Corrective Action Plans

Finding 31263 (2022-002)

Significant Deficiency 2022

CA

Procurement, Suspension & Debarment Significant Deficiency § 200.327

Finding 2022-002 Federal Agency: U.S. Department of Homeland Security Federal Financial Assistance Listing: 97.056 Applicable Federal Award Number: EMW-2019-PU-00447 & EMW-2020-PU-00288 Program Name: Port Security Grants Program Compliance Requirement: Procurement, Suspension and Debarment Type of F...

Finding 2022-002 Federal Agency: U.S. Department of Homeland Security Federal Financial Assistance Listing: 97.056 Applicable Federal Award Number: EMW-2019-PU-00447 & EMW-2020-PU-00288 Program Name: Port Security Grants Program Compliance Requirement: Procurement, Suspension and Debarment Type of Finding: Significant Deficiency, Instance of Non-compliance Views of Responsible Officials: We concur. Corrective Action Plan: Review and update the District?s Procurement procedures to ensure that all required provisions are included in its contracts. Responsible Individual(s): Juan Villanueva, Director of Facilities and Procurement Anticipated Completion Date: Initial update to procurement procedures to be completed by March 31, 2023 with periodic reviews.

View Audit 30245

Finding 31262 (2022-002)

Significant Deficiency 2022

Horizon House, Inc.

IN

Questioned Costs Subrecipient Monitoring

Finding 2022-02 Timeliness of Subrecipient Payments Condition: During our audit, it was determined that the auditee failed to adhere to the 30-day payment requirement for a specific subrecipient. We reviewed the payment request documentation and verified that it was complete and accurate. However,...

Finding 2022-02 Timeliness of Subrecipient Payments Condition: During our audit, it was determined that the auditee failed to adhere to the 30-day payment requirement for a specific subrecipient. We reviewed the payment request documentation and verified that it was complete and accurate. However, the auditee did not process the payment within the stipulated timeframe. Corrective Actions Taken or Planned: During the year ended December 31, 2022, management began reconciling federal grants monthly, ensuring revenues and expenses for the month and year to date net to zero. In conjunction with this process, management reviews accounts payable schedules on a monthly basis for outstanding sub-recipient invoices due and invoices due are paid prior to the 30-day payment requirement.

View Audit 28321 Questioned Costs: $1

Finding 31261 (2022-001)

Significant Deficiency 2022

Horizon House, Inc.

IN

Subrecipient Monitoring Procurement, Suspension & Debarment

Finding 2022-01 Internal Control over Debarment Condition: An effective internal control system was not in place at the Organization to ensure compliance with requirements related to reviewing the debarment and suspension status of subrecipients before issuing subawards of federal funds. Correcti...

Finding 2022-01 Internal Control over Debarment Condition: An effective internal control system was not in place at the Organization to ensure compliance with requirements related to reviewing the debarment and suspension status of subrecipients before issuing subawards of federal funds. Corrective Actions Taken or Planned: During the year ended December 31, 2022, management began reviewing the debarment and suspension of sub recipients prior to the disbursement of funds expected to be reimbursed by federal funds. The Organization will also institute a new policy requiring all future contracts with sub recipients to include a certification from the sub recipient organization stating the sub recipient organization and its senior members of management have not been notified of suspension or debarment from receiving federal funds.

View Audit 28321

Finding 31259 (2022-001)

Significant Deficiency 2022

Vantage Career Center

OH

Cash Management § 200.305

Finding Number: 2022-001 Planned Corrective Action: The correction of this issue has already been in place even prior to this audit. As I have research more on federal funding and ...

Finding Number: 2022-001 Planned Corrective Action: The correction of this issue has already been in place even prior to this audit. As I have research more on federal funding and the criteria for drawing funds and the time line of disbursing them. Vantage has not drawn funds in advance of spending them to date and will continue to follow that method. Anticipated Completion Date: Already in place Responsible Contact Person: Laura Peters, Treasurer/CFO

View Audit 27632

Finding 31256 (2022-001)

Material Weakness 2022

Lynnville-Sully Community School District

IA

Internal Control / Segregation of Duties

We will continue to review our procedures and implement additional controls where possible.

