Corrective Action Plans

Finding 516868 (2023-004)

Material Weakness 2023

Metropolitan Park District of the Toledo Area

OH

Reporting Allowable Costs / Cost Principles § 200.328

The position of Grants Coordinator has been created and filled to handle grants management functions which will ensure proper quarter end dates and expenditures appropriate for the period are reported. Under the new process, the Grant Coordinator collaborates with the Construction Financial Adminis...

The position of Grants Coordinator has been created and filled to handle grants management functions which will ensure proper quarter end dates and expenditures appropriate for the period are reported. Under the new process, the Grant Coordinator collaborates with the Construction Financial Administrator to complete forms which are then reviewed with the Director of Grants and CFO prior to submission.

View Audit 334765

Finding 516735 (2023-004)

Material Weakness 2023

Hocking County

OH

Procurement, Suspension & Debarment Allowable Costs / Cost Principles § 200.302 § 200.318 § 200.319 § 200.320 § 200.430

The Auditor’s Office will work with the Commissioner’s Office and Prosecutor’s Office to implement the required policies.

View Audit 334701

Finding 516482 (2023-001)

Material Weakness 2023

Wahkiakum County

WA

Questioned Costs Allowable Costs / Cost Principles Subrecipient Monitoring

CORRECTIVE ACTION PLAN FOR FINDINGS REPORTED UNDER UNIFORM GUIDANCE Wahkiakum County January 1, 2023 through December 31, 2023 This schedule presents the corrective action the County is planning to take for findings included in this report in accordance with Title 2 U.S. Code of Federal Regulations...

CORRECTIVE ACTION PLAN FOR FINDINGS REPORTED UNDER UNIFORM GUIDANCE Wahkiakum County January 1, 2023 through December 31, 2023 This schedule presents the corrective action the County is planning to take for findings included in this report in accordance with Title 2 U.S. Code of Federal Regulations (CFR) Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Finding ref number: 2023-001 Finding caption: The County did not have adequate controls for ensuring compliance with federal requirements for allowable activities and costs. Name, address, and telephone of County contact person: Tammy Peterson, PO Box 85, 360-795-8005 Corrective action the auditee plans to take in response to the finding: (If the auditee does not concur with the finding, the auditee must list the reasons for disagreement). A request was made to the payroll department for a report for the Sheriff’s office for the August payroll. I meant the July time issued on August 5th. The report I received was for August time with a September 5th pay date. This was a misunderstanding and not an intentional oversight. In the future, we will ensure that the report dates match the payroll we are requesting. Anticipated date to complete the corrective action: September 13, 2024

View Audit 334391 Questioned Costs: $1

Finding 516326 (2023-003)

Significant Deficiency 2023

All Nations Health Center, Inc.

MT

Allowable Costs / Cost Principles Subrecipient Monitoring Significant Deficiency § 200.303

The Business and Finance Department at ANHC has mandated, from all departments at ANHC, an approval form for all “Autopay” transactions to be signed by the ED immediately.

View Audit 334164

Finding 516134 (2023-002)

Material Weakness 2023

Kalama School District

WA

Subrecipient Monitoring Internal Control / Segregation of Duties Special Tests & Provisions

CORRECTIVE ACTION PLAN FOR FINDINGS REPORTED UNDER UNIFORM GUIDANCE Kalama School District No. 402 September 1, 2022 through August 31, 2023 This schedule presents the corrective action the District is planning to take for findings included in this report in accordance with Title 2 U.S. Code of Fed...

CORRECTIVE ACTION PLAN FOR FINDINGS REPORTED UNDER UNIFORM GUIDANCE Kalama School District No. 402 September 1, 2022 through August 31, 2023 This schedule presents the corrective action the District is planning to take for findings included in this report in accordance with Title 2 U.S. Code of Federal Regulations (CFR) Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Finding ref number: 2023-002 Finding caption: The District did not have adequate internal controls for ensuring compliance with federal wage rate requirements. Name, address, and telephone of District contact person: James Capen Director of Business Services 360-673-5282 Corrective action the auditee plans to take in response to the finding: The Kalama School District has taken the following steps to ensure that we are currently in compliance, and will continue to stay in compliance, with the Davis-Bacon Act; 1. All new contractors and existing contractors covered by the Davis-Bacon Act will submit certification attesting to compliance of prevailing wage requirements. 2. District staff will review the State Labor and Industries prevailing wage and certification website on a weekly basis when work is performed or collect a certified payroll record from the contractor on a weekly basis. 3. All new staff that have purchasing or financial oversight will be trained on these procedures when hired and on an ongoing basis. Anticipated date to complete the corrective action: 7-26-24

