Corrective Action Plans

Finding 516273 (2024-002)

Significant Deficiency 2024

MD

Cash Management Significant Deficiency Matching / Level of Effort / Earmarking § 200.303

2024-002 Federal Agency: U.S. Department of Treasury Federal Program Name: Coronavirus State and Local Fiscal Recovery Funds Assistance Listing Number: 21.027 Federal Award Identification Number and Year: None Pass-Through Agency: Maryland State Department of Education Pass-Through Number: 211837-...

2024-002 Federal Agency: U.S. Department of Treasury Federal Program Name: Coronavirus State and Local Fiscal Recovery Funds Assistance Listing Number: 21.027 Federal Award Identification Number and Year: None Pass-Through Agency: Maryland State Department of Education Pass-Through Number: 211837-01 Award Period: 3/3/2021 – 12/31/2024 Type of Finding: Significant Deficiency in Internal Control over Compliance Recommendation: We recommend that the Board continue with established policies and procedures implemented in November 2023 to ensure that documentation supporting the Board’s review and approval of the monthly FSR reimbursement requests are retained for audit purposes. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: The Director of Financial Reporting and Grants Management will ensure that the Board’s review and approval of monthly FSR reimbursement requests and documented and retained. Name(s) of the contact person(s) responsible for corrective action: Ruth Grasty Director of Financial Reporting and Grants Management Planned completion date for corrective action plan: For immediate implementation and ongoing.

View Audit 334095

Finding 516254 (2024-003)

Significant Deficiency 2024

City of Three Rivers, Michigan

MI

Internal Control / Segregation of Duties Reporting Significant Deficiency

2024-003 - Reporting U.S. Department of Housing and Urban Development – American Rescue Plan Act - MI Hope Grant (ALN 21.027); Passed through the Michigan State Housing Development Authority; All project numbers. Auditor Description of Condition and Effect. During our audit procedures over the Cit...

2024-003 - Reporting U.S. Department of Housing and Urban Development – American Rescue Plan Act - MI Hope Grant (ALN 21.027); Passed through the Michigan State Housing Development Authority; All project numbers. Auditor Description of Condition and Effect. During our audit procedures over the City's reporting process, we noted that there were discrepancies in the expenditures that were stated on the reports compared to the schedule of federal expenditures and the underlying accounting records. The City followed grant requirements to complete the financial, performance and compliance reporting as required by Treasury, however, the reports were inaccurate. Auditor Recommendation. We recommend that the City review reports submitted to ensure they are accurate. Corrective Action. The Finance Director will review all financial documents before they are submitted to outside agencies to ensure accuracy. Responsible Person: Bobbi Schoon, Director of Finance and Administration

View Audit 334063

Finding 516248 (2024-006)

Significant Deficiency 2024

School District of Cadott Community

WI

Reporting Significant Deficiency Internal Control / Segregation of Duties

The District has asked CESA 10 to send the Medicaid claims prior to submission to the District for approval. The District will have a staff member review the salary and fringe information provided to CESA 10.

View Audit 334049

Finding 516244 (2024-005)

Significant Deficiency 2024

School District of Cadott Community

WI

Internal Control / Segregation of Duties Reporting Significant Deficiency

Due to its size, it is not cost effective to hire additional staff to complete necessary reporting. Reviews and checks have been put into place prior to claim submissions with existing staff members.

View Audit 334049

Finding 516165 (2024-006)

Significant Deficiency 2024

Idea Public Schools

TX

School Nutrition Programs Significant Deficiency

Findings #2024-003 and #2024-006 – Significant Deficiency - Other. Federal programs: U. S. Department of Agriculture, Passed through Texas Department of Agriculture, 10.553/10.555, Child Nutrition Cluster, Contract #’s: 202323N109946, 202424N109946 and 236TX400N8903. U. S. Department of Educatio...

