Corrective Action Plans

Finding 30972 (2022-003)

Significant Deficiency 2022

MO

Subrecipient Monitoring Reporting

Finding 2022-003 ? Reporting ? Compliance and Control Funding Federal Award No. 21.023 Emergency Rental Assistance Program ? COVID 19 Corrective Action Plan: In order to navigate the required Treasury reporting and to ensure that all reports reflect clear and appropriate information, staff has imple...

Finding 2022-003 ? Reporting ? Compliance and Control Funding Federal Award No. 21.023 Emergency Rental Assistance Program ? COVID 19 Corrective Action Plan: In order to navigate the required Treasury reporting and to ensure that all reports reflect clear and appropriate information, staff has implemented many changes to process. To address staffing limitations, the Community Programs Processes Department was created in the fall of 2021 to aid in the reconciliation and financial tracking processes. In the early part of 2022, the Data and Analytics Department was officially formed to expand reporting capacity. New processes, in response to known limitations and timing restraints, have been developed to ensure adequate record keeping. Regular weekly meetings have been established between the Community Programs Processes Department, the Data and Analytics Department, and the Division Director to improve the coordination between all parties prior to the reporting deadlines. Additionally, where exceptions or changes must be made to reporting processes due to technical deficiencies or changes to guidance, processes have been established for clear communication and approval. Finally, as part of the regular coordination meetings, a debriefing of the reporting process occurs post submission so that improvements to the process may take place as needed. Completion Date: The Commission developed new departments and added additional staffing in fall 2021 and early 2022. New processes for report completion, submission, and record keeping were developed in the late spring of 2022 and regular communication and process improvement are ongoing. The Commission expects to complete implementation of procedures and to document ERA report reconciliations with the general ledger during fiscal year 2023. Contact Person: Steve Whitson, Director of Community Programs

View Audit 30197

Finding 30971 (2022-002)

Material Weakness 2022

Missouri Housing Development Commission

MO

Questioned Costs Allowable Costs / Cost Principles Eligibility § 200.400 § 200.401

Finding 2022-002 ? Allowable Costs and Activities, Eligibility ? Compliance and Control Funding Federal Award No. 21.023 Emergency Rental Assistance Program ? COVID 19 Corrective Action Plan: The Commission management identified questionable applicants for assistance during fiscal years 2021 and 202...

Finding 2022-002 ? Allowable Costs and Activities, Eligibility ? Compliance and Control Funding Federal Award No. 21.023 Emergency Rental Assistance Program ? COVID 19 Corrective Action Plan: The Commission management identified questionable applicants for assistance during fiscal years 2021 and 2022 and agrees with the finding regarding ALN 21.023. Internal controls have been enhanced to mitigate and help prevent further exposure to noncompliance. This includes the adoption of a formal fraud, waste, and abuse policy in July 2021 as well as providing additional training to employees and third parties that are responsible for reviewing and approving applications in order to better detect invalid applicants to prevent funding these applicants. In May 2021 the Commission hired an Internal Compliance Manager and has engaged a third party law firm and a consulting group to provide consultative assistance to improve processes and to assist in investigating applications deemed to be questionable. Further, internal staffing capacity has been expanded with the creation of the Community Programs Processes Department in fall 2021 and the Data and Analytics Department in early 2022. Additional investigative techniques such as ?mass denial metrics? and tiered level reviews have been implemented into weekly application processing. Processes will continue to be implemented in response to changes in behavior by ineligible actors and ineligible application submission attempts. Staff has set regular internal coordination meetings to improve communication and aid in the identification of new indicators. Internal compliance staff actively participates in national groups administering similar programs, and explores and adopts new preventative measures demonstrated to be effective in other states. Completion Date: The Commission implemented additional compliance review procedures during fiscal year 2021 and expects to conclude its investigation of the fiscal year identified cases during calendar year 2023. Contact Person: Steve Whitson, Director of Community Programs

View Audit 30197 Questioned Costs: $1

Finding 30968 (2022-001)

Material Weakness 2022

Missouri Housing Development Commission

MO

Questioned Costs Allowable Costs / Cost Principles Subrecipient Monitoring § 200.400 § 200.401

Finding 2022-001 ? Allowable Costs and Activities, Eligibility ? Compliance and Control Funding Federal Award No. 14.231 Emergency Solutions Grant Program ? COVID 19 Corrective Action Plan: The Commission management identified questionable applicants for direct rental assistance during fiscal years ...

