Corrective Action Plans

Finding 392965 (2023-002)

Material Weakness 2023

AR

Questioned Costs Student Financial Aid Subrecipient Monitoring

Finding 2023-002 - U.S. Department of Education (USD), Title IV Student Financial Aid Programs (material weakness): We observed the following conditions in connection with our testing of the various U.S. Department of Education, Title IV, Student Financial Assistance Programs: (a) The College did no...

Finding 2023-002 - U.S. Department of Education (USD), Title IV Student Financial Aid Programs (material weakness): We observed the following conditions in connection with our testing of the various U.S. Department of Education, Title IV, Student Financial Assistance Programs: (a) The College did not reconcile the following programs between the Office of Financial Aid and the Business Office. Per 34 CFR 685.300(b)(5). i. Federal Pell Grant Program ii. Federal Direct Student Loans iii. Federal SEOG (b) The Office of Financial Aid submitted unreconciled expenditures within the Fiscal Operations Report and Application to Participate (FISAP) for the programs below: i. Federal Pell Grant Program ii. Federal Work Study (FWS) Program (c) One (1) out of 6 students tested for withdrawals and the return of Title IV funds did not have their Title IV program funds returned within the 45-day requirement. HEA, Section 484B & 34 CFR 668.22. (d) One (1) out of 60 students had a credit balance on their account created by Title IV program funds longer than 14 days. 34 CFR 668.164(h)(1). (e) One (1) out of 60 students tested did not make satisfactory academic progress (SAP) for the academic year. The College did not provide supporting documentation for successful appeals and allowed the students to receive Title IV funding. 34 CFR 668.34. Questioned cost for this finding is: $6,198. (f) Five (5) out of 60 students tested did not have high school/GED to prove eligibility for the program they were enrolled within the College. HEA Section 484(d) and 34 CFR 668.32. Questioned cost for this finding is $41,443. (g) Four (4) out of 60 students tested were accepted as transfer students but did not have official (transfer) transcripts to prove eligibility for the program they were enrolled within the College. HEA Section 484(d) and 34 CFR 668.32. Questioned cost for this finding is $40,383. The College should implement corrective actions to ensure that the above findings are resolved and do not recur in future periods. Moreover, internal controls over compliance with federal program regulations should be revisited to ensure adequate supervisory controls, quality assurance reviews of processes, and policies and procedures are being updated and adhered to for compliance purposes. Corrective Actions – Philander Smith College concurs with this finding, and the following action has been taken. Philander Smith College improved the efficiency of reconciling between the Financial Aid Office and COD by standardizing procedures. Staff-wide calendar events have been set to standardize routine processing of reconciliation data. Direct Loan SAS files are imported into the COD "DL SAS Disb On Demand Reader" tool and converted to Microsoft Excel files. Pell SAS/ Reconciliation files are imported into the COD "Pell Recon Reader" tool and converted to Microsoft Excel files. The SAS files and financial aid management system (FAMS) files are imported into Microsoft Access tables and Microsoft Access queries are run to determine discrepancies between SAS file data and FAMS data. This standardization provides an efficient procedure for staff members to follow. Staff have been cross trained to reduce processing delays. This system, incorporating efficient technology, calendar reminders, and cross training has improved the efficiency of reconciliation activities. Financial Aid staff coordinate with Business Office staff for notification after the Financial Aid to COD reconciliation is complete. Financial Aid staff are updating the policies for SAP supporting documentation submission that require students to submit documents via the student financial aid portal where documents will be securely stored and backed up within the College servers. Financial Aid staff are updating processes among Financial Aid, the Registrar's Office, and Academic Affairs to strengthen timely identification of both official and unofficial withdrawals for timely Return to Title IV Funds processing. Finally, during the pandemic, the College experienced some difficulties obtaining official high school transcripts due to school closings. The College is continuing to work to review files to ensure this is fully addressed.