Findings #2024-003 and #2024-006 – Significant Deficiency - Other. Federal programs: U. S. Department of Agriculture, Passed through Texas Department of Agriculture, 10.553/10.555, Child Nutrition Cluster, Contract #’s: 202323N109946, 202424N109946 and 236TX400N8903. U. S. Department of Education, Passed through Texas Education Agency, 84.010, Title I Grants to Local Educational Agencies, Contract #’s: 23610101108807 and 24610101108807, 84.367, Supporting Effective Instruction State Grants, Contract #’s: 23694501108807 and 24694501108807. Condition and context: During our testing of the payroll control reviews by the accounting, compensation, and benefits departments, we identified 1 of 40 payroll cycles tested was not reviewed by the compensation and benefits departments. The payroll cycle was reviewed by the accounting department. Recommendation: Reemphasize current policies and procedures to ensure proper review of the payroll by compensation and benefits departments, including subsequent review if out on holiday to ensure that errors are identified in a timely manner. Planned corrective action: IDEA requires review of each payroll by the Compensation and Benefits team without regard to school holidays. In fiscal year 2025, Payroll implemented the procedure requiring review from compensation and benefits immediately following a school holiday where payroll could not be approved in advance. Responsible officers: Sonya Wilson, VP of Accounting and James Dworkin, VP of Accounting (Interim). Estimated completion date: January 31, 2025.

View Audit 334015

Finding 516164 (2024-005)

Significant Deficiency 2024

Idea Public Schools

TX

Reporting School Nutrition Programs Significant Deficiency

Findings #2024-002 and #2024-005 – Significant Deficiency and Other Non-Compliance - Reporting. Federal programs: U. S. Department of Agriculture, Passed through Texas Department of Agriculture, 10.553/10.555, Child Nutrition Cluster, Contract #’s: 202323N109946, 202424N109946 and 236TX400N8903. ...

Findings #2024-002 and #2024-005 – Significant Deficiency and Other Non-Compliance - Reporting. Federal programs: U. S. Department of Agriculture, Passed through Texas Department of Agriculture, 10.553/10.555, Child Nutrition Cluster, Contract #’s: 202323N109946, 202424N109946 and 236TX400N8903. U. S. Department of Education, Passed through Texas Education Agency, 84.010, Title I Grants to Local Educational Agencies, Contract #’s: 23610101108807 and 24610101108807, 84.367, Supporting Effective Instruction State Grants. Contract #’s: 23694501108807 and 24694501108807. Condition and context: During our testing of GAAP and FASRG coding, we identified 4 of 200 payroll transactions coded to the incorrect function code and 3 of 120 non-payroll transactions coded to the incorrect object code. Additionally, during our testing of non-payroll transactions, we identified 3 of 120 nonpayroll transactions coded to the incorrect fiscal year. Recommendation: Reemphasize current policies and procedures to ensure proper coding of disbursements based on the organization’s chart of accounts and FASRG codes. Planned corrective action: IDEA will provide FASRG training to all staff with purchasing and payroll coding authority to minimize coding errors. This training will be conducted from January to May 2025. Responsible officers: Sonya Wilson, VP of Accounting and James Dworkin, VP of Accounting (Interim). Estimated completion date: May 1, 2025.

View Audit 334015

Finding 516145 (2024-002)

Significant Deficiency 2024

Riverside Community College District

CA

Student Financial Aid Significant Deficiency Internal Control / Segregation of Duties

Views of Responsible Officials and Corrective Action Plan The College, with support from the District, will implement an annual review of compliance requirements and training for all staff associated with Return to Title IV calculation requirements to ensure that the data utilized in preparing the c...

Views of Responsible Officials and Corrective Action Plan The College, with support from the District, will implement an annual review of compliance requirements and training for all staff associated with Return to Title IV calculation requirements to ensure that the data utilized in preparing the calculation is accurate and that the College’s procedures are in line with compliance requirements of the program. Norco College Student Financial Services reviewed the workflow of Return to Title IV to enhance implementational procedures and regulatory compliance of this process. This will ensure that student withdrawal calculations are performed accurately and occur in a timely manner based on the District’s schedule of specific dates for each term of when calculations are completed. The purpose of these efforts is to meet compliance requirements as they are related to Return to Title IV. There was also staff turnover during the 2023-24 award year resulting in inconsistent procedures causing the two incorrect calculations and the lack of notification to the student of their eligible post withdrawal disbursement. An Assistant Director position was approved and filled as of May 2024. The Assistant Director takes an active role to ensure federal guidelines are adhered to, completes thorough training on a regular basis, and all calculations are reviewed for accuracy.

