Corrective Action Plans

Finding 522211 (2024-001)

Significant Deficiency 2024

CT

Reporting Significant Deficiency Internal Control / Segregation of Duties

FINDING 2024-001 – SIGNIFICANT DEFICIENCY - REPORTING – INTERNAL CONTROL OVER COMPLIANCE Description of Finding: The Town is required to submit an annual Project and Expenditure report within 30 days of the close of the reporting period. During the year, the Town did not have adequate controls in pl...

FINDING 2024-001 – SIGNIFICANT DEFICIENCY - REPORTING – INTERNAL CONTROL OVER COMPLIANCE Description of Finding: The Town is required to submit an annual Project and Expenditure report within 30 days of the close of the reporting period. During the year, the Town did not have adequate controls in place to submit the annual Project and Expenditure report within 30 days after the close of the reporting period. Statement of Concurrence or Nonconcurrence: The Town agrees with the audit finding. Corrective Action: The Town will establish policies and procedures to ensure that the Project and Expenditure report is filed timely and accurately. Name of Contact Person: Nathan Amos, Finance Officer & Treasurer, 860-693-7852. Projected Completion Date: December 31, 2024.

View Audit 341434

Finding 522176 (2024-005)

None 2024

Sitting Bull College

ND

Questioned Costs Eligibility Significant Deficiency

Contract Person Dr. Koreen Ressler Corrective Action The College is outsourcing federal financial aid to Campus Ivy. The company will assist with proper controls and procedures to ensure students are disbursed the correct amount of PELL funds. Completion Date Fiscal year 2025

View Audit 341393 Questioned Costs: $1

Finding 522161 (2024-003)

Significant Deficiency 2024

Lee Conlee House, Inc.

FL

Questioned Costs Allowable Costs / Cost Principles Significant Deficiency

2024-003: Incorrect Allocation of Disbursements to VOCA Recommendation: We recommend management monitor and review grant expenditures for proper allocation to the respective grant funding source. Action: The Executive Director or Compliance Officer will review grant expenditures monthly for proper a...

2024-003: Incorrect Allocation of Disbursements to VOCA Recommendation: We recommend management monitor and review grant expenditures for proper allocation to the respective grant funding source. Action: The Executive Director or Compliance Officer will review grant expenditures monthly for proper allocation.

View Audit 341377 Questioned Costs: $1

Finding 522136 (2024-001)

Significant Deficiency 2024

Jewish Federation of Metropolitan Chicago

IL

Subrecipient Monitoring Matching / Level of Effort / Earmarking Internal Control / Segregation of Duties § 200.305

Identifying Number: 2024-001 Condition: Controls in place did not minimize the time elapsing between the transfer receipt of billing from the subrecipient and disbursement of federal dollars to the subrecipient in accordance with the guidance above. Corrective Actions Taken or Planned: Federatio...

Identifying Number: 2024-001 Condition: Controls in place did not minimize the time elapsing between the transfer receipt of billing from the subrecipient and disbursement of federal dollars to the subrecipient in accordance with the guidance above. Corrective Actions Taken or Planned: Federation typically receives vouchers from 14 subrecipient organizations approximately ten days after the end of each month. The number of vouchers per agency depends on the number of programs they provide. Staff reviews the vouchers for allowability and accuracy and submits them to the Illinois Department of Human Services (IDHS) within 24 days of month end. During fiscal year 2024, the IDHS remitted payment to Federation anywhere from 48 to 124 days after the month end. Upon receipt of the cash, Federation pays subrecipient organizations within thirty days. In the instances identified by the auditors, the IDHS remitted payment over 30 days after Federation submitted the vouchers for reimbursement. Federation’s longstanding policy has always been to reimburse each subrecipient agency after it has received payment from the IDHS. Prior to fiscal year 2024, the IDHS usually provided payment within 15 days of receipt of our voucher and therefore Federation was able to comply with the 30-day requirement. However, reimbursement delays from IDHS occurred during fiscal year 2024 resulting in the findings describe herein. To ensure compliance with the 30-day reimbursement requirement, Federation will formally request an advance from the IDHS. Kyu Kim, Director of Finance and Contract Compliance, Refugee Services will be responsible for the oversight of the reimbursement payments and will ensure the Federation adheres to the 30 day requirement going forward. Responsible Person: Kyu Kim Anticipated Completion Date: July 2025