View Audit 303301 Questioned Costs: $1

Finding 392959 (2023-002)

Material Weakness 2023

Public Water Supply District No. 1 of Ste. Genevieve County, Missouri

MO

Procurement, Suspension & Debarment Subrecipient Monitoring

Finding Type: Material Weakness. Name of Contact Person: Wes Hoganmiller, Manager. Recommendation: Controls should be put into place to ensure the District checks the SAM.gov website before it spends more than $25,000 with a vendor using federal funds. Corrective Action: The District will kee...

Finding Type: Material Weakness. Name of Contact Person: Wes Hoganmiller, Manager. Recommendation: Controls should be put into place to ensure the District checks the SAM.gov website before it spends more than $25,000 with a vendor using federal funds. Corrective Action: The District will keep the required documentation moving forward. Proposed Completion Date: Immediately.

View Audit 303268

Finding 392949 (2023-001)

Significant Deficiency 2023

Dignity Housing Association, Inc. 054-11074

SC

HUD Housing Programs Questioned Costs Procurement, Suspension & Debarment

Finding #2023-001 Comments on Findings and Recommendation: The Corporation's required deposit into the residual receipts account per the December 31, 2022 Computation of Surplus Cash, Distributions and Residual Receipts of $10,490 was not deposited within 90 days of the fiscal year end. Management s...

Finding #2023-001 Comments on Findings and Recommendation: The Corporation's required deposit into the residual receipts account per the December 31, 2022 Computation of Surplus Cash, Distributions and Residual Receipts of $10,490 was not deposited within 90 days of the fiscal year end. Management should make all required residual receipts deposits per the annual Computation of Surplus Cash, Distributions and Residual Receipts within 90 days after the fiscal year end. Action(s) taken or planned on the finding: Management concurs with the finding and recommendation. Management deposited $10,490 into the residual receipts fund on May 23, 2023. No further action is required.

View Audit 303230 Questioned Costs: $1

Finding 392948 (2023-002)

Significant Deficiency 2023

Baptist Educational and Missionary Services, Inc.054-Eh131-Wah-L8

SC

Questioned Costs Subrecipient Monitoring Cash Management

Finding #2023-002 Comments on Findings and Recommendation: At December 31, 2023, management has only made $16,583 of the required $60,829 deposit to the residual receipts account base on the December 31, 2022 Computation of Surplus Cash Distributions and Residual Receipts. Management should transfer...

Finding #2023-002 Comments on Findings and Recommendation: At December 31, 2023, management has only made $16,583 of the required $60,829 deposit to the residual receipts account base on the December 31, 2022 Computation of Surplus Cash Distributions and Residual Receipts. Management should transfer the deficient amount of $44,246 to the residual receipts account. Action(s) taken or planned on the finding: Management concurs with the finding and recommendation. Management deposited $44,246 to the residual receipts account on February 1, 2024. No further action is required.

View Audit 303229 Questioned Costs: $1

Finding 392947 (2023-001)

Significant Deficiency 2023

Baptist Educational and Missionary Services, Inc.054-Eh131-Wah-L8

SC

Questioned Costs Subrecipient Monitoring HUD Housing Programs

Finding #2023-001 Comments on Findings and Recommendation: At December 31, 2023, deposits to the reserve for replacements account of $3,938 had not been made. Management should transfer $3,938 from the operating account to the reserve for replacements account. Action(s) taken or planned on the findi...

Finding #2023-001 Comments on Findings and Recommendation: At December 31, 2023, deposits to the reserve for replacements account of $3,938 had not been made. Management should transfer $3,938 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.

View Audit 303229 Questioned Costs: $1

Finding 392946 (2023-001)

Significant Deficiency 2023

Amelia Village Hsg Corp. Dba Amelia Village 054-11075

SC

HUD Housing Programs Questioned Costs Subrecipient Monitoring

Finding #2023-001 Comments on the Finding and Recommendation: The Corporation's required deposit into the residual receipts account per the December 31, 2022 Computation of Surplus Cash, Distributions and Residual Receipts of $19,539 was not deposited within 90 days of the fiscal year end. Managemen...

