Corrective Action Plans

Finding 569860 (2024-001)

Significant Deficiency 2024

VT

Allowable Costs / Cost Principles Reporting

Management disagrees with this finding because the executive director does monitor actual employee time to grants during the normal course of employee and time sheet reviews. However, she will set up a recurring meeting with the Finance Director and each staff member going forward to review the actu...

Management disagrees with this finding because the executive director does monitor actual employee time to grants during the normal course of employee and time sheet reviews. However, she will set up a recurring meeting with the Finance Director and each staff member going forward to review the actual grant allocations. She will also try to note on time sheets that the percentage of time spent on each grant has been reviewed and approved or addressed with staff.

View Audit 361127

Finding 569834 (2024-001)

Significant Deficiency 2024

California Institute of Environmental Studies

CA

Reporting Significant Deficiency

1. Federal grant agreements will be reviewed at inception and during year-end close to assess the presence of noncash assistance. 2. Coordination between program and finance staff will be enhanced to improve federal award documentation and reporting. 3. A SEFA checklist has been adopted to guide yea...

1. Federal grant agreements will be reviewed at inception and during year-end close to assess the presence of noncash assistance. 2. Coordination between program and finance staff will be enhanced to improve federal award documentation and reporting. 3. A SEFA checklist has been adopted to guide year-end reporting and audit requirement determination. 4. Training will be provided to accounting and grants management staff on Uniform Guidance requirements, especially 2 CFR 200.502 and 200.510.

View Audit 361104

Finding 569830 (2024-004)

None 2024

Jacksonville Housing Authority

FL

Questioned Costs Reporting

The Jacksonville Housing Authority’s (JHA) Housing Choice Voucher (HCV) program is the largest rental assistance program in the City of Jacksonville. Through the Annual Contributions Contract (ACC), the program receives over $90M from the United States Department of Housing and Urban Development (HU...

The Jacksonville Housing Authority’s (JHA) Housing Choice Voucher (HCV) program is the largest rental assistance program in the City of Jacksonville. Through the Annual Contributions Contract (ACC), the program receives over $90M from the United States Department of Housing and Urban Development (HUD) and assist over 7,700 families each year. The ACC requires JHA to comply with federal regulations and HUD guidelines, as amended from time to time. Audit Findings Berman Hopkins Wright & LaHam, CPAs and Associates, LLP conducted the recent FY2024 JHA Audit (Period: October 1, 2023 – September 30, 2024) and identified continued material weakness findings within the JHA Housing Choice Voucher (HCV) program including but not limited to: Material Weaknesses in Internal Controls, Material Weaknesses in Non-Compliance and Material Weaknesses in the Housing Quality Standards (HQS) Inspection process. Berman Hopkins Wright & LaHam, CPAs and Associates, LLP previously conducted JHA’s FY2023 audit (Period: October 1, 2022 – September 30, 2023) and FY2022 audit (Period: October 1, 2021 – September 30, 2022) which disclosed consecutive historical material weaknesses in JHAs internal controls and noncompliance of the Housing Choice Voucher (HCV) program. Under new CEO leadership at JHA, a request to the JHA Board of Commissioners is in place for a vote on Friday, June 27, 2025, to authorize the following action of Nan McKay & Associates to Administer, Manage and Operate the JHA Housing Choice Voucher Program for an effective date of Monday July 7, 2025. This will also include HCV HQS inspections. Pending Resolution: AUTHORIZE THE AWARD OF THE MIAMI-DADE HOUSING & COMMUNITY DEVELOPMENT PIGGYBACK CONTRACT IN THE NOT-TO-EXCEED AMOUNT OF 72% OF THE ADMINISTRATIVE FEES CONCURRENT WITH THE EXISTING CONTRACT TERMS TO NAM MCKAY AND ASSOCIATES, FOR HOUSING CHOICE VOUCHER MANAGEMENT AND OPERATIONS. As evidenced by the increase in overall HCV audit findings, loss of federal revenues, inability to correctly serve existing and future HCV program participants, noncompliance on both a local and federal level for section 8 program funding for the administration and operations of the HCV program, immediate action is requested to authorize Nan McKay & Associates to administer and operate JHA’s HCV program. Combined with a plethora of likely compliance issues and deteriorated financial condition, these concerns pose a significant threat to both the immediate and long-term success of Jacksonville’s HCV program. Responsible: Nan McKay & Associates POINT OF CONTACT: Steven Rosario, Sr. Director EMAIL: srosario@nanmckay.com JHA POC: Roslyn Phillips, Interim COO EMAIL: RPHILLIPS@JAXHA.ORG

View Audit 361093

Finding 569811 (2024-040)

Material Weakness 2024

State of Alaska

AK

Subrecipient Monitoring Material Weakness Reporting § 200.303

Finding: 2024-040 - The audit identified multiple errors in FY 24 Disaster Grants program subawards key data elements in the Federal Funding Accountability and Transparency Act Subaward Reporting System (FSRS). Additionally, the names and total compensation of each of the subrecipient’s five most hi...