View Audit 341343

Finding 522063 (2024-001)

Significant Deficiency 2024

Linn County

IA

Reporting Significant Deficiency Internal Control / Segregation of Duties § 200.303

Finding 2024-001 Reporting Federal Agency Name: Department of the Treasury Pass‐Through Entity: Not applicable. Direct program. Assistance Listing Number: 21.027 Program Name: COVID-19 - Coronavirus State and Local Fiscal Recovery Funds Finding Summary: The County’s quarterly ...

Finding 2024-001 Reporting Federal Agency Name: Department of the Treasury Pass‐Through Entity: Not applicable. Direct program. Assistance Listing Number: 21.027 Program Name: COVID-19 - Coronavirus State and Local Fiscal Recovery Funds Finding Summary: The County’s quarterly Project and Expenditure Report for the quarter ended September 2023 reported several items as current period obligations that were reported as current period obligations in the previous quarter. Corrective Action Plan: The Finance Director currently reconciles cumulative expenditures to the reports prepared by the Senior Accountant before signing and dating the report, prior to submission by the Senior Accountant. There will be no additional current obligations in the future due to the December 31, 2024 deadline for obligations. Responsible Individual: Dawn Jindrich, Finance Director Anticipated Completion Date: June 30, 2025

View Audit 341288

Finding 521529 (2024-001)

Significant Deficiency 2024

Southern Wesleyan University

SC

Student Financial Aid Internal Control / Segregation of Duties Reporting

Untimely and Inaccurate Returns of Title IV Funds (R2T4) Planned Corrective Action: A review of the student withdrawal process from Registrar notifications to assignment of financial aid reviews and Return of Title IV calculations will be conducted and any needed changes implemented to ensure timel...

Untimely and Inaccurate Returns of Title IV Funds (R2T4) Planned Corrective Action: A review of the student withdrawal process from Registrar notifications to assignment of financial aid reviews and Return of Title IV calculations will be conducted and any needed changes implemented to ensure timely processing. As there are currently only four FA personnel, the Director will continue to process the R2T4 notifications and be held responsible for any late processing. Back-up training for the Associate Director will also be implemented to ensure continuity of coverage in the event the Director is not available to cover this responsibility. Person Responsible for Corrective Action Plan: Thomas Valles, Director of Financial Aid Anticipated Date of Completion: April 30, 2025

View Audit 341204

Finding 521457 (2024-005)

Significant Deficiency 2024

Langston University

OK

Student Financial Aid Significant Deficiency Matching / Level of Effort / Earmarking § 200.303

Recommendation: We recommend that the University review policies and procedures related to R2T4 calculations to ensure calculations are performed correctly and timely. We also recommend the University implement formal review procedures to document the Return of Title IV calculations are being perfor...

Recommendation: We recommend that the University review policies and procedures related to R2T4 calculations to ensure calculations are performed correctly and timely. We also recommend the University implement formal review procedures to document the Return of Title IV calculations are being performed to minimize the likelihood that errors may go undetected and not be corrected in a timely manner. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Questioned Costs: N/A Action taken in response to finding: This is a repeat finding that was first presented to the University in conjunction with the release of the 2022 audit report in November 2023. Procedures for review and return of Title IV funds have been updated to ensure refunds are returned in a timely manner. Return of Title IV calculations are being documented and reviewed by a party independent of the preparer to minimize the likelihood that errors go undetected and/or not be corrected in a timely manner. Name(s) of the contact person(s) responsible for the corrective action: Mr. Heath Burge, Assistant Vice President for Strategic Enrollment and Advising Services and Ms. Nacasaw Coppage, Interim Director, Office of Financial Aid. Planned completion date for corrective action plan: December 2024

View Audit 341200

Finding 521446 (2024-004)

Significant Deficiency 2024

Langston University

OK

Matching / Level of Effort / Earmarking Student Financial Aid Reporting § 200.303

Recommendation: We recommend the University review reporting processes to ensure all students that require exit counseling receive it in a timely manner. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Questioned Costs: N/A Action taken in response to...

