Corrective Action Plans

Finding 498838 (2023-002)

Material Weakness 2023

Flathead Community Health Center Inc. Dba Greater Valley Health Center

MT

Special Tests & Provisions Material Weakness Significant Deficiency

GVHC implemented the physical review and controls described in the 2022 audit response. Our efforts were largely successful as the missing application was the only failure of the physical audit process we put in place. However, a failure of our technology and billing software was revealed. Our plan ...

GVHC implemented the physical review and controls described in the 2022 audit response. Our efforts were largely successful as the missing application was the only failure of the physical audit process we put in place. However, a failure of our technology and billing software was revealed. Our plan it to: 1. Continue to provide frequent education and training for front-desk staff to assist in preparation and required completion of the sliding fee applications and proof of income. 2. Continue to identify patients who have exhausted their limited Medicaid benefits and will now qualify for sliding fee scale for dental work. 3. Continue to review reports identifying patients with no end date identified for their sliding fee scale. For identified accounts, determine correct date and enter in the system. 4. Continue 100% audit of all sliding fee scale applications for accuracy of calculation and presence of necessary paperwork. Provide direct feedback to staff when errors are identified. Integrate changes to billing software into the process when sliding fee scales are adjusted and posted. Run reports of sliding fee scale discounts and audit for correct calculation. Anticipated completion date: October 31, 2024 Contact person responsible for corrective action: Mary Sterhan, CEO

View Audit 321590

Finding 498815 (2023-002)

Significant Deficiency 2023

Argentum

VA

Procurement, Suspension & Debarment Significant Deficiency § 200.303

FINDINGS—FINANCIAL STATEMENT AUDIT MATERIAL WEAKNESS 2023‐001 Financial Reporting Recommendation: A thorough review of significant account reconciliations should be performed and an understanding of asset capitalization requirements under generally accepted accounting principles should be obtained. ...

FINDINGS—FINANCIAL STATEMENT AUDIT MATERIAL WEAKNESS 2023‐001 Financial Reporting Recommendation: A thorough review of significant account reconciliations should be performed and an understanding of asset capitalization requirements under generally accepted accounting principles should be obtained. We recommend that Argentum develop and implement a thorough review process to ensure proper financial reporting. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: Argentum reviews the financial statements monthly with the President & CEO, outsourced accounting team and senior management team. As part of that process, we review any assets to be capitalized each month to ensure proper recording. Name(s) of the contact person(s) responsible for corrective action: James Balda Planned completion date for corrective action plan: 09/30/2024

View Audit 321537

Finding 498729 (2023-005)

Significant Deficiency 2023

Brown County

MN

Internal Control / Segregation of Duties Eligibility Significant Deficiency

Federal Agency: U.S. Department of Health and Human Services Federal Program Title: Medical Assistance Program (Medicaid Cluster) Assistance Listing Number: 93.778 Federal Award ldentification Number and Year: 2305MNSADM and 2305MN5MAP, 2023 Pass-Through Agency: Minnesota Department of Human Service...

Federal Agency: U.S. Department of Health and Human Services Federal Program Title: Medical Assistance Program (Medicaid Cluster) Assistance Listing Number: 93.778 Federal Award ldentification Number and Year: 2305MNSADM and 2305MN5MAP, 2023 Pass-Through Agency: Minnesota Department of Human Services Pass-Through Number: 2305MN5ADM and 2305MNSMAP Award Period: Year-Ended December 31, 2023 Type of Finding: Signiflcant Deficiency in lnternal Control over Compliance Recommendation: lt is recommended the County increase review over casefiles and ensure that there are performed on a periodic basis throughout the year. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: The County will adhere to established procedures and policies. Name of the contact person responsible for corrective action plan: Barb Dietz, Human Services Director Planned completion date for corrective action plan: December 31, 2024

View Audit 321408

Finding 498728 (2023-004)

Significant Deficiency 2023

Brown County

MN

Internal Control / Segregation of Duties Significant Deficiency Special Tests & Provisions

Federal Agency: U.S. Department of Health and Human Services Federal Program Title: Medical Assistance Program (Medicaid Cluster) Assistance Listing Number: 93.778 Federal Award ldentification Number and Year: 2305MNSADM and 2305MNSMAP, 2023 Pass-Through Agency: Minnesota Department of Human Service...

