Corrective Action Plans

Finding 541979 (2024-001)

Significant Deficiency 2024

Town of Easton (the Easton Utilities Commission)

MD

Subrecipient Monitoring Reporting Significant Deficiency § 200.305

State and Local Fiscal Recovery Funds– Assistance Listing No. 21.027 Allowable Activities and Costs - Significant Deficiency in Internal Control Over Compliance Recommendation: We recommend the Commission establish policies and procedures over internal controls to ensure review and approval of SEFA...

State and Local Fiscal Recovery Funds– Assistance Listing No. 21.027 Allowable Activities and Costs - Significant Deficiency in Internal Control Over Compliance Recommendation: We recommend the Commission establish policies and procedures over internal controls to ensure review and approval of SEFA preparation. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: The Commission will implement a SEFA preparation policy. Name of the contact person responsible for corrective action: Tracie Thomas Planned completion date for corrective action plan: May 31, 2025

View Audit 350782

Finding 541973 (2024-004)

Significant Deficiency 2024

United Tribes Technical College

ND

Questioned Costs Allowable Costs / Cost Principles Significant Deficiency

Recommendation: We recommend the College follow and properly execute its procedures it has in place relating to non-payroll expenditures. Action Taken: The Finance department will review and ensure all journal entries are properly documented prior to making posting payments. Finance is 90% fully sta...

Recommendation: We recommend the College follow and properly execute its procedures it has in place relating to non-payroll expenditures. Action Taken: The Finance department will review and ensure all journal entries are properly documented prior to making posting payments. Finance is 90% fully staffed and new staff have been trained on how to do journal entries.

View Audit 350766 Questioned Costs: $1

Finding 541972 (2024-003)

Significant Deficiency 2024

United Tribes Technical College

ND

Questioned Costs Allowable Costs / Cost Principles Significant Deficiency

Recommendation: We recommend the College follow and properly execute its procedures it has in place relating to payroll expenditures. Action Taken: The Finance department will review and ensure all payroll entries and payroll corrections are properly documented prior to making journal entries.

View Audit 350766 Questioned Costs: $1

Finding 541970 (2024-001)

Significant Deficiency 2024

Housing Authority of the City of Galveston, Texas

TX

Eligibility HUD Housing Programs Significant Deficiency

2024-001 Eligibility Housing Voucher Cluster Significant deficiency in internal control Other Matter to be Reported Under the Uniform Guidance Condition: Out of a population of approximately 1,700 for Housing Voucher Cluster, 41 tenant files were tested and 4 files had the following deficiencies: ...

2024-001 Eligibility Housing Voucher Cluster Significant deficiency in internal control Other Matter to be Reported Under the Uniform Guidance Condition: Out of a population of approximately 1,700 for Housing Voucher Cluster, 41 tenant files were tested and 4 files had the following deficiencies: • Two files had incorrect payment standard; • One file had incorrect income calculation standard; and • One file was missing an EIV report for the annual recertification. Auditor Recommendations: The Authority should reevaluate their established procedures and controls in place to ensure full compliance in regards to eligibility and the timeliness of recertifications. The Authority needs to correct the deficiencies noted in the tested files and consider the impact to the rest of the population of tenant files that were not selected as part of the auditor's sample. Action Taken; GHA is currently updating its Standards Operating Procedures and will continue to provide training and guidance to all staff to ensure that all transactions are implemented correctly, including payment standards, income calculations and to ensure all necessary documentation including EIV is placed in the participant's files. Name(s) of the contact person(s) responsible for corrective action: Maria Godwin Planned completion date for corrective action plan: GHA staff has been reminded to double check their work to avoid human errors. Additionally all training will be completed by August 2025.

View Audit 350765

Finding 541969 (2024-002)

Significant Deficiency 2024

Housing Authority of the City of Galveston, Texas

TX

HUD Housing Programs Subrecipient Monitoring Eligibility

2024-002 Eligibility Public and Indian Housing Significant deficiency in internal control Other Matter to be Reported Under the Uniform Guidance Condition: Out of a total tenant population of approximately 430 for Public and Indian Housing, 44 tenant files were tested and 8 files had the following d...

