Corrective Action Plans

Finding 3980 (2023-002)

Significant Deficiency 2023

MI

Procurement, Suspension & Debarment Matching / Level of Effort / Earmarking

Wage rate requirements were discussed during the bidding process. However, the School District and engineers were not aware the specific language needed to be included in the bid and contract. The School District used two contractors that did pay at and above the required wage rates; however, certif...

Wage rate requirements were discussed during the bidding process. However, the School District and engineers were not aware the specific language needed to be included in the bid and contract. The School District used two contractors that did pay at and above the required wage rates; however, certified payrolls were not required to be provided and the subcontractor agreements were not required to have prevailing wage language. The School District is aware of the written requirement for future projects.

View Audit 6272

Finding 3975 (2023-001)

Significant Deficiency 2023

MacOmb Community College

MI

Reporting Internal Control / Segregation of Duties Special Tests & Provisions

Pursuant to federal regulations, Uniform Administrative Requirements Section 200.511, the following are the findings as noted in the Macomb Community College Single Audit Act Compliance report for the year ended June 30, 2023, and corrective actions to be completed. 2023-001 Special Tests and Provis...

Pursuant to federal regulations, Uniform Administrative Requirements Section 200.511, the following are the findings as noted in the Macomb Community College Single Audit Act Compliance report for the year ended June 30, 2023, and corrective actions to be completed. 2023-001 Special Tests and Provisions - Enrollment Reporting Auditor Description of Condition and Effect. We noted that one out student of a testing population of two was not reported timely to NSLDS and did not have the correct status change reported. As a result of this condition, the College was exposed to an increased risk that incorrect and untimely information would be reported to NSLDS. Auditor Recommendation. We recommend that the College consistently apply their enrollment reporting procedures to prevent untimely status change reporting in the future. Corrective Action. This situation occurred because the student graduated during a term in which they were not enrolled. This is connected to our upload to the National Student Clearinghouse which did not mark the student as graduated (G Not Applied) in our degree verify file. There is a known defect in our student information system that causes this issue. We are currently working collaboratively with our information technology department to resolve this defect which will ensure that we capture students in this situation in the future. Responsible Person. Registrar/Director of Enrollment Services Anticipated Completion Date. June 30, 2024

View Audit 6259

Finding 3974 (2023-001)

None 2023

Asi Freeport Senior Housing, Inc.

MN

Questioned Costs

DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT ASI - Freeport Senior Housing, Inc. respectfully submits the following corrective action plan for the year ended June 30, 2023. Name and address of independent public accounting firm: Hinrichs & Associates, Ltd. 1000 Shelard Parkway, Suite 110 Minneapolis...

DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT ASI - Freeport Senior Housing, Inc. respectfully submits the following corrective action plan for the year ended June 30, 2023. Name and address of independent public accounting firm: Hinrichs & Associates, Ltd. 1000 Shelard Parkway, Suite 110 Minneapolis, MN 55426 Audit Period: 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. Section A of the schedule, Summary of Audit Results, does not include findings and is not addressed. FINDINGS - FINANCIAL STATEMENT AUDIT - NONE, FINDINGS - FEDERAL AWARD PROGRAMS AUDIT DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT FINDING 2023-001: SECTION 202, ASSISTANCE LISTING NUMBER 14.157 The Project overpaid management fees to the management company. Recommendation: The management company should repay the $1,247 to the Project. Action Taken: The Project agrees with the finding. The management company will repay the overpaid management fees as soon as possible. If the Department of Housing and Urban Development has questions regarding this plan, please call Les Russo at 847-424-5601.

View Audit 6258 Questioned Costs: $1

Finding 3973 (2023-001)

None 2023

Harvard Supportive Housing, Inc.

MN

Questioned Costs HUD Housing Programs

DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT Harvard Supportive Housing, Inc. respectfully submits the following corrective action plan for the year ended June 30, 2023. Name and address of independent public accounting firm: Hinrichs & Associates, Ltd. 1000 Shelard Parkway, Suite 110 Minneapolis, M...

DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT Harvard Supportive Housing, Inc. respectfully submits the following corrective action plan for the year ended June 30, 2023. Name and address of independent public accounting firm: Hinrichs & Associates, Ltd. 1000 Shelard Parkway, Suite 110 Minneapolis, MN 55426, Audit Period: 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. Section A of the schedule, Summary of Audit Results, does not include findings and is not addressed. FINDINGS - FINANCIAL STATEMENT AUDIT - None, FINDINGS - FEDERAL AWARD PROGRAMS AUDIT - DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT FINDING 2023-001: SECTION 811, ASSISTANCE LISTING NUMBER 14.181 - The Project overpaid management fees to the management company. Recommendation: The management company should repay the $1,398 to the Project. Action Taken: The Project agrees with the finding. The management company will repay the overpaid management fees as soon as possible. If the Department of Housing and Urban Development has questions regarding this plan, please call Les Russo at 847-424-5601.

View Audit 6255 Questioned Costs: $1

Finding 3972 (2023-002)

None 2023

Asi Freeport, Inc.

MN

HUD Housing Programs

FINDING 2023-002: SECTION 811, ASSISTANCE LISTING NUMBER 14.181- The tenant file did not contain a copy of the tenant's signed application. Recommendation: Project personnel should be reminded to obtain a copy of the tenant's signed application for the tenant file. Action Taken: The Project agrees w...

FINDING 2023-002: SECTION 811, ASSISTANCE LISTING NUMBER 14.181- The tenant file did not contain a copy of the tenant's signed application. Recommendation: Project personnel should be reminded to obtain a copy of the tenant's signed application for the tenant file. Action Taken: The Project agrees with the finding. Recertification staff have been reminded to obtain a copy of the signed application for the tenant file. The signed application was obtained in June 2023.

View Audit 6251

Finding 3971 (2023-001)

None 2023

Asi Freeport, Inc.

MN

Questioned Costs HUD Housing Programs

FINDING 2023-001: SECTION 811, ASSISTANCE LISTING NUMBER 14.181 - The tenant file did not contain a signed lease or a signed disability form. Recommendation: Project personnel should be reminded that obtaining a signed lease and a signed disability form is an important step in tenant management. Ac...

FINDING 2023-001: SECTION 811, ASSISTANCE LISTING NUMBER 14.181 - The tenant file did not contain a signed lease or a signed disability form. Recommendation: Project personnel should be reminded that obtaining a signed lease and a signed disability form is an important step in tenant management. Action Taken: The Project agrees with the finding. Project personnel will be reminded to obtain the proper documentation during the move-in process. The tenant moved out in March 2023; therefore, management should consult with HUD to determine if remediation is required.

View Audit 6251 Questioned Costs: $1

Finding 3966 (2023-001)

Significant Deficiency 2023

Summit Academy Oic

MN

Significant Deficiency Internal Control / Segregation of Duties

United States Department of Education Summit Academy OIC respectfully submits the following corrective action plan for the year ended June 30, 2023. Audit period: July 1, 2022 to June 30, 2023. The findings from the schedule of findings and questioned costs are discussed below. The findings are numb...

United States Department of Education Summit Academy OIC respectfully submits the following corrective action plan for the year ended June 30, 2023. Audit period: July 1, 2022 to 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—FINANCIAL STATEMENT AUDIT No findings to report. FINDINGS—FEDERAL AWARD PROGRAMS AUDITS DEPARTMENT OF EDUCATION 2023-001 Student Financial Assistance Cluster – Assistance Listing No. Various Recommendation: We recommend that the Organization review the updated GLBA requirements and ensure their WISP includes all required elements. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: Summit Academy does acknowledge this finding and we have updated our WISP as recommended. Additionally, we have instituted a semiannual, pre-scheduled meeting of the responsible officials to review the most current requirements of the GLBA to assure that the organization WISP is always up to date. Name(s) of the contact person(s) responsible for corrective action: Marc Carrier, CFO. Planned completion date for corrective action plan: Fall 2023 If the Department of Education has questions regarding this plan, please call Marc Carrier at 612-278-5282.

