Corrective Action Plans

Finding 31321 (2022-003)

Material Weakness 2022

Community College District of Monroe County, Michigan

MI

Reporting Questioned Costs Material Weakness § 200.502 § 200.510

Condition: During the audit, significant adjustments were identified and proprosed (which were approved and posted by management) to adjust the College's general ledger to the appropriate balances. Planned Corrective Action: A detailed business procedure will be written and implemented that expre...

Condition: During the audit, significant adjustments were identified and proprosed (which were approved and posted by management) to adjust the College's general ledger to the appropriate balances. Planned Corrective Action: A detailed business procedure will be written and implemented that expressly lists how to handle year-end audit as it relates to both the Annual Financial Audit and teh Single Audit. The procedure will include processes for quarterly balancing and review, at a minimum. The procedure will include the creation of the annual SEFA document to be used by auditors in determining what programs the College has been awarded and what expenditures have been made. It will also include who is to handle all pieces of the audit and preparation in the absence of the Director of Financial Services. Contact person responsible for corrective actions: Dana Blair, Director of Financial Services Anticipated Completion Date: January 15, 2023

View Audit 30283

Finding 31314 (2022-010)

Material Weakness 2022

Lawton Independent School District No. 8

OK

Equipment & Real Property Management Questioned Costs Procurement, Suspension & Debarment

Lawton Public Schools procedures require tracking of items with an acquisition cost of $5,000 or higher. These one-time FCC-ECF funds included specific criteria requiring specific tracking of all purchases including hotspots. These criteria were not identified immediately by the district. The distri...

Lawton Public Schools procedures require tracking of items with an acquisition cost of $5,000 or higher. These one-time FCC-ECF funds included specific criteria requiring specific tracking of all purchases including hotspots. These criteria were not identified immediately by the district. The district has updated procedures to include the tracking of all of these items even though they do not have an acquisition cost of $5,000 or higher.

View Audit 35938 Questioned Costs: $1

Finding 31293 (2022-008)

Material Weakness 2022

Lawton Independent School District No. 8

OK

Questioned Costs Equipment & Real Property Management § 200.313

Lawton Public Schools failed to identify ?Construction in Progress? paid for with federal funds as federal. Procedures will be updated to ensure ?Construction in Progress? paid with federal funds is identified and recorded as federal immediately rather than at the completion of the construction. Whi...

Lawton Public Schools failed to identify ?Construction in Progress? paid for with federal funds as federal. Procedures will be updated to ensure ?Construction in Progress? paid with federal funds is identified and recorded as federal immediately rather than at the completion of the construction. While this finding is identified as a repeat finding from FY2021 (2021-006), the prior year was in reference to fixed assets while this year?s finding is in reference to ?Construction in Progress?.

View Audit 35938 Questioned Costs: $1

Finding 31292 (2022-006)

Material Weakness 2022

Lawton Independent School District No. 8

OK

Questioned Costs Reporting § 200.430

This is a repeat finding from FY2021 (2021-004). The finding was identified during our 2021 audit and corrected in March of 2022. It is important to note that, the United States Department of Education?s ?Frequently Asked Questions Elementary and Secondary School Emergency Relief Programs Governor?s...

This is a repeat finding from FY2021 (2021-004). The finding was identified during our 2021 audit and corrected in March of 2022. It is important to note that, the United States Department of Education?s ?Frequently Asked Questions Elementary and Secondary School Emergency Relief Programs Governor?s Emergency Education Relief Programs? dated May 26, 2021 stated on page 19 that ?An LEA must maintain time distribution records (sometimes called ?time and effort? reporting) only if an individual employee is splitting his or her time between activities that may be funded under ESSER or GEER and activities that are not allowable under the applicable program.? After the 2021 was complete and 2022 was significantly underway, the auditor indicated that time-and-effort was required and the auditor stated that SDE agreed. Therefore, the district began obtaining time-and-effort for employees paid with federal funds in March of 2022, regardless of SDE and USDE guidance stating otherwise.