Recommendation: We recommend the University review reporting processes to ensure all students that require exit counseling receive it in a timely manner. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Questioned Costs: N/A Action taken in response to finding: This is a repeat finding that was first presented to the University in conjunction with the release of the 2023 audit report in May 2024. The 2023 audit was completed after substantially all of Fiscal Year 2024 had elapsed, so there was not adequate time for the University to fully implement corrective action. The University has strengthened its processes to ensure that students needing exist counseling receive it in a timely manner. Name(s) of the contact person(s) responsible for the corrective action: Mr. Heath Burge, Assistant Vice President for Strategic Enrollment and Advising Services and Ms. Nacasaw Coppage, Interim Director, Office of Financial Aid. Planned completion date for corrective action plan: December 2024

View Audit 341200

Finding 521435 (2024-003)

Significant Deficiency 2024

Langston University

OK

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

Recommendation: We recommend the University evaluate its procedures around disbursements of loans and ensure that notifications of disbursements are sent and contain all the required elements outlined in the FSA handbook. Explanation of disagreement with audit finding: There is no disagreement with ...

Recommendation: We recommend the University evaluate its procedures around disbursements of loans and ensure that notifications of disbursements are sent and contain all the required elements outlined in the FSA handbook. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Questioned Costs: N/A Action taken in response to finding: This is a repeat finding that was first presented to the University in conjunction with the release of the 2022 audit report in November 2023. Loan disbursement procedures and processes have been updated to ensure notifications are sent as outlined in the FSA Handbook. Name(s) of the contact person(s) responsible for the corrective action: Mr. Heath Burge, Assistant Vice President for Strategic Enrollment and Advising Services and Ms. Nacasaw Coppage, Interim Director, Office of Financial Aid. Planned completion date for corrective action plan: December 2024

View Audit 341200

Finding 521249 (2024-001)

Significant Deficiency 2024

Langston University

OK

Subrecipient Monitoring Matching / Level of Effort / Earmarking Internal Control / Segregation of Duties § 200.303 § 200.305

Recommendation: We recommend that the University review and update current procedures to ensure subrecipient payments are paid timely. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Questioned Costs: N/A Action taken in response to finding: This is a...

Recommendation: We recommend that the University review and update current procedures to ensure subrecipient payments are paid timely. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Questioned Costs: N/A Action taken in response to finding: This is a repeat finding that was first presented to the University in conjunction with the release of the 2023 audit report in May 2024. The 2023 audit was completed after substantially all of Fiscal Year 2024 had elapsed, so there was not adequate time for the University to fully implement corrective action. The University is strengthening its accounts payable processes and sign-off approvals to help ensure reimbursements to subrecipients are paid timely. Principal investigators and designated administrative personnel within academic departments will be reminded of the need to initiate payments to subrecipients timely. Name(s) of the contact person(s) responsible for the corrective action: Mr. Robert Dixon, Director, Grants and Contracts Fiscal Administration at Oklahoma State University and Mr. Chris Kuwitzky, Vice President for Fiscal and Administrative Affairs. Planned completion date for corrective action plan: March 2025

View Audit 341200

Finding 521239 (2024-001)

Significant Deficiency 2024

School City of Whiting

IN

School Nutrition Programs Internal Control / Segregation of Duties Eligibility § 200.303

FINDING 2024-001 Child Nutrition Cluster - Eligibility School Breakfast program, National School Lunch Program, Eligibility, Significant Deficiency Contact Person Responsible for Corrective Action: Contact Phone Number: Kim Pusateri 219-659-0656 ext. 157 Views of Responsible Official: We concur with...