View Audit 333977

Finding 516138 (2024-001)

Significant Deficiency 2024

Riverside Community College District

CA

Student Financial Aid Eligibility Significant Deficiency

Views of Responsible Officials and Corrective Action Plan The College, with support from the District, will implement an annual review of compliance requirements and training for all staff associated with eligibility requirements for calculated disbursements amounts to ensure accuracy. Norco College...

Views of Responsible Officials and Corrective Action Plan The College, with support from the District, will implement an annual review of compliance requirements and training for all staff associated with eligibility requirements for calculated disbursements amounts to ensure accuracy. Norco College Student Financial Services reviewed the workflow and processing procedures of flagging student files in a timely manner for those that qualify for the additional Pell indicator. The intention of these efforts is to meet regulatory compliance requirements as they are related to student Pell eligibility when awarding and packaging students for additional Pell. There was staff turnover during the 2023-24 award year resulting in procedures misunderstood and not followed consistently which caused the student to not be flagged at the appropriate time in the awarding and disbursement process. An Assistant Director position was approved and filled as of May 2024. The Assistant Director is responsible for Pell grant payment oversight during the authorization and approval of the institution’s monthly disbursement process to ensure federal guidelines are adhered to. The Assistant Director has completed thorough training regarding the disbursement process and Pell eligibility. Additionally, training is conducted on a regular basis to review student Pell disbursement eligibility for accuracy.

View Audit 333977

Finding 516128 (2024-003)

Significant Deficiency 2024

Somerset School District

WI

Internal Control / Segregation of Duties Reporting Significant Deficiency

The district will update procedures to include review of the Quarterly Financial Summary reports by someone other than the preparer of the reports prior to submission. Review will be documented.

View Audit 333965

Finding 516066 (2024-006)

Significant Deficiency 2024

Edgecombe County

NC

Eligibility Significant Deficiency

Corrective Action: Application checklist updated to include a line items to ask if the client owns their home; does the client have to pay rent or any other living expenses; and was the case evaluated for 1/3 reduction if applicable. These additions to the checklist will serve as a reminder to the w...

Corrective Action: Application checklist updated to include a line items to ask if the client owns their home; does the client have to pay rent or any other living expenses; and was the case evaluated for 1/3 reduction if applicable. These additions to the checklist will serve as a reminder to the worker that all of these areas are covered when working the case. Training will be conducted with all workers on MA-2261 1/3 Reduction, and MA-2230 Financial Resources. Medicaid Supervisors and Quality Control workers will review files internally to ensure policy is applied to all cases and that the evidence entered into NCFAST matches the information in determinations. Proposed Completion Date: Training and implementation of additional reviews and procedures will be implemented by January 15, 2025. Proposed Completion Date: Training and implementation of additional reviews and procedures will be implemented by January 15, 2025. Name of contact person: Virginia Ewuell and Angel Joyner, Medicaid Supervisors. Denise McKnight, Social Services Program Administrator Corrective Action: SSI termination reports are being worked and monitored to ensure that SSI terminated recepients are reviewed and acted on timely. Application checklist has been updated with the line item to check to see if SSI has been terminated. Medicaid Supervisors and Quality Control workers will review files internally to ensure policy is applied to all cases and that the evidence entered into NCFAST matches the information in determinations.

View Audit 333850

Finding 516065 (2024-005)

Significant Deficiency 2024

Edgecombe County

NC

Eligibility Significant Deficiency

Finding: 2024-004 Inaccurate Information Entry Finding: 2024-005 Inaccurate Resource Calculation Finding: 2024-006 Inadequate Request for Information Corrective Action: Application checklist updated to include a list of persons in the household, a line item also added to ask if changes have been app...

