Corrective Action Plans

Finding 9643 (2023-002)

Material Weakness 2023

MI

Questioned Costs Special Tests & Provisions Material Weakness

2023-002 – Special Tests and Provisions – Wage Rate Requirements U.S. Department of Education – COVID-19 - Education Stabilization Fund (ALN 84.425D and 84.425U); Passed through the Michigan Department of Education; All project numbers. Auditor Description of Condition and Effect. While the contra...

2023-002 – Special Tests and Provisions – Wage Rate Requirements U.S. Department of Education – COVID-19 - Education Stabilization Fund (ALN 84.425D and 84.425U); Passed through the Michigan Department of Education; All project numbers. Auditor Description of Condition and Effect. While the contract contained the required Wage Rate Requirement provision, the District did not obtain the required certified payrolls for one out of the ten vendors selected for testing. The District did not follow federal requirements to obtain weekly certified payrolls. Auditor Recommendation. We recommend that the District reviews its policies to ensure certified payrolls are obtained whenever federal funds are used. Corrective Action. District officials will ensure that weekly certified payrolls are obtained when required. Responsible Person: Theresa Carrell, Chief Financial Officer Anticipated Completion Date: June 30, 2024

View Audit 13323 Questioned Costs: $1

Finding 9636 (2023-003)

Significant Deficiency 2023

Detroit Housing Commission

MI

HUD Housing Programs Eligibility Subrecipient Monitoring

Finding Number: 2023-003 Condition: Participant files selected for testing did not include complete information to support the participant's income to determine the level of benefits provided. Planned Corrective Action: The Housing Choice Voucher Program will work towards and maintain program compli...

Finding Number: 2023-003 Condition: Participant files selected for testing did not include complete information to support the participant's income to determine the level of benefits provided. Planned Corrective Action: The Housing Choice Voucher Program will work towards and maintain program compliance to ensure we are meeting all regulatory requirements. We will do this through staff hiring and restructuring. Ongoing in- house as well as Industry training to stay current and skilled on all program rules and updates as it pertains to the HCV Program with monthly and weekly reporting and monitoring. DHC understands the challenges outlined above and we have implemented measures to improve, redefine, address, and resolve all items according to HUD best practices. We will continue our ongoing efforts and have measurable goals with set dates and timelines. That will show marked improvement over the next 6-12 months in the following areas.  Reduction of Annual recertifications.  Increased utilization.  Increased PBV potential/new RFP.  PIC error corrective actions.  Increased landlord outreach/landlord Fairs.  Customer Service improvement/Call Center Staffing.  Continued industry training for all HCV Housing Specialist.  HCV Department RFP contract proposal. Contact person responsible for corrective action: Felicia Burris, HCV Interim Director. Anticipated Completion Date: 06/30/2024

View Audit 13310

Finding 9635 (2023-002)

Material Weakness 2023

Detroit Housing Commission

MI

Questioned Costs HUD Housing Programs Subrecipient Monitoring

Finding Number: 2023-002 Condition: Participant files selected for testing did not include complete information to support participant eligibility Planned Corrective Action: Staff will be retrained on the compliance requirements under the standards of the HCV Program through the oversight of the Ren...

Finding Number: 2023-002 Condition: Participant files selected for testing did not include complete information to support participant eligibility Planned Corrective Action: Staff will be retrained on the compliance requirements under the standards of the HCV Program through the oversight of the Rental Assistance Department Manager and Continued Occupancy Supervisor. The Department Manager and Supervisor will continue to utilize all Yardi monitoring reports to ensure the Department is operating in accordance with industry standards. Reporting will be done and monitored monthly to meet set goals. We know and maintain we will work in accordance with HUD rules and regulations where Annual Recertification processes are concerned. Weekly; Department Manager will review the certification pipeline to ensure compliance and follow up with the Housing Specialist to ensure compliance and meeting set weekly and monthly goals and metrics. Contact person responsible for corrective action: Felicia Burris, HCV Program Manager Anticipated Completion Date: 6/30/2023

