Corrective Action Plans

Finding 561429 (2023-002)

Material Weakness 2023

CO

Reporting

Community Resource Center, Inc. acknowledges the finding and recommendation. Errors in the SEFA preparation were due to manual data entry and a lack of comprehensive training on Uniform Guidance requirements. Community Resource Center, Inc. is taking immediate steps to address these issues. Communit...

Community Resource Center, Inc. acknowledges the finding and recommendation. Errors in the SEFA preparation were due to manual data entry and a lack of comprehensive training on Uniform Guidance requirements. Community Resource Center, Inc. is taking immediate steps to address these issues. Community Resource Center, Inc. will provide Uniform Guidance training to finance staff by June 2025, ensuring familiarity with SEFA requirements. A new data specialist, to be hired in 2024, will support accurate data collection and reporting. Community Resource Center, Inc. will implement a review process involving both internal staff and an external financial consultant to ensure the SEFA is complete and accurate before submission.

View Audit 357014

Finding 561428 (2023-001)

Material Weakness 2023

Community Resource Center, Inc.

CO

Community Resource Center, Inc. acknowledges the finding and recommendation. The delay in submitting the single audit package was due to significant staffing transitions and resource limitations during the audit period. Community Resource Center, Inc. is committed to ensuring timely submission of fu...

Community Resource Center, Inc. acknowledges the finding and recommendation. The delay in submitting the single audit package was due to significant staffing transitions and resource limitations during the audit period. Community Resource Center, Inc. is committed to ensuring timely submission of future audit packages. To prevent future delays, Community Resource Center, Inc. has established a clear internal timeline and assigned responsibilities for audit-related tasks. A designated staff member within the finance team will be responsible for preparing and submitting the single audit package within the required timeline. In the event of staff turnover, Community Resource Center, Inc.'s new financial consultant, hired Nov 2024, will ensure continuity. Community Resource Center, Inc. will implement an internal audit checklist and timeline by April 2025 to ensure all reporting requirements are met.

View Audit 357014

Finding 561280 (2023-005)

Material Weakness 2023

Housing Authority of the City of Renton

WA

Eligibility HUD Housing Programs

The auditors reviewed 6 tenant files for initial admission criteria being met, such as Income calculations. Of the 6 files, 5 did not contain supporting documentation of how the income was calculated. Again, those staff are not present coming into FY2024. Of the 6 files reviewed, 3 also did not h...

The auditors reviewed 6 tenant files for initial admission criteria being met, such as Income calculations. Of the 6 files, 5 did not contain supporting documentation of how the income was calculated. Again, those staff are not present coming into FY2024. Of the 6 files reviewed, 3 also did not have 50058’s in the tenant file. And all 6 files could not be traced back to the waitlist to determine proper entrance to the program. In response to the tracking of the waitlist not being tracked on new admissions, there have not been any new HCV vouchers issued from the waitlist since the end of FY2022. RHA has an over utilization of voucher budget authority and has not issued new vouchers from that waiting list nor has RHA opened that waiting list up. RHA administration does not expect to open this waiting list in FY2024 nor FY2025. At the tail end of FY2023, RHA sent the PBV waiting lists over to the contracted third-party management company to track for RHA. Currently, that third-party management company is Allied Residential Management. Halfway through FY2024, RHA converted over to a different Housing Software which has better tracking reports than the prior software. Again, RHA has hired new staff and removed old staff that did not want to learn correct compliance procedures with the HCV department. RHA has a strong team coming into FY2025 now. FY2024 had staff in/out until we found good staff that wanted to learn and retain them.

View Audit 356918

Finding 561279 (2023-004)

Material Weakness 2023

Housing Authority of the City of Renton

WA

HUD Housing Programs Eligibility

Prior RHA staff were not ensuring that the Utility Allowance schedules were being completed correctly and matching up to the 50058, which made the HAP incorrect. Of the 40 tenant files sampled by the auditors, 29 files did not have correct utility allowances calculated; 9 files had 50058’s that did...

