Corrective Action Plans

Finding 518474 (2023-002)

Material Weakness 2023

Rhode Island Association of Conservation Districts

RI

Internal Control / Segregation of Duties Allowable Costs / Cost Principles Cash Management

RIACD has instituted a system by which all transactions are reviewed by the Treasurer (or a delegate), completed by the Secretary or President, and recorded by a contracted administrator. This system, instituted in early 2024, ensures adequate separation of duties to ensure that all federal funds ar...

RIACD has instituted a system by which all transactions are reviewed by the Treasurer (or a delegate), completed by the Secretary or President, and recorded by a contracted administrator. This system, instituted in early 2024, ensures adequate separation of duties to ensure that all federal funds are spent appropriately. RIACD’s current Treasurer is an experienced businessman who is knowledgeable about accounting principals and budget management, and his expertise is a credit to the Board. He recently committed to serve an addition two-year term in the role. Marcum has reviewed this new approval system and advised that it is an appropriate way to proceed with this correct action. RIACD identified Phil Moreschi, Treasurer, as the party responsible for this corrective action. You can contact Phil Moreschi and philmor54@comcast.net.

View Audit 336931

Finding 518152 (2023-016)

Material Weakness 2023

Mental Health Association of Columbia-Greene Counties Inc.

NY

Allowable Costs / Cost Principles Procurement, Suspension & Debarment

All management will be educated on the procurement policy as well as the information noted from the CFR sections indicated in the findings by the Director of Finance. The Director of Finance will research and provide education to the Executive Leadership related to this finding during the Executive ...

All management will be educated on the procurement policy as well as the information noted from the CFR sections indicated in the findings by the Director of Finance. The Director of Finance will research and provide education to the Executive Leadership related to this finding during the Executive Leadership meeting. All Grants and cooperative agreements must be filed with the fiscal department. All expenditures must be approved prior to purchase / payment with sign off from Executive Director or Director of Finance.

View Audit 336457

Finding 518086 (2023-001)

Significant Deficiency 2023

The Montessori Network

IL

Allowable Costs / Cost Principles Cash Management Internal Control / Segregation of Duties

Audit Recommendation: Procedures should be consistently applied requiring the reconciliation of submitted personnel activity reports to the employees' actual costs allocated and charged to federal and other programs. Planned Corrective Actions: This finding was initially identified during fiscal yea...

Audit Recommendation: Procedures should be consistently applied requiring the reconciliation of submitted personnel activity reports to the employees' actual costs allocated and charged to federal and other programs. Planned Corrective Actions: This finding was initially identified during fiscal year 2020, and corrective actions were taken by the School in 2021. To address the issue, the School implemented new procedures that require a monthly review by management, which includes a detailed reconciliation of submitted personnel activity reports to vouchers prepared for federal and other programs. This reconciliation process helps to ensure that payroll cost allocation accurately reflects the submitted personnel activity reports. In addition, the School has made changes to its payroll system to ensure accurate time tracking for its various programs. This includes changing the service provider responsible for voucher submissions. These changes will help to prevent similar issues from occurring in the future and ensure that employee-related costs are accurately allocated to the appropriate programs. As of 2022, the School has successfully implemented these changes and continues to review and monitor its procedures to maintain compliance with federal and other program regulations. Finding was repeated during FY23, as the School was in the process of transitioning accounts during the period of exceptions noted. Anticipated Completion Date: June 30, 2023 Contact Person: Rita Nolan, Executive Director

View Audit 336394

Finding 517955 (2023-012)

Material Weakness 2023

Unified Government of Wyandotte County and Kansas City, Kansas

KS

Allowable Costs / Cost Principles Cash Management Material Weakness § 200.303

U.S Department of Homeland Security Staffing for Adequate Fire and Emergency Response (SAFER) – 97.083 Management’s Response: During 2024, management worked with the Fire Department and Payroll to ensure only straight time was coded to this grant and no overtime was charged to this grant. This was a...

