Corrective Action Plans

Finding 16546 (2022-001)

Significant Deficiency 2022

WA

HUD Housing Programs Procurement, Suspension & Debarment Reporting

Finding Reference Number #2022-001 Views of Responsible Officials and Planned Corrective Actions: Management agrees with the finding and is in the process of funding the deficiency. Contact Person Responsible: Tom Anderson Anticipated Completion Date: December 31, 2022

View Audit 20458

Finding 16542 (2022-001)

Significant Deficiency 2022

Lehigh Valley Dual Language Charter School

PA

Allowable Costs / Cost Principles Reporting Significant Deficiency

Finding No. 2022-001 (Cost Segregation) Condition: The Charter School does not segregate federal grant expenditures within the accounting software instead choosing to track the expenditures for each grant in excel. During our audit, we found inconsistencies with where expenditures were reported in t...

Finding No. 2022-001 (Cost Segregation) Condition: The Charter School does not segregate federal grant expenditures within the accounting software instead choosing to track the expenditures for each grant in excel. During our audit, we found inconsistencies with where expenditures were reported in the excel spreadsheet and where they were recorded in the software. Recommendation: We recommend the School utilize a more appropriate software for fund accounting that will allow for the segregation of federal grant expenditures directly in the software using a distinct source code for each grant in accordance with the PDE Chart of Accounts. Corrective Action: Effective July 1, 2022, the School?s general ledger was transitioned from Intuit QuickBooks to Sage Intacct. Sage Intacct provides a more robust chart of accounts using a string of dimension codes which allows for detailed grant expenditure and revenue tracking; including details related to departments/ functions, funds, and both the accrual basis and modified accrual basis of accounting. We believe the new accounting system and chart of accounts will allow for the proper segregation of federal grant expenditures directly in the general ledger in accordance with the PDE Chart of Accounts. Person Responsible: Elsie Perez, CEO Proposed Completion Date: July 1, 2022

View Audit 20450

Finding 16534 (2022-001)

Significant Deficiency 2022

Caritas Villa

OR

HUD Housing Programs Procurement, Suspension & Debarment Eligibility

Caritas Villa respectfully submits the following corrective action plan for the year ended June 30, 2022. Name & address of public accounting firm: Jones & Roth CPAs 260 Country Club Rd. Ste. 100 Eugene OR 97401 Audit Period: June 30, 2022 Major Federal Award Findings: Finding Reference #: 2022-001 ...

Caritas Villa respectfully submits the following corrective action plan for the year ended June 30, 2022. Name & address of public accounting firm: Jones & Roth CPAs 260 Country Club Rd. Ste. 100 Eugene OR 97401 Audit Period: June 30, 2022 Major Federal Award Findings: Finding Reference #: 2022-001 Significant deficiency Recommendation: We recommend management review the current internal control procedures and implement additional procedures to ensure annual recertifications are performed as required by HUD. Corrective Action: Management will work with Cascade Management to improve the internal control procedures to ensure annual recertifications are performed as required by December 31, 2022. Questions regarding this corrective action plan may be directed to Marci Pierce, Chief Financial and Administrative Officer, at (503) 688-2646.

View Audit 20424

Finding 16525 (2022-004)

Significant Deficiency 2022

Foster-Glocester Regional School District

RI

Allowable Costs / Cost Principles Reporting Significant Deficiency § 200.430

Finding: 2022-004 Corrective Action Plan: The District?s payroll process is significantly lacking proper control procedures. With the hiring of a new financial manager, policies, procedures and controls will be implemented immediately, including the proper tracking of time and effort for employees...

Finding: 2022-004 Corrective Action Plan: The District?s payroll process is significantly lacking proper control procedures. With the hiring of a new financial manager, policies, procedures and controls will be implemented immediately, including the proper tracking of time and effort for employees charged to federal grants as required. Anticipated Completion Date: September 1, 2023 Contact Person: Amanda Raymond, Director of Finance

View Audit 20393

Finding 16505 (2022-003)

Significant Deficiency 2022

Grand Rapids Christian Schools

MI

School Nutrition Programs Internal Control / Segregation of Duties Cash Management

#2022-003 - Significant Deficiency in Controls over Compliance: Lack of Review over Reporting Recommendations: We understand that many, if not all locations participating in the meal programs have since either reverted back to using the electronic system for counting students, or plan to do so in th...