Prior RHA staff were not ensuring that the Utility Allowance schedules were being completed correctly and matching up to the 50058, which made the HAP incorrect. Of the 40 tenant files sampled by the auditors, 29 files did not have correct utility allowances calculated; 9 files had 50058’s that did not agree with the HAP payments being paid to the landlords and 22 files had rents that did not fall between 90% and 110% of the HUD FMR for the areas. Staff have been replaced and there are no original HCV staff left that were at RHA when the new CEO took over on March 1, 2023. Staff are consistently being trained every week for a minimum of 1 hour a week for 52 weeks out of the year. An HCV Director has been added to supervise the HCV Staff and audits of the files are being completed by the Director of Housing along with the CEO. These issues should be limited and not commonly found by Auditors during future audits.

View Audit 356918

Finding 561278 (2023-003)

Significant Deficiency 2023

Housing Authority of the City of Renton

WA

HUD Housing Programs Allowable Costs / Cost Principles Eligibility

Prior RHA administrative staff were not getting the PHA’s Single Audit completed nor submitted by the deadline. RHA was 3 years behind when the new CEO took over on March 31, 2023. FY2020, FY2021 and FY2022 were not completed and submitted. By the time that these three were caught up, completed...

Prior RHA administrative staff were not getting the PHA’s Single Audit completed nor submitted by the deadline. RHA was 3 years behind when the new CEO took over on March 31, 2023. FY2020, FY2021 and FY2022 were not completed and submitted. By the time that these three were caught up, completed and submitted, that pushed FY2023 Audit to be late. The audit for FY2023 should be completed by the end of April 2025 and then we will be on task to start FY2024 in May and completed by the deadline of September 30, 2025. Then, RHA will stay on task and get these completed within its deadline timeline.

View Audit 356918

Finding 561277 (2023-002)

Significant Deficiency 2023

Housing Authority of the City of Renton

WA

HUD Housing Programs Subrecipient Monitoring Special Tests & Provisions

Prior RHA staff that were handling the Inspection Scheduling were not abating the HAP when units failed and did not keep up or track the amount of time between failed inspections and re-inspections to ensure that it was completed timely. As of September 2024, we have a new Landlord Liaison, who is ...

Prior RHA staff that were handling the Inspection Scheduling were not abating the HAP when units failed and did not keep up or track the amount of time between failed inspections and re-inspections to ensure that it was completed timely. As of September 2024, we have a new Landlord Liaison, who is also a new Inspection Coordinator, that is tracking everything on a spreadsheet. Part of FY2024 was not monitored for Failed Inspections and Abatements but is now being tracked and monitored by the Inspection Coordinator and her supervisor, the Director of Facilities and Development along with the CEO. FY2025 should be completely clean of issues dealing with HQS Compliance.

View Audit 356918

Finding 561273 (2023-003)

Material Weakness 2023

Knott County Fiscal Court

KY

Questioned Costs Matching / Level of Effort / Earmarking Allowable Costs / Cost Principles § 200.306 § 200.318 § 200.329

Prepared by: Kevin Jacobs Date Prepared: 7-3-24 Person Responsible for Corrective Action Plan: Kevin Jacobs Jeff Dobson Anticipated Completion Date: 7-3-24 Official's Response: To be clear the documents had to be presented to FEMA to get reimbursement, this was done. The Fiscal Court will ende...

Prepared by: Kevin Jacobs Date Prepared: 7-3-24 Person Responsible for Corrective Action Plan: Kevin Jacobs Jeff Dobson Anticipated Completion Date: 7-3-24 Official's Response: To be clear the documents had to be presented to FEMA to get reimbursement, this was done. The Fiscal Court will endeavor to make sure the FEMA files are updated and complete after FEMA reimbursement.

View Audit 356900 Questioned Costs: $1

Finding 561267 (2023-001)

Significant Deficiency 2023

Housing Authority of Carbon County

UT

HUD Housing Programs Reporting

The Housing Authority will implement a standardized process for documenting rent reasonableness across all tenant files, including those from the Emery County merger, and will explore automated tools to streamline the determination and documentation process. Staff will also receive training to ensur...

The Housing Authority will implement a standardized process for documenting rent reasonableness across all tenant files, including those from the Emery County merger, and will explore automated tools to streamline the determination and documentation process. Staff will also receive training to ensure compliance with the requirements moving forward.

View Audit 356886

Finding 561211 (2023-003)

Significant Deficiency 2023

National Indian Youth Council, Inc.

