Corrective Action Plans

Finding 505127 (2023-010)

Material Weakness 2023

CA

Questioned Costs Allowable Costs / Cost Principles Eligibility § 200.303

Program: Coronavirus State and Local Fiscal Recovery Funds Finding: 2023-010 Contact Person: Arlen Crabtree Business Operations Manager Economic Development Department Phone: (562) 570-5024 Email: Arlen.Crabtree@longbeach.gov Planned Actions: In April 2024, Economic Development Department worke...

Program: Coronavirus State and Local Fiscal Recovery Funds Finding: 2023-010 Contact Person: Arlen Crabtree Business Operations Manager Economic Development Department Phone: (562) 570-5024 Email: Arlen.Crabtree@longbeach.gov Planned Actions: In April 2024, Economic Development Department worked with the vendor to implement improved evaluation processes related to the income eligibility verification process, including: a. Enhanced Training: The vendor will provide comprehensive training to all reviewers involved in verifying income documentation. This training will emphasize the importance of accurately inputting pay period frequency and using gross income for calculations. b. Secondary checks: The vendor will establish additional quality assurance checks to validate the accuracy of income calculations before final eligibility determinations are made. This may include double-checking calculations by a second reviewer or implementing automated systems to flag potential errors. Additionally, in May 2024 the Economic Development Department has re-evaluated and revised its policy for additional review by staff; increasing the number of applications reviewed by the Economic Development Department from 10% to 30%. In the view of Management of Economic Development Department, increasing the review sample size to 30% sufficiently mitigates the risk of further error while preserving the benefits and efficiencies that utilizing a contract processor provides. Further, the Economic Development Department worked with the vendor to review all applications manually qualified by the vendor to identify any further ineligible applications not found in the sample. Regarding the questioned costs, the Economic Development Department implemented a second round of the Guaranteed Income Program that was funded by non-grant funds. Costs associated with the ineligible applications identified in the audit were reclassified from American Rescue Plan Act funding to the City’s General Fund, and replaced by costs from confirmed eligible applications in the second round of the program. Finally, the City has sought restitution from the vendor on August 29, 2024 for administrative costs of the improperly vetted applications. The City will not seek repayment from the ineligible applicants. The applicants were not responsible for the error. Expected Completion Date: 9/30/2024

View Audit 327788 Questioned Costs: $1

Finding 505125 (2023-009)

Material Weakness 2023

City of Long Beach

CA

Questioned Costs HUD Housing Programs Eligibility § 200.303

Program: Section 8 Housing Choice Vouchers Finding: 2023-009 Contact Person: Jennifer Saatjian Accounting Services Officer Health & Human Services Department Phone: (562) 570-4022 Email: Jennifer.Saatjian@longbeach.gov Planned Actions: To address delays in reexamination processes, in fiscal yea...

Program: Section 8 Housing Choice Vouchers Finding: 2023-009 Contact Person: Jennifer Saatjian Accounting Services Officer Health & Human Services Department Phone: (562) 570-4022 Email: Jennifer.Saatjian@longbeach.gov Planned Actions: To address delays in reexamination processes, in fiscal year 2024, HACLB has contracted with an agency to assist in processing overdue reexaminations, and HACLB has submitted recruiting requisitions to its Human Resources department to hire additional housing specialists to improve upon its management of the high volume of HCV program participants, documentation and processes, and to meet various requirement deadlines. Regarding the testing of HUD-50058 forms, the HUD-50058 form is generated after information is inputted into HUD’s system. Error warnings are produced from the system if information is missing. Accuracy is based on the information inputted. HACLB will provide additional training to staff inputting the information, and reviews will continue to be done by the supervisor. To further improve upon the process, HACLB implemented new housing software in August 2024, which enhances reporting and tracking of payments, of HUD-50058 forms and of contract amendments. Housing Assistance Coordinators will use these reports to identify and address discrepancies. Regarding the City’s control with the HAP register’s required signatures, HACLB’s internal procedures do not require all six Housing Coordinators to approve the check run/HAP register, as KPMG assumed. There are only three assigned Housing Assistance Coordinators that have designated staff who are allowed to make adjustments and review the check-run adjustment register to confirm the work of their respective teams. If one of the approvers is absent, another approver may review and approve the adjustments that can be completed via email. No further change or action is necessary for this process. Furthermore, supervisors will continue to review completed files and train staff on errors identified in the review process. Expected Completion Date: 9/30/2024

