Corrective Action Plans

Finding 5741 (2023-001)

Material Weakness 2023

IL

Questioned Costs Student Financial Aid Cash Management

CORRECTIVE ACTION PLAN Finding No. 2023-01: Credit Card was not reconciled and receipts were not obtained. Expenses were not properly recorded in the general ledger. Recommendation: Management should reconcile credit card accounts monthly and secure receipts for purchases and expenses should be post...

CORRECTIVE ACTION PLAN Finding No. 2023-01: Credit Card was not reconciled and receipts were not obtained. Expenses were not properly recorded in the general ledger. Recommendation: Management should reconcile credit card accounts monthly and secure receipts for purchases and expenses should be posted to the proper general ledger account. Action Taken or Planned: Credit card accounts will be reconciled and receipts will be requested for purchases. Accounting will review the nature of purchases and properly post to the general ledger. Responsible Person: Mary Amador, Property Manager Completion Date: October 31, 2023

View Audit 7824 Questioned Costs: $1

Finding 5733 (2023-001)

Significant Deficiency 2023

Health First, Inc.

FL

Questioned Costs Allowable Costs / Cost Principles Reporting § 200.303

Management utilized the HRSA FAQ guidelines and interpreted the reporting guidance, to the best extent possible, based on how it was presented. The reporting guidance was somewhat convoluted; however, Management acknowledges the overstatement amounting to $723,754 and the fact that the error does no...

Management utilized the HRSA FAQ guidelines and interpreted the reporting guidance, to the best extent possible, based on how it was presented. The reporting guidance was somewhat convoluted; however, Management acknowledges the overstatement amounting to $723,754 and the fact that the error does not jeopardize the PRF amount received. Management will support staff in continuing professional education, specifically tied to Yellow book training. Furthermore, management will hire a subject matter expert and/or organically facilitate the creation of this expertise within the existing talent pool. Contact individual responsible for the corrective action plan is Kimberly Myers, Director of Accounting and Financial Reporting.

View Audit 7792

Finding 5728 (2023-001)

Significant Deficiency 2023

Fourth Street Senior Citizen Housing Corporation

CA

Questioned Costs Subrecipient Monitoring HUD Housing Programs

Current Findings on the Schedule of Findings, Questioned Costs, and Recommendations Comments on Finding and Each Recommendation: During the year ended June 30, 2023, an unauthorized withdrawal in the amount of $689 was made from the reserve for replacements account. The Corporation should transfer ...

Current Findings on the Schedule of Findings, Questioned Costs, and Recommendations Comments on Finding and Each Recommendation: During the year ended June 30, 2023, an unauthorized withdrawal in the amount of $689 was made from the reserve for replacements account. The Corporation should transfer funds from the operating cash account in order to reimburse the reserve for replacements account for the unauthorized withdrawal. Action(s) taken or planned on the finding: Management concurs with the finding and recommendation. On July 28, 2023, the Corporation transferred $689 from the operating cash account to reimburse the reserve for replacements account for the unauthorized withdrawal.

View Audit 7755 Questioned Costs: $1

Finding 5718 (2023-001)

None 2023

Lansing Elementary School District No. 158

IL

Reporting Subrecipient Monitoring

Condition: The School District did not comply with the requirements of filing period and quarterly reports by the due dates set by ISBE. Plan: Management will review its policies and procedures and implement changes to strengthen internal control over financial reporting. Anticipated Date of Complet...

Condition: The School District did not comply with the requirements of filing period and quarterly reports by the due dates set by ISBE. Plan: Management will review its policies and procedures and implement changes to strengthen internal control over financial reporting. Anticipated Date of Completion: June 30, 2024 Name of Contact Person: Mark Crotty, Assistant Superintendent for Business and Operations, CSBO Management Response: Management will work together with staff to verify that reporting deadlines are met moving forward.

View Audit 7732

Finding 5704 (2023-002)

Significant Deficiency 2023

Afiya Apartments INC

OR

Questioned Costs HUD Housing Programs Reporting

Management’s Response and Planned Corrective Actions: 1. The name of the contact person(s) responsible for the corrective action a. Kathleen Broadhurst, Sr. Director of Finance/ShelterCare 2. The corrective action planned: a. ShelterCare, as managing agent, has hired a new property accountant which ...

