Corrective Action Plans

Finding 372484 (2023-002)

Significant Deficiency 2023

ID

Questioned Costs Reporting Procurement, Suspension & Debarment § 200.303 § 200.502 § 200.510

Federal Program Title: Research and Development Cluster ALN: Various Recommendation: We recommend the University evaluate its cutoff procedures to ensure federal costs are identified and reported in the correct fiscal year. Explanation of disagreement with audit finding: There is no disagreement...

Federal Program Title: Research and Development Cluster ALN: Various Recommendation: We recommend the University evaluate its cutoff procedures to ensure federal costs are identified and reported in the correct fiscal year. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action planned/taken in response to finding: Boise State University will evaluate our cutoff and accrual procedures to ensure costs are identified and reported in the correct fiscal year. Name(s) of the contact person(s) responsible for corrective action: Jen Lutke, Assistant Director, Post Award: jenniferlutke@boisestate.edu Planned completion date for corrective action plan: June 2024

View Audit 293651 Questioned Costs: $1

Finding 372379 (2023-002)

Significant Deficiency 2023

Point University, Inc. and Subsidiaries

GA

Student Financial Aid Reporting Questioned Costs

NSLDS Enrollment Reporting (repeat) Finding: As noted in the audit report, there were 4 discrepancies found in 17 files in which student information reported to NSLDS was incorrect or untimely. • 2 students' status was incorrectly reported to NSLDS. • 1 student's enrollment effective date was not r...

NSLDS Enrollment Reporting (repeat) Finding: As noted in the audit report, there were 4 discrepancies found in 17 files in which student information reported to NSLDS was incorrect or untimely. • 2 students' status was incorrectly reported to NSLDS. • 1 student's enrollment effective date was not reported correctly to NSLDS. • 1 student's enrollment status change was not reported to NSLDS within 60 days. Auditors' Recommendation: The University should review their enrollment reporting policies and procedures to ensure accurate reporting. School Response: The school agrees with this finding and has initiated corrective action. Corrective Action Plan: There were two files in which NSLDS reporting errors were found. Student #12 was withdrawn per their school transcript effective 5/14/2023, however, the enrollment status was reported at NSLDS as Less Than Half Time as of 5/8/2023. Student #14 was in a Graduate status on their transcript but was reported as Withdrawn on NSLDS. Also, the student's status was reported 134 days after the status change event. Status changes must be reported to NSLDS within 60 days. The instances for this finding occurred during a time when there was a staffing change in the registrar's office and a new registrar had not yet transitioned into the position. Since this time, a new registrar, Natalie Brown-Motes, was hired, and the process has been reviewed with Assistant Registrar, Lara Ellison, to ensure that there is a back up plan if the registrar is unavailable to complete this process. Additionally, the school switched to a new Student Information System (SIS), Colleague, which was implemented beginning with the Fall semester 2023. The new SIS works with the National Student Clearinghouse enrollment reporting service. In order to ensure timely reporting, the registrar's office creates an enrollment report in Colleague each month. That report is transmitted to Clearinghouse which uses the information to update the enrollment data in NSLDS. If there are any possible errors that need to be reviewed, the registrar receives a report on Clearinghouse of any errors so they can be reviewed and approved or corrected. The error report must be completed within two weeks of receipt. Colleague only reports to Clearinghouse students who have actually registered for classes. Previously, enrolled students who had not registered were included in the report. This inclusion regularly generated additional errors. Since the new system improves the reporting process so only registered students are reported, there is less opportunity for error. Name(s) of the contact person(s) responsible for corrective action: University Registrar, Natalie BrownMotes and Assistant Registrar, Lara Ellison Planned completion date for corrective action plan: • New Colleague SIS implemented live beginning in the Fall semester 2023. • Training on National Student Clearinghouse process with Colleague completed September 23. • Began using Colleague system to report enrollment data to NSLDS through National Student Clearinghouse in September 2023.

