Corrective Action Plans

Corrective Action Plan December 31, 2023 Finding 2023-001 Noncompliance with Federal and State Reporting Requirements Planned Corrective Action The Town has evaluated the resources needed to produce timely financial information and ensure timely completion of records needed to complete annual audits...

Corrective Action Plan December 31, 2023 Finding 2023-001 Noncompliance with Federal and State Reporting Requirements Planned Corrective Action The Town has evaluated the resources needed to produce timely financial information and ensure timely completion of records needed to complete annual audits by their due dates. As a result of the evaluation the town has contracted a Finance Director and adequate staff. Contact Person Responsible for Corrective Action David Gonzalez Anticipated Completion Date June 30, 2026

View Audit 398703

Finding 1206592 (2023-002)

Material Weakness 2023

City of North Bend

WA

Procurement, Suspension & Debarment Subrecipient Monitoring § 200.214 § 200.317 § 200.327

The City of North Bend acknowledges that a contract utilizing SLFR funds, and awarded to a software vendor, did not include within the contract, a required self-attestation concerning Suspensions and Debarment. The self-attestation was used in lieu of a documented review of the SAM.gov portal for su...

The City of North Bend acknowledges that a contract utilizing SLFR funds, and awarded to a software vendor, did not include within the contract, a required self-attestation concerning Suspensions and Debarment. The self-attestation was used in lieu of a documented review of the SAM.gov portal for suspensions and debarment. This was an oversight of the contract review process. Other contracts issued during the same period included self-attestation language from 2 CFR 200.317 through 2 CFR 200.327. In 2024 and 2025, the Public Works Deputy Director, Contract Specialist, and Capital Staff Accountant ensure adherence to all applicable local, State, and federal procurement laws and regulations as provided in the Uniform Guidance at 2 CFR 200.214, 2 CFR Part 180, and Treasury’s implementing regulations at 31 CFR Part 19, prohibiting recipients from entering into contracts with suspended or debarred parties. The City of North Bend understands the significance of the finding and immediately took steps to review all subsequent contracts for compliance.

View Audit 398650

Finding 1206523 (2023-012)

Material Weakness 2023

MacOmb County

MI

Eligibility Significant Deficiency Internal Control / Segregation of Duties

The County acknowledges deficiencies related to the availability and completeness of supporting documentation for one federal program expenditures and reporting. In some instances, supporting documentation was not readily available at the time of review or required additional follow-up. The County i...

The County acknowledges deficiencies related to the availability and completeness of supporting documentation for one federal program expenditures and reporting. In some instances, supporting documentation was not readily available at the time of review or required additional follow-up. The County is strengthening documentation and record retention practices, improving coordination with program staff, and reinforcing expectations for maintaining complete and timely supporting records. These actions are intended to ensure documentation is available to support reporting and compliance requirements.

View Audit 398574

Finding 1206519 (2023-011)

Material Weakness 2023

MacOmb County

MI

Reporting Significant Deficiency Matching / Level of Effort / Earmarking § 200.303

The County acknowledges delays in the preparation and submission of certain required federal reports, including Statements of Expenditures. These delays were attributable to data availability, process inefficiencies during the ERP transition period, and the timing in which the Statement of Expenditu...

The County acknowledges delays in the preparation and submission of certain required federal reports, including Statements of Expenditures. These delays were attributable to data availability, process inefficiencies during the ERP transition period, and the timing in which the Statement of Expenditures template was provided by the grantor. In response, the County is improving internal workflows by enhancing coordination between program and finance staff, strengthening review procedures, and standardizing reporting processes. These actions are intended to improve both the accuracy and timeliness of reporting as processes continue to be refined within the system environment.

View Audit 398574

Finding 1206515 (2023-010)

Material Weakness 2023

MacOmb County

MI

Reporting Significant Deficiency Matching / Level of Effort / Earmarking § 200.303

The County acknowledges deficiencies related to the timeliness of federal reporting, including delays in the submission of required financial reports. Certain reports were not submitted within required timeframes due to challenges in obtaining timely and complete data, delays in completing reconcili...