NM

Eligibility

NIYC has developed new policies and procedures that clearly state that two signers are required for each check and who is authorized to sign checks. Furthermore, NIYC has had a transition of leadership. During the transition, it was communicated the requirement of having two signatures for each chec...

NIYC has developed new policies and procedures that clearly state that two signers are required for each check and who is authorized to sign checks. Furthermore, NIYC has had a transition of leadership. During the transition, it was communicated the requirement of having two signatures for each check as well as any additional corrective action plans.

View Audit 356835

Finding 561210 (2023-002)

None 2023

National Indian Youth Council, Inc.

NM

Reporting

NIYC has worked to get caught up with annual single audit submissions. Since developing the Accounting Manager position in 2022, NIYC has completed the single audit for 2021 and 2022. We are currently working with our auditor to start the 2023 audit in a timely manner so that it can be submitted on ...

NIYC has worked to get caught up with annual single audit submissions. Since developing the Accounting Manager position in 2022, NIYC has completed the single audit for 2021 and 2022. We are currently working with our auditor to start the 2023 audit in a timely manner so that it can be submitted on time. NIYC is committed to prioritizing our annual single audits to ensure that moving forward, they will be submitted on time.

View Audit 356835

Finding 561209 (2023-001)

Significant Deficiency 2023

National Indian Youth Council, Inc.

NM

Cash Management

NIYC has developed new policies and procedures around the requests for reimbursement from federal grantors. This will ensure that all requests for reimbursement are reviewed and approved before the request is submitted. It further requires sufficient supporting documentation for each request to be a...

NIYC has developed new policies and procedures around the requests for reimbursement from federal grantors. This will ensure that all requests for reimbursement are reviewed and approved before the request is submitted. It further requires sufficient supporting documentation for each request to be attached to aid in review and documentation.

View Audit 356835

Finding 561182 (2023-004)

Material Weakness 2023

The Association of State Wetland Managers, Inc. Dba National Association of Wetland Managers

ME

Subrecipient Monitoring

Statement of Condition: Internal control weakness over subrecipient monitoring. Ineffective control procedures over subrecipient monitoring. Criteria: National Association of Wetland Managers’ internal control policies and procedures and the Uniform Guidance. Cause: Oversight Corrective Action Plan:...

Statement of Condition: Internal control weakness over subrecipient monitoring. Ineffective control procedures over subrecipient monitoring. Criteria: National Association of Wetland Managers’ internal control policies and procedures and the Uniform Guidance. Cause: Oversight Corrective Action Plan: Contact person: Marla Stelk, Executive Director Corrective action to be taken: NAWM will finalize the sub recipient monitoring documents available that were drafted in 2021 in anticipation of having subawardees for the grants awarded in 2022. NAWM will implement these subrecipient policies and procedures immediately for current subawards and will continue to apply these policies and procedures to future subawards. Anticipated completion date: End of current fiscal year (December 31, 2025)

View Audit 356793

Finding 561181 (2023-003)

None 2023

The Association of State Wetland Managers, Inc. Dba National Association of Wetland Managers

ME

Subrecipient Monitoring § 200.332

Statement of Condition: Compliance over subrecipient monitoring. Entity did identify the award and applicable requirements, however entity did not evaluate each subrecipient’s risk of noncompliance nor did it monitor subrecipient activities as listed in the contracts “Subaward Performance Reporting”...

Statement of Condition: Compliance over subrecipient monitoring. Entity did identify the award and applicable requirements, however entity did not evaluate each subrecipient’s risk of noncompliance nor did it monitor subrecipient activities as listed in the contracts “Subaward Performance Reporting” and monitoring procedures per 2 CFR Sections 200.332 (b) and (d) through (f). Criteria: National Association of Wetland Managers’ internal control policies and procedures, and the Uniform Guidance 2 CFR Sections 200.332 (b) and (d)-(f). Cause: Management’s lack of understanding of criteria. Corrective Action Plan: Contact person: Marla Stelk, Executive Director Corrective action to be taken: NAWM will finalize and implement our subrecipient policies and procedures for current subawards, including documentation of how NAWM evaluated each subrecipient’s risk of noncompliance. NAWM will continue to monitor subrecipient activities through the grant period for each subaward as applicable. For future subawards, NAWM will evaluate and document each subrecipient’s risk of noncompliance and will monitor subrecipient activities as stated in our subrecipient policies and procedures. Anticipated completion date: End of current fiscal year (December 31, 2025)

View Audit 356793

Finding 561180 (2023-002)

Material Weakness 2023

The Association of State Wetland Managers, Inc. Dba National Association of Wetland Managers

ME

Allowable Costs / Cost Principles

Statement of Condition: Internal control weakness - documentation of approval over allowable costs could not be located for select expenses, and ineffective control procedures over posting of approved indirect cost rate allocation. Criteria: National Association of Wetland Managers’ internal control...