Management’s Response and Planned Corrective Actions: 1. The name of the contact person(s) responsible for the corrective action a. Kathleen Broadhurst, Sr. Director of Finance/ShelterCare 2. The corrective action planned: a. ShelterCare, as managing agent, has hired a new property accountant which should help with keeping the books current and ShelterCare prepared to start audit work mid-July and be ready to submit the audit to HUD within 90 days of the fiscal year end. 3. The anticipated completion date: a. New property accountant was hired in August of 2023.

View Audit 7706

Finding 5693 (2023-001)

Significant Deficiency 2023

Buena Vista University

IA

Student Financial Aid Reporting Matching / Level of Effort / Earmarking

2023 Corrective Action Plan Finding Reference Number 2023-001 Contact person - Stephanie Wilhelm, Registrar Cause - Management oversite during a status update report submission Current Status - All student enrollment statuses from spring 2023 semester has been reviewed and corrected as needed. All s...

2023 Corrective Action Plan Finding Reference Number 2023-001 Contact person - Stephanie Wilhelm, Registrar Cause - Management oversite during a status update report submission Current Status - All student enrollment statuses from spring 2023 semester has been reviewed and corrected as needed. All students that graduate at mid semester will be reviewed individually to ensure that they are not re-reported as enrolled after degree completion. We have also updated our conferring process to add a status flag to ensure the graduated status is sent to NSC-NSLDS for updates. For those students that begin our graduate program immediately after completing the undergraduate program, they will be managed individually for reporting mid-stream until the new term begins. Views of Responsible Officials and Planned Corrective Action - the software cause of the re-reportig of graduated students as enrolled has not been determined. All mid-term graduate prior to March 2023 worked correctly and those that graduated July 2023 all worked correctly. Reports have been created for mid-term graduates and students begining another program immediately after degree completion. Anticipated Completion Date - Already completed and ongoing.

View Audit 7684

Finding 5690 (2023-001)

Material Weakness 2023

Mary Free Bed Rehabilitation Hospital

MI

Questioned Costs Material Weakness Reporting

While the total revenue amounts reported by the Organization were accurate, there were two quarters (the third and fourth quarters of calendar year 2021) where the amounts identified for individual payors were not correct by offsetting amounts. The Organization's controls in place for reporting subm...

While the total revenue amounts reported by the Organization were accurate, there were two quarters (the third and fourth quarters of calendar year 2021) where the amounts identified for individual payors were not correct by offsetting amounts. The Organization's controls in place for reporting submissions ensured that the grand totals for each quarter were correct, but did not identify that individual payor amounts were correct. Planned Corrective Action: The Organization agrees with this finding. The Organization will implement and document a secondary level of review prior to all submissions to ensure submitted amounts agree back to supporting documentation. Contact person responsible for corrective action: Nate Guzman, Controller Anticipated Completion Date: 12/6/2023

View Audit 7648

Finding 5679 (2023-002)

Significant Deficiency 2023

Lodi School District

WI

Reporting Internal Control / Segregation of Duties

Management Views – Management agrees with the finding and the recommendation. Corrective Action Planned - Management and the Board will continue to designate competent staff to oversee and review the financial reports and approve them before issuance. However, it is not feasible or cost effective to...

Management Views – Management agrees with the finding and the recommendation. Corrective Action Planned - Management and the Board will continue to designate competent staff to oversee and review the financial reports and approve them before issuance. However, it is not feasible or cost effective to add staff with the competence to prepare these reports. Anticipated Completion Date – This action will be ongoing.

View Audit 7623

Finding 5676 (2023-002)

None 2023

Auburn Community Unit School District #10

IL

Questioned Costs Cash Management Reporting

Action Steps: The District will focus on a greater accountability through check and balance procedures. Both the grant writer and the superintendent review the expenditure reports prior to submitting to ISBE. After the expenditure reports have been submitted and approved by ISBE, they will be revi...

