Corrective Action Plans

Finding 394805 (2023-005)

Significant Deficiency 2023

OH

Questioned Costs Allowable Costs / Cost Principles Reporting § 200.403

UWGC has developed a procedure as outlined below in “Payroll Allocation Grants” to ensure that prior to submission of invoices to federal awarding agencies, management prepares a monthly analysis based on 211 call logs to support the actual amounts allocated across all programs and invoiced to the a...

UWGC has developed a procedure as outlined below in “Payroll Allocation Grants” to ensure that prior to submission of invoices to federal awarding agencies, management prepares a monthly analysis based on 211 call logs to support the actual amounts allocated across all programs and invoiced to the awarding agencies that are reconciled to payroll reports, which then will allow UWGC to present evidence that all hours submitted for reimbursement are supported with the appropriate allocation. The process will include management staff from both 211 and finance departments thus maintaining internal controls. Additionally, this procedure will be reviewed at least annually by both departments as it relates to the allocation methodology to ensure that its appropriate given changes in the program and workforce.

View Audit 304646 Questioned Costs: $1

Finding 394803 (2023-004)

Significant Deficiency 2023

United Way of Greater Cleveland

OH

Allowable Costs / Cost Principles § 200.403

UWGC has developed a procedure as outlined below in “Payroll Allocation Grants” to ensure that prior tosubmission of invoices to federal awarding agencies, management prepares a monthly analysis based on 211 call logs to support the actual amounts allocated across all programs and invoiced to the aw...

UWGC has developed a procedure as outlined below in “Payroll Allocation Grants” to ensure that prior tosubmission of invoices to federal awarding agencies, management prepares a monthly analysis based on 211 call logs to support the actual amounts allocated across all programs and invoiced to the awarding agencies that are reconciled to payroll reports, which then will allow UWGC to present evidence that all hours submitted for reimbursement are supported with the appropriate allocation. The process will include management staff from both 211 and finance departments thus maintaining internal controls. Additionally, this procedure will be reviewed at least annually by both departments as it relates to the allocation methodology to ensure that its appropriate given changes in the program and workforce.

View Audit 304646

Finding 394731 (2023-015)

Material Weakness 2023

Charter County of Wayne, Michigan

MI

Student Financial Aid Subrecipient Monitoring Allowable Costs / Cost Principles

Finding Number: 2023-015 Federal Program: 14.218 – U.S. Department of Housing and Urban Development (HUD) – Community Development Block Grant (CDBG) – Entitlement Grants Cluster 93.563 – Title IV-D, U.S. Department of Health and Human Service - Child Support Enforcement (CSE) 10.557, U.S. Department...

Finding Number: 2023-015 Federal Program: 14.218 – U.S. Department of Housing and Urban Development (HUD) – Community Development Block Grant (CDBG) – Entitlement Grants Cluster 93.563 – Title IV-D, U.S. Department of Health and Human Service - Child Support Enforcement (CSE) 10.557, U.S. Department of Agriculture – WIC Special Supplemental Nutrition Program for Women, Infants, and Children Condition Per Auditor: Controls in place were not adequate to ensure compliance with 2 CFR 200 Appendix V submission requirements for the County’s self insurance cost allocation process and annual chargeback plan. Planned Corrective Action: Management communicated with the cognizant agency which confirmed in November 2021, OMB issued guidance relating to CARES Act funding and its effect on indirect cost. Part of this guidance stated that “CARES Act funding should not be included toward the threshold amount for indirect cost submission required in 2 C.F.R. part 200, Appendix VII, paragraph D.1.b”. Therefore, County governments that met the $100 million threshold as a result of CARES Act funding are not required to submit their Central Service Cost Allocation Plan for approval. The CARES Act funding would have increased the County’s funding in excess of $100 million, which should not have been a part of the determination for the original finding. However, since CSLFRF funds were also received increasing the County’s funding in excess of $100 million the annual chargeback plans were submitted to the cognizant agency and U.S. Treasury in 2023 for implementation in FY 24 and will continue to submit subsequent plans to federal cognizant agency, as required by 2 CFR 200 Appendix V. Anticipated Completion Date: 9/30/24 Responsible Contact Person: Shauntika Bullard and Michael Bridges

View Audit 304593

Finding 394686 (2023-001)

Material Weakness 2023

Harney District Hospital

OH

Questioned Costs Allowable Costs / Cost Principles § 200.303

Federal Award Findings and Questioned Costs Finding 2023-001 Federal Agency Name: Department of Health and Human Services Assistance Listing Number: 93.498 Program Name: Provider Relief Fund and American Rescue Plan (ARP) Rural Distribution Initial Fiscal Year Finding Occurred: 2023 Finding S...

