Corrective Action Plans

Finding 15986 (2022-039)

Material Weakness 2022

State of Washington C/o Office of Financial Management

WA

Subrecipient Monitoring

Finding: The Department of Commerce did not have adequate internal controls over and did not comply with reporting requirements for the Low-Income Home Energy Assistance Program. Questioned Costs: Assistance Listing # 93.568 93.568 COVID-19 Amount $0 Status: Corrective action complete Co...

Finding: The Department of Commerce did not have adequate internal controls over and did not comply with reporting requirements for the Low-Income Home Energy Assistance Program. Questioned Costs: Assistance Listing # 93.568 93.568 COVID-19 Amount $0 Status: Corrective action complete Corrective Action: The Low-Income Home Energy Assistance Program (LIHEAP) receives awards from one funding source in a typical program year. During fiscal year 2022, the Department received additional COVID Pandemic funds from additional sources. The Department was instructed to keep and track all funds separately. The U.S. Department of Health and Human Services (HHS) issued the Action Transmittal LIHEAP-AT-2022-02 Performance Data Form for Fiscal Year 2021 on March 14, 2022. The Action Transmittal states that the first page of the federal report was to include all Coronavirus Aid, Relief, and Economic Security Act and the American Rescue Plan Act funds as combined and separated out in subsequent pages of the report. To meet reporting requirements, the Department tracked and reported all funds separately for regular LIHEAP funding and additional LIHEAP funding. The reports were reviewed and accepted by HHS and APPRISE, a contractor of HHS. The Department follows the reporting process outlined below: ? Program manager pulls the necessary reports. ? Managing director (MD) reviews reports before submittal. ? Program manager submits reports once MD approval is received. ? Program manager receives notice that the report has been accepted by the funder. ? Program manager saves a copy of the report, documentation, and acceptance. The program manager is working with the HHS contractor, APPRISE, to revise the reporting submission. The conditions noted in this finding were previously reported in finding 2021-032. Completion Date: March 2023 Agency Contact: Gena Allen Internal Control Officer PO Box 42525 Olympia, WA 98504-2525 (360) 480-5149 Gena.Allen@Commerce.wa.gov

View Audit 23129

Finding 15985 (2022-038)

Material Weakness 2022

State of Washington C/o Office of Financial Management

WA

Subrecipient Monitoring Matching / Level of Effort / Earmarking

Finding: The Department of Commerce did not have adequate internal controls over and did not comply with requirements to ensure it filed reports required by the Federal Funding Accountability and Transparency Act. Questioned Costs: Assistance Listing # 93.568 93.568 COVID-19 Amount $0 Stat...

Finding: The Department of Commerce did not have adequate internal controls over and did not comply with requirements to ensure it filed reports required by the Federal Funding Accountability and Transparency Act. Questioned Costs: Assistance Listing # 93.568 93.568 COVID-19 Amount $0 Status: Corrective action complete Corrective Action: The Department has two programs that administer the two different program funding activities. Corrective actions are listed separately for each program to reflect slightly different implementation timelines. Low-Income Home Energy Assistance Program (LIHEAP) The program added all current awards to the Federal Funding Accountability and Transparency Act (FFATA) Subaward Reporting System and data entry for the sub-awardees was completed as of April 15, 2022. In April 2022, the program implemented the following procedures to strengthen internal controls and to ensure compliance with the reporting requirements: ? Designated the LIHEAP program manager to be responsible for performing the FFATA reporting duties. ? Established a procedure to monitor subawards upon receiving an award letter from the federal grantor, including reviewing incoming amendments and determining if the threshold for FFATA reporting has been reached. ? Stipulated the due date of report submission to be 30 days after the assistant director signs the obligation memo to ensure that the program meets FFATA reporting deadlines. ? Required each award and amendment to be entered separately into the FFATA Subaward Reporting System. The program provided and will continue to provide training to program staff before the annual technical assistance and training conference for sub- grantees. The training consists of the FFATA requirement overview and walkthrough of the Department?s internal FFATA reporting procedures. The program will continue to review the FFATA procedures on an annual basis to ensure compliance with current federal requirements. Corrective action was completed for the Low-Income Home Energy Assistance Program in April 2022. Low-Income Weatherization Program The Low-Income Weatherization Program added all current awards to the FFATA Subaward Reporting System and data entry of the awards was completed as of January 15, 2023. In response to the finding, the program implemented the following procedures to strengthen internal controls and to ensure compliance with the reporting requirements: ? Award letters and funding allocations will be reviewed by the budget team and assistant director before issuing subawards to the weatherization network. ? Added FFATA reporting requirements to the obligation process for contracting funds, which includes an obligation memo that outlines the amounts the program intends to pass through to subrecipients and contractors. ? Designated the Weatherization Program coordinator to be responsible for performing the FFATA reporting duties. ? Established a procedure to monitor subawards upon receiving an award letter from the federal grantor, including reviewing incoming amendments and determining if the threshold for FFATA reporting has been reached. ? Stipulated the due date of report submission to be 30 days after the assistant director signs the obligation memo to ensure that the program meets FFATA reporting deadlines. The program will provide training to all relevant current staff and future staff at the time of onboarding, including supervisors, program managers, and program coordinators. The training will consist of a FFATA requirement overview and walkthrough of the Department?s internal FFATA reporting procedures. The Department will review the FFATA procedures on an annual basis to ensure compliance with current federal requirements. Corrective action was completed for the Low-Income Weatherization Program in January 2023. The conditions noted in this finding were previously reported in finding 2021-031. Completion Date: January 2023 Agency Contact: Gena Allen Internal Control Officer PO Box 42525 Olympia, WA 98504-2525 (360) 480-5149 Gena.Allen@Commerce.wa.gov

