Corrective Action Plans

Finding 391619 (2023-001)

Significant Deficiency 2023

FL

Reporting Significant Deficiency Matching / Level of Effort / Earmarking § 200.302

Additional preventive internal control procedures will be implemented, including an additional level of review of the Schedules and reconciliation. These procedures and internal controls have been implemented as of the date of this report.

View Audit 302073

Finding 391618 (2023-002)

Significant Deficiency 2023

Aspire Health Partners, Inc.

FL

Reporting Internal Control / Segregation of Duties Cash Management § 200.303

Additional preventive internal control procedures will be implemented, including an additional level of review of the Schedules and reconciliation. These procedures and internal controls have been implemented as of the date of this report.

View Audit 302073

Finding 391617 (2023-006)

Significant Deficiency 2023

County of Maui

HI

Allowable Costs / Cost Principles Subrecipient Monitoring Cash Management § 200.400 § 200.430

Ref. No. Compliance and Internal Control over Compliance Findings 2023-006 Allowable Costs – Significant Deficiency Recommendation We recommend the County follow their internal control process to ensure that adequate documentation supports the accumulation of costs charged to the Program as requ...

Ref. No. Compliance and Internal Control over Compliance Findings 2023-006 Allowable Costs – Significant Deficiency Recommendation We recommend the County follow their internal control process to ensure that adequate documentation supports the accumulation of costs charged to the Program as required by 2 CFR §200 Subpart E. View of Responsible Officials and Planned Corrective Action Management agrees with this finding. The Department of the Prosecuting Attorney’s office has reviewed and agreed a detailed line item report and Payment Request/Approval form did not accompany the respective RFF. The Department has already corrected these deficiencies to ensure each expense has an Expense Approval form with justification and that each RFF is accompanied with a detailed line item report and backup documentation for each expense being requested for reimbursement. Each payroll and non-payroll monthly invoices submitted clearly shows the breakdown. With each invoice submitted, it will state, as an example, “VOCA-SNAP 21-V2-01 Report & Attachments MM/YY”. A sample of this was submitted on March 25, 2024 with response. In short, the necessary back-up requested going forward is and will be available to submit for future audits or reviews. Anticipated Completion Date: 3/27/2024 Responding Person(s): Robert Nadal Grant Management Specialist Phone No. 808-270-7608

View Audit 302070

Finding 391616 (2023-005)

Significant Deficiency 2023

County of Maui

HI

Subrecipient Monitoring § 200.332

Ref. No. Compliance and Internal Control over Compliance Findings 2023-005 Subrecipient Monitoring - Significant Deficiency Recommendation We recommend the County ensure the completion of its Project Monitoring Report Form during the contract period and obtain the Subrecipient Monitoring Form fr...

Ref. No. Compliance and Internal Control over Compliance Findings 2023-005 Subrecipient Monitoring - Significant Deficiency Recommendation We recommend the County ensure the completion of its Project Monitoring Report Form during the contract period and obtain the Subrecipient Monitoring Form from its subrecipients at the end of every contract period as part of its monitoring procedures over subrecipients. View of Responsible Officials and Planned Corrective Action Management agrees with this finding. The Department of the Prosecuting Attorney’s office has reviewed and agreed one of the Subrecipient Monitoring Forms was not submitted, as we cannot locate it as it was stored on a computer hard drive of a former employee. However, on the second monitoring form which was submitted, after further review, discrepancies were found within the submitted monitoring form in regard to back-up documentation. The monitoring was conducted and completed within the requested time frame but a follow-up was not conducted to address a discrepancy for the VOCA-SNAP-20-V2-01 grant. Subrecipient monitoring will be conducted at the end of every grant period as per the Recommendation. The DPA has already implemented that such forms are to be maintained electronically on a shared drive and hard copy for the file. Anticipated Completion Date: Ongoing Responding Person(s): Robert Nadal Grant Management Specialist Phone No. 808-270-7608

View Audit 302070

Finding 391615 (2023-004)

Significant Deficiency 2023

County of Maui

HI

Subrecipient Monitoring Reporting Significant Deficiency

Ref. No. Compliance and Internal Control over Compliance Findings 2023-004 Reporting - Significant Deficiency Recommendation The County should improve their internal control process to ensure that quarterly reports required by Section 15011 of the CARES Act are completed and submitted on a timel...

