Corrective Action Plans

Finding 479373 (2023-001)

Material Weakness 2023

Spyglass Ridge

OR

Allowable Costs / Cost Principles Material Weakness Internal Control / Segregation of Duties

Views of Responsible Officials and Planned Corrective Actions We agree with this finding. NWCH was successful in adding needed staff in 2023, but was unable to hire a degreed accountant or controller, or to contract with an accounting firm for oversight of the accounting function. Bookkeeper trainin...

Views of Responsible Officials and Planned Corrective Actions We agree with this finding. NWCH was successful in adding needed staff in 2023, but was unable to hire a degreed accountant or controller, or to contract with an accounting firm for oversight of the accounting function. Bookkeeper training was provided from Shelter Resources Financial Manager in February 2023. NWCH is researching CPA firms in order to contract a qualified controller with expertise in real estate holdings relevant to NWCH. NWCH has been actively searching for a qualified CPA to hire or contract with since 2021, however, due to capacity constraints and overwhelmed CPA firms, NWCH has been unsuccessful. Efforts to hire experienced accounting personnel continues.

View Audit 315878

Finding 479363 (2023-001)

Significant Deficiency 2023

Regional Food Bank of Northeastern New York, Inc.

NY

Subrecipient Monitoring Allowable Costs / Cost Principles HUD Housing Programs

Finding, Reference Number: 2023-001 Federal Agency: Department of Agriculture (USDA) Description of Finding: Criteria: 7 CFR Section 250.1 9(a) identifies requirements related to record keeping for this major program. It is important to note the Food Bank appeared to maintain the appropriate suppo...

Finding, Reference Number: 2023-001 Federal Agency: Department of Agriculture (USDA) Description of Finding: Criteria: 7 CFR Section 250.1 9(a) identifies requirements related to record keeping for this major program. It is important to note the Food Bank appeared to maintain the appropriate supporting documents and required components, this finding relates to one component regarding the lack of a signoff not lack of documentation. Condition: During audit testing, we noted the following; the invoices created as a result of USDA orders being made were not consistently signed off on by the recipient agency representative upon pick up or delivery of the commodities. Statement of Concurrence or Nonconcurrence: The Food Bank agrees with this finding. Corrective Action: The Food Bank places a strong emphasis on ensuring accountability in the pickup process for agencies by requiring them to sign invoices upon receiving their orders. This practice is crucial for maintaining accurate records and verifying the receipt of products and other items. To strengthen this procedure, we will be reinforcing with our staff the absolute requirement for agencies to sign for their orders at the time of pickup. As of July 8, 2024 we will implement a new procedure mandating dual sign-offs on all orders by both the agency representative and a Food Bank staff member. Our Programs team will also conduct educational marketing raising awareness among the agencies about the importance of signing their invoices. These steps will not only enhance our operational efficiency but also uphold our commitment to transparency and accountability in distributing food resources to those in need. Name of Contact Person: Nicholas Pisani, Chief Operating Officer; phone number 518-786-3691 ext. 241; email NickP@Regionalfoodbank.net Projected completion date: July 8, 2024

View Audit 315870

Finding 479347 (2023-002)

Material Weakness 2023

Brazos Valley Community Action Programs

TX

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

CORRECTIVE ACTION PLANNED: We agree with the finding and have begun the process of enacting additional internal controls over the documentation of approval for pay rates. Beginning in August 2023, the Head Start program was administered with management, accounting, and payroll functions independent ...

CORRECTIVE ACTION PLANNED: We agree with the finding and have begun the process of enacting additional internal controls over the documentation of approval for pay rates. Beginning in August 2023, the Head Start program was administered with management, accounting, and payroll functions independent of other Agency programs. These key personnel report directly to the Board of Directors, which will direct staff to thoroughly document the approval of current pay rates for all active employees. The Agency will also enact additional controls to regularly review these records to ensure that, in the future, all required approvals and reviews are evidenced with written documentation. PERSON RESPONSIBLE FOR CORRECTION ACTION: James McCullough, Board President ANTICIPATED COMPLETION DATE: September 30, 2024

View Audit 315839

Finding 479334 (2023-001)

Significant Deficiency 2023

Gravette School District

AR

Questioned Costs Allowable Costs / Cost Principles Internal Control / Segregation of Duties

The District has instituted an internal control that requires the preparation, review and retention of documentation as evidence that coding changes have not only been made but also made in a timely manner. The District will ensure that a contract is executed for every full-time employee included in...