View Audit 23129

Finding 15981 (2022-037)

Material Weakness 2022

State of Washington C/o Office of Financial Management

WA

Subrecipient Monitoring Internal Control / Segregation of Duties Allowable Costs / Cost Principles

Finding: The Department of Social and Health Services did not have adequate internal controls over and did not comply with requirements to ensure staff properly considered the income information obtained from data matching when determining client eligibility and benefits for the Temporary Assistanc...

Finding: The Department of Social and Health Services did not have adequate internal controls over and did not comply with requirements to ensure staff properly considered the income information obtained from data matching when determining client eligibility and benefits for the Temporary Assistance for Needy Families program. Questioned Costs: Assistance Listing # 93.558 Amount $0 Status: Corrective action not taken Corrective Action: The Department does not concur with the finding. The Department has established processes in place to ensure income information is properly considered during client eligibility and benefits determination for the Temporary Assistance for Needy Families (TANF) Program. During eligibility determination at application intake, the eligibility worker: ? Interviews the client to determine income. ? Compares client reported information and cross matches against the Income Eligibility and Verification System (IEVS) per the Code of Federal Regulations (CFR). ? Resolves discrepancies for all new or previously unverified information received. ? Uses the information to determine if the client income is below the maximum earned income limits for TANF per WAC 388-478-0035. ? Verifies all circumstances as required in WAC 388-490-0005 and follows requirements when discrepancies exist, which include taking appropriate actions if the information is questionable, confusing, or outdated. The Department utilizes Spider, which is a tool that combines several different data matches including IEVS. In addition, the Department uses templates to appropriately and comprehensively document the eligibility determination to ensure consistency, accuracy, and that lean processes are followed. ? The Earned Income Template o Addresses income received within 30 days of the application date and any discrepancies found between the case record, online verification systems, previously projected income, and income type. o Does not require documentation if there is no income reported and when no discrepancy is found in cross matches. ? The Final Narrative Template o Includes completing check boxes to document types of cross matches reviewed during application intake and a summary of the transactions that occurred. In all seven exceptions identified by the auditors, the client?s situation did not require the eligibility workers to use the Earned Income Templates due to: ? No income reported. ? No income found in IEVS and other cross matches. ? No discrepancies. ? No changes within 30 days. The eligibility workers did create documentation using the Final Narrative Template for all seven cases with notation stating: ?Reviewed the following system(s): Spider.? All these actions were consistent and aligned with the Department?s "Standard Remarks and Narrative Documentation? procedures. Alerts are not generated for all income fluctuations but as appropriate when a review and potential action is required. This is to minimize creating unnecessary alerts which would take staff time away from other required and mission-critical actions. The Department asserts that the system is working as designed, which is evidenced by the fact that the Department accurately determined eligibility in all seven cases identified as exceptions by the auditors. The Department will continue to: ? Review IEVS information at application intake and verify and document any discrepancies between what is reported by the household and what is shown in the cross matches. ? Use templates to ensure documentation supports the eligibility decisions. ? Generate alerts when an applicant is budgeted with zero income, but the IEVS data match shows income. ? Use the final narrative documentation template, that includes check boxes, to notate cross matches reviewed during application intake. Completion Date: Not applicable Agency Contact: Rick Meyer External Audit Compliance Manager PO Box 45804 Olympia, WA 98504-5804 (360) 664-6027 Richard.Meyer@dshs.wa.gov

View Audit 23129

Finding 15980 (2022-036)

Material Weakness 2022

State of Washington C/o Office of Financial Management

WA

Questioned Costs Allowable Costs / Cost Principles Subrecipient Monitoring § 200.1 § 200.410 § 200.516

Finding: The Department of Children, Youth, and Families did not have adequate internal controls over and did not comply with client eligibility requirements for child care services paid with the Child Care and Development Fund and Temporary Assistance for Needy Families funds. Questioned Costs:...

