Corrective Action Plans

Finding 375392 (2023-002)

Material Weakness 2023

IN

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

Finding 2023-002 – Education Stabilization Fund - Activities Allowed or Unallowed, Allowable Costs- Cost Principles Contact Person Responsible for Corrective Action: Peggy Huesman Contact Phone Number: 765-478-5375 Views of Responsible Official: We concur with the finding. Description of Corre...

Finding 2023-002 – Education Stabilization Fund - Activities Allowed or Unallowed, Allowable Costs- Cost Principles Contact Person Responsible for Corrective Action: Peggy Huesman Contact Phone Number: 765-478-5375 Views of Responsible Official: We concur with the finding. Description of Corrective Action Plan: The Director of Titles and Grants or the Human Resource Specialist (payroll) will work with the Building Administrator’s to see that each Time and Effort sheet for every employee whose salary is paid from a Federal Grant has a signature. Anticipated Completion Date: April 1, 2024

View Audit 294472

Finding 375391 (2023-001)

Material Weakness 2023

Central Valley Central School District

NY

Questioned Costs Procurement, Suspension & Debarment

We were under the false notion that purchases made through the Commonwealth of Pennsylvania’s cooperative purchasing program (COSTAR) satisfied compliance of quote/bid requirements of federal purchases. We will follow our policy for federal purchases. When federal money is utilized, we will docume...

We were under the false notion that purchases made through the Commonwealth of Pennsylvania’s cooperative purchasing program (COSTAR) satisfied compliance of quote/bid requirements of federal purchases. We will follow our policy for federal purchases. When federal money is utilized, we will document three vendor quote/bid, rationale of procurement, selection of contractor, and basis of price. The district will continue to document sole source noncompetitive procurement exceptions. The District will implement the above procedure immediately.

View Audit 294465 Questioned Costs: $1

Finding 375389 (2023-001)

Significant Deficiency 2023

Hermitage School District

AR

Internal Control / Segregation of Duties Special Tests & Provisions Matching / Level of Effort / Earmarking

Corrective Action Plan - LaDonna Spain will contact the Arkansas Department of Education (ADE), Division of Elementary and Secondary Education (DESE) for guidance as a new employee to the district regarding this previous year matter, seek to clarify newly implemented controls or program expenditures...

Corrective Action Plan - LaDonna Spain will contact the Arkansas Department of Education (ADE), Division of Elementary and Secondary Education (DESE) for guidance as a new employee to the district regarding this previous year matter, seek to clarify newly implemented controls or program expenditures, and implement program controls and DESE recommended controls regarding expenditures from the Education Stabilization Fund.

View Audit 294457

Finding 375386 (2023-001)

Material Weakness 2023

Sunman-Dearborn Community School Corporation

IN

Matching / Level of Effort / Earmarking Special Tests & Provisions Subrecipient Monitoring § 200.303

CORRECTIVE ACTION PLAN OF CURRENT AUDIT FINDINGS June 30, 2023 Finding 2023-001 Information on the federal program: Subject: Education Stabilization Fund – Special Tests and Provisions - Wage Rate Requirements Federal Agency: Department of Education Federal Program: COVID-19 - Education Stabilizatio...

CORRECTIVE ACTION PLAN OF CURRENT AUDIT FINDINGS June 30, 2023 Finding 2023-001 Information on the federal program: Subject: Education Stabilization Fund – Special Tests and Provisions - Wage Rate Requirements Federal Agency: Department of Education Federal Program: COVID-19 - Education Stabilization Fund Assistance Listing Number: 84.425D, 84.425U Pass-Through Entity: Indiana Department of Education Compliance Requirement: Special Tests and Provisions - Wage Rate Requirements Audit Findings: Material Weakness, Noncompliance Condition: An effective internal control system was not in place at the School Corporation in order to ensure compliance with requirements related to the grant agreement and the Special Tests and Provisions – Wage Rate Requirements compliance requirements. The School Corporation did not include Davis Bacon wage rate requirements in its contract with vendor which includes labor. The School Corporation did not obtain the weekly payroll reports certifications from a construction company and its subcontractors for a building project. Context: The School Corporation did not have an internal control designed to collect the weekly payroll reports certifications from a construction company and its subcontractors, as applicable, for building projects which included playground equipment. As of June 30, 2023, $75,190 was disbursed related to this capital project. The construction payments represented approximately 2.7% of the Education Stabilization Fund expenditures for the audit period. Therefore, no review was performed to ensure that pay rates complied with the federal wage rate requirements. The construction contracts did not include clauses for federal wage rate requirements. Views of Responsible Officials and Corrective Action Plan: Management agrees with the finding. For any contracts related to projects with a cost of greater than $2,000 for the construction, alternation, or repair of public buildings or public works and which are federally funded, management will include a Davis Bacon wage rate requirement clause in the contract or request the vendor to sign a certificate or contract amendment affirming the contractor will comply with federal wage requirements. Management will designate a project manager to oversee the federally funded project and ensure the collection of the required weekly payroll wage report and document their review verifying prevailing wages are being paid to contractors. Responsible Party and Timeline for Completion: Mary Ann Baines, Director of Financial Operations/Treasurer, will oversee the corrective action plan which will be implemented immediately and steps will be taken to collect on wage reports for work performed since July 1, 2023.

