Corrective Action Plans

Finding 571837 (2024-003)

Material Weakness 2024

City of Baton Rouge - Parish of East Baton Rouge

LA

Questioned Costs Allowable Costs / Cost Principles Procurement, Suspension & Debarment

The City-Parish transitioned the administration of the SLFR grant in the first quarter of 2025; therefore, we are unable to obtain direct clarification if there was other supporting documentation obtained but not included with the invoice. Moving forward, more detailed documentation will be required...

The City-Parish transitioned the administration of the SLFR grant in the first quarter of 2025; therefore, we are unable to obtain direct clarification if there was other supporting documentation obtained but not included with the invoice. Moving forward, more detailed documentation will be required to substantiate payments and services rendered. Expected Implementation Date: January 2025 Contact person: Kelly LeDuff, Urban Development Director, Office of Community Development Yolanda Burnette-Lankford, Ph.D., Chief Service Office, Office of the Mayor-President

View Audit 362863 Questioned Costs: $1

Finding 571835 (2024-008)

Significant Deficiency 2024

City of Baton Rouge - Parish of East Baton Rouge

LA

Questioned Costs Procurement, Suspension & Debarment § 200.318 § 200.326

The amendment in question did not constitute a material change in the scope, nature, or intent of the original procurement. The additional funding awarded was consistent with the original services solicited and did not involve new activities or substantially alter the deliverables or performance sta...

The amendment in question did not constitute a material change in the scope, nature, or intent of the original procurement. The additional funding awarded was consistent with the original services solicited and did not involve new activities or substantially alter the deliverables or performance standards initially procured. As such, the amendment fell within the bounds of the original competitive process and was not required to be procured. The City-Parish procurement policy allows for amendments when they do not exceed the original scope of work or introduce fundamentally different services. The amendment was processed with full documentation of cost reasonableness, continued eligibility under the applicable grant program and internal approval. Therefore, we assert that the contract amendment was executed in accordance with both HUD and local procurement requirements and no formal procurement was necessary. To strengthen internal controls and ensure full alignment with federal procurement requirements, the OCD will document and reinforce internal procedures outlining when procurement is or is not required for amendments within the original scope. Procurement training is ongoing. The OCD staff will conduct refresher training with procurement and program personnel on contract amendment procedures and documentation requirements. Expected Implementation Date: August 2025 Contact person: Kelly LeDuff, Urban Development Director, Office of Community Development

View Audit 362863 Questioned Costs: $1

Finding 571831 (2024-003)

Material Weakness 2024

Warren County, North Carolina

NC

Eligibility Material Weakness Equipment & Real Property Management

Finding: 2024-3 Name of contact person: Renae Alston Corrective Action: The County will continue to train employees on a monthly basis and as needed when new and updated policies are received. Supervisors and lead workers will continue to conduct second party reviews and utilizing any findings...

Finding: 2024-3 Name of contact person: Renae Alston Corrective Action: The County will continue to train employees on a monthly basis and as needed when new and updated policies are received. Supervisors and lead workers will continue to conduct second party reviews and utilizing any findings to aid in training staff on any necessary policy information. The department will continue to implement changes as necessary to achieve the overall improvement of eligibility determinations. Proposed Completion Date: June 30, 2025

View Audit 362852

Finding 571830 (2024-002)

Significant Deficiency 2024

Hsg Authority of the City of Lakewood Dba Metro West Housing Solutions

CO

HUD Housing Programs Significant Deficiency Special Tests & Provisions

Finding 2024-002 Federal Agency Name: Department of Housing and Urban Development Assistance Listing Number: 14.871 Program Name: Section 8 Housing Choice Vouchers Program Initial Fiscal Year Finding Occurred: 2024 Finding Summary: Metro West Housing Solutions did not determine rent reasonableness f...

