Corrective Action Plans

Finding 524563 (2023-001)

Significant Deficiency 2023

Housing Forward

TX

Questioned Costs Allowable Costs / Cost Principles Cash Management

Below is Housing Forward’s response to the audit finding for fiscal year 1/1/2023 through 12/31/2023. Federal Award Finding Finding 2023-001: Allowable costs and activities – significant deficiency in internal controls over compliance and compliance finding specific to payroll allocation.  Funding ...

Below is Housing Forward’s response to the audit finding for fiscal year 1/1/2023 through 12/31/2023. Federal Award Finding Finding 2023-001: Allowable costs and activities – significant deficiency in internal controls over compliance and compliance finding specific to payroll allocation.  Funding Source: Coronavirus State and Local Fiscal Recovery Funds ALN 21.027 (CSLFRF).  Condition: During allowable cost and activities testing for the CSLFRF grant, 2 out of 40 timesheets tested did not agree to the number of hours charged to the grant.  Cause: Although the 2 timesheets were filled out completely, signed and reviewed by a supervisor, there was an error in the data entry into the accounting software. Amounts were calculated correctly but inadvertently assigned to the wrong grant. GL detail was provided to the funder as part of the monthly reporting, but neither the funder nor Housing Forward staff noticed this error.  Management’s Response: Management understands the importance of correctly charging time to funders. Housing Forward will continue its timesheet review process and utilize employee timesheets that clearly indicate funding sources and allocate payroll costs based on these records. Housing Forward will implement a second review of the payroll entry at the time it is entered into the accounting system to ensure that errors are corrected before payroll costs are charged to funders. This began in January 2025. The second reviewer will be the VP of Finance/CFO or her designee. In later FY25 the organization also plans to implement a timekeeping software that integrates with the accounting software to prevent future data entry errors. Sincerely, Sarah Kahn Sarah Kahn President & CEO

View Audit 343995 Questioned Costs: $1

Finding 524401 (2023-002)

Material Weakness 2023

Sinai Health System and Affiliates

IL

Questioned Costs Period of Performance Subrecipient Monitoring § 200.308 § 200.309 § 200.403

Condition: Controls did not identify that expenses submitted to the State were outside of the period of performance. Planned Corrective Action: Background: Sinai began the process of risk assessment in the government grants area at the end of 2022. At that time, Sinai engaged outside counsel to as...

Condition: Controls did not identify that expenses submitted to the State were outside of the period of performance. Planned Corrective Action: Background: Sinai began the process of risk assessment in the government grants area at the end of 2022. At that time, Sinai engaged outside counsel to assist in this process. In December of 2023, Sinai created the Office of Government Grant Administration (OGGA) and developed a comprehensive grant compliance policy and procedure. The Audit and Compliance Committee of the Board was updated on this initiative. In 2024, the OGGA created a Grant Compliance Manual which sets forth processes and procedures in grant management to ensure compliance with government regulations. Unfortunately, these controls were not implemented until after the relevant time period at issue in this audit. In 2025, Sinai is continuing to improve its compliance procedures with respect to government grants, and has developed the following plan: 1. Working Group: Sinai will implement a process of convening a Working Group for each government grant, which will consist of a representative from Finance, the OGGA, and the stakeholder involved (i.e., nursing, medicine, etc.) The Working group will be responsible for, among other things, ensuring that that the reported qualifying expenditures are incurred during the period of performance of the grant. In other words, allowable costs will be discussed early in the process, so that there is fulsome understanding among the key individuals involved. 2. Record-Keeping: The OGGA will also establish shared folders to house all of the pertinent documentation relative to the grant. 3. Invoice/Supporting Documentation Review. The Grant Accounting Manager will review all invoices and other supportive documentation to ensure that allowable costs are submitted for reimbursement. This compliance check will be completed prior to submission of the documentation for reimbursement. Monthly reviews of these activities will be performed by the Grant Accountant, the Compliance Grant Manager, and other OGGA staff as needed. Proactive review to prevent or resolve issues in the upcoming month’s billings should be pursued. 4. Annual Assessment. The Chief Compliance Officer, with the assistance of the General Counsel, will meet with the OGGA team annually to assess procedures and risk controls; a report of this assessment will be made to the Audit and Compliance Committee of the Board of Directors Contact person responsible for corrective action: Dimas Ortega - Vice President of Finance, Deputy Chief Financial Officer Anticipated Completion Date: 06/30/2025

View Audit 343640 Questioned Costs: $1

Finding 524098 (2023-005)

Material Weakness 2023

Trilogy, Inc.