Federal Agency: U.S. Department of Health and Human Services Federal Program Title: Medical Assistance Program (Medicaid Cluster) Assistance Listing Number: 93.778 Federal Award ldentification Number and Year: 2305MNSADM and 2305MNSMAP, 2023 Pass-Through Agency: Minnesota Department of Human Services Pass-Through Numbers: 2305MNSADM and 2305MN5MAP Award Period: Year-Ended December 31, 2023 Type of Finding: Significant Deficiency in lnternal Control over Compliance and Other Matters Recommendation: lt is recommended the County ensure that someone is disbursing the money received to the collaborative in a timely fashion. Explanation of disagreement with audit finding: There is no disagreement with the audit frnding. Action taken in response to finding: The County has implemented procedures and policies to have a person ensure payments are made to the Collaborative in a timely manner. Name of the contact person responsible for corrective action plan: Barb Dietz, Human Services Director Planned completion date for corrective action plan: December 31, 2024

View Audit 321408

Finding 498727 (2023-003)

Significant Deficiency 2023

Brown County

MN

Internal Control / Segregation of Duties Reporting Significant Deficiency

Federal Agency: U.S. Department of Health and Human Servrces Federal Program Name: Medical Assistance Program (Medicaid Cluster) Assistance Listing Number: 93.778 Federal Award ldentification Number and Year: 2305MN5ADM and 2305MN5MAP,2023 Pass-Through Agency: Minnesota Department of Human Services ...

Federal Agency: U.S. Department of Health and Human Servrces Federal Program Name: Medical Assistance Program (Medicaid Cluster) Assistance Listing Number: 93.778 Federal Award ldentification Number and Year: 2305MN5ADM and 2305MN5MAP,2023 Pass-Through Agency: Minnesota Department of Human Services Pass-Through Numbers: 2305MN5ADM and 2305MN5MAP Award Period: Year-Ended December 31, 2023 Type of Finding: Significant Deficiency in lnternal Control over Compliance Recommendation: It is recommended the County implement procedures to have a secondary person review the reports before they are submitted to the Minnesota Department of Human Services. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: The County has implemented procedures and policies to have a secondary person review the reports and in a timely manner. Name of the contac{ person responsible for corrective action plan: Barb Dietz, Human Services Director Planned completion date for corrective action plan: December 31, 2024

View Audit 321408

Finding 498720 (2023-002)

Significant Deficiency 2023

Aid Upstate

SC

Cash Management Reporting Significant Deficiency

Contact Person: Tracy Carr, Andrew Hall Management Response: We agree with the auditors’ comments and the following action plan will be taken to implement internal control procedures to allow for timely reporting: Monthly grant reimbursement reports have a limited window before the due date. ...

Contact Person: Tracy Carr, Andrew Hall Management Response: We agree with the auditors’ comments and the following action plan will be taken to implement internal control procedures to allow for timely reporting: Monthly grant reimbursement reports have a limited window before the due date. Additional requirements have added time to properly prepare reimbursement reports. Gathering all supporting documentation before submission has increased the time needed before the complete reimbursement request package is ready. Each member of the finance team is sharing in the responsibilities to meet the deadline. Completion Date: Beginning September 1, 2024 and thereafter.

View Audit 321407

Finding 498669 (2023-001)

Significant Deficiency 2023

Pinellas County Housing Authority

FL

Questioned Costs HUD Housing Programs Significant Deficiency

Allowability — Landlord Overpayments Housing Voucher Cluster Significant Deficiency in Internal Controls Other Matter to Reported Under the Uniform Control Condition: The Authority made numerous overpayments in HAP to landlords starting in the month of October2023. A variance in HAP disbursements wa...

