Corrective Action Plans

Finding 383961 (2023-003)

Material Weakness 2023

IN

Questioned Costs Allowable Costs / Cost Principles School Nutrition Programs § 200.303 § 200.403

FINDING 2023-003 Finding Subject: Child􀀃Nutrition􀀃Cluster􀀃􀍲􀀃Activities􀀃Allowed􀀃or􀀃Unallowed,􀀃Allowable􀀃Costs/Cost􀀃Principles,􀀃Special􀀃 Tests􀀃and􀀃Provisions􀀃􀍲􀀃School􀀃Food􀀃Service􀀃Accounts􀀃 Summary of Finding: An􀀃effective􀀃internal􀀃control􀀃system􀀃was􀀃not􀀃in􀀃place􀀃at􀀃the􀀃School􀀃Corporation􀀃to􀀃ensure􀀃co...

FINDING 2023-003 Finding Subject: Child􀀃Nutrition􀀃Cluster􀀃􀍲􀀃Activities􀀃Allowed􀀃or􀀃Unallowed,􀀃Allowable􀀃Costs/Cost􀀃Principles,􀀃Special􀀃 Tests􀀃and􀀃Provisions􀀃􀍲􀀃School􀀃Food􀀃Service􀀃Accounts􀀃 Summary of Finding: An􀀃effective􀀃internal􀀃control􀀃system􀀃was􀀃not􀀃in􀀃place􀀃at􀀃the􀀃School􀀃Corporation􀀃to􀀃ensure􀀃compliance􀀃with􀀃 requirements􀀃related􀀃to􀀃the􀀃grant􀀃agreement􀀃and􀀃the􀀃Activities􀀃Allowed􀀃or􀀃Unallowed,􀀃the􀀃Allowable􀀃Costs/Cost􀀃 Principles,􀀃and􀀃the􀀃Special􀀃Tests􀀃and􀀃Provisions􀀃􀍲􀀃School􀀃Food􀀃Service􀀃Accounts􀀃compliance􀀃requirements.􀀃 Contact Person Responsible for Corrective Action: Lela Simmons Contact Phone Number and Email Address: (219) 391- 4100, lesimmons@ecps.org Views of Responsible Officials: We concur with the finding Description of Corrective Action Plan: The􀀃Food􀀃Service􀀃director􀀃responsibilities􀀃is􀀃to􀀃overseeing􀀃all􀀃function􀀃of􀀃the􀀃Food􀀃Management􀀃Company.􀀃Food􀀃 Service􀀃Director􀀃will􀀃be􀀃required􀀃to􀀃draft􀀃internal􀀃controls􀀃and􀀃detail􀀃instruction􀀃for􀀃the􀀃school􀀃corporation􀀃to􀀃ensure􀀃 all􀀃documentation􀀃procedures􀀃match􀀃the􀀃FSMC􀀃invoice.􀀃The􀀃school􀀃corporation􀀃will􀀃not􀀃pay􀀃any􀀃unallowable􀀃cost􀀃by􀀃 state􀀃regulation􀀃and􀀃rules.􀀃All􀀃state􀀃reporting􀀃documents􀀃and􀀃invoice􀀃will􀀃continue􀀃to􀀃be􀀃reviewed􀀃and􀀃signed􀀃off􀀃by􀀃 the􀀃district􀀃CFO.􀀃A􀀃copy􀀃of􀀃all􀀃documents􀀃will􀀃be􀀃held􀀃in􀀃the􀀃food􀀃director􀀃office.􀀃 Anticipated Completion Date: We anticipate having the above corrective action plan in place by September 30, 2024.

View Audit 296995 Questioned Costs: $1

Finding 383960 (2023-001)

Material Weakness 2023

Corn Belt Power Cooperative

IA

Allowable Costs / Cost Principles Cash Management Material Weakness § 200.303

Federal Agency Name: Department of Homeland Security & Emergency Management passed through State of Iowa department of Homeland Security and Emergency Management Assistance Listing Number: 97.3036, 4642DRIAP00000501 Program Name: Disaster Grants – Public Assistance Finding Summary: The Cooperative ...