Finding: 2024-040 - The audit identified multiple errors in FY 24 Disaster Grants program subawards key data elements in the Federal Funding Accountability and Transparency Act Subaward Reporting System (FSRS). Additionally, the names and total compensation of each of the subrecipient’s five most highly compensated executives, if applicable, were not communicated to DMVA’s Division ofAdministrative Services staff for data entry into FSRS. Questioned Costs: None Assistance Listing Number: 97.036 Assistance Listing Title: Disaster Grants Public Assistance (Presidentially Declared Disasters) Views of Responsible Officials (state whether your agency agrees or disagrees with the finding; if you disagree, briefly explain why): DMVA concurs with the finding. Corrective Action (corrective action planned): Review and Revision of OAD Forms: The Finance Officer will conduct a thorough review of OAD forms and work with the Homeland Security Director to confirm that reporting elements comply with the Federal Funding Accountability and Transparency Act (FFATA). Revision of Internal Procedures: The Finance Officer will work with the Homeland Security Director to review and identify where internal procedures require updated documentation on subrecipient executives for the collection and communication to the Division of Administrative Services staff in compliance with 2 CFR 200.303(a) and Title 2 CFR 170. Enhanced Data Entry Oversight: Although FSRS does not allow supervisor certification before submission, the Finance Officer will validate internal procedures are in place to ensure data entry oversight has been completed. This will provide an additional layer of review and verification for the accuracy and completeness of subaward data. Completion Date (list anticipated completion date): October 31, 2025 Agency Contact (name of person responsible for corrective action): Pamela Wiederspohn Bryan Fisher

View Audit 361087

Finding 569810 (2024-039)

Material Weakness 2024

State of Alaska

AK

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

Finding: 2024-039 - Four of 12 randomly selected FY 24 Disaster Grants SF-425 reports tested had incorrect matching amounts, one of which also had an incorrect recipient share of expenditures. Questioned Costs: None Assistance Listing Number: 97.036 Assistance Listing Title: Disaster Grants - Pub...

Finding: 2024-039 - Four of 12 randomly selected FY 24 Disaster Grants SF-425 reports tested had incorrect matching amounts, one of which also had an incorrect recipient share of expenditures. Questioned Costs: None Assistance Listing Number: 97.036 Assistance Listing Title: Disaster Grants - Public Assistance (Presidentially Declared Disasters) Views of Responsible Officials (state whether your agency agrees or disagrees with the finding; if you disagree, briefly explain why): DMVA concurs with the finding. Corrective Action (corrective action planned): Documentation of Internal Procedures: The Finance Officer will review existing internal procedures to identify areas of improvement, to include the certification by an Administrative Services supervisor and documented concurrence that Homeland Security has reviewed the accuracy of the reported amounts. Enhancement of Financial Reporting Tools: The Finance Officer will enhance existing financial reporting tools to better identify fund sources and confirm accurate tracking and reporting of federal and match expenditures. Provide Training: The Finance Officer will provide additional training to staff responsible for preparing SF-425 reports, focusing on accurate calculation of matching amounts and recipient share of expenditures. Completion Date (list anticipated completion date): June 30, 2025 Agency Contact (name of person responsible for corrective action): Pamela Wiederspohn

View Audit 361087

Finding 569809 (2024-038)

None 2024

State of Alaska

AK

Subrecipient Monitoring Reporting § 200.1 § 200.521

Finding: 2024-038 - DMVA management did not issue a management decision for a finding relating to one subrecipient’s single audit. Questioned Costs: None Assistance Listing Number: 97.036 Assistance Listing Title: Disaster Grants — Public Assistance (Presidentially Declared Disasters) Views of R...

Finding: 2024-038 - DMVA management did not issue a management decision for a finding relating to one subrecipient’s single audit. Questioned Costs: None Assistance Listing Number: 97.036 Assistance Listing Title: Disaster Grants — Public Assistance (Presidentially Declared Disasters) Views of Responsible Officials (state whether your agency agrees or disagrees with the finding; if you disagree, briefly explain why): DMVA concurs with the finding. Corrective Action (corrective action planned): DMVA acknowledges the importance of issuing timely and adequate management decisions to ensure subrecipients take corrective action. The Finance Officer will review internal procedures to identify areas of improvement that may eliminate a single-point of failure in this requirement. Completion Date (list anticipated completion date): 06/30/2025 Agency Contact (name of person responsible for corrective action): Pamela Wiederspohn

View Audit 361087

Finding 569793 (2024-064)

Significant Deficiency 2024

State of Alaska

AK

Questioned Costs Procurement, Suspension & Debarment Subrecipient Monitoring

Finding: 2024-064 - Five of five ACF-696 quarterly reports and three of five FFATA reports selected for testing were submitted after the required due dates. Questioned Costs: None Assistance Listing Number: 93.575, 93.596 Assistance Listing Title: CCDF Views of Responsible Officials (state wheth...