View Audit 293636

Finding 372378 (2023-001)

Significant Deficiency 2023

Point University, Inc. and Subsidiaries

GA

Questioned Costs Student Financial Aid Reporting

Disbursement Dates (repeat) Finding: As noted in the audit report, there were three instances in 60 files in which there were discrepancies in disbursement dates. Disbursement dates recorded on student accounts for Direct Loan and Pell disbursements did not agree to the disbursement date reported t...

Disbursement Dates (repeat) Finding: As noted in the audit report, there were three instances in 60 files in which there were discrepancies in disbursement dates. Disbursement dates recorded on student accounts for Direct Loan and Pell disbursements did not agree to the disbursement date reported to Common Origination and Disbursement (COD). Auditors' Recommendation: The University should review their policies and procedures to ensure accurate reporting to COD. School Response: The University agrees with this finding and has initiated corrective action. Corrective Action Plan: Title IV disbursements must be posted to student accounts within 15 days of the funds drawdown. Also, the disbursement date per COD must match the disbursement date on the student account. There was one instance in which the Disbursement date for a Pell Grant was 10/10/2022 per COD and 10/19/2022 on the student's account. One instance had a disbursement date at COD as 2/16/2023 and at 2/15/2023 on the student's account. The third instance had a disbursement date of 1/25/23 at COD and 1/26/23 on the student's account. Each of these disbursements were posted in the old Student Information System (SIS), Anthology. The posting process that the school used under the previous system relied primarily on manual checks by employees in various departments in which reports could be sent to COD in which the posting dates did not match the COD dates. In order to avoid this finding in the future, the University has sought out and implemented a new Student Information System (SIS), Colleague, beginning with the 2023-24 award year. The school has also contracted with a third-party servicer, Financial Aid Services (FAS}, to assist with packaging students and completing the disbursement process. To disburse funds, the Director of Financial Aid Quality and Compliance or the representative from FAS runs a report in Colleague which pulls scheduled and approved financial aid disbursements for students who have met the enrollment criteria to receive those disbursements. The report goes to the student accounts office where the financial aid is posted to the student ledgers. Then it is transmitted to COD with the posted dates so that the dates reported to COD match the dates in the SIS. If there are any errors in the transmission, the Director of Financial Aid Quality and Compliance or the representative from FAS will review the rejected disbursements and make corrections to get them processed as quickly as possible. The accounting office submits the drawdown request to G-5 for the amount of the approved and posted financial aid. The new process in which the disbursement amounts and dates transmitted to COD match the disbursement amounts and dates posted to the students' ledgers is expected to ensure compliance in the future. Name(s) of the contact person(s) responsible for corrective action: Director of Financial Aid Quality and Compliance, Rachal Wortham Planned completion date for corrective action plan: • New Colleague SIS implemented live beginning in the Fall semester 2023. • Training on new disbursement process completed August 2023. • First disbursements approved using the new SIS done by Director of Financial Aid Quality and Compliance August 2023. • Review of disbursement process with FAS October 2023. • Follow up with Colleague team to review the process and work out any flaws February 2024.

View Audit 293636

Finding 372370 (2023-003)

None 2023

Carlsbad Municipal School District

NM

Subrecipient Monitoring Reporting School Nutrition Programs § 200.512

The filing of the Data Collection Form will be submitted by the required due date. In the prior year, the audit report was submitted after the Federal Audit Clearinghouse deadline. The current audit will be submitted with sufficient time to meet the Federal Audit Clearinghouse submission date requir...

The filing of the Data Collection Form will be submitted by the required due date. In the prior year, the audit report was submitted after the Federal Audit Clearinghouse deadline. The current audit will be submitted with sufficient time to meet the Federal Audit Clearinghouse submission date requirement. Responsible party(ies) for corrective action(s): Chief Financial Officer Corrective action(s) timeline: March 15, 2024

View Audit 293634

Finding 372326 (2023-003)

Significant Deficiency 2023

Carteret Board of Education

NJ

Questioned Costs Cash Management Reporting

The District will implement processes and procedures for the timely liquidation of all POs to ensure that expenditures are captured and are in agreement with the final federal grant expenditure report.