FINDING 2024-001 Child Nutrition Cluster - Eligibility School Breakfast program, National School Lunch Program, Eligibility, Significant Deficiency Contact Person Responsible for Corrective Action: Contact Phone Number: Kim Pusateri 219-659-0656 ext. 157 Views of Responsible Official: We concur with the finding. Internal Controls and procedures will be implemented to ensure accurate eligibility determinations for free and reduced-price meals by implementing internal controls, segregation of duties, and documented reviews. Description of Corrective Action Plan: Applications (eligibility): • Maintain records of all reviews for audit purposes. o Take a picture of the eligibility grid for review and date it. o Require two staff members (Director of Food Services and designee) to sign off on the review. Direct Certifications • The direct certification report will be run monthly and uploaded into the school point-of-sale system. A copy of the report will be saved, printed and checked that it was uploaded properly. A copy of the student's application and history will be printed and stapled to the direct cert report to verify that the change was made. It will be dated and initialed and saved in a folder. Anticipated Completion Date: Immediately

View Audit 341181

Finding 521200 (2024-004)

Significant Deficiency 2024

Clackamas County School District No.108

OR

Cash Management School Nutrition Programs Significant Deficiency

a. Significant Deficiency | Single Audit – “We recommend the District record reimbursements in the correct fiscal year.” b. Plan of Action – The District will establish a multi-step review process for all NSLP monthly meal claims to ensure accuracy. For the year-end claims (May/June) – should they b...

a. Significant Deficiency | Single Audit – “We recommend the District record reimbursements in the correct fiscal year.” b. Plan of Action – The District will establish a multi-step review process for all NSLP monthly meal claims to ensure accuracy. For the year-end claims (May/June) – should they be received after the end of the fiscal year they were claimed for – a journal entry that recognizes Accounts Receivable for the claim amount will be created and be reviewed for accuracy before being approved. c. Timeframe for (or date of) implementation – The multi-step review process for monthly NSLP meal claims has already been established (started in September 2024). The year-end journal entry process/review will be implemented in June 2025.

View Audit 341157

Finding 521196 (2024-003)

Significant Deficiency 2024

Clackamas County School District No.108

OR

Cash Management School Nutrition Programs Significant Deficiency

a. Significant Deficiency | Single Audit – “We recommend the District use someone other than the claim preparer to review the claims before being submitted, and document said review with initials and dates.” b. Plan of Actions – The District will establish a multi-step review process for all NSLP mo...

a. Significant Deficiency | Single Audit – “We recommend the District use someone other than the claim preparer to review the claims before being submitted, and document said review with initials and dates.” b. Plan of Actions – The District will establish a multi-step review process for all NSLP monthly meal claims to ensure accuracy. This process will include data input/review by the Nutrition Services Coordinator and review by the Director of Finance/Senior Accountant before submission to the state. c. Timeframe for (or date of) implementation - The multi-step review process for monthly NSLP meal claims has already been established (started in September 2024).

View Audit 341157

Finding 521192 (2024-003)

Significant Deficiency 2024

Western Piedmont Regional Transit Authority

NC

Questioned Costs Procurement, Suspension & Debarment Significant Deficiency

Finding: 2024-003 Name of Contact Person: Scott Cook Corrective Action/Management’s Response: WPRTA will better ensure that proper procurement documentation is maintained. Proposed Completion Date: Immediately and ongoing

View Audit 341148 Questioned Costs: $1

Finding 521186 (2024-002)

Significant Deficiency 2024

Western Piedmont Regional Transit Authority

NC

Reporting Subrecipient Monitoring Significant Deficiency

Name of Contact Person: Scott Cook Corrective Action/Management’s Response: WPRTA will timely submit the Transportation Asset Management (TAM) inventory report. Proposed Completion Date: Immediately and ongoing

View Audit 341148

Finding 521162 (2024-003)

Significant Deficiency 2024

Eastern Wyoming College

WY

Student Financial Aid Allowable Costs / Cost Principles Reporting

Corrective actions: The Financial Aid Office has historically received a copy of the Fund 10 and Fund 13 ledgers from the Business Office and then calculated the tuition and fees, making sure to remove the concurrently enrolled students and inapplicable fees. This calculation was completed without k...