View Audit 26590

Finding 31249 (2022-003)

Significant Deficiency 2022

Newbury Elderly Housing, Inc.

NH

Allowable Costs / Cost Principles Reporting Significant Deficiency

Finding 2022-003: Plan: Shortages in staffing resulted in incomplete implementation of con-ective action plan in 2021. Documentation and differentiation of job duties for Director of Housing and Project Manager will continue to be developed and implemented. Documentation of non-site-based housing st...

Finding 2022-003: Plan: Shortages in staffing resulted in incomplete implementation of con-ective action plan in 2021. Documentation and differentiation of job duties for Director of Housing and Project Manager will continue to be developed and implemented. Documentation of non-site-based housing staff members allocation of time to a prope1iy will continue to be implemented and refined. Anticipated Completion: December 31, 2022 ( ongoing) Contact: Jill Lesmerises, Chief Fiscal Officer Michael Tabory, Chief Operating Officer

View Audit 26553

Finding 31248 (2022-002)

None 2022

Newbury Elderly Housing, Inc.

NH

HUD Housing Programs Reporting

Finding 2022-002: Plan: Director of Housing will monitor/review a 10% sample of all recertifications. Program staff will proactively ask for peer review or program director review of any recertifications with complex income and rent calculations. Ongoing training will continue for all program staff....

Finding 2022-002: Plan: Director of Housing will monitor/review a 10% sample of all recertifications. Program staff will proactively ask for peer review or program director review of any recertifications with complex income and rent calculations. Ongoing training will continue for all program staff. Anticipated Completion: December 31 , 2022 ( ongoing) Contact: Jill Lesmerises, Chief Fiscal Officer Michael Tabory, Chief Operating Officer 35

View Audit 26553

Finding 31247 (2022-001)

None 2022

Newbury Elderly Housing, Inc.

NH

HUD Housing Programs Reporting Internal Control / Segregation of Duties

No corrective action necessary, completed prior to year end. See finding.

View Audit 26553

Finding 31246 (2022-001)

Significant Deficiency 2022

City of Middletown

OH

Subrecipient Monitoring Reporting

CORRECTIVE ACTION PLAN June 30, 2023 City of Middletown, Ohio respectfully submits the following corrective action plan for the year ended December 31, 2022. Name and address of independent public accounting firm: Clark Schaefer Hackett One East Fourth St, Suite 1200 Cincinnati, Ohio 45202 Audit p...

CORRECTIVE ACTION PLAN June 30, 2023 City of Middletown, Ohio respectfully submits the following corrective action plan for the year ended December 31, 2022. Name and address of independent public accounting firm: Clark Schaefer Hackett One East Fourth St, Suite 1200 Cincinnati, Ohio 45202 Audit period: December 31, 2022 The finding from the December 31, 2022 schedule of findings and questioned costs is discussed below. The finding is numbered consistently with the number assigned in the schedule. Findings-Financial Statement Audit None noted Findings-Federal Award Programs Audits Significant Deficiency 2022-001 Reporting - Coronavirus State and Local Fiscal Recovery Funds Recommendation: It was recommended the City improve controls over reporting requirements associated with this program. Action Taken: We concur with the recommendation, and it will be implemented effective 4/30/23 If the there are any questions regarding this plan, please call Samantha Zimmerman, Finance Director, at 513- 425-7872.

View Audit 26943

Finding 31245 (2022-004)

Significant Deficiency 2022

Lac Qui Parle County

MN

Procurement, Suspension & Debarment Internal Control / Segregation of Duties

2022-004 Suspension and Debarment Federal Agency: U.S. Department of Treasury Federal Program Title: COVID-19 Coronavirus State and Local Fiscal Recovery Funds Assistance Listing Number: 21.027 Compliance Requirement Affected: Suspension and Debarment Award Period: Year-Ended December 31, 2022 Typ...