The County acknowledges deficiencies related to the timeliness of federal reporting, including delays in the submission of required financial reports. Certain reports were not submitted within required timeframes due to challenges in obtaining timely and complete data, delays in completing reconciliations during and following the ERP transition, and the timing of required reporting templates provided by the grantor. The County is strengthening reporting procedures by improving coordination between departments, enhancing reconciliation processes, and reinforcing internal timelines for report preparation and review. As system functionality and staff familiarity continue to improve, reporting timeliness is expected to stabilize, with full resolution anticipated in the 2025 audit cycle.

View Audit 398574

Finding 1206511 (2023-009)

Material Weakness 2023

MacOmb County

MI

Reporting Significant Deficiency Matching / Level of Effort / Earmarking § 200.303

The County acknowledges the deficiency related to ensuring expenditures charged to federal programs comply with allowable cost principles under Uniform Guidance. The transition to the Workday ERP system impacted established review processes and data availability. The County is strengthening internal...

The County acknowledges the deficiency related to ensuring expenditures charged to federal programs comply with allowable cost principles under Uniform Guidance. The transition to the Workday ERP system impacted established review processes and data availability. The County is strengthening internal controls by enhancing review and approval procedures and improving staff training. As system processes continue to be refined, compliance and documentation are expected to improve.

View Audit 398574

Finding 1206508 (2023-008)

Material Weakness 2023

MacOmb County

MI

Material Weakness Reporting Matching / Level of Effort / Earmarking § 200.501 § 200.512 § 200.514

The County acknowledges the deficiency in internal controls over financial reporting. The transition to the Workday ERP system in 2023 resulted in delays and challenges in producing timely and accurate financial data. The County is strengthening reconciliation and review processes while continuing t...

The County acknowledges the deficiency in internal controls over financial reporting. The transition to the Workday ERP system in 2023 resulted in delays and challenges in producing timely and accurate financial data. The County is strengthening reconciliation and review processes while continuing to refine system functionality and staff proficiency. Although the 2024 audit represents the first full year in the new system, some delays have continued. The County expects processes to stabilize and reporting timelines to improve, with full resolution anticipated in the 2025 audit cycle.

View Audit 398574

Finding 1206434 (2023-001)

Material Weakness 2023

Empowered 4 Life Foundation

CA

Reporting

Views and Responsible Officials and Planned Corrective Actions Empowered 4 Life Foundation appreciates the auditor’s recommendations and is committed to enhancing its financial management capacity to ensure timely and accurate compliance with grantor requirements, Uniform Guidance standards, and all...

Views and Responsible Officials and Planned Corrective Actions Empowered 4 Life Foundation appreciates the auditor’s recommendations and is committed to enhancing its financial management capacity to ensure timely and accurate compliance with grantor requirements, Uniform Guidance standards, and all applicable regulatory obligations. 1. Evaluation of Financial Management Capacity Since the 2023 audit, Management and the Board have begun a comprehensive review of the Empowered 4 Life Foundation’s current accounting and reporting structure. This assessment includes evaluating staffing levels, workload distribution, and the adequacy of existing financial oversight practices. The goal is to ensure that the Empowered 4 Life Foundation has the resources and expertise necessary to maintain strong financial stewardship. 2. Strengthening the Accounting and Reporting Function The Empowered 4 Life Foundation is exploring several options to enhance its financial management capacity, including: • Assigning dedicated personnel responsible for finance and accounting activities • Engaging qualified outsourced accounting support to supplement internal capacity • Reallocating administrative resources to ensure timely preparation of financial records, grant reports, and audit documentation These options are currently under Board review, and the Empowered 4 Life Foundation will implement the most effective combination of internal and external support to meet compliance requirements. 3. Establishment of a Structured Financial Closing and Reporting Calendar Management is developing a formal monthly and annual financial closing calendar aligned with grantor deadlines, Uniform Guidance requirements, and audit timelines. This calendar will outline key tasks, responsible parties, and due dates to ensure timely completion of all financial reporting obligations. 4. Implementation of Audit Documentation Procedures The Empowered 4 Life Foundation will implement procedures to ensure that all audit documentation is compiled, reviewed, and organized in advance of audit fieldwork. This includes establishing internal deadlines for preparing schedules, reconciliations, supporting documents, and grant compliance records. 5. Ongoing Monitoring and Improvement The Empowered 4 Life Foundation is committed to continuous improvement of its financial management systems. The Board and management will monitor the effectiveness of the enhanced accounting structure and make adjustments as needed to ensure ongoing compliance, accuracy, and operational efficiency. The Empowered 4 Life Foundation values the auditor’s guidance and will continue to strengthen its financial oversight practices to support transparency, accountability, and long term organizational sustainability. Personnel Responsible for the Implementation: Chief Executive Officer, Tonnie Turner Expected Date of Implementation: October 1, 2026