View Audit 293633

Finding 372314 (2023-005)

Significant Deficiency 2023

Dodge City Community College

KS

Student Financial Aid Reporting Matching / Level of Effort / Earmarking

Condition: We examined a sample of Title IV aid recipients to verify that information reported on the Enrollment Reporting roster file sent to the National Student Loan Data System (NSLDS) matched the student's academic files and found instances where students received Title IV aid during a semester...

Condition: We examined a sample of Title IV aid recipients to verify that information reported on the Enrollment Reporting roster file sent to the National Student Loan Data System (NSLDS) matched the student's academic files and found instances where students received Title IV aid during a semester but the status of withdrawn or graduate were not reported correctly or timely on the NSLDS Enrollment Reporting roster files sent during that semester. Criteria: Per the NSLDS Enrollment Reporting Guide, a school should report all students that NSLDS includes in its request to the school on a roster file. This includes timely and accurate reporting of the status of the student of withdrawn or graduate. Cause: The status of the students were not timely and accurately reported to NSLDS. Effect: Students could potentially not be placed in grace or repayment status when they should be. Perspective: There has been high turnover in the SFA department, including a time where there was not a Director in place. They have had interim Director who also left in December 2023. A new Director has been hired in January 2024 and has begun working on issues. Recommendation: We recommend that personnel in charge of enrollment reporting be diligent in reviewing the roster file to ensure that all appropriate students are shown and attendance changes are reported in a timely and accurate manner. Views of Responsible Officials and Planned Corrective Actions: Dodge City Community College staff involved in enrollment reporting to the NSLDS have reviewed the NSLDS Reporting Manual to better understand and accurately report the student's enrollment status. There has been high turnover in the SFA department, including a time where there was not a Director in place. The new Director came on in the fall of 2022 and then left in December 2023. The College is still working on fully implementing new procedures and catching up submissions.

View Audit 293624

Finding 372301 (2023-001)

None 2023

City of Revere

MA

Allowable Costs / Cost Principles Subrecipient Monitoring Reporting

Views of Responsible Officials and Planned Corrective Actions: Management agrees with the finding and will establish procedures to ensure compliance with guidelines and policies outlining the time and effort reporting and documentation requirements that department heads must adhere with to ensure co...

Views of Responsible Officials and Planned Corrective Actions: Management agrees with the finding and will establish procedures to ensure compliance with guidelines and policies outlining the time and effort reporting and documentation requirements that department heads must adhere with to ensure compliance with federal and state time and effort reporting requirements. Management will also implement proper training to ensure that the program managers fully understand the time and effort reporting requirements. Management intends to implement these procedures in fiscal 2024.

View Audit 293621

Finding 372298 (2023-001)

Material Weakness 2023

It Takes A Village to Feed One Child, INC

PA

Allowable Costs / Cost Principles Cash Management Reporting

To address Cost Efficacy, It Takes A Village To Feed One Chitd, Inc., we wilt imptement and utilize QBO moving forward, through obtaining an additionat license for QBO and taking onLine training classes to become more wetl versed and efficient through accredited and ticensed instructors. We witt use...

To address Cost Efficacy, It Takes A Village To Feed One Chitd, Inc., we wilt imptement and utilize QBO moving forward, through obtaining an additionat license for QBO and taking onLine training classes to become more wetl versed and efficient through accredited and ticensed instructors. We witt use best practices for internat controts through showing more evidence of QBO approvat routing for alt transactions, accounts payabte & receivabte, credit card reconcitiations. We wilt improve overatt checks and batances for supervision and staff, white team ing how to operate on a futt accrual tevet.

View Audit 293600

Finding 372297 (2023-004)

None 2023

North Dade Senior Citizens Housing Developement Corporation, Inc., Rsi

FL

HUD Housing Programs Questioned Costs Subrecipient Monitoring

FINDING No. 2023-004: Section 207/223(f) Mortgage Insurance for the Refinancing of Existing Multifamily Housing Projects, ALN 14.155 Recommendation: The Project should improve monitoring of the payroll disbursement process to ensure the appropriate approved wages are paid. Action Taken: Additio...

