Corrective Action Plans

Finding 1171313 (2025-002)

Material Weakness 2025

IN

Procurement, Suspension & Debarment § 200.303

FINDING 2025-002 Finding Subject: Child Nutrition Cluster-Procurement, Suspension and Debarment Contact Person Responsible for Corrective Action: Alda L. McIntosh Contact Phone Number and Email Address: 812-849-3663 x 1232, mcintosha@mitchell.k12.in.us Views of Responsible Officials: We concur with ...

FINDING 2025-002 Finding Subject: Child Nutrition Cluster-Procurement, Suspension and Debarment Contact Person Responsible for Corrective Action: Alda L. McIntosh Contact Phone Number and Email Address: 812-849-3663 x 1232, mcintosha@mitchell.k12.in.us Views of Responsible Officials: We concur with the findings. Description of Corrective Action Plan: Procurement • Create and maintain an internal control spreadsheet signed by the Food Service Director or Head of Maintenance, along with the Superintendent. • This procedure will ensure adequate price/rate quotations are obtained for small purchases over $10,000 and under $150,000 for all goods and services. Anticipated Completion Date: Immediately Description of Corrective Action Plan: Suspension and Debarment • Create and maintain an internal control spreadsheet signed by the Food Service Director or Head of Maintenance, along with the Superintendent. • This procedure will ensure proper verification that contractors and sub-recipients are not suspended, debarred, or otherwise excluded prior to entering into any contracts or sub-awards. Anticipated Completion Date: Immediately

View Audit 384594

Finding 1171309 (2025-001)

Material Weakness 2025

Spoon River College District No. 534

IL

Student Financial Aid

Condition: The examination disclosed 11 out of 25 student status change files tested, in which NSLDS was not updated correctly. Eight of the eleven students’ Program Begin Date reported to NSLDS is the same date as the student's most recent effective status date, although the student has been enroll...

Condition: The examination disclosed 11 out of 25 student status change files tested, in which NSLDS was not updated correctly. Eight of the eleven students’ Program Begin Date reported to NSLDS is the same date as the student's most recent effective status date, although the student has been enrolled in the program with the same CIP code with prior statuses such as Full time or Three-Quarter Time. The remaining three students were withdrawn students whose last day of attendance was not reported accurately. The auditor identified noncompliance and a significant deficiency in internal control over compliance related to the administration of Title IV federal financial aid. ________________________________________ Cause: After thorough review, it was discovered that programmatic data manipulation occurred as a result of attempts to circumvent or bypass National Student Clearinghouse enrollment system error messages, by the Information Technology department. This practice developed due to incomplete resolution of underlying system integration issues and insufficient supervisory review of the corrective steps being taken, in the past. Although no evidence of intentional misrepresentation was found, the manipulation of system data reduced the reliability of automated submissions from the Information Technology department. Furthermore, it was discovered that a Jenzabar system defect causing withdrawal dates to be incorrectly reported to the National Student Clearinghouse has occurred. Further review has discovered a default date was entered in the NSLDS system by National Student Clearinghouse, in place of the correct withdrawal date listed in the Jenzabar system. Corrective Action Plan: Action Step Responsible Persons Timeline for Completion Status/Follow-Up Identify and document all programmatic data manipulations performed to address error messages and assess impact on compliance reporting. Kylee Bump, Director of Financial Aid; Brandy Chasteen, Registrar; Raj Siddaraju, CIO November 2025 Complete Work with National Student Clearinghouse to resolve underlying system integration and understand error message issues. Kylee Bump, Director of Financial Aid; Brandy Chasteen, Registrar; Raj Siddaraju, CIO December 2025 Complete Implement formal data correction policy requiring supervisory approval for any system data adjustments. Sarah Gray, CFO & Raj Siddaraju, CIO January 2026 Completed Conduct staff training on proper error resolution procedures and reinforce internal control expectations. Sarah Gray, CFO & Raj Siddaraju, CIO January 2026 Completed Perform quarterly internal reviews of data integrity and system-generated compliance reports. Kylee Bump, Director of Financial Aid; Brandy Chasteen, Registrar; Raj Siddaraju, CIO In Place Ongoing To ensure accuracy moving forward, our Registrar will review a random sampling of our enrollment reporting through the National Student Clearinghouse throughout the semester and after degrees have been confirmed for each semester.