View Audit 13310 Questioned Costs: $1

Finding 9634 (2023-001)

Material Weakness 2023

Detroit Housing Commission

MI

HUD Housing Programs Subrecipient Monitoring Eligibility

Finding Number: 2023-001 Condition: DHC did not complete fiscal year 2023 recertification. Planned Corrective Action: Staff will be retrained on the compliance requirements under the standards of the HCV Program through the oversight of the Rental Assistance Department Manager and Continued Occupanc...

Finding Number: 2023-001 Condition: DHC did not complete fiscal year 2023 recertification. Planned Corrective Action: Staff will be retrained on the compliance requirements under the standards of the HCV Program through the oversight of the Rental Assistance Department Manager and Continued Occupancy Supervisor. The Department Manager and Supervisor will continue to utilize all Yardi monitoring reports to ensure the Department is operating in accordance with industry standards. Reporting will be done and monitored monthly to meet set goals. We know and maintain we will work in accordance with HUD rules and regulations where Annual Recertification processes are concerned. Weekly; Department Manager will review the certification pipeline to ensure compliance and follow up with the Housing Specialist to ensure compliance and meeting set weekly and monthly goals and metrics. Contact person responsible for corrective action: Felicia Burris, HCV Program Manager Anticipated Completion Date: 6/30/2023

View Audit 13310

Finding 9632 (2023-002)

Significant Deficiency 2023

Higley Unified School District No. 60

AZ

Special Tests & Provisions Significant Deficiency

Finding Number: 2023‐002 Program Name/Assistance Listing Title: Education Stabilization Fund Assistance Listing Number: 84.425D, 84.425U, 84.425W Contact Person: Tyler Moore, Chief Financial Officer Anticipated Completion Date: June 30, 2024 Planned Corrective Action: Higley Unified School District ...

Finding Number: 2023‐002 Program Name/Assistance Listing Title: Education Stabilization Fund Assistance Listing Number: 84.425D, 84.425U, 84.425W Contact Person: Tyler Moore, Chief Financial Officer Anticipated Completion Date: June 30, 2024 Planned Corrective Action: Higley Unified School District No. 60 has done the following:  Applicable finance staff have been trained on the additional rules and regulations regarding federal funding related to labor and Davis Bacon prevailing wages.  Purchasing Manager reviews quote/contract specifically looking for the Davis Bacon requirement.  Vendors that provide labor as part of their procurement will not be moved to a federal fund after the start of the project.

View Audit 13309

Finding 9625 (2023-001)

Significant Deficiency 2023

Higley Unified School District No. 60

AZ

Procurement, Suspension & Debarment Subrecipient Monitoring

Program Name/Assistance Listing Title: Special Education Cluster, Coronavirus State and Local Fiscal Recovery Funds Assistance Listing Number: 84.027A, 84.027X, 84.173A, 84.173X, 21.027 Contact Person: Tyler Moore, Chief Financial Officer Anticipated Completion Date: June 30, 2024 Planned Corrective...

Program Name/Assistance Listing Title: Special Education Cluster, Coronavirus State and Local Fiscal Recovery Funds Assistance Listing Number: 84.027A, 84.027X, 84.173A, 84.173X, 21.027 Contact Person: Tyler Moore, Chief Financial Officer Anticipated Completion Date: June 30, 2024 Planned Corrective Action: Higley Unified School District No. 60 has updated the procurement policies to align with federal rules to verify vendors are not suspended or debarred.  Applicable finance staff have been trained on the additional rules and regulations regarding federal funding.  For the vendors that have reached the federal grant threshold of $25,000 or meet certain other criteria as specified in 2 CFR section 180.220; a binder has been created alphabetically listing their SAM.GOV documentation.  All new vendors added to Visions will have SAM.GOV documentation pulled.  Federal grant account codes will be monitored by the Director and Assistant Director of Finance to track potential account code changes after the initial purchase order has been created. The Purchasing Manager will be alerted to any new expenses being charged to a federal program.