U.S Department of Homeland Security Staffing for Adequate Fire and Emergency Response (SAFER) – 97.083 Management’s Response: During 2024, management worked with the Fire Department and Payroll to ensure only straight time was coded to this grant and no overtime was charged to this grant. This was a finding in 2022 but we were not aware until the audit was completed in 2024 there was an issue the existing payroll system was not flagging. This has been corrected in in 2024 and should not be a recurring issue. Views of Responsible Officials and Corrective Action: The reason for recurrence is the finding was communicated late in the prior year. Management will work with stakeholders so that only the allowed costs are used as the basis of the reimbursement packet. We have also created fencing around allowed costs and period of performance in our new ERP system. Management will ensure this is addressed by December 31, 2024. Responsible Official: Dr. Shelley Kneuvean Chief Financial Officer Unified Government of Wyandotte County & Kansas City KS

View Audit 336226

Finding 517952 (2023-009)

Material Weakness 2023

Unified Government of Wyandotte County and Kansas City, Kansas

KS

Questioned Costs Allowable Costs / Cost Principles § 200.303 § 200.430

U.S. Department of Health and Human Services, passed through Kansas Department of Aging Aging Cluster – ALN 93.045 – Special Programs for the Aging_Title III, Part C_Nutrition Services – 2301KSOAHD Management’s Response: The department had been using set percentage allocations for grants in the payr...

U.S. Department of Health and Human Services, passed through Kansas Department of Aging Aging Cluster – ALN 93.045 – Special Programs for the Aging_Title III, Part C_Nutrition Services – 2301KSOAHD Management’s Response: The department had been using set percentage allocations for grants in the payroll system. They are working with payroll and IT to be able to do real time reporting on personnel, number of daily hours per grant. This should be implemented in 2025. Views of Responsible Officials and Corrective Action: The reason for recurrence is the finding was communicated late in the prior year and due to transition and turnover within the department's staff. Management agrees with the stated finding and has implemented a corrective action plan. Management will ensure this is addressed by December 31, 2025. Responsible Official: Dr. Shelley Kneuvean Chief Financial Officer Unified Government of Wyandotte County & Kansas City KS

View Audit 336226 Questioned Costs: $1

Finding 517915 (2023-002)

Significant Deficiency 2023

Afghan Medical Professionals Association of America

VA

Allowable Costs / Cost Principles Internal Control / Segregation of Duties

All of AMPAA’s transactions are electronic using the accounting software from QuickBooks. Monthly billing invoices will either be generated through QuickBooks or uploaded into QuickBooks on the date received. When cash is deposited it will be applied against the appropriate invoice in QuickBooks. Di...

All of AMPAA’s transactions are electronic using the accounting software from QuickBooks. Monthly billing invoices will either be generated through QuickBooks or uploaded into QuickBooks on the date received. When cash is deposited it will be applied against the appropriate invoice in QuickBooks. Disbursements will be entered into QuickBooks directly. Bank account balances will be compared per trial balances with all QuickBooks transactions reconciled to the monthly bank statements. For procurement processes, all invoices will be issued and cleared through QuickBooks.

View Audit 336179

Finding 517903 (2023-006)

Significant Deficiency 2023

Hips

DC

Allowable Costs / Cost Principles Procurement, Suspension & Debarment Eligibility § 200.414

Views of Responsible Officials: Prior to receiving this finding, HIPS was not in the practice of saving documentation of financial or programmatic reporting submission. Staff responsible for submissions are now documenting submission of reports as of 2024. Incorrect application of the de minimis rat...

Views of Responsible Officials: Prior to receiving this finding, HIPS was not in the practice of saving documentation of financial or programmatic reporting submission. Staff responsible for submissions are now documenting submission of reports as of 2024. Incorrect application of the de minimis rate was due to an error in the funder-provided spreadsheet. HIPS Finance Manager has been tasked with checking all spreadsheet calculations prior to submissions of financial reporting.

View Audit 336157

Finding 517902 (2023-005)

Significant Deficiency 2023

Hips

DC

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

Views of Responsible Officials: This deficiency was noted internally even before the auditors flagged it in April 2024. Effective April 2024 the allocation of salaries and wages to different grants was transferred back to the Finance Manager who has more information regarding the grants timing, empl...

Views of Responsible Officials: This deficiency was noted internally even before the auditors flagged it in April 2024. Effective April 2024 the allocation of salaries and wages to different grants was transferred back to the Finance Manager who has more information regarding the grants timing, employees involved, % of time spent et al. In addition, the salaries and wages allocation is now a prerequisite for the invoicing process every month. HIPS have already seen significant improvements in both accuracy in seeking salaries and wages reimbursement as well as in wages reconciliations against paychex reports. COLA adjustments will be recorded more accurately and approval documented. As of 2024, HIPS has also updated our HR policy to provide written documentation by the Operations Manager of COLA increases to each staff member when they are implemented.

