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We agree that the State and Local Fiscal Recovery Funds (SLFRF) Project and Expenditure Report was overstated by $1,059,739.66 for the grant period ended December 31, 2025. We contract with Bricker, Graydon, Wyatt LLP to complete the SLFRF reporting. We understand that we should review the report as...
We agree that the State and Local Fiscal Recovery Funds (SLFRF) Project and Expenditure Report was overstated by $1,059,739.66 for the grant period ended December 31, 2025. We contract with Bricker, Graydon, Wyatt LLP to complete the SLFRF reporting. We understand that we should review the report as it is completed by the law firm. Interest earned on SLFRF funds do not have to be remitted to the US Department of Treasury and is not subject to the SLRFR program use restrictions. Therefore, the issue deals primarily with reporting and classification. The County will review and reconcile all expenditures reported under the SLFRF grant receipts, interest earnings, expenditures, and amounts reported to the US Department of the Treasury. The County will ensure expenditures are accurately classified and reported according to the source of funds and applicable Treasury reporting requirements. We will review the report after it is prepared by the law firm and approve the reconciliation before the report is submitted. The reconciliation will specifically distinguish SLFRF award funds from interest earnings and other non-SLFRF revenues.
Water and Sewer Department: The engineering services in question were procured through public advertisement for request of qualifications (enclosed). The RFQ evaluation process was followed and a selection was made. However, it appears that files were misplaced or discarded and we are unable to loca...
Water and Sewer Department: The engineering services in question were procured through public advertisement for request of qualifications (enclosed). The RFQ evaluation process was followed and a selection was made. However, it appears that files were misplaced or discarded and we are unable to locate the RFQ evaluations or any other documentation to support the acquisition of the project engineer. Regarding the debarment and suspension regulations for Federal awards (2 CFR part 180), these requirements are typically included in the project bid specifications produced by the project engineer and become part of the project construction agreement. 2 CFR part 180 was inadvertently omitted from the project bid specifications including the construction agreement. In the future a more thorough review of the bid specifications will be conducted to ensure that all funding agency requirements are met. County Clerk of Courts: In response to material weakness identified as 2025-004, I was not the Clerk when this project was submitted to the Board in June of 2021. I attempted to locate any applicable documentation to support the project but was unsuccessful. I am aware of the need to obtain multiple quotes for projects and will do so in the future.
Golden West Humanitarian Foundation agrees with the finding and will implement written cash management procedures designed to ensure compliance with the requirements applicable to interest earned on Federal advance payments. The Foundation will establish procedures to identify Federal advance balanc...
Golden West Humanitarian Foundation agrees with the finding and will implement written cash management procedures designed to ensure compliance with the requirements applicable to interest earned on Federal advance payments. The Foundation will establish procedures to identify Federal advance balances by Federal award and applicable bank or investment account and to calculate the amount of interest earned on those balances. The calculation will be performed at least annually and more frequently when Federal advance balances are significant. As part of this process, the Foundation will determine the amount of interest earned on Federal funds that is subject to remittance after consideration of the annual amount permitted to be retained for administrative expenses. Any amount required to be remitted will be recorded as a payable at year-end and remitted to the Federal government through the applicable Federal payment system in accordance with Federal requirements. The Foundation has evaluated the interest earned on Federal advance balances during the year ended December 31, 2025 and determined the amount, required to be remitted to the Federal government. Any required liability will be recorded and amounts due will be remitted in accordance with applicable Federal requirements. Responsibility for preparing the interest calculation and related reconciliation will be assigned to Asia Johnson, Chief Compliance Officer. The calculation, related accounting entries, and evidence of any required remittance will be reviewed by and approved by an individual (or individuals) independent of the preparer.
The Metro Ride Transit Authority has experienced considerable turnover in management staff and the procurement process over debarment and suspension verification was missed. To address concerns and ensure that federal debarment and suspension procedures are properly emphasized throughout the organiz...
The Metro Ride Transit Authority has experienced considerable turnover in management staff and the procurement process over debarment and suspension verification was missed. To address concerns and ensure that federal debarment and suspension procedures are properly emphasized throughout the organization, the City has taken steps to strengthen its internal policies. Specifically, oversight of debarment and suspension has been incorporated into both the City’s procurement policy and grant management policy. These enhancements are intended to reinforce compliance and highlight the importance of these procedures throughout the organization.
