Corrective Action Plans

Finding 366539 (2023-002)

Significant Deficiency 2023

VA

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

Responsible Person, Title: Dana Loope, Accounts Payable Specialist The school board invoice payment process has a two-verificiation process. The first step is for the end user to acknowledge receipt and payment approval for invoice. The end user is to verify accura...

Responsible Person, Title: Dana Loope, Accounts Payable Specialist The school board invoice payment process has a two-verificiation process. The first step is for the end user to acknowledge receipt and payment approval for invoice. The end user is to verify accuracy of the invoice and receipt of goods or services. The second step is for the Accounts Payable employee to verify the accuracy of the invoice and approval for payment. The school board will review these processes with staff and the importance of this process.

View Audit 289378

Finding 366499 (2023-010)

Significant Deficiency 2023

New Mexico Highlands University

NM

Allowable Costs / Cost Principles Reporting

Recommendation: The auditor recommends the University strengthen controls in place to provide assurance that reports are submitted on a timely basis. Action Taken: The HEERF award was not setup in the same manner as other federal funds. A proper Principal Investigator should have been assigned to t...

Recommendation: The auditor recommends the University strengthen controls in place to provide assurance that reports are submitted on a timely basis. Action Taken: The HEERF award was not setup in the same manner as other federal funds. A proper Principal Investigator should have been assigned to this award and reporting should have been monitored by the Office of Research and Sponsored Projects. Going forward, all federal funds will follow the same setup procedure and reporting requirements. Due Date of Completion: Done Responsible Official: Stephanie Gonzales – VPFA/Comptroller and Office of Research and Sponsored Projects

View Audit 16132

Finding 11978 (2023-003)

None 2023

Delaware Valley University

PA

Special Tests & Provisions Student Financial Aid Allowable Costs / Cost Principles

Name of Responsible Individual: Jane Wang, Controller and Melissa Walsh, Director of Financial Aid Corrective Action: Students are awarded Federal Work Study based on financial need and their indication on the FAFSA that they are interested in Federal Work Study. Sometimes, students indicate they ...

Name of Responsible Individual: Jane Wang, Controller and Melissa Walsh, Director of Financial Aid Corrective Action: Students are awarded Federal Work Study based on financial need and their indication on the FAFSA that they are interested in Federal Work Study. Sometimes, students indicate they are not interested in Federal Work Study but end up pursuing campus employment. In these cases, we have re-allocated some students’ earnings to Federal Work Study if they remained eligible. Beginning with the 2024-2025 school year, all eligible students will be awarded Federal Work Study, regardless of their expressed interest. This will minimize the need to re-allocate funding between campus employment and Federal Work Study funding sources. Additionally, the Payroll department will enhance scrutiny and review within the federal work-study payroll process to ensure timely receipt of supporting documents for re-allocation and rectification of any errors before payroll processing. Anticipated Completion Date: Fall 2024

View Audit 16058

Finding 11975 (2023-002)

Significant Deficiency 2023

Irving Independent School District

TX

Allowable Costs / Cost Principles Significant Deficiency

Finding 2023-002 – Activities Allowed or Unallowed, Allowable Cost Principles 84.027/84.173 – Special Education Cluster (IDEA) Type of Finding – Compliance Finding and Significant Deficiency in Internal Control over Compliance Corrective Action Plan Federal Programs, along with Human Resources and B...

Finding 2023-002 – Activities Allowed or Unallowed, Allowable Cost Principles 84.027/84.173 – Special Education Cluster (IDEA) Type of Finding – Compliance Finding and Significant Deficiency in Internal Control over Compliance Corrective Action Plan Federal Programs, along with Human Resources and Business Services improved the current process in place when a federally funded employee resigns. We have put in place the Federal Compliance Officer and the CFO’s assistant in the workflow to be notified when a federally funded employee resigns or terminated so they can work with technology to get the Time and Effort certifications signed before their last day. Person(s) Responsible Meritza Webb, Executive Director of HR & HRIS Mahdia Lalee, Director of Business Services Martina Fernandez, Executive Assistant to the CFO Dean Garcia, Federal Programs Monitoring & Compliance Specialist Anticipated Completion Date 12/31/2023

View Audit 16050

Finding 11936 (2023-001)

Material Weakness 2023

Highlands County District School Board

FL

Questioned Costs Subrecipient Monitoring Allowable Costs / Cost Principles

Corrective Action Plan - Title I rank and serve budgets are based on the original/final budgets. The total budget per school should never change and should match the rank and serve allocation. Because of staff turnover in Federal Programs, Business Operations, and Finance, the District was unable ...