Finding #2023-001 Comments on the Finding and Recommendation: The Corporation's required deposit into the residual receipts account per the December 31, 2022 Computation of Surplus Cash, Distributions and Residual Receipts of $19,539 was not deposited within 90 days of the fiscal year end. Management should make all required residual receipts deposits per the annual Computation of Surplus Cash, Distributions and Residual Receipts within 90 days after the fiscal year end. Management Response: Agree. Management deposited $19,539 into the residual receipts fund on November 30, 2023. No further action is required.

View Audit 303228 Questioned Costs: $1

Finding 392929 (2023-001)

Material Weakness 2023

City of Columbus, Ohio

OH

Procurement, Suspension & Debarment Subrecipient Monitoring

Finding Number: 2023-001 Planned Corrective Action: The City’s Division of Police acknowledges the finding in the Equitable Sharing Program and will take the following actions in response: Review training with personnel regarding the requirement and expectation for retention of documentation verify...

Finding Number: 2023-001 Planned Corrective Action: The City’s Division of Police acknowledges the finding in the Equitable Sharing Program and will take the following actions in response: Review training with personnel regarding the requirement and expectation for retention of documentation verifying SAM searches were performed; Review written procurement policies and procedures to incorporate the aforementioned expectation and requirement; Review that sam.gov searches must be completed for all federal purchases procured through City purchasing prior to award recommendation is submitted; and Plan to do a training prior to initiating procurements for the program in 2024. Anticipated Completion Date: 8/30/2024 Responsible Contact Persons:Trisha Wentzel, Deputy Assistant Director, Public Safety Mitch Clay, Police Fiscal Manager Planned Corrective Action: The City’s Department of Public Utilities (DPU) acknowledges the deficiency in the Capitalization Grants for Drinking Water State Revolving Fund and has taken the following actions to strengthen controls to prevent recurrence: Provide direct instruction and training to contract processing personnel regarding the requirement and expectation for retention of documentation verifying SAM.gov searches were performed; Modify written procedures to incorporate the aforementioned expectation and requirement to ensure the provisions pertaining to suspension and debarment applicable to federal grants are adhered to; Communicate the requirement and procedure change to the DPU Fiscal (Capital) staff in writing; and Prior to authorizing the start of contract legislation through approvals, DPU Fiscal Manager (Capital) shall verify SAM.gov search documentation has been retained as required. Anticipated Completion Date: 3/28/2024 Responsible Contact Persons: Tom Crawford, Fiscal Manager (Capital), Department of Public Utilities Planned Corrective Action: The City’s Department of Grant Management concurs with the finding in the State Local Fiscal Recovery Funds and will take the following actions in response: Provide training to personnel regarding the requirement and expectation for retention of documentation verifying SAM searches were performed; Communicate written procurement policies and procedures on the aforementioned expectation and requirement; and Re-issue procedures to ensure provisions pertaining to the Never Contract with the Enemy provisions applicable to federal grants are adhered to. Anticipated Completion Date: 6/30/2024 Responsible Contact Persons: Adam Robins, Deputy Director, Finance and Management Kali Harris, Federal Grants Coordinator

View Audit 303212

Finding 392908 (2023-002)

Significant Deficiency 2023

Rosemont College of the Holy Child Jesus

PA

Student Financial Aid Procurement, Suspension & Debarment Allowable Costs / Cost Principles

When SAP is run in the spring, students will be notified of their academic standing. Students who are suspended will have an opportunity to appeal their suspension. If the appeal of suspension is approved, students will meet with their academic advisor to be placed on an academic plan. The academic ...

When SAP is run in the spring, students will be notified of their academic standing. Students who are suspended will have an opportunity to appeal their suspension. If the appeal of suspension is approved, students will meet with their academic advisor to be placed on an academic plan. The academic plan must be signed by both the student and advisor. The academic plan must be submitted to the Office of Financial Aid via the teams. A financial aid hold will be placed on the student's account until the signed academic plan is received. Once received, the Office of Financial Aid will remove the hold so the student can be awarded.