Plan of Compliance As discussed in Note 1 regarding the Corporation’s instance of noncompliance with its regulatory agreement with HUD, the Corporation agreed to a HUD proposal for repayment of the funds and adopted a resolution by the board indicating such acceptance and includes the following: An ...
Plan of Compliance As discussed in Note 1 regarding the Corporation’s instance of noncompliance with its regulatory agreement with HUD, the Corporation agreed to a HUD proposal for repayment of the funds and adopted a resolution by the board indicating such acceptance and includes the following: An acknowledgement of the obligations set forth in the regulatory agreement with HUD dated April 11, 1984, and the intention to fully comply with the provisions therein going forward. NCC’s and NCHC’s intention to make full restitution of the outstanding balances due to the Corporation. Annual payments will not be less than $150,000 for the next 10 years beginning in 2015 through 2024. The Company is currently in communication with HUD regarding the new repayment proposal. Until such time as the parties agree to new terms, the Corporation's intention is to continue making payments of not less than $150,000. One year prior to the expiration of the 10-year repayment period (2023), a new repayment proposal will be provided to HUD, requiring payments not less than $250,000 per year. The Company has been in communication with HUD regarding the new repayment proposal. Until such time as the parties agree to new terms, the Corporation's intention is to continue making payments of not less than $150,000. No Project funds or other HUD funds will be used as a source for repayment. An accounting system must be maintained to track restitution payments acceptable to HUD. Management is required to provide to HUD responses to any management letters received in connection with the annual audits. Certain monthly financial reports and other program-specific reports are required to be submitted to HUD. The boards of NCC / the Corporation are required to conduct quarterly compliance briefings with the minutes of such meetings sent to HUD.
2025-002 - Excess Drawdown of Federal Funds (Significant Deficiency and Other Matters) Federal Program Information: Type of Finding: Compliance Areas: Funding Agency: Title: FAL Number: Passthrough: Award Period: Significant Deficiency, Other Non-compliance Cash Management, Allowable Costs and Cost ...
2025-002 - Excess Drawdown of Federal Funds (Significant Deficiency and Other Matters) Federal Program Information: Type of Finding: Compliance Areas: Funding Agency: Title: FAL Number: Passthrough: Award Period: Significant Deficiency, Other Non-compliance Cash Management, Allowable Costs and Cost Reporting U.S. Department of Education Teacher Quality Partnership Grants 84.336S NIA 10/01/2024- 09/30/2025 Principles, and Criteria: Cash Management Although 2 CFR 200.305(b)(l ) permits the Foundation to draw down funds in advance, the entity utilizes a cost reimbursement approach for Federal funding. This practice ensures that funds are drawn only for immediate cash needs . 2 CFR 200.305(8)(1) Federal payment. Advance payments to a non-Federal entity must be limited to the minimum amounts needed and be timed to be in accordance with the actual, immediate cash requirements of the non-Federal entity in carrying out the purpose of the approved program or project. The timing and amount of advance payments must be as close as is administratively feasible to the actual disbursements by the non-Federal entity for direct program or projects costs and the proportionate share of any allowable indirect costs. Cost Principals and Reporting: The application of cost principles is governed by 2 CFR 200.400; specifically (b) the non-Federal entity assumes responsibility for administering Federal funds in a manner consistent with underly ing agreements, program objectives, and the terms and conditions of the Federal award. Condition: During our review of cash management procedures, we identified the following issue: • The Foundation drew down funds for the Teacher Quality Partnership Grants {TQP) prior to expenditures or when expenditures were not yet anticipated to be actu ally disbursed. o TQP Effective Educators grant - $771,222 o TQP Southwest grant - $572,672 Questioned Costs: None. The Foundation used all the funds drawn down according to the grant directives as it closed out the grant funds. All expenditures were in compliance with the stated objectives. Cause: During the beginning of the second Donald Trump administration, President Trump issued an executive order on January 20, 2025 that established the Department of Government Efficiency (DOGE). Individuals within the Employment and Training Administration (Budget and Management) of the DOL that administered our YouthBuild