Corrective Action Plans

Finding 26356 (2022-003)

Significant Deficiency 2022

Community Action Association of Pennsylvania

PA

Internal Control / Segregation of Duties Significant Deficiency

CORRECTIVE ACTION PLAN February 16, 2023 Community Action Association of Pennsylvania respectfully submits the following corrective action plan for the year ended June 30, 2022. Cognizant or Oversight Agency for Audit: Community Service Block Grant Program Name and address of independent publi...

CORRECTIVE ACTION PLAN February 16, 2023 Community Action Association of Pennsylvania respectfully submits the following corrective action plan for the year ended June 30, 2022. Cognizant or Oversight Agency for Audit: Community Service Block Grant Program Name and address of independent public accounting firm: Hamilton & Musser, PC 176 Cumberland Parkway Mechanicsburg, PA 17055 Audit Period: July 1, 2021 ? June 30, 2022 The findings from the June 30, 2022 schedule of findings and questioned costs are discussed below. The findings are numbered consistently with the number assigned in the schedule. Findings ? Financial Statement Audit Significant Deficiencies #2022-001 ? Significant Deficiency ? Segregation of Duties Recommendation We recommend someone other than the Finance Director, preferably the CEO or another office staff, open the mail and record/scan the checks received into a check log. View of responsible officials and planned corrective action The Executive Administrative Assistant is now tasked with and responsible for opening the mail and recording the checks into a check log. The Executive Administrative Assistant will forward checks to the financial services team for additional action steps. #2022-002 ? Significant Deficiency ? Authorization and Approval Recommendation We recommend that all credit card charges are matched to a receipt and reviewed and approved by both the Board President and Board Treasurer, as is the policy with other payables/disbursements. This eliminates the risk associated with having the CEO issue approval over his own credit card charges. View of responsible officials and planned corrective action All credit card receipts will be submitted by the CEO or appropriate staff member to the financial services team. Credit card reconciliation documentation and appropriate receipts will be provided to the Board Treasurer for regular review. -28- Findings ? Financial Statement Audit (Continued) #2022-003 ? Significant Deficiency ? Authorization and Approval Recommendation Non-cash journal entries make it easy for organizations to overstate their revenue or understate their expenses with unsubstantiated accruals/deferrals. We recommend that all journal entries be authorized and approved by the CEO prior to entry. View of responsible officials and planned corrective action As noted, this is no longer an issue with internal controls having been corrected as of December 31, 2021. All non-recurring journal entries will be approved by the CEO. Findings ? Federal Award Programs Audit Community Service Block Grant, CFDA #93.569 #2022-004 ? Significant Deficiency ? Allowable Costs Recommendation We recommend maintaining weekly timesheets with CEO approval, itemized by time allocated per grant. The financial statement records should be supported by direct time allocated to the grant as indicated on the approved timesheets. View of responsible officials and planned corrective action CAAP will do its due diligence in appropriately allocating costs should similar costs be incurred. If the Community Service Block Grant Program has questions regarding this plan, please call Community Action Association of Pennsylvania Chief Executive Officer Beck Moore at 717-233-1075 extension 12.

View Audit 27273

Finding 26355 (2022-002)

Significant Deficiency 2022

Community Action Association of Pennsylvania

PA

Significant Deficiency Internal Control / Segregation of Duties

CORRECTIVE ACTION PLAN February 16, 2023 Community Action Association of Pennsylvania respectfully submits the following corrective action plan for the year ended June 30, 2022. Cognizant or Oversight Agency for Audit: Community Service Block Grant Program Name and address of independent publi...

