Corrective Action Plans

Recommendation: We recommend that Willowbrook Senior Housing, Inc. develop specific procedures to ensure that the data collection form is filed within 30 days after the audit report is received. Action Taken: Willowbrook Senior Housing, Inc. will develop procedures to ensure that the data collection form is filed before the due date. Name of responsible person responsible for corrective action: Brad Bailey Anticipated completion date for the corrective action: October 15, 2023

Recommendation: We recommend that Oak Hills Senior Housing, Inc. develop specific procedures to ensure that the data collection form is filed within 30 days after the audit report is received. Action Taken: Oak Hills Senior Housing, Inc. will develop procedures to ensure that the data collection form is filed before the due date. Name of responsible person responsible for corrective action: Brad Bailey Anticipated completion date for the corrective action: October 15, 2023

Recommendation: We recommend that Miller Place Senior Complex, Inc. develop specific procedures to ensure that the data collection form is filed within 30 days after the audit report is received. Action Taken: Miller Place Senior Complex, Inc. will develop procedures to ensure that the data collection form is filed before the due date. Name of responsible person responsible for corrective action: Brad Bailey Anticipated completion date for the corrective action: October 15, 2023

Recommendation: We recommend that Billy V. Hall Senior Complex, Inc. develop specific procedures to ensure that the data collection form is filed within 30 days after the audit report is received. Action Taken: Billy V. Hall Senior Complex, Inc. will develop procedures to ensure that the data collection form is filed before the due date. Name of responsible person responsible for corrective action: Brad Bailey Anticipated completion date for the corrective action: October 15, 2023

Recommendation: We recommend that White River Senior Complex, Inc. develop specific procedures to ensure that the data collection form is filed within 30 days after the audit report is received. Action Taken: White River Senior Complex, Inc. will develop procedures to ensure that the data collection form is filed before the due date. Name of responsible person responsible for corrective action: Brad Bailey Anticipated completion date for the corrective action: October 15, 2023

Recommendation: We recommend that Dixieland Gardens Senior Housing, Inc. develop specific procedures to ensure that the data collection form is filed within 30 days after the audit report is received. Action Taken: Dixieland Gardens Senior Housing, Inc. will develop procedures to ensure that the data collection form is filed before the due date. Name of responsible person responsible for corrective action: Brad Bailey Anticipated completion date for the corrective action: October 15, 2023

Recommendation: We recommend that Ozark Meadows II, Inc. develop specific procedures to ensure that the data collection form is filed within 30 days after the audit report is received. Action Taken: Ozark Meadows II, Inc. will develop procedures to ensure that the data collection form is filed before the due date. Name of responsible person responsible for corrective action: Brad Bailey Anticipated completion date for the corrective action: October 15, 2023

Recommendation: We recommend that Fallen Ash Senior Complex, Inc. develop specific procedures to ensure that the data collection form is filed within 30 days after the audit report is received. Action Taken: Fallen Ash Senior Complex, Inc. will develop procedures to ensure that the data collection form is filed before the due date. Name of responsible person responsible for corrective action: Brad Bailey Anticipated completion date for the corrective action: October 15, 2023

Recommendation: We recommend that North Arkansas Senior Housing of Bull Shoals and Gravette, Inc. develop specific procedures to ensure that the data collection form is filed within 30 days after the audit report is received. Action Taken: North Arkansas Senior Housing of Bull Shoals and Gravette, Inc. will develop procedures to ensure that the data collection form is filed before the due date. Name of responsible person responsible for corrective action: Brad Bailey Anticipated completion date for the corrective action: October 15, 2023

Recommendation: We recommend that Flint Creek Apartments, Inc. develop specific procedures to ensure that the data collection form is filed within 30 days after the audit report is received. Action Taken: Flint Creek Apartments, Inc. will develop procedures to ensure that the data collection form is filed before the due date. Name of responsible person responsible for corrective action: Brad Bailey Anticipated completion date for the corrective action: October 15, 2023

2022-01 Single Audit Data Collection Form Not Filed By Due Date Recommendation: We recommend that Ozark Meadow Apartments, Inc. develop specific procedures to ensure that the data collection form is filed within 30 days after the audit report is received. Action Taken: Ozark Meadow Apartments, Inc. will develop procedures to ensure that the data collection form is filed before the due date. Name of responsible person responsible for corrective action: Brad Bailey Anticipated completion date for the corrective action: October 15, 2023

Finding 2022-02: Late Submission of Financial Statements to FAC and REAC (Significant Deficiency) Corrective Action Plan: Lack of leadership and structure within the Finance department along with the ripple effects from a previous waiver submission requirement under COVID for delayed audit submissions lead to missed deadlines for the delivery of the financial statements to REAC. To remedy this finding, RRHA’s new CFO has implemented an earlier internal deadline for Unaudited FDS submissions. RRHA’s Unaudited FDS is due November 30th. However, the new internal deadline date will be scheduled before Thanksgiving each year. We will also work with our auditors to establish an audit schedule that will allow us to submit the Audited FDS prior to the June 30th deadline. Name of Responsible Person: Precious Washington, Senior Vice President/Chief Financial Officer Expected Completion Date: September 30, 2024

Condition: The WNCAP Single Audit was not submitted to the Federal Audit Clearinghouse within the prescribed period. Corrective Action: The key position of Director of Finance was filled in October 2022, and will remain appropriately staffed going forward. The main cause for this delay was the delay of the previous Single Audit, since it extended into this fiscal year’s timeline. The Director of Finance was able to complete the SEFSA for this audit in a timely manner, and the audit progressed at a reasonable pace. Management will continue to refine internal processes for efficiency; and WNCAP is on track to submit the next Single Audit (FY 2022-23) by the standard deadline of March 31, 2024. In addition, management created a risk assessment policy and procedure to be initiated any time there is turnover in key personnel who play a role in the finance-related activities of the organization. The process includes the following steps: naming an assessor/monitor to lead the effort, who must be the staff member at the highest level of financial responsibility; creation of a monitoring plan that identifies risks, their potential impacts, the actionable steps to mitigate said impacts, and assigns actionable steps to specific staff. The assessor/monitor decides the duration of the monitoring period, and is tasked with routinely meeting with responsible staff to ensure mitigation activities are implemented, and update the monitoring plan as needed. One of the potential impacts named in the policy is “past-due submission of the Single Audit into the FAC”.

