Corrective Action Plans

Finding 554589 (2024-021)

Significant Deficiency 2024

State of Oregon

OR

Eligibility Reporting Significant Deficiency

2024-021 Oregon Department of Human Services Obtain accurate information from the ONE application Management Response: We agree with this recommendation. ODHS will continue to monitor and review the ACF-199 and ACF-209 prior to submission. The review will include a sample of JOBS eligible individual...

2024-021 Oregon Department of Human Services Obtain accurate information from the ONE application Management Response: We agree with this recommendation. ODHS will continue to monitor and review the ACF-199 and ACF-209 prior to submission. The review will include a sample of JOBS eligible individuals who do not have countable work activities in the ACF reports, to confirm that their TRACS personal development plan (PDP) accurately reflects engagement and activities in which the individual is engaged. Additionally, ODHS will implement a tracking system to ensure the review of reports is clearly documented. ODHS will continue to work with our vendor to secure a SOC 2 Type II audit of our processes and oversight of the ONE system in 2025. Additionally, ODHS will work on amending the ONE Maintenance & Operations agreement with Deloitte for them to obtain a scoped SOC 2 Type II audit related to their work within the ONE system. ODHS would expect to negotiate this additional audit requirement in 2025 with the first audit then happening in 2026. Anticipated Completion Date: December 31, 2025 Contact Person: Eva Ruiz, TANF program manager

View Audit 353285

Finding 554587 (2024-029)

Significant Deficiency 2024

State of Oregon

OR

Eligibility Period of Performance Reporting

2024-029 Oregon Commission for the Blind Strengthen internal controls to ensure performance data reports are accurate Management Response: We agree with the recommendation. The agency is committed to ensuring the RSA-911 client case information report is accurate, and to ensuring the agency’s case m...

2024-029 Oregon Commission for the Blind Strengthen internal controls to ensure performance data reports are accurate Management Response: We agree with the recommendation. The agency is committed to ensuring the RSA-911 client case information report is accurate, and to ensuring the agency’s case management system is well-documented and current. This issue was initially identified during the statewide single audit for the period ended June 30, 2023. In response to the prior year’s finding, the agency created a new case-note category for documenting client employment start date and wages at exit. Compliance with this new control is then verified as part of our pre-closure case file review process. The agency will continue to provide training to staff on the use of this case note category to ensure we are consistently documenting the start date of employment in the primary occupation and the hourly wage at exit. Anticipated Completion Date: July 1, 2025 Contact person: Angel Hale, Director of Vocational Rehabilitation Services

View Audit 353285

Finding 554586 (2024-028)

Significant Deficiency 2024

State of Oregon

OR

Eligibility Period of Performance Reporting

2024-028 Oregon Department of Human Services Strengthen internal controls to ensure performance data reports are accurate Management Response: We agree with this recommendation. We agree with the recommendation and will ensure adequate supporting documentation is maintained and readily available to ...

2024-028 Oregon Department of Human Services Strengthen internal controls to ensure performance data reports are accurate Management Response: We agree with this recommendation. We agree with the recommendation and will ensure adequate supporting documentation is maintained and readily available to support information reported in the RSA-911. We will update internal controls related to this matter. Anticipated Completion Date: September 30, 2024 Contact Person: Bryan Campbell, Vocational Rehabilitation Operations Manager

View Audit 353285

Finding 554584 (2024-038)

Significant Deficiency 2024

State of Oregon

OR

Reporting Significant Deficiency Internal Control / Segregation of Duties § 200.303

2024-038 Oregon Business Development Department Implement controls over reporting Management Response: We agree with this recommendation. The submission of the quarterly financial reports by Business Oregon to DAS CFRT is on-going and within the submission deadline of DAS CFRT staff. When preparing ...