Finding: 2024-064 - Five of five ACF-696 quarterly reports and three of five FFATA reports selected for testing were submitted after the required due dates. Questioned Costs: None Assistance Listing Number: 93.575, 93.596 Assistance Listing Title: CCDF Views of Responsible Officials (state whether your agency agrees or disagrees with the finding; if you disagree, briefly explain why): The department agrees with the finding. Corrective Action (corrective action planned): Division of Public Assistance (DPA) staff in partnership with the Division of Finance and Management Services (FMS) will update procedures to streamline ACF-696 quarterly reporting. DPA will enhance financial accounting structure, which should also reduce time spent compiling data and result in more timely submissions. For FFATA, the applicable FMS staff experienced turnover affecting timely submission of reports. New staff will be trained in the procedures and requirements so FFATA reporting can occur in a timely manner. Completion Date (list anticipated completion date): The department anticipates the finding will be resolved in FY2025. Agency Contact (name of person responsible for corrective action): Pam Halloran, Assistant Commissioner

View Audit 361087

Finding 569788 (2024-060)

Material Weakness 2024

State of Alaska

AK

Subrecipient Monitoring Internal Control / Segregation of Duties Material Weakness

Finding: 2024-060 - No Federal Funding and Transparency Act (FFATA) reports were submitted during the audit period of July 1, 2023 through June 30, 2024. Additionally, the State could not provide evidence that the FFY 23 ACF-204 annual report was completed or submitted to the federal agency. Questi...

Finding: 2024-060 - No Federal Funding and Transparency Act (FFATA) reports were submitted during the audit period of July 1, 2023 through June 30, 2024. Additionally, the State could not provide evidence that the FFY 23 ACF-204 annual report was completed or submitted to the federal agency. Questioned Costs: None Assistance Listing Number: 93.558 Assistance Listing Title: TANF Views of Responsible Officials (state whether your agency agrees or disagrees with the finding; if you disagree, briefly explain why): The department agrees with the finding. Corrective Action (corrective action planned): Division of Public Assistance will compile comprehensive procedures. Staff will be trained on the ACF-204 reporting process to ensure both accurate and timely reporting in future fiscal years. For FFATA, the Division of Shared Services will implement procedures in FY2025 to coordinate workflow of necessary information within and between agencies so that FFATA reporting can occur in a timely manner. Completion Date (list anticipated completion date): The department anticipates the finding will be resolved in FY2026. Agency Contact (name of person responsible for corrective action): Pam Halloran, Assistant Commissioner

View Audit 361087

Finding 569774 (2024-003)

Significant Deficiency 2024

State of Alaska

AK

Internal Control / Segregation of Duties Questioned Costs Reporting § 200.303

Finding: 2024-003 — Office of Management and Budget staff submitted the quarter ended December 31, 2023, FY 24 Coronavirus State and Local Fiscal Recovery Funds (SLFRF) program project and expenditure report to US Treasury with material errors. Questioned Costs: None Assistance Listing Number: 21....

Finding: 2024-003 — Office of Management and Budget staff submitted the quarter ended December 31, 2023, FY 24 Coronavirus State and Local Fiscal Recovery Funds (SLFRF) program project and expenditure report to US Treasury with material errors. Questioned Costs: None Assistance Listing Number: 21.027 Assistance Listing Title: SLFRF COVID- 19 Views of Responsible Officials (state whether your agency agrees or disagrees with the finding; if you disagree, briefly explain why): The Office of the Governor, Office of Management and Budget (OMB), agrees with this finding. Corrective Action (corrective action planned): A standard operating procedure policy for completing the quarterly Project and Expenditure Report was drafted and finalized in coordination with the Division of Finance. This policy has been utilized since completion and will be followed for all future SLFRF reporting periods. The U.S. Treasury was contacted for guidance on how to correct prior-quarter obligation and expenditure data. Completion Date (list anticipated completion date): February 25, 2025 Agency Contact (name of person responsible for corrective action): Lacey Sanders, Director

View Audit 361087

Finding 569769 (2024-035)

Significant Deficiency 2024

State of Alaska

AK

Questioned Costs Subrecipient Monitoring Allowable Costs / Cost Principles § 200.303 § 200.308 § 200.344

Finding: 2024-035 -Six of seven award extensions for the NGMOMP program were untimely. Additionally, one award was not closed timely. Questioned Costs: None Assistance Listing Number: 12.401 Assistance Listing Title: NGMOMP Views of Responsible Officials (state whether your agency agrees or ...