View Audit 35938 Questioned Costs: $1

Finding 31291 (2022-007)

Material Weakness 2022

Lawton Independent School District No. 8

OK

Allowable Costs / Cost Principles Questioned Costs

Lawton Public Schools utilized the Oklahoma State Department of Education?s guidance and charged indirect costs for ?capital expenditures? and received reimbursement for those direct costs. The auditor has identified $49,003 as unallowable. Lawton Public Schools will reimburse the State Department ...

Lawton Public Schools utilized the Oklahoma State Department of Education?s guidance and charged indirect costs for ?capital expenditures? and received reimbursement for those direct costs. The auditor has identified $49,003 as unallowable. Lawton Public Schools will reimburse the State Department of Education for the total of these unallowable costs regardless of SDE?s guidance stating otherwise.

View Audit 35938 Questioned Costs: $1

Finding 31290 (2022-005)

Material Weakness 2022

Lawton Independent School District No. 8

OK

Procurement, Suspension & Debarment Questioned Costs § 200.403

Certain one-time COVID funds required several departments to make purchases. The lack of specific and clear guidance as to which department was directly responsible resulted in questioned expenditures. District Financial procurement procedures have been updated and implemented that require all feder...

Certain one-time COVID funds required several departments to make purchases. The lack of specific and clear guidance as to which department was directly responsible resulted in questioned expenditures. District Financial procurement procedures have been updated and implemented that require all federal expenditures to be approved through Lawton Public Schools? Federal Programs office. In addition, all supporting invoices for said expenditures must be provided to and approved by Lawton Public Schools? Federal Programs office. Lawton Public Schools will reimburse the State Department of Education for the total of these questioned costs.

View Audit 35938 Questioned Costs: $1

Finding 31276 (2022-001)

Significant Deficiency 2022

Volunteers of America Western Washington and Subsidiary

WA

Questioned Costs Eligibility Internal Control / Segregation of Duties

See Corrective Action Plan for chart/table

View Audit 34201

Finding 31271 (2022-002)

Significant Deficiency 2022

Volunteers of America Western Washington and Subsidiary

WA

Questioned Costs Eligibility Internal Control / Segregation of Duties

See Corrective Action Plan for chart/table

View Audit 34201

Finding 31268 (2022-003)

Material Weakness 2022

North Park University

IL

Reporting Questioned Costs Student Financial Aid

Enrollment Reporting to National Student Loan Data System (NSLDS) Planned Corrective Action: To date all past due enrollment and graduate reports have been filed with the National Student Clearinghouse (NSC). The Registrar?s Office is currently clearing any and all error resolution reports that are...

Enrollment Reporting to National Student Loan Data System (NSLDS) Planned Corrective Action: To date all past due enrollment and graduate reports have been filed with the National Student Clearinghouse (NSC). The Registrar?s Office is currently clearing any and all error resolution reports that are generated for each submission. This week the May 2022 graduates error report was cleared. This leaves the summer and fall terms of 2022 to be corrected. Those should be resolved no later than 5/15/2023. The Registrar?s Office reported the spring 2023 reports and are back on a transmission schedule. Person Responsible for Corrective Action Plan: Ann Marie Vickery ? Interim Registrar Anticipated Date of Completion: 5/15/2023

View Audit 32190

Finding 31267 (2022-004)

Significant Deficiency 2022

Ravenwood Mental Health Center, INC

OH

Questioned Costs Cash Management Significant Deficiency § 200.516

Finding 2022-004: Allowable Costs - Significant Deficiency in Internal Control over Allowable Costs/Cost principles Official's Response and Corrective Action Plan: Prior accounting staff was gone by December 2021. New financial staff was hired and in place in the 4th quarter of April 2022. We made...

