Corrective Action Plans

Finding 1215385 (2023-003)

Material Weakness 2023

New Space Nexus

NM

Reporting

Response: Management concurs with the finding. Corrective Action Plan: NewSpace Nexus will ensure all required financial and programmatic reports are prepared and submitted on time in accordance with grant requirements. A centralized reporting calendar will track deadlines, and responsibilities for ...

Response: Management concurs with the finding. Corrective Action Plan: NewSpace Nexus will ensure all required financial and programmatic reports are prepared and submitted on time in accordance with grant requirements. A centralized reporting calendar will track deadlines, and responsibilities for preparation, review, and submission will be clearly assigned. Program reports will be prepared by the VP Programs Manager, reviewed by the Executive Director, and documentation of submission will be retained. Financial reports will be prepared by the Financial Analyst, reviewed by the Executive Director, and documentation of submission will be retained. Periodic checks will be performed to ensure compliance, and any issues will be addressed promptly. Designation of Employee Position Responsible for Meeting Deadline: Financial Analyst, by March 31st, 2024

View Audit 401939

Finding 1215384 (2023-002)

Material Weakness 2023

New Space Nexus

NM

Subrecipient Monitoring Allowable Costs / Cost Principles Internal Control / Segregation of Duties

Response: Management concurs with the finding. Corrective Action Plan: NewSpace Nexus will maintain written financial and grants management policies to support consistent operations and compliance with Uniform Guidance (2 CFR Part 200). These policies will cover key areas including allowable costs, ...

Response: Management concurs with the finding. Corrective Action Plan: NewSpace Nexus will maintain written financial and grants management policies to support consistent operations and compliance with Uniform Guidance (2 CFR Part 200). These policies will cover key areas including allowable costs, procurement, cash management, subrecipient monitoring, reporting, record retention, and internal controls. The Financial Analyst will be responsible for maintaining and updating these policies, with oversight from the Executive Director, and policies will be reviewed at least annually and updated as needed. Designation of Employee Position Responsible for Meeting Deadline: Financial Analyst, by March 31st, 2024

View Audit 401939

Finding 1215383 (2023-001)

Material Weakness 2023

New Space Nexus

NM

Eligibility Period of Performance Reporting

Response: Management concurs with the finding. Corrective Action Plan: NewSpace Nexus will comply with federal employment eligibility requirements by ensuring a Form I-9 is completed for every employee within three business days of their start date. Employees must provide acceptable documentation as...

Response: Management concurs with the finding. Corrective Action Plan: NewSpace Nexus will comply with federal employment eligibility requirements by ensuring a Form I-9 is completed for every employee within three business days of their start date. Employees must provide acceptable documentation as required, and completed forms will be securely maintained and retained for the required period. The Financial Analyst will periodically review personnel files to confirm compliance, and any missing or incomplete forms will be addressed promptly with documentation of corrective actions retained. Designation of Employee Position Responsible for Meeting Deadline: Financial Analyst by: January 31st, 2024

View Audit 401939

Finding 1215259 (2023-002)

Material Weakness 2023

The County of Lebanon, Pennsylvania

PA

Internal Control / Segregation of Duties

Finding: 2023-002 Agency: Lebanon County Commission on D&A Abuse Contact Person/Title: James Donmoyer, Administrator of Lebanon County Commission on D&A Abuse Finding Title/Corrective Action: Segregation of Duties over Reporting The Department was in need of additional accounting personnel and as of...

Finding: 2023-002 Agency: Lebanon County Commission on D&A Abuse Contact Person/Title: James Donmoyer, Administrator of Lebanon County Commission on D&A Abuse Finding Title/Corrective Action: Segregation of Duties over Reporting The Department was in need of additional accounting personnel and as of December 2023 a new employee was hired so adequate oversight will be corrected going forward. Anticipated Completion Date: December 2023

View Audit 401889

Finding 1215245 (2023-011)

Material Weakness 2023

The County of Lebanon, Pennsylvania

PA

Reporting Special Tests & Provisions

Finding: 2023-011 Agency: Children & Youth Contact Person/Title: Erin Moyer. Administrator of Children & Youth Services Finding Title/Corrective Action: Special Tests and Provisions (DHS Special Tests - FSP) The Agency has a Timeframes Policy which outlines when ISP’s (FSP’s) are to be completed in ...