Finding: 2024-035 -Six of seven award extensions for the NGMOMP program were untimely. Additionally, one award was not closed timely. Questioned Costs: None Assistance Listing Number: 12.401 Assistance Listing Title: NGMOMP Views of Responsible Officials (state whether your agency agrees or disagrees with the finding if you disagree, briefly explain why): DMVA concurs with the finding. Corrective Action (corrective action planned): Administrative Services has consistently provided notification and set clear deadlines to the Federal and State Program Managers of an expiring award under the Cooperative Agreement (CA). This notification has included a financial report detailing posted expenses and open obligations and when applicable, a copy of the most resent approved extension for reference. Due to inconsistent and untimely responses, the Finance officer in conjunction with the Administrative Services Director will update and strengthen written procedures, elevating responsibility for follow-up when responses are not received to ensure timely submission of extension requests and award closeouts following 2 CFR 200.303(a), 2 CFR 200.308(e), and 2 CFR 200.344. Updated documented procedures and training will be provided to the components under the CA. Completion Date (list anticipated completion date): 06/30/2025 Agency Contact (name of person responsible for corrective action): Bob Ernisse Pamela Wiederspohn

View Audit 361087

Finding 569759 (2024-027)

Significant Deficiency 2024

State of Alaska

AK

Subrecipient Monitoring Reporting School Nutrition Programs § 200.303

Finding: 2024-027 - DEED did not comply with Federal Funding Accountability and Transparency Act reporting requirements applicable to Child Nutrition Cluster (CNC) FY 24 subawards. Questioned Costs: None Assistance Listing Number: 10.553, 10.555, 10.559, 10.582 Assistance Listing Title: CNC View...

Finding: 2024-027 - DEED did not comply with Federal Funding Accountability and Transparency Act reporting requirements applicable to Child Nutrition Cluster (CNC) FY 24 subawards. Questioned Costs: None Assistance Listing Number: 10.553, 10.555, 10.559, 10.582 Assistance Listing Title: CNC Views of Responsible Officials (state whether your agency agrees or disagrees with the finding; if you disagree, briefly explain why): The department partially agrees with Finding 2024-0027. While it is accurate that no FFATA reporting was accomplished for the Child Nutrition Cluster in FY2024, the department disagrees with the specific dollar amount. The methodology used for determining the dollar amount is overly simplistic and does not take each award into account, as specified in 2CFR17O.220. The methodology also excludes awards to other State agencies when 2CFR17O.300 specifically includes State entities. Corrective Action (corrective action planned): The department will continue to work to improve its ability to report timely by attempting to streamline manual determination of amounts to be reported. Completion Date (list anticipated completion date): Completion date is unknown. The department is still in the process of training the newest Finance Officer who has primary responsibility for the reporting. Due to the complexity of the reporting requirements and the limitations of the State’s financial systems it is a very manual process to determine accurate amounts to report. This manual process takes more time than knowledgeable staff have available due to other higher priority responsibilities. The system used to report also changed in Spring of 2025. Department procedures need to be overhauled again to take into account the move to SAM.gov. Agency Contact (name of person responsible for corrective action): Monigue Siverly, Division Operations Manager, Division of Administrative Services

View Audit 361087

Finding 569757 (2024-054)

Material Weakness 2024

State of Alaska

AK

Allowable Costs / Cost Principles Eligibility Questioned Costs § 200.303

Finding: 2024-054 - Testing of 42 SNAP recipient cases to verify the completeness and accuracy of benefit calculations found 37 (88 percent) were incorrect or unsupported, including 24 (57 percent) in which the recipients’ application or reports of changes were not processed within federally require...

Finding: 2024-054 - Testing of 42 SNAP recipient cases to verify the completeness and accuracy of benefit calculations found 37 (88 percent) were incorrect or unsupported, including 24 (57 percent) in which the recipients’ application or reports of changes were not processed within federally required timeframes. Testing of 42 SNAP recipient cases to verify the adequacy of case information stored in EIS and DOH’s document management system, ILINX, found 18 (43 percent) had inadequate verifications of required information. Questioned Costs: AL 10.551: $59,073 Assistance Listing Number: 10.551, 10.561 Assistance Listing Title: SNAP Cluster Views of Responsible Officials (state whether your agency agrees or disagrees with the finding; if you disagree, briefly explain why): The department agrees with the finding. Corrective Action (corrective action planned): The Division of Public Assistance has reinstated SNAP interview requirements and verification procedures in FY2025. It will also review casework via supervisory case reviews to ensure accuracy and documentation standards are met. The division’s Learning & Development Team is creating training modules that will provide continuing education to existing staff. Completion Date (list anticipated completion date): The department anticipates the finding will be resolved in FY2026. Agency Contact (name of person responsible for corrective action): Pam Halloran, Assistant Commissioner

View Audit 361087

Finding 569756 (2024-053)

Material Weakness 2024

State of Alaska

AK

Allowable Costs / Cost Principles Eligibility Questioned Costs § 200.303

Finding: 2024-053 - The amount of FY 24 Supplemental Nutrition Assistance Program (SNAP) benefits reported to the United States Department of Agriculture (USDA) as issued by the State’s EBT contractor, FIS, was $2,628,951 more than the amount of authorized benefits reported in data from DPA’s Eligib...