#2022-003 - Significant Deficiency in Controls over Compliance: Lack of Review over Reporting Recommendations: We understand that many, if not all locations participating in the meal programs have since either reverted back to using the electronic system for counting students, or plan to do so in the near term. We recommend that any remaining manual reports/tally sheets be reviewed prior to submitting counts for reimbursement. Views of Responsible Officials and Planned Corrective Actions: ? Because student meals are no longer free in the 2022-23 school year, GRCS is returning to the electronic system for counting student meals.

View Audit 20389

Finding 16325 (2022-005)

Significant Deficiency 2022

Moorhead Public Housing Agency

MN

Internal Control / Segregation of Duties Eligibility Significant Deficiency

Contact Person Dawn Bacon, Executive Director Corrective Action Plan Staff will perform quality control review for the Public and Indian Housing program. Going forward a sample of files will be reviewed on a semi-annual basis. Planned Completion Date for CAP FY2023

View Audit 23038

Finding 16324 (2022-004)

Significant Deficiency 2022

Moorhead Public Housing Agency

MN

Eligibility Significant Deficiency

Contact Person Dawn Bacon, Executive Director Corrective Action Plan Error occurred due to lack of oversight in review of calculation of annual income and underlying support. We continue to confirm that all total tenant payment (TTP) calculations are matched to verification of income and deductions ...

Contact Person Dawn Bacon, Executive Director Corrective Action Plan Error occurred due to lack of oversight in review of calculation of annual income and underlying support. We continue to confirm that all total tenant payment (TTP) calculations are matched to verification of income and deductions documentation in tenant files. Planned Completion Date for CAP FY2023

View Audit 23038

Finding 16106 (2022-005)

Significant Deficiency 2022

State of Washington C/o Office of Financial Management

WA

Subrecipient Monitoring Internal Control / Segregation of Duties Equipment & Real Property Management

Finding: The Employment Security Department did not have adequate internal controls to ensure it submitted accurate monthly reports for the Unemployment Insurance program. Questioned Costs: Assistance Listing # 17.225 17.225 COVID-19 Amount $0 Status: Corrective action complete Correctiv...

Finding: The Employment Security Department did not have adequate internal controls to ensure it submitted accurate monthly reports for the Unemployment Insurance program. Questioned Costs: Assistance Listing # 17.225 17.225 COVID-19 Amount $0 Status: Corrective action complete Corrective Action: The Department implemented a secondary review of the monthly ETA 9055 performance report to verify the data pulled from source documentation is accurately represented prior to submitting to the federal reporting system. Completion Date: May 2023 Agency Contact: Jay Summers External Audit Manager PO Box 9046 Olympia, WA 98507-9046 (360) 529-6718 Joshua.Summers@esd.wa.gov

View Audit 23129

Finding 16104 (2022-004)

Significant Deficiency 2022

State of Washington C/o Office of Financial Management

WA

Subrecipient Monitoring Procurement, Suspension & Debarment Allowable Costs / Cost Principles

Finding: The Department of Health did not have adequate internal controls to ensure payments to providers were allowable, met cost principles, and were within the period of performance for the Special Supplemental Nutrition Program for Women, Infants, and Children. Questioned Costs: Assistance L...

