Corrective Action Plans

Finding 530344 (2024-009)

Significant Deficiency 2024

State of Texas C/o Comptroller of Public Accounts

TX

Allowable Costs / Cost Principles Significant Deficiency § 200.303

Corrective action plan: The Commission’s current Accounts Payable Policy and Procedures Handbook documents voucher processing requirements including “approval to pay” documentation. The Accounts Payable (AP) management of the CFO Central Accounting division conducts a monthly “AP Talk” to update s...

Corrective action plan: The Commission’s current Accounts Payable Policy and Procedures Handbook documents voucher processing requirements including “approval to pay” documentation. The Accounts Payable (AP) management of the CFO Central Accounting division conducts a monthly “AP Talk” to update staff on changes to policy and procedures and provide refresher trainings, as needed. The program approval requirements for voucher payments and associated documentation will be reviewed in the February “AP Talk” for CFO Central Accounting and submitted to the HHSC peripheral accounting departments by the end of February. Implementation dates: February 28, 2025 Responsible persons: David Schneider, Deputy Director, Expenditure Management

View Audit 348386

Finding 530339 (2024-007)

Significant Deficiency 2024

State of Texas C/o Comptroller of Public Accounts

TX

Allowable Costs / Cost Principles Period of Performance Questioned Costs § 200.303 § 200.308 § 200.403

Corrective action plan: Social Services Block Grant (SSBG) Actions Taken: HHSC Fund Management worked with Chief Financial Officer (CFO) Operations Support to develop a query to identify journal transactions that post in the CAPPS Financials General Ledger module prior to the start date of the p...

Corrective action plan: Social Services Block Grant (SSBG) Actions Taken: HHSC Fund Management worked with Chief Financial Officer (CFO) Operations Support to develop a query to identify journal transactions that post in the CAPPS Financials General Ledger module prior to the start date of the project. This query has been run monthly since May 2024, and it was fully implemented as of August 31, 2024. Planned: Additional training on the review process for Accounting and Budget staff, and revisions to the process to emphasize meeting deadlines while new federal grants and old federal grant close out transactions occur. An expenditure transfer voucher (ETV) to correct reconciliation issue will be completed by CFO Budget staff. Block Grants for Community Mental Health Services (MHBG) Actions Taken: HHSC Fund Management will run the monthly query and take corrective action on any resulting journals prior to the close of the fiscal year. In addition, HHSC Fund Management/Cash Management does not draw federal funds past the liquidation date. These dates are denoted in their draw ledgers. Cash Management also sends a semi_x0002_monthly email during the fiscal year and a weekly email from mid-June through the end of July to HHSC Budget identifying transactions by fund source that should be cleared from the draw down report prior to the close of the fiscal year. HHSC Cash Management will continue to send the draw down clean up report and start the weekly emails the first week of June. HHSC Budget will complete any ETVs resulting from the draw down clean up report to HHSC Fund Management General Ledger for processing by July 15 to ensure the draw down accurately reflects federal expenditures for the SEFA population. Planned: Budget Management will revise the coordination process with Behavioral Health Services program financial staff administering MHBG to prioritize addressing encumbered balances on expiring block grant years at the beginning of the liquidation period and set deadlines for Program input on required financial adjustments to ensure sufficient time for processing. ETV to correct reconciliation issue will be completed. Implementation dates: February 28, 2025 Responsible persons: SSBG: Heather Nevill, Fund Management Director, Fund Accounting Raymond Jasik, Budget Director, CFO Budget Heather Anderson, Budget Manager, CFO Budget MHBG: Marcie Ochoa-Gamez, Budget Manager, Budget Management

View Audit 348386 Questioned Costs: $1

Finding 530303 (2024-001)

Significant Deficiency 2024

State of Texas C/o Comptroller of Public Accounts

TX

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

Corrective action plan: DSHS will reinforce new hire training to ensure all supervisors understand the purpose and procedures addressing labor account codes, monthly time reporting, and task profiles. DSHS will further evaluate related training materials for opportunities to strengthen understandi...