program and other similar programs encouraged the Foundation to draw down the funds on all grants as they believed the grants were going to be shut down soon by DOGE, but they wanted those entities that were already committed to staffing and programs to be able to complete the year. The Foundation did draw down funds in order to complete the commitments. Effect: The Foundation was not in compliance with 2 CFR200.305(b)(l) and 2 CFR200.400(b) by drawing down funds prior to actual expenditures. Auditor's Recommendation: We recommend that the Foundation not draw down funds prior to incurring actual expenditures or until expenditures are expected in the very near future. Grant program personnel do not have the authority to waive 2 CFR requirements or grant requirements, even in unusual situations like the DOGE occurrence. Responsible official's view: • Specific corrective action plan for the finding: Three Rivers Education Foundation's CEO, Dr. Linda J Coy will ensure that all drawdowns follow appropriate timeframes as required. TREF has already implemented this longstanding practice. The action described in this "Significant Deficiency" came about because of extenuating circumstances and advice provided from the federal government. We were assisted with disbursements by the Federal Program Officer for the TQP programs. • Timeline for completion of corrective action plan: The corrective plan has been implemented as per Dr. Linda J. Coy, CEO for Three Rivers Education Foundation as of September 29, 2026. • Employee positions(s) responsible for meeting the timeline: Dr. Linda J Coy, Executive Director and James L. Coy, Chief Financial Officer
Memorandum To: Christopher McDonald, Director, Assurance Services Aprio, LLP | Aprio Advisory Group, LLC From: Housing Authority of the City of Asheville Date: August 25, 2026 Subject: Corrective Action – Missing Eligibility Documentation HACA acknowledges the repeat finding regarding missing eligib...
Memorandum To: Christopher McDonald, Director, Assurance Services Aprio, LLP | Aprio Advisory Group, LLC From: Housing Authority of the City of Asheville Date: August 25, 2026 Subject: Corrective Action – Missing Eligibility Documentation HACA acknowledges the repeat finding regarding missing eligibility-related documentation in certain tenant files. While the number of missing documents has decreased since the prior audit period, additional monitoring is needed to ensure continued compliance. The Authority has implemented RentCafe for new files, standardized file checklists, and enhanced quality control procedures. The Authority will also increase QC staffing hours to expand tenant-file reviews and track missing or incomplete documentation through documented follow-up and resolution. QC results will be periodically reviewed to identify recurring deficiencies and determine whether additional staff guidance or training is needed. The Authority will continue supervisory and QC reviews to ensure required tenant-file documentation is complete, accurate, properly maintained, and available for examination.
Name of Contact Person Responsible for Corrective Action: Catherine Schaaf, Executive Director Corrective Action Planned ECO implemented Clockify in 2026 to document the amount of time staff work on activities associated with each funding stream and support the allocation of payroll and related cost...
Name of Contact Person Responsible for Corrective Action: Catherine Schaaf, Executive Director Corrective Action Planned ECO implemented Clockify in 2026 to document the amount of time staff work on activities associated with each funding stream and support the allocation of payroll and related costs based on actual work performed rather than predetermined or assigned percentages. Staff received training throughout 2026 on their funding allocations and use of the time-tracking system, including guidance for appropriately recording activities by funding stream. The HR & Finance Director will be responsible for administering the time-tracking and payroll allocation process and conducting periodic audits of time-tracking records to compare documented staff activity to payroll allocations. Any identified variances will be reviewed and allocations adjusted as appropriate. The Operations Director will monitor compliance with established time-tracking and payroll allocation procedures, and the Executive Director will provide overall oversight and ensure identified issues are addressed in a timely manner. Anticipated Completion Date December 31, 2026
Name of Contact Person Responsible for Corrective Action: Catherine Schaaf, Executive Director Corrective Action Planned ECO is currently reviewing and revising its Financial Procedures Manual to ensure written accounting and administrative policies and procedures reflect current operations and appl...
