Corrective Action Plans

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 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 554524 (2024-002)

None 2024

Freeport Union Free School District

NY

Questioned Costs Subrecipient Monitoring Cash Management § 200.344

Significant Deficiency Other Matter – Non-Major Federal Award Program 2024-002. Questioned Costs United States Department of Education, Passed Through New York State, Department of Education: Special Education Cluster Special Education Grants to States: IDEA Part B ALN: 84.027 Pass-through Entity Nu...

Significant Deficiency Other Matter – Non-Major Federal Award Program 2024-002. Questioned Costs United States Department of Education, Passed Through New York State, Department of Education: Special Education Cluster Special Education Grants to States: IDEA Part B ALN: 84.027 Pass-through Entity Number: 0032-23-0415 Condition: The District received total reimbursement for its 2022-2023 IDEA, Part B (Section 611) Federal grant award that exceeded the program’s final total expenditures, but did not notify the pass-through entity of the overpayment to refund the overpayment. Planned Corrective Action: The District’s Assistant Business Administrator will contact the NYSED for instructions to submit a corrected final expenditure report, and begin the overpayment refund process. Responsible Contact Person: Mr. Ivono Stintug Assistant Business Administrator Freeport Union Free School District 235 North Ocean Avenue Freeport, New York 11520 Tel: (516) 867-5235 Email: istintug@freeportschools.org Anticipated Completion Date: April 30, 2025.

View Audit 353213 Questioned Costs: $1

Finding 554501 (2024-003)

Material Weakness 2024

Rocky Boy Public Schools

MT

Subrecipient Monitoring Cash Management Reporting

FINDING 2024-003: Head Start Program Control Weakness of Filing the Required Semi-Annual and Annual Reports ...

FINDING 2024-003: Head Start Program Control Weakness of Filing the Required Semi-Annual and Annual Reports Response: The District Clerk will contact the Head Start Grant Specialist to ensure the SF424 semi and annual reports are reviewed and approved when submitted. The District should implement a policies and procedures requiring that all Head Start reports be submitted within 30 days of the reporting period end date.

View Audit 353162

Finding 554487 (2024-001)

Significant Deficiency 2024

Latin American Youth Center

DC

Subrecipient Monitoring Reporting

Views of Responsible Officials: To ensure compliance moving forward, the Center, as a direct recipient, will identify all Federal grants where they have a subaward reporting recipient, along with their reporting timelines and deadlines. The Center has likewise identified the staff owner of FFATA rep...

Views of Responsible Officials: To ensure compliance moving forward, the Center, as a direct recipient, will identify all Federal grants where they have a subaward reporting recipient, along with their reporting timelines and deadlines. The Center has likewise identified the staff owner of FFATA reporting within the Center. Immediately after the finding during the audit, the Center has prepared the subsequent year’s FFATA report to ensure compliance in subsequent fiscal year, 2025.

View Audit 353129

Finding 554456 (2024-001)

Significant Deficiency 2024

Public Counsel

CA

Allowable Costs / Cost Principles Subrecipient Monitoring

Date: March 27, 2025 Cognizant or Oversight Agency: U.S. Department of the Treasury Public Counsel respectfully submits the following corrective action plan for the year ended August 31, 2024. Name and address of independent public accounting firm: Armanino, LLP 11766 Wilshire Blvd. 9th Floor Los An...