View Audit 336157

Finding 517887 (2023-003)

Material Weakness 2023

Tuscarawas County

OH

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

Every quarter, Income Maintenance and Social Services will each get a minimum of 354 RMS hits. Each participant will get an e-mail 2-5 minutes before the time of the RMS hit. The participant will have only 48 hours to complete the RMS hit before it expires. After 12 hours of no response, the par...

Every quarter, Income Maintenance and Social Services will each get a minimum of 354 RMS hits. Each participant will get an e-mail 2-5 minutes before the time of the RMS hit. The participant will have only 48 hours to complete the RMS hit before it expires. After 12 hours of no response, the participant and the observer (their supervisor) will get a reminder e-mail. After 36 hours of no response, the participant, the observer, and the RMS Coordinator (business office) will get a reminder e-mail. Once the participant gets the e-mail, the participant will open the e-mail, click the link, log into the system, and fill out the RMS hit as accurately as possible. The RMS hit will have a comment box; this is where the participant will put what they were doing and the case number if applicable. Any other documentation needed to support the hit should be kept in a folder or scanned and kept on the computer. It is also good practice to note in running record that the participant received an RMS hit at that specific time. Once the RMS hit is complete, it is sent either to the Observer or the RMS Coordinator for approval. If the RMS hit is a Control Member, the RMS will be sent to the Observer for their approval. If it is accurate, the Observer will approve the RMS hit and it will be sent to the RMS Coordinator for approval. If the RMS hit is not a control member, the Observer step will be skipped. If the participant is not available at the time of the RMS hit because that person is in the field, the coordinator may contact the supervisor to find out what the participant is doing. The RMS Coordinator may then fill out the RMS hit and document that he/she has talked to the supervisor and confirmed the activity the participant was doing. Once the RMS hit has been submitted to the RMS Coordinator, the hit can be approved or invalidated. The RMS Coordinator has 72 hours of the observation time to complete this step. The Fiscal Supervisor and the Coordinator will meet, as needed, to go over these hits and check for accuracy.

View Audit 336127

Finding 517882 (2023-003)

Significant Deficiency 2023

Gay City Health Project

WA

Matching / Level of Effort / Earmarking Internal Control / Segregation of Duties Subrecipient Monitoring

Finding 2023‐003 Significant deficiency in internal control over compliance with the level of effort requirements applicable to the major program. Corrective Action Plan: We will implement internal control processes to identify and then track any level of effort metrics, and deliverables, noted in o...

Finding 2023‐003 Significant deficiency in internal control over compliance with the level of effort requirements applicable to the major program. Corrective Action Plan: We will implement internal control processes to identify and then track any level of effort metrics, and deliverables, noted in our federal awards. Anticipated Completion Date: December 31, 2024 Name(s) of the Contact Person(s) Responsible for Corrective Action: Elle Brooks, Health Services Director and Francis Slaughter, Data Scientist

View Audit 336089

Finding 517880 (2023-001)

Material Weakness 2023

Gay City Health Project

WA

Questioned Costs Allowable Costs / Cost Principles § 200.405

Finding 2023‐001 Material weakness in internal controls over compliance and instances of noncompliance related to allowable costs/cost principles compliance requirements. Corrective Action Plan: We will implement the process of allocating bonuses in proportion to the time and effort charged to the g...

Finding 2023‐001 Material weakness in internal controls over compliance and instances of noncompliance related to allowable costs/cost principles compliance requirements. Corrective Action Plan: We will implement the process of allocating bonuses in proportion to the time and effort charged to the grant unless otherwise agreed upon with the grantors. We will also implement the process of allocating overhead costs such as for the audit and insurance that benefit federal programs and others, based on the proportional benefit received. Anticipated Completion Date: December 31, 2024 Name(s) of the Contact Person(s) Responsible for Corrective Action: Josh Freese, Finance Manager

View Audit 336089 Questioned Costs: $1

Finding 517823 (2023-002)

Material Weakness 2023

Zanesville-Muskingum County General Health District

OH

Questioned Costs Subrecipient Monitoring Allowable Costs / Cost Principles § 200.420 § 200.476

Finding Number: 2023-002 Planned Corrective Action: Allowable Costs/Cost Principles Re: Noncompliance / Material Weakness/ Questioned Cost • ZMCHD has developed a spreadsheet for management to review time and activity of their staff including time worked and effort documentation quarterly based on a...