2024-038 Oregon Business Development Department Implement controls over reporting Management Response: We agree with this recommendation. The submission of the quarterly financial reports by Business Oregon to DAS CFRT is on-going and within the submission deadline of DAS CFRT staff. When preparing for the quarterly financial report, the accounting/financial data has been prepared by our accountant and reviewed by Business Oregon’s accounting manager. The data is then submitted to program staff to complete the programmatic narrative and other performance-related information to further explain or describe the transactions for the reporting period, and then program staff submits the quarterly report to DAS CFRT. Going forward, to ensure reports submitted to DAS CFRT match with accounting records, management will make procedure changes by routing the report back to the accounting team for final review of financial data after program has entered their part of the report before sending to DAS CFRT. We will implement this process change effective immediately for the quarterly report ending March 2025. For the cumulative variance of $1.6 million, Business Oregon will conduct research to determine the cause of the variance. The under-reporting of expenses on the quarterly report ending June 2024 could be the result of data provided to DAS in mid-July 2024, to meet DAS CFRT reporting deadline, when the fiscal month of June 2024 was not officially closed until early August 2024. While the fiscal year-end process was still on-going through August 2024, the month of June is still open for accrual entries or adjustments, resulting to more expenditures in accounting records than what was reported to DAS in July. Business Oregon will perform reconciliation of data from 2020 to March 2025 to true up the expenditures reported in the accounting records and the reports submitted to DAS CFRT. Anticipated Completion Date: March 31, 2025 Contact person: Imee Anderson, Chief Financial Officer, Mia Seo, Deputy-Chief Financial Officer, Rory Spencer, Accounting Manager

View Audit 353285

Finding 554580 (2024-034)

Significant Deficiency 2024

State of Oregon

OR

HUD Housing Programs Reporting Significant Deficiency § 200.328

2024-034 Oregon Housing and Community Services Department Quarterly Performance Report should include all expenditures incurred to date Management Response: The agency agrees with this finding. Quarterly performance report requirements will be reviewed with staff and additional oversight will be add...

2024-034 Oregon Housing and Community Services Department Quarterly Performance Report should include all expenditures incurred to date Management Response: The agency agrees with this finding. Quarterly performance report requirements will be reviewed with staff and additional oversight will be added to ensure accurate reporting occurs. Corrective reports will be filed to the extent allowed by HUD. Anticipated Completion Date: June 30, 2025 Contact person: Beth Brown, Controller

View Audit 353285

Finding 554579 (2024-036)

Significant Deficiency 2024

State of Oregon

OR

Subrecipient Monitoring Reporting Significant Deficiency

2024-036 Oregon Business Development Department Implement controls and submit delinquent FFATA reports Management Response: We partially agree with this recommendation. Business Oregon has prepared and submitted FFATA reports in SAM.gov through 2023, and had done so yearly since 2011. Due to staff t...

2024-036 Oregon Business Development Department Implement controls and submit delinquent FFATA reports Management Response: We partially agree with this recommendation. Business Oregon has prepared and submitted FFATA reports in SAM.gov through 2023, and had done so yearly since 2011. Due to staff turnover, Business Oregon has not completed loading the data for FFATA reporting for 2024. Business Oregon is currently in the process of compiling the data pertaining to CDBG grant awards and other federal grant awards that met the criteria for FFATA reporting. Business Oregon will formally assign this reporting task and create written procedures regarding preparation of the FFATA reports to ensure a complete list of recipients or subawards is reported in SAM.gov in a timely manner. The estimated completion date of this corrective action is 6/30/2025. Anticipated Completion Date: June 30, 2025 Contact person: Imee Anderson, Chief Financial Officer, Mia Seo, Deputy-Chief Financial Officer, Rory Spencer, Accounting Manager, Jon Unger, CDBG Program Manager

View Audit 353285

Finding 554578 (2024-035)

Significant Deficiency 2024

State of Oregon

OR

HUD Housing Programs Period of Performance Reporting § 200.302

2024-035 Oregon Business Development Department Ensure CDBG expenditures are recorded in SFMA under the appropriate grant year Management Response: We agree with this recommendation. In February of 2025, the agency’s accountant assigned to this program began a full reconciliation of the CDBG program...