Finding: 2024-004 Inaccurate Information Entry Finding: 2024-005 Inaccurate Resource Calculation Finding: 2024-006 Inadequate Request for Information Corrective Action: Application checklist updated to include a list of persons in the household, a line item also added to ask if changes have been applied in NCFAST. A line item was also added to list the children in the home and request for IV-D referral if applicable. Medicaid Supervisors and Quality Control workers will review files internally prior to approval or denial of a case to ensure that verifications match the evidence in NCFAST and changes have been applied to the cases. This will serve as a second check to catch things prior to the case being completed. MA-3300 Income training will be conducted with all workers. Corrective Action: Application checklist updated to include a line item to check to see if the bank account information in evidence matches what shows in determinations. Caseworkers will be trained to enddate old evidence and start a new evidence for a new period to show when the information has been updated. Medicaid Supervisors and Quality Control workers will review files internally to ensure verifications received and put into evidence matches information in determinations once an eligibility check has been ran. They will also ensure that changes have been applied. Proposed Completion Date: Training and implementation of additional reviews and procedures will be implemented by January 15, 2025.

View Audit 333850

Finding 516056 (2024-004)

Significant Deficiency 2024

City of Kingsford

MI

Procurement, Suspension & Debarment Cash Management Significant Deficiency

2024-004 Uniform Grant Guidance Implementation Recommendation: CLA recommends the City continue the process in assessing its financial management systems and related internal controls over federal awards during the 2025 fiscal year. This assessment should include evaluating existing policies and pro...

2024-004 Uniform Grant Guidance Implementation Recommendation: CLA recommends the City continue the process in assessing its financial management systems and related internal controls over federal awards during the 2025 fiscal year. This assessment should include evaluating existing policies and procedures to determine where additional enhancements should be made or new policies created, a plan to communicate these policies to City employees, and procedures to periodically review and update, as considered necessary. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action planned/taken in response to finding: The City is still working on assessing its financial management system and related internal controls over federal awards and evaluating the existing policies for compliance with Uniform Guidance. The City is working to educate the employees on the policies in place and reviewing and updating as necessary. Name of the contact person responsible for corrective action: Michael Stelmaszek, City Manager Planned completion date for corrective action plan: June 30, 2025

View Audit 333827

Finding 515980 (2024-003)

Significant Deficiency 2024

Lawrence Technological University

MI

Student Financial Aid Significant Deficiency Matching / Level of Effort / Earmarking

Condition: The University does not have all of the minimum safeguards written down within its information security program. Planned Corrective Action: This finding has already been addressed. During the current year testing, we updated our “GLBA Information Security Program”. While it does contain a...

Condition: The University does not have all of the minimum safeguards written down within its information security program. Planned Corrective Action: This finding has already been addressed. During the current year testing, we updated our “GLBA Information Security Program”. While it does contain all elements required, technically the policy was not updated until 7/25/2024. LTU followed up with the FSA Cyber Compliance Team regarding this finding from last year. We received the following response on August 15th, 2024: Thank you for providing evidence artifacts to the Federal Student Aid (FSA) Cybersecurity Compliance Team indicating that you have satisfied the minimum information security requirements of Gramm-Leach-Bliley Act (GLBA) at Lawrence Technological University for the audit year of 2023. As a courtesy, we remind you that all the GLBA Cybersecurity requirements are to be satisfied each audit year. Protecting student data is an utmost priority for FSA and we are committed to ensuring the safety and security of student information. We have reviewed the information you provided and determined it sufficient to close the case. Contact person responsible for corrective action: Linda L Height, VP Finance Anticipated Completion Date: July 25, 2024

View Audit 333819

Finding 515852 (2024-003)

Significant Deficiency 2024

La Habra City School District

CA

Subrecipient Monitoring Reporting Significant Deficiency

The District had new staff and reporting documentation was not compiled in order to reconcile the amounts. Moving forward all documentation will be kept by two fiscal team members. The District was never notified by the California Department of Education or the Auditors that there was an obligation...

The District had new staff and reporting documentation was not compiled in order to reconcile the amounts. Moving forward all documentation will be kept by two fiscal team members. The District was never notified by the California Department of Education or the Auditors that there was an obligation to correct prior year FTE amounts in the next reporting period and therefor this has not yet been corrected. During the next open reporting period, the District will recreate all of the FTE reports and enter new data as required by the Audit team.

View Audit 333724

Finding 515841 (2024-006)

Significant Deficiency 2024

Anson County

NC

Eligibility Reporting Significant Deficiency

Name of Contact Person: Nia Broadway, Medicaid Manager Corrective Action: Proposed Completion Date: Name of Contact Person: Nia Broadway, Medicaid Manager Corrective Action: Proposed Completion Date: Name of Contact Person: Nia Broadway, Medicaid Manager Corrective Action: Proposed Completion Date: ...