CORRECTIVE ACTION PLAN February 16, 2023 Community Action Association of Pennsylvania respectfully submits the following corrective action plan for the year ended June 30, 2022. Cognizant or Oversight Agency for Audit: Community Service Block Grant Program Name and address of independent public accounting firm: Hamilton & Musser, PC 176 Cumberland Parkway Mechanicsburg, PA 17055 Audit Period: July 1, 2021 ? June 30, 2022 The findings from the June 30, 2022 schedule of findings and questioned costs are discussed below. The findings are numbered consistently with the number assigned in the schedule. Findings ? Financial Statement Audit Significant Deficiencies #2022-001 ? Significant Deficiency ? Segregation of Duties Recommendation We recommend someone other than the Finance Director, preferably the CEO or another office staff, open the mail and record/scan the checks received into a check log. View of responsible officials and planned corrective action The Executive Administrative Assistant is now tasked with and responsible for opening the mail and recording the checks into a check log. The Executive Administrative Assistant will forward checks to the financial services team for additional action steps. #2022-002 ? Significant Deficiency ? Authorization and Approval Recommendation We recommend that all credit card charges are matched to a receipt and reviewed and approved by both the Board President and Board Treasurer, as is the policy with other payables/disbursements. This eliminates the risk associated with having the CEO issue approval over his own credit card charges. View of responsible officials and planned corrective action All credit card receipts will be submitted by the CEO or appropriate staff member to the financial services team. Credit card reconciliation documentation and appropriate receipts will be provided to the Board Treasurer for regular review. -28- Findings ? Financial Statement Audit (Continued) #2022-003 ? Significant Deficiency ? Authorization and Approval Recommendation Non-cash journal entries make it easy for organizations to overstate their revenue or understate their expenses with unsubstantiated accruals/deferrals. We recommend that all journal entries be authorized and approved by the CEO prior to entry. View of responsible officials and planned corrective action As noted, this is no longer an issue with internal controls having been corrected as of December 31, 2021. All non-recurring journal entries will be approved by the CEO. Findings ? Federal Award Programs Audit Community Service Block Grant, CFDA #93.569 #2022-004 ? Significant Deficiency ? Allowable Costs Recommendation We recommend maintaining weekly timesheets with CEO approval, itemized by time allocated per grant. The financial statement records should be supported by direct time allocated to the grant as indicated on the approved timesheets. View of responsible officials and planned corrective action CAAP will do its due diligence in appropriately allocating costs should similar costs be incurred. If the Community Service Block Grant Program has questions regarding this plan, please call Community Action Association of Pennsylvania Chief Executive Officer Beck Moore at 717-233-1075 extension 12.

View Audit 27273

Finding 26354 (2022-001)

Significant Deficiency 2022

Community Action Association of Pennsylvania

PA

Internal Control / Segregation of Duties Significant Deficiency

CORRECTIVE ACTION PLAN February 16, 2023 Community Action Association of Pennsylvania respectfully submits the following corrective action plan for the year ended June 30, 2022. Cognizant or Oversight Agency for Audit: Community Service Block Grant Program Name and address of independent publi...

CORRECTIVE ACTION PLAN February 16, 2023 Community Action Association of Pennsylvania respectfully submits the following corrective action plan for the year ended June 30, 2022. Cognizant or Oversight Agency for Audit: Community Service Block Grant Program Name and address of independent public accounting firm: Hamilton & Musser, PC 176 Cumberland Parkway Mechanicsburg, PA 17055 Audit Period: July 1, 2021 ? June 30, 2022 The findings from the June 30, 2022 schedule of findings and questioned costs are discussed below. The findings are numbered consistently with the number assigned in the schedule. Findings ? Financial Statement Audit Significant Deficiencies #2022-001 ? Significant Deficiency ? Segregation of Duties Recommendation We recommend someone other than the Finance Director, preferably the CEO or another office staff, open the mail and record/scan the checks received into a check log. View of responsible officials and planned corrective action The Executive Administrative Assistant is now tasked with and responsible for opening the mail and recording the checks into a check log. The Executive Administrative Assistant will forward checks to the financial services team for additional action steps. #2022-002 ? Significant Deficiency ? Authorization and Approval Recommendation We recommend that all credit card charges are matched to a receipt and reviewed and approved by both the Board President and Board Treasurer, as is the policy with other payables/disbursements. This eliminates the risk associated with having the CEO issue approval over his own credit card charges. View of responsible officials and planned corrective action All credit card receipts will be submitted by the CEO or appropriate staff member to the financial services team. Credit card reconciliation documentation and appropriate receipts will be provided to the Board Treasurer for regular review. -28- Findings ? Financial Statement Audit (Continued) #2022-003 ? Significant Deficiency ? Authorization and Approval Recommendation Non-cash journal entries make it easy for organizations to overstate their revenue or understate their expenses with unsubstantiated accruals/deferrals. We recommend that all journal entries be authorized and approved by the CEO prior to entry. View of responsible officials and planned corrective action As noted, this is no longer an issue with internal controls having been corrected as of December 31, 2021. All non-recurring journal entries will be approved by the CEO. Findings ? Federal Award Programs Audit Community Service Block Grant, CFDA #93.569 #2022-004 ? Significant Deficiency ? Allowable Costs Recommendation We recommend maintaining weekly timesheets with CEO approval, itemized by time allocated per grant. The financial statement records should be supported by direct time allocated to the grant as indicated on the approved timesheets. View of responsible officials and planned corrective action CAAP will do its due diligence in appropriately allocating costs should similar costs be incurred. If the Community Service Block Grant Program has questions regarding this plan, please call Community Action Association of Pennsylvania Chief Executive Officer Beck Moore at 717-233-1075 extension 12.