Action Steps: The District will focus on a greater accountability through check and balance procedures. Both the grant writer and the superintendent review the expenditure reports prior to submitting to ISBE. After the expenditure reports have been submitted and approved by ISBE, they will be reviewed post-approval for accuracy. Contact Person(s): Amy Donaldson, Grant Writer Darren Root, Superintendent Anticipated Completion Date: Immediately. December 31, 2023

View Audit 7588 Questioned Costs: $1

Finding 5674 (2023-001)

Significant Deficiency 2023

Auburn Community Unit School District #10

IL

Questioned Costs Cash Management Reporting

Action Steps: The district has hired a new food service director who has taken measures to implement a more accurate record-keeping system, which includes Accu-Claim, as recommended by ISBE. The new system provides a more detailed daily report. Also, the cashiers at the point of sale have been ret...

Action Steps: The district has hired a new food service director who has taken measures to implement a more accurate record-keeping system, which includes Accu-Claim, as recommended by ISBE. The new system provides a more detailed daily report. Also, the cashiers at the point of sale have been retrained so that the recording and reporting is accurate. Contact Person(s): Kala Dudley, Food Service Director Ruby Howard, Unit Office Secretary Darren Root, Superintendent Anticipated Completion Date: December 31, 2023

View Audit 7588 Questioned Costs: $1

Finding 5669 (2023-002)

Significant Deficiency 2023

Millington Community Schools

MI

School Nutrition Programs Internal Control / Segregation of Duties Questioned Costs

Recommendation: The District should put into place internal controls to ensure all steps of verification are completed by program management, including secondary review of the free and reduced rosters after the verification process has been completed. Action to be taken: The District concurs with th...

Recommendation: The District should put into place internal controls to ensure all steps of verification are completed by program management, including secondary review of the free and reduced rosters after the verification process has been completed. Action to be taken: The District concurs with the finding and will implement a review process to ensure students selected for the verification process are changed to the proper status. Additionally, the District will retain the proper documentation to support the verification process.

View Audit 7586

Finding 5629 (2023-002)

Significant Deficiency 2023

Achievement First Brooklyn Charter Schools

CT

Reporting Allowable Costs / Cost Principles Cash Management § 200.405

Audit Finding Reference: 2023-002 – COVID-19 Education Stabilization Fund - Elementary and Secondary School Emergency Relief Fund – Assistance Listing Number #84.425D Planned Corrective Action: We will add a field to our payroll reports to identify within the system ESSER related salaries and wa...

Audit Finding Reference: 2023-002 – COVID-19 Education Stabilization Fund - Elementary and Secondary School Emergency Relief Fund – Assistance Listing Number #84.425D Planned Corrective Action: We will add a field to our payroll reports to identify within the system ESSER related salaries and wages so we can compare those reports to our final payroll numbers. Name of Contact Person: Jennifer Rhoads Sr. Director of Accounting Jenniferrhoads@achievementfirst.org Anticipated completion date: November 16, 2023

View Audit 7527

Finding 5627 (2023-002)

Significant Deficiency 2023

County of Fairfax, Virginia

VA

HUD Housing Programs Eligibility Reporting § 200.303

Views of responsible officials and planned corrective actions: The Authority is working with Yardi, the software company that supports the Authority’s client management software, to provide standardized reports that can be used by managers to flag exceptions to requirements such as regular inspectio...

Views of responsible officials and planned corrective actions: The Authority is working with Yardi, the software company that supports the Authority’s client management software, to provide standardized reports that can be used by managers to flag exceptions to requirements such as regular inspections, and re-inspections within 30 days for units that fail due to non-life-threatening conditions. There are current limitations within the software that do not allow for a fully automated work flow, which then necessitates a highly manual process and more likelihood of human error. The Authority will also implement more internal controls at the management level; specifically with units that fail inspection. All failed inspections will be independently tracked to ensure that a re-inspection takes place within 30 days, and management will review reports of all failed inspections, at least weekly. Finally, the Inspections Supervisor will receive more training on the Authority’s abatement policies, so that units that fail and are not corrected within the corrective period are abated according to the Authority’s HCV Administrative Plan.

View Audit 7520

Finding 5617 (2023-004)

Material Weakness 2023

Sandhills Medical Foundation, Inc.