Name of Contact Person Responsible for Corrective Action: Catherine Schaaf, Executive Director Corrective Action Planned ECO is currently reviewing and revising its Financial Procedures Manual to ensure written accounting and administrative policies and procedures reflect current operations and applicable Federal requirements. The revised manual will clearly document financial procedures, internal controls, responsibilities, and methodologies for allocating indirect, shared, personnel, and other costs to applicable funding sources. The HR & Finance Director will be responsible for maintaining and implementing the Financial Procedures Manual, ensuring appropriate financial documentation is maintained, and communicating applicable procedures to staff. The Operations Director will monitor implementation of and compliance with established procedures and assist in identifying areas requiring corrective action. The Executive Director will provide overall oversight and ensure identified issues are addressed in a timely manner. ECO will periodically review and update the Financial Procedures Manual to ensure policies and procedures remain appropriate for current operations and applicable requirements. Changes to established financial procedures or allocation methodologies will be documented and approved prior to implementation. Anticipated Completion Date December 31, 2026
Name of Contact Person Responsible for Corrective Action: Catherine Schaaf, Executive Director Corrective Action Planned ECO will implement procedures to ensure the timely completion and submission of the SEFA and applicable reporting package. Following the December 31 fiscal year-end, ECO will targ...
Name of Contact Person Responsible for Corrective Action: Catherine Schaaf, Executive Director Corrective Action Planned ECO will implement procedures to ensure the timely completion and submission of the SEFA and applicable reporting package. Following the December 31 fiscal year-end, ECO will target completion of the year-end financial close within 45 days, preparation of key financial schedules, the SEFA, and initial auditor-requested documentation by March 15, and completion of the annual audit by August 31, in advance of the September 30 regulatory deadline. The HR & Finance Director will be responsible for coordinating preparation of the SEFA, year-end financial documentation, and auditor-requested materials and for tracking applicable reporting deadlines. The Operations Director will monitor progress against established year-end close and audit milestones and assist in identifying and resolving delays that could affect timely completion. The Executive Director will provide oversight to ensure the audit and required reports remain on schedule for timely submission. Key audit milestones and required reporting deadlines will be incorporated into ECO’s compliance calendar and reviewed regularly by leadership throughout the year-end close and audit process. Any delays or issues that could affect timely completion will be identified and addressed as they arise. Anticipated Completion Date March 15, 2027
Finding 1238780 (2025-005)
Material Weakness 2025
Finding 2025-005 Finding Subject: COVID-19 – Coronavirus State and Local Fiscal Recovery Funds – Allowable Costs/Cost Principles Summary of Finding: During the audit, it was identified that the County charged various drug court expenditures to the SLFRF award throughout the audit period. While certa...
Finding 2025-005 Finding Subject: COVID-19 – Coronavirus State and Local Fiscal Recovery Funds – Allowable Costs/Cost Principles Summary of Finding: During the audit, it was identified that the County charged various drug court expenditures to the SLFRF award throughout the audit period. While certain drug court activities may align with eligible programs objectives, detailed testing determined that SLFRF funds were applied to costs that are not allowable under federal guidance governing the drug court program. These expenditures do not meet the federal eligibility or cost-allowability requirements established for SLFRF funds and therefore constitute unallowable charges to the grant. Contact Person Responsible for Corrective Action: Debbie Morton-Crum, County Auditor Contact Phone Number: 765-482-2940 Views of Responsible Officials: We concur with the finding. Description of Corrective Action Plan: My office was not part of any discussions when Commissioners approved the Covid-19 project list. My team will work with the Federal Treasury to make sure what Drug Court costs are allowed under the Covid-19 grant. Anticipated Completion Date: August 2026
Finding 1238779 (2025-004)
Material Weakness 2025
Finding 2025-004 Finding Subject: COVID-19 – Coronavirus State and Local Fiscal Recovery Funds – Period of Performance Contact Person Responsible for Corrective Action: Debbie Morton-Crum, County Auditor Contact Phone Number: 765-482-2940 Views of Responsible Officials: We concur with the finding. D...
Finding 2025-004 Finding Subject: COVID-19 – Coronavirus State and Local Fiscal Recovery Funds – Period of Performance Contact Person Responsible for Corrective Action: Debbie Morton-Crum, County Auditor Contact Phone Number: 765-482-2940 Views of Responsible Officials: We concur with the finding. Description of Corrective Action Plan: My office will put internal controls in place to make sure all invoices paid under the Covid-19 grant funds are entered into the correct quarter for reporting purposes. The Deputy Auditor will prepare all of the invoices for the grant funds and the Auditor will check to make sure the claims are for the correct period. Anticipated Completion Date: August 2026
Finding 1238778 (2025-003)
Material Weakness 2025
Finding 2025-003 Finding Subject: COVID-19 – Coronavirus State and Local Fiscal Recovery Funds - Reporting Contact Person Responsible for Corrective Action: Debbie Morton-Crum, County Auditor Contact Phone Number: 765-482-2940 Views of Responsible Officials: We concur with the finding. Description o...