View Audit 327788 Questioned Costs: $1

Finding 505123 (2023-008)

Material Weakness 2023

City of Long Beach

CA

HUD Housing Programs Matching / Level of Effort / Earmarking Allowable Costs / Cost Principles § 200.303

Program: Section 8 Housing Choice Vouchers Finding: 2023-008 Contact Person: Jennifer Saatjian Accounting Services Officer Health & Human Services Department Phone: (562) 570-4022 Email: Jennifer.Saatjian@longbeach.gov Planned Actions: To ensure that required repairs are completed within the 30-...

Program: Section 8 Housing Choice Vouchers Finding: 2023-008 Contact Person: Jennifer Saatjian Accounting Services Officer Health & Human Services Department Phone: (562) 570-4022 Email: Jennifer.Saatjian@longbeach.gov Planned Actions: To ensure that required repairs are completed within the 30-day time period, in fiscal year 2024, HACLB has implemented a process to ensure reinspection dates occur before the expiration of the 30-day remediation period. By January 31, 2025, HACLB will also establish clear criteria and standards for the Inspections Housing Assistance Coordinator who is responsible for timely abatement entries, ensuring compliance with operational and regulatory requirements. The Inspections Housing Assistance Coordinator will receive additional training on abatement procedures to enhance their skills and understanding by May 2025, or earlier, depending upon the availability of training opportunities. Furthermore, by January 1, 2025, the Housing Assistance Coordinator will conduct weekly reviews of deficiencies that exceed the 30-day remediation period to ensure timely action for abatement or proration. Regarding the City’s control with the HAP register’s required signatures, HACLB’s internal procedures do not require all six Housing Coordinators to approve the check run/HAP register, as KPMG assumed. There are only three assigned Housing Assistance Coordinators that have designated staff who are allowed to make adjustments and review the check-run adjustment register to confirm the work of their respective teams. If one of the approvers is absent, another approver may review and approve the adjustments that can be completed via email. No further change or action is necessary for this process. Expected Completion Date: 1/1/2025

View Audit 327788

Finding 505119 (2023-006)

Material Weakness 2023

City of Long Beach

CA

Questioned Costs Allowable Costs / Cost Principles HUD Housing Programs § 200.303

Program: Section 8 Housing Choice Vouchers Finding: 2023-006 Contact Person: Jennifer Saatjian Accounting Services Officer Health & Human Services Department Phone: (562) 570-4022 Email: Jennifer.Saatjian@longbeach.gov Planned Actions: The Housing Authority and the City of Long Beach already has...

Program: Section 8 Housing Choice Vouchers Finding: 2023-006 Contact Person: Jennifer Saatjian Accounting Services Officer Health & Human Services Department Phone: (562) 570-4022 Email: Jennifer.Saatjian@longbeach.gov Planned Actions: The Housing Authority and the City of Long Beach already has a multi-step review and approval process in place for the processing and posting of journal entries and their support documentation. Moreover, for upcoming fiscal years 2024 and after, the City has changed its indirect costs allocation methodology, in that the City will be directly charging HACLB’s funds its share of overhead costs thereby eliminating the Health and Human Services Department indirect cost allocation plan and related indirect cost charges. However, HACLB will still review the accuracy of the charged overhead costs. Effective fiscal year 2024, September, 30, 2024, HACLB will review the affected general ledger accounts at fiscal year-end, with the new allocation methodology and will verify the charged overhead costs. Expected Completion Date: 9/30/2024

View Audit 327788 Questioned Costs: $1

Finding 505117 (2023-005)

Material Weakness 2023

City of Long Beach

CA

HUD Housing Programs Allowable Costs / Cost Principles Matching / Level of Effort / Earmarking § 200.303

Program: Section 8 Housing Choice Vouchers Finding: 2023-005 Contact Person: Jennifer Saatjian Accounting Services Officer Health & Human Services Department Phone: (562) 570-4022 Email: Jennifer.Saatjian@longbeach.gov Planned Actions: To address delays in recertification processes, in fiscal ye...