Finding: The Department of Children, Youth, and Families did not have adequate internal controls over and did not comply with client eligibility requirements for child care services paid with the Child Care and Development Fund and Temporary Assistance for Needy Families funds. Questioned Costs: Assistance Listing # 93.558 93.575 93.575 COVID-19 93.596 Amount $5,689 $5,078 Status: Corrective action in progress Corrective Action: The Child Care and Development Fund (CCDF) program was previously managed by the Department of Social and Health Services and the Department of Early Learning. Since the program transitioned in 2019, the Department has been making efforts to strengthen internal controls over payments to child care providers and other CCDF grant requirements. In response to the finding, the Department established overpayments and referred them to the Office of Financial Recovery for collection. As part of process and internal control improvements, the Department implemented the Fair Start for Kids Act (FSKA) on October 1, 2021, to simplify rules and expand eligibility. The FSKA: ? Raises the State Median Income threshold, increasing the number of eligible two-parent households. ? Caps copayments at $115 for applicants and $215 for reapplicants, reducing the copay amounts for two-parent households. ? Acts as disincentives for fraud as families are less likely to report the non-custodial parent who is not a household member. The Department continues to review cases for accuracy following these new rules and policies. In September 2022, the Office of Child Care (OCC) released a document to help CCDF lead agencies simplify the format and content of child care assistance applications, which includes guidance on defining, collecting, and verifying eligibility information. The Department continues to follow guidance from OCC to update policies and procedures within the authority under the Revised Code of Washington and Washington Administrative Code. This includes: ? Updating policies and procedures for cases with simplified eligibility such as families experiencing homelessness or families with children receiving protective services. Public Benefit Specialist (PBS) staff received training in the winter of 2022, which included the use of systems data to establish household composition. ? Developing a guide for staff to more effectively use the Employment Security Department (ESD) quarterly reported data for eligibility determinations. The ESD data is directly reported by the employer, secured, and reduces delays in benefits by eliminating the wait for employment verification. It is also simple to use for the PBS staff and the auditors, thereby reducing income calculation errors and removing the need for consumers to provide documentation to support the eligibility determination. This procedural change and training are expected to be completed by the summer of 2023. The conditions noted in this finding were previously reported in findings 2021-035, 2020-039, 2019-032, 2018-030, 2017-026, 2016-023, 2015-026, 2014-026, 2013-017 and 2012-30. Completion Date: Estimated October 2023 Agency Contact: Stefanie Niemela Audit Liaison PO Box 40970 Olympia, WA 98504-0970 (360) 725-4402 stefanie.niemela@dcyf.wa.gov

View Audit 23129 Questioned Costs: $1

Finding 15979 (2022-035)

Material Weakness 2022

State of Washington C/o Office of Financial Management

WA

Questioned Costs Allowable Costs / Cost Principles Subrecipient Monitoring § 200.1 § 200.403 § 200.410 § 200.53

Finding: The Department of Children, Youth, and Families did not have adequate internal controls over and did not comply with requirements to ensure payments to child care providers paid with Temporary Assistance for Needy Families funds were allowable and properly supported. Questioned Costs: A...

Finding: The Department of Children, Youth, and Families did not have adequate internal controls over and did not comply with requirements to ensure payments to child care providers paid with Temporary Assistance for Needy Families funds were allowable and properly supported. Questioned Costs: Assistance Listing # 93.558 Amount $67,699,429 Status: Corrective action in progress Corrective Action: The Working Connections Child Care (WCCC) program was previously managed by the Department of Social and Health Services (DSHS) and the Department of Early Learning. Since the program transitioned in 2019, the Department has been making efforts to strengthen internal controls over payments to child care providers and other grant requirements. The Department implemented grant-level management of all federal funds, including the Temporary Assistance for Needy Families (TANF) grant. The Department allocated the TANF grant to eligible clients and allowable activities in compliance with 45 CFR 98.67. For the fiscal year 2021 program audit, the State Auditor?s Office (SAO) issued a finding with $32 questioned costs for non-compliance with the CCDF eligibility requirement. No other findings, management letters, or exit items were reported in this compliance area or the cost allocation of funds based on eligibility for the CCDF or TANF grants. Given that eligibility or cost allocation has not been an area of concern, and transfers were processed between TANF and CCDF source of funds with the same eligibility criteria, the Department is assured that TANF funding was spent appropriately within federal regulations. The Department is committed to improving internal controls. The Department does not currently have the resources to develop and maintain the business process redesign, as well as the information technology initiatives necessary to meet the level of assurance recommended by SAO. In response to prior year?s audit recommendations, the Department has submitted a budget request to the Legislature in the 2023-2025 biennial budget for additional resources to process adjustments to include transaction-level data. As part of the audit resolution process, the Department of Health and Human Services (HHS), which oversees the CCDF program at the federal level, reviews all SAO findings and issues management decision letters. The letters will reflect the grantor?s determination of whether an audit finding is sustained, the reasons for the decision, and the required actions by the auditee. When a management decision is issued for the fiscal year 2021 finding, the Department will work with HHS and follow the audit resolution process. Completion Date: Agency Contact: The conditions noted in this finding were previously reported in finding 2021-028. Estimated December 2024 Stefanie Niemela Audit Liaison PO Box 40970 Olympia, WA 98504-0970 (360) 725-4402 stefanie.niemela@dcyf.wa.gov

