Corrective Action Plans

Finding 51874 (2022-001)

None 2022

ME

Reporting Matching / Level of Effort / Earmarking

The Organization has created a policy to annually review the federal compliance supplement to ensure compliance and reporting requirements with federal programs. As additional federal funding is received the Organization will conduct a thorough review to maintain compliance with all programs.

View Audit 45041

Finding 51873 (2022-001)

Material Weakness 2022

Emanate Health and Affiliates

CA

Internal Control / Segregation of Duties Cash Management Reporting § 200.303

Finding 2022-001: Internal control deficiency and noncompliance over the calculation of lost revenues attributable to coronavirus. Condition: Emanate Health and Affiliates incorrectly reported lost revenues attributable to coronavirus in the HRSA PRF Reporting Portal (the ?Portal?) due to errors m...

Finding 2022-001: Internal control deficiency and noncompliance over the calculation of lost revenues attributable to coronavirus. Condition: Emanate Health and Affiliates incorrectly reported lost revenues attributable to coronavirus in the HRSA PRF Reporting Portal (the ?Portal?) due to errors made in the calculation of lost revenues which resulted in an overstatement of lost revenues of $8,123,440. Planned Corrective Action: In future reporting periods, management will add an additional layer of review of the lost revenue calculation before submission through the Portal. Through this review, management will ensure the lost revenue calculation is performed on a comparable basis which would include the same types of revenues being compared. Management will correct the lost revenues attributable to coronavirus in the next Portal submission, as applicable and ensure any other Portal submissions have the correct lost revenue calculation and is reported correctly. Contact Person: Leon Choiniere, Chief Financial Officer Anticipated Completion Date: September 29, 2023

View Audit 45038

Finding 51858 (2022-004)

Significant Deficiency 2022

American Jewish University

CA

Student Financial Aid Reporting Significant Deficiency

FINDING 2022-004 ? Special Tests and Provisions ? Enrollment Reporting: Significant Deficiency in Internal Control Over Compliance Condition/context: An exception was noted whereby the status change of 1 graduated student selected for testing was not reported to the NSLDS. Cause: Due to turnover in ...

FINDING 2022-004 ? Special Tests and Provisions ? Enrollment Reporting: Significant Deficiency in Internal Control Over Compliance Condition/context: An exception was noted whereby the status change of 1 graduated student selected for testing was not reported to the NSLDS. Cause: Due to turnover in the position responsible for performing the manual reporting process reporting was completed when the responsibility was assigned to a new employee. Corrective Action Plan: Due to significant turnover in the Financial Aid Office, management has outsourced its financial aid function to a third party. This partnership enables us to improve our attention to detail and increase our internal controls over compliance matters. Responsible person: Sarah Stooksberry / Cindy Farrington Planned completion date: Completed as of the date of this letter.

View Audit 43164

Finding 51844 (2022-002)

Significant Deficiency 2022

North Central University

MN

Reporting Significant Deficiency Internal Control / Segregation of Duties

2022-002 Various Recommendation: We recommend the University review its reporting procedures surrounding updating the ECAR to ensure reporting is accurate and completed. Views of responsible officials: There is no disagreement with the audit finding. Action taken in response to finding: : This find...

2022-002 Various Recommendation: We recommend the University review its reporting procedures surrounding updating the ECAR to ensure reporting is accurate and completed. Views of responsible officials: There is no disagreement with the audit finding. Action taken in response to finding: : This finding is linked to the reporting errors that many schools seem to be experiencing with their clearinghouse program length reporting. While our program length for a bachelor?s degree is 60 months, the average completion time nationally is 5 years. In order to eliminate errors with aid eligibility, the Registrar set up an automated process that assigns the Anticipated Graduation Date for 5 years from the initial term of entry. NCU has followed this same process for the past 20 years, and it has never raised any concerns. This is a simple time-saving process that eliminates the need to update the Anticipated Graduation date manually for each student who does not graduate within 4 years prior to running the monthly enrollment reports for NSC. As a member of many national organizations, we continue to monitor this reporting challenge as a university to try to reconcile how to report program length for aid eligibility and program length for clearinghouse compliance. In addition, a quality check process is being developed to ensure graduation dates or enrollment timelines are reported accurately to NSLDS. This work is being completed in tandem with our Registrar?s Office who reports to NSLDS through the National Clearinghouse. Name of the contact person responsible for corrective action Rachel Wendorf, Director of Student Financial Services Planned completion date for corrective action plan: In process