2024-002 Eligibility Public and Indian Housing Significant deficiency in internal control Other Matter to be Reported Under the Uniform Guidance Condition: Out of a total tenant population of approximately 430 for Public and Indian Housing, 44 tenant files were tested and 8 files had the following deficiencies: • Six files had incorrect or missing flat rent option sheets ; • One file was missing a custody information; and • One file had incorrect income calculation. Auditor Recommendations: The Authority should correct the deficiencies noted in the tested files and perform reviews of the remaining universe, for consideration of similar errors. In addition, the Authority should establish quality control review procedures to ensure proper monitoring of compliance with the requirements related to tenant eligibility. Action Taken: Updates were made to the flat rent option sheet and they have been placed in all files. The missing custody information has been obtained and placed in the folder. GHA will continue to provide training and guidance to all staff to ensure that all transactions are implemented correctly, including income calculation standard, and to ensure that all necessary documentation is placed in the participant's files. Name(s} of the contact person(s) responsible for corrective action: Odelia Williams, Director of Public Housing Planned completion date for corrective action plan: GHA staff completed the corrections and has been reminded to double check their work to avoid human error. Additionally, all training will be completed by August 2025.

View Audit 350765

Finding 541968 (2024-001)

Significant Deficiency 2024

Boston Public Health Commission

MA

Questioned Costs Allowable Costs / Cost Principles Cash Management

Management implemented an additional control that any submitted workbook or invoice that is changed by an awarding agency before payment is made, must be thoroughly reviewed and reconciled prior to authorizing the workbook or invoice for payment.

View Audit 350763 Questioned Costs: $1

Finding 541821 (2024-005)

Significant Deficiency 2024

South Carolina State Housing Finance and Development Authority

SC

Questioned Costs HUD Housing Programs Special Tests & Provisions

Housing Voucher Cluster – Assistance Listing Numbers 14.871/14.879 Compliance Requirement: Special Tests and Provisions – Rolling Forward Equity Balances Recommendation: We recommend the Authority review the equity roll forward of programs to identify and correct errors in the correct reporting p...

Housing Voucher Cluster – Assistance Listing Numbers 14.871/14.879 Compliance Requirement: Special Tests and Provisions – Rolling Forward Equity Balances Recommendation: We recommend the Authority review the equity roll forward of programs to identify and correct errors in the correct reporting period. Views of responsible officials: There is no disagreement with the audit finding. Action planned/taken in response to finding: After the end of the Audit period, HCV and Finance staff worked together to correct equity roll forward concerns. All reporting to HUD has been corrected and a process is in place to reconcile the accounts monthly so that adjustments can be timely made. Name(s) of the contact person(s) responsible for corrective action: Elaine Bouse, Accounting Manager Tyeshia Brunson, HCVP Lead Admin Corrie Temples, Regulatory Analyst (support) Planned completion date for corrective action plan: Currently implemented and ongoing.

View Audit 350735 Questioned Costs: $1

Finding 541818 (2024-004)

Significant Deficiency 2024

South Carolina State Housing Finance and Development Authority

SC

Questioned Costs Eligibility HUD Housing Programs

Housing Voucher Cluster – Assistance Listing Numbers 14.871/14.879 Compliance Requirement: Eligibility Recommendation: We recommend the Authority implements controls to ensure that tenant files contain all required documentation. Views of responsible officials: There is no disagreement with the a...

