrective action in progress Corrective Action: The Department will increase monitoring procedures over payments, specifically the tracking of required receipts, by the ASPIRE Team. The Department will review and update Standard Operating Procedures to ensure that payments made to TANF clients are accurate, allowable, and adequately documented. Completion Date: June 30, 2025 Agency Contact: Ian Yaffe, Director, Office for Family Independence, DHHS, 207-592-1481

View Audit 349360 Questioned Costs: $1

Finding 538483 (2024-047)

Significant Deficiency 2024

State of Maine

ME

Questioned Costs Allowable Costs / Cost Principles Internal Control / Segregation of Duties § 200.303 § 200.403

Department: Education Administrative and Financial Services Title: Internal control over Special Education period of performance needs improvement Questioned Costs: Known: ALN 84.027 $7,303 Likely: ALN 84.027 $31,678 Status: Corrective action in progress Corrective Action: The Office of Special Serv...

Department: Education Administrative and Financial Services Title: Internal control over Special Education period of performance needs improvement Questioned Costs: Known: ALN 84.027 $7,303 Likely: ALN 84.027 $31,678 Status: Corrective action in progress Corrective Action: The Office of Special Services & Inclusive Education (OSSIE) fiscal team will perform a detailed review of all expenses charged to the closing grant during the 120-day liquidation period beginning October 1 of each year. The OSSIE fiscal team will notify GGSC to no longer allocate expenses to the closed grant period as of the review date. Any expenditure identified that do not fall within the period of performance of the grant will be journaled to the appropriate account. Completion Date: January 28, 2026 Agency Contact: Barbara McGowen, Director of Financial Management for the Office of Special Services & Inclusive Education Birth to 22, DOE, 207-624-6645

View Audit 349360 Questioned Costs: $1

Finding 538428 (2024-031)

Material Weakness 2024

State of Maine

ME

Questioned Costs Allowable Costs / Cost Principles School Nutrition Programs § 200.303 § 200.403

Department: Education Title: Internal control over CNC claim reimbursements needs improvement Questioned Costs: Known: ALN 10.555 $1,605 ALN 10.582 $9,535 ALN 10.559 $117,259 Likely: Undeterminable Status: Corrective action in progress Corrective Action: Child Nutrition ...

Department: Education Title: Internal control over CNC claim reimbursements needs improvement Questioned Costs: Known: ALN 10.555 $1,605 ALN 10.582 $9,535 ALN 10.559 $117,259 Likely: Undeterminable Status: Corrective action in progress Corrective Action: Child Nutrition Services will create a procedure for reviewing applications and making sure they are approved prior to participation. For the Summer Food Service Program (SFSP), the Child Nutrition Services will create an additional application, outside of CNPWeb to further assess non-congregate operations and eligibility to prevent duplicative services. Child Nutrition Services has submitted a ticket to create an edit check on the SFSP Application to ensure that all specific eligibility information is submitted. Child Nutrition Services will create a procedure to address that session specific information is received prior to claim approval for sites. Child Nutrition Services will require a site sheet for SFSP applications for each location and each enrollment period. Child Nutrition Services will submit a ticket to CNPWeb to allow for documentation to be added to the site information sheet when revisions are made to the system. Child Nutrition Services will add documentation to the activities tab, while we wait for the enhancement to be completed. Child Nutrition Services will create a procedure to ensure that allocations to schools fall between $50.00 - $75.00. Child Nutrition Services has provided training to the National School Lunch Program reviewers on the Fresh Fruit and Vegetable Program questions within the Administrative Review process to ensure that those questions are asked during the Administrative Review. Completion Date: May 1, 2025, first and fourth items, April 1, 2025, second, fifth, sixth, and seventh items, June 1, 2025, third item, March 1, 2025, eight item, and February 10, 2025, for nineth item Agency Contact: Jane McLucas, Director of Child Nutrition, DOE, 207-624-6880

View Audit 349360 Questioned Costs: $1

Finding 538423 (2024-030)

Material Weakness 2024

State of Maine

ME

Questioned Costs School Nutrition Programs Allowable Costs / Cost Principles § 200.303

Department: Education Title: Internal control over CNC eligibility needs improvement Questioned Costs: Known: ALN 10.559 $628,924 Likely: Undeterminable Status: Corrective action in progress Corrective Action: The Department will create procedures for Application Approvals with site classification, ...

