Corrective Action Plans

2020-002 – INTERNAL CONTROLS OVER COMPLIANCE MATERIAL WEAKNESS Auditee’s Response and Planned Corrective Action The Authority hired a new Executive Director in November 2023. Under new management, the Authority will maintain proper monitoring, communication and control activities to ensure adherence to the Authority’s key administrative policies including procurement, occupancy and the HCV administrative plan. Additionally, management will have the Board approve all policies and procedures adopted and communicate them with the third party company that manages the Authority’s Housing Choice Voucher and Mainstream Voucher programs. Planned Implementation Date of Corrective Action: Immediately Person Responsible for Corrective Action: Kayla Potter, Executive Director

The fiscal coding system implemented in the accounting software includes specific codes for subrecipient expenditures, enabling clear tracking and reconciliation of subaward amounts. The new bookkeeping firm with ensure subrecipient expenditures are reconciled to reimbursement request amounts by February 28, 2026. Implement a standardized reconciliation process and maintain supporting documentation in a centralized location, including detailed reconciliation worksheets by March 31, 2026. Train staff involved in subrecipient monitoring and reimbursement submissions on Uniform Guidance requirements, including 2 CFR 200.332 pass-through entity responsibilities by April 30, 2026. Perform periodic internal reviews to ensure compliance and documentation completeness, with monthly reconciliation reviews during active subaward periods beginning May 2026. Develop comprehensive subrecipient monitoring procedures manual documenting all required monitoring activities, reporting requirements, and documentation standards by June 30, 2026. Establish annual risk assessments of subrecipients and implement risk-based monitoring approaches, including site visits for high-risk subrecipients by July 31, 2026.

MANAGEMENT’S CORRECTIVE ACTION PLAN 2019-005 Matching Federal Program: Aging Cluster – 93.044/93.045/93.053 Criteria: Per 7 CFR Section 200.302 (b)(4) the Organization is required to maintain records that identify adequately the source and application of funds for federally-funded activities. These records must contain information pertaining to Federal awards, authorizations, financial obligations, unobligated balances, assets, expenditures, income and interest and be supported by source documentation. Condition: During our testing, we noted of the 3 months tested that the volunteer sign-in sheets tested were not properly approved. Questioned Costs: None Context: Volunteer forms were completed by the volunteers but did not have proper approval by on-site supervisory personnel. Effect: An ineffective control system related to the review and approval of volunteer sign-in sheets. Repeat finding: This is not a repeat finding. Recommendation: We recommend the Organization implement a procedure to ensure all volunteer sign-in sheets are approved. Views of responsible officials and planned corrective actions: The Finance & Administrative Director will implement a new procedure to ensure all volunteer sign-in sheets are approved by the staff, supervisors, and directors at each location when submitted. An “Approved By” line will be included on all sheets. Individuals responsible for corrective action: Josette Shuey, Finance & Administrative Director; Marianne Ybarra, Director Stephanie Galloway, Director; Pat Austin, Director Brittany Harper, Nutrition Director; Tammy Williams, Nutrition Director Anticipated Completion Date: July 31, 2021

MANAGEMENT’S CORRECTIVE ACTION PLAN 2019-004 Allowable Costs Federal Program: Aging Cluster – 93.044/93.045/93.053 Criteria: Per 7 CFR Section 200.302 (b)(4) the Organization is required to maintain records that identify adequately the source and application of funds for federally-funded activities. These records must contain information pertaining to Federal awards, authorizations, financial obligations, unobligated balances, assets, expenditures, income and interest and be supported by source documentation. Condition: During our testing, we noted 2 instances out of 18 where expenses did not have proper approval on invoices. Questioned Costs: None Context: 18 expenses were selected during 2019 and we noted 2 instances of noncompliance. The sample is a statistically valid sample. Effect: An ineffective control system related to the review and approval of grant expenses. Repeat finding: This is not a repeat finding. Recommendation: The Organization should implement the appropriate controls to ensure all expenses are individually reviewed and approved by appropriate personnel. Views of responsible officials and planned corrective actions: The Finance & Administrative Director will implement an electronic workflow for expense review and approval by staff, supervisors, and directors as necessary. The process will be approved by the President & CEO. Individuals responsible for corrective action: Josette Shuey, Finance & Administrative Director Anticipated Completion Date: July 1, 2021

Federal Agency: U.S. Department of Housing and Urban Development Federal Program: 14.218 Entitlement Grants Cluster: Community Development Block Grants/Entitlement Grants Identification Number: B-15-MC-42-0018; B-16-MC-42-0018; B-17-MC-42-0018; B-18-MC-42-0018; B-19- MC-42-0018 Requirement: Activities Allowed or Unallowed; Allowable Costs/Cost Principles; Period of Performance; Reporting; Special Tests and Provisions Type of Finding: Material weakness in internal control over major program; Noncompliance Description of Finding: The City does not have policies and procedures in place to accurately and completely account for federally funded activities separately from non-federally funded activities in their financial management system. Section 2 CFR 200.302 of the Uniform Guidance states that the financial management system must provide for identification, in its accounts, of all federal awards received and expended and the federal programs under which they were received. federal program and federal award identification must include, as applicable, the AL title and number, federal award identification and year, name of the federal agency, and the name of the pass-through entity, if any. Recommendation: We recommend the City implement procedures to ensure consistent and accurate accounting for federal grant expenditures in accordance with section 2 CFR 200.302 of the Uniform Guidance. Statement of Concurrence: The City of York, Pennsylvania agrees with audit finding 2019-014. Corrective Action: The City of York has implemented a new financial management system, OpenGov, to allow for identification of these awards. This allows the City to provide accurate data for all awards received and expended under these federal programs. The new procurement suite allows for tracking of titles, AL numbers, and agency tracking. Name of Contact Person Responsible for the Corrective Action: Contact Full Name: Kimberly Robertson Contact title: Business Administrator for Finance Address: 101 South George Street City: York State: Pennsylvania Zip Code: 17401 Phone: (717) 849-2883 E-mail: KRobertson@yorkcity.org Timetable for Correction: The anticipated date for resolving the audit finding is December 31, 2024.