Program: Section 8 Housing Choice Vouchers Finding: 2023-005 Contact Person: Jennifer Saatjian Accounting Services Officer Health & Human Services Department Phone: (562) 570-4022 Email: Jennifer.Saatjian@longbeach.gov Planned Actions: To address delays in recertification processes, in fiscal year 2024, HACLB has contracted with an agency to assist in processing the overdue recertifications, and HACLB has submitted recruiting requisitions to its Human Resources department to hire additional housing specialists to improve upon its management of the high volume of HCV program participants, documentation and processes, and comply with various deadlines. Regarding the Intake forms, HUD does not require an Intake/Eligibility sheet be completed. However, HACLB has typically included an Intake/Eligibility sheet to help ensure quality control. Recently, this was not consistently done, due to staffing shortages. To maintain this internal control in the process, staff will be reminded to ensure that an approved Intake/Eligibility sheet is included in the participant’s file. Effective November 29, 2024, a reminder will be sent to staff to ensure that an approved Intake/Eligibility sheet is included in the participant’s file. Expected Completion Date: 12/31/2024

View Audit 327788

Finding 505100 (2023-003)

Material Weakness 2023

Talbert House Health Center Dba Centerpoint Health

OH

Questioned Costs Allowable Costs / Cost Principles Reporting § 200.430

As a response, the Center updated it procedures the ensure that any employee that is charged 100% to the federal grant will complete a time and effort certification at least semi-annually. Additionally, any employee that their time is charged to multiple grants or less than 100% will complete a time...

As a response, the Center updated it procedures the ensure that any employee that is charged 100% to the federal grant will complete a time and effort certification at least semi-annually. Additionally, any employee that their time is charged to multiple grants or less than 100% will complete a time and effort attestation or similar effort reporting to track hours charged to the grants. This time and effort attestation will be reviewed and approved by a supervisor.

View Audit 327785 Questioned Costs: $1

Finding 504955 (2023-001)

Significant Deficiency 2023

Huntsville City Board of Education

AL

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

Finding: Certain timecards within Title I Part A, Assistance Listing #84.010, were not properly approved prior to payment of the payroll expenditure. Response: Application used to accumulate time and attendance records does not contain embedded administrative programming and controls to ensure all...

Finding: Certain timecards within Title I Part A, Assistance Listing #84.010, were not properly approved prior to payment of the payroll expenditure. Response: Application used to accumulate time and attendance records does not contain embedded administrative programming and controls to ensure all time and attendance information is approved by the employee and supervisor prior to payroll preparation. Management is working with the software provider to develop and embed the appropriate administrative controls and procedures to provide automated processing. In the immediate term, management will, with the assistance of the software provider, develop and utilize a hard copy report of all time and attendance records for each pay period by employee, school and/or department. Prior to payroll preparation, all entries on the report will be reconciled and manual employee and supervisor approvals will be documented. Principals and Department Heads will receive training in proper procedures for timecard approval. Anticipated Completion Date: August 2023

View Audit 327710

Finding 504918 (2023-001)

Significant Deficiency 2023

Talmud Torah D Nitra

NY

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

Finding 2023-01: The audit report was received by the FAC after the due date of May 31, 2024. Recommendation: A system should be implemented that designates multiple points of contact for the auditor, ensuring continuity in the event of key employee transitions and facilitating timely completion o...