View Audit 42773

Finding 51829 (2022-001)

Material Weakness 2022

Monroe-Gregg School District

IN

Internal Control / Segregation of Duties Subrecipient Monitoring Material Weakness § 200.303

Contact Person Responsible for Corrective Action: Kelly Dillon Contact Phone Number: 317-996-3720 x1003 Views of Responsible Official: Monroe-Gregg School District concurs with the finding. Description of Corrective Action Plan: The Grant Administrator and one other person will each review and initi...

Contact Person Responsible for Corrective Action: Kelly Dillon Contact Phone Number: 317-996-3720 x1003 Views of Responsible Official: Monroe-Gregg School District concurs with the finding. Description of Corrective Action Plan: The Grant Administrator and one other person will each review and initial each progress and final grant report before submitting in order to ensure accuracy. Anticipated Completion Date: March 13, 2023

View Audit 47093

Finding 51826 (2022-101)

Material Weakness 2022

Pinal County Community College District

AZ

Subrecipient Monitoring Reporting Internal Control / Segregation of Duties § 200.303

Assistance Listings numbers and names: 84.425E COVID-19 Education Stabilization Fund?Higher Education Emergency Relief Fund (HEERF) Student Portion 84.425F COVID-19 Education Stabilization Fund?HEERF Institutional Portion Chris Wodka Anticipated completion date: March 31, 2023 The District agre...

Assistance Listings numbers and names: 84.425E COVID-19 Education Stabilization Fund?Higher Education Emergency Relief Fund (HEERF) Student Portion 84.425F COVID-19 Education Stabilization Fund?HEERF Institutional Portion Chris Wodka Anticipated completion date: March 31, 2023 The District agrees with the finding. The District will ensure that policies and procedures related to grant reporting are followed, including detailed reviews of reports that include financial information, to ensure accurate and timely reporting. The District will file updated reports with the U.S. Department of Education that agree with accounting records. The District will also make sure that our grant reporting schedule includes designated due dates for information that is required to be posted on our website and that proper communication of these deadlines is provided to all individuals involved in the process.

View Audit 47092

Finding 51819 (2022-103)

Significant Deficiency 2022

Pinal County Community College District

AZ

Student Financial Aid Special Tests & Provisions Reporting § 200.303

Cluster name: Student Financial Assistance Cluster Assistance Listings numbers and names: 84.007 Federal Supplemental Educational Opportunity Grants 84.033 Federal Work Study Program 84.063 Federal Pell Grant Program 84.268 Federal Direct Student Loans Chris Wodka Anticipated completion date: Jun...

Cluster name: Student Financial Assistance Cluster Assistance Listings numbers and names: 84.007 Federal Supplemental Educational Opportunity Grants 84.033 Federal Work Study Program 84.063 Federal Pell Grant Program 84.268 Federal Direct Student Loans Chris Wodka Anticipated completion date: June 30, 2023 The District agrees with the finding. The District worked with the SIS Vendor to improve the accuracy of Enrollment Reporting out of the SIS. Initial reviews of the reporting have been positive, however close monitoring will continue to ensure proper compliance.

View Audit 47092

Finding 51818 (2022-102)

Material Weakness 2022

Pinal County Community College District

AZ

Questioned Costs Reporting Special Tests & Provisions § 200.303

Cluster name: Student Financial Assistance Cluster Assistance Listings numbers and names: 84.007 Federal Supplemental Educational Opportunity Grants 84.033 Federal Work-Study Program 84.063 Federal Pell Grant Program 84.268 Federal Direct Student Loans Chris Wodka Anticipated completion date: Jun...

Cluster name: Student Financial Assistance Cluster Assistance Listings numbers and names: 84.007 Federal Supplemental Educational Opportunity Grants 84.033 Federal Work-Study Program 84.063 Federal Pell Grant Program 84.268 Federal Direct Student Loans Chris Wodka Anticipated completion date: June 30, 2023 The District agrees with the finding. After reviewing the student in the finding, the District re-processed the Return of Title IV calculation. The one student record was updated and resulted in an amount of $275 to be returned to the student by offsetting their current balance with the District. The District will fund the reimbursement with institutional funds. During the fiscal year ending June 30, 2023, the District continued to enhance the monitoring of refunds processed. The District plans to begin exploring the use of the SIS to calculate Return to Title IV based on compliance requirements. The District will continue to strengthen our policies and procedures surrounding Return to Title IV compliance requirements.

