Corrective Action Plans

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Action: Create a control to that will cause early and frequent monitoring of Surplus Cash. Management should emphasize accountants to compute and report surplus cash to upper management on a monthly basis. Management should review the surplus cash calculations on a monthly basis.
Action: Create a control to that will cause early and frequent monitoring of Surplus Cash. Management should emphasize accountants to compute and report surplus cash to upper management on a monthly basis. Management should review the surplus cash calculations on a monthly basis.
Responsibility: The Accounting Manager is responsible for providing the training and assigning certain accounting classes that can be done online regarding the calculation of Surplus Cash and the ultimate requirement to deposit Surplus cash to Residual Receipts.
Responsibility: The Accounting Manager is responsible for providing the training and assigning certain accounting classes that can be done online regarding the calculation of Surplus Cash and the ultimate requirement to deposit Surplus cash to Residual Receipts.
Timeline: Training to begin within 30 days of the audit report’s issuance.
Timeline: Training to begin within 30 days of the audit report’s issuance.
Resources: Online HUD accounting Webinars or Self Study classes. Example AICPA, AHACPA, or Wester CPE
Resources: Online HUD accounting Webinars or Self Study classes. Example AICPA, AHACPA, or Wester CPE
Management has already instituted some actions to address the findings. The owner of the management company has now assumed the responsibility to emphasize to the accounting department to monitor and report surplus cash frequently. Also, this incident appears to be a first time occurrence for this e...
Management has already instituted some actions to address the findings. The owner of the management company has now assumed the responsibility to emphasize to the accounting department to monitor and report surplus cash frequently. Also, this incident appears to be a first time occurrence for this entity. Further the upon subsequent events review it was noted that the residual receipt deposit was made on 11/18/2025.
Overall Corrective Action Plan to Address findings 1 and 2
Overall Corrective Action Plan to Address findings 1 and 2
Management utilizing the Internal Audit Function should revise its internal control system as follows:
Management utilizing the Internal Audit Function should revise its internal control system as follows:
a. Identify major areas of risk of material misstatement and/or fraud. As an example, the areas may
a. Identify major areas of risk of material misstatement and/or fraud. As an example, the areas may
include; late Audit reporting, identifying areas of risk of material misstatement such as making
include; late Audit reporting, identifying areas of risk of material misstatement such as making
timely required deposits to the reserve accounts including Residual Receipts, failing to review
timely required deposits to the reserve accounts including Residual Receipts, failing to review
prior year audit reports or audit findings, Proper and accurate reporting on a consistent and
prior year audit reports or audit findings, Proper and accurate reporting on a consistent and
ongoing basis to the most current HUD chart of accounts.
ongoing basis to the most current HUD chart of accounts.
Corrective Action Plan
Corrective Action Plan
Action: Management needs to monitor and review the processing of monthly financial statements to detect any errors in recording transactions. Further management needs to monitor and review on a monthly basis the processing of bank reconciliations. To Provide Mandatory training to accounting personne...
Action: Management needs to monitor and review the processing of monthly financial statements to detect any errors in recording transactions. Further management needs to monitor and review on a monthly basis the processing of bank reconciliations. To Provide Mandatory training to accounting personnel on certain accounting principles regarding HUD Multifamily Housing. This includes taking accounting continuing education classes in accounting for HUD Projects. Create an Internal Auditing function within the Management company.
Responsibility: The Accounting Manager is responsible for providing the training and assigning certain accounting classes that can be done online.
Responsibility: The Accounting Manager is responsible for providing the training and assigning certain accounting classes that can be done online.
Timeline: Training to begin within 30 days of the audit report’s issuance.
Timeline: Training to begin within 30 days of the audit report’s issuance.
Resources: Online HUD accounting Webinars or Self Study classes. Example AICPA, AHACPA, or Wester CPE
Resources: Online HUD accounting Webinars or Self Study classes. Example AICPA, AHACPA, or Wester CPE
Management has already instituted some actions to address the findings through hiring new
Management has already instituted some actions to address the findings through hiring new
accounting personnel including hiring a Accounting manager and also beefed up its IT functions
accounting personnel including hiring a Accounting manager and also beefed up its IT functions
by installing a new accounting system. Both the Accounting manager and the consultant have been monitoring activities on a frequent basis and providing IT support.
by installing a new accounting system. Both the Accounting manager and the consultant have been monitoring activities on a frequent basis and providing IT support.
The audit report was uploaded into the federal Audit clearing house but was inadvertently not submitted. It was uploaded on time but the failure to submit led us to this finding. The issue has been resolved.
The audit report was uploaded into the federal Audit clearing house but was inadvertently not submitted. It was uploaded on time but the failure to submit led us to this finding. The issue has been resolved.
The grant employee that was hired in this last fiscal year resigned and there was a period that it was handled by the county manager. The county has since contracted with an outside agency to handle the grants far Catron County.
The grant employee that was hired in this last fiscal year resigned and there was a period that it was handled by the county manager. The county has since contracted with an outside agency to handle the grants far Catron County.
The University concurs that costs charged to federal awards must be incurred within the approved period of performance in accordance with Uniform Guidance and the OMB Compliance Supplement. The instances identified during the audit were attributable to personnel turnover within Research and Sponsore...
The University concurs that costs charged to federal awards must be incurred within the approved period of performance in accordance with Uniform Guidance and the OMB Compliance Supplement. The instances identified during the audit were attributable to personnel turnover within Research and Sponsored Programs (RSP), which resulted in isolated lapses in the consistent application of existing period of performance review procedures during the period under audit. Upon identification of these items, the Office of the Controller (OoC), in its oversight role for financial reporting and compliance, coordinated with RSP to address the questioned costs. RSP initiated the process to remove the costs from the affected grants and, where applicable, to consult with the sponsor and refund the disallowed amounts. As part of the corrective action plan, RSP will reinforce existing period of performance controls through targeted communication and training with responsible personnel involved in grant administration and expenditure processing. RSP will continue to perform pre- and post-expenditure reviews to ensure that costs charged to federal awards are incurred within the approved budget period and are appropriately documented. These actions are focused on reinforcing the timing review of expenditures charged to federal awards and are intended to ensure ongoing compliance with Uniform Guidance requirements and to prevent recurrence of the condition.
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