Federal Award Findings and Questioned Costs Finding 2023-001 Federal Agency Name: Department of Health and Human Services Assistance Listing Number: 93.498 Program Name: Provider Relief Fund and American Rescue Plan (ARP) Rural Distribution Initial Fiscal Year Finding Occurred: 2023 Finding Summary: The District did not reduce expenses by amounts reimbursed by other sources related to cost-based reimbursement, as some costs incurred in providing services to the Medicare population are reimbursed. The amount of questionable costs not reduced for Medicare reimbursement total $369,475. However, the District had unreimbursed expenses identified on the HRSA Period 4 report as well as additional payroll in excess of what was reported: Additional ARP RURAL Personnel Expenses reduced for amounts reimbursed by other sources Q4 (2022) $45,337 Additional ARP RURAL Fringe Benefit Expenses reduced for amounts reimbursed by other sources Q4 (2022) $10,820 Unreimbursed Expenditures attributed to COVID-19 (reported on Period 4 Report) reduced for amounts reimbursed by other sources $9,122 TOTAL UNREIMBURSED EXPENDITURES $65,279 The District would appreciate consideration of the $65,279 unreimbursed expenses in determining the amount owed back for unspent funding so as to reduce the amount to be paid back to HRSA to $304,196. Corrective Action Plan: The District will enhance internal control practices to ensure expenses are reviewed for reimbursement from other sources and meet the requirements of the federal program. To ensure that expenses are reduced for amounts reimbursed by other sources, the District will incorporate a cost ratio calculation in their process of computing allowable expenses for federal funding programs. Responsible Individuals: Catherine White, Chief Financial Officer and Pennie Peasley, Accounting Manager Anticipated Completion Date: April 1, 2024

View Audit 304570 Questioned Costs: $1

Finding 394645 (2023-002)

Significant Deficiency 2023

Ili Senior Housing - Chapel Valley Road, Inc.

WI

Allowable Costs / Cost Principles Significant Deficiency Internal Control / Segregation of Duties

2023-002 Supportive Housing for the Elderly – CFDA No. 14.157 Recommendation: We recommend that management implement a process to ensure the required replacement reserve deposits are made in a timely manner in accordance with the regulatory agreement. Explanation of disagreement with audit finding: ...

2023-002 Supportive Housing for the Elderly – CFDA No. 14.157 Recommendation: We recommend that management implement a process to ensure the required replacement reserve deposits are made in a timely manner in accordance with the regulatory agreement. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: Management has since deposited the November and December deposits and implemented a process to ensure all required deposits are made in a timely manner going forward. Name(s) of contact person(s) responsible for corrective action: Nicole Chwala Planned completion date for corrective action plan: Corrective action has been completed.

View Audit 304553

Finding 394593 (2023-004)

Significant Deficiency 2023

City of Ortonville, Minnesota

MN

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

Unpaid Expenses on Draw Request (2023-004) Federal Agency: Environmental Protection Agency Federal Program Title: Capitalization Grant for Clean Water State Revolving Fund ALN Number: 66.458 Award Period: 2023 Type of Finding: Significant Deficiency in Internal Control over Compliance Recommendatio...

Unpaid Expenses on Draw Request (2023-004) Federal Agency: Environmental Protection Agency Federal Program Title: Capitalization Grant for Clean Water State Revolving Fund ALN Number: 66.458 Award Period: 2023 Type of Finding: Significant Deficiency in Internal Control over Compliance Recommendation: We recommend that management ensures invoices are approved by the City Council before submitting the draw request. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: The City will monitor all draw requests and ensure that expenses are approved by the City Council before reimbursement is requested.

View Audit 304489

Finding 394377 (2023-001)

Significant Deficiency 2023

Crystal Lake Preservation Corporation 071-11281/il06-M000-214

IL

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

Finding Number: 2023-001 Condition: The Corporation withdrew cash from the tenant security account during May and June 2023 in the amounts of $7,000 and $7,500, respectively, causing the balance of the security deposit liability to exceed the asset balance at month-end. These funds were used to fund...