Finding 2022-001 ? Allowable Costs and Activities, Eligibility ? Compliance and Control Funding Federal Award No. 14.231 Emergency Solutions Grant Program ? COVID 19 Corrective Action Plan: The Commission management identified questionable applicants for direct rental assistance during fiscal years 2021 and 2022 and agrees with the finding regarding ALN 14.231. Internal controls have been enhanced to mitigate and identify instances of potential noncompliance. The funding for the direct rental assistance under this program was concluded and the final disbursements made in early May 2021. The Commission hired an Internal Compliance Manager in May 2021 and has engaged a third party law firm and a consulting group to provide consultative assistance to improve processes and to assist in investigating applications deemed to be questionable. A formal fraud, waste and abuse policy was adopted in July 2021. During fiscal year 2022, MHDC undertook extensive efforts to detect instances of ineligible applicants and documentation irregularities, which resulted in identification of these instances of applicant noncompliance. Completion Date: The Commission implemented additional compliance review procedures during fiscal year 2021, reviewed applications to identify potentially fraudulent applications during fiscal year 2022 and expects to conclude its investigation of identified cases during fiscal year 2023. Contact Person: Steve Whitson, Director of Community Programs

View Audit 30197 Questioned Costs: $1

Finding 30967 (2022-001)

Significant Deficiency 2022

Lake Anne Fellowship House, Section I

VA

Subrecipient Monitoring Internal Control / Segregation of Duties

U.S. Department of Housing and Urban Development Lake Anne Fellowship House, Section II FHA Project No. 000-005-NI respectfully submits the following corrective action plan for the year ended June 30, 2022. Name and address of independent public accounting firm: Baker Tilly U.S., LLP 1570 Fruitvill...

U.S. Department of Housing and Urban Development Lake Anne Fellowship House, Section II FHA Project No. 000-005-NI respectfully submits the following corrective action plan for the year ended June 30, 2022. Name and address of independent public accounting firm: Baker Tilly U.S., LLP 1570 Fruitville Pike, Lancaster, PA 17601 Audit period: Year Ending June 30, 2022 The findings from the June 30, 2022 schedule of findings and questioned costs are discussed below. The findings are numbered consistently with the numbers assigned in the schedule. FINANCIAL STATEMENT FINDINGS None Noted FEDERAL AWARD FINDINGS Finding 2022-001 ? Required Monthly Deposits to the Reserve for Replacement Recommendation: The Corporation should have procedures in place to ensure all required monthly deposits are made. Action Taken: $782.00 shortfall of deposits was funded. Going forward, annually management will verify with ownership monthly deposit required. Anticipated Completion Date: September 22, 2022, the date the Corporation made the underfunded deposit. If the U.S. Department of Housing and Urban Development has questions regarding this plan, please call Christy Zeitz, CEO at (571) 349-0055.

View Audit 36489

Finding 30965 (2022-005)

Significant Deficiency 2022

Las Cumbres Observatory Global Telescope Network, Inc.

CA

Allowable Costs / Cost Principles Significant Deficiency Internal Control / Segregation of Duties

Finding 2022-005: Review and Reconciliation of Award Tracking Schedules Name of contact person: Ceci Fort, Finance Manager Corrective Action: Train accounting coordinator to review and reconcile grant workbooks to the general ledger monthly before charging federal awards to catch manual entry a...

Finding 2022-005: Review and Reconciliation of Award Tracking Schedules Name of contact person: Ceci Fort, Finance Manager Corrective Action: Train accounting coordinator to review and reconcile grant workbooks to the general ledger monthly before charging federal awards to catch manual entry and formula errors. Completion Date: Immediately, 2023 will be corrected

View Audit 34631

Finding 30963 (2022-001)

Significant Deficiency 2022

Valley Grande Institute for Academic Studies

TX

Reporting

Valley Grande Institute (VGI) has developed a strong internal control team that provide scheduled analyses to the President and administration. The data analyses consist of internal control over financial statements and reporting. The IC staff is responsible for analyzing ratios, dates, metrics, pro...

Valley Grande Institute (VGI) has developed a strong internal control team that provide scheduled analyses to the President and administration. The data analyses consist of internal control over financial statements and reporting. The IC staff is responsible for analyzing ratios, dates, metrics, proper application of accounting principles and recording of accruals due to and from students and federal agencies.