FINDING No. 2023-004: Section 207/223(f) Mortgage Insurance for the Refinancing of Existing Multifamily Housing Projects, ALN 14.155 Recommendation: The Project should improve monitoring of the payroll disbursement process to ensure the appropriate approved wages are paid. Action Taken: Additional payroll controls are being evaluated and implemented in 2024. This will include establishing procedures to ensure the completeness and accuracy of payroll and related oversight. If the audit Oversight Agency has questions regarding these plans, please call Irene Phillips at 954-835-9200. Sincerely yours, Irene Phillips, CFO Irene Phillips CFO

View Audit 293594 Questioned Costs: $1

Finding 372296 (2023-003)

None 2023

North Dade Senior Citizens Housing Developement Corporation, Inc., Rsi

FL

HUD Housing Programs Questioned Costs Reporting

FINDING No. 2023-003: Section 207/223(f) Mortgage Insurance for the Refinancing of Existing Multifamily Housing Projects, ALN 14.155 Recommendation: The Project should make sufficient monthly deposits to the escrow accounts in a timely manner. Action Taken: The shortfall was due to the property...

FINDING No. 2023-003: Section 207/223(f) Mortgage Insurance for the Refinancing of Existing Multifamily Housing Projects, ALN 14.155 Recommendation: The Project should make sufficient monthly deposits to the escrow accounts in a timely manner. Action Taken: The shortfall was due to the property insurance premium unexpectedly increasing by more than $170,000. The account was subsequently analyzed, and the monthly escrow deposit is now sufficient to cover the new rates.

View Audit 293594 Questioned Costs: $1

Finding 372295 (2023-002)

None 2023

North Dade Senior Citizens Housing Developement Corporation, Inc., Rsi

FL

HUD Housing Programs Reporting

FINDING No. 2023-002: Section 207/223(f) Mortgage Insurance for the Refinancing of Existing Multifamily Housing Projects, ALN 14.155 Recommendation: The Project should implement procedures to ensure that the correct amount is deposited into the replacement reserve account each month. Action Take...

FINDING No. 2023-002: Section 207/223(f) Mortgage Insurance for the Refinancing of Existing Multifamily Housing Projects, ALN 14.155 Recommendation: The Project should implement procedures to ensure that the correct amount is deposited into the replacement reserve account each month. Action Taken: Management nor the lender received the approved 9250 dated 06.06.2023 until 10.26.2023. Management will submit the retro amount of $174.84 in December 2023.

View Audit 293594

Finding 372294 (2023-001)

None 2023

North Dade Senior Citizens Housing Developement Corporation, Inc., Rsi

FL

HUD Housing Programs Eligibility Reporting

Oversight Agency for Audit, North Dade Senior Citizens Housing Development Corporation, Inc. respectfully submits the following corrective action plan for the year ended June 30, 2023. Name and address of independent public accounting firm: Bellows Associates, P.A., 5401 N University Drive, Suite ...

Oversight Agency for Audit, North Dade Senior Citizens Housing Development Corporation, Inc. respectfully submits the following corrective action plan for the year ended June 30, 2023. Name and address of independent public accounting firm: Bellows Associates, P.A., 5401 N University Drive, Suite 201, Coral Springs, Florida 33067. Audit period: July 1, 2022 through June 30, 2023 The findings from the June 30, 2023 schedule of findings and questioned costs are discussed below. The findings are numbered consistently with the numbers assigned in the schedule. SECTION III – FINDINGS AND QUESTIONED COSTS – MAJOR FEDERAL AWARD PROGRAMS AUDIT FINDING No. 2023-001: Section 207/223(f) Mortgage Insurance for the Refinancing of Existing Multifamily Housing Projects, ALN 14.155 Recommendation: The Project should implement procedures to ensure initial tenant income through EIV system and third-party documentation are verified in a timely manner, annual unit inspections are performed, and all required tenant documentation is complete and accurate. Action Taken: Monthly reminders are being sent to all managers to run their EIV reports for the month. In addition, random files are being reviewed by compliance to ensure EIV reports are pulled, unit inspections performed, and required documentation is complete and accurate.