View Audit 294451

Finding 374739 (2023-001)

Significant Deficiency 2023

Oregon Health & Science University

OR

Equipment & Real Property Management Matching / Level of Effort / Earmarking § 200.303 § 200.313

Corrective Action Planned OHSU agreed the equipment and inventory process can be improved upon and is currently doing so with a several-part strategy: 1. Formally communicating the importance and commitment of safeguarding capital assets. 2. Launching a new web-based application for next biennium in...

Corrective Action Planned OHSU agreed the equipment and inventory process can be improved upon and is currently doing so with a several-part strategy: 1. Formally communicating the importance and commitment of safeguarding capital assets. 2. Launching a new web-based application for next biennium inventory. 3. Introducing reporting tools to help custodians of assets and senior leaders monitor inventory completion rates and the efficiency of certain processes, such as asset disposal. 4. Reviewing the current assets to identify any that may need to be written off. Completion Dates 1. 2/12/2024 2. 2/12/2024 3. 2/12/2024 4. Expected by end of FY24

View Audit 294440

Finding 374738 (2023-003)

Significant Deficiency 2023

Saunders County

NE

Subrecipient Monitoring Allowable Costs / Cost Principles Reporting § 200.303

The County Attorney is writing up a policy.

View Audit 294434

Finding 374737 (2023-002)

Significant Deficiency 2023

Saunders County

NE

Procurement, Suspension & Debarment § 200.214 § 200.303

The County Attorney is writing up a policy.

View Audit 294434

Finding 374736 (2023-001)

Material Weakness 2023

Hanac, Inc. and Affiliates

NY

Eligibility HUD Housing Programs Matching / Level of Effort / Earmarking

CORRECTIVE ACTION PLAN YEAR ENDED JUNE 30, 2023 ...

CORRECTIVE ACTION PLAN YEAR ENDED JUNE 30, 2023 HANAC, Inc. and Affiliates (HANAC) respectfully submits the following corrective action plan for the year ended June 30, 2023. CohnReznick LLP 1301 Avenue of the Americas New York, NY 10019 Audit Period: June 30, 2023 The finding from the June 30, 2023 consolidated and combined schedule of findings and questioned costs is discussed below. The finding is numbered consistently with the numbers assigned in the schedule. FINDINGS – FINANCIAL STATEMENT AUDIT None reported. FINDINGS – FEDERAL AWARD PROGRAMS AUDITS Material Weakness FINDING 2023-001 Eligibility U.S. Department of Housing and Urban Development 14.157 Supportive Housing for the Elderly Section 202 Loan Condition: In connection with the audit, it was noted that of the eight lease files tested four files did not have timely recertification of tenants and Enterprise Income Verification system documentation was performed later than the required recertification date. Additionally, one file did not contain the signed application or the background check. Recommendation: Management should establish procedures and monitor compliance with those procedures to insure that tenant security deposits are correctly recorded, tenant eligibility is correctly determined and that tenant lease files are properly maintained in accordance with the requirements of HUD Handbook 4350.3, Occupancy Requirements of Subsidized Multifamily Housing Programs. Action Taken: Management agrees with recommendation and has begun to implement the following: - A checklist form will be completed for every certification and signed off once file is approved. - An AR form will be created for the move in, transfer and move out process which is to be attached with proof of payment. Once completed it is to be sent to senior staff for review. Under this new management, we already have set in place policies and procedures under the governance of HUD and the tenant selection plan to ensure compliance and due diligence is taking place. Any new staff will be HUD trained. - The file setup format and recertification updates will be monitored on a monthly basis. - EIV are being run according to the frequency provisions related to the type of reports we are annually required to complete as per HUD. Annual inspections are being schedule as per Annual Recertifications are being processed. - Bi-weekly meetings will be in place to discuss the results collected with a tracking log on the progress of the project. - Trainings will be scheduled to keep on top of HUD updates/compliance procedures; Yardi software trainings; and in-house trainings covering compliance with the files and Yardi 50059 module. Expected completion date: January 2024 If any cognizant or oversight agency has questions regarding this plan, please call Lola Maroulis, Chief Financial Officer at 212-840-8005, extension 111. Sincerely yours, Lola Maroulis, Chief Financial Officer

