Corrective Action Plans

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Finding Number 2023-006 Condition: The County did not file the required FFATA reports for CDBG subrecipients timely. Planned Corrective Action: Schedule FFATA reporting within 30 days of Cities, Villages and Township budget acceptance. Contact person responsible for corrective action: Laura Randall ...
Finding Number 2023-006 Condition: The County did not file the required FFATA reports for CDBG subrecipients timely. Planned Corrective Action: Schedule FFATA reporting within 30 days of Cities, Villages and Township budget acceptance. Contact person responsible for corrective action: Laura Randall Anticipated Completion Date: 06/17/2024
Finding Number 2023-005 Condition: The FEMA expenditures on the schedule of expenditures of federal awards (SEFA) initially presented for audit were not complete and accurate. Planned Corrective Action: Seek training from our auditors on the proper recording of obligated expenditures. Contact person...
Finding Number 2023-005 Condition: The FEMA expenditures on the schedule of expenditures of federal awards (SEFA) initially presented for audit were not complete and accurate. Planned Corrective Action: Seek training from our auditors on the proper recording of obligated expenditures. Contact person responsible for corrective action: Laura Randall Anticipated Completion Date: 06/14/2024
Finding Number: 2023-004 Condition: The County did not have controls in place during the year under audit to ensure that the required certified payrolls were received by contractors and subcontractors. Planned Corrective Action: Develop a process with Neighborhood Housing and Development Department ...
Finding Number: 2023-004 Condition: The County did not have controls in place during the year under audit to ensure that the required certified payrolls were received by contractors and subcontractors. Planned Corrective Action: Develop a process with Neighborhood Housing and Development Department ensuring all appropriate documentation has been reviewed and received. Contact person responsible for corrective action: Khadija Walker-Fobbs Anticipated Completion Date: 07/15/2024
This matter has been addressed internally with staff now assigned to maintain our internal record keeping in digital formats clearly labeled.
This matter has been addressed internally with staff now assigned to maintain our internal record keeping in digital formats clearly labeled.
Finding 2023-004 Inadequate Internal Control over Federal Grant Reporting and Record Retention Federal award: Assistance Listing No. 21.027, Coronavirus State and Local Fiscal Recovery Funds Auditor Description of Condition and Effect During the audit, we noted that the Organization had not establis...
Finding 2023-004 Inadequate Internal Control over Federal Grant Reporting and Record Retention Federal award: Assistance Listing No. 21.027, Coronavirus State and Local Fiscal Recovery Funds Auditor Description of Condition and Effect During the audit, we noted that the Organization had not established and implemented sufficient controls over the preparation, review, submission, and retention of required federal grant reports. Specifically, the Organization could not provide sufficient documentation demonstrating that: • Financial and programmatic information in required reports was reconciled to the underlying accounting and project records; • All applicable reporting elements, including capital expenditures and contractor or subaward information, were evaluated for completeness; • Reports were reviewed and approved by appropriate personnel before certification and submission; • Reports were submitted by the applicable deadlines and evidence of submission was retained; and • Corrections or resubmissions were appropriately documented and supported. The absence of appropriately designed and implemented controls creates a reasonable possibility that materially inaccurate, incomplete, or untimely reports could be submitted, or that material noncompliance with federal reporting and record-retention requirements could occur and not be prevented, or detected and corrected, on a timely basis. Insufficient records may also prevent the Organization from substantiating reported information or demonstrating compliance during an audit, monitoring review, or other oversight. Auditor Recommendation Management should adopt written federal grant reporting procedures and implement a standardized process for preparing, reconciling, reviewing, approving, submitting, and retaining required reports. The process should address all applicable financial and programmatic reporting elements, including capital expenditures and contractor or subaward information, and should require retention of the reports, submission confirmations, supporting records, and documentation of any corrections or resubmissions for the period required by the award. Proposed Corrective Action The Organization agrees with the finding. Management will adopt written federal grant reporting and record-retention procedures, maintain a reporting calendar, and assign responsibility for preparation and review. Reported financial and programmatic information will be reconciled to the underlying accounting and project records, and a standardized checklist will be used to evaluate all applicable reporting elements. Management will document review and approval, retain evidence of timely submission, and maintain the reports, supporting records, and documentation of corrections or resubmissions in a centralized grant file for the retention period required by the award. Responsible Person: Anticipated Completion Date: June 30, 2027
Finding 2023-002 Late Submission of Single Audit Reporting Package and Data Collection Form Federal award: Assistance Listing No. 21.027, Coronavirus State and Local Fiscal Recovery Funds Auditor Description of Condition and Effect Subsequent to the original issuance of the Organization's financial ...