2022-004 Suspension and Debarment Federal Agency: U.S. Department of Treasury Federal Program Title: COVID-19 Coronavirus State and Local Fiscal Recovery Funds Assistance Listing Number: 21.027 Compliance Requirement Affected: Suspension and Debarment Award Period: Year-Ended December 31, 2022 Type of Finding: Significant Deficiency in Internal Control over Compliance and Other Matters Recommendation: We recommend County management design procedures and controls to ensure compliance with suspension and debarment provisions. Before entering into a contract, a check should be performed and retained to support the contractor status. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: The County will implement a process to ensure that reviews over suspension and debarment criteria are documented. Name of the contact person responsible for corrective action plan: Jake Sieg, County Administrator Planned completion date for corrective action plan: December 31, 2023

View Audit 25731

Finding 31240 (2022-002)

Significant Deficiency 2022

Freshwater Education District No. 6004

MN

Allowable Costs / Cost Principles

2022-002 FINDING Contact Person ? Jordan Anderson, Business Manager Corrective Action Plan ? The District will review their payroll procedures to ensure employees are paid the correct amount. Completion Date ? December 27, 2022

View Audit 32539

Finding 31239 (2022-003)

None 2022

Southside Comm Housing CORP - Southside Manor

IL

HUD Housing Programs

Views of Responsible Officials and Planned Corrective Actions: There is no disagreement with the audit finding. Management made an additional deposit to make up for the deficit in August 2022.

View Audit 32324

Finding 31235 (2022-002)

Material Weakness 2022

Benton Harbor Area Schools

MI

Reporting Material Weakness § 200.303 § 200.510

Department: Grants & Finance Condition: The District did not record expenditures to the 2020-21 or 2021-22 grants in a timely manner, and internal controls over expenditures charged were not in place throughout the period during which such charges were incurred. Expenditures reported for the Title ...

Department: Grants & Finance Condition: The District did not record expenditures to the 2020-21 or 2021-22 grants in a timely manner, and internal controls over expenditures charged were not in place throughout the period during which such charges were incurred. Expenditures reported for the Title II, Part A grant in their submission to the Michigan Department of Education?s Financial Information Database (FID) did not agree with expenditures reported in the schedule of expenditures of Federal awards (SEFA) for the same period, as the District did not provide accurate information to the auditors nor did they prepare an accurate SEFA. Corrective Action: Internal controls have been implemented over the purchasing process, all grant expenditures are approved by the Grant Coordinator and Teaching and Learning Department. Grant Coordinator meets on a regular basis with the finance department to ensure that all grant related expenditures are being processed with the correct code and in the correct manner. Any discrepancies that arise are addressed immediately. Person(s) Responsible for Executing Corrective Action: ? Grant Coordinator ? Grant Accountant ? Chief of Teaching and Learning ? Finance Office Designee Anticipated Completion Date: 12/31/22

View Audit 30731

Finding 31234 (2022-001)

Material Weakness 2022

Benton Harbor Area Schools

MI

Questioned Costs Allowable Costs / Cost Principles Internal Control / Segregation of Duties § 200.430

Department: Grants Condition: The District did not maintain adequate support documentation to substantiate salaries and wages charged to the Title I, Part A grant. Corrective Action: At the start of the 2022-23 school year BHAS implemented a new process to monitor staff salaries funded using title...

Department: Grants Condition: The District did not maintain adequate support documentation to substantiate salaries and wages charged to the Title I, Part A grant. Corrective Action: At the start of the 2022-23 school year BHAS implemented a new process to monitor staff salaries funded using title funds. An online platform was created for staff to fill out and submit ?Time and Effort? logs to their building principals for signature All staff funded in this manner were required to attend a 30-minute PD about how to fill out their logs each week and how to submit online to their principals. Once principals reviewed logs, they upload them to a shared drive folder created by building, month, and weekending. Grant Coordinator and Grant Account then reviews folders on a monthly basis and if individual logs are missing a notice is sent to that building principal and individual to complete and submit missing ?Time and Effort? sheet. Person(s) Responsible for Executing Corrective Action: ? Grant Coordinator ? Grant Accountant ? Building Principals ? Funded Staff Member Anticipated Completion Date: 12/31/22

View Audit 30731 Questioned Costs: $1

Finding 31233 (2022-001)

Significant Deficiency 2022

Valley Crossroads, Inc.