Finding 2024-002 Federal Agency Name: Department of Housing and Urban Development Assistance Listing Number: 14.871 Program Name: Section 8 Housing Choice Vouchers Program Initial Fiscal Year Finding Occurred: 2024 Finding Summary: Metro West Housing Solutions did not determine rent reasonableness for 2 tenants during 2024. In addition, Metro West Housing Solutions did not follow their internal controls in place to determine rent reasonableness for 3 tenants, and internal controls in place did not prevent the missing determinations on the tenants noted. Corrective Action Plan: In response to the recent audit finding related to missing rent reasonableness determinations, Metro West Housing Solutions has implemented the following corrective actions and is strengthening internal controls to ensure compliance with HUD regulations at 24 CFR § 982.507. Actions implemented: • Discontinued using Nelrod rent reasonableness system, which we found to have inconsistent and outdated comparable rent data. MWHS has also discontinued using the “point system” as a control measure. • The recently implemented rent reasonableness control measure requires that the proposed rent for the assisted unit must be within 10% of the rents for comparable, unassisted units in the private market. A unit is considered rent reasonable if none of the selected comparable units are more than 10% below or above the proposed rent. • Yardi Rent Reasonableness module is now being used to determine reasonable rent in accordance with 24 CFR § 982.507(b). This system enables automated, consistent comparisons based on key HUD criteria. • Staff will conduct periodic Yardi Rent Reasonableness system reviews to confirm comparable market data is current and geographically appropriate • Enhanced compliance protocols have been implemented to ensure all staff are receiving frequent, standard training. In addition, individual file audits will be conducted more frequently. Responsible Individual(s): Director, Housing Choice Vouchers Anticipated Completion Date: September 2025

View Audit 362848

Finding 571829 (2024-001)

Material Weakness 2024

Hsg Authority of the City of Lakewood Dba Metro West Housing Solutions

CO

HUD Housing Programs Material Weakness Special Tests & Provisions

Financial Statement Findings None reported Federal Award Finding Finding 2024-001 Federal Agency Name: Department of Housing and Urban Development Assistance Listing Number: 14.871 Program Name: Section 8 Housing Choice Vouchers Program Finding Summary: Metro West Housing Solutions did not perform r...

Financial Statement Findings None reported Federal Award Finding Finding 2024-001 Federal Agency Name: Department of Housing and Urban Development Assistance Listing Number: 14.871 Program Name: Section 8 Housing Choice Vouchers Program Finding Summary: Metro West Housing Solutions did not perform re-inspections of 17 failed inspections within the prescribed 30-day or 24-hour requirement during 2024. In addition, HAP was not properly reviewed for possible abatement for these tenants. Metro West Housing Solutions also did not perform inspections of 2 units within the biennial requirement. Corrective Action Plan: We have replaced the retired staff with the new titled positions Chief Housing Officer and Director of Housing Choice Vouchers. They are bringing new energy and ideas to the Housing team and have been actively seeking out and participating in 3rd party training opportunities. We have added two additional HCV Specialist Positions, and a Housing Eligibility Specialist to address workload concerns, and are now fully staffed. In January of 2025, we replaced the in-house Inspector. They have completed the HUD Exchange NSPIRE Inspector Training Program Certification. In addition, the new inspector was an internal candidate from our property management team who has been with MWHS for over a year and was eager to move into the new position. We believe by moving a proven employee into the role it will create the long-term stability that position requires. We have also completed a thorough review of the inspection process protocols and implemented a new tracking system to better track and schedule timely inspections. Responsible Individual(s): Director, Housing Choice Vouchers Anticipated Completion Date: September 2025

View Audit 362848

Finding 571828 (2024-002)

Significant Deficiency 2024

Western Missouri Medical Center

MO

Special Tests & Provisions Student Financial Aid Significant Deficiency

Identification: 10.766 United States Department of Agriculture (USDA), Community Facilities Loans and Grants Cluster, Noncompliance Finding/Significant Deficiency, Special Tests and Provisions. Corrective Action Plan: The Medical Center will seek guidance from the bond trustee and USDA related to...

Identification: 10.766 United States Department of Agriculture (USDA), Community Facilities Loans and Grants Cluster, Noncompliance Finding/Significant Deficiency, Special Tests and Provisions. Corrective Action Plan: The Medical Center will seek guidance from the bond trustee and USDA related to the insurance provisions in the bond documents for the amount of fidelity bond coverage and retaining an insurance consultant to provide a report. Anticipated completion date: The Medical Center anticipates this to be completed during 2025.