Finding: 2024-053 - The amount of FY 24 Supplemental Nutrition Assistance Program (SNAP) benefits reported to the United States Department of Agriculture (USDA) as issued by the State’s EBT contractor, FIS, was $2,628,951 more than the amount of authorized benefits reported in data from DPA’s Eligibility Information System (EIS). Furthermore, FIS could not provide a reliable audit trail of issuances. Questioned Costs: AL 10.551: $2,628,951 Assistance Listing Number: 10.551, 10.561 Assistance Listing Title: SNAP Cluster Views of Responsible Officials (state whether your agency agrees or disagrees with the finding; if you disagree, briefly explain why): The department agrees with the finding, but not the questioned cost. The Division of Public Assistance performs monthly reconciliations and balancing efforts to ensure accuracy with routine FIS reports, EIS authorization and issuance reports, and federal reporting. However, the division agrees that a new ad hoc report created for this audit by the EBT contractor, FIS, does not match with issuances and reporting. Corrective Action (corrective action planned): The Division of Public Assistance will work with the EBT contractor, FIS, through the contract performance management process to address discrepancies found between a non standard ad hoc report and program issuances and reporting. The division will evaluate further ad hoc reports against previously established documents for accuracy. Completion Date (list anticipated completion date): The department anticipates the finding will be resolved in FY2026. Agency Contact (name of person responsible for corrective action): Pam Halloran, Assistant Commissioner

View Audit 361087

Finding 569755 (2024-052)

Material Weakness 2024

State of Alaska

AK

School Nutrition Programs Questioned Costs Eligibility § 200.303

Finding: 2024-052 - DOH’s Division of Public Assistance (DPA) did not determine or distribute benefits to school children or children in child care in accordance with the process and timeframes in the federally approved state plan. The audit identified the following deficiencies in FY 24: • The chi...

Finding: 2024-052 - DOH’s Division of Public Assistance (DPA) did not determine or distribute benefits to school children or children in child care in accordance with the process and timeframes in the federally approved state plan. The audit identified the following deficiencies in FY 24: • The children in child care beneficiaries were not identified as required by the school year 2020—2021 state plan. • The per child benefit amount paid to the 15,697 children in child care was understated by $6.21 and 125 children were included in both the student and the child care benefit eligibility lists. • Issuance records provided by DPA’s Electronic Benefits Transfer (EBT) contractor, Fidelity National Information Services (FIS), were $795,659 more than DPA reported issuances. Furthermore, the FIS report included $28,992 in duplicate summer 2021 benefit issuances to school children. • School year 2020—2021 student beneficiaries paid in FY 24 received benefits at least two years late and the children in child care beneficiaries were paid benefits at least 20 months late. Summer of 2021 beneficiaries paid in FY24 received benefits at least 20 months late. Questioned Costs: AL 10.542: Indeterminate Assistance Listing Number: 10.542 Assistance Listing Title: Pandemic Electronic Benefit Transfer Food Benefits (P-EBT) COVID-19 Views of Responsible Officials (state whether your agency agrees or disagrees with the finding; if you disagree, briefly explain why): The department partially agrees with the finding. The Division of Public Assistance disagrees with the finding regarding issuance timelines. The division communicated with FNS regarding manual benefit issuance for Alaska expressing timelines would be affected and FNS did not request an updated timeline. Communication with FNS regarding issuance remained consistent, with no indication to alter our issuance plan. Corrective Action (corrective action planned): Shall the department agree to administer this federal program in the future, the Commissioner will allocate the resources necessary to prevent the necessity to manually administer the federal program. Completion Date (list anticipated completion date): Not applicable. This federal program is complete. Agency Contact (name of person responsible for corrective action): Pam Halloran, Assistant Commissioner

View Audit 361087 Questioned Costs: $1

Finding 569754 (2024-026)

Significant Deficiency 2024

State of Alaska

AK

Eligibility School Nutrition Programs Questioned Costs § 200.303

Finding: 2024-026 — Department of Education and Early Development’s (DEED) child nutrition services management authorized Summer 2021 Pandemic Electronic Benefit Transfer Food Benefits (P-EBT) benefits for ineligible children. Questioned Costs: AL 10.542: $62,816 Assistance Listing Number: 10.542 ...

