Corrective Action Plans

U.S. Department of Health and Human Services - Community Service Block Grant Significant Deficiency in Internal Control over Compliance - Other Matters Recommendation: We recommend the Neighborhood Service Center, Inc. reevaluate its current process, implement proper controls and perform additional ...

U.S. Department of Health and Human Services - Community Service Block Grant Significant Deficiency in Internal Control over Compliance - Other Matters Recommendation: We recommend the Neighborhood Service Center, Inc. reevaluate its current process, implement proper controls and perform additional training over fiduciary responsibilities under the CSBG Act. The Neighborhood Service Center, Inc. should adhere to the board composition and vacancy reporting requirements. Documentation should be readily available for audit. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action planned/taken in response to finding: The Executive Director and Deputy Director of the Neighborhood Service Center are actively recruiting individuals to join the Board. The Deputy Director, or their designee, will provide information to the Maryland Department of Housing and Community Development on the Board composition and vacancies on a monthly basis. Name of the contact persons responsible for corrective action: E. Yvette Robinson, Deputy Director Planned completion date for corrective action plan: For immediate implementation and ongoing.

View Audit 402137

Finding 1215483 (2024-005)

Material Weakness 2024

Neighborhood Service Center, Inc.

MD

Allowable Costs / Cost Principles Matching / Level of Effort / Earmarking § 200.303 § 200.430

U.S. Department of Health and Human Services - Community Service Block Grant Significant Deficiency in Internal Control over Compliance - Other Matters Recommendation: We recommend the Neighborhood Service Center, Inc. reevaluate its current process, implement proper controls and perform additional ...

U.S. Department of Health and Human Services - Community Service Block Grant Significant Deficiency in Internal Control over Compliance - Other Matters Recommendation: We recommend the Neighborhood Service Center, Inc. reevaluate its current process, implement proper controls and perform additional training over time and effort reporting. The Neighborhood Service Center, Inc. should not report salaries and wages unless it can substantiate that the time and effort was dedicated to the federal program. Documentation should be readily available for audit. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action planned/taken in response to finding: The Neighborhood Service, Inc. will require employees whose salaries are allocated to several funding areas to do periodic (at least 2 times per year) time studies to provide documentation to support how salaries are being allocated in the payroll system to grants and other funding areas. These documents will be signed on June 15 and December 15 of each year. Name of the contact persons responsible for corrective action: E. Yvette Robinson, Deputy Director Planned completion date for corrective action plan: For immediate implementation and ongoing.

View Audit 402137

Finding 1215482 (2024-004)

Material Weakness 2024

Neighborhood Service Center, Inc.

MD

Allowable Costs / Cost Principles Matching / Level of Effort / Earmarking Subrecipient Monitoring § 200.303 § 200.403

U.S. Department of Health and Human Services - Community Service Block Grant Material Weakness in Internal Control over Compliance - Other Matters Recommendation: We recommend the Neighborhood Service Center, Inc require both check signers to evidence review and approval of supporting documentation ...

U.S. Department of Health and Human Services - Community Service Block Grant Material Weakness in Internal Control over Compliance - Other Matters Recommendation: We recommend the Neighborhood Service Center, Inc require both check signers to evidence review and approval of supporting documentation prior to signing the check. Documentation of that review and approval shold be readily for audit. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action planned/taken in response to finding: All checks presented for signatures have supporting documentation attached. Authorized check signers are instructed to review all documentation for appropriate authorization, payee name, and amounts prior to signing checks. No checks are signed without supporting documentation. The agency will require check signers to initial the check request page or other supporting documentation when signing checks for grant expenditures. The Neighborhood Service Center, Inc. is implementing a procedure to provide the Finance Committee of the Board with a listing of all checks issued between Board meetings for their review/reference. The Finance Director keeps all check stock locked in their office to avoid any potential misuse of the check stock. Name of the contact persons responsible for corrective action: R. Andrew Hollis, Executive Director Michele Lednum, Finance Director Planned completion date for corrective action plan: For immediate implementation and ongoing.

View Audit 402137

Finding 1215477 (2024-002)

Material Weakness 2024

Restoration Society, INC

NY

Allowable Costs / Cost Principles

The Organization is in the process of strengthening its documentation retention procedures to ensure all federally funded disbursements are supported by complete source documentation, including invoices, rental reasonableness forms, management approvals, non-financial support records, and executed c...

