Corrective Action Plans

Finding 37915 (2022-002)

Significant Deficiency 2022

NY

Reporting Subrecipient Monitoring

Family Services of Westchester, Inc. Corrective Action Plan February 27, 2023 U.S. Department of Health and Human Services Family Services of Westchester, Inc. respectfully submits the following corrective action plan for the year ended June 30, 2022. CohnReznick LLP 1301 Avenue ...

Family Services of Westchester, Inc. Corrective Action Plan February 27, 2023 U.S. Department of Health and Human Services Family Services of Westchester, Inc. respectfully submits the following corrective action plan for the year ended June 30, 2022. CohnReznick LLP 1301 Avenue of the Americas New York, NY 10019 Audit Period: June 30, 2022 The findings from the June 30, 2022 schedule of findings and questioned costs is discussed below. The findings are numbered consistently with the number in the schedule. FINDINGS ? FEDERAL AWARDS PROGRAM AUDIT U.S. Department of Health and Human Services, Head Start Cluster: Assistance Listing Number 93.600 SIGNIFICANT DEFICIENCIES Finding 2022-002 ? Reporting Recommendation: We recommend that the Organization register in the Federal Funding and Accountability and Transparency Act Subaward Reporting System (FSRS) and timely report the required subaward information as required by the Transparency Act. Action Taken There is a specific Head Start requirement that all direct subawards with an obligated amount over a $30,000 threshold must be reported as such by no later than the end of the following month of the agreement to FSRS. There was an oversight on the specifics of this requirement resulting in a late report. Going forward, workflow has been amended to take this requirement into account and to submit the report on a timely basis, no later than the end of the following month of the agreement. Completion Date: February 27, 2023 If the U.S Department of Health and Human Services has questions regarding this plan, please call Maria Mazzotta at (914)502-1470. Sincerely yours, Maria Mazzotta Chief Finance Officer

View Audit 34307

Finding 37914 (2022-001)

Significant Deficiency 2022

Family Services of Westchester, Inc.

NY

Subrecipient Monitoring Reporting Internal Control / Segregation of Duties

Family Services of Westchester, Inc. Corrective Action Plan February 27, 2023 U.S. Department of Health and Human Services Family Services of Westchester, Inc. respectfully submits the following corrective action plan for the year ended June 30, 2022. CohnReznick LLP 1301 Avenue ...

Family Services of Westchester, Inc. Corrective Action Plan February 27, 2023 U.S. Department of Health and Human Services Family Services of Westchester, Inc. respectfully submits the following corrective action plan for the year ended June 30, 2022. CohnReznick LLP 1301 Avenue of the Americas New York, NY 10019 Audit Period: June 30, 2022 The findings from the June 30, 2022 schedule of findings and questioned costs is discussed below. The findings are numbered consistently with the number in the schedule. FINDINGS ? FEDERAL AWARDS PROGRAM AUDIT U.S. Department of Health and Human Services, Head Start Cluster: Assistance Listing Number 93.600 SIGNIFICANT DEFICIENCIES Finding 2022-001 ? Inaccurate SEFA, Reporting Recommendation: We recommend that the Organization strengthen its policies and procedures for the identification of Federal awards, including pass-through federal funds to subrecipients, to ensure a complete and accurate SEFA is prepared in a timely manner and in accordance with the requirements of the Uniform Guidance. Action Taken There was an oversight in the completion of the SEFA resulting in not including passthrough federal funds given to subrecipients. Going forward, workflow has been amended to take into account any subawards given to subrecipients of federal funds, to ensure inclusion of the information in the SEFA. Completion Date: February 27, 2023 If the U.S Department of Health and Human Services has questions regarding this plan, please call Maria Mazzotta at (914)502-1470. Sincerely yours, Maria Mazzotta Chief Finance Officer

View Audit 34307

Finding 37913 (2022-002)

Significant Deficiency 2022

Butler County Health Center

MO

Internal Control / Segregation of Duties Subrecipient Monitoring Significant Deficiency

FINDINGS AND QUESTIONED COSTS ? MAJOR FEDERAL AWARD PROGRAMS AUDIT DEPARTMENT OF AGRICULTURE (USDA) 2022-002 Special Supplemental Nutrition Program for Women, Infants, and Children (WIC) ? Assistance Listing No. 10.557; Contract No. ERS04521039; Grant period ? Year Ended December 31, 2021. Signif...

