Corrective Action Plans

Finding 1239798 (2025-003)

Material Weakness 2025

Floyd County

IN

Allowable Costs / Cost Principles Matching / Level of Effort / Earmarking § 200.303 § 200.402 § 200.403 § 200.405

FINDING 2025-003 Finding Subject: Highway Planning and Construction- Activities Allowed or Unallowed, Allowable Costs/Cost Principles Contact Person Responsible for Corrective Action: Stan Heil Contact Phone Number and Email Address: 812-542-0506-sheil@floydcounty.in.gov Views of Responsible Officia...

FINDING 2025-003 Finding Subject: Highway Planning and Construction- Activities Allowed or Unallowed, Allowable Costs/Cost Principles Contact Person Responsible for Corrective Action: Stan Heil Contact Phone Number and Email Address: 812-542-0506-sheil@floydcounty.in.gov Views of Responsible Officials: We concur with the finding. Description of Corrective Action Plan: The Corrective Action Plan for this identified material weakness modified opinion, is first to recognize that strengthened internal controls will reduce/eliminate non-compliance submissions, thereby resulting in potential loss of Federal awards to the County of Floyd. The Commissioners have realigned and separated the Operations and Financial functions of Operations, to ensure greater attention to compliance. The identified material weakness with modified opinion occurred prior to the County’s realignment. It is desirous of the Floyd County Commissioners that compliance to all federal/state/and local awards are strictly adhered to and the separation of Operations and Finance strengthen this commitment. The Internal Controls will require that both the Chief Operations Officer and Chief Financial Officer review and sign as approval, ensuring that cross-referencing ledger expenditures for filing of reimbursement to Federal awards are compliant. The process will also ensure that any duplication of any reimbursements are eliminated. Anticipated Completion Date: The anticipated completion date of the Corrective Action Plan identified above will occur September 30, 2026 reporting as the exposure of this finding-weakness, is being addressed. Commissioners actions to ensure compliance and oversight were strengthened with the separation of Operations and Finance.

View Audit 414495

Finding 1239797 (2025-001)

Material Weakness 2025

Meriwether County Board of Education

GA

Subrecipient Monitoring Reporting Special Tests & Provisions § 200.303

FA 2025-01 Internal Controls over Wage Rate Requirements Compliance Requirement: Internal Control Impact: Compliance Impact: Federal Awarding Agency: Pass-Through Entity: Assistance Listing Number and Title: Federal Award Number: Repeat of Prior Year Finding: Description: Special Tests and Provision...

FA 2025-01 Internal Controls over Wage Rate Requirements Compliance Requirement: Internal Control Impact: Compliance Impact: Federal Awarding Agency: Pass-Through Entity: Assistance Listing Number and Title: Federal Award Number: Repeat of Prior Year Finding: Description: Special Tests and Provisions Material Weakness Material Noncompliance U.S. Department of Education Georgia Department of Education COVID-19 - 84.425U - American Rescue Plan Elementary and Secondary School Emergency Relief Fund S425U210012 (Year: 2022) FA 2024-001 Description: A review of construction-related expenditures charged to the Elementary and Secondary School Emergency Relief Fund program revealed that the School District's internal control procedures were not operating to ensure that Wage Rate Requirements were followed appropriately. Corrective Action Plans: The Meriwether County School District is committed to maintaining full compliance with the Davis-Bacon Act and related Federal wage requirements for all construction projects funded with Federal dollars. To ensure compliance, we are implementing clear, documented procedures to verify that all construction-related contracts include the appropriate wage provisions and that certified payroll records are submitted weekly and in a timely manner by all contractors and subcontractors. The following steps outline how the district will develop, implement, and monitor these procedures: Development and Implementation Procedures 1. Contract Template Updates All standard construction contract templates will be updated to include Davis-Bacon prevailing wage rate requirements, certified payroll provisions, and enforcement language. 2. Inclusion in Bid Documents and RFPs All bid solicitations and RFPs for federally funded construction projects will explicitly reference the applicable Federal wage determinations and required payroll documentation. 3. Pre-Award Contractor Communication Contractors will be notified in writing of their obligations under the Davis-Bacon Act during the bid process and again at contract award. 4. Pre-Construction Orientation Pre-construction meetings will be held with contractors and subcontractors to review Davis-Bacon requirements, wage determinations, and payroll submission expectations. Monitoring and Enforcement Procedures 1. Certified Payroll Collection Contractors will be required to submit certified payrolls weekly for each week of work performed. A checklist and calendar will be maintained by the project manager to track submissions. 2. Payroll Verification Process Submitted certified payrolls will be reviewed for completeness, accuracy, and compliance with wage rates. Spot checks (e.g., worker interviews or site visits) will be conducted periodically. 3. Centralized Document Storage All certified payrolls and compliance records will be stored in a centralized, secure digital file system accessible by authorized district staff and available for audit or federal review. 4. Compliance Reporting and Follow-Up Any instances of non-compliance will be documented and addressed promptly. Corrective actions may include written warnings, payment withholdings, or notification to oversight agencies. 5. Internal Audits and Staff Training The district' s Federal Programs Director will conduct internal quarterly audits as necessary when Federal funds are being used to verify proper procedures are being followed, and ongoing training will be provided to staff involved in procurement, contracting, and facilities management. By implementing these procedures, the district will ensure that all federally funded construction contracts fully comply with applicable wage laws and that payroll records are collected, reviewed, and maintained in a timely and transparent manner. Regular monitoring and staff accountability will help ensure continued legal compliance and project integrity. Estimated Completion Date: June 30, 2025 Contact Person: Carrie Chambers, Federal Programs Director Telephone: 706-441-0601 Email: carrie.chambers@mcssga.org