Finding: The Department of Health did not have adequate internal controls to ensure payments to providers were allowable, met cost principles, and were within the period of performance for the Special Supplemental Nutrition Program for Women, Infants, and Children. Questioned Costs: Assistance Listing # 10.557 10.557 COVID-19 Amount $0 Status: Corrective action not taken Corrective Action: The Department disagrees with the auditor?s assessment of a significant deficiency in internal controls over the consolidated contract provider payment process for the Special Supplemental Nutrition Program for Women, Infants, and Children (WIC). The Department has established processes in place to ensure payments are allowable, meet cost principles, and comply with period of performance requirements for the WIC program. These include: ? Perform annual review and approval of detailed subrecipient budgets. ? Compare invoice amounts to budgeted amounts for reasonableness before payment approval. ? Provide subrecipients regular technical assistance and training on applicable policies related to fiscal and programmatic processes. ? Conduct biennial program and fiscal monitoring visits to subrecipients as part of the Department?s monitoring procedures. In addition, the WIC program has monitoring controls in place and evidence of review at the program level. The quality assurance program staff maintain a detailed payment log that documents review and approval and details any amounts that need to be withheld until issues with invoice support are resolved. These reviews are to be completed within the 10-day period before payment is released. Similar conditions noted in this finding were previously reported in finding 2021-004. Completion Date: Not applicable Agency Contact: Jeff Arbuckle External Audit Manager PO Box 47890 Olympia, WA 98504-7890 (360) 701-0798 Jeff.Arbuckle@doh.wa.gov

View Audit 23129

Finding 16089 (2022-003)

Significant Deficiency 2022

Guajome Park Academy

CA

Subrecipient Monitoring Reporting Significant Deficiency

We have hired Charterwise as our CPAs. They are charter school finance experts who provide support for a number of charter schools and they are familiar with the changing landscape that is school finance. They will be working with our payroll and finance team to provide monthly reports and updates t...

We have hired Charterwise as our CPAs. They are charter school finance experts who provide support for a number of charter schools and they are familiar with the changing landscape that is school finance. They will be working with our payroll and finance team to provide monthly reports and updates to help ensure that the closing process takes place more smoothly at the end of the fiscal year. These new processes will be installed and implemented this year and will be carried out by the same team next year which will lead to a continuity of services. Additionally, they will use those monthly reports along with a calendar that they have developed with key dates and deadlines to ensure all deadlines are met with accurate reporting.

View Audit 19591

Finding 16088 (2022-001)

Significant Deficiency 2022

Southern New Jersey Regional Early Intervention Collaborative, Inc.

NJ

Allowable Costs / Cost Principles Subrecipient Monitoring Significant Deficiency

Southern New Jersey Regional Early Intervention Collaborative, Inc. has drafted a new policy and procedure ?new employee payroll processing?. The new policy ensures that there is a uniform mechanism for documenting, recording, and verifying all necessary employee information that is required to acc...

Southern New Jersey Regional Early Intervention Collaborative, Inc. has drafted a new policy and procedure ?new employee payroll processing?. The new policy ensures that there is a uniform mechanism for documenting, recording, and verifying all necessary employee information that is required to accurately enroll employees into the Asure payroll system. Employee who was underpaid was owed an additional $6.92 for each pay, for a total of 6 pay periods. The retro check was issued with the 9/16/2022 payroll. Jennifer Buzby, Executive Director will be responsible for the implementation of the corrective action plan

View Audit 19589

Finding 16082 (2022-002)

Significant Deficiency 2022

State of Washington C/o Office of Financial Management

WA

Subrecipient Monitoring Internal Control / Segregation of Duties Special Tests & Provisions § 200.1

Finding: The University of Washington did not have adequate internal controls to ensure key personnel commitments specified in grant proposals or awards were met. Questioned Costs: Assistance Listing # Various Amount $0 Status: Corrective action in progress Corrective Action: The Univer...