Department: Education Title: Internal control over CNC eligibility needs improvement Questioned Costs: Known: ALN 10.559 $628,924 Likely: Undeterminable Status: Corrective action in progress Corrective Action: The Department will create procedures for Application Approvals with site classification, eligibility and non-congregate plan requirements. The Department will develop procedures for Revisions on Claims and Applications. For the Summer Food Service Program, the Department will request an edit check enhancement in CNPWeb to add actual enrollment be added to claims. Completion Date: May 1, 2025, first and second item, and May 1, 2026, third item Agency Contact: Jane McLucas, Director of Child Nutrition, DOE, 207-624-6880

View Audit 349360 Questioned Costs: $1

Finding 538398 (2024-024)

Material Weakness 2024

State of Maine

ME

Questioned Costs Allowable Costs / Cost Principles Procurement, Suspension & Debarment § 200.303 § 200.403

Department: Health and Human Services Title: Internal control over automated SNAP eligibility certification periods needs improvement Questioned Costs: Known: ALN 10.551 $3,973 Likely: Undeterminable Status: Corrective action in progress Corrective Action: The Department believes the necessary corre...

Department: Health and Human Services Title: Internal control over automated SNAP eligibility certification periods needs improvement Questioned Costs: Known: ALN 10.551 $3,973 Likely: Undeterminable Status: Corrective action in progress Corrective Action: The Department believes the necessary corrective action has been taken and will be reflected in the SFY25 audit. The Department implemented the following corrective action steps: 1) Returned to normal batch processing following the suspension of closures and pushing out of renewal dates related to the PHE and unwinding period. 2) Enhanced renewal appointment functionality in ACES to allow each program to be processed independently. 3) Runs monthly queries to identify cases that had their periodic reports withdrawn in error and reestablish them. Completion Date: October 1, 2024, first and second item, and June 30, 2024, third item Agency Contact: Ian Yaffe, Director, Office for Family Independence, DHHS, 207-592-1481

View Audit 349360 Questioned Costs: $1

Finding 538396 (2024-023)

Material Weakness 2024

State of Maine

ME

Questioned Costs Allowable Costs / Cost Principles Procurement, Suspension & Debarment § 200.303 § 200.403

Department: Health and Human Services Title: Internal control over SNAP deceased client cases needs improvement Questioned Costs: Known: ALN 10.551 $11,080 Likely: Undeterminable Status: Corrective action in progress Corrective Action: The MaineCare Program Manager will assign Death Match work to th...

Department: Health and Human Services Title: Internal control over SNAP deceased client cases needs improvement Questioned Costs: Known: ALN 10.551 $11,080 Likely: Undeterminable Status: Corrective action in progress Corrective Action: The MaineCare Program Manager will assign Death Match work to their team. The MaineCare Program Manager and their team will develop a Standard Operating Procedure for matches with vital statistics at Maine CDC. Completion Date: July 16, 2025 Agency Contact: Michael E. Downs, Senior Program Manager — SNAP, DHHS, 207-592- 4850

View Audit 349360 Questioned Costs: $1

Finding 538394 (2024-022)

Material Weakness 2024

State of Maine

ME

Questioned Costs Allowable Costs / Cost Principles Eligibility § 200.303 § 200.403

Department: Health and Human Services Title: Internal control over SNAP eligibility determinations and benefit calculations needs improvement Questioned Costs: Known: ALN 10.551 $12,335 Likely: Undeterminable Status: Corrective action in progress Corrective Action: The Department will automate the i...