Finding: 2023-011 Agency: Children & Youth Contact Person/Title: Erin Moyer. Administrator of Children & Youth Services Finding Title/Corrective Action: Special Tests and Provisions (DHS Special Tests - FSP) The Agency has a Timeframes Policy which outlines when ISP’s (FSP’s) are to be completed in accordance with state regulations. This late ISP (FSP) was an exception and is not a systemic Agency issue. Anticipated Completion Date: April 2026

View Audit 401889

Finding 1215243 (2023-010)

Material Weakness 2023

The County of Lebanon, Pennsylvania

PA

Subrecipient Monitoring

Finding: 2023-010 Agency: Children & Youth Contact Person/Title: Erin Moyer. Administrator of Children & Youth Services Finding Title/Corrective Action: Special Tests and Provisions (DHS Special Tests - Subrecipient CPSL Monitoring) We are now monitoring all clearances, licenses, background checks, ...

Finding: 2023-010 Agency: Children & Youth Contact Person/Title: Erin Moyer. Administrator of Children & Youth Services Finding Title/Corrective Action: Special Tests and Provisions (DHS Special Tests - Subrecipient CPSL Monitoring) We are now monitoring all clearances, licenses, background checks, and COC’s are checked regularly. Anticipated Completion Date: January 2025

View Audit 401889

Finding 1215241 (2023-009)

Material Weakness 2023

The County of Lebanon, Pennsylvania

PA

Reporting Special Tests & Provisions

Finding: 2023-009 Agency: Children & Youth Contact Person/Title: Erin Moyer. Administrator of Children & Youth Services Finding Title/Corrective Action: Special Tests and Provisions (DHS Special Tests - ISP) The Agency has a Timeframes Policy which outlines when ISP’s (FSP’s) are to be completed in ...

Finding: 2023-009 Agency: Children & Youth Contact Person/Title: Erin Moyer. Administrator of Children & Youth Services Finding Title/Corrective Action: Special Tests and Provisions (DHS Special Tests - ISP) The Agency has a Timeframes Policy which outlines when ISP’s (FSP’s) are to be completed in accordance with state regulations. This late ISP (FSP) was an exception and is not a systemic Agency issue. Anticipated Completion Date: April 2026

View Audit 401889

Finding 1215239 (2023-008)

Material Weakness 2023

The County of Lebanon, Pennsylvania

PA

Reporting Special Tests & Provisions

Finding: 2023-008 Agency: Children & Youth Contact Person/Title: Erin Moyer. Administrator of Children & Youth Services Finding Title/Corrective Action: Special Tests and Provisions (DHS Special Tests - Licensure/Approval) We are now monitoring all clearances, licenses, background checks, and COC’s ...

Finding: 2023-008 Agency: Children & Youth Contact Person/Title: Erin Moyer. Administrator of Children & Youth Services Finding Title/Corrective Action: Special Tests and Provisions (DHS Special Tests - Licensure/Approval) We are now monitoring all clearances, licenses, background checks, and COC’s are checked regularly. Anticipated Completion Date: January 2025

View Audit 401889

Finding 1215237 (2023-007)

Material Weakness 2023

The County of Lebanon, Pennsylvania

PA

Reporting

Finding: 2023-007 Agency: Children & Youth Contact Person/Title: Erin Moyer. Administrator of Children & Youth Services Finding Title/Corrective Action: Special Tests and Provisions (DHS Common Requirements - Drug-Free Workplace Act) Our fiscal department will begin putting language in our contracts...

Finding: 2023-007 Agency: Children & Youth Contact Person/Title: Erin Moyer. Administrator of Children & Youth Services Finding Title/Corrective Action: Special Tests and Provisions (DHS Common Requirements - Drug-Free Workplace Act) Our fiscal department will begin putting language in our contracts beginning in the FY 25-26. For those contracts already signed, an addendum will be sent to providers to add this language. Anticipated Completion Date: August 2025

View Audit 401889

Finding 1215235 (2023-006)

Material Weakness 2023

The County of Lebanon, Pennsylvania

PA

Subrecipient Monitoring Reporting

Finding: 2023-006 Agency: Children & Youth Contact Person/Title: Erin Moyer. Administrator of Children & Youth Services Finding Title/Corrective Action: Special Tests and Provisions (DHS Common Requirements – Subrecipient Monitoring) We are now monitoring in-home providers to make sure all time is a...