View Audit 362847

Finding 571827 (2024-001)

Significant Deficiency 2024

Western Missouri Medical Center

MO

Special Tests & Provisions Student Financial Aid Matching / Level of Effort / Earmarking

Identification: 10.766 United States Department of Agriculture (USDA), Community Facilities Loans and Grants; Noncompliance Finding; Special Tests and Provisions Corrective Action Plan: The Medical Center will take the necessary steps outlined in the bond indenture and work with the bond trustee ...

Identification: 10.766 United States Department of Agriculture (USDA), Community Facilities Loans and Grants; Noncompliance Finding; Special Tests and Provisions Corrective Action Plan: The Medical Center will take the necessary steps outlined in the bond indenture and work with the bond trustee in order to improve the financial covenants and come back into compliance. Anticipated completion date: The Medical Center anticipates this to be completed during 2025.

View Audit 362847

Finding 571824 (2024-001)

Significant Deficiency 2024

City of Brentwood

MO

Procurement, Suspension & Debarment Subrecipient Monitoring

Recommendation: The City should evaluate its procedures and implement an additional control to ensure verifications checks are occurring prior to entering into contracts with a vendor Explanation of disagreement with audit finding: There are no disagreement with the audit finding. Action planned/tak...

Recommendation: The City should evaluate its procedures and implement an additional control to ensure verifications checks are occurring prior to entering into contracts with a vendor Explanation of disagreement with audit finding: There are no disagreement with the audit finding. Action planned/taken in response to finding: The City will ensure all verification checks are occurring prior to entering into contracts with vendors. Name(s) of the contact person(s) responsible for corrective action: Michelle DePew Planned completion date for corrective action plan: June 30, 2025

View Audit 362830

Finding 571817 (2024-001)

Significant Deficiency 2024

School District of Fort Atkinson

WI

Questioned Costs Cash Management Reporting

Condition: Supporting documentation for the monthly food service meals provided did not align with the claims reported for reimbursement by free, reduced, and paid categories. Plan: The District will keep physical copies of reports and claims submitted. As students switched categories (free, reduced...

Condition: Supporting documentation for the monthly food service meals provided did not align with the claims reported for reimbursement by free, reduced, and paid categories. Plan: The District will keep physical copies of reports and claims submitted. As students switched categories (free, reduced, and paid), the electronic system failed to keep that in account, leading to discrepancies. Anticipated Date of Completion: The District anticipates completion during the 2024-2025 fiscal year. Name of Contact Person: Nathan Knitt, Director of Business Services

View Audit 362828 Questioned Costs: $1

Finding 571816 (2024-010)

Material Weakness 2024

Sullivan County Community College

NY

Reporting § 200.510

Reporting Administration will work to ensure that a procedure is in place for reconciliation which is documented and reviewed by the VP for Administrative Services and the College Controller by the end of 2025.

View Audit 362826

Finding 571815 (2024-009)

Material Weakness 2024

Sullivan County Community College

NY

Eligibility

N9) Satisfactory Academic Progress The College will seek to work through the SAP committee to ensure that all the standards are met for satisfactory academic progress including stating when evaluating will be done and notifying students of disbursements through the Committee by then end of 2025. Thi...

N9) Satisfactory Academic Progress The College will seek to work through the SAP committee to ensure that all the standards are met for satisfactory academic progress including stating when evaluating will be done and notifying students of disbursements through the Committee by then end of 2025. This will be over seen by the Vice president for administrative services Sean Welsh and the Director of Financial Aid Keri Whitehead

View Audit 362826

Finding 571814 (2024-008)

Material Weakness 2024

Sullivan County Community College

NY

(N8) Perkins The College will seek to be in compliance with all storage needs and familiarize itself with federal requirements. Documents will be kept in fireproof containers by the end of 2025. This will be over seen by the Vice president for administrative services Sean Welsh and the Director of...

(N8) Perkins The College will seek to be in compliance with all storage needs and familiarize itself with federal requirements. Documents will be kept in fireproof containers by the end of 2025. This will be over seen by the Vice president for administrative services Sean Welsh and the Director of Financial Aid Keri Whitehead

View Audit 362826

Finding 571802 (2024-003)

Significant Deficiency 2024

Council of Graduate Schools

DC

Subrecipient Monitoring Eligibility Reporting

Description:Significant deficiency in FFATA reporting threshold. Planned Corrective Action: CGS will familiarize itself with all FFATA reporting requirements to ensure that the $30,000.00 threshold for first-tier subawards will be reported to FSRS with all reporting deadlines observed by building th...

