Corrective Action Plans

Finding 525250 (2024-002)

Significant Deficiency 2024

TN

Questioned Costs Allowable Costs / Cost Principles Reporting

Management agrees with the finding. The College is in the process of identifying an Enterprise Resource Planning system with a finance module to implement that will facilitate accounting for grants and strengthen internal controls. In the interim, management will restructure the general ledger in th...

Management agrees with the finding. The College is in the process of identifying an Enterprise Resource Planning system with a finance module to implement that will facilitate accounting for grants and strengthen internal controls. In the interim, management will restructure the general ledger in the current system to identify and classify appropriate costs and allocate through monthly journal entries. Monthly monitoring will take place and adjustments made when needed as a part of the month-end closing process.

View Audit 344463

Finding 525196 (2024-002)

None 2024

Heart of Oregon Corps, Inc.

OR

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

Corrective Action: During a period of staff transition in a Program Director role, travel was arranged for a group on a grant-approved training trip, which included several program participants. When the airline tickets were purchased, one participant whose activities and enrollment were part of a ...

Corrective Action: During a period of staff transition in a Program Director role, travel was arranged for a group on a grant-approved training trip, which included several program participants. When the airline tickets were purchased, one participant whose activities and enrollment were part of a different funding source within the same overall program was mistakenly included in this group. This oversight was not caught by program staff at the time, and the member participated in the trip. The issue was identified during the audit, promptly corrected by staff, and the grant funder was refunded for the expense in January 2025, prior to the audit’s completion. Additionally, the process for vetting participants for such trips has been revised to include regular reviews of enrollment status, both at the time of airfare purchase, but also at the time of travel. Program staff will more regularly and actively provide fiscal staff current enrollment information, which will be cross-referenced during both the AP and cost allocation entry, and during the reimbursement A/R invoicing process, to ensure cost allowability. Anticipated Completion Date February 2025

View Audit 344410

Finding 525195 (2024-001)

Material Weakness 2024

Eastbrook Community School Corporation

IN

Allowable Costs / Cost Principles Questioned Costs Subrecipient Monitoring § 200.303

Context: For testing of activities allowed and unallowed, a sample of 21 vendor vouchers were selected for testing. Two vouchers totaling $61,841 were related to disbursements for floor replacement costs incurred and charged to the ESSER III grant award. The School Corporation received approval fr...

Context: For testing of activities allowed and unallowed, a sample of 21 vendor vouchers were selected for testing. Two vouchers totaling $61,841 were related to disbursements for floor replacement costs incurred and charged to the ESSER III grant award. The School Corporation received approval from the Indiana Department of Education (IDOE) through the grant application to utilize a portion of the ESSER II grant award for floor replacement throughout the School Corporation. During the audit period, the School Corporation had $88,600 that was disbursed and reported on the SEFA for ESSER II and $142,400 that was disbursed and reported on the SEFA for ESSER III for floor replacement. The School Corporation did not receive approval from the Indiana Department of Education (IDOE) to use ESSER III funding for the flooring project as required for construction or remodeling related projects. The total amount of the flooring project funded by the ESSER III grant, including amounts paid prior to the audit, was $219,992. The portion of the flooring project paid by the ESSER II grant was $163,000 which was properly approved by IDOE. Contact Person Responsible for Corrective Action: Lisa Baker, Business Manager Contact Phone Number: 765-664-0624 Views of Responsible Official: We concur with the finding. Description of Corrective Action Plan: The School Corporation will put a system in place to ensure that each grant application is printed in its entirety, including the narratives, and file them in the appropriate grant files maintained by the business manager. The business manager will verify that the agreed upon expenditures are included in the grant application before any orders are placed or purchases are approved. Additionally, accounting descriptions set up in the financial software will better reflect IDOE-approved expenditures. Anticipated Completion Date: February 25, 2025

View Audit 344409 Questioned Costs: $1

Finding 525189 (2024-001)

Material Weakness 2024

Child & Family Services of Northwestern Michigan, Inc.