View Audit 294429

Finding 374729 (2023-002)

Significant Deficiency 2023

Eagle Academy Public Charter School

DC

Questioned Costs Allowable Costs / Cost Principles § 200.430

Eagle Academy PCS agrees with the findings and has made the necessary corrections to address the payroll allocation. The school has hired a new Human Resources Manager, and the school also contracted with a third-party vendor that will be responsible for managing all grant reporting, applications, a...

Eagle Academy PCS agrees with the findings and has made the necessary corrections to address the payroll allocation. The school has hired a new Human Resources Manager, and the school also contracted with a third-party vendor that will be responsible for managing all grant reporting, applications, amendments, and reconciliations. This will strengthen the school year-end closing process and tighten internal controls in the human resources department. Management has also added an additional layer to the time & effort verification which will ensure that all reimbursement requests submitted will be based on actual expenses incurred and not estimates. This will eliminate the unpaid leave of the findings identified in the audit. This will strengthen internal controls and enhance Eagle Academy PCS reporting and grant tracking system.

View Audit 294423 Questioned Costs: $1

Finding 374719 (2023-001)

Significant Deficiency 2023

Eagle Academy Public Charter School

DC

Reporting Internal Control / Segregation of Duties § 200.510

Prior to the year-end of June 30, 2023, Eagle Academy PCS had several federal grants that were approved and open for drawdown in May 2023. These were all related to grants budget to be reimbursed to the school during the 2022-2023 school year. Due to the late approval of the grants, the school and m...

Prior to the year-end of June 30, 2023, Eagle Academy PCS had several federal grants that were approved and open for drawdown in May 2023. These were all related to grants budget to be reimbursed to the school during the 2022-2023 school year. Due to the late approval of the grants, the school and management didn’t have enough time to submit reimbursement requests and submit amendments. The amendments were submitted during the SB&Company’s audit preparation period. As a result, these amendments were all pending approval even though the expenditures already incurred in FY2023. Management has contracted with a third-party vendor that will be responsible for managing all grant reporting, applications, amendments, and reconciliations. This will strengthen the school year end closing process.

View Audit 294423

Finding 374718 (2023-001)

Significant Deficiency 2023

Westminster College

MO

Procurement, Suspension & Debarment Subrecipient Monitoring Allowable Costs / Cost Principles § 200.317 § 200.327

Finding Reference Number: 2023-001 Description of Finding: Written Procurement Policy (significant deficiency) Statement of Concurrence: Management concurs with the finding and had implemented a written procurement policy that complies with the requirements of the Uniform Guidance. Corrective Action...

Finding Reference Number: 2023-001 Description of Finding: Written Procurement Policy (significant deficiency) Statement of Concurrence: Management concurs with the finding and had implemented a written procurement policy that complies with the requirements of the Uniform Guidance. Corrective Action: Management has established a written procurement policy and implemented the documented procurement procedures as of August 13, 2022. Name of Contact Person: Steve Tyrell, Senior Vice President, CFO & COO, 518-366-1533, steve.tyrell@WCMO.edu Projected Completion Date: The College’s corrective action plan is completed and in effect at this time.

View Audit 294421

Finding 374715 (2023-003)

Material Weakness 2023

Monroe Central School Corporation

IN

Internal Control / Segregation of Duties Allowable Costs / Cost Principles Material Weakness § 200.303

Finding 2023-003 – Education Stabilization Fund - Activities Allowed or Unallowed, Allowable Costs- Cost Principles Contact Person Responsible for Corrective Action: Jessica Cheesman Contact Phone Number: 765-468-6868 Views of Responsible Official: We concur with the finding. Description of Co...