Description:Significant deficiency in FFATA reporting threshold. Planned Corrective Action: CGS will familiarize itself with all FFATA reporting requirements to ensure that the $30,000.00 threshold for first-tier subawards will be reported to FSRS with all reporting deadlines observed by building this requirement into the grants management calendaring system. Completion Date: October 1, 2025 Responsible Person: Keith Peregonov, VP for Finance, Human Resources and Operations

View Audit 362812

Finding 571794 (2024-002)

Significant Deficiency 2024

Council of Graduate Schools

DC

Procurement, Suspension & Debarment § 200.320

Description: Significant deficiency in procurement compliance. Planned Corrective Action: CGS will revise its internal procurement policies to ensure that all amounts, regardless of vendor or how they will be charged within the accounting system over the micro-purchase threshold, currently $10,000.0...

Description: Significant deficiency in procurement compliance. Planned Corrective Action: CGS will revise its internal procurement policies to ensure that all amounts, regardless of vendor or how they will be charged within the accounting system over the micro-purchase threshold, currently $10,000.00, be considered in the aggregate and formally bid out accordingly with written responses retained internally as support. Additionally, in cases where specific agency approval is required for a procurement, such will be obtained before any awards are made. Completion Date: October 1, 2025 Responsible Person: Keith Peregonov, VP for Finance, Human Resources and Operations

View Audit 362812

Finding 571788 (2024-001)

Significant Deficiency 2024

Council of Graduate Schools

DC

Allowable Costs / Cost Principles Reporting Internal Control / Segregation of Duties § 200.502 § 200.510

Description: The SEFA schedule included unallowable costs. Planned Corrective ActionL CGS will revise its SEFA preparation procedures to ensure that only allowable and properly reimbursable expenditures on federal awards are reported. Additional training will be scheduled for those responsible sta...

Description: The SEFA schedule included unallowable costs. Planned Corrective ActionL CGS will revise its SEFA preparation procedures to ensure that only allowable and properly reimbursable expenditures on federal awards are reported. Additional training will be scheduled for those responsible staff members to ensure that this error does not happen in the future. Anticipated Completion Date: October 1, 2025 Responsible Person: Keith Peregonov, VP for Finance, Human Resources and Operations

View Audit 362812

Finding 571786 (2024-002)

Significant Deficiency 2024

Housing Authority of Monroe County

PA

Questioned Costs HUD Housing Programs Special Tests & Provisions

Views of responsible officials and planned correction action: The Authority has recognized the deficiencies in the Housing Voucher Cluster and will implement internal control procedures that will ensure compliance with federal regulations. Linda Kaufman, Executive Director, is responsible for implem...

Views of responsible officials and planned correction action: The Authority has recognized the deficiencies in the Housing Voucher Cluster and will implement internal control procedures that will ensure compliance with federal regulations. Linda Kaufman, Executive Director, is responsible for implementing this corrective action by December 31, 2025.

View Audit 362811 Questioned Costs: $1

Finding 571782 (2024-001)

Significant Deficiency 2024

Prc

CA

Subrecipient Monitoring Reporting Significant Deficiency § 200.512

Corrective Action Plan For the year ended June 30, 2024 2024-001 Compliance Over Reporting Response and Corrective Action Plan: The June 30, 2024 audit package were delayed due to several factors including a change in finance leadership whereby the new leadership was not part of the 2023-2024 accoun...