UT

HUD Housing Programs Procurement, Suspension & Debarment Allowable Costs / Cost Principles

1. Finding 2022-001 a. Comments on the Finding and Each Recommendation: Management agrees with the finding. b. Action(s) Taken or Planned on the Finding The Corporation will take the following steps: (1) Develop a plan to address staffing and turnover issues: we will work with the HR department to d...

1. Finding 2022-001 a. Comments on the Finding and Each Recommendation: Management agrees with the finding. b. Action(s) Taken or Planned on the Finding The Corporation will take the following steps: (1) Develop a plan to address staffing and turnover issues: we will work with the HR department to develop a plan to address staffing and turnover issues. This may include conducting a salary and benefits review to ensure that we are competitive in the market, providing opportunities for professional development and growth, and creating a positive work environment; (2) Prioritize the completion of annual recertifications: we will work with the team to prioritize the completion of annual recertifications. This will involve allocating additional resources, if necessary, and bringing in outside help to complete the recertifications on time; (3) Develop a monitoring plan: we will develop a monitoring plan to ensure that annual reexaminations are completed on time. This will include regular checks of tenant files and random sampling to ensure compliance with the regulations; (4) Train staff: we will ensure that all staff involved in the annual reexamination process are trained on the importance of completing them on time, the potential consequences of failing to do so, and the regulations and policies related to annual reexaminations; and (5) Implement a tracking system: we will implement a tracking system to ensure that annual reexaminations are completed on time. The system will include reminders for staff and tenants and a process for tracking the progress of each recertification.

View Audit 36537

Finding 31232 (2022-002)

Significant Deficiency 2022

Central Peninsula General Hospital, Inc.

AK

Allowable Costs / Cost Principles Significant Deficiency Matching / Level of Effort / Earmarking

Finding 2022-002: Allowable Costs- Noncompliance and Significant Deficiency in Internal Control over Compliance. Program : Emergency Grants to Address Mental and Substance Use Disorders During Covid -19, Assistance Listing Number: 93.665. Planned Corrective Action Plan : To eliminate human error...

Finding 2022-002: Allowable Costs- Noncompliance and Significant Deficiency in Internal Control over Compliance. Program : Emergency Grants to Address Mental and Substance Use Disorders During Covid -19, Assistance Listing Number: 93.665. Planned Corrective Action Plan : To eliminate human error due to manual keying, we are now running a canned report out of the payroll system which displays employee name, employee number, and current pay rate in an Excel file . This report is emailed to the Behavioral Health supervisor who prepares the payroll portion for each grant. Completion Date : Already implemented. Contact: Nicki McKinney, Controller (nmckinney@cpgh .org)

View Audit 34916

Finding 31215 (2022-002)

None 2022

Town of Winchendon, Massachusetts

MA

Questioned Costs Period of Performance Subrecipient Monitoring § 200.309

Condition: Invoices and payroll were charged for services performed prior to the approval dates by the pass-through agency. Corrective Action Planned: Town Accountant and School central office staff have worked together to correctly monitor award approval dates to ensure that goods and services char...

Condition: Invoices and payroll were charged for services performed prior to the approval dates by the pass-through agency. Corrective Action Planned: Town Accountant and School central office staff have worked together to correctly monitor award approval dates to ensure that goods and services charged to federal grants occur during the period of performance. Anticipated Completion Date: 2022-2023 school year Contact: Thad King, Superintendent of Schools

View Audit 33701 Questioned Costs: $1

Finding 31214 (2022-001)

None 2022

Town of Winchendon, Massachusetts

MA

Subrecipient Monitoring Period of Performance Reporting § 200.344

Condition: Final financial reports were not filed in a timely manner for a Special Education Cluster grant. Corrective Action Planned: To date all grants required to be closed out have been completed. Anticipated Completion Date: 2022-2023 school year Contact: Thad King, Superintendent of Schools

View Audit 33701

Finding 31213 (2022-002)

None 2022

Nauset Regional School District

MA

Questioned Costs Reporting Subrecipient Monitoring

The District will enhance the documentation surrounding aspects of Grant compliance and formalize the documentation for approval by the School Committee. The District will adhere to the recommendation that all documentation related to the audit, including preparation of the SEFA, is prepared in a ti...