View Audit 398456

Finding 1206367 (2023-007)

Material Weakness 2023

Town of Livermore Falls

ME

Procurement, Suspension & Debarment § 200.317 § 200.326

CORRECTIVE ACTION PLAN (Concerning Finding 2023-007) Contact Person Responsible for Corrective Action: Carrie Castonguay, Town Manager Corrective Action: The Treasurer, Town Manager and Select Board will take the following actions to address finding 2023-007 The current Town Manager was appointed by...

CORRECTIVE ACTION PLAN (Concerning Finding 2023-007) Contact Person Responsible for Corrective Action: Carrie Castonguay, Town Manager Corrective Action: The Treasurer, Town Manager and Select Board will take the following actions to address finding 2023-007 The current Town Manager was appointed by the Select Board on August 14, 2023, and had no knowledge of this material weakness. She is an experienced Manager and drafted, has had approved, and has implemented the new Procurement Policy that addresses this deficiency. Anticipated Completion Date: This was completed January 23, 2024

View Audit 398382

Finding 1206365 (2023-006)

Material Weakness 2023

Town of Livermore Falls

ME

Cash Management Significant Deficiency § 200.302 § 200.305

CORRECTIVE ACTION PLAN (Concerning Finding 2023-006) Contact Person Responsible for Corrective Action: Carrie Castonguay, Town Manager Corrective Action: The Town Manager and Select Board will take the following actions to address finding 2023-006 The current Town Manager was appointed by the Select...

CORRECTIVE ACTION PLAN (Concerning Finding 2023-006) Contact Person Responsible for Corrective Action: Carrie Castonguay, Town Manager Corrective Action: The Town Manager and Select Board will take the following actions to address finding 2023-006 The current Town Manager was appointed by the Select Board on August 14, 2023, and had no knowledge of this material weakness. She is an experienced Manager and has drafted, had approved and has implemented the new Internal Controls Policy that addresses this deficiency. This policy will includes sections on risk assessment and management, annual audit, chart of account, general ledger, reconciliation and verification, reserve funds and reserve accounts, investments, financial reporting, fraud, accounting software, online transactions and banking, documentation daily cash-ups, grants and projects, AR process, AP process, and payroll. Anticipated Completion Date: This was completed February 20, 2024.

View Audit 398382

Finding 1206363 (2023-005)

Material Weakness 2023

Town of Livermore Falls

ME

Allowable Costs / Cost Principles Internal Control / Segregation of Duties § 200.303

CORRECTIVE ACTION PLAN (Concerning Finding 2023-005) Contact Person Responsible for Corrective Action: Carrie Castonguay, Town Manager Corrective Action: The Treasurer, Town Manager and Select Board will take the following actions to address finding 2023-005 The current Town Manager was appointed by...