Ref. No. Compliance and Internal Control over Compliance Findings 2023-004 Reporting - Significant Deficiency Recommendation The County should improve their internal control process to ensure that quarterly reports required by Section 15011 of the CARES Act are completed and submitted on a timely basis. View of Responsible Officials and Planned Corrective Action Management concurs with the finding as it applies to the special allocation of CARES Act funds. CDBG is implementing a new software program that will improve internal process controls and program efficiency. The software will automatically generate reminder notifications to CDBG staff and subrecipients of upcoming deadlines for quarterly reports. The CDBG Specialist will follow up with a letter to subrecipient to document non-compliance and additional corrective actions, as applicable. A policy and procedures manual for this software program will also be completed. Management further adds that due to a change in administration effective January 1, 2023, the CDBG Program experienced a 100% staff changeover. End Date: Ongoing Responding Person(s): Patience M. K. Kahula, CDBG Program Director Office of the Mayor Phone No. (808) 270-7213

View Audit 302070

Finding 391614 (2023-001)

Significant Deficiency 2023

City of El Cajon

CA

Questioned Costs Matching / Level of Effort / Earmarking § 200.302

The Public Works Department shall consult with the Finance Department to revise the reimbursement process to ensure future requests reconcile the specific amount expended by the grant. The revised process will include preparation of the reimbursement request using the City's financial system of reco...

The Public Works Department shall consult with the Finance Department to revise the reimbursement process to ensure future requests reconcile the specific amount expended by the grant. The revised process will include preparation of the reimbursement request using the City's financial system of record, and an independent review prior to submission to the grantor.

View Audit 302069 Questioned Costs: $1

Finding 391613 (2023-006)

Material Weakness 2023

City of Eureka

CA

Questioned Costs Equipment & Real Property Management § 200.313

Finding – Internal control deficiencies over tracking equipment Name of contact person: Lane Millar, Finance Director Corrective action: Employees tasked with equipment tracking will receive training prior to commencing such assignments. Proposed completion date: March 1, 2024

View Audit 302063 Questioned Costs: $1

Finding 391612 (2023-005)

Material Weakness 2023

City of Eureka

CA

Questioned Costs Procurement, Suspension & Debarment § 200.318 § 200.320 § 200.326

Finding – Internal control deficiencies over procurement requirements Name of contact person: Lane Millar, Finance Director Corrective action: The City will ensure that employees receive comprehensive training on procurement requirements as a prerequisite before undertaking those responsibilit...

Finding – Internal control deficiencies over procurement requirements Name of contact person: Lane Millar, Finance Director Corrective action: The City will ensure that employees receive comprehensive training on procurement requirements as a prerequisite before undertaking those responsibilities. Proposed completion date: March 1, 2024

View Audit 302063 Questioned Costs: $1

Finding 391611 (2023-004)

Material Weakness 2023

City of Eureka

CA

Questioned Costs Subrecipient Monitoring Allowable Costs / Cost Principles § 200.303

Finding – The City did not have adequate internal controls to ensure compliance with time and effort requirements. Name of contact person: Lane Millar, Finance Director Corrective action: The City has revised its internal controls to guarantee compliance with time and effort requirements. Furth...

Finding – The City did not have adequate internal controls to ensure compliance with time and effort requirements. Name of contact person: Lane Millar, Finance Director Corrective action: The City has revised its internal controls to guarantee compliance with time and effort requirements. Furthermore, the City plans to engage external professional and technical services for the management of significant State and Federal Grants. Proposed completion date: March 1, 2024

View Audit 302063 Questioned Costs: $1

Finding 391600 (2023-007)

Significant Deficiency 2023

St. Francis School District

WI

Allowable Costs / Cost Principles

St. Francis School District has taken steps to ensure all transactions expensed to district funds including federal and state funds are properly reviewed by appropriate parties with knowledge of allowable costs and the specific expense incurred. Prior to Items being purchased with grant funds all re...