The District will enhance the documentation surrounding aspects of Grant compliance and formalize the documentation for approval by the School Committee. The District will adhere to the recommendation that all documentation related to the audit, including preparation of the SEFA, is prepared in a timely manner in order to ensure required deadlines are met.

View Audit 31438 Questioned Costs: $1

Finding 31212 (2022-001)

Significant Deficiency 2022

Nauset Regional School District

MA

Questioned Costs Allowable Costs / Cost Principles Subrecipient Monitoring

The District will enhance the documentation surrounding aspects of Grant compliance and formalize the documentation for approval by the School Committee. The District will adhere to ensure that all documentation for "after-the-fact" time and effort certifications are obtained and monitored on file i...

The District will enhance the documentation surrounding aspects of Grant compliance and formalize the documentation for approval by the School Committee. The District will adhere to ensure that all documentation for "after-the-fact" time and effort certifications are obtained and monitored on file in a timely manner.

View Audit 31438 Questioned Costs: $1

Finding 31209 (2022-001)

Significant Deficiency 2022

Puerto Rico Department of Justice

PR

Allowable Costs / Cost Principles Reporting Significant Deficiency

Below we break down the Action Plan to address finding 2022-001. We must begin our comments by informing that, on December 28, 2022, the PRDOJ formalized a professional services contract number 2023-000067 with the company Aquino, De Cordova, Alfaro & Co., LLP (Independent Auditors) to carry out th...

Below we break down the Action Plan to address finding 2022-001. We must begin our comments by informing that, on December 28, 2022, the PRDOJ formalized a professional services contract number 2023-000067 with the company Aquino, De Cordova, Alfaro & Co., LLP (Independent Auditors) to carry out the Agency financial audit process for fiscal year 2021-2022. The clause number six of the contract required that the Independent Auditors submitted on or before March 31, 2023, the final Single Audit Report required as part of the audit process. However, the PRDOJ was obliged to extend the term of the contract because the Independent Auditors could not complete the contracted services and render the Single Audit Report within the stipulated term. The Independent Auditors indicated that the delay in the delivery of the Single Audit Report was since the audit process could not be started until the contract was signed and that the information was not received in a timely manner. Despite the reasons stated by the Independent Auditors, the reality is that the Independent Auditors undertook the contractual clauses agreed in the contract and between them, the agreement to submit the final Single Audit on or before March 31, 2023. Pursuant to the provisions of contract number 2023-000067, the administration of the PRDOJ was under the understanding that the Independent Auditors would comply with the delivery term of the SingleAudit Report within the agreed term. In this way, we ensured that we hired a firm that complied with the term to submit the Single Audit Report to the Federal Audit Clearinghouse provided in federal statute 45 CFR sec. 75.512. However, it is not until the end of the month of March that we become aware that the Independent Auditors could not meet the deadline of submitting the Single Audit Report. As a result of this, the PRDOJ had to extend the contract so that the Independent Auditors could complete the Single Audit Report, take internal measures to alleviate and address the delay, and submit the PRDOJ's Single Audit Report for fiscal year 2021 to the Federal Audit Clearinghouse. Under the contextual framework outlined above, we inform our corrective action plan to finding number 2022-01 presented in the Single Audit Report. First, the PRDOJ requested in June several proposals from Independent Auditors to carry out the Agency?s financial audit process for the 2022-2023 fiscal year. Consequently, a firm of Independent Auditors was selected, and we requested all the information and documentation required at the federal and state level to contract with the government. The contract was drafted in July and will soon be signed. In addition, the new contract provides that the Independent Auditor must submit the Single Audit Report to the PRDOJ on or before March 1, 2024. In this way, the PRDOJ will have the Single Audit Report in advance and, in this way, ensure that the document is submitted before March 31, 2024, to the Federal Audit Clearinghouse.This initiative goes hand in hand with the elaboration of a rigorous and meticulous work plan between the PRDOJ and the Independent Auditors with the delivery dates and exchange of information for the preparation of the Single Audit Report. The work plan provides that the audit process will begin as soon as the contract is signed in early August. For its part, the PRDOJ must submit all the required information to the Independent Auditors before the end of December. ? Regarding the internal administrative aspects of the PRDOJ to comply with this corrective action plan, we inform that we have designated an employee of the Agency to ensure that all our dependencies and their directors submit all the information required to the Independent Auditors on time on the stipulated dates. This includes, but is not limited to, all information in the preliminary PBC and any additional information that is required by the Independent Auditors. ? Likewise, this PRDOJ employee will serve as a link between the firm of Independent Auditors and the agencies of the agency that request information and documentation. Lastly, the PRDOJ official will ensure that the Independent Auditors firm submits the Single Audit Report to the Federal Audit Clearinghouse before March 31, 2024.This is a comprehensive corrective action plan that we have prepared in coordination with all the dependencies of the PRDOJ to guarantee faithful compliance with federal statutes.