Department: Health and Human Services Title: Internal control over SNAP eligibility determinations and benefit calculations needs improvement Questioned Costs: Known: ALN 10.551 $12,335 Likely: Undeterminable Status: Corrective action in progress Corrective Action: The Department will automate the issuance of the TANF funded resource guide at Application and Recertification (existing ticket AO-4039). (Business Technology Lead) The Department will keep SNAP applications from being opened in batch runs such as mid-month and end-of-month mass change. (Business Technology Lead) The Department will provide updated training/reminders about start and end dating records including income records to retain the information used for benefit runs. (Training Team and Senior SNAP Program Manager) Completion Date: August 31, 2025, first item, and September 30, 2025, second and third items Agency Contact: Michael E. Downs, Senior Program Manager — SNAP, DHHS, 207-592- 4850

View Audit 349360 Questioned Costs: $1

Finding 538356 (2024-008)

Significant Deficiency 2024

Hood College of Frederick, Maryland and Affiliates

MD

Questioned Costs Student Financial Aid Significant Deficiency

Identifying Number: Finding No. 2024-008 - Return of Title IV Funds Finding: We identified instances of unearned funds not returned to the Department of Education within the 45-day requirement. Corrective Actions Taken or Planned: Responsible Official: Nikki Bamonti, Interim Vice President for Enr...

Identifying Number: Finding No. 2024-008 - Return of Title IV Funds Finding: We identified instances of unearned funds not returned to the Department of Education within the 45-day requirement. Corrective Actions Taken or Planned: Responsible Official: Nikki Bamonti, Interim Vice President for Enrollment Management Anticipated Completion Date: March 21, 2025 View of Responsible Individuals: The occurrence of late Return to Title IV (R2T4) calculations was an anomaly due to staffing shortages within the Financial Aid Office. The College is committed to ensuring compliance with federal regulations and has implemented the following corrective actions to prevent future delays in the processing of R2T4 calculations. To strengthen internal controls and enhance the timely and accurate processing of R2T4 calculations, the College will undertake the following actions: 1. A Financial Aid staff member will complete R2T4 calculations for all Title IV-eligible students immediately upon notification of a student’s withdrawal. 2. The Financial Aid Director will be responsible for ensuring that all R2T4 calculations are completed accurately and within the deadlines established by the Department of Education. 3. The Financial Aid Director will conduct a monthly review of all R2T4 calculations performed on the Common Origination and Disbursement (COD) system to confirm the accuracy of the calculations and document the review. .

View Audit 349356 Questioned Costs: $1

Finding 538320 (2024-002)

Material Weakness 2024

The Phalen Leadership Academy - Indiana, Inc.

MA

Questioned Costs Special Tests & Provisions Subrecipient Monitoring § 200.303

2024-002 Special Tests and Provisions Recommendation: We recommend that for future construction contracts financed by federal education funds PLA verify that subcontractors comply with prevailing wage requirements. Explanation of disagreement with audit finding: There is no disagreement with the aud...

2024-002 Special Tests and Provisions Recommendation: We recommend that for future construction contracts financed by federal education funds PLA verify that subcontractors comply with prevailing wage requirements. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: PLA will train operations and business office staff on the compliance requirements under Davis-Bacon to ensure construction contracts are entered into with qualified contractors and obtain and retain appropriate certified payroll documentation during the construction period. Name(s) of the contact person(s) responsible for corrective action: Jeffrey Larkins, Director of Finance & Accounting; Javier Dimas, Vice-President of Operations; Martha Arellano, Procurement Manager and Buyer. Planned completion date for corrective action plan: January 30, 2025.

View Audit 349344 Questioned Costs: $1

Finding 538313 (2024-002)

Significant Deficiency 2024

Meals on Wheels of the Monterey Peninsula, Inc.

CA

Questioned Costs Allowable Costs / Cost Principles Subrecipient Monitoring § 200.302 § 200.303

Finding Number: 2024-002 Planned Corrective Action: Meals on Wheels of the Monterey Peninsula (MOWMP) will address the finding by taking the steps outlined below: 1. Expenditure of Federal Funds: Controller and/or bookkeeper will develop a process and procedures that will identify the amount, so...