The District has instituted an internal control that requires the preparation, review and retention of documentation as evidence that coding changes have not only been made but also made in a timely manner. The District will ensure that a contract is executed for every full-time employee included in the human resources module in eFinance by reconciling employee and contract counts.

View Audit 315830 Questioned Costs: $1

Finding 479333 (2023-002)

Significant Deficiency 2023

Gravette School District

AR

Questioned Costs Allowable Costs / Cost Principles Internal Control / Segregation of Duties

In our test of disbursements, we identified unallowable costs totaling $4,458 for football kicking lessons ($2,250) and student t-shirts to be worn at sporting events ($2,208) were paid from Education Stabilization Funds.

View Audit 315830 Questioned Costs: $1

Finding 479327 (2023-009)

Material Weakness 2023

Colorado Legal Services, INC

CO

Questioned Costs Allowable Costs / Cost Principles Material Weakness § 200.403

COIVD-19: Coronavirus State and Local Fiscal Recovery – Assistance Listing No. 21.027 Recommendation: We recommend that the Organization consider updating its salaries, wages, and employee benefit cost allocation methodology and process to reduce the frequency of manual adjustments based on review ...

COIVD-19: Coronavirus State and Local Fiscal Recovery – Assistance Listing No. 21.027 Recommendation: We recommend that the Organization consider updating its salaries, wages, and employee benefit cost allocation methodology and process to reduce the frequency of manual adjustments based on review of individual time records and expense data and maximize the use of automated allocations based on employees’ time and effort records, effective compensation during work periods, and that are calculated in a consistent manner. We also recommend that the Organization maintain contemporaneous documentation supporting all cost allocations. Explanation of disagreement with audit finding: There is no disagreement with this finding. Action taken in response to finding: The Organization is updating the segregation of duties in order to improve the preparation, review and sign steps of the process. Name of the contact person responsible for corrective action: Silvia Zelaya, Finance Director Planned completion date for corrective action plan: January 2025

View Audit 315826 Questioned Costs: $1

Finding 479298 (2023-007)

Material Weakness 2023

Colorado Legal Services, INC

CO

Allowable Costs / Cost Principles Material Weakness Internal Control / Segregation of Duties

Legal Services Corporation Grants – Assistance Listing No. 09.706060 Recommendation: We recommend that the Organization update its derivative income allocation method, policy and procedures to reflect the method described in the federal regulations. Explanation of disagreement with audit finding: ...

Legal Services Corporation Grants – Assistance Listing No. 09.706060 Recommendation: We recommend that the Organization update its derivative income allocation method, policy and procedures to reflect the method described in the federal regulations. Explanation of disagreement with audit finding: There is no disagreement with this finding. Action taken in response to finding: The Organization will reach out to LSC to understand if our current method is acceptable. If not, the Organization will implement corrections to comply with applicable standards. Name of the contact person responsible for corrective action: Silvia Zelaya, Finance Director Planned completion date for corrective action plan: January 2025

View Audit 315826

Finding 479297 (2023-006)

Material Weakness 2023

Colorado Legal Services, INC

CO

Questioned Costs Allowable Costs / Cost Principles Material Weakness

Legal Services Corporation Grants – Assistance Listing No. 09.706060 Recommendation: We recommend that the Organization consider updating its salaries, wages, and employee benefit cost allocation methodology and process to reduce the frequency of manual adjustments based on review of individual tim...