CORRECTIVE ACTION PLAN (Concerning Finding 2023-005) Contact Person Responsible for Corrective Action: Carrie Castonguay, Town Manager Corrective Action: The Treasurer, Town Manager and Select Board will take the following actions to address finding 2023-005 The current Town Manager was appointed by the Select Board on August 14, 2023, and had no knowledge of this material weakness. She is an experienced Manager and has drafted, had approved and us using the new Procurement Policy that addresses this deficiency. Additionally, Department Heads are required to turn in no later than Thursday by 9 am, invoices to be paid on that week’s warrant. The Treasurer has been given authority by the Town Manager to contact Department Heads and request that they come to the office weekly to turn in invoices. All invoices must have the appropriate expense code and be signed by the Department Head. Anticipated Completion Date: This was completed January 23, 2024.

View Audit 398382

Finding 1206361 (2023-004)

Material Weakness 2023

Town of Livermore Falls

ME

Procurement, Suspension & Debarment § 200.317 § 200.326

CORRECTIVE ACTION PLAN (Concerning Finding 2023-004) Contact Person Responsible for Corrective Action: Carrie Castonguay, Town Manager Corrective Action: The Treasurer, Town Manager and Select Board will take the following actions to address finding 2023-004 The current Town Manager was appointed by...

CORRECTIVE ACTION PLAN (Concerning Finding 2023-004) Contact Person Responsible for Corrective Action: Carrie Castonguay, Town Manager Corrective Action: The Treasurer, Town Manager and Select Board will take the following actions to address finding 2023-004 The current Town Manager was appointed by the Select Board on August 14, 2023, and had no knowledge of this material weakness. She is an experienced Manager and has drafted, had approved and is using the new Procurement Policy that addresses this deficiency. Anticipated Completion Date: This was completed January 23, 2024.

View Audit 398382

Finding 1206359 (2023-003)

Material Weakness 2023

Town of Livermore Falls

ME

Allowable Costs / Cost Principles § 200.303

CORRECTIVE ACTION PLAN (Concerning Finding 2023-003) Contact Person Responsible for Corrective Action: Carrie Castonguay, Town Manager Corrective Action: The Treasurer, Town Manager and Select Board will take the following actions to address finding 2023-003 The current Town Manager was appointed by...

CORRECTIVE ACTION PLAN (Concerning Finding 2023-003) Contact Person Responsible for Corrective Action: Carrie Castonguay, Town Manager Corrective Action: The Treasurer, Town Manager and Select Board will take the following actions to address finding 2023-003 The current Town Manager was appointed by the Select Board on August 14, 2023, and had no knowledge of this material weakness. She is an experienced Manager that has implemented training for the Treasurer and the Select Board. She has implemented a process of having the Treasurer complete a warrant each week. The Select Board meets bi-monthly and the Town Manager has the Select Board review and approve all warrants as a regular action item in their meeting. Additionally, Department Heads are required to turn in no later than Thursday by 9 am, invoices to be paid on that week’s warrant. The Treasurer has been given authority by the Town Manager to contact Department Heads and request that they come to the office weekly to turn in invoices. All invoices must have the appropriate expense code and be signed by the Department Head. Anticipated Completion Date: This corrective action has been implemented as of October 2023.

View Audit 398382

Finding 1206357 (2023-007)

Material Weakness 2023

HOUSING AUTHORITY OF THE CITY OF MILWAUKEE

WI

HUD Housing Programs

2023-007 Allowability - Interprograms Housing Voucher Cluster Material Weakness in Internal Controls Material Noncompliance Condition: Currently the Authority maintains a material interprogram receivable in Housing Choice Voucher program ("HCV"), which is due from the Central Office Cost Center ("CO...