FINDINGS AND QUESTIONED COSTS ? MAJOR FEDERAL AWARD PROGRAMS AUDIT DEPARTMENT OF AGRICULTURE (USDA) 2022-002 Special Supplemental Nutrition Program for Women, Infants, and Children (WIC) ? Assistance Listing No. 10.557; Contract No. ERS04521039; Grant period ? Year Ended December 31, 2021. Significant Deficiency: As discussed at Finding 2021-001, adequate segregation of duties is not present with Butler County Health Center, including duties within the WIC federal program. Employee turnover of key positions recently impacts the application of adequate segregation of duties. These areas should be reviewed periodically, and consideration given to improving the segregation of duties within the Center. CORRECTIVE ACTION PLAN The Operations Director is the lead staff on Financial Statements. Financial Statements will be filed on a shared "G" drive with access allowed to the Operations Director, Administrator and Office Manager. Al l employee passwords will be submitted to the Operations Director and placed on a shared G" drive with access allowed to the Administrator. This action will be done annually. The Administrator and Operations Director receives a hard copy of the monthly Financial Statements from KMT. This Financial Statement is kept in a binder in the Operations Director's Office where the Administrator and Office Manager have access. The Butler County Health Department will obtain in writing the objectives of the services that KMT will provide and what they are responsible for, as well as what the Health Department is responsible for in regard to making sure the books are complete and accurate. Contact Person: Emily Goodin, Administrator

View Audit 31352

Finding 37912 (2022-003)

Significant Deficiency 2022

Butler County Health Center

MO

Internal Control / Segregation of Duties Subrecipient Monitoring Significant Deficiency

DEPARTMENT OF HEALTH AND SENIOR SERVICES 2022-003 Immunization Cooperative Agreements - Assistance Listing No. 93.268; Grant period ? Year Ended December 31, 2022. Significant Deficiency: As discussed at Finding 2022-001, adequate segregation of duties is not present with Butler County Health C...

DEPARTMENT OF HEALTH AND SENIOR SERVICES 2022-003 Immunization Cooperative Agreements - Assistance Listing No. 93.268; Grant period ? Year Ended December 31, 2022. Significant Deficiency: As discussed at Finding 2022-001, adequate segregation of duties is not present with Butler County Health Center, including duties within the Immunization Cooperative Agreements federal program. These areas should be reviewed periodically, and consideration given to improving the segregation of duties within the Center. CORRECTIVE ACTION PLAN The Operations Director is the lead staff on Financial Statements. Financial Statements will be filed on a shared "G" drive with access allowed to the Operations Director, Administrator and Office Manager. All employee passwords will be submitted to the Operations Director and placed on a shared G" drive with access allowed to the Administrator. This action will be done annually. The Administrator and Operations Director receives a hard copy of the monthly Financial Statements from KMT. This Financial Statement is kept in a binder in the Operations Director's Office where the Administrator and Office Manager have access. The Butler County Health Department will obtain in writing the objectives of the services that KMT will provide and what they are responsible for, as well as what the Health Department is responsible for in regard to making sure the books are complete and accurate. Contact Person: Emily Goodin, Administrator

View Audit 31352

Finding 37906 (2022-004)

Significant Deficiency 2022

Bangor Public Schools

MI

Cash Management Significant Deficiency

The District intends to implement policy addressing document retention as well as providing a centralized location for approved personnel to access information related to the financial reporting process. At the conclusion of the audit process, the District?s full population of expenditures related t...