View Audit 33522

Finding 30962 (2022-002)

Material Weakness 2022

Georgia Association for Primary Healthcare

SC

Questioned Costs Cash Management Internal Control / Segregation of Duties

The Organization has hired a new executive director and chief financial officer; the management team has implemented new accounting and financial policies within the accounting department to oversee and maintain federal expenditures are incompliance with grant agreements.

View Audit 33518 Questioned Costs: $1

Finding 30961 (2022-001)

Material Weakness 2022

Georgia Association for Primary Healthcare

SC

Cash Management

The Organization has hired a new executive director and chief financial officer; the management team has implemented new accounting and financial policies within the accounting department to oversee and maintain federal expenditures are incompliance with grant agreements.

View Audit 33518

Finding 30960 (2022-001)

None 2022

Dona Petra Santiago Apartments Housing Development Fund Corporation

NY

HUD Housing Programs

September 26, 2023 Management's Planned Corrective Action Plan For the Year Ended December 31, 2022 Names of contact person(s) responsible for corrective action: Georgina Acevedo, Chair and Kevin McAllister, Treasurer Federal Award Finding and Questioned Costs Finding Number: 2022-001 ? Supporti...

September 26, 2023 Management's Planned Corrective Action Plan For the Year Ended December 31, 2022 Names of contact person(s) responsible for corrective action: Georgina Acevedo, Chair and Kevin McAllister, Treasurer Federal Award Finding and Questioned Costs Finding Number: 2022-001 ? Supportive Housing for the Elderly (Section 202) ? CFDA # 14.157 Planned Corrective Action: The Board of Directors acknowledges the required deposits to the replacement reserve account were not made. The Project is applying for a rent increase and deposits will be made as soon as the cash position is available to make the required deposits. Anticipated Completion Date: Upon approval of the rent increase.

View Audit 33517

Finding 30954 (2022-002)

Material Weakness 2022

Park City Communities, INC

CT

HUD Housing Programs Special Tests & Provisions

2022-002 - Special Tests: Public and Indian Housing (CFDA #14.850) and Section 8 Housing Voucher Cluster (FALN #14.871) Criteria In accordance with a Notice of Default dated August 19, 2021 from HUD, HUD has made ten findings that support the determination that (1) the Public Housing Program is in ...

2022-002 - Special Tests: Public and Indian Housing (CFDA #14.850) and Section 8 Housing Voucher Cluster (FALN #14.871) Criteria In accordance with a Notice of Default dated August 19, 2021 from HUD, HUD has made ten findings that support the determination that (1) the Public Housing Program is in substantial default for breaching the terms of the Public Housing Recovery Agreement, and (2) the Housing Choice Voucher program is in default for breaching the terms of the Consolidated Annual Contributions Contract entered into with HUD. Condition Park City was not in compliance with these Agreements. Questioned Costs Not determinable. Context Park City was not in compliance with agreements with HUD. Effect The effects are not known at this time. Cause The cause is unknown. Recommendation We recommend that Park City remediate the findings noted to comply with the agreements as mandated. Park City's Response The Authority is responding to HUD's recommendations. At -this time, the Authority has completed nine of the ten findings. Contact: Jillian Baldwin Email & Phone Number : jbaldwin@oarkcitycommunities.org (203) 337-8900

View Audit 31275

Finding 30953 (2022-001)

Material Weakness 2022

Park City Communities, INC

CT

HUD Housing Programs Eligibility

2022-001 - Eligibility: Section 8 Housing Voucher Cluster (FALN #14.871) Criteria HUD regulations of Annual Income (24 CFR ? 5.609), Eligible Family Status (24 CFR ? 5.403), Citizenship and Eligible Immigrant Status (24 CFR ? 5.506) and Disclosure of Social Security Numbers (24 CFR ? 5.216) require...