Corrective action plan: DSHS will reinforce new hire training to ensure all supervisors understand the purpose and procedures addressing labor account codes, monthly time reporting, and task profiles. DSHS will further evaluate related training materials for opportunities to strengthen understanding and compliance overall. Implementation dates: March 1, 2025 Responsible persons: Christy Havel Burton, Chief Financial Officer

View Audit 348386

Finding 530302 (2024-001)

Significant Deficiency 2024

Habitat for Humanity of New Castle County INC

DE

Allowable Costs / Cost Principles Reporting Cash Management § 200.502

Corrective Action Plan: The unaudited statements were corrected for FY2024 and are reflected in the audited statements. FY2023’s were corrected through the retained earnings that show on the FY2024’s audited statements as well in the prior year’s number on the statements. The FY2024 Single Audit ref...

Corrective Action Plan: The unaudited statements were corrected for FY2024 and are reflected in the audited statements. FY2023’s were corrected through the retained earnings that show on the FY2024’s audited statements as well in the prior year’s number on the statements. The FY2024 Single Audit reflects these changes as well. Management invoices at the times allowed upon the different grant funders based upon percentage of completion of the project/s. We will review all on-going projects at the end of each fiscal year during the audit with the auditors to determine what reporting has to be done in order to comply with the requirements of the requirements of Title 2 U.S. Code of Federal Regulations (CFR) Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards, (Uniform Guidance), Subpart F, Audit Requirements.

View Audit 348385

Finding 530291 (2024-003)

Significant Deficiency 2024

School City of Hobart

IN

Matching / Level of Effort / Earmarking Allowable Costs / Cost Principles § 200.208 § 200.303 § 200.403

FINDING 2024-003 Finding Subject: Special Education Cluster (IDEA) - Earmarking Contact Person Responsible for Corrective Action: Robert Glover Jr. Contact Phone Number: (219) 945-0250 Contact Email Address: rglover@hobart.k12.in.us Views of Responsible Officials: We concur with the finding. Descrip...

FINDING 2024-003 Finding Subject: Special Education Cluster (IDEA) - Earmarking Contact Person Responsible for Corrective Action: Robert Glover Jr. Contact Phone Number: (219) 945-0250 Contact Email Address: rglover@hobart.k12.in.us Views of Responsible Officials: We concur with the finding. Description of Corrective Action Plan: As a member of the Northwest Indiana Special Education Cooperative (NISEC), School City of Hobart reported their proportionate share based on a percentage of expenditures and have had successful audits in doing so. When Hobart was notified that this process was no longer acceptable, we immediately implemented an internal control process with NISEC which included detailed reporting of staff work hours for nonpublic schools related to only our school corporation. The report is then reviewed and signed by the NISEC staff working for the nonpublic school and their supervisor. The employee detailed time and effort report is then provided to the NISEC finance department for a second review and signature before being provided to payroll. NISEC payroll then charges the proportionate share to the IDEA Part B grant in the payroll system bi-weekly based on the time and effort report pertinent to just School City of Hobart Non-public schools. The time and effort reports are then used to submit the reimbursement request to the Department of Education for Hobart’s proportionate share. Anticipated Completion Date: 4/30/2025

View Audit 348381

Finding 530244 (2024-004)

Significant Deficiency 2024

Wyandanch Union Free School District

NY

Internal Control / Segregation of Duties Questioned Costs Allowable Costs / Cost Principles § 200.430

U.S. Department of Education -Passed-through the NYS Education Department Title I Grants to Local Educational Agencies (LEAs); Assistance Listing Number (ALN) 84.010; Project # 's 0021-23-2955, 0011-23-6011, 0011-23-7200, 0011-24-2160, 0021-24-2955, Grant Period Fiscal Year Ended June 30, 2024 U....