Housing Voucher Cluster – Assistance Listing Numbers 14.871/14.879 Compliance Requirement: Eligibility Recommendation: We recommend the Authority implements controls to ensure that tenant files contain all required documentation. Views of responsible officials: There is no disagreement with the audit finding. Action planned/taken in response to finding: No later than May 2025, SC Housing is restructuring the HCV department. This realignment will reassign the staff member responsible for oversight of the HCV Administrative staff. In addition, all staff will receive additional training for all administrative functions, in order to minimize the number of errors moving forward. Regarding these specific exceptions, staff is working to collect necessary documentation to correct the records, one exception was previously corrected on 11/1/24. Name(s) of the contact person(s) responsible for corrective action: Lisa Wilkerson, Director of Rental Assistance and Compliance Director of HCVP Administration and Services Planned completion date for corrective action plan: Restructure in planned for late April, initial training will begin immediately and continue as needed.

View Audit 350735 Questioned Costs: $1

Finding 541116 (2024-003)

Significant Deficiency 2024

Housing Authority of the County of Lebanon

PA

HUD Housing Programs Significant Deficiency Special Tests & Provisions

Authority's Response and Planned Corrective Action: The Authority accepts the recommendation of the auditor. The Authority will increase oversight in the Section 8 Housing Choice Vouchers Program to ensure that established internal control policies included within the Plan are being followed. Karen...

Authority's Response and Planned Corrective Action: The Authority accepts the recommendation of the auditor. The Authority will increase oversight in the Section 8 Housing Choice Vouchers Program to ensure that established internal control policies included within the Plan are being followed. Karen Raugh, Executive Director, is responsible for implementing this corrective action by June 30, 2025.

View Audit 350689

Finding 541110 (2024-003)

Significant Deficiency 2024

Bethany Lutheran College, Inc.

MN

Student Financial Aid Equipment & Real Property Management Matching / Level of Effort / Earmarking

Title: Student Financial Assistance Cluster – Assistance Listing Nos. 84.038, 84.268, 84.033, 84.007, 84.063 Recommendation: We recommend that the Corporation review each element of GLBA to ensure compliance with all necessary requirements. Explanation of disagreement with audit finding: There is no...

Title: Student Financial Assistance Cluster – Assistance Listing Nos. 84.038, 84.268, 84.033, 84.007, 84.063 Recommendation: We recommend that the Corporation review each element of GLBA to ensure compliance with all necessary requirements. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: The College will update its Written Information Security Program to include a description of the use of a data inventory that includes how we identify and manage data, personnel, devices and facilities. Some of these items can be found in the other documents submitted but we will merge them into our WISP. Multi-factor authentication is in use for individuals accessing sensitive information but that also was not clearly identified in the WISP and will be added. To ensure GLBA compliance going forward, the College has contracted FRSecure to develop a risk assessment and roadmap which will do system scan for issues, an assessor will interview staff including IT, HR, Finance Leaders and others to learn more about the currentstate of overall security program. Compliance with GLBA will be part of their review. Finally,FRSecure will issue an assessment ‘Roadmap Plan’ for the department to review andpending results, implement as feasible.

View Audit 350688

Finding 541105 (2024-002)

Significant Deficiency 2024

Bethany Lutheran College, Inc.

MN

Student Financial Aid Reporting Significant Deficiency

Title: Student Financial Assistance Cluster – Assistance Listing Nos. 84.038, 84.268, 84.033, 84.007, 84.063 Recommendation: We recommend the Corporation review its reporting procedures to ensure that students’ statuses are accurately and timely reported to NSLDS as required by regulations. Explanat...

Title: Student Financial Assistance Cluster – Assistance Listing Nos. 84.038, 84.268, 84.033, 84.007, 84.063 Recommendation: We recommend the Corporation review its reporting procedures to ensure that students’ statuses are accurately and timely reported to NSLDS as required by regulations. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: While this is classified as a repeat finding as it involves enrollment reporting, it is a different type of issue than prior year, which involved withdrawal date reporting. The College will implement a process to ensure that the beginning term date matches the enrollment record. The College will make sure that the campus enrollment date will not be affected by change of major date going forward and will make sure that correct dates are coming across and being correctly populated from the Admissions Department. Name of the contact person responsible for corrective action: Jeff Younge, Director of Financial Aid Planned completion date for corrective action plan: Fiscal Year 2025

View Audit 350688

Finding 541073 (2024-002)

Significant Deficiency 2024

Scenic Bluffs Health Center, INC

WI

Questioned Costs Cash Management Significant Deficiency § 200.430

Allowable Activities and Costs Health Centers Cluster – Assistance Listing No. 93.224 and 93.527 Recommendation: We recommend the Organization implement a comprehensive and thorough process to review all wages charged to federal and state grant prior to initiating a drawdown request or submitting a ...