2023-007 Allowability - Interprograms Housing Voucher Cluster Material Weakness in Internal Controls Material Noncompliance Condition: Currently the Authority maintains a material interprogram receivable in Housing Choice Voucher program ("HCV"), which is due from the Central Office Cost Center ("COCC"). As of December 31, 2023, the interprogram receivable for HCV is $2,500,000. Auditor Recommendations: The Authority should follow the Recovery Plan, once established, that will be implemented with HUD to pay back the interprogram receivable. The Authority should continue to budget and monitor COCC and other Authority expenses to eliminate the need for borrowing funds from restricted federal programs, and to have the a bility to reimburse HCV for the borrowed funds. Action Taken: HACM performed a 100% financial transaction review related to the Housing Choice Voucher program in compliance with requirements from the HUD Quality Assurance Division Corrective Action Plan. This fi nancial transaction review identified a total of $2,900,000 in amounts in the Housing Choice Voucher program funding that needed to be repaid to HUD and an additional $11,712 in ineligible expenses spent from HCV Administrative funding. H ACM's Acting Secretary-Executive Director has been working with the Quality Assurance Division to provide them documentation requested so that QAD can perform an analysis of HACM's ability to pay. The goal is to work with HUD to identify a longerterm repayment plan that is in line with the PHA's ability to pay. The goal is to finalize a repayment agreement in the next couple months. Name of Responsible Person: Ken Barbeau, Acting Secretary-Executive Director; C hief Financial Officer (when hired); Projected Completion Date: June 30, 2026

View Audit 398376

Finding 1206355 (2023-006)

Material Weakness 2023

HOUSING AUTHORITY OF THE CITY OF MILWAUKEE

WI

HUD Housing Programs Special Tests & Provisions Eligibility

Special Tests and Provisions - Waiting List Public and Indian Housing - ALN 14.850 Material Weakness in Internal Controls Material Noncompliance Condition: During our audit, we noted that the Authority was unable to provide complete and adequate waiting list documentation to support the selection of...

Special Tests and Provisions - Waiting List Public and Indian Housing - ALN 14.850 Material Weakness in Internal Controls Material Noncompliance Condition: During our audit, we noted that the Authority was unable to provide complete and adequate waiting list documentation to support the selection of tenants who were admitted i nto the Public Housing Program. Specifically, required records demonstrating waiting list position, selection order, and eligibility determinations were not available for review. As a result, we were unable to verify that applicants were admitted in accordance with HUD waiting list and tenant selection requirements. Auditor Recommendations: We recommend that management perform a reconciliation of the waiting list and reconstruct missing documentation where possible to support applicant selection and admission into the program. Management should update and formalize waiting list procedures in accordance with HUD regulations and the Authority's ACOP, i mplement supervisory review controls to verify completeness of waiting list documentation prior to tenant admission, and ensure records are retained in accordance with HUD and federal record-retention requirements. In addition, management should provide training to staff responsible for waiting list administration to promote consistent compliance with HUD requirements. Action Taken: HACM's Lease and Compliance department has done additional training with their staff since 2023 on Occupancy, Eligibility, Income and Rent Calculation. In addition, the Director has provided additional onboarding training to new employees and has provided YARDI Aspire training in how to perform certain tasks in YARDI software, i ncluding waitlist selection. We believe that the error rate will decrease in future years from 2023. In addition, between March 2026 and June 2026, the Lease and Compliance Director will work with all staff that maintain waitlists or perform waitlist selection to reiterate the proper documentations of how to maintain records that demonstrate waitlist positions, selection order and proper selection. Name of Responsible Person: Marquetta Treadway, Lease and Compliance Director Projected Completion Date: June 30, 2026

View Audit 398376

Finding 1206354 (2023-005)

Material Weakness 2023

HOUSING AUTHORITY OF THE CITY OF MILWAUKEE

WI

HUD Housing Programs Eligibility Material Weakness

Eligibility P ublic and Indian Housing - ALN 14.850 Material Weakness in Internal Controls Material Noncompliance Condition: Out of an approximate population of 2,150 tenants from the Public and Indian Housing program, we tested 43 tenants and the following deficiencies were noted: • 16 files were m...