Finding 2023-01: The audit report was received by the FAC after the due date of May 31, 2024. Recommendation: A system should be implemented that designates multiple points of contact for the auditor, ensuring continuity in the event of key employee transitions and facilitating timely completion of future audits. Action Taken: Since being made aware of the issue, the administrator and his staff appointed additional board members to gain familiarity with the annual audit process. This will ensure that the auditor will receive all necessary information and documentation in a timely manner, even in the event of employee transitions. In addition, staff has been trained and made aware of the general audit process to ensure future compliance. Implementation Date: Corrective Action plan has been implemented as of September 6, 2024

View Audit 327670

Finding 504880 (2023-005)

Significant Deficiency 2023

Rangeley Lakes Heritage Trust

ME

Allowable Costs / Cost Principles HUD Housing Programs Significant Deficiency § 200.302

RLHT will add procedures to the current financial policies document that contain oversight over the receipt and use of federal award funds.

View Audit 327661

Finding 504862 (2023-006)

Material Weakness 2023

Perry County

MS

Allowable Costs / Cost Principles Material Weakness

I have submitted a claim summary to correct this issue. I will do my best to keep all funds going to the proper places.

View Audit 327604

Finding 504857 (2023-003)

Material Weakness 2023

City of Saratoga Springs, New York

NY

Reporting Allowable Costs / Cost Principles

The City has established policies and procedures related to accoutning, auditing and financial reporting and grant administration. City departments have worked together to ensure personnel are supervised, trained and provided policies, procedures for accounting and reporting grants.

View Audit 327594

Finding 504856 (2023-002)

Material Weakness 2023

City of Saratoga Springs, New York

NY

Allowable Costs / Cost Principles Internal Control / Segregation of Duties § 200.412 § 200.512

The City has established policies and procedures related to grant administration and accounting guidelines for allowable costs. The City is aware of the deadline for the submission of the Single Audit. A personnel vacancy for the position that performs the tasks of supplying the amount of federal ...

The City has established policies and procedures related to grant administration and accounting guidelines for allowable costs. The City is aware of the deadline for the submission of the Single Audit. A personnel vacancy for the position that performs the tasks of supplying the amount of federal expenditures resulted in a delay in ensuring the deadline and the policies and procedures were adhered to. The positions have been filled and the City has taken steps to ensure the personnel have received guidance and training regarding grant accounting, including deadlines for the audit.

View Audit 327594

Finding 504839 (2023-002)

Material Weakness 2023

Richland County

OH

Allowable Costs / Cost Principles

The draft Schedule of Findings was shared October 3, 2024, with all staff via email, along with instructions to properly document the activity stated on the RMS observation. Proper documentation of RMS observations will be reviewed at the October 17, 2024, all staff meeting. Finance department staf...

The draft Schedule of Findings was shared October 3, 2024, with all staff via email, along with instructions to properly document the activity stated on the RMS observation. Proper documentation of RMS observations will be reviewed at the October 17, 2024, all staff meeting. Finance department staff will review completed RMS observations & documentation to identify and provide coaching to staff who continue to struggle with properly documenting activity claimed on RMS observations.

View Audit 327573

Finding 504763 (2023-001)

Significant Deficiency 2023

Bright Nutrition

TX

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

Significant Deficiency Federal Program: Child and Adult Care Food Program Federal Agency: U.S. Department of Agriculture Federal Award Year: 2023 Individual responsible for corrective action: Date corrective action will be implemented: Carmen Morales / Executive Director November 5, 2024 Response: I...