Name of Contact Person: Nia Broadway, Medicaid Manager Corrective Action: Proposed Completion Date: Name of Contact Person: Nia Broadway, Medicaid Manager Corrective Action: Proposed Completion Date: Name of Contact Person: Nia Broadway, Medicaid Manager Corrective Action: Proposed Completion Date: Inaccurate Resources Entry The County met with all Adult Medicaid Staff to discuss inaccurate resource entry and the policy associated with the findings. The County will continue Second Party Reviews and conduct trainings based on findings. Meeting held 10/28 through 10/29/24 Finding: 2024-004 Corrective Actions for findings 2024-002, 2024-003, 2024-004, 2024-005, and 2024-006 also apply to the State Award findings. Finding: 2024-005 Inaccurate Information Entry The County met with All MAGI and Adult Medicaid Staff to discuss inaccurate information entry and the policy associated with the findings. The County will continue Second Party Reviews and conduct trainings based on findings Section IV- State Award Findings and Questioned Costs Finding: 2024-006 Untimely Review of SSI Terminations The County met with all Adult Medicaid Staff to discuss the untimely review of SSI terminations and the policy associated with the findings. The County will continue Second Party Reviews and conduct trainings based on findings. Meeting held 10/28/24

View Audit 333693

Finding 515840 (2024-005)

Significant Deficiency 2024

Anson County

NC

Eligibility Significant Deficiency

Name of Contact Person: Nia Broadway, Medicaid Manager Corrective Action: Proposed Completion Date: Name of Contact Person: Nia Broadway, Medicaid Manager Corrective Action: Proposed Completion Date: Name of Contact Person: Nia Broadway, Medicaid Manager Corrective Action: Proposed Completion Date: ...

Name of Contact Person: Nia Broadway, Medicaid Manager Corrective Action: Proposed Completion Date: Name of Contact Person: Nia Broadway, Medicaid Manager Corrective Action: Proposed Completion Date: Name of Contact Person: Nia Broadway, Medicaid Manager Corrective Action: Proposed Completion Date: Inaccurate Resources Entry The County met with all Adult Medicaid Staff to discuss inaccurate resource entry and the policy associated with the findings. The County will continue Second Party Reviews and conduct trainings based on findings. Meeting held 10/28 through 10/29/24 Finding: 2024-004 Corrective Actions for findings 2024-002, 2024-003, 2024-004, 2024-005, and 2024-006 also apply to the State Award findings. Finding: 2024-005 Inaccurate Information Entry The County met with All MAGI and Adult Medicaid Staff to discuss inaccurate information entry and the policy associated with the findings. The County will continue Second Party Reviews and conduct trainings based on findings Section IV- State Award Findings and Questioned Costs Finding: 2024-006 Untimely Review of SSI Terminations The County met with all Adult Medicaid Staff to discuss the untimely review of SSI terminations and the policy associated with the findings. The County will continue Second Party Reviews and conduct trainings based on findings. Meeting held 10/28/24

View Audit 333693

Finding 515838 (2024-003)

Significant Deficiency 2024

Anson County

NC

Eligibility Significant Deficiency

Name of Contact Person: Nia Broadway, Medicaid Manager Corrective Action: Proposed Completion Date: Name of Contact Person: Nia Broadway, Medicaid Manager Corrective Action: Proposed Completion Date: Finding: 2024-003 IV-D Non-Cooperation The County met with All MAGI Medicaid Staff to discuss the no...

Name of Contact Person: Nia Broadway, Medicaid Manager Corrective Action: Proposed Completion Date: Name of Contact Person: Nia Broadway, Medicaid Manager Corrective Action: Proposed Completion Date: Finding: 2024-003 IV-D Non-Cooperation The County met with All MAGI Medicaid Staff to discuss the noncooperation with child support procedures and the policy associated with the findings. The County will continue Second Party Reviews and conduct trainings based on findings. Meeting held 10/29/24 Section III - Federal Award Findings and Questioned Costs Corrective Action Plan Meeting held 10/28/24 Inadequate Request for Information The County met with all Adult Medicaid Staff to discuss inadequate request for information and the policy associated with the findings. The County will continue Second Party Reviews and conduct trainings based on findings. Reconciliation of Records and Reporting Holly Martinez-Borja, Finance Director The County has made great efforts to achieve the timely completion of the annual audit and issuance of the financial statements. The County will ensure the appropriate year-end accounting adjustments to be properly recorded. The County has hired an experienced Finance Officer with 20 years of experience. An Assistant Finance Officer position has been added to the department to assist with the daily operations to increase capacity within the department. Board policies and procedures are implemented to increase oversight and accountability. For the Year Ended June 30, 2024 Section II - Financial Statement Findings Finding: 2024-001 Imminently.