Date: March 27, 2025 Cognizant or Oversight Agency: U.S. Department of the Treasury Public Counsel respectfully submits the following corrective action plan for the year ended August 31, 2024. Name and address of independent public accounting firm: Armanino, LLP 11766 Wilshire Blvd. 9th Floor Los Angeles, CA 90025 Audit period: August 31, 2024 The finding from the August 31, 2024 schedule of findings and questioned costs is discussed below. The finding is numbered consistently with the number assigned in the schedule. FINDINGS-FINANCIAL STATEMENT AUDIT SIGNIFICANT DEFICIENCY 2024-001 The Uniform Guidance Cost principles require consistency in treatment of costs and, specifically, that compensation costs be consistent. In addition, the Uniform Guidance requires that there be a system of internal control which provides reasonable assurance that the charges are accurate, allowable and properly allocated and conform to the established accounting policies and practices of the Organization. Recommendation: The process implemented by management during the year appears to have addressed the ongoing variances satisfactorily, and management should continue with its new process. Action Taken: We agree with the auditors' recommendations, and we have already taken the following actions during the fiscal year ended August 31, 2024: We have updated the payroll allocation methodology to ensure that we are making allocations for employees on a fully pro rata basis and that there is a validation process to ensure that 100% of an employee’s time is appropriately allocated across Federal and non-Federal funding sources. The supporting documentation is saved in our shared network folders and attached to the journal entries within our financial system. For any future process or system changes, we will ensure that we have thoroughly assessed the impact of any change before we implement it and vet it in through our internal grant compliance team. We have already made changes to involve our Legal Data Manager to implement a reporting process to ensure that we have complete timeslips that reflect both employee and supervisor approvals for every pay period. We will maintain this approach in Legal Server, the Organization's case management and timekeeping system, and will attach these timeslips as support for each of our allocation entries. We will continue to assess our procedures and internal controls relevant to our Federal funding to ensure compliance with the requirements of Uniform Guidance. We will do a thorough review of our internal control system and update it as necessary to align with best practices as recipients of Federal funding. The Finance team will continue to actively seek training related to Uniform Guidance updates and other Federal rules and requirements. We will share and discuss this information across departments to maintain organization-wide compliance. Name of responsible person: Steven Godoy VP, Finance & CFO Anticipated completion date: August 31, 2025 If the U.S. Department of Treasury has questions regarding this plan, please call Steven Godoy, VP, Chief Financial Officer at (213) 393-1055. Sincerely yours, Steven Godoy VP, Chief Financial Officer

View Audit 353090

Finding 554419 (2024-007)

Significant Deficiency 2024

Northeastern Illinois University

IL

Reporting Subrecipient Monitoring Matching / Level of Effort / Earmarking § 200.303

Condition: Northeastern Illinois University (University) did not have adequate procedures in place to ensure the Education Stabilization Fund – Higher Education Emergency Relief Fund (HEERF) reports were accurate and timely submitted to the U.S. Department of Education and posted to NEIU’s website. ...

Condition: Northeastern Illinois University (University) did not have adequate procedures in place to ensure the Education Stabilization Fund – Higher Education Emergency Relief Fund (HEERF) reports were accurate and timely submitted to the U.S. Department of Education and posted to NEIU’s website. Planned Corrective Action: The grants and Contracts Office will frequently review funding agency websites to ensure reports are up to date with changes in reporting requirements. The published reports will be revised to meet the requirements of the funding agency. The Grants and Contracts Office will also ensure that reports will be submitted and published as required by the funding agency in a timely manner. Contact person responsible for corrective action: Jannica Rae Quintana, Director of Controller’s office and Ruthann Griffith, Grants and Contracts Manager Anticipated Completion Date: 1/30/2025

View Audit 353078

Finding 554372 (2024-006)

Material Weakness 2024

Havre Public Schools

MT

Subrecipient Monitoring Internal Control / Segregation of Duties

Wage Rate Compliance Response: ESSER is gone

View Audit 352996

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 554340 (2024-004)

Significant Deficiency 2024

City of Cynthiana

KY

Subrecipient Monitoring

Management acknowledges that there have been deficiencies in processes. The City intends to enhance its internal controls over ARPA reporting. These efforts will be accomplished through improved internal communication and training of staff to ensure proper reporting.

View Audit 352944

Finding 554333 (2024-001)

Significant Deficiency 2024

Chestnut Ferry Court, Inc. Dba Chestnut Ferry Court 054-Hd059

SC

Questioned Costs Subrecipient Monitoring HUD Housing Programs

Finding #2024-001: Comments on the Finding and Each Recommendation: During the year ended December 31, 2024, the Corporation did not make the HUD required number of deposits to the reserve for replacements. Management should transfer $6,000 from the operating account to the reserve for replacements ...

Finding #2024-001: Comments on the Finding and Each Recommendation: During the year ended December 31, 2024, the Corporation did not make the HUD required number of deposits to the reserve for replacements. Management should transfer $6,000 from the operating account to the reserve for replacements account. Action(s) taken or planned on the finding: Management concurs with the finding and recommendation. Management deposited $6,000 to the reserve for replacements account on February 27, 2025. No further action is required.