Finding 2022-004: Allowable Costs - Significant Deficiency in Internal Control over Allowable Costs/Cost principles Official's Response and Corrective Action Plan: Prior accounting staff was gone by December 2021. New financial staff was hired and in place in the 4th quarter of April 2022. We made changes in the accounting department during the past year to improve the overall functionality. Since we tripled our amount of grants, it was necessary to increase the accounting staff to maintain them, as well as increase overall efficiencies. We now have a staff of 4 accountants, as well as a new CFO with nonprofit/grant experience. The late filling of vacant positions delayed some of our internal processes during their training. We added monthly meetings with internal staff to make sure we have a good communication flow and appropriate documentation for new and existing grants which are monitored monthly Anticipated Completion Date: June 30, 2023

View Audit 31455 Questioned Costs: $1

Finding 31264 (2022-003)

Significant Deficiency 2022

Stockton Port District

CA

Questioned Costs Reporting Significant Deficiency § 200.303

Finding 2022-003 Federal Agency: U.S. Department of Homeland Security Federal Financial Assistance Listing: 97.056 Applicable Federal Award Number: EMW-2019-PU-00447 & EMW-2020-PU-00288 Program Name: Port Security Grants Program Compliance Requirement: Reporting Type of Finding: Significant Deficien...

Finding 2022-003 Federal Agency: U.S. Department of Homeland Security Federal Financial Assistance Listing: 97.056 Applicable Federal Award Number: EMW-2019-PU-00447 & EMW-2020-PU-00288 Program Name: Port Security Grants Program Compliance Requirement: Reporting Type of Finding: Significant Deficiency, Instance of Non-compliance Views of Responsible Officials: We concur. Corrective Action Plan: Update reporting procedures to include documentation of the individual that prepared the semi-annual performance reports Responsible Individual(s): Steve Larson, Grants Manager Jeff Wingfield, Deputy Port Director, Regulatory & Public Affairs Anticipated Completion Date: Procedures to be updated by March 31, 2023.

View Audit 30245

Finding 31262 (2022-002)

Significant Deficiency 2022

Horizon House, Inc.

IN

Questioned Costs Subrecipient Monitoring

Finding 2022-02 Timeliness of Subrecipient Payments Condition: During our audit, it was determined that the auditee failed to adhere to the 30-day payment requirement for a specific subrecipient. We reviewed the payment request documentation and verified that it was complete and accurate. However,...

Finding 2022-02 Timeliness of Subrecipient Payments Condition: During our audit, it was determined that the auditee failed to adhere to the 30-day payment requirement for a specific subrecipient. We reviewed the payment request documentation and verified that it was complete and accurate. However, the auditee did not process the payment within the stipulated timeframe. Corrective Actions Taken or Planned: During the year ended December 31, 2022, management began reconciling federal grants monthly, ensuring revenues and expenses for the month and year to date net to zero. In conjunction with this process, management reviews accounts payable schedules on a monthly basis for outstanding sub-recipient invoices due and invoices due are paid prior to the 30-day payment requirement.

View Audit 28321 Questioned Costs: $1

Finding 31240 (2022-002)

Significant Deficiency 2022

Freshwater Education District No. 6004

MN

Allowable Costs / Cost Principles Questioned Costs

2022-002 FINDING Contact Person ? Jordan Anderson, Business Manager Corrective Action Plan ? The District will review their payroll procedures to ensure employees are paid the correct amount. Completion Date ? December 27, 2022

View Audit 32539

Finding 31239 (2022-003)

None 2022

Southside Comm Housing CORP - Southside Manor

IL

Questioned Costs HUD Housing Programs

Views of Responsible Officials and Planned Corrective Actions: There is no disagreement with the audit finding. Management made an additional deposit to make up for the deficit in August 2022.

View Audit 32324

Finding 31234 (2022-001)

Material Weakness 2022

Benton Harbor Area Schools

MI

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

Department: Grants Condition: The District did not maintain adequate support documentation to substantiate salaries and wages charged to the Title I, Part A grant. Corrective Action: At the start of the 2022-23 school year BHAS implemented a new process to monitor staff salaries funded using title...