View Audit 333974

Finding 515975 (2023-004)

Significant Deficiency 2023

The National Judicial College

NV

Procurement, Suspension & Debarment Subrecipient Monitoring Allowable Costs / Cost Principles § 200.213

Personnel changes, including the introduction and the departure of a new Director of Grants, led to a vulnerability in the debarment step of the processes for contracting with consultants under federal grants in isolated circumstances. In this particular instance, a long-term consultant entered into...

Personnel changes, including the introduction and the departure of a new Director of Grants, led to a vulnerability in the debarment step of the processes for contracting with consultants under federal grants in isolated circumstances. In this particular instance, a long-term consultant entered into a new contract with the College while an existing contract for related activities was outstanding. The College will formalize a policy requiring that all new contracts under federal grants, even for previously established contractors, be reviewed and processed according to the updated procedures. Patrick Grimes is the individual responsible for oversight of this corrective action plan.

View Audit 333783

Finding 515974 (2023-003)

Significant Deficiency 2023

The National Judicial College

NV

Allowable Costs / Cost Principles Reporting § 200.327 § 200.328

Personnel changes, including the introduction and departure of a new Director of Grants position, resulted in vulnerabilities in the College’s master calendar strategy, leading to missed deadlines in isolated and unique circumstances. To mitigate this situation, the College will implement a new mas...

Personnel changes, including the introduction and departure of a new Director of Grants position, resulted in vulnerabilities in the College’s master calendar strategy, leading to missed deadlines in isolated and unique circumstances. To mitigate this situation, the College will implement a new master calendar policy that includes cross-checks to ensure that critical deadlines are met and to provide better oversight of key dates. In addition, we will create a backup resource who will be granted access to Grant Solutions system. In addition, the College will seek written documentation to any amendments related to filing deadlines. Patrick Grimes is the individual responsible for oversight of this corrective action plan.

View Audit 333783

Finding 515942 (2023-005)

None 2023

Mercer County

NJ

Allowable Costs / Cost Principles

County management will implement a corrective plan within 45 days of this report.

View Audit 333751

Finding 515890 (2023-002)

Significant Deficiency 2023

Mercer County

NJ

Allowable Costs / Cost Principles Reporting

County management will implement a corrective plan within 45 days of this report.

View Audit 333751

Finding 515835 (2023-008)

Material Weakness 2023

Isanti County

MN

Allowable Costs / Cost Principles Cash Management Material Weakness

Federal Agency: US Department of Health and Human Services Federal Program Name: Medical Assistance Assistance Listing Number: 93.778 Federal Award Identification Number and Year: 2205MN5ADM, 2023 Award Period: January 1, 2023 through December 31, 2023 Type of Finding: • Significant Deficiency in ...

Federal Agency: US Department of Health and Human Services Federal Program Name: Medical Assistance Assistance Listing Number: 93.778 Federal Award Identification Number and Year: 2205MN5ADM, 2023 Award Period: January 1, 2023 through December 31, 2023 Type of Finding: • Significant Deficiency in Internal Control over Compliance Recommendation: We recommend the County puts in place the proper procedures to ensure it has proper controls in place to properly document the review of all the LCTS reports submitted by each collaborative member each quarter for accuracy. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: The District will ensure there are proper financial procedures and controls in place to properly document the review of all required reports for the program. Name(s) of the contact person(s) responsible for corrective action: Angie Larson, Auditor-Treasurer / Chief Financial Officer Planned completion date for corrective action plan: December, 31 2024

View Audit 333691

Finding 515833 (2023-007)

Material Weakness 2023

Isanti County

MN

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

Federal Agency: US Department of Health and Human Services Federal Program Name: Medical Assistance Assistance Listing Number: 93.778 Federal Award Identification Number and Year: 2205MN5ADM, 2023 Award Period: January 1, 2023 through December 31, 2023 Type of Finding: • Material Weakness in Inter...