IL

Allowable Costs / Cost Principles § 200.414

Action taken in response to finding: Trilogy submitted an application to apply for a new indirect cost rate in January 2024, we also received provisional approval from the federal agency to continue use of our prior approved indirect cost rate. Since then, Trilogy has clearly defined compliance req...

Action taken in response to finding: Trilogy submitted an application to apply for a new indirect cost rate in January 2024, we also received provisional approval from the federal agency to continue use of our prior approved indirect cost rate. Since then, Trilogy has clearly defined compliance requirements for maintaining an up-to-date indirect cost rate. This includes developing a timeline of responsibilities, documents and steps needed for approval. This also includes the development of an annual calendar for Finance to be proactive about expiring NICRA agreements. Name(s) of the contact person(s) responsible for corrective action: Richard Powell, Shunita Rhodes Planned completion date for corrective action plan: August 2023 and January 2024.

View Audit 343276

Finding 524097 (2023-004)

Material Weakness 2023

Trilogy, Inc.

IL

Questioned Costs Allowable Costs / Cost Principles Subrecipient Monitoring § 200.308 § 200.309 § 200.403

Action taken in response to finding: Trilogy will thoroughly review the grant agreements to understand specific start and end dates as well as any allowable cost guidelines. Training will be provided to staff on identifying cut off periods and the reviewing of invoices for expenditures will be moni...

Action taken in response to finding: Trilogy will thoroughly review the grant agreements to understand specific start and end dates as well as any allowable cost guidelines. Training will be provided to staff on identifying cut off periods and the reviewing of invoices for expenditures will be monitored closely when entered into the system to ensure it is entered into the system in the correct period in which the expense is incurred. Documentation will be reviewed by the Controller before posting to the general ledger to ensure expenses are charged to the correct grant period. During the grant invoice preparation there will be an additional review of the expenses in the general ledger to ensure the cut-off for grant expenditures are included in the correct period for the monthly grant vouchers. Trilogy will also implement a quarterly review of expenses charged to grants in preparation of the quarterly reports to ensure proper allocation to grants and cut off grant expenditures during the first and last month of the grant budget period. Name(s) of the contact person(s) responsible for corrective action: Richard Powell, Shunita Rhodes, Hagar Buster, Han Qi Planned completion date for corrective action plan: October 31, 2024, and ongoing as needed.

View Audit 343276 Questioned Costs: $1

Finding 524096 (2023-003)

Material Weakness 2023

Trilogy, Inc.

IL

Questioned Costs Allowable Costs / Cost Principles

Action taken in response to finding: Trilogy implemented a new payroll system in January 2024 that allows staff to change their allocations of time if it varies from the budget when working on grant programs. These changes can be made in blocks of time or by the day. Financial analysts and the FP&...

Action taken in response to finding: Trilogy implemented a new payroll system in January 2024 that allows staff to change their allocations of time if it varies from the budget when working on grant programs. These changes can be made in blocks of time or by the day. Financial analysts and the FP&A manager meet with program directors and program managers monthly to go over allocations and update in the UKG payroll system as well as for the preparation of the monthly grant vouchers. Name(s) of the contact person(s) responsible for corrective action: Richard Powell, Shunita Rhodes, Hagar Buster Planned completion date for corrective action plan: February 2024 and ongoing as needed.