Department: Grants Condition: The District did not maintain adequate support documentation to substantiate salaries and wages charged to the Title I, Part A grant. Corrective Action: At the start of the 2022-23 school year BHAS implemented a new process to monitor staff salaries funded using title funds. An online platform was created for staff to fill out and submit ?Time and Effort? logs to their building principals for signature All staff funded in this manner were required to attend a 30-minute PD about how to fill out their logs each week and how to submit online to their principals. Once principals reviewed logs, they upload them to a shared drive folder created by building, month, and weekending. Grant Coordinator and Grant Account then reviews folders on a monthly basis and if individual logs are missing a notice is sent to that building principal and individual to complete and submit missing ?Time and Effort? sheet. Person(s) Responsible for Executing Corrective Action: ? Grant Coordinator ? Grant Accountant ? Building Principals ? Funded Staff Member Anticipated Completion Date: 12/31/22

View Audit 30731 Questioned Costs: $1

Finding 31233 (2022-001)

Significant Deficiency 2022

Valley Crossroads, Inc.

UT

HUD Housing Programs Questioned Costs Procurement, Suspension & Debarment

1. Finding 2022-001 a. Comments on the Finding and Each Recommendation: Management agrees with the finding. b. Action(s) Taken or Planned on the Finding The Corporation will take the following steps: (1) Develop a plan to address staffing and turnover issues: we will work with the HR department to d...

1. Finding 2022-001 a. Comments on the Finding and Each Recommendation: Management agrees with the finding. b. Action(s) Taken or Planned on the Finding The Corporation will take the following steps: (1) Develop a plan to address staffing and turnover issues: we will work with the HR department to develop a plan to address staffing and turnover issues. This may include conducting a salary and benefits review to ensure that we are competitive in the market, providing opportunities for professional development and growth, and creating a positive work environment; (2) Prioritize the completion of annual recertifications: we will work with the team to prioritize the completion of annual recertifications. This will involve allocating additional resources, if necessary, and bringing in outside help to complete the recertifications on time; (3) Develop a monitoring plan: we will develop a monitoring plan to ensure that annual reexaminations are completed on time. This will include regular checks of tenant files and random sampling to ensure compliance with the regulations; (4) Train staff: we will ensure that all staff involved in the annual reexamination process are trained on the importance of completing them on time, the potential consequences of failing to do so, and the regulations and policies related to annual reexaminations; and (5) Implement a tracking system: we will implement a tracking system to ensure that annual reexaminations are completed on time. The system will include reminders for staff and tenants and a process for tracking the progress of each recertification.

View Audit 36537

Finding 31232 (2022-002)

Significant Deficiency 2022

Central Peninsula General Hospital, Inc.

AK

Allowable Costs / Cost Principles Questioned Costs Significant Deficiency

Finding 2022-002: Allowable Costs- Noncompliance and Significant Deficiency in Internal Control over Compliance. Program : Emergency Grants to Address Mental and Substance Use Disorders During Covid -19, Assistance Listing Number: 93.665. Planned Corrective Action Plan : To eliminate human error...

Finding 2022-002: Allowable Costs- Noncompliance and Significant Deficiency in Internal Control over Compliance. Program : Emergency Grants to Address Mental and Substance Use Disorders During Covid -19, Assistance Listing Number: 93.665. Planned Corrective Action Plan : To eliminate human error due to manual keying, we are now running a canned report out of the payroll system which displays employee name, employee number, and current pay rate in an Excel file . This report is emailed to the Behavioral Health supervisor who prepares the payroll portion for each grant. Completion Date : Already implemented. Contact: Nicki McKinney, Controller (nmckinney@cpgh .org)

View Audit 34916

Finding 31215 (2022-002)

None 2022

Town of Winchendon, Massachusetts

MA

Period of Performance Questioned Costs Subrecipient Monitoring § 200.309

Condition: Invoices and payroll were charged for services performed prior to the approval dates by the pass-through agency. Corrective Action Planned: Town Accountant and School central office staff have worked together to correctly monitor award approval dates to ensure that goods and services char...