The District intends to implement policy addressing document retention as well as providing a centralized location for approved personnel to access information related to the financial reporting process. At the conclusion of the audit process, the District?s full population of expenditures related to the Education Stabilization Fund were found to be for allowable cost and activities.

View Audit 37968

Finding 37904 (2022-001)

Significant Deficiency 2022

City of Idaho Falls, Idaho

ID

Reporting Significant Deficiency

Forms SF-271 and SF-425 are created annually by our engineering consultant. Airport Management will review the work of our consultant to ensure the reports are completed timely and sent to FAA before the end of the calendar year.

View Audit 30940

Finding 37902 (2022-001)

Significant Deficiency 2022

Sacred Heart Manor, Inc.

OH

Questioned Costs Internal Control / Segregation of Duties Reporting

CORRECTIVE ACTION PLAN September 29, 2022 U.S. Department of Housing and Urban Development Sacred Heart Manor, Inc. respectively submits the following corrective action plan for the year ended June 30, 2022. Name and address of independent public accounting firm: HW&Co. 23240 Chagrin Blvd, Suite...

CORRECTIVE ACTION PLAN September 29, 2022 U.S. Department of Housing and Urban Development Sacred Heart Manor, Inc. respectively submits the following corrective action plan for the year ended June 30, 2022. Name and address of independent public accounting firm: HW&Co. 23240 Chagrin Blvd, Suite 700 Cleveland, OH 44122-5450 Audit period: July 1, 2021 through June 30, 2022 The finding from the June 30, 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 AND FEDERAL AWARD PROGRAMS AUDIT DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT 2022-001 Supportive Housing for the Elderly ? CFDA #14.157 Recommendation: Sacred Heart Manor, Inc. should deposit underfunded amount into the replacement reserve account. Action Taken: Sacred Heart Manor, Inc. agrees with the recommendation. Management has corrected all items and completed the deposit into the replacement reserve account on September 29, 2022. If the U.S. Department of Housing and Urban Development has questions regarding this plan, please call Fred Berry at 330-384-1555

View Audit 37652 Questioned Costs: $1

Finding 37900 (2022-001)

Material Weakness 2022

Foxfire High School

OH

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

Finding Number: 2022-001 Planned Corrective Action: Improve internal controls to make sure the clauses concerning prevailing wage rate are stated in contract if needed and contractor submit copies of payroll records to confirm that prevailing wages were paid. Anticipated Completion Date: 01/09/2023 ...

Finding Number: 2022-001 Planned Corrective Action: Improve internal controls to make sure the clauses concerning prevailing wage rate are stated in contract if needed and contractor submit copies of payroll records to confirm that prevailing wages were paid. Anticipated Completion Date: 01/09/2023 Responsible Contact Person: Lewis Sidwell, Treasurer

View Audit 36938

Finding 37897 (2022-004)

Significant Deficiency 2022

Antonio B. Won Pat International Airport Authority, Guam

GU

Matching / Level of Effort / Earmarking

Finding No. 2022-004 Period of Performance Responsible Personnel: Danielle E. Camacho, Acting Comptroller Refer to the response noted in Finding No. 2022-003, which relates to this finding.

View Audit 36253

Finding 37896 (2022-003)

Significant Deficiency 2022

Antonio B. Won Pat International Airport Authority, Guam

GU

Matching / Level of Effort / Earmarking

Finding No. 2022-003 Matching, Level of Effort, Earmarking Responsible Personnel: Danielle E. Camacho, Acting Comptroller This finding is a result of a grant amendment having only covered a change in the grant amount and not the period of performance. The Authority had requested for an amendment t...