View Audit 333693

Finding 515837 (2024-002)

Significant Deficiency 2024

Anson County

NC

Eligibility Significant Deficiency

Name of Contact Person: Nia Broadway, Medicaid Manager Corrective Action: Proposed Completion Date: Name of Contact Person: Nia Broadway, Medicaid Manager Corrective Action: Proposed Completion Date: Finding: 2024-003 IV-D Non-Cooperation The County met with All MAGI Medicaid Staff to discuss the no...

Name of Contact Person: Nia Broadway, Medicaid Manager Corrective Action: Proposed Completion Date: Name of Contact Person: Nia Broadway, Medicaid Manager Corrective Action: Proposed Completion Date: Finding: 2024-003 IV-D Non-Cooperation The County met with All MAGI Medicaid Staff to discuss the noncooperation with child support procedures and the policy associated with the findings. The County will continue Second Party Reviews and conduct trainings based on findings. Meeting held 10/29/24 Section III - Federal Award Findings and Questioned Costs Corrective Action Plan Meeting held 10/28/24 Inadequate Request for Information The County met with all Adult Medicaid Staff to discuss inadequate request for information and the policy associated with the findings. The County will continue Second Party Reviews and conduct trainings based on findings. Reconciliation of Records and Reporting Holly Martinez-Borja, Finance Director The County has made great efforts to achieve the timely completion of the annual audit and issuance of the financial statements. The County will ensure the appropriate year-end accounting adjustments to be properly recorded. The County has hired an experienced Finance Officer with 20 years of experience. An Assistant Finance Officer position has been added to the department to assist with the daily operations to increase capacity within the department. Board policies and procedures are implemented to increase oversight and accountability. For the Year Ended June 30, 2024 Section II - Financial Statement Findings Finding: 2024-001 Imminently.

View Audit 333693

Finding 515824 (2024-002)

Significant Deficiency 2024

Glen Oaks Community College

MI

Special Tests & Provisions Student Financial Aid Significant Deficiency

2024-002 – Return of Title IV Calculation. Auditor Description of Condition and Effect. A break of at least five consecutive days was not excluded from the reported enrollment period for the Winter 2024 semester, which resulted in the calculation being incorrect for all students who had returns in t...

2024-002 – Return of Title IV Calculation. Auditor Description of Condition and Effect. A break of at least five consecutive days was not excluded from the reported enrollment period for the Winter 2024 semester, which resulted in the calculation being incorrect for all students who had returns in the Winter 2024 semester. As a result of this condition, Return of Title IV calculations were incorrect for five students for the Winter 2024 semester, resulting in $66.52 in excess funds returned to the U.S. Department of Education. It is our understanding that on August 14, 2024, the College repaid the five students affected by this calculation error. Auditor Recommendation. We recommend that the College implement a review process to ensure the number of enrollment days used in the Return of Title IV calculations is accurate and that the R2T4 calculation is reviewed by a second individual. Corrective Action. Upon discovery of the Return of Title IV Calculation error, the College went through and made corrections to all student accounts affected. To prevent a similar problem from arising in the future, the College has developed a review process where the Director of Financial Aid will review break day regulations in the FSA handbook and verify that the Ellucian Colleague annual set-up has accurate break days. The Director of Financial Aid will also verify accuracy as calculations are processed for students. Responsible Party. Jean Zimmerman, Director of Financial Aid. Anticipated Completion Date. August 14, 2024.