Condition: Invoices and payroll were charged for services performed prior to the approval dates by the pass-through agency. Corrective Action Planned: Town Accountant and School central office staff have worked together to correctly monitor award approval dates to ensure that goods and services charged to federal grants occur during the period of performance. Anticipated Completion Date: 2022-2023 school year Contact: Thad King, Superintendent of Schools

View Audit 33701 Questioned Costs: $1

Finding 31214 (2022-001)

None 2022

Town of Winchendon, Massachusetts

MA

Questioned Costs Subrecipient Monitoring Period of Performance § 200.344

Condition: Final financial reports were not filed in a timely manner for a Special Education Cluster grant. Corrective Action Planned: To date all grants required to be closed out have been completed. Anticipated Completion Date: 2022-2023 school year Contact: Thad King, Superintendent of Schools

View Audit 33701

Finding 31213 (2022-002)

None 2022

Nauset Regional School District

MA

Questioned Costs Reporting Subrecipient Monitoring

The District will enhance the documentation surrounding aspects of Grant compliance and formalize the documentation for approval by the School Committee. The District will adhere to the recommendation that all documentation related to the audit, including preparation of the SEFA, is prepared in a ti...

The District will enhance the documentation surrounding aspects of Grant compliance and formalize the documentation for approval by the School Committee. The District will adhere to the recommendation that all documentation related to the audit, including preparation of the SEFA, is prepared in a timely manner in order to ensure required deadlines are met.

View Audit 31438 Questioned Costs: $1

Finding 31212 (2022-001)

Significant Deficiency 2022

Nauset Regional School District

MA

Allowable Costs / Cost Principles Questioned Costs Subrecipient Monitoring

The District will enhance the documentation surrounding aspects of Grant compliance and formalize the documentation for approval by the School Committee. The District will adhere to ensure that all documentation for "after-the-fact" time and effort certifications are obtained and monitored on file i...

The District will enhance the documentation surrounding aspects of Grant compliance and formalize the documentation for approval by the School Committee. The District will adhere to ensure that all documentation for "after-the-fact" time and effort certifications are obtained and monitored on file in a timely manner.

View Audit 31438 Questioned Costs: $1

Finding 31209 (2022-001)

Significant Deficiency 2022

Puerto Rico Department of Justice

PR

Questioned Costs Allowable Costs / Cost Principles Reporting

Below we break down the Action Plan to address finding 2022-001. We must begin our comments by informing that, on December 28, 2022, the PRDOJ formalized a professional services contract number 2023-000067 with the company Aquino, De Cordova, Alfaro & Co., LLP (Independent Auditors) to carry out th...