Finding 2023-003 – Education Stabilization Fund - Activities Allowed or Unallowed, Allowable Costs- Cost Principles Contact Person Responsible for Corrective Action: Jessica Cheesman Contact Phone Number: 765-468-6868 Views of Responsible Official: We concur with the finding. Description of Corrective Action Plan: Superintendent will sign off on all vouchers going forward and all vocuhers from 07/01/2023 to 12/31/2023 Anticipated Completion Date: 04/30/2024

View Audit 294418

Finding 374714 (2023-002)

Significant Deficiency 2023

Colfax County, Nebraska

NE

Procurement, Suspension & Debarment § 200.214 § 200.303

Program: AL 21.027 – COVID-19 – Coronavirus State and Local Fiscal Recovery Funds – Suspension and Debarment Corrective Action Planned: A procedure implemented to print the page of Sam.gov website. Anticipated Completion Date: Immediate Responsible Party: Jim Mejstrik, Colfax County Board Chairma...

Program: AL 21.027 – COVID-19 – Coronavirus State and Local Fiscal Recovery Funds – Suspension and Debarment Corrective Action Planned: A procedure implemented to print the page of Sam.gov website. Anticipated Completion Date: Immediate Responsible Party: Jim Mejstrik, Colfax County Board Chairman

View Audit 294392

Finding 374689 (2023-004)

Material Weakness 2023

Shelbyville Central Schools

IN

Matching / Level of Effort / Earmarking Special Tests & Provisions Subrecipient Monitoring § 200.303

Finding 2023-004 – Special Tests and Provisions – Wage Rate Requirement Contact Person Responsible for Corrective Action: Michelle Babcock Contact Phone Number: 317-392-2505 Views of Responsible Official: We concur with the finding. Description of Corrective Action Plan: We now require all fe...

Finding 2023-004 – Special Tests and Provisions – Wage Rate Requirement Contact Person Responsible for Corrective Action: Michelle Babcock Contact Phone Number: 317-392-2505 Views of Responsible Official: We concur with the finding. Description of Corrective Action Plan: We now require all federal contracts to provide the proper language for Davis Bacon wages. In addition, we require the payroll reports to ensure that the pay rates comply with the federal wage rate requirements. Anticipated Completion Date: July 2023

View Audit 294371

Finding 374685 (2023-003)

Significant Deficiency 2023

Shelbyville Central Schools

IN

Procurement, Suspension & Debarment School Nutrition Programs § 200.303 § 200.318 § 200.320

Finding 2023-003 – Procurement and Suspension and Debarment Contact Person Responsible for Corrective Action: Michelle Babcock Contact Phone Number: 317-392-2505 Views of Responsible Official: We concur with the finding. Description of Corrective Action Plan: We have already established an i...

Finding 2023-003 – Procurement and Suspension and Debarment Contact Person Responsible for Corrective Action: Michelle Babcock Contact Phone Number: 317-392-2505 Views of Responsible Official: We concur with the finding. Description of Corrective Action Plan: We have already established an improved internal controls procedures for procurement. We have established a checklist process to ensure the Suspension and Debarment Check has been completed for all federal purchases over the threshold. Anticipated Completion Date: October 2022

View Audit 294371

Finding 374681 (2023-002)

Significant Deficiency 2023

Shelbyville Central Schools

IN

School Nutrition Programs Internal Control / Segregation of Duties Allowable Costs / Cost Principles § 200.303

Finding 2023-002 – Child Nutrition Cluster - Activities Allowed or Unallowed, Allowable Costs/Cost Principles Contact Person Responsible for Corrective Action: Michelle Babcock Contact Phone Number: 317-392-2505 Views of Responsible Official: We concur with the finding. Description of Correct...

Finding 2023-002 – Child Nutrition Cluster - Activities Allowed or Unallowed, Allowable Costs/Cost Principles Contact Person Responsible for Corrective Action: Michelle Babcock Contact Phone Number: 317-392-2505 Views of Responsible Official: We concur with the finding. Description of Corrective Action Plan: We have established an improved internal controls procedures with internal purchases. The items requested will be submitted in writing and when the items are delivered to the perspective department or building, a signature will be obtained to confirm the items were delivered internally before the funds will be transferred to/from the respective accounts. Anticipated Completion Date: January 2024

View Audit 294371

Finding 374680 (2023-001)

Significant Deficiency 2023

Community Child Care Solutions, INC

NJ

Questioned Costs Eligibility Allowable Costs / Cost Principles

SIGNIFICANT DEFICIANCY 2023-001 Condition: During our eligibility testing, one of 40 participant files reviewed showed that one ineligible participant received child care services for a period of time. Recommendation: We recommend the Organization enhance their training process with respect to doc...