MI

Allowable Costs / Cost Principles Cash Management Material Weakness § 200.403

Management's Response: The Organization acknowledges the finding and agrees with the auditors' recommendations. We recognize the importance of maintaining accurate documentation and financial controls to ensure compliance with federal regulations. To address the finding, the Organization will implem...

Management's Response: The Organization acknowledges the finding and agrees with the auditors' recommendations. We recognize the importance of maintaining accurate documentation and financial controls to ensure compliance with federal regulations. To address the finding, the Organization will implement the following corrective actions: 1) Journalizing administrative allocations - effective March 31, the Organization will implement a procedure to allocate administrative costs to each applicable federal award program through monthly journal entries within the general ledger. 2) Improved documentation retention - the Organization will establish a process to retain supporting documentation for all costs submitted for reimbursement, ensuring alignment between the general ledger and reimbursement requests. 3) Internal controls for expense classification - the Organization will implement additional controls to prevent expenses from being reclassified within the general ledger after reimbursement requests have been submitted. Any necessary adjustments will be documented with a clear audit trail. These corrective actions will be fully implemented by March 31, 2025, will include and cover all such costs from the start of the fiscal year which began October 1, 2024, and management will monitor compliance to ensure ongoing adherence to these procedures.

View Audit 344405

Finding 525186 (2024-001)

Material Weakness 2024

Readyct, Inc.

CT

Allowable Costs / Cost Principles

Coronavirus State and Local Fiscal Recovery Funds – Assistance Listing No. 21.027 Recommendation: ReadyCT, Inc. should formalize a process of employee documentation of time and effort for the award as well as supervisor review over allocations to the award to ensure that allocations are based on ac...

Coronavirus State and Local Fiscal Recovery Funds – Assistance Listing No. 21.027 Recommendation: ReadyCT, Inc. should formalize a process of employee documentation of time and effort for the award as well as supervisor review over allocations to the award to ensure that allocations are based on actual time and effort. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: Management will formalize the documentation process over allocation of time to the award to ensure only actual time worked on the award is charged to the awards. Name of the contact person responsible for corrective action: Shannon Marimón, Executive Director Planned completion date for corrective action plan: February 1, 2025 If the U.S. Department of the Treasury has questions regarding this schedule, please call Shannon Marimón at 650-400-2076.

View Audit 344404

Finding 525149 (2024-002)

Significant Deficiency 2024

Indigenous Peoples Task Force

MN

Allowable Costs / Cost Principles § 200.430

2024-002: Payroll Timecard Approval Federal Departments: Department of Health and Human Services Assistance Listing #: 93.612 and 93.959 Compliance and Internal Controls Significant Deficiency Category of Finding – Allowable Costs/ Cost Principles Name of contact person – Sharon Day, Executive Di...

2024-002: Payroll Timecard Approval Federal Departments: Department of Health and Human Services Assistance Listing #: 93.612 and 93.959 Compliance and Internal Controls Significant Deficiency Category of Finding – Allowable Costs/ Cost Principles Name of contact person – Sharon Day, Executive Director Corrective action – IPTF has hired and assigned an experienced individual within the organization who has the responsibility of reviewing and approving the Executive Director's timecard prior to processing. Completion date – Management and the Board of Directors implemented the above as of February 2024.

View Audit 344389

Finding 525102 (2024-003)

None 2024

D'youville University

NY

Questioned Costs Student Financial Aid Allowable Costs / Cost Principles

The University experienced significant staffing turnover in the financial aid department during the 2023-2024 aid year, resulting in certain established processes to go unfollowed. In June 2024, the University hired a full-time outsourced staffing solution, which has added headcount and stabilized t...

The University experienced significant staffing turnover in the financial aid department during the 2023-2024 aid year, resulting in certain established processes to go unfollowed. In June 2024, the University hired a full-time outsourced staffing solution, which has added headcount and stabilized the department staffing. The Director has established clear roles and responsibilities so that established processes are not missed going forward. Additionally, job duties have been reallocated to ensure calculations on official and unofficial withdrawals, exit counseling communications and FDL and Pell reconciliations are done monthly going forward. Both the FDL and Pell programs were closed out timely for 2023-2024.