Statement of Condition: Internal control weakness - documentation of approval over allowable costs could not be located for select expenses, and ineffective control procedures over posting of approved indirect cost rate allocation. Criteria: National Association of Wetland Managers’ internal control policies and procedures, indirect cost negotiation agreement, and the Uniform Guidance. Cause: Procedures are in place requiring supervisory approval of documentation before costs are coded to grants, but procedures were not performed on all invoices. Also, ineffective control procedures over posting of indirect payroll cost allocation as indicated by compliance finding. Corrective Action Plan: Contact person: Marla Stelk, Executive Director Corrective action to be taken: NAWM does not believe that corrective action is required for this finding. NAWM has strong procedures in place requiring supervisory approval of documentation before costs are coded to grants. In some circumstances, invoices are emailed to the Executive Director, who approves them by giving instructions regarding payment over email. Email approvals are maintained as record of this internal control. In our digital world with the ability to work remotely, there are times when the Executive Director and Accounting Manager are not physically located in the same office space. However, this does not diminish the strength of our internal controls for review and approval of allowable costs. However, as recommended above, NAWM has hired a professional financial consultant to review our indirect cost accounting procedures, make recommendations to improve our processes, and assist in implementation of these recommendations. Anticipated completion date: End of current fiscal year (December 31, 2025)

View Audit 356793

Finding 561179 (2023-001)

None 2023

The Association of State Wetland Managers, Inc. Dba National Association of Wetland Managers

ME

Allowable Costs / Cost Principles

Statement of Condition: Compliance over allowable cost, including application of the indirect cost rate supplied by the United States Department of the Interior. Approved provisional rate of 26.3% not used. Instead, allocation based upon prior month’s payroll. Criteria: The Uniform Guidance, indirec...

Statement of Condition: Compliance over allowable cost, including application of the indirect cost rate supplied by the United States Department of the Interior. Approved provisional rate of 26.3% not used. Instead, allocation based upon prior month’s payroll. Criteria: The Uniform Guidance, indirect cost negotiation agreement, and National Association of Wetland Managers’ internal control policies and procedures. Cause: Management’s misunderstanding of accounting application of the provisional rate method. Corrective Action Plan: Contact person: Marla Stelk, Executive Director Corrective action to be taken: As noted above, NAWM provides the negotiated Indirect cost rates to the Funding Agency at the time when the project budget is developed. Subsequent billing of the indirect cost is based on the time spent on the project. Within six (6) months after year end, a final indirect cost rate proposal is submitted based on actual costs. Billings and charges to contracts and grants are adjusted if the final rate varies from the provisional rate. If the final rate is greater than the provisional rate and there are no funds available to cover the additional indirect costs, NAWM may not recover all indirect costs. Conversely, if the final rate is less than the provisional rate, NAWM is required to pay back the difference to the funding agency. However, as recommended above, NAWM has hired a professional financial consultant to review our indirect cost accounting procedures, make recommendations to improve our processes, and assist in implementation of these recommendations. Anticipated completion date: End of current fiscal year (December 31, 2025)

View Audit 356793

Finding 561173 (2023-001)

Significant Deficiency 2023

Native Village of Nunapitchuk

AK

Reporting Significant Deficiency § 200.512

Finding 2023-001 Late Reporting and Noncompliance with Reporting Requirements Name of Contact: Eli Wassillie, Tribal Administrator Corrective Action Plan: Management will engage a CPA firm with enough advanced timing to ensure that the single audit is completed and submitted with in the 9-month ti...