View Audit 384581

Finding 1171308 (2025-003)

Material Weakness 2025

City of Asheville

NC

Subrecipient Monitoring

2024-2025 CDBG AUDIT 1. Establish Procedure to Ensure FFATA Reports Are Uploaded ● Action: Formalize the reporting of FFATA into SAMS.gov as part of our contracting process ● Completion Date: 6/30/2026 ● Responsible: Community Development Division Manager, Community Development Analysts, Community D...

2024-2025 CDBG AUDIT 1. Establish Procedure to Ensure FFATA Reports Are Uploaded ● Action: Formalize the reporting of FFATA into SAMS.gov as part of our contracting process ● Completion Date: 6/30/2026 ● Responsible: Community Development Division Manager, Community Development Analysts, Community Development Coordinator ● Content: Checklist for compiling content for executed grant agreements with subrecipients will include the addition of completing FFATA requirements in SAM.gov, downloading a copy of the report, and adding to the project file folder with the fully executed agreement ● Documentation: FFATA report submitted via SAM.gov and downloaded to the project file within 30 days of agreement execution

View Audit 384579

Finding 1171305 (2025-002)

Material Weakness 2025

City of Asheville

NC

Subrecipient Monitoring Allowable Costs / Cost Principles

2026 HOME AUDIT 1. Establish Annual Monitoring Plan ● Action: Create a formalized Annual Monitoring Plan based on subrecipient risk assessments and total annual federal funding. ○ Tiered Oversight: ■ High Risk: Required on-site visits (or deep-dive virtual audits) ■ Medium/Low Risk: Desk reviews and...

2026 HOME AUDIT 1. Establish Annual Monitoring Plan ● Action: Create a formalized Annual Monitoring Plan based on subrecipient risk assessments and total annual federal funding. ○ Tiered Oversight: ■ High Risk: Required on-site visits (or deep-dive virtual audits) ■ Medium/Low Risk: Desk reviews and annual check-ins, sampling beneficiaries for eligibility. ■ Funding amount: Activities with $750,000 or more in federal funding (inclusive of all federal assistance) must undertake a single audit in addition to monitoring ● Completion Date: 2/27/2026 ● Responsible: Community Development Division Manager, Community Development Analysts ● Content: The plan will explicitly list which subrecipients are slated for which type of review each year. ● Documentation: Approved Annual Monitoring plan 2. Training and Capacity Building ● Action: All Community Development staff will undergo monitoring training ● Completion Date: 2/27/2026 ● Responsible: Community Development Manager, Community Development Analysts, Community Development Coordinator ● Content: Training will cover compliance requirements, identifying "red flags", confirming beneficiary eligibility, and internal monitoring Standard Operating Procedures and checklists. ● Documentation: Training logs and updated job aids. 3. Implementation & Execution ● Action: Initiate monitoring activities, prioritizing Higher Risk subrecipients identified in the initial assessment, and requesting single audits from subrecipients who received more than $750,000 in federal funding ● Completion Date: 6/30/2026 and on-going ● Responsible: Community Development Analysts, Community Development Coordinator ● Content: Analysts will produce written monitoring reports for each review following established policies and checklists for each program, which the Community Development Manager will sign off on. ● Documentation: Approved monitoring reports will be recorded and accessible for reference

View Audit 384579

Finding 1171166 (2025-007)

Material Weakness 2025

Griggsville-Perry Community Unit School District #4

IL

Internal Control / Segregation of Duties

FINDINGS- MAJOR FEDERAL AWARD PROGRAMS Material Weakness U.S. DEPARTMENT OF AGRICULTURE- 2024 & 2025 Child Nutrition Cluster- AL Number 10.555 & 10.553 Finding No.: 2025-007 Condition: The District's accounting function is controlled by a limited number of individuals resulting in the inadequate seg...