Significant Deficiency Federal Program: Child and Adult Care Food Program Federal Agency: U.S. Department of Agriculture Federal Award Year: 2023 Individual responsible for corrective action: Date corrective action will be implemented: Carmen Morales / Executive Director November 5, 2024 Response: In FY 2023, our organization experienced a major weakness in internal controls over expenditures for the Child and Adult Care Food Program, as highlighted in Finding 2023-001 of the recent financial audit. The audit found that our systems of internal control contained neither detection nor prevention elements. This raised doubts about whether we have adequate controls to prevent or detect instances of noncompliance with grant requirements. Our internal review has shown that the deficiency derives from weaknesses in our processes and systems, which failed to appropriately authorize or approve expenditures based on compliance with the Uniform Guidance. We realize the urgency in resolving this situation for proper management of federal awards under federal statutes, regulations and award terms. Corrective Action: To rectify the identified deficiency and align with the auditor's recommendation, our organization is implementing a comprehensive Corrective Action Plan. We have engaged a reputable CPA consulting firm specializing in internal controls and federal compliance. This firm will enter into a rigorous inspection of existing procedures to identify weaknesses and suggest improvements in prevention and help us greatly strengthen detection procedures. We recognize that skill upgrading and greater understanding of the task at hand among our staff, especially those with financial management or grant administration responsibilities are extremely important. Therefore, we will have special training sessions. These meetings will focus on the special demands of the Uniform Guidance and underline the importance of adhering to internal control measures. This applies to a full-scale review and improvement of the internal control over expenditures. This entails redefining the granting of authorization and approval procedures, as well as separating duties which must be met within the federal guidelines. It also involves installing checks and balances to ensure strict compliance with these guidelines. In view of the importance of adhering to standards for internal control, we promise to follow best practices as defined in the "Standards for Internal Control in the Federal Government" by the Comptroller General of the United States and the "Internal Control Integrated Framework" by the Committee of Sponsoring Organizations of the Treadway Commission (COSO). Determined as we are to constantly improve, our organization will use a systematic approach in order to monitor compliance with internal controls. Under this scheme, regular reporting and analysis is used to quickly find potential problems. It will be a transparent and all-inclusive monitoring process. Our organization knows just how important documentation is, and we will build a robust system in line with federally required documents. This system provides transparency and accountability in our financial management activities, taking another step toward compliance with requirements for responsible stewardship of federal funds. We will continue to co-operate closely with our CPA consulting firm and the auditing body until we can prove that there is significant progress in eliminating the large-scale deficiency. Thank you for your guidance. We will continue to improve our internal controls at the highest level possible so as to meet and exceed federal standards. This comprehensive Corrective Action Plan will be effective immediately.

View Audit 327384 Questioned Costs: $1

Finding 504714 (2023-001)

Material Weakness 2023

Inova Health System

VA

Allowable Costs / Cost Principles Subrecipient Monitoring

Federal Program Information: Federal Agencies: Department of Health and Human Services (“HHS”) Pass-Through Entity: Virginia Department of Health Pass-Through Entity Number: INORWB611-GY22; INORPS61 1-FY23; INORWB611-GY23 Awards: Assistance Listing Number 93.917 - HIV Emergency Relief Project Grants...

Federal Program Information: Federal Agencies: Department of Health and Human Services (“HHS”) Pass-Through Entity: Virginia Department of Health Pass-Through Entity Number: INORWB611-GY22; INORPS61 1-FY23; INORWB611-GY23 Awards: Assistance Listing Number 93.917 - HIV Emergency Relief Project Grants (Part B) Award Periods: April 1, 2022 to March 31, 2023; July 1, 2022 to March 31, 2023; April 1, 2023 to March 31, 2024 Description: Timely Completion of the 24-month Eligibility Screening Type of Finding: Material Weakness in Internal Control Over Compliance Recommendation: Management should formally discharge any clients that are unable to complete the eligibility screening prior to the end of the 24-month eligibility period. View of responsible officials: Management concurs with the finding and will implement procedures to ensure that timely documentation is received with regard to eligibility. Name(s) of the Contact Person(s) Responsible for Corrective Action: Mara Carter, Senior Director Community Health, 703-321-2687. Corrective Action Planned: Inova will continue to adhere to the 24-month eligibility set forth by VDH, and not provide any services to RWHAP clients who have not completed their reassessment within the required 24-month period. Inova will update its reminder system to contact clients who are nearing the end of their eligibility period to make sure that they do not have a break in service, VDH suggests 30-45 days prior to their 24-month eligibility date. Inova will institute its own monthly tracking outside of Provide to more effectively track clients and their 24-month eligibility. RWHAP clients who fail to provide reassessment documentation will be terminated from the program. Planned Completion Date for Corrective Action Planned: Ongoing with completion date of December 31, 2024.

View Audit 327329

Finding 504699 (2023-003)

Material Weakness 2023

Special Olympics Arizona, Inc.

