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Finding 1205530 (2025-003)
Material Weakness 2025
Management concurs in part and disagrees in part with this finding. Management has always understood that alcohol purchases may not be charged to a Federal program and are unallowable under Uniform Guidance, and we are committed to ensuring full compliance with federal cost principles. Upon identifi...
Management concurs in part and disagrees in part with this finding. Management has always understood that alcohol purchases may not be charged to a Federal program and are unallowable under Uniform Guidance, and we are committed to ensuring full compliance with federal cost principles. Upon identification of this exception, management initiated corrective measures to reinforce internal controls surrounding expense review and documentation. The accounting staff member did not have the itemized receipt at the time the expense was initially allocated. Had the receipt been available, the unallowable cost would have been identified, and the expense would not have been allocated to program costs. Once the receipt was reviewed, the alcohol purchase was identified as unallowable under Federal programs and allocated correctly to administration costs. To prevent similar issues moving forward, accounting staff have been re-trained on expense documentation and receipt-tracking requirements, with emphasis on ensuring that itemized receipts are obtained and reviewed prior to allocation, reimbursement, or payment. Staff have also been reminded of the importance of validating expenditures against Uniform Guidance allowability requirements as part of their routine review procedures. Management will continue to monitor expense activity to ensure the effectiveness of these reinforced controls. The anticipated completion date for this corrective action is 11/1/2025.
FINDING 2025-005 Finding Subject: Contact Person Responsible for Corrective Action: Tracey Haas, Business Manager Contact Phone Number and Email Address: 219-873-2000 x 8346 thaas@mcas.k12.in.us Views of Responsible Officials: We concur with the finding. Description of Corrective Action Plan: We wil...
FINDING 2025-005 Finding Subject: Contact Person Responsible for Corrective Action: Tracey Haas, Business Manager Contact Phone Number and Email Address: 219-873-2000 x 8346 thaas@mcas.k12.in.us Views of Responsible Officials: We concur with the finding. Description of Corrective Action Plan: We will implement a system of internal controls to ensure allowable costs are documented and that receive board approval for all pay rates moving forward. However, we disagree with the finding on the allowable costs pertaining to the Financial Consulting Claims. We wrote them into the grant, and the grant was approved. There was also no Business Manager or Chief Financial Officer in place during the pandemic, resulting in the need for the consulting firm. Anticipated Completion Date: We anticipate that this correction will be in place by July 2026.
FINDING 2025-003 Finding Subject: Contact Person Responsible for Corrective Action: Tracey Haas, Business Manager Contact Phone Number and Email Address: 219-873-2000 x 8346 thaas@mcas.k12.in.us Views of Responsible Officials: We concur with the finding. Description of Corrective Action Plan: We wil...
FINDING 2025-003 Finding Subject: Contact Person Responsible for Corrective Action: Tracey Haas, Business Manager Contact Phone Number and Email Address: 219-873-2000 x 8346 thaas@mcas.k12.in.us Views of Responsible Officials: We concur with the finding. Description of Corrective Action Plan: We will implement a system of internal controls to ensure that the Form 9 and all underlying expenditures are properly documented. Anticipated Completion Date: We anticipate that this correction will be in place by July 2027
FINDING 2025-002 Finding Subject: Contact Person Responsible for Corrective Action: Tracey Haas, Business Manager Contact Phone Number and Email Address: 219-873-2000 x 8346 thaas@mcas.k12.in.us Views of Responsible Officials: We concur with the finding. Description of Corrective Action Plan: We wil...
FINDING 2025-002 Finding Subject: Contact Person Responsible for Corrective Action: Tracey Haas, Business Manager Contact Phone Number and Email Address: 219-873-2000 x 8346 thaas@mcas.k12.in.us Views of Responsible Officials: We concur with the finding. Description of Corrective Action Plan: We will implement a system of internal controls to ensure that the Form 9 and all underlying expenditures are properly documented. Anticipated Completion Date: We anticipate that this correction will be in place by July 2027
SWN will develop additional review procedures over contracts to ensure proper adjustments are proposed to allocate expenses between proper periods. Procedure for approval of the Finance Committee by May 21, 2026. This procedure may include implementation of official listing of SWN's written contract...