Finding 2023-002 Late Submission of Single Audit Reporting Package and Data Collection Form Federal award: Assistance Listing No. 21.027, Coronavirus State and Local Fiscal Recovery Funds Auditor Description of Condition and Effect Subsequent to the original issuance of the Organization's financial statements, additional expenditures of federal awards applicable to the year ended December 31, 2023, were identified. The additional expenditures caused the Organization's total federal awards expended to exceed the threshold requiring a Single Audit. Consequently, the Single Audit reporting package and data collection form were not submitted to the Federal Audit Clearinghouse by the required deadline. The additional federal expenditures were identified after the grantor clarified the period in which certain federally funded expenditures should be recognized. As a result, the Organization did not comply with the Single Audit reporting deadline, and the required audit information was not available to federal agencies and other users within the prescribed timeframe. Auditor Recommendation Management should strengthen its procedures for monitoring federal award activity, including promptly resolving questions with grantors regarding the timing and reporting of federal expenditures. Before issuing the financial statements, management should document the federal expenditures attributable to the reporting period and determine whether the total expenditures require a Single Audit. Proposed Corrective Action The Organization agrees with the finding. After the original financial statements were issued, the grantor clarified the period in which certain federally funded expenditures should be recognized. This clarification caused additional federal expenditures to be reported for 2023 and resulted in the Organization exceeding the Single Audit threshold after the original submission deadline. The 2023 reporting package and data collection form are expected to be submitted by September 10, 2026. Management will implement an annual federal awards closeout process that reconciles grant activity, resolves expenditure-recognition and cutoff questions with grantors, documents the federal expenditures attributable to the fiscal year, and evaluates the Single Audit threshold before the applicable filing deadline. Responsible Person: Anticipated Completion Date: September 10, 2026
Item 2023.004- Reporting Recommendation The Center should establish control to ensure all accounting records are analyzed and proper support is available in order to ensure the report is complete, accurate and filed timely in accordance with Uniform guidance regulations. Repeat Finding No Action Tak...
Item 2023.004- Reporting Recommendation The Center should establish control to ensure all accounting records are analyzed and proper support is available in order to ensure the report is complete, accurate and filed timely in accordance with Uniform guidance regulations. Repeat Finding No Action Taken Tri-State Community Health Center (TSCHC) concurs with the finding and is strengthening its internal controls over federal financial reporting to ensure required reports are complete, accurate, adequately supported, and submitted within established deadlines. TSCHC will establish a standardized review process for applicable federal reports. Prior to submission, amounts reported will be reconciled to the general ledger and applicable supporting accounting records. Documentation supporting reported amounts will be maintained and reviewed for completeness and accuracy. The Finance Department will maintain a reporting schedule identifying applicable reporting requirements, due dates, responsible staff, and required review and approval. Completed reports and supporting reconciliations will be reviewed and approved by appropriate management personnel prior to submission. Management will periodically monitor compliance with the reporting process and address any discrepancies, missing documentation, or reporting delays identified through the review. This corrective action is intended to strengthen internal controls over federal reporting in accordance with applicable federal requirements.
Corrective Action Plan 2023 – 007 FINDING 2023-007 Contact Person Responsible for Corrective Action: Kevin Beaver, Clerk – Treasurer Contact Phone Number and Email Address: Ph. 812-533-1053 Kevin.Beaver@westterrehautein.gov Views of Responsible Officials: We Concur with the SBOA Findings Finding Sub...