Finding Number: 2023-002 Planned Corrective Action: Allowable Costs/Cost Principles Re: Noncompliance / Material Weakness/ Questioned Cost • ZMCHD has developed a spreadsheet for management to review time and activity of their staff including time worked and effort documentation quarterly based on actual time worked vs. budgeted time worked. Any necessary corrections will be shared with the fiscal officer to ensure corrections are made as necessary. • ZMCHD will ensure staff are educated on how to report time worked when they are doing activities for multiple programs and ensure that staff are disciplined when they are not reporting correctly. Anticipated Completion Date: 12/31/2024 Responsible Contact Person: Erin Wood, Chief Administrative Officer

View Audit 335989 Questioned Costs: $1

Finding 517735 (2023-002)

Material Weakness 2023

Bay St. Louis-Waveland School District

MS

Questioned Costs Cash Management Allowable Costs / Cost Principles

2023-002 Cash management excessive cash and fund balances. A. Name of contact person responsible for corrective action: Name: Thomas J. Burleson Title: Business Administrator B. Corrective action planned: It is recommended that the district implement policies or procedures to establish an internal c...

2023-002 Cash management excessive cash and fund balances. A. Name of contact person responsible for corrective action: Name: Thomas J. Burleson Title: Business Administrator B. Corrective action planned: It is recommended that the district implement policies or procedures to establish an internal control system that will ensure funds are expended for reimbursable grants before requested reimbursement. C. Anticipated completion date: June 30, 2024.

View Audit 335824 Questioned Costs: $1

Finding 517614 (2023-007)

Material Weakness 2023

Children's Home of Kingston

NY

Allowable Costs / Cost Principles

The Agency’s management agrees with this finding. During the upcoming fiscal year, the Chief Financial Officer (Fabio Alvarez) will work with various departments within the Agency including the HR (Angela Cacciola) and ORR (Catherine Cruz) program directors to identify items that are direct charges ...

The Agency’s management agrees with this finding. During the upcoming fiscal year, the Chief Financial Officer (Fabio Alvarez) will work with various departments within the Agency including the HR (Angela Cacciola) and ORR (Catherine Cruz) program directors to identify items that are direct charges or allocated based on percentages to the Unaccompanied Alien Children (UAC) grant where possible. Allocation methods, that are allowable under the funding sources, will be reviewed for implementation. Methods, such as quarterly time studies, direct recording of time or other methods will be considered to ensure there is supporting documentation. The approved budget is also being monitored on a monthly and/or quarterly basis and compared to the UAC approved budget. Implementation of this corrective action plan commenced September 2024 with new finance administration team under the leadership of new chief financial officer (Fabio Alvarez). Please note that for fiscal years 2023-2024, the implementation will still be a work in progress.

View Audit 335657

Finding 517510 (2023-002)

None 2023

St Lukes Senior Housing, INC

CT

Allowable Costs / Cost Principles Procurement, Suspension & Debarment HUD Housing Programs

Finding number 2023-002: 14.157 Supportive Housing for the Elderly Condition: The Project was late in making its July city real estate tax payment of which the first half is due August 1 of each year incurring a penalty of $1,754.89. This penalty is not an allowed Project cost. Recommendation: Other...

Finding number 2023-002: 14.157 Supportive Housing for the Elderly Condition: The Project was late in making its July city real estate tax payment of which the first half is due August 1 of each year incurring a penalty of $1,754.89. This penalty is not an allowed Project cost. Recommendation: Other sources should be sought out to pay these penalties or other expenses be deferred to enable the taxes to be paid on time. Action Taken: To avoid incurring interest on taxes due in January 2025 and beyond, management has implemented a policy to set aside funds the month prior to the due date to eliminate the risk that delayed subsidy or other funding shortfall makes timely payment impossible. The Project will seek donations or other funding sources to recover funds. If the U.S. Department of Housing and Urban Development has questions regarding this plan, please call Matthew Fontaine at (860) 951-9411 extension 249. Sincerely, Matthew Fontaine, CPA Managing Agent

View Audit 335512

Finding 517455 (2023-004)

Significant Deficiency 2023

Powder House Pass Community Improvement District

SD

Allowable Costs / Cost Principles

Finding No. 2023-004: Uniform Guidance Requirements The District personnel and Board of Supervisors will develop written policies in 2024 and will file the data collection form timely in 2025. Jay Headley is responsible for this finding.