Finding: 2023-006 Agency: Children & Youth Contact Person/Title: Erin Moyer. Administrator of Children & Youth Services Finding Title/Corrective Action: Special Tests and Provisions (DHS Common Requirements – Subrecipient Monitoring) We are now monitoring in-home providers to make sure all time is accounted for as well as clearances, background checks and COC’s for both in-home and placement providers. Anticipated Completion Date: January 2025

View Audit 401889

Finding 1215233 (2023-005)

Material Weakness 2023

The County of Lebanon, Pennsylvania

PA

Cash Management Eligibility Reporting

Finding: 2023-005 Agency: Children & Youth Contact Person/Title: Erin Moyer. Administrator of Children & Youth Services Finding Title/Corrective Action: Eligibility – Missing Documentation Documentation for eligibility will be reviewed with staff and files will be reviewed by a supervisor. A supervi...

Finding: 2023-005 Agency: Children & Youth Contact Person/Title: Erin Moyer. Administrator of Children & Youth Services Finding Title/Corrective Action: Eligibility – Missing Documentation Documentation for eligibility will be reviewed with staff and files will be reviewed by a supervisor. A supervisor checklist will be used to make sure documents are reviewed. Our IV-E files are also reviewed twice a year by a state IV-E QA team. Anticipated Completion Date: January 2026

View Audit 401889

Finding 1215231 (2023-004)

Material Weakness 2023

The County of Lebanon, Pennsylvania

PA

Subrecipient Monitoring

Finding: 2023-004 Agency: County Commissioners Contact Person/Title: Jamie Wolgemuth, County Administrator Finding Title/Corrective Action: Special Tests and Provisions – Monitoring The County will enhance its countywide monitoring and oversight of its subrecipient funding agencies. Anticipated Comp...

Finding: 2023-004 Agency: County Commissioners Contact Person/Title: Jamie Wolgemuth, County Administrator Finding Title/Corrective Action: Special Tests and Provisions – Monitoring The County will enhance its countywide monitoring and oversight of its subrecipient funding agencies. Anticipated Completion Date: May 2026

View Audit 401889

Finding 1215229 (2023-003)

Material Weakness 2023

The County of Lebanon, Pennsylvania

PA

Reporting

Finding: 2023-003 Agency: Children & Youth Contact Person/Title: Erin Moyer. Administrator of Children & Youth Services Finding Title/Corrective Action: Reporting Consistent with our response to 2023-001, our ﬁscal department will begin implementing a monthly balancing of bank accounts with the gene...

Finding: 2023-003 Agency: Children & Youth Contact Person/Title: Erin Moyer. Administrator of Children & Youth Services Finding Title/Corrective Action: Reporting Consistent with our response to 2023-001, our ﬁscal department will begin implementing a monthly balancing of bank accounts with the general ledger and accounts receivable. We will also be doing quarterly balancing, which will help keep us on a more timely schedule. Anticipated Completion Date: August 2025

View Audit 401889

Finding 1215089 (2023-003)

Material Weakness 2023

CEDAR COUNTY, MISSOURI

MO

Subrecipient Monitoring Reporting § 200.510

The County has implemented a process of internal controls where expenditures are tracked in a manner that will coincide with reporting requirements for state expenditures for SEFA reporting.

View Audit 401792

Finding 1214959 (2023-004)

Material Weakness 2023

HOUSING AUTHORITY OF THE CITY OF LITTLE ROCK, ARKANSAS

CA

Allowable Costs / Cost Principles HUD Housing Programs Special Tests & Provisions

Finding 2023-004 Federal Agency: U.S. Department of Housing and Urban Development Federal Program Titles: Housing Voucher Cluster, Public and Indian Housing Program, Public Housing Capital Fund Program, and Coronavirus Relief Fund Assistance Listing Numbers: 14.871, 14.879, 14.850, 14.872, and 21.01...