View Audit 31223

Finding 31198 (2022-005)

Material Weakness 2022

Housing Authority of Kansas City, Missouri

MO

Questioned Costs Special Tests & Provisions Material Weakness

Finding 2022 ? 005 Federal Agency: U.S. Department of Housing and Urban Development Federal Program Name: Housing Voucher Cluster Assistance Listing Number: 14.871/14.879 Federal Award Identification Number and Year: MO002VO - 2022 Award Period: January 1, 2022 ? December 31, 2022 Compliance Require...

Finding 2022 ? 005 Federal Agency: U.S. Department of Housing and Urban Development Federal Program Name: Housing Voucher Cluster Assistance Listing Number: 14.871/14.879 Federal Award Identification Number and Year: MO002VO - 2022 Award Period: January 1, 2022 ? December 31, 2022 Compliance Requirement: Special Tests and Provisions ? Housing Quality Standards (HQS) Enforcement Type of Finding: Material Weakness in Internal Control over Compliance Material Noncompliance Condition: The Authority did not require HQS deficiencies to be corrected within the required timeframe. The Authority did not abate units that failed to correct HQS deficiencies within the required timeframe. Exceptions were noted in 9 out of 40 failed inspections: The Authority did not require the owner to correct HQS deficiencies within the required timeframe for 2 out of 40 failed inspections. The Authority did not properly abate HAP for 7 out of 40 failed inspections. Cause: The Authority did not reinspect or abate units timely. Auditors Recommendation: Recommend the Authority implements controls to ensure that the Authority requires HQS deficiencies to be corrected within the timeframe set forth by 24 CFR section 982.404(a). Recommend the Authority implements controls to ensure abatement is timely for units that do not correct the cited HQS deficiencies within the required timeframe. Response to Finding 2022-005 The Authority generally concurs with the auditor?s findings and recommendations. The 2022 Audit included the review of 40 files tested for Housing Quality Standards (HQS) Enforcement requirements. Exceptions were noted in nine instances: The Authority did not require the owner to correct HQS deficiencies within the required timeframe for 2 out of 40 failed inspections. The Authority did not properly abate HAP for 7 out of 40 failed inspections. Action Taken: A Corrective Action Plan has been developed to ensure HQS Inspection enforcement is applied at the time of deficiency and if not corrected proper abatement notice being sent out to Landlord and tenant. Implementation began on August 1, 2023. To provide consistency, increase staff knowledge and reduce errors, training will be held immediately and then annually thereafter. In addition, we will increase quality control to monitor letters being sent out to landlords and tenants for the deficiencies that occurred in the unit. The process that will be in place is as follows: 1. Letter sent out to landlord and tenant notifying them the deficiencies in the unit. A time frame of 30 days will be set for the repairs to be made with a re-inspection date already set to verify repairs. 2. If the repairs are not made at that time, an abatement a letter will be sent out to the landlord and tenant notifying them that the HAP payment will stop the first day of the following month which would be a minimum of 30 days. At this time a letter will be sent to the tenant notifying them that a voucher will be issued to them to move to a more suitable unit. 3. If the repairs are not made at the end of the 30-day abatement period the HAP contract will terminate along with the HAP payment. A termination of HAP letter will be sent out to the landlord and tenant for the current unit that the tenant is living in. To monitor the events taking place above, a report will be submitted twice a month before our check run by the supervisor and manager of the inspection department to the HCV Director and Compliance department to monitor the HQS and abatement process. This quality insurance will ensure that all abatements and HQS deficiencies are being processed according to compliance. Name(s) of the contact person(s) responsible for corrective action: Edwin Lowndes Executive Director Planned completion date for corrective action plan: March 1, 2024.