Federal Agency: US Department of Health and Human Services Federal Program Name: Medical Assistance Assistance Listing Number: 93.778 Federal Award Identification Number and Year: 2205MN5ADM, 2023 Award Period: January 1, 2023 through December 31, 2023 Type of Finding: • Material Weakness in Internal Control over Compliance Recommendation: We recommend the County puts in place the proper procedures to ensure it has proper controls in place to properly document the review of all required reports for the program. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: The District will ensure there are proper financial procedures and controls in place to properly document the review of all required reports for the program. Name(s) of the contact person(s) responsible for corrective action: Angie Larson, Auditor-Treasurer / Chief Financial Officer Planned completion date for corrective action plan: December, 31 2024

View Audit 333691

Finding 515831 (2023-006)

Material Weakness 2023

Isanti County

MN

Allowable Costs / Cost Principles HUD Housing Programs Material Weakness

Federal Agency: US Department of Health and Human Services Federal Program Name: Medical Assistance Assistance Listing Number: 93.778 Federal Award Identification Number and Year: 2205MN5ADM, 2023 Award Period: January 1, 2023 through December 31, 2023 Type of Finding: • Material Weakness in Inter...

Federal Agency: US Department of Health and Human Services Federal Program Name: Medical Assistance Assistance Listing Number: 93.778 Federal Award Identification Number and Year: 2205MN5ADM, 2023 Award Period: January 1, 2023 through December 31, 2023 Type of Finding: • Material Weakness in Internal Control over Compliance Recommendation: We recommend the County puts in place the proper procedures to ensure it has proper controls in place to properly document the review of the state time study listings each quarter. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: The District will ensure there are proper financial procedures and controls in place to properly document the review of the state time study listings each quarter. Name(s) of the contact person(s) responsible for corrective action: Angie Larson, Auditor-Treasurer / Chief Financial Officer Planned completion date for corrective action plan: December, 31 2024

View Audit 333691

Finding 515829 (2023-005)

Significant Deficiency 2023

Isanti County

MN

Questioned Costs Allowable Costs / Cost Principles Significant Deficiency

Federal Agency: US Department of Health and Human Services Federal Program Name: Medical Assistance Assistance Listing Number: 93.778 Federal Award Identification Number and Year: 2205MN5ADM, 2023 Award Period: January 1, 2023 through December 31, 2023 Type of Finding: • Significant Deficiency in ...

Federal Agency: US Department of Health and Human Services Federal Program Name: Medical Assistance Assistance Listing Number: 93.778 Federal Award Identification Number and Year: 2205MN5ADM, 2023 Award Period: January 1, 2023 through December 31, 2023 Type of Finding: • Significant Deficiency in Internal Control over Compliance • Other Matters Recommendation: We recommend the County puts in place the proper procedures to ensure it has proper controls in place to properly document support for all payroll expenditures coded to the grant. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: The County will review its procedures and controls over payroll to ensure supporting documentation is retained, reviewed and approved for all employees. Name(s) of the contact person(s) responsible for corrective action: Angie Larson, Auditor-Treasurer / Chief Financial Officer Planned completion date for corrective action plan: December, 31 2024

View Audit 333691 Questioned Costs: $1

Finding 515558 (2023-009)

Significant Deficiency 2023

Unity Health Care, Inc.

MD

Allowable Costs / Cost Principles § 200.303

Management Response #2023-009: Due to the staff shortages and turnover the Corporation did not have adequate personnel or infrastructure in place to monitor costs in order to calculate and determine Corrective Action Plan: The Finance Team will develop overall operational costs reports to calculate...

Management Response #2023-009: Due to the staff shortages and turnover the Corporation did not have adequate personnel or infrastructure in place to monitor costs in order to calculate and determine Corrective Action Plan: The Finance Team will develop overall operational costs reports to calculate and support a new rate. The proposed rate will be submitted for approval. This will allow us to ensure the calculation for indirect costs and documentation supporting the indirect cost pool conform to the current regulations. Responsible Party: Tamara Barnes, CFO

View Audit 333283

Finding 515549 (2023-006)

Material Weakness 2023

Unity Health Care, Inc.