Corrective Action Plan For the year ended June 30, 2024 2024-001 Compliance Over Reporting Response and Corrective Action Plan: The June 30, 2024 audit package were delayed due to several factors including a change in finance leadership whereby the new leadership was not part of the 2023-2024 accounting oversight. Additionally, during the fiscal year several system transitions occurred including a change in accounting software, change in accounts payable approval software, change in banks and investment accounts. Finally, without permanent accounting leadership, proper account reconciliations had been neglected are prepared well after the fiscal year end. A full time, permanent CFO was hired July 1, 2024 and has been working with the existing finance team to maintain proper accounting records including an updated general ledger reconciled to sub ledgers for all balance sheet accounts. It is anticipated that the audit package for fiscal year end June 30, 2025 will be completed timely. Anticipated Completion Date: The process to improve timely audit package report has been ongoing throughout fiscal year 2025 and the 2025 audit is projected to be completed by December31, 2025. Responsible party: Brent Willman, CFO and Lanny Suwarno, Controller

View Audit 362805

Finding 571781 (2024-001)

Significant Deficiency 2024

Chuan Teng

CA

Reporting Significant Deficiency Matching / Level of Effort / Earmarking § 200.512

Corrective Action Plan For the year ended June 30, 2024 2024-001 Compliance Over Reporting Response and Corrective Action Plan: The June 30, 2024 audit package was delayed due to several factors including a change in finance leadership whereby the new leadership was not part of the 2023-2024 account...

Corrective Action Plan For the year ended June 30, 2024 2024-001 Compliance Over Reporting Response and Corrective Action Plan: The June 30, 2024 audit package was delayed due to several factors including a change in finance leadership whereby the new leadership was not part of the 2023-2024 accounting oversight. Additionally, during the fiscal year several system transitions occurred including a change in accounting software, change in accounts payable approval software, change in banks and investment accounts. Finally, without permanent accounting leadership, proper account reconciliations had been neglected are prepared well after the fiscal year end. A full time, permanent CFO was hired July 1, 2024 and has been working with the existing finance team to maintain proper accounting records including an updated general ledger reconciled to sub ledgers for all balance sheet accounts. It is anticipated that the audit package for fiscal year end June 30, 2025 will be completed timely. Anticipated Completion Date: The process to improve timely audit package report has been ongoing throughout fiscal year 2025 and the 2025 audit is projected to be completed by December31, 2025. Responsible party: Brent Willman, CFO and Lanny Suwarno, Controller

View Audit 362804

Finding 571772 (2024-007)

Material Weakness 2024

City of Commerce

CA

Procurement, Suspension & Debarment

The City of Commerce will ensure, before contracting, that none of its vendors are suspended, debarred, ineligible, or voluntarily excluded from participating in federally assisted transactions or procurements. To accomplish this, the Transportation department will verify that the vendors are not ex...

The City of Commerce will ensure, before contracting, that none of its vendors are suspended, debarred, ineligible, or voluntarily excluded from participating in federally assisted transactions or procurements. To accomplish this, the Transportation department will verify that the vendors are not excluded or disqualified by checking SAM exclusions (at SAM.gov), collecting a certification, or adding a clause or condition to the covered transaction. As a best practice, the department will print the screen with the search results to include in the award or procurement file or to have a checklist notating when SAM.gov was reviewed. If the City of Commerce becomes aware after the vendor award that an excluded party is participating in a covered transaction, the City shall promptly inform the FTA regional office in writing. Further, the Transportation Director has addressed this finding during fiscal year 2024-2025 by creating a database to track vendor verification status. This new procedure requires review of the database on a quarterly basis, which includes following up with vendors with expired certifications and documenting the findings. The Sam certification documents are stored in the City’s database and is accessible to the Finance department. Responsible Persons: Claude McFerguson – Director of Transportation Date of Implementation: May 19, 2025

View Audit 362784

Finding 571766 (2024-006)

Material Weakness 2024

City of Commerce

CA

Allowable Costs / Cost Principles § 200.430

Payroll and Human resources will adhere to established policies and procedures and improve internal controls policies ensuring timecards are reviewed and approved by appropriate supervisors before payroll processing. Personnel Action Forms (PAFs) will be required for part-time employees along with f...

Payroll and Human resources will adhere to established policies and procedures and improve internal controls policies ensuring timecards are reviewed and approved by appropriate supervisors before payroll processing. Personnel Action Forms (PAFs) will be required for part-time employees along with full-time employees and regularly updated to reflect on any salary step or compensation changes. Finance and HR staff will periodically review payroll records and ensure accuracy of positions, pay, step, and general accounting cost center allocations. Responsible Persons: Alvaro Castellon – Director of Finance & Ela Pappo – Director of Human Resources Date of Implementation: June 30, 2026

View Audit 362784

Finding 571761 (2024-005)

Significant Deficiency 2024

City of Commerce

CA

Cash Management Internal Control / Segregation of Duties

The City will work on a formal cash management policy and procedure concerning federal grants. This policy will include the process of preparing, reviewing, and approving drawdowns with final approvals from the City Manager. The transportation department will work on a tracking system monitoring gra...