The organization has made various changes to personnel within the Finance Department as well as outsourcing of Finance Director duties to an outside CPA firm. These changes have streamlined the accounting process which will enable the year-end financial statements to be completed and forwarded to the auditor in a timely fashion. The audit for the year ended June 30, 2023 has already been scheduled and will begin during the week of October 23, 2023. This timeline will ensure that the Single Audit reporting package and data collection form can be submitted well in advance of the due date.

Plan: 1. Audit and data collection form will be filed timely starting with the year ended June 30, 2023 filings. . Name of Contact Person: Carla Licavoli, Chief Operating & Compliance Officer Target Date: Filings to be completed by the applicable deadlines starting with the June 30, 2023 submissions.

2022-004: Reporting - Timely Submission of Financial Reports – Material Weakness in Internal control over Financial Reporting and Noncompliance  The City recently hired a Finance Director and is working to fill the Controller position. Being fully staffed will assist in the timely completion of the City’s audit.  Anticipated completion: December 2023

Action taken: BRHC will work with the audit firm to ensure that the audit fieldwork is scheduled with sufficient time to allow the audit report and data collection form are filed timely in the future.

Finding 2022-004 Late Reporting and Noncompliance with Reporting Requirements Name of Contact: Martha Turner, Tribal Administrator Corrective Action Plan: We concur with this recommendation. Initially Nulato Tribal Council thought that the audit was completed and ready for review in March 2023. In April the unrecorded liabilities identified in Finding 2022-001 were discovered, which took some time with the parties involved to agree the actual balances owed. With the tying out of internal transactions monthly this should not be an issue in the future. Proposed Completion Date: June 30, 2024

Response and corrective action plan: Baker Places, Inc. concurs with the finding. Agency has hired additional financial staff and consulting resources in order to complete its annual audit and submission to the Federal Audit Clearinghouse (FAC) in a timely fashion. We anticipate that the FY 2022-23 audit will be submitted to the FAC within the March 31, 2024 deadline (nine months after the end of our fiscal year). Anticipated completion date: March 31, 2024. Responsible person: Leo Levenson, Consulting CFO.

We were not able to submit the financials on time because we lost our previous auditors in 2021. It took some time to find a new company that handles HUD related audits. Going forward, we will work on getting back to our normal audit schedule to get back in compliance at the soonest possible time.

We were not able to submit the financials on time because we lost our previous auditors in 2021. It took some time to find a new company that handles HUD related audits. Going forward, we will work on getting back to our normal audit schedule to get back in compliance at the soonest possible time.

We were not able to submit the financials on time because we lost our previous auditors in 2021. It took some time to find a new company that handles HUD related audits. Going forward, we will work on getting back to our normal audit schedule to get back in compliance at the soonest possible time.

We were not able to submit the financials on time because we lost our previous auditors in 2021. It took some time to find a new company that handles HUD related audits. Going forward, we will work on getting back to our normal audit schedule to get back in compliance at the soonest possible time.

We were not able to submit the financials on time because we lost our previous auditors in 2021. It took some time to find a new company that handles HUD related audits. Going forward, we will work on getting back to our normal audit schedule to get back in compliance at the soonest possible time.

Audit Finding Reference: 2021-001 Timely Filing of Single Audit Report Planned Corrective Action: The Town of Lexington, including the municipal and school finance departments, will jointly address the timely filing of Single Audit reports. The preparation of the SEFA has been assumed by the Town Accountant beginning with fiscal year 2024 (previously prepared by the external audit team). Going forward, the Town has developed the following schedule to maintain timely filing within 9 months of fiscal year end: July-August Town staff perform fiscal year-end reconciliations and General Ledger close. Assistant Town Manager for Finance to schedule kick-off meeting with CBiz Audit team; establish audit calendar/timeline. Responsible Personnel Municipal and School finance teams; CBiz Single Audit team September-October School Lunch data to be provided by School Finance to Town Accountant by September 30th. SEFA to be completed by the Town Accountant and sent to CBiz by October 31st. Responsible Personnel Town Accountant, School Finance Director October-February Receipt of detailed audit request list from CBiz Audit team. Sample testing to be divided between Municipal and School transactions (split by Town Accountant if initially combined). Town Accountant and School Finance Director to monitor and ensure their respective requests are processed within 10 business days. Same with follow-up questions/requests. Suralink platform to be utilized for item tracking and completion. Audit team communications should include both School and Municipal staff to ensure coordination Responsible Personnel Town Accoutant; School Finance Director March Review Audit report and findings. Completion and submission of Single Audit, in conjunction with primary audit, by March 31st. Responsible Personnel Assistant Town Manager for Finance; Assistant Superintendent for Finance and Operations Planned Implementation Date of Corrective Action: The Town of Lexington, including municipal and school finance departments, intends to complete all outstanding Single Audits from fiscal years 2022-2025 within the next 12 months, ending June 30, 2027. Future Single Audits will adhere to the timeline above. Person Responsible for Corrective Action: Carolyn Kosnoff, Assistant Town Manager for Finance