MD

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

Management Response #2023-006: Due to the financial system and time keeping infrastructure, the Corporation did not maintain evidence of fringe benefit cost objectives calculations. Also, the current fringe cost rate and allocations is based on historical assumptions. Corrective Action Plan: • The...

Management Response #2023-006: Due to the financial system and time keeping infrastructure, the Corporation did not maintain evidence of fringe benefit cost objectives calculations. Also, the current fringe cost rate and allocations is based on historical assumptions. Corrective Action Plan: • The finance team will work to ensure fringe costs are entered into the financial system based on actual costs paid by the Corporation for each employee. • The grants finance department will also create actual to budget reports in accordance with HRSA guidelines for fringe costs. • The Finance Team will develop fringe costs reports to calculate, monitor and support the current rate. This will allow us to ensure the fringe cost allocation conform to the current regulations. Responsible Party: Tamara Barnes, CFO

View Audit 333283

Finding 515548 (2023-005)

Material Weakness 2023

Unity Health Care, Inc.

MD

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

Management Response #2023-005: The time keeping system and process does not currently allow tracking of time based on funded resources. The past practice had been for the finance department manually calculated salary allocations. Due to the influx of grants and staffing resources the Corporation was...

Management Response #2023-005: The time keeping system and process does not currently allow tracking of time based on funded resources. The past practice had been for the finance department manually calculated salary allocations. Due to the influx of grants and staffing resources the Corporation was unable to maintain this process. Corrective Action Plan: The following action items have been or will be taken: • Finance Management, Human Resource and Payroll will work on integrating time-tracking functions with the current time-keeping system to specifically track time worked on grants in real time for fiscal year 2025. Responsible Party: Tamara Barnes, CFO

View Audit 333283

Finding 515446 (2023-111)

Significant Deficiency 2023

State of Arizona

AZ

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

Assistance listing numbers and program names: 93.575 Child Care and Development Block Grant 93.575 COVID-19 - Child Care and Development Block Grant 93.596 Child Care Mandatory and Matching Funds of the Child Care and Development Fund 93.596 COVID-19 - Child Care Mandatory and Matching Funds of the...

Assistance listing numbers and program names: 93.575 Child Care and Development Block Grant 93.575 COVID-19 - Child Care and Development Block Grant 93.596 Child Care Mandatory and Matching Funds of the Child Care and Development Fund 93.596 COVID-19 - Child Care Mandatory and Matching Funds of the Child Care and Development Fund Agency: Arizona Department of Economic Security (DES) Name of contact person and title: Traci Lira, DES Strategic Operations Coordinator Anticipated completion date: September 1, 2024 Agency’s Response: Concur The Department of Economic Security will address the audit recommendations as follows: The Department has revised its policies and procedures to ensure a signed receipt is captured for all Payment Disbursed Quickly (PDQ) submitted billings. In addition, the Department will retain all records related to a federal award for a period of 3 years from the final expenditure report submission date. These policies and procedures were implemented effective September 1, 2024.

View Audit 333243

Finding 515369 (2023-127)

Material Weakness 2023

State of Arizona

AZ

Allowable Costs / Cost Principles Cash Management Reporting § 200.301 § 200.302 § 200.303

Assistance listing numbers and program names: 84.425D COVID-19 - Education Stabilization Fund—Elementary and Secondary School Emergency Relief (ESSER) Fund 84.425R COVID-19 - Coronavirus Response and Relief Supplemental Appropriations Act, 2021 – Emergency Assistance to Non-Public Schools (CRSSA EAN...