Below we break down the Action Plan to address finding 2022-001. We must begin our comments by informing that, on December 28, 2022, the PRDOJ formalized a professional services contract number 2023-000067 with the company Aquino, De Cordova, Alfaro & Co., LLP (Independent Auditors) to carry out the Agency financial audit process for fiscal year 2021-2022. The clause number six of the contract required that the Independent Auditors submitted on or before March 31, 2023, the final Single Audit Report required as part of the audit process. However, the PRDOJ was obliged to extend the term of the contract because the Independent Auditors could not complete the contracted services and render the Single Audit Report within the stipulated term. The Independent Auditors indicated that the delay in the delivery of the Single Audit Report was since the audit process could not be started until the contract was signed and that the information was not received in a timely manner. Despite the reasons stated by the Independent Auditors, the reality is that the Independent Auditors undertook the contractual clauses agreed in the contract and between them, the agreement to submit the final Single Audit on or before March 31, 2023. Pursuant to the provisions of contract number 2023-000067, the administration of the PRDOJ was under the understanding that the Independent Auditors would comply with the delivery term of the SingleAudit Report within the agreed term. In this way, we ensured that we hired a firm that complied with the term to submit the Single Audit Report to the Federal Audit Clearinghouse provided in federal statute 45 CFR sec. 75.512. However, it is not until the end of the month of March that we become aware that the Independent Auditors could not meet the deadline of submitting the Single Audit Report. As a result of this, the PRDOJ had to extend the contract so that the Independent Auditors could complete the Single Audit Report, take internal measures to alleviate and address the delay, and submit the PRDOJ's Single Audit Report for fiscal year 2021 to the Federal Audit Clearinghouse. Under the contextual framework outlined above, we inform our corrective action plan to finding number 2022-01 presented in the Single Audit Report. First, the PRDOJ requested in June several proposals from Independent Auditors to carry out the Agency?s financial audit process for the 2022-2023 fiscal year. Consequently, a firm of Independent Auditors was selected, and we requested all the information and documentation required at the federal and state level to contract with the government. The contract was drafted in July and will soon be signed. In addition, the new contract provides that the Independent Auditor must submit the Single Audit Report to the PRDOJ on or before March 1, 2024. In this way, the PRDOJ will have the Single Audit Report in advance and, in this way, ensure that the document is submitted before March 31, 2024, to the Federal Audit Clearinghouse.This initiative goes hand in hand with the elaboration of a rigorous and meticulous work plan between the PRDOJ and the Independent Auditors with the delivery dates and exchange of information for the preparation of the Single Audit Report. The work plan provides that the audit process will begin as soon as the contract is signed in early August. For its part, the PRDOJ must submit all the required information to the Independent Auditors before the end of December. ? Regarding the internal administrative aspects of the PRDOJ to comply with this corrective action plan, we inform that we have designated an employee of the Agency to ensure that all our dependencies and their directors submit all the information required to the Independent Auditors on time on the stipulated dates. This includes, but is not limited to, all information in the preliminary PBC and any additional information that is required by the Independent Auditors. ? Likewise, this PRDOJ employee will serve as a link between the firm of Independent Auditors and the agencies of the agency that request information and documentation. Lastly, the PRDOJ official will ensure that the Independent Auditors firm submits the Single Audit Report to the Federal Audit Clearinghouse before March 31, 2024.This is a comprehensive corrective action plan that we have prepared in coordination with all the dependencies of the PRDOJ to guarantee faithful compliance with federal statutes.

View Audit 31223

Finding 31198 (2022-005)

Material Weakness 2022

Housing Authority of Kansas City, Missouri

MO

Questioned Costs Special Tests & Provisions Material Weakness

Finding 2022 ? 005 Federal Agency: U.S. Department of Housing and Urban Development Federal Program Name: Housing Voucher Cluster Assistance Listing Number: 14.871/14.879 Federal Award Identification Number and Year: MO002VO - 2022 Award Period: January 1, 2022 ? December 31, 2022 Compliance Require...