Finding 2023-004 Federal Agency: U.S. Department of Housing and Urban Development Federal Program Titles: Housing Voucher Cluster, Public and Indian Housing Program, Public Housing Capital Fund Program, and Coronavirus Relief Fund Assistance Listing Numbers: 14.871, 14.879, 14.850, 14.872, and 21.019 Material Noncompliance Non Compliance Material to the Financial Statements: Yes Material Weakness in Internal Control over Compliance Criteria: The Authority must maintain complete and accurate accounts and other records for the program in accordance with HUD compliance requirements. Condition: The Authority did not maintain complete and accurate accounts and other records in accordance with HUD compliance requirements regarding Activities Allowed or Unallowed, Allowable Costs/Cost Principles, Eligibility, Reporting, and Special Tests and Provisions. Context: The Authority was unable to provide requested documentation at the time of audit to properly test the HUD compliance requirements. Known Questioned Costs: Unknown Cause: There is a material weakness in internal controls over compliance related to the maintenance of tenant files, wait lists, inspection reports and other records. The Authority has not properly considered, designed, implemented, maintained and monitored a system of internal controls that reasonably assures the program is in compliance. Effect: The Housing Voucher Cluster is in material non- compliance with the compliance requirements of the program. Recommendation: We recommend that the Authority implement a process whereby Authority documents are stored and safeguarded to ensure compliance with the Uniform Guidance and the compliance supplement. View of Responsible Officials and Corrective Actions: The Authority experienced significant turnover in employees during the year and as a result certain source documents were misplaced or destroyed. Management agrees with the Auditors' finding and has hired a new Executive Director who will implement the required safeguards and ensure that the Authority follows its internal control over compliance processes and procedures related to the Housing Voucher Cluster, Public and Indian Housing Program and Public Housing Capital fund Program to remedy the aforementioned deficiencies. Byran McClellan, CFO, will be responsible to implement this corrective action by December 31, 2023.

View Audit 401728

Finding 1214915 (2023-011)

Material Weakness 2023

County of Perry

PA

Reporting

Finding Reference Number: 2023-011 Description of Finding: The data collection form was not submitted by the September 30, 2024 due date. Response/Corrective Action: Due to fiscal staffing concerns and contracted auditor scheduling and subsequent change in auditors, preparation of all supporting doc...

Finding Reference Number: 2023-011 Description of Finding: The data collection form was not submitted by the September 30, 2024 due date. Response/Corrective Action: Due to fiscal staffing concerns and contracted auditor scheduling and subsequent change in auditors, preparation of all supporting documentation and draft financial statements were significantly delayed as was physical fieldwork, forcing the noncompliance. Upon completion of the 2023 audit, the County will be reliant on the scheduling availability of the County’s appointed auditors to coordinate and complete fieldwork timely to meet the filing for the 2025 audit. The 2024 data collection form was not submitted by the September 30, 2025 due date, and will be completed and filed as timely as the County’s appointed auditors can schedule, coordinate, and complete fieldwork.

View Audit 401680

Finding 1214914 (2023-010)

Material Weakness 2023

County of Perry

PA

Eligibility

Finding Reference Number: 2023-010 Description of Finding: Documentation of eligibility determination for an applicant could not be located. Response/Corrective Action: The County outsourced the administration of the Emergency Rental Assistance Program to several third parties over the duration of t...

Finding Reference Number: 2023-010 Description of Finding: Documentation of eligibility determination for an applicant could not be located. Response/Corrective Action: The County outsourced the administration of the Emergency Rental Assistance Program to several third parties over the duration of the Federally-funded program. Due to several administration changes, it is apparent that one of the files was either commingled with another record, misfiled, or misplaced. There is no evidence to suggest authorization and disbursement of funds occurred at the time of processing without a complete file supporting the activity was qualified and released was so approved. The County will be more diligent in the management and storage of required records for contact guideline requirements moving forward.