View Audit 414493

Finding 1239796 (2025-001)

Material Weakness 2025

City of North Chicago

IL

Reporting Material Weakness

SECTION 5 – CORRECTIVE ACTION PLAN Finding 2025-001: Grant Reporting Condition: For 1 out of 1 sample tested (100%), the auditee reported expenses for the federal program on the SEFA in a period different from when the related federal award activity occurred. Corrective Action Plan: Management shoul...

SECTION 5 – CORRECTIVE ACTION PLAN Finding 2025-001: Grant Reporting Condition: For 1 out of 1 sample tested (100%), the auditee reported expenses for the federal program on the SEFA in a period different from when the related federal award activity occurred. Corrective Action Plan: Management should implement a documented SEFA cutoff review to verify that expenditures are reported in the correct fiscal year and supported by the general ledger and grant records. Anticipated Date of Completion: Fiscal Year 2026 Name of Contact Person: Tawanda Joyner, Comptroller Management Response: The City will strengthen its revenue posting process by ensuring fiscal year placement at the point of entry. Specifically, all revenue transactions that arrive at the beginning or end of the fiscal year will be reviewed by the Comptroller prior to posting to the general ledger to confirm the correct fiscal year coding and that the revenue is allocated to the appropriate period based on established cutoff and supporting documentation. After the Comptroller’s review and approval, Accounting will post the revenue to the correct fiscal year and update the related records to ensure tie-outs and reconciliation support reflect the corrected period.

View Audit 414486

Finding 1239784 (2025-009)

Material Weakness 2025

The Mirror, Inc.

KS

Allowable Costs / Cost Principles Reporting Matching / Level of Effort / Earmarking

Plan: Implement internal controls in the Department for matching to be updated monthly in order to evaluate matching level. Director of prevention will work with the accounting team to keep records up to date in order for accounting to make appropriate matching JEs as the grant year progresses. Impl...

Plan: Implement internal controls in the Department for matching to be updated monthly in order to evaluate matching level. Director of prevention will work with the accounting team to keep records up to date in order for accounting to make appropriate matching JEs as the grant year progresses. Implementation Date: Beginning of Fiscal Year 27- October 2026 Responsible Party: Director of Prevention will oversee the staff report of Matching for the grant and ensure that these internal controls are taking place and report to the accounting department as necessary.

View Audit 414482

Finding 1239783 (2025-008)

Material Weakness 2025

The Mirror, Inc.

KS

Cash Management Subrecipient Monitoring Matching / Level of Effort / Earmarking

Plan: Implement internal processes for review of cash spend in order to pull only utilized funds to that point for the grant. Implementation Date: Beginning of Fiscal Year 27- October 2026 Responsible Party: Shelby Turner, CFO will oversee the accounting department ensures that these internal contro...

Plan: Implement internal processes for review of cash spend in order to pull only utilized funds to that point for the grant. Implementation Date: Beginning of Fiscal Year 27- October 2026 Responsible Party: Shelby Turner, CFO will oversee the accounting department ensures that these internal controls are taking place and funds are pulled accordingly.