Finding: 2024-026 — Department of Education and Early Development’s (DEED) child nutrition services management authorized Summer 2021 Pandemic Electronic Benefit Transfer Food Benefits (P-EBT) benefits for ineligible children. Questioned Costs: AL 10.542: $62,816 Assistance Listing Number: 10.542 Assistance Listing Title: P-EBT COVID- 19 Views of Responsible Officials (state whether your agency agrees or disagrees with the finding; if you disagree, briefly explain why): The department agrees with Finding 2024-026. Corrective Action (corrective action planned): As the program is complete no corrective action can be taken for the Summer P-EBT program. If a new Summer EBT program is implemented, the department would work to implement a combination of standard operating procedures and automated electronic data validation processes to prevent erroneous benefit issuance. The department did not have sufficient time or resources to establish such features when implementing Pandemic EBT due to the urgent nature of the program. Completion Date (list anticipated completion date): n/a Agency Contact (name of person responsible for corrective action): Gavin Northey, Child Nutrition Programs Manager

View Audit 361087 Questioned Costs: $1

Finding 569731 (2024-001)

Significant Deficiency 2024

Limestone Valley Resource Conservation and Development Council, Inc.

GA

Internal Control / Segregation of Duties Cash Management Reporting

2023-01: Segregation of Duties Name of contact person: Stephen Bontekoe, Program Coordinator Corrective Action: Duties and functions will be reviewed to determine where segregation needs to occur. The duties will be separated as much as possible and alternative controls will be implemented to ...

2023-01: Segregation of Duties Name of contact person: Stephen Bontekoe, Program Coordinator Corrective Action: Duties and functions will be reviewed to determine where segregation needs to occur. The duties will be separated as much as possible and alternative controls will be implemented to compensate for lack of segregation. However, the risk of not segregated certain duties are not worth the additional costs. Nonfinancial employees will be trained and provide some assistance. Proposed completion date: The Board will implement the above procedure immediately.

View Audit 361079

Finding 569694 (2024-004)

Significant Deficiency 2024

The Housing Authority of East Baton Rouge Parish

LA

HUD Housing Programs Reporting Internal Control / Segregation of Duties

2024-004 – ALN 14.871 – Housing Voucher Cluster – Reporting Management acknowledged the finding and will follow the Auditor's recommendations as listed in the Schedule of Findings and Questioned Costs. Person Responsible for Correction of Finding: Mr. J. Daniels, Chief Executive Officer Projected Co...

2024-004 – ALN 14.871 – Housing Voucher Cluster – Reporting Management acknowledged the finding and will follow the Auditor's recommendations as listed in the Schedule of Findings and Questioned Costs. Person Responsible for Correction of Finding: Mr. J. Daniels, Chief Executive Officer Projected Completion Date: September 30, 2025

View Audit 361037

Finding 569689 (2024-001)

Material Weakness 2024

California Foundation for Independent Living Centers

CA

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

Finding Reference Number: 2024-001 Description of Finding: Expenditures totaling $273,298 were incorrectly charged to the 93.464 program for a fiscal year in which the costs were not actually incurred. This misclassification resulted from recording expenses based on the purchase order date (Septemb...

Finding Reference Number: 2024-001 Description of Finding: Expenditures totaling $273,298 were incorrectly charged to the 93.464 program for a fiscal year in which the costs were not actually incurred. This misclassification resulted from recording expenses based on the purchase order date (September 30) rather than the actual service date, leading to overbilling for the grant year. Statement of Concurrence or Nonconcurrence: We concur with the audit finding regarding the misclassification of expenditures totaling $273,298 to the 93.464 program after the fiscal year-end. We acknowledge that these costs were recorded in the incorrect accounting period, resulting in an overstatement of grant expenditures for the fiscal year. Corrective Action: 1. Policy Update: CFILC will revise expense recognition policies to require that costs be recorded in the period matching the actual service date. 2. Year-End Review Process: CFILC will implement a formal review process at fiscal year-end to confirm expenses are attributed to the correct fiscal year. 3. Staff Training: CFILC will provide training for financial reporting and grant billing staff on the expense recognition policy and year-end review process. 4. Monitoring & Compliance: CFILC will establish periodic internal audits or reviews to ensure ongoing compliance with the updated procedures. 5. Finance Committee Oversight: Executive Director will report to the Finance Committee on the status of this corrective action plan by the completion date of December 31, 2025. Name of Contact Person: Kathrine Crowley, Acting Executive Director, kathrine@cfilc.org, (916) 232-1985 Projected Completion Date: December 31, 2025

View Audit 361029

Finding 569687 (2024-007)

None 2024

City of Long Beach

CA

HUD Housing Programs Reporting Significant Deficiency

Program: Section 8 Housing Choice Voucher Finding: 2024-007 Contact Person: Michelle Mel-Duch Housing Administrative and Financial Services Officer Health & Human Services Department Phone: (562) 570-5344 Email: Michelle.Mel-Duch@longbeach.gov Planned Actions: 1. Implementation of New Software Sy...