Corrective Action Plan 2023 – 007 FINDING 2023-007 Contact Person Responsible for Corrective Action: Kevin Beaver, Clerk – Treasurer Contact Phone Number and Email Address: Ph. 812-533-1053 Kevin.Beaver@westterrehautein.gov Views of Responsible Officials: We Concur with the SBOA Findings Finding Subject: Scope Limitation Corrective Action Plan 1. Establish Formal SEFA Preparation Procedures The Clerk-Treasurer will develop and implement written procedures for the preparation and review of the Schedule of Expenditures of Federal Awards. Procedures will require: • Identification of all federal awards received during the year. • Verification of applicable Assistance Listing Numbers (ALNs). • Documentation supporting all reported expenditures. • Completion of a SEFA preparation checklist before submission. 2. Create and Maintain a Federal Awards Inventory The Town will establish a centralized listing of all federal awards received. The inventory will include: • Federal agency • Program name • Assistance Listing Number (ALN) • Grant period • Award amount • Annual expenditures • Pass-through entity information, when applicable The inventory will be reviewed and updated monthly. 3. Implement Reconciliation Procedures for Federal Expenditures Prior to preparation of the AFR and SEFA, federal expenditures will be reconciled to: • General ledger accounts • Grant reimbursement requests • Supporting grant documentation • Cash drawdowns and receipts Any discrepancies identified during the reconciliation process will be investigated and resolved before submission. 4. Implement Independent Review Controls An independent review of the SEFA will be performed before submission. The review will verify: • Completeness of all federal programs. • Accuracy of reported expenditures. • Correct Assistance Listing Numbers. • Agreement of reported amounts to support records and reconciliations. Evidence of review will be documented through a monthly signed and dated review checklist. 5. Strengthen Grant Documentation and Record Retention The Town will maintain separate grant files for each federal program containing: • Award agreements • Amendments • Reimbursement requests • Financial reports • Supporting expenditure documentation • Correspondence with grantor agencies Records will be maintained in accordance with federal and state retention requirements. 6. Establish Ongoing Monitoring Procedures The Town will perform monthly reviews of federal grant activity to ensure expenditures are properly recorded and reported. Monitoring procedures will include: • Review of grant expenditures by program. • Verification of ALN assignments. • Review of grant balances and reimbursement activity. • Follow-up and correction of identified issues. Results of quarterly reviews will be documented and retained. Quarterly monitoring reports Responsible Party: Clerk – Treasurer and Town Council President. Completion Date: immediate first steps, March 3, 2027, for full implementation. _____________________________ Kevin Beaver, Clerk – Treasurer
Finding 1239051 (2023-003)
Material Weakness 2023
Upmc
PA
Federal Agency: U.S. Department of Health and Human Services Assistance Listing No.: 93.918, Grants to Provide Outpatient Early Intervention Services with Respect to HIV Disease (Ryan White, Part C) Condition: For the period under audit, UPMC did not retain sufficient evidence to support the design ...
Federal Agency: U.S. Department of Health and Human Services Assistance Listing No.: 93.918, Grants to Provide Outpatient Early Intervention Services with Respect to HIV Disease (Ryan White, Part C) Condition: For the period under audit, UPMC did not retain sufficient evidence to support the design and operation of internal controls over the applicable compliance requirements, including allowability; cash management; matching, level of effort and earmarking, program income, and reporting. Corrective Action Plan: UPMC has remediated this deficiency. Effective January 1, 2025, management revised the internal control policies and procedures for Ryan White, Part C to appropriately maintain evidence of controls performed. Completion: May 2025
Finding 1239044 (2023-002)
Material Weakness 2023
Upmc
PA
Federal agency: U.S. Department of Health and Human Services Assistance Listing No.: 93.918, Grants to Provide Outpatient Early Intervention Services with Respect to HIV Disease (Ryan White, Part C) Condition: Ryan White, Part C requires the use of program income under the additive method, which req...