Finding No. 2022-003 Matching, Level of Effort, Earmarking Responsible Personnel: Danielle E. Camacho, Acting Comptroller This finding is a result of a grant amendment having only covered a change in the grant amount and not the period of performance. The Authority had requested for an amendment to AIP 101 on December 15, 2020?nine months prior to the period of performance (POP) expiration. The amendment was issued by the Federal Aviation Administration (FAA) on January 4, 2022?over three months after the POP expiration. Finding No. 2022-003 Matching, Level of Effort, Earmarking, continued Upon clarification with the FAA, the Authority took corrective measures to address the miscommunication on the agreement extension and has settled the issue. The Authority will ensure it reviews the terms of grant amendments for critical information, such as changes to POP dates, to reinforce its current controls over compliance with applicable matching, level of effort, and earmarking requirements to prevent similar findings in the future.

View Audit 36253

Finding 37893 (2022-002)

Material Weakness 2022

Casa De Amparo

CA

Allowable Costs / Cost Principles Reporting

Condition: In testing performed over several accounts, the Auditors identified multiple deficiencies that were the result of missing review processes over transactions and financial statement close procedures. Refer to finding 2022-001 for more details. Views of Responsible Officials and Planned C...

Condition: In testing performed over several accounts, the Auditors identified multiple deficiencies that were the result of missing review processes over transactions and financial statement close procedures. Refer to finding 2022-001 for more details. Views of Responsible Officials and Planned Corrective Actions: Management concurs with the finding. The Organization revised its review procedures so that they are not impacted by employee turnover. The revised process includes cross-training multiple employees on each critical review process. These steps should correct the deficiency. Contact person: Scott Ryder, Consulting Chief Financial Officer, 760-566-3581. Proposed Completion Date: This action plan was completed on August 31, 2022.

View Audit 35205

Finding 37888 (2022-001)

Material Weakness 2022

Guam Power Authority

GU

Reporting

SUBJECT: Corrective Action Plan for Finding No. 2022-001 In response to Audit Finding 2022-001 in the area of Reporting, GPA offers the following corrective action plan to address the issue. GPA personnel responsible for managing federal grant programs and reporting to the grantor agencies will be...

SUBJECT: Corrective Action Plan for Finding No. 2022-001 In response to Audit Finding 2022-001 in the area of Reporting, GPA offers the following corrective action plan to address the issue. GPA personnel responsible for managing federal grant programs and reporting to the grantor agencies will be trained on how to prepare the standard forms required for each grant. Personnel will also be notified and encouraged to attend grants management trainings. An additional layer of review by the Controller, Assistant Chief Financial Officer or the Chief Financial Officer will be added to ensure that financial data being reported is accurate before these documents can be filed. The Controller, Lenora M Sanz, will be responsible for providing this training by December 31, 2023. Should you have any questions please contact Lenora Sanz at (671) 648-3122 or me at (671) 648-3119.

View Audit 36252

Finding 37887 (2022-001)

Significant Deficiency 2022

Omak School District No. 19

WA

Subrecipient Monitoring Equipment & Real Property Management Procurement, Suspension & Debarment

Finding ref number:2022-001 Finding caption:The District did not have adequate internal controls over allowable activities and costs, and restricted purpose requirements. Name, address, and telephone of District contact person: Scott Haeberle 619 W. Bartlett Avenue Omak, WA 98841 (509) 826-0320 C...

Finding ref number:2022-001 Finding caption:The District did not have adequate internal controls over allowable activities and costs, and restricted purpose requirements. Name, address, and telephone of District contact person: Scott Haeberle 619 W. Bartlett Avenue Omak, WA 98841 (509) 826-0320 Corrective action the auditee plans to take in response to the finding: To ensure future compliance with Federal requirements related to the Emergency Connectivity Fund grant, the District will confirm and document the unmet needs for all students or staff that receive use of equipment or services funded by the program. All staff associated with the grant will be provided with the requirements for determining unmet needs and eligibility for claim. Anticipated date to complete the corrective action: September 1, 2023

View Audit 35202

Finding 37886 (2022-002)

None 2022

Ryder Assisted Care Ii, Inc.