Corrective actions: The Financial Aid Office has historically received a copy of the Fund 10 and Fund 13 ledgers from the Business Office and then calculated the tuition and fees, making sure to remove the concurrently enrolled students and inapplicable fees. This calculation was completed without knowledge that some of the Fund 13 Fees pass through and are already included the Fund 10 details. This resulted in a number of Fund 13 Fees being counted twice. This process has been corrected starting with the 24-25 FISAP. The CFO and Financial Aid Director worked together and the CFO calculated the tuition and fees for Part II Section E of the FISAP. This ensured the correct calculation and eliminated the inclusion of fees that were flowing through the two different GL fund accounts. Anticipated completion date: September 30,2024 Contact person: Rebecca McAllister/Kwin Wilkes

View Audit 341116

Finding 521160 (2024-002)

Significant Deficiency 2024

Eastern Wyoming College

WY

Student Financial Aid Reporting Significant Deficiency

Corrective actions: Eastern Wyoming College currently has a service arrangement with National Student Clearinghouse (NSC) to provide enrollment reporting to the National Student Loan Data System (NSLDS) per the requirements outlined in CFR 690.83 (b)(2), 685.309(b), and per the NSLDS Enrollment Repo...

Corrective actions: Eastern Wyoming College currently has a service arrangement with National Student Clearinghouse (NSC) to provide enrollment reporting to the National Student Loan Data System (NSLDS) per the requirements outlined in CFR 690.83 (b)(2), 685.309(b), and per the NSLDS Enrollment Reporting Guide. These regulations require institutions to report changes in enrollment within a 60-day period. In fulfilling these requirements, EWC's Data Analyst utilizes reports in Colleague to complete the enrollment reporting requirements and submit these reports to NSC. This occurs every thirty days, which exceeding meets the 60-day requirement. EWC's Office of Institutional Research, through the Data Analyst, works with the Registrar and the Financial Aid Office to review and resolve any reporting errors with NSC. Historically, this process worked with minimal errors, but the HCM2 processes posed some unforeseen challenges in the reporting process. To meet these challenges, the Data Analyst sends the student rosters to the NSC. If the students on the SSCR roster are not part of the NSLDS database as a current borrower or recipient of federal student aid, then the Data Analyst must manually upload the information to the NSLDS instead of relying on NSC to initiate the reporting. The Student Financial Aid and Registrar Offices have implemented controls to ensure the proper and timely reporting of student status changes. Upon the implementation of an effective reporting control process, EWC will directly review the student status changes at the NSLDS rather than rely solely on its third-party service provider. For instances where students program length was not reporting correctly, this was resolved at the end of 2022-2023 award year, and the Financial Aid office updated all the Colleague screens used to pull the reports utilized by Institutional Research in submitting the report. EWC has developed and distributed Standard Operating Procedures to ensure the withdrawal dates reported in each office are using the same information. Anticipated completion date: October 2024 Contact person: Rebecca McAllister/Xi Feng

View Audit 341116

Finding 521153 (2024-002)

Significant Deficiency 2024

Isd # 13 Columbia Heights

MN

Procurement, Suspension & Debarment Internal Control / Segregation of Duties School Nutrition Programs

SIGNIFICANT DEFICIENCY IN INTERNAL CONTROL OVER COMPLIANCE – U.S. DEPARTMENT OF AGRICULTURE – PASSED THROUGH MINNESOTA DEPARTMENT OF EDUCATION, CHILD NUTRITION CLUSTER (FEDERAL ALN 10.553, 10.555, AND 10.559) 2024-002 Internal Control Over Compliance With Federal Suspension and Debarment Requireme...