Eligibility P ublic and Indian Housing - ALN 14.850 Material Weakness in Internal Controls Material Noncompliance Condition: Out of an approximate population of 2,150 tenants from the Public and Indian Housing program, we tested 43 tenants and the following deficiencies were noted: • 16 files were missing a flat rent option form, • 14 files were missing 214 forms, • 10 units did not have the required inspection performed, • 9 files had incorrect income or missing income support, • 8 files incorrectly contained prior year information in the current year recertification, • 6 files were missing valid 9886 forms, • 2 files were missing identification for adults in the household, and • 1 file was missing birth certificate or other documentation for minors receiving income credits. A uditor Recommendations: The Authority should reevaluate their established procedures and controls in place to ensure full compliance in regards to eligibility and the timeliness of recertifications. The Authority needs to correct the deficiencies noted in the tested files and consider the impact to the rest of the population of tenant files that were not selected as part of the auditor's sample. Action Taken: HACM's Lease and Compliance department has done additional training with their staff since 2023 on Occupancy, Eligibility, Income and Rent Calculation. In addition, the Director has provided additional onboarding training to new employees and has provided YARDI Aspire training in how to perform certain eligibility tasks in YARDI. We believe that the error rate will decrease in future years from 2023. In add ition,between March 2026 and June 2026, the Lease and Compliance Director will work with all staff that perform initial eligibility or recertifications to reiterate the major topics that HACM has had deficiencies and the proper way to treat those items. Name of Responsible Person: Marquetta Treadway, Lease and Compliance Director Projected Completion Date: June 30, 2026

View Audit 398376

Finding 1206353 (2023-004)

Material Weakness 2023

HOUSING AUTHORITY OF THE CITY OF MILWAUKEE

WI

Special Tests & Provisions Eligibility HUD Housing Programs

2023-004 Special Tests and Provisions - Waiting List Housing Voucher Cluster Material Weakness in Internal Controls Material Noncompliance Condition: During our audit, we noted that the Authority was unable to provide complete and adequate waiting list documentation to support the selection of tenan...

2023-004 Special Tests and Provisions - Waiting List Housing Voucher Cluster Material Weakness in Internal Controls Material Noncompliance Condition: During our audit, we noted that the Authority was unable to provide complete and adequate waiting list documentation to support the selection of tenants who were issued housing vouchers. Specifically, required records demonstrating waiting list position, selection order, and eligibility determinations were not available for review. In addition, 8 of the 40 new admissions tested lacked support for the auditor to complete testing in this area. A uditor Recommendations: We recommend that management perform a reconciliation of the waiting list and reconstruct missing documentation where possible to support applicant selection and voucher issuance. Management should update and formalize waiting list procedures in accordance with HUD regulations and the Authority's Administrative Plan, i mplement supervisory review controls to verify completeness of waiting list documentation prior to voucher issuance, and ensure records are retained in accordance with HUD and federal record-retention requirements. In addition, management should provide training to staff responsible for waiting list administration to promote consistent compliance with HUD requirements. Action Taken: On the same note and based on a HUD review of operations, HACM entered into a SEMAP Corrective Action Plan with HUD with the goal to improve the SEMAP performance indicator scores. Via a nationwide Request for Proposal, HACM hired the contractor, CVR Associates, Inc. (CVR) to manage and operate the entire Housing Choice Voucher program for HACM, effective January 2, 2025. This contract is currently overseen by the Acting Secretary- Executive Director and will be overseen by the Chief Operations Officer once a new one is hired. CVR was selected as the contractor in part due to their extensive experience in managing similar voucher programs nationwide and on their tools/software that they have developed to manage items, such as quality control testing in the areas such as the items noted above. This included wait list oversight and wait list selection. CVR provided additional training to staff, prepared new standard operating procedures i ncluding those over waiting lists, and perform quality control testing over the course of the entire year. Many of the SEMAP indicators have improved, but some have additional improvement still needed based on the 2025 SEMAP results. When there a re issues, the CVR Quality Control team follows up with the staff person to correct the issue, and to provide guidance or additional training with the goal to reduce the error rate in the future. We believe that HACM will be back to being a standard performer or higher in 2026. In addition, the self-reported 2025 SEMAP testing was showing good scores in the area of Waiting List. Name of Responsible Person: Ken Barbeau, Acting Secretary-Executive Director; Chief Operations Officer (once hired); Projected Completion Date: December 31, 2026