View Audit 335419

Finding 517396 (2023-006)

Material Weakness 2023

Tennessee Pharmacists Research and Education Foundation

TN

Questioned Costs Allowable Costs / Cost Principles

Management's Response: We concur. View of Responsible Officials and Corective Action: TPREF will contact the State to offer a solution, to replace the unallowable expense with an allowable expense. TPREF grant staff will review Uniform Guidance to gain a better understanding of these requirements in...

Management's Response: We concur. View of Responsible Officials and Corective Action: TPREF will contact the State to offer a solution, to replace the unallowable expense with an allowable expense. TPREF grant staff will review Uniform Guidance to gain a better understanding of these requirements in the future. Anticipated Completion Date: TPREF will conduct outreach to the State by December 31, 2024.

View Audit 335362 Questioned Costs: $1

Finding 517395 (2023-005)

Material Weakness 2023

Tennessee Pharmacists Research and Education Foundation

TN

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

Management's Response: We concur. View of Responsible Officials and Conective Action: The CEO has reviewed the timesheet policy with all staff attributed to grant work. These timesheets are reviewed by CEO. TPREF will review the findings with the State and identify mechanisms to properly capture sta...

Management's Response: We concur. View of Responsible Officials and Conective Action: The CEO has reviewed the timesheet policy with all staff attributed to grant work. These timesheets are reviewed by CEO. TPREF will review the findings with the State and identify mechanisms to properly capture staff time allocations. Anticipated Completion Date: Effective January 1, 2024, all current and new staff have been retrained on the process for submitting their monthly time sheets. TPREF will follow-up with the State by December 31, 2024.

View Audit 335362 Questioned Costs: $1

Finding 517394 (2023-004)

Material Weakness 2023

Tennessee Pharmacists Research and Education Foundation

TN

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

Management's Response: We concur. View of Responsible Officials and Corrective Action: The CEO and the finance team have implemented a process to submit reimbursement for prior month's work by conclusion of the following month. The CEO has implemented a process to aggressively follow-up with the sta...

Management's Response: We concur. View of Responsible Officials and Corrective Action: The CEO and the finance team have implemented a process to submit reimbursement for prior month's work by conclusion of the following month. The CEO has implemented a process to aggressively follow-up with the state accounting team to ensure the state is holding true to a proper timeline of reimbursement. The CEO utilizes this follow-up messaging to the state to ensure all proper documentation has been assessed properly at each stage of the state's review process. Anticipated Completion Date: TPREF has implemented this new process as of January 1, 2024.

View Audit 335362

Finding 517393 (2023-003)

Material Weakness 2023

Tennessee Pharmacists Research and Education Foundation

TN

Questioned Costs Allowable Costs / Cost Principles Cash Management

Management's Response: We concur. View of Responsible Officials and Corrective Action: The CEO and the Project Manager have created a tracking document to closely monitor the utilization of marketing services completed and accounted for within the requested reimbursement. The CEO will review the ass...

Management's Response: We concur. View of Responsible Officials and Corrective Action: The CEO and the Project Manager have created a tracking document to closely monitor the utilization of marketing services completed and accounted for within the requested reimbursement. The CEO will review the assessment tracker to account for only those marketing services completed in 2023-year end financials. Anticipated Completion Date: The tracking documentation has been deployed at the start of services with subcontractor. With new accounting software completely implemented in 2024, the correction to this accounting of services has been corrected by June 30, 2024.

View Audit 335362 Questioned Costs: $1

Finding 517203 (2023-002)

Significant Deficiency 2023

Springfield Housing Authority

MA

HUD Housing Programs Reporting Allowable Costs / Cost Principles

Name of Auditee: Springfield Housing Authority Name of Audit Firm: EFPR Group, CPAs, PLLC Period Covered by the Audit: March 31, 2023 CAP Prepared by: Denise Jordan, Executive Director Phone: (413) 785-4500 (A) Current Findings on the Schedule of Findings and Questioned Costs (2) Finding 2023-002 (a...