St. Francis School District has taken steps to ensure all transactions expensed to district funds including federal and state funds are properly reviewed by appropriate parties with knowledge of allowable costs and the specific expense incurred. Prior to Items being purchased with grant funds all requests are to be approved by the budget manager who oversees the specific funds. Orders may only be placed once approval is received from the budget manager and the Director of Finance. Payment of an invoice is not to be made until service has been rendered complete or item has been received in full. Budget managers approve all invoices prior to Director of Finance reviewing for final approval of payment.

View Audit 302062

Finding 391599 (2023-006)

Material Weakness 2023

St. Francis School District

WI

Allowable Costs / Cost Principles Internal Control / Segregation of Duties Subrecipient Monitoring

St. Francis School District has taken steps to ensure all transactions expensed to district funds including federal and state funds are properly reviewed by appropriate parties with knowledge of allowable costs and the specific expense incurred. Prior to Items being purchased with grant funds all re...

St. Francis School District has taken steps to ensure all transactions expensed to district funds including federal and state funds are properly reviewed by appropriate parties with knowledge of allowable costs and the specific expense incurred. Prior to Items being purchased with grant funds all requests are to be approved by the budget manager who oversees the specific funds. Orders may only be placed once approval is received from the budget manager and the Director of Finance. Payment of an invoice is not to be made until service has been rendered complete or item has been received in full. Budget managers approve all invoices prior to Director of Finance reviewing for final approval of payment.

View Audit 302062

Finding 391598 (2023-001)

Significant Deficiency 2023

City of La Verne

CA

Reporting Internal Control / Segregation of Duties

The City will take proactive measures to address technical issues that may impede timely submissions. Additionally, the City will update contacts within the necessary agency promptly when staffing changes occur and work closely with relevant federal agencies to resolve technical issues and ensure co...

The City will take proactive measures to address technical issues that may impede timely submissions. Additionally, the City will update contacts within the necessary agency promptly when staffing changes occur and work closely with relevant federal agencies to resolve technical issues and ensure compliance with reporting requirements.

View Audit 302059

Finding 391597 (2023-001)

Significant Deficiency 2023

Thatcher Unified School District No. 4

AZ

Equipment & Real Property Management Procurement, Suspension & Debarment Significant Deficiency § 200.313 § 200.439

CORRECTIVE ACTION PLAN U.S. Department of Education Thatcher Unified School District No. 4 respectfully submits the following corrective action plan for the year ended June 30, 2023. Audit period: July 1, 2022 – June 30, 2023 The findings from the schedule of findings and questioned costs are discus...

CORRECTIVE ACTION PLAN U.S. Department of Education Thatcher Unified School District No. 4 respectfully submits the following corrective action plan for the year ended June 30, 2023. Audit period: July 1, 2022 – June 30, 2023 The findings from the schedule of findings and questioned costs are discussed below. The findings are numbered consistently with the numbers assigned in the schedule. FINDINGS— FEDERAL AWARDS FINDINGS AND QUESTIONED COSTS Finding Number: 2023-001 Repeat Finding: Yes Program Name/Assistance Listing Title: Education Stabilization Fund Assistance Listing Number: 84.425D and 84.425U Federal Agency: U.S. Department of Education Federal Award Number: 23SSPCON-311221-01A, 21FESSII-111221-01A, 21FESIII-111221-01A Questioned Costs: None Type of Finding: Noncompliance, Significant Deficiency Compliance Requirement: Equipment/Real Property Management Condition/Context: The District did not tag and track the capital assets purchased with Education Stabilization Fund monies. Action planned in response to finding: Management will establish procedures to ensure all assets are properly tagged and tracked to prevent theft, fraud, or misuse of District assets. Planned completion date for corrective action plan: For the period ending June 30, 2024. Name of the contact person responsible for corrective action: Clay Bowman, Director of Finance

View Audit 302058

Finding 391596 (2023-001)

Significant Deficiency 2023

Saint Elizabeth Shelter Corporation, Inc.