Corrective Action Plan - Title I rank and serve budgets are based on the original/final budgets. The total budget per school should never change and should match the rank and serve allocation. Because of staff turnover in Federal Programs, Business Operations, and Finance, the District was unable to ensure the schools remained in rank and serve order for 2022-2023. An error was made during the year-end budget cleanup, which changed the schools' original budget. Budget revisions were done, to the Title I budget, to clean up negatives and bring major function object positive at year-end. The entry should have been done within the individual school budgets so the total budget would match the original/final budget. If this entry had not been done, the rank and serve allocations would match to the original buget. Previously, the District has monitored the program correctly and has maintained the District’s rank and serve order. The District will provide training and guidance to the new staff overseeing the grant and the budget allocations to ensure and enforce rank and serve order is maintained going forward. The District has reached out to DOE for guidance on correcting the finding and will follow up with Sean Freeman in the audit resolution and monitoring department once the audit report is published.

View Audit 15892 Questioned Costs: $1

Finding 11923 (2023-003)

Material Weakness 2023

Perham Hospital District

MN

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

Finding 2023-003 Federal Agency Name: Department of Health and Human Services Assistance Listing Number: #93.498 Program Name: COVID-19 Provider Relief Fund and American Rescue Plan (ARP) Rural Distribution Finding Summary: The Organization selected option iii to calculate lost revenue using budget...

Finding 2023-003 Federal Agency Name: Department of Health and Human Services Assistance Listing Number: #93.498 Program Name: COVID-19 Provider Relief Fund and American Rescue Plan (ARP) Rural Distribution Finding Summary: The Organization selected option iii to calculate lost revenue using budgeted net revenues to actual net revenues. The Organization utilized net revenues for part of the calculation and then utilized gross revenues in later quarters. This inconsistency of net and gross revenues caused a miscalculation of the Organization’s total lost revenue. Corrective Action Plan: Management will correct the lost revenue calculation using budgeted net revenues to actual net revenues. Management will enhance internal control procedures around the secondary review of the lost revenue calculation. Responsible Individuals: Justine Anderson, CFO Anticipated Completion Date: October 31, 2023

View Audit 15889

Finding 11909 (2023-004)

Significant Deficiency 2023

Foundation for Health Leadership and Innovation, Inc.

NC

Allowable Costs / Cost Principles

Corrective Action Plan: Going forward, management will have someone who is knowledgeable of federal activity review and approve all federal expenditures and allocations, including those relating to subrecipient FSRs. An officer will conduct a final review of the subrecipient status report. An off...

Corrective Action Plan: Going forward, management will have someone who is knowledgeable of federal activity review and approve all federal expenditures and allocations, including those relating to subrecipient FSRs. An officer will conduct a final review of the subrecipient status report. An officer’s signature denotes the expenditures have been reviewed indicating the form has been completed according to the award specifications.

View Audit 15830

Finding 11907 (2023-002)

Significant Deficiency 2023

Foundation for Health Leadership and Innovation, Inc.

NC

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

Corrective Action Plan: Management understands the importance of segregating financial and accounting duties to reduce the risk of fraud and error. Accordingly, as of fiscal year 2024, management has hired a new Chief Financial Officer (“CFO”) and Finance Manager. Internal control procedures have...

Corrective Action Plan: Management understands the importance of segregating financial and accounting duties to reduce the risk of fraud and error. Accordingly, as of fiscal year 2024, management has hired a new Chief Financial Officer (“CFO”) and Finance Manager. Internal control procedures have been implemented to include segregation of duties for approval and payment of expenditures with reconciliations performed by separate staff.