AZ

Allowable Costs / Cost Principles Material Weakness § 200.430

Item: 2023-003 Assistance Listing Number: 84.425U Programs: American Rescue Plan – Elementary and Secondary School Emergency Relief (ARP ESSER) Federal Agency: U.S. Department of Education Pass-Through Agencies: Arizona Department of Education Pass-Through Grantor Identifying Number: Unknown Award Y...

Item: 2023-003 Assistance Listing Number: 84.425U Programs: American Rescue Plan – Elementary and Secondary School Emergency Relief (ARP ESSER) Federal Agency: U.S. Department of Education Pass-Through Agencies: Arizona Department of Education Pass-Through Grantor Identifying Number: Unknown Award Year: April 19, 2022 to September 30, 2024 Criteria: In accordance with 2 CFR § 200.430 – Compensation – the entity’s system of internal controls should include a process to review after-the-fact interim charges made to federal awards based upon budget or allocation estimates. Condition: The entity’s system of internal controls did not include a process to review after-thefact interim payroll charges made to federal awards based upon budget or allocation estimates. Name of Contact Person: Doug Taylor, CFO Phone Number: (602) 230-1116 Anticipated Completion Date: December 31, 2024 Views of Responsible Officials and Corrective Actions: Special Olympics Arizona, Inc. revised its policies and procedures for the 4th quarter of 2023 to require that actual time be recorded on timesheets for the actual efforts spent on Federal awards. Management will utilize actual time and effort when charging expenditures to Federal awards going forward.

View Audit 327314

Finding 504697 (2023-002)

Material Weakness 2023

Special Olympics Arizona, Inc.

AZ

Allowable Costs / Cost Principles Material Weakness § 200.430

Item: 2023-002 Assistance Listing Number: 21.027 Programs: Coronavirus State and Local Fiscal Recovery Funds Federal Agency: U.S. Department of the Treasury Pass-Through Agencies: Arizona State Office of the Governor; Maricopa County Pass-Through Grantor Identifying Number: Unknown Award Year: Janua...

Item: 2023-002 Assistance Listing Number: 21.027 Programs: Coronavirus State and Local Fiscal Recovery Funds Federal Agency: U.S. Department of the Treasury Pass-Through Agencies: Arizona State Office of the Governor; Maricopa County Pass-Through Grantor Identifying Number: Unknown Award Year: January 1, 2022 to December 31, 2024; January 28, 2022 to June 30, 2023 Criteria: In accordance with 2 CFR § 200.430 – Compensation – the entity’s system of internal controls should include a process to review after-the-fact interim charges made to federal awards based upon budget or allocation estimates. Condition: The entity’s system of internal controls did not include a process to review after-thefact interim payroll charges made to federal awards based upon budget or allocation estimates. Name of Contact Person: Doug Taylor, CFO Phone Number: (602) 230-1116 Anticipated Completion Date: December 31, 2024 Views of Responsible Officials and Corrective Actions: Special Olympics Arizona, Inc. revised its policies and procedures for the 4th quarter of 2023 to require that actual time be recorded on timesheets for the actual efforts spent on Federal awards. Management will utilize actual time and effort when charging expenditures to Federal awards going forward.

View Audit 327314

Finding 504642 (2023-009)

Significant Deficiency 2023

Saint Paul Public Schools

MN

Questioned Costs Allowable Costs / Cost Principles Significant Deficiency

Significant Deficiency in Internal Control Over Compliance and Material Noncompliance Allowable Costs/Cost Principals Recommendation: We recommend the District reviews its procedures and controls over payroll to ensure supporting documentation for time & effort is retained, reviewed and approved f...