View Audit 343276 Questioned Costs: $1

Finding 524009 (2023-008)

Significant Deficiency 2023

Magnolia School District

CA

Questioned Costs Allowable Costs / Cost Principles Significant Deficiency

We agree with the recommendation and moving forward the District will maintain records of all federal expenditures supported by financial reports.

View Audit 343203 Questioned Costs: $1

Finding 524004 (2023-007)

Significant Deficiency 2023

Magnolia School District

CA

Questioned Costs Allowable Costs / Cost Principles

We agree with the recommendation and moving forward the District’s Director of Fiscal Services will implement a review process for indirect costs that will include a review of relevant grant agreements and federal guidance.

View Audit 343203 Questioned Costs: $1

Finding 523980 (2023-004)

Material Weakness 2023

Magnolia School District

CA

Questioned Costs Allowable Costs / Cost Principles Material Weakness

We agree with the recommendation and moving forward all expenditure records and financial reports will be maintained for a minimum of three years.

View Audit 343203 Questioned Costs: $1

Finding 523574 (2023-002)

Material Weakness 2023

Community Action Center

WA

Allowable Costs / Cost Principles

COMMUNITY ACTION CENTER AGREES WITH THE FINDINGS REPORTED AND HAS MADE CORRECTIVE ACTION TO RECTIFY THE FINDING.

View Audit 342886

Finding 523547 (2023-001)

Significant Deficiency 2023

Pennsylvania Housing Finance Agency

PA

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

U.S. Department of Housing and Urban Development Home Investment Partnerships Program – Assistance Listing No. 14.239 Recommendation: CLA recommended that PHFA review their procedures surrounding the division sign-off form utilized in the pre-commitment meeting. Explanation of disagreement with a...

U.S. Department of Housing and Urban Development Home Investment Partnerships Program – Assistance Listing No. 14.239 Recommendation: CLA recommended that PHFA review their procedures surrounding the division sign-off form utilized in the pre-commitment meeting. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: PHFA implemented a new process to ensure the required divisional signoffs are received after the completion of the pre-commitment meeting. The Lending Officer prepares an electronic approval listing in Microsoft Teams to capture the approvals after the pre-commitment meeting. The Lending Officer follows up with the requested signors to ensure that all outstanding questions have been answered and the signer can mark the Microsoft Teams’ listing approved. Name of the contact person responsible for corrective action: Jessica Perry, Director of Development The new Microsoft Teams approval system was implemented in August 2023. To date, approximately 20 developments have been approved via the new system.

View Audit 342838

Finding 523543 (2023-006)

Material Weakness 2023

Alternatives, Inc.

IL

Questioned Costs Allowable Costs / Cost Principles § 200.405

Due to limited staffing resources, the Organization was not able to ensure maintenance of adequate documentation. The Organization has made efforts to ensure that proper documentation is maintained and accessible by necessary staff.

View Audit 342835 Questioned Costs: $1

Finding 523542 (2023-005)

Material Weakness 2023

Alternatives, Inc.

IL

Questioned Costs Allowable Costs / Cost Principles § 200.430

Due to limited staffing resources, the Organization was not able to ensure maintenance of adequate documentation. The Organization conducted a review after the completion of the year end to ensure reconcile the total amounts charged to the grant back to accounting records to ensure compliance, howev...

Due to limited staffing resources, the Organization was not able to ensure maintenance of adequate documentation. The Organization conducted a review after the completion of the year end to ensure reconcile the total amounts charged to the grant back to accounting records to ensure compliance, however, this was not done in a timely enough manner to correct for misstatements. In the future the Organization will review support and reconcile on a more frequent basis.

View Audit 342835 Questioned Costs: $1

Finding 523471 (2023-002)

Material Weakness 2023

East Liverpool City School District

OH

Questioned Costs Procurement, Suspension & Debarment Subrecipient Monitoring § 200.421 § 200.439 § 200.516

We have reviewed the qualifications for allowable expenses classified as supplies versus capital expenditures that of a 600 code with ODE CCIP representatives for project relate cash requests as well as getting pre-approval if varying from the budget details request.