Finding 2022 ? 005 Federal Agency: U.S. Department of Housing and Urban Development Federal Program Name: Housing Voucher Cluster Assistance Listing Number: 14.871/14.879 Federal Award Identification Number and Year: MO002VO - 2022 Award Period: January 1, 2022 ? December 31, 2022 Compliance Requirement: Special Tests and Provisions ? Housing Quality Standards (HQS) Enforcement Type of Finding: Material Weakness in Internal Control over Compliance Material Noncompliance Condition: The Authority did not require HQS deficiencies to be corrected within the required timeframe. The Authority did not abate units that failed to correct HQS deficiencies within the required timeframe. Exceptions were noted in 9 out of 40 failed inspections: The Authority did not require the owner to correct HQS deficiencies within the required timeframe for 2 out of 40 failed inspections. The Authority did not properly abate HAP for 7 out of 40 failed inspections. Cause: The Authority did not reinspect or abate units timely. Auditors Recommendation: Recommend the Authority implements controls to ensure that the Authority requires HQS deficiencies to be corrected within the timeframe set forth by 24 CFR section 982.404(a). Recommend the Authority implements controls to ensure abatement is timely for units that do not correct the cited HQS deficiencies within the required timeframe. Response to Finding 2022-005 The Authority generally concurs with the auditor?s findings and recommendations. The 2022 Audit included the review of 40 files tested for Housing Quality Standards (HQS) Enforcement requirements. Exceptions were noted in nine instances: The Authority did not require the owner to correct HQS deficiencies within the required timeframe for 2 out of 40 failed inspections. The Authority did not properly abate HAP for 7 out of 40 failed inspections. Action Taken: A Corrective Action Plan has been developed to ensure HQS Inspection enforcement is applied at the time of deficiency and if not corrected proper abatement notice being sent out to Landlord and tenant. Implementation began on August 1, 2023. To provide consistency, increase staff knowledge and reduce errors, training will be held immediately and then annually thereafter. In addition, we will increase quality control to monitor letters being sent out to landlords and tenants for the deficiencies that occurred in the unit. The process that will be in place is as follows: 1. Letter sent out to landlord and tenant notifying them the deficiencies in the unit. A time frame of 30 days will be set for the repairs to be made with a re-inspection date already set to verify repairs. 2. If the repairs are not made at that time, an abatement a letter will be sent out to the landlord and tenant notifying them that the HAP payment will stop the first day of the following month which would be a minimum of 30 days. At this time a letter will be sent to the tenant notifying them that a voucher will be issued to them to move to a more suitable unit. 3. If the repairs are not made at the end of the 30-day abatement period the HAP contract will terminate along with the HAP payment. A termination of HAP letter will be sent out to the landlord and tenant for the current unit that the tenant is living in. To monitor the events taking place above, a report will be submitted twice a month before our check run by the supervisor and manager of the inspection department to the HCV Director and Compliance department to monitor the HQS and abatement process. This quality insurance will ensure that all abatements and HQS deficiencies are being processed according to compliance. Name(s) of the contact person(s) responsible for corrective action: Edwin Lowndes Executive Director Planned completion date for corrective action plan: March 1, 2024.

View Audit 28025 Questioned Costs: $1

Finding 31197 (2022-004)

Significant Deficiency 2022

Housing Authority of Kansas City, Missouri

MO

Questioned Costs Special Tests & Provisions HUD Housing Programs

Finding 2022 ? 004 Federal Agency: U.S. Department of Housing and Urban Development Federal Program Name: Housing Voucher Cluster Assistance Listing Number: 14.871/14.879 Federal Award Identification Number and Year: MO002VO ? 2022 Award Period: January 1, 2022 ? December 31, 2022 Compliance Require...

Finding 2022 ? 004 Federal Agency: U.S. Department of Housing and Urban Development Federal Program Name: Housing Voucher Cluster Assistance Listing Number: 14.871/14.879 Federal Award Identification Number and Year: MO002VO ? 2022 Award Period: January 1, 2022 ? December 31, 2022 Compliance Requirement: Special Tests and Provisions ? Reasonable Rent Type of Finding: ? Significant Deficiency in Internal Control over Compliance ? Other Matters Condition: The Authority did not perform rent reasonableness procedures in accordance with program compliance requirements. Exceptions noted in 2 out of 80 files tested for reasonable rent requirements: Documentation for the determination of rent was not maintained for 1 sample. The contract rent did not agree to the rent determined reasonable for 1 sample. Cause: The Authority did not maintain documentation utilized to determine rent reasonableness. Auditors Recommendation: Recommend that the Authority implements controls to ensure that documentation is maintained in accordance with rent reasonableness requirements. Response to Finding 2022-004 The Authority generally concurs with the auditor?s findings and recommendations. The 2022 Audit included the review of 80 files tested for reasonable rent requirements. Exceptions were noted in two instances, documentation for the determination of rent was not maintained for 1 sample; and the contract rent did not agree to the rent determined reasonable for 1 sample. Action Taken: A Corrective Action Plan has been developed to ensure that documentation is maintained in accordance with rent reasonableness requirements. Implementation began on August 1, 2023. To provide consistency, increase staff knowledge and reduce errors, training will be held immediately and then annually thereafter. In addition, HAKC will increase quality control file reviews and conduct such reviews on a more frequent basis to identify errors sooner and address the cause of errors quickly to prevent systemic errors. Errors will be identified by error type and the person who made the error. Patterns of errors will be monitored, and additional training provided for similar error types that are frequently repeated and persons who are identified as frequently making errors. Quality reviews will be conducted for all files to ensure that all required documents are in the files. It is anticipated it will take one year to complete the initial file review. After the initial review files will be selected randomly and reviewed according to an established quality control schedule. Each team member will be responsible to collect missing documents identified when completing an annual recertification, interim recertification or change of unit. Name of the contact person responsible for corrective action: Edwin Lowndes Executive Director Planned completion date for corrective action plan: March 1, 2024.