View Audit 27273

Finding 26351 (2022-003)

Significant Deficiency 2022

Community Food Bank of Eastern Oklahoma, INC

OK

Subrecipient Monitoring Eligibility Allowable Costs / Cost Principles

Item 2022-003 ? Software Access Restrictions Significant Deficiency Recommendation: New employees should be evaluated for proper software access and authority. The ability to edit subrecipient eligibility status should be limited to key partner agency personnel, and the Organization should routinel...

Item 2022-003 ? Software Access Restrictions Significant Deficiency Recommendation: New employees should be evaluated for proper software access and authority. The ability to edit subrecipient eligibility status should be limited to key partner agency personnel, and the Organization should routinely review the list of authorized users for accuracy. The organization monitors subrecipient eligibility through software. Only certain users should be having access to edit sub recipient eligibility status. In one of five selections an employee was improperly granted authority to edit subrecipient eligibility status. Management Views: Management agrees with the finding. Action Planned: New employees will be reviewed for appropriate levels of access upon Onboarding. Checklist will be maintained in department and periodically reviewed. Anticipated Completion Date: June 30,2023 Responsible Party: Ying Thao, IT Director

View Audit 26275

Finding 26329 (2022-001)

Significant Deficiency 2022

Unleashing Potential

MO

Allowable Costs / Cost Principles Subrecipient Monitoring Cash Management

Finding 2022-001 Personnel Responsible for Corrective Action: President/CEO ? Darlene Sowell Anticipated Completion Date: November 1, 2023 Corrective Action Plan: The Organization has modified it?s internal control procedures to include a monthly review of actual hours incurred compared to the est...

Finding 2022-001 Personnel Responsible for Corrective Action: President/CEO ? Darlene Sowell Anticipated Completion Date: November 1, 2023 Corrective Action Plan: The Organization has modified it?s internal control procedures to include a monthly review of actual hours incurred compared to the estimated amounts by individuals assigned to federal grant projects prior to requesting reimbursement from the funding source. The review will be performed by an individual, other than the preparer of the reimbursement request, with knowledge of the federal grant program and will be formally documented.

View Audit 21561

Finding 26300 (2022-002)

Significant Deficiency 2022

Annex Teen Clinic, Inc.

MN

Reporting Significant Deficiency Internal Control / Segregation of Duties

Finding 2022-002: Significant Deficiency - Separation of Duties Condition The origination and completion of single transactions should not be under the control of the same individual. Each transaction should pass through two or more individuals with the result that the work of one is under the rev...

Finding 2022-002: Significant Deficiency - Separation of Duties Condition The origination and completion of single transactions should not be under the control of the same individual. Each transaction should pass through two or more individuals with the result that the work of one is under the review of another. Corrective Action Plan Journal Entry transactions will be done by either Staff Account or GL Accountant at MACC and reviewed by Controller, all adjustments must be reviewed and approved by the controller. If ATC management request any adjustment controller must receive email with Brian Russ cc?d for approval. Names of Contact Persons Responsible for Corrective Action: Victoria Robinson, Brian Russ Anticipated Completion Date: October, 2023

View Audit 20929

Finding 26298 (2022-002)

Significant Deficiency 2022

Timber Hills Housing of Alcorn County, INC

MS

Eligibility HUD Housing Programs Significant Deficiency

CORRECTIVE ACTION PLAN SEPTEMBER 30, 2022 U. S. Department of Housing and Urban Development Timber Hills Housing of Alcorn County, Inc. (the "Project") respectfully submits the following corrective action plan for the year ended September 30, 2022. Audit Firm: Harper, Rains, Knight & Company, P.A. 1...

CORRECTIVE ACTION PLAN SEPTEMBER 30, 2022 U. S. Department of Housing and Urban Development Timber Hills Housing of Alcorn County, Inc. (the "Project") respectfully submits the following corrective action plan for the year ended September 30, 2022. Audit Firm: Harper, Rains, Knight & Company, P.A. 1052 Highland Colony Parkway, Suite 100 Ridgeland, MS 39157 Audit Period: Year Ended September 30, 2022 Audit Finding Reference: 2022-002 Planned Corrective Action: Management will ensure that the Project has all required forms for each tenant. Name of Contact Person: If the U. S. Department of Housing and Urban Development for audit has questions regarding this plan, please call Scott Russell at 601-856-2362. Sincerely, Timber Hills Housing of Alcorn County, Inc.

View Audit 18247

Finding 26292 (2022-002)

Significant Deficiency 2022

Housing Authority of the City of Muncie

IN

Questioned Costs HUD Housing Programs Significant Deficiency

Finding 2022-002 Significant Deficiency in Internal Control over Financial Reporting; Significant Deficiency in Internal Control over Compliance Corrective Action Plan: HCV staff will be trained on established procedures. The HCV Manager will conduct quarterly file audits (selecting samples randomly...

