Corrective Action Plans

Finding 529720 (2024-002)

Significant Deficiency 2024

CO

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

On or before June 30, 2025, PEBC will implement controls that properly support the distribution of student educator teststipends in accordance with the Uniform Guidance. Controls shall include: • Standardized Documentation: Finance & Accounting Department will work with the Residency Department to d...

On or before June 30, 2025, PEBC will implement controls that properly support the distribution of student educator teststipends in accordance with the Uniform Guidance. Controls shall include: • Standardized Documentation: Finance & Accounting Department will work with the Residency Department to develop and maintain a clear inventory of required documents for each stipend award. • Resident File Management: Residency Department will establish a consistent and complete portfolio of documents for each student educator, including applications, agreements, award letters, diligence documents, and relevant correspondence. • Manager Review & Approval: Residency managers will review and attest to the completeness of each Resident File with documented approvals. • Disbursement Authorization: Finance & Accounting Department will work with the Residency Department to implement a formalized process to formalize and document requests to the Finance and Accounting Department for fund disbursement, including documentation of Residency Department manager approval. • Monthly Reconciliation: Finance & Accounting Department and Residency Department will conduct monthly reconciliations of all stipend disbursements to ensure accuracy and completeness. • Independent Oversight: Require approval of monthly reconciliations by an authorized manager who is not responsible for either approving, processing, or reconciling disbursements, or any combination thereof.

View Audit 347620

Finding 529683 (2024-001)

Material Weakness 2024

City of Taylor, Michigan

MI

Questioned Costs Subrecipient Monitoring Allowable Costs / Cost Principles § 200.303

Condition: The community development manager’s payroll expenses charged to the grant were supported by time records, but these records were not reviewed or approved by another individual. Planned Corrective Action: The community development manager will submit his/her payroll time records to either ...

Condition: The community development manager’s payroll expenses charged to the grant were supported by time records, but these records were not reviewed or approved by another individual. Planned Corrective Action: The community development manager will submit his/her payroll time records to either the outside consultant or Chief of Staff who will review and approve accordingly before being charged to the grant. Contact person responsible for corrective action: Joan Hennessey (Outside Consultant) or Dan Bzura (Chief of Staff). Anticipated Completion Date: 3/12/2025

View Audit 347590 Questioned Costs: $1

Finding 529681 (2024-002)

Material Weakness 2024

Better Waterworks, Inc.

LA

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

Management Response: Management acknowledges that federal grant proceeds were not posted to the designated grant revenue account and were instead recorded as water sales. However, a grant revenue account was already established for these funds, and this was an error in posting rather than a lack of...

Management Response: Management acknowledges that federal grant proceeds were not posted to the designated grant revenue account and were instead recorded as water sales. However, a grant revenue account was already established for these funds, and this was an error in posting rather than a lack of proper account setup. The grant in question has now been fully expended and closed, so there will be no further transactions related to this specific award. Corrective Action Plan: Proper Posting Procedures – Going forward, any future federal grant funds will be recorded in the designated grant revenue account to ensure proper classification. Self-Review Process – The individual responsible for accounting will implement a self-review process to verify that all grant-related transactions are correctly posted. Person Responsible for Corrective Action: Becky Pullin, CFO Northeast Louisiana Utilities Anticipated Completion Date: March 31, 2025

View Audit 347582

Finding 529654 (2024-001)

Material Weakness 2024

West Memphis School District #4

AR

Allowable Costs / Cost Principles Procurement, Suspension & Debarment

Reference 2024-001 Contact Person: Eric Foister, Superintendent Joyce Lowery, Special Education Bookkeeper will receive all signed approval for expenditures from Lynell McGruder, Director of Special Education before the expenditures are ordered. Once all items have been verified and received, Mrs....

Reference 2024-001 Contact Person: Eric Foister, Superintendent Joyce Lowery, Special Education Bookkeeper will receive all signed approval for expenditures from Lynell McGruder, Director of Special Education before the expenditures are ordered. Once all items have been verified and received, Mrs. McGruder will review and sign invoice giving approval to pay all invoices. The district will establish purchase order and payment policy procedures. Anticipated completion date: June 30, 2025.