The City will work on a formal cash management policy and procedure concerning federal grants. This policy will include the process of preparing, reviewing, and approving drawdowns with final approvals from the City Manager. The transportation department will work on a tracking system monitoring grant expenditures and drawdowns. Responsible Persons: Claude McFerguson – Director of Transportation Date of Implementation: May 19, 2025

View Audit 362784

Finding 571760 (2024-003)

Material Weakness 2024

City of Stillwater

MN

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

U.S. Department of the Treasury State and Local Fiscal Recovery Funds Assistance Listing Number: 21.027 Award Period: 2024 Recommendation: We recommend the City implement internal controls to ensure that all procurement documentation is retained. Explanation of disagreement with audit finding: The...

U.S. Department of the Treasury State and Local Fiscal Recovery Funds Assistance Listing Number: 21.027 Award Period: 2024 Recommendation: We recommend the City implement internal controls to ensure that all procurement documentation is retained. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action planned in response to finding: The City will implement a formal procurement policy and internal controls to ensure compliance with procurement standards. Name of the contact person responsible for corrective action: Sharon Provos, Finance Director Planned completion date for corrective action plan: December 31, 2025 FINDINGS— MINNESOTA LEGAL COMPLIANCE Our audit did not disclose any matters required to be reported in accordance with the Minnesota Legal Compliance Audit Guide for Counties.

View Audit 362777

Finding 571759 (2024-002)

Material Weakness 2024

City of Stillwater

MN

Procurement, Suspension & Debarment

U.S. Department of the Treasury State and Local Fiscal Recovery Funds Assistance Listing Number: 21.027 Award Period: 2024 Recommendation: We recommend that the City formalizes their suspension and debarment procedures in a policy and ensure they check suspension and debarment for all vendors prior...

U.S. Department of the Treasury State and Local Fiscal Recovery Funds Assistance Listing Number: 21.027 Award Period: 2024 Recommendation: We recommend that the City formalizes their suspension and debarment procedures in a policy and ensure they check suspension and debarment for all vendors prior to entering into a covered transaction. . Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action planned in response to finding: The City will implement a formal suspension and debarment policy. Name of the contact person responsible for corrective action: Sharon Provos, Finance Director Planned completion date for corrective action plan: December 31, 2025

View Audit 362777

Finding 571758 (2024-001)

Material Weakness 2024

City of Stillwater

MN

Procurement, Suspension & Debarment Material Weakness Internal Control / Segregation of Duties

U.S. Department of the Treasury State and Local Fiscal Recovery Funds Assistance Listing Number: 21.027 Award Period: 2024 Recommendation: We recommend the City implement a formal procurement policy, which should be in place to ensure compliance with program requirements and procurement standards. ...

U.S. Department of the Treasury State and Local Fiscal Recovery Funds Assistance Listing Number: 21.027 Award Period: 2024 Recommendation: We recommend the City implement a formal procurement policy, which should be in place to ensure compliance with program requirements and procurement standards. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action planned in response to finding: The City will implement a formal procurement policy. Name of the contact person responsible for corrective action: Sharon Provos, Finance Director Planned completion date for corrective action plan: December 31, 2025

View Audit 362777

Finding 571757 (2024-101)

Significant Deficiency 2024

East Mesa Charter Elementary School

AZ

Internal Control / Segregation of Duties § 200.430

Management agrees with the finding and has already begun implementing corrective actions as stated in the Recommendation, including additional training for staff and improved review procedures. Management is committed to addressing these issues promptly to ensure the accuracy as it relates to payrat...

Management agrees with the finding and has already begun implementing corrective actions as stated in the Recommendation, including additional training for staff and improved review procedures. Management is committed to addressing these issues promptly to ensure the accuracy as it relates to payrates, amounts, recorded on timesheets and time off approvals.

View Audit 362771

Corrective Action Plans

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