2024-035 Oregon Business Development Department Ensure CDBG expenditures are recorded in SFMA under the appropriate grant year Management Response: We agree with this recommendation. In February of 2025, the agency’s accountant assigned to this program began a full reconciliation of the CDBG program from FY 2020 to FY 2024. We have identified the differences between our accounting records in SFMA and what has been recorded through IDIS, our portal to request funds from the federal government. As of March 2025, we are beginning to finalize our reconciliation of administrative funds and our own agency’s matching contributions. Once incorporating this first step, our accounting staff will continue with a full project reconciliation for the current fiscal year, 2025. Any errors or adjustments identified will be corrected in this current fiscal year. This reconciliation between accounting records in SFMA and IDIS is expected to be complete in May of 2025. Anticipated Completion Date: May 31, 2025 Contact person: Imee Anderson, Chief Financial Officer, Mia Seo, Deputy-Chief Financial Officer, Rory Spencer, Accounting Manager, Jon Unger, CDBG Program Manager

View Audit 353285

Finding 554577 (2024-042)

Significant Deficiency 2024

State of Oregon

OR

Questioned Costs Period of Performance Cash Management

2024-042 Oregon Military Department Ensure payroll expenditures are coded to the correct period and errors are corrected timely Management Response: We agree with this recommendation. OMD acknowledges the finding regarding payroll expenditures coded outside the period of performance. We are committe...

2024-042 Oregon Military Department Ensure payroll expenditures are coded to the correct period and errors are corrected timely Management Response: We agree with this recommendation. OMD acknowledges the finding regarding payroll expenditures coded outside the period of performance. We are committed to strengthening controls to ensure payroll expenses are properly recorded and errors are promptly corrected. OMD will implement following corrective actions to address the recommendation made in the Audit Report. • All Payroll Coding Review Procedures: Establish a mandatory review process before finalizing payroll reimbursement requests to verify the correct coding of federal fiscal year allocations. • Timely Error Correction Process: Develop a formal procedure to ensure errors are identified and corrected within 60-90 days of discovery. • Training and Oversight: Conduct mandatory training for finance and payroll personnel on proper coding procedures and compliance with federal performance periods. • Review and Correction of Prior Year Coding Errors (FFY 2019, 2022, and 2023): Conduct a comprehensive review of payroll expenditures from FFY 2019, 2022, and 2023 to identify and correct any remaining errors. This process will involve reconciling payroll records with federal grant periods, adjusting accounting records, and ensuring proper documentation for any necessary retroactive corrections. Anticipated completion date: January 31, 2026. Contact person: Adam Giblin, Chief Financial Officer.

View Audit 353285 Questioned Costs: $1

Finding 554576 (2024-041)

Significant Deficiency 2024

State of Oregon

OR

Period of Performance Significant Deficiency Internal Control / Segregation of Duties

2024-041 Oregon Military Department Ensure undisbursed obligation extension support is retained Management Response: We agree with this recommendation. The Oregon Military Department (OMD) acknowledges the finding related to the retention of support for undisbursed obligation extensions. We recogniz...

2024-041 Oregon Military Department Ensure undisbursed obligation extension support is retained Management Response: We agree with this recommendation. The Oregon Military Department (OMD) acknowledges the finding related to the retention of support for undisbursed obligation extensions. We recognize the importance of maintaining documentation to support the extensions of General Terms and Conditions (GTC) Cooperative Agreement (CA) Awards to ensure compliance with federal regulations and avoid potential funding risks. OMD will implement following corrective actions to address the recommendation made in the Audit Report. • Standardized Documentation Process: We will develop and implement a standardized process for tracking and retaining all submitted GTA CA Award extensions, including detailed listings of un-cleared obligations and projected liquidation timelines. • Internal Review and Monitoring: A designated team within the finance division will conduct quarterly reviews of undisbursed obligations to ensure compliance with extension requirements. • Training and Accountability: Training will be provided to relevant personnel on the importance of documentation retention, compliance requirements, and the consequences of noncompliance. Management will also assign accountability measures to track adherence to the new procedures. Anticipated completion date: June 30, 2025. Contact person: Adam Giblin, Chief Financial Officer.

View Audit 353285

Finding 554575 (2024-031)

Significant Deficiency 2024

State of Oregon

OR

Subrecipient Monitoring Reporting School Nutrition Programs § 200.303

2024-031 Department of Education Implement controls to ensure FFATA reporting is completed for all required subawards Management Response: ODE agrees with this finding. To strengthen controls and ensure FFATA reporting is completed for all required subawards, ODE plans to implement the following pro...