SC

Questioned Costs HUD Housing Programs Material Weakness

In Finding 2023-004, it was reported that the Provider Relief Fund report submitted to DHHS for Phase 4 funding contained incorrect data. The expenditures of the funding were reported in periods prior to the year ended May 31, 2022 when the funds were expended during the year ended May 31, 2022. Ma...

In Finding 2023-004, it was reported that the Provider Relief Fund report submitted to DHHS for Phase 4 funding contained incorrect data. The expenditures of the funding were reported in periods prior to the year ended May 31, 2022 when the funds were expended during the year ended May 31, 2022. Management recognizes the importance of complying with federal reporting guidelines. In response to Finding 2023-004, efforts will be made to ensure that reporting submitted to the DHHS is accurately completed. This will be implemented by the Chief Financial Officer and completed by December 31, 2023.

View Audit 7491

Finding 5613 (2023-003)

Significant Deficiency 2023

Independent School District No. 432 - Mahnomen

MN

Internal Control / Segregation of Duties Questioned Costs Reporting

Contact Person – Superintendent Jeff Bisek and Business Manager Jessica Gilbertson Corrective Action Plan - Will establish policy to document our process and review of the Impact Aid application. Completion Date – June 30, 2024

View Audit 7488

Finding 5611 (2023-002)

Material Weakness 2023

Argus Manor Association

WA

HUD Housing Programs Reporting Subrecipient Monitoring

Actions Taken or to be Taken: The Corporation has taken corrective action and has implemented policies and procedures for communicating rent changes to the compliance department for timely implementation and the accounting department for assessment of financial reporting impact. Whatever party rec...

Actions Taken or to be Taken: The Corporation has taken corrective action and has implemented policies and procedures for communicating rent changes to the compliance department for timely implementation and the accounting department for assessment of financial reporting impact. Whatever party receives the notification will be responsible for timely dissemination to the affected departments.

View Audit 7456

Finding 5610 (2023-003)

None 2023

Argus Manor Association

WA

HUD Housing Programs Reporting

Actions Taken or to be Taken: The Corporation has taken corrective action and has increased fidelity coverage to $1,000,000 which exceeds the HUD required amount.

View Audit 7456

Finding 5577 (2023-006)

Significant Deficiency 2023

New Athens Community Unit School District No. 60

IL

Reporting Questioned Costs

We recommend accounting for the difference in fiscal year and academic contract year when obligating funds to cover salaries.

View Audit 7417

Finding 5576 (2023-007)

Significant Deficiency 2023

New Athens Community Unit School District No. 60

IL

Reporting

We recommend that care is taken to ensure all reports are filed by their due dates.

View Audit 7417

Finding 5570 (2023-001)

None 2023

City of Oneida Housing Authority

NY

Reporting Internal Control / Segregation of Duties

CORRECTIVE ACTION: Management is in agreement with the auditor’s recommendations and has already implement procedures to correct the issue. The prior fee accountant has been terminated and a new fee accountant has been hired. If there are questions regarding this corrective action plan, please co...

CORRECTIVE ACTION: Management is in agreement with the auditor’s recommendations and has already implement procedures to correct the issue. The prior fee accountant has been terminated and a new fee accountant has been hired. If there are questions regarding this corrective action plan, please contact Mr. Robert Walters, Executive Director at (315) 363-8450.

View Audit 7403

Finding 5561 (2023-001)

Material Weakness 2023

Generacion Floreciente

UT

Questioned Costs Material Weakness Reporting

2023-A Budgetary Compliance Criteria: The Budgetary Compliance guidelines require the School to limit total expenditures, by fund, to the amounts appropriated in the final adopted budget. Condition: The School had total expenditures in the general fund that exceeded the final adopted budgeted amount...