Allowability — Landlord Overpayments Housing Voucher Cluster Significant Deficiency in Internal Controls Other Matter to Reported Under the Uniform Control Condition: The Authority made numerous overpayments in HAP to landlords starting in the month of October2023. A variance in HAP disbursements was noted by the Department of Housing and Urban Development (HUD), and upon further investigation by management it was determined that the overpayment to landlords was not caught by staff when the original disbursements were made. Auditor Recommendations: The Authority should work on recapturing overpaid funds from landlords that have current tenant agreements. The Authority should also monitor internal controls in place with the new software to make sure the accounting software is functioning properly. Action Taken: Upon discovering the overpayments to the landlords, HCV department promptly issued letters informing them of the excess Housing Assistance Payment (HAP) received. The letter instructed the landlords to either repay the overpaid amounts or have them recouped from future HAP payments. To date $142,824, has been successfully collected. Cherly LaRock is responsible for overseeing the collection process, and a monthly report on the status of these overpayments is submitted to the Board. Additionally, the data transferred from HAB to Yardi was thoroughly reviewed and any issues that were identified during review were promptly corrected. Finally, a Yardi consultant was engaged to assist in the evaluating the PCI-IA HAP process within Yardi. With the consultant's assistance, new procedures and controls have been established to streamline HAP payments and prevent future overpayments to landlords.

View Audit 321386 Questioned Costs: $1

Finding 498593 (2023-004)

Significant Deficiency 2023

Baltimore Corps, INC

DC

Reporting Significant Deficiency § 200.512

Finding 2023-004: Significant Deficiency and Noncompliance Over Reporting Responsible Official’s Response and Corrective Action Plan We concur with the finding. We acknowledge the importance of adhering to the Federal guidelines for the submission of the reporting package within the mandated nine-mo...

Finding 2023-004: Significant Deficiency and Noncompliance Over Reporting Responsible Official’s Response and Corrective Action Plan We concur with the finding. We acknowledge the importance of adhering to the Federal guidelines for the submission of the reporting package within the mandated nine-month period. This finding is a result of the transition in the accounting team. To address this, BCI will implement the following actions: 1. Policies and Procedures Development: We will create and enforce comprehensive policies and procedures to ensure that audits are initiated and completed promptly. This will include detailed timelines and checkpoints to monitor progress throughout the audit process. In addition, we will adhere to a year end closing process that reconciles all significant accounts. 2. Training for Grant Administration: We will provide training for individuals responsible for administering Federal assistance programs within BCI. This training will cover essential aspects of grant administration, ensuring that our team is well-equipped to manage these programs efficiently and in compliance with Federal requirements. Planned Implementation Date of Corrective Action Plan September 1, 2024 Person Responsible for Corrective Action Plan Caryn York, Executive Director

View Audit 321331

Finding 498582 (2023-002)

Significant Deficiency 2023

Sunshine Community Health Center, Inc.

AK

Special Tests & Provisions Eligibility Significant Deficiency

Federal Award Finding: 2023-002 Significant Deficiency in Internal Control and Noncompliance with Special Tests and Provisions in Application of Organization's Sliding Fee Discounts Policy Name and Contact Person: Gina McCullough, Chief Financial Officer 907-733-2273 gmccullough@sunshineclinic.org C...

Federal Award Finding: 2023-002 Significant Deficiency in Internal Control and Noncompliance with Special Tests and Provisions in Application of Organization's Sliding Fee Discounts Policy Name and Contact Person: Gina McCullough, Chief Financial Officer 907-733-2273 gmccullough@sunshineclinic.org Corrective Action: The Organization will take steps to ensure that staff are proficient in the completion of the application of the slide adjustments within the EHR system and are working to improve the review process of those adjustments applied to ensure compliance. Proposed Completion Date: June 30, 2024

View Audit 321325

Finding 498579 (2023-001)

Significant Deficiency 2023

City of Chisholm

MN

Internal Control / Segregation of Duties Reporting Significant Deficiency

Lack of segregation of duties - significan deficiency Name of contact person responsible for corrective acttion - Devin Ceglar, City Clerk-Treasurer Corrective action planned - The City Clerk-Tre...