Legal Services Corporation Grants – Assistance Listing No. 09.706060 Recommendation: We recommend that the Organization consider updating its salaries, wages, and employee benefit cost allocation methodology and process to reduce the frequency of manual adjustments based on review of individual time records and expense data and maximize the use of automated allocations based on employees’ time and effort records, effective compensation during work periods, and that are calculated in a consistent manner. We also recommend that the Organization maintain contemporaneous documentation supporting all cost allocations. Explanation of disagreement with audit finding: There is no disagreement with this finding. Action taken in response to finding: The Organization will review this finding and current methodology and propose corrections as part of a broader review of its technologies. Name of the contact person responsible for corrective action: Silvia Zelaya, Finance Director Planned completion date for corrective action plan: January 2025

View Audit 315826 Questioned Costs: $1

Finding 479295 (2023-004)

Significant Deficiency 2023

Colorado Legal Services, INC

CO

Allowable Costs / Cost Principles Significant Deficiency § 200.403

Legal Services Corporation Grants – Assistance Listing No. 09.706060 Recommendation: We recommend that the Organization consider updating its employee benefit cost allocation methodology and process to reduce the frequency of manual adjustments based on review of expense data and maximize the use o...

Legal Services Corporation Grants – Assistance Listing No. 09.706060 Recommendation: We recommend that the Organization consider updating its employee benefit cost allocation methodology and process to reduce the frequency of manual adjustments based on review of expense data and maximize the use of automated allocations that are calculated in a consistent manner that ensure costs are applied uniformly to respective benefited activities. Explanation of disagreement with audit finding: There is no disagreement with this finding. Action taken in response to finding: The Organization will review this finding and current methodology and propose corrections as part of a broader review of its technologies. Name of the contact person responsible for corrective action: Silvia Zelaya, Finance Director Planned completion date for corrective action plan: January 2025

View Audit 315826

Finding 479294 (2023-003)

Material Weakness 2023

Colorado Legal Services, INC

CO

Questioned Costs Allowable Costs / Cost Principles Material Weakness § 200.430

Legal Services Corporation Grants – Assistance Listing No. 09.706060 Recommendation: We recommend that the Organization consider updating its salaries and wages cost allocation methodology and process to reduce the frequency of manual adjustments based on review of individual time records and expen...

Legal Services Corporation Grants – Assistance Listing No. 09.706060 Recommendation: We recommend that the Organization consider updating its salaries and wages cost allocation methodology and process to reduce the frequency of manual adjustments based on review of individual time records and expense data and maximize the use of automated allocations based on employees’ time and effort records. Explanation of disagreement with audit finding: There is no disagreement with this finding. Action taken in response to finding: The Organization will review this finding and current methodology and propose corrections as part of a broader review of its technologies. Name of the contact person responsible for corrective action: Silvia Zelaya, Finance Director Planned completion date for corrective action plan: January 2025

View Audit 315826 Questioned Costs: $1

Finding 479264 (2023-002)

Significant Deficiency 2023

Puerto Rico Safe Drinking Water Treatment Revolving Loan Fund

PR

Allowable Costs / Cost Principles Matching / Level of Effort / Earmarking § 200.303 § 200.430 § 200.431

Finding 2023-002 Payroll and Personnel Files Significant Deficiency in Internal Control over Payroll and Personnel Files - Accurate and Completeness of Personnel Files The PRDOH agrees with the finding. However, PRDOH has implemented several corrective actions. The PRDOH established an internal c...

Finding 2023-002 Payroll and Personnel Files Significant Deficiency in Internal Control over Payroll and Personnel Files - Accurate and Completeness of Personnel Files The PRDOH agrees with the finding. However, PRDOH has implemented several corrective actions. The PRDOH established an internal control to ensure that the required documents are recorded in the files. The Director of Human Resources presented a work plan, in order to implement an effective procedure for reviewing files. A control sheet of documents required to the active records was established in which the Human Resources Officers of the regions and Hospital were requested to verify the employee’s files for the require documentation that is need it in the files. Responsible Official Lcdo. Luis Rivera Villanueva Secretario Auxiliar de Recursos Humanos 787-765-2929 ext. 4273 Mrs. Luz S. Ramos Pedroza Specialist 787-765-2929 ext. 4273 Mrs. Maribel Zayas Payroll Officer Director 787-765-2929 ext. 4209 Estimated Completion Date Implementation is expected to be completed on or before the end of October 2024.