2022-001 - Eligibility: Section 8 Housing Voucher Cluster (FALN #14.871) Criteria HUD regulations of Annual Income (24 CFR ? 5.609), Eligible Family Status (24 CFR ? 5.403), Citizenship and Eligible Immigrant Status (24 CFR ? 5.506) and Disclosure of Social Security Numbers (24 CFR ? 5.216) require the collection and retention of certain tenant information to document the eligibility determination for each recipient. Condition The results of our testing indicated that certain items were unable to be located in the file, as follows: ? In one instance, income verification support did not agree to HUD Form 50058. ? In one instance, social security verification was missing from the tenant file. Questioned Costs Not determinable. Context We selected a sample of 60 files for review. Our sample was a statistically valid sample. Effect The tenant file documentation was incomplete. Cause The cause is unknown. Recommendation We recommend that Park City improve its internal processes to ensure tenant files contain the required documentation. Park City's Response Park City Communities ("PCC") has contracted with an outside firm to manage, staff and run the Housing Choice Voucher program. They have implemented a quality control system to review every file. This quality control process will make sure core documents are retained and timely submission of Form 50058's are completed. Contact: Jillian Baldwin Email & Phone Number : jbaldwin@oarkcitycommunities.org (203) 337-8900

View Audit 31275

Finding 30952 (2022-006)

None 2022

Hazel Crest School District 152.5

IL

Procurement, Suspension & Debarment

Condition: The District purchased a larger quantity of items than was specified in the itemized budget. Plan: Management will review its policies and procedures and implement changes to strengthen internal control over federal reporting. Anticipated Date of Completion: 6/30/2023. Name of Contact Per...

Condition: The District purchased a larger quantity of items than was specified in the itemized budget. Plan: Management will review its policies and procedures and implement changes to strengthen internal control over federal reporting. Anticipated Date of Completion: 6/30/2023. Name of Contact Person: Dr. Kenneth Spells, Superintendent. Management Response: Management will work together with staff to ensure that grant budgets are periodically reviewed and amended as necessary.

View Audit 27177

Finding 30939 (2022-005)

None 2022

Hazel Crest School District 152.5

IL

Reporting Subrecipient Monitoring

Condition: The District did not comply with the requirements of filing quarterly and final reports by the due dates set by ISBE. Plan: Management will review its policies and procedures and implement changes to strengthen internal control over federal reporting. Anticipated Date of Completion: 6/30/...

Condition: The District did not comply with the requirements of filing quarterly and final reports by the due dates set by ISBE. Plan: Management will review its policies and procedures and implement changes to strengthen internal control over federal reporting. Anticipated Date of Completion: 6/30/2023. Name of Contact Person: Dr. Kenneth Spells, Superintendent. Management Response: Management will work together with staff to verify that reporting deadlines are met moving forward.

View Audit 27177

Finding 30923 (2022-010)

Material Weakness 2022

Northern New Mexico College

NM

Equipment & Real Property Management § 200.303 § 200.313

Auditors? Recommendation - We recommend the College enhance the design of its control activities and policies and procedures should be developed to ensure physical inventories are taken at least once every two years and that they create a tool to assist in tracking and maintaining equipment purchase...

Auditors? Recommendation - We recommend the College enhance the design of its control activities and policies and procedures should be developed to ensure physical inventories are taken at least once every two years and that they create a tool to assist in tracking and maintaining equipment purchased with federal funds. Views of Responsible Officials and Planned Corrective Action - The College does maintain a listing of inventory purchased with federal funds; however, the inventory was not sufficiently and accurately maintained due to staff turnover. The College is reviewing current policies and will modify those as needed. The College plans to conduct a physical inventory of all capital assets and those assets procured with federal sources. Responsible Official - Denise Montoya, Vice President for Finance & Administration, Theresa Storey, Chief Financial Officer, Scott Stokes, Chief Information Officer, and Josephine Velasquez, Procurement Timeline and Estimated Completion Date - June 30, 2024

View Audit 30350

Finding 30922 (2022-013)

Significant Deficiency 2022

Northern New Mexico College

NM

Allowable Costs / Cost Principles § 200.303 § 200.430

Auditors? Recommendation - We recommend the College enhance the design of its control activities and develop procedures to ensure that employee documentation is retained and updated within the employee file and the payroll system.Views of Responsible Officials and Planned Corrective Action - The Col...

Auditors? Recommendation - We recommend the College enhance the design of its control activities and develop procedures to ensure that employee documentation is retained and updated within the employee file and the payroll system.Views of Responsible Officials and Planned Corrective Action - The College agrees with the finding and will instruct supervisors and payroll officials to receive and document all authorizations before payroll is run. Accordingly, Human Resources staff will review each contract with the rate of pay in the payroll system to ensure validation. Responsible Official - Denise Montoya, Vice President for Finance & Administration, Theresa Storey, Chief Financial Officer, and Ken Lucero, Director of Human Resources Timeline and Estimated Completion Date - June 30, 2023

View Audit 30350

Finding 30921 (2022-012)

Material Weakness 2022

Northern New Mexico College

NM

Allowable Costs / Cost Principles § 200.303 § 200.430

Auditors? Recommendation - We recommend the College follow their policies and procedures related to time and effort certifications. Views of Responsible Officials and Planned Corrective Action - The College agrees and states that due to staff turnover and limited staff resources time and effort cert...