Finding Number: 2024-002 Planned Corrective Action: Meals on Wheels of the Monterey Peninsula (MOWMP) will address the finding by taking the steps outlined below: 1. Expenditure of Federal Funds: Controller and/or bookkeeper will develop a process and procedures that will identify the amount, source, and expenditure of Federal funds for all Federal awards; that track and verify expenditures and income. Yearly reviews of the identification and tracking process will be conducted to ensure accuracy and relevance. 2. Federal Award Compliance: Controller and/or bookkeeper will develop a process and procedures to verify compliance with Federal statues, regulations, and the terms and conditions of each Federal award. Yearly reviews of the verification process will be conducted to ensure accuracy and relevance. Person Responsible for Corrective Action Plan: Leadership Oversight – Christine Winge, Executive Director Operational Oversight – Kay Smith, Controller Anticipated Date of Completion: MOWMP will complete the Corrective Action Plan by February 28, 2025 and these procedures will be in full effect for the fiscal year 2025.

View Audit 349343 Questioned Costs: $1

Finding 538307 (2024-001)

Significant Deficiency 2024

Meals on Wheels of the Monterey Peninsula, Inc.

CA

Questioned Costs Allowable Costs / Cost Principles Internal Control / Segregation of Duties § 200.403 § 200.405 § 200.430

Finding Number: 2024-001 Planned Corrective Action: Meals on Wheels of the Monterey Peninsula (MOWMP) will address the finding by taking the steps outlined below: 1. Expenditure Allocation: Controller and/or bookkeeper will allocate expenditures based on the number of meals prepared each month a...

Finding Number: 2024-001 Planned Corrective Action: Meals on Wheels of the Monterey Peninsula (MOWMP) will address the finding by taking the steps outlined below: 1. Expenditure Allocation: Controller and/or bookkeeper will allocate expenditures based on the number of meals prepared each month and the percentage of meals prepared for each program and funding. Yearly reviews of the allocation process will be conducted to ensure accuracy and relevance. Adjustments may be made based on changes in meal demand, program requirements, funding sources, or other factors affecting meal preparation costs. 2. Payroll Reporting: On a yearly basis, Managers and/or Directors will allocate the amount of time each employe works based on tasks performed and the amount of time worked on federal award activities. This allocation will be expressed as a percentage of total work hours performed. Periodic adjustments to time allocations may be necessary to reflect changes in project priorities, staffing levels, or other factors affecting workload distribution. Person Responsible for Corrective Action Plan: Leadership Oversight – Christine Winge, Executive Director Operational Oversight – Kay Smith, Controller Anticipated Date of Completion: MOWMP will complete the Corrective Action Plan by June 1, 2024 and these new policies and procedures will be in full effect throughout fiscal year 2025 and beyond. We will continue to review effectiveness and make changes as necessary.

View Audit 349343 Questioned Costs: $1

Finding 538271 (2024-001)

Material Weakness 2024

Anne Arundel Economic Development Corporation

MD

Questioned Costs Procurement, Suspension & Debarment Subrecipient Monitoring § 200.303 § 200.317 § 200.318 § 200.327

2024-001Coronavirus State and Local Recovery Relief Funds – Assistance Listing No. 21.027 Recommendation: We recommend that management develop and implement written procurement policies and implement controls and procedures to ensure it maintains documentation of suspension and debarments checks and...

2024-001Coronavirus State and Local Recovery Relief Funds – Assistance Listing No. 21.027 Recommendation: We recommend that management develop and implement written procurement policies and implement controls and procedures to ensure it maintains documentation of suspension and debarments checks and that the documentation is available for the audit. Explanation of disagreement with audit ﬁnding: There is no disagreement with the audit ﬁnding. Action taken in response to the ﬁnding: The Anne Arundel Economic Development Corporation implemented a Federal Grant Procurement Policy on March 18, 2025. The purpose of this Procurement Policy is to ensure all procurement activities conducted with funds from federal grants are executed in compliance with federal regulations, promote transparency, fairness, and competitiveness and provide the best value for the resources available. Name(s) of the contact person(s) responsible for corrective action: Lisa Grunder, Vice President of Administration Planned completion date for corrective action plan: March 24, 2025.