View Audit 15830

Finding 11883 (2023-001)

Significant Deficiency 2023

Goodwill of the Olympics & Rainier Region

WA

Subrecipient Monitoring Allowable Costs / Cost Principles Eligibility § 200.303

Contact Person(s): Program Staff: Eu-wanda Eagans Candice Dickason JoLynn Dunavant Gayle Mitchell Kwaji Miller Brinda Wood Fiscal Staff: Anne Porter Ken Gibbon Stephanie Staylen Nanette Smith Corrective Action Planned for finding that 2 of 13 participants tested did not have annual recertifications ...

Contact Person(s): Program Staff: Eu-wanda Eagans Candice Dickason JoLynn Dunavant Gayle Mitchell Kwaji Miller Brinda Wood Fiscal Staff: Anne Porter Ken Gibbon Stephanie Staylen Nanette Smith Corrective Action Planned for finding that 2 of 13 participants tested did not have annual recertifications of household income performed during the period under audit. • Assistant Program Manager to complete missing recertification paperwork and documents for the recertification of the participant still active in the SCSEP program by 2/29/24. The second participant has since exited the SCSEP program. To complete the missing recertification requires self-disclosure from the participant of the household income. To contact this person in order to update the recertification paperwork, by 3/15/24 we will: • Reach out via phone and email. • Reach out via letter to the last address of record. • Update the recertification based on information received or document actions taken to recertify if contact attempts have failed. • All SCSEP staff to review all remaining SCSEP participant files for required documents and ensure that we are in compliance of SCSEP rules and regulations. Update files if needed. Half of the files will be reviewed by 3/15/24. The other half will be complete by 4/30/24. • Quarterly internal review by Assistant Program Manager of 5 random files of SCSEP participants for file compliance with SCSEP rules and regulations. Conduct through 12/31/24 to ensure program compliance. • Finance Department to schedule Clark Nuber CPAs to conduct a technical training on grant documentation compliance requirements for both Finance and Workforce Development staff. Plan for training to take place prior to 4/30/24.

View Audit 15778

Finding 11863 (2023-003)

None 2023

Collegiate Academies

LA

Questioned Costs Allowable Costs / Cost Principles § 200.405

Status: In progress. Planned Corrective Action: This instance has been corrected as the employee's salary has been removed from the ESSER program and replaced with another eligible employee for FY23. Moving forward, employees charged to the High Cost Services program will be included in the overall ...

Status: In progress. Planned Corrective Action: This instance has been corrected as the employee's salary has been removed from the ESSER program and replaced with another eligible employee for FY23. Moving forward, employees charged to the High Cost Services program will be included in the overall grant tracker to ensure no more than 100% of their salary has been allocated across all grants. An additional quality review will be conducted prior to the final draw-down of federal grants (by July 15th, annually) to ensure that no employee has had more than 100% of their salary allocated to federal programs. Person(s) Responsible: Justin Pickel, Chief Operating Officer Estimated Completion Date: July 15, 2024

View Audit 15737 Questioned Costs: $1

Finding 11841 (2023-002)

Significant Deficiency 2023

Texas College

TX

Questioned Costs Allowable Costs / Cost Principles Reporting

The auditors noted the following in connection with our texting of compliance: • Concerning the D.R. Glass Library renovation project, the architect certified roughly two- thirds of the $450, 000 spent under the grant. The College paid out approximately $131,000 to the construction company without ...

The auditors noted the following in connection with our texting of compliance: • Concerning the D.R. Glass Library renovation project, the architect certified roughly two- thirds of the $450, 000 spent under the grant. The College paid out approximately $131,000 to the construction company without formal certification of incurred expenses. The construction company used AIA Document G702 for payment requests, which includes a certification section. Only three of the 11 payment requests had appropriate certification by the architect or the College before payment was made. • The interim report that was due on September 30, 2022 was dated October 31, 2022 and filed until November 4, 2022. To ensure compliance and the appropriateness of expenses, all payment requests should be certified either by the architect or the College’s designated, qualified person overseeing the project. All performance and financial reports should be filed timely. The College’s Corrective Plan: The College accepts the auditors’ recommendations. The College is comfortable that no unallowable cost payments were made in connection with this project; however, it understands that it needs to establish stricter guidelines when it comes to certifications of contractual payments. The College will more closely adhere to program reporting schedules.