Auditors? Recommendation - We recommend the College follow their policies and procedures related to time and effort certifications. Views of Responsible Officials and Planned Corrective Action - The College agrees and states that due to staff turnover and limited staff resources time and effort certifications were partially completed, or not maintained in the Business Office central file. The College will review its central file for time and effort certifications for all required positions and correct accordingly. The College will note that federal and non-federal award expenditure reconciliations are performed monthly and as required, and this process is another control for payment validation. Responsible Official - Denise Montoya, Vice President for Finance & Administration, Theresa Storey, Chief Financial Officer, TBD, Grant Manager, and Stephanie Lovato, Accountant Timeline and Estimated Completion Date - June 30, 2023

View Audit 30350

Finding 30920 (2022-011)

Significant Deficiency 2022

Northern New Mexico College

NM

Procurement, Suspension & Debarment § 200.303 § 200.320

Auditors? Recommendation - We recommend the College update its procurement policy to comply with all relevant state and local procurement requirements and review for revisions regularly. Views of Responsible Officials and Planned Corrective Action - The College agrees and will be modifying its procu...

Auditors? Recommendation - We recommend the College update its procurement policy to comply with all relevant state and local procurement requirements and review for revisions regularly. Views of Responsible Officials and Planned Corrective Action - The College agrees and will be modifying its procurement policy to address federal requirements. Responsible Official - Denise Montoya, Vice President for Finance & Administration, Theresa Storey, Chief Financial Officer and Josephine Velasquez, Chief Procurement Officer Procurement Officer Timeline and Estimated Completion Date - June 30, 2023

View Audit 30350

Finding 30893 (2022-002)

Material Weakness 2022

Caring People Alliance

PA

Reporting

Finding No. 2022-002 Internal Control over Preparation of Schedule of Expenditures of Federal Awards (?SEFA?) - Material Weakness in Internal Control over Compliance Management stated that after implementing corrections for the finding 2022-001 (see above), this issue will be resolved by the Chief O...

Finding No. 2022-002 Internal Control over Preparation of Schedule of Expenditures of Federal Awards (?SEFA?) - Material Weakness in Internal Control over Compliance Management stated that after implementing corrections for the finding 2022-001 (see above), this issue will be resolved by the Chief Operating Officer and Sr. Director of Finance, who oversee the preparation of the SEFA. New robust and modern solution, Oracle NetSuite went live on March 1, 2022 and enables the Organization to produce the SEFA in a timely and accurate manner. Information for the SEFA is tracked and reconciled to the accounting system on a monthly basis. Anticipated Completion Date: July 2023 Person(s) Responsible for Corrective Action: Gerald Macdonald, Ph.D. President and CEO Caring People Alliance 123 South Broad Street, Suite # 2220 Philadelphia, PA 19109 jmacdonald@caringpeoplealliance.org (215) 545-5230 x 1011

View Audit 35639

Finding 30892 (2022-001)

Material Weakness 2022

Caring People Alliance

PA

Material Weakness Reporting Internal Control / Segregation of Duties

Finding No. 2022-001 - Account Reconciliations - Material Weakness in Internal Control Over Financial Reporting Management stated that all account reconciliations of Trial Balance for financial monthly close completed in a timely and accurate manner for every month by the 25th of the next month. Thi...

Finding No. 2022-001 - Account Reconciliations - Material Weakness in Internal Control Over Financial Reporting Management stated that all account reconciliations of Trial Balance for financial monthly close completed in a timely and accurate manner for every month by the 25th of the next month. This issue resolved by Chief Operating Officer and Sr. Director of Finance, who now oversee the monthly and year-end reconciliations. New robust and modern solution, Oracle NetSuite went live on March 1, 2022. Finance Team staff are responsible for maintaining General Ledger Accounts per assignments and job responsibilities. The new Finance Team is responsible to reconcile all Trial Balance Accounts on a monthly basis. Anticipated Completion Date: Completed Person(s) Responsible for Corrective Action: Gerald Macdonald, Ph.D. President and CEO Caring People Alliance 123 South Broad Street, Suite # 2220 Philadelphia, PA 19109 jmacdonald@caringpeoplealliance.org (215) 545-5230 x 1011

View Audit 35639

Finding 30891 (2022-001)

Significant Deficiency 2022

City of Freeport

IL

Reporting

Finding 2022 ? 001: Data Collection Form submission Condition: The 2021 data collection form and audit package were not submitted timely. Plan: The City will implement a process to track the submission time of the data collection form and audit package. Anticipated Date of Completion: During Fisc...