View Audit 303193

Finding 392680 (2023-005)

Significant Deficiency 2023

Vaughn Public Schools

MT

Procurement, Suspension & Debarment Subrecipient Monitoring Internal Control / Segregation of Duties

FINDING 2022/2023-005: Capital Purchases Response: The district will follow better practices and have better communication regarding special purchases to ensure the correct coding.

View Audit 302966

Finding 392675 (2023-004)

Material Weakness 2023

Vaughn Public Schools

MT

Subrecipient Monitoring Matching / Level of Effort / Earmarking Internal Control / Segregation of Duties § 200.326

FINDING 2022/2023-004: Wage Rate Compliance Response: The District has policy# 8502 already in place and was adopted in April of 2022. The next time a construction job comes up in the district and is over $5000.00 and being paid out of federal funds, the district will ask for payroll reports that ...

FINDING 2022/2023-004: Wage Rate Compliance Response: The District has policy# 8502 already in place and was adopted in April of 2022. The next time a construction job comes up in the district and is over $5000.00 and being paid out of federal funds, the district will ask for payroll reports that show prevailing wages.

View Audit 302966

Finding 392489 (2023-015)

Material Weakness 2023

City of Laurel

MT

Questioned Costs Subrecipient Monitoring Reporting

NONCOMPLIANCE WITH REPORTING REQUIREMENTS, CORONAVIRUS STATE AND LOCAL FISCAL RECOVERY FUNDS; AL No. 21.027, GRANT No. Direct and AM-23-0287 Name of contact person: Kelly Strecker Corrective Action: The City commits to ensuring that a procurement policy be put in place that will allow it to comply...

NONCOMPLIANCE WITH REPORTING REQUIREMENTS, CORONAVIRUS STATE AND LOCAL FISCAL RECOVERY FUNDS; AL No. 21.027, GRANT No. Direct and AM-23-0287 Name of contact person: Kelly Strecker Corrective Action: The City commits to ensuring that a procurement policy be put in place that will allow it to comply with procurement standards outlined in the Uniform Guidance. Proposed Completion Date: December 1, 2024

View Audit 302828

Finding 392472 (2023-001)

Significant Deficiency 2023

Sonoran University of Health Sciences

AZ

Questioned Costs Subrecipient Monitoring Significant Deficiency

Student Financial Aid Cluster – Assistance Listing No.: Various Recommendation: We recommend that the University review the updated GLBA requirements and ensure their WISP includes all required elements. Explanation of disagreement with audit finding: There is no disagreement with the audit finding....

Student Financial Aid Cluster – Assistance Listing No.: Various Recommendation: We recommend that the University review the updated GLBA requirements and ensure their WISP includes all required elements. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: Sonoran University will implement the corrective action suggestions outlined in the audit findings, including: • Expansion of vulnerability mitigation to include the prescribed penetration and exploitation operations. • Complete migration of Sonoran servers vendor-supported versions (as of this writing, only two systems remaining). • Implementation of a phishing campaign education initiative for Sonoran University Employees. • Update WISP documents to meet the prescribed documentation requirements. • Build University-consistent data retention strategy. Name of the contact person responsible for corrective action: • Paul Collins, Senior Director of IT, Sonoran University. Planned completion date for corrective action plan: • Completion of all items by September 30, 2024.

View Audit 302771

Finding 392393 (2023-002)

Significant Deficiency 2023

Wyoming Department of Transportation

WY

Procurement, Suspension & Debarment Subrecipient Monitoring Matching / Level of Effort / Earmarking § 200.208 § 200.339

Upon learning of the requirement for the Federal Funding Accountability and Transparency Act (FFATA) reporting, the Highway Safety (HS) office completed the reporting in January 2024. The highway safety office completed FFATA reporting for grants from 2019-2023 which resulted in nine sub-awards bein...