Finding 2022-002 Significant Deficiency in Internal Control over Financial Reporting; Significant Deficiency in Internal Control over Compliance Corrective Action Plan: HCV staff will be trained on established procedures. The HCV Manager will conduct quarterly file audits (selecting samples randomly) to ensure that staff members are following established procedures. Name of Responsible Person: Shannel Lampkins, HCV Manager Projected Completion Date: March 31, 2023

View Audit 23243 Questioned Costs: $1

Finding 26291 (2022-001)

Significant Deficiency 2022

Housing Authority of the City of Muncie

IN

HUD Housing Programs Reporting Significant Deficiency

Finding 2022-001 Significant Deficiency in Internal Control over Financial Reporting; Significant Deficiency in Internal Control over Compliance Corrective Action Plan: HCV staff will be trained on established procedures. The HCV Manager will conduct quarterly file audits (selecting samples randomly...

Finding 2022-001 Significant Deficiency in Internal Control over Financial Reporting; Significant Deficiency in Internal Control over Compliance Corrective Action Plan: HCV staff will be trained on established procedures. The HCV Manager will conduct quarterly file audits (selecting samples randomly) to ensure that staff members are following established procedures. Name of Responsible Person: Shannel Lampkins, HCV Manager Projected Completion Date: March 31, 2023

View Audit 23243

Finding 26251 (2022-002)

Significant Deficiency 2022

Southeastern Electric Cooperative

SD

Allowable Costs / Cost Principles Cash Management Significant Deficiency § 200.303

Finding 2022-002 Federal Agency Name: Department of Homeland Security & Emergency Management Program Name: Disaster Grants ? Public Assistance Federal Financial Assistance Listing # 97.036 Finding Summary: Equipment costs were claimed for reimbursement and match that used the 2019 FEMA equipment ra...

Finding 2022-002 Federal Agency Name: Department of Homeland Security & Emergency Management Program Name: Disaster Grants ? Public Assistance Federal Financial Assistance Listing # 97.036 Finding Summary: Equipment costs were claimed for reimbursement and match that used the 2019 FEMA equipment rates for combination rate vehicles instead of the applicable 2017 FEMA equipment rates for combination rate vehicles. In addition, the Cooperative submitted equipment costs for reimbursement and match that duplicated usage of certain vehicles. Responsible Individuals: Jon Wunder, Chief Financial Officer and Jay Cleveland, Accounting Manager. Corrective Action Plan: The Cooperative met the threshold for a single audit for the first time in several years. To make the process as efficient as possible, the Cooperative developed an excel template that summarizes the Cooperative?s accounting data into formats that are summarized for FEMA submission, review and audit. Once the errors were identified by the auditors, a revised claim was calculated and submitted for reimbursement. The Cooperative used this template for two FEMA submissions in 2022 and continues to refine the output measured by input from reviewers and auditors. In addition, the Cooperative will develop a written process that details the preparation and review of the excel template and submitted costs. Anticipated Completion Date: June 30, 2023

View Audit 22994

Finding 26235 (2022-001)

Significant Deficiency 2022

Wagner College

NY

Student Financial Aid Reporting Significant Deficiency

Finding 2022-001 ? Special Tests and Provisions ? Enrollment Reporting Name of contact person responsible for corrective action: John Carrescia jcarresc@wagner.edu 718-420-4264 Corrective action: The College has been working diligently across multiple departments to make these historical correcti...

Finding 2022-001 ? Special Tests and Provisions ? Enrollment Reporting Name of contact person responsible for corrective action: John Carrescia jcarresc@wagner.edu 718-420-4264 Corrective action: The College has been working diligently across multiple departments to make these historical corrections. We have identified the various groupings of students that require correction, and have worked through our historical data to update the program begin date (campus level data) to be the first day of the earliest semester for which each student began attending their respective program. We have submitted the listings to the National Student Clearinghouse for revision. We currently have a process in place and are working collaboratively with our information technology system analysts to implement controls to ensure the correct program begin date is used for all future students entering the College. We are now in the process of reviewing and updating our program level enrollment data.

View Audit 23421

Finding 26227 (2022-001)

Significant Deficiency 2022

Unified School District No. 254

KS

Subrecipient Monitoring Significant Deficiency Internal Control / Segregation of Duties

Finding 2022-001 - Lack of Segregation of Duties The District understands that this is a significant deficiency but feels it is not cost-effective at this time to hire additional employees to properly segregate duties. We feel that the oversight performed by the Superintendent and Board of Educati...

Finding 2022-001 - Lack of Segregation of Duties The District understands that this is a significant deficiency but feels it is not cost-effective at this time to hire additional employees to properly segregate duties. We feel that the oversight performed by the Superintendent and Board of Education over the financial statement activity and reports of the District is adequate to help mitigate the lack of segregation of duties. We believe it would be inefficient and cost prohibitive to hire the additional employees needed to properly segregate duties so at this time we do no plan on making any changes. However, we will continue to monitor this situation and periodically determine if it is cost-effective for us to properly segregate duties.