2023-A Budgetary Compliance Criteria: The Budgetary Compliance guidelines require the School to limit total expenditures, by fund, to the amounts appropriated in the final adopted budget. Condition: The School had total expenditures in the general fund that exceeded the final adopted budgeted amounts. Cause: Total expenditures for the year ended June 30, 2023, exceeded the budgeted amount. This is due to the School exceeding budget primarily with instructional expenditures for salaries and benefits. Effect: Expenditures in excess of the final adopted budgeted amounts. Recommendation: We recommend that management ensures their final adopted budget amounts are sufficient to cover the total expenditures by fund. Management Response: Management agrees with this finding and plans to implement additional control procedures and training of personnel to ensure that expenditures by fund don’t exceed the final adopted budgeted amounts. 53

View Audit 7387

Finding 5543 (2023-001)

Significant Deficiency 2023

Educare of Washington, Dc

DC

Questioned Costs Reporting Internal Control / Segregation of Duties § 200.301

Views of Responsible Officials: Management agrees with the finding and the following action will be taken to improve the situation. Management will review and update the reporting tracker monthly to ensure all reports are submitted on time. To ensure additional controls, the reviewer of the tracker ...

Views of Responsible Officials: Management agrees with the finding and the following action will be taken to improve the situation. Management will review and update the reporting tracker monthly to ensure all reports are submitted on time. To ensure additional controls, the reviewer of the tracker will be independent of the report preparer. Name and Title of Responsible Official: Barbara Ledyard, Vice President of Finance and Administration Anticipated Completion Date: December 29, 2023

View Audit 7376

Finding 5538 (2023-004)

Significant Deficiency 2023

Unified School District No. 352

KS

Allowable Costs / Cost Principles Reporting

2023-004 Federal program Education Stabilization Fund - 84.425 Compliance requirements Activities Allowed and Unallowed, Allowable Costs and Cost Principles, and Reporting Condition During testing, we identified that amounts reported under the Special Education II award could not be fully substantia...

2023-004 Federal program Education Stabilization Fund - 84.425 Compliance requirements Activities Allowed and Unallowed, Allowable Costs and Cost Principles, and Reporting Condition During testing, we identified that amounts reported under the Special Education II award could not be fully substantiated with supporting documentation. Recommendation We recommend that the District save supporting documentation when preparing reports for submission, as well as review their controls to ensure that reports are submitted accurately. Comments on the Finding Recommendation In comparison with other federal programs that the District typically has activity for, the ESSER reporting was particularly challenging. After the last of the ESSER funding is spent and reported, the District does not anticipate this to be a problem in the future. Action Taken Moving forward, the District will watch amounts more closely, and a reconciliation of ESSER accounts will be completed for each reporting period.

View Audit 7362

Finding 5537 (2023-002)

Significant Deficiency 2023

Ave Maria University, Inc. and Subsidiaries

FL

Questioned Costs Subrecipient Monitoring Eligibility § 200.328 § 200.329

The University filed four quarterly HEERF reports for the year that accurately reflected the spending and accounting of federal funds. The report in question is the annual report, which, by its design (it cannot be saved prior to submission, and the only way to print it is to print a screen shot of ...

The University filed four quarterly HEERF reports for the year that accurately reflected the spending and accounting of federal funds. The report in question is the annual report, which, by its design (it cannot be saved prior to submission, and the only way to print it is to print a screen shot of each of the 48 pages) makes review before submission extremely difficult. There were literally hundreds of entries in this report, and there were three errors, each of which reflected information that was reported accurately in the quarterly reports posted on the University’s website. Despite the unfortunate design constraints, the University will endeavor to identify a practical way to conduct a review of the annual report before submission next spring. Anticipated Completion Date: Continuing Responsible Contact Person: Eugene L. Munin

View Audit 7341

Finding 5526 (2023-003)

None 2023

Los Angeles Christian Health Centers and Subsidiary

CO

Reporting Questioned Costs

Uniform Data System (UDS) Reporting Planned Corrective Action: Data analysts within the Information Technology Systems Department will retain all supporting documentation for data elements reported in future annual UDS report submissions. The IT Systems Department will also implement more standar...

Uniform Data System (UDS) Reporting Planned Corrective Action: Data analysts within the Information Technology Systems Department will retain all supporting documentation for data elements reported in future annual UDS report submissions. The IT Systems Department will also implement more standardized reporting tools to replace the Microsoft Access database that a former employee used to prepare 2022 UDS report visits. During the audit, the new data analyst employees could not locate nor replicate the supporting data for visits reported in the 2022 UDS report. Person Responsible for Corrective Action Plan: Joe Mendez, IT Systems Director Anticipated Date of Completion: February 15, 2024

View Audit 7288

Corrective Action Plans

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