Allowable Activities and Costs Health Centers Cluster – Assistance Listing No. 93.224 and 93.527 Recommendation: We recommend the Organization implement a comprehensive and thorough process to review all wages charged to federal and state grant prior to initiating a drawdown request or submitting a reimbursement request to the grantor. As part of this, the Organization should implement a process to review changes to salary and wage information as changes are made or identified.. Action taken in response to finding: The process has been changed as of July 1, 2024 and will continue forward. Name(s) of the contact person(s) responsible for corrective action: Daria Sztaba, CFO Planned completion date for corrective action plan: July 1, 2024

View Audit 350678 Questioned Costs: $1

Finding 541071 (2024-001)

Significant Deficiency 2024

Mental Health Association of Maryland, Inc.

MD

Allowable Costs / Cost Principles Matching / Level of Effort / Earmarking Reporting § 200.430

Views of Responsible Officials: We acknowledge the audit finding regarding the documentation of personnel time. To address this issue, we have implemented the following corrective actions and will continue to enhance our process: 1. Enhanced Training: We are providing comprehensive training to all r...

Views of Responsible Officials: We acknowledge the audit finding regarding the documentation of personnel time. To address this issue, we have implemented the following corrective actions and will continue to enhance our process: 1. Enhanced Training: We are providing comprehensive training to all relevant staff on the importance of accurate timesheet entry/review and the proper procedures for documenting and allocating personnel expenses. 2. Improved Internal Controls: We have strengthened our internal control procedures to ensure that timesheets are completed accurately, reviewed thoroughly, and retained properly. Allocations are additionally entered into the payroll system for further accuracy. These are reviewed and approved then entered into the accounting system. This is then reconciled to the payroll system for further accuracy. 3. Regular Audits: We are conducting regular internal audits of timesheet and payroll records to ensure ongoing compliance with documentation standards and to identify any areas needing improvement. 4. Accessible Records: We have established a system for the retention of allocation documentation in a readily accessible format to facilitate future audits and ensure transparency. 5. Addressing Turnover: We recognize that high turnover rates within the finance and program departments have contributed to these issues. To mitigate this, we will continue to focus on improving staff retention through enhanced support, training, and development opportunities, ensuring continuity and consistency in our documentation processes.

View Audit 350674

Finding 541064 (2024-001)

Significant Deficiency 2024

Tasc of Southeast Oihio

OH

Reporting Significant Deficiency Internal Control / Segregation of Duties § 200.512

TASC of Southeast Ohio has implemented procedures and developed a schedule to ensure that the audited financial statements will be submitted, along with the data collection form, upon the release of the June 30, 2024 audit.

View Audit 350671

Finding 541038 (2024-002)

Significant Deficiency 2024

PA Chapter American Academy of Pediatrics

PA

Allowable Costs / Cost Principles Reporting Significant Deficiency § 200.430

Immunization Cooperative Agreements – Assistance Listing No. 93.268 During our testing, we noted the Chapter charges benefits to the programs based on an estimated allocation calculated based on the percentage of salaries as determined in the contract budget. However, we noted the Chapter does not ...