View Audit 293594

Finding 372280 (2023-002)

Significant Deficiency 2023

Sweet Briar Institute

VA

Internal Control / Segregation of Duties Questioned Costs Reporting

Individuals Responsible for Corrective Action Plan Wanda Spradley, Director, Financial Aid Susan Kennon, Registrar Jennifer Sauer, AVP for Finance Corrective Action Plan: The college made every attempt to meet the myriad of requirements throughout the various HEERF funding periods, with ever cha...

Individuals Responsible for Corrective Action Plan Wanda Spradley, Director, Financial Aid Susan Kennon, Registrar Jennifer Sauer, AVP for Finance Corrective Action Plan: The college made every attempt to meet the myriad of requirements throughout the various HEERF funding periods, with ever changing forms and due dates. The quarterly report noted was the final reporting requirement for all HEERF funds received by the college. Since no further reports are required, there is no action taken. Anticipated Completion Date: N/A

View Audit 293553

Finding 372278 (2023-001)

Significant Deficiency 2023

Sweet Briar Institute

VA

Student Financial Aid Special Tests & Provisions Reporting

Individuals Responsible for Corrective Action Plan Wanda Spradley, Director, Financial Aid Susan Kennon, Registrar Jennifer Sauer, AVP for Finance Corrective Action Plan: The finding is related to required enrollment information being reported to National Student Loan Data System by the registr...

Individuals Responsible for Corrective Action Plan Wanda Spradley, Director, Financial Aid Susan Kennon, Registrar Jennifer Sauer, AVP for Finance Corrective Action Plan: The finding is related to required enrollment information being reported to National Student Loan Data System by the registrar’s office. The errors noted in 2023-001, as well as 2022-001, were primarily related to a lack of internal systems, staff, and expertise in the reporting requirements. A new registrar was hired September 2023, and much work has been done to increase staffing and technology support for the office. The administration is working with the registrar’s office to implement controls to reduce errors and improve timeliness. However, reporting requirements are rigorous, and there will always be challenges. With new systems only recently put in place and the staffing issues continuing in FY23-24, this finding may be noted again next year. Anticipated Completion Date: June 30, 2024

View Audit 293553

Finding 372273 (2023-001)

Significant Deficiency 2023

City of Independence, Missouri

MO

Subrecipient Monitoring Reporting Significant Deficiency

In recent years, due to staff turnover and a long period in between replacement, the City’s procedure for fulfilling FFATA reporting requirements has been missed. The City has already begun compiling the data for submission of the FFATA reporting for the 2023 year. We will work with resources from ...

In recent years, due to staff turnover and a long period in between replacement, the City’s procedure for fulfilling FFATA reporting requirements has been missed. The City has already begun compiling the data for submission of the FFATA reporting for the 2023 year. We will work with resources from the Federal Subaward Reporting System (FSRS) to get current with prior reporting years for which we may be obligated. Prior to submission, the reports will be reviewed and approved. The FFATA reporting will become a regular part of our process going forward now that we are adequately staffed.

View Audit 293550

Finding 372257 (2023-001)

Significant Deficiency 2023

Northwestern Health Sciences University

MN

Questioned Costs Student Financial Aid Reporting

Recommendation: We recommend reviewing the components of the enrollment roster file to ensure the correct effective date is reported correctly for both the "Campus Level" and "Program Level". Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action ta...

Recommendation: We recommend reviewing the components of the enrollment roster file to ensure the correct effective date is reported correctly for both the "Campus Level" and "Program Level". Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: Management agrees with the audit finding and will pull a sample of records each week after each NSC submission to ensure information has been passed onto NSLDS. Name of the contact person responsible for corrective action: Kris Ragozzino, Registrar Planned completion date for corrective action plan: Already in place.

View Audit 293548

Finding 372234 (2023-001)

Material Weakness 2023

Fayetteville Urban Ministry, Inc.