View Audit 347548

Finding 529504 (2024-007)

Material Weakness 2024

Cannelton City School Corporation

IN

Questioned Costs Allowable Costs / Cost Principles Subrecipient Monitoring § 200.302 § 200.303 § 200.403

FINDING 2024-007 Finding Subject: Covid-19-Education Stabilization Fund-Allowable Costs/Cost Principles Summary of Finding: This finding claims federal awards were not in compliance with the terms and conditions as well as the allowable cost compliance requirements. Additionally, the School corporat...

FINDING 2024-007 Finding Subject: Covid-19-Education Stabilization Fund-Allowable Costs/Cost Principles Summary of Finding: This finding claims federal awards were not in compliance with the terms and conditions as well as the allowable cost compliance requirements. Additionally, the School corporation did not properly implement a process to identify and assess internal and external risks, or monitor internal control activities to ensure they were operating effectively. Contact Person Responsible for Corrective Action: Melissa Embry Contact Phone Number and Email Address: 812-547-2637 melissa.embry@cannelton.k12.in.us Views of Responsible Officials: We concur with the finding. The reason we spent the money the way we did is because the IDOE approved our budget. We spent exactly as it was approved not knowing that we could not spend it on items or services that were being paid for prior to the grant’s application. If it was not supposed to be spent this way, then IDOE should have never approved it. To prevent noncompliance going forward, the school’s grant administrator will review disbursements of the program to ensure they were not spent on items or services that were in place prior to the grant’s application. Description of Corrective Action Plan: To prevent noncompliance going forward, the school’s grant administrator will review disbursements of the program to ensure they were not spent on items or services that were in place prior to the grant’s application. Cannelton management will establish a proper system of internal controls including policies and procedures related to risk assessment and monitoring activities within the federal program. Anticipated Completion Date: The noncompliance will be addressed immediately. The additional controls will be implemented by August 2025.

View Audit 347515 Questioned Costs: $1

Finding 529487 (2024-004)

Material Weakness 2024

Cannelton City School Corporation

IN

Questioned Costs Allowable Costs / Cost Principles Subrecipient Monitoring § 200.303 § 200.334 § 200.403

FINDING 2024-004 Finding Subject: Child Nutrition Cluster-Activities Allowed or Unallowed, Allowable Costs/Cost Principles Summary of Finding: Payments made based on statements or no supporting documentation. The School corporation did not properly implement a process to identify and assess internal...

FINDING 2024-004 Finding Subject: Child Nutrition Cluster-Activities Allowed or Unallowed, Allowable Costs/Cost Principles Summary of Finding: Payments made based on statements or no supporting documentation. The School corporation did not properly implement a process to identify and assess internal and external risks, or monitor internal control activities to ensure they were operating effectively. Contact Person Responsible for Corrective Action: Melissa Embry Contact Phone Number and Email Address: 812-547-2637 melissa.embry@cannelton.k12.in.us Views of Responsible Officials: We concur with the finding. Description of Corrective Action Plan: Invoices are already being given to the Corporation Treasurer monthly and are being attached to each Accounts Payable Voucher to show exactly what is being paid for. Cannelton management will establish a proper system of internal controls including policies and procedures related to risk assessment and monitoring activities within the federal program. Anticipated Completion Date: The noncompliance was corrected as of January 2025. The additional controls will be implemented by August 2025.

View Audit 347515 Questioned Costs: $1

Finding 529434 (2024-001)

None 2024

Central Pennsylvania Workforce Development Corporation

PA

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

Corrective Action Taken: The formula in question has been corrected. Further, in order to prevent any issues happening again, key cells in the document have been locked (password protected) and TRUE/FALSE checks have been added. These TRUE/FALSE checks will serve as an additional method to ensure th...

Corrective Action Taken: The formula in question has been corrected. Further, in order to prevent any issues happening again, key cells in the document have been locked (password protected) and TRUE/FALSE checks have been added. These TRUE/FALSE checks will serve as an additional method to ensure that the formulas are pulling correctly and with conditional formatting to serve as a color warning when something is wrong. If the formula is working correctly, the TRUE checks will show; if the formula is not working correctly, the check will show FALSE in bright red, indicating that there is a problem. The check fields will also be protected so they can not be inadvertently changed.

View Audit 347450

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