SWN will develop additional review procedures over contracts to ensure proper adjustments are proposed to allocate expenses between proper periods. Procedure for approval of the Finance Committee by May 21, 2026. This procedure may include implementation of official listing of SWN's written contracts and vendor contracts. Additionally, the Organization plans to work with vendors to align contracts with the fiscal reporting period.
Corrective Actions 1. Immediately cease noncompliant payment practices • Stop all direct payments or reimbursements to private schools • Communicate the change to all stakeholders 2. Establish compliant fiscal procedures • Ensure the district (LEA) retains control of Title I funds at all times • Pay...
Corrective Actions 1. Immediately cease noncompliant payment practices • Stop all direct payments or reimbursements to private schools • Communicate the change to all stakeholders 2. Establish compliant fiscal procedures • Ensure the district (LEA) retains control of Title I funds at all times • Payments must be made: o To third-party vendors, or o For district-managed services (staff, materials, contracts) • Update written fiscal procedures to explicitly prohibit: o Reimbursement-based arrangements with private schools o Direct cash transfers to private schools • Require pre-approval for all Title I expenditures related to equitable services 3. Implement a vendor-based service model • Contract with approved vendors to provide services to private school students 4. Strengthen review and approval processes • Require multi-level approval (program+ finance) before payments • Cross-check expenditures against: o Approved equitable services plan o Student eligibility and services provided 7. Provide targeted fiscal training • Train finance and program staff on: o Control of funds requirements o Allowable vs. unallowable costs under Title I
We have revised our process and operating procedure to apply indirect cost methods consistently across all federal grants. We have already corrected the error in FY 2026.
We have revised our process and operating procedure to apply indirect cost methods consistently across all federal grants. We have already corrected the error in FY 2026.
Corrective Action Plan: The identified conditions related to timesheets for hourly employees. To mitigate the risk of missing approval documentation for payroll charged to Federal R&D awards, the College is formalizing procedures requiring PI or supervisor review of applicable timesheets, configurin...
Corrective Action Plan: The identified conditions related to timesheets for hourly employees. To mitigate the risk of missing approval documentation for payroll charged to Federal R&D awards, the College is formalizing procedures requiring PI or supervisor review of applicable timesheets, configuring the approval workflow in Workday to require and retain evidence of approval, and implementing periodic monitoring to identify and correct missing approvals. Timeline for Implementation of Corrective Action Plan: These corrective actions are being implemented before the end of fiscal year 2026.
Finding 2025-001 Condition: Semi-annual time and effort certifications were not maintained for grant employees whose salaries and wages were not supported by detailed time records. Corrective Action Planned: Controls will be implemented to ensure all time and effort certifications are completed and ...
Finding 2025-001 Condition: Semi-annual time and effort certifications were not maintained for grant employees whose salaries and wages were not supported by detailed time records. Corrective Action Planned: Controls will be implemented to ensure all time and effort certifications are completed and maintained by the appropriate grant administrators for all grant employees. Anticipated Completion Date: June 30, 2026 Contact: Larry Azer, School Business Manager
Grant salaries and purchase orders will be reviewed for proper accounting. Monthly review with the grant coordinator and the business office will occur to verify appropriate charges.
Grant salaries and purchase orders will be reviewed for proper accounting. Monthly review with the grant coordinator and the business office will occur to verify appropriate charges.
C. Cash Management; L. Reporting Evidence of Review and Approval of the Reported Expenditures Assistance Listing Assistance Listing 93.078 – Strengthening Emergency Care Delivery in the United States Healthcare System through Health Information and Promotion Assistance Listing 16.753 – Congressional...