View Audit 28025 Questioned Costs: $1

Finding 31197 (2022-004)

Significant Deficiency 2022

Housing Authority of Kansas City, Missouri

MO

Special Tests & Provisions HUD Housing Programs Significant Deficiency

Finding 2022 ? 004 Federal Agency: U.S. Department of Housing and Urban Development Federal Program Name: Housing Voucher Cluster Assistance Listing Number: 14.871/14.879 Federal Award Identification Number and Year: MO002VO ? 2022 Award Period: January 1, 2022 ? December 31, 2022 Compliance Require...

Finding 2022 ? 004 Federal Agency: U.S. Department of Housing and Urban Development Federal Program Name: Housing Voucher Cluster Assistance Listing Number: 14.871/14.879 Federal Award Identification Number and Year: MO002VO ? 2022 Award Period: January 1, 2022 ? December 31, 2022 Compliance Requirement: Special Tests and Provisions ? Reasonable Rent Type of Finding: ? Significant Deficiency in Internal Control over Compliance ? Other Matters Condition: The Authority did not perform rent reasonableness procedures in accordance with program compliance requirements. Exceptions noted in 2 out of 80 files tested for reasonable rent requirements: Documentation for the determination of rent was not maintained for 1 sample. The contract rent did not agree to the rent determined reasonable for 1 sample. Cause: The Authority did not maintain documentation utilized to determine rent reasonableness. Auditors Recommendation: Recommend that the Authority implements controls to ensure that documentation is maintained in accordance with rent reasonableness requirements. Response to Finding 2022-004 The Authority generally concurs with the auditor?s findings and recommendations. The 2022 Audit included the review of 80 files tested for reasonable rent requirements. Exceptions were noted in two instances, documentation for the determination of rent was not maintained for 1 sample; and the contract rent did not agree to the rent determined reasonable for 1 sample. Action Taken: A Corrective Action Plan has been developed to ensure that documentation is maintained in accordance with rent reasonableness requirements. Implementation began on August 1, 2023. To provide consistency, increase staff knowledge and reduce errors, training will be held immediately and then annually thereafter. In addition, HAKC will increase quality control file reviews and conduct such reviews on a more frequent basis to identify errors sooner and address the cause of errors quickly to prevent systemic errors. Errors will be identified by error type and the person who made the error. Patterns of errors will be monitored, and additional training provided for similar error types that are frequently repeated and persons who are identified as frequently making errors. Quality reviews will be conducted for all files to ensure that all required documents are in the files. It is anticipated it will take one year to complete the initial file review. After the initial review files will be selected randomly and reviewed according to an established quality control schedule. Each team member will be responsible to collect missing documents identified when completing an annual recertification, interim recertification or change of unit. Name of the contact person responsible for corrective action: Edwin Lowndes Executive Director Planned completion date for corrective action plan: March 1, 2024.

View Audit 28025

Finding 31196 (2022-003)

Significant Deficiency 2022

Housing Authority of Kansas City, Missouri

MO

HUD Housing Programs Special Tests & Provisions Significant Deficiency

Finding 2022 ? 003 Federal Agency: U.S. Department of Housing and Urban Development Federal Program Name: Housing Voucher Cluster Assistance Listing Number: 14.871/14.879 Federal Award Identification Number and Year: MO002VO - 2022 Award Period: January 1, 2022 ? December 31, 2022 Compliance Require...