View Audit 344382

Finding 525094 (2024-004)

None 2024

D'youville University

NY

Student Financial Aid Allowable Costs / Cost Principles Reporting

The University experienced significant staffing turnover in the financial aid department during the 2023-2024 aid year, resulting in certain established processes to go unfollowed. In June 2024, the University hired a full-time outsourced staffing solution, which has added headcount and stabilized t...

The University experienced significant staffing turnover in the financial aid department during the 2023-2024 aid year, resulting in certain established processes to go unfollowed. In June 2024, the University hired a full-time outsourced staffing solution, which has added headcount and stabilized the department staffing. The Director has established clear roles and responsibilities so that established processes are not missed going forward. Additionally, job duties have been reallocated to ensure calculations on official and unofficial withdrawals and exit counseling communications are done monthly going forward.

View Audit 344382

Finding 525081 (2024-002)

Material Weakness 2024

The Salvation Army Chicago City Fund

IL

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

Finding 2024‐002: Allowable Costs/Cost Principles (Material Weakness and Noncompliance) Condition: For individuals charged to this program who also have time charged to other programs there were no timesheets or other evidence to support the allocation to the program was based on actual time incurre...

Finding 2024‐002: Allowable Costs/Cost Principles (Material Weakness and Noncompliance) Condition: For individuals charged to this program who also have time charged to other programs there were no timesheets or other evidence to support the allocation to the program was based on actual time incurred to the program but was instead based on the budgeted amounts for those individuals. Corrective Action Planned: -All individuals assigned to multiple contracts will keep time logs of hours workedon each, with a monthly review that the hours align with the budgeted amounts. -In the event hours diverge, workload will be adjusted or a budget adjustment will be requested. Anticipated Completion Date: February 1, 2025 Name of Contact Person Responsible for the Plan: Kimberly Atwood Lepse, Divisional Director of Finance

View Audit 344366 Questioned Costs: $1

Finding 524952 (2024-001)

Material Weakness 2024

Queen Anne's County, Maryland

MD

Allowable Costs / Cost Principles Questioned Costs Cash Management § 200.303

Recommendation: We recommend all reimbursements and payments be reviewed in detail to ensure no payments are funding unallowable costs. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: Going forward, the county w...

Recommendation: We recommend all reimbursements and payments be reviewed in detail to ensure no payments are funding unallowable costs. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: Going forward, the county will implement a more thorough review process for expenditures that were initially paid by a separate entity and subsequently reimbursed by us, ensuring all such transactions are properly documented and compliant with grant guidelines. Name of contact person responsible for corrective action: Jeffrey Rank, Director, Office of Budget & Finance Planned completion date for corrective action plan: February 28, 2025

View Audit 344295

Finding 524897 (2024-002)

Significant Deficiency 2024

Town of Coventry, Connecticut

CT

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

UNITED STATES DEPARTMENT OF THE TREASURY 2024-002 COVID-19 – American Rescue Plan Act – Assistance Listing No. 21.027 Recommendation: We recommend that the Town review its procedures over grant reporting requirements to ensure all reports are reviewed and documentation of that review is retained. ...

UNITED STATES DEPARTMENT OF THE TREASURY 2024-002 COVID-19 – American Rescue Plan Act – Assistance Listing No. 21.027 Recommendation: We recommend that the Town review its procedures over grant reporting requirements to ensure all reports are reviewed and documentation of that review is retained. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: Although there were no errors in the reporting, to ensure efficiencies, staff other than the Finance Director will review grant reporting and sign off before it is submitted. Name(s) of the contact person(s) responsible for corrective action: Julie Chapman Planned completion date for corrective action plan: February 1, 2025

View Audit 344253

Finding 524881 (2024-002)

Significant Deficiency 2024

East Windsor Regional School District

NJ

Allowable Costs / Cost Principles Internal Control / Segregation of Duties Questioned Costs § 200.403 § 200.430

Cross training will occur between the BA, Assistant BA and the Senior Accountant. In the event of extended vacancies or absences, multiple staff members will be trained on filing correct final reports.