NC

Reporting

Management will review related policies and procedures and consider the use of an outsourced accountant to help provide expertise.

View Audit 293529

Finding 372227 (2023-001)

Significant Deficiency 2023

Housing Authority of the City of Galveston, Texas

TX

HUD Housing Programs Reporting Significant Deficiency

Housing Choice Vouchers - CFDA No. 14.871 - PIC Reporting Recommendation: The Authority should implement processes to ensure the HUD-50058's are submitted into the PIC system timely. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in r...

Housing Choice Vouchers - CFDA No. 14.871 - PIC Reporting Recommendation: The Authority should implement processes to ensure the HUD-50058's are submitted into the PIC system timely. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: The HUD-50058 submissions are done daily but there are exceptions where we find that some 50058's submitted do not return as an error later we notice that are not showing in PIC and have to be resubmitted. This has been reported to our field office and the PIC Help Desk with no resolution. Name(s) of the contact person(s) responsible for corrective action: Maria Godwin Planned completion date for corrective action plan: Ongoing

View Audit 293526

Finding 372191 (2023-001)

Material Weakness 2023

Black Hills Community Economic Development, Inc.

SD

Reporting Internal Control / Segregation of Duties

Finding No. 2023-001: Financial Statement and Schedule of Expenditures of Federal Awards (SEFA) Preparation Responsible Individuals: Fran White, Executive Director Corrective Action Plan: The Organization has accepted the risk associated with the finding regarding the preparation of the financial st...

Finding No. 2023-001: Financial Statement and Schedule of Expenditures of Federal Awards (SEFA) Preparation Responsible Individuals: Fran White, Executive Director Corrective Action Plan: The Organization has accepted the risk associated with the finding regarding the preparation of the financial statements, and will continue to have the independent auditor prepare the annual financial statements. Anticipated Completion Date: Ongoing

View Audit 293513

Finding 372168 (2023-001)

None 2023

Hesperia Unified School District

CA

Questioned Costs Subrecipient Monitoring Reporting § 200.19

Going forward, we plan to implement robust policies and procedures to ensure the proper documention is obtained and maintained for each student who is removed from the adjusted cohort. This will involve establishing clear guidelines for confirming student transfers and ensuring that official written...

Going forward, we plan to implement robust policies and procedures to ensure the proper documention is obtained and maintained for each student who is removed from the adjusted cohort. This will involve establishing clear guidelines for confirming student transfers and ensuring that official written documentation is obtained and retained accordingly. Furthermore, we will conduct trainging sessions for relevant staff members involved in the documentation process to ensure understanding and adherence to the updated procedures. THis will help prevent similar issues from arising in the future and contribute to the accuracy and reliability of our graduation rate calculations.

View Audit 293449

Finding 372133 (2023-002)

Material Weakness 2023

Lutheran Community Services Northwest

WA

Matching / Level of Effort / Earmarking Questioned Costs Material Weakness

Finding 2023‐002 Material weakness in internal controls over compliance for earmarking and material noncompliance for earmarking in the U.S. Refugee Admissions Program. Contact Person(s): Nicholas Lee, Chief Financial Officer Corrective action planned: The accounting team will work alongside the pro...

Finding 2023‐002 Material weakness in internal controls over compliance for earmarking and material noncompliance for earmarking in the U.S. Refugee Admissions Program. Contact Person(s): Nicholas Lee, Chief Financial Officer Corrective action planned: The accounting team will work alongside the program management to develop and maintain a client tracker. Monthly meetings will be established to review spend, and resolve any questions. The client tracker will be established for the entire FYE June 30, 2024, and completed by August 31, 2024. The meetings will be established prior to the FYE June 30, 2024. Anticipated completion date: August 31, 2024

View Audit 293446

Finding 372132 (2023-003)

Significant Deficiency 2023

Western New Mexico University

NM

Subrecipient Monitoring Reporting

The quarterly closing checklist will include required reporting to be verified by the Accounting Manager and Executive Director of Accounting no later than 30days after the end of the quarter. Quarterly grant meetings will be held to maintain quarterly progress reporting.