View Audit 6239

Finding 3961 (2023-001)

Significant Deficiency 2023

Urban Community School

OH

Internal Control / Segregation of Duties

Corrective Actions: We have re-assigned responsibility for submitting receipts for credit card charges to the Manager of the Food Service Program, who has been running our program for 18 years. We sent our policy on receipt requirements for all credit card receipts to all relevant staff. The CFO and...

Corrective Actions: We have re-assigned responsibility for submitting receipts for credit card charges to the Manager of the Food Service Program, who has been running our program for 18 years. We sent our policy on receipt requirements for all credit card receipts to all relevant staff. The CFO and Business Manager will both review the monthly credit card charges for appropriate supporting documentation for credit card charges.

View Audit 6236

Finding 3953 (2023-004)

Significant Deficiency 2023

Bay-Arenac Isd

MI

Reporting

The finance conversion along with staff shortages made it difficult to complete year-end work timely/accurately. As of the 23-24 fiscal year, the accounting department will be trained and ready to produce the SEFA with minimal auditor assistance. Attendance at the MSBO Financial Statement Preparatio...

The finance conversion along with staff shortages made it difficult to complete year-end work timely/accurately. As of the 23-24 fiscal year, the accounting department will be trained and ready to produce the SEFA with minimal auditor assistance. Attendance at the MSBO Financial Statement Preparation conference will be one area of training for applicable staff.

View Audit 6228

Finding 3942 (2023-001)

Significant Deficiency 2023

Lutheran Family Services of Virginia, Inc. Dba Encircle

VA

Questioned Costs Cash Management Reporting

Department of Health and Human Services Lutheran Family Services of Virginia, Inc. and Subsidiaries d/b/a enCircle respectfully submits the following corrective action plan for the year ended June 30, 2023. Name and address of independent public accounting firm: Brown, Edwards & Company, L.L.P. ...

Department of Health and Human Services Lutheran Family Services of Virginia, Inc. and Subsidiaries d/b/a enCircle respectfully submits the following corrective action plan for the year ended June 30, 2023. Name and address of independent public accounting firm: Brown, Edwards & Company, L.L.P. 3906 Electric Road Roanoke, Virginia 24018 Audit Period: Year ending June 30, 2023 The finding from the June 30, 2023 schedule of findings and questioned costs is discussed below. Findings – Financial Statement Audit NONE. Findings – Federal Award Programs Audits Department of Health and Human Services 2023-001: Unaccompanied Alien Children – ALN #93.676, Activities Allowed/Unallowed; Allowable Costs and Period of Performance and controls over Activities Allowed/Unallowed; Allowable Costs and Period of Performance. Significant Deficiency Criteria and Condition: Under the requirements of the Uniform Guidance, the drawdown of federal funds must be based on actual expenditures incurred. Context: We tested twenty-five reimbursed amounts from various awards. We noted two instances where the Organization obtained federal funds without incurring the actual expenditure. We also noted one instance where the expenditure occurred outside of the budget period. Cause: The Organization did not properly allocate expenditures within their general ledger and did not have an adequate review process in place. Effect: The lack of an adequate review process can cause federal funds to be obtained prior to the actual expenditure is incurred. Recommendation: We recommend that the Organization develop a review process to ensure the drawdown of federal funds does not occur before funds are expended and that the Organization submit expenditures incurred in the budget period. Action Taken: Management has implemented enhanced review processes to ensure the drawdown of Federal funds does not occur before funds are expended and that enCircle submits only expenditures incurred during the budget period. Name of Contact Person: David Pruett, Chief Financial Officer

View Audit 6220 Questioned Costs: $1

Finding 3938 (2023-007)

Significant Deficiency 2023

Presentation College

SD

Special Tests & Provisions Student Financial Aid Significant Deficiency

Finding 2023-007 Special Tests and Provisions – Perkins Loan Recordkeeping and Record Retention Federal Agency Name: Department of Education Program Name: Student Financial Aid Cluster CFDA # 84.038 – Federal Perkins Loan Program Finding Summary: We did not maintain all records as required under the...