2024-031 Department of Education Implement controls to ensure FFATA reporting is completed for all required subawards Management Response: ODE agrees with this finding. To strengthen controls and ensure FFATA reporting is completed for all required subawards, ODE plans to implement the following process improvements: • Collaborate with the Child Nutrition program management and Fiscal Grants team to provide full documentation of grant awards including terms, conditions and attachments. • Update ODE’s grant profile request Smartsheet tool to: o Identify FFATA eligibility prior to setting up a new grant award in the accounting system. o Automatically notify the FFATA team of new grant awards that require reporting. Anticipated Completion Date: June 30, 2025 Contact person: Kristie Miller, Accounting Director

View Audit 353285

Finding 554574 (2024-002)

Significant Deficiency 2024

Okc Charter Santa Fe South Schools No. G-021

OK

Equipment & Real Property Management Procurement, Suspension & Debarment Significant Deficiency § 200.313

Amend the property records invenotry procedures to follow 2 CFR Section 200.313 (3 through (2); see the criteria of the finding for the detailed list of requirements.

View Audit 353277

Finding 554549 (2024-005)

Significant Deficiency 2024

Falmouth Housing Authority

MA

HUD Housing Programs Reporting Significant Deficiency

2024-005 - REPORTING Significant Deficiency Auditee’s Response and Planned Corrective Action FHA is implementing a Capital Fund close out checklist quarterly review process. The Executive Director and accounting team will participate in additional capital funding courses to improve its knowledge and...

2024-005 - REPORTING Significant Deficiency Auditee’s Response and Planned Corrective Action FHA is implementing a Capital Fund close out checklist quarterly review process. The Executive Director and accounting team will participate in additional capital funding courses to improve its knowledge and practices of required submission deadlines and government policy changes, if any. The new Fiscal Officer is tasked with monitoring submission deadlines via HUD’s EPIC and eLOCCS platforms. Planned Implementation Date of Corrective Action: Immediate Person Responsible for Corrective Action: Bobbi Richards, Executive Director

View Audit 353264

Finding 554547 (2024-003)

Significant Deficiency 2024

Falmouth Housing Authority

MA

HUD Housing Programs Period of Performance Significant Deficiency

2024-003 – PERIOD OF PERFORMANCE Significant Deficiency Auditee’s Response and Planned Corrective Action This finding relates to Operations funding and FHA fundamentally disagrees with the finding. The obligations for Operations were obligated in a timely manner. eLOCCS demonstrates that FHA was FHA...

2024-003 – PERIOD OF PERFORMANCE Significant Deficiency Auditee’s Response and Planned Corrective Action This finding relates to Operations funding and FHA fundamentally disagrees with the finding. The obligations for Operations were obligated in a timely manner. eLOCCS demonstrates that FHA was FHA is creating a master Capital Fund tracking calendar reviewed monthly by the Finance Department. FHA is also consulting with HUD field office staff on upcoming CFP grant timelines to avoid future errors. Planned Implementation Date of Corrective Action: Immediate Person Responsible for Corrective Action: Bobbi Richards, Executive Director

View Audit 353264

Finding 554541 (2024-004)

Significant Deficiency 2024

Falmouth Housing Authority

MA

HUD Housing Programs Internal Control / Segregation of Duties Subrecipient Monitoring

2024-004 - REPORTING Significant Deficiency Auditee’s Response and Planned Corrective Action As with 2024-001, this finding was based on a HUD system error that prevented submission on the due date. FHA experienced transition in the fiscal department and is cross-training backup personnel. A 10-day ...

2024-004 - REPORTING Significant Deficiency Auditee’s Response and Planned Corrective Action As with 2024-001, this finding was based on a HUD system error that prevented submission on the due date. FHA experienced transition in the fiscal department and is cross-training backup personnel. A 10-day buffer will be applied internally to submission deadlines to ensure on-time filing regardless of staff changes and absences. Planned Implementation Date of Corrective Action: Immediate Person Responsible for Corrective Action: Bobbi Richards, Executive Director

View Audit 353264

Finding 554520 (2024-001)

Significant Deficiency 2024

Lupus Foundation of America, Inc.

DC

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

LUPUS FOUNDATION OF AMERICA, INC. CORRECTIVE ACTION PLAN For the Year Ended September 30, 2024 U.S. DEPARTMENT OF HEALTH AND HUMAN SERVICES Lupus Foundation of America, Inc. (the Foundation) submits the following corrective action plan for the year ended September 30, 2024. Independent Public Ac...