View Audit 23129 Questioned Costs: $1

Finding 15976 (2022-034)

Material Weakness 2022

State of Washington C/o Office of Financial Management

WA

Subrecipient Monitoring Reporting Equipment & Real Property Management

Finding: The Department of Health did not have adequate internal controls over and did not comply with reporting requirements for the Epidemiology and Laboratory Capacity for Infectious Diseases program. Questioned Costs: Assistance Listing # 93.323 93.323 COVID-19 Status: Corrective action...

Finding: The Department of Health did not have adequate internal controls over and did not comply with reporting requirements for the Epidemiology and Laboratory Capacity for Infectious Diseases program. Questioned Costs: Assistance Listing # 93.323 93.323 COVID-19 Status: Corrective action in progress Corrective Action: The Department partially agrees with the finding. For the two reports on which the auditors took exceptions, the Epidemiology and Laboratory Capacity for Infectious Diseases (ELC) program did discover the errors after the original reports were submitted. The Department notified the Centers for Disease Control and Prevention (CDC) about the reporting errors in February 2022, which was within the reporting period. However, due to a technical issue, the federal reporting system would not allow ELC program staff to input edits to the reports for the months of July through October 2021. After a discussion with CDC, program staff were advised to submit the corrected data of the previous reports via email, which was subsequently accepted by the grantor and the issue was resolved. The Department agrees there needs to be evidence of documented reviews of reports and is implementing steps to ensure review and approval of reports are well documented and retained before final submission to the federal grantor. Completion Date: Estimated December 2023 Agency Contact: Jeff Arbuckle External Audit Manager PO Box 47890 Olympia, WA 98504-7890 (360) 701-0798 Jeff.Arbuckle@doh.wa.gov

View Audit 23129

Finding 15975 (2022-033)

Material Weakness 2022

State of Washington C/o Office of Financial Management

WA

Questioned Costs Subrecipient Monitoring Allowable Costs / Cost Principles § 200.00 § 200.516

Finding: The Department of Health did not have adequate internal controls over and did not comply with fiscal monitoring requirements to ensure subrecipients of the Epidemiology and Laboratory Capacity for Infectious Diseases program only used funds for allowable activities and met cost principles....

Finding: The Department of Health did not have adequate internal controls over and did not comply with fiscal monitoring requirements to ensure subrecipients of the Epidemiology and Laboratory Capacity for Infectious Diseases program only used funds for allowable activities and met cost principles. Questioned Costs: Assistance Listing # 93.323 93.323 COVID-19 Amount $1,644,873 Status: Corrective action in progress Corrective Action: The Department partially concurs with the finding. The Department agrees with the auditors? recommendation over subrecipient monitoring to require transactions that were previously coded as ?COVID? to be recorded with the specific revenue source and will do so in future monitoring visits. The Department does not agree with the auditors? assessment of a material weakness in internal controls over subrecipient monitoring. When staff conduct fiscal monitoring site visits, key control systems including payroll and disbursements are reviewed and documented. These monitoring activities ensure internal controls are operating effectively and providing assurance that reimbursements are allowable and accurate. The Department acknowledges that internal controls can be strengthened over provider payments and will take the following actions: ? Require payments to providers be adequately supported by the appropriate backup documentation and subrecipient risk assessments. ? Update the documentation requirements to align with the identified risk levels and federal guidance. ? Develop tracking sheets, which enable staff to record details from backup documentation reviews and payment approvals. ? Provide additional training to staff in the Epidemiology and Laboratory Capacity for Infectious Diseases (ELC) program responsible for reviewing invoices. The Department disagrees with the SAO?s assessment of a material weakness in internal controls over the consolidated contract provider payment process for the ELC program. The Department has established processes in place to ensure payments are allowable and meet cost principles for the program. These include: ? Perform annual review and approval of detailed subrecipient budgets. ? Compare invoice amounts to budgeted amounts for reasonableness before payment approval. ? Provide subrecipients regular technical assistance and training on applicable policies related to fiscal and programmatic processes. ? Conduct biennial program and fiscal monitoring visits to subrecipients as part of the Department?s monitoring procedures. In addition, the ELC program has monitoring controls in place and evidence of review at the program level. Program staff maintain a detailed spreadsheet that documents review and approval and includes any amounts that need to be withheld until issues with invoice support are resolved. These reviews are to be completed within the 10-day period before payment is released. The Department is planning on meeting with federal grantors to work through the exceptions and questioned costs identified in the finding. Completion Date: Estimated March 2024 Agency Contact: Jeff Arbuckle External Audit Manager PO Box 47890 Olympia, WA 98504-7890 (360) 701-0798 Jeff.Arbuckle@doh.wa.gov