FINDINGS- MAJOR FEDERAL AWARD PROGRAMS Material Weakness U.S. DEPARTMENT OF AGRICULTURE- 2024 & 2025 Child Nutrition Cluster- AL Number 10.555 & 10.553 Finding No.: 2025-007 Condition: The District's accounting function is controlled by a limited number of individuals resulting in the inadequate segregation of duties. Recommendation: The District should segregate duties where possible and create checks and balances. The Board should be aware of this issue and closely review and approve all financial related information. Action Taken: The District concurs with the recommendation. The District is reviewing its financial policies and procedures to better segregate duties where possible. The Superintendent will make the Board aware of their responsibility in regards to reviewing and approving financial items and asking questions. Anticipated Date of Completion: Ongoing

View Audit 384573

Finding 1171164 (2025-006)

Material Weakness 2025

Griggsville-Perry Community Unit School District #4

IL

Internal Control / Segregation of Duties

FINDINGS- MAJOR FEDERAL AWARD PROGRAMS Material Weakness U.S. DEPARTMENT OF EDUCATION- 2025 Elementary and Secondary School Emergency Relief Fund- AL Number 84.425 Finding No.: 2025-006 Condition: The District's accounting function is controlled by a limited number of individuals resulting in the in...

FINDINGS- MAJOR FEDERAL AWARD PROGRAMS Material Weakness U.S. DEPARTMENT OF EDUCATION- 2025 Elementary and Secondary School Emergency Relief Fund- AL Number 84.425 Finding No.: 2025-006 Condition: The District's accounting function is controlled by a limited number of individuals resulting in the inadequate segregation of duties. Recommendation: The District should segregate duties where possible and create checks and balances. The Board should be aware of this issue and closely review and approve all financial related information. Action Taken: The District concurs with the recommendation. The District is reviewing its financial policies and procedures to better segregate duties where possible. The Superintendent will make the Board aware of their responsibility in regards to reviewing and approving financial items and asking questions. Anticipated Date of Completion: Ongoing

View Audit 384573

Finding 1171163 (2025-002)

Material Weakness 2025

Plainfield Board of Education

NJ

Reporting § 200.302

Management has reviewed this finding and has indicated a corrective action plan will be developed to address this finding and recommendation.

View Audit 384568

Finding 1171162 (2025-003)

Material Weakness 2025

Arizona Christian University

AZ

Student Financial Aid Eligibility Significant Deficiency

Student Financial Aid Cluster – Assistance Listing No. Various Recommendation: We recommend that the University review their awarding procedures and implement procedures to ensure the Stafford loans are awarded within the annual and aggregate limits. Explanation of disagreement with audit finding: T...

Student Financial Aid Cluster – Assistance Listing No. Various Recommendation: We recommend that the University review their awarding procedures and implement procedures to ensure the Stafford loans are awarded within the annual and aggregate limits. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: At the time the Subsidized Direct Loan was initially awarded, the student was classified as grade level one and was correctly awarded $3,500. Subsequently, the student’s grade level increased; however, the Direct Loan award was not adjusted accordingly. The Office of Financial Aid relies on email notifications to identify students with grade-level changes, and the notification for this student was inadvertently missed. In response to this error, the Office of Financial Aid implemented additional monitoring controls. A report was developed to identify all students with changes in grade level and is now generated and provided weekly by the Office of the Registrar to the Office of Financial Aid. A designated Financial Aid Advisor has been assigned responsibility for reviewing this report and adjusting Direct Loan awards as necessary to ensure accuracy. As an additional preventative measure, the Director of Financial Aid will verify student grade level and corresponding Direct Loan eligibility prior to disbursement. The Office of Financial Aid will also conduct periodic reviews to confirm that Direct Loan awards consistently and accurately align with students’ grade levels.

View Audit 384567

Finding 1171157 (2025-002)

Material Weakness 2025

Arizona Christian University

AZ

Student Financial Aid Reporting Significant Deficiency

Student Financial Aid Cluster – Assistance Listing No. Various Recommendation: We recommend that the University implement a formal review process as it relates to withdrawn students to ensure R2T4 calculations are being performed accurately and timely. Explanation of disagreement with audit finding:...