Finding: The University of Washington did not have adequate internal controls to ensure key personnel commitments specified in grant proposals or awards were met. Questioned Costs: Assistance Listing # Various Amount $0 Status: Corrective action in progress Corrective Action: The University has established internal controls to ensure compliance with key personnel program requirement through time and effort certifications, project reporting processes, and budget reconciliation requirements. Additionally, the University offers multiple training courses to research administrators and principal investigators (PI) on management of sponsored awards. The University agrees there are areas for improvement over staff and PI training, and resources available to monitor contribution and documentation of committed levels of time and effort. The University will implement the following improvements: ? Update training materials and provide additional training to PIs and key personnel on: o Documentation of time and effort. o Prior approval requirements for reductions in time and effort. ? Update guidance and instructions for time and effort certifications to ensure all personnel involvement in various grant programs is properly accounted for during the certification process. ? Develop exception reports to provide additional oversight to monitor deviations from committed time and effort for PIs and key personnel. Completion Date: Estimated February 2024 Agency Contact: Erick Winger Controller 4300 Roosevelt Way NE Seattle, WA 98195 (206) 543-5322 erickw@uw.edu

View Audit 23129

Finding 16024 (2022-001)

Significant Deficiency 2022

St. Louis Public School District

MI

School Nutrition Programs Special Tests & Provisions Cash Management

St. Louis Public Schools Correction Action Plan for audit finding number (2022-001) Responsible party: Charles Clevenger, Stacey Haag and Jennifer McKittrick Expected completion date: June 30, 2023 Excess fund balance of $48,421 in Food Service Fund To Whom it May Concern, The Superintendent and the...

St. Louis Public Schools Correction Action Plan for audit finding number (2022-001) Responsible party: Charles Clevenger, Stacey Haag and Jennifer McKittrick Expected completion date: June 30, 2023 Excess fund balance of $48,421 in Food Service Fund To Whom it May Concern, The Superintendent and the Food service director will be working together to purchase the following items immediately to spend down the excess fund balance in our food service fund prior to June 30, 2023. We will be looking at areas of improvement in our food service program such as replacing sections of ceiling. We will also be looking to purchase some additional equipment during this time frame, including garbage disposals.

View Audit 22895

Finding 16023 (2022-002)

Significant Deficiency 2022

Mille Lacs Energy Cooperative

MN

Reporting Significant Deficiency

Finding 2022-002 Preparation of the Schedule of Expnditures of Federal Awards Significant Deficiency in Internal Control over Compliance Program Name: United States Department of Agriculture; Community-Oriented Connectivity Broadband Grant; Federal Assistance Listing #10.863 Finding Summary: The ...

Finding 2022-002 Preparation of the Schedule of Expnditures of Federal Awards Significant Deficiency in Internal Control over Compliance Program Name: United States Department of Agriculture; Community-Oriented Connectivity Broadband Grant; Federal Assistance Listing #10.863 Finding Summary: The Cooperative does not have an internal control system designed to provide for the preparation of the Schedule of Expenditures of Federal Awards. Responsible Individuals: Lincoln Messner, Accounting and Finance Manager Corrective Action Plan: Having auditors assist with preparing the schedule of expenditures of federal awards (SEFA) is not unusual. This finidng would generally be included as part of the financial statement audit under Government Auditing Standards (Yellowbook). As the financial statemetn audit had been issued prior to the compliance being completed, this finding needed to be identified seperately. Anticipated Completion Date: December 2023

View Audit 22300

Finding 16021 (2022-005)

Significant Deficiency 2022

Harry S. Truman Community Development Corporation

MO

Subrecipient Monitoring Significant Deficiency

2022-05 Recommendation: The Organization is continuing to engage a third-party accounting firm to assist in recording accounting transactions for the Organization. Because the accounting firm has worked all year with the Organization expects the June 30, 2023, and future year-end closings to be pr...

2022-05 Recommendation: The Organization is continuing to engage a third-party accounting firm to assist in recording accounting transactions for the Organization. Because the accounting firm has worked all year with the Organization expects the June 30, 2023, and future year-end closings to be prepared and delivered to the CPA audit firm sooner so that the audit can be submitted to the Clearinghouse well in advance of the required due date. Corrective Action The Organization acknowledges the need for additional preparation and Planned: scheduling in order to allow the external audit to be completed in a timely manner. Anticipated The Organization is currently on pace to meet the Clearinghouse Implementation filing deadline. Date:

View Audit 19588

Finding 16016 (2022-001)

Significant Deficiency 2022

Caritas Plaza

OR

HUD Housing Programs Procurement, Suspension & Debarment Eligibility

Caritas Plaza respectfully submits the following corrective action plan for the year ended June 30, 2022. Name & address of public accounting firm: Jones & Roth CPAs 260 Country Club Rd. Ste. 100 Eugene OR 97401 Audit Period: June 30, 2022 Major Federal Award Findings: Finding Reference #: 2022-001 ...