View Audit 13309

Finding 9624 (2023-004)

None 2023

Mahalo Homes, Inc.

MD

Eligibility Reporting

Recommendation: Training of staff should be performed to bring staff up to date with the implementation of all the tenant file compliance requirements. Action Taken: The Organization did not retain all required information in the tenant file. Going forward the Organization will retain all tenant ...

Recommendation: Training of staff should be performed to bring staff up to date with the implementation of all the tenant file compliance requirements. Action Taken: The Organization did not retain all required information in the tenant file. Going forward the Organization will retain all tenant file information and will review its current tenant files.

View Audit 13307

Finding 9623 (2023-003)

None 2023

Mahalo Homes, Inc.

MD

Questioned Costs Reporting

Recommendation: Training of staff should be performed to bring staff up to date with the implementation of all replacement reserve compliance requirements, including the required replacement reserve deposit amount. Action Taken: The Organization, due to a change in staffing, did not deposit the re...

Recommendation: Training of staff should be performed to bring staff up to date with the implementation of all replacement reserve compliance requirements, including the required replacement reserve deposit amount. Action Taken: The Organization, due to a change in staffing, did not deposit the required amount. Management has agreed to properly train staff to insure the requirement is met in future years. Additionally, the Organization will insure that the underfunded amount will be deposited into the replacement reserve account, as well as all future required deposits.

View Audit 13307 Questioned Costs: $1

Finding 9622 (2023-002)

None 2023

Mahalo Homes, Inc.

MD

Questioned Costs Cash Management HUD Housing Programs

Recommendation: Training of staff should be performed to bring staff up to date with the implementation of all residual receipts’ compliance requirements. Additionally, the Organization should request approval for current overage. Action Taken: The Organization did not obtain approval to pay back...

Recommendation: Training of staff should be performed to bring staff up to date with the implementation of all residual receipts’ compliance requirements. Additionally, the Organization should request approval for current overage. Action Taken: The Organization did not obtain approval to pay back the excess residual receipt amount. This led to the residual receipt account being greater than its compliance amount. The Organization will request approval to pay back excess residual receipts.

View Audit 13307 Questioned Costs: $1

Finding 9621 (2023-001)

Material Weakness 2023

Mahalo Homes, Inc.

MD

Questioned Costs HUD Housing Programs Reporting

Recommendation: In conjunction with Mahalo Homes, Inc. and their local HUD field office, it was determined that the related party should invoice the Organization for project expenses on a monthly basis. In turn, Mahalo Homes, Inc. should pay the invoice amount on a monthly basis. Action Taken: Th...

Recommendation: In conjunction with Mahalo Homes, Inc. and their local HUD field office, it was determined that the related party should invoice the Organization for project expenses on a monthly basis. In turn, Mahalo Homes, Inc. should pay the invoice amount on a monthly basis. Action Taken: The auditors have worked with the auditee in conjunction with their local HUD field office to determine a course of action. All parties agreed with the recommendation to avoid unauthorized distributions.

View Audit 13307 Questioned Costs: $1

Finding 9620 (2023-002)

None 2023

Rivendell Homes, Inc.

MD

Eligibility Reporting

Recommendation: Training of staff should be performed to bring the staff up to date with the implementation of the tenant file compliance requirements. Action Taken: Rivendell Homes, Inc. did not retain all required information in the tenant file. Going forward the Organization will retain all ...

Recommendation: Training of staff should be performed to bring the staff up to date with the implementation of the tenant file compliance requirements. Action Taken: Rivendell Homes, Inc. did not retain all required information in the tenant file. Going forward the Organization will retain all tenant file information and will review its current tenant files.