Significant Deficiency in Internal Control Over Compliance and Material Noncompliance Allowable Costs/Cost Principals Recommendation: We recommend the District reviews its procedures and controls over payroll to ensure supporting documentation for time & effort is retained, reviewed and approved for all employees. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: The District will review its procedures and controls over its transactions to ensure it has supporting documentation that is retained, reviewed and approved for all employees. Name(s) of the contact person(s) responsible for corrective action: Tom Sager, Executive Chief of Financial Services Planned completion date for corrective action plan: December 31, 2024

View Audit 327202 Questioned Costs: $1

Finding 504630 (2023-003)

Material Weakness 2023

Saint Paul Public Schools

MN

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

Material Weakness in Internal Control Over Compliance and Material Noncompliance Allowable Costs/Cost Principals Recommendation: We recommend the District reviews its procedures and controls over payroll to ensure supporting documentation for time & effort is retained, reviewed and approved for al...

Material Weakness in Internal Control Over Compliance and Material Noncompliance Allowable Costs/Cost Principals Recommendation: We recommend the District reviews its procedures and controls over payroll to ensure supporting documentation for time & effort is retained, reviewed and approved for all employees. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: The District will review its procedures and controls over payroll to ensure supporting documentation for time & effort is retained, reviewed and approved for all employees. Name(s) of the contact person(s) responsible for corrective action: Tom Sager, Executive Chief of Financial Services Planned completion date for corrective action plan: December 31, 2024

View Audit 327202

Finding 504622 (2023-005)

Material Weakness 2023

Saint Paul Public Schools

MN

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

aterial Weakness in Internal Control Over Compliance and Material Noncompliance Allowable Costs/Cost Principals Recommendation: We recommend the District reviews its procedures and controls over payroll to ensure supporting documentation for time & effort is retained, reviewed and approved for all...

aterial Weakness in Internal Control Over Compliance and Material Noncompliance Allowable Costs/Cost Principals Recommendation: We recommend the District reviews its procedures and controls over payroll to ensure supporting documentation for time & effort is retained, reviewed and approved for all employees. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: The District will review its procedures and controls over payroll to ensure supporting documentation for time & effort is retained, reviewed and approved for all employees. Name(s) of the contact person(s) responsible for corrective action: Tom Sager, Executive Chief of Financial Services Planned completion date for corrective action plan: December 31, 2024

View Audit 327202

Finding 504618 (2023-004)

Material Weakness 2023

Saint Paul Public Schools

MN

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

Material Weakness in Internal Control Over Compliance and Material Noncompliance Allowable Costs/Cost Principals Recommendation: We recommend the District reviews its procedures and controls over payroll to ensure supporting documentation for time & effort is retained, reviewed and approved for al...

Material Weakness in Internal Control Over Compliance and Material Noncompliance Allowable Costs/Cost Principals Recommendation: We recommend the District reviews its procedures and controls over payroll to ensure supporting documentation for time & effort is retained, reviewed and approved for all employees. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: The District will review its procedures and controls over payroll to ensure supporting documentation for time & effort is retained, reviewed and approved for all employees. Name(s) of the contact person(s) responsible for corrective action: Tom Sager, Executive Chief of Financial Services Planned completion date for corrective action plan: December 31, 2024

View Audit 327202

Finding 504425 (2023-002)

Significant Deficiency 2023

Horizon House, Inc.

PA

Allowable Costs / Cost Principles Period of Performance Internal Control / Segregation of Duties

Corrective Action The exceptions were a result of review and approval documentation lacking certain information to identify non-recurring components of certain charges. In order to prevent this from reoccurring, the Agency will modify the current review, approval and payment documentation to specif...

Corrective Action The exceptions were a result of review and approval documentation lacking certain information to identify non-recurring components of certain charges. In order to prevent this from reoccurring, the Agency will modify the current review, approval and payment documentation to specifically and clearly identify all components of each monthly payment separately, rent or subsidy amount, and any retroactive eligible amounts to be paid, along with a detailed explanation for any retroactive amount. This new protocol will clearly identify to the reviewer any and all adjustments from the appropriate expenditure amount that is being requested to be paid each month along with an explanation of the adjustment amount. By implementing this corrective action plan, we aim to prevent future deviations with respect to the recognition of expenditures in the proper period in accordance with contract terms. Individual Responsible for Corrective Action Plan Deborah Bordley, Controller 215-386-3838 Anticipated Completion Date: November 1, 2024

View Audit 326982

Finding 504393 (2023-001)

Significant Deficiency 2023

Rtog Foundation, Inc.