Finding 2022 ? 003 Federal Agency: U.S. Department of Housing and Urban Development Federal Program Name: Housing Voucher Cluster Assistance Listing Number: 14.871/14.879 Federal Award Identification Number and Year: MO002VO - 2022 Award Period: January 1, 2022 ? December 31, 2022 Compliance Requirement: Special Tests and Provisions ? Housing Assistance Payment (HAP) Type of Finding: ? Significant Deficiency in Internal Control over Compliance ? Other Matters- Condition: The Authority did not ensure the monthly HAP payment agreed between the HUD- 50058, HAP contract, and HAP register in accordance with program compliance requirements. Exceptions were noted in 2 out of 40 files tested for Housing Assistance Payments. In both instances, the HAP register did not agree to the HUD-50058 and HAP contract. Cause: The Authority did not identify variances between the HUD-50058, HAP contract, and HAP register. Auditors Recommendation: Recommend that the Authority implements controls to ensure the HAP paid agrees to the HUD-50058 and HAP contract. Response to Finding 2022-003 The Authority generally concurs with the auditor?s findings and recommendations. The 2022 Audit included the review of 40 files tested for Housing Assistance Payments. In two instances, the HAP register did not agree to the HUD-50058 and HAP contract. Action Taken: A Corrective Action Plan has been developed to ensure the HAP register agrees with the HUD 50058 and HAP contract. Implementation began on August 1, 2023. To provide consistency for the HUD 50058 HAKC will increase staff knowledge and reduce errors through training. This will be held immediately and then annually thereafter. In addition, we will increase quality control file reviews and conduct such reviews on a more frequent basis to identify errors sooner and address the cause of errors quickly to prevent systemic errors. Errors will be identified by error type and the person who made the error. Patterns of errors will be monitored, and additional training provided for similar error types that are frequently repeated and persons who are identified as frequently making errors. In regard to the HAP contract, going forward any new HAP contracts will be reviewed by the supervisor of the department before the HAP is enforced. The supervisor will sign the HAP contract if no errors are found. With this quality control in effect, the HAP contract will match the HAP register. Quality reviews will also be conducted by compliance to check the HAP contracts to make sure they comply. Name of the contact person responsible for corrective action: Edwin Lowndes Executive Director Planned completion date for corrective action plan: March 1, 2024.

View Audit 28025

Finding 31195 (2022-002)

Significant Deficiency 2022

Housing Authority of Kansas City, Missouri

MO

HUD Housing Programs Reporting Significant Deficiency

Finding 2022 ? 002 Federal Agency: U.S. Department of Housing and Urban Development Federal Program Name: Housing Voucher Cluster Assistance Listing Number: 14.871/14.879 Federal Award Identification Number and Year: MO002VO - 2022 Award Period: January 1, 2022 ? December 31, 2022 Compliance Require...

Finding 2022 ? 002 Federal Agency: U.S. Department of Housing and Urban Development Federal Program Name: Housing Voucher Cluster Assistance Listing Number: 14.871/14.879 Federal Award Identification Number and Year: MO002VO - 2022 Award Period: January 1, 2022 ? December 31, 2022 Compliance Requirement: Reporting ? PIH Information Center (PIC) Reporting Type of Finding: ? Significant Deficiency in Internal Control over Compliance ? Other Matters Condition: The Authority did not satisfy PIC reporting requirements in accordance with 24 CFR Part 908. Exceptions were noted in 4 out of 40 recertifications. In each of the four instances, the HUD-50058 was unable to be located within the PIC system. Cause: The Authority did not identify recertifications that failed to upload to the PIC system. Auditor?s Recommendations: Recommend that the Authority implement controls to ensure HUD-50058 recertifications are uploaded to PIC. Response to Finding 2022-002 The Authority generally concurs with the auditor?s findings and recommendations. The 2022 Audit included the review of 40 Recertifications and identified four instances where the HUD- 50058 was not located within the PIC system. Action Taken: A Corrective Action Plan has been developed to ensure HUD-50058 recertifications are uploaded to PIC. Implementation began on August 1, 2023. To provide consistency, the plan is to upload the HUD-50058 sixty days in advance of the recertification date. HAKC will upload the HUD-50058 every week to ensure recertifications are registered in PIC. In addition, we will increase quality control file reviews and conduct such reviews on a more frequent basis to identify errors sooner and address the cause of errors quickly to prevent systemic errors. Errors will be identified by error type and the person who made the error. Patterns of errors will be monitored, and additional training provided for similar error types that are frequently repeated and persons who are identified as frequently making errors. Name of the contact person responsible for corrective action: Edwin Lowndes Executive Director. Planned completion date for corrective action plan: March 1, 2024.

View Audit 28025

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