U.S. Department of Education -Passed-through the NYS Education Department Title I Grants to Local Educational Agencies (LEAs); Assistance Listing Number (ALN) 84.010; Project # 's 0021-23-2955, 0011-23-6011, 0011-23-7200, 0011-24-2160, 0021-24-2955, Grant Period Fiscal Year Ended June 30, 2024 U.S. Department of Education -Passed-through the NYS Education Department - Education Stabilization Fund COVID-19 - Elementary and Secondary School Emergency Relief (ESSER) Fund; ALN 84.425D; Project #5891-21-2955; Grant Period - Fiscal Year Ended June 30, 2024 COVID-19 - American Rescue Plan - Elementary and Secondary School Emergency Relief (ARP ESSER) Fund; ALN 84.425U; Project 5880-21-2955, 5884-21-2955, 5883-21-2955, 5882-21- 2955; Grant Period -Fiscal Year Ended June 30, 2024 COVID-19 -American Rescue Plan -Elementary and Secondary School Emergency Relief - Homeless Children and Youth; ALN 84.425W; Project#5218-21-2955; Grant Period - Fiscal Year Ended June 30, 2024 Significant Deficiency Compliance Req uirement: Allowable Activities and Cost Principles Criteria: Per Uniform Guidance (2 CFR §200.430), payroll costs charged to federal grants must be supported by appropriate documentation reflecting actual time and effort spent on grant-related activities. Per District policy employees are required to submit Personnel Activity Reports (PARs) to certify time worked on a federal grant. PARs are then required to be reviewed and approved by a direct supervisor. Condition: We identified seventeen (17) instances of missing or incomplete PAR forms for Title I. Six (6) out of (17) employees did not complete a PAR form. Eleven (11) out of (17) did not document supervisor review and approval. For the education stabilization fund the District was unable to provide support for time and effort worked on the grant for eleven (11) employees. Cause: Due to significant changes in personnel and work environments of key employees, the District was unable to maintain adequate oversight over the payroll function. Effect: The District is not in compliance with federal grant requirements and District policy. Questioned Costs: None Recommendation: We recommend the District enhance internal control measures to verify the accuracy and completeness of PARs in a timely manner. We also recommend the District conduct independent reviews of the payroll process and time and effort reporting to verify established controls are functioning as intended. District's Response: The District agrees with this finding. The procedures that are typically followed were not in place during the 2024 school year due to staff changes but the District is back on track and following the correct protocol for the current year and going forward

View Audit 348332

Finding 530226 (2024-003)

Material Weakness 2024

Bloomfield School District

IN

Questioned Costs School Nutrition Programs Allowable Costs / Cost Principles § 200.303

FINDING 2024-003 - Child Nutrition Cluster - Activities Allowed or Unallowed, Allowable Costs/Cost Principles Context: During testing we noted the following issues in a sample of forty child nutrition cluster payroll claims: ● 6 of 40 payroll transactions where a timecard was not completed by the ...

FINDING 2024-003 - Child Nutrition Cluster - Activities Allowed or Unallowed, Allowable Costs/Cost Principles Context: During testing we noted the following issues in a sample of forty child nutrition cluster payroll claims: ● 6 of 40 payroll transactions where a timecard was not completed by the employee to validate their hours worked and the time charged to food service. ● 19 of 40 payroll transactions where the School Corporation was unable to provide supporting documentation for approval of the hourly rate paid to employee. The noncompliance was isolated to the payroll periods through August 4, 2023. The School Corporation corrected the issues starting with the next payroll period. Contact Person Responsible for Corrective Action: Michelle L. Keene Contact Phone Number: (812) 384-4386 Views of Responsible Official: We concur with the finding. Description of Corrective Action Plan: In FY24, the issue was corrected to ensure all employees were only paid for time supported by a time a card and a board approved rate schedule. Anticipated Completion Date: August 19, 2023

View Audit 348324 Questioned Costs: $1

Finding 530222 (2024-002)

Material Weakness 2024

City of Framingham

MA

Allowable Costs / Cost Principles Questioned Costs Material Weakness § 200.430

2024-002 Adult Education - Assistance Listing Number 84.002 Recommendation: We recommend procedures to maintain records that accurately reflect the work performed for payroll charges to the grant be implemented/strengthened. Explanation of disagreement with audit finding: There is no disagreement ...