View Audit 23129 Questioned Costs: $1

Finding 15970 (2022-032)

Material Weakness 2022

State of Washington C/o Office of Financial Management

WA

Subrecipient Monitoring Internal Control / Segregation of Duties Matching / Level of Effort / Earmarking

Finding: The Department of Health did not have adequate internal controls to ensure it filed accurate and timely reports required by the Federal Funding Accountability and Transparency Act for the Immunization Cooperative Agreements program. Questioned Costs: Assistance Listing # 93.268 93.26...

Finding: The Department of Health did not have adequate internal controls to ensure it filed accurate and timely reports required by the Federal Funding Accountability and Transparency Act for the Immunization Cooperative Agreements program. Questioned Costs: Assistance Listing # 93.268 93.268 COVID-19 Amount $0 Status: Corrective action in progress Corrective Action: The Department agrees with the finding. The Department will review internal processes and determine when a review is most effective to ensure accuracy and completeness of the Federal Funding Accountability and Transparency Act reporting submissions. Management has already addressed the obligation dates to ensure the execution date of the award or amendment is reported. Completion Date: Estimated July 2024 Agency Contact: Jeff Arbuckle External Audit Manager PO Box 47890 Olympia, WA 98504-7890 (360) 701-0798 Jeff.Arbuckle@doh.wa.gov

View Audit 23129

Finding 15969 (2022-031)

Material Weakness 2022

State of Washington C/o Office of Financial Management

WA

Questioned Costs Subrecipient Monitoring Allowable Costs / Cost Principles § 200.00 § 200.1 § 200.410 § 200.516

Finding: The Department of Health did not have adequate internal controls over and did not comply with requirements to ensure payments to providers were allowable, met cost principles, and were within the period of performance for the Immunization Cooperative Agreements program. Questioned Costs:...

Finding: The Department of Health did not have adequate internal controls over and did not comply with requirements to ensure payments to providers were allowable, met cost principles, and were within the period of performance for the Immunization Cooperative Agreements program. Questioned Costs: Assistance Listing # 93.268 93.268 COVID-19 Status: Corrective action in progress Corrective Action: The Department partially agrees with the finding. The Department agrees that internal controls can be strengthened over provider payments to ensure funds are allowable and spent within the period of performance. The following actions were taken: ? Required payments to providers contain adequate support in line with the A19 matrix and subrecipients? risk assessments. ? Provided additional training to staff in the immunization unit responsible for reviewing invoices. ? Developed tracking sheets which enable staff to record details from backup documentation reviews and payment approvals. The Department will review the control weaknesses identified in the audit related to the consolidated contract payment process and will determine if changes need to be made. The Department disagrees with the audit exceptions and questioned costs identified in the finding. The Department will work with the federal grantor to resolve any questioned costs. Completion Date: Estimated December 2023 Agency Contact: Jeff Arbuckle External Audit Manager PO Box 47890 Olympia, WA 98504-7890 (360) 701-0798 Jeff.Arbuckle@doh.wa.gov

View Audit 23129 Questioned Costs: $1

Finding 15956 (2022-004)

Significant Deficiency 2022

Human Services of Faribault and Martin Counties

MN

Reporting Significant Deficiency Internal Control / Segregation of Duties

2022-004 TIMELY REPORTING Federal Agency: U.S. Department of Health and Human Services Federal Program Name: Medical Assistance Program (Medicaid Cluster) Assistance Listing Number: 93.778 Federal Award Identification Numbers and Year: 2205MN5MAP and 2205MN5ADM, 2022 Pass-Through Agency: ...