SIGNIFICANT DEFICIENCY IN INTERNAL CONTROL OVER COMPLIANCE – U.S. DEPARTMENT OF AGRICULTURE – PASSED THROUGH MINNESOTA DEPARTMENT OF EDUCATION, CHILD NUTRITION CLUSTER (FEDERAL ALN 10.553, 10.555, AND 10.559) 2024-002 Internal Control Over Compliance With Federal Suspension and Debarment Requirements Finding Summary 2 CFR § 180 requires the District to establish and maintain effective internal control over compliance with requirements applicable to federal program expenditures, including suspension and debarment requirements applicable to the child nutrition cluster. The District did not have sufficient controls in place within its child nutrition cluster to assure that it was not contracting for goods or services with parties that are suspended or debarred, or whose principals are suspended or debarred from participating in contracts involving the expenditures of federal program funds. Actions Planned – The District will review policies and procedures relating to suspension and debarment for its federal programs and will ensure that all parties with which it contracts for goods or services are eligible to participate in contracts involving the expenditures of federal program funding. Official Responsible – Bryan Hennekens, Director of Finance and Operations. Planned Completion Date – June 30, 2025. Disagreement With or Explanation of Finding – The District is in agreement with this finding. Plan to Monitor – Bryan Hennekens, Director of Finance and Operations, will work with the financial auditors to review specific weaknesses identified during the annual audit and actions needed to eliminate or mitigate this internal control weakness.

View Audit 341108

Finding 521061 (2024-002)

Significant Deficiency 2024

Watertown School District No. 14-4

SD

Student Financial Aid Special Tests & Provisions Matching / Level of Effort / Earmarking

Finding 2024-002 Federal Agency Name: Department of Education Assistance Listing Number: #84.268 Program Name: Federal Direct Student Loans Finding Summary: 1 of the 60 students selected for testing the reporting of student status changes were reported with the incorrect enrollment status based on N...

Finding 2024-002 Federal Agency Name: Department of Education Assistance Listing Number: #84.268 Program Name: Federal Direct Student Loans Finding Summary: 1 of the 60 students selected for testing the reporting of student status changes were reported with the incorrect enrollment status based on NSLDS Enrollment Reporting guidance. 3 of the 60 students selected for testing the reporting of student status changes were reported to NSLDS with incorrect program begin dates based on NSLDS Enrollment Reporting guidance. 1 of the 60 students selected for testing the reporting of student status changes were reported to NSLDS with an incorrect status effective date based on NSLDS Enrollment Reporting guidance. Corrective Action Plan: LATC currently runs a SQL database script against the enrollment file before sending it to NSC. This script checks for missing and erroneous data (race/ethnicity, nondegree seeking majors, anticipated grad dates, etc.) in the file and updates it to correct values. The Director of Enrollment will work with the Database Administrator to regularly update these tables and review to ensure accurate information is being imported. The Registrar’s office will manually investigate these records and (if necessary) updated before sending the file to NSC. Every 30 days, representatives from the Financial Aid and the Registrar’s departments will pull 10 randomly selected student files to compare information in National Student Clearinghouse, PowerFaids, and NSLDS. The Director of Enrollment will work the error reports that the National Student Clearinghouse sends to LATC after every enrollment file upload with the assistance of the Database Administrator to ensure data submitted is compliant with DOE regulations. The Director of Financial Aid will review NSLDS to ensure corrections submitted by the Director of Enrollment are being properly recorded. Responsible Individual(s): Eric Schultz, Director of Enrollment and Kayla Bossly, Director of Financial Aid Anticipated Completion Date: Corrections complete by December 31, 2024. New process is ongoing.

View Audit 340969

Finding 521058 (2024-004)

Significant Deficiency 2024

Wagner Community Memorial Hospital

SD

Special Tests & Provisions Subrecipient Monitoring Significant Deficiency § 200.303

Federal Agency Name: Department of Agriculture Program Name: Community Facilities Loans and Grants Federal Financial Assistance Listing #10.766 Compliance Requirement: Special Test and Provisions Finding Summary: The Hospital’s reserve account is fully funded per the requirements in the loan resol...