Upon learning of the requirement for the Federal Funding Accountability and Transparency Act (FFATA) reporting, the Highway Safety (HS) office completed the reporting in January 2024. The highway safety office completed FFATA reporting for grants from 2019-2023 which resulted in nine sub-awards being reported. Going forward HS will complete the FFATA reporting after the subaward agreement is signed. During the year, HS will review agreements for additional obligations and update the FFATA reporting as necessary. Also, at the end of the year HS will conduct a final review to ensure all FFATA reporting was completed. Additionally, the Internal Review (IR) program has met with all of the grant administrators on January 29, 2024 to let them know about the FFATA requirements for each of their funding types. IR discussed the FFATA reporting requirement for sub-awards over $30,000. Each grant administrator will determine the best way to report their sub-awards in the Federal Subaward Reporting System (FSRS). Contact: Karson James, Highway Safety Grants Coordinator, Highway Safety and Mariá LaBorde, Internal Review Manager, Internal Review Anticipated Completion Date: January 29, 2024

View Audit 302740

Finding 392300 (2023-001)

Significant Deficiency 2023

Southern Union State Community College

AL

Subrecipient Monitoring Reporting Internal Control / Segregation of Duties § 200.303

Dealing with multiple HEERF grants was challenging because each grant required recording in a separate restricted fund. The college omitted one of these funds from the December 2022 quarterly HEERF report. The accountant for restricted grants did not realize a $71,280 purchase order was paid before ...

Dealing with multiple HEERF grants was challenging because each grant required recording in a separate restricted fund. The college omitted one of these funds from the December 2022 quarterly HEERF report. The accountant for restricted grants did not realize a $71,280 purchase order was paid before the end of the quarter, resulting in inaccurate reporting for the quarter. For future reports, the accountant for restricted grants will review all open purchase orders for payment to ensure that paid expenses are correctly included on the published report.

View Audit 302624

Finding 392257 (2023-001)

Material Weakness 2023

Home Share 092-Hd017

MN

Internal Control / Segregation of Duties Eligibility HUD Housing Programs § 200.303

Finding: 2023-001 – Compliance and Controls over Compliance – Eligibility Supportive Housing for Persons with Disabilities (Section 811), CFDA No. 14.181 Material Weakness & Noncompliance In 2023, Home Share did not have controls in place to ensure that eligibility criteria and rent calculations w...

Finding: 2023-001 – Compliance and Controls over Compliance – Eligibility Supportive Housing for Persons with Disabilities (Section 811), CFDA No. 14.181 Material Weakness & Noncompliance In 2023, Home Share did not have controls in place to ensure that eligibility criteria and rent calculations were being reviewed and/or approved by someone other than the individual making the initial determination or annual recertification. Actions Taken or Planned: Management agrees with this finding. Beginning in September 2023, management has changed the contractor they work with for the eligibility determination process. Management is working with the contractor to include a second individual in this process so that there will be a review performed by someone other than the individual making the initial determination or annual recertification. Contact Persons: Robert Pickering, Chief Financial Officer

View Audit 302523

Finding 392252 (2023-001)

Significant Deficiency 2023

Neidlinger Garden Ct,inc.dba Neidlinger Garden Court Apts073ee032npwah

IN

Questioned Costs Subrecipient Monitoring HUD Housing Programs

Finding 2023-001: The Corporation did not make all of the reserve for replacement deposits as required by HUD for the year ended June 30, 2023. Comments on the Finding and Each Recommendation: Management should transfer $14,000 from the operating cash account to the reserve for replacement fund. Act...

Finding 2023-001: The Corporation did not make all of the reserve for replacement deposits as required by HUD for the year ended June 30, 2023. Comments on the Finding and Each Recommendation: Management should transfer $14,000 from the operating cash account to the reserve for replacement fund. Action(s) taken or planned on the finding: On September 1, 2023, management transferred $10,000 from the operating cash account to the reserve for replacement fund. Management will transfer the remaining $4,000 from the operating account to the reserve for replacement fund as soon as possible.