View Audit 349286 Questioned Costs: $1

Finding 538208 (2024-001)

Material Weakness 2024

Pike County Board of Education

GA

Questioned Costs Allowable Costs / Cost Principles School Nutrition Programs § 200.1 § 200.303 § 200.403 § 200.404

FA 2024-001 Strengthen Controls over Transfers Compliance Requirement: Activities Allowed or Unallowed Allowable Costs/Cost Principle Internal Control Impact: Material Weakness Compliance Impact: Material Noncompliance Federal Awarding Agency: U.S. Department of Agriculture Pass-Through Entity: G...

FA 2024-001 Strengthen Controls over Transfers Compliance Requirement: Activities Allowed or Unallowed Allowable Costs/Cost Principle Internal Control Impact: Material Weakness Compliance Impact: Material Noncompliance Federal Awarding Agency: U.S. Department of Agriculture Pass-Through Entity: Georgia Department of Education Assistance Listing Number and Title: 10.553 - School Breakfast Program 10.555 - National School Lunch Program COVID-19-10.555 - National School Lunch Program Federal Award Number: 245GA324N1199 (Year: 2024), 225GA324N1099 (Year: 2024) Questioned Costs: $803,845.92 Prior Year Finding: None Identified Description: The polices and procedures of the School District were insufficient to provide adequate internal controls over transfers of Child Nutrition Cluster funds. Corrective Action Plans: The School District will review current internal control procedures related to School Nutrition Fund transfers. Development and/or modification of current policies and procedures will be determined as needed to ensure that all expenditures, including transfers, are used for allowable purposes. In addition, the School District will implement a monitoring process to ensure that all expenditure activity is compliant with the School District's policies and procedures. Estimated Completion Date: June 30, 2025 Contact Person: Debbie Woerner, Finance Director/Asst Superintendent Telephone: 770-567-8489 ext. 1030 Email: woerned@pike.k12.ga.us

View Audit 349220 Questioned Costs: $1

Finding 538190 (2024-003)

Significant Deficiency 2024

Virginia Housing Development Authority

VA

Questioned Costs HUD Housing Programs Significant Deficiency

Housing Voucher Cluster – Assistance Listing No. 14.871/14.879/14.EHV – HQS Annual and Failed Inspections Recommendation: We recommend that the Authority reviews its processes over annual and failed inspections to ensure that they are completed timely and in compliance with HUD’s requirements. We r...

Housing Voucher Cluster – Assistance Listing No. 14.871/14.879/14.EHV – HQS Annual and Failed Inspections Recommendation: We recommend that the Authority reviews its processes over annual and failed inspections to ensure that they are completed timely and in compliance with HUD’s requirements. We recommend the Authority review their procedures to ensure they are following up that the tenants or landlords are making corrections timely or properly abating HAP for the unit until corrections are made. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: The Authority has taken proactive steps to enhance its inspection process to ensure compliance with HUD requirements. As part of these efforts, quality control plans have been implemented to ensure the timely and accurate completion of required inspections. In addition, the authority has taking action hiring a Housing Quality Officer to provide oversight of the inspection process (both previously shared with HUD). However, these plans were introduced after the audit review period and, therefore, were not applicable to the files reviewed by the audit team. To further address concerns regarding the timeliness and follow-up of annual and failed inspections, the Authority has contracted with a third-party vendor to manage all inspection activities. This partnership aims to improve the efficiency and effectiveness of inspections, ensuring that required corrections are made promptly. Full implementation of the third-party inspection services is scheduled to begin on April 1, 2025, with the Authority conducting ongoing oversight to ensure the vendor's adherence to HUD standards and internal quality control measures. Name(s) of the contact person(s) responsible for corrective action: Yilla Smith, Director, Housing Opportunity Programs and Initiatives Planned completion date for corrective action plan: May 1, 2025