NM

Equipment & Real Property Management § 200.303 § 200.313

St. Elizabeth’s has recently hired a property and maintenance manager who will, among other things, be responsible for identifying and tracking all assets. Finance will work with this new hire to develop procedures and implement the necessary steps to track physical inventory.

View Audit 302055

Finding 391594 (2023-001)

Significant Deficiency 2023

Community Action Opportunities

NC

Allowable Costs / Cost Principles § 200.430

In order to ensure accurate record keeping of hours charged to salaries and wages, the time keeping software has been restricted to prevent education hours and standard hours to duplicate the hours charged to salaries and wages. Time-sheet signoff by supervisors require a review of education hours ...

In order to ensure accurate record keeping of hours charged to salaries and wages, the time keeping software has been restricted to prevent education hours and standard hours to duplicate the hours charged to salaries and wages. Time-sheet signoff by supervisors require a review of education hours to ensure hours are properly recorded. Person(s) Responsible: Payroll Administrator/Director of Finance Timing for Implementation: Effective December 1, 2023

View Audit 302054

Finding 391588 (2023-001)

Material Weakness 2023

Mono County Office of Education

CA

Questioned Costs Special Tests & Provisions Eligibility

April 1, 2024 Finding Number 50000 (2023-001) Noncompliance and Internal Control over Federal Compliance Federal Program – Child Care and Development Fund Cluster – Assistance Listing 93.575 and 93.576, Federal Alternative Payment Corrective Action Plan: Anticipated Completion Date April 30, 2024...

April 1, 2024 Finding Number 50000 (2023-001) Noncompliance and Internal Control over Federal Compliance Federal Program – Child Care and Development Fund Cluster – Assistance Listing 93.575 and 93.576, Federal Alternative Payment Corrective Action Plan: Anticipated Completion Date April 30, 2024 Prior to Mono County Office of Education (MCOE) taking over this program, another agency was responsible for the original eligibility determinations and special tests and provisions, including the files selected for this audit. After discussion about the audit findings, MCOE investigated further, and it was noted that the staff at the time were not following the procedures and forms that were in place. Items were either not completed or filled out correctly in many instances. Since this discovery, MCOE has developed a corrective action plan as follows to adhere to the program’s requirements: • MCOE will ensure that existing and new staff are trained to adhere to the policies and procedures for the program. • MCOE will be conducting annual reviews of all service providers and children served to ensure MCOE is maintaining the required documents on file. • MCOE has developed a double-check procedure to ensure that staff is keeping the required documentation on file for both providers and children served moving forward. I, Jennifer Weston, CBO, will be responsible for the implementation and monitoring of the corrective action plan. Sincerely, Jennifer Weston Chief Business Officer Mono County Office of Education

View Audit 302045 Questioned Costs: $1

Finding 391587 (2023-012)

Significant Deficiency 2023

The City of New York

NY

Equipment & Real Property Management § 200.313

Finding No. 2023-012 Department(s): New York City Fire Department Program(s): Assistance Listing Number 97.056, Port Security Grant Program Corrective Action(s): The department has established a very comprehensive compliance and operating standards program to monitor the administration of grants a...

Finding No. 2023-012 Department(s): New York City Fire Department Program(s): Assistance Listing Number 97.056, Port Security Grant Program Corrective Action(s): The department has established a very comprehensive compliance and operating standards program to monitor the administration of grants and federal awards, and to ensure compliance with applicable state and federal statutes, regulations, requirements and guidelines. Based on the results of over two dozen audits conducted over several years by various external oversight agencies, the department believes that the appropriate controls are already in place and will reiterate as part of our grants and federal awards compliance training curriculum. Anticipated Completion Date: July 31, 2024 Person(s) Responsible for Implementation: Domenick Loccisano, Executive Director Domenick.Loccisano@fdny.nyc.gov

View Audit 302042

Finding 391586 (2023-011)

None 2023

The City of New York

NY

Equipment & Real Property Management Internal Control / Segregation of Duties § 200.313

Finding No. 2023-011 Department(s): New York City Police Department Program(s): Assistance Listing Number 97.056, Port Security Grant Program Corrective Action(s): While the one (1) piece of equipment that was identified as “active equipment” was in fact disposed of prior to the most recent invent...