2024-002 Adult Education - Assistance Listing Number 84.002 Recommendation: We recommend procedures to maintain records that accurately reflect the work performed for payroll charges to the grant be implemented/strengthened. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: The Adult Education department will be collecting the Time and Effort certifications for staff on Federal grants. Name(s) of the contact person(s) responsible for corrective action: Dr. Kevin O’Connor, Claudia Castro Alves and Kate Fiore Planned completion date for corrective action plan: Effective as of 10/10/2024 so will have Time and Effort certifications for all FY25 staff on Federal grant #2340

View Audit 348312 Questioned Costs: $1

Finding 530198 (2024-001)

Significant Deficiency 2024

Catholic Charities Hawaii

HI

Reporting Allowable Costs / Cost Principles Significant Deficiency

Beginning with the audited consolidated financial statements of Catholic Charities Hawaii for the year ended June 30, 2024, the Controller will ensure that each contract awarded and received is thoroughly analyzed prior to assigning a fund source. This control will properly identify federal funds th...

Beginning with the audited consolidated financial statements of Catholic Charities Hawaii for the year ended June 30, 2024, the Controller will ensure that each contract awarded and received is thoroughly analyzed prior to assigning a fund source. This control will properly identify federal funds that are to be reported on the SEFA.

View Audit 348304

Finding 530181 (2024-032)

Significant Deficiency 2024

State of Arkansas

AR

Questioned Costs Allowable Costs / Cost Principles Eligibility

Views of Responsible Officials and Planned Corrective Action: DHS concurs with this finding. For Sample Item 17, the screening activities associated with the revalidation were completed prior to the revalidation date through the Provider Enrollment, Chain, and Ownership System (PECOS). The provider ...

Views of Responsible Officials and Planned Corrective Action: DHS concurs with this finding. For Sample Item 17, the screening activities associated with the revalidation were completed prior to the revalidation date through the Provider Enrollment, Chain, and Ownership System (PECOS). The provider submitted their revalidation application timely, but during the revalidation process the agency requested corrections and clarifications of administrative and tax information. This delayed the final component of the screening, the site visit, until July 15, 2024. For Sample Item 22, DMS confirms there was no W-9 dated prior to February 7, 2024. The primary function of the W-9 form is to confirm the providers name, address, and tax information. This information was already listed in MMIS during the date in question. The W-9 submitted by the provider on April 4, 2024, confirmed the accuracy of the information in MMIS that the provider has used since its initial enrollment on July 20, 1981. DMS is developing a mechanism to obtain information provided on W-9’s by utilizing an electronic process through the provider portal during enrollment. Anticipated Completion Date: June 30, 2025 Contact Person: Elizabeth Pitman Director, Division of Medical Services Department of Human Services 700 Main Street Little Rock, AR 72201 (501) 244-3944 Elizabeth.Pitman@dhs.arkansas.gov

View Audit 348267

Finding 530175 (2024-026)

Significant Deficiency 2024

State of Arkansas

AR

Questioned Costs Allowable Costs / Cost Principles

Views of Responsible Officials and Planned Corrective Action: DHS concurs with this finding and that cost allocation is the most appropriate means for funding this work. DHS has implemented corrective action effective July 1, 2024, to change payment for Managerial Accounting services from 100% Medi...

Views of Responsible Officials and Planned Corrective Action: DHS concurs with this finding and that cost allocation is the most appropriate means for funding this work. DHS has implemented corrective action effective July 1, 2024, to change payment for Managerial Accounting services from 100% Medicaid funding to a cost allocation methodology. Future contracts and contract extensions executed by the Office of Finance will be evaluated by the DHS Chief Financial Officer to determine the nature of work performed for each contract and specify the appropriate method of allocating costs for services. Anticipated Completion Date: Complete Contact Person: Renee Ikard Chief Financial Officer Department of Human Services 700 Main Street Little Rock, AR 72201 (501) 682-8985 Renee.Ikard@dhs.arkansas.gov

View Audit 348267 Questioned Costs: $1

Finding 530171 (2024-023)

Significant Deficiency 2024

State of Arkansas

AR

Questioned Costs Student Financial Aid Subrecipient Monitoring

Views of Responsible Officials and Planned Corrective Action: DHS concurs with this finding. Corrections have been made to the affected quarterly reports for SFY2024. New program codes for Placement and Residential Licensing expenditures were not included in prior reporting for Administrative Costs...