C. Cash Management; L. Reporting Evidence of Review and Approval of the Reported Expenditures Assistance Listing Assistance Listing 93.078 – Strengthening Emergency Care Delivery in the United States Healthcare System through Health Information and Promotion Assistance Listing 16.753 – Congressionally Recommended Awards Federal Agency: Department of Health and Human Services Department of Justice Recommendation: Management should reassess the design of its controls to ensure documentation is retained that evidences the review and approval of expenditures submitted to the DOJ and DHHS for reimbursement. Explanation of disagreement with audit finding: There is no disagreement with the finding and recommendation. Action planned/taken in response to finding: The Corporation established a centralized UMMS Office for Research and Sponsored Programs Administration (ORSPA) department in December 2025. ORSPA and Corporate Financial Reporting are developing standard operating procedures and policies for the required review and reconciliation of grant expenditures per the accounting system to the financial submissions to the granting agency, including requirements for maintaining evidence of the review(s). A shared central repository for financial submissions was created. For each grant, this repository includes the financial submission and evidence of review and approval of the financial report submissions. The ORSPA and Corporate Financial Reporting will monitor the repository and work with grant managers to ensure evidence of financial submission review and approval is maintained. Anticipated Completion Date – June 30, 2027 Name(s) of the contact person(s) responsible for corrective action: Jeff Chadwick, Financial Reporting Director, jeff.chadwick@umm.edu
A. Activities Allowed or Unallowed; B. Allowable Costs/Cost Principles Review and Approval of Payroll Expenditures Assistance Listing 16.753 – Congressionally Recommended Awards Federal Agency: Department of Justice (DOJ) Recommendation: Management should retain documentation that evidences the revi...
A. Activities Allowed or Unallowed; B. Allowable Costs/Cost Principles Review and Approval of Payroll Expenditures Assistance Listing 16.753 – Congressionally Recommended Awards Federal Agency: Department of Justice (DOJ) Recommendation: Management should retain documentation that evidences the review and approval of expenditures submitted to the DOJ. Explanation of disagreement with audit finding: There is no disagreement with the finding and recommendation. Action planned/taken in response to finding: The Corporation established a centralized UMMS Office for Research and Sponsored Programs Administration (ORSPA) department in December 2025. The ORSPA department created a standard pre-award approval process for all sponsored proposals prior to submission or award acceptance. The pre-award approval process applies to all federal, state, local, private and commercial funding opportunities across all UMMS entities and covers new, renewal, resubmission and supplemental proposals. The pre-award approval process includes review of budgeted expenditures and setup of a specific grant identifier within the accounting system and timekeeping system. Grant managers will be provided with updated policies and standard operating procedures, including the required review and approval of payroll expenditures via review of employee timecards in the Kronos and/or Workforce Management timekeeping systems. In lieu of review of timecards, ORSPA and Corporate Financial Reporting established a shared repository for financial submissions to the granting agencies, payroll reports, and detailed expenditure reports generated from the accounting system. The payroll reports and detailed expenditure reports are made available to grant managers to assist in their review and approval of expenditures included in their financial submissions to the granting agencies. The ORSPA and Corporate Financial Reporting will monitor the repository and work with grant managers to ensure evidence of review of the expenditures included within the financial submission is maintained. Anticipated Completion Date – June 30, 2027 Name(s) of the contact person(s) responsible for corrective action: Jeff Chadwick, Financial Reporting Director, jeff.chadwick@umm.edu
2025-001 Program Name: Community-Based Violence Intervention and Prevention Initiative; Assistance Listing Number: 16.045 Compliance Requirement Affected: Procurement Recommendation: HRIA should improve controls/processes around reporting to ensure documentation is retained related to procurements m...
2025-001 Program Name: Community-Based Violence Intervention and Prevention Initiative; Assistance Listing Number: 16.045 Compliance Requirement Affected: Procurement Recommendation: HRIA should improve controls/processes around reporting to ensure documentation is retained related to procurements made with federal funds. Disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: Management has implemented additional procedures to ensure that required procurement documentation is appropriately retained for each vendor in accordance with Uniform Guidance requirements. These procedures were implemented and management considers the matter to be fully remediated during fiscal year 2026. Name of the contact person responsible for corrective action: Beth Doreian, CFO Planned completion date for corrective action plan: March 1, 2026
U.S. Department of Health and Human Services Block Grants for Community Mental Health Services– Assistance Listing No. 93.958 Recommendation: It is recommended that the Organization design and implement controls to ensure that time and effort related to federal programs is appropriately documented a...