View Audit 398376

Finding 1206351 (2023-003)

Material Weakness 2023

HOUSING AUTHORITY OF THE CITY OF MILWAUKEE

WI

HUD Housing Programs Internal Control / Segregation of Duties Special Tests & Provisions

Special Tests and Provisions - SEMAP Housing Voucher Cluster Material Weakness in Internal Controls Material Noncompliance Condition: The Authority was under Troubled Status with HUD for its Housing Choice Voucher program during the 2023 fiscal year. There were multiple fi ndings from HUD with a Cor...

Special Tests and Provisions - SEMAP Housing Voucher Cluster Material Weakness in Internal Controls Material Noncompliance Condition: The Authority was under Troubled Status with HUD for its Housing Choice Voucher program during the 2023 fiscal year. There were multiple fi ndings from HUD with a Corrective Action Plan implemented covering areas typically monitored through SEMAP self-assessment process. A uditor Recommendations: The Authority should evaluate and update its internal control policies and procedures related to HCV compliance requirements. The Authority should continue to work on its Corrective Action Plan with HUD to move out of Troubled Status. Action Taken: On the same note and based on a HUD review of operations, HACM entered into a SEMAP Corrective Action Plan with HUD with the goal to improve the SEMAP performance indicator scores. Via a nationwide Request for Proposal, HACM hired the contractor, CVR Associates, Inc. (CVR) to manage and operate the entire Housing Choice Voucher program for HACM, effective January 2, 2025. This contract is currently overseen by the Acting Secretary- Executive Director and will be overseen by the Chief Operations Officer once a new one is hired. CVR was selected as the contractor in part due to their extensive experience in m anaging similar voucher programs nationwide and on their tools/software that they have developed to manage items, such as quality control testing in the areas such as the items n oted above. CVR provided additional training to staff, prepared new standard operating procedures, a nd perform quality control testing over the course of the entire year. Many of the SEMAP indicators have improved, but some have additional improvement still needed based on the 2025 SEMAP results. When there are issues, the CVR Quality Control team follows up with the staff person to correct the issue, and to provide guidance or additional training with the goal to reduce the error rate in the future. We believe that HACM will be back to being a standard performer or higher in 2026. Name of Responsible Person: Ken Barbeau, Acting Secretary-Executive Director; Chief Operations Officer (once hired); Projected Completion Date: December 31, 2026

View Audit 398376

Finding 1206349 (2023-002)

Material Weakness 2023

HOUSING AUTHORITY OF THE CITY OF MILWAUKEE

WI

HUD Housing Programs

Eligibility Housing Voucher Cluster Material Weakness in Internal Controls Material Noncompliance Condition: Out of an approximate population of 5,800 Housing Voucher Cluster tenants we tested 41 tenants and the following deficiencies were noted: • 10 files were missing 214 forms, • 9 files had inco...

Eligibility Housing Voucher Cluster Material Weakness in Internal Controls Material Noncompliance Condition: Out of an approximate population of 5,800 Housing Voucher Cluster tenants we tested 41 tenants and the following deficiencies were noted: • 10 files were missing 214 forms, • 9 files had incorrect income or missing income support, • 9 files were missing identification for adults in the household, • 8 files were missing birth certificates or other support for minors receiving income credits, • 6 units did not have the required inspections performed, • 3 files had late recertifications, • 3 files were missing valid 9886 forms, • 1 file was missing support of rent reasonableness that was required to be performed d uring the year for that unit, • 1 file was missing required asset support, and • I file contained an incorrect payment standard. A uditor Recommendations: The Authority should reevaluate their established procedures and controls in place to ensure full compliance in regards to eligibility and the timeliness of recertifications. The Authority needs to correct the deficiencies noted in the tested files and consider the impact to the rest of the population of tenant files that were not selected as part of the auditor's sample. Action Taken: Via a nationwide Request for Proposal, HACM hired the contractor, CVR Associates, Inc. (CVR) to manage and operate the entire Housing Choice Voucher program for HACM, effective January 2, 2025. This contract is currently overseen by the Acting Secretary-Executive Director and will be overseen by the Chief Operations Officer once a new one is hired. CVR was selected as the contractor in part due to their extensive experience in managing similar voucher programs nationwide and on their tools/software that they have developed to manage items, such as quality control testing in the areas such as the items noted above. CVR provided additional training to staff, prepared new standard operating procedures, a nd perform quality control testing over the course of the entire year. Many of the SEMAP indicators have improved, but some have additional improvement still needed based on the 2025 SEMAP results. When there are issues, the CVR Quality Control team follows up with the staff person to correct the issue, and to provide guidance or additional training with the goal to reduce the error rate in the future. We believe that HACM will be back to being a standard performer or higher in 2026 in general for SEMAP Name of Responsible Person: Ken Barbeau, Acting Secretary-Executive Director; Chief Operations Officer (once hired); Projected Completion Date: December 31, 2026