View Audit 315825

Finding 479249 (2023-003)

Significant Deficiency 2023

Minnesota Prairie County Alliance

MN

Allowable Costs / Cost Principles § 200.303

Finding Number: 2023-003 Finding Title: Activities Allowed or Unallowed and Allowable Costs/Cost Principles Program: 93.563 Child Support Enforcement Name of Contact Person Responsible for Corrective Action: Kevin Venenga, Finance Manager Corrective Action Planned: All impacted employees have been r...

Finding Number: 2023-003 Finding Title: Activities Allowed or Unallowed and Allowable Costs/Cost Principles Program: 93.563 Child Support Enforcement Name of Contact Person Responsible for Corrective Action: Kevin Venenga, Finance Manager Corrective Action Planned: All impacted employees have been reviewed and system adjustments in payroll have been completed. In addition, a review will be done at the start of every quarter to ensure that all allocations are being distributed correctly by the payroll system to ensure that reports are accurately completed. Anticipated Completion Date: 2023 amounts will be corrected by 7/31/2024. The quarterly payroll systems review will start prior to the first payroll of the 3rd quarter of 2024.

View Audit 315808

Finding 479184 (2023-001)

Significant Deficiency 2023

Set Free Alaska, Inc.

AK

Allowable Costs / Cost Principles Reporting Significant Deficiency

Finding 2023-001 Internal Control Over Allowable Costs/Activities Name of Contact Person: Joy Stein, Chief Financial Officer Corrective Action Plan: An error occurred when a workaround in the workflow approval process caused a raise to be missed for one employee. A Compensation Change form was re-...

Finding 2023-001 Internal Control Over Allowable Costs/Activities Name of Contact Person: Joy Stein, Chief Financial Officer Corrective Action Plan: An error occurred when a workaround in the workflow approval process caused a raise to be missed for one employee. A Compensation Change form was re-routed from the customary workflow established in the BambooHR system because an approver was out on Paid Time Off (PTO). The workaround removed the change from reflecting on the Bamboo reports used during the processing payroll. The result was that the pay raise was missed, and the employee was underpaid until the time of audit and test sample review. A telephone meeting was held the afternoon of March 27, 2024, with the CFO, CHRO, and Payroll Specialist. It was identified that when the workflow is worked-around the change does not appear on the Bamboo change report. Therefore, it was decided that the best practice will be to use an alternate approver which is the Senior Accountant at present. If this position is vacant or not available, then the workflow will remain intact. If items are urgent and cannot wait, HR will contact the approver via telephone and request the item to be processed. Proposed Completion Date: March 27, 2024, action was completed. Corrective action was identified and completed on same day the error was identified.

View Audit 315729

Finding 479171 (2023-001)

Significant Deficiency 2023

Franklin County Technical School District

MA

Subrecipient Monitoring Allowable Costs / Cost Principles Period of Performance § 200.308 § 200.309 § 200.403

To ensure compliance with grant regulations the school district will implement the following: ● Conduct a comprehensive assessment of existing procedures to identify gaps that led to non-compliance with grant regulations. ● Ensure timely submission of grant applications. ● Maintain detailed document...

To ensure compliance with grant regulations the school district will implement the following: ● Conduct a comprehensive assessment of existing procedures to identify gaps that led to non-compliance with grant regulations. ● Ensure timely submission of grant applications. ● Maintain detailed documentation of all award dates and expenditures to provide a clear compliance record. ● Ensure all documentation is easily accessible and systematically organized for audit purposes. ● Ensure pre-award costs are allowable only to the extent they would have been allowable if incurred after the effective date and ONLY with written approval from the Federal awarding agency (as per 2 CFR 200.458). ● Establish a process for obtaining and documenting written approval for pre-award costs. ● Provide comprehensive training on compliance with Uniform Grant Guidance to all relevant staff. ● Review and update policies and procedures related to grant expenditures regularly to ensure they are current and compliant with federal regulations. ● Assign accountability for monitoring and reporting compliance to specific roles within the organization. This implementation of this plan shall be the responsibility of the Russ Kaubris, Business Manager. Starting with the Fiscal Year 2025 grant cycle, procedures to comply will be implemented.