SIGNIFICANT DEFICIANCY 2023-001 Condition: During our eligibility testing, one of 40 participant files reviewed showed that one ineligible participant received child care services for a period of time. Recommendation: We recommend the Organization enhance their training process with respect to documentation review to ensure an adequate review process is in place to prevent errors with respect to participant eligibilty. Views of responsible officals: CCCS has already alerted the DFD of the exception and requested a recoupment of funds. We will re-train our staff to ensure the existing procedures and documentation reviews are correctly followed. Name of the contact person for corrective action: Mary Jane DiPaolo, Executive Director Planned completion date for corrective action plan: September 30, 2024

View Audit 294370 Questioned Costs: $1

Finding 374679 (2023-002)

None 2023

Elaine Ellis Center of Health Inc.

DC

Cash Management Reporting

The Center has developed a reporting system that is linked to the Payment Management System (PMS). This additional layer of scrutiny is intended to serve as a check against human error. When drawdowns are executed, they will be recorded in the system once the drawdown hits the bank account. The amou...

The Center has developed a reporting system that is linked to the Payment Management System (PMS). This additional layer of scrutiny is intended to serve as a check against human error. When drawdowns are executed, they will be recorded in the system once the drawdown hits the bank account. The amount recorded in this system will be an exact reflection of what is on the PMS report. The alignment of these two reporting systems will guarantee the accuracy of the center’s UDS reporting

View Audit 294369

Finding 374678 (2023-001)

Significant Deficiency 2023

Elaine Ellis Center of Health Inc.

DC

The Center has secured the services of a consultant to assist with reconciliation and analysis on an ongoing basis. This process will provide the necessary checks and balances to the accounting department such that errors are identified and addressed in a timely manner. The implementation of this pr...

The Center has secured the services of a consultant to assist with reconciliation and analysis on an ongoing basis. This process will provide the necessary checks and balances to the accounting department such that errors are identified and addressed in a timely manner. The implementation of this process will ensure that the Center’s accounting is adequately supported and that all month end reconciliations, closings and analysis are complete and accurate

View Audit 294369

Finding 374673 (2023-002)

None 2023

Harrington Family Health Center

ME

Procurement, Suspension & Debarment Reporting § 200.512

View of Organization - Harrington Family Health Center concurs with this finding. Planned Corrective Action - The Center will purchase new software and implement regular reconciliation procedures for accounts receivable to insure the audit will not be delayed. Anticipated Completion Date - April 1,...

View of Organization - Harrington Family Health Center concurs with this finding. Planned Corrective Action - The Center will purchase new software and implement regular reconciliation procedures for accounts receivable to insure the audit will not be delayed. Anticipated Completion Date - April 1, 2024. Responsible Contact Person - Jessica Ackley, Chief Financial Office (207) 483-4502

View Audit 294361

Finding 374671 (2023-003)

Material Weakness 2023

Lyons Elementary School District 103

IL

School Nutrition Programs Eligibility Internal Control / Segregation of Duties

Condition: The District did not select and verify the required sample of approved free and reduced price applications by the required deadline. Plan: The district will have a calendar reminder to begin auditing applications on Oct. 1 and complete the process with submission to ISBE by December 15. A...

Condition: The District did not select and verify the required sample of approved free and reduced price applications by the required deadline. Plan: The district will have a calendar reminder to begin auditing applications on Oct. 1 and complete the process with submission to ISBE by December 15. Anticipated Date of Completion: 12/31/2024 Name of Contact Person Yasmine Dada, Business Manager ________________________________________________

View Audit 294356

Finding 374668 (2023-001)

Significant Deficiency 2023

Bethany Presbyterian Manor

MI

Internal Control / Segregation of Duties HUD Housing Programs Reporting

Condition: There was a lack of timely reconciliation performed withdrawals by the Organization to ensure all from the replacement reserve account had proper HUD deposits were approval, all required monthly made, and HUD-approved loans were repaid timely. The Organization from HUD for a $30,848 loan ...