Finding No. 2023-011 Department(s): New York City Police Department Program(s): Assistance Listing Number 97.056, Port Security Grant Program Corrective Action(s): While the one (1) piece of equipment that was identified as “active equipment” was in fact disposed of prior to the most recent inventory count, the equipment was not listed as disposed of due to the user (project manager) not completing the final step of the entry. Corrective Action(s): NYPD Grants Unit will schedule one-on-one virtual training with all end users of GTS providing a step-by-step approach on inputting and updating assets in GTS. Upon completion of this training all project managers should be able to successfully complete transactions in GTS maintaining accurate and up to date inventory records from the first (new) entry to the final entry (disposal). These one-on-one sessions will be scheduled and coordinated based on the availability of both individuals (users and trainers) over the course of the next six months. In addition, the NYPD has requested a programming update (to the developer of GTS) which would allow the system to prevent the user from exiting the screen/entry without completing all required fields by providing a prompt feature. Anticipated Completion Date: September 2024 and ongoing Person(s) Responsible for Implementation: Anthony Danna, Deputy Director, NYPD Grants Unit Anthony.Danna@nypd.org (718) 610-8691

View Audit 302042

Finding 391584 (2023-007)

Significant Deficiency 2023

The City of New York

NY

Eligibility Internal Control / Segregation of Duties Student Financial Aid § 200.303

Finding No. 2023-007 Department(s): New York City Administration for Children’s Services Program(s): Assistance Listing Number 93.658, Foster Care – Title IV - E Corrective Action(s): • ACS will review all outstanding non-finalized Redetermination packages and re-request outstanding Court Order...

Finding No. 2023-007 Department(s): New York City Administration for Children’s Services Program(s): Assistance Listing Number 93.658, Foster Care – Title IV - E Corrective Action(s): • ACS will review all outstanding non-finalized Redetermination packages and re-request outstanding Court Orders. • Moving forward, if the hard copy Court Order has not been received by ACS within 90 days of the Permanency Hearing, ACS will request a court transcript of the Permanency Hearing. • ACS will finalize IV-E Redetermination packages if a Reasonable Effort determination finding has not been conferred within four months of the request for court action. • ACS will work with the Office of Court Administration to address challenges in timely completion of hearings and receipt of Court Orders. Anticipated Completion Date: September 2024 Person(s) Responsible for Implementation: Andrew Martin, Executive Director, Central Eligibility Office (212)-341-2816

View Audit 302042

Finding 391582 (2023-013)

Material Weakness 2023

The City of New York

NY

Questioned Costs Internal Control / Segregation of Duties Eligibility § 200.303

Finding No. 2023-013 Department(s): New York City Administration for Children’s Services and New York City Human Resources Administration Program(s): Assistance Listing Number 93.575, Child Care and Development Block Grant Corrective Action(s): ACS: ACS will work with other agencies to promote co...