View Audit 344245 Questioned Costs: $1

Finding 524862 (2024-001)

Significant Deficiency 2024

Family Voices

MA

Allowable Costs / Cost Principles

Corrective action plan: Beginning in the pay period of October 2024, the new Finance Director issued a memo of accounting policy change. The memo outlined the deficiencies in both the payroll allocation method as well as the cause and effect of other allocations that used time and effort as the allo...

Corrective action plan: Beginning in the pay period of October 2024, the new Finance Director issued a memo of accounting policy change. The memo outlined the deficiencies in both the payroll allocation method as well as the cause and effect of other allocations that used time and effort as the allocation method. The policy was put into effect in October 2024 with plans to recalculate the allocations that occurred prior to that time frame within the 2025 Fiscal Year. The new allocation method has been implemented and as of December 2, 2024 the organization is in compliance with the standards of allowable cost grants. Personnel responsible for corrective action plan: Smythe Kannapell, CPA Estimated corrective action completion date: October 2024

View Audit 344229

Finding 524822 (2024-001)

Significant Deficiency 2024

The College of New Jersey

NJ

Subrecipient Monitoring Reporting Internal Control / Segregation of Duties § 200.403 § 200.430

Corrective Action Plan for Current Year Findings June 30, 2024 Finding 2024-001: Activities Allowed or Unallowed Research and Development Cluster Award Period: July 1, 2023 – June 30, 2024 Responsible Person: Karen Miller, Controller 609-771-2203 Jeanette Vega, Director of Grant Financial Administra...

Corrective Action Plan for Current Year Findings June 30, 2024 Finding 2024-001: Activities Allowed or Unallowed Research and Development Cluster Award Period: July 1, 2023 – June 30, 2024 Responsible Person: Karen Miller, Controller 609-771-2203 Jeanette Vega, Director of Grant Financial Administration 609-771-2847 Corrective Action Plan: For the fiscal year ending June 30, 2024, the College had 7 employees with a combined total of 10 payroll instances with no effort verification form certified for any of the transactions from July 1, 2023, to December 31, 2023, in the fiscal year being audited. The effort was certified after the fiscal year, as part of the year-end process which was not in line with the semi-annually time frames as historically done with guidance in our Effort Verification Operating Policy. The College recognizes the importance of ensuring that labor costs charged to federal awards are based on accurate and timely records and certifications, as required under 2 CFR 200.430(g). The timing delays occurred due to staffing vacancies and knowledge transfer of current staff as well as misalignment of staffing. Once the staffing was realigned, trained, and vacant positions filled, the time and effort certification for the fiscal year labor costs were completed. This task occurred during the months between August 2024 and November 2024 which was outside the policy time frames. The College is committed to improving its internal controls over time and effort reporting for research and development grants to ensure compliance by taking corrective action steps to improve monitoring and oversight, strengthen training and communications, and develop an action plan for corrective timing. The College implemented part of the corrective action on August 01, 2024, retroactive to July 1, 2023, and will complete the remaining items by the end of the next fiscal year. Anticipated Completion Date: June 30, 2025

View Audit 344210

Finding 524684 (2024-002)

Significant Deficiency 2024

Texas Association for the Education of Young Children, Inc.

TX

Allowable Costs / Cost Principles

Management Response: The variance from the cost allocation is related to rounding errors as a result of the sum of the allocation percentages adding up to slightly over 100 percent. This is due to rounding errors when utilizing formula functions within Microsoft Excel. Additionally, when applying t...