2022-004 TIMELY REPORTING Federal Agency: U.S. Department of Health and Human Services Federal Program Name: Medical Assistance Program (Medicaid Cluster) Assistance Listing Number: 93.778 Federal Award Identification Numbers and Year: 2205MN5MAP and 2205MN5ADM, 2022 Pass-Through Agency: Minnesota Department of Human Services Pass-Through Numbers: 2205MN5MAP and 2205MN5ADM Compliance Requirement Affected: Reporting Award Period: Year-Ended December 31, 2022 Type of Finding: Significant Deficiency in Internal Control over Compliance and Other Matters Recommendation: It is recommended the Agency implement control procedures to ensure all reporting deadlines are met. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: The Agency will review procedures and implement changes as needed to ensure going forward all reports are submitted timely. Name of the contact person responsible for corrective action plan: Chera Sevcik, Human Services Executive Director Planned completion date for corrective action plan: December 31, 2023

View Audit 22857

Finding 15953 (2022-004)

Material Weakness 2022

New London Community School District

IA

Internal Control / Segregation of Duties

Contact Person Anticipated Comment Comment Corrective Title Date of Number Title Action Plan Phone Number Completion 2022-004 Segregation The corrective action plan was Jessica Boyer FY23 of Duties documented in ...

Contact Person Anticipated Comment Comment Corrective Title Date of Number Title Action Plan Phone Number Completion 2022-004 Segregation The corrective action plan was Jessica Boyer FY23 of Duties documented in our response to Business Manager the auditor's comment. See the 319-367-0512 Schedule of Findings and Questioned Costs.

View Audit 22291

Finding 15952 (2022-001)

None 2022

Pacific Housing Oahu Corporation - Elderly Residence

HI

HUD Housing Programs

1. Ref. No. 2022-001: Deposit Funds Monthly to an Interest-Bearing Replacement Reserve Account Recommendation: The Company should implement a process to adhere to the Regulatory Agreement requirements and ensure that the replacement reserve account deposits are completed monthly. Action Taken: The...

1. Ref. No. 2022-001: Deposit Funds Monthly to an Interest-Bearing Replacement Reserve Account Recommendation: The Company should implement a process to adhere to the Regulatory Agreement requirements and ensure that the replacement reserve account deposits are completed monthly. Action Taken: The Company has instructed Bob Tanaka, Inc. to establish a procedure to ensure $2,000 is deposited into the replacement reserve account every month, preferably via an automated process. Contact person: Patrick Delaney (808) 523-5681, ext. 693 Anticipated Completion Date: October 31, 2023

View Audit 21384

Finding 15951 (2022-002)

None 2022

Pacific Housing Oahu Corporation - Elderly Residence

HI

HUD Housing Programs

2. Ref. No. 2022-002: Ensure Only Authorized Withdrawals are Disbursed from the Replacement Reserve Account Recommendation: Management should transfer $12,817 from the operating cash account to the replacement reserve fund. Action Taken: The Company has removed Locations/MontPac as the property ma...

2. Ref. No. 2022-002: Ensure Only Authorized Withdrawals are Disbursed from the Replacement Reserve Account Recommendation: Management should transfer $12,817 from the operating cash account to the replacement reserve fund. Action Taken: The Company has removed Locations/MontPac as the property managers on March 31, 2023 and hired Bob Tanaka, Inc. as their replacement. The Company has instructed Bob Tanaka, Inc. to transfer $12,817 from the operating bank account to the replacement reserve bank account. The Company has also instructed Bob Tanaka, Inc. to obtain HUD authorization prior to making transfers from the replacement reserve account. Contact person: Patrick Delaney (808) 523-5681, ext. 693 Anticipated Completions Date: Completed.

View Audit 21384

Finding 15949 (2022-001)

Significant Deficiency 2022

Rainbow Heights, Inc.

GA

HUD Housing Programs Internal Control / Segregation of Duties

Reportable Views of Responsible Officials: Management is in agreement with the finding and has started the process to increase to increase the policy coverage amount.

View Audit 20279

Finding 15948 (2022-005)

Significant Deficiency 2022

Chesapeake Research Consortium, Inc.

MD

Allowable Costs / Cost Principles Reporting Significant Deficiency

Environmental Protection Agency Chesapeake Bay Program - Grant No. CB96343601; Grant period - Year ended June 30, 2022 FINDING 2022-005: Internal Controls Over Financial Reporting Recommendation: Accounting processes and procedures should be reviewed and revised to include the process of all...

Environmental Protection Agency Chesapeake Bay Program - Grant No. CB96343601; Grant period - Year ended June 30, 2022 FINDING 2022-005: Internal Controls Over Financial Reporting Recommendation: Accounting processes and procedures should be reviewed and revised to include the process of allocating and recording credit card bills to corresponding grants. Action Taken: We concur with the recommendation and will adjust our processes accordingly.