View Audit 333681

Finding 515820 (2024-001)

Significant Deficiency 2024

Glen Oaks Community College

MI

Reporting Special Tests & Provisions Student Financial Aid

2024-001 – Timeliness of Status Change Reporting. Auditor Description of Condition and Effect. During our testing of thirteen students with status changes, we noted six instances of late reporting of a student's status changes. Three of these instances were winter term graduates whose status change...

2024-001 – Timeliness of Status Change Reporting. Auditor Description of Condition and Effect. During our testing of thirteen students with status changes, we noted six instances of late reporting of a student's status changes. Three of these instances were winter term graduates whose status change was reported one day late. The other three of these instances were winter term graduates whose status changes had not been reported as of the date of our audit fieldwork, due to a technical glitch in the College's reporting system. Therefore, the NSLDS system is not updated with the student information timely which could lead to a student's grace period being shortened. Auditor Recommendation. We recommend that the College review its reporting procedures to ensure that students' status changes are accurately and timely reported to NSLDS as required by regulators. Corrective Action. The Director of Financial Aid will review the reporting procedures to ensure that students' status changes are accurately and timely reported to NSLDS. The Director of Financial Aid will check NSLDS to ensure timely reporting. Responsible Party. Jean Zimmerman, Director of Financial Aid, and Amy Young, Registrar. Anticipated Completion Date. First Fall 2024 NSC reporting.

View Audit 333681

Finding 515800 (2024-001)

Significant Deficiency 2024

Chapel Hill-Carrboro City Board of Education

NC

Questioned Costs Significant Deficiency Matching / Level of Effort / Earmarking

Name of Contact Person:Jonathan Scott, Chief Financial Officer, Business and Financial Services. Corrective Action Plan: Management will implement controls and procedures to ensure that staff responsible for overseeing compliance with Title I requirements understands the 12% administrative expendit...

Name of Contact Person:Jonathan Scott, Chief Financial Officer, Business and Financial Services. Corrective Action Plan: Management will implement controls and procedures to ensure that staff responsible for overseeing compliance with Title I requirements understands the 12% administrative expenditure limit. In addition, the Title I budget will be monitored by Title I staff during the year to ensure that the 12% administrative requirement is not exceeded. Proposed Completion Date: Immediately

View Audit 333668 Questioned Costs: $1

Finding 515797 (2024-001)

Significant Deficiency 2024

Rannie Webster Foundation

NH

HUD Housing Programs Significant Deficiency Internal Control / Segregation of Duties

Mortgage Insurance Nursing Homes, Intermediate Care Facilities, Board and Care Homes, and Assisted Living Facilities -Assistance Listing No. 14.129 - Significant Deficiency in Internal Control over Compliance Recommendation: CLA recommends the organization develops and enforces a policy requiring t...

Mortgage Insurance Nursing Homes, Intermediate Care Facilities, Board and Care Homes, and Assisted Living Facilities -Assistance Listing No. 14.129 - Significant Deficiency in Internal Control over Compliance Recommendation: CLA recommends the organization develops and enforces a policy requiring the approval of all invoices before payment. Explanation of disagreement with audit finding: Management is in agreement with the finding. Action taken in response to finding: Starting in April 2024, Webster began implementing Silverstone Living's invoice approval policy. The authorized signers for invoices are the Executive Director, the CFO, and the department heads. Name of the contact person responsible for corrective action: Janet Langlois, CFO Planned completion date for corrective action plan: April 30, 2024.

View Audit 333666

Finding 515782 (2024-008)

Significant Deficiency 2024

Housing Opportunities Commission of Montgomery County, MD

MD

Questioned Costs HUD Housing Programs Significant Deficiency

Section 8 Project-Based Cluster – Assistance Listing No. 14.195 / 14.856 Recommendation: The Commission should implement processes to ensure that claims for assistance are properly terminated. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action ...