Finding 2023-001 Late Reporting and Noncompliance with Reporting Requirements Name of Contact: Eli Wassillie, Tribal Administrator Corrective Action Plan: Management will engage a CPA firm with enough advanced timing to ensure that the single audit is completed and submitted with in the 9-month time period. Proposed Completion Date: December 31, 2024

View Audit 356764

Finding 561171 (2023-001)

Significant Deficiency 2023

M. Carter Plaza

OR

Subrecipient Monitoring HUD Housing Programs Reporting § 200.512

Finding no.: 2023-001 Contact person(s) responsible: Kymberly Horner, Executive Director Corrective action planned: The late filing was due to significant turnover in the Fiscal Department beginning in 2021. Work was delayed as new staff required training on processes in conjunction with workin...

Finding no.: 2023-001 Contact person(s) responsible: Kymberly Horner, Executive Director Corrective action planned: The late filing was due to significant turnover in the Fiscal Department beginning in 2021. Work was delayed as new staff required training on processes in conjunction with working through a large backlog of work in the Department that was necessary to complete in order to prepare the Financial Statements for audit. In addition to adapting its processes in the Fiscal Department to ensure the continuance of proper separation of duties and adherence to policies and procedures during staff transitions, Management is developing procedures to hire, train, and retain Fiscal Staff to help stabilize the department to ensure the work can continue in the event of unexpected staff turnover. Management is aware of the deadline related to the submission of the data collection form and anticipates that these measures will have a positive impact on the timeliness of future submissions. Anticipated completion date: October 2023

View Audit 356761

Finding 561162 (2023-001)

Material Weakness 2023

Sbh Community Service Network, Inc.

NY

Reporting

Corrective Action Plan For the Year Ended December 31, 2023 Finding Reference Number: 2023‐001 Finding Late submission of reporting package and data collection form. Finding Type Noncompliance of Reporting Agency U.S. Department of Health and Human Services ALN 93.696 Certified Community Behavioral ...

Corrective Action Plan For the Year Ended December 31, 2023 Finding Reference Number: 2023‐001 Finding Late submission of reporting package and data collection form. Finding Type Noncompliance of Reporting Agency U.S. Department of Health and Human Services ALN 93.696 Certified Community Behavioral Health Clinic (CCBHC) Expansion Grants Recommendation SBH should enhance internal control procedures to ensure amounts expended for each federal program are being monitored and to ensure the timely preparation of the Schedule of Expenditures of Federal Awards, as required under the Uniform Guidance. Corrective Action Management agrees that the closing process needs to be improved to allow for timely closing of the general ledger and financial reporting in compliance with federal and other regulatory deadlines. The Finance Department will develop and implement a policy outlining the procedures for compiling the SEFA, including responsibilities, timelines, and required documentation. The Grants Manager will be assigned as the SEFA Coordinator to oversee the preparation and ensure timely completion. The Controller will review the SEFA for accuracy and completeness before submission. A checklist will be used to verify that all federal programs are accounted for and that the report complies with Uniform Guidance. Name of Responsible Person Jeff Gass, Chief Financial Officer Anticipated Completion Date June 30, 2025

View Audit 356746

Finding 561109 (2023-007)

Significant Deficiency 2023

Public Health Institute of Metropolitan Chicago

IL

Subrecipient Monitoring

Condition: PHIMC was not sufficiently monitoring subrecipients and properly documenting applicable monitoring. Corrective Action Taken or Planned: In conjunction with the hiring of a professional services firm for accounting and finance support, PHIMC will evaluate current subrecipient monitoring p...

Condition: PHIMC was not sufficiently monitoring subrecipients and properly documenting applicable monitoring. Corrective Action Taken or Planned: In conjunction with the hiring of a professional services firm for accounting and finance support, PHIMC will evaluate current subrecipient monitoring policies to ensure the policies are comprehensive and executed. Anticipated Date of Completion: December 31, 2025 Name of Contact Person: Karen Reitan, President and Chief Executive Officer Management Response: Management concurs with the finding.

View Audit 356735

Finding 561108 (2023-006)

Significant Deficiency 2023

Public Health Institute of Metropolitan Chicago

IL

Questioned Costs Cash Management

Condition: As a result of transition in the finance department and lack of formal filing procedures, we noted an instance in which the support for a portion of an authorized voucher could not be located. Corrective Action Taken or Planned: In conjunction with the hiring of a professional services f...