View Audit 15661 Questioned Costs: $1

Finding 11827 (2023-001)

Significant Deficiency 2023

City of Brewer

ME

Internal Control / Segregation of Duties Allowable Costs / Cost Principles

Management response/corrective action plan: With one of our temporary and newer grants related to multilingual and homeless students, we had missed doing a semi-annual certification for an employee's time working as a tutor under this temporary funding period. We have developed a more detailed chec...

Management response/corrective action plan: With one of our temporary and newer grants related to multilingual and homeless students, we had missed doing a semi-annual certification for an employee's time working as a tutor under this temporary funding period. We have developed a more detailed checklist of all staff who are being paid throughout the year to ensure all federally funded employees have either a semi-annual certification or a Personnel Activity Report on file. We are also seeing considerably less federal funding sources which will reduce the number of employees needing to have time and effort certification.

View Audit 15657

Finding 11811 (2023-002)

Material Weakness 2023

Big Springs Medical Association D/b/a Missouri Highlands Health Care

MO

Allowable Costs / Cost Principles Reporting

As permitted by U.S. Department of Health and Human Services, management revised the option iii lost revenues calculation for Period 4 to better allocate significant one-time adjustments to patient service revenue among the quarterly reporting periods. The narrative describing management's methodolo...

As permitted by U.S. Department of Health and Human Services, management revised the option iii lost revenues calculation for Period 4 to better allocate significant one-time adjustments to patient service revenue among the quarterly reporting periods. The narrative describing management's methodology was not adequately updated to reflect the exclusion of incentive revenue for all periods within the calculation. Responsible Person: Julie O’Neal, Chief Financial Officer Completion Date: December 2023 Management’s Views: Management agrees with this finding, as our narrative did not specifically list out and specify the backing out of incentive revenue completely from our Option iii calculation. However, when the narrative discusses “backing these items out”, our intent was for incentive revenue to be included in that grouping, but that was never implied in the narrative implicitly. Our incentive revenues can be greatly delayed in receiving and knowing about, therefore it would have inflated lost revenues to leave 2019 incentive revenue if we had none for the following years we were comparing to. Therefore we feel it was justified to take the incentive revenue out of the calculation completely to keep it the same for all years being compared. For that reason, because the narrative did not match our actual calculation is the reason for this finding.

View Audit 15646

Finding 11725 (2023-001)

Significant Deficiency 2023

Unison Behavorial Health Group, Inc.

OH

Procurement, Suspension & Debarment Allowable Costs / Cost Principles Internal Control / Segregation of Duties

Finding: 2023-001 – Written Policies Required by the Uniform Guidance Auditor Description of Condition and Effect. Although Unison has processes in place to cover these areas, there are no formal written policies for payments and allowability of costs charged to federal programs. As a result of this...

Finding: 2023-001 – Written Policies Required by the Uniform Guidance Auditor Description of Condition and Effect. Although Unison has processes in place to cover these areas, there are no formal written policies for payments and allowability of costs charged to federal programs. As a result of this condition, Unison did not fully comply with the Uniform Guidance applicable to its federal payments received and the allowability of such payments. Auditor Recommendation. We recommend that Unison develop and adopt formal written policies, in accordance with the Uniform Guidance. Corrective Action. Management concurs with the finding. Unison will prepare formal written policies to fully comply with the Uniform Guidance applicable to its federal programs. Responsible Person. Stacy Lawson, Controller Anticipated Completion Date: June 30, 2024

View Audit 15532

Finding 11665 (2023-003)

Significant Deficiency 2023

Page Unified School District No. 8

AZ

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

CORRECTIVE ACTION PLAN U.S. Department of Education Page Unified School District No. 8 respectfully submits the following corrective action plan for the year ended June 30, 2023. Audit period: July 1, 2022 – June 30, 2023 The findings from the schedule of findings and questioned costs are discussed ...