View Audit 349205 Questioned Costs: $1

Finding 538187 (2024-002)

Significant Deficiency 2024

Virginia Housing Development Authority

VA

Questioned Costs HUD Housing Programs Significant Deficiency

Housing Voucher Cluster – Assistance Listing No. 14.871/14.879/14.EHV – Reasonable Rent Recommendation: We recommend that the Authority reviews its process over reasonable rent determination to ensure that it is performed timely (before the effective date of the rent payment) and that the approved ...

Housing Voucher Cluster – Assistance Listing No. 14.871/14.879/14.EHV – Reasonable Rent Recommendation: We recommend that the Authority reviews its process over reasonable rent determination to ensure that it is performed timely (before the effective date of the rent payment) and that the approved rent is properly carried forward to the HUD-50058 and HAP contract/HAP contract amendment. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: As noted above, as part of its comprehensive quality control process (previously submitted to HUD), Virginia Housing developed and implemented a detailed checklist system to guide each step of the annual and interim reexamination processes, including rent reasonableness documentation. This policy was introduced after the audit review; therefore, it was not applicable to the files reviewed by the audit team. In addition, during this fiscal year, Virginia Housing has been actively developing standardized documents and processes for all LHAs to promote consistency and compliance. This initiative includes the creation of job aids and reference materials such as quick-reference guides and flowcharts to support staff in following correct procedures. These resources will be designed to improve staff understanding, streamline processes, and reduce errors. Of the 100 files reviewed, four contained rent reasonableness determination documentation dated after the effective date. While this remains non-compliant, Virginia Housing views this as a positive indication of progress compared to previous audit findings. This improvement reflects the successful implementation of enhanced quality control measures, which have increased LHA file reviews and improved the correction of deficiencies. To further support staff development and ensure continued compliance, Virginia Housing will provide a series of on-site training sessions from March 2025 through November 2025. These sessions will cover key topics such as HCVP Specialist Training, HCVP/PH Rent Calculation, Fair Housing and Reasonable Accommodations, Customer Service and Engagement, and HCVP program management and oversight. Name(s) of the contact person(s) responsible for corrective action: Yilla Smith, Director, Housing Opportunity Programs and Initiatives Planned completion date for corrective action plan: December 31, 2025

View Audit 349205 Questioned Costs: $1

Finding 538184 (2024-001)

Significant Deficiency 2024

Virginia Housing Development Authority

VA

Questioned Costs HUD Housing Programs Eligibility

U.S. DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT Housing Voucher Cluster – Assistance Listing No. 14.871/14.879/14.EHV - Eligibility Recommendation: We recommend that the Authority reviews its internal controls and policies over HUD’s tenant eligibility requirements to ensure all documentation is ...