View Audit 342736 Questioned Costs: $1

Finding 523399 (2023-001)

Material Weakness 2023

Houston Recovery Center, Lgc

TX

Allowable Costs / Cost Principles

Finding #2023-001 – Material Weakness and Material Noncompliance. Major federal programs: U. S. Department of Treasury, Assistance Listing #21.027, COVID-19 Coronavirus State and Local Fiscal Recovery Funds, Passed through Harris County, Texas, Contract #220163, Contract year: 12/01/22 – 12/31/24, ...

Finding #2023-001 – Material Weakness and Material Noncompliance. Major federal programs: U. S. Department of Treasury, Assistance Listing #21.027, COVID-19 Coronavirus State and Local Fiscal Recovery Funds, Passed through Harris County, Texas, Contract #220163, Contract year: 12/01/22 – 12/31/24, Assistance Listing #93.788, Opioid STR, Passed through the Texas Health and Human Services Commission, Contract #HHS000357900001, Contract years: 09/01/21 – 08/31/22 and 09/01/22 – 08/31/23, Passed through the University of Texas Health Science Center, San Antonio, Contract #HHS000561800001, Contract year: 09/01/21 – 08/31/22. Other federal programs: U. S. Department of Health and Human Services:, Assistance Listing #93.243, Substance Abuse and Mental Health Services Projects of Regional and National Significance, Contract #5H79TI080624-03, Contract year: 09/30/21 – 09/29/22, Contract #5H79TI080624-04, Contract year: 09/30/22 – 09/29/23, Passed through the City of Houston Health Department, Assistance Listing #93.243, Contract #H79SP080300, Contract years: 11/01/21 – 10/31/22, 11/01/22 – 10/31/23 and 06/08/21 – 06/30/23, Assistance Listing #93.959, Block Grants for Prevention and Treatment of Substance Abuse, Passed through the Texas Health and Human Services Commission, Contract #HHS000130500019, Contract years: 09/01/21 – 08/31/22 and 09/01/22 – 08/31/23. Condition and context: Houston Recovery Center has personnel funded by more than one grant award. The responsibilities for each position are examined and an assessment of time needed to perform each assigned task is made. The time allotment is then converted to a percentage of salary, documented on the personnel action form for each employee, and used to create the personnel section of each grant budget. Each grant is charged based on the percentages documented on the personnel action forms. In fiscal 2022, quarterly time studies were utilized to support that the budgeted estimates per the personnel action forms were reasonable and, if needed, adjustments were made in the general ledger. On July 1, 2022, Houston Recovery Center changed third-party payroll processors and the new processor did not provide the capability to charge time to more than one cost center. Therefore, while allocations are still made in the general ledger based on the percentages documented on the employee’s personnel action form, actual time worked by grant/cost center was not tracked. Additionally, a time study was not performed in the year ended June 30, 2023 to evaluate the reasonableness of time charged to the grants. Recommendation: Houston Recovery Center should establish policies and procedures to ensure that grants are charged based on actual time and effort expended. Planned corrective action: Management believes that the grants were reasonably charged in all material respects although the payroll provider was unable to allow us to use actual time and effort. Comparison of fiscal year 2022 actual time and effort with the fiscal year 2022 time studies revealed very small differences. However, Houston Recovery Center is in the process of changing to a payroll software provider where actual time can be tracked to each grant as supported by a timesheet. In addition, Houston Recovery Center is using Time Distribution Sheets (TDSs) where the employee is required to record their hours worked by grants. Training on the TDSs will be completed by November 1, 2023 for all employees on multiple awards as appropriate. TDSs will be turned in weekly and utilized until the payroll conversion is completed and is working as needed. Responsible officer: Leonard Kincaid, Executive Director. Estimated completion date: November 1, 2023.

View Audit 342673

Finding 523391 (2023-005)

Material Weakness 2023

Hope Community Services, Inc.