View Audit 47092 Questioned Costs: $1

Finding 51813 (2022-001)

Significant Deficiency 2022

Fort Calhoun Community Schools

NE

Internal Control / Segregation of Duties Reporting

Management Response and Planned Corrective Action: The School District Board recognizes the deficiencies in their internal control related to segregation of duties. They will continue to update, implement, and monitor their financial procedures, and take responsibility for their financial statements...

Management Response and Planned Corrective Action: The School District Board recognizes the deficiencies in their internal control related to segregation of duties. They will continue to update, implement, and monitor their financial procedures, and take responsibility for their financial statements. In view of cost considerations, adding personnel to address these deficiencies would not be practical.

View Audit 47089

Finding 51804 (2022-001)

Material Weakness 2022

Harbor House, Incorporated of Fort Smith, Arkansas

AR

Reporting

All possible efforts are made to assure that adequate control is in place over the preparation of the Schedule of Expenditures of Federal Awards. The budget for each Federal award is incorporated into the overall budget for the Organization. The Organization uses program financials to review program...

All possible efforts are made to assure that adequate control is in place over the preparation of the Schedule of Expenditures of Federal Awards. The budget for each Federal award is incorporated into the overall budget for the Organization. The Organization uses program financials to review programs on a monthly basis to ensure expenses are allocated appropriately.

View Audit 44919

Finding 51770 (2022-003)

Material Weakness 2022

Millsap Independent School District

TX

Cash Management Reporting Internal Control / Segregation of Duties

Millsap ISD will implement a system of internal controls to mitigate the possibility of claim duplication for all federal funding sources. The following are the steps Millsap ISD will implement. ? The CFO will keep track of expenses in all federal funds and will submit for reimbursement every quart...

Millsap ISD will implement a system of internal controls to mitigate the possibility of claim duplication for all federal funding sources. The following are the steps Millsap ISD will implement. ? The CFO will keep track of expenses in all federal funds and will submit for reimbursement every quarter. ? Prior to requesting reimbursement, the CFO will print a year-to-date report from Ascender demonstrating quarterly expenses minus prior reimbursements. ? The total expense report, utilized to verify request for reimbursement, will be confirmed by the CFO and Assistant Superintendent with signatures, dates, and times. ? Upon verification, the CFO will request federal reimbursement. ? After receiving and posting requested funds, the CFO will compare expense and income on the as of date to confirm that more income than expenses have not been submitted for reimbursement.

View Audit 45223

Finding 51766 (2022-002)

Material Weakness 2022

Millsap Independent School District

TX

Cash Management Reporting Internal Control / Segregation of Duties

Millsap ISD will implement a system of internal controls to mitigate the possibly of claim duplication. The following are the steps Millsap ISD will implement. ? The Director of Child Nutrition will run the Monthly Claim report for each campus and a summary of the district for the month. ? The Dire...

Millsap ISD will implement a system of internal controls to mitigate the possibly of claim duplication. The following are the steps Millsap ISD will implement. ? The Director of Child Nutrition will run the Monthly Claim report for each campus and a summary of the district for the month. ? The Director of Child Nutrition will review these reports for unreconciled meals, missing data, and possible errors. ? After review of the reports, the Director of Child Nutrition will enter the claim data by site, based on eligibility in TX-UNPS as it is reported in the Point of Sale (POS) system. As the Director of Child Nutrition enters and verifies the data for each site in the TX-UNPS claim system, the data is aggregated and will be verified for accuracy to the district summary report from the Point of Sale. ? The monthly claim report for the POS system will be printed, and attached to the claim for reimbursement summary showing site details from the TX-UNPS claim system. ? The Director of Child Nutrition will verify that the data entered for the Claim for Reimbursement match the data from the monthly claim report and sign off with date and time that it is correct. ? This document will be given to the CFO, who will verify it as well with signature, date, and time. ? If discrepancies are found, a revised claim may be filed with the state within 60 days of the last day of the claimed month.