Lack of segregation of duties - significan deficiency Name of contact person responsible for corrective acttion - Devin Ceglar, City Clerk-Treasurer Corrective action planned - The City Clerk-Treasurer will attempt to monitor transactions and structure the duties of the office personnel to ensure as much segregation of duties as possible within the City's staffing limitations and funding contraints. Anticipated completion date - ongoing

View Audit 321321

Finding 498533 (2023-002)

Significant Deficiency 2023

Outagamie County

WI

Internal Control / Segregation of Duties Subrecipient Monitoring Cash Management § 200.302

Significant Deficiency in Internal Control over Compliance, Other Matters 2023-002 Reporting Recommendation: We recommend the County review its processes and implement controls to formally review these quarterly reports and that they are compared and reconciled to the general ledger. Explanation ...

Significant Deficiency in Internal Control over Compliance, Other Matters 2023-002 Reporting Recommendation: We recommend the County review its processes and implement controls to formally review these quarterly reports and that they are compared and reconciled to the general ledger. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action planned in response to finding: The County is planning a more in-depth checklist of accounts to be reconciled and journal entries to be made along with regular check in and team meetings to meet the deadlines. Name(s) of the contact person(s) responsible for corrective action: Michelle Uitenbroek, Finance Director Planned completion date for corrective action plan: December 31, 2024 If the granting agencies have questions regarding this plan, please call Michelle Uitenbroek, Finance Director at 920-832-1674.

View Audit 321277

Finding 498512 (2023-007)

Significant Deficiency 2023

Traverse County

MN

Cash Management Reporting Significant Deficiency § 200.303

Finding Number: 2023-007 Finding Title: Local Collaborative Time Study (LCTS) Reporting (Cost Schedules DHS-3220.1 and DHS-3220.2) Program: 93.778 Medical Assistance Program Name of Contact Person Responsible for Corrective Action: Melanie Lupkes/Shelly Staebler Corrective Action Planned: Social Ser...

Finding Number: 2023-007 Finding Title: Local Collaborative Time Study (LCTS) Reporting (Cost Schedules DHS-3220.1 and DHS-3220.2) Program: 93.778 Medical Assistance Program Name of Contact Person Responsible for Corrective Action: Melanie Lupkes/Shelly Staebler Corrective Action Planned: Social Services and Probation staff met as a group to go over the most recent bulletin that includes the instructions for completing the forms and for the allowable expenses. Consulted with OSA staff for interpretation of some of the items and all quarterly reports have been resubmitted, reviewed by Traverse County Social Services Fiscal and accepted by the State. Anticipated Completion Date: Completed, September 7, 2024

View Audit 321238

Finding 498511 (2023-006)

Significant Deficiency 2023

Traverse County

MN

Internal Control / Segregation of Duties Reporting Significant Deficiency § 200.303

Finding Number: 2023-006 Finding Title: Local Collaborative Time Study (LCTS) Reporting (Cost Schedules DHS-3220.2) Program: 93.778 Medical Assistance Program Name of Contact Person Responsible for Corrective Action: Melanie Lupkes/Shelly Staebler Corrective Action Planned: Social Services and Prob...

Finding Number: 2023-006 Finding Title: Local Collaborative Time Study (LCTS) Reporting (Cost Schedules DHS-3220.2) Program: 93.778 Medical Assistance Program Name of Contact Person Responsible for Corrective Action: Melanie Lupkes/Shelly Staebler Corrective Action Planned: Social Services and Probation staff met as a group to go over the most recent bulletin that includes the instructions for completing the forms and for the allowable expenses. Consulted with OSA staff for interpretation of some of the items and all quarterly reports have been resubmitted, reviewed by Traverse County Social Services Fiscal and accepted by the State. Anticipated Completion Date: Completed, September 7, 2024

View Audit 321238

Finding 498508 (2023-003)

Significant Deficiency 2023

Traverse County

MN

Procurement, Suspension & Debarment Significant Deficiency Matching / Level of Effort / Earmarking § 200.303 § 200.318

Finding Number: 2023-003 Finding Title: Procurement Policy Program: 20.205 Highway Planning and Construction Name of Contact Person Responsible for Corrective Action: Kit Johnson, County Auditor/Treasurer Corrective Action Planned: Traverse County has updated their procurement policy to comply with ...