View Audit 22916

Finding 26187 (2022-003)

Significant Deficiency 2022

St. Luke's Home and St. Luke's Home Foundation

ND

Special Tests & Provisions Significant Deficiency Matching / Level of Effort / Earmarking § 200.303

Finding 2022-003 Federal Agency Name: Department of Agriculture Program Name: Community Facilities Loans and Grants Finding Summary: There was no formal review separate from the preparer performed over reconciliations of the USDA program reserve funds. Responsible Individuals: Amy Kreidt, CEO/Adm...

Finding 2022-003 Federal Agency Name: Department of Agriculture Program Name: Community Facilities Loans and Grants Finding Summary: There was no formal review separate from the preparer performed over reconciliations of the USDA program reserve funds. Responsible Individuals: Amy Kreidt, CEO/Administrator and Brenda Thronburg, Accountant Corrective Action Plan: Management will ensure a review separate from the preparer of the reconciliation for the Organization's reserve fund is completed with formal documentation noting the review. Anticipated Completion Date: 3/31/2023

View Audit 25663

Finding 26177 (2022-002)

Significant Deficiency 2022

Palestine Gardens, INC

MO

Questioned Costs HUD Housing Programs Special Tests & Provisions

Finding 2022-002 Responsible Party Name: Ju Chinnery Position: Property Accountant Telephone Number: (816)246-9220 PALESTINE GARDENS, INC. 2627 EAST 33RD STREET KANSAS CITY, MO 64128 48 Federal Agency Department of Housing and Urban Development Federal Program Mortgage Insurance for the Purchase or ...

Finding 2022-002 Responsible Party Name: Ju Chinnery Position: Property Accountant Telephone Number: (816)246-9220 PALESTINE GARDENS, INC. 2627 EAST 33RD STREET KANSAS CITY, MO 64128 48 Federal Agency Department of Housing and Urban Development Federal Program Mortgage Insurance for the Purchase or Refinancing of Existing Multifamily Housing Projects (Sec 207/223(F)) Compliance Requirements N ? Special Tests and Provisions Finding Type Federal Awards Auditee?s Comment on Finding We agree with the auditor?s finding. Corrective Action We will deposit the shortfall of $912 into the reserve for replacement account. Anticipated Completion Date June 30, 2023

View Audit 23691 Questioned Costs: $1

Finding 26174 (2022-003)

Significant Deficiency 2022

Palestine Gardens North, INC

MO

Special Tests & Provisions Subrecipient Monitoring HUD Housing Programs

Finding 2022-003 Responsible Party Name: Ju Chinnery Position: Property Accountant Telephone Number: (816) 246-9220 Federal Agency Department of Housing and Urban Development Federal Program Supportive Housing for the Elderly (Section 202) Compliance Requirements N ? Special Tests and Provisions Fin...

Finding 2022-003 Responsible Party Name: Ju Chinnery Position: Property Accountant Telephone Number: (816) 246-9220 Federal Agency Department of Housing and Urban Development Federal Program Supportive Housing for the Elderly (Section 202) Compliance Requirements N ? Special Tests and Provisions Finding Type Federal Awards Auditee?s Comment on Finding We agree with the auditor?s finding. Corrective Action We will follow our procedure to ensure tenants requesting maintenance of property via work orders are completed in a timely manner and required documentation is retained in our records. Anticipated Completion Date May 4, 2023

View Audit 23630

Finding 26173 (2022-002)

Significant Deficiency 2022

Palestine Gardens North, INC

MO

Questioned Costs Special Tests & Provisions Subrecipient Monitoring

Finding 2022-002 Responsible Party Name: Ju Chinnery Position: Property Accountant Telephone Number: (816) 246-9220 Federal Agency Department of Housing and Urban Development Federal Program Supportive Housing for the Elderly (Section 202) Compliance Requirements N ? Special Tests and Provisions Fin...

Finding 2022-002 Responsible Party Name: Ju Chinnery Position: Property Accountant Telephone Number: (816) 246-9220 Federal Agency Department of Housing and Urban Development Federal Program Supportive Housing for the Elderly (Section 202) Compliance Requirements N ? Special Tests and Provisions Finding Type Federal Awards Auditee?s Comment on Finding We agree with the auditor?s finding. Corrective Action We will compare the security deposit liability to the security deposit asset each month as part of our monthly closing process. Anticipated Completion Date June 30, 2023

View Audit 23630 Questioned Costs: $1

Finding 26172 (2022-001)

Significant Deficiency 2022

Palestine Gardens North, INC

MO

Questioned Costs Special Tests & Provisions Subrecipient Monitoring

CORRECTIVE ACTION PLAN FOR THE YEAR ENDED DECEMBER 31, 2022 Title 2, U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance), Subpart F, Section 511 ? Audit Findings Follow-up requires the auditee t...