Name of Auditee: Springfield Housing Authority Name of Audit Firm: EFPR Group, CPAs, PLLC Period Covered by the Audit: March 31, 2023 CAP Prepared by: Denise Jordan, Executive Director Phone: (413) 785-4500 (A) Current Findings on the Schedule of Findings and Questioned Costs (2) Finding 2023-002 (a) Comments on the finding and recommendation - The Authority agrees with the findings. The Authority also agrees with the recommendations, please see below for action taken. (b) Action taken - The Authority will provide on-going training for finance and accounting personnel to expand their knowledge on HUD reporting requirements related to VMS. Additionally, the Authority will conduct a thorough review to identify the root cause of the discrepancies between the VMS data and the supporting documentation. (c) Planned implementation date of corrective action - Completed by March 31, 2025.

View Audit 335173

Finding 517191 (2023-007)

Material Weakness 2023

Project Hood Communities Development Corporation

IL

Allowable Costs / Cost Principles Internal Control / Segregation of Duties

The Organization will review its timesheet tracking and reconciliation procedures and make any necessary revisions to ensure that expenditures charged to grants align with the timesheets. Additionally, the Organization will reconcile timesheets to amounts allocated to grants on at least a quarterly ...

The Organization will review its timesheet tracking and reconciliation procedures and make any necessary revisions to ensure that expenditures charged to grants align with the timesheets. Additionally, the Organization will reconcile timesheets to amounts allocated to grants on at least a quarterly basis.

View Audit 335152

Finding 517097 (2023-014)

Significant Deficiency 2023

Guam Department of Education

GU

Questioned Costs Allowable Costs / Cost Principles Equipment & Real Property Management

Finding No.: 2023-014 Federal Agency: U.S. Department of Education AL Program: 84.425 Education Stabilization Fund ED Subprogram: 84.425 Education Stabilization Fund - State Educational Agency (Outlying Areas) (ESF-SEA) Federal Award No.: COVID-19 S425A210003 Area: Allowable Costs/Cost Principles Qu...

Finding No.: 2023-014 Federal Agency: U.S. Department of Education AL Program: 84.425 Education Stabilization Fund ED Subprogram: 84.425 Education Stabilization Fund - State Educational Agency (Outlying Areas) (ESF-SEA) Federal Award No.: COVID-19 S425A210003 Area: Allowable Costs/Cost Principles Questioned Costs: $378,118 Views of Auditee and Corrective Actions: GDOE disagrees with the condition related to Simon Sanchez High School (SSHS) as the units were used prior to the school’s closure. The units for SSHS were received and installed in October 2022. According to the school principal, all units were utilized in classrooms and offices. Following Typhoon Mawar, the school was deemed unsafe for occupancy, prompting the relocation of all units to a secured location. GDOE agrees with the condition related to F.B. Leon Guerrero Middle School (FBLGMS). However, GDOE would like to clarify that the units for FBLGMS were initially delivered to JP Torres for staging and assembly in December 2022, which coincided with the closure of the school. In February 2023, the unused units were transferred to Tiyan High School for secure storage. The units will continue to be securely stored until the new school facilities have completed construction in school year 2025-2026 and 2026-2027. Plan of action and completion date: GDOE plans to utilize the HEPA filtration systems across other federal awards from the same granting agency, to include the Consolidated Grant and Special Education programs. GDOE will also utilize the units as replacements for other schools as needed. Plan to monitor and responsible officials: Program Coordinator, Cellini Higa, will coordinate the use of the HEPA units for other federal awards and replacements for other schools.

View Audit 334970 Questioned Costs: $1

Finding 517094 (2023-011)

Significant Deficiency 2023

Guam Department of Education

GU

Questioned Costs Period of Performance Procurement, Suspension & Debarment

Finding No.: 2023-011 Federal Agency: U.S. Department of Education AL Program: 84.403 Consolidated Grant to the Outlying Areas Area: Period of Performance Questioned Costs: $11,004 Views of Auditee and Corrective Actions: GDOE disagrees with condition 1 related to FY 2024 purchase orders (PO). GDOE ...