Finding 2025-003 Finding Subject: COVID-19 – Coronavirus State and Local Fiscal Recovery Funds - Reporting Contact Person Responsible for Corrective Action: Debbie Morton-Crum, County Auditor Contact Phone Number: 765-482-2940 Views of Responsible Officials: We concur with the finding. Description of Corrective Action Plan: The Deputy Auditor will prepare and gather the invoices that need to be uploaded to the Federal Treasury P&E report. The Auditor will double check the P&E report before final submission Anticipated Completion Date: December 2026
Finding 1238777 (2025-002)
Material Weakness 2025
Finding 2025-002 Finding Subject: COVID-19 - Coronavirus State and Local Fiscal Recovery – Procurement, Suspension, and Debarment Summary of Findings: This is a repeat finding from the immediately prior audit report. The prior audit finding number was 2024-002 Prior to entering subawards and covered...
Finding 2025-002 Finding Subject: COVID-19 - Coronavirus State and Local Fiscal Recovery – Procurement, Suspension, and Debarment Summary of Findings: This is a repeat finding from the immediately prior audit report. The prior audit finding number was 2024-002 Prior to entering subawards and covered transactions with the COVID-19 - State and Local Fiscal Recovery Funds, recipients are required to verify that such contractors and subrecipients are not suspended, debarred, or otherwise excluded. "Covered transactions" include, but are not limited to, contracts for goods and services awarded under a non-procurement transaction (i.e., grant agreement) that are expected to equal or exceed $25,000. The verification is to be done by checking the Excluded Parties List System (EPLS), collecting a certification from that person, or adding a clause or condition to the covered transaction with that person. Due to the U.S. Department of the Treasury's determination that the revenue loss eligible use category does not give rise to subawards, the County was only required to comply with suspension and debarment requirements related to covered transactions. The County did not have procedures in place to verify entities were not suspended, debarred, or otherwise excluded from or ineligible for participation in federal assistance programs or activities. The lack of internal controls and noncompliance were systemic issues throughout the audit period. Contact Person Responsible for Corrective Action: Debbie Morton-Crum, County Auditor Contact Phone Number: 765-482-2940 Views of Responsible Officials: We concur with the finding. Description of Corrective Action Plan: My office will plan to work with the County Administrator on putting procedures in place for the Department entering into the contract or the County Administrator/County Attorney approving the legal wording of the contract to make sure the vendor is not suspended or debarred. Anticipated Completion Date: December 2026
Name of the Contact Person Responsible for Corrective Action Jacqueline Guilfoyle, Corporate Controller Planned Corrective Action: In alignment with management's commitment to ensuring complete and accurate grant reporting, internal control procedures for grant expenditure reviews will be enhanced. ...
Name of the Contact Person Responsible for Corrective Action Jacqueline Guilfoyle, Corporate Controller Planned Corrective Action: In alignment with management's commitment to ensuring complete and accurate grant reporting, internal control procedures for grant expenditure reviews will be enhanced. To mitigate the risks associated with complex or commingled invoices, reviewers are now required to perform a detailed, line-item analysis of any invoice containing multiple service types or charges. For invoices that include both allowable and unallowable costs, the reviewer must document the specific segregation of these costs. This updated procedure will ensure that only the direct, incremental, and eligible costs are approved for reimbursement, thereby strengthening compliance with granting agency requirements. We will also repay FEMA for the amount claimed in error. Planned Completion Date: October 30, 2026
Finding 1238773 (2025-003)
Material Weakness 2025
Finding Number: 2025-003 Finding Title: Eligibility - MAXIS Program: Name of Contact Person Responsible for Corrective Action: Quinn Jaeger, Social Services Director Karen Amundson, Social Services Supervisor Corrective Action Planned: Clay County Social Services will provide targeted training addre...