View Audit 414482

Finding 1239782 (2025-007)

Material Weakness 2025

The Mirror, Inc.

KS

Internal Control / Segregation of Duties Subrecipient Monitoring Reporting

Plan: Procedures implemented to ensure that all necessary reports for the program are filed in a timely manner. Implementation Date: Beginning of Fiscal Year 26- July 1, 2025 Responsible Party: Melissa Goodman, VP of Reentry Services will oversee the manager of the Work for Success program and ensur...

Plan: Procedures implemented to ensure that all necessary reports for the program are filed in a timely manner. Implementation Date: Beginning of Fiscal Year 26- July 1, 2025 Responsible Party: Melissa Goodman, VP of Reentry Services will oversee the manager of the Work for Success program and ensure reports are on time.

View Audit 414482

Finding 1239781 (2025-006)

Material Weakness 2025

The Mirror, Inc.

KS

Eligibility Subrecipient Monitoring

Plan: Implement a policy to ensure appropriate review process and documentation for each application is obtained. Implement internal control that management signs off on all applications, verifying that appropriate documentation is present and noting what funding the applicant qualifies for. Impleme...

Plan: Implement a policy to ensure appropriate review process and documentation for each application is obtained. Implement internal control that management signs off on all applications, verifying that appropriate documentation is present and noting what funding the applicant qualifies for. Implementation Date: Beginning of Fiscal Year 26- July 1, 2025 Responsible Party: Melissa Goodman, VP of Reentry Services will oversee the manager of the Work for Success program and ensure that these internal controls are taking place.

View Audit 414482

Finding 1239780 (2025-005)

Material Weakness 2025

The Mirror, Inc.

KS

Allowable Costs / Cost Principles Internal Control / Segregation of Duties

Plan: Implement a policy to ensure appropriate review by management of program is in place to ensure all grant costs are approved by management and on to higher leadership for final review. Implementation Date: Beginning of Fiscal Year 26- July 1, 2025 Responsible Party: Melissa Goodman, VP of Reent...

Plan: Implement a policy to ensure appropriate review by management of program is in place to ensure all grant costs are approved by management and on to higher leadership for final review. Implementation Date: Beginning of Fiscal Year 26- July 1, 2025 Responsible Party: Melissa Goodman, VP of Reentry Services will oversee the manager of the Work for Success program and ensure that these internal controls are taking place.

View Audit 414482

Finding 1239779 (2025-004)

Material Weakness 2025

The Mirror, Inc.

KS

Allowable Costs / Cost Principles

Plan: Implement a policy to ensure appropriate review by management of program is in place to ensure all grant costs are approved by management and on to higher leadership for final review. Implementation Date: Beginning of Fiscal Year 26- July 1, 2025 Responsible Party: Melissa Goodman, VP of Reent...

Plan: Implement a policy to ensure appropriate review by management of program is in place to ensure all grant costs are approved by management and on to higher leadership for final review. Implementation Date: Beginning of Fiscal Year 26- July 1, 2025 Responsible Party: Melissa Goodman, VP of Reentry Services will oversee the manager of the Work for Success program and ensure that these internal controls are taking place.

View Audit 414482

Finding 1239778 (2025-003)

Material Weakness 2025

The Mirror, Inc.

KS

Reporting

Plan: Implementing new work flows around grants being awarded. Ensuring all grants are tracked in a single location with identifications within the spreadsheet to track federal awards. Implementation Date: Beginning of Fiscal Year 26- July 1, 2025 Responsible Party: Shelby Turner CFO will review sta...

Plan: Implementing new work flows around grants being awarded. Ensuring all grants are tracked in a single location with identifications within the spreadsheet to track federal awards. Implementation Date: Beginning of Fiscal Year 26- July 1, 2025 Responsible Party: Shelby Turner CFO will review staffs entries on the spreadsheet to ensure necessary data/information for each grant is being kept, in order to have a SEFA prepared for each audit.

View Audit 414482

Finding 1239777 (2025-002)

Material Weakness 2025

The Mirror, Inc.

KS

Plan: Revenue streams will be analyzed, identifying type of grant transaction to determine the appropriate recording of revenue. When grants are obtained efforts will be made to ensure if the funds are federal, state or other. Implementation Date: Beginning of Fiscal Year 26- July 1, 2025 Responsibl...