View Audit 45223

Finding 51764 (2022-001)

None 2022

Pittsburgh Institute of Aeronautics

PA

Allowable Costs / Cost Principles Reporting Equipment & Real Property Management

FINDING 2022-001: INSTITUTIONAL PORTION QUARTERLY REPORTING Condition For the quarterly Institutional Portion reports posted to the Institution?s website, there were discrepancies between the amounts reported in the Funds Expended Categories and the supporting documentation provided by the Instituti...

FINDING 2022-001: INSTITUTIONAL PORTION QUARTERLY REPORTING Condition For the quarterly Institutional Portion reports posted to the Institution?s website, there were discrepancies between the amounts reported in the Funds Expended Categories and the supporting documentation provided by the Institution. Cause The quarterly reports originally posted to the Institution?s website were deemed to be incorrect based on the accounting records and supporting documentation provided by the Institution. The 9/30/2021 and 12/31/2021 quarterly institution reports did not reflect the expenditures in the proper categories. Corrective Action PIA re-evaluated the expenses for recategorization and updated quarterly reports on the website (https://pia.edu/cares-act-details/). Moving forward, PIA will ensure proper categorization in realtime during the reporting periods.

View Audit 45219

Finding 51762 (2022-001)

Material Weakness 2022

The Harry and Jeanette Weinberg Woods, Inc.

MD

Eligibility HUD Housing Programs Subrecipient Monitoring

Finding 2022-1 a. Comments on the Finding and Each Recommendation Management agrees with the finding. b. Action(s) Taken or Planned on the Finding In 2022 we hired additional oversight staff at the corporate level and changed the procedure for reviewing and approving annual certifications as well as...

Finding 2022-1 a. Comments on the Finding and Each Recommendation Management agrees with the finding. b. Action(s) Taken or Planned on the Finding In 2022 we hired additional oversight staff at the corporate level and changed the procedure for reviewing and approving annual certifications as well as monitoring EIV reporting. We have implanted new EIV procedures to ensure timely EIV reporting. All HUD staff has been trained on the new procedures.

View Audit 45216

Finding 51752 (2022-001)

Material Weakness 2022

The Science Center of Iowa

IA

Reporting Internal Control / Segregation of Duties

Science Center management, including the CFO and CEO, agrees with the need to migrate the Organization?s internal financial statements to comply with GAAP accounting. Steps have been taken to convert from a cash to accrual basis of accounting and we are in the process of hiring an outside consultant...

Science Center management, including the CFO and CEO, agrees with the need to migrate the Organization?s internal financial statements to comply with GAAP accounting. Steps have been taken to convert from a cash to accrual basis of accounting and we are in the process of hiring an outside consultant to assist us with setting up procedures and documentation.

View Audit 40787

Finding 51734 (2022-005)

Material Weakness 2022

Genesee County, Michigan

MI

Subrecipient Monitoring Material Weakness Reporting

Finding Number: 2022-005 Condition: The County did not file the required FFATA reports for HSC and HSI subrecipients. Planned Corrective Action: The County staff implemented a process to collect the data that is required for reporting from each subrecipient and to ensure that the reports are filed t...

Finding Number: 2022-005 Condition: The County did not file the required FFATA reports for HSC and HSI subrecipients. Planned Corrective Action: The County staff implemented a process to collect the data that is required for reporting from each subrecipient and to ensure that the reports are filed timely each year. Contact person responsible for corrective action: Chrystal Simpson, CFO Anticipated Completion Date: 6/30/2023

View Audit 40786

Finding 51722 (2022-001)

Material Weakness 2022

Essex of Waunakee, Inc.

IL

Reporting Matching / Level of Effort / Earmarking

Name of Auditee: ESSEX OF WAUNAKEE, INC. HUD Auditee Identification Number: 075-11257 Name of Audit Firm: Haran & Associates Ltd. Period Covered by the Audit: Year ended December 31, 2022 CAP Prepared by: Rich Gonzalez Current Findings: Finding 2022-1: Reporting Views of Responsible Official: We con...