View Audit 401680

Finding 1214913 (2023-009)

Material Weakness 2023

County of Perry

PA

Period of Performance

Finding Reference Number: 2023-009 Description of Finding: Utility assistance was provided to an applicant that included costs incurred prior to the period of performance. Response/Corrective Action: The County outsourced the administration of the Emergency Rental Assistance Program to several third...

Finding Reference Number: 2023-009 Description of Finding: Utility assistance was provided to an applicant that included costs incurred prior to the period of performance. Response/Corrective Action: The County outsourced the administration of the Emergency Rental Assistance Program to several third parties over the duration of the Federally-funded program, and the third party inadvertently approved assistance payment that included amounts prior to the effective period of qualifying expenditures. For any future programs outsources for administration, the County will ensure the third parties clearly understand all program guidelines and requirements that must be maintained, and will assign County staff to oversee the programs to ensure material compliance with the contract guidelines.

View Audit 401680

Finding 1214888 (2023-006)

Material Weakness 2023

Escambia County Board of Education

AL

Procurement, Suspension & Debarment Allowable Costs / Cost Principles Equipment & Real Property Management § 200.313

Develop and implement a comprehensive capital asset and inventory management system. Ensure all federally funded equipment includes required documentation: Funding source (FAIN); Acquisition date and cost; Location, use, and condition. Conduct a full inventory of all federally funded equipment. Esta...

Develop and implement a comprehensive capital asset and inventory management system. Ensure all federally funded equipment includes required documentation: Funding source (FAIN); Acquisition date and cost; Location, use, and condition. Conduct a full inventory of all federally funded equipment. Establish procedures to ensure proper classificaiton of expenditures as capital outlay. Provide training on Unidorm Guidance (2 CFR 200) requirements to all relevant staff. Inventory and system implementation: Within 90 days. Full compliance: By end of fiscal year.

View Audit 401645

Finding 1214812 (2023-003)

Material Weakness 2023

Neighborhood Medical Center, Inc.

FL

Internal Control / Segregation of Duties Special Tests & Provisions Subrecipient Monitoring

FINDING 2023-003 - Sliding Fee Discount Program MATERIAL WEAKNESS; NONCOMPLIANCE Identification of the Federal Program: U.S. Department of Health and Human Services; direct awards ALN: 93.224/93 .527, Health Center Program Cluster Compliance Requirement: Special Tests & Provisions Criteria: Section ...

FINDING 2023-003 - Sliding Fee Discount Program MATERIAL WEAKNESS; NONCOMPLIANCE Identification of the Federal Program: U.S. Department of Health and Human Services; direct awards ALN: 93.224/93 .527, Health Center Program Cluster Compliance Requirement: Special Tests & Provisions Criteria: Section 330 of the Public Health Service Act and the HRSA Health Center Program Compliance Manual require health centers to maintain and operate a board-approved Sliding Fee Discount Program that adjusts patient charges based on income and family size using the current Federal Pove1ty Guidelines, applies uniformly to all patients and all in-scope services, and is supported by adequate documentation of eligibility determinations. In addition, Uniform Guidance requires nonfederal entities to establish and maintain effective internal controls over federal programs to provide reasonable assurance of compliance with federal statutes, regulations, and award terms. Condition: During testing of the Sliding Fee Discount Program within the Health Center Cluster, the Center could not provide documentation of the appropriate sliding fee discounts for certain patients in accordance with federal requirements. Context: The condition was identified through testing of the Health Center Cluster as pa1i of the single audit, which included testing patient fee assessments and sliding fee discount application as a special test required under the program. Controls were determined to be ineffective in 2 of 40 test items. Noncompliance was noted in 2 of 25 test items. Statistical sampling was not utilized. Cause: The condition was caused by inadequate internal controls over the implementation and monitoring of the Sliding Fee Discount Program, including limited supervisory review to ensure all sliding fee applications are maintained, reviewed, and properly applied. Effect or Potential Effect: The Center's failure to maintain documentation surrounding sliding fee discounts in accordance with federal requirements increases the risk of noncompliance with Health Center Program requirements and may result in patients being charged amounts not aligned with their ability to pay. The condition also increases the risk of adverse findings during HRSA oversight or other federal monitoring activities. Questioned Costs: No questioned costs were identified as a result of this finding. Repeat Finding: This is not a repeat finding. Recommendation: The Center should enhance internal controls over the Sliding Fee Discount Program by ensuring consistent documentation of income and family size, timely reassessment of eligibility in accordance with policy, consistent application of the board-approved sliding fee discount schedule to all applicable in-scope services, and periodic monitoring and supervisory review to ensure ongoingcompliance. Views of Responsible Officials: Neighborhood Medical Center has implemented quarterly SFDP internal audits and training for the intake staff to improve compliance oversight and documentation accuracy. A standardized audit tracking log documenting charts are reviewed, findings identified and corrective actions completed. An annual refresher for the staff has been implemented. A quick-reference eligibility checklist has also been developed for staff use. Person Responsible for Corrective Action: Ronica Mathis and Shenika Mathews Anticipated Completion Date for Corrective Action: This practice has already been implemented.