The Organization is in the process of strengthening its documentation retention procedures to ensure all federally funded disbursements are supported by complete source documentation, including invoices, rental reasonableness forms, management approvals, non-financial support records, and executed contracts. Staff have been instructed on updated filing and retention requirements, and the accounting department will perform periodic reviews to confirm that required documentation is maintained in the accounting records prior to payment.

View Audit 402119

Finding 1215476 (2024-001)

Material Weakness 2024

Restoration Society, INC

NY

Reporting

The Organization is implementing procedures to ensure timely preparation of audit documentation and earlier engagement of the audit firm so that the Single Audit can be completed within required federal deadlines. A revised internal timeline has been established for closing the fiscal year, preparin...

The Organization is implementing procedures to ensure timely preparation of audit documentation and earlier engagement of the audit firm so that the Single Audit can be completed within required federal deadlines. A revised internal timeline has been established for closing the fiscal year, preparing federal award schedules, and submitting materials to the auditors. Management will monitor compliance with these deadlines to ensure timely submission of the Single Audit package to the Federal Audit Clearinghouse going forward.

View Audit 402119

Finding 1215430 (2024-002)

Material Weakness 2024

Child Development Council of Franklin County

OH

Internal Control / Segregation of Duties

Management is strengthening internal controls surrounding transaction support, financial documentation, reconciliation procedures, and record retention practices. Existing fiscal policies and procedures will be revised to ensure supporting documentation is consistently maintained for all transaction...

Management is strengthening internal controls surrounding transaction support, financial documentation, reconciliation procedures, and record retention practices. Existing fiscal policies and procedures will be revised to ensure supporting documentation is consistently maintained for all transactions recorded in the accounting system, including personnel and non-personnel transactions. Additional supervisory review procedures, centralized documentation practices, and monitoring activities are being implemented to improve the accuracy, accessibility, and retention of financial records and audit support documentation.

View Audit 402058

Finding 1215429 (2024-001)

Material Weakness 2024

Child Development Council of Franklin County

OH

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

Finding 2024-002, Transaction Support Condition: The Organization internal controls did not require all transactions to be properly documented and maintained. As a consequence, we noted the Organization was not readily able to document support for accounts receivable and investments holdings at Octo...

Finding 2024-002, Transaction Support Condition: The Organization internal controls did not require all transactions to be properly documented and maintained. As a consequence, we noted the Organization was not readily able to document support for accounts receivable and investments holdings at October 31, 2024. In addition, the source and support for some revenue items selected for testing could not initially be explained or provided to the auditor to verify the reasonableness of the amount reported. Although once the Organization’s CEO became aware of the revenue testing issue she was able to identify the source documentation required to meet our audit requirements. Cause: There has been a high amount of turnover in the financial management side of the organization’s operation. Additionally, there were periods of time when accounting staff was not available because of a leave of absence. Other accounting staff tried to assist us in our request but due to the person’s limited time in the position it was difficult for them to identify the necessary support required. Effect: The Statements on Auditing Standards requires the independent auditor to review sufficient and adequate audit evidence in order to opine on the financial information. We were able to apply sufficient alternative procedures related to revenues selections. Additionally, we were able to have the Organization obtain subsequent documentation to verify the existence of the investment as of October 31, 2024. Result: It was difficult to obtain sufficient supporting documentation as required by auditing standards for all transactions subjected to audit verification.

View Audit 402058

Finding 1215424 (2024-003)

Material Weakness 2024

Fasd United Inc.

DC

Subrecipient Monitoring Allowable Costs / Cost Principles

The Organization reduced the indirect rate charged to the grant to the de minimis 10% during 2024.

View Audit 402036

Finding 1215423 (2024-002)

Material Weakness 2024

Fasd United Inc.

DC

Internal Control / Segregation of Duties

All employment agreements are currently in compliance and will be regularly reviewed by the Organization for completeness.

View Audit 402036

Finding 1215394 (2024-002)

Material Weakness 2024

Project Support Housing II

CO

HUD Housing Programs Internal Control / Segregation of Duties Cash Management

Corrective Action Plan: Management concurs with the auditor's recommendations. Management will submit the necessary documentation to the U.S. Department of Housing and Urban Development (HUD) to request retroactive approval for the $4,700 withdrawal from the Residual Receipts Account made during the...