Name of Auditee: ESSEX OF WAUNAKEE, INC. HUD Auditee Identification Number: 075-11257 Name of Audit Firm: Haran & Associates Ltd. Period Covered by the Audit: Year ended December 31, 2022 CAP Prepared by: Rich Gonzalez Current Findings: Finding 2022-1: Reporting Views of Responsible Official: We concur with Finding 2022-1. The Corporation will submit the late filing as soon as possible. Action(s) Taken or Planned on the Finding: The Corporation has put in place internal controls to ensure the timely filing of the annual audit reporting package to the Federal Audit Clearinghouse. Status of Corrective Actions: Action to be completed in 2023.

View Audit 40784

Finding 51715 (2022-007)

Material Weakness 2022

City of Elkhart

IN

Internal Control / Segregation of Duties Material Weakness Reporting § 200.302 § 200.303 § 200.328 § 200.329

FINDING 2022-007 Contact Person Responsible for Corrective Action: Mary K. Kaczka, Assistant Director, Community Development Contact Phone Number: 574-322-4472 Views of Responsible Official: We concur with the finding. Description of Corrective Action Plan: Financial Reporting: Management has develo...

FINDING 2022-007 Contact Person Responsible for Corrective Action: Mary K. Kaczka, Assistant Director, Community Development Contact Phone Number: 574-322-4472 Views of Responsible Official: We concur with the finding. Description of Corrective Action Plan: Financial Reporting: Management has developed the following process to correct for the lack of evidence for review or approval for reports that are submitted: Staff responsible for preparing the report in IDIS and management responsible for review for accuracy and completeness will both sign appropriate documentation detail (PR 5 and PR 7, draw spread sheets, draw vouchers) supporting the Cash on Hand Report and the IDIS report. CDBG staff has consulted with HUD CPD staff for additional training on how to complete the PR 26 report. The training assisted staff in filing two (2) past due reports and resulted in changes to the reporting process utilized by staff. Performance Reporting: Management will address the performance reporting weaknesses by taking the following steps: The assistant director of community development will document the segregation of duties for the completion and submittal of the CAPER before submission to HUD. Documentation will consist of a clear and understandable workflow on City workpapers, and final submissions, evidenced by signature (ink or digital stamp), email string other generally acceptable audit trail. Additionally, as part of continuing education, CDBG staff participated in a workshop organized by our CDBG consultant this past June, 2023 to better understand the Section 3 reporting requirements. Special Reporting for Federal Funding Accountability and Transparency Act (FFATA): Management will address the weaknesses identified in Special Reporting for Federal Funding Accountability and Transparency (FFATA) by taking the following actions: Management will review and strengthen the current process in place for identification and timely submission of projects that qualify for FFATA reporting. Completed reports will show evidence of segregation of duty for completion, and review and approval. Anticipated Completion Date: August 31, 2023

View Audit 48532

Finding 51708 (2022-002)

Material Weakness 2022

Northeastern Technical College

SC

Allowable Costs / Cost Principles Reporting Internal Control / Segregation of Duties

2022-001. Financial Closeout and Reporting Name of Contact Person Responsible for the Corrective Action Plan: Bobby Boyd, Finance Director Corrective Action Plan: The College will implement the necessary controls and procedures to ensure that the College performs timely and accurate financial closeo...

2022-001. Financial Closeout and Reporting Name of Contact Person Responsible for the Corrective Action Plan: Bobby Boyd, Finance Director Corrective Action Plan: The College will implement the necessary controls and procedures to ensure that the College performs timely and accurate financial closeout procedures in order for the College to produce its monthly and annual financial statements. Anticipated Completion Date: Fiscal Year 2023 2022-002. Reporting Name of Contact Person Responsible for the Corrective Action Plan: Bobby Boyd, Finance Director Corrective Action Plan: The College will implement proper internal controls and procedures to ensure that all Uniform Guidance reporting requirements are met. Anticipated Completion Date: Fiscal year 2023

View Audit 43705

Finding 51634 (2022-001)

Material Weakness 2022

Neighborhood Place of Puna

HI

Internal Control / Segregation of Duties Reporting

Management?s Response and Corrective Action Plan For the Year ending June 30, 2022 Finding 2022-001 - Lack of Fiscal Oversight by a Trained Accountant due to staff transition, Assistance Listing 21.023 COVID 19 Emergency Rental Assistance Program Neighborhood Place of Puna concurs with Audit Finding...