Immunization Cooperative Agreements – Assistance Listing No. 93.268 During our testing, we noted the Chapter charges benefits to the programs based on an estimated allocation calculated based on the percentage of salaries as determined in the contract budget. However, we noted the Chapter does not have internal controls in place to provide a review of the actual fringe benefits incurred. Recommendation: We recommend Pennsylvania Chapter, American Academy of Pediatrics establish a process for periodic after-the-fact reviews of interim charges made to federal awards based on budget estimates. Based on the review, management should make any necessary adjustments to the interim charges based on the results of the periodic reviews. This would ensure that the final amount charged to the federal award is accurate, allowable, and properly allocated. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: The Chapter will implement a process for the review of interim charges made to federal awards and make any necessary adjustments that ensure the final amount charged to the federal award is accurate, allowable and properly allocated. Name(s) of the contact person(s) responsible for corrective action: Annette Myarick, Executive Director Planned completion date for corrective action plan: The planned corrective action will be completed by June 2025.

View Audit 350641

Finding 541025 (2024-003)

Significant Deficiency 2024

Elkhart and St. Joseph Counties Head Start Consortium

IN

Internal Control / Segregation of Duties Reporting Significant Deficiency § 200.303

We will ensure all required federal reports have a documented, formal review of the reports before they are submitted to ensure the information submitted is accurate

View Audit 350620

Finding 540999 (2024-001)

Significant Deficiency 2024

Thomas Jefferson University

PA

Student Financial Aid Special Tests & Provisions Reporting

2024-001: Special Tests and Provisions – Student Financial Assistance Cluster Management’s view and corrective action plan Management concurs with the audit findings related to the disbursement of loan funds, verification of financial aid applications and return of Title IV funds. These findings are...

2024-001: Special Tests and Provisions – Student Financial Assistance Cluster Management’s view and corrective action plan Management concurs with the audit findings related to the disbursement of loan funds, verification of financial aid applications and return of Title IV funds. These findings are directly attributed to the challenge of maintaining staffing levels. The Student Financial Aid Office became fully staffed in March 2025. Management will implement enhanced controls and training are required within the Student Financial Aid office. Additionally, management concurs with the following audit findings pertaining to noncompliance with enrollment reporting requirements for 20 of the 25 sampled. Management will implement enhanced controls and additional dedicated resources are required within the Registrar’s Office in order to monitor and assure compliance with regulatory requirements. Additionally, efforts will be employed to monitor and confirm the timely and accurate submission of information from the National Student Clearinghouse to the NSLDS. Furthermore, the procedural and training enhancements of the Financial Aid and Registrar’s Offices, as well as their resource plans, will be reviewed and approved by the Office of Internal Audit. Implementation date: September 2025 Raelynn Cooter, PhD Vice Provost for Academic Infrastructure and Effectiveness.

View Audit 350613

Finding 540990 (2024-002)

Significant Deficiency 2024

Integrated Living, Inc.

KS

HUD Housing Programs Significant Deficiency Internal Control / Segregation of Duties

March 21, 2025 HUD Service Audit Director Kansas City, Kansas Integrated Living, Inc. respectfully submits the following corrective action plan for the year ended June 30, 2024. SSC CPAs, P.A. 58525 SW 29th St, Suite 100 Topeka, Kansas 66614 Audit period: Year ended June 30, 2024 The findings ...