CORRECTIVE ACTION PLAN U.S. Department of Education Page Unified School District No. 8 respectfully submits the following corrective action plan for the year ended June 30, 2023. Audit period: July 1, 2022 – June 30, 2023 The findings from the schedule of findings and questioned costs are discussed below. The findings are numbered consistently with the numbers assigned in the schedule

View Audit 15496

Finding 11613 (2023-003)

None 2023

Davenport Community School District

IA

Subrecipient Monitoring Allowable Costs / Cost Principles Period of Performance

Response and Corrective Action Plan: The District will annually prepare a calculation of the modified total direct cost allocation base for all federal awards before applying the indirect cost rate to federal programs.

View Audit 15458

Finding 11575 (2023-003)

Material Weakness 2023

Outpatient Medical Center, Inc.

LA

Allowable Costs / Cost Principles Material Weakness Reporting

2023-003 Reporting Corrective action planned: OMC will work with the new accounting software vendor so that financial information needed for the annual UDS report (specifically personnel related data) can be extracted based on data in the financial system. All reports used to gather information for ...

2023-003 Reporting Corrective action planned: OMC will work with the new accounting software vendor so that financial information needed for the annual UDS report (specifically personnel related data) can be extracted based on data in the financial system. All reports used to gather information for the UDS report will be retained and filed electronically in the designated folder. Anticipated completion date: April 2024 Contact person responsible for corrective action: Kathy Barroso, Financial Consultant

View Audit 15387

Finding 11551 (2023-003)

Material Weakness 2023

Vista Homes Housing Corporation

NY

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

The Organization will enhance its controls to ensure bidding is obtained when needed, expenses are captured in the correct fiscal period and that at year-end there is a final review of the transactions to ensure completeness, accuracy and proper classification.

View Audit 15369

Finding 11545 (2023-003)

Material Weakness 2023

Housing for the Multi-Handicapped Blind

NY

Allowable Costs / Cost Principles HUD Housing Programs Material Weakness

The Organization will enhance its controls to ensure expenses are captured in the correct fiscal period and that at year-end there is a final review of the transactions to ensure completeness, accuracy and proper classification.

View Audit 15367

Finding 11533 (2023-003)

Material Weakness 2023

Great Expectations Housing Corporation

CA

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

The Organization will enhance its controls to ensure bidding is obtained when needed, expenses are captured in the correct fiscal period and that at year-end there is a final review of the transactions to ensure completeness, accuracy and proper classification.

View Audit 15366

Finding 11522 (2023-002)

Material Weakness 2023

New Visions Housing Corporation

CA

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

The Organization will enhance its controls to ensure bidding is obtained when needed, expenses are captured in the correct fiscal period and that at year-end there is a final review of the transactions to ensure completeness, accuracy and proper classification.

View Audit 15365

Finding 11379 (2023-001)

Significant Deficiency 2023

Efficiency Maine Trust

ME

Allowable Costs / Cost Principles Matching / Level of Effort / Earmarking Internal Control / Segregation of Duties § 200.430

Management’s response/corrective action plan: Trust staff created a new timesheet that addresses the shortcomings identified during the FY23 audit. The new timesheet allows staff to record daily hours spent working on Federal grants directly to the individual funding sources. In addition, the Dire...

Management’s response/corrective action plan: Trust staff created a new timesheet that addresses the shortcomings identified during the FY23 audit. The new timesheet allows staff to record daily hours spent working on Federal grants directly to the individual funding sources. In addition, the Director of Finance will be auditing FY23 timesheets of those staff members that had time assigned to the Federal grants to determine if we can identify, through other means, a way to account for all hours charged to the grants in FY2023.

View Audit 15300

Finding 11364 (2023-002)

Significant Deficiency 2023

The School Board of the City of Newport News, Virginia

VA

Questioned Costs Allowable Costs / Cost Principles

2023-002: Significant Deficiency – Activities Allowed or Unallowed and Allowable Costs and Cost Principles Program: Special Education Cluster (IDEA) (ALN 84.027 and 84.173) – United States Department of Education – Virginia Department of Education; Federal Award Year 2023 Corrective Action: In order...