Finding 2023-007 Special Tests and Provisions – Perkins Loan Recordkeeping and Record Retention Federal Agency Name: Department of Education Program Name: Student Financial Aid Cluster CFDA # 84.038 – Federal Perkins Loan Program Finding Summary: We did not maintain all records as required under the program and as a result, subsequent to yearend, were required to buy back specific Perkins Loans that did not have proper documentation maintained. Responsible Individuals: Jillaine Smith, Chief Operating Officer, Erin Drew, Facilitator of Advancement Services and Patty Pietz, Presentation Sisters Accountant. Corrective Action Plan: All loan documentation was provided to Department of Education as part of the liquidation process and any loans that did not have proper documentation were purchased back by the College in September 2023 and the Perkins Liquidation was complete with final reporting requirements completed. Anticipated Completion Date: September 30, 2023

View Audit 6218

Finding 3933 (2023-005)

Significant Deficiency 2023

Presentation College

SD

Student Financial Aid Reporting Significant Deficiency

Finding 2023-005 Special Tests and Provisions – Enrollment Reporting Federal Agency Name: Department of Education Program Name: Student Financial Aid Cluster CFDA # 84.268 – Federal Direct Student Loans CFDA # 84.063 – Federal Pell Grant Program Finding Summary: During testing of enrollment reportin...

Finding 2023-005 Special Tests and Provisions – Enrollment Reporting Federal Agency Name: Department of Education Program Name: Student Financial Aid Cluster CFDA # 84.268 – Federal Direct Student Loans CFDA # 84.063 – Federal Pell Grant Program Finding Summary: During testing of enrollment reporting, it was noted that 7 of 19 students tested were not reported to NSDLS with changes in effective dates and enrollment statuses; and the certification dates were not within 60 days of the changes and 8 of 19 students tested were reported to NSLDS with incorrect program begin dates. Responsible Individuals: Jillaine Smith, Chief Operating Officer, Erin Drew, Facilitator of Advancement Services and Patty Pietz, Presentation Sisters Accountant. Corrective Action Plan: The errors noted in tested were corrected when we were notified of the errors and additional review was taken to ensure that a final enrollment roster was submitted as required as part of the close audit process. Anticipated Completion Date: September 30, 2023

View Audit 6218

Finding 3932 (2023-004)

Significant Deficiency 2023

Presentation College

SD

Internal Control / Segregation of Duties Student Financial Aid Cash Management

Finding 2023-004 Cash Management –Reconciliations (Direct Loan) Federal Agency Name: Department of Education Program Name: Student Financial Aid Cluster CFDA # 84.268 – Federal Direct Student Loans Finding Summary: When testing cash management related to reconciliations, the auditors noted 2 of the ...

Finding 2023-004 Cash Management –Reconciliations (Direct Loan) Federal Agency Name: Department of Education Program Name: Student Financial Aid Cluster CFDA # 84.268 – Federal Direct Student Loans Finding Summary: When testing cash management related to reconciliations, the auditors noted 2 of the 12 monthly SAS reconciliations were not completed. Responsible Individuals: Jillaine Smith, Chief Operating Officer, Erin Drew, Facilitator of Advancement Services and Patty Pietz, Presentation Sisters Accountant. Corrective Action Plan: The Student Financial Aid Director completed a final reconciliation after final disbursements were made to students to ensure all aid awards was correctly reflected. Anticipated Completion Date: September 30, 2023

View Audit 6218

Finding 3931 (2023-003)

Material Weakness 2023

Presentation College

SD

Questioned Costs Student Financial Aid Eligibility

Finding 2023-003 Eligibility – Calculation of the Amount of Pell, Subsidized and Unsubsidized Direct Loan Assistance Awarded Federal Agency Name: Department of Education Program Name: Student Financial Aid Cluster CFDA # 84.033 – Federal Work Study Program CFDA # 84.268 – Federal Direct Student Loan...