Management Response: The variance from the cost allocation is related to rounding errors as a result of the sum of the allocation percentages adding up to slightly over 100 percent. This is due to rounding errors when utilizing formula functions within Microsoft Excel. Additionally, when applying the allocation percentages to a shared expenses, the resulting amounts do not always add up to the exact amount of the expenses. Typically, the resulting cautions produce an error within less than $5 and/or less than 1% of the total expense. TXAEYC staff manually adjust the allocated expenses to add up to the total expense. To remedy this from happening in the future, if any rounding issues produce a difference in the total expenses allocated, the difference will be allocated to the organization’s operating expense class rather than a class associated with a government grant. The following language will be added to the TXAEYC Accounting Manual: “Allocations percentages should be rounded to two decimal places (example 3.21%). If the total of percentages does not fully equal 100 percent, the difference should be added to the allocation percentage assigned to TXAEYC operating expenses. If the sum exceeds 100 percent, an equal amount should be attempted to be subtracted from each class associated with a government grant and added to the allocation percentage assigned to TXAEYC operating expenses. When applying the indirect cost allocations, if the total of the allocations when summed do not equal the total expense amount, the difference should be added to the allocations to TXAEYC operating expenses.” Parties Responsible and Timeline Updates to the Accounting Manual will be approved by TXAEYC’s Finance Committee and Governing board by April 30, 2025.

View Audit 344111

Finding 524683 (2024-001)

Significant Deficiency 2024

Texas Association for the Education of Young Children, Inc.

TX

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

Management Response: TXAEYC’s Payroll Processing section of the Accounting Manual will be updated to reflect the following changes: “Direct supervisors will review and approve their direct reports’ timesheets to ensure time is accurately recorded and all hours worked are assigned a cost allocation...

Management Response: TXAEYC’s Payroll Processing section of the Accounting Manual will be updated to reflect the following changes: “Direct supervisors will review and approve their direct reports’ timesheets to ensure time is accurately recorded and all hours worked are assigned a cost allocation. The Director of Operations conducts a second layer of approval for all employee timesheets and processes payroll via the payroll platform. The Director of Operations may not process payroll without ensuring Supervisor Approval has been entered for all timesheets within the payroll platform. Additionally, the Director of Operation shall approve the timesheet of the Executive Director/Chief Executive Officer.” Parties Responsible and Timeline Updates to the Accounting Manual will be approved by TXAEYC’s Finance Committee and Governing board by April 30, 2025. The Director of Operation will implement changes to approved by the Finance Committee and Governing Committee immediately following their approval.

View Audit 344111

Finding 524670 (2024-004)

None 2024

Community Development Partnership

MA

Allowable Costs / Cost Principles Reporting

We are in the process of submitting the required operating budget and self certification letter to the USDA - Anticpated Completion date -March 31,2025 Kathleen Boyce ,CFAO

View Audit 344101

Finding 524666 (2024-003)

Material Weakness 2024

Community Development Partnership

MA

Allowable Costs / Cost Principles § 200.302

We continue to review and update our procedures and process to insure that all financial transactions are properly allocated to programs/ properties funded with federal funds - Anticipated Completion Date-April 30, 2025.Responsible Contact Person-Kathleen Boyce, CFAO

View Audit 344101

Finding 524566 (2024-002)

Significant Deficiency 2024

City of Walnut

CA

Procurement, Suspension & Debarment Allowable Costs / Cost Principles Significant Deficiency

2024-002 Program: COVID-19 – Coronavirus State and Local Fiscal Recovery Funds Financial Assistance Listing Number: 21.027 Federal Agency: U.S. Department of Treasury Award Year: 2021 Grant Award Number: N/A Compliance Requirement: Suspension and Debarment Type of Finding: Significant Deficiency i...

2024-002 Program: COVID-19 – Coronavirus State and Local Fiscal Recovery Funds Financial Assistance Listing Number: 21.027 Federal Agency: U.S. Department of Treasury Award Year: 2021 Grant Award Number: N/A Compliance Requirement: Suspension and Debarment Type of Finding: Significant Deficiency in Internal Control Over Compliance Views of Responsible Officials: A memorandum was sent to all department heads (responsible for purchasing and contracts) in January 2025 reinforcing their duty to confirm contractors and vendors suspension/debarment status with respect to federal awards. The Finance Department plans to prepare a list of contractors currently engaged in federally funded projects and verify their good standing using the online database. Going forward, contractors/vendors will be required to submit a signed Suspension & Debarment Certification prior to the award of any new agreement. Name of Responsible Person: Alexander Merkel Medina, Director of Finance Implementation Date: January 15, 2025

View Audit 344006

Finding 524536 (2024-001)

Significant Deficiency 2024

Phoenix Union High School District No. 210

AZ

Allowable Costs / Cost Principles Procurement, Suspension & Debarment Significant Deficiency § 200.303

Finding Number: 2024‐001 Program Name/Assistance Listing Title: Education Stabilization Fund Assistance Listing Number: 84.425 Contact Person: Adrian De Alba, Execu􀆟ve Director of Finance Anticipated Completion Date: February 20, 2025 Planned Corrective Action: Finding: A purchase order (PO) was iss...