Corrective Action Plan: Management concurs with the auditor's recommendations. Management will submit the necessary documentation to the U.S. Department of Housing and Urban Development (HUD) to request retroactive approval for the $4,700 withdrawal from the Residual Receipts Account made during the year ended December 31, 2024. To prevent recurrence, management has implemented additional internal controls to ensure that all future withdrawals from restricted accounts receive the required prior written HUD authorization. These controls include a formal review and approval process by the Property Manager and Corporate Accounting before any disbursements are made from restricted accounts. In addition, management has scheduled staff training on HUD regulatory requirements governing restricted accounts to reinforce understanding of program compliance and documentation standards. Management is committed to maintaining full compliance with HUD regulations and ensuring that all account activity is properly reviewed, authorized, and documented.

View Audit 401945

Finding 1215359 (2024-001)

Material Weakness 2024

TILTON -NORTHFIELD WATER DISTRICT

NH

Procurement, Suspension & Debarment § 200.318 § 200.327

Department of the Treasury Coronavirus State and Local Fiscal Recovery Funds (ALN #21.027) Passed Through Payments from the State of New Hampshire Department of Environmental Services Corrective Action Plan: The District will draft a procurement policy which conforms to the requirements set forth in...

Department of the Treasury Coronavirus State and Local Fiscal Recovery Funds (ALN #21.027) Passed Through Payments from the State of New Hampshire Department of Environmental Services Corrective Action Plan: The District will draft a procurement policy which conforms to the requirements set forth in the Uniform Guidance, specifically addressing the requirements of 2 CFR § 200.318 through 200.327. Individual Responsible: Roland Seymour, Commissioner Arthur Demass, Commissioner Steve Partridge, Commissioner Anticipated Implementation Date of Corrective Action: May 2026.

View Audit 401907

Finding 1215209 (2024-001)

Material Weakness 2024

McGrath Native Village Council

AK

McGrath Native Village Council agrees with the finding and has engaged the current auditors to perform the single audit for the fiscal year ended September 30, 2025. Management expects this audit to be completed and submitted to the Federal Audit Clearinghouse within the applicable submission deadli...

McGrath Native Village Council agrees with the finding and has engaged the current auditors to perform the single audit for the fiscal year ended September 30, 2025. Management expects this audit to be completed and submitted to the Federal Audit Clearinghouse within the applicable submission deadline.

View Audit 401871

Finding 1215208 (2024-008)

Material Weakness 2024

City Of Wakefield

MI

Reporting Internal Control / Segregation of Duties § 200.512

Management Response / Corrective Action: The City acknowledges the finding. Federal reporting deadlines will be incorporated into the City's annual compliance calendar, and management will coordinate earlier completion of audit deliverables and required submissions. For the FY2024 Single Audit repor...

Management Response / Corrective Action: The City acknowledges the finding. Federal reporting deadlines will be incorporated into the City's annual compliance calendar, and management will coordinate earlier completion of audit deliverables and required submissions. For the FY2024 Single Audit reporting package, the City will complete the Data Collection Form and Federal Audit Clearinghouse submission upon final issuance/receipt of the auditor's reports and retain evidence of submission. For future single audits, the City will monitor the Uniform Guidance deadline and submit the Data Collection Form and reporting package by the earlier of 30 calendar days after receipt of the auditor's reports or nine months after year-end.

View Audit 401867

Finding 1215207 (2024-007)

Material Weakness 2024

City Of Wakefield

MI

Material Weakness Matching / Level of Effort / Earmarking Internal Control / Segregation of Duties § 200.303

The City acknowledges the finding. The City will develop and maintain written policies and procedures appropriate to its federal award activity and the terms and conditions of its federal awards, including internal controls, record-keeping, reporting responsibilities, allowable costs, procurement an...

The City acknowledges the finding. The City will develop and maintain written policies and procedures appropriate to its federal award activity and the terms and conditions of its federal awards, including internal controls, record-keeping, reporting responsibilities, allowable costs, procurement and conflict-of-interest requirements where applicable, and compliance monitoring.

View Audit 401867

Finding 1215206 (2024-006)

Material Weakness 2024

City Of Wakefield

MI

Reporting § 200.302 § 200.510

The City acknowledges the finding. The City will strengthen procedures to identify, track, reconcile, and report federal award activity throughout the fiscal year so that a complete and accurate SEFA can be prepared in a timely manner for future audit periods. Procedures will include maintaining awa...