Finding No. 2023-013 Department(s): New York City Administration for Children’s Services and New York City Human Resources Administration Program(s): Assistance Listing Number 93.575, Child Care and Development Block Grant Corrective Action(s): ACS: ACS will work with other agencies to promote compliance and internal controls going forward. HRA: In response to the findings, HRA made the following training requests to address the specific findings identified in this audit: 1. Training ID 2344 - Childcare liaisons and Childcare Review Team (CCRT) require training for the appropriate documentation necessary for the approval and provision of childcare. Audit findings confirmed that the staff charged with approval and authorizing childcare will take refresher training about the appropriate documentation requirements (i.e., CS-274w, LDSS 4699, LDSS 4700, etc.). The training will emphasize the requirement that any approved childcare must have support underlying employment/education documentation to justify the provision of the childcare. Childcare is a supportive service, so any childcare must have employment/engagement/education as a condition precedent. 2. Training ID 2343 - The training will include information about the client's employment, rate of pay, frequency of pay, and getting the appropriate documentation into the case records. Audits confirmed that 1) when the agency budgeted income and approved supportive services (i.e., childcare), the record did not have supporting income and employment related documents; 2) training will include the process for budgeting the earned income and applied any earned income disregards. Anticipated Completion Date: April 2024 and ongoing Person(s) Responsible for Implementation: ACS: Rahel Getachew, Associate Commissioner (212)-676-8818. HRA: Ramon E. Flores, Deputy Commissioner, Family Independence Administration (FIA) floresra@hra.nyc.gov

View Audit 302042 Questioned Costs: $1

Finding 391579 (2023-008)

Significant Deficiency 2023

The City of New York

NY

Internal Control / Segregation of Duties Reporting Significant Deficiency § 200.303

Finding No. 2023-008 Department(s): New York City Department of Health and Mental Hygiene Program(s): Assistance Listing Number 93.323, Epidemiology and Laboratory Capacity for Infectious Diseases (ELC) Corrective Action(s): DOHMH agrees with the recommendation that “DOHMH strengthen its intern...

Finding No. 2023-008 Department(s): New York City Department of Health and Mental Hygiene Program(s): Assistance Listing Number 93.323, Epidemiology and Laboratory Capacity for Infectious Diseases (ELC) Corrective Action(s): DOHMH agrees with the recommendation that “DOHMH strengthen its internal controls over the reporting process to include documented review and approval of all financial and special performance reports prior to submission within the required timeframe.” DOHMH Finance will ensure sufficient time to meet and discuss the status of spending and plans for remaining balance before the end of the award period. For example, such meeting will occur at least a month before the end of the award period. DOHMH Finance will ensure sufficient time for review and approval process of the FFR and submit within the required timeframe. For example, send annual FFR for program review at least 2 weeks before the report deadline. Approval deadline date will be added to the approval email and followed up on a consistent basis. The Division of Disease Control will document review of ELC-related reports prior to submission. Anticipated Completion Date: Effective Immediately; 3/20/2024 Person(s) Responsible for Implementation: Anthony Faciane, Assistant Commissioner, afaciane@health.nyc.gov Wai ting Yu, Assistant Commissioner, wyu4@health.nyc.gov Jennifer Carmona, Senior Director, jcarmona@health.nyc.gov Yuming Li, Director, yli@health.nyc.gov Xiu mei Mai, Director, xmai@health.nyc.gov Jenny Tejada, Director, jtejada@health.nyc.gov James Chan, Assistant Director, jchan6@health.nyc.gov Inna Dubrovenska, Assistant Director, idubrovenska@health.nyc.gov Yulia Gudzinskiy, Grants Manager, ygudzinskiy@health.nyc.gov

View Audit 302042

Finding 391574 (2023-010)

Significant Deficiency 2023

The City of New York

NY

Subrecipient Monitoring Reporting Significant Deficiency § 200.332 § 200.501 § 200.512

Finding No. 2023-010 Department(s): New York City Department for the Aging Program(s): Assistance Listing Number 93.044, 93.045 & 93.053, Aging Cluster Corrective Action(s): To ensure New York City Aging follows 2 CFR 200.332, we are updating our current process and procedures on how to track and...