Finding Number: 2025-003 Finding Title: Eligibility - MAXIS Program: Name of Contact Person Responsible for Corrective Action: Quinn Jaeger, Social Services Director Karen Amundson, Social Services Supervisor Corrective Action Planned: Clay County Social Services will provide targeted training addressing the areas identified in the 2025 audit, with particular emphasis on Social Security number documentation and the accurate verification, documentation, and entry of asset information in MAXIS. Policy updates and related documentation expectations will continue to be reviewed during monthly staff meetings. The lead eligibility worker will continue conducting random internal reviews of MAXIS cases. Review results will be discussed directly with each worker so identified errors can be corrected, expectations clarified, and individualized coaching or additional training provided. Results will also be monitored for recurring error patterns that may require broader training, procedural changes, or performance follow-up. Because the department experienced staff turnover during the audit period, training and quality control will remain ongoing. New employees will receive focused instruction on MAXIS documentation and data-entry requirements, while established staff will continue to receive refresher training and case-specific coaching. Supervisory and lead-worker review will be used to reinforce consistent expectations across the team. Clay County has also begun using Al-assisted policy guidance to help staff more quickly locate and reference relevant state and federal eligibility requirements, This resource supports policy research and staff learning but does not make eligibility determinations or replace required verification, supervisory consultation, human judgment, or employee accountability. In addition, Clay County is partnering with the State of Minnesota to pilot the Mn Benefits-to-MAXIS application process. The pilot is intended to streamline the transfer of application information into MAXIS and reduce duplicate manual data entry. Reducing unnecessary keystrokes should decrease opportunities for human data-entry errors and allow eligibility workers to focus more attention on verifying information and accurately applying program requirements. Clay County will evaluate the pilot's impact and incorporate effective practices into its internal workflow as the state rollout progresses. Anticipated Completion Date: The enhanced training, case-review, and policy-support procedures will be fully implemented by December 31, 2026. Case reviews, staff training, monitoring, coaching, and participation in the state's MnBenefits-to-MAXIS are already underway and will continue to be utilized.
Finding 1238772 (2025-002)
Material Weakness 2025
Finding Number: 2025-002 Finding Title: Eligibility - METS Program: 93.778 Grants to States for Medicaid Name of Contact Person Responsible for Corrective Action: Quinn Jaeger, Social Services Director Mika la Wodarek, Social Services Supervisor Corrective Action Planned: Clay County Social Services...
Finding Number: 2025-002 Finding Title: Eligibility - METS Program: 93.778 Grants to States for Medicaid Name of Contact Person Responsible for Corrective Action: Quinn Jaeger, Social Services Director Mika la Wodarek, Social Services Supervisor Corrective Action Planned: Clay County Social Services will continue utilizing internal case reviews to monitor the accuracy and completeness of METS eligibility documentation. Reviews will be completed for eligibility workers and discussed directly with each worker. Identified errors will be corrected, and individualized coaching or additional training will be provided as appropriate. Review results will also be monitored for recurring patterns that may require broader team guidance or training. The department will provide continued instruction focused on the areas identified in the 2025 audit, including Social Security number documentation, citizenship verification, and accurate income documentation. Clay County has also begun using an internal Al-assisted policy research tool to help eligibility staff more quickly locate and reference applicable state and federal policy provisions when questions arise. This tool is intended to support efficient policy research only. It does not make eligibility determinations or replace staff judgment, required verification, supervisory consultation, or employee responsibility for accurately applying program policy. These measures will strengthen the existing review process while recognizing the size and complexity of Clay County's METS workload. During 2025, Clay County administered 16,604 active METS recipients. The audit identified four exceptions in its sample of 40 recipient files. Clay County takes each exception seriously and will continue refining its training, policy-reference, case-review, and coaching practices to reduce future errors. Anticipated Completion Date: Al-assisted research tool has been implemented immediately and is currently in use now. All healthcare eligibility staff will have cases randomly reviewed prior to December 31, 2026, with all policy support, monitoring, and corrective coaching continuing after each staff's review but also occurring before December 31, 2026.
Finding 2025-002 Significant Deficiency in Controls over Compliance and Noncompliance – Special Tests Federal Program: 93.243 Substance Abuse and Mental Health Services Projects of Regional and National Significance Year: 2025 Federal Agency: Department of Health and Human Services Condition – The C...
Finding 2025-002 Significant Deficiency in Controls over Compliance and Noncompliance – Special Tests Federal Program: 93.243 Substance Abuse and Mental Health Services Projects of Regional and National Significance Year: 2025 Federal Agency: Department of Health and Human Services Condition – The Contract ID 5H79SM083419 required the two key personnel to spend at least 50% level of Effort on the grant. We noted that the two Key personnel spent 25% Level of effort and 15% level of effort, respectively, during the fiscal year which constituted a greater than 25% reduction in planned effort. Management did not submit an award amendment regarding the reduction in effort. Corrective Action Plan – Henry Ford Health agrees with this finding. Henry Ford Health will strengthen monitoring of key personnel effort commitments and enhance procedures to ensure significant reductions in effort are identified, reviewed, and communicated to the sponsoring agency when prior approval is required. Anticipated Completion Date – December 31, 2026. Contact Person – Doug Clark, Senior Vice President and Chief Accounting Officer.
Finding type: Significant deficiency. Federal award: 14.251 Economic Development Initiative, Community Project Funding, and Miscellaneous Grants Criteria: Organizations receiving federal funding are subject to the government-wide suspension and debarment requirements. Those requirements restrict fed...
Finding type: Significant deficiency. Federal award: 14.251 Economic Development Initiative, Community Project Funding, and Miscellaneous Grants Criteria: Organizations receiving federal funding are subject to the government-wide suspension and debarment requirements. Those requirements restrict federal awards, subawards, and contracts with parties that are debarred, suspended, or otherwise excluded from participation in federal programs. Condition: During testing of contracts charged to the Economic Development Initiative, Community Project Funding, and Miscellaneous Grants program, we noted Vermont Huts Association Ltd did not retain evidence that it verified the suspension and debarment status of contractors and vendors before the contract was awarded or a purchase was made. Management concurrence: Management concurs with this finding. Corrective action plan: The Organization will review and update its existing vendor selection template to align with the applicable requirements of the Uniform Guidance and the Organization’s procurement policy. The updated template will require documentation of the suspension and debarment verification before applicable purchases are approved. The Organization will provide refresher training to employees involved in purchasing and vendor selection on the revised procedures and documentation requirements. Management will periodically review compliance with the revised process to confirm that the controls are operating as intended. Name of responsible official: Richard Thompson, Executive Director Projected completion date: December 31, 2026
Statement of Condition and Criteria The Authority did not consistently perform required participant recertifications and certification updates within the Housing Choice Voucher (HGV) and Moving to Work (MTW) programs. During testing, we identified instances where participant files and Forms HUD-5005...
Statement of Condition and Criteria The Authority did not consistently perform required participant recertifications and certification updates within the Housing Choice Voucher (HGV) and Moving to Work (MTW) programs. During testing, we identified instances where participant files and Forms HUD-50058 were not updated to reflect current household information when certification actions were required. Recommendation We recommend the Authority strengthen monitoring controls over recertification and eligibility processing within both the HGV and MTW programs to ensure participant information is updated timely and eligibility determinations are supported by current household information. Corrective Action - Quality Control & Monitoring Enhancements To strengthen internal controls and ensure consistent file compliance within the Housing Choice Voucher (HCV) and Moving to Work (MTW) programs, The Greenville Housing Authority (TGHA) is executing a structural reorganization of department staff. • Dedicated Compliance Personnel: Final restructuring of the current HGV department will be completed by October 31, 2026. This includes the onboarding of a dedicated Compliance Specialist by January 2027. This role will strictly focus on quality control, preventing overlooked regulatory procedures, verifying income calculations, and ensuring complete file documentation. • Real-Time Quality Control Reviews: The Compliance Specialist will implement a proactive file-checking system, auditing annual and interim recertifications, and any other occurrences, e.g., moves, that a new certification is required in real time prior to final Form HUD-50058 transmission. This allows immediate correction of deficiencies and prevents recurring systemic errors. • Management Oversight & Target Training: Compliance reporting will be reviewed at least monthly by the Director of HCV and the HCV Lead Specialists. These monthly reviews will track error rates, identify chronic deficiencies, and directly inform the department's ongoing staff training needs. TGHA anticipates fully executing these new compliance review processes and workflows by April 30, 2027.
2025-002 – Housing Voucher Cluster: Special Tests and Provisions – Reasonable Rent – ALN #14.871 Significant Deficiency Criteria: The PHA administrative plan must state the method used by the PHA to determine that the rent to owner is reasonable in comparison to rent for other comparable unassisted ...
2025-002 – Housing Voucher Cluster: Special Tests and Provisions – Reasonable Rent – ALN #14.871 Significant Deficiency Criteria: The PHA administrative plan must state the method used by the PHA to determine that the rent to owner is reasonable in comparison to rent for other comparable unassisted units. The PHA determination must consider unit attributes such as the location, quality, size, unit type, and age of the unit, and any amenities, housing services, maintenance, and utilities provided by the owner. The PHA must determine that the rent to the owner is reasonable at the time of initial leasing. Also, the PHA must determine reasonable rent during the term of the contract (a) before any increase in the rent to owner, and (b) at the HAP contract anniversary if there is a 10 percent decrease in the published Fair Market Rent in effect 60 days before the HAP contract anniversary. The PHA must maintain records to document the basis for the determination that rent to owner is a reasonable rent (initially and during the term of the HAP contract) (24 CFR sections 982.4, 982.54(d)(15), 982.158(f)(7), and 982.507). Condition: The Authority was unable to provide documentation of appropriate evaluation of rent reasonableness procedures for 3 of 22 selections made. The 3 selections specifically were instances where the evaluations were during the term of the contract when the circumstance indicated an evaluation should be completed. Cause: The Authority did not properly ensure documentation was maintained for rent evaluation reasonableness during the transitions from physical files to digital file maintenance. Effect or Potential Effect: Because documentation could not be located we were unable to determine if the evaluations of rent reasonableness was appropriately completed for 3 of the 22 selections tested. Known Questioned Costs: $0 Recommendations: We would recommend the Authority implement a process to ensure all rent reasonableness evaluations are completed as required, and documentation to support the evaluation process and conclusion is appropriately maintained within the tenant and/or property files. Views of Responsible Officials and Planned Corrective Actions: Management agrees with the finding outlined and is working to implement necessary changes to ensure compliance and appropriate internal controls are operating effectively.
Finding Number: 2025-006 Finding Title: Eligibility – METS Program: 93.778 Grants to States for Medicaid Name of Contact Person Responsible for Corrective Action: Berit Spors, Health and Human Services Director Corrective Action Planned: McLeod County recognizes the importance of proper information ...
Finding Number: 2025-006 Finding Title: Eligibility – METS Program: 93.778 Grants to States for Medicaid Name of Contact Person Responsible for Corrective Action: Berit Spors, Health and Human Services Director Corrective Action Planned: McLeod County recognizes the importance of proper information to be maintained in the METS system to ensure eligibility to qualified individuals for Medicaid. The two cases that were addressed were errors in the METS system caused by periodic date match. It would be helpful if DHS would issue discrepancy reports for the METS system similar to the MAXIS report to catch these errors. County Social Services staff will audit cases periodically to catch these errors in the systems. Anticipated Completion Date: These cases have been resolved as of September 2026.
Finding Number: 2025-005 Finding Title: Procurement and Suspension and Debarment Program: 21.027 COVID-19 – Coronavirus State and Local Fiscal Recovery Funds Name of Contact Person Responsible for Corrective Action: Colleen Robeck, Finance Director Corrective Action Planned: McLeod County recognizes...
Finding Number: 2025-005 Finding Title: Procurement and Suspension and Debarment Program: 21.027 COVID-19 – Coronavirus State and Local Fiscal Recovery Funds Name of Contact Person Responsible for Corrective Action: Colleen Robeck, Finance Director Corrective Action Planned: McLeod County recognizes the importance of internal controls over Federal Funding to be compliant with the Title 2 U.S. Code of Federal Regulations and is working on a procurement policy to address these issues. There is no misuse of funds, issues with allocation, nor concerns with any handling of funds; however, internal controls assist to assure compliance and will be implemented once complete. Anticipated Completion Date: McLeod County Finance department has drafted the procurement policy and will have the State Auditor’s Office review it for compliance before it is taken to County Board for approval before December 31, 2026.
Management deposited the delinquent required deposits of $270,000 to the replacement reserve in February 2026.
Management deposited the delinquent required deposits of $270,000 to the replacement reserve in February 2026.
The Corporation agrees with the finding and the auditor's recommendations have been adopted. $12,747 was repaid back to the Corporation in March 2026 and $150 was repaid back in September 2026.
The Corporation agrees with the finding and the auditor's recommendations have been adopted. $12,747 was repaid back to the Corporation in March 2026 and $150 was repaid back in September 2026.
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