View Audit 352926 Questioned Costs: $1

Finding 554239 (2024-002)

Significant Deficiency 2024

The Utilities Board of the City of Oneonta

AL

Cash Management Subrecipient Monitoring Significant Deficiency § 200.303 § 200.305

The Utilites Board of the City of Oneonta will not request advance receipt of payment. The Organization will be following Procedure CFR section 200.305 (b)(1). Payments will be processed and issued within 10 business days of received date from engineer. If payments cannot be made within 30 days, ...

The Utilites Board of the City of Oneonta will not request advance receipt of payment. The Organization will be following Procedure CFR section 200.305 (b)(1). Payments will be processed and issued within 10 business days of received date from engineer. If payments cannot be made within 30 days, received funds will be required deposited into a designated insured interest-bearing account until payments have been issued. Anticipated Completion Date: 2/4/2025 Responsible Person: Mark Gargus, General Manager

View Audit 352810

Finding 554200 (2024-003)

Material Weakness 2024

Town of Burnett Sanitary District

WI

Procurement, Suspension & Debarment Subrecipient Monitoring Matching / Level of Effort / Earmarking

Suspension and Debarment There is no disagreement with the finding. Management immediately began to review policies and procedures.

View Audit 352792

Finding 554051 (2024-002)

Significant Deficiency 2024

Heart of Iowa Regional Transit Agency

IA

Allowable Costs / Cost Principles Matching / Level of Effort / Earmarking Subrecipient Monitoring

We will update our Accounting Policy Manual, and create formal time tracking procedures for staff.

View Audit 352712

Finding 554027 (2024-007)

Material Weakness 2024

Inglewood Unified School District

CA

Questioned Costs Allowable Costs / Cost Principles Internal Control / Segregation of Duties § 200.303 § 200.430

The District acknowledges this finding and is committed to strengthening internal controls to ensure compliance with federal time accounting requirements. The State and Federal Programs Department has received training on Time and Effort procedures, and additionally training is being provided to sch...

The District acknowledges this finding and is committed to strengthening internal controls to ensure compliance with federal time accounting requirements. The State and Federal Programs Department has received training on Time and Effort procedures, and additionally training is being provided to school sites to reinforce accurate time certification and documentation for federal fund expenditures. To address the deficiencies, the district will shift from an annual to a monthly reconciliation process, ensuring that employee salaries charged to Title I accurately reflect actual work performed. The State and Federal Programs Department will collaborate with the Budget Department to systematically track employees funded through Title I and verify that all required PARs are completed and maintained.

View Audit 352638 Questioned Costs: $1

Finding 554022 (2024-005)

Significant Deficiency 2024

Eagle Academy Public Charter School

DC

Allowable Costs / Cost Principles Subrecipient Monitoring § 200.430

U.S. Department of Education AL 84.010A Title I, Basic Grants to Local Education Agencies AL 84.010A Title I, Part A - Investment in Schools 2 AL 84.367A Title II: Improving Teacher Quality State Grants AL 84.424A Title IV: Student Support and Academic Enrichment Grants Type of Finding – Noncomplian...

U.S. Department of Education AL 84.010A Title I, Basic Grants to Local Education Agencies AL 84.010A Title I, Part A - Investment in Schools 2 AL 84.367A Title II: Improving Teacher Quality State Grants AL 84.424A Title IV: Student Support and Academic Enrichment Grants Type of Finding – Noncompliance and Significant Deficiency over Activities Allowed or Unallowed and Allowable Costs/Cost Principles (Payroll) Repeat Finding: No Auditee’s Corrective Action Plan: The School recognizes the importance of maintaining records and ensuring adequate internal controls over activities allowed and allowable costs/costs/principles. To strengthen internal controls in this area, in July 2024, the school introduced EdOps to work on payroll and to conduct an additional layer of review in addition to the HR Manager and the CEO. The School recognizes that its documentation and record-keeping requires improvement. Should the School resume operations, it will assess review and record-keeping processes to ensure the integrity and accuracy of payroll and related documents. Contact Person: Aaron Lentner

View Audit 352637

Finding 553999 (2024-003)

Significant Deficiency 2024

Family Guidance Center of Alabama, Inc.