U.S. DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT Housing Voucher Cluster – Assistance Listing No. 14.871/14.879/14.EHV - Eligibility Recommendation: We recommend that the Authority reviews its internal controls and policies over HUD’s tenant eligibility requirements to ensure all documentation is maintained at the time of recertification. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: On June 30, 2024, Virginia Housing implemented a comprehensive quality control process (previously submitted to HUD) designed to improve oversight and ensure compliance with HUD requirements. This policy was introduced following the audit review; therefore, it was not applicable to the 60 files reviewed by the audit team. As part of this initiative, Virginia Housing adopted a detailed checklist system to guide the recertification process. This checklist outlines each step, establishes clear deadlines, and assigns responsibility to designated staff to promote accuracy, accountability, and timely completion. Virginia Housing is also committed to maintaining staff proficiency through comprehensive training initiatives. Annual training is provided in partnership with Nan McKay to ensure both Virginia Housing and Local Housing Authority (LHA) staff adhere to consistent income calculation practices. In addition, all LHA staff were required to complete specialized training in 2024 on HCVP Specialist duties, HQS Inspections, and HCVP Program Management. To further support staff development, Virginia Housing will conduct a series of on-site training sessions from March 2025 through November 2025. These sessions will cover key topics such as HCVP Specialist Training, HCVP/PH Rent Calculation, Fair Housing and Reasonable Accommodations, Customer Service and Engagement, and HCVP program management and oversight. In preparation for the Housing Opportunity Through Modernization Act (HOTMA) implementation, Virginia Housing has updated its Administrative Plan to align with the required changes, including those related to income and asset determinations. To ensure staff readiness, Virginia Housing’s Program Compliance Officers (PCOs) attended a two-day HOTMA Summit in February 2024, equipping them with the knowledge needed to effectively implement these changes. Of the 60 files tested one (1) did not have proper supporting documentation for expenses/deductions reported on the HUD-50058, Virginia Housing. The local agent has corrected this file as of March 21, 2025. Virginia Housing remains committed to maintaining compliance, improving internal controls, and ensuring all staff are equipped with the tools and knowledge necessary to uphold program integrity. Name(s) of the contact person(s) responsible for corrective action: Yilla Smith, Director, Housing Opportunity Programs and Initiatives Planned completion date for corrective action plan: December 31, 2025

View Audit 349205 Questioned Costs: $1

Finding 538166 (2024-003)

Significant Deficiency 2024

Nevada Community School District

IA

Questioned Costs School Nutrition Programs Allowable Costs / Cost Principles

Response and Corrective Action Plan: The District will implement a process to retain all documentation of charges to the program as outlined by the Iowa Department of Education and Office of Management and Budget.

View Audit 349198 Questioned Costs: $1

Finding 538154 (2024-001)

Significant Deficiency 2024

MacOn Housing Development Corporation Dba Oak Forest Apts 053-11218

NC

Questioned Costs HUD Housing Programs Procurement, Suspension & Debarment

Finding 2024-001: Comments on finding and recommendation: Statement of condition #2024-001: The Corporation's required deposit into the residual receipts account per the December 31, 2023 Computation of Surplus Cash, Distributions and Residual Receipts was deposited within 90 days of the fiscal year...

Finding 2024-001: Comments on finding and recommendation: Statement of condition #2024-001: The Corporation's required deposit into the residual receipts account per the December 31, 2023 Computation of Surplus Cash, Distributions and Residual Receipts was deposited within 90 days of the fiscal year end. Questioned costs: $666 Recommendation: Management should make all required residual receipts deposits per the annual Computation of Surplus Cash, Distributions and Residual Receipts within 90 days after the fiscal year end. Action(s) taken or planned on the finding: Agree. Management deposited $666 into the residual receipts fund on April 30, 2024. No further action is required.

View Audit 349171 Questioned Costs: $1

Finding 538144 (2024-105)

Significant Deficiency 2024

Navajo County

AZ

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

Concur. To help ensure the County’s policies and procedures include a process for reconciling budgeted payroll allocations to actual time spent on grant activities and provide sufficient documentation to support the actual time worked on the grant program, the County has revised its process for trac...

Concur. To help ensure the County’s policies and procedures include a process for reconciling budgeted payroll allocations to actual time spent on grant activities and provide sufficient documentation to support the actual time worked on the grant program, the County has revised its process for tracking the actual time spent on grant activities in order to provide sufficient documentation to support the actual time worked on the grant program and a reconciliation process to adjust these charges to reflect the actual effort expended on the grant projects. The recommended solutions include strengthening its comprehensive internal control policies and procedures to ensure that payroll costs charged to federal award are accurate, allowable, and properly supported. Additionally, the County will implement a process to reconcile the budgeted payroll allocation with actual time spent on grant activities. The County’s goal is to meet and complete recommendations by the end of fiscal year 2025-26.

View Audit 349149 Questioned Costs: $1

Corrective Action Plans

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