PR

HUD Housing Programs Internal Control / Segregation of Duties

Finding Number: 2022-2 The inspections had not been carried out due to different situations with tenants. The Project Administrator was re oriented about the importance of complying with this annual physical inspection requirement.

View Audit 32670

Finding 37885 (2022-001)

None 2022

Ryder Assisted Care Ii, Inc.

PR

HUD Housing Programs Subrecipient Monitoring Allowable Costs / Cost Principles

Finding Number: 2022-1 Payment of invoices before 30 days of received. The project staff was oriented about the importance of make a payment 30 days after receive the invoice. The plan of correction empathizes in verify weekly the supplier?s invoices and establish a payment date not more than 30 day...

Finding Number: 2022-1 Payment of invoices before 30 days of received. The project staff was oriented about the importance of make a payment 30 days after receive the invoice. The plan of correction empathizes in verify weekly the supplier?s invoices and establish a payment date not more than 30 days of the invoice was received.

View Audit 32670

Finding 37884 (2022-004)

Significant Deficiency 2022

County of Champaign, Illinois

IL

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

The County disagrees with regard to the inclusion of this assessment in the schedule of findings. The County adheres to the provisions outlined in 2 CFR section 180.995, which imposes a comprehensive verification process to ascertain that vendors are not under suspension or debarment prior to engagi...

The County disagrees with regard to the inclusion of this assessment in the schedule of findings. The County adheres to the provisions outlined in 2 CFR section 180.995, which imposes a comprehensive verification process to ascertain that vendors are not under suspension or debarment prior to engaging in any contractual agreements. Federal guidance does not mandate the retention of documentation as evidence of the review conducted on SAM.gov's exclusions. Furthermore, in compliance with periodic federal reporting requirements, the County is obligated to report all transactions with vendors that exceed the threshold of $25,000. In this reporting, the County is obliged to furnish the vendors' business information, along with their Unique Entity Identifier (UEI). It is important to emphasize that any reimbursement requests as part of this reporting are reduced by any payments made to vendors who are suspended or disbarred. In light of the foregoing, the Auditor's Office recommends each department designate a staff member tasked with the responsibility of conducting the initial suspension and debarment verification for any vendor considered for procurement or agreements exceeding the aforementioned threshold. The results of this verification should be documented, and a screenshot or excerpt of the search should be securely stored in cloud support. The Auditor's Office will perform a thorough review of these records during the audit of requisitions or invoices.

View Audit 32669

Finding 37883 (2022-001)

Significant Deficiency 2022

Housing Authority of the County of Contra Costa

CA

Questioned Costs HUD Housing Programs Significant Deficiency

Corrective Action Plan For the year ended March 31, 2022 U.S. Department of Housing and Urban Development: The Housing Authority of the County of Contra Costa respectfully submits the following corrective action plan for the year ended March 31, 2022. Auditor: Novogradac and Company, LLP Ce...