Plan: Revenue streams will be analyzed, identifying type of grant transaction to determine the appropriate recording of revenue. When grants are obtained efforts will be made to ensure if the funds are federal, state or other. Implementation Date: Beginning of Fiscal Year 26- July 1, 2025 Responsible Party: Shelby Turner CFO, will have overall responsibility and will perform the validation and review of the grant types and appropriate entries for the funds based on the information staff are able to obtain on the grant.

View Audit 414482

Finding 1239776 (2025-001)

Material Weakness 2025

The Mirror, Inc.

KS

Internal Control / Segregation of Duties

Plan: The accounting team will implement processes to review and reconcile investment account quarterly. Implementation Date: Beginning of Fiscal Year 27- July 1, 2026 Responsible Party: Staff accountant will reconcile, and provide reconciliations to Shelby Turner, CFO for review.

View Audit 414482

Finding 1239758 (2025-002)

Material Weakness 2025

San Diego County Air Pollution Control District

CA

Cash Management Material Weakness Matching / Level of Effort / Earmarking § 200.303

Type of Finding: Material Weakness in Internal Control over Compliance Division: Support Services Responsible Official: Chief, Support Services Target Completion Date: June 30, 2026 Status: In Progress 1. Summary of the Finding The FY 2024‑25 Single Audit identified deficiencies in internal controls...

Type of Finding: Material Weakness in Internal Control over Compliance Division: Support Services Responsible Official: Chief, Support Services Target Completion Date: June 30, 2026 Status: In Progress 1. Summary of the Finding The FY 2024‑25 Single Audit identified deficiencies in internal controls over the District’s cash management practices for federal grants under ALN 66.001 and 66.039. Specifically, the District did not retain evidence showing that drawdown requests were reviewed and approved by the appropriate individual prior to submission. This control lapse occurred for all tested drawdowns and represents a material weakness in internal control over compliance. 2. Root Cause The District’s procedures for processing payment drawdowns did not require or document review and approval prior to submission. The lack of a formalized and documented approval step resulted in an incomplete audit trail and insufficient compliance documentation. 3. Corrective Action Plan The District will strengthen internal control over federal grant cash management by implementing formal approval, documentation, and oversight requirements for all drawdown submissions. A. Implement Formal Drawdown Review and Approval Procedures B. Establish Documentation and Retention Requirements C. Monitoring and Quality Assurance 4. Monitoring & Verification • The Chief of Support Services will oversee implementation and continuous compliance. • Compliance will be verified through quarterly internal reviews and a year‑end checklist confirming approval documentation for every drawdown. • All results will be retained and made available for future audits. 5. Expected Outcome These corrective actions will: • Ensure drawdown submissions are accurate, reviewed, and compliant with federal requirements. • Establish a complete audit trail documenting proper oversight. • Strengthen internal control over federal cash management and prevent future findings. • Reduce risk of inaccurate or unauthorized drawdowns and ensure sustained compliance with 2 CFR Section 200.303(a).

View Audit 414470

Finding 1239756 (2025-001)

Material Weakness 2025

St. Peter's Supportive Housing, Inc.

CA

HUD Housing Programs

Corrective Action Plan – Finding 2025-001 Program: Supportive Housing for Persons with Disabilities Section 811 Assistance Listing: 14.181 Federal Agency: U.S. Department of Housing and Urban Development (HUD) Finding Reference: 2025-001 – Activities Allowed or Unallowed (Significant Deficiency) Man...

Corrective Action Plan – Finding 2025-001 Program: Supportive Housing for Persons with Disabilities Section 811 Assistance Listing: 14.181 Federal Agency: U.S. Department of Housing and Urban Development (HUD) Finding Reference: 2025-001 – Activities Allowed or Unallowed (Significant Deficiency) Management’s Planned Corrective Action: Management will discontinue the use of the Regular Operating account for payments on residual receipt notes and instead will use the Capitalized MHP Debt Service Reserve to fund annual interest payments, consistent with applicable regulatory requirements. Additionally, management will: - Implement procedures to ensure all disbursements are reviewed for allowability prior to payment - Require documented verification of the required agency approval, when applicable, before payments are made from restricted accounts. Anticipated Completion Date: 7/31/2026 Questioned Costs Resolution: Management will evaluate the $13,442 in questioned costs and pursue reimbursement of HUD funds, as required.