Federal agency: U.S. Department of Health and Human Services Assistance Listing No.: 93.918, Grants to Provide Outpatient Early Intervention Services with Respect to HIV Disease (Ryan White, Part C) Condition: Ryan White, Part C requires the use of program income under the additive method, which requires program income earned from a federally funded program is added to the federal award amount and used to further program objectives. Under the method, allowable expenditures of program income are included on the SEFA. UPMC’s SEFA did not include expenditures related to program income, which were allowable. As a result, the expenditures in the SEFA for the Ryan White, Part C, were understated which resulted in the improper identification of major federal programs and, therefore, required the restatement of the previously issued Uniform Guidance report to include Ryan White, Part C as a major federal program. Corrective Action Plan: UPMC has remediated the control deficiency for the period ending December 31, 2025, by restating the 2023 Uniform Guidance report and including expenditures of program income in the SEFA for years ending on and after December 31, 2023. Completion: September 2026
Finding 1239037 (2023-001)
Material Weakness 2023
Upmc
PA
Condition: With the decommissioning of the related CHIP Application Processing System (CAPS) on April 17, 2023, by the Pennsylvania Department of Human Services (PA DHS), the evidence to support UPMC’s completion of these processes is not available for the period January 1, 2023 to April 16, 2023. P...
Condition: With the decommissioning of the related CHIP Application Processing System (CAPS) on April 17, 2023, by the Pennsylvania Department of Human Services (PA DHS), the evidence to support UPMC’s completion of these processes is not available for the period January 1, 2023 to April 16, 2023. PA DHS is unable to provide all the required data from the archived version of CAPS, including certain enrollee or application data points; notes and commentary documented by the MCOs; and evidence of the date/time procedures were performed. This information is necessary to test internal controls over compliance and compliance over eligibility and special tests and provisions. Therefore, EY was not able to support internal controls over compliance and compliance over the eligibility or the special tests and provisions compliance requirements through re-performance and issued a disclaimer of opinion based on the scope limitation. Corrective Action Plan: UPMC follows the processes and procedures set forth by Pennsylvania Department of Human Services. As such, no corrective action will be taken.
Organization’s response: The Organization concurs with the finding and will implement our recommendation immediately. Corrective Action Plan: The Organization will implement enhanced internal controls over compliance with federal award requirements by establishing a formal compliance calendar that i...
Organization’s response: The Organization concurs with the finding and will implement our recommendation immediately. Corrective Action Plan: The Organization will implement enhanced internal controls over compliance with federal award requirements by establishing a formal compliance calendar that includes all key reporting deadlines, including audit and FAC submission requirements. Responsibilities for each compliance requirement will be clearly assigned to specific personnel. Management will monitor the calendar regularly to ensure all deadlines are met. Additionally, the Organization will implement a review process to ensure submissions are accurate, complete, and timely. Contact: BreNita Jackson, Executive Director
Actions Planned – The City has strengthened internal controls over grant management by implementing enhanced processes and oversight. Duties have been assigned to staff that include maintaining a comprehensive and up to date list of all City grants. This individual is responsible for managing a cent...
Actions Planned – The City has strengthened internal controls over grant management by implementing enhanced processes and oversight. Duties have been assigned to staff that include maintaining a comprehensive and up to date list of all City grants. This individual is responsible for managing a centralized spreadsheet that includes grant documents, funding amounts, key requirements, and other supporting information. Grant documents are reviewed including for indication of federal funding. Minutes of the City Council and Economic Development Authority are reviewed and tied to the spreadsheet. Bank deposits are reviewed daily to identify any grant-related receipts. The spreadsheet is reviewed and updated frequently to ensure accuracy and completeness. These actions bolster the City’s ability to track grant activity, ensure compliance, and prevent future occurrences related to the audit finding. Official Responsible – Jason Zimmerman, Finance Director Planned Completion Date – June 30, 2025 Disagreement With or Explanation of Finding – The City agrees with this finding. Plan to Monitor – The City’s grant spreadsheet is reviewed quarterly and used as a workpaper to bring together information for the annual financial audit. Grant documents are reviewed by Finance for terms including federal ALN numbers, or any indication of the City being a subrecipient. Daily bank receipts are reconciled to the bank and tied out on a daily report.
2023-010 Reporting - Title I, Impact Aid and ESSER Grants - Repeat Finding Individual responsible: Business Manager and Federal Grants Director Anticipated completion date: FY 2026 Corrective action plan: At this point in time the ESSER funds are no longer available, so there will not be any other d...