CORRECTIVE ACTION PLAN FOR THE YEAR ENDED DECEMBER 31, 2022 Title 2, U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance), Subpart F, Section 511 ? Audit Findings Follow-up requires the auditee to prepare a corrective action plan to address each audit finding included in the current year auditor?s reports. The Corrective Action Plan for Current Year Findings present our corrective action plan for the Financial Statement and/or Federal Award Findings described in the accompanying Schedule of Findings and Questioned Costs for the period ended December 31, 2022. Finding 2022-001 Responsible Party Name: Ju Chinnery Position: Property Accountant Telephone Number: (816)246-9220 Federal Agency Department of Housing and Urban Development Federal Program Supportive Housing for the Elderly (Section 202) Compliance Requirements N ? Special Tests and Provisions Finding Type Federal Awards Auditee?s Comment on Finding We agree with the auditor?s finding. Corrective Action As of the date of the audit report, we have deposited the shortfall of $14,056 into the reserve for replacement account. Anticipated Completion Date May 4, 2023

View Audit 23630 Questioned Costs: $1

Finding 26159 (2022-002)

Significant Deficiency 2022

Hayward Community School District

WI

Reporting Significant Deficiency Internal Control / Segregation of Duties

Significant Deficiency ? Annual Financial Reporting Under Generally Accepted Accounting Principles (GAAP) Fiscal Year: 2022 District?s Response: We concur. Views of Responsible Officials and Corrective Action: The District has made a cost/benefit decision to have the audit firm prepare drafts of it...

Significant Deficiency ? Annual Financial Reporting Under Generally Accepted Accounting Principles (GAAP) Fiscal Year: 2022 District?s Response: We concur. Views of Responsible Officials and Corrective Action: The District has made a cost/benefit decision to have the audit firm prepare drafts of its annual financial statements in accordance with GAAP and to prepare the Schedule of Federal Expenditures of Awards. The District will continue to review the draft of the annual financial statements and the Schedule of Federal Expenditures of Awards and raise questions and/or concerns before the statements are released. Name of Responsible Person: Jenifer Frank, Business Manager Projected Implementation Date: Estimated, June 2023

View Audit 20778

Finding 26117 (2022-001)

Significant Deficiency 2022

Village Cooperative of Lee's Summit

MO

Internal Control / Segregation of Duties Significant Deficiency

The Board of Directors is and will remain involved in the financial affairs of the Cooperative.

View Audit 25689

Finding 26116 (2022-003)

Significant Deficiency 2022

Housing Authority of the City of Beaumont

TX

HUD Housing Programs Significant Deficiency Special Tests & Provisions

Finding 2022-003 Federal Agency: U.S. Department of Housing and Urban Development Federal Program Titles: Public and Indian Housing Program Federal Catalog Numbers: 14.850 Noncompliance ? N. Special Tests and Provisions - Recording of Declarations of Trust/Declaration of Restrictive Covenants A...

Finding 2022-003 Federal Agency: U.S. Department of Housing and Urban Development Federal Program Titles: Public and Indian Housing Program Federal Catalog Numbers: 14.850 Noncompliance ? N. Special Tests and Provisions - Recording of Declarations of Trust/Declaration of Restrictive Covenants Against Public Housing Property Non Compliance Material to the Financial Statements: No Significant Deficiency in Internal Control over Compliance for Special Tests and Provisions Criteria: A current Declaration of Trust ("DOT"), in a form acceptable to HUD, must be recorded against all public housing property owned by PHAs (or private entities for public housing developed under 24 CFR Part 905, Subpart F) that has been acquired, developed, maintained, or assisted with funds from the US Housing Act of 1937. A DOT is a legal instrument that grants HUD an interest in public housing property. Condition: Based upon inspection of the Authority?s files and on discussion with management, there were properties that the Authority owns and insures that did not have DOTs on file during the time of audit. Context: The Authority owns six (6) public housing properties. During the audit, it was noted that two (2) out of six (6) public housing properties did not have DOTs on file. Cause: There is a significant deficiency in internal controls over the compliance for the special tests and provisions type of compliance related to the recording of DOTs against public housing property. The Authority has not properly filed DOTs in compliance with program requirements. Effect: The Public and Indian Housing Program is in non-compliance with the special tests and provisions type of compliance related to the recording of DOTs against public housing property. Recommendation: We recommend the Authority design and implement a corrective action plan that will assure compliance with the Uniform Guidance and the compliance supplement. Views of responsible officials and planned corrective action: The Authority accepts the recommendation of the auditor and will design and implement internal controls over compliance in order to ensure all necessary DOTs are recorded. Allison Landrum, Chief Executive Officer, is responsible for implementing this corrective action by September 30, 2023.