March 21, 2025 HUD Service Audit Director Kansas City, Kansas Integrated Living, Inc. respectfully submits the following corrective action plan for the year ended June 30, 2024. SSC CPAs, P.A. 58525 SW 29th St, Suite 100 Topeka, Kansas 66614 Audit period: Year ended June 30, 2024 The findings from the June 30, 2024 schedule of findings and questioned costs are discussed below. The findings are numbered consistently with the numbers assigned in the schedule. Section I of the schedule, Summary of Audit Results, does not include findings and is not addressed. FINDINGS-FINANCIAL STATEMENT AUDIT 2024‐001 Internal Controls over Financial Statement Presentation (Material Weakness) Recommendation: The Board of Directors and management should review the impact of the current year adjustments on the financial reporting process. Once this review is complete, the Organization should then perform a risk assessment to determine the best way to implement appropriate internal controls over financial reporting to ensure conformity with U.S. GAAP. Action Taken (Unaudited): Management is in the process of updating its control procedures to include proper written policies for the internal control over financial reporting to ensure conformity with U.S. GAAP. John Griffin, CFO of COF Training Services, Inc. (Management Agent of Integrated Living, Inc.) is responsible for this corrective action. Anticipated completion date is June 30, 2025. FINDINGS-FEDERAL AWARD PROGRAMS AUDITS 2024‐002 Written Procedures of Internal Control over Compliance (Significant Deficiency) Department of Housing and Urban Development Section 811 Supportive Housing for Person with Disabilities, Assistance Listing Number 14.181 Recommendation: The Organization should develop written policies for the internal control over compliance of federal awards. Action Taken (Unaudited): Management is in the process of updating its control procedures to include proper written policies for the internal control over compliance of federal awards John Griffin, CFO of COF Training Services, Inc. (Management Agent of Integrated Living, Inc.) is responsible for this corrective action. Anticipated completion date is June 30, 2025. If HUD has questions regarding this plan, please call Patrick Gardner at 785-242-5035. Sincerely yours, Patrick Gardner CEO, COF Training Services, Inc. (Management Agent of Integrated Living, Inc.)

View Audit 350594

Finding 540974 (2024-001)

Significant Deficiency 2024

Sheldon Terrace Supportive Housing Corporation Hud Proj. No. 017-Hd040

CT

Internal Control / Segregation of Duties Significant Deficiency

2024-001 Supportive Housing for Persons With Disabilities – Assistance Listing No. 14.181 Criteria or Specific Requirement: Department of Housing and Urban Development requires any surplus funds in the project funds account at the end of the fiscal year to be deposited in a federally insured account...

2024-001 Supportive Housing for Persons With Disabilities – Assistance Listing No. 14.181 Criteria or Specific Requirement: Department of Housing and Urban Development requires any surplus funds in the project funds account at the end of the fiscal year to be deposited in a federally insured account within 60 days following the end of the fiscal year. Condition: As of June 30, 2024, Sheldon Terrace Supportive Housing Corporation has a surplus cash of $10,585. A residual receipt account is established but the required deposit was not made within 60 days following the end of the fiscal year. Questioned costs: None Context: We reviewed the surplus cash calculation noting that the Project has a surplus cash of $10,585 at the end of the fiscal year 24. Surplus cash should have been deposited within 60 days following the end of the fiscal year. Cause: This was an oversight by management. Effect: The required deposit was not made as required by the Department of Housing and Urban Development. Repeat Finding: No Recommendation: It is recommended that management Make the required deposit as soon as possible. Views of Responsible Officials: There is no disagreement with the audit finding. Action taken in response to finding: Required deposit will be made by March 31, 2025. Name of the contact person responsible for corrective action: Angela Westwood, CFO Planned completion date for corrective action plan: March 31, 2025.

View Audit 350582

Finding 540969 (2024-002)

Significant Deficiency 2024

Continuum of Care, Inc. and Affiliates

CT

Internal Control / Segregation of Duties Significant Deficiency

Supportive Housing for Persons With Disabilities – Assistance Listing No. 14.181 Criteria or Specific Requirement: Department of Housing and Urban Development requires any surplus funds in the project funds account at the end of the fiscal year to be deposited in a federally insured account within 6...

Supportive Housing for Persons With Disabilities – Assistance Listing No. 14.181 Criteria or Specific Requirement: Department of Housing and Urban Development requires any surplus funds in the project funds account at the end of the fiscal year to be deposited in a federally insured account within 60 days following the end of the fiscal year. Condition: As of June 30, 2024, Continuum Supportive Housing of West Hartford, Inc. has a surplus cash of $50,759. The required deposit into a residual receipt account was not made within 60 days following the end of the fiscal year. Questioned costs: None Context: We reviewed the surplus cash calculation noting that the Project has a surplus cash of $50,759 at the end of the fiscal year 24. Surplus cash should have been deposited within 60 days following the end of the fiscal year. Cause: This was an oversight by management. Effect: The required deposit was not made as required by the Department of Housing and Urban Development. Repeat Finding: No Recommendation: It is recommended that management make the required deposit as soon as possible. Views of Responsible Officials: There is no disagreement with the audit finding. Action taken in response to finding:. Required deposit will be made by March 31, 2025. Name of the contact person responsible for corrective action: Angela Westwood, CFO Planned completion date for corrective action plan: March 31, 2025.