Student Financial Aid Cluster – Assistance Listing No. Various Recommendation: We recommend that the University implement a formal review process as it relates to withdrawn students to ensure R2T4 calculations are being performed accurately and timely. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: The withdrawal dates applied in the Return to Title IV (R2T4) calculations were based on the dates students were administratively withdrawn by the Office of the Registrar. Upon identification of the audit finding, the Office of Financial Aid conducted a comprehensive review of the affected R2T4 calculations and made the necessary corrections. Any balances resulting from these errors were subsequently written off. Additionally, the Director of Financial Aid completed a full file review for the applicable award year to assess the accurate inclusion of scheduled break days. During this review, two additional students were identified whose R2T4 calculations did not include the appropriate number of break days. The calculations for these students were corrected, and the resulting balances were written off. No further errors were identified. As part of the corrective action, the Office of Financial Aid has hired an additional Financial Aid Advisor dedicated to the review and completion of R2T4 calculations. Furthermore, the Director of Financial Aid has implemented a secondary review process for all completed R2T4 calculations to ensure accuracy and compliance. The Office of Financial Aid has also reviewed the Financial Aid Handbook and applicable Code of Federal Regulations (CFR) related to R2T4 calculations to reinforce adherence to regulatory requirements. Name(s) of the contact person(s) responsible for corrective action: Angel Faast and Laura Silva Planned completion date for corrective action plan: 12/17/2025

View Audit 384567

Finding 1171152 (2025-001)

Material Weakness 2025

Arizona Christian University

AZ

Student Financial Aid Reporting Significant Deficiency

Student Financial Aid Cluster – Assistance Listing No. Various Recommendation: We recommend the University review its reporting procedures to ensure that students’ statuses are accurately and timely reported to NSLDS as required by regulations. Explanation of disagreement with audit finding: There i...

Student Financial Aid Cluster – Assistance Listing No. Various Recommendation: We recommend the University review its reporting procedures to ensure that students’ statuses are accurately and timely reported to NSLDS as required by regulations. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: : In November 2024, the Associate Director of Institutional Research (ADIR) and Associate VP of Institutional Effectiveness (AVPIE) created a tool for scheduling, tracking, and reviewing the status and completion of National Student Clearinghouse submissions. The audit finding occurred before this tool was in place, and since its implementation, late reporting has been reduced, and the corrective action plan has been successful Name(s) of the contact person(s) responsible for corrective action: Jeff Phillips and Eric Tompkins Planned completion date for corrective action plan: November 1, 2024

View Audit 384567

Finding 1171147 (2025-002)

Material Weakness 2025

United Way of the Mid-South

TN

Procurement, Suspension & Debarment

All staff and partner agencies received targeted training on the Emergency Assistance Guidelines and related documentation requirements to ensure consistent understanding and compliance. New staff with procurement responsibilities will receive this training during onboarding, while current staff and...

All staff and partner agencies received targeted training on the Emergency Assistance Guidelines and related documentation requirements to ensure consistent understanding and compliance. New staff with procurement responsibilities will receive this training during onboarding, while current staff and partners will be participate in scheduled refresher sessions and quality improvement meetings. Supplemental training and resources will be available on a recurring basis, and staff will be asked to acknowledge receipt and review of the guidelines.

View Audit 384565

Finding 1171146 (2025-001)

Material Weakness 2025

United Way of the Mid-South

TN

Cash Management

Effective immediately, and alignment with Seciton C.5b(4), we will not accept late submissions unless express, written approval has been granted by the State.

View Audit 384565

Finding 1171145 (2025-002)

Material Weakness 2025

North Central University

MN

Student Financial Aid

There is no disagreement with the audit finding. There will be review of the return of funds calculation. Funds have been corrected for the error in calculation. Additional quality checks on the academic calendar have been put into to place to ensure accuracy.

View Audit 384564

Finding 1171141 (2025-001)

Material Weakness 2025

North Central University

MN

Student Financial Aid Special Tests & Provisions

There is no disagreement with the finding. The program length will be corrected for all students. Monitoring of Enrollment reporting is now occurring in partnership of the Registrar’s Office and Financial Aid after each National Clearinghouse Reporting Cycle that the Registrar’s Office performs. In ...

There is no disagreement with the finding. The program length will be corrected for all students. Monitoring of Enrollment reporting is now occurring in partnership of the Registrar’s Office and Financial Aid after each National Clearinghouse Reporting Cycle that the Registrar’s Office performs. In addition after gainful employment reporting we will double check our data outputs to look for unintended consequences and troubleshoot.