Finding No.: 2023-011 Federal Agency: U.S. Department of Education AL Program: 84.403 Consolidated Grant to the Outlying Areas Area: Period of Performance Questioned Costs: $11,004 Views of Auditee and Corrective Actions: GDOE disagrees with condition 1 related to FY 2024 purchase orders (PO). GDOE PO 20240171 is a copy over of the third-party fiduciary agent (TPFA) PO 20230010 which was issued in December 2022, within the CG 21 period of performance. GDOE acknowledges that the re-issued GDOE purchase order was not timely processed, however the purchase order which encumbered the funds occurred in the appropriate performance period. Additionally, relative to payroll, FPD requests a list (i.e. Staffing Pattern) of all Federally funded personnel from HR. FPD distributes the list to CG Project Leads to validate and compare to the Federal Roster as approved in the Consolidated Grants (CG) Application. The list is updated to make any corrections necessary. Once validated by Project Leads and FPD, HR is given a memo requesting to change/correct the funding year to the new grant award. In GDOE’s Munis system, if the Human Resources (HR) employee salary records are not accurately updated, GDOE payroll will reflect dated pay tables until such time HR makes the appropriate updates based on project lead requests to update accounts to current grant year. GDOE recorded journal entries to transfer the improperly charged payroll expenditure to the appropriate grant year. Plan of action and completion date: The GDOE will perform a monthly review of all transactions to ensure charges are recorded in the appropriate grant year. Additionally, Grant Project Managers and Program Coordinators will work with the HR and Business Office any changes to accounts charged for federally funded payroll expenditures. IAO now provides an independent review of drawdown requests - a control that will help prevent liquidation after applicable period of performance Plan to monitor and responsible officials: Financial Affairs under the leadership of the Deputy of Finance and Administrative Services, Morgan W. Paul, and the GDOE Comptroller (vacant), will ensure an accountant is monitoring the expenditures of federal grants and the corresponding periods of performance and liquidation periods. Grant Project Managers and Federal Compliance review team will also provide timely communication for changes in grant year funding to HR relative to federal payroll.

View Audit 334970 Questioned Costs: $1

Finding 517090 (2023-009)

Material Weakness 2023

Guam Department of Education

GU

Questioned Costs Period of Performance Procurement, Suspension & Debarment

Finding No.: 2023-009 Federal Agency: U.S. Department of Education AL Program: 84.027 Special Education Grants to States Area: Period of Performance Questioned Costs: $80,983 Views of Auditee and Corrective Actions: GDOE agrees with Condition 1 questioned costs of $560. The questioned charges are re...

Finding No.: 2023-009 Federal Agency: U.S. Department of Education AL Program: 84.027 Special Education Grants to States Area: Period of Performance Questioned Costs: $80,983 Views of Auditee and Corrective Actions: GDOE agrees with Condition 1 questioned costs of $560. The questioned charges are related to TPFA purchase orders issued in fiscal year 2019, which falls outside of the period of performance. The expenditure for the 2019 purchase order was transferred from the TPFA Munis and recorded in the incorrect GDOE Munis account. GDOE disagrees with Condition 2 questioned costs of $18,041. In line with federal regulations, GDOE paid (liquidated) the obligations in question on January 4 and 26, 2024, which is before the liquidation end date of January 28, 2024.E&Y auditors are citing GDOE for the issued checks clearing the bank after the liquidation end date, however, liquidation occurs when the recipient draws funds from the grants management system and pays obligations and not specifically when checks clear the bank. GDOE agrees with Condition 2 $62,382 questioned costs. While GDOE Munis system has recorded expenses of $62,382 related to Special Education (SPED) obligations, funds were not drawn for these expenditures. In GDOE’s federal review process, drawdowns are reviewed in alignment with specific conditions for allowability and in compliance with period of performance timelines. The identified funds were not expended from SPED grants. To correct this reporting deficiency, GDOE will record journal entries to transfer the expenditures to appropriate funding sources. Similarly, GDOE improperly charged $3.1 million in payroll expenditures to SPED grants after the period of performance. Subsequently, GDOE corrected this finding by making the appropriate journal entries to transfer the improperly charged payroll expenditure to the appropriate grant year. Plan of action and completion date: The GDOE will perform a monthly review of all transactions to ensure charges are recorded in the appropriate grant year. Additionally, Grant Project Managers and Program Coordinators will timely communicate to the Human Resources and Business Office any changes to accounts charged for federally funded payroll expenditures. The IAO now provides an independent review of drawdown requests - a control that will help prevent liquidation after applicable period of performance Plan to monitor and responsible officials: Financial Affairs under the leadership of the Deputy of Finance and Administrative Services, Morgan W. Paul, and the GDOE Comptroller (vacant), will ensure an accountant is monitoring the expenditures of federal grants and the corresponding periods of performance and liquidation periods. Grant Project Managers and Federal Compliance review team will also provide timely communication for changes in grant year funding to HR relative to federal payroll.

View Audit 334970 Questioned Costs: $1

Corrective Action Plans

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