Finding No. 2023-010 Department(s): New York City Department for the Aging Program(s): Assistance Listing Number 93.044, 93.045 & 93.053, Aging Cluster Corrective Action(s): To ensure New York City Aging follows 2 CFR 200.332, we are updating our current process and procedures on how to track and inform providers of when the Single Audit is due, when extension for the Single Audit is granted and when the submission is due. We will be sending out this communication to our providers. We will also follow-up with providers three months prior to the audit being due and three months prior to the audit being due for those who were granted extensions. Anticipated Completion Date: April 12, 2024 and ongoing Person(s) Responsible for Implementation: Jose Mercado, Chief Financial Officer jmercado@aging.nyc.gov (212) 602-4471

View Audit 302042

Finding 391570 (2023-001)

None 2023

The City of New York

NY

Reporting

Finding No. 2023-001 Department(s): New York City Department of Education Program(s): Assistance Listing Numbers: 84.010, Title I Grants to Local Educational Agencies 84.287, Twenty-First Century Community Learning Center 84.365, English Language Acquisition Grants 84.367, Supporting Effective I...

Finding No. 2023-001 Department(s): New York City Department of Education Program(s): Assistance Listing Numbers: 84.010, Title I Grants to Local Educational Agencies 84.287, Twenty-First Century Community Learning Center 84.365, English Language Acquisition Grants 84.367, Supporting Effective Instruction State Grant Corrective Action(s): The DOE continues to recognize the importance of fiscal reporting requirements and has developed and maintains processes and procedures to monitor grant award programs with respect to the timely submission of Final Expenditure Reports (“FS-10F”). In addition to the established measures taken in prior years, for FY21 and FY22, a new report listing encumbrances open in excess of 29 days was developed by the Division of Financial Operations (“DFO”), System Development and Support, in conjunction with the Office of Revenue Operations (“ORO”) and contains separate tabs reflecting whether a good or service has been received, partially received, certified or received in full. This report has been placed on the Cognos menu of each of Field Support Centers to assist in identifying bottlenecks and obstacles that need to be addressed. We had hoped that as the program staff become familiar with this report that it would serve as a tool for addressing open items. Unfortunately, the large staff turnover hampered this effort. However, we are continuing these efforts to ensure new staff members are properly trained on utilizing these reports. The DOE reviews programs/schools throughout the award and re-enforces established reporting guidelines to facilitate timely submission of expenditure reports. The DOE continues to closely track grant expenditures throughout the grant period, monitoring programs/schools to facilitate accurate and complete records, as well as work with appropriate State Education officials to facilitate the completion and submission of financial expenditure reports. The DOE has incorporated applicable deadlines related to encumbrances and payment certifications into the Fiscal 2024 close calendar in an effort to continue to reinforce the need for the timely payment and takedown of open encumbrances. This message is regularly stressed at close meetings and through e-mails to applicable parties throughout the course of the close process. With respect to the audit finding, the DOE will reemphasize the importance of closing applicable transactions to facilitate timely submission of FS-10F reports. Anticipated Completion Date: Ongoing Person(s) Responsible for Implementation Barry Elkayam, Executive Director, Office of Revenue Operations (718) 935-5050

View Audit 302042

Finding 391569 (2023-009)

Significant Deficiency 2023

The City of New York

NY

Equipment & Real Property Management Internal Control / Segregation of Duties § 200.303 § 200.313

Finding No. 2023-009 Department(s): New York City Department of Investigation Program(s): Assistance Listing Number 16.922, Equitable Sharing Program Corrective Action(s): Based on the recommendations outlined in the audit report, we have developed the following corrective action plan to address...