View Audit 302490 Questioned Costs: $1

Finding 392251 (2023-002)

Significant Deficiency 2023

Oaklawn Apartments, Inc. Dba Oaklawn Apartments 073-11337-Refi

IN

Questioned Costs Procurement, Suspension & Debarment Subrecipient Monitoring

Finding 2023-002: During the year ended June 30, 2023, the Community paid for payroll expenditures on behalf of other communities managed by the Agent totaling $12,960. Comments on the Finding and Each Recommendation: The other communities managed by the Agent should reimburse the Community in the a...

Finding 2023-002: During the year ended June 30, 2023, the Community paid for payroll expenditures on behalf of other communities managed by the Agent totaling $12,960. Comments on the Finding and Each Recommendation: The other communities managed by the Agent should reimburse the Community in the amount of $12,960. Action(s) taken or planned on the finding: Agree. On September 6, 2023, the Agent has issued a credit to the Community of $12,960.

View Audit 302489 Questioned Costs: $1

Finding 392250 (2023-001)

Significant Deficiency 2023

Oaklawn Apartments, Inc. Dba Oaklawn Apartments 073-11337-Refi

IN

HUD Housing Programs Questioned Costs Procurement, Suspension & Debarment

Finding 2023-001: The required deposit per the June 30, 2022 Computation of Surplus Cash, Distributions and Residual Receipts was not deposited to the residual receipts fund within 90 days after the fiscal year end. Comments on the Finding and Each Recommendation: Management should ensure that surpl...

Finding 2023-001: The required deposit per the June 30, 2022 Computation of Surplus Cash, Distributions and Residual Receipts was not deposited to the residual receipts fund within 90 days after the fiscal year end. Comments on the Finding and Each Recommendation: Management should ensure that surplus cash is deposited to the residual receipts account within 90 days after the fiscal year end. Action(s) taken or planned on the finding: On June 6, 2023, management transferred $6,157 from operating cash to the residual receipts account. No further action is required.

View Audit 302489 Questioned Costs: $1

Finding 392248 (2023-001)

Significant Deficiency 2023

Knox Garden Court, Inc. Dba Knox Garden Court 073-Ee093-Np-Wah

IN

Questioned Costs Subrecipient Monitoring HUD Housing Programs

Finding 2023-001: The Corporation did not make all of the reserve for replacement deposits as required by HUD for the year ended June 30, 2023. Comments on the Finding and Each Recommendation: Management should transfer $1,840 from the operating cash account to the reserve for replacement fund. Acti...

Finding 2023-001: The Corporation did not make all of the reserve for replacement deposits as required by HUD for the year ended June 30, 2023. Comments on the Finding and Each Recommendation: Management should transfer $1,840 from the operating cash account to the reserve for replacement fund. Action(s) taken or planned on the finding: On September 1, 2023, management transferred $1,840 from the operating cash account to the reserve for replacement fund.

View Audit 302486 Questioned Costs: $1

Finding 392246 (2023-001)

Significant Deficiency 2023

Madison Residential Services, Inc. Dba Uhrig Apartments 073hh001

IN

Questioned Costs Subrecipient Monitoring HUD Housing Programs

Finding 2023-001: The Corporation did not make all of the reserve for replacement deposits as required by HUD for the year ended June 30, 2023. Comments on the Finding and Each Recommendation: Management should transfer $2,236 from the operating cash account to the reserve for replacement fund. Acti...

Finding 2023-001: The Corporation did not make all of the reserve for replacement deposits as required by HUD for the year ended June 30, 2023. Comments on the Finding and Each Recommendation: Management should transfer $2,236 from the operating cash account to the reserve for replacement fund. Action(s) taken or planned on the finding: Management will transfer $2,236 from the operating cash account to the reserve for replacement fund as soon as possible.