Finding Number: 2024‐001 Program Name/Assistance Listing Title: Education Stabilization Fund Assistance Listing Number: 84.425 Contact Person: Adrian De Alba, Execu􀆟ve Director of Finance Anticipated Completion Date: February 20, 2025 Planned Corrective Action: Finding: A purchase order (PO) was issued without proper authorization. Action planned in response to finding: The District concurs with the finding, recognizing that the expenditure was allowable, and that the approval process was not in place for this expenditure. The District has removed access to the quick approval option for the end‐user to ensure bypassing does not occur. The District will continue to provide training ensuring end users follow proper procedures. Internal controls will be evaluated to ensure proper approval systems are in place to prevent this from recurring.

View Audit 343938

Finding 524499 (2024-002)

Significant Deficiency 2024

Franklin Community School Corporation

IN

Allowable Costs / Cost Principles Subrecipient Monitoring Significant Deficiency § 200.303

FINDING 2024-002 Finding Subject: COVID-19 - Education Stabilization Fund – Activities Allowed or Unallowed; Allowable Costs/Cost Principles Summary of Finding: An effective internal control system was not designed at the School Corporation to ensure compliance with requirements related to the grant...

FINDING 2024-002 Finding Subject: COVID-19 - Education Stabilization Fund – Activities Allowed or Unallowed; Allowable Costs/Cost Principles Summary of Finding: An effective internal control system was not designed at the School Corporation to ensure compliance with requirements related to the grant agreement and the Activities Allowed or Unallowed and Allowable Costs/Cost Principles compliance requirements. The School Corporation had designed a system of internal controls to ensure payroll expenditures charged to the grant fund were allowable. However, 2 of the 44 expenditures tested did not show have documentation that the control had been applied and operated effectively. The State Board of Accounts recommends that the School Corporation’s management establish a system of internal controls related to the federal award and the Activities Allowed or Unallowed and Allowable Costs/Cost Principles compliance requirements and apply the controls consistently to all transactions. Contact Person Responsible for Corrective Action: Kerri Powers-Hoffman, Payroll Specialist Contact Phone Number and Email Address: hoffmank@franklinschools.org, 317-346-8738 Views of Responsible Officials: We concur with the finding. Description of Corrective Action Plan: The Payroll Specialist will ensure the files posted to the shared drive for the monthly board meetings contain all payroll claims necessary for approval each month. The Payroll Specialist also will review the prior months file to ensure no payroll claims were skipped, which is what resulted in this finding. Anticipated Completion Date: This corrective action has already been implemented.

View Audit 343871

Finding 524459 (2024-001)

Significant Deficiency 2024

Planned Parenthood of St. Louis Region and Southwest Missouri

MO

Allowable Costs / Cost Principles

- Planned Parenthood of the St. Louis Region and Southwest Missouri is implementing a monthly after-the-fact review process and control to ensure that the salary expense charged to the grant is reasonable based on actual time and effort of the employees performing procedures for the grant program

View Audit 343776

Finding 524392 (2024-001)

Material Weakness 2024

Loma Linda University

CA

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

Finding 2024-001 – Internal control deficiency and noncompliance over Activities Allowed or Unallowed and Allowable Costs/Cost Principles related to payroll expenditures Connecting Minority Communities Pilot Program – Accuracy During testing over the Activities Allowed or Unallowed and Allowable C...

