HOUSING AUTHORITY OF CITY OF LANDER, WYOMINGNon-Profit

CORRECTIVE ACTION PLAN (UNAUDITED) (CONTINUED) FINDINGS - MAJOR FEDERAL AWARD PROGRAMS U.S. DEPARTMENT OF AGRICULTURE RURAL RENTAL HOUSING LOANS (Assistance Listing #10.415) Material Weakness Internal Control over Compliance and Noncompliance Preparation of the Financial Statements, Related Notes, and Schedule of Expenditures of Federal Awards 2021-002 See finding 2021-001 for condition, criteria, auditor?s recommendation, and management?s response.

2020-003

Evergreen Management Services, Inc. 430 Oriole Drive Spearfish, SD 57783 Phone 605-642-0619 Fax 605-642-0620 This institution is an equal opportunity provider and employer. CORRECTIVE ACTION PLAN (UNAUDITED) Housing Authority of the City of Lander, Wyoming respectfully submits the following Corrective Action Plan for the year ended June 30, 2020: Name and address of independent public accounting firm: Casey Peterson, Ltd. 909 Saint Joseph Street, Ste 101 Rapid City, SD 57701 The findings from the June 30, 2020 Schedule of Findings and Questioned Costs are discussed below. The findings are numbered consistently with the numbers assigned in that schedule. Evergreen Management Services, Inc., Managing Agent, is responsible for the findings disclosed within this document. If there are any questions regarding this Corrective Action Plan, please contact Margaret Richards, Director of Finance, at (605) 642-0619. FINDINGS - FINANCIAL STATEMENT AUDIT Material Weakness Internal Control over Financial Reporting Preparation of the Financial Statements, Related Notes, and Schedule of Expenditures of Federal Awards 2020-001 Condition: The Authority requests its auditor to draft the year-end financial statements, accompanying notes to the financial statements, and schedule of expenditures of federal awards. Criteria: Establishing internal controls over the preparation of the financial statements and drafting the financial statements are the responsibility of management. The Authority should have an internal control system in place related to oversight and review of the preparation of the financial statements. In addition, the Uniform Guidance requires the auditee to prepare appropriate financial statements in accordance with section 200.510. Auditor?s Recommendation: We recommend the Authority develop a system of internal controls to ensure proper reporting of the financial statements, notes to the financial statements, and Schedule of Expenditures of Federal Awards. The Authority should continually work to expand on the information provided to the auditor in drafting the financial statements and perform a thorough review of the drafted financial statements which should include reconciling information to the underlying documentation provided by management and other supporting schedules. If the Authority does not have the resources or expertise to prepare the financial statements, we recommend that the Authority obtain a financial reporting expert on the Board to help mitigate or eliminate this internal control weakness. Management?s Response: Management agrees with the auditor?s recommendation. We closely review the financial statements drafted by the auditor and reconcile them to our supporting documentation and other information used in preparing the financial statements and note disclosures. In the future, we will provide supporting schedules and completed template disclosures for use in drafting the financial statements. Material Weakness Internal Control over Financial Reporting Material Adjustments Proposed 2020-002 Condition: The Authority lacks an appropriate system of internal controls to ensure accounts are reconciled to underlying documentation and transactions are recorded in accordance with generally accepted accounting principles. Criteria: Reconciliations of all accounts should be performed and appropriate entries should be made by the accountant and reviewed by a member of management capable of identifying errors. Performing an adequate closing process results in accurate financial reporting in accordance with generally accepted accounting principles. Auditor?s Recommendation: We recommend management continue reconciling the accrued and deferred interest to the Rural Development statements. Management should also reconcile equity to the prior year audited financial statements and reconcile the fixed assets and related depreciation to the depreciation schedule and investigate any differences. Management?s Response: Management will reconcile accrued and deferred interest to the loan amortization schedules and to Rural Development?s statements. Management will also reconcile equity to the prior year?s audited financial statements and reconcile fixed assets to the depreciation schedule. FINDINGS - MAJOR FEDERAL AWARD PROGRAMS U.S. DEPARTMENT OF AGRICULTURE RURAL RENTAL HOUSING LOANS CFDA #10.415 Material Weakness Internal Control over Compliance and Noncompliance Preparation of the Financial Statements, Related Notes, and Schedule of Expenditures of Federal Awards 2020-003 See finding 2020-001 for condition, criteria, auditor?s recommendation, and management?s response.

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