Finding 2023-003 Eligibility – Calculation of the Amount of Pell, Subsidized and Unsubsidized Direct Loan Assistance Awarded Federal Agency Name: Department of Education Program Name: Student Financial Aid Cluster CFDA # 84.033 – Federal Work Study Program CFDA # 84.268 – Federal Direct Student Loans CFDA # 84.007 – Federal Supplemental Educational Opportunity Grants (FSEOG) CFDA # 84.063 – Federal Pell Grant Program Finding Summary: During testing over the eligibility requirements, the following deficiencies were noted: • 2 of 60 students were not awarded the correct amount of Pell. One student was under awarded by $2,773 and one was over awarded by $862. • 7 of 60 students were not awarded the correct amount of subsidized loans. 4 students were under awarded subsidized loans based on being awarded as the wrong academic year in school; and 3 students were over awarded subsidized loans as the student did not have financial need. • 5 of 60 students were not awarded the correct amount of unsubsidized loans. All 5 of the students with errors were under awarded unsubsidized loans based on being awarded as the wrong academic year in school. Responsible Individuals: Jillaine Smith, Chief Operating Officer, Erin Drew, Facilitator of Advancement Services and Patty Pietz, Presentation Sisters Accountant. Corrective Action Plan: The College has reviewed all students impacted by the errors noted above and made corrections to the students as needed. Anticipated Completion Date: September 30, 2023

View Audit 6218 Questioned Costs: $1

Finding 3930 (2023-006)

Significant Deficiency 2023

Presentation College

SD

Student Financial Aid Reporting Significant Deficiency

Finding 2023-006 Reporting – Special Reporting – Fiscal Operations Report and Application to Participate (FISAP). Federal Agency Name: Department of Education Program Name: Student Financial Aid Cluster CFDA # 84.033 – Federal Work Study Program CFDA # 84.007 – Federal Supplemental Educational Oppor...

Finding 2023-006 Reporting – Special Reporting – Fiscal Operations Report and Application to Participate (FISAP). Federal Agency Name: Department of Education Program Name: Student Financial Aid Cluster CFDA # 84.033 – Federal Work Study Program CFDA # 84.007 – Federal Supplemental Educational Opportunity Grants (FSEOG) CFDA # 84.063 – Federal Pell Grant Program CFDA # 84.268 – Federal Direct Student Loans CFDA # 84.038 – Federal Perkins Loan Program Finding Summary: In testing key line items as indicated in the compliance supplement, the auditors noted 2 line items for which amounts reported in the FISAP did not agree to supporting records and documentation that were provided during testing. Lines that were not reported correctly were Part II, Section E Line 22 and Part II, Section D Line 7. Responsible Individuals: Jillaine Smith, Chief Operating Officer, Erin Drew, Facilitator of Advancement Services and Patty Pietz, Presentation Sisters Accountant. Corrective Action Plan: Any errors that were required to be corrected were made for 2022 and resubmitted to the Department of Education prior to the 2023 report being completed. Anticipated Completion Date: September 30, 2023

View Audit 6218

Finding 3924 (2023-002)

Significant Deficiency 2023

Marinette School District

WI

Procurement, Suspension & Debarment Matching / Level of Effort / Earmarking § 200.214

Recommendation: We recommend the District include contract language which ensures vendor are not suspended or debarred as well as utilize sam.gov to review vendors at the beginning of the year or before a transaction is incurred in accordance with Uniform Guidance requirements. Explanation of disa...

Recommendation: We recommend the District include contract language which ensures vendor are not suspended or debarred as well as utilize sam.gov to review vendors at the beginning of the year or before a transaction is incurred in accordance with Uniform Guidance requirements. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action planned/taken in response to finding: Procedures will be updated to include verification that a vendor has not been suspended or debarred. A record of this verification will be retained.

View Audit 6213

Finding 3923 (2023-001)

None 2023

Mojave Cedar Supportive Housing, Inc.

MN

Questioned Costs HUD Housing Programs

DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT Mojave Cedar Supportive Housing, Inc. respectfully submits the following corrective action plan for the year ended March 31, 2023. Name and address of independent public accounting firm: Hinrichs & Associates, Ltd. 1000 Shelard Parkway, Suite 110 Minneapol...

DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT Mojave Cedar Supportive Housing, Inc. respectfully submits the following corrective action plan for the year ended March 31, 2023. Name and address of independent public accounting firm: Hinrichs & Associates, Ltd. 1000 Shelard Parkway, Suite 110 Minneapolis, MN 55426 Audit Period: March 31, 2023. The findings from the March 31, 2023 schedule of findings and questioned costs are discussed below. The findings are numbered consistently with the numbers assigned in the schedule. Section A of the schedule, Summary of Audit Results, does not include findings and is not addressed. FINDINGS - FINANCIAL STATEMENT AUDIT - NONE, FINDINGS - FEDERAL AWARD PROGRAMS AUDIT DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT FINDING 2023-001: SECTION 811, ASSISTANCE LISTING NUMBER 14.181 The Project paid the expense of another project under common management. Recommendation: The Project should carefully review invoices before payment to make sure it pays the correct amount. Action Taken: The Project agrees with the finding. The accounts payable staff will be reminded to be careful when entering invoices for payment. If the Department of Housing and Urban Development has questions regarding this plan, please call Chuck Reuter at 651-645-7271.

View Audit 6193 Questioned Costs: $1

Finding 3922 (2023-001)

None 2023

Hudson Senior Housing, Inc.

MN

Questioned Costs HUD Housing Programs

DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT Hudson Senior Housing, Inc. respectfully submits the following corrective action plan for the year ended March 31, 2023. Name and address of independent public accounting firm: Hinrichs & Associates, Ltd. 1000 Shelard Parkway, Suite 110 Minneapolis, MN 554...

DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT Hudson Senior Housing, Inc. respectfully submits the following corrective action plan for the year ended March 31, 2023. Name and address of independent public accounting firm: Hinrichs & Associates, Ltd. 1000 Shelard Parkway, Suite 110 Minneapolis, MN 55426 Audit Period: March 31, 2023. The findings from the March 31, 2023 schedule of findings and questioned costs are discussed below. The findings are numbered consistently with the numbers assigned in the schedule. Section A of the schedule, Summary of Audit Results, does not include findings and is not addressed. FINDINGS - FINANCIAL STATEMENT AUDIT-NONE, FINDINGS - FEDERAL AWARD PROGRAMS AUDIT- DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT FINDING 2023-001: SECTION 202, ASSISTANCE LISTING NUMBER 14.157 Condition: For one of the tenant files tested, there was a mathematical error in computing the tenant's medical expense deduction in the process of computing the tenant share of monthly rent. Recommendation: The Project should recompute the HUD subsidy and tenant rent for this tenant and adjust a future monthly billing, if necessary. Project managers should be aware of the importance of computing the tenant's medical expense deduction accurately. Action Taken: The Project agrees with the finding. Tenant rent was recomputed and management adjusted a future monthly HUD billing in July 2023. If the Department of Housing and Urban Development has questions regarding this plan, please call Chuck Reuter at 651-645-7271.

View Audit 6191 Questioned Costs: $1

Finding 3918 (2023-003)

Material Weakness 2023

North Wayne Community Unit School District 200

IL

The District plans to continue to have controls in place during the upcoming fiscal year similar to controls in place at November 1, 2022. The District will implement effective controls over payroll by requiring an administrator signature of approval on employee timesheets for all hourly employees a...

The District plans to continue to have controls in place during the upcoming fiscal year similar to controls in place at November 1, 2022. The District will implement effective controls over payroll by requiring an administrator signature of approval on employee timesheets for all hourly employees and ensure employees are paid in accordance with applicable pay scales. The District had effective controls in place beginning November 1, 2022.

View Audit 6189

Finding 3917 (2023-002)

Significant Deficiency 2023

Talbert House, Inc.

OH

Special Tests & Provisions Internal Control / Segregation of Duties

2023-002 Continuum of Care, Assistance Listing Number 14.267 Criteria: Special Tests and Provisions Reasonable Rental Rates. 24 CFR 578.49(b)(l) of the Continuum of Care Program requires rents paid for with grant funds to be reasonable and to not exceed fair market rents. The Agency should have int...