View Audit 315717

Finding 479155 (2023-003)

Significant Deficiency 2023

The Warren Center, Inc,

TX

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

Finding 2023-003: Allowable costs – significant deficiency in internal controls over compliance and compliance finding. Management Response All submissions of expenses reimbursed by grants will require review by the Controller or the COO, in the Controller’s absence, to ensure that expenditures char...

Finding 2023-003: Allowable costs – significant deficiency in internal controls over compliance and compliance finding. Management Response All submissions of expenses reimbursed by grants will require review by the Controller or the COO, in the Controller’s absence, to ensure that expenditures charged to the grants agree to the original documents (invoices or 􀆟mesheets) prior to submission or charging to a specific grant

View Audit 315643

Finding 479154 (2023-002)

Significant Deficiency 2023

The Warren Center, Inc,

TX

Allowable Costs / Cost Principles Internal Control / Segregation of Duties Cash Management

Finding 2023-002: Allowable costs – significant deficiency in internal controls over compliance and compliance finding. Management Response All submissions of expenses reimbursed by grants will require review by the Controller or the COO, in the Controller’s absence, to ensure that expenditures char...

Finding 2023-002: Allowable costs – significant deficiency in internal controls over compliance and compliance finding. Management Response All submissions of expenses reimbursed by grants will require review by the Controller or the COO, in the Controller’s absence, to ensure that expenditures charged to the grants agree to the original documents (invoices or receipts) prior to submission or charging to a specific grant.

View Audit 315643

Finding 479153 (2023-001)

Material Weakness 2023

The Warren Center, Inc,

TX

Internal Control / Segregation of Duties Allowable Costs / Cost Principles Cash Management

Finding 2023-001: Allowable costs – material weakness in internal controls over compliance and compliance finding. Management Response All submissions of 􀆟mesheets and payroll reimbursed by grants will require review by the Controller or the COO, in the Controller’s absence, to ensure that expenditu...

Finding 2023-001: Allowable costs – material weakness in internal controls over compliance and compliance finding. Management Response All submissions of 􀆟mesheets and payroll reimbursed by grants will require review by the Controller or the COO, in the Controller’s absence, to ensure that expenditures charged to the grants agree to the original 􀆟mesheets or payroll prior to submission or charging to a specific grant

View Audit 315643

Finding 479066 (2023-002)

Significant Deficiency 2023

West Caldwell Health Council, INC

NC

Reporting Allowable Costs / Cost Principles Significant Deficiency

Due to the extreme turnover within the Finance Director position in FY 22-23. there were more than normal accounting errors that were corrected by journal entries in the FY23 audit. The Executive Director addressed the turnover by hiring a Finance Director with extensive non-profit finance and opera...

Due to the extreme turnover within the Finance Director position in FY 22-23. there were more than normal accounting errors that were corrected by journal entries in the FY23 audit. The Executive Director addressed the turnover by hiring a Finance Director with extensive non-profit finance and operation experience. In addition, the CFO Float from the NACHC was contracted to review FY 2023 transactions and provide assistance in correcting accounting errors. The Finance Director role was previously occupied by one individual for multiple years. A system of checks and balances have been established between the Administrative Staff. Governing Board. Finance Director and Executive Director. This system includes the enhancement of protocols such as vendor payments, reporting standards, GL review. monthly one on one in depth review of financials with the Governing Board, Executive Director and Finance Director, and monthly Finance Director and Executive Director meetings. The Finance Director has established actual versus budget reports as well as data trends which are reviewed with the Executive Director, Governing Board, and each individual Program Director monthly.