Finding Number: 2023-003 Finding Title: Procurement Policy Program: 20.205 Highway Planning and Construction Name of Contact Person Responsible for Corrective Action: Kit Johnson, County Auditor/Treasurer Corrective Action Planned: Traverse County has updated their procurement policy to comply with the latest changes in the law. Anticipated Completion Date: Completed, May 21, 2024

View Audit 321238

Finding 498505 (2023-004)

Significant Deficiency 2023

Peoria Housing Authority

IL

HUD Housing Programs Special Tests & Provisions Significant Deficiency

2023-004 Housing Choice Voucher Tenant Files - Rent Calculations - ALN 14.871 - Noncompliance & Significant Deficiency Action planned in response to finding: The Peoria Housing Authority acknowledges the need to strengthen our controls over tenant file documentation and rent calculations to ensure ...

2023-004 Housing Choice Voucher Tenant Files - Rent Calculations - ALN 14.871 - Noncompliance & Significant Deficiency Action planned in response to finding: The Peoria Housing Authority acknowledges the need to strengthen our controls over tenant file documentation and rent calculations to ensure both accuracy and compliance with HUD regulations and the Peoria Housing Authority's Administrative Plan. In response, we are implementing the following corrective actions: 1. Creation of a Compliance Team The PHA will establish a Compliance Team responsible for developing and enforcing a robust quality assurance plan. This plan will include a 100% audit of all Housing Choice Voucher (HCV) participant files to ensure full compliance with HUD regulations. Any discrepancies identified will be corrected promptly, and corresponding actions will be documented. 2. Ongoing Quality Assurance Audits The Quality Assurance team will perform monthly internal file audits, reviewing 10% of files undergoing recertification and 100% of new admissions to verify accurate rent calculations. The team will also ensure that all required documentation is present, accurate, and maintained in each participant's file. 3. Third-Party Audit In addition to internal audits, the PHA will engage a third-party consultant (Nan McKay) to conduct a one-time comprehensive audit of all participant files. Following this, the consultant will review 10% of participant files monthly to ensure continued compliance with HUD standards. 4. Technical Support Additionally, a third-party consultant (Nan McKay) will provide the HCV Team with technical support required to reconcile file deficiencies noted during the 100% file audit. 5. Staff Training The HCV Department Team, except for our inspectors, will complete Rent Calculation Training and obtain the exam certification, with a minimum requisite passing score of 80%. These measures will enhance the accuracy of rent calculations and ensure adherence to our PHA Administrative Plan and HUD's regulations and timelines. Planned completion date for the corrective action plan: December 31, 2025, and Ongoing Person Responsible: Rachel Pollard and Delta Hoffmeister

View Audit 321234

Finding 498493 (2023-002)

Significant Deficiency 2023

Oklahoma City Housing Authority

OK

HUD Housing Programs Significant Deficiency Internal Control / Segregation of Duties § 200.303

Name(s) of the contact person(s) responsible for corrective action: Richard Marshall Planned completion date for corrective action plan: 12/31/2025 2023-002 Housing Voucher Cluster – Assistance Listing No. 14.871/14.879 – Rent Reasonableness Recommendation: We recommend management to implement contr...