Caritas Plaza respectfully submits the following corrective action plan for the year ended June 30, 2022. Name & address of public accounting firm: Jones & Roth CPAs 260 Country Club Rd. Ste. 100 Eugene OR 97401 Audit Period: June 30, 2022 Major Federal Award Findings: Finding Reference #: 2022-001 Significant deficiency Recommendation: We recommend management review the current internal control procedures and implement additional procedures to ensure annual recertifications are performed as required by HUD. Corrective Action: Management will work with Cascade Management to improve the internal control procedures to ensure annual recertifications are performed as required by December 31, 2022. Questions regarding this corrective action plan may be directed to Marci Pierce, Chief Financial and Administrative Officer, at (503) 688-2646.

View Audit 19584

Finding 15992 (2022-048)

Significant Deficiency 2022

State of Washington C/o Office of Financial Management

WA

Subrecipient Monitoring Allowable Costs / Cost Principles Internal Control / Segregation of Duties

Finding: The Department of Children, Youth, and Families did not have adequate internal controls to ensure payments to providers for travel and family visits were allowable and adequately supported for the Foster Care program. Questioned Costs: Assistance Listing # 93.658 93.658 COVID-19 St...

Finding: The Department of Children, Youth, and Families did not have adequate internal controls to ensure payments to providers for travel and family visits were allowable and adequately supported for the Foster Care program. Questioned Costs: Assistance Listing # 93.658 93.658 COVID-19 Status: Corrective action in progress Corrective Action: The Department is committed to strengthening internal controls and complying with grant requirements. In response to the auditor?s recommendations, the Department will work with the Financial and Business Services Division and Foster Care Program to review the fiscal monitoring procedures to ensure payments to providers for travel and family visits are allowable and adequately supported. The conditions noted in this finding were previously reported in finding 2021-040. Completion Date: Estimated December 2023 Agency Contact: Stefanie Niemela Audit Liaison PO Box 40970 Olympia, WA 98504-0970 (360) 725-4402 stefanie.niemela@dcyf.wa.gov

View Audit 23129

Finding 15956 (2022-004)

Significant Deficiency 2022

Human Services of Faribault and Martin Counties

MN

Reporting Significant Deficiency Internal Control / Segregation of Duties

2022-004 TIMELY REPORTING Federal Agency: U.S. Department of Health and Human Services Federal Program Name: Medical Assistance Program (Medicaid Cluster) Assistance Listing Number: 93.778 Federal Award Identification Numbers and Year: 2205MN5MAP and 2205MN5ADM, 2022 Pass-Through Agency: ...

2022-004 TIMELY REPORTING Federal Agency: U.S. Department of Health and Human Services Federal Program Name: Medical Assistance Program (Medicaid Cluster) Assistance Listing Number: 93.778 Federal Award Identification Numbers and Year: 2205MN5MAP and 2205MN5ADM, 2022 Pass-Through Agency: Minnesota Department of Human Services Pass-Through Numbers: 2205MN5MAP and 2205MN5ADM Compliance Requirement Affected: Reporting Award Period: Year-Ended December 31, 2022 Type of Finding: Significant Deficiency in Internal Control over Compliance and Other Matters Recommendation: It is recommended the Agency implement control procedures to ensure all reporting deadlines are met. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: The Agency will review procedures and implement changes as needed to ensure going forward all reports are submitted timely. Name of the contact person responsible for corrective action plan: Chera Sevcik, Human Services Executive Director Planned completion date for corrective action plan: December 31, 2023

View Audit 22857

Finding 15948 (2022-005)

Significant Deficiency 2022

Chesapeake Research Consortium, Inc.