2023-010 Reporting - Title I, Impact Aid and ESSER Grants - Repeat Finding Individual responsible: Business Manager and Federal Grants Director Anticipated completion date: FY 2026 Corrective action plan: At this point in time the ESSER funds are no longer available, so there will not be any other documentation going forward. However, with other grants the processes have changed. Since FY 2022 an accounting firm was hired to catch the school district up on grant requests. This accountant requested funds on a quarterly basis. On July 1, 2025, the District hired a Federal Grants director to work with the Business Manager to complete the grant catch up process and to create a system that documents each expenditure and timing of the requests. Once the system is in place cash requests will be completed monthly.
2023-009 Unsupported Expenditures - Title I, Impact Aid, and ESSER Grants - Repeat Finding Individual responsible: Business Manger and Federal Grants Director Anticipated completion date: FY 2026 Corrective action plan: The District acknowledges the deficiencies in documentation and reporting for fe...
2023-009 Unsupported Expenditures - Title I, Impact Aid, and ESSER Grants - Repeat Finding Individual responsible: Business Manger and Federal Grants Director Anticipated completion date: FY 2026 Corrective action plan: The District acknowledges the deficiencies in documentation and reporting for federal grant expenditures. At this time, ESSER funds are no longer available; therefore, additional supporting documentation for those programs will not be developed. However, the District has implemented corrective actions to imporve processes over other federal programs going forward. Since fiscal year 2022, the District engaged an external accounting firm to assist with grant reporting and cash request processes. This firm implemented a process to request funds on a quarterly basis and assisted in organizing available grant information. Effective July 1, 2025, the District hired a Federal Grants Director to work in cordination with the Business Manager to complete the grant reconciliation process and implement formal procedures for tracking grant expenditures and cash requests. These procedures include maintaining documentation for each expenditure, tracking the timing and support for drawdowns, and ensuring that all activity is properly recorded and supported. Upon full implementation of these procedures, the Distirct will transition to submitting cash requests on a monthly basis and maintaining complete and accessible documentation to support all reported amounts. The District expects these improvements to resolve the finding for current and future federal programs.
Significant Deficiency Finding No. 2023-007: Reporting U.S. Department of Housing and Urban Development Passed Through the State of Hawaii Department of Human Services Emergency Solutions Grant Program Coronavirus Federal Assistance Listing Number 14.231 Criteria A non-Federal entity that expends $7...
Significant Deficiency Finding No. 2023-007: Reporting U.S. Department of Housing and Urban Development Passed Through the State of Hawaii Department of Human Services Emergency Solutions Grant Program Coronavirus Federal Assistance Listing Number 14.231 Criteria A non-Federal entity that expends $750,000 or more in Federal awards during the year must have a single audit conducted in accordance with 2 CFR §200.514. Pursuant to 2 CFR §200.512, the audit must be completed and Form SF-SAC: Data Collection Form and reporting package must be submitted within the earlier of 30 calendar days after receipt of the auditors’ report(s), or nine months after year end of the audit period. Condition We noted that KMNH has not submitted the single audit reports required by the Uniform Guidance, including the Data Collection Form to the Federal Audit Clearinghouse for the year ended December 31, 2023, within the stipulated nine months after the end of the audit period. Cause KMNH is not in compliance with the Uniform Guidance terms and conditions regarding the submission dates of the single audit report and Data Collection Form for the year ended December 31, 2023. Effect KMNH is not in compliance with the Uniform Guidance terms and conditions regarding the submission dates of the single audit report and Data Collection Form for the year ended December 31, 2023. Identification of a Repeat Finding This finding was reported as a federal award finding in the immediate previous audit as Finding No. 2022- 005. Recommendation We again recommend that KMNH incorporate internal controls to ensure compliance with the Uniform Guidance with respect to the submission deadline of single audit reports and the Data Collection Form. Corrective Action Responsible Party: Executive Director KMNH agrees with the finding and recommendation and have updated internal controls to monitor audit submissions to the Federal Audit Clearinghouse.