U.S. Department of Health and Human Services Block Grants for Community Mental Health Services– Assistance Listing No. 93.958 Recommendation: It is recommended that the Organization design and implement controls to ensure that time and effort related to federal programs is appropriately documented and retained in accordance with Uniform Guidance requirements, regardless of contract type. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: New Management is continuing advocacy to recover missing documentation from previous payroll provider. New payroll provider maintains all records and archives. For those employees who work on federal grants, attestations of time spent on programs are being produced. Name(s) of the contact person(s) responsible for corrective action: Kate Mombourquette Planned completion date for corrective action plan: Completed 12/31/2025
The Stoneham Public Schools are under new fiscal management as of October 29, 2025. As part of this change, grants are being initiated with an information sheet to all grant managers which provides start and end dates for eligible expenditures, as well as MUNIS budget codes for directly expensing re...
The Stoneham Public Schools are under new fiscal management as of October 29, 2025. As part of this change, grants are being initiated with an information sheet to all grant managers which provides start and end dates for eligible expenditures, as well as MUNIS budget codes for directly expensing reasonable and allocable expenses to the grant via a requisition/purchase order/ AP process used throughout the district. The grant budget codes are established in direct coordination with the approved grant budget at the time of award, and will be updated if amendments are required. The finance office will also receive these grant information sheets, and provide a cross check of the eligibility and coding requirements as requisitions are processed. No expenses shall be allowed in advance of an approved purchase order.
The town notified the U.S. Treasury Department of the error in reporting on 01/20/26, requesting to update the FY25 Project & Expenditure Report. The U.S. Treasury Department stated “Prior submitted reports are not eligible to be reopened for revisions since the reporting deadline has passed. The SL...
The town notified the U.S. Treasury Department of the error in reporting on 01/20/26, requesting to update the FY25 Project & Expenditure Report. The U.S. Treasury Department stated “Prior submitted reports are not eligible to be reopened for revisions since the reporting deadline has passed. The SLFRF Project and Expenditure Reports are cumulative reports and any adjustments needed can be made in the current reporting period if it is still open or next open reporting period.” In addition, the town has implemented quarterly reconciliation procedures to ensure all eligible expenditures for the project reporting period are reported correctly. These procedures include a secondary review of all expenditures, reporting parameters and requirements.
Contact Person Stacy Grosse, Executive Director Corrective Action Plan The Authority will implement controls to make sure there is additional required documentation before any action for payment. Planned Completion Date for CAP Fiscal year beginning July 1, 2025
Contact Person Stacy Grosse, Executive Director Corrective Action Plan The Authority will implement controls to make sure there is additional required documentation before any action for payment. Planned Completion Date for CAP Fiscal year beginning July 1, 2025
Supporting Services for Veteran Families Program – Assistance Listing No. 64.033 Recommendation: The Organization should design controls to ensure the draw down requests and related support are formally reviewed and approved by the Finance Director before submitting the request to the awarding agenc...
Supporting Services for Veteran Families Program – Assistance Listing No. 64.033 Recommendation: The Organization should design controls to ensure the draw down requests and related support are formally reviewed and approved by the Finance Director before submitting the request to the awarding agency and that the support is retained. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: The Organization understands that guidance received during the grant period for utilizing the de minimis method indicated that a modified total direct cost rate of up to 15% (capped at 10% of the total grant) may be allowable under the program; however, based on the audit interpretation, the Organization acknowledges that a modified total direct cost rate of 10% under federal guidelines may be applicable. Accordingly, the Organization will align with the applicable de minimis requirements and will obtain and retain clear documentation supporting the approved modified total direct cost rate for the program. Name(s) of the contact person(s) responsible for corrective action: Noah Masson Planned completion date for corrective action plan: 4/30/2026
Contact Person: Duane Poitra, Business Manager Corrective Action Plan: We will resolve these issues and ensure full compliance by training purchasing agents and business office staff to properly document federally funded purchase order expenditures, maintain supporting invoices, and verify that vend...