Condition: As a result of transition in the finance department and lack of formal filing procedures, we noted an instance in which the support for a portion of an authorized voucher could not be located. Corrective Action Taken or Planned: In conjunction with the hiring of a professional services firm for accounting and finance support, PHIMC will evaluate current record keeping system and ensure supporting information for submitted vouchers is maintained and accessible. Anticipated Date of Completion: December 31, 2025 Name of Contact Person: Karen Reitan, President and Chief Executive Officer Management Response: Management concurs with the finding.

View Audit 356735 Questioned Costs: $1

Finding 561098 (2023-005)

Significant Deficiency 2023

Public Health Institute of Metropolitan Chicago

IL

Internal Control / Segregation of Duties Allowable Costs / Cost Principles Reporting § 200.430

Condition: We identified an instance in which a timesheet was not signed off by applicable supervisor and there was no evidence of review. In addition, another instance was identified in which a timesheet was not complete and was missing hours worked. Corrective Action Taken or Planned: Management ...

Condition: We identified an instance in which a timesheet was not signed off by applicable supervisor and there was no evidence of review. In addition, another instance was identified in which a timesheet was not complete and was missing hours worked. Corrective Action Taken or Planned: Management plans to reiterate the applicable policy and ensure timesheets are prepared, reviewed and contain the appropriate approvals. Anticipated Date of Completion: December 31, 2025 Name of Contact Person: Karen Reitan, President and Chief Executive Officer Management Response: Management concurs with the finding.

View Audit 356735

Finding 561097 (2023-004)

Significant Deficiency 2023

Public Health Institute of Metropolitan Chicago

IL

Condition: We identified several instances in which personnel files were missing certain documentation, including pay rates, merit increases, hire dates, etc. Corrective Action Taken or Planned: Management plans to perform a review of all personnel files to ensure the applicable files are complete ...

Condition: We identified several instances in which personnel files were missing certain documentation, including pay rates, merit increases, hire dates, etc. Corrective Action Taken or Planned: Management plans to perform a review of all personnel files to ensure the applicable files are complete and contain current information. Anticipated Date of Completion: December 31, 2025 Name of Contact Person: Karen Reitan, President and Chief Executive Officer Management Response: Management concurs with the finding.

View Audit 356735

Finding 561096 (2023-002)

Significant Deficiency 2023

Public Health Institute of Metropolitan Chicago

IL

Reporting

Condition: PHIMC did not submit its 2023 Data Collection Form and single audit reporting package to the Federal Audit Clearinghouse within the earlier of nine months following its fiscal year end, or 30 days after receipt of the auditors' report. Corrective Action Taken or Planned: Management concu...

Condition: PHIMC did not submit its 2023 Data Collection Form and single audit reporting package to the Federal Audit Clearinghouse within the earlier of nine months following its fiscal year end, or 30 days after receipt of the auditors' report. Corrective Action Taken or Planned: Management concurs and plans to submit the December 31, 2024 data collection form and single audit reporting package on or before September 30, 2025 in conjunction with the hiring of a professional services firm which provides accounting and finance support. Anticipated Date of Completion: December 31, 2025 Name of Contact Person: Karen Reitan, President and Chief Executive Officer Management Response: Management concurs with the finding.

View Audit 356735

Finding 561089 (2023-004)

Significant Deficiency 2023

Aid for Aids of Nevada

NV

Eligibility § 200.303

2023-004 Internal Control Over Eligibility and Compliance Over Eligibility - U.S. Department of Housing and Urban Development, Housing Opportunities for Persons with AIDS, Assistance Listing Number 14.241, Passed Through the City of Las Vegas, Nevada. Criteria: As defined in 2 CFR 200.303, auditee...