Finding 2023-002: For the year ended December 31, 2023, the Corporation did not submit the Data Collection Form to the Federal Audit Clearinghouse in the time period required by Uniform Guidance due to the nondisclosure of the 51% ownership interest in Star Apartments, LLC. The original Data Collect...
Finding 2023-002: For the year ended December 31, 2023, the Corporation did not submit the Data Collection Form to the Federal Audit Clearinghouse in the time period required by Uniform Guidance due to the nondisclosure of the 51% ownership interest in Star Apartments, LLC. The original Data Collection Form that was submitted omitted the HOME Investment Partnerships Program as a major program, and Wood Utilization Assistance as a federal award since Star Apartments, LLC was not included in the Corporation's financial statements. Comments on the Finding and Each Recommendation: The Corporation should submit the Data Collection Form to the Federal Audit Clearinghouse within the required time period. Management agrees with the finding and agrees with the auditor's recommendation. Action(s) Taken or Planned on the Finding: The Data Collection Form was submitted to the Federal Audit Clearinghouse, no further action is required.
The Corporation is establishing formal audit preparation and completion timelines, strengthening monthly and year-end reconciliation and closing procedures, assigning responsibility for monitoring audit and federal reporting deadlines, and maintaining regular communication with the external auditor ...
The Corporation is establishing formal audit preparation and completion timelines, strengthening monthly and year-end reconciliation and closing procedures, assigning responsibility for monitoring audit and federal reporting deadlines, and maintaining regular communication with the external auditor regarding outstanding items and deadlines to return the organization to annual audit reporting.
o Calculate provisional indirect costs monthly. o Perform year-end indirect cost reconciliation. o Record true-up adjustments before financial statements are finalized. o Review indirect cost calculations prior to submitting federal reports. o Maintain documentation supporting all indirect cost calc...
o Calculate provisional indirect costs monthly. o Perform year-end indirect cost reconciliation. o Record true-up adjustments before financial statements are finalized. o Review indirect cost calculations prior to submitting federal reports. o Maintain documentation supporting all indirect cost calculations.
o Develop a formal audit and compliance reporting calendar. o Identify all federal reporting deadlines and required submissions. o Assign responsibility for monitoring reporting deadlines. o Conduct periodic status meetings with finance staff and auditors. o Monitor audit progress regularly to ident...
o Develop a formal audit and compliance reporting calendar. o Identify all federal reporting deadlines and required submissions. o Assign responsibility for monitoring reporting deadlines. o Conduct periodic status meetings with finance staff and auditors. o Monitor audit progress regularly to identify and address delays. o Establish internal deadlines in advance of federal reporting due dates.
o Establish formal procedures for the preparation, review, and approval of federal drawdown requests. o Require drawdowns to be supported by documented eligible expenditures. o Require management review and approval of drawdown requests prior to submission. o Reconcile drawdown requests to expenditu...
o Establish formal procedures for the preparation, review, and approval of federal drawdown requests. o Require drawdowns to be supported by documented eligible expenditures. o Require management review and approval of drawdown requests prior to submission. o Reconcile drawdown requests to expenditures and accounting records. o Maintain documentation supporting drawdown calculations and approvals. Periodically review cash management practices for compliance with federal requirements.
o Implement grant-specific tracking within the accounting system. o Establish separate project codes for each federal award. o Perform monthly reconciliations between grant expenditures, reimbursement requests, and accounting records. o Review grant activity regularly to ensure expenditures are accu...
o Implement grant-specific tracking within the accounting system. o Establish separate project codes for each federal award. o Perform monthly reconciliations between grant expenditures, reimbursement requests, and accounting records. o Review grant activity regularly to ensure expenditures are accurately recorded and reported. o Maintain supporting documentation for all expenditures charged to federal awards. o Conduct periodic management reviews to ensure compliance with federal reporting requirements.
Finding Reference: 2023-001 Description of Finding: Significant Deficiency in Internal Controls over Compliance. Identification of the Federal Program: U.S. Department of the Treasury CFDA 20.019 Criteria or Specific Requirement: Recipients of federal awards must establish internal controls over rep...