Finding Number: 2023-001 Condition: The Corporation withdrew cash from the tenant security account during May and June 2023 in the amounts of $7,000 and $7,500, respectively, causing the balance of the security deposit liability to exceed the asset balance at month-end. These funds were used to fund operating costs on behalf of the Corporation. Planned Corrective Action: Management acknowledges noncompliance in the current fiscal year and has taken measures to improve internal controls over compliance. Management deposited funds to the security deposit cash account in order to meet the regulatory agreement requirement before year-end. Contact person responsible for corrective action: Laura Selby, Executive Vice President - COO Anticipated Completion Date: March 25, 2024

View Audit 304382

Finding 394371 (2023-001)

None 2023

Housing Authority of the Town of Windsor Locks

CT

Questioned Costs Cash Management Allowable Costs / Cost Principles

Auditee’s Response and Planned Corrective Action Since February 2022 the Fee Accountant has paid the bills monthly and made sure to reimburse the Revolving Fund accordingly if funds are available. Unfortunately, the State Program has not had a rate increase with all the changes going on. Their cash...

Auditee’s Response and Planned Corrective Action Since February 2022 the Fee Accountant has paid the bills monthly and made sure to reimburse the Revolving Fund accordingly if funds are available. Unfortunately, the State Program has not had a rate increase with all the changes going on. Their cash flow is very low and a rate increase is being implemented for the FY24 Budget. There is another rate increase taking effect for FY25. This should allow the State program to reimburse the Revolving Fund fully. As of March 2024 the State owes less than $25,000 to the Revolving Fund. Planned Implementation Date of Corrective Action: July 2023 Person Responsible for Corrective Action: Windsor Locks Management Team working with the Fee Accountant monthly.

View Audit 304378 Questioned Costs: $1

Finding 394319 (2023-001)

Significant Deficiency 2023

City of Groves, Texas

TX

Procurement, Suspension & Debarment Allowable Costs / Cost Principles

The City has issued a RFP to engage a grant management consultant to ensure compliance with the grant requirements, and Lamar Ozley, Director of Finance, will contemporaneously monitor grants for changes made to the grant requirements after a grant has been awarded to the City.

View Audit 304316

Finding 394257 (2023-001)

Significant Deficiency 2023

Summa Health

OH

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

Identifying Number: Finding 2023-01—Reporting Finding: Assistance Listing No. 93.498—COVID-19 Provider Relief Fund (PRF) and American Rescue Plan (ARP) Rural Distribution Criteria or specific requirement: Section 200.303 of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Re...

Identifying Number: Finding 2023-01—Reporting Finding: Assistance Listing No. 93.498—COVID-19 Provider Relief Fund (PRF) and American Rescue Plan (ARP) Rural Distribution Criteria or specific requirement: Section 200.303 of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance) states the following regarding internal control: “The non-Federal entity must: (a) Establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award.” The U.S. Department of Health and Human Services (HHS) requires the nonfederal entity to report lost revenue in order to support that funding received has been appropriately earned. HHS provided specific guidance in the June 11, 2021, Post-Payment Notice on how to complete the required reporting of lost revenue in the HRSA Reporting Portal. Condition: Summa’s reporting submission did not follow the published HRSA guidance related to the reporting of lost revenue. Cause: Summa had designed and implemented internal controls over the calculation of lost revenue, however, these internal controls were not precise enough to identify an error in the calculation of lost revenue. Effect or potential effect: Noncompliance with HRSA reporting guidance could result in the submission of an inaccurate report. Questioned cost: None Context: We inspected the reconciliation of lost revenue for Summa Health TIN 34-1887844 noting that the lost revenue calculation was overstated by approximately $1.1 million and $3.0 million for Q3 2020 and Q4 2020, respectively. Recommendation: HRSA does not allow reporting entities to amend a previously submitted report after the reporting period has passed and period 6 is the last reporting period associated with this funding. The internal calculation should be revised to accurately reflect the lost revenue incurred for Q3 2020 in the event supporting documentation is requested to justify the funding received. Corrective Actions Taken or Planned: Management agrees that the calculation should be revised in the event supporting documentation is requested to justify the funding received.