Section 8 Project-Based Cluster – Assistance Listing No. 14.195 / 14.856 Recommendation: The Commission should implement processes to ensure that claims for assistance are properly terminated. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: Pratum will ensure that move-outs are processed promptly to prevent assistance payments from being requested for vacant units. The Regional Property Manager will oversee the completion and review of end-of-month checklists to confirm that all monthly tasks have been addressed, thereby minimizing the likelihood of this exception occuring in the future. Effective immediately, HOC’s PM Compliance Manager will ensure that move-outs are processed in a timely manner and will review monthly reports to confirm that esident terminations are handled accurately. For both HOC and Pratum, the HOC team will incorporate any open move-out and move-in actions into the monthly review of past-due certifications as part of the report. Name(s) of the contact person(s) responsible for corrective action: Carmen McLaurin, Vice President of Operation with Pratum, Darcel Cox, Vice President of Compliance with HOC and Ali Ozair, Vice President of Property Management with HOC. Planned completion date for corrective action plan: Pratum and HOC have immediately implemented the corrective actions as outlined above. Both discrepancies have been resolved. The HOC team will include open move-in and move-out actions within the report effective November 2024. If the U.S. Department of Housing and Urban Development has questions regarding this schedule, please call Timothy Goetzinger, Senior Vice President, Finance / Chief Financial Officer at (301) 949-4690.

View Audit 333618 Questioned Costs: $1

Finding 515779 (2024-005)

Significant Deficiency 2024

Housing Opportunities Commission of Montgomery County, MD

MD

HUD Housing Programs Eligibility Reporting

Section 8 Project-Based Cluster – Assistance Listing No. 14.195 / 14.856 Recommendation: The Commission should implement processes to ensure that fatal errors occurring during PIC/TRACS submissions are corrected in a timely manner Explanation of disagreement with audit finding: There is no disagre...

Section 8 Project-Based Cluster – Assistance Listing No. 14.195 / 14.856 Recommendation: The Commission should implement processes to ensure that fatal errors occurring during PIC/TRACS submissions are corrected in a timely manner Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: Previously,Pratum was responsible for completing the certifications and the HOC team was responsible for transmitting the certifications through TRACS. Effective October 1 2024, Pratum assumed responsibility of ensuring that all certifications are transmitted to TRACS in alignment with the HAP reported date. The Regional Property Manager will conduct monthly reviews of HAP and TRACS submissions to ensure accuracy. HRD staff will provide weekly internal staff training to correct PIC errors and procure additional training from a third party consulting company.. Name(s) of the contact person(s) responsible for corrective action: Carmen McLaurin, Vice President of Operation with Pratum, Darcel Cox, Vice President of Compliance with HOC and Lynn Hayes, Vice President of Housing Resources. Planned completion date for corrective action plan: Pratum immediately implemented the corrective actions as outlined above and will commit to correcting all specific discrepancies by March 31, 2025. The HRD team has corrected the errors and will attempt to secure training from a consultant company no later than March 31, 2024.

View Audit 333618

Finding 515772 (2024-002)

Significant Deficiency 2024

Housing Opportunities Commission of Montgomery County, MD

MD

HUD Housing Programs Eligibility Significant Deficiency

Housing Voucher Cluster – Assistance Listing No. 14.871 / 14.879 Recommendation: We recommend the Commission implement processes to ensure that all proper documentation is being maintained during the recertification process for every tenant. Explanation of disagreement with audit finding: There is...

Housing Voucher Cluster – Assistance Listing No. 14.871 / 14.879 Recommendation: We recommend the Commission implement processes to ensure that all proper documentation is being maintained during the recertification process for every tenant. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: Effective September 2024, the HOC compliance team significantly enhanced the quality control review process to proactively identify SEMAP findings and eligibility discrepancies before the end of each fiscal year. Staff anticipates that this proactive approach will facilitate early identification of training needs on a more frequent basis, ensuring compliance standards are met while also improving overall program effectiveness. Additionally, HRD staff will identify and address systemic findings during monthly staff meetings. To further support these efforts, HOC enlisted a third-party consulting firm to provide training to new and existing staff in October 2024. Staff were trained on eligibility, portability and SEMAP requirements. Additional HOTMA training is scheduled on 11/6/24 - 11/7/24. Moreover, HOC will continue to procure recurring training based on systemic quality control findings prior to the end of the fiscal year. This comprehensive approach will ensure that staff are well-equipped to address any challenges and enhance overall compliance and effectiveness. Name(s) of the contact person(s) responsible for corrective action: Lynn Hayes, Vice President of Housing Resources Division and Darcel Cox, Vice President of Compliance. Planned completion date for corrective action plan: Staff training commenced October 2024 and will continue throughout the fiscal year.

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Corrective Action Plans

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