View Audit 350577

Finding 540968 (2024-001)

Significant Deficiency 2024

Continuum of Care, Inc. and Affiliates

CT

Significant Deficiency Internal Control / Segregation of Duties

Supportive Housing for Persons With Disabilities – Assistance Listing No. 14.181 Criteria or Specific Requirement: According to the client's internal control over payroll disbursements, hourly employees must maintain timesheets which are approved and signed by the property manager. Condition: Upon p...

Supportive Housing for Persons With Disabilities – Assistance Listing No. 14.181 Criteria or Specific Requirement: According to the client's internal control over payroll disbursements, hourly employees must maintain timesheets which are approved and signed by the property manager. Condition: Upon performing testing over payroll disbursements, we noted that there was no approval of the timesheet for the payroll disbursements tested. Questioned costs: None Context: The timesheet for 5 out of 5 payroll disbursements tested was not properly approved by the property manager. Cause: Turnover of property manager at the property management company and weaknesses in internal controls over payroll disbursements. Effect: There is no evidence of proper approval of payroll disbursement. Repeat Finding: Yes Recommendation: We recommend that management strengthen controls over review of payroll. Views of Responsible Officials: There is no disagreement with the audit finding. Action taken in response to finding: Although other controls assist to safeguard and mitigate compensation errors, the property manager will ensure that all time sheets are properly approved prior to payment, and if necessary the VP of Operations or the President of the managing agent will provide further assurance of internal controls through reviews. Name of the contact person responsible for corrective action: Angela Westwood, CFO Planned completion date for corrective action plan: May 30, 2025.

View Audit 350577

Finding 540959 (2024-012)

Significant Deficiency 2024

State of New Jersey

NJ

Special Tests & Provisions Subrecipient Monitoring Eligibility § 200.303

The Department of Human Services’ Division of Family Development (DHS/DFD) acknowledges the audit finding that 3 of the 40 sampled providers had not been inspected as required by program policy. DHS/DFD contracts with the Department of Children and Families’ Office of Licensing (“OOL”) as the regula...

The Department of Human Services’ Division of Family Development (DHS/DFD) acknowledges the audit finding that 3 of the 40 sampled providers had not been inspected as required by program policy. DHS/DFD contracts with the Department of Children and Families’ Office of Licensing (“OOL”) as the regulatory authority to monitor and inspect licensed centers and family child care providers. In response to this finding, OOL has implemented internal measures to ensure that monitoring occurs on an annual basis. These measure include the use of the New Jersey Child Care Information System (NJCCIS). A subsequent inspection of licensed child care centers was conducted on September 13, 2024. Regarding the two other family child care providers, the Child Care Resource and Referral (“CCR&R”) works in conjunction with OOL to track health and safety inspections. However, CCR&R did not monitor the two family child care providers in 2023. Since then, monitoring has been carried out in 2024 which included a review of the annual training requirements for these providers. To enhance compliance with inspections, CCR&R has acquired updated software to improve its monitoring capabilities. Copies of the 2024 inspection reports can be provided upon request. The DFD’s Office of Child Care will develop internal controls and procedures to ensure that inspections are performed as required by program policy. COMPLETION DATE/ CONTACT PERSON December 31, 2025 Andrea Breitwieser 609-588-4503 Andrea.Breitwieser@dhs.nj.gov

View Audit 350571

Finding 540948 (2024-008)

Significant Deficiency 2024

State of New Jersey

NJ

Subrecipient Monitoring Reporting Significant Deficiency § 200.303

The Division of Aging Services (DoAS) hired a fiscal staff member in June of 2024. Responsibilities include the timely and accurate submission of FFATA reports. We are confident that with the additional staff we will be able to comply with managing FFATA reporting requirements and timely submissions...