LUPUS FOUNDATION OF AMERICA, INC. CORRECTIVE ACTION PLAN For the Year Ended September 30, 2024 U.S. DEPARTMENT OF HEALTH AND HUMAN SERVICES Lupus Foundation of America, Inc. (the Foundation) submits the following corrective action plan for the year ended September 30, 2024. Independent Public Accounting Firm: CBIZ CPAs P.C. 1899 L Street NW, Suite 850 Washington, DC 20036 Audit Period: The finding from the September 30, 2024 schedule of findings and questioned costs is discussed below. The finding is numbered consistently with the number assigned in the schedule. FEDERAL AWARD FINDINGS AND QUESTIONED COSTS Finding No. 2024-001: Special Tests and Provisions – Significant Deficiency – Internal Control and Compliance Finding ALN 93.068 – Chronic Diseases: Research, Control, and Prevention, Grant Number 5NU58DP006907-04-00, Grant Period: September 30, 2020 to September 29, 2025 Condition The Foundation did not have adequate internal control procedures in place to ensure that certain disclaimers required by the grant agreements are included in written conference materials or publications. Context One of two conference materials we reviewed did not include the required disclaimer. Recommendation It was recommended that management enhance current internal control procedures to ensure that the Foundation is in compliance with the grant’s special provisions that requires certain disclaimers in written conference materials or publications. Action Taken PULSE Team Check-Ins: • Incorporate disclaimer compliance as a standing agenda item during bi-weekly PULSE team meetings to review upcoming materials and confirm adherence to requirements. • The Directors (Content and Federal Grants and Public Health Programs) Program Manager will be assigned to monitor and track the inclusion of disclaimers. Quarterly Compliance Review: • Implement a quarterly review process to assess all conference materials and publications for the inclusion of required disclaimers. • Document review findings and corrective actions, if applicable, to ensure consistent compliance. Executive Leadership Reporting: • Provide updates to executive leadership on all conference materials and publications produced and disclaimer compliance status, including any identified issues and corrective actions taken. • Share compliance trends and recommendations for ongoing improvement to reinforce accountability and oversight. Contact Person Responsible for Corrective Action: Dr. Melicent R. Miller, Director, Federal Grants and Public Health Programs If the US Department of Health and Human Services has questions regarding this plan, please call Cynthia R. Meekins, Chief Financial Officer at 202.349.1141 or meekins@lupus.org Sincerely, Cynthia R. Meekins, MBA Chief Financial Officer Lupus Foundation of America

View Audit 353210

Finding 554479 (2024-003)

Significant Deficiency 2024

Tri-County Community Action Partnership, Inc.

MN

Equipment & Real Property Management Significant Deficiency Matching / Level of Effort / Earmarking § 200.303

Head Start - AL #93.6000 Recommendation: The Organization should perform an inventory count with proper reconciliations to asset listing along with having a different individual review and document such review of count/reconciliation. Explanation of disagreement with audit finding: There is no disag...

Head Start - AL #93.6000 Recommendation: The Organization should perform an inventory count with proper reconciliations to asset listing along with having a different individual review and document such review of count/reconciliation. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to findings: We are currently in the process of finalizing the physical inventory count reconciliations to the asset listing along with having a different individual review and document that review. Name(s) of the contact person(s) responsible for corrective action: Rita Zilka, Fiscal Director Planned completion date for corrective action plan: September 30, 2025

View Audit 353111

Finding 554475 (2024-002)

Significant Deficiency 2024

Tri-County Community Action Partnership, Inc.

MN

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

Head Start - AL #93.6000 Recommendation: The Organization should establish a backup signatory process to ensure that there is always an available individual to provide necessary signatures, even during periods of unavailability. Explanation of disagreement with audit finding: There is no disagreemen...