Name(s) of the contact person(s) responsible for corrective action: Richard Marshall Planned completion date for corrective action plan: 12/31/2025 2023-002 Housing Voucher Cluster – Assistance Listing No. 14.871/14.879 – Rent Reasonableness Recommendation: We recommend management to implement controls over the recertification and rent change process to ensure determination of reasonable rent is performed prior to processing of the move in. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: Continue to perform quality control on files and note any pattern that develops for the same type of errors and take corrective action if a pattern develops. Name(s) of the contact person(s) responsible for corrective action: Richard Marshall Planned completion date for corrective action plan: 12/31/2025

View Audit 321203

Finding 498490 (2023-001)

Significant Deficiency 2023

Oklahoma City Housing Authority

OK

HUD Housing Programs Eligibility Significant Deficiency § 200.303

Housing Voucher Cluster – Assistance Listing No. 14.871 / 14.879 – Eligibility Recommendation: We recommend management to implement controls and policies to ensure compliance with eligibility requirements. Additional training for housing specialists would also improve accuracy. Explanation of disagr...

Housing Voucher Cluster – Assistance Listing No. 14.871 / 14.879 – Eligibility Recommendation: We recommend management to implement controls and policies to ensure compliance with eligibility requirements. Additional training for housing specialists would also improve accuracy. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: Monitor and quality control documents as required by HUD. If quality control determines there is a pattern of the same type of discrepancy, then corrective actions will be taken. The finding is based on 2 late reexaminations and failure to automatically identify a client as disabled. This is marked as a repeat finding in the same category, but is not the same type of finding as last year.

View Audit 321203

Finding 498472 (2023-002)

Significant Deficiency 2023

City of Union City

IN

Internal Control / Segregation of Duties Special Tests & Provisions Reporting § 200.303

The City will review the wage-rate testing prepared by the consultant and formally document their review

View Audit 321171

Finding 498471 (2023-001)

Significant Deficiency 2023

City of Union City

IN

Internal Control / Segregation of Duties Cash Management Reporting § 200.303

The City will review the reports prepared by the consultant and formally document their review

View Audit 321171

Finding 498428 (2023-005)

Significant Deficiency 2023

State of Missouri

MO

Allowable Costs / Cost Principles Eligibility Significant Deficiency

State of Missouri Single Audit Corrective Action Plan Year Ended June 30, 2023 State Agency: Department of Social Services (DSS) – MO HealthNet Division (MHD) and Family Support Division (FSD) Audit Finding Number: 2023-005 Medicaid and CHIP MAGI-Based Participant Eligibility Redeterminations...

State of Missouri Single Audit Corrective Action Plan Year Ended June 30, 2023 State Agency: Department of Social Services (DSS) – MO HealthNet Division (MHD) and Family Support Division (FSD) Audit Finding Number: 2023-005 Medicaid and CHIP MAGI-Based Participant Eligibility Redeterminations Name of the contact person responsible for corrective action: Heather Atkins Anticipated completion date for corrective action: N/A Recommendations: The DSS through the MHD and the FSD review and correct cases for participants with manual overrides in the MEDES, ensure redeterminations are completed for these participants as required, and close the cases of any ineligible participants. In addition, the DSS should ensure system controls are functioning as designed for these participants. DSS Response: The DSS disagrees with this finding. The DSS disagrees there is a significant deficiency in internal controls. As noted in the finding, from the 60 participants selected, the SAO did not identify any participants with previously-established overrides; therefore, no incorrect payments were cited. Section 6008 of the Families First Coronavirus Response Act (FFCRA) required states to provide continuous coverage, through the end of the month in which the PHE period ends, to all Medicaid beneficiaries who were enrolled in Medicaid on or after March 18, 2020, regardless of any changes in eligibility unless the individual voluntarily terminated eligibility, is deceased, or moved out of state. As required by the Centers for Medicaid and Medicare Services (CMS) during the PHE, the DSS had processes in place to terminate eligibility for individuals who were deceased, voluntarily requested closure, or reported they have moved out of state when a current change was reported. The Consolidated Appropriations Act, 2023, signed on December 29, 2022, amended section 6008 of the FFCRA such that the continuous enrollment condition ended on March 31, 2023. During the PHE, the DSS did not conduct reviews of cases that did not report current changes. The DSS developed a report identifying all individuals with manual overrides and their certification dates to complete annual reviews on them. The DSS is actively working the report and have initiated annual reviews on all individuals that have had MO HealthNet eligibility for at least twelve consecutive months. The DSS anticipates completing the review of all individuals by August 31, 2024, to account for the required 90 day reconsideration period as required in 42 CFR 435.916.