AL

Procurement, Suspension & Debarment Subrecipient Monitoring Significant Deficiency § 200.317 § 200.327

A procurement policy will be prepared with reference to the appropriate Federal, State, and local laws, regulations, and standards. All staff charged with initiating and approving purchases under federal grant programs will use the documented policy. Individual responsible Debbie Pinnock, Yolanda Ad...

A procurement policy will be prepared with reference to the appropriate Federal, State, and local laws, regulations, and standards. All staff charged with initiating and approving purchases under federal grant programs will use the documented policy. Individual responsible Debbie Pinnock, Yolanda Adams Completion Date Plan to be implemented as soon as possible.

View Audit 352634

Finding 553998 (2024-002)

Significant Deficiency 2024

Family Guidance Center of Alabama, Inc.

AL

Reporting Subrecipient Monitoring Significant Deficiency

The required semi-annual and annual reports have been prepared and submitted as of date of audit issuance. The reporting dates and processes will be documented to ensure timely submission in future. The responsibility for tracking and monitoring dates has transitioned to the new Assistant Executive ...

The required semi-annual and annual reports have been prepared and submitted as of date of audit issuance. The reporting dates and processes will be documented to ensure timely submission in future. The responsibility for tracking and monitoring dates has transitioned to the new Assistant Executive Director. Individual responsible Debbie Pinnock Completion Date Plan has been implemented as of date of audit submission.

View Audit 352634

Finding 553967 (2024-001)

Significant Deficiency 2024

Boston Architectural College

MA

Student Financial Aid Subrecipient Monitoring

Description of Finding During the 2024 audit, it was identified that 3 out of 19 sampled students were not disbursed the correct Pell award. Corrective Action Plan The College is dedicated to awarding and disbursing all federal awards timely and accurately. A system error resulted in the locking of...

Description of Finding During the 2024 audit, it was identified that 3 out of 19 sampled students were not disbursed the correct Pell award. Corrective Action Plan The College is dedicated to awarding and disbursing all federal awards timely and accurately. A system error resulted in the locking of Pell grant awards which prevented the automated updates of award amounts when students’ registered credits changed. The College has implemented training to all Financial Aid team who award students to not lock any federal aid awards with the system. When reviewing and disbursing there will also be a specific check for locked awards to prevent this going forward. Timeline for Implementation of Corrective Action Plan The College has implemented the corrective action plan on October 31, 2024. Contact Person James Ryan, Ph.D. Vice President of Enrollment Management

View Audit 352623

Finding 553961 (2024-003)

Significant Deficiency 2024

City of Quincy, Illinois

IL

Subrecipient Monitoring Reporting Internal Control / Segregation of Duties

Finding 2024-003: Grant Reporting, Reconciliation, and Monitoring Condition: During audit fieldwork, we noted that the City does not reconcile grants throughout the fiscal year, thus requiring many journal entries to properly adjust revenues and record grant accruals and deferrals at year-end. Plan:...

Finding 2024-003: Grant Reporting, Reconciliation, and Monitoring Condition: During audit fieldwork, we noted that the City does not reconcile grants throughout the fiscal year, thus requiring many journal entries to properly adjust revenues and record grant accruals and deferrals at year-end. Plan: The City Comptroller’s Office and the Treasurer’s Office will act together as a central location for grant activity. The appropriate offices will work together with each of the City’s departments to reconcile and appropriately manage and report grant activity throughout the year. Anticipated Date of Completion: Fiscal Year Ending April 30, 2025

View Audit 352614

Finding 553920 (2024-001)

Significant Deficiency 2024

Atlantic University College, Inc.

PR

Student Financial Aid Subrecipient Monitoring Special Tests & Provisions

Response to audit report Audit Period: June 30,2024 Audit Finding: Finding No. 2024-01 Special Tests and Provisions - Return of Title IV Funds Corrective Action: Since August 2023, the institution has implemented a new unofficial withdrawals (UW) policy. This policy defines an unofficial withdrawal ...