Contact Person: Duane Poitra, Business Manager Corrective Action Plan: We will resolve these issues and ensure full compliance by training purchasing agents and business office staff to properly document federally funded purchase order expenditures, maintain supporting invoices, and verify that vendor quotes reflect competitive market rates. Purchasing agents and approving administrators will also ensure staff travel requests are electronically filed; all related documentation for all related expenses will be collected. Additional training will be provided to relevant staff on federal expenditure guidelines to prevent future issues. These corrective actions will mitigate the risk of non-compliance and ensure that expenditures are reasonable and necessary for the federal award. Anticipated Completion Date: Fiscal Year 2025-2026
Corrective Action Plan Allowable Costs and Activities – Finding 2025-005 Roof Above will ensure payroll expenses will be allocated based on the allocation policy and job responsibilities of those working on the program. Allocations will be reviewed quarterly and reflected in the payroll system. Cont...
Corrective Action Plan Allowable Costs and Activities – Finding 2025-005 Roof Above will ensure payroll expenses will be allocated based on the allocation policy and job responsibilities of those working on the program. Allocations will be reviewed quarterly and reflected in the payroll system. Contact person responsible for corrective action: Tonya Frye, Chief Financial Officer Anticipated completion date: June 30, 2026
Corrective Action Plan Allowable Costs and Activities – Finding 2025-004 Roof Above will ensure administrative payroll expenses will be allocated based on the allocation policy and job responsibilities of those working on the program. Allocations will be reviewed quarterly and reflected in the payro...
Corrective Action Plan Allowable Costs and Activities – Finding 2025-004 Roof Above will ensure administrative payroll expenses will be allocated based on the allocation policy and job responsibilities of those working on the program. Allocations will be reviewed quarterly and reflected in the payroll system. Contact person responsible for corrective action: Tonya Frye, Chief Financial Officer Anticipated completion date: June 30, 2026
Finding 1205216 (2025-002)
Material Weakness 2025
Significant Deficiency in Internal Control over Compliance and Other Matters Recommendation: Significant Deficiency in Internal Control over Compliance and Other Matters Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to findi...
Significant Deficiency in Internal Control over Compliance and Other Matters Recommendation: Significant Deficiency in Internal Control over Compliance and Other Matters Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: Management believes the issue resulted from timing overlap with the prior year audit, as the transactions occurred in July and August 2024, shortly after the fiscal year-end June 30, 2024. To address this matter, management has retrained existing staff and is in the process of training the new CFO. In addition, management has performed a re-review of accounting records to confirm that no other instances of sales tax misclassification have occurred. Name of the contact person responsible for corrective action: Karen Harshman Planned completion date for corrective action plan: June 30, 2026
Corrective Action: SNMCAC will monitor administrative cost percentages against grant thresholds to ensure compliance. Person Responsible: Tracey Young, Fiscal Director Completion Date: March 31, 2026
Corrective Action: SNMCAC will monitor administrative cost percentages against grant thresholds to ensure compliance. Person Responsible: Tracey Young, Fiscal Director Completion Date: March 31, 2026
Finding #2025-001: #84.048 -Career and Technical Education - Basic Grants to States Federal Grantor Agency: U.S. Department of Education Compliance Requirement: Subrecipient Monitoring Condition: During our audit procedures, we noted that the District does not have formal, written procedures governi...
Finding #2025-001: #84.048 -Career and Technical Education - Basic Grants to States Federal Grantor Agency: U.S. Department of Education Compliance Requirement: Subrecipient Monitoring Condition: During our audit procedures, we noted that the District does not have formal, written procedures governing subrecipient monitoring. Although the District reviews supporting documentation—such as invoices—submitted by subrecipient schools prior to submitting claims to the Department of Public Instruction (DPI), these practices are not documented in an established policy or procedure. Criteria: Uniform Guidance (2 CFR 200.331–200.332) requires pass-through entities to establish and implement written procedures for monitoring subrecipients to ensure compliance with federal program requirements and achievement of performance goals. Cause: The District has not developed or implemented formal written policies and procedures for subrecipient monitoring. Effect: In the absence of formalized procedures, the District’s monitoring practices may be applied inconsistently, increasing the risk of unallowable costs, noncompliance with federal requirements, or misunderstandings between the District and its subrecipients. This could lead to questioned costs or administrative issues during oversight by DPI or other regulatory bodies. Recommendation: We recommend that the District develop and adopt formal written procedures outlining its subrecipient monitoring activities. These procedures should clearly describe monitoring responsibilities, required documentation, review steps, communication expectations, and follow-up actions. Implementing a formalized process will help ensure consistent oversight and compliance with federal regulations. Grantee Response: The District will develop and implement written procedures that outline the required monitoring steps, documentation standards, communication protocols, and follow-up expectations for subrecipient oversight. These procedures will align with the requirements of Uniform Guidance and DPI expectations.
Federal Agency: U.S. Department of Housing and Urban Development Federal Program Name: HOME Investment Partnership Program Assistance Listing Number: 14.239 Pass-Through Agencies: City of Philadelphia, Redevelopment Authority: Venango – Loan Thompson Street – Loan County of Schuylkill - Home Investm...
Federal Agency: U.S. Department of Housing and Urban Development Federal Program Name: HOME Investment Partnership Program Assistance Listing Number: 14.239 Pass-Through Agencies: City of Philadelphia, Redevelopment Authority: Venango – Loan Thompson Street – Loan County of Schuylkill - Home Investment Partnerships and Housing Trust Funds Programs: Fountain Springs - Loan Mayor and City of Baltimore: Baltimore Housing - Park Heights Women and Children - Loan Type of Finding: - Material Weakness in Internal Control over Compliance - Other Matters Condition: As part of the eligibility requirement for the HOME Investment Partnership program, we are required to review files of client residents who were provided residential drug and alcohol treatment services at the Organization’s locations in Venango (Re-Entry), Fountain Springs, Thompson Street, and Park Heights Women and Children. We sampled a total of 40 resident clients at these four locations covered by HOME loans and requested documentation within client resident files, including proof of residency, proof of income (low income or homeless). Of 40 resident client files reviewed, management could not provide proof of income or residency status for 16 clients, or policies and procedures manuals for 22 clients. Recommendation: We recommend that management adopt and implement formal policies and procedures to ensure compliance with HOME eligibility requirements. Such policies and procedures should include clear communication of compliance requirements between staff and locations, standardized documentation and processes for determining and verifying income eligibility during intake, and procedures for the redetermination of income eligibility for residential clients residing at a location for more than one year. Repeat Finding: 2024-001 Explanation of Disagreement with Audit Finding Management acknowledges the finding and continues to strengthen internal controls related to HOME program compliance, including eligibility documentation and file retention practices across all residential program locations. Management agrees that consistent documentation of eligibility, including proof of income and residency status (as applicable under HOME requirements), is critical. We are currently reviewing and enhancing intake procedures, documentation standards, and internal monitoring processes to ensure all required eligibility documentation is properly obtained, maintained, and uniformly applied across all locations. Action taken in response to finding: In response to the recommendation, management will develop and implement formalized policies and procedures to strengthen compliance with HOME requirements. These will include standardized guidance for eligibility determination at intake, clear documentation requirements across all sites, and procedures for ongoing eligibility review for clients residing in programs beyond one year. Name of the contact person responsible for corrective action: Dr. Deja Gilbert, PhD, MDA, FACHE, LPC, LMHC, President and CEO dgilbert@gaudenzia.org Planned completion date for corrective action plan: June 30, 2026
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