View Audit 23692

Finding 26115 (2022-002)

Significant Deficiency 2022

Housing Authority of the City of Beaumont

TX

HUD Housing Programs Significant Deficiency Internal Control / Segregation of Duties

Finding 2022-002 Federal Agency: U.S. Department of Housing and Urban Development Federal Program Titles: Section 8 Housing Choice Vouchers Programs Federal Catalog Numbers: 14.871 Noncompliance ? N. Special Tests and Provisions - Housing Quality Standards Non Compliance Material to the Financi...

Finding 2022-002 Federal Agency: U.S. Department of Housing and Urban Development Federal Program Titles: Section 8 Housing Choice Vouchers Programs Federal Catalog Numbers: 14.871 Noncompliance ? N. Special Tests and Provisions - Housing Quality Standards Non Compliance Material to the Financial Statements: No Significant Deficiency in Internal Control over Compliance for Special Tests and Provisions Criteria: Housing Quality Standards Inspections. The PHA must inspect the unit leased to a family at least annually to determine if the unit meets the Housing Quality Standards (HQS) and the PHA must conduct quality control re-inspections. The PHA must prepare a unit inspection report (24 CFR sections 982.158(d) and 982.405(b)). For units that fail inspection the PHA must correct all life threatening HQS deficiencies within 24 hours and all other deficiencies within 30 days. Condition: Based upon inspection of the Authority?s files and on discussion with management, there were failed inspections that did not pass reinspection within 30 days without penalty. Context: There are approximately 489 units with failed inspections. Of a sample size of twenty-five (25) failed inspections, three (3) failed inspections did not pass reinspection within 30 days. HAP was not abated nor was the tenant evicted. Our sample size is statistically valid. Cause: There is a significant deficiency in internal controls over the compliance for the special tests and provisions type of compliance related to HQS inspections. The Authority has not properly performed HQS inspections in compliance with program requirements following the expiration of HUD waivers as a result of insufficient staffing. Effect: The Section 8 Housing Choice Vouchers Program is in non-compliance with the special tests and provisions type of compliance related to HQS inspections. Recommendation: We recommend the Authority design and implement a corrective action plan that will assure compliance with the Uniform Guidance and the compliance supplement. Views of responsible officials and planned corrective action: The Authority accepts the recommendation of the auditor. The affected files relate to the software conversion from HAB to Yardi. BHA has completed the software conversion, and this should not be an issue going forward. Allison Landrum, Chief Executive Officer, is responsible for implementing this corrective action by September 30, 2023.

View Audit 23692

Finding 26114 (2022-001)

Significant Deficiency 2022

Housing Authority of the City of Beaumont

TX

HUD Housing Programs Eligibility Significant Deficiency

Finding 2022-001 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 ? Tenant Files Non Compliance Material to the Financial Statements: No Significant ...

Finding 2022-001 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 ? Tenant Files Non Compliance Material to the Financial Statements: No Significant Deficiency in Internal Control over Compliance for Eligibility. 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). These files are required to be maintained and available for examination at the time of audit. 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: There are approximately 1,805 units. Of a sample size of thirty-one (31) tenant files, the following was noted: ? Annual inspection report was missing in 1 file ? HUD 50058 Form was missing in 1 file ? Verification of income and assets was missing in 1 file. Our sample size is statistically valid. 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 assures the program is in compliance. Effect: The Section 8 Housing Choice Vouchers Program is in non-compliance with the eligibility type of compliance related to the maintenance of tenant files. Recommendation: We recommend the Authority design and implement internal control procedures that will assure compliance with the Uniform Guidance and the compliance supplement. Views of responsible officials and planned corrective action: The Authority accepts the recommendation of the auditor. The affected files relate to clients that have been on the program for decades and as files get large, archiving takes place. To correct this finding, a directive will be issued to staff that will ensure that when files are archived the original application must be placed in the current working file going forward. Allison Landrum, Chief Executive Officer, is responsible for implementing this corrective action by September 30, 2023.

View Audit 23692

Finding 26105 (2022-003)

Significant Deficiency 2022

Shiprock Assiciated Schools, Inc.

NM

Special Tests & Provisions Significant Deficiency

2022 003 Special Tests and Provisions Compliance (Significant Deficiency) Federal program information Funding Agency U.S. Department of Interior Title Indian School Equalization Program Federal Assistance Listing Number 15.042 Questioned Costs None Condition: During our testwork over special tes...