View Audit 19565

Finding 15946 (2022-003)

Significant Deficiency 2022

City of Potosi, Missouri

MO

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

FEDERAL AWARD FINDINGS AND QUESTIONED COSTS FEDERAL SIGNIFICANT DEFICIENCY 2022-3 The City has not adopted written policies and procedures related to federal awards as required by Uniform Guidance. Recommendation: We recommend the City adopt the required written policies and procedures requir...

FEDERAL AWARD FINDINGS AND QUESTIONED COSTS FEDERAL SIGNIFICANT DEFICIENCY 2022-3 The City has not adopted written policies and procedures related to federal awards as required by Uniform Guidance. Recommendation: We recommend the City adopt the required written policies and procedures required by Uniform Guidance. City?s Response: The City understands the concern. The City will review and update the City of Potosi?s procurement policy to add the federal guidelines to comply with Uniform Guidance. Planned Completion Date for the Corrective Action Plan: The City plans to have its accounting procedures and controls documented by May 1, 2023.

View Audit 19560

Finding 15941 (2022-004)

None 2022

Syracuse Model Neighborhood Facility, Inc.

NY

Allowable Costs / Cost Principles

Control Deficiency 2022-004 Allocation of Functional Expenses Contact Person Responsible for Corrective Action Plan: Lawrence Williams, Chief Executive Officer. Corrective Action Plan: The Chief Executive Officer and Chief Financial Officer will ensure a detailed review is performed of expenses be...

Control Deficiency 2022-004 Allocation of Functional Expenses Contact Person Responsible for Corrective Action Plan: Lawrence Williams, Chief Executive Officer. Corrective Action Plan: The Chief Executive Officer and Chief Financial Officer will ensure a detailed review is performed of expenses between program expense and administrative expenses. Anticipated Completion Date of Corrective Action Plan: December 31, 2023

View Audit 19559

Finding 15940 (2022-003)

Significant Deficiency 2022

Syracuse Model Neighborhood Facility, Inc.

NY

Cash Management Significant Deficiency

Significant Deficiency 2022-003 Application of Cash Receipts Contact Person Responsible for Corrective Action Plan: Lawrence Williams, Chief Executive Officer. Corrective Action Plan: The Chief Executive Officer and Chief Financial Officer will ensure that all cash receipts are properly applied to...

Significant Deficiency 2022-003 Application of Cash Receipts Contact Person Responsible for Corrective Action Plan: Lawrence Williams, Chief Executive Officer. Corrective Action Plan: The Chief Executive Officer and Chief Financial Officer will ensure that all cash receipts are properly applied to the appropriate grant receivable funder and utilize any deferred revenue from the funder where appropriate. Anticipated Completion Date of Corrective Action Plan: December 31, 2023

View Audit 19559

Finding 15939 (2022-002)

Significant Deficiency 2022

Syracuse Model Neighborhood Facility, Inc.

NY

Cash Management Significant Deficiency

Significant Deficiency 2022-002 Grant Voucher Submissions Contact Person Responsible for Corrective Action Plan: Lawrence Williams, Chief Executive Officer. Corrective Action Plan: The Chief Executive Officer and Chief Financial Officer will ensure that all vouchers are prepared and submitted on a...

Significant Deficiency 2022-002 Grant Voucher Submissions Contact Person Responsible for Corrective Action Plan: Lawrence Williams, Chief Executive Officer. Corrective Action Plan: The Chief Executive Officer and Chief Financial Officer will ensure that all vouchers are prepared and submitted on a timely basis. Anticipated Completion Date of Corrective Action Plan: December 31, 2023

View Audit 19559

Finding 15938 (2022-001)

Material Weakness 2022

Syracuse Model Neighborhood Facility, Inc.

NY

Material Weakness Reporting Internal Control / Segregation of Duties

Material Weakness 2022-001 Bank Statement Reconciliations Contact Person Responsible for Corrective Action Plan: Lawrence Williams, Chief Executive Officer. Corrective Action Plan: The Chief Executive Officer and Chief Financial Officer will ensure this important control procedure is rectified to...

Material Weakness 2022-001 Bank Statement Reconciliations Contact Person Responsible for Corrective Action Plan: Lawrence Williams, Chief Executive Officer. Corrective Action Plan: The Chief Executive Officer and Chief Financial Officer will ensure this important control procedure is rectified to ensure that bank reconciliations are performed and reviewed in a timely manner. Anticipated Completion Date of Corrective Action Plan: June 30, 2023

View Audit 19559

Finding 15934 (2022-004)

Material Weakness 2022

Plainview Serenity Center, Inc.