Views of Responsible Officials and Planned Corrective Action: DHS concurs with this finding. Corrections have been made to the affected quarterly reports for SFY2024. New program codes for Placement and Residential Licensing expenditures were not included in prior reporting for Administrative Costs. Documented procedures for quarterly financial reporting will be revised to include more specific instructions for reporting expenditures and additional levels of review prior to report submission. Additional training on completion of quarterly financial reporting is being developed for DCFS Finance and Managerial Accounting-Grants Management staff. Anticipated Completion Date: April 30, 2025 Contact Person: Tiffany Wright Director, Division of Children and Family Services Department of Human Services 700 Main Street Little Rock, AR 72201 (501) 396-6477 Tiffany.Wright@dhs.arkansas.gov

View Audit 348267

Finding 530169 (2024-021)

Significant Deficiency 2024

State of Arkansas

AR

Questioned Costs Allowable Costs / Cost Principles Eligibility

Views of Responsible Officials and Planned Corrective Action: DHS concurs with this finding. The DHS Accounts Receivables Unit is developing documented procedures and controls addressing the process for entering adoption subsidy overpayments into the agency’s accounts receivable system (AROPTS) and ...

Views of Responsible Officials and Planned Corrective Action: DHS concurs with this finding. The DHS Accounts Receivables Unit is developing documented procedures and controls addressing the process for entering adoption subsidy overpayments into the agency’s accounts receivable system (AROPTS) and DCFS is updating documented procedures and training on reporting of collected overpayments to the Accounts Receivable Unit. System changes are also in process for AROPTS that will pull the adjusted balance for overpayments when a notice is being created. Anticipated Completion Date: April 30, 2025 Contact Person: Renee Ikard Chief Financial Officer Department of Human Services 700 Main Street Little Rock, AR 72201 (501) 682-8985 Renee.Ikard@dhs.arkansas.gov

View Audit 348267 Questioned Costs: $1

Finding 530168 (2024-020)

Material Weakness 2024

State of Arkansas

AR

Reporting Student Financial Aid Subrecipient Monitoring

Views of Responsible Officials and Planned Corrective Action: DHS concurs with this finding. Corrections have been made to the affected quarterly reports for SFY2024. New program codes for Placement and Residential Licensing expenditures were not included in prior reporting for Administrative Costs...

Views of Responsible Officials and Planned Corrective Action: DHS concurs with this finding. Corrections have been made to the affected quarterly reports for SFY2024. New program codes for Placement and Residential Licensing expenditures were not included in prior reporting for Administrative Costs. Documented procedures for quarterly financial reporting will be revised to include more specific instructions for reporting expenditures and additional levels of review prior to report submission. Additional training on completion of quarterly financial reporting is being developed for DCFS Finance and Managerial Accounting-Grants Management staff. Anticipated Completion Date: April 30, 2025 Contact Person: Tiffany Wright Director, Division of Children and Family Services Department of Human Services 700 Main Street Little Rock, AR 72201 (501) 396-6477 Tiffany.Wright@dhs.arkansas.gov

View Audit 348267

Finding 530155 (2024-007)

Material Weakness 2024

State of Arkansas

AR

Subrecipient Monitoring Allowable Costs / Cost Principles Questioned Costs § 200.400 § 200.403

Views of Responsible Officials and Planned Corrective Action: Moving forward the Department will require recipients to provide a list of invoices with the invoice date, period of performance, invoice amount and amount requested/disbursed from ARPA and/or other funding sources to be included with eac...

Views of Responsible Officials and Planned Corrective Action: Moving forward the Department will require recipients to provide a list of invoices with the invoice date, period of performance, invoice amount and amount requested/disbursed from ARPA and/or other funding sources to be included with each disbursement request. Staff training will be modified to ensure staff understand allowable expenditures and period of performance restrictions. Anticipated Completion Date: June 30, 2025 Contact Person: Debby Dickson Water Development Division Manager Arkansas Department of Agriculture-Natural Resources Division 1 Natural Resources Drive Little Rock, AR 72205 (501) 225-1598 Debra.Dickson@agriculture.arkansas.gov

View Audit 348267 Questioned Costs: $1

Finding 530154 (2024-006)

Material Weakness 2024

State of Arkansas

AR

Subrecipient Monitoring Allowable Costs / Cost Principles Cash Management § 200.403

Views of Responsible Officials and Planned Corrective Action: ASBO will work with our 3rd party program administrator to re-emphasize the importance of verifying the expenses for adequate supporting documentation and allowability. We will discuss the possibility of a repeat training with all federa...