2023-004 Internal Control Over Eligibility and Compliance Over Eligibility - U.S. Department of Housing and Urban Development, Housing Opportunities for Persons with AIDS, Assistance Listing Number 14.241, Passed Through the City of Las Vegas, Nevada. Criteria: As defined in 2 CFR 200.303, auditee is required to maintain a system of internal control over compliance designed to provide reasonable assurance that federal award transactions executed are in compliance with the terms and conditions of the federal award. For services to be provided under the Housing Opportunities for Persons with AIDS, individuals requesting services must meet criteria under the grant which includes providing identification and validating proof of HIV/AIDS diagnosis, income, rent or mortgage payment, and need for assistance. A full validation of these criteria is required to be performed for any individual receiving assistance. Condition: Of 21 files selected for individuals who received assistance under the grant, one selection included two copies of the same support for the client’s need for assistance that contained differing amounts for that client’s earnings during the same period which may be indictive of fraud in the application process. No documentation was included in the client file addressing the inconsistency and related risk of fraud for the earnings and the client was determined to be eligible for assistance when the existence of duplicative information that was not addressed or resolved would make it not possible to determine eligibility for this client. Cause: AFAN had designed controls such that each client file would be reviewed by the lead case manager for proper support of eligibility requirements. However, this internal control system did not detect the duplicative eligibility support that may have been indicative of fraud in the application process, nor did the internal control system identify the individual as being ineligible before providing assistance to the individual. Context: Management failed to consistently and effectively perform an internal control to address the risk of ineligible individuals receiving financial assistance. Effect: Failure to properly perform controls over the review of the client files could result in providing assistance to individuals who are not eligible. The allowance of individuals to receive or continue receiving services without ensuring they meet the eligibility criteria is a violation of the terms of the federal grant agreement. Repeat Finding: No Recommendation: We recommend management design and implement a system of internal controls whereby a review of client files to ensure eligibility is properly supported is performed before any grant funds are disbursed and that management ensures proper documentation of this review is maintained to support the performance of the control. Views of Responsible Officials and Planned Corrective Actions: Management intends to put in place additional training for case managers to identify eligibility of clients and ensure proper backup is submitted. Supervisors will ensure all backup is included in the case file before being submitted.

View Audit 356711

Finding 561088 (2023-003)

Material Weakness 2023

Aid for Aids of Nevada

NV

Allowable Costs / Cost Principles § 200.303

2023-003 Internal Controls System Over Allowable Costs. – U.S. Department of Housing and Urban Development, Housing Opportunities for Persons with AIDS, Assistance Listing Number 14.241, Passed Through the City of Las Vegas, Nevada. Criteria: As defined in 2 CFR 200.303, auditee is required to main...

2023-003 Internal Controls System Over Allowable Costs. – U.S. Department of Housing and Urban Development, Housing Opportunities for Persons with AIDS, Assistance Listing Number 14.241, Passed Through the City of Las Vegas, Nevada. Criteria: As defined in 2 CFR 200.303, auditee is required to maintain a system of internal control over compliance designed to provide reasonable assurance that federal award transactions executed are in compliance with the terms and conditions of the federal award. Funds utilized under the Housing Opportunities for Persons with AIDS program are required to be expended on costs consistent with those outlined in 2 CRF 200 Subpart E – Cost Principles, and within the core service categories outlined in the grant agreement. Condition: Of the fourteen request for reimbursement (RFR) forms prepared and submitted to the grantor in order to receive reimbursement for expenditures during the year, seven were not reviewed and signed by the Executive Director. AFAN has designed a control such that a review of each RFR is performed to ensure expenditures are for allowable costs and allowable activities allowed for under the grant. However, this control was not performed consistently. Cause: The internal control system over the assessment of allowable costs was not operating effectively. A review of requests for reimbursement was either not performed or documentation was not maintained to support the appropriateness of expenses allocated to the grant. Context: Management failed to consistently perform an internal control to address the risk of improper expenses being reimbursed by the Organization’s grant. Effect: Not performing a review over the documents and allocations supporting requests for reimbursement for the grant increases the risk that inappropriate costs could be submitted for reimbursement which could be a violation of the terms of the federal grant agreement. Repeat Finding: No Recommendation: We recommend management design and implement a system of internal controls whereby a review of costs and the related supporting schedules being submitted for reimbursement are reviewed on a consistent basis and management ensures proper documentation of this review is maintained to support the performance of the control. Views of Responsible Officials and Planned Corrective Actions: Management will implement a control whereby the Executive Director will review and sign all requests for reimbursement prepared by the Finance Manager for submission. The Executive Director will ensure all backup is included and that all direct costs are approved and allowable prior to submission. Payroll related reimbursements will be reviewed to ensure the individuals included and allocation amongst grants are appropriate and the allocations agree to the final payroll records.

View Audit 356711

Corrective Action Plans

Filters