MD

Allowable Costs / Cost Principles Reporting Significant Deficiency

Environmental Protection Agency Chesapeake Bay Program - Grant No. CB96343601; Grant period - Year ended June 30, 2022 FINDING 2022-005: Internal Controls Over Financial Reporting Recommendation: Accounting processes and procedures should be reviewed and revised to include the process of all...

Environmental Protection Agency Chesapeake Bay Program - Grant No. CB96343601; Grant period - Year ended June 30, 2022 FINDING 2022-005: Internal Controls Over Financial Reporting Recommendation: Accounting processes and procedures should be reviewed and revised to include the process of allocating and recording credit card bills to corresponding grants. Action Taken: We concur with the recommendation and will adjust our processes accordingly.

View Audit 19565

Finding 15940 (2022-003)

Significant Deficiency 2022

Syracuse Model Neighborhood Facility, Inc.

NY

Cash Management Significant Deficiency

Significant Deficiency 2022-003 Application of Cash Receipts Contact Person Responsible for Corrective Action Plan: Lawrence Williams, Chief Executive Officer. Corrective Action Plan: The Chief Executive Officer and Chief Financial Officer will ensure that all cash receipts are properly applied to...

Significant Deficiency 2022-003 Application of Cash Receipts Contact Person Responsible for Corrective Action Plan: Lawrence Williams, Chief Executive Officer. Corrective Action Plan: The Chief Executive Officer and Chief Financial Officer will ensure that all cash receipts are properly applied to the appropriate grant receivable funder and utilize any deferred revenue from the funder where appropriate. Anticipated Completion Date of Corrective Action Plan: December 31, 2023

View Audit 19559

Finding 15939 (2022-002)

Significant Deficiency 2022

Syracuse Model Neighborhood Facility, Inc.

NY

Cash Management Significant Deficiency

Significant Deficiency 2022-002 Grant Voucher Submissions Contact Person Responsible for Corrective Action Plan: Lawrence Williams, Chief Executive Officer. Corrective Action Plan: The Chief Executive Officer and Chief Financial Officer will ensure that all vouchers are prepared and submitted on a...

Significant Deficiency 2022-002 Grant Voucher Submissions Contact Person Responsible for Corrective Action Plan: Lawrence Williams, Chief Executive Officer. Corrective Action Plan: The Chief Executive Officer and Chief Financial Officer will ensure that all vouchers are prepared and submitted on a timely basis. Anticipated Completion Date of Corrective Action Plan: December 31, 2023

View Audit 19559

Finding 15932 (2022-001)

Significant Deficiency 2022

Connections to Success

MO

Eligibility Significant Deficiency Internal Control / Segregation of Duties

Type of Finding: Significant Deficiency in Internal Control Over Compliance ? Eligibility Recommendation: The Organization should ensure that controls exist to document and provide evidence of review procedure in effect to ensure that eligibility requirements are met beyond the initial inquiries an...

Type of Finding: Significant Deficiency in Internal Control Over Compliance ? Eligibility Recommendation: The Organization should ensure that controls exist to document and provide evidence of review procedure in effect to ensure that eligibility requirements are met beyond the initial inquiries and information gathering process. Views of Responsible Officials: There is no disagreement with the audit finding. Eligibility requirements are obtained and documented based on the requirements of the individual grants. The program staff are well versed in the requirements and ensure the participants are eligible under the grant. In August 2021, to enhance the existing practice, a Case Management system was implemented which assists in ensuring that proper documentation and approval are maintained. In September 2023, the case management system was looked over and rules were put into place to minimize or eliminate room for human error.

View Audit 19762

Finding 15931 (2022-005)

Significant Deficiency 2022

South Carolina State Housing Finance and Development Authority

SC

Reporting Significant Deficiency Internal Control / Segregation of Duties

COVID-19 Emergency Rental Assistance ? Assistance Listing Number 21.023 Recommendation: We recommend the Authority implements controls to ensure that documentation is maintained to support amounts reported. Review and approval of the amounts reported to Treasury should be documented. Explanation of ...