Views of Responsible Officials and Planned Corrective Action: ASBO will work with our 3rd party program administrator to re-emphasize the importance of verifying the expenses for adequate supporting documentation and allowability. We will discuss the possibility of a repeat training with all federal grant subrecipients. Anticipated Completion Date: August 1, 2025 Contact Person: Glen Howie, Jr. Director, Ark State Broadband Office Department of Commerce 1 Commerce Way Little Rock, AR 72202 (501) 682-1123 Glen.Howie@Arkansas.gov

View Audit 348267 Questioned Costs: $1

Finding 530153 (2024-005)

Significant Deficiency 2024

State of Arkansas

AR

Cash Management Questioned Costs Subrecipient Monitoring § 200.303 § 200.400

Views of Responsible Officials and Planned Corrective Action: The Arkansas Department of Education (ADE), Division of Elementary and Secondary Education (DESE), Health and Nutrition Unit (HNU), concur with the finding. The HNU Finance staff implemented procedures for meal claim payment requests whic...

Views of Responsible Officials and Planned Corrective Action: The Arkansas Department of Education (ADE), Division of Elementary and Secondary Education (DESE), Health and Nutrition Unit (HNU), concur with the finding. The HNU Finance staff implemented procedures for meal claim payment requests which include an initial and final review of all requests to be conducted by two (2) staff. The review process includes, but is not limited to, ensuring expenditures are assigned correct codes related to the appropriate funding source within the appropriate grant year, mitigating the Child Nutrition Program (CNP), Child and Adult Care Food Program (CACFP) Sponsor Administrative expenditure errors going forward. When the request is determined to be compliant, the Associate Director of Finance and Training approves payments before being forwarded to the ADE Finance team for payment. Anticipated Completion Date: March 15, 2025 Contact Person: Sheila Chastain Associate Director Arkansas Department of Education, DESE, Nutrition Services #4 Capitol Mall, Box #12 Little Rock, AR 72201 (501) 324-9502 Sheila.Chastain@ade.arkansas.gov Pamela Burton Director Arkansas Department of Education, DESE, Nutrition Services #4 Capitol Mall, Box #19 Little Rock, AR 72201 (501) 320-8978 Pamela.Burton@ade.arkansas.gov

View Audit 348267 Questioned Costs: $1

Finding 530152 (2024-004)

Significant Deficiency 2024

State of Arkansas

AR

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

Views of Responsible Officials and Planned Corrective Action: The Arkansas Department of Education (ADE), Division of Elementary and Secondary Education (DESE), Health and Nutrition Unit (HNU), concur with the finding. The HNU implemented a new application and payment system that began in 2024. Du...

Views of Responsible Officials and Planned Corrective Action: The Arkansas Department of Education (ADE), Division of Elementary and Secondary Education (DESE), Health and Nutrition Unit (HNU), concur with the finding. The HNU implemented a new application and payment system that began in 2024. During implementation and subsequent operations, several issues with data transfers between the old and new system were identified and now corrected. The HNU Application and Finance staff will receive training to ensure that all criteria are met prior to the retroactive payment of claims. Anticipated Completion Date: April 1, 2025 Contact Person: Sheila Chastain Associate Director Arkansas Department of Education, DESE, Nutrition Services #4 Capitol Mall, Box #12 Little Rock, AR 72201 (501) 324-9502 Sheila.Chastain@ade.arkansas.gov Pamela Burton Director Arkansas Department of Education, DESE, Nutrition Services #4 Capitol Mall, Box #19 Little Rock, AR 72201 (501) 320-8978 Pamela.Burton@ade.arkansas.gov

View Audit 348267 Questioned Costs: $1

Finding 530139 (2024-001)

Material Weakness 2024

Manchester School District

NH

Internal Control / Segregation of Duties Questioned Costs Subrecipient Monitoring

Audit Finding Reference: 2024-001 Management’s Response and Planned Corrective Action: The District has historically managed our Title I grant as supplemental funding. Although we have a methodology for allocating local funds to schools without regard to whether they receive Title I funds, we do n...