Response to audit report Audit Period: June 30,2024 Audit Finding: Finding No. 2024-01 Special Tests and Provisions - Return of Title IV Funds Corrective Action: Since August 2023, the institution has implemented a new unofficial withdrawals (UW) policy. This policy defines an unofficial withdrawal as a student who stops attending one or more courses without officially withdrawing. An unofficial withdrawal will be assigned to any student who has consecutively ceased attending a course for three weeks and for whom no evidence of attendance is available at the time of reporting within the specified period. If a student stops attending all their courses, the Registrar's Office will inactivate the student and issue a report to the Financial Aid office for an R2T4 calculation. This process will occur on the last instructional day before the final exams, as outlined in the academic calendar. According to the policy, Faculty members submit a report of students who have stopped attending (using an official form) and indicate the last date of academic activity for each student reported as UW. These students are not assigned a grade but rather a "UW." Students who complete the course by continuing to attend but fail to meet the academic requirements receive a grade of "F." In addition, effective March 2025, the Academic Deanship has established an institutional policy for submitting grade records (roll books) at the end of each academic term. Since 2024, some faculty members have participated in a pilot project to adopt the Electronic Gradebook (Roll book). After adjusting the system, the institution will offer training sessions to all faculty members. By the end of the February-May 2025 term, faculty will submit the required documentation to maintain records of the grades assigned to each student. Name of the Contact Person: Norma Ortiz, EdD Academic Dean 787-720-1022 ext. 1138 nortiz@atlanticu.edu Projected Completion Date: Beginning in May 2025, the institution will require all faculty members to submit roll books. The Academic Dean's Office will ensure compliance with this new policy. Ramón Barquín Torres Chairman of the Board rbarquin3@atlanticu.edu

View Audit 352586

Finding 553885 (2024-001)

Significant Deficiency 2024

Edison Welding Institute

OH

Questioned Costs Subrecipient Monitoring Significant Deficiency

Finding Number: 2024-001 Condition: EWI overcharged indirect costs to the granting agencies by $26,632 during 2024. Planned Corrective Action: Management has taken measures to strengthen the review of indirect costs charged to the grants. Contact person responsible for the corrective action: Angi Co...

Finding Number: 2024-001 Condition: EWI overcharged indirect costs to the granting agencies by $26,632 during 2024. Planned Corrective Action: Management has taken measures to strengthen the review of indirect costs charged to the grants. Contact person responsible for the corrective action: Angi Cox, Director of Accounting Services Anticipated Completion Date: 06/30/2025

View Audit 352552 Questioned Costs: $1

Finding 553834 (2024-001)

Significant Deficiency 2024

Diakon Lutherwood Senior Housing, LLC

PA

HUD Housing Programs Subrecipient Monitoring Significant Deficiency

Finding 2024-001 Condition On April 1, 2024, the balance of the residual receipts account balance exceeded the $31,250 allowable based upon the Notice ($250 x 125 Units = $31,250) by $23,884. At that time, the Company was required to submit HUD-9250 forms requesting residual receipts account distr...

Finding 2024-001 Condition On April 1, 2024, the balance of the residual receipts account balance exceeded the $31,250 allowable based upon the Notice ($250 x 125 Units = $31,250) by $23,884. At that time, the Company was required to submit HUD-9250 forms requesting residual receipts account distributions to offset rent subsidy payments each month until the residual receipts balance did not exceed $31,250. The Company did not request the required HAP offsets until September 3, 2024. At December 31, 2024, residual receipts exceeded $31,250 by $23,913, of which $23,875 related to the bank failing to disburse HUD approved HAP offsets that reduced rent subsidies for November prior to year end. Corrective Action Plan Corrective Action Planned: As noted in Finding 2024-001, there was staff turnover of key employees in the Finance department in 2024, which, in part, caused the late submission of form 9250 requests for required HAP offsets from the residual receipts account. The current accountant responsible for reconciling Lutherwood balance sheet accounts has been provided education related to Notice H-2012-14. Both the Vice President of Finance and the Director of Housing will ensure that the first request for offset s submitted by the end of April, and review at the end of each following month until the residual receipts balance does not exceed the allowable amount. Name(s) of Contact Person(s) Responsible for Corrective Action: Lisa Webster, Vice President of Finance and Sandra Rostkowski, Director of Housing Anticipated Completion Date: We anticipate the corrective action to submit the 9250 in 2025 will occur by the end of April 2025.