View Audit 401535

Finding 1214810 (2023-004)

Material Weakness 2023

Neighborhood Medical Center, Inc.

FL

Internal Control / Segregation of Duties Subrecipient Monitoring Reporting § 200.512

FINDING 2023-004- Late Submission of Single Audit and FAC Data Collection Form SIGNIFICANT DEFICIENCY; NONCOMPLIANCE Identification of the Federal Program: U.S. Department of Health and Human Services; direct awards ALN: 93 .011, 93.224/93.527, 93.526, and 93.918 Compliance Requirement: Reporting Cr...

FINDING 2023-004- Late Submission of Single Audit and FAC Data Collection Form SIGNIFICANT DEFICIENCY; NONCOMPLIANCE Identification of the Federal Program: U.S. Department of Health and Human Services; direct awards ALN: 93 .011, 93.224/93.527, 93.526, and 93.918 Compliance Requirement: Reporting Criteria: Uniform Guidance requires nonfederal entities to submit the reporting entity's Uniform Guidance reporting package, including the audit report and completed Federal Audit Clearinghouse (F AC) Data Collection Form, to the F AC within the earlier of 30 calendar days after receipt of the auditor's rep01ts or nine months after fiscal year-end (2 CFR 200. 512( a)). Timely submission of the reporting package is required to facilitate federal oversight of award compliance. Context: The condition was identified during Single Audit testing of reporting requirements applicable to the Health Center Cluster. Sampling was not utilized. Condition: The Center did not submit its required Uniform Guidance reporting package, including the reporting entity's audit report and the FAC Data Collection Form, within the required submission timeframe. Specifically, the Uniform Guidance audit and related FAC Data Collection Form were submitted after the earlier of (1) 3 0 calendar days after receipt of the auditor's reports or (2) nine months after the end of the reporting entity's fiscal year. Cause: Due to a delay in the compiling of records related to the audit, the Center was not in compliance with the reporting requirements. Effect or Potential Effect: Failure to submit the Uniform Guidance audit and F AC Data Collection Form timely increases the risk of noncompliance with Uniform Guidance reporting requirements and may result in delayed federal oversight, increased monitoring by the awarding agency, or the imposition of additional administrative conditions. Questioned Costs: No questioned costs were identified as a result of this finding. Repeat Finding: This is a repeat finding. Recommendation: The Center should strengthen internal controls over Uniform Guidance audit reporting by ·implementing procedures to track submission deadlines, assigning responsibility for timely filing of the audit report and FAC Data Collection Form, and establishing management review processes to ensure compliance with Uniform Guidance reporting requirements. View of Responsible Officials: Neighborhood's prior auditor indicated just before time to begin the audit for FY2022; they would not be able to complete the audit because of staff sho1tages. Two RFPs were issued, and it took the center a year and a half to secure a new auditor. The 2022 and 2023 audits have been completed. Engagement contract has been issued for the 2024 audit.

View Audit 401535

Finding 1214744 (2023-007)

Material Weakness 2023

Detroit Central City Cmh, Inc.

MI

Subrecipient Monitoring

Require Pre-Approval Completion of Rent Reasonableness Forms Effective immediately, rent reasonableness forms must be completed and approved before any lease is executed or renewed. No unit may be approved for occupancy until this documentation is on file. - Implement a Standardized Intake Documenta...