Audit Finding Reference: 2024-001 Management’s Response and Planned Corrective Action: The District has historically managed our Title I grant as supplemental funding. Although we have a methodology for allocating local funds to schools without regard to whether they receive Title I funds, we do not have a formal written plan. The District will establish a written procedure to be in compliance with the Title I Supplement, Not Supplant requirement. Name of Contact Person and Completion Date: Karen DeFrancis, Executive Director of Finance Polly Golden, Title I Manager Anticipated Completion Date – March 31, 2025

View Audit 348254 Questioned Costs: $1

Finding 530127 (2024-002)

Significant Deficiency 2024

Collegiate Edu-Nation

TX

Questioned Costs Allowable Costs / Cost Principles Cash Management

Finding 2024-002: Allowable costs and activities – significant deficiency in internal controls over compliance. Management Response Finding: Failure to Provide an Itemized Receipt for a Restaurant Purchase Corrective Action Taken: Effective July 1, 2024, CEN implemented Ramp, an expense management p...

Finding 2024-002: Allowable costs and activities – significant deficiency in internal controls over compliance. Management Response Finding: Failure to Provide an Itemized Receipt for a Restaurant Purchase Corrective Action Taken: Effective July 1, 2024, CEN implemented Ramp, an expense management platform that ensures all purchases are documented with proper receipts before being charged to the grant. This solution directly addresses the issue of missing itemized receipts and ensures compliance with federal grant requirements. Steps Implemented: • Mandatory Receipt Submission: All purchases, including restaurant transactions, require an itemized receipt to be uploaded into Ramp before the expense can be approved. • Approval Before Grant Charging: An approver must review the itemized receipt to verify that no prohibited items were purchased before allowing the expense to be charged to the grant. • Grant Compliance Review: If an itemized receipt is not provided or contains unallowable expenses, the charge will not be allocated to the grant and must be covered by a non-grant funding source. • Training & Compliance: All employees who make purchases with grant funds have been trained on the requirement for itemized receipts and the consequences of non-compliance. Responsible Party: Kendall Guynes, CFO Completion Date: July 1, 2024 (Fully Implemented) Parties Responsible: Chief Executive Officer President Chief Financial Officer Business Manager The Corrective Action Plan is currently in place and was implemented on July 1, 2024.

View Audit 348223

Finding 530126 (2024-001)

Material Weakness 2024

Collegiate Edu-Nation

TX

Questioned Costs Procurement, Suspension & Debarment Allowable Costs / Cost Principles

Finding 2024-001: Allowable costs and activities – material weakness in internal controls over compliance and compliance finding. Management Response Finding: Lack of Documented Approval for Purchases. Corrective Action Taken: Effective July 1, 2024, CEN implemented Ramp, an expense management platf...

Finding 2024-001: Allowable costs and activities – material weakness in internal controls over compliance and compliance finding. Management Response Finding: Lack of Documented Approval for Purchases. Corrective Action Taken: Effective July 1, 2024, CEN implemented Ramp, an expense management platform that ensures all purchases are documented and approved before processing. Ramp provides an automated and auditable approval workflow, ensuring compliance with federal grant requirements. Steps Implemented: • Centralized Purchasing System: All purchases are now made within Ramp using a Ramp credit card, ensuring complete oversight and control over spending. • Automated Approval Workflow: Each purchase requires approval within Ramp, and approvals are documented digitally, creating an auditable trail. • Receipt Verification: Every purchase must include a receipt, which the approver reviews before granting final approval. • Grant Compliance Review: Any charges that do not meet grant requirements are not charged to the grant and are instead assigned to an appropriate non-grant funding source. • Training & Compliance: All relevant staff members have been trained on Ramp’s approval and compliance procedures to ensure adherence to purchasing protocols. Responsible Party: Kendall Guynes, CFO Completion Date: July 1, 2024 (Fully Implemented)

View Audit 348223

Finding 530119 (2024-001)

Significant Deficiency 2024

Saving Grace

OR

Questioned Costs Procurement, Suspension & Debarment Allowable Costs / Cost Principles § 200.324

Management acknowledges the auditor’s finding and agrees with the recommendation. The Organization has developed a Corrective Action Plan to ensure compliance with procurement regulations and strengthen internal controls. This plan outlines specific steps to prevent future occurrences and maintain a...