View Audit 13306

Finding 9619 (2023-001)

Material Weakness 2023

Rivendell Homes, Inc.

MD

Questioned Costs HUD Housing Programs Reporting

Recommendation: In conjunction with Rivendell Homes, Inc. and their local HUD field office, it was determined that the related party should invoice the Organization for project expenses on a monthly basis. In turn, Rivendell Homes, Inc. should pay the invoice amount on a monthly basis. Action Tak...

Recommendation: In conjunction with Rivendell Homes, Inc. and their local HUD field office, it was determined that the related party should invoice the Organization for project expenses on a monthly basis. In turn, Rivendell Homes, Inc. should pay the invoice amount on a monthly basis. Action Taken: The auditors have worked with the auditee in conjunction with their local HUD field office to determine a course of action. All parties agreed with the recommendation to avoid unauthorized distributions.

View Audit 13306 Questioned Costs: $1

Finding 9618 (2023-003)

None 2023

Kuleana Gardens, Inc.

MD

Eligibility Reporting

Recommendation: Training of staff should be performed to bring the staff up to date with the implementation of all tenant file compliance requirements. Action Taken: The Organization did not retain all required information in the tenant file. Going forward the Organization will retain all tenant fi...

Recommendation: Training of staff should be performed to bring the staff up to date with the implementation of all tenant file compliance requirements. Action Taken: The Organization did not retain all required information in the tenant file. Going forward the Organization will retain all tenant file information and will review its current tenant files.

View Audit 13303

Finding 9617 (2023-002)

Material Weakness 2023

Kuleana Gardens, Inc.

MD

Questioned Costs Cash Management HUD Housing Programs

Recommendation: Training of staff should be performed to bring the staff up to date with the implementation of all residual receipts compliance requirements. Additionally, the Organization should request approval for current overage. Actio...

Recommendation: Training of staff should be performed to bring the staff up to date with the implementation of all residual receipts compliance requirements. Additionally, the Organization should request approval for current overage. Action Taken: Kuleana Gardens, Inc. did not retain approval to pay back the excess residual receipts amount. This led to the residual receipt account being greater than its compliance amount. The Organization will request approval to move money out of the residual receipts account in order to pay the residual receipt note.

View Audit 13303 Questioned Costs: $1

Finding 9616 (2023-001)

Material Weakness 2023

Kuleana Gardens, Inc.

MD

Questioned Costs HUD Housing Programs Reporting

Recommendation: In conjunction with Kuleana Gardens, Inc.. and their local HUD field office, it was determined that the related party should invoice the Organization for project expenses on a monthly basis. In turn, Kuleana Gardens, Inc.. should pay the invoice amount on a monthly basis. Action Tak...

Recommendation: In conjunction with Kuleana Gardens, Inc.. and their local HUD field office, it was determined that the related party should invoice the Organization for project expenses on a monthly basis. In turn, Kuleana Gardens, Inc.. should pay the invoice amount on a monthly basis. Action Taken: The auditors have worked with the auditee in conjunction with their local HUD field office to determine a course of action. All parties agreed with the recommendation to avoid unauthorized distributions.

View Audit 13303 Questioned Costs: $1

Finding 9615 (2023-003)

None 2023

Lorien Homes, Inc.

MD

Eligibility Reporting

Recommendation: Training of staff should be performed to bring the staff up to date with the implementation of all the tenant file compliance requirements. Action Taken: The Organization did not retain all required information in the tenant file. Going forward the Organization will retain all tenan...

Recommendation: Training of staff should be performed to bring the staff up to date with the implementation of all the tenant file compliance requirements. Action Taken: The Organization did not retain all required information in the tenant file. Going forward the Organization will retain all tenant file information and will review its current tenant files.

View Audit 13299

Finding 9614 (2023-002)

None 2023

Lorien Homes, Inc.