Require Pre-Approval Completion of Rent Reasonableness Forms Effective immediately, rent reasonableness forms must be completed and approved before any lease is executed or renewed. No unit may be approved for occupancy until this documentation is on file. - Implement a Standardized Intake Documentation A mandatory rent reasonableness form, fair market rent comparison, and supporting documentation must be maintained. Files cannot be finalized without all required items. - Centralize Documentation Storage All rent reasonableness forms will be stored in a centralized electronic repository organized by program and unit. This ensures timely retrieval for monitoring and audit purposes. - Staff Training Housing program staff will receive training on the updated procedures, including when and how rent reasonableness forms must be completed. Refresher training will be incorporated into annual compliance training. - Ongoing Monitoring and Quality Review The Director of Housing Programs will conduct quarterly reviews of tenant files to verify that rent reasonableness forms are completed prior to lease approval. Any deficiencies will be corrected immediately and reported to senior management. Management agrees with the condition noted. While all units ultimately met rent-reasonableness requirements, the Organization acknowledges that rent reasonableness forms were completed retroactively rather than at the time of lease approval, which is not consistent with our internal procedures. Completing these forms contemporaneously is essential to documenting that rents are comparable to similar units and below fair market rent prior to approving occupancy. The Organization has strengthened its intake and documentation processes to ensure rent reasonableness determinations are completed and approved before lease execution going forward.

View Audit 401484

Finding 1214739 (2023-006)

Material Weakness 2023

Detroit Central City Cmh, Inc.

MI

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

For 11 of 22 tenant files selected for testing, the Organization was unable to provide both the signed sublease agreement and the master lease agreement. One file lacked both documents. Although the Compliance Supplement does not require these documents for determining rent reasonableness under the ...

For 11 of 22 tenant files selected for testing, the Organization was unable to provide both the signed sublease agreement and the master lease agreement. One file lacked both documents. Although the Compliance Supplement does not require these documents for determining rent reasonableness under the Continuum of Care Program, the Organization’s internal policies require them. Management acknowledges the condition noted. While the Compliance Supplement does not require examination of lease agreements for this program and no instances of noncompliance were identified, we agree that maintaining complete tenant files—including signed sublease agreements and master lease agreements—is an important internal control to support documentation of rent reasonableness and compliance with our own policies. The missing documents resulted from inconsistent file maintenance during the audit period. The Organization has taken steps to strengthen its documentation and retention procedures to ensure all required lease documents are properly maintained and readily accessible going forward.

View Audit 401484

Finding 1214734 (2023-005)

Material Weakness 2023

Detroit Central City Cmh, Inc.

MI

Reporting

Corrective action is in process. In March 2026, the Organization contracted with a public accounting firm to function as the CFO and provide other accounting and finance support. These individuals are working to reestablish timely internal and external reporting. It is expected that 2026 year end re...

Corrective action is in process. In March 2026, the Organization contracted with a public accounting firm to function as the CFO and provide other accounting and finance support. These individuals are working to reestablish timely internal and external reporting. It is expected that 2026 year end reporting will be timely. Management agrees with the finding. The Single Audit report was not submitted to the Federal Audit Clearinghouse within the required nine-month timeframe due to delays in completing year-end financial reporting and audit fieldwork. We recognize the importance of timely submission to ensure compliance with Uniform Guidance requirements. The Organization has contracted with a public accounting firm to implement measures to strengthen its year-end close process, improve coordination with the external auditors, and establish internal deadlines that ensure all reporting components are completed well in advance of the federal due date.

View Audit 401484

Finding 1214651 (2023-002)

Material Weakness 2023

City of Boise City

OK

Management will implement a centralized filing system for all grant-related docuements and other documetns and assign a designated grant administrator the responibility to maintain these files that can be easily accessed. Additionally, management will review current documentation retention requremen...

Management will implement a centralized filing system for all grant-related docuements and other documetns and assign a designated grant administrator the responibility to maintain these files that can be easily accessed. Additionally, management will review current documentation retention requrements, approval workflows, and staff responsibility.

View Audit 401369

Corrective Action Plans

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