Management acknowledges the auditor’s finding and agrees with the recommendation. The Organization has developed a Corrective Action Plan to ensure compliance with procurement regulations and strengthen internal controls. This plan outlines specific steps to prevent future occurrences and maintain adherence to federal requirements. The Finance Committee has thoroughly reviewed this finding, and the Board of Directors has subsequently approved the audit, the Organization’s response, and the Corrective Action Plan. Regarding the finding, the Organization paid the amount agreed upon during contract negotiations. The issue identified pertains to the billing methodology rather than the appropriateness of the cost itself. The cost-plus method is a common practice in our geographical area, and the overall project cost was determined to be fair and consistent with industry standards. Moving forward, the Organization is implementing additional internal review procedures to ensure compliance with all federal procurement requirements.

View Audit 348173 Questioned Costs: $1

Finding 530113 (2024-002)

Significant Deficiency 2024

Home Healthcare, Hospice & Community Service, Inc. & Affiliate

NH

Allowable Costs / Cost Principles Questioned Costs Procurement, Suspension & Debarment

The Accounting Manager will educate the Senior Management Team so that all departments are aware of this finding and the steps to prevent its recurrence. The Accounting Manager will work in conjunction with the Director of Finance and Community Based Programs Billing Specialist to ensure all expendi...

The Accounting Manager will educate the Senior Management Team so that all departments are aware of this finding and the steps to prevent its recurrence. The Accounting Manager will work in conjunction with the Director of Finance and Community Based Programs Billing Specialist to ensure all expenditures being charged to a grant are allowable based on Federal Cost Principles. A document was created and will be used when a client is a recipient of goods or services that fall under grant funding. The form will be completed, signed, and uploaded to Matrix and/or QuickBase for tracking purposes. Responsible Party: Judy Arellano Accounting Manager 603-352-2253 Anticipated Completion Date: 4/30/25

View Audit 348160 Questioned Costs: $1

Finding 530079 (2024-002)

Significant Deficiency 2024

Lacasa

MI

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

The Organization concurs with the finding and has already begun the process of developing a method of allocating shelter and hotline staff based on actual services provided and implementing regular training sessions for all staff involved in grant funded programs. Anticipated completion date is June...

The Organization concurs with the finding and has already begun the process of developing a method of allocating shelter and hotline staff based on actual services provided and implementing regular training sessions for all staff involved in grant funded programs. Anticipated completion date is June 30, 2025.

View Audit 348130

Finding 530067 (2024-069)

Material Weakness 2024

State of Nebraska

NE

Allowable Costs / Cost Principles Questioned Costs § 200.303 § 200.403 § 200.511

Program: AL 21.027 – COVID-19 – Coronavirus State and Local Fiscal Recovery Funds – Allowability Corrective Action Plan: DHHS has implemented a process to obtain signed legal affidavits from all recipients attesting to using the employee retention and recruitment funds in accordance with state a...

Program: AL 21.027 – COVID-19 – Coronavirus State and Local Fiscal Recovery Funds – Allowability Corrective Action Plan: DHHS has implemented a process to obtain signed legal affidavits from all recipients attesting to using the employee retention and recruitment funds in accordance with state and federal law. Additionally, the department subsequently requested and received supporting documentation of expenditures from all samples selected by the APA, supporting allowable use of the funds distributed. The Department will request documentation of expenditures for SFY25 payments made under this program for a sample of recipients for final payments received as part of LB1014 in SFY25. The State Fair Board contract with NDEE is ongoing and the change in the calculated tourism loss amount will result in tourism loss section and Clean Water (all other) section contractual revisions (offsetting adjustments). No additional impact or follow up action noted. Contact: Philip Olsen Anticipated Completion Date: January 31, 2025

View Audit 348113 Questioned Costs: $1

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