View Audit 398376

Finding 1206280 (2023-002)

Material Weakness 2023

Catholic Charities of the Archdiocese of Oklahoma City, Inc.

OK

Procurement, Suspension & Debarment § 200.214 § 200.317 § 200.320

The following is Management’s Response to the Findings Required to be Reported by the Uniform Guidance. This document was prepared by management of the Catholic Charities of the Archdiocese of Oklahoma City (“CCAOKC”). 2023-002 Assistance Listing Number 93.576, Refugee and Entrant Assistance Discret...

The following is Management’s Response to the Findings Required to be Reported by the Uniform Guidance. This document was prepared by management of the Catholic Charities of the Archdiocese of Oklahoma City (“CCAOKC”). 2023-002 Assistance Listing Number 93.576, Refugee and Entrant Assistance Discretionary Grants, U.S. Department of Health and Human Services, FAIN 90RP0121, Award Year 2023, Passed Through by the United States Conference of Catholic Bishops Criteria or Specific Requirement – Procurement, Suspension, and Debarment – 2 CFR § 200.317–.327; 2 CFR § 200.214 Finding Summary CCAOKC’s procurement documentation procedures were not adequate to meet the requirements of 2 CFR § 200.317–.327; 2 CFR § 200.214 - Procurement, Suspension, and Debarment. Explanation of Agreement/Disagreement: Management concurs with the findings and has updated CCAOKC’s procurement policy. Officials Responsible for Ensuring Corrective Action: David Ashton, Sr Director of Administration; E-mail – dashton@ccaokc.org Alan Lipps, Chief Financial Officer; E-mail – alipps@ccaokc.org Planned Completion for Corrective Action: Corrective action completed in FY 2026 Action in response to finding: Purchasing staff are trained in federal procurement requirements and were provided with a copy of the new policy.

View Audit 398312

Finding 1206277 (2023-006)

Material Weakness 2023

Aneta Homes Inc.

ND

Internal Control / Segregation of Duties Material Weakness Reporting § 200.512

Contact Person Terry Hanson Corrective Action Plan The Program will implement procedures to ensure timely reporting for future report submissions. Planned Completion Date for CAP July 31, 2026

View Audit 398305

Finding 1206275 (2023-005)

Material Weakness 2023

Aneta Homes Inc.

ND

Material Weakness Reporting Matching / Level of Effort / Earmarking

Contact Person Terry Hanson Corrective Action Plan The Program will implement procedures to ensure timely reporting for future report submissions. Planned Completion Date for CAP July 30, 2026

View Audit 398305

Finding 1206273 (2023-004)

Material Weakness 2023

Aneta Homes Inc.

ND

Material Weakness

Contact Person Terry Hanson Corrective Action Plan The Program is aware of required monthly deposits to a reserve for replacement account in accordance with their regulatory agreement. Management will allow for cash flows in to account as allowable. Planned Completion Date for CAP Ongoing

View Audit 398305

Corrective Action Plans

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