Federal Agency Name: Department of Agriculture Program Name: Community Facilities Loans and Grants Federal Financial Assistance Listing #10.766 Compliance Requirement: Special Test and Provisions Finding Summary: The Hospital’s reserve account is fully funded per the requirements in the loan resolution security agreement. However, there is no documented secondary monitoring of the reserve balance as compared to the required minimum reserve balance. Responsible Individuals: Joshua Christensen, CFO Corrective Action Plan: The reserve account balance is monitored at each of the bi-monthly board of directors’ meetings. This review will include the current reserve account balance, the required minimum reserve account balance and a calculation to show the current balance is within compliance. The review and approval by the board of directors will be documented within the board minutes. Anticipated Completion Date: December 2024

View Audit 340965

Finding 521055 (2024-001)

Significant Deficiency 2024

The Russell Child Development Center, Inc.

KS

Cash Management Eligibility Significant Deficiency

2024-001 Eligibility Condition Six providers received an improper amount for their meal reimbursement for the month tested. Recommendation Controls should be reviewed and updated to ensure that reimbursements are only requested for complete and accurate meal counts at the correct rate of reimburse...

2024-001 Eligibility Condition Six providers received an improper amount for their meal reimbursement for the month tested. Recommendation Controls should be reviewed and updated to ensure that reimbursements are only requested for complete and accurate meal counts at the correct rate of reimbursement, and that only eligible participants are submitted to the State for reimbursement. Comments on the Finding Recommendation The CACFP at The Russell Child Development Center, Inc. is aware of the oversight and will continue to strive to improve its review process. Action Taken: As of the date of this notice, CACFP staff will continue to verify that the tally marks from the paper claims match the total provided. Those tally marks are then entered into My Food Program, and the total is again verified to match the paper claim. The Director of the CACFP program is now a third check for the tally marks matching what’s entered into My Food Program, as well as the totals claimed by the provider. Manual claim adjustments will continue to be saved and filed with supporting documentation, if applicable.

View Audit 340951

Finding 520954 (2024-002)

Significant Deficiency 2024

Orion Area Not-for Profit Housing Corporation

MI

HUD Housing Programs Allowable Costs / Cost Principles Eligibility

Corrective Action Plan Orion Area Non-Profit Housing Corporation Project No. 044-11113 Year Ended June 30, 2024 January 31, 2025 FEDERAL AWARD FINDINGS AND QUESTIONED COSTS 2024-002 – Eligibility - Tenant Income Threshold Finding Type. Immaterial noncompliance, Significant deficiency in internal...

Corrective Action Plan Orion Area Non-Profit Housing Corporation Project No. 044-11113 Year Ended June 30, 2024 January 31, 2025 FEDERAL AWARD FINDINGS AND QUESTIONED COSTS 2024-002 – Eligibility - Tenant Income Threshold Finding Type. Immaterial noncompliance, Significant deficiency in internal controls over compliance (Eligibility) Federal programs U.S. Department of Housing and Urban Development  Section 8 Housing Assistance Payments (ALN# 14.195) Condition. Less than 40% of tenants who moved into the property during the year met the extremely low-income threshold and management did not maintain records of marketing efforts targeted to extremely low-income families, demonstrating that reasonable efforts were made to fill available units accordingly and that such efforts are ongoing. Effect. As a result of this condition, the Project failed to meet the prescribed income targeting requirements and documentation of marketing efforts to reach the target population. Plan. Management agrees with finding 2024-002. Management agrees to target extremely low-income individuals for residence, and to retain marketing records that support this effort. Contact Person Responsible for This Corrective Action: Laura Maisevich, Senior Housing Manager Anticipated completion date: June 30, 2025

View Audit 340845

Finding 520950 (2024-001)

Significant Deficiency 2024

East Detroit Area Non-Profit Housing Corporation

MI

Allowable Costs / Cost Principles Eligibility HUD Housing Programs

Corrective Action Plan East Detroit Area Non-Profit Housing Corporation Project No. 044-EH221 Year Ended June 30, 2024 January 31, 2025 FEDERAL AWARD FINDINGS AND QUESTIONED COSTS 2024-001 – Eligibility - Tenant File Documentation Finding Type. Immaterial noncompliance, Significant deficiency in...