View Audit 302479 Questioned Costs: $1

Finding 392217 (2023-002)

Significant Deficiency 2023

Colorado Housing and Finance Authority

CO

Subrecipient Monitoring § 200.300

Finding: Reporting Corrective Actions Taken or Planned: The Authority is in the process of reporting all loan commitments related to the Capital Magnet Fund. Going forward, this step of the reporting process has been incorporated into the loan commitment closing process requiring one individual to...

Finding: Reporting Corrective Actions Taken or Planned: The Authority is in the process of reporting all loan commitments related to the Capital Magnet Fund. Going forward, this step of the reporting process has been incorporated into the loan commitment closing process requiring one individual to input the information in the FSRS controls, then receive supervisor review and approval before submitting the information. Contact person(s) responsible for corrective action: Terry Barnard - Manager Community Development Lending. Anticipated completion date: 6/30/2024

View Audit 302429

Finding 392153 (2023-007)

Material Weakness 2023

City of Baldwin Park

CA

Questioned Costs Subrecipient Monitoring Eligibility

2023-007 - Special Tests – Internal Control and Compliance over Housing Quality Standards Inspections (Material Weakness) Condition: We found five (5) instances out of 9 in which the City did not conduct the HQS failed inspection follow up in a timely manner. We also noted three (3) instances out of...

2023-007 - Special Tests – Internal Control and Compliance over Housing Quality Standards Inspections (Material Weakness) Condition: We found five (5) instances out of 9 in which the City did not conduct the HQS failed inspection follow up in a timely manner. We also noted three (3) instances out of 40 samples for eligibility testing has HQS inspections that are over a year apart, which shows that the City did not conduct the HQS biennial inspection in a timely manner. Management concurs. Corrective Actions: Management has directed staff to abide by the PHA policy and HUD regulations for the HQS inspection process. Management will continue to enforce HUD regulations and the use of the PHA’s administrative plan to ensure staff will conduct the HQS biennial inspection in a timely manner. Name of Responsible Person: Ron Garcia, Director of Community Development Imelda Delgado, Housing Manager Projected Implementation Date: Immediately implemented.

View Audit 302364

Finding 392152 (2023-006)

Significant Deficiency 2023

City of Baldwin Park

CA

Subrecipient Monitoring § 200.332 § 200.521

2023-06 – Subrecipient Monitoring – Internal Control and Compliance over Subrecipient Monitoring (Significant Deficiency) Condition: During our audit, we noted that the City did not have established monitoring policies and procedures for its subrecipients to address the compliance requirements. Cons...

2023-06 – Subrecipient Monitoring – Internal Control and Compliance over Subrecipient Monitoring (Significant Deficiency) Condition: During our audit, we noted that the City did not have established monitoring policies and procedures for its subrecipients to address the compliance requirements. Consequently, no subrecipient monitoring activities were conducted during the year. Management concurs. Corrective Actions: City staff will prepare a policy and procedure for subrecipient monitoring by April 2024. Name of Responsible Person: Robert A. López, Chief of Police Manuel Carrillo Jr., Director of Recreation & Community Services Ron Garcia, Director of Community Development Sam Gutierrez, Director of Public Works Rose Tam, Director of Finance Albert Trinh, Accounting Manager Projected Implementation Date: The City will implement the policy and procedure by April 2024.

View Audit 302364

Finding 392148 (2023-005)

Material Weakness 2023

City of Baldwin Park

CA

Subrecipient Monitoring HUD Housing Programs Reporting § 200.327

2023-005 - Reporting – Internal Control and Compliance over Reporting (Material Weakness) Condition: Community Development Block Grants-Entitlement Grants Cluster The City did not submit the required Cash on Hand Quarterly Report in a timely manner. The quarterly Cash on Hand Quarterly Report for th...