OK

Questioned Costs Allowable Costs / Cost Principles Matching / Level of Effort / Earmarking § 200.303 § 200.403

Department of Health and Human Services, Passed Through Oklahoma Department of Mental Health and Substance Abuse Services, Block Grants for Community Mental Health Services Listing 93.958, 4529063664/4529063519, 711/2022- 6/30/2023 Allowable Activities or Unallowed and Allowable Costs/Cost Principle...

Department of Health and Human Services, Passed Through Oklahoma Department of Mental Health and Substance Abuse Services, Block Grants for Community Mental Health Services Listing 93.958, 4529063664/4529063519, 711/2022- 6/30/2023 Allowable Activities or Unallowed and Allowable Costs/Cost Principles Material Weakness in Internal Control over Compliance and Material Noncompliance Finding Summary: As part of the audit, Eide Bailly LLP identified that the process for allocating payroll or time worked to respective federal programs was insufficient and did not substantiate allowability under the federal award guidelines. Responsible Individuals: Chief Financial Officer and Chief Human Resources Officer Corrective Action Plan: In December 2024, changes were made to the payroll system to improve tracking of time worked and appropriate allocations to respective federal grant programs. Completion Date: December 2024

View Audit 342657 Questioned Costs: $1

Finding 523390 (2023-004)

Material Weakness 2023

Hope Community Services, Inc.

OK

Matching / Level of Effort / Earmarking Allowable Costs / Cost Principles Cash Management § 200.303 § 200.403

Department of Health and Human Services, Passed Through Substance Abuse and Mental Health Services Administration, Section 223 Demonstration Programs to Improve Community Mental Health Services Listing 93.829, H79SM085287, 8/31/2022- 8/30/2023 Allowable Activities or Unallowed, Allowable Costs/Cost ...

Department of Health and Human Services, Passed Through Substance Abuse and Mental Health Services Administration, Section 223 Demonstration Programs to Improve Community Mental Health Services Listing 93.829, H79SM085287, 8/31/2022- 8/30/2023 Allowable Activities or Unallowed, Allowable Costs/Cost Principles, Cash Management, and Matching, Level of Effort, and Earmarking Material Weakness in Internal Control over Compliance and Material Noncompliance Finding Summary: As part of the audit, Eide Bailly LLP identified that the process for allocating payroll or time worked to respective federal programs was insufficient and did not substantiate allowability under the federal award guidelines. Responsible Individuals: Chief Financial Officer and Chief Human Resources Officer Corrective Action Plan: In December 2024, changes were made to the payroll system to improve tracking of time worked and appropriate allocations to respective federal grant programs. Completion Date: December 2024

View Audit 342657

Finding 523383 (2023-033)

Significant Deficiency 2023

Government of Guam

GU

Reporting Subrecipient Monitoring Allowable Costs / Cost Principles

Finding No.: 2023-033 Reporting Responding Agency: Department of Public Health and Social Services (DPHSS) Responsible Personnel: Theresa Arriola, Director (DPHSS) The Agency acknowledges this finding and recognizes it as an ongoing issue related to the alignment of our reporting with t...

Finding No.: 2023-033 Reporting Responding Agency: Department of Public Health and Social Services (DPHSS) Responsible Personnel: Theresa Arriola, Director (DPHSS) The Agency acknowledges this finding and recognizes it as an ongoing issue related to the alignment of our reporting with the Department of Administration (DOA) financial system. One of the primary challenges arises from transactions that are not processed within the designated reporting period, which impacts on our initial submissions to CMS. Any adjustments or transactions made after the quarter's close, which were not captured in our previous reports, contribute to this issue. We understand that addressing this finding is a critical part of our corrective action measures. We are currently working on updating the existing Standard Operating Procedure (SOP) 2023-01, which governs interactions between the Department of Public Health and Social Services (DPHSS) and DOA/Division of Accounts. Since November 2024, we have been collaborating with DOA to revise this SOP with the goal of reconciling Medicaid and CHIP expenditures, as well as aligning reports from CMS-64 with the new Guam Financial Management Information System (GFMIS). Currently, PMS staff is in the process in finalizing the DRAFT SOP. We intend to have the DRAFT SOP completed and forwarded to DOA by Friday, January 31, 2025. If there are no changes to the SOP, we will work to have the SOP signed by all parties no later than February 14, 2025.