Finding 2022 ? 001: Data Collection Form submission Condition: The 2021 data collection form and audit package were not submitted timely. Plan: The City will implement a process to track the submission time of the data collection form and audit package. Anticipated Date of Completion: During Fiscal Year 2022 Name of Contact Person: Michelle Richter, Finance Director/Treasurer

View Audit 35636

Finding 30890 (2022-001)

Significant Deficiency 2022

Lewis County General Hospital and Residential Health Care Facility

NY

Reporting

Finding #2022-001 Response: We agree with the finding noted by the auditors. A clerical error was noted in the loss revenue calculation for actual revenue in 2022. The 2022 revenue data will be corrected in the next Period reporting. Responsible Party: Jeff Hellinger, CFO Estimated Completion: ...

Finding #2022-001 Response: We agree with the finding noted by the auditors. A clerical error was noted in the loss revenue calculation for actual revenue in 2022. The 2022 revenue data will be corrected in the next Period reporting. Responsible Party: Jeff Hellinger, CFO Estimated Completion: 12/31/23

View Audit 35635

Finding 30887 (2022-002)

Significant Deficiency 2022

The New York State Coalition Against Domestic Violence, Inc.

NY

Allowable Costs / Cost Principles

CORRECTIVE ACTION PLAN June 13, 2023 U.S Department of Health and Human Services The New York State Coalition against Domestic Violence, Inc. respectfully submits the following corrective action plan for the year ended September 30, 2022. Name and address of independent public accounting...

CORRECTIVE ACTION PLAN June 13, 2023 U.S Department of Health and Human Services The New York State Coalition against Domestic Violence, Inc. respectfully submits the following corrective action plan for the year ended September 30, 2022. Name and address of independent public accounting firm: Wojeski & Company, 159 Wolf Road, Albany NY 12205 Audit Period: Fiscal year ended 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. FINANCIAL STATEMENT AUDIT FINDINGS Finding 2022-001--Approval of Cash Disbursements--Significant Deficiency Condition: The Coalition did not maintain documentation to support the contemporaneous approval of invoices. Recommendation: The Coalition should implement policies and procedures necessary to maintain detailed documentation of the contemporaneous approval of all invoices. That documentation should be in a static form that cannot be changed retroactively and should include information documenting who made the approval and when the approval was made. Action Taken: Although there were a number of compensating controls in place prior to the 2021 audit regarding the Executive Director?s review of detailed expenditure and bank reconciliation reports, the organization took further steps to strengthen internal controls when findings from the 2021 audit were communicated to management in January, 2023. Management immediately provided a response to these findings on January 6, 2023 and implemented revised processes and corrective actions to further strengthen controls. As of January 2023, an Expenditure Approval Form which is prepared by the Finance Director is sent to the Executive Director for review and approval for all payments prior to them being processed and posted in QuickBooks. Certain small expenses are currently paid monthly by ACH/autopay ? the Executive Director approves in writing all of the payments currently set up with this payment approach, approves in writing any new vendors to be set up on autopay and also reviews such expenditures as part of detailed expenditure and bank reconciliation reports provided to the Executive Director. FEDERAL AWARD FINDINGS AND QUESTIONED COSTS 2022-002--Allowable Costs/Cost Principles--Significant Deficiency Significant Deficiency: As discussed in Finding 2022-001 above, documentation is not maintained that provides evidence that supports the assertion that invoices were approved contemporaneously. This condition creates the opportunity for unallowed costs to be charged to the grant and not be prevented, detected, or corrected in a timely manner. The Coalition should implement policies and procedures necessary to maintain detailed documentation of the contemporaneous approval of all invoices. Action Taken: Although there were a number of compensating controls in place prior to the 2021 audit regarding the Executive Director?s review of detailed expenditure and bank reconciliation reports, the organization took further steps to strengthen internal controls when findings from the 2021 audit were communicated to management in January, 2023. Management immediately provided a response to these findings on January 6, 2023 and implemented revised processes and corrective actions to further strengthen controls. As of January 2023, an Expenditure Approval Form which is prepared by the Finance Director is sent to the Executive Director for review and approval for all payments prior to them being processed and posted in QuickBooks. Certain small expenses are currently paid monthly by ACH/autopay ? the Executive Director approves in writing all of the payments currently set up with this payment approach, approves in writing any new vendors to be set up on autopay and also reviews such expenditures as part of detailed expenditure and bank reconciliation reports provided to the Executive Director. If you have any questions regarding this plan, please call me at 518-482-5465 x208. Sincerely, Connie Neal Executive Director