Management?s Response and Corrective Action Plan For the Year ending June 30, 2022 Finding 2022-001 - Lack of Fiscal Oversight by a Trained Accountant due to staff transition, Assistance Listing 21.023 COVID 19 Emergency Rental Assistance Program Neighborhood Place of Puna concurs with Audit Finding 2022-001. FY 21-22 saw a transition in accounting staff. Neighborhood Place of Puna recognizes the need for additional training for current accounting staff as well as engagement with licensed accounting personnel to ensure correct accounting practices are followed. To this end, Neighborhood Place of Puna will undertake two actions in response to the Audit Finding 2022-001. 1. Neighborhood Place of Puna will identify additional training for current accounting staff. 2. Neighborhood Place of Puna will explore engaging licensed professional accounting personnel either through recruitment to the Board of Directors, or subcontracting, or hiring. Responsible Person: Paul Normann, Executive Directory Email address: paul@neighborhoodplace.org Anticipated Completion Date: Neighborhood Place of Puna Anticipates that the two elements of the Corrective Action Plan will be completed by June 30, 2023.

View Audit 48520

Finding 51576 (2022-001)

Material Weakness 2022

United Community Services, Inc.

IA

Reporting Subrecipient Monitoring Cash Management

Finding: 2022-001 Financial Reporting for Claim Reimbursement Our auditors identified that internal controls were not present to prevent incorrect claim submissions. Responsible Individual: Jen Pearson, Executive Director Corrective Action Plan: Management agrees with the finding, has reviewe...

Finding: 2022-001 Financial Reporting for Claim Reimbursement Our auditors identified that internal controls were not present to prevent incorrect claim submissions. Responsible Individual: Jen Pearson, Executive Director Corrective Action Plan: Management agrees with the finding, has reviewed procedures with the appropriate personnel. Date of Completion: June 30, 2023

View Audit 49653

Finding 51573 (2022-001)

Significant Deficiency 2022

Parc Community Homes, Inc. Project No. 072-Hd077

IL

Internal Control / Segregation of Duties Reporting Significant Deficiency

2022-001 Section 811 ? New Construction ? Capital Advance Program ? Supportive Housing for Persons with Disabilities ? CFDA No. 14.181 Recommendation: Responsibilities and duties should be segregated whenever possible. When this condition exists, management?s and the board?s close supervision and re...

2022-001 Section 811 ? New Construction ? Capital Advance Program ? Supportive Housing for Persons with Disabilities ? CFDA No. 14.181 Recommendation: Responsibilities and duties should be segregated whenever possible. When this condition exists, management?s and the board?s close supervision and review of accounting information can help to prevent or detect errors and irregularities. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action planned in response to finding: Because the number of staff is inadequate to fully segregate duties, we feel that management staff must have the ability to record disbursement transactions and reconcile bank accounts with the general ledger, particularly for training purposes and periods when there are staff vacancies. Financial resources are insufficient to hire the additional staff to allow for greater segregation of responsibilities. Name(s) of the contact person(s) responsible for corrective action: Debbie Congdon Planned completion date for corrective action plan: In process

View Audit 47322

Finding 51572 (2022-002)

None 2022

Greenville-Spartanburg Airport District

SC

Reporting

Views of Responsible Officials and Planned Corrective Action: Effective immediately, the Airport will follow all compliance reporting obligations per the letter of the grant rather than depend on the Federal Aviation Administration personnel counsel as Accounting was told that this particular report...

Views of Responsible Officials and Planned Corrective Action: Effective immediately, the Airport will follow all compliance reporting obligations per the letter of the grant rather than depend on the Federal Aviation Administration personnel counsel as Accounting was told that this particular report was not needed annually. The Senior Manager - Finance will be responsible for ensuring these reports are filed annually.

View Audit 43404

Finding 51569 (2022-002)

Material Weakness 2022

First Baptist Church Capitol Hill Homes, Inc. D/b/a Kelly Miller Smith Towers

TN

HUD Housing Programs Reporting Matching / Level of Effort / Earmarking

First Baptist Church Capitol Hill Homes, Incorporated d/b/a Kelly Miller Smith Towers HUD Project No. 086-EH003-L7-NP-WAH 2136 Cliff Drive Nashville, TN 37218 CORRECTIVE ACTION PLAN - continued February 23, 2023 Finding ? Item 2022-2 Reporting under Government Auditing Standards Finding ? Item 2...