Head Start - AL #93.6000 Recommendation: The Organization should establish a backup signatory process to ensure that there is always an available individual to provide necessary signatures, even during periods of unavailability. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to the findings: We implement a policy to ensure there is someone available to provide signatures. Name(s) of the contact person(s) responsible for corrective action: Penny Paul Planned completion date for corrective action plan: September 30, 2025

View Audit 353111

Finding 554416 (2024-003)

Significant Deficiency 2024

City of Edinburg

TX

Reporting Significant Deficiency Internal Control / Segregation of Duties

Recommendation: We recommend that the City adhere to the Compliance and Reporting Guidance for the SLFRF program and establish internal controls to ensure the City submits required reports when they are due. Views of Responsible Officials: The City has changed the process to submit their Quarterly r...

Recommendation: We recommend that the City adhere to the Compliance and Reporting Guidance for the SLFRF program and establish internal controls to ensure the City submits required reports when they are due. Views of Responsible Officials: The City has changed the process to submit their Quarterly reports. Reports are reviewed by the Grants Administration Department and Finance Department before they are submitted. The Finance Department has implemented procedures to ensure that all reports are processed and submitted timely. Proposed Completion Date: Fiscal Year 2024-2025 Contact Person: Ascencion Alonzo, Director of Finance, City of Edinburg

View Audit 353076

Finding 554379 (2024-002)

Significant Deficiency 2024

The Covering House

AZ

Significant Deficiency Internal Control / Segregation of Duties

The Organization agrees with this finding and will implement the following: Supporting documentation: Obtain supporting documentation for all disbursement types. To include obtaining receipts for all purchases and employee reimbursements as well as creating a process to manage recurring transactions...

The Organization agrees with this finding and will implement the following: Supporting documentation: Obtain supporting documentation for all disbursement types. To include obtaining receipts for all purchases and employee reimbursements as well as creating a process to manage recurring transactions. Internal review process: Implement management review and documented approval of all disbursements.

View Audit 353036

Finding 554378 (2024-001)

Significant Deficiency 2024

The Covering House

AZ

Significant Deficiency Internal Control / Segregation of Duties

The Organization agrees with this finding and will implement the following: Separation of accounting functions: Review accounting staff functions and reassign duties to ensure that the same individual is not performing the bank reconciliations, preparing deposits, and issuing checks. Internal revie...

The Organization agrees with this finding and will implement the following: Separation of accounting functions: Review accounting staff functions and reassign duties to ensure that the same individual is not performing the bank reconciliations, preparing deposits, and issuing checks. Internal review process: Implement management review and documented approval of bank reconciliations and statements. Implement management review and documented approval of deposits.

View Audit 353036

Finding 554369 (2024-001)

Significant Deficiency 2024

Monte Vista Community Center Housing Authority, Inc.

CO

Matching / Level of Effort / Earmarking Internal Control / Segregation of Duties Subrecipient Monitoring § 200.303

Finding 2024-001: Rural Rental Housing Loans Assistance Listing Number: 10.415 U.S. Department of Agriculture Compliance Requirement: Eligibility Type of Finding: Internal Control Over Compliance (significant deficiency) Recommendation: The organ...

Finding 2024-001: Rural Rental Housing Loans Assistance Listing Number: 10.415 U.S. Department of Agriculture Compliance Requirement: Eligibility Type of Finding: Internal Control Over Compliance (significant deficiency) Recommendation: The organization should strengthen its internal controls with adopted policies and procedures to ensure a review process is established through adequate segregation of duties. The organization should consider assessing and realigning the duties and responsibilities of the Executive Director and Alamosa Site Manager to provide for a review process of tenant eligibility determinations. Action Taken: I have hired office personnel in the Monte Vista office. The procedures will be established to adequately segregate the duties. In the Alamosa office, either I or Priscilla Schimpf will be assisting Laura with adequately segregating the duties in that office. The process will become effective March 1, 2025. If there are questions regarding this plan, please call the responsible party at (719) 852-5505. Sincerely yours, Corinna Garcia Executive Director Monte Vista Community Center Housing Authority, Inc.

View Audit 352994

Finding 554347 (2024-001)

Significant Deficiency 2024

Barry County

MI

Significant Deficiency Internal Control / Segregation of Duties

March 25, 2025 CORRECTIVE ACTION PLAN Pursuant to federal regulations, Uniform Administrative Requirements Section 200.511, the following are the findings, as noted in the Barry County Transit’s Single Audit report for the year ended September 30, 2024, and corrective actions to be completed. Fin...