The Division of Aging Services (DoAS) hired a fiscal staff member in June of 2024. Responsibilities include the timely and accurate submission of FFATA reports. We are confident that with the additional staff we will be able to comply with managing FFATA reporting requirements and timely submissions. COMPLETION DATE/ CONTACT PERSON June 30, 2025 Hetal Bhatt (609) 438-4586 Hetal.Bhatt2@dhs.nj.gov Mary Kurfuss (609) 564-2623 Mary.kurfuss@dhs.nj.gov

View Audit 350571

Finding 540945 (2024-006)

Significant Deficiency 2024

State of New Jersey

NJ

Special Tests & Provisions Cash Management Significant Deficiency § 200.303

The New Jersey Department of Transportation (NJDOT) has finalized its Utility Accommodation Policy (UAP) to align with federal requirements. The UAP follows the formal state regulatory process, and it was re-adopted on June 6, 2023, with technical changes. The UAP remains to be in full form and effe...

The New Jersey Department of Transportation (NJDOT) has finalized its Utility Accommodation Policy (UAP) to align with federal requirements. The UAP follows the formal state regulatory process, and it was re-adopted on June 6, 2023, with technical changes. The UAP remains to be in full form and effect. In compliance with the federal rules, the UAP is being amended to incorporate provisions for Broadband and Telecommunications and Video Surveillance. The amended language has been reviewed and approved by Federal Highway Administration (FHWA). The UAP is progressing through the formal regulatory process. The policy is expected to be published on April 7, 2025. A 60-day public comment period will follow, allowing stakeholders to provide feedback. Once the public comment period is completed, the revised UAP will be implemented immediately to ensure compliance. The DOT will continue to monitor the implementation and ensure that all utility accommodation actions align with the newly approved policy. COMPLETION DATE/ CONTACT PERSON & PHONE# Anticipated Completion Date: TBD but no later than December 30, 2025 Vince Martorana (609) 963-1825 Vince.Martorana@dot.nj.gov James Lepri (609) 963-1837 James.Lepri@dot.nj.gov

View Audit 350571

Finding 540940 (2024-004)

Significant Deficiency 2024

State of New Jersey

NJ

Reporting Matching / Level of Effort / Earmarking Significant Deficiency § 200.303

The New Jersey Department of Labor and Workforce Development (DLWD) continues to monitor workloads for both first payment and non-monetary time lapse measurements. Identity verification remains an issue with a segment of the claim population, and delays with claimants completing their ID verificat...

The New Jersey Department of Labor and Workforce Development (DLWD) continues to monitor workloads for both first payment and non-monetary time lapse measurements. Identity verification remains an issue with a segment of the claim population, and delays with claimants completing their ID verification has a direct bearing on first payment and non-monetary time lapse. DLWD will continue to work on improving communications around the importance of timely verifying ID and provide assistance to claimants that may be struggling with this process. DLWD has been working with USDOL to expand identity verification options and expects the new process to be in full production by June 30, 2025. It will allow claimants to report to any USPS Post Office for an in-person ID verification. This additional in-person option to complete ID verification provides greater flexibility for claimants to complete this requirement, especially those that struggle with the digital verification process that DLWD currently uses. We expect the new process to have a positive impact on time lapse scores and overall improvement for these metrics. Most recent time lapse figures showed that for the period November 2024 through February 2025, combined non-monetary time lapse exceeded the 80% ALP for each month. COMPLETION DATE/ CONTACT PERSON June 2025 Ronald Marino - DLWD (609) 292-2810 Ronald.Marino@dol.nj.gov

View Audit 350571

Corrective Action Plans

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