View Audit 414468

Finding 1239755 (2025-001)

Material Weakness 2025

5199 Mission Street Senior Housing, Inc.

CA

Special Tests & Provisions HUD Housing Programs Significant Deficiency

Corrective Action Plan – Finding 2025-001 Program: Section 202 (Supportive Housing for the Elderly) Assistance Listing: 14.157 Federal award Identification number:121-EE151-NP-WAH Federal Agency: U.S. Department of Housing and Urban Development (HUD) Federal Award Year: 2025 Finding Reference: 2025-...

Corrective Action Plan – Finding 2025-001 Program: Section 202 (Supportive Housing for the Elderly) Assistance Listing: 14.157 Federal award Identification number:121-EE151-NP-WAH Federal Agency: U.S. Department of Housing and Urban Development (HUD) Federal Award Year: 2025 Finding Reference: 2025-001 – Reportable Finding Considered a Significant Deficiency - Special Tests and Provisions: Reserve for Replacement is underfunded by $43,149 Management’s Planned Corrective Action: Management will work with new Property Management personnel and HUD account executive to improve cash flow at the project and submit required deposits to reserve accounts. Anticipated Completion Date: 12/31/2026

View Audit 414467

Finding 1239754 (2025-002)

Material Weakness 2025

Westward Heights

WY

Reporting Significant Deficiency Matching / Level of Effort / Earmarking § 200.327

Corrective Action Plan Year Ended December 31, 2025 The following is the corrective action plan for Section III - Federal Award Findings and Questioned Costs: Finding 2025-002 Summary of Finding: The USDA requires multiple reports to be submitted each fiscal year. During the current year, certain re...

Corrective Action Plan Year Ended December 31, 2025 The following is the corrective action plan for Section III - Federal Award Findings and Questioned Costs: Finding 2025-002 Summary of Finding: The USDA requires multiple reports to be submitted each fiscal year. During the current year, certain reports were not submitted to the USDA until after the due date. Corrective Action Plan: Effective immediately, the Nursing Home Administrator will maintain a calendar reminder to ensure notifications are sent after the close of each quarter when the required report is due for submission. Contact Person: Caitlin Delbridge, NHA Westward Heights Care Center Administrator

View Audit 414465

Finding 1239747 (2025-002)

Material Weakness 2025

ANDREW COUNTY, MISSOURI

MO

Subrecipient Monitoring Reporting § 200.510

We recognize the problem with the SEFA schedule and feel these mistakes were resolved. Please refer to an email from Clerk Sarah Miller dated July 10, 2026. The major error ($500,000) was a result of a typo while filling out the SEFA schedule. I entered $50,701 when the figure should have been $550,...

We recognize the problem with the SEFA schedule and feel these mistakes were resolved. Please refer to an email from Clerk Sarah Miller dated July 10, 2026. The major error ($500,000) was a result of a typo while filling out the SEFA schedule. I entered $50,701 when the figure should have been $550,701. We recognize the errors that occurred and are adjusting our process to try to ensure that they are not repeated in the future.

View Audit 414459

Finding 1239740 (2025-001)

Material Weakness 2025

Housing Authority of the City of Decatur, Georgia

GA

HUD Housing Programs

During the year ended December 31, 2025, Cohn Rezneck noted 10 instances of noncompliance during audit procedures applied to a sample of 40 tenant lease files with HUD regulations regarding dissemination of Electronic Income Verification (EIV) information and regarding maintenance of tenant lease fi...

During the year ended December 31, 2025, Cohn Rezneck noted 10 instances of noncompliance during audit procedures applied to a sample of 40 tenant lease files with HUD regulations regarding dissemination of Electronic Income Verification (EIV) information and regarding maintenance of tenant lease files. EIV information was provided in electronic format to the independent public accountant. Planned Corrective Action: Decatur Housing has established additional procedures and monitoring of compliance with those procedures in accordance with guidelines specified by HUD to include: • A standardized HCV EIV Review and Documentation Form; • A step-by-step EIV review and documentation guide for staff; • A separate, access-restricted electronic EIV folder for each family; • A requirement that the EIV report and completed review form be stored together in the family’s secure EIV folder rather than the main Annual or Interim Reexamination folder; • A consistent file-naming and document cross-reference process; • Staff certification and supervisory quality-control requirements; • Procedures for documenting and resolving discrepancies and open items; • Refresher training and ongoing monitoring to confirm continued compliance; and • Corrective procedures for any future documentation or filing errors. These measures are intended to establish a clear audit trail, protect EIV information, strengthen supervisory oversight, and prevent recurrence of the deficiencies. Name of Contact Person: Larry H. Padilla, CEO Anticipated completion date: August 28, 2026