Finding 2024-001 – Internal control deficiency and noncompliance over Activities Allowed or Unallowed and Allowable Costs/Cost Principles related to payroll expenditures Connecting Minority Communities Pilot Program – Accuracy During testing over the Activities Allowed or Unallowed and Allowable Costs/Cost Principles compliance requirement, management did not have effective internal controls in place to ensure salaries, fringe benefits, and indirect costs were correctly allocated to the Federal award. Management Response and Action Plan: Management has adjusted for the incorrect allocation with the grantor (i.e., refunded the questioned costs) and will implement an additional review control of the allocation and final calculation of salaries, fringe benefits, and indirect costs. Responsible Person: Executive Director of Sponsored Project Administration Target Date: February 2025

View Audit 343628 Questioned Costs: $1

Finding 524390 (2024-002)

Significant Deficiency 2024

Kansas Health Science Center, Inc.

IL

Allowable Costs / Cost Principles Questioned Costs Internal Control / Segregation of Duties § 200.303 § 200.430

Corrective Action Plan – Kansas Health Science University Identifying Number: 2024-002 Finding: Improper Controls Over Personnel Expenses Applicable Regulation: Uniform Grant Guidance (2 CFR 200.430(g)(1)(i)) states charges to Federal awards for salaries and wages must be based on records that a...

Corrective Action Plan – Kansas Health Science University Identifying Number: 2024-002 Finding: Improper Controls Over Personnel Expenses Applicable Regulation: Uniform Grant Guidance (2 CFR 200.430(g)(1)(i)) states charges to Federal awards for salaries and wages must be based on records that accurately reflect the work performed. These records must be supported by a system of internal control that provides reasonable assurance that the charges are accurate, allowable, and properly allocated. Finding: A KHSU supervisor did not properly document approval for one employee’s personnel activity reports. Corrective Action Taken or Planned: Upon being notified by the auditors of this specific issue, the organization took immediate steps to address the finding. The missing documentation for the personnel activity report was located and the supervisor provided retroactive written approval. The updated Personnel Activity Report was submitted to KDADS. This corrective action resolved the specific instance during the audit. In addition, the following will be implemented: 1. Development and Implementation of a Standard Operating Plan • A SOP for reviewing and documenting approvals of personnel activity reports (PARs) will be developed. • The procedure will include detailed steps for supervisors to review, approve, and retain documentation of PARs. 2. Training for Supervisors • All supervisors responsible for approving PARs will have one-on-one training on the new SOP by the Chief Financial Officer, emphasizing the importance of proper documentation to comply with internal controls and audit standards. • Training sessions will be scheduled. 3. Implementation of Monitoring Controls • A secondary review process will be introduced to ensure compliance with the new procedures, including review by the Principal Investigator. • The Grants Management Office or an equivalent oversight body will conduct periodic audits of PAR documentation to verify proper approvals. Contact Person: Matt Ankenbrandt, Chief Financial Officer mankenbrandt@kansashsc.org Anticipated Completion Date: 2/15/25

View Audit 343627

Finding 524384 (2024-001)

Significant Deficiency 2024

Haysville Usd No. 261

KS

Questioned Costs Allowable Costs / Cost Principles Significant Deficiency

Condition: During our review of IDEA funds, we noted that sales tax was paid on multiple invoices. Criteria: When federal dollars are used to pay for items from a tax exempt entity, it is important to ensure the vendor is not charging the entity sales tax. Cause: The District paid sales tax on multi...

Condition: During our review of IDEA funds, we noted that sales tax was paid on multiple invoices. Criteria: When federal dollars are used to pay for items from a tax exempt entity, it is important to ensure the vendor is not charging the entity sales tax. Cause: The District paid sales tax on multiple invoices we found during our testing. Effect: Unallowable cost through IDEA. Perspective: The District should have controls in place and a review process to ensure sales tax is not being charged. Recommendation: We recommend the District go through and update (or establish) procedures to ensure sales tax is not being paid. Views of Responsible Officials and Planned Corrective Actions: Haysville USD 261 staff involved will work with the necessary parties to ensure policies and procedures are updated.

View Audit 343618 Questioned Costs: $1

Corrective Action Plans

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