TX

Questioned Costs

2022-004 Block Grants for Prevention and Treatment of Substance Abuse Assistance Listing No. 93.959 Material Weakness: See Finding 2022-002

View Audit 19918 Questioned Costs: $1

Finding 15933 (2022-003)

Material Weakness 2022

Plainview Serenity Center, Inc.

TX

2022-003 Block Grants for Prevention and Treatment of Substance Abuse Assistance Listing No. 93.959 Material Weakness: See Finding 2022-001

View Audit 19918

Finding 15932 (2022-001)

Significant Deficiency 2022

Connections to Success

MO

Eligibility Significant Deficiency Internal Control / Segregation of Duties

Type of Finding: Significant Deficiency in Internal Control Over Compliance ? Eligibility Recommendation: The Organization should ensure that controls exist to document and provide evidence of review procedure in effect to ensure that eligibility requirements are met beyond the initial inquiries an...

Type of Finding: Significant Deficiency in Internal Control Over Compliance ? Eligibility Recommendation: The Organization should ensure that controls exist to document and provide evidence of review procedure in effect to ensure that eligibility requirements are met beyond the initial inquiries and information gathering process. Views of Responsible Officials: There is no disagreement with the audit finding. Eligibility requirements are obtained and documented based on the requirements of the individual grants. The program staff are well versed in the requirements and ensure the participants are eligible under the grant. In August 2021, to enhance the existing practice, a Case Management system was implemented which assists in ensuring that proper documentation and approval are maintained. In September 2023, the case management system was looked over and rules were put into place to minimize or eliminate room for human error.

View Audit 19762

Finding 15931 (2022-005)

Significant Deficiency 2022

South Carolina State Housing Finance and Development Authority

SC

Reporting Significant Deficiency Internal Control / Segregation of Duties

COVID-19 Emergency Rental Assistance ? Assistance Listing Number 21.023 Recommendation: We recommend the Authority implements controls to ensure that documentation is maintained to support amounts reported. Review and approval of the amounts reported to Treasury should be documented. Explanation of ...

COVID-19 Emergency Rental Assistance ? Assistance Listing Number 21.023 Recommendation: We recommend the Authority implements controls to ensure that documentation is maintained to support amounts reported. Review and approval of the amounts reported to Treasury should be documented. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: SC Housing has expended the majority of the COVID-19 Emergency Rental Assistance funds, and the program will be ending in the coming months. The close-out plan includes the transfer and archive of all data from the third-party vendor working to implement the program. A protocol was implemented with the closeout report to Treasury for ERA1 funds in January, 2023, to retain all documentation supporting the report, and all reports moving forward, in SC Housing program files. Review of future reports by the Division Director prior to submission to Treasury will be added to the reporting process. Names of the contact persons responsible for corrective action: Amanda Colbert, Marni Holloway Planned completion date for corrective action plan: partially implemented, review will begin with next report due in April, 2023.

View Audit 19599

Finding 15918 (2022-004)

Significant Deficiency 2022

South Carolina State Housing Finance and Development Authority

SC

Significant Deficiency Internal Control / Segregation of Duties

Housing Voucher Cluster ? Assistance Listing Numbers 14.871/14.879 Recommendation: We recommend the Authority implements controls to ensure that rent reasonableness is determined prior to the effective date of the change in rent. Explanation of disagreement with audit finding: There is no disagreeme...

Housing Voucher Cluster ? Assistance Listing Numbers 14.871/14.879 Recommendation: We recommend the Authority implements controls to ensure that rent reasonableness is determined prior to the effective date of the change in rent. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: Additional training is being provided to HCP staff to insure they have a clear understanding of the rent reasonableness requirements and timing imposed by HUD. Financing Housing. Building SC. Processes have been updated to require dual authentication. Within 10 business days of receiving a request from the owner for a rent increase, or; within 10 business days of receipt of a decrease request received from HUD, or; when there has been a 10% decrease in the fair market rent that goes into effect at least 60 days before the contract anniversary date, the Housing Program Coordinator (HPC) will make a rent reasonableness determination and approve a corresponding rent adjustment when applicable. Following assessment and action determination, all files will be reviewed a second time by a Housing Administration Coordinator for accuracy and appropriateness. Both the HPC and the Administration Coordinator will be required to acknowledge the request/action taken in writing. Late actions must be justified and reviewed by the Director of Rental Assistance and Compliance prior to effecting the change and/or issuing correspondence. Memo records will be recorded on each voucher file to document actions taken. Names of the contact persons responsible for corrective action: Yolanda Dennison, Kristel Walker, Lenzy Morris, Corrie Temples Planned completion date for corrective action plan: Partially implemented; to be finalized by June 30, 2023.

View Audit 19599

Corrective Action Plans

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