View Audit 304266

Finding 394248 (2023-002)

Material Weakness 2023

Domestic Abuse Intervention Services, Inc.

WI

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

Criteria: According to 2 CFR, Part 200.303 of the Office of Management and Budget’s Uniform Grant Guidance, a non-federal entity must establish and maintain effective internal controls to ensure compliance with federal statues, regulations, and the terms and conditions of federal awards. Condition: ...

Criteria: According to 2 CFR, Part 200.303 of the Office of Management and Budget’s Uniform Grant Guidance, a non-federal entity must establish and maintain effective internal controls to ensure compliance with federal statues, regulations, and the terms and conditions of federal awards. Condition: Domestic Abuse Intervention Services, Inc.'s internal controls over review of cost allocation journal entries, allowable costs and activities, period of performance, cash management, matching, and reporting were not properly documented. Cause: Sufficient training was not provided to individuals responsible for the documentation of internal controls over compliance requirements. Effect or Potential Effect: This could result in noncompliance, disallowed costs, or discontinuance of federal funding. Recommendation: We recommend formally documenting the controls over each area by providing additional training on documentation and forms to provide evidence of review. Views of Responsible Officials and Planned Corrective Actions: Domestic Abuse Intervention Services, Inc. agrees with the finding. DAIS will implement effective and written procedures and training for the review of cost allocation journal entries, allowable costs and activities, period of performance, cash management, matching, and reporting. The written procedures will explicitly lay out the processes for review and approval of each of these compliance components per each federal Assistance Listing that DAIS receives. The Director of Administration will use the most up to date 2 CFR Part 200, Appendix XI - Compliance Supplement to identify the specific compliance requirements for each of the Assistance Listings and create the written procedures. All reviews and approvals will also be documented henceforth. Shawn Walker, Director of Administration, will oversee the implementation of this corrective action.

View Audit 304251

Finding 394034 (2023-003)

Material Weakness 2023

Workforce Development Board of Southeast Missouri

MO

Subrecipient Monitoring Allowable Costs / Cost Principles Reporting

Refer to finding 2023-001 for the views of responsible officials and planned corrective actions.

View Audit 304161

Finding 394034 (2023-003)

Material Weakness 2023

Workforce Development Board of Southeast Missouri

MO

Subrecipient Monitoring Allowable Costs / Cost Principles Reporting

Views of Responsible Officials and Planned Corrective Actions: The Organization agrees with the finding. As was noted in the prior year audit, which due to the timing had a carryover impact to the current year, unfortunate circumstances existed prior to the departure of two key employees within th...

Views of Responsible Officials and Planned Corrective Actions: The Organization agrees with the finding. As was noted in the prior year audit, which due to the timing had a carryover impact to the current year, unfortunate circumstances existed prior to the departure of two key employees within the Organization that significantly impacted the daily financial reporting and processing capabilities of the Organization. The Organization however, made a concerted effort to ensure that it met Federal program reporting compliance standards. Effective October 1, 2022, the Organization became a 100% pass thru agent of all Federal programs, thereby significantly reducing the financial reporting and processing requirements. The Organization has accordingly changed their financial reporting and processing procedures that has improved the overall internal control over financial reporting and compliance. Federal programs for the year ended June 30, 2023 were subjected to monitoring procedures and subrecipient auditing procedures resulting in unqualified reports and no identification of disallowable costs.

View Audit 304161

Finding 393950 (2023-002)

Significant Deficiency 2023

Columbia Gorge Community College

OR

Allowable Costs / Cost Principles Eligibility Significant Deficiency

2023-002 – Activities Allowed or Unallowed and Allowable Costs/Cost Principles – Significant Deficiency in Internal Controls over Compliance Federal Agency Name: Department of Education Federal Assistance Listing Number: 84.425E Federal Program Name: Higher Education Emergency Relief Funds (HEERF) S...