COVID-19 Emergency Rental Assistance ? Assistance Listing Number 21.023 Recommendation: We recommend the Authority implements controls to ensure that documentation is maintained to support amounts reported. Review and approval of the amounts reported to Treasury should be documented. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: SC Housing has expended the majority of the COVID-19 Emergency Rental Assistance funds, and the program will be ending in the coming months. The close-out plan includes the transfer and archive of all data from the third-party vendor working to implement the program. A protocol was implemented with the closeout report to Treasury for ERA1 funds in January, 2023, to retain all documentation supporting the report, and all reports moving forward, in SC Housing program files. Review of future reports by the Division Director prior to submission to Treasury will be added to the reporting process. Names of the contact persons responsible for corrective action: Amanda Colbert, Marni Holloway Planned completion date for corrective action plan: partially implemented, review will begin with next report due in April, 2023.

View Audit 19599

Finding 15918 (2022-004)

Significant Deficiency 2022

South Carolina State Housing Finance and Development Authority

SC

Significant Deficiency Internal Control / Segregation of Duties

Housing Voucher Cluster ? Assistance Listing Numbers 14.871/14.879 Recommendation: We recommend the Authority implements controls to ensure that rent reasonableness is determined prior to the effective date of the change in rent. Explanation of disagreement with audit finding: There is no disagreeme...

Housing Voucher Cluster ? Assistance Listing Numbers 14.871/14.879 Recommendation: We recommend the Authority implements controls to ensure that rent reasonableness is determined prior to the effective date of the change in rent. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: Additional training is being provided to HCP staff to insure they have a clear understanding of the rent reasonableness requirements and timing imposed by HUD. Financing Housing. Building SC. Processes have been updated to require dual authentication. Within 10 business days of receiving a request from the owner for a rent increase, or; within 10 business days of receipt of a decrease request received from HUD, or; when there has been a 10% decrease in the fair market rent that goes into effect at least 60 days before the contract anniversary date, the Housing Program Coordinator (HPC) will make a rent reasonableness determination and approve a corresponding rent adjustment when applicable. Following assessment and action determination, all files will be reviewed a second time by a Housing Administration Coordinator for accuracy and appropriateness. Both the HPC and the Administration Coordinator will be required to acknowledge the request/action taken in writing. Late actions must be justified and reviewed by the Director of Rental Assistance and Compliance prior to effecting the change and/or issuing correspondence. Memo records will be recorded on each voucher file to document actions taken. Names of the contact persons responsible for corrective action: Yolanda Dennison, Kristel Walker, Lenzy Morris, Corrie Temples Planned completion date for corrective action plan: Partially implemented; to be finalized by June 30, 2023.

View Audit 19599

Finding 15917 (2022-003)

Significant Deficiency 2022

South Carolina State Housing Finance and Development Authority

SC

HUD Housing Programs Significant Deficiency Internal Control / Segregation of Duties

Housing Voucher Cluster ? Assistance Listing Numbers 14.871/14.879 Recommendation: We recommend that the Authority sets up a separate interestbearing account and executes a depository agreement with their financial institution and HUD; alternatively, we recommend that the Authority obtains a waiver ...

Housing Voucher Cluster ? Assistance Listing Numbers 14.871/14.879 Recommendation: We recommend that the Authority sets up a separate interestbearing account and executes a depository agreement with their financial institution and HUD; alternatively, we recommend that the Authority obtains a waiver from this requirement if local regulation prohibits the Authority from following 24 CFR section 982.156. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: Housing Voucher Cluster funds are held by the Treasurer for the State of South Carolina. The depository agreements in place are between the depository institution and the state Treasurer. SC Housing has contacted HUD via email and requested a waiver for this regulatory requirement. An update will be provided when available. Name of the contact person responsible for corrective action: Lisa Wilkerson Planned completion date for corrective action plan: Waiver request submitted to HUD local field office on March 29, 2023.

View Audit 19599

Corrective Action Plans

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