2022 003 Special Tests and Provisions Compliance (Significant Deficiency) Federal program information Funding Agency U.S. Department of Interior Title Indian School Equalization Program Federal Assistance Listing Number 15.042 Questioned Costs None Condition: During our testwork over special tests and provisions, we noted 3 instances where the employee's background and character investigation were not completed before these employees started working, 2 instances where we did not see the certification of investigation and adjudication. Criteria: The Indian Child Protection and Family Violence Prevention Act (25 USC 3201 et seq.) requires Indian tribes and tribal organizations that receive funds under the ISDEAA or the Tribally Controlled Schools Act to conduct an investigation of the character of each individual who is employed or is being considered for employment by such Indian tribe or tribal organization in a position that involves regular contact with, or control over, Indian children. The Act further states that the Indian tribe or tribal organization may employ individuals in those positions only if the individual meet standards of character, no less stringent than those prescribed under Subpart B ? Minimum Standards of Character and Suitability for Employment (25 CFR part 63), as the Indian tribe or tribal organization establishes. Cause: The School policies were not followed or were not in place. Effect: The School is not in compliance with the special tests and provision compliance requirement. Auditor's Recommendation: We recommend that the School ensure that employees follow the policies and procedures that are in place along with the compliance requirements for the Indian School Equalization Program and ensure that the compliance requirement is being followed. Management Response: ? The HR department is currently following a Personnel Checklist for Background Checks revised in SY 22-23. The checklist is to ensure new hires who are on boarding complete the required background checks and other required personnel documents. The board approved the date, verification of completing and I-9 form and additional notes. ? Provide training for administrators and supervisors on the proper hiring and on boarding process following the SASI Personnel Policies & Procedures. Estimated Completion Date: We will work with the auditors and complete by next audit next year. Responsible Party: SASI Administration Team

View Audit 20587

Finding 26093 (2022-001)

Significant Deficiency 2022

New Jersey Association on Correction and Morrow Holding Corporation

NJ

Reporting Significant Deficiency

The Organization plans to reorganize job duties and increase staff in the finance department to assist in the preparation of quarterly fiscal and programmatic reports to file on a timely basis. This was a result of staff turnover which created delays in filing complete and accurate reports.

View Audit 20585

Finding 26080 (2022-002)

Significant Deficiency 2022

Northern Wyoming Community College District

WY

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

Finding 2022-002 Federal Agency Name: Department of Education Program Name: Student Financial Assistance Cluster FAL #: 84.063, 84.007, 84.268, 84.033 Finding Summary: 34 CFR Section 668.22 states that when a recipient of Title IV grant or loan assistance withdraws from an institution during a pa...

Finding 2022-002 Federal Agency Name: Department of Education Program Name: Student Financial Assistance Cluster FAL #: 84.063, 84.007, 84.268, 84.033 Finding Summary: 34 CFR Section 668.22 states that when a recipient of Title IV grant or loan assistance withdraws from an institution during a payment period or period of enrollment in which the recipient began attendance, the institution must determine the amount of Title IV grant or loan assistance that the student earned as of the student's withdrawal date. During our testing of compliance with Return of Title IV Funds (R2T4), there was 1 instance out of 38 where the District calculated the incorrect amount to be returned to the Department of Education (ED). Responsible Individuals: Heidi Balster, Director of Student Financial Aid Corrective Action Plan: During each payment period of an award year, the Financial Aid Office will review 20% of all R2T4 calculations (unduplicated) to ensure accuracy of the calculation and students? earned aid. The Financial Aid Office will use the random (RAND) formula in Excel to randomly select the R2T4 student population for testing. Within one week after all midterm grades are posted for the payment period, the Financial Aid Office will randomly select 10% of R2T4 calculations processed and review each calculation to ensure the correct period of enrollment was used in the calculation. After the end of each payment period, within a week after all unofficial withdrawals are processed, the Financial Aid Office will randomly select an additional 10% of R2T4 calculations (unduplicated) and review each calculation to ensure the correct period of enrollment was used in the calculation. If it is determined that a student?s R2T4 calculation is incorrect, the Financial Aid Office will complete the following steps prior to processing a corrected R2T4 calculation: 1. Obtain screenshots of incorrect R2T4 calculation and print copies into the Perceptive Content imaging system 2. Purge the incorrect R2T4 calculation and leave comments in student?s record for reason of purged calculation 3. Update all Title IV aid awards back to original amounts disbursed prior to R2T4 calculation 4. Run the Colleague?s Batch FA Transmittal Register (FATR) process and review aid adjustments 5. Notify the Business Office to have them run the Batch FA Transmittal Update (FATP) process 6. Once FATP is processed, re-run R2T4 calculation with the corrected enrollment Anticipated Completion Date: January 2023

View Audit 22863

Corrective Action Plans

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