2023-005 - Reporting – Internal Control and Compliance over Reporting (Material Weakness) Condition: Community Development Block Grants-Entitlement Grants Cluster The City did not submit the required Cash on Hand Quarterly Report in a timely manner. The quarterly Cash on Hand Quarterly Report for the all of the four (4) reporting periods were submitted on February 26, 2024. The City did not submit any of the four (4) quarterly Section 15011 Reports for the year ended June 30, 2023. Housing Voucher Cluster The audited Financial Data Schedule (FDS) for the fiscal year ended June 30, 2022 was not submitted on or before the March 31, 2023 due date. The unaudited Financial Data Schedule (FDS) for the fiscal year ended June 30, 2023 was not submitted on or before the August 31, 2023 due date. We also noted for 2 out of 4 VMS reports tested, there was no evidence of review and approval prior to submission to HUD. A nonstatistical sample of 4 out of 12 VMS reports were selected for test work. Management concurs. Corrective Actions: Due to large staff turnover in the Housing Department and Finance Department during the last 2 years, the reporting has been delayed. The City will submit all the approved reports stated above timely going forward. Name of Responsible Person: Ron Garcia, Director of Community Development Imelda Delgado, Housing Manager Rose Tam, Director of Finance Albert Trinh, Accounting Manager Projected Implementation Date: Immediately implemented.

View Audit 302364

Finding 392145 (2023-004)

Significant Deficiency 2023

City of Baldwin Park

CA

Procurement, Suspension & Debarment Subrecipient Monitoring § 200.318 § 200.319 § 200.320 § 200.327

2023-004 - Procurement, Suspension, and Debarment – Internal Control over Procurement and Verification Against the System for Award Management (“SAM”) (Significant Deficiency) Condition: Community Development Block Grants-Entitlement Grants Cluster Based on the City’s formal purchasing policy, purc...

2023-004 - Procurement, Suspension, and Debarment – Internal Control over Procurement and Verification Against the System for Award Management (“SAM”) (Significant Deficiency) Condition: Community Development Block Grants-Entitlement Grants Cluster Based on the City’s formal purchasing policy, purchase orders are required to initiate purchases from procured vendors for transactions above $5,000. During our audit, we noted that seven (7) out of forty (40) samples did have purchase order approval made subsequent to invoice approval. The aforementioned circumstance suggests that the method of procurement was not in line with the City’s adopted policy established in line with the uniform guidance. Coronavirus State and Local Fiscal Recovery Funds We determined that seven (7) out of forty (40) samples did have purchase order approval made subsequent to invoice approval. The aforementioned circumstance suggests that the method of procurement was not in line with the City’s adopted policy established in line with the uniform guidance. During our audit, we also noted that there was no supporting document to indicate that the City verified the vendor against the SAM to ensure the vendor was not suspended or debarred from federally-funded programs before the contract was entered into. Management concurs. Corrective Actions: The City has an existing purchasing policy and procedures that require documentation for all purchases. Finance department has sent to all department heads reminder and the importance of compliance with the policy and procedures. The reminder also emphasizes the necessity of preparing a purchase order before procuring products or services from a vendor. There may be certain circumstances preventing the preparation of a purchase order prior to procurement, such as the nature of the services or the urgency of acquiring materials and supplies, departments may proceed with the procurement as long as the services or purchases are within adopted budget. City Council approved the Federal Award Management Policy & Procedures on agenda item #4 on December 6, 2023. Finance staff has also updated the requisition form to include a verification of SAM.gov clearance, requiring any backup indicating the vendors status if it is federally funded. City staff has been diligently verifying the suspension or debarment for all federally funded expenditures. Implemented Name of Responsible Person: Robert A. López, Chief of Police Manuel Carrillo Jr., Director of Recreation & Community Services Ron Garcia, Director of Community Development Sam Gutierrez, Director of Public Works Rose Tam, Director of Finance Albert Trinh, Accounting Manager Projected Implementation Date: All actions needed have been Immediately implemented.

View Audit 302364

Corrective Action Plans

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