Condition: There was a lack of timely reconciliation performed withdrawals by the Organization to ensure all from the replacement reserve account had proper HUD deposits were approval, all required monthly made, and HUD-approved loans were repaid timely. The Organization from HUD for a $30,848 loan advance received approval to be repaid to the replacement reserve when the November voucher payment was received (November 18, 2022); however, the loan was not repaid until January 18, 2023 Planned Corrective Action: Management acknowledges the significant deficiency in internal control over compliance and has taken measures to improve internal acknowledges control over compliance. Management also that it did not repay the replacement reserve timely received, but with voucher funds subsequently it did repay the $30,848 advance to the replacement reserve account on January 18, 2023. Contact person responsible for corrective action: Bruce Blalock, Sr. VP of Finance and Obligated Group Operations Anticipated Completion Date: January 18, 2023

View Audit 294343

Finding 374666 (2023-001)

Significant Deficiency 2023

Peace Presbyterian Village Dba the Village of Peace Manor 044-Ee019

MI

Internal Control / Segregation of Duties HUD Housing Programs Reporting

Condition: During the year ended June 30, 2023, the Organization had 5 withdrawals from the replacement reserve totaling $150,316. Of these withdrawals, $71,998 was properly supported and $78,318 was withdrawn without proper HUD approval. The lack of timely reconciliations resulted in unauthorized a...

Condition: During the year ended June 30, 2023, the Organization had 5 withdrawals from the replacement reserve totaling $150,316. Of these withdrawals, $71,998 was properly supported and $78,318 was withdrawn without proper HUD approval. The lack of timely reconciliations resulted in unauthorized amounts transferred out of the replacement reserve and the funds were not returned to the replacement reserve account by June 30, 2023. Planned Corrective Action: Management acknowledges the significant deficiency in internal control over compliance since it did not obtain prior HUD approval for 3 withdrawals totaling $78,318 during the year ended June 30, 2023 and is implementing measures to improve this internal control over compliance. Management returned the $78,318 to the replacement reserve account in August 2023. Contact person responsible for corrective action: Bruce Blalock, Sr. VP of Finance and Obligated Group Operations Anticipated Completion Date: August 2, 2023

View Audit 294341

Finding 374664 (2023-001)

Significant Deficiency 2023

The Village of Oakman Manor

MI

Internal Control / Segregation of Duties HUD Housing Programs Reporting

Condition: There was a lack of timely reconciliation performed by the Organization to ensure all withdrawals from the replacement reserve account had proper HUD approval, all required monthly deposits were made, and HUD approved loans were repaid timely. The Organization received approval from HUD f...

Condition: There was a lack of timely reconciliation performed by the Organization to ensure all withdrawals from the replacement reserve account had proper HUD approval, all required monthly deposits were made, and HUD approved loans were repaid timely. The Organization received approval from HUD for a $27,743 loan advance to be repaid to the replacement reserve by January 31, 2023; however, the loan was not repaid until April 17, 2023. Planned Corrective Action: Management acknowledges the significant deficiency in internal control over compliance and has taken measures to improve internal control over compliance Management also acknowledges that it did not repay the replacement reserve timely with voucher funds subsequently received, but it did repay the $27,743 advance to the replacement reserve account on April 17, 2023 Contact person responsible for corrective action: Bruce Blalock, Sr. VP of Finance and Obligated Group Operations Anticipated Completion Date: April 17, 2023

View Audit 294338

Finding 374662 (2023-001)

Significant Deficiency 2023

Spring Meadows II- Village of Spring Meadows II 047-Ee047

MI

Internal Control / Segregation of Duties HUD Housing Programs Reporting

Condition: There was a lack of timely reconciliation performed by the Organization of the replacement reserve account activity. The Organization received approval in 2019 from HUD for a $22,427 loan advance to be repaid to the replacement reserve when the January 2019 voucher payment was received. O...

Condition: There was a lack of timely reconciliation performed by the Organization of the replacement reserve account activity. The Organization received approval in 2019 from HUD for a $22,427 loan advance to be repaid to the replacement reserve when the January 2019 voucher payment was received. Of this amount, $6,740 was received and deposited back into the replacement reserve in 2019. The remaining $15,687 was received by the Organization on February 6, 2023, however, this amount was not deposited back to the replacement reserve until after year end, on August 16, 2023. Planned Corrective Action: Management acknowledges the significant deficiency in internal control over compliance that resulted in the late deposit back into the replacement reserve account as required and has taken measures to improve internal control over compliance. Contact person responsible for corrective action: Bruce Blalock, Sr. VP of Finance and Obligated Group Operations Anticipated Completion Date: August 16, 2023

View Audit 294335

Corrective Action Plans

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