Program: Section 8 Housing Choice Voucher Finding: 2024-007 Contact Person: Michelle Mel-Duch Housing Administrative and Financial Services Officer Health & Human Services Department Phone: (562) 570-5344 Email: Michelle.Mel-Duch@longbeach.gov Planned Actions: 1. Implementation of New Software System: o HACLB has transitioned to the new MRI housing management software platform, which offers fully sufficient functionality and reporting capabilities compared to the prior system. o The new MRI system provides the Inspections Team with advanced tools to organize, schedule, and track Quality Control inspections efficiently and accurately. 2. Improved Reporting and Compliance: o The MRI system’s reporting functions allow HACLB to generate detailed and timely listings of all Housing Quality Control inspections. o This improvement supports HACLB’s ability to meet HUD requirements for inspection scheduling, documentation, and follow-up activities. Expected Completion Date: December 31, 2025

View Audit 361021

Finding 569685 (2024-006)

Material Weakness 2024

City of Long Beach

CA

HUD Housing Programs Eligibility Subrecipient Monitoring § 200.303

Program: Section 8 Housing Choice Voucher Finding: 2024-006 Contact Person: Michelle Mel-Duch Housing Administrative and Financial Services Officer Health & Human Services Department Phone: (562) 570-5344 Email: Michelle.Mel-Duch@longbeach.gov Planned Actions: 1. Automated Data Validation and Err...

Program: Section 8 Housing Choice Voucher Finding: 2024-006 Contact Person: Michelle Mel-Duch Housing Administrative and Financial Services Officer Health & Human Services Department Phone: (562) 570-5344 Email: Michelle.Mel-Duch@longbeach.gov Planned Actions: 1. Automated Data Validation and Error Detection: o HACLB utilizes the MRI housing management software, which syncs to the HUD’s PIC (Public and Indian Housing Information Center)requirements, ensuring data consistency and validation. o The MRI system incorporates HUD’s mandated validation standards and automatically identifies errors in participant data before submission to the PIC system. o Validation errors flagged by MRI are reviewed and corrected prior to submission to HUD, ensuring data accuracy and compliance. 2. Compliance with HUD Standards and Reporting: o Each recertification is submitted to the HUD PIC system, which further validates the data and alerts HACLB to any errors through the PIC Error Dashboard. o HACLB promptly addresses and corrects errors identified by PIC to maintain program integrity and compliance with HUD reporting standards. 3. Quality Control and Training: o HACLB conducts annual SEMAP (Section Eight Management Assessment Program) evaluations, which include quality control indicators to assess the accuracy of calculations and program administration. o Errors identified through SEMAP and system validations are used proactively as training opportunities for staff. o New Housing Specialists’ work is closely reviewed during their training period to ensure accuracy and compliance. 4. Systematic Tracking and Monitoring: o The MRI system facilitates ongoing quality control tracking, enabling Housing staff to monitor and correct errors effectively. o HACLB’s process includes regular oversight and review of participant files and related transactions to ensure timely and accurate housing assistance payments and reporting. Expected Completion Date: December 31, 2025

View Audit 361021

Finding 569666 (2024-002)

Significant Deficiency 2024

Alfred Saliba Family Services Center, Inc.

AL

Questioned Costs Reporting Allowable Costs / Cost Principles § 200.303

Item 2024-002 (Repeat 2023-002) Reporting – Management’s Response – The Agency will implement controls to ensure proper review and approval is obtained on required grant reports prior to submission to the grantor. Anticipated Completion: September 30, 2025 Responsible Party: Jim Harnett, Execut...

Item 2024-002 (Repeat 2023-002) Reporting – Management’s Response – The Agency will implement controls to ensure proper review and approval is obtained on required grant reports prior to submission to the grantor. Anticipated Completion: September 30, 2025 Responsible Party: Jim Harnett, Executive Director

View Audit 361018

Finding 569620 (2024-004)

None 2024

Spring Meadow Association of Responsible Tenants, Inc. 023-44087

MA

HUD Housing Programs Subrecipient Monitoring Reporting

FINDINGS - MAJOR FEDERAL AWARD PROGRAM AUDIT Department of Housing and Urban Development Finding, 2024-004: Major Programs: Capital Advance Program, Federal Assistance Listing Number 14.U01 and Section 8 New Construction and Substantial Rehabilitation, Federal Assistance Listing Number 14.182 REC...