MD

Questioned Costs Cash Management HUD Housing Programs

Recommendation: Training of staff should be performed to bring the staff up to date with all residual receipts compliance requirements . Action Taken: Lorien Homes, Inc. did not obtain approval to pay back the excess residual receipt amount. This led to the residual receipt account being greater th...

Recommendation: Training of staff should be performed to bring the staff up to date with all residual receipts compliance requirements . Action Taken: Lorien Homes, Inc. did not obtain approval to pay back the excess residual receipt amount. This led to the residual receipt account being greater than its compliance amount. The Organization will request approval to pay back excess residual receipts.

View Audit 13299 Questioned Costs: $1

Finding 9613 (2023-001)

Material Weakness 2023

Lorien Homes, Inc.

MD

Questioned Costs HUD Housing Programs Reporting

Recommendation: In conjunction with Lorien Homes, Inc. and their local HUD field office, it was determined that the related party should invoice the Organization for project expenses on a monthly basis. In turn, Lorien Homes, Inc. should pay the invoice amount on a monthly basis. Action Taken: Th...

Recommendation: In conjunction with Lorien Homes, Inc. and their local HUD field office, it was determined that the related party should invoice the Organization for project expenses on a monthly basis. In turn, Lorien Homes, Inc. should pay the invoice amount on a monthly basis. Action Taken: The auditors have worked with the auditee in conjunction with their local HUD field office to determine a course of action. All parties agreed with the recommendation to avoid unauthorized distributions.

View Audit 13299 Questioned Costs: $1

Finding 9599 (2023-003)

Significant Deficiency 2023

Ahstw Community School District

IA

Internal Control / Segregation of Duties

See Report

View Audit 13291

Finding 9588 (2023-001)

Material Weakness 2023

Pierce City School District R-Vi

MO

Internal Control / Segregation of Duties HUD Housing Programs

CORRECTIVE ACTION PLAN August 11, 2023 U.S. DEPARTMENT OF EDUCATION U.S. DEPT. OF AGRICULTURE Pierce City School District R-VI respectfully submits the following corrective action plan for the year ended June 30, 2023. Contact information for the individual responsible for the corrective action...

CORRECTIVE ACTION PLAN August 11, 2023 U.S. DEPARTMENT OF EDUCATION U.S. DEPT. OF AGRICULTURE Pierce City School District R-VI respectfully submits the following corrective action plan for the year ended June 30, 2023. Contact information for the individual responsible for the corrective action: Dr. Kelli Alumbaugh, Superintendent Pierce City School District R-VI 300 N Myrtle Street Pierce City, MO 65723 (417) 476-2555 Independent Public Accounting Firm: The CPA Group, PC, 217 4th Street, Monett, MO 65708 Audit Period: Year ended June 30, 2023 The findings from the June 30, 2023, Schedule of Findings and Questioned Costs are discussed below. The findings are numbered consistently with the numbers assigned in the schedule. FINDINGS – FINANCIAL STATEMENT AUDIT Material Weakness – Internal Control over Financial Reporting - Segregation of duties Finding 2023-001 Recommendation: We realize Because of limited resources and personnel, management may not be able to achieve a proper segregation of duties; however, our professional standards require that we bring this lack of segregation of duties to your attention in this report. Action Taken: The limited number of available personnel prohibits segregation of incompatible duties and the District does not have the resources to hire additional accounting personnel. Completion Date: Not applicable Sincerely, Dr. Kelli Alumbaugh, Superintendent Pierce City School District R-VI

View Audit 13282

Finding 9587 (2023-001)

Material Weakness 2023

Winona-Montgomery Consolidated School District

MS

We will implement policies or procedures to establish an internal control system that will ensure strong financial accountability, including compliance with all federal grant requirements.

View Audit 13271

Finding 9578 (2023-001)

Material Weakness 2023

Verona R-Vii School District

MO

Internal Control / Segregation of Duties HUD Housing Programs

CORRECTIVE ACTION PLAN August 14, 2023 U.S. DEPARTMENT OF EDUCATION UNITED STATES DEPARTMENT OF AGRICULTURE Verona School District R-VII respectfully submits the following corrective action plan for the year ended June 30, 2023. Contact information for the individual responsible for the correctiv...