View Audit 293430

Finding 372131 (2023-002)

Significant Deficiency 2023

Western New Mexico University

NM

Student Financial Aid Reporting Matching / Level of Effort / Earmarking

Enrollment certifications will be sent to the National Student Clearninghouse on a monthly basis, no later than 10 days following the end of the month. The final degree file will be submitted no later than 30 days after the last day of class, with additional awards submitted individually. The Financ...

Enrollment certifications will be sent to the National Student Clearninghouse on a monthly basis, no later than 10 days following the end of the month. The final degree file will be submitted no later than 30 days after the last day of class, with additional awards submitted individually. The Financial Aid Director will review all NSLDS errors.

View Audit 293430

Finding 372130 (2023-002)

None 2023

Doane University

NE

Student Financial Aid Questioned Costs Matching / Level of Effort / Earmarking

Doane has reviewed the finding and is researching ways to improve the process.

View Audit 293420

Finding 372115 (2023-002)

Significant Deficiency 2023

Houston Recovery Center, Lgc

TX

Cash Management Reporting Significant Deficiency

Finding #2023-002 – Significant Deficiency and Other Noncompliance. Applicable federal programs: U. S. Department of Treasury, Assistance Listing #21.027, COVID-19 Coronavirus State and Local Fiscal Recovery Funds, Passed through Harris County, Texas, Contract #220163, Contract year: 12/01/22 – 12...

Finding #2023-002 – Significant Deficiency and Other Noncompliance. Applicable federal programs: U. S. Department of Treasury, Assistance Listing #21.027, COVID-19 Coronavirus State and Local Fiscal Recovery Funds, Passed through Harris County, Texas, Contract #220163, Contract year: 12/01/22 – 12/31/24, U. S. Department of Health and Human Services:, Assistance Listing #93.243, Substance Abuse and Mental Health Services Projects of Regional and National Significance, Contract #5H79TI080624-03, Contract year: 09/30/21 – 09/29/22, Contract #5H79TI080624-04, Contract year: 09/30/22 – 09/29/23, Passed through the City of Houston Health Department, Contract #H79SP080300, Contract years: 11/01/21 – 10/31/22, 11/01/22 – 10/31/23 and 06/08/21 – 06/30/23, Assistance Listing #93.788, Opioid STR, Passed through the Texas Health and Human Services Commission, Contract #HHS000357900001, Contract years: 09/01/21 – 08/31/22 and 09/01/22 – 08/31/23, Passed through the University of Texas Health Science Center, San Antonio, Contract #HHS000561800001, Contract year: 09/01/21 – 08/31/22, Assistance Listing #93.959, Block Grants for Prevention and Treatment of Substance Abuse, Passed through the Texas Health and Human Services Commission, Contract #HHS000130500019, Contract years: 09/01/21 – 08/31/22 and 09/01/22 – 08/31/23. Condition and context: Houston Recovery Center is required to submit monthly reimbursement requests for five of its federal programs; one program requires reimbursement requests based on achievement of certain milestones rather than time. Out of a sample of 17 requests, we found six did not have evidence of review and approval as required by Houston Recovery Center’s policies and procedures. Recommendation: Training should be provided to ensure that policies and procedures regarding independent review and approval are followed. Planned corrective action: Houston Recovery Center will strengthen its internal control policies and procedures over independent review and approval of grant payment requests by shifting the primary review and approval process from the Chief Executive Officer (CEO) to the Chief Operating Officer (COO). The COO has full knowledge of allowable costs and has more availability than the CEO, which will make it easier to ensure that our policies and procedures are followed on a consistent basis. The CEO will continue in this role as backup to the COO to ensure immediate access for needed approval. We believe we have a strong system in place used by our accounting department to ensure all expenses underlying the grant payment requests are reviewed, checked for accuracy, and properly approved which further supports the reimbursement policies and procedures. Responsible officer: Leonard Kincaid, Executive Director. Estimated completion date: November 1, 2023.

View Audit 293417

Corrective Action Plans

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