2023-002 – Activities Allowed or Unallowed and Allowable Costs/Cost Principles – Significant Deficiency in Internal Controls over Compliance Federal Agency Name: Department of Education Federal Assistance Listing Number: 84.425E Federal Program Name: Higher Education Emergency Relief Funds (HEERF) Student Aid Portion Finding Summary: The College did not have consistent controls in place to formerly approve a plan for distribution of funds that was documented and circulated to the College. The lack of a documented plan for distribution of funds to students increases the risk that funds were inappropriately disbursed to students at the wrong amounts. In addition, it increases the risk that the disbursements were not equitable across the student population. Responsible Individuals: Dr. Lorelle Davies, Chief Financial Officer Michael N. Espinoza, Vice President of Student Services Corrective Action Plan: HEERF procedures and processes were adopted and provided to the auditors during the audit process. Three independent outreach efforts were implemented to contact, support, and release funding to students. Limited staffing and a sense of urgency in emergency disbursements contribute less than perfect execution. Documentation was provided for all sample disbursements with a few instances of missing documentation. The Rubric for disbursement through Student Services based on a Pell and enrollment need evaluation was not available to auditors. The college can reproduce criteria to support disbursement. All HEERF funding was distributed to students that met eligibility requirements withing the June 30, 2023, disbursement deadline. Ongoing efforts include the following:  The college will continue to archive and document all disbursement records.  Continued implementation of processes and procedures for all aid disbursement to prevent future instances. Anticipated Completion Date: Completed June 30, 2023

View Audit 304126

Finding 393935 (2023-001)

Significant Deficiency 2023

Family Services of Tulare County, Inc.

CA

Allowable Costs / Cost Principles Matching / Level of Effort / Earmarking § 200.403 § 200.430

Agency will implement as after-the-fact review for salaried employees. Timecards are actual time worked on project as instructed by Cal OES. Paycor allocations (which are budgeted allocations) are driving the salaried employees' allocations to the labor distribution report. Salaried employees, regar...

Agency will implement as after-the-fact review for salaried employees. Timecards are actual time worked on project as instructed by Cal OES. Paycor allocations (which are budgeted allocations) are driving the salaried employees' allocations to the labor distribution report. Salaried employees, regardless of their time worked, are allocated 86.67 hours per pay period and by percentage of their labor allocation. Agency will review timecards to labor distribution and make the necessary adjustments after posting the Payroll Import by creating a journal entry to ensure that the project is charged accurately. Timecards are never altered as they are approved with 2 approvals.

View Audit 304111

Finding 393934 (2023-002)

Significant Deficiency 2023

Family Services of Tulare County, Inc.

CA

Allowable Costs / Cost Principles § 200.430

Agency will ensure that payroll time sheets are correct prior to processing and importing payroll. If an error on time sheet is found, employee and manager will be notified for employee to make correction. If the error is caught after payroll is processed a Journal Entry will be processed with prope...

Agency will ensure that payroll time sheets are correct prior to processing and importing payroll. If an error on time sheet is found, employee and manager will be notified for employee to make correction. If the error is caught after payroll is processed a Journal Entry will be processed with proper documentation and approval.

View Audit 304111

Finding 393932 (2023-001)

Material Weakness 2023

Willcox Unified School District No. 13

AZ

Subrecipient Monitoring Allowable Costs / Cost Principles Material Weakness

Finding Number: 2023‐001 Program Name/Assistance Listing Title: Education Stabilization Fund Assistance Listing Number: 84.425U Contact Person: Kevin Davis, Superintendent & Business Manager Anticipated Completion Date: July 15, 2024 Planned Corrective Action: This finding related to federal grants,...

Finding Number: 2023‐001 Program Name/Assistance Listing Title: Education Stabilization Fund Assistance Listing Number: 84.425U Contact Person: Kevin Davis, Superintendent & Business Manager Anticipated Completion Date: July 15, 2024 Planned Corrective Action: This finding related to federal grants, specifically ESSER Funds was due to changing requirements in the program, the newness of the ESSER grants, and lack of training for our grants manager as they are also new to the position. Additional grants training will be conducted for this individual and be completed by July 15, 2024. As our ESSER grants have been expended and completion reports finalized by Grants Management, with no issues or errors found, this should not be an issue in the future.

View Audit 304097

Finding 393929 (2023-001)

None 2023

Legal Aid Bureau, Inc.

MD

Allowable Costs / Cost Principles § 200.303 § 200.430

Response to Deficiency: Concur. The control has been added effective January 1, 2024. Corrective Action Plan: The current process has been modified to add internal audit to process for adding grant codes to allocation tables. Audit will be conducted by staff accountant who is not a part of the code...