Corrective Action Plan East Detroit Area Non-Profit Housing Corporation Project No. 044-EH221 Year Ended June 30, 2024 January 31, 2025 FEDERAL AWARD FINDINGS AND QUESTIONED COSTS 2024-001 – Eligibility - Tenant File Documentation Finding Type. Immaterial noncompliance, Significant deficiency in internal controls over compliance (Eligibility) Federal programs U.S. Department of Housing and Urban Development  Supportive Housing for the Elderly (ALN# 14.157) Condition. Out of a sample of 6 tenant files, it was noted: 1. One out of six instances where an EIV was not run for a tenant file within 90 days of move in; 2. One out of six instances where a refund was not disbursed to a tenant within 60 days of move-out; 3. Two out of six instances where the incorrect checking account balance was used in the verification of tenant assets; Effect. As a result of this condition, employees did not follow HUD guideline procedures, and/or did not properly calculate the tenant subsidy in HUD Form 50059. While there were no significant differences in the amount of subsidies allowed compared to subsidies received, the lack of effective internal controls could lead to future significant noncompliance. Plan. Management agrees with finding 2024-001. All files are to be inspected in the current fiscal year to ensure compliance with HUD regulations. File maintenance will be competed following each move in and annual recertification. In addition to one-on-one training, the housing administrator has signed up for additional training including a WebEx on annual recertification and a basic EIV course. Additional training sessions are forthcoming. Contact Person Responsible for This Corrective Action: Laura Maisevich, Senior Housing Manager Anticipated completion date: 1/31/2025

View Audit 340843

Finding 520948 (2024-002)

Significant Deficiency 2024

Highland Area Non-Profit Housing Corporation

MI

HUD Housing Programs Allowable Costs / Cost Principles Eligibility

Corrective Action Plan Highland Area Non-Profit Housing Corporation Project No. 044-11111 Year Ended June 30, 2024 January 31, 2025 FEDERAL AWARD FINDINGS AND QUESTIONED COSTS 2024-002 – Eligibility - Tenant Income Threshold Finding Type. Immaterial noncompliance, Significant deficiency in inter...

Corrective Action Plan Highland Area Non-Profit Housing Corporation Project No. 044-11111 Year Ended June 30, 2024 January 31, 2025 FEDERAL AWARD FINDINGS AND QUESTIONED COSTS 2024-002 – Eligibility - Tenant Income Threshold Finding Type. Immaterial noncompliance, Significant deficiency in internal controls over compliance (Eligibility) Federal programs U.S. Department of Housing and Urban Development  Section 8 Housing Assistance Payments (ALN# 14.195) Condition. Less than 40% of tenants who moved into the property during the year met the extremely low-income threshold and management did not maintain records of marketing efforts targeted to extremely low-income families, demonstrating that reasonable efforts were made to fill available units accordingly and that such efforts are ongoing. Effect. As a result of this condition, the Project failed to meet the prescribed income targeting requirements and documentation of marketing efforts to reach the target population. Plan. Management agrees with finding 2024-002. Management agrees to target extremely low-income individuals for residence, and to retain marketing records that support this effort. Contact Person Responsible for This Corrective Action: Laura Maisevich, Senior Housing Manager Anticipated completion date: June 30, 2025

View Audit 340840

Finding 520885 (2024-004)

Significant Deficiency 2024

Good Shepherd Real Estate Holding, LLC D/b/a the Good Shepherd

OH

HUD Housing Programs Reporting Significant Deficiency

Finding Number: 2024-004 Condition: The Corporation failed to make the required reserve for replacements deposits in the current fiscal year. Planned Corrective Action: Corrected Contact person responsible for corrective action: Fikru Nigusse, CFO Anticipated Completion Date: N/A

View Audit 340743

Corrective Action Plans

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