Federal Agency Name: Department of Homeland Security & Emergency Management passed through State of Iowa department of Homeland Security and Emergency Management Assistance Listing Number: 97.3036, 4642DRIAP00000501 Program Name: Disaster Grants – Public Assistance Finding Summary: The Cooperative did not have any formally documented review and approval over the material and transportation costs claimed for reimbursement under the program. Corrective Action Plan: The Cooperative will document the review and approval of expenses for transportation and material that we are already doing. This will include initials and e-mails documenting the review process that was completed. For transportation the person reviewing the transportation logs with the payroll logs will initial the transportation logs. The person tying the transportation logs to the computer system and the vehicle’s actual ending mileage will also initial the transportation logs. For material transactions, a summary of transactions for the month will go to the appropriate department supervisor to sign off on those transactions. The person approving the transaction will depend on the department. Responsible Individuals: Department Supervisors who have inventory, Jaylen Heinz - Accountant, Kari Rubel - Accountant and other accountants. Anticipation Completion date: March 2024

View Audit 296983

Finding 383911 (2023-002)

None 2023

Auburn Union School District

CA

Questioned Costs Allowable Costs / Cost Principles

RE: 2022-23 Audit Finding #2023-002 Dear Mr. Ash; This letter is to serve as the District response to Audit Finding 2023-002 “Education Stabilization Funds – Indirect Costs (5000).” Within this finding, it is stated that indirect costs were overcharged to federal funds as noted within the audit re...

RE: 2022-23 Audit Finding #2023-002 Dear Mr. Ash; This letter is to serve as the District response to Audit Finding 2023-002 “Education Stabilization Funds – Indirect Costs (5000).” Within this finding, it is stated that indirect costs were overcharged to federal funds as noted within the audit report. Some prior calculations of the indirect costs were over the allowed amounts, but due solely to items within particular object codes that do not allow indirect cost charges. However, rates have been adjusted and indirect cost rate sheets have been within allowable ranges with our most recent interim budget reporting. Overages will be adjusted with journal entries. Thank you, Heather Leslie Chief Business Official

View Audit 296920 Questioned Costs: $1

Finding 383910 (2023-001)

Significant Deficiency 2023

Monument Health, Inc.

SD

Allowable Costs / Cost Principles Procurement, Suspension & Debarment Reporting § 200.303

Federal Agency Name: Department of Health and Human Services Program Name: COVID‐19 Provider Relief Fund and American Rescue Plan (ARP) Rural Distribution Federal Financial Assistance Listing: #93.498 Finding Summary: Audit testing identified four months of other general and administrative expenses...

Federal Agency Name: Department of Health and Human Services Program Name: COVID‐19 Provider Relief Fund and American Rescue Plan (ARP) Rural Distribution Federal Financial Assistance Listing: #93.498 Finding Summary: Audit testing identified four months of other general and administrative expenses claimed under the federal program did not consider the credit to be received back from a third‐party vendor for service time not performed by the third‐party vendor. The Period 4 report incorrectly included $64,404 of other general and administrative expenses. However, the Period 4 report also included approximately $6,077,500 of unused lost revenue. As a result, there are no questioned costs for activities allowed or unallowed and allowable costs/cost principles. Responsible Individuals: Austin Willuweit, Chief Financial Officer; Jen Schmaltz, Vice President of Finance Corrective Action Plan: Monument Health will review the third‐party vendor invoices and reduce unused lost revenue in any future federal reports. Anticipated Completion Date: June 30, 2024

View Audit 296919

Finding 383849 (2023-005)

Significant Deficiency 2023

Indigenous Peoples Task Force

MN

Allowable Costs / Cost Principles § 200.430

2023-005: Payroll Timecard Approval Federal Departments: Department of Health and Human Services Assistance Listing #: 93.612 and 93.939 Compliance and Internal Controls Significant Deficiency Category of Finding – Allowable Costs/ Cost Principles Name of contact person – Sharon Day, Exe...

2023-005: Payroll Timecard Approval Federal Departments: Department of Health and Human Services Assistance Listing #: 93.612 and 93.939 Compliance and Internal Controls Significant Deficiency Category of Finding – Allowable Costs/ Cost Principles Name of contact person – Sharon Day, Executive Director Corrective action – Management will review policies and procedures to ensure all timecards are reviewed by responsible individual. Completion date – Management and the Board of Directors implemented the above as of January 2024.