PA

Allowable Costs / Cost Principles Internal Control / Segregation of Duties

Finding 2023-001 – Segregation of Duties Statement of Condition: The Foundation does not have adequate segregation of duties present for the approval of payments to subcontractors, which is reflected as federal subcontracts expense on the financial statements. The project manager, who was responsib...

Finding 2023-001 – Segregation of Duties Statement of Condition: The Foundation does not have adequate segregation of duties present for the approval of payments to subcontractors, which is reflected as federal subcontracts expense on the financial statements. The project manager, who was responsible for reviewing and approving the subcontractor’s invoices in preparation for payment authorization by members of the Foundation’s Board, was employed by the subcontractor. Management Response: In August of 2022, the RTOG Foundation Inc. executed a Financial Management Services Agreement with the NSABP Foundation Inc. to provide oversight and management of financial statement preparation. The independent resources provided under this contract include day to day financial support from a Director of Finance with a supporting staff of accountants, financial analysts, and top-level oversight by a Senior Director of Finance with extensive experience in the financial management of clinical trials. The prior project manager referenced above has relinquished all financial accounting responsibilities and appropriate segregation of duties has been achieved, including, but not limited to, internal controls surrounding the payment of invoices. Routine financial analysis, account reconciliations, treasury functions, audit support and budgeting are also included under this services agreement. Monthly financial results are reviewed with the Board of Directors at regularly scheduled meetings.

View Audit 326962

Finding 504325 (2023-006)

Significant Deficiency 2023

Tennessee Immigrant and Refugee Rights Coalition

TN

Allowable Costs / Cost Principles Period of Performance

2023-006: Inadequate Documentation of Expense Approvals Corrective Action: The organization has since implemented additional controls to monitor expenses from government funding. The organization will implement a spending policy for federal funding and the organization uses expense tracking software...

2023-006: Inadequate Documentation of Expense Approvals Corrective Action: The organization has since implemented additional controls to monitor expenses from government funding. The organization will implement a spending policy for federal funding and the organization uses expense tracking software and will implement regular approvals from program managers and directors of all federal expenses. Given the additional systems in place, we do not anticipate an issue with inadequate documentation of expense approvals and oversight moving forward.

View Audit 326873

Finding 504257 (2023-001)

Material Weakness 2023

Deerbrook, Inc.

MO

Allowable Costs / Cost Principles Special Tests & Provisions Subrecipient Monitoring

CORRECTIVE ACTION PLAN FOR THE YEAR ENDED JUNE 30, 2023 Title 2, U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance), Subpart F, Section 511 – Audit Findings Follow-up requires the auditee to pr...

CORRECTIVE ACTION PLAN FOR THE YEAR ENDED JUNE 30, 2023 Title 2, U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance), Subpart F, Section 511 – Audit Findings Follow-up requires the auditee to prepare a corrective action plan to address each audit finding included in the current year auditor’s reports. The Corrective Action Plan for Current Year Findings present our corrective action plan for the Financial Statement and/or Federal Award Findings described in the accompanying Schedule of Findings and Questioned Costs for the period ended June 30, 2023. Finding 2023-001 Responsible Party Name: Myra Cerna Position: Project Accountant Telephone Number: (816) 608-1799 x 259 Federal Agency Department of Housing and Urban Development Federal Program Supportive Housing for Persons with Disabilities (Sec 811) Compliance Requirements A/B - Activities Allowed or Unallowed and Allowable Costs/Cost Principles, C – Cash Management, E – Eligibility, and N – Special Tests and Provisions Finding Type Financial Statement and Federal Awards Auditee’s Comment on Finding We agree with the auditor’s finding. Corrective Action Management reported that the failure(s) involved records related to the period managed by the predecessor management company. We will request and keep all required documentation from HUD and establish processes and procedures to ensure compliance with the Regulatory Agreement or Capital Advance Use Agreement. Anticipated Completion Date June 30, 2024

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