Assistance listing numbers and program names: 84.425D COVID-19 - Education Stabilization Fund—Elementary and Secondary School Emergency Relief (ESSER) Fund 84.425R COVID-19 - Coronavirus Response and Relief Supplemental Appropriations Act, 2021 – Emergency Assistance to Non-Public Schools (CRSSA EANS) Agency: Arizona Department of Education (ADE) Name of contact persons and titles: Michelle Udall, ADE Associate Superintendent Dr. Sarka White, ADE Deputy Associate Superintendent Anticipated completion date: November 30, 2024 Agency’s response: Concur ESSER Reporting will be validated by at least 2 people before submitting to U.S. Department of Education. This validation will include the reconciliation of data from the LEA to ADE's report. ADE is finalizing policies and procedures for validating the data prior to submission. ADE has already begun implementing a reconciliation system to ensure accurate reporting in the EANS annual performance report. This system tracks obligations by category, expenses, and appropriate earmarking of nonpublic schools (e.g., DUNS/UEI, grades served). ADE is finalizing general policies and procedures for how this data is compiled, interpreted, and reported based on the initial implementation and corrections of the EANS program.

View Audit 333243

Finding 515344 (2023-122)

Material Weakness 2023

State of Arizona

AZ

Questioned Costs Allowable Costs / Cost Principles Eligibility § 200.303 § 200.513 § 200.521

Assistance listing numbers and program names: 84.010 Title I Grants to Local Educational Agencies 84.367 Supporting Effective Instruction State Grants (formerly Improving Teacher Quality State Grants) Agency: Arizona Department of Education (ADE) Name of contact person and title: Dr. Sarka White, AD...

Assistance listing numbers and program names: 84.010 Title I Grants to Local Educational Agencies 84.367 Supporting Effective Instruction State Grants (formerly Improving Teacher Quality State Grants) Agency: Arizona Department of Education (ADE) Name of contact person and title: Dr. Sarka White, ADE Deputy Associate Superintendent Chris Brown, Business Officer of Education Programs Anticipated completion date: February 2025 Agency’s response: Concur • The Arizona Department of Education (ADE) has already begun to document and execute practices addressing the recommendations issued by the auditor's office. • ADE has already drafted a comprehensive policies and procedures document outlining eligibility, duties, and responsibilities with individuals who oversee and double-check the work. This document was created and refined by reviewing other states’ procedures, federal technical assistance groups, communications with the Title federal program office at the United States Department of Education, and internal procedures in other units. • The Title I unit has been restructured to have an operations team with multiple staff members overseeing data quality and internal controls for allocations. This updated structure ensures that multiple individuals are involved in the allocation process. Staffing for this should be completed by February 2025. • The updated processes include entity management to determine when charter LEAs open and operate each year. Now, other systems validate this information instead of copying the information from the prior year. As such, this item has already been completed. • Finally, the department will follow up with the United States Department of Education (USED) regarding recalculating the fiscal year 2023 and the six ineligible LEAs for Title II funds to determine feasible processes and resolutions to each audit recommendation.

View Audit 333243 Questioned Costs: $1

Finding 515212 (2023-105)

Material Weakness 2023

State of Arizona

AZ

Questioned Costs Allowable Costs / Cost Principles Eligibility § 200.303 § 200.403 § 200.404 § 200.513 § 200.521

Assistance listing numbers and program names: 21.023 COVID-19 - Emergency Rental Assistance Program 21.027 COVID-19 - Coronavirus State and Local Fiscal Recovery Funds Agency: Arizona Department of Economic Security (DES) Name of contact person and title: Molly Bright, DES CCSD Assistant Director An...

Assistance listing numbers and program names: 21.023 COVID-19 - Emergency Rental Assistance Program 21.027 COVID-19 - Coronavirus State and Local Fiscal Recovery Funds Agency: Arizona Department of Economic Security (DES) Name of contact person and title: Molly Bright, DES CCSD Assistant Director Anticipated completion date: June 30, 2026 Agency’s Response: Concur The Department of Economic Security will address the audit recommendations as follows: 1. Ensure benefit payments are for allowable costs paid to or on behalf of eligible program applicants. The Department will review and confirm that benefits payments paid to or on the behalf of eligible program applicants are allowable expenditures of the federal funding being disbursed. 2. Follow existing policies and procedures to obtain required documentation to support requirements related to where the applicant lives and their income to ensure program applicants are eligible to receive benefit payments. The Department will abide by the existing adjudication policies and procedures that require the submission of substantiating documentation supporting the claims made by applicants regarding where they live and their household income to confirm that applicants are eligible to receive benefit payments under the program and to verify the amount of benefits they shall receive. 3. Allocate sufficient staffing resources to perform a thorough evaluation of program benefits applications and provide training on eligibility requirements and allowable benefit payments. The Department will attempt to obtain or allocate additional resources to staffing to support the program benefits application evaluation process and will provide additional training to staff on eligibility requirements and allowable benefit payment regulations. 4. Update the checklist Division personnel use to perform a post-review of eligibility determinations to include detailed guidance for verifying the determinations aligned with the Division’s written policies and procedures and supported by adequate documentation. The Department will update the checklist being used by staff to perform post-review of eligibility determinations to include detailed guidance on verifying the applicant benefits determinations in alignment with the divisional policies and procedures and evidenced by adequate substantiating documentation.