CORRECTIVE ACTION PLAN August 14, 2023 U.S. DEPARTMENT OF EDUCATION UNITED STATES DEPARTMENT OF AGRICULTURE Verona School District R-VII respectfully submits the following corrective action plan for the year ended June 30, 2023. Contact information for the individual responsible for the corrective action: Dr. Tony Simmons, Superintendent Verona School District R-VII 101 E Ella Street Verona, MO 65734 (417) 498-2274 Independent Public Accounting Firm: The CPA Group, PC, 217 4th Street, Monett, MO 65708 Audit Period: Year ended June 30, 2023 The findings from the June 30, 2023, Schedule of Findings and Questioned Costs are discussed below. The findings are numbered consistently with the numbers assigned in the schedule. FINDINGS – FINANCIAL STATEMENT AUDIT Material Weakness – Internal Control over Financial Reporting - Segregation of duties Finding 2023-001 Recommendation: We realize Because of limited resources and personnel, management may not be able to achieve a proper segregation of duties; however, our professional standards require that we bring this lack of segregation of duties to your attention in this report. Action Taken: The limited number of available personnel prohibits segregation of incompatible duties and the District does not have the resources to hire additional accounting personnel. Completion Date: Not applicable Sincerely, Dr. Tony Simmons, Superintendent Verona School District R-VII

View Audit 13269

Finding 9577 (2023-001)

None 2023

17 Lincoln Streetinc, 024-Eh187

ME

Management will develop a procedure and checklist for move ins that includes collecting the security deposits.

View Audit 13252

Finding 9574 (2023-001)

Material Weakness 2023

North Big Horn Hospital District

WY

Material Weakness Reporting Significant Deficiency

Corrective action planned: When HRSA opens the portal again the numbers will be updated to estimates using the Allowance reserve percentages. If the portal does not open again the facility will calculate net patient revenues, using estimates, in a separate file to be sent to HRSA upon request. Ant...

Corrective action planned: When HRSA opens the portal again the numbers will be updated to estimates using the Allowance reserve percentages. If the portal does not open again the facility will calculate net patient revenues, using estimates, in a separate file to be sent to HRSA upon request. Anticipated completion date: Upon request. Contact person responsible for corrective action: Darcy Robertson, CFO

View Audit 13228

Finding 9572 (2023-003)

Material Weakness 2023

Northwest Oregon Housing Authority

OR

HUD Housing Programs Material Weakness Internal Control / Segregation of Duties

2023-003 Housing Voucher Cluster – Assistance Listing No. 14.871 Recommendation: The Authority should review their HQS inspection policies to ensure that all inspections are performed timely, and that all necessary documentation is maintained for each inspection. Explanation of disagreement with aud...

2023-003 Housing Voucher Cluster – Assistance Listing No. 14.871 Recommendation: The Authority should review their HQS inspection policies to ensure that all inspections are performed timely, and that all necessary documentation is maintained for each inspection. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: The Northwest Oregon Housing Authority has reviewed its inspection policies regarding timely inspections. All units are being scheduled in a biennial cycle. The units noted in this audit all had inspections completed in 2021 or 2022. The units inspected in 2021 have subsequently been inspected (and passed HQS) in 2023, and the units inspected in 2022 are or will be scheduled in 2024, thus resolving this finding. Name(s) of the contact person(s) responsible for corrective action: Sandra Soucie, HCV Manager, HCVManager@nwoha.org Planned completion date for corrective action plan: 1/31/2024 If the U.S. Department of Housing and Urban Development has questions regarding this plan, please call Hsu-Feng Andy Shaw, Executive Director, at 503-861-0119.

View Audit 13226

Corrective Action Plans

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