FINDINGS - MAJOR FEDERAL AWARD PROGRAM AUDIT Department of Housing and Urban Development Finding, 2024-004: Major Programs: Capital Advance Program, Federal Assistance Listing Number 14.U01 and Section 8 New Construction and Substantial Rehabilitation, Federal Assistance Listing Number 14.182 RECOMMENDATION The auditor recommends the Property receive HUD approval before withdrawing funds from its residual receipts account and repay the $163,679 to the residual receipts account. ACTION TAKEN Carrasquillo Management LLC acknowledges the finding regarding the unauthorized withdrawal of $163,679 from the Project’s residual receipts account during the fiscal year ended September 30, 2024. This withdrawal was related to surplus cash from fiscal year 2023 that had been deposited into the residual receipts account. Due to miscommunication and misunderstanding during the transition between management companies, the withdrawal was made without obtaining prior written approval from HUD, as required under HUD Handbook 4370.2 Revision 1. Corrective Actions: 1. Repayment Agreement with HUD Carrasquillo Management LLC has been in direct communication with the Project’s HUD Account Executive, Nyal McDonough, of the Northeast Region Asset Management Division. HUD has agreed to allow the Project to repay the full $163,679 through monthly installments as part of an interest-free repayment plan until the balance is fully restored to the residual receipts account. This agreement is currently being implemented and tracked in coordination with HUD. 2. Internal Compliance Controls To ensure full compliance going forward, Carrasquillo Management LLC has updated internal policies and procedures to strictly prohibit any withdrawals from the residual receipts account without explicit written authorization from HUD. All future requests for residual receipts will be submitted through HUD’s formal request channels, and no funds will be accessed without prior written approval. 3. Staff Training Relevant personnel have received training on HUD Handbook 4370.2 and HUD financial controls regarding restricted accounts. Additional safeguards are in place to ensure management and accounting teams confirm HUD approval documentation before any restricted account disbursement. 4. Monthly Monitoring and Reporting Carrasquillo Management LLC will include the residual receipts repayment schedule in its monthly financial reporting to ownership and will maintain communication with HUD to ensure full transparency throughout the repayment period. Carrasquillo Management LLC is committed to full regulatory compliance and to restoring the integrity of all project accounts in collaboration with HUD.

View Audit 361007

Finding 569589 (2024-003)

Significant Deficiency 2024

Valley Comprehensive Community Health Center, Inc.

WV

Reporting Internal Control / Segregation of Duties § 200.512

Recommendations: The Organization should implement stronger internal controls to ensure that reporting deadlines are effectively monitored and met. This may include: - Developing and maintaining a reporting calendar with clearly defined deadlines for financial reporting. - Assigning responsibility f...

Recommendations: The Organization should implement stronger internal controls to ensure that reporting deadlines are effectively monitored and met. This may include: - Developing and maintaining a reporting calendar with clearly defined deadlines for financial reporting. - Assigning responsibility for tracking and ensuring timely submission of reports. Additionally, the Organization should conduct a root cause analysis to address any underlying issues and implement corrective actions to prevent future delays. Views of responsible officials and planned corrective actions: Management agrees with the finding and will implement processes to mitigate the risk of future late file reports. Anticipated Completion Date: June 2025

View Audit 360980

Finding 569455 (2024-001)

Material Weakness 2024

Red Cliff Chippewa Housing Authority

WI

Reporting Subrecipient Monitoring § 200.302 § 200.327

Condition: A weakness existed in the overall reconciliation/tie-in procedures performed over the Tribe’s financial statement accounts for the fiscal year ended September 30, 2024. Financial accounts were either reconciled untimely or in some cases, accounts were not reconciled at all. Most of these ...

Condition: A weakness existed in the overall reconciliation/tie-in procedures performed over the Tribe’s financial statement accounts for the fiscal year ended September 30, 2024. Financial accounts were either reconciled untimely or in some cases, accounts were not reconciled at all. Most of these accounts should be reconciled on a monthly basis. The major areas where reconciliation procedures were weak included: A) Beginning Balances B) Account Receivables C) Grant Receivables/Unearned Revenues D) Accounts Payable E) Payroll and Other Current Liabilities Recommendation: The Tribe should adopt written reconciliation and tie-in procedures into its financial policies and procedures manual. Action Taken: We agree with the auditor’s recommendation. We expect this to be complete within 120 days past the issuance of this report

View Audit 360942

Finding 569445 (2024-003)

Material Weakness 2024

Okeechobee County, Fl

FL

Internal Control / Segregation of Duties Questioned Costs Subrecipient Monitoring

93 Aging Cluster – Assistance Listing No. 93.044, 93.045, and 93.053 Recommendation: We recommend all reports submitted to grantors be reviewed by knowledgeable personnel before submittal. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action take...

93 Aging Cluster – Assistance Listing No. 93.044, 93.045, and 93.053 Recommendation: We recommend all reports submitted to grantors be reviewed by knowledgeable personnel before submittal. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to the findings: The County will establish a formal review process for all reports submitted to grantors. All grant-related reports will be required to undergo secondary review and approval by departmental personnel knowledgeable with the grant prior to submission. This review will be documented by designated personnel with their signature and date of review. A digital record e.g., e-mail chain will also be accepted and maintained with grant submittal documentation as evidence of secondary review in lieu of original signature. Name(s) of the contact person(s) responsible for corrective action: Lisa Ridley Planned completion date for corrective action plan: 7/1/2025.

View Audit 360936

Corrective Action Plans

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