2023-002 Continuum of Care, Assistance Listing Number 14.267 Criteria: Special Tests and Provisions Reasonable Rental Rates. 24 CFR 578.49(b)(l) of the Continuum of Care Program requires rents paid for with grant funds to be reasonable and to not exceed fair market rents. The Agency should have internal controls in place to ensure compliance. Condition: We noted an instance (out of a sample of 19) of a client's original lease ending and no documentation being retained to indicate the future status of the lease in accordance with the Agency's policies and controls. Cause and Effect: The Agency may pay rent for a lease that is not housing a client or is in excess of fair market rents for a similar unit. The Agency did not adhere to its internal controls of obtaining a lease addendum or new lease at the conclusion of a previous lease. Recommendation: The Agency should provide education and training for all staff members involved in the program. In addition, management needs to perform a review of all client files to ensure proper documentation is retained for all clients and ongoing leases. Views of Responsible Officials and Planned Corrective Actions: Recommendation will be implemented including education and training of staff members responsible for lease documents. Agency will also complete a review of all client files to ensure properly inclusion of appropriate documentation.

View Audit 6169

Finding 3880 (2023-001)

Significant Deficiency 2023

Ellis Early Learning, Inc.

MA

Reporting Internal Control / Segregation of Duties § 200.430

Time & Reporting - Corrective Action Plan In order to strengthen the internal controls surrounding time and effort reporting, the Organization has modified its policies and procedures relating to time and effort reporting to align with any changes in payroll processes and any changes in personnel...

Time & Reporting - Corrective Action Plan In order to strengthen the internal controls surrounding time and effort reporting, the Organization has modified its policies and procedures relating to time and effort reporting to align with any changes in payroll processes and any changes in personnel at the Organization to ensure that appropriate support is maintained at all times at the Organization. Further, the Organization plans to implement regular internal inspections of records to ensure completeness and adherence to the policies in place.

View Audit 6138

Finding 3879 (2023-001)

Significant Deficiency 2023

Alief Montessori Community School

TX

Procurement, Suspension & Debarment Matching / Level of Effort / Earmarking

The Charter Holder will contact TEA to clarify if there is non-compliance with ESSER III funding requirements, and if needed, to determine any remedial steps related to this finding. For future construction projects or components thereof, the Charter Holder will not use federal funds. Had the Charte...

The Charter Holder will contact TEA to clarify if there is non-compliance with ESSER III funding requirements, and if needed, to determine any remedial steps related to this finding. For future construction projects or components thereof, the Charter Holder will not use federal funds. Had the Charter Holder been notified either during ESSER III training or the approval process that this project component would require provisions from the Davis-Bacon Act, Wage Rate Requirements, ESSER III funding would not have been requested. Based on the Charter Holder's financial condition, we would have been more than able to fully fund the minor HV AC remodeling with our local fund. The general contractor is aware of the Davis-Bacon Act requirements for federally funded projects, however, during the planning stage of the project, the RFP was not designed to include provisions on Wage Rate Requirements because the Charter Holder originally planned to utilize its local funds to cover the total construction cost. Anticipated completion date: By December 01, 2023 - contact TEA to clarify non-compliance and if needed, determine remedial steps. Ongoing: Future construction projects will not use federal funds.

View Audit 6129

Finding 3878 (2023-001)

None 2023

Laramie Square Housing

WY

HUD Housing Programs Cash Management

Action Taken: Management agrees and will make up the deficient deposit as soon as possible.

View Audit 6126

Finding 3870 (2023-002)

Significant Deficiency 2023

Metcalfe County School District

KY

Questioned Costs Allowable Costs / Cost Principles

We have implemented procedures to strengthen controls over allowable costs associated with federal grants whereby any non-standard expenses require a secondary review of allowability prior to being charged to a federal grant.

View Audit 6108 Questioned Costs: $1

Finding 3869 (2023-001)

Material Weakness 2023

Metcalfe County School District

KY

Upon finding that the Davis Bacon Act was not included in the construction contract and had not been followed the contract was updated, retroactively, to include the Davis Bacon Act requirements. Further a change order on the construction project was approved retroactively paying the laborers the...

Upon finding that the Davis Bacon Act was not included in the construction contract and had not been followed the contract was updated, retroactively, to include the Davis Bacon Act requirements. Further a change order on the construction project was approved retroactively paying the laborers the $143,328 differential between the amount that was paid to date as compared with the amount that should have been paid under the Davis Bacon Act using the prevailing wages. Furthermore, the compliance with the Davis Bacon Act is now being closely monitored by district management, the construction manager and the architects.

View Audit 6108

Corrective Action Plans

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