View Audit 321142

Finding 498387 (2023-004)

Significant Deficiency 2023

Ottawa County District Board of Health

OH

Allowable Costs / Cost Principles Significant Deficiency

Finding Number: 2023-004 Planned Corrective Action: No further funds will be released from the Coronavirus State and Local Fiscal Recovery Funds without written verification that funds are allocated for and spent in accordance with allowable expenditures. Anticipated Completion Date: December 31, ...

Finding Number: 2023-004 Planned Corrective Action: No further funds will be released from the Coronavirus State and Local Fiscal Recovery Funds without written verification that funds are allocated for and spent in accordance with allowable expenditures. Anticipated Completion Date: December 31, 2024 Responsible Contact Person: Jennifer Widmer, County Auditor

View Audit 321127

Finding 498377 (2023-003)

Significant Deficiency 2023

Housing Authority of the City of Omaha

NJ

Questioned Costs HUD Housing Programs Significant Deficiency

Finding 2023-003: Federal Agency: U.S. Department of Housing and Urban Development Federal Program Titles: Section 8 Housing Choice Vouchers Program Federal Assistance Listing Numbers: 14.871 Noncompliance – N. Special Tests and Provisions – Housing Quality Standards (HQS) Enforcement Non Complianc...

Finding 2023-003: Federal Agency: U.S. Department of Housing and Urban Development Federal Program Titles: Section 8 Housing Choice Vouchers Program Federal Assistance Listing Numbers: 14.871 Noncompliance – N. Special Tests and Provisions – Housing Quality Standards (HQS) Enforcement Non Compliance Material to the Financial Statements: No Significant Deficiency in Internal Control over Compliance for Special Tests and Provisions Criteria: HQS Enforcement. For units under HAP contract that fail to meet HQS, the PHA must require the owner to correct all life threatening HQS deficiencies within 24 hours after the inspections and all other deficiencies within 30 days or within a specified PHA-approved extension. Condition: Based upon inspection of the Authority’s files and on discussion with management, the Authority did not properly abate one (1) out of twenty-five (25) annual failed inspections selected for testing. Context: The Authority did not properly abate one (1) out of twenty-five (25) failed inspections selected for testing. As a result, the Authority was not in compliance with the HQS as required by 24 CFR sections 982.158(d) and 982.405(b). Known Questioned Costs: $1,532 Cause: There is a significant deficiency in internal controls over the compliance for the special tests and provisions type of compliance related to HQS enforcement. The Authority has not properly considered, designed, implemented, maintained and monitored a system of internal controls that assures the program is in compliance. Effect: The Section 8 Housing Choice Vouchers Program is in non-compliance with the special tests and provisions type of compliance related to HQS enforcement. Recommendation: We recommend the Authority design and implement internal control procedures that will reasonably assure compliance with the Uniform Guidance and the compliance supplement. View of Responsible Officials and Corrective Actions: The Authority accepts the recommendation of the auditor. The Authority will increase oversight in the Section 8 Housing Choice Vouchers Program to ensure that established internal control policies are being followed on a timely basis. Philisa Smith, HCV Director, is responsible for ensuring proper internal controls are in place to prevent significant deficiencies and material weaknesses from occurring by December 31, 2024.

View Audit 321110 Questioned Costs: $1

Finding 498376 (2023-002)

Significant Deficiency 2023

Housing Authority of the City of Omaha

NJ

Questioned Costs HUD Housing Programs Eligibility

Finding 2023-002 Federal Agency: U.S. Department of Housing and Urban Development Federal Program Titles: Section 8 Housing Choice Vouchers Program, Federal Catalog Numbers: 14.871 Noncompliance - E - Eligibility Non Compliance Material to the Financial Statements: No Significant Deficiency in Inte...