View Audit 384564

Finding 1171139 (2025-001)

Material Weakness 2025

Community Coalition Alliance, INC

FL

Subrecipient Monitoring § 200.332

Management is working to obtain the overdue reports.

View Audit 384551

Finding 1171138 (2025-001)

Material Weakness 2025

Episcopal Community Services of the Diocese of Pennsylvania

PA

Special Tests & Provisions Internal Control / Segregation of Duties

Finding 2025-001: ECS provides out-of-school time programming to youth to improve life skills, increase academic engagement and prepare youth for higher education and employment. ECS is required to maintain and submit attendance records as part of this program. Attendance records were not maintained...

Finding 2025-001: ECS provides out-of-school time programming to youth to improve life skills, increase academic engagement and prepare youth for higher education and employment. ECS is required to maintain and submit attendance records as part of this program. Attendance records were not maintained and submitted for one of the sites tested. During our testing of nine monthly attendance records, we noted attendance records for one selection could not be provided. The sample was not intended to be, and was not, a statistically valid sample. 2025-001 Recommendation: We recommend the Organization implement a process and related controls related to review, approval and submission of attendance records of at the site. Contracted slots utilized should be based on actual attendance and related documentation maintained by the Organization to support those amounts. Action Taken: Management agrees with the finding and has taken corrective action by adopting review, approval and submission processes to support contracted slots utilized. Moreover, the site in question was closed and the staff responsible were terminated. These actions and controls were completed and placed in service, respectively, during the year ended June 30, 2025, but were not conducted for the entire year. Date of Completion: January 14, 2026

View Audit 384543

Finding 1171137 (2025-001)

Material Weakness 2025

Volunteers of America Colorado

CO

Procurement, Suspension & Debarment Subrecipient Monitoring § 200.214 § 200.303

Management did not have documented controls in place to ensure contractors are not suspended or debarred from participating in federally funded activity Planned Corrective Action: To strengthen compliance documentation and ensure consistent audit support, VOAC has implemented the following correctiv...

Management did not have documented controls in place to ensure contractors are not suspended or debarred from participating in federally funded activity Planned Corrective Action: To strengthen compliance documentation and ensure consistent audit support, VOAC has implemented the following corrective actions: 1.Policy Enhancement: The procurement procedure has been updated to explicitly require saving and retaining a time-stamped screenshot or PDF confirmation of each SAM.gov verification showing the verification date and results. Where applicable, contractors subject to 2 CFR 200.214 must also provide a self-certification statement within the executed agreement. 2.Centralized Recordkeeping: Verification evidence will be maintained in both the individual contract file and the centralized grant management system. 3.Annual Training and Refresher: Procurement and grants management staff will participate in annual training to reinforce 2 CFR 200.214 requirements and best practices for documentation and record retention. Contact person responsible for corrective action: Ian Kile, Director of Internal Control, and Chiyoko Yokota, Chief Financial Officer Anticipated Completion Date: 2/28/26

View Audit 384538

Finding 1171136 (2025-001)

Material Weakness 2025

Sharon Ridge Expansion Corporation

CT

Matching / Level of Effort / Earmarking

Finding No. 2025-001 - Replacement Reserve Deposits Planned Corrective Action - Management will ensure that required monthly deposits are brought current and kept current in the future. Anticipated Completion Date - June 30, 2026. As of December 2025, Sharon Ridge Expansion Corporation has made paym...

Finding No. 2025-001 - Replacement Reserve Deposits Planned Corrective Action - Management will ensure that required monthly deposits are brought current and kept current in the future. Anticipated Completion Date - June 30, 2026. As of December 2025, Sharon Ridge Expansion Corporation has made payments for deposits through August 2025. Responsible Contact Person - Donn Castonguay, Treasurer

View Audit 384521

Finding 1171134 (2025-002)

Material Weakness 2025

Pacific House, Inc.

CT

Allowable Costs / Cost Principles

Pacific House and Subsidiaries already started updating its timesheet. We plan to have a more detailed employee time sheet supporting the allocation of work performed and the distribution of wages to specific grant awards.