View Audit 333243 Questioned Costs: $1

Finding 515168 (2023-116)

Material Weakness 2023

State of Arizona

AZ

Questioned Costs Subrecipient Monitoring Allowable Costs / Cost Principles § 200.112 § 200.303 § 200.332 § 200.513 § 200.521

Assistance listing number and program name: 14.267 Continuum of Care Program Agency: Arizona Department of Housing (DOH) Name of contact person and title: Keon Montgomery, DOH Assistant Deputy Director of Programs Anticipated completion date: January 30, 2025 Agency’s Response: Concur The Departmen...

Assistance listing number and program name: 14.267 Continuum of Care Program Agency: Arizona Department of Housing (DOH) Name of contact person and title: Keon Montgomery, DOH Assistant Deputy Director of Programs Anticipated completion date: January 30, 2025 Agency’s Response: Concur The Department is no longer reimbursing the subrecipient for unsupported or ineligible costs and is pursuing repayment of funds from the subrecipient. Written policies for reviewing and approving subrecipient reimbursements, as well as, risk assessment were reviewed, updated and amended to ensure ongoing compliance. Staff has been trained and new policies were implemented in FY 2024 subsequent to the period reviewed in this audit. Contract Specialists in the Special Needs Division have received additional training through HUD TA support on CoC standards to ensure all request for reimbursement from subrecipients are eligible, reasonable and appropriately documented, including any allocations and purchasing requirements.

View Audit 333243 Questioned Costs: $1

Finding 515166 (2023-115)

Significant Deficiency 2023

State of Arizona

AZ

Questioned Costs Subrecipient Monitoring Allowable Costs / Cost Principles § 200.112 § 200.303 § 200.332 § 200.513 § 200.521

Assistance listing numbers and program names: 14.231 Emergency Solutions Grant Program 14.231 COVID-19 - Emergency Solutions Grant Program 93.558 Temporary Assistance for Needy Families 93.558 COVID-19-Temporary Assistance for Needy Families Agency: Arizona Department of Economic Security (DES) Name...

Assistance listing numbers and program names: 14.231 Emergency Solutions Grant Program 14.231 COVID-19 - Emergency Solutions Grant Program 93.558 Temporary Assistance for Needy Families 93.558 COVID-19-Temporary Assistance for Needy Families Agency: Arizona Department of Economic Security (DES) Name of contact person and title: Molly Bright, DES CCSD Assistant Director Anticipated completion date: June 30, 2025 Agency’s Response: Concur The Department will stop the reimbursement of costs to all nonprofit and contracted subrecipients for items that are disallowed and/or restricted by the regulations of the federal Emergency Solutions Grant (ESG) program and Temporary Assistance for Needy Families (TANF) grant, including payments to personnel that violate the conflict-of-interest disclosure requirements. The Department will revise its expenditure review procedures to ensure compliance with these regulations prior to disbursing any ESG and/or TANF funding to any subrecipient for any purpose. These revisions will include review and approval by applicable management personnel prior to disbursement of federal funding. The Department is also in the process of establishing a divisional Monitoring and Compliance Policy and Procedure Manual which will establish procedures specific to subrecipient monitoring. The Department will continue to assess the risk of noncompliance violations for each subrecipient and establish a plan of action to address noncompliance. The plan of action will include an array of training and educational processes to ensure applicable personnel are knowledgeable of programmatic compliance requirements and Department contracts. The Department will also monitor subrecipients per its updated policies and procedures and will ensure proper oversight of federal expenditures as required by federal regulations. The Department has amended its contracts with the applicable subrecipients to more clearly outline the regulatory requirements and expectations for expenditures under the ESG and TANF grants. The Department will also continue to resolve the unallowable costs reimbursed to subrecipients as deemed appropriate by the applicable federal agencies.