View Audit 28025

Finding 31196 (2022-003)

Significant Deficiency 2022

Housing Authority of Kansas City, Missouri

MO

HUD Housing Programs Questioned Costs Special Tests & Provisions

Finding 2022 ? 003 Federal Agency: U.S. Department of Housing and Urban Development Federal Program Name: Housing Voucher Cluster Assistance Listing Number: 14.871/14.879 Federal Award Identification Number and Year: MO002VO - 2022 Award Period: January 1, 2022 ? December 31, 2022 Compliance Require...

Finding 2022 ? 003 Federal Agency: U.S. Department of Housing and Urban Development Federal Program Name: Housing Voucher Cluster Assistance Listing Number: 14.871/14.879 Federal Award Identification Number and Year: MO002VO - 2022 Award Period: January 1, 2022 ? December 31, 2022 Compliance Requirement: Special Tests and Provisions ? Housing Assistance Payment (HAP) Type of Finding: ? Significant Deficiency in Internal Control over Compliance ? Other Matters- Condition: The Authority did not ensure the monthly HAP payment agreed between the HUD- 50058, HAP contract, and HAP register in accordance with program compliance requirements. Exceptions were noted in 2 out of 40 files tested for Housing Assistance Payments. In both instances, the HAP register did not agree to the HUD-50058 and HAP contract. Cause: The Authority did not identify variances between the HUD-50058, HAP contract, and HAP register. Auditors Recommendation: Recommend that the Authority implements controls to ensure the HAP paid agrees to the HUD-50058 and HAP contract. Response to Finding 2022-003 The Authority generally concurs with the auditor?s findings and recommendations. The 2022 Audit included the review of 40 files tested for Housing Assistance Payments. In two instances, the HAP register did not agree to the HUD-50058 and HAP contract. Action Taken: A Corrective Action Plan has been developed to ensure the HAP register agrees with the HUD 50058 and HAP contract. Implementation began on August 1, 2023. To provide consistency for the HUD 50058 HAKC will increase staff knowledge and reduce errors through training. This will be held immediately and then annually thereafter. In addition, we will increase quality control file reviews and conduct such reviews on a more frequent basis to identify errors sooner and address the cause of errors quickly to prevent systemic errors. Errors will be identified by error type and the person who made the error. Patterns of errors will be monitored, and additional training provided for similar error types that are frequently repeated and persons who are identified as frequently making errors. In regard to the HAP contract, going forward any new HAP contracts will be reviewed by the supervisor of the department before the HAP is enforced. The supervisor will sign the HAP contract if no errors are found. With this quality control in effect, the HAP contract will match the HAP register. Quality reviews will also be conducted by compliance to check the HAP contracts to make sure they comply. Name of the contact person responsible for corrective action: Edwin Lowndes Executive Director Planned completion date for corrective action plan: March 1, 2024.

View Audit 28025

Corrective Action Plans

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