Finding 2023-002 Federal Agency: U.S. Department of Housing and Urban Development Federal Program Titles: Section 8 Housing Choice Vouchers Program, Federal Catalog Numbers: 14.871 Noncompliance - E - Eligibility Non Compliance Material to the Financial Statements: No Significant Deficiency in Internal Control over Compliance Criteria: Tenant Files. The PHA must do the following: As a condition of admission or continued occupancy, require the tenant and other family member to provide necessary information, documentation, and releases for the PHA to verify income eligibility (24 CFR sections 5.230, 5.609, and 982.516). Condition: Based upon inspection of the Authority’s files and on discussion with management, there were documents that were unavailable for examination at the time of audit. Context: Of a sample size of forty-three (43) tenant files, the following information was unavailable for examination at the time of audit: (3) Verification of Income (2) Verification of Assets HUD Form 50058 Our sample size is statistically valid. Known Questioned Costs: 7,162 Cause: There is a significant deficiency in internal controls over the compliance for the eligibility type of compliance related to the maintenance of tenant files. The Authority has not properly considered, designed, implemented, maintained and monitored a system of internal controls that reasonably assures the program is in compliance. Effect: The Section 8 Housing Choice Voucher Program is in non-compliance with the eligibility type of compliance requirements of the program. Recommendation: We recommend the Authority design and implement internal control procedures that will reasonably assure compliance with the Uniform Guidance and the compliance supplement. View of Responsible Officials and Corrective Actions: The Authority accepts the recommendation of the auditor. The Authority will increase oversight in the Section 8 Housing Choice Vouchers Program to ensure that established internal control policies are being followed on a timely basis. Philisa Smith, HCV Director, is responsible for ensuring proper internal controls are in place to prevent significant deficiencies and material weaknesses from occurring by December 31, 2024.

View Audit 321110 Questioned Costs: $1

Finding 498333 (2023-002)

Significant Deficiency 2023

Farmworker Justice

DC

Reporting Allowable Costs / Cost Principles Significant Deficiency § 200.508

Views of Responsible Officials: Management concurs with the recommendation. See the corrective action plan.

View Audit 321069

Finding 498318 (2023-001)

Significant Deficiency 2023

Independent Living Place, Inc.

TX

Questioned Costs HUD Housing Programs Significant Deficiency

CORRECTIVE ACTION PLAN Name and Number of the Project: INDEPENDENT LIVING PLACE, INC. No. 115-EH115 Audit Firm: M Group, LLP Audit Period: The year ended September 30, 2023 Compliance Review A. COMMENTS ON FINDINGS AND RECOMMENDATIONS We concur with the findings and recommendations of our audit...

CORRECTIVE ACTION PLAN Name and Number of the Project: INDEPENDENT LIVING PLACE, INC. No. 115-EH115 Audit Firm: M Group, LLP Audit Period: The year ended September 30, 2023 Compliance Review A. COMMENTS ON FINDINGS AND RECOMMENDATIONS We concur with the findings and recommendations of our auditors regarding our noncompliance as cited in the accompanying Schedule of Findings and Questioned Costs. ACTIONS TAKEN FINDING 1: Section 202 Supportive Housing for the Disabled, Assistance Listing 14.157 and Section 8 Housing Assistance Payments Program, Assistance Listing 14.195 CORRECTIVE ACTION COMPLETED: On August 7, 2024, the Project deposited $2,450 into the replacement reserve account. We have prepared the corrective action plan as required by the standards applicable to financial statements contained in Government Auditing Standards and by the audit requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principals, and Audit Requirements for Federal Awards. Any questions regarding the above corrective action plan should be directed to Mr. Stewart Grounds, Chief Financial Officer of Arnold-Grounds Apartment Management & Affordable Housing Specialists, LLC.

View Audit 321062 Questioned Costs: $1

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