March 25, 2025 CORRECTIVE ACTION PLAN Pursuant to federal regulations, Uniform Administrative Requirements Section 200.511, the following are the findings, as noted in the Barry County Transit’s Single Audit report for the year ended September 30, 2024, and corrective actions to be completed. Finding: 2024-001 – Internal Control Over Federal Awards – Allowability of Costs and Allowable Activities Auditor Description of Condition and Effect: Costs must meet certain general criteria to be allowable under federal awards. One criterion is that the costs be adequately documented. Several of the payroll expenses that were selected for testing did not have employee timecards with evidence that they were reviewed and authorized for payment by their immediate supervisor. As a result of this condition, the Transit does not have adequate documentation demonstrating that an individual with appropriate knowledge of the transaction has reviewed that the transaction is allowable, free of error, and necessary and reasonable for the performance of the federal award. Auditor Recommendation: We recommend that the Transit ensures policies and procedures are followed to provide documented proof of review by management over key transactions such as payroll. Corrective Action: We concur with the finding and management will work to show documented review over payroll transactions. Responsible Person: Mary Bassett – Director Signature Anticipated Completion Date: September 30, 2025

View Audit 352956

Finding 554335 (2024-002)

Significant Deficiency 2024

City of Fontana

CA

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

Finding 2024-002 Program: Economic Development Initiative, Community Project Funding, and Miscellaneous Grants Financial Assistance Listing Number: 14.251 Federal Agency: U.S. Department of Housing and Urban Development Grant Award Number: B-23-CP-CA-0240 Finding Summary: We identified one (1) proje...

Finding 2024-002 Program: Economic Development Initiative, Community Project Funding, and Miscellaneous Grants Financial Assistance Listing Number: 14.251 Federal Agency: U.S. Department of Housing and Urban Development Grant Award Number: B-23-CP-CA-0240 Finding Summary: We identified one (1) project, “Courtplace”, in which Section 3 requirements are applicable to the City. The City was unable to provide supporting documentation to demonstrate that Section 3 requirements were communicated and followed by the applicable project contractor. Corrective Action Plan: The city continuously assesses internal controls and policy to ensure compliance with applicable regulations and standards. During an assessment, the city discovered the issue and corrected In October 2024 Since then, monitoring has been performed. As an additional safeguard, the city has implemented a bid portal where all applicable documents (grant letters, funding sources, project details, etc.) are submitted for review to ensure all grant requirements are included in bid specifications prior to posting. Responsible Individuals: Sid Lambert – Purchasing Manager; Eric Amaya – Assistant Engineer Anticipated Completion Date: April 2025

View Audit 352935

Finding 554300 (2024-002)

Significant Deficiency 2024

City of San Bruno

CA

Questioned Costs Allowable Costs / Cost Principles Reporting

The City will develop, document, and implement formal grant summary requirements review process and audit preparedness policy and procedures. The responsibilities, deliverables, and deadlines will be clearly outlined and communicated to all staff members. The City will remedy the customer account cr...

The City will develop, document, and implement formal grant summary requirements review process and audit preparedness policy and procedures. The responsibilities, deliverables, and deadlines will be clearly outlined and communicated to all staff members. The City will remedy the customer account credit balances by October 2025. Management intends to review and adjust the customer account balances.

View Audit 352902 Questioned Costs: $1

Finding 554299 (2024-001)

Significant Deficiency 2024

City of San Bruno

CA

Reporting Significant Deficiency Internal Control / Segregation of Duties

The City will develop, document, and implement a formal year-end closing process and audit preparedness policy and procedures. The responsibilities, deliverables, and deadlines will be clearly outlined and communicated to all staff members. The City remedied the delinquent ARPA SLFRF quarterly P&E R...

The City will develop, document, and implement a formal year-end closing process and audit preparedness policy and procedures. The responsibilities, deliverables, and deadlines will be clearly outlined and communicated to all staff members. The City remedied the delinquent ARPA SLFRF quarterly P&E Report to the Treasury in January 2024, covering July 1, 2022, through December 31, 2023. Management intends to fully expend the remaining ARPA SLFRF award in FY24 and file the required quarterly P&E Reports in April 2024 and the final report in July 2024.

View Audit 352902

Corrective Action Plans

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