Response to Deficiency: Concur. The control has been added effective January 1, 2024. Corrective Action Plan: The current process has been modified to add internal audit to process for adding grant codes to allocation tables. Audit will be conducted by staff accountant who is not a part of the code input process. Internal auditor will review allocation tables to ensure new grant codes are properly included and communicate compliance to requestor and the CFO. Preventative Action Plan: All finance team members will be retrained regarding addition to the current process. Responsbile Personnel: Priya Sarathy, Chief Financial Officer Date: 4/11/2024

View Audit 304090

Finding 393907 (2023-004)

Material Weakness 2023

YWCA West Central Michigan

MI

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

The YWCA will implement the following changes in its accounting procedures: 1. Journal entries will be drafted by the Staff Accountant and reviewed by the CFO prior to being posted to the general ledger. The end-of-month-journal-entry spreadsheets will have spaces added for the CFO to indicate appr...

The YWCA will implement the following changes in its accounting procedures: 1. Journal entries will be drafted by the Staff Accountant and reviewed by the CFO prior to being posted to the general ledger. The end-of-month-journal-entry spreadsheets will have spaces added for the CFO to indicate approval and date approved. 2. Payroll registers will be reviewed by the CFO each payroll. The end-of-month payroll entry (which encompasses all the payroll entries for the month) will be reviewed by the CFO prior to being uploaded to the MIP accounting software. 3. All invoices will be approved by the appropriate program director and account distribution will be reviewed by the CFO prior to entry into the accounts payable system. 4. Percentages used to allocate expenses across grants will be reviewed and updated annually at the beginning of the fiscal year. The allocation will be approved by the CEO. 5. Matching amounts for grants will be tracked and documented with supporting documentation by the Director of Finance and saved in the appropriate folder within the Finance SharePoint folder.

View Audit 304072

Finding 393880 (2023-010)

Material Weakness 2023

YWCA West Central Michigan

MI

Questioned Costs Cash Management Period of Performance § 200.305

The YWCA will implement the following changes in its accounting procedures. 1. The Staff Accountant will review the period each expenditure is related to and record the invoice to the appropriate period when entering it into accounts payable. The month and year will be noted on the invoice. 2. The C...

The YWCA will implement the following changes in its accounting procedures. 1. The Staff Accountant will review the period each expenditure is related to and record the invoice to the appropriate period when entering it into accounts payable. The month and year will be noted on the invoice. 2. The CFO will review the month and year noted by the Staff Accountant prior to entry into accounts payable.

View Audit 304072 Questioned Costs: $1

Finding 393864 (2023-006)

Material Weakness 2023

YWCA West Central Michigan

MI

Questioned Costs Period of Performance Allowable Costs / Cost Principles

The YWCA will implement the following changes in its accounting procedures: 1. The Staff Accountant will review the period each expenditure is related to and record the invoice to the appropriate period when entering it into accounts payable. The month and year will be noted on the invoice. 2. The C...

The YWCA will implement the following changes in its accounting procedures: 1. The Staff Accountant will review the period each expenditure is related to and record the invoice to the appropriate period when entering it into accounts payable. The month and year will be noted on the invoice. 2. The CFO will review the month and year noted by the Staff Accountant prior to entry into accounts payable.

View Audit 304072 Questioned Costs: $1

Finding 393751 (2023-002)

Material Weakness 2023

Ha:san Educational Services, Inc.

AZ

Questioned Costs Allowable Costs / Cost Principles Internal Control / Segregation of Duties § 200.333 § 200.430

During the 2022-23 fiscal year, Ha:San had employee turnover in several key management positions and, unfortunately, the 2023 management team was not aware of all charter school finance compliance requirements which resulted in the findings noted in the single audit report. Ha:San has hired a new ma...

During the 2022-23 fiscal year, Ha:San had employee turnover in several key management positions and, unfortunately, the 2023 management team was not aware of all charter school finance compliance requirements which resulted in the findings noted in the single audit report. Ha:San has hired a new management team for the 2023-24 fiscal year who are knowledgeable of charter school finance and compliance requirements and are predicting no repeat findings in the 2023-24 audit. Ha:San and subsidiary will obtain contracts and employment agreements with all staff. Further, a records retention policy will be enforced. Finally, timecards with sufficient detail of federal project participation will have documented approval by the appropriate level of management throughout the year.