View Audit 35568

Finding 30885 (2022-003)

Material Weakness 2022

City of Caneyville Kentucky

KY

This finding was the result of a misunderstanding of the source of county funding and of the actual progress of a related construction project. As the project is now complete and no further county assistance is anticipated, the issue is moot.

View Audit 34417

Finding 30884 (2022-001)

None 2022

Florida Christian Apartments, Inc.

AL

Cash Management HUD Housing Programs Reporting

Finding Reference Number: 2022-001 Concur or Do Not Concur: Concur Agree or Disagree with Auditor Recommendations: Agree Actions Taken or Planned on the Finding: Management agrees with the finding. The residual receipts account deficiency was funded on May 20, 2022 in the amount of $90,804. Manage...

Finding Reference Number: 2022-001 Concur or Do Not Concur: Concur Agree or Disagree with Auditor Recommendations: Agree Actions Taken or Planned on the Finding: Management agrees with the finding. The residual receipts account deficiency was funded on May 20, 2022 in the amount of $90,804. Management will ensure that the residual receipts account is properly funded in the future. Completion Date: May 20, 2022

View Audit 34416

Finding 30883 (2022-011)

None 2022

Okaloosa Walton Homeless Continuum of Care, Opportunity, Inc.

FL

Questioned Costs Internal Control / Segregation of Duties

Views of Responsible Official: Current management indicated that the former Executive Director of HHA, former Finance Director of HHA, and a former employee were employed by HHA, and the former Executive Director and Finance Director controlled all aspects of HHA?s management and finances during the...

Views of Responsible Official: Current management indicated that the former Executive Director of HHA, former Finance Director of HHA, and a former employee were employed by HHA, and the former Executive Director and Finance Director controlled all aspects of HHA?s management and finances during the relevant audited period. The former Executive Director?s employment with HHA was terminated on October 10, 2022. The former Finance Director?s employment with HHA was terminated on October 20, 2022. The third employee?s employment with HHA was terminated on October 11, 2022. Additionally, all but two of the Board of Directors who served during the period in which the irregularities occurred have been replaced. HHA appointed the current Executive Director, Crystal Harrison (?Executive Director?), on October 10, 2022, as Interim Executive Director and promoted her to the position of Executive Director on October 26, 2022. The current Executive Director has diligently searched for all documents and records for all purchases, expenses, and cash distributions at issue during the former Executive Director?s tenure as Executive Director. However, no such documents or records were located on site at HHA?s offices or on HHA?s computers or devices. In early April 2023, HHA?s attorney served the former Executive Director, former Finance Director, and former employee with a demand to produce the missing documents and records but each responded that they had no such documents or records in their possession. Unfortunately, because of the actions of the former Executive Director, Finance Director, and employee, HHA lacks sufficient operating funds to pursue a civil suit to recover the losses caused by these former employees. Further, HHA?s errors and omissions insurance policy only covers third-party claims. As such, HHA has directed its attorney to take all appropriate action to pursue criminal charges of grand theft/embezzlement and fraud against these former employees upon completion of the audit. HHA?s attorney has already reached out to law enforcement to begin this process. Once the formal criminal complaint is filed, law enforcement will be empowered to subpoena the missing documents and records (should said documents and records still exist) from the former employees, as well as their banking and financial records (including tax returns) to track the suspicious expenses and cash distributions at issue. The current Executive Director, with the full support of HHA?s Board, is committed to taking all action necessary to ensure compliance with the rules and procedures already in place regarding expenses and cash distributions, as well as to enact new enhanced procedures for periodic reviews of these procedures to timely detect deficiencies and ensure compliance going forward. In addition, the current Executive Director will implement a process to ensure that backup records are maintained electronically as well as in a paper form.

View Audit 33406 Questioned Costs: $1

Corrective Action Plans

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