View Audit 384518

Finding 1171132 (2025-001)

Material Weakness 2025

Pacific House, Inc.

CT

Subrecipient Monitoring Reporting Significant Deficiency

Pacific House and Subsidiaries has transitioned to a new CPA firm and is working closely with them to ensure the Data Collection Form is timely submitted for the fiscal year ended June 30, 2025 and in future.

View Audit 384518

Finding 1171110 (2025-001)

Material Weakness 2025

Missouri State University

MO

Student Financial Aid Reporting

Views of Responsible Officials and Planned Corrective Actions -The University’s Office of Student Financial Aid agrees with the recommendation and will enact the following procedure changes: 1. Formal Interdepartmental Oversight • Establish a documented coordination process between the Office of the...

Views of Responsible Officials and Planned Corrective Actions -The University’s Office of Student Financial Aid agrees with the recommendation and will enact the following procedure changes: 1. Formal Interdepartmental Oversight • Establish a documented coordination process between the Office of the Registrar (OOR) and the Office of Student Financial Aid (OSFA) to jointly oversee enrollment reporting for Title IV purposes. • Define clear roles and responsibilities for monitoring, review, and escalation of enrollment reporting issues. 2. Transmission Monitoring and Reconciliation • Implement a recurring reconciliation process to verify that enrollment status changes submitted to NSC are successfully transmitted to NSLDS. a. OSFA designee (Associate Director) will review sample populations each reporting cycle to ensure data transfer to NSLDS. • Develop exception process to resolve delayed, rejected, or missing enrollment updates and ensure timely resolution. a. OSFA designee will coordinate with OOR designee (Associate Registrar) to alert of potential issues and work to resolve. 3. Issue Escalation and Resolution Protocol • Establish a formal escalation process with NSC for unresolved transmission issues, including defined timelines for follow-up and resolution. • Maintain documentation of identified issues, corrective actions taken, and final resolution. 4. Ongoing Monitoring • Incorporate enrollment reporting compliance into routine Title IV compliance monitoring activities. • Conduct periodic internal reviews to ensure controls remain effective and reporting continues to meet federal timeliness and accuracy requirements. Implementation of the above listed procedure changes will take place immediately with a completion date no later than June 30, 2026. Responsible Offices and University Officials • Office of the Registrar a. Registrar b. Associate Registrar • Office of Student Financial Aid a. Director of Financial Aid b. Associate Director for Financial Aid Compliance

View Audit 384515

Finding 1171099 (2025-002)

Material Weakness 2025

Northeast Ohio Medical University

OH

Student Financial Aid Subrecipient Monitoring Reporting

Finding Number: 2025-002 Anticipated Completion Date: 10/07/2025 Responsible Contact Person: Katherine Miranda, University Registrar Kelly Burt, Assistant Registrar Records Management and Reporting Michele Bergman, Assistant Registrar, Records Management and Reporting Planned Corrective Action: The ...

Finding Number: 2025-002 Anticipated Completion Date: 10/07/2025 Responsible Contact Person: Katherine Miranda, University Registrar Kelly Burt, Assistant Registrar Records Management and Reporting Michele Bergman, Assistant Registrar, Records Management and Reporting Planned Corrective Action: The Offices of the Registrar and Admission Operations reviewed the case, reviewed the proper student record protocol, and added a reporting checkpoint to review for dually enrolled students before submitting enrollment reports to the National Student Clearinghouse (NSC). Once NSLDS is updated with NSC data, the Office of the Registrar will work with Office of Financial Aid to confirm NSLDS is accurate for the dually enrolled students.

View Audit 384492

Finding 1171092 (2025-001)

Material Weakness 2025

Northeast Ohio Medical University

OH

Subrecipient Monitoring Cash Management Significant Deficiency § 200.305

Finding Number: 2025-001 Completion Date: 03/31/2025 Responsible Contact Person: Kami Greene, Director of Accounting and Controller Kristen Cope, Assistant Controller Corrective Action: The University enhanced its written procedures for requesting cash draws and further trained new staff on policies...