View Audit 414451

Finding 1239738 (2025-003)

Material Weakness 2025

Council Towers III Housing Development Fund Corporation

NY

HUD Housing Programs Special Tests & Provisions Subrecipient Monitoring

In connection with the procedures applied to a sample of two tenants that moved in and out of the Project during the year, we noted one instance where the tenant's security deposit amount listed in the lease and collected was not deposited in a timely manner and thus the amount per the lease did not...

In connection with the procedures applied to a sample of two tenants that moved in and out of the Project during the year, we noted one instance where the tenant's security deposit amount listed in the lease and collected was not deposited in a timely manner and thus the amount per the lease did not agree to the amount recorded in the accounting records. a. Comments on the Finding and Each Recommendation Management agrees with the finding and recommendation. As part of the transition from TD Bank to IDB Bank, there was a delay in establishing the new security deposit accounts. Once the accounts were finalized, the funds were transferred to the IDB security deposit accounts in December 2025. c. Action(s) Taken or Planned on the Finding Security deposit accounts were established and funded in December 2025. The Project closed its TD Bank accounts and opened new accounts with IDB Bank. Due to delays in establishing the new security deposit accounts at IDB, the funds remained at TD Bank until the accounts were finalized and were subsequently transferred to the IDB security deposit accounts in December 2025.

View Audit 414448

Finding 1239737 (2025-002)

Material Weakness 2025

Council Towers III Housing Development Fund Corporation

NY

Allowable Costs / Cost Principles Subrecipient Monitoring HUD Housing Programs

During the period ended December 31, 2025, the Company distributed $20,931 in excess of surplus cash available for distribution. a. Comments on the Finding and Each Recommendation Management agrees with the finding and recommendation. Adequate procedures were not in place to ensure distributions wer...

During the period ended December 31, 2025, the Company distributed $20,931 in excess of surplus cash available for distribution. a. Comments on the Finding and Each Recommendation Management agrees with the finding and recommendation. Adequate procedures were not in place to ensure distributions were reviewed and limited to available surplus cash in accordance with HUD requirements. b. Action(s) Taken or Planned on the Finding The project's management agrees with the auditor’s finding. As of December 31, 2025, there is $51,268 of available surplus cash. Had the questioned costs of $20,931 not been paid, then surplus cash would have been $72,199. Therefore, since current year surplus cash has been reduced, the questioned costs are deemed to be repaid.

View Audit 414448

Finding 1239736 (2025-001)

Material Weakness 2025

Council Towers III Housing Development Fund Corporation

NY

Allowable Costs / Cost Principles Subrecipient Monitoring HUD Housing Programs

Project paid expenses on behalf of an affiliate in the amount of $1,550.00 from Project funds without prior HUD approval. As of December 31, 2025, the affiliate owed the Project $1,550.00. a. Comments on the Finding and Each Recommendation Management agrees with the findings and recommendation. The ...

Project paid expenses on behalf of an affiliate in the amount of $1,550.00 from Project funds without prior HUD approval. As of December 31, 2025, the affiliate owed the Project $1,550.00. a. Comments on the Finding and Each Recommendation Management agrees with the findings and recommendation. The payment was made in error due to an oversight into the invoice approval process. b. Action(s) Taken or Planned on the Finding The affiliate reimbursed the Project for the full amount of $1,550.00 on 04/29/2026. Management implemented an additional approval control in RealPage requiring review and approval by the Housing Director and/or the Property Manager prior to payment processing. This control helps ensure invoices are charged to the correct property and prevents one project from paying expenses on behalf of another project or affiliate. Management will continue to monitor compliance with these procedures.

View Audit 414448

Finding 1239735 (2025-002)

Material Weakness 2025

Virgin Islands Housing Authority

VI

Eligibility HUD Housing Programs Significant Deficiency

Finding 2025-002 Federal Agency: U.S. Department of Housing and Urban Development Federal Program Titles: Public and Indian Housing Program Federal Catalog Numbers: 14.850 Non Compliance - E. Eligibility - Tenant Files Non Compliance Material to the Financial Statements: No Significant Deficiency in...