View Audit 296866

Finding 383846 (2023-004)

Significant Deficiency 2023

Indigenous Peoples Task Force

MN

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

2023-004: Lack of Payroll Documentation Federal Departments: Department of Health and Human Services Assistance Listing #: 93.612 and 93.939 Internal Controls Significant Deficiency Category of Finding – Allowable Costs/ Cost Principles Name of contact person – Sharon Day, Executive Direc...

2023-004: Lack of Payroll Documentation Federal Departments: Department of Health and Human Services Assistance Listing #: 93.612 and 93.939 Internal Controls Significant Deficiency Category of Finding – Allowable Costs/ Cost Principles Name of contact person – Sharon Day, Executive Director Corrective action – Management will review policies and procedures to ensure information is complete and up-to-date. Completion date – Management and the Board of Directors implemented the above as of January 2024.

View Audit 296866

Finding 383844 (2023-002)

Material Weakness 2023

Indigenous Peoples Task Force

MN

Allowable Costs / Cost Principles

2023-002: Maintaining Invoices Federal Departments: Department of Health and Human Services Assistance Listing #: 93.939 Compliance and Internal Controls Material Weakness Category of Finding – Allowable Costs/ Cost Principles Name of contact person – Sharon Day, Executive Director Corr...

2023-002: Maintaining Invoices Federal Departments: Department of Health and Human Services Assistance Listing #: 93.939 Compliance and Internal Controls Material Weakness Category of Finding – Allowable Costs/ Cost Principles Name of contact person – Sharon Day, Executive Director Corrective action – Auditee’s comments and response – IPTF hired a new contract accountant and began using bill.com to store documentation supporting all costs and to ensure the related approvals are maintained. Completion date – Management and the Board of Directors implemented the above as of January 2024.

View Audit 296866

Finding 383823 (2023-002)

Material Weakness 2023

Metropolitan School District of Washington Township

IN

Subrecipient Monitoring Reporting Allowable Costs / Cost Principles § 200.208 § 200.302 § 200.303 § 200.328

FINDING 2023-002 Finding Subject: Special Education Cluster (IDEA) - Reporting Summary of Finding: Expenditures not agreeing with ledgers Contact Person Responsible for Corrective Action: Phyllis Ritenour Contact Phone Number and Email Address: 317-845-9400 pritenour@msdwt.k12.in.us Views of Respons...

FINDING 2023-002 Finding Subject: Special Education Cluster (IDEA) - Reporting Summary of Finding: Expenditures not agreeing with ledgers Contact Person Responsible for Corrective Action: Phyllis Ritenour Contact Phone Number and Email Address: 317-845-9400 pritenour@msdwt.k12.in.us Views of Responsible Officials: We concur with the finding Description of Corrective Action Plan: The finding was due to amounts that could not be claimed timely for reimbursement because of funds needing to be moved within grant buckets. Per a discussion with the auditors we need to tie the expenses not claimed back to a specific employee/employees or a specific purchase. beginning with our March reimbursements all adjustments to the funds ledger will have backup documents showing what items were omitted from reimbursement because of need for a budget amendment. Anticipated Completion Date: March 2024

View Audit 296858

Finding 383806 (2023-002)

Significant Deficiency 2023

Levittown Union Free School District

NY

Allowable Costs / Cost Principles Significant Deficiency

2. Audit Finding: 2023-002 The District did not take timely action to obtain Payroll Certification Forms from employees whose salaries were funded through federal funds. We recommend the District comply with their written policies and procedures to be in compliance with the Uniform Guidance. Distr...

2. Audit Finding: 2023-002 The District did not take timely action to obtain Payroll Certification Forms from employees whose salaries were funded through federal funds. We recommend the District comply with their written policies and procedures to be in compliance with the Uniform Guidance. District Response: The District will require all departments whose employees’ salaries are funded through federal funds to furnish the Payroll Certification Forms to the Business Office in a timely manner. The Business Office will review all forms for accuracy and will follow up with departments to assure timeliness in an effