Corrective Action Plans

Finding 1186679 (2023-001)

Material Weakness 2023

Alcohol and Drug Abuse Treatement Center

AL

Reporting

Management agrees with this finding. Management will take the appropriate actions to ensure that its Single Audit Reporting Package is submitted to the Federal Audit Clearinghouse no later than nine months after fiscal year end.

View Audit 394388

Finding 1182642 (2023-001)

Material Weakness 2023

Country Club Hills School District 160

IL

The District will implement a process to track the submission time of the data collection form and audit package.

View Audit 394087

Finding 1182551 (2023-002)

Material Weakness 2023

Sheepscot Valley Regional School Unit No. 12

ME

Procurement, Suspension & Debarment

Management’s Response/Corrective Action Plan: The Superintendent and Business Manager will formally review all applicable procedures with the administrative team. The administrative team will ensure that consistent training is provided to their respective Administrative Assistants. The Business Mana...

Management’s Response/Corrective Action Plan: The Superintendent and Business Manager will formally review all applicable procedures with the administrative team. The administrative team will ensure that consistent training is provided to their respective Administrative Assistants. The Business Manager will conduct periodic follow-up reviews with the Administrative Assistants to monitor compliance and reinforce procedures. In addition, the Business Manager will review purchasing procedures with the Accounts Payable Clerk to ensure that no supplies are ordered without an approved purchase order.

View Audit 393990

Finding 1182527 (2023-002)

Material Weakness 2023

Chelan County

WA

Procurement, Suspension & Debarment Subrecipient Monitoring

Finding ref number: 2023-002 Finding caption: The County did not have adequate internal controls and did not comply with federal suspension and debarment requirements. Name, address, and telephone of County contact person: Scott Renick, Financial Manager 350 Orondo Avenue Ste 306 Wenatchee, WA 98801...

Finding ref number: 2023-002 Finding caption: The County did not have adequate internal controls and did not comply with federal suspension and debarment requirements. Name, address, and telephone of County contact person: Scott Renick, Financial Manager 350 Orondo Avenue Ste 306 Wenatchee, WA 98801 (509) 667-6655 Corrective action the auditee plans to take in response to the finding: SAM.gov was used for suspension and debarment verifications, however the wrong page was printed and there was no time/date stamp. The correct procedure has been taught and will be used properly, and the verifications will be recorded properly, in the future. Anticipated date to complete the corrective action: Completed

View Audit 393948

Finding 1182223 (2023-006)

Material Weakness 2023

Independent Resources, Inc.

DE

Allowable Costs / Cost Principles Period of Performance Matching / Level of Effort / Earmarking

Name of Contact Person Lillian Harrison, Executive Director Management’s Response/Corrective Action The Organization will develop and implement formal written policies and procedures to strengthen internal controls over monitoring the period of performance for all federal awards. In addition, manage...

Name of Contact Person Lillian Harrison, Executive Director Management’s Response/Corrective Action The Organization will develop and implement formal written policies and procedures to strengthen internal controls over monitoring the period of performance for all federal awards. In addition, management will provide training to relevant staff on federal grant compliance requirements related to allowable costs and period of performance to ensure expenditures are incurred within the authorized timeframe.

View Audit 393606

Finding 1182222 (2023-005)

Material Weakness 2023

Independent Resources, Inc.

DE

Internal Control / Segregation of Duties Subrecipient Monitoring Reporting

Name of Contact Person Lillian Harrison, Executive Director Management’s Response/Corrective Action The Organization will develop policies and procedures to ensure that the timely filing of the annual reports to ensure proper program compliance. Proposed Completion Date September 30, 2026

View Audit 393606

Finding 1182221 (2023-004)

Material Weakness 2023

Independent Resources, Inc.

DE

Internal Control / Segregation of Duties Subrecipient Monitoring Reporting

Name of Contact Person Lillian Harrison, Executive Director Management’s Response/Corrective Action The Organization will develop policies and procedures to ensure that proper internal control procedures and expenditure approval forms are filled out. Proposed Completion Date September 30, 2026

View Audit 393606

Finding 1182220 (2023-003)

Material Weakness 2023

Independent Resources, Inc.

DE

Name of Contact Person Lillian Harrison, Executive Director Management’s Response/Corrective Action The Organization will develop policies and procedures to ensure that the timely filing of its single audit report to the Federal Audit Clearinghouse. Proposed Completion Date September 30, 2026

View Audit 393606

Finding 1182219 (2023-002)

Material Weakness 2023

Independent Resources, Inc.

DE

Internal Control / Segregation of Duties

Name of Contact Person Lillian Harrison, Executive Director Management’s Response/Corrective Action The Organization will take steps to recruit additional Board members and schedule meetings in accordance with the by-laws. In addition, the Organization will consider amending its by-laws to reflect t...

Name of Contact Person Lillian Harrison, Executive Director Management’s Response/Corrective Action The Organization will take steps to recruit additional Board members and schedule meetings in accordance with the by-laws. In addition, the Organization will consider amending its by-laws to reflect the Organization’s current operational capacity while still ensuring adequate governance. Proposed Completion Date September 30, 2026

View Audit 393606

Finding 1182218 (2023-001)

Material Weakness 2023

Independent Resources, Inc.

DE

Internal Control / Segregation of Duties Reporting

Name of Contact Person Lillian Harrison, Executive Director Management’s Response/Corrective Action The Organization has created a policy surrounding the issuance of bonuses. Bonuses may include performance-based, project-specific, and discretionary categories. The Executive Director initiates bonus...

Name of Contact Person Lillian Harrison, Executive Director Management’s Response/Corrective Action The Organization has created a policy surrounding the issuance of bonuses. Bonuses may include performance-based, project-specific, and discretionary categories. The Executive Director initiates bonuses, while the Board of Directors provides final approval, maintaining transparency throughout. Regular reviews and audits ensure fairness and compliance. Non-compliance consequences are outlined. This policy emphasizes open communication, promoting a culture of fairness, accountability, and recognition of employee contributions. Proposed Completion Date September 30, 2026

View Audit 393606

Finding 1182091 (2023-003)

Material Weakness 2023

Mid-Bronx Ccrpearly Childhood Center, Inc.

NY

Reporting Internal Control / Segregation of Duties

Corrective Action Due to the impact of COVID-19 and significant employee turnover, the Organization was unable to submit its report to the Federal Audit Clearinghouse by the required deadline. To strengthen its reporting processes, the Organization hired a Grants Officer effective July 1, 2023. This...

Corrective Action Due to the impact of COVID-19 and significant employee turnover, the Organization was unable to submit its report to the Federal Audit Clearinghouse by the required deadline. To strengthen its reporting processes, the Organization hired a Grants Officer effective July 1, 2023. This individual will work closely with the finance team to ensure that the books are closed accurately and on schedule, and that all future submissions to the Federal Audit Clearinghouse are completed in a timely manner. Responsible Party Minda Ongteco, Deputy Director - Fiscal Luis Villa, Director of Finance Jeanette Puryear, Executive Director Implementation Date In-progress completion expected by March 31, 2026

View Audit 393459

Finding 1182090 (2023-002)

Material Weakness 2023

Mid-Bronx Ccrpearly Childhood Center, Inc.

NY

Reporting

Corrective Action Liquidation of the remaining liabilities will be settled immediately and upon vendor’s issuance of final documentation. Responsible Party Minda Ongteco, Deputy Director - Fiscal Luis Villa, Director of Finance Jeanette Puryear, Executive Director Implementation Date Resolved by Jun...

Corrective Action Liquidation of the remaining liabilities will be settled immediately and upon vendor’s issuance of final documentation. Responsible Party Minda Ongteco, Deputy Director - Fiscal Luis Villa, Director of Finance Jeanette Puryear, Executive Director Implementation Date Resolved by June 30, 2025

View Audit 393459

Finding 1182017 (2023-005)

Material Weakness 2023

Voices of Tomorrow

WA

Reporting Significant Deficiency Internal Control / Segregation of Duties

Corrective action planned: Management has organized their general ledger to allow for better matching and coding to better identify unallowable costs during the billing process. Additionally, necessary staff were trained on the tracking and approving expenditure on federal cost principles. Reviews w...

Corrective action planned: Management has organized their general ledger to allow for better matching and coding to better identify unallowable costs during the billing process. Additionally, necessary staff were trained on the tracking and approving expenditure on federal cost principles. Reviews will be made on quarterly baises, and all necessary documentation is collected and reviewed

View Audit 393387

Finding 1182016 (2023-004)

Material Weakness 2023

Voices of Tomorrow

WA

Allowable Costs / Cost Principles Significant Deficiency

Management partially disagrees with the characterization of the finding. The Organization had an established cost allocation methodology in place and provided documentation outlining the allocation basis and percentages applied to shared nonpayroll costs. The allocation methodology was reasonable, c...

Management partially disagrees with the characterization of the finding. The Organization had an established cost allocation methodology in place and provided documentation outlining the allocation basis and percentages applied to shared nonpayroll costs. The allocation methodology was reasonable, consistently applied, and based on operational usage. The matter identified during audit testing relates to a difference in interpretation regarding the allocation percentage applied to certain costs. The federal project expected 100% allocation of specific costs directly to the program, whereas the Organization allocated costs proportionally based on a documented cost allocation methodology. The variance was not due to a lack of methodology, but rather a disagreement regarding the appropriate allocation basis under the specific award expectations.

View Audit 393387

Finding 1182015 (2023-003)

Material Weakness 2023

Voices of Tomorrow

WA

Procurement, Suspension & Debarment Significant Deficiency Internal Control / Segregation of Duties

Implement a standardized procurement documentation checklist requiring evidence of procurement method, cost/price analysis, and approvals. Require CFO pre-approval for federally funded procurements above established thresholds. Conduct staff training on federal procurement standards. Implement quart...

Implement a standardized procurement documentation checklist requiring evidence of procurement method, cost/price analysis, and approvals. Require CFO pre-approval for federally funded procurements above established thresholds. Conduct staff training on federal procurement standards. Implement quarterly internal procurement compliance reviews.

View Audit 393387

Finding 1182014 (2023-002)

Material Weakness 2023

Voices of Tomorrow

WA

Subrecipient Monitoring Significant Deficiency

Corrective action planned: Management has revised its internal policies and procedures regarding subrecipient monitoring to follow 2 CFR 200.332. Ensure that subward are clearly identified and included in subrecipient agreement.

View Audit 393387

Finding 1182013 (2023-001)

Material Weakness 2023

Voices of Tomorrow

WA

Allowable Costs / Cost Principles Material Weakness

Voices of Tomorrow will strengthen its payroll and time-and-effort documentation practices to comply with 2 CFR 200.430(i). The Organization will implement an after-thefact time and effort reporting process that accurately reflects actual work performed by employees whose compensation is charged to ...

Voices of Tomorrow will strengthen its payroll and time-and-effort documentation practices to comply with 2 CFR 200.430(i). The Organization will implement an after-thefact time and effort reporting process that accurately reflects actual work performed by employees whose compensation is charged to federal programs.

View Audit 393387

Finding 1181900 (2023-002)

Material Weakness 2023

Butts County Board of Commissioners

GA

Procurement, Suspension & Debarment

Management will implement a process to ensure compliance with the procurement requirements of the Uniform Guidance. Trainings on procurement will be given on at least an annual basis.

View Audit 393206

Finding 1181864 (2023-003)

Material Weakness 2023

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 aresupported by complete source documentation, including invoices, rental reasonablenessforms, management approvals, non-financial support records, and executed con...

The Organization is in the process of strengthening its documentation retention procedures to ensure all federally funded disbursements aresupported by complete source documentation, including invoices, rental reasonablenessforms, management approvals, non-financial support records, and executed contracts. Staffhave 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 393148

Finding 1181863 (2023-002)

Material Weakness 2023

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 393148

Finding 1181862 (2023-001)

Material Weakness 2023

Restoration Society, INC

NY

Allowable Costs / Cost Principles

The Organization has implemented a standardized time-and-attendance process requiring all staff whose salaries are charged to federal programs to document actual time worked by program. Supervisors will review and approve these records monthly, and the accounting department will verify that payroll ...

The Organization has implemented a standardized time-and-attendance process requiring all staff whose salaries are charged to federal programs to document actual time worked by program. Supervisors will review and approve these records monthly, and the accounting department will verify that payroll allocations agree to approved documentation before charging costs to federal awards.

View Audit 393148

Finding 1181799 (2023-003)

Material Weakness 2023

145 SO. 3RD STREET HOUSING DEVELOPMENT FUND CORPORATION

NY

HUD Housing Programs

Management has reviewed the circumstances surrounding this finding and confirmed that, based on the January 2024 tenant lease, the security deposit had already been refunded to the tenant. To prevent future noncompliance, management will implement the following measures: • Strengthen internal proced...

Management has reviewed the circumstances surrounding this finding and confirmed that, based on the January 2024 tenant lease, the security deposit had already been refunded to the tenant. To prevent future noncompliance, management will implement the following measures: • Strengthen internal procedures to ensure all security deposit refunds or itemized charge statements are issued within the required HUD timeframes. • Maintain clear documentation in each tenant file verifying the date of refund or the date the itemized list of charges was provided. • Conduct periodic internal file reviews to ensure ongoing compliance with HUD occupancy requirements. • Provide staff training on HUD regulations related to security deposit processing and documentation standards. These actions will ensure timely and compliant handling of security deposits going forward and prevent recurrence of this issue.

View Audit 393088

Finding 1181798 (2023-002)

Material Weakness 2023

145 SO. 3RD STREET HOUSING DEVELOPMENT FUND CORPORATION

NY

Eligibility HUD Housing Programs Subrecipient Monitoring

A. Strengthening Recertification Compliance 1. Implementation of a Recertification Tracking System: a. A digital tracking log will be used to monitor upcoming recertifications with alerts at 90, 60, and 30 days before due dates. b. The Senior Housing Specialist will oversee timely completion and iss...

A. Strengthening Recertification Compliance 1. Implementation of a Recertification Tracking System: a. A digital tracking log will be used to monitor upcoming recertifications with alerts at 90, 60, and 30 days before due dates. b. The Senior Housing Specialist will oversee timely completion and issue weekly progress reports to the Director of Asset Management. c. Non-compliant files will be flagged for immediate follow-up with tenants. d. PMCS, a third-party group, will assist with recertifications. 2. Enforcing Timely Recertifications: a. Recertifications must be completed no later than 30 days before expiration. b. Staff will receive monthly reminders, and escalation measures will be implemented for delays. 3. Quarterly Internal Audits: a. PMCS and internal staff will conduct random file audits every three months to ensure adherence. b. Deficiencies will be addressed in real-time, and corrective steps will be logged. B. Ensuring EIV System Compliance 1. Standardizing EIV Compliance Procedures: a. A formal checklist will be created for EIV report reviews, ensuring all required reports are generated before lease renewals. b. EIV data will be cross-referenced with tenant files every quarter to ensure completeness. 2. Internal Monthly EIV Reviews: a. The Senior Housing Specialist will generate and review EIV reports on the 1st of each month. b. The Director of Asset Management, Third-Party Compliance Officer (PMCS), and Senior Housing Specialist will verify compliance before reports are finalized. 3. Quarterly Compliance Reports: a. The Compliance Officer will submit a quarterly compliance report documenting completion rates and deficiencies. C. Enhancing Staff Training and Accountability 1. Mandatory Quarterly Training: a. Staff will undergo quarterly compliance training covering HUD Handbook 4350.3, recertifications, and EIV compliance. b. Training sessions will be documented, and staff performance assessed. 2. Clarification of Responsibilities: a. Staff roles will be clearly outlined in a Standard Operating Procedure (SOP) document. b. Staff will be required to acknowledge their roles in compliance processes. 3. PMCS Involvement for Training Support: a. PMCS will offer supplementary training sessions as needed. D. Documentation and Oversight Enhancements 1. Maintaining Complete and Auditable Files: a. All lease and EIV documentation will be stored both physically and digitally. b. A real-time compliance dashboard will track completion rates. 2. Routine Management Reviews: a. The Senior Housing Specialist and Director of Asset Management will conduct monthly spot checks to verify document accuracy and completion. b. Non-compliance will result in formal corrective actions.

View Audit 393088

Finding 1181797 (2023-001)

Material Weakness 2023

145 SO. 3RD STREET HOUSING DEVELOPMENT FUND CORPORATION

NY

Internal Control / Segregation of Duties Subrecipient Monitoring HUD Housing Programs

1. Management will establish an administrative calendar of required filings for the submission of the single audit reporting package and data collection form. 2. A Single Audit reporting package and data collection form will be sent to the Federal Audit Clearinghouse (FAC) by the due date.

View Audit 393088

Finding 1181673 (2023-007)

Material Weakness 2023

Maryland Network Against Domestic Violence, INC

MD

Allowable Costs / Cost Principles

Summary of Findings The Organization does not have a cost allocation plan in place. Due to this, there is a lack of documentation around allocation methodology and lookback on budget to actual analysis. We consider this to be a material weakness in internal controls over compliance with Allowable Co...

Summary of Findings The Organization does not have a cost allocation plan in place. Due to this, there is a lack of documentation around allocation methodology and lookback on budget to actual analysis. We consider this to be a material weakness in internal controls over compliance with Allowable Costs/Cost Principles and is not considered a repeated finding. Although the Organization appears to be allocating costs, they still need to have written cost allocation plan created to make sure the plan is being followed and costs are charged appropriately to programs. Statement of Concurrence or Nonconcurrence MNADV concurs with the finding and recommendation labeled 2023-007. The organization does have a cost allocation process, but it is not a formal written policy. Corrective Action 1. Review the current system in place for cost allocation. 2. Develop and implement a written cost allocation plan to ensure costs are charged appropriately to programs. Responsible Parties: Executive Director and Contractual Bookkeeper Completion Date: Within 60 days of the date of this memo.

View Audit 392932

Corrective Action Plans

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