Corrective Action Plan For the year ended March 31, 2022 U.S. Department of Housing and Urban Development: The Housing Authority of the County of Contra Costa respectfully submits the following corrective action plan for the year ended March 31, 2022. Auditor: Novogradac and Company, LLP Certified Public Accountants 1144 Hooper Avenue Suite 203 Toms River, New Jersey 08753 The findings from the March 31, 2022 schedule of findings and questioned costs are discussed below. The findings are numbered consistently with the numbers assigned in the schedule. Findings ? Federal Award Program Audit Finding 2022-001 Federal Agency: U.S. Department of Housing and Urban Development Federal Program Titles: Section 8 Housing Choice Vouchers Program Federal Catalog Numbers: 14.871 Noncompliance ? N. Special Tests and Provisions ? Housing Quality Standards Non Compliance Material to the Financial Statements: No Significant Deficiency in Internal Control over Compliance for Special Tests and Provisions Findings ? Federal Award Program Audit (continued) Finding 2022-001 (continued) Criteria: Housing Quality Standards Inspections. The PHA must inspect the unit leased to a family at least annually to determine if the unit meets the Housing Quality Standards (HQS) and the PHA must conduct quality control re-inspections. The PHA must prepare a unit inspection report (24 CFR sections 982.158(d) and 982.405(b)). For units that fail inspection the PHA must correct all life threatening HQS deficiencies within 24 hours and all other deficiencies within 30 days. On May 4, 2021, HUD issued Notice PIH 2021-14(HA). In this notice, HUD recognized the unprecedented challenge the COVID-19 pandemic poses to PHAs in carrying out the most essential of their HCV program administrative responsibilities. The notice allowed for the Authority to rely on the owner's certification that the owner has no reasonable basis to have knowledge that life-threatening conditions exist in the unit or units in questions. At minimum, the PHA must require the owner?s certification. However, the PHA may add other requirements or conditions in addition to the owner?s certification, but is not required to do so. The PHA is required to conduct an HQS inspection on the unit as soon as reasonably possible but no later than June 30, 2022. Condition: Based upon inspection of the Authority?s files and on discussion with management there were units that did not have annual inspections or owner?s certifications performed during the audit period. Context: Of a sample size of sixty-five (65) tenant files, the following information was unavailable for examination at the time of audit: ? Annual inspection report or owner?s certification was missing in two (2) files Our sample size is statistically valid. Known Questioned Costs: $41,038 Cause: There is significant deficiency in internal controls over the compliance for the special tests and provisions type of compliance related to HQS inspections. The Authority has not properly considered, designed, implemented, maintained and monitored a system of internal controls that assures the program is in compliance. Effect: The Section 8 Housing Choice Vouchers Program is in non-compliance with the with the special tests and provisions type of compliance related to HQS inspections. Recommendation: We recommend the Authority design and implement internal control procedures that will reasonably assure compliance with the Uniform Guidance and the compliance supplement. Views of responsible officials and planned corrective action: The Authority has recognized the deficiencies in the Section 8 Housing Choice Vouchers Program and has implemented internal control procedures in 2022 that will ensure compliance of federal regulations. Those controls consist of the weekly monitoring of two reports generated by the agency business software which identify subsidized units missed by the inspection scheduler. Ingrid Layne, the Director of Assisted Housing will be responsible to implement this corrective action by March 31, 2023. Schedule of Prior Year Federal Audit Findings There were no findings or questioned costs in the prior year. If the U.S. Department of Housing and Urban Development has any questions regarding this plan, please call Ingrid Layne, the Director of Assisted Housing at (925) 957-7010. Sincerely yours, Ingrid Layne, Director of Assisted Housing

View Audit 33397 Questioned Costs: $1

Finding 37881 (2022-001)

Significant Deficiency 2022

Norma Locklear Pitts Senior Community, Inc.

SC

Questioned Costs HUD Housing Programs Subrecipient Monitoring

Comments on the Finding (#2022-001) and Each Recommendation: The Corporation is not in compliance with the terms of the Section 202 Regulatory Agreement. As of September 30, 2022, the residual receipts fund is underfunded by $9,900. Management should obtain HUD approval before making withdrawals fro...

Comments on the Finding (#2022-001) and Each Recommendation: The Corporation is not in compliance with the terms of the Section 202 Regulatory Agreement. As of September 30, 2022, the residual receipts fund is underfunded by $9,900. Management should obtain HUD approval before making withdrawals from the residual receipts fund. Management should transfer $9,900 to the residual receipts fund. Action(s) taken or planned on the finding: Management concurs with the finding and recommendation.

View Audit 32084 Questioned Costs: $1

Finding 37877 (2022-001)

Significant Deficiency 2022

Montello School District

WI

Internal Control / Segregation of Duties Procurement, Suspension & Debarment Matching / Level of Effort / Earmarking

Finding #2022-001 ? Limited Segregation of Duties (Prior Year Finding #2021-001) Condition: The available office staff precludes a proper segregation of duties in the control areas reviewed. Effect: Because of the lack of segregation of duties, errors or irregularities could occur and not be detecte...