Finding No. 2023-009 Department(s): New York City Department of Investigation Program(s): Assistance Listing Number 16.922, Equitable Sharing Program Corrective Action(s): Based on the recommendations outlined in the audit report, we have developed the following corrective action plan to address the deficiencies and improve compliance with equipment and real property management requirements. • Strengthen Controls over the Inventory Process: We developed and implemented additional controls over the inventory process to ensure that equipment dispositions are updated in the equipment records, inventories performed are reconciled back to equipment records, and biennial inventory counts are consistently performed over all equipment within the required timeframe. • Training for Personnel: We provide training to all personnel involved in the equipment and real property management process, including property officers and program managers, to ensure they are aware of the new controls and standard operating procedure, and understand their roles and responsibilities related to compliance requirements. • Continuous Monitoring: We developed a continuous monitoring program to ensure that the new controls and procedures are being followed, and to identify any areas for improvement. • We developed Equitable Sharing Program Standard Operating Procedures (“SOPs”) for the New York City Department of Investigation (“DOI” or “Department”) apply to the Department’s use of U.S. Department of Justice (“DOJ”) Equitable Sharing Program (“Program”) funds. These SOPs are intended to complement, not replace, the required guidance found in the “Guide to Equitable Sharing for State, Local, and Tribal Law Enforcement Agencies” (July 2018) (“Guide”) and Equitable Sharing Wires (“Wires”), as well as any relevant Department and City policies and procedures. The agency is actively pursuing a centralized inventory management system to improve the effectiveness of inventory management. These corrective actions will help to ensure that federally funded equipment is accurately recorded on inventory records and that inventory is not misplaced, misappropriated, or otherwise disposed of outside of the requirements of federal guidelines. We appreciate the opportunity to address the audit findings, and we are committed to implementing these corrective actions. Anticipated Completion Date: March 31, 2025 Person(s) Responsible for Implementation: Caspar Barrow, Executive Director of Finance/CFO CBarrow@doi.nyc.gov (212)-825-0666 Orane Gordon, Internal Auditor OGordon@doi.nyc.gov (212)-825-0123

View Audit 302042

Finding 391568 (2023-016)

Material Weakness 2023

The City of New York

NY

HUD Housing Programs Eligibility Material Weakness § 200.303

Finding No. 2023-016 Department(s): New York City Housing Preservation & Development Program(s): Assistance Listing Number 14.871, Housing Voucher Cluster: Section 8 Housing Choice Vouchers Corrective Action(s): During the pandemic, HPD adopted HUD CARES Act waivers, intended to minimize health ...

Finding No. 2023-016 Department(s): New York City Housing Preservation & Development Program(s): Assistance Listing Number 14.871, Housing Voucher Cluster: Section 8 Housing Choice Vouchers Corrective Action(s): During the pandemic, HPD adopted HUD CARES Act waivers, intended to minimize health and safety risks to applicants, participants, owners and staff, and which included the temporary suspension of adverse actions. Although HPD continued to request recertification packages during the period of the waivers until today, from February 2020 through December 2021, HPD did not penalize families who did not submit complete recertification packages. Additionally, HPD is among the City agencies that experienced a staff retention crisis, with attrition rates among its Rental Subsidy Program administrative teams swelling from 12 percent in 2020 to 27 percent in 2022. During the audit period, HPD was experiencing its highest vacancy rate. This meant standard recertifications were delayed because participants did not respond to recertification packages they were asked to complete, HPD did not have the capacity to revoke subsidies for those who did not comply, and the agency had significant backlog as a result of staff vacancies. Though HPD’s vacancy rate improved, it takes significant time to train and prepare staff to do the work. Finally, even though HPD’s COVID-era policies involving adverse action have ceased and normal processes are now in effect, due process requires intensive tracking and follow up to ideally have participants comply with requirements but if necessary to terminate assistance for those who do not comply. Therefore, there will be a significant lag between the re-implementation of HPD’s policy to take enforcement actions when recertification packages are not completed or missing and HPD’s actually terminating assistance. Corrective Action(s): 1. Build on existing systems to more closely track recertifications that are mailed and not returned. 2. Develop more robust digital operations that were started during the pandemic leading to reporting capabilities that will help with tracking overdue recertifications. 3. Work more closely with Community Based Organizations that can assist participants complete and return recertification package. 4. Continue close coordination to implement the Housing Access and Stability staffing plan and identify priority hires to onboard critically needed staff timely. 5. Invest in a training team to meet the training needs of new staff. Anticipated Completion Date: April 2025 Person(s) Responsible for Implementation: Dinsiri Fikru, Assistant Commissioner, Division of Program Policy and Innovation, Office of Housing Access and Stability FIKRUD@hpd.nyc.gov

View Audit 302042

Corrective Action Plans

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