Finding 2025-002 Federal Agency: U.S. Department of Housing and Urban Development Federal Program Titles: Public and Indian Housing Program Federal Catalog Numbers: 14.850 Non Compliance - E. Eligibility - Tenant Files Non Compliance Material to the Financial Statements: No Significant Deficiency in Internal Control over Compliance for Eligibility Criteria: Tenant Files. The PHA must do the following: As a condition of admission or continued occupancy, require the tenant and other family member to provide necessary information, documentation, and releases for the PHA to verify income eligibility (24 CFR sections 5.230, 5.609, and 982.516). These files are required to be maintained and available for examination at the time of audit. Condition: Based upon inspection of the Authority’s files and on discussion with management, a tenant's rent payment was calculated incorrectly. Context: There are approximately 1,804 units. Of a sample size of thirty-one (31) tenant files, tenant rent was calculated incorrectly in one (1) file. Our sample size is statistically valid. Known Questioned Costs: $940* *Represents HAP attributable to one (1) tenant file for which the Authority could not demonstrate compliance with eligibility requirements. The questioned costs do not represent amounts determined to be ineligible but rather costs associated with miscalculation for verification of income. Cause: There is a significant deficiency in internal controls over the compliance for the eligibility type of compliance related to the maintenance of tenant files. Net income was used in error when calculating the tenant's rent instead of gross income. Effect: The Public and Indian Housing Program is in non-compliance with the eligibility type of compliance related to the maintenance of tenant files. Recommendation: We recommend that the Authority implement a process whereby Authority personnel properly trained on tenant recertification processes to ensure compliance with the Uniform Guidance and the compliance supplement. Views of responsible officials and planned corrective action: The Authority has recognized the deficiencies in the Public and Indian Housing Program and has implemented a quality control program. The Authority will continue to train staff on proper tenant recertification processes and implement additional internal control procedures, such as utilizing AI, that will ensure compliance with federal regulations. Ms. Chasity Jackson, Director of Asset Management, will be responsible to implement this corrective action by December 31, 2026.

View Audit 414444

Finding 1239734 (2025-001)

Material Weakness 2025

New Beginnings

WA

Matching / Level of Effort / Earmarking Subrecipient Monitoring § 200.303

Finding Reference Number: 2025-001 – Internal Control over Compliance with Indirect Costs and Earmarking Requirements Corrective Action: Going forward, New Beginnings’ management will ensure that review of all invoices and related calculations are documented and retained. Projected Completion Date: ...

Finding Reference Number: 2025-001 – Internal Control over Compliance with Indirect Costs and Earmarking Requirements Corrective Action: Going forward, New Beginnings’ management will ensure that review of all invoices and related calculations are documented and retained. Projected Completion Date: December 31, 2026

View Audit 414441

Finding 1239731 (2025-008)

Material Weakness 2025

City of Shreveport

LA

Procurement, Suspension & Debarment § 200.303

The Purchasing Agent will ensure that the contract vendor(s) are not suspended or debarred using the data from SAM.GOV and Louisiana Secretary of State websites. The search results will be included in the files. This will ensure that the City of Shreveport is following the federal funding procuremen...

The Purchasing Agent will ensure that the contract vendor(s) are not suspended or debarred using the data from SAM.GOV and Louisiana Secretary of State websites. The search results will be included in the files. This will ensure that the City of Shreveport is following the federal funding procurement requirements. Responsible Person: Sheila Faour, Director of Finance Anticipated Completion Date: September 30, 2026

View Audit 414438

Finding 1239730 (2025-007)

Material Weakness 2025

City of Shreveport

LA

Reporting § 200.1 § 200.303

The City does have sufficient internal controls over ARP reporting. Reports submitted matched the 2025 cumulative expenditures at the time that reporting was due. However, as is always the case with year-end invoices for the fourth quarter 2025 reporting period were processed after the report due da...

The City does have sufficient internal controls over ARP reporting. Reports submitted matched the 2025 cumulative expenditures at the time that reporting was due. However, as is always the case with year-end invoices for the fourth quarter 2025 reporting period were processed after the report due date and updated on our internal ARP spending tracking. Because the Treasury Department does not have a process to amend report submissions, the amounts were included in the next period (1st quarter 2026) report. Responsible Person: Sheila Faour, Director of Finance Anticipated Completion Date: September 30, 2026

View Audit 414438

Corrective Action Plans

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