View Audit 333243 Questioned Costs: $1

Finding 515149 (2023-005)

Material Weakness 2023

Knotts Family Agency

CA

Allowable Costs / Cost Principles

1. Elimination of Federal Allocation for Executive Salaries in 2023: Starting in 2023, KFA ensured that no executive salaries were charged to the federal funding portion of the foster care program, eliminating any potential misallocation. 2. Development of Cost Allocation Methodology: KFA has initia...

1. Elimination of Federal Allocation for Executive Salaries in 2023: Starting in 2023, KFA ensured that no executive salaries were charged to the federal funding portion of the foster care program, eliminating any potential misallocation. 2. Development of Cost Allocation Methodology: KFA has initiated the development of a consistent methodology for allocating direct and indirect costs. This includes A) Utilizing time certifications for staff whose work spans multiple foster care subprograms (e.g., ISFC, EISFC). B) Documenting allocation methods to ensure transparency and auditability. 3. Reconciliation Processes: Processes have been implemented to reconcile FC32 reports with functional expense statements and financial records to ensure consistency and accuracy. 4. Enhanced Training: Staff involved in financial reporting and cost allocation have received training on compliance with federal and state requirements, including proper preparation of FC32 reports. 5. System Enhancements: KFA is upgrading its financial management systems to facilitate accurate tracking of program-specific expenses and allocating costs to the appropriate funding sources.

View Audit 333188

Finding 515148 (2023-004)

Material Weakness 2023

Knotts Family Agency

CA

Allowable Costs / Cost Principles Reporting

1. Engaging CDSS for Clarification: KFA will formally engage the California Department of Social Services (CDSS) to clarify the applicability of federal guidelines for fee-for-service foster care providers. This includes obtaining specific guidance on financial reporting structure and reconciliation...

1. Engaging CDSS for Clarification: KFA will formally engage the California Department of Social Services (CDSS) to clarify the applicability of federal guidelines for fee-for-service foster care providers. This includes obtaining specific guidance on financial reporting structure and reconciliation requirements. 2. Enhancing Financial Management Systems: KFA is implementing a financial management system capable of tracking costs by funding source, program, and passthrough entity. This system will facilitate accurate allocation of both direct and indirect costs and ensure compliance with federal guidelines. 3. Developing Comprehensive Cost Allocation Methodology: A consistent and documented cost allocation methodology is being developed, which includes time certifications for staff whose work spans multiple programs. This methodology will be reviewed annually to ensure continued compliance with applicable regulations. 4. Strengthening FC32 Reporting: Processes are being established to reconcile FC32 reports with functional expense statements. Allocations for executive salaries to the federal program will adhere to the federal executive level 2 salary limitation as required. 5. Training and Documentation: Financial and administrative staff are receiving training on cost allocation principles, federal salary limitations, and FC32 reporting requirements. Comprehensive documentation of all methodologies and calculations will be maintained for transparency and audit readiness. 6. Monthly Reconciliations: A monthly reconciliation process is being implemented to ensure expenditures and revenues align with the terms and conditions of the foster care program.

View Audit 333188

Finding 515091 (2023-004)

Material Weakness 2023

Shalom Health Care Center, Inc.

IN

Allowable Costs / Cost Principles § 200.430

The following steps have been taken or will be taken to address Finding 2023-004: Shalom Health Care Center, Inc. has been working on updating federal grant draws within the timeframe of payroll and not monthly. Shalom Health Care Center, Inc. will also prepare semiannual attestation for management...

The following steps have been taken or will be taken to address Finding 2023-004: Shalom Health Care Center, Inc. has been working on updating federal grant draws within the timeframe of payroll and not monthly. Shalom Health Care Center, Inc. will also prepare semiannual attestation for management to review staff allocations. Contact Person: Michael A. Nino, Chief Financial Shalom Health Care Center, Inc. anino@shalomhealthcenter.org 317-269-7198

View Audit 333141

Corrective Action Plans

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