View Audit 342645

Finding 523371 (2023-029)

Significant Deficiency 2023

Government of Guam

GU

Questioned Costs Subrecipient Monitoring Allowable Costs / Cost Principles

Finding No.: 2023-029 Period of Performance Responding Agency: Department of Public Health and Social Services (DPHSS) Responsible Personnel: Theresa Arriola, Director (DPHSS) The agency agrees with the finding and will apply the recommendations moving forward.

View Audit 342645 Questioned Costs: $1

Finding 523340 (2023-002)

Significant Deficiency 2023

Choice in Aging

CA

Subrecipient Monitoring Allowable Costs / Cost Principles Reporting

This condition existed due to multiple payroll systems used during the last two audit periods and untrained personnel. Current staff is fully trained on a new payroll system and capable of maintaining our newly developed processes and controls. Anicipated completion date is at the completion of the ...

This condition existed due to multiple payroll systems used during the last two audit periods and untrained personnel. Current staff is fully trained on a new payroll system and capable of maintaining our newly developed processes and controls. Anicipated completion date is at the completion of the 2024 audit. Responsible contact person is Caitlin Cole, Human Resources manager.

View Audit 342622

Finding 523266 (2023-011)

Material Weakness 2023

Pottawatomie County

OK

Procurement, Suspension & Debarment Subrecipient Monitoring Allowable Costs / Cost Principles

The Board of County Commissioners will work with all County Officials to go over all grants and federal monies that the County receives to ensure that proper internal controls are implemented.

View Audit 342527

Finding 523265 (2023-010)

Material Weakness 2023

Pottawatomie County

OK

Procurement, Suspension & Debarment Subrecipient Monitoring Internal Control / Segregation of Duties

We will work to implement a risk assessment plan. We will implement controls to help make sure we are in compliance with all grant requirements and federal funds are expended in accordance with grant agreements and in a timely manner. We will ensure employees have the current and correct compliance ...

We will work to implement a risk assessment plan. We will implement controls to help make sure we are in compliance with all grant requirements and federal funds are expended in accordance with grant agreements and in a timely manner. We will ensure employees have the current and correct compliance supplement to work from.

View Audit 342527

Finding 523264 (2023-001)

Significant Deficiency 2023

Hospital Comunitario Buen Samaritano, Inc.

PR

Internal Control / Segregation of Duties Allowable Costs / Cost Principles Reporting § 200.512

We agree that we have not been reporting on a timely basis current findings and results. We have established a schedule to ensure that the submission of all required annual reports is strictly adhered to. To this end, we aim to complete the year-end closing within the first 30 days after the end of ...

We agree that we have not been reporting on a timely basis current findings and results. We have established a schedule to ensure that the submission of all required annual reports is strictly adhered to. To this end, we aim to complete the year-end closing within the first 30 days after the end of the calendar year, in order to complete the audit within the first 120 days after the end of the calendar year. This plan was implemented in December 2024. However, because the report for the single audit for December 2023 was already past due by the time of implementation, the positive effects of this plan will be reflected in future reporting periods.

View Audit 342521

Finding 523149 (2023-003)

Material Weakness 2023

Southern Maryland Tri-County Community Action Committee, Inc.

MD

Allowable Costs / Cost Principles

Finding Reference: 2023-003 Views of Responsible Officials and Planned Corrective Actions The Agency agrees with this finding and recommendation as presented. Given this finding, the Agency will review monthly its application of the approved provisional indirect cost rate to all grants, contracts, a...