2023-002: Significant Deficiency – Activities Allowed or Unallowed and Allowable Costs and Cost Principles Program: Special Education Cluster (IDEA) (ALN 84.027 and 84.173) – United States Department of Education – Virginia Department of Education; Federal Award Year 2023 Corrective Action: In order to more fully ensure program costs are allowable, additional Internal control reviews will be added to the current processes as follows. 1) All employees paid from sponsored funds are required to report their effort monthly. 2) The employee, or responsible individual will report percent effort using suitable means of verification. 3) Supervisors are responsible for certification of time and effort for personnel associated with their sponsored programs. 4) If the Supervisor is the employee completing the effort report, the Executive director must certify the percent effort level. 5) If the Executive Director is the employee completing the effort report, an Officer of The Program's School board must certify the percent effort report. Contact: Scarlett Minto, Chief Financial Officer Expected Completion Date: January 2024- All corrective actions have been implemented. If you have any questions, please contact Scarlett Minto at 757-591-4642 or by email at Scarlett.Minto@nn.k12.va.us.

View Audit 15272 Questioned Costs: $1

Finding 11343 (2023-001)

Significant Deficiency 2023

Claiborne Parish School Board

LA

Subrecipient Monitoring Allowable Costs / Cost Principles Reporting

Reference # and title: 2023-001 Controls and Compliance over Reporting Federal program and specific federal award identification: CFDA Number Award Year FEDERAL GRANTER/ PASS THROUGH GRANTOR/PROGRAM NAME United States Department of Education; passed through Louisiana Department of Education Educatio...

Reference # and title: 2023-001 Controls and Compliance over Reporting Federal program and specific federal award identification: CFDA Number Award Year FEDERAL GRANTER/ PASS THROUGH GRANTOR/PROGRAM NAME United States Department of Education; passed through Louisiana Department of Education Education Stabilization (ESSER II – Formula & Incentive) 84.425D 2021 Education Stabilization (ESSER III – Formula, Incentive & 84.425U 2021 EB Interventions) Condition: In accordance with the ESSER guidelines, the School Board is required to submit an annual performance report with data on expenditures, planned expenditures, subrecipients, and uses of funds, including for mandatory reservations. The key line items include the School Board’s expenditures by ESSER subgrant, which comes from the periodic expense reports, the number of specific positions supported with ESSER funds, allocation of ESSER funds to schools and criterial used to allocate the funds to the schools and the full-time equivalent positions paid with ESSER funding. Condition found: In testing a sample of a periodic expense report from each of the School Board’s ESSER subgrants, it was noted that the ESSER III Formula subgrant did not agree with the School Board’s general ledger expenditures. In testing the information submitted through the Louisiana Department of Education’s portal for the other key line items, it was noted that the School Board could not locate their original support used to submit this information; and therefore, the auditor could not adequately test the information submitted. Corrective action planned: When completing the annual performance report, the new Grants Manager will retain all supporting documentation used to complete the report for review during the audit process. Personal responsible for corrective action: Mr. William Kennedy, Superintendent Claiborne Parish School Board 415 East Main Street Homer, Louisiana 71040 Anticipated completion date: 3/31/2024

View Audit 15238

Finding 11338 (2023-004)

Significant Deficiency 2023

St John Public School District No. 3

ND

Allowable Costs / Cost Principles

2023-004 Contact Person Mary Vandal, Business Manager Planned Corrective Action To ensure that all payroll expenditures are allowable for hourly employees, timesheets will be approved by each supervisor and/or the Superintendent. Any additional pay issued to certified staff will have Superintendent ...

2023-004 Contact Person Mary Vandal, Business Manager Planned Corrective Action To ensure that all payroll expenditures are allowable for hourly employees, timesheets will be approved by each supervisor and/or the Superintendent. Any additional pay issued to certified staff will have Superintendent approval documented on a pay request sheet. All certified employees will continue to have a signed contract on file each year. All non-certified employees will have a letter of assignment signed and on file each year. Planned Completion Date June 30, 2024

View Audit 15218

Corrective Action Plans

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