Finding #2022-001 ? Limited Segregation of Duties (Prior Year Finding #2021-001) Condition: The available office staff precludes a proper segregation of duties in the control areas reviewed. Effect: Because of the lack of segregation of duties, errors or irregularities could occur and not be detected on a timely basis. Cause: The condition is due to limited staff available. Criteria: Internal controls should be in place that provide adequate segregation of duties. Generally, a system of internal control contemplates separation of duties such that no individual has responsibility to execute a transaction, have physical access to the related assets, and have responsibility or authority to record the transaction. Recommendation: Procedures should be implemented segregating duties among different employees. Management should continue to maintain a working knowledge of matters relating to the district?s operations. Response: We agree with this finding and continue to work to achieve segregation of duties whenever cost effective. The cash disbursements process includes approval of purchase orders and matching of approved purchase orders with invoices. Review of account coding is performed by the district accounting staff. The payroll disbursement process includes approval of timesheets and review of coding on an ongoing basis. The Board of Education reviews budget to actual information along with disbursement information monthly. Contact Person: Cheryl Troost Anticipated Completion: Not applicable

View Audit 32082

Finding 37876 (2022-001)

None 2022

Rcil-Rochester Barrier Free Housing Corporation

MN

HUD Housing Programs

"RCIL - ROCHESTER BARRIER FREE HOUSING CORPORATION" HUD PROJECT NO. 092-11467 CORRECTIVE ACTION PLAN YEAR ENDED SEPTEMBER 30, 2022 DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT RCIL - Rochester Barrier Free Housing Corporation respectfully su...

"RCIL - ROCHESTER BARRIER FREE HOUSING CORPORATION" HUD PROJECT NO. 092-11467 CORRECTIVE ACTION PLAN YEAR ENDED SEPTEMBER 30, 2022 DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT RCIL - Rochester Barrier Free Housing Corporation respectfully submits the following corrective action plan for the year ended September 30, 2022. Name and address of independent public accounting firm: Hinrichs & Associates, Ltd 1000 Shelard Parkway, Suite 110 Minneapolis, MN 55426 Audit Period: September 30, 2022 The findings from the September 30, 2022 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 2022-001: SECTION 223(f), Assistance Listing Number 14.155 One of the tenant files tested contained a mathematical error in computing the household net income in the process of computing the tenant share of monthly rent. Recommendation: The Project should recompute the HUD subsidy from this tenant and make an adjustment on a future monthly HUD billing, if necessary. Action Taken: The Project agrees with the finding. The HUD subsidy will be recomputed using the proper household income. If necessary, the excess amount received to date will reduce a future monthly HUD billing. The finding was corrected in November 2022. If the Department of Housing and Urban Development has questions regarding this plan, please call Sarah Rosser at 952-876-9213.

View Audit 30263

Finding 37875 (2022-003)

Material Weakness 2022

Arts Council of Indianapolis, Inc.

IN

Material Weakness Reporting Internal Control / Segregation of Duties

Finding 2022-03 Close-out Reporting Condition: An effective internal control system was not in place at the Organization to ensure compliance with requirements related to the grant agreement and post-award requirements for closeout and the reporting compliance requirement. Corrective Actions Take...

Finding 2022-03 Close-out Reporting Condition: An effective internal control system was not in place at the Organization to ensure compliance with requirements related to the grant agreement and post-award requirements for closeout and the reporting compliance requirement. Corrective Actions Taken or Planned: Management agrees with the recommendation and has implemented the following steps. General status updates of all federal contracts have been submitted to and accepted by the grantor on a regular basis. However, the Organization overlooked the specific reporting requirements of the federal contract that was completed during the year under audit. To address this issue, the Organization has implemented a checklist of requirements for each federal contract that includes documenting all reporting requirements under the contract and with a step that includes calendaring the reports to ensure deadlines are not missed.