The City acknowledges the finding. The City will strengthen procedures to identify, track, reconcile, and report federal award activity throughout the fiscal year so that a complete and accurate SEFA can be prepared in a timely manner for future audit periods. Procedures will include maintaining award documentation sufficient to identify the federal agency/program, Assistance Listing number, award or loan identifiers, expenditures or loan proceeds, outstanding federal loan balances, sub-recipient amounts if any, and required SEFA notes.

View Audit 401867

Finding 1215180 (2024-004)

Material Weakness 2024

Abilities Network, Inc.

MD

Period of Performance Significant Deficiency Internal Control / Segregation of Duties § 200.303

Period of Performance Child Care and Development Block Grant – Assistance Listing No. 93.575 Recommendation: We recommend that the Organization design, implement, monitor and maintain evidence over internal controls. Explanation of disagreement with audit finding: There is no disagreement with the a...

Period of Performance Child Care and Development Block Grant – Assistance Listing No. 93.575 Recommendation: We recommend that the Organization design, implement, monitor and maintain evidence over internal controls. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: Management will assign responsibility for maintaining source documentation to a specific individual or team and develop a system for organizing and storing source documentation, such as a centralized electronic database. Monitoring and testing procedures will be implemented to ensure that source documentation is being maintained and is readily accessible. Lastly, there will be regular reviews and updates to the system for organizing and storing source documentation as needed to ensure ongoing effectiveness. Name of the contact person responsible for corrective action: Lyn Elliot, CEO Planned completion date for corrective action plan: 7/1/2026

View Audit 401848

Finding 1215179 (2024-003)

Material Weakness 2024

Abilities Network, Inc.

MD

Allowable Costs / Cost Principles § 200.303 § 200.407

Allowability Child Care and Development Block Grant – Assistance Listing No. 93.575 Recommendation: The auditors recommend the Organization design, implement, and monitor internal controls over allocations as well as maintain source documentation to support amounts charged to the grant. Explanation ...

Allowability Child Care and Development Block Grant – Assistance Listing No. 93.575 Recommendation: The auditors recommend the Organization design, implement, and monitor internal controls over allocations as well as maintain source documentation to support amounts charged to the grant. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: Management will review the current internal controls over allocations and source documentation to identify any gaps or weaknesses and develop a plan to address any identified gaps or weaknesses, including updating policies and procedures as necessary. Management will also communicate the updated policies and procedures to all relevant employees and provide training as needed. Monitoring and testing procedures will be implemented to ensure that the updated policies and procedures are being followed. There will also be regular reviews and updates to the policies and procedures as needed to ensure ongoing effectiveness. Management will assign responsibility for maintaining source documentation to a specific individual or team and develop a system for organizing and storing source documentation, such as a centralized electronic database. Monitoring and testing procedures will be implemented to ensure that source documentation is being maintained and is readily accessible. Lastly, there will be regular reviews and updates to the system for organizing and storing source documentation as needed to ensure ongoing effectiveness.

View Audit 401848

Finding 1215167 (2024-003)

Material Weakness 2024

YWCA of Glendale and Pasadena

CA

Subrecipient Monitoring Reporting Significant Deficiency § 200.329

Management concurs with the finding and will ensure that records are maintained to indicate timely submission of reports.

View Audit 401831

Finding 1215165 (2024-002)

Material Weakness 2024

McLaughlin Research Institute for Biomedical Sciences, Inc.

MT

Reporting § 200.302 § 200.502 § 200.510

Organization Response: Management acknowledges the auditors’ comments, with the clarification below, and has taken the actions listed below. The overstatement noted in this finding was a misstatement. The omission noted in this finding references funds received from state and county agencies. Theref...

Organization Response: Management acknowledges the auditors’ comments, with the clarification below, and has taken the actions listed below. The overstatement noted in this finding was a misstatement. The omission noted in this finding references funds received from state and county agencies. Therefore, the funds were recorded consistent with the information and documentation provided by the pass-through entity (Cascade County) which did not clearly identify the original funding source as the federal entity. To ensure internal controls over funding sources and expense reporting, the grant award and processing policy has been reviewed and updated to include due diligence of original funding sources.

View Audit 401828

Finding 1215147 (2024-006)

Material Weakness 2024

Friends Alliance Housing Ii,inc D/b/a Friendship House

LA

HUD Housing Programs

Assistance Listing Number 14.181: Section 811 Supportive Housing for Persons with Disabilities. See the details of this finding for the failure to make the required monthly reserve deposits in 2024-003 above.

View Audit 401816

Corrective Action Plans

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