Finding Reference: 2023-003 Views of Responsible Officials and Planned Corrective Actions The Agency agrees with this finding and recommendation as presented. Given this finding, the Agency will review monthly its application of the approved provisional indirect cost rate to all grants, contracts, and other agreements covered by 2 CFR 200. The agency will proceed in the following scope of work:  Ensure indirect chargers follow the applicable cost principles per 2 CFR 200, Appendix IV, and grant agreement.  Receive permission from funders for indirect charges over the allocation of the indirect costs per the grant agreement. Name of the contact person responsible for corrective action: Michael Young, President, (301) 274-4474. Planned completion date for corrective action plan: December 31, 2025

View Audit 342468

Finding 523139 (2023-005)

Significant Deficiency 2023

Central Minnesota Jobs and Training Services

MN

Internal Control / Segregation of Duties Allowable Costs / Cost Principles Significant Deficiency

MFIP and TANF Youth – Assistance Listing No. 93.558 Recommendation: The Organization should implement a comprehensive documentation retention policy that includes specific procedures for maintaining records supporting the allocation of individual employees' time. This policy should ensure that all r...

MFIP and TANF Youth – Assistance Listing No. 93.558 Recommendation: The Organization should implement a comprehensive documentation retention policy that includes specific procedures for maintaining records supporting the allocation of individual employees' time. This policy should ensure that all relevant documentation, such as timesheets and work allocation records, is retained for the required period and is easily accessible for audit purposes. Additionally, staff responsible for timekeeping and financial recordkeeping should receive training on the importance of documentation retention and the specific requirements under the Uniform Guidance. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: To establish a standardized cost allocation methodology for staff time, CMJTS implemented in-person monthly allocation meetings with the executive team and program managers responsible for programming, staffing, and budget oversight. These meetings provide a thorough review of program expenditures and staff time, ensuring accurate alignment with funding requirements. Conducting payroll allocation reviews in a group setting allows the executive team to validate cost assignments, address changes in percentage allocations across cost categories, and maintain compliance with administrative regulations and funding guidelines. Name(s) of the contact person(s) responsible for corrective action: Jake Humphrey Planned completion date for corrective action plan: Implemented

View Audit 342459

Finding 523138 (2023-004)

Material Weakness 2023

Central Minnesota Jobs and Training Services

MN

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

MFIP and TANF Youth – Assistance Listing No. 93.558 Recommendation: The Organization should implement a comprehensive documentation retention policy that includes specific procedures for maintaining records supporting the calculation of indirect cost allocations. This policy should ensure that all r...

MFIP and TANF Youth – Assistance Listing No. 93.558 Recommendation: The Organization should implement a comprehensive documentation retention policy that includes specific procedures for maintaining records supporting the calculation of indirect cost allocations. This policy should ensure that all relevant documentation is retained for the required period and is easily accessible for audit purposes. Additionally, the Organization should ensure the formal review process for indirect cost allocations is completed to verify their accuracy and compliance with applicable regulations. Staff responsible for financial record-keeping and review should receive training on the importance of documentation retention, review procedures, and the specific requirements under the Uniform Guidance. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: To strengthen our financial recordkeeping, CMJTS will update our Document Retention Policy. This updated policy will introduce detailed guidelines for the management, maintenance, and secure storage of records that support indirect cost allocations, ensuring they are retained for the required period and easily accessible for audits. Additionally, we will establish a structured review process, including quarterly reviews by the accounting team and an annual reconciliation, to verify accuracy and compliance with applicable regulations. Any necessary adjustments will be documented and reviewed by the finance manager. The CMJTS Executive meets monthly to review and calculate indirect cost allocations for all active grants. The established process is to determine total indirect costs (like rent, utilities, administrative salaries) for the agency by location and department and then allocate them across different grants using a calculated "indirect cost rate," which is usually a percentage of the direct costs associated with each program, based on factors like staff time, caseload size, or other relevant allocation bases; this ensures that each program bears a proportional share of the shared overhead expenses. Name(s) of the contact person(s) responsible for corrective action: Jake Humphrey Planned completion date for corrective action plan: Policy updates – 12 months; Indirect Cost Rates process – implemented

View Audit 342459

Corrective Action Plans

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