View Audit 303915 Questioned Costs: $1

Finding 393696 (2023-004)

Material Weakness 2023

New London Homeless Hospitality Center, Inc.

CT

Allowable Costs / Cost Principles

Finding 2023-004 Internal Controls Over Allowable Costs We will implement an enhanced quarterly review managed by our outside accountant of all government contract income and cost reporting in our accounting system to assure that our cost allocation plan and underlying accounting records are in line...

Finding 2023-004 Internal Controls Over Allowable Costs We will implement an enhanced quarterly review managed by our outside accountant of all government contract income and cost reporting in our accounting system to assure that our cost allocation plan and underlying accounting records are in line and consistent.

View Audit 303835

Finding 393695 (2023-003)

Material Weakness 2023

New London Homeless Hospitality Center, Inc.

CT

Allowable Costs / Cost Principles Cash Management Reporting

Finding 2023-003 REPORTING ALLOWABLE/ALLOCABLE COSTS We have made progress in allocating allowable costs to specific contracts in our accounting system. Last year we implemented a detailed customer/job tracking capacity in QuickBooks and have created a coding system to match all income, payroll cost...

Finding 2023-003 REPORTING ALLOWABLE/ALLOCABLE COSTS We have made progress in allocating allowable costs to specific contracts in our accounting system. Last year we implemented a detailed customer/job tracking capacity in QuickBooks and have created a coding system to match all income, payroll costs and most other types of spending to specific customer/jobs. As the audit indicated, however, we continue to face challenges in properly assigning some shared costs (such as fringe benefits and utilities in shared facilities) to specific contracts in our accounting system. Costs were incurred and supported the operation of the contracts reviewed but we recognize that we need further improvement in how we allocate these costs to individual contracts in our accounting records. We will modify our financial procedures to document our allocation approach for fringe benefits and shared cost. We will also and put new controls in place to monitor cost allocation by contract (where required) on a quarterly basis. All improvements in accounting by customer/job will be implemented for the full fiscal year ended June 30, 2024. Finding 2023-

View Audit 303835

Finding 393693 (2023-001)

Material Weakness 2023

Opp City Board of Education

AL

Questioned Costs Allowable Costs / Cost Principles Special Tests & Provisions § 200.303 § 200.326

Item 2023‐001 – Special Tests and Provisions – Wage Rate Requirements (Repeat) Recommendation: 2 CFR 200.303 requires the non‐Federal entity to “(a) establish and maintain effective internal controls over the Federal award that provides reasonable assurance that the non‐ Federal entity is managing t...

Item 2023‐001 – Special Tests and Provisions – Wage Rate Requirements (Repeat) Recommendation: 2 CFR 200.303 requires the non‐Federal entity to “(a) establish and maintain effective internal controls over the Federal award that provides reasonable assurance that the non‐ Federal entity is managing the Federal statutes, regulations, and the terms and conditions of the Federal award.” 2 CFR 200.326 and 29 CFR Part 5, Labor Standards Provisions Applicable to Contracts Governing Federally Financed and Assisted Construction (DOL Regulations) require the contractor or subcontractor to submit to the nonfederal entity weekly, for each week in which any contract work is performed, a copy of the payroll and a statement of compliance (certified payrolls). We recommend the strengthening of controls to ensure the prevailing wage rate clauses are included in the contracts and that certified payrolls are received for each week in which construction work is performed. The Chief School Financial Officer, Linda Harper, should review documentation for inclusion of the prevailing wage rate clauses in construction contracts as part of the bid process prior to expenditures being made. She should also review all invoices received from contractors and subcontractors to ensure that the certified payroll information is received for all weeks for which construction work is performed. Action Taken: Management has reviewed the requirements of 2 CFR Section 200.303 and 2 CFR 200.326 relating to wage rate requirements and agrees with the recommendation. Management has already communicated with all current contractors and subcontractors regarding the wage rate requirements for contracts in progress and has implemented additional procedures for future projects effective January 1, 2023. These additional procedures include the Chief School Financial Officer (CSFO), Linda Harper, reviewing all proposed construction contracts for inclusion of the prevailing wage rate clause as part of the bid process prior to expenditures being made. The CSFO will also review all invoices received from contractors and subcontractors to ensure that the certified payroll information is received for all weeks for which construction work is performed.

View Audit 303828 Questioned Costs: $1

Corrective Action Plans

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