First Baptist Church Capitol Hill Homes, Incorporated d/b/a Kelly Miller Smith Towers HUD Project No. 086-EH003-L7-NP-WAH 2136 Cliff Drive Nashville, TN 37218 CORRECTIVE ACTION PLAN - continued February 23, 2023 Finding ? Item 2022-2 Reporting under Government Auditing Standards Finding ? Item 2022-2 Major Federal Award Program Audit Department of Housing and Urban Development (HUD): Section 223(F) Insured Loan ? Federal Assistance Listing # 14.155 Section 8 Housing Assistance Payments ? Federal Assistance Listing # 14.195 Reporting Statement of Condition: The required Single Audits were not remitted to the Federal Audit Clearinghouse (FAC) within the earlier of 30 days after the the receipted of the auditors' reports or 9 months after the end of the audit periods for the fiscal years ended April 30, 2016 - April 30, 2020. Recommendation: We recommend that the required delinquent submissions of Single Audits be completed as soon as possible. Auditee Response: The Board of Directors and management will work with the auditors to submit and certify to the FAC the Single Audit Reporting Packages for the years ended April 30, 2022 and 2021 immediately upon issuance. This will be completed by May 31, 2023. The Audit Committee of the Board of Directors will insure that future Single Audit Reporting Packages for the year ending April 30, 2023 and beyond with be remitted in accordance with federal regulations. The Board of Directors and management will work with the prior auditors to insure that missing FAC submissions for the years ended April 30, 2020 and prior will be submitted and certified as applicable and in accordance with federal regulation. Weldon B. Kidd, Board Chairman First Baptist Church Capitol Hill Homes, Inc.

View Audit 41146

Finding 51568 (2022-001)

Material Weakness 2022

First Baptist Church Capitol Hill Homes, Inc. D/b/a Kelly Miller Smith Towers

TN

HUD Housing Programs Reporting Matching / Level of Effort / Earmarking

First Baptist Church Capitol Hill Homes, Incorporated d/b/a Kelly Miller Smith Towers HUD Project No. 086-EH003-L7-NP-WAH 2136 Cliff Drive Nashville, TN 37218 CORRECTIVE ACTION PLAN February 23, 2023 To the U. S. Department of Housing and Urban Development First Baptist Church Capitol Hill Homes...

First Baptist Church Capitol Hill Homes, Incorporated d/b/a Kelly Miller Smith Towers HUD Project No. 086-EH003-L7-NP-WAH 2136 Cliff Drive Nashville, TN 37218 CORRECTIVE ACTION PLAN February 23, 2023 To the U. S. Department of Housing and Urban Development First Baptist Church Capitol Hill Homes, Incorporated d/b/a Kelly Miller Smith Towers respectfully submits the following corrective action plan for the year ended April 30, 2021. Name and address of independent public accounting firm: Tabb & Tabb, LLC Certified Public Accountants 260 Peachtree Street, NW, Suite 1201 Atlanta, Georgia 30303 Audit Period: May 1, 2021 to April 30, 2022 The findings from the April 30, 2022 schedule of findings are discussed below. The findings are numbered consistently with the number assigned in the schedule. The Summary of Audit Results does not include findings and is not addressed. Finding ? Item 2022-1 Reporting under Government Auditing Standards Finding ? Item 2022-1 Major Federal Award Program Audit Department of Housing and Urban Development (HUD): Section 223(F) Insured Loan ? Federal Assistance Listing # 14.155 Section 8 Housing Assistance Payments ? Federal Assistance Listing # 14.195 Reporting Statement of Condition: The required annual audits of the financial statements for the years ended April 30, 2022 and April 30, 2021 were not completed and submitted to HUD within the time frame required by HUD. Recommendation: We recommend that all financial reporting and submission requirements and deadlines required by HUD be strictly adhered to for future periods. Auditee Response: The Kelly Miller Smith Towers Board of Directors engaged a new audit firm to conduct the delinquent audits for the years ended April 30, 2022 and 2021. Both audits have been completed and will be submitted to HUD by May 19, 2023. The Board of Directors has established an audit committee who will assure that the audit for the year ending April 30, 2023 and subsequent years' audits will be completed and remitted within HUD's required time frame.

View Audit 41146

Corrective Action Plans

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