View Audit 352521

Finding 553833 (2024-001)

Significant Deficiency 2024

Diakon Frostburg Senior Housing, LLC

PA

HUD Housing Programs Subrecipient Monitoring Significant Deficiency

Finding 2024-001 Condition On April 1, 2024, the balance of the residual receipts account balance exceeded the $27,500 allowable based upon the Notice ($250 x 110 Units = $27,500) by $82,461. At that time, the Company was required to submit HUD-9250 forms requesting residual receipts account distr...

Finding 2024-001 Condition On April 1, 2024, the balance of the residual receipts account balance exceeded the $27,500 allowable based upon the Notice ($250 x 110 Units = $27,500) by $82,461. At that time, the Company was required to submit HUD-9250 forms requesting residual receipts account distributions to offset rent subsidy payments each month until the residual receipts balance did not exceed $27,500. The Company did not request the required HAP offsets until September 3, 2024, as a result, the Company received rent subsidy payments of $27,615 from HUD that should have been offset by excess residual receipts deposits in 2024. At December 31, 2024, residual receipts exceeded $27,500 by $55,066 of which $27,450 related to the bank failing to disburse HUD approved HAP offsets that reduced rent subsidies for December prior to year end. Corrective Action Plan Corrective Action Planned: As noted in Finding 2024-001, there was staff turnover of key employees in the Finance department in 2024, which, in part, caused the late submission of form 9250 requests for required HAP offsets from the residual receipts account. The current accountant responsible for reconciling Frostburg balance sheet accounts has been provided education related to Notice H-2012-14. Both the Vice President of Finance and the Director of Housing will ensure that the first request for offset s submitted by the end of April, and review at the end of each following month until the residual receipts balance does not exceed the allowable amount. Name(s) of Contact Person(s) Responsible for Corrective Action: Lisa Webster, Vice President of Finance and Sandra Rostkowski, Director of Housing Anticipated Completion Date: We anticipate the corrective action to submit the 9250 in 2025 will occur by the end of April 2025.

View Audit 352520

Finding 553832 (2024-001)

Significant Deficiency 2024

Diakon Lutheran Senior Housing at Luther Meadows

PA

HUD Housing Programs Subrecipient Monitoring Significant Deficiency

Finding 2024-001 Condition On April 1, 2024, the balance of the residual receipts account balance exceeded the $12,500 allowable based upon the Notice ($250 x 50 Units = $12,500) by $42,633. At that time, the Company was required to submit HUD-9250 forms requesting residual receipts account distri...

Finding 2024-001 Condition On April 1, 2024, the balance of the residual receipts account balance exceeded the $12,500 allowable based upon the Notice ($250 x 50 Units = $12,500) by $42,633. At that time, the Company was required to submit HUD-9250 forms requesting residual receipts account distributions to offset rent subsidy payments each month until the residual receipts balance did not exceed $12,500. The Company did not request the required HAP offsets until September 3, 2024, as a result, the Company received rent subsidy payments of $4,755 from HUD that should have been offset by excess residual receipts deposits in 2024. At December 31, 2024, residual receipts exceeded $12,500 by $42,662, of which $37,907 related to the bank failing to disburse HUD approved HAP offsets that reduced rent subsidies for November and December prior to year end. Corrective Action Plan Corrective Action Planned: As noted in Finding 2024-001, there was staff turnover of key employees in both the Finance department and the Luther Meadows staffing in 2024, which, in part, caused the late submission of form 9250 requests for required HAP offsets from the residual receipts account. The current accountant responsible for reconciling Luther Meadows balance sheet accounts has been provided education related to Notice H-2012-14. Both the Vice President of Finance and the Director of Housing will ensure that the first request for offset s submitted by the end of April, and review at the end of each following month until the residual receipts balance does not exceed the allowable amount. Name(s) of Contact Person(s) Responsible for Corrective Action: Lisa Webster, Vice President of Finance and Sandra Rostkowski, Director of Housing Anticipated Completion Date: We anticipate the corrective action to submit the 9250 in 2025 will occur by the end of April 2025.

View Audit 352519

Corrective Action Plans

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