Finding Number: 2025-001 Completion Date: 03/31/2025 Responsible Contact Person: Kami Greene, Director of Accounting and Controller Kristen Cope, Assistant Controller Corrective Action: The University enhanced its written procedures for requesting cash draws and further trained new staff on policies and procedures to ensure compliance. In addition, a review process has been established before each cash draw takes place to ensure that all cash draws are for expenses that were incurred to prevent funds from being overdrawn.

View Audit 384492

Finding 1171045 (2025-001)

Material Weakness 2025

Karnes County

TX

Reporting Internal Control / Segregation of Duties

Finding Number: 2025-001 Federal Program: Coronavirus State and Local Fiscal Recovery Funds (CSLFRF) ALN 21.027 Finding Type: Material Noncompliance with Reporting Requirements The entity acknowledges that the CSLFRF report for the period ended March 31, 2025 inaccurately reported that all expenditu...

Finding Number: 2025-001 Federal Program: Coronavirus State and Local Fiscal Recovery Funds (CSLFRF) ALN 21.027 Finding Type: Material Noncompliance with Reporting Requirements The entity acknowledges that the CSLFRF report for the period ended March 31, 2025 inaccurately reported that all expenditures had been completed when a portion of the award remained unspent. Management has evaluated the circumstances and determined that the error resulted from a misunderstanding of report finalization requirements. To address this issue, management will implement enhanced review and approval procedures over grant expenditure reporting to ensure that cumulative expenditures and expenditure status are accurately reported prior to submission and finalization. These procedures will include reconciliation of reported amounts to the general ledger and interagency review to confirm that all funds have been expended before designating any report as final. Responsible Official: Treasurer Anticipated Completion Date: Implemented immediately and applicable to all future expenditure reporting.

View Audit 384451

Finding 1171041 (2025-001)

Material Weakness 2025

Louisville Metro Housing Authority

KY

HUD Housing Programs Subrecipient Monitoring Cash Management

Finding Reference: 2025-001 Description of Finding: HUD regulations require certifications to be completed and entered timely to ensure accurate calculation of Housing Assistance Payments (HAP), Total Tenant Payment (TTP) and utility reimbursements. Per 24 CFR section 982.516, the Authority must ree...

Finding Reference: 2025-001 Description of Finding: HUD regulations require certifications to be completed and entered timely to ensure accurate calculation of Housing Assistance Payments (HAP), Total Tenant Payment (TTP) and utility reimbursements. Per 24 CFR section 982.516, the Authority must reexamine family income and composition at least once every two years and adjust the tenant rent and housing assistance payment as necessary using the documentation from third party verification. Of the 60 Moving to Work files tested, the following items were noted: • 40 instances of certifications not completed timely • 6 instances where the file did not contain income support • 3 instances where housing quality standards inspections were not completed within the last 2 years • 1 instance in which a rent comparison was not completed for a new move in Statement of Concurrence or Nonconcurrence: Louisville Metro Housing Authority agrees with Cherry Bekaert in reference to audit finding 2025-001. Corrective Action: LMHA continues to work through issues around the proper and timely processing of program certifications to support accurate Housing Assistance Payments, Total Tenant Payments and utility reimbursements. Currently, recertifications are processed on a biennial basis schedule, through a three-tiered system outlined in our updated MTW plan. This will address timeliness of recertification while also ensuring compliance and review of supporting documentation. Please note the following rules tied to LMHA’s three-tiered recertification system: 1) When the family is zero income, they will go to an annual recertification. 2) When family is working, (enrolling in KTAP (Kentucky Transitional Assistance Program), receiving Child Support, and other similar sources of income) they will go to a biennial recertification. 3) When a family has fixed income, (receiving Social Security, Supplemental Security Income, and/or Pension payments), they will go to a triennial recertification. The HCV Team is also working with Yardi (ERP system) to maximize the reporting and monitoring of the recertification schedule. The manager initiates the tracking for needed processing and possible termination of participants. With the three-tiered system, staff will be able to review all tenant information closely during recertifications to ensure proper housing assistance payments. Additionally, to improve sufficient controls and internal monitoring, the HCV Team is partnering with the Compliance Team to review tenant files for errors and improper supporting documentation.

View Audit 384423

Corrective Action Plans

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