Finding Reference: 2023-001 Description of Finding: Significant Deficiency in Internal Controls over Compliance. Identification of the Federal Program: U.S. Department of the Treasury CFDA 20.019 Criteria or Specific Requirement: Recipients of federal awards must establish internal controls over reports that are prepared and submitted. Finding/Condition: Pursuant to the reporting requirement set forth by the Department of the Treasury, the Organization is required to submit the single audit to the Federal Audit Clearinghouse within 30 days of the issuance of the audit report or nine months after the end of the Organization’s fiscal year. During our reporting period we noted that the audit was not completed and filed timely. Cause: The Organization met the requirements for a single audit for the first time during the year ended December 31, 2023. Due to a lack of expertise in federal grant reporting requirements, the Organization overlooked the requirement to perform a single audit and file with the clearinghouse in a timely manner Corrective Action: In June 2025, Monterey County Business Council employed a CFO Consultant with 30+ years’ experience in finance and accounting who has performed a deep dive into the accounting framework. The Consultant has been engaged to assist the Organization in completing financial and single audits for the years ended December 31, 2022, 2023, and 2024. It is expected that the Organization will be caught up with federal clearinghouse filings by the end of 2025 or early 2026 at the latest. Under the consultant’s guidance, the Organization has made progress in financial reporting and will be filing the 2023 audit by September 30, 2026. Audits for subsequent years will be audited thereafter. Name of Responsible Person: Chris Steinbruner, CPA Questioned Cost: None Chris Steinbruner, CPA MCBC Board Member (831)-222-6111
Finding 1229908 (2023-003)
Material Weakness 2023
RAP INC
DC
U.S. Department of Housing and Urban Development 2023-003 Material Weakness in Internal Control over Compliance 14.218 – Community Development Block Grant District of Columbia, Department of Housing and Community Development Contract Number: 2019-009 and 2010-38 Condition: The $200,000 predevelopmen...
U.S. Department of Housing and Urban Development 2023-003 Material Weakness in Internal Control over Compliance 14.218 – Community Development Block Grant District of Columbia, Department of Housing and Community Development Contract Number: 2019-009 and 2010-38 Condition: The $200,000 predevelopment and $3,800,000 construction loans from the District of Columbia Department of Housing and Community Development were financed with federal funding. Management and the prior auditors were not previously aware of the federal funding source, and the loan had not been evaluated for applicable federal compliance requirements under OMB Circular A-133 or the Uniform Guidance since the inception of the agreement. Recommendation: We recommend that management implement a formal process to review all loan, grant, and financing agreements to determine whether funding is derived from federal sources and whether the arrangement is subject to federal compliance or single audit requirements. This review should be performed at inception of each agreement and updated at least annually, with documentation maintained in the Organization’s debt and contract repository and reviewed by personnel responsible for compliance and financial reporting. Explanation of Disagreement with Audit Finding There is no disagreement with the audit finding. Action taken in response to finding: In addition to the steps mentioned in the related finding above (2023-002), management has also engaged CliftonLarsonAllen LLP to catch up with any official disclosures related to this issue including single audit compliance and any related or resulting compliance disclosures remaining to be completed. Name of the contact person responsible for corrective action: Dr. Deja Gilbert, PhD, MBA, FACHE, LPC, LMHC, President and CEO - dgilbert@gaudenzia.org Planned completion date for corrective action plan: December 31, 2026
Reporting - Deadline for Federal Single Audit - Noncompliance and Material Weakness in Internal Control Over Compliance Corrective Action Plan: The Municipality has begun strengthening year-end financial reporting and audit planning through formal close schedules, defined responsibilities, milestone...
Reporting - Deadline for Federal Single Audit - Noncompliance and Material Weakness in Internal Control Over Compliance Corrective Action Plan: The Municipality has begun strengthening year-end financial reporting and audit planning through formal close schedules, defined responsibilities, milestone tracking, enhanced interdepartmental coordination, and increased management oversight to support the timely completion of future Federal Single Audits. Management will evaluate the effectiveness of these improvements through completion of a full audit cycle. Anticipated Completion Date June 30, 2027
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