View Audit 315591

Finding 479033 (2023-001)

None 2023

City of Aurora, Colorado

CO

Questioned Costs Allowable Costs / Cost Principles

CITY OF AURORA PLANNED ACTION: The City agrees with the finding and City staff will implement additional internal controls, including sending payroll reports to grant managers each pay period for review and signoff for the audit file. In addition, staff will increase the frequency of time and effort...

CITY OF AURORA PLANNED ACTION: The City agrees with the finding and City staff will implement additional internal controls, including sending payroll reports to grant managers each pay period for review and signoff for the audit file. In addition, staff will increase the frequency of time and effort certifications to quarterly to identify changes in employee job duties and cost allocations on a timely basis. CITY OF AURORA RESPONSIBLE PARTY: Nancy Wishmeyer, Controller COMPLETION DATE: Q3 2024

View Audit 315556 Questioned Costs: $1

Finding 478993 (2023-034)

Significant Deficiency 2023

Commonwealth of Massachusetts

MA

Questioned Costs Allowable Costs / Cost Principles § 200.303 § 200.430 § 200.430(I)

DEPARTMENT OF PUBLIC HEALTH 2023-034 Opioid – STR - Assistance Listing No. 93.788 Action taken in response to the finding: We are currently working on implementing training during on boarding as well as annual refresher training for these key fiscal requirements including time and effort reporting ...

DEPARTMENT OF PUBLIC HEALTH 2023-034 Opioid – STR - Assistance Listing No. 93.788 Action taken in response to the finding: We are currently working on implementing training during on boarding as well as annual refresher training for these key fiscal requirements including time and effort reporting and plan to have these trainings in place by the end of the 2024 calendar year. In the interim the BSAS grants office will work with Grant PIs to train staff on time and effort reporting, correct any issues with duplicative effort reporting, and ensure staff are allocated to grants in proportion to their actual time worked. This is being corrected by the BSAS grants director and all corrections have been documented through PARS reports. This particular finding was in relation to an Interdepartmental Service Agreement ISA (815 CMR 6.00) with The Dukes County Sheriff’s Office (department) for which we do not have direct access to their payroll. We will be including in future ISA agreements, language that states that monthly detailed payroll reports associated with ISA funds must be submitted to the BSAS ISA office for review. These records will be reviewed by the BSAS ISA manager, and any corrections required will be relayed to the ISA child agency by the BSAS ISA manager via email for documentation. If any child agency is repeatedly non-compliant we will work with them on a corrective action plan for their site. If the issues are not resolved we will review the status of their agreement, and our continued relationship with them. All related records will be kept in the BSAS ISA offices Teams files for the child agency. Name of the contact person responsible for corrective action: Shannon McEneaney-Farron, BSAS Fiscal Director Planned completion date for corrective action plan: Ongoing. This process will commence as of July 1, 2024.

View Audit 315520 Questioned Costs: $1

Finding 478972 (2023-029)

Significant Deficiency 2023

Commonwealth of Massachusetts

MA

Questioned Costs Eligibility Special Tests & Provisions § 200.303

EXECUTIVE OFFICE OF HEALTH AND HUMAN SERVICES 2023-029 Medicaid Cluster, COVID-19 – Medicaid Cluster - Assistance Listing No. 93.775, 93.777, 93.778 Action taken in response to the finding: Dental: In response to the finding MassHealth required DentaQuest to: • Implement a corrective action plan to...

