CORRECTIVE ACTION PLAN FOR FINDINGS REPORTED UNDER UNIFORM GUIDANCE City of Longview January 1, 2024, through December 31, 2024 This schedule presents the corrective action the City is planning to take for findings included in this report in accordance with Title 2 U.S. Code of Federal Regulations (...
CORRECTIVE ACTION PLAN FOR FINDINGS REPORTED UNDER UNIFORM GUIDANCE City of Longview January 1, 2024, through December 31, 2024 This schedule presents the corrective action the City is planning to take for findings included in this report in accordance with Title 2 U.S. Code of Federal Regulations (CFR) Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Finding ref number: 2024-002 Finding caption: The city did not have adequate internal controls and did not comply with federal subrecipient monitoring, underwriting and maximum per-unit subsidy requirements. Name, address, and telephone of City contact person: Lisa Wolff, Finance Director PO Box 128 Longview, WA 98632 (360) 442-5036 Corrective action the auditee plans to take in response to the finding: (If the auditee does not concur with the finding, the auditee must list the reasons for disagreement). Corrective Action Plan In response to the issues identified, the city has taken and is continuing to take the following steps: 1. Create a subrecipient monitoring schedule o The city plans to monitor two subrecipients by the end of the city’s 2025 HUD fiscal year. One subrecipient is scheduled to be monitored in October. 2. Provide new guidance to subrecipients o The city will provide new guidance through monitoring to subrecipients that includes: i. Ensuring that all checklists meet HQS standards. ii. Rental contracts are review by the city. iii. Income eligibility evaluations and revaluations are done properly. iv. Funding is spent properly. 3. New underwriting checklists, policies and procedures o The city will work to develop new underwriting policies and procedures that will ensure federal requirements are met. The city will use HUD-provided checklists with certifying signatures for underwriting and thoroughly document that all requirements were met. 4. Underwriting Approvals o All underwriting will be sent to the department director for review and approval. The approvals will include the maximum per-unit subsidy calculations. Status of Identified Errors • The city will perform two monitoring visits in 2025 to ensure subrecipient compliance with federal standards. The city will distribute new guidance during those monitoring visits. City staff members have received new underwriting training earlier this year to fully understand all requirements. Conclusion The turnover in City staff exposed gaps in training for several of these factors. The City is closing these gaps by developing monitoring policies, risk ratings, and performing monitoring this year. With the improvements for subrecipient monitoring and development of new policies and procedures for underwriting, the City will comply with HUD requirements. Anticipated date to complete the corrective action: No later than December 31, 2025