View Audit 37253

Finding 37874 (2022-002)

Material Weakness 2022

Arts Council of Indianapolis, Inc.

IN

Procurement, Suspension & Debarment

Finding 2022-02 Internal Control Over Procurement and 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 subcontractors before issuing payments of federal ...

Finding 2022-02 Internal Control Over Procurement and 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 subcontractors before issuing payments of federal funds. Corrective Actions Taken or Planned: Management agrees with the recommendation and has implemented the following steps. The Organization has implemented a checklist of requirements for each federal contract that includes the review of all new vendors for suspension or debarment on Sam.gov.

View Audit 37253

Finding 37873 (2022-001)

Material Weakness 2022

Arts Council of Indianapolis, Inc.

IN

Questioned Costs Cash Management Material Weakness

Finding 2022-01 Internal Control Over Payroll Condition: An effective internal control system was not in place at the Organization to ensure that employee work hours charged to federal contracts were properly recorded, tracked, approved, and accurate prior to submitting reimbursement claims. Corr...

Finding 2022-01 Internal Control Over Payroll Condition: An effective internal control system was not in place at the Organization to ensure that employee work hours charged to federal contracts were properly recorded, tracked, approved, and accurate prior to submitting reimbursement claims. Corrective Actions Taken or Planned: Management agrees with the recommendation and has implemented the following steps. The employees charged to the federal contracts are salaried employees and do not prepare time sheets in the normal course of business. However, the Organization utilizes a time reporting worksheet template provided by the grantor to report employee work hours. This worksheet includes employee name, date, and hours worked per federal contract. The Organization has added the step of including written approval by the employee and the employee?s supervisor on the aforementioned time reporting worksheet to confirm the accuracy of the information submitted.

View Audit 37253 Questioned Costs: $1

Finding 37871 (2022-001)

Significant Deficiency 2022

International Institute of Metropolitan St. Louis and Subsidiary

MO

Subrecipient Monitoring Reporting Significant Deficiency

Finding 2022-001 Personnel Responsible For Corrective Action: Paul Costigan, State Refugee Coordinator Anticipated Completion Date: June 2023 Correction Action Plan: Paul Costigan, State Refugee Coordinator, failed to submit one of two required federal reports on awards to subcontractors for FY2...

Finding 2022-001 Personnel Responsible For Corrective Action: Paul Costigan, State Refugee Coordinator Anticipated Completion Date: June 2023 Correction Action Plan: Paul Costigan, State Refugee Coordinator, failed to submit one of two required federal reports on awards to subcontractors for FY22. Paul has since completed the FFATA for FY22 and FY23 and the completion of this report is now a recurring calendar item.

View Audit 35654

Finding 37870 (2022-001)

None 2022

Benedictine Manor I No. 082-Ee175

AR

HUD Housing Programs Special Tests & Provisions Cash Management

Responsible Party: Benjamin Barylske, CFO, and Marva Murphy, Controller Finding 2022-001 The Project is required to calculate surplus cash at the end of each fiscal year and any amount greater than zero is required to be deposited to a federally insured residual receipts account within 60 days of y...

Responsible Party: Benjamin Barylske, CFO, and Marva Murphy, Controller Finding 2022-001 The Project is required to calculate surplus cash at the end of each fiscal year and any amount greater than zero is required to be deposited to a federally insured residual receipts account within 60 days of year-end. The Project properly calculated surplus cash; however, funds were not deposited into a residual receipts account within the requested time frame. Comments on the Finding and Recommendation Management is in agreement with this finding and the related recommendation. Action(s) Taken or Planned on the Finding Management will implement controls to ensure the surplus cash is deposited into a residual receipts account within the requested time frame. Estimated completion date for the above-mentioned corrective action is September 30, 2023.

View Audit 34290

Corrective Action Plans

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