EXECUTIVE OFFICE OF HEALTH AND HUMAN SERVICES 2023-029 Medicaid Cluster, COVID-19 – Medicaid Cluster - Assistance Listing No. 93.775, 93.777, 93.778 Action taken in response to the finding: Dental: In response to the finding MassHealth required DentaQuest to: • Implement a corrective action plan to review and improve internal controls for the retention of provider enrollment documentation. • Ensure that all required documents are obtained and retained during validation and revalidation (i.e., “provider eligibility recertification”) processes for both individual dental providers and dental group practices. • Provide additional training to its provider enrollment staff on document retention. DentaQuest has implemented the above requirements to ensure provider license and revalidation dates are verified and maintained in MassHealth’s Medicaid Management Information System (MMIS) upon enrollment and subsequent revalidation. However, MassHealth anticipates that due to a backlog in the dental group practice revalidation process, dental group practice revalidation will not be complete January 2025. In the event that a MassHealth-enrolled provider or group practice does not timely respond to MassHealth revalidation requests, MassHealth initiates the process of terminating the provider’s MassHealth contract. BSS: For the one out of state provider that MassHealth did not revalidate, once identified, the provider was immediately put into a revalidation process. The provider did not respond to requests from MassHealth to revalidate and the provider’s MassHealth contract was terminated effective 1/21/2024 for failure to revalidate. MassHealth and BSS will continue to review and ensure that all providers who are required to revalidate are completed within the CMS required timeframes. Name of the contact person responsible for corrective action: Tuyen Vu, Deputy Director, Dental Janice Wadsworth, Director of Provider Operations Planned completion date for corrective action plan: Dental: January 1, 2025 BSS: January 21, 2024

View Audit 315520 Questioned Costs: $1

Finding 478908 (2023-010)

Significant Deficiency 2023

Commonwealth of Massachusetts

MA

Questioned Costs Allowable Costs / Cost Principles § 200.303 § 200.430

EXECUTIVE OFFICE OF LABOR AND WORKFORCE DEVELOPMENT 2023-010 WIOA Cluster, Employment Service Cluster – Assistance Listing No. 17.258, 17.259, 17.278, 17.207, 17.801 Action taken in response to the finding: EOLWD Budget and Human Resources (HR) will update procedures and controls to ensure all new...

EXECUTIVE OFFICE OF LABOR AND WORKFORCE DEVELOPMENT 2023-010 WIOA Cluster, Employment Service Cluster – Assistance Listing No. 17.258, 17.259, 17.278, 17.207, 17.801 Action taken in response to the finding: EOLWD Budget and Human Resources (HR) will update procedures and controls to ensure all new staff are notified and trained to comply with entering Self-Service Time and Attendance (SSTA) combination codes on their timesheets. As programs are assigned unique combination codes, EOLWD Budget and HR will annually remind staff that SSTA combination codes are required when entering timesheets and, if none are entered, timesheet approvers are required to reject timesheets and notify staff to comply with the requirement. Additionally, a weekly Data Mart report will be created to identify timesheets entered without SSTA combination codes so HR can send notifications to staff to update timesheets for compliance. Name of the contact person responsible for corrective action: Steve J. Wong, Budget Director, and Cheryl Stanton, Secretariat Human Resources Officer Planned completion date for corrective action plan: December 31, 2024

View Audit 315520 Questioned Costs: $1

Finding 478896 (2023-003)

Significant Deficiency 2023

Commonwealth of Massachusetts

MA

Allowable Costs / Cost Principles Subrecipient Monitoring Period of Performance § 200.303 § 200.308 § 200.309 § 200.403

DEPARTMENT OF ELEMENTARY PUBLIC HEALTH 2023-003 WIC Special Supplemental Nutrition Program for Women, Infants, and Children – Assistance Listing No. 10.557 Action taken in response to the finding: The Department and the WIC Nutrition Program will have all fiscal staff review the Operating Procedur...

DEPARTMENT OF ELEMENTARY PUBLIC HEALTH 2023-003 WIC Special Supplemental Nutrition Program for Women, Infants, and Children – Assistance Listing No. 10.557 Action taken in response to the finding: The Department and the WIC Nutrition Program will have all fiscal staff review the Operating Procedures to refresh themselves of the procedures surrounding Purchase Orders and Expenditures. (Excerpt from Operating Procedures) All Staff should complete a “Request for Purchase” form with all pertinent information such as quotes, renewal notices, conference registration, etc. and submit it to supervisor or Director for initial approval. Once the request is approved, the form is given to a fiscal staff to start the process of encumbering funds through MMARS and preparing a PURCHASE ORDER. At the very least, staff will identify that the service performed is correct and that funds are available and already encumbered to process the payment. All federal payments require a Program Code, and so the fiscal staff need to be sure the appropriate one is entered based on the dates of service or the date of the Purchase Order. Once all documents have been uploaded and submitted, then either the WIC State Director or the Fiscal Director will need to electronically approve the transaction in the Tracking System. The Fiscal Director and the State Director will more thoroughly review the assignment of Program Codes as they pertain to the Federal grant award dates before approving payment documents. This review will involve verifying: • The type of service • Date of service or receipt of item • Date of Purchase Order • Program Codes Name of the contact person responsible for corrective action: Beverly Andrew and Rachel Colchamiro Planned completion date for corrective action plan: April 30, 2024

View Audit 315520

Finding 478877 (2023-001)

Significant Deficiency 2023

Housing Authority of the City of Seattle

WA

Questioned Costs Allowable Costs / Cost Principles Reporting § 200.303 § 200.430

Moving to Work Demonstration Program – Assistance Listing No. 14.881 Recommendation: We recommend the Authority implements an adequate review process to ensure costs charged to the grant are reasonable, accurate, and properly allocated. We recommend the Authority perform and document this review qua...

Moving to Work Demonstration Program – Assistance Listing No. 14.881 Recommendation: We recommend the Authority implements an adequate review process to ensure costs charged to the grant are reasonable, accurate, and properly allocated. We recommend the Authority perform and document this review quarterly at minimum. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: Budget division will continue to send an annual summary at the beginning of the fiscal year for all employees who have split funding for federal and non-federal funds. During the MSS process there will be a coding added if the payroll certification is required by a comment in the system. Monthly the Budget and Payroll Division will have a monthly review of all MSS employee changes during the month to evaluate the payroll certifications for the changes are accurate. Name(s) of the contact person(s) responsible for corrective action: Jared Cummer, CFO and Olivia Hunsinger, Controller Planned completion date for corrective action plan: Progress has been made and full completion is expected 06/30/2024.

View Audit 315516 Questioned Costs: $1

Finding 478873 (2023-003)

Significant Deficiency 2023

Harvest Against Hunger

WA

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

Federal Agency: U.S. Department of the Treasury Federal Program Name: Coronavirus State and Fiscal Recovery Funds Assistance Listing Number: 21.027 Federal Award Identification Number and Year: K3422 & K3724 - 2021 Pass-Through Agency: Washington State Department of Agriculture Pass-Through Number(s...

Federal Agency: U.S. Department of the Treasury Federal Program Name: Coronavirus State and Fiscal Recovery Funds Assistance Listing Number: 21.027 Federal Award Identification Number and Year: K3422 & K3724 - 2021 Pass-Through Agency: Washington State Department of Agriculture Pass-Through Number(s): E128H7X5KWX5 Award Period: 7/1/21-6/30/23; 11/19/21-6/30/23 Type of Finding: • Significant Deficiency in Internal Control over Compliance Section III – Findings and Questioned Costs – Major Federal Programs Condition: Harvest Against Hunger allocates costs to the program based on the available funding and number of employees working on the project. They do not use the timesheet to record the operating hours for the program, but rather management makes a judgmental decision based on their understanding of program operations during the payroll period. Questioned costs: None Cause: The Organization lacks documentation supporting the allocation determination used to determine payroll amounts charged to the major program. Views of responsible officials: There is no disagreement with the finding. Criteria or specific requirement: Per §200.303, non-Federal entities must "establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non- Federal entity is managing the Federal award in compliance with Federal statues, regulations, and the terms and conditions of the Federal awards." Additionally, non-Federal entities must charge salaries and wages "based on records that accurately reflect the work performed" (§200.430(i)). Effect: Without proper documentation of the payroll allocation used, the Organization could charge time to a federal program that does not reflect true expenditures incurred by that program. Repeat Finding: This is not a repeated finding. Recommendation: The Organization should implement policies for consistently determining time allocation to the federal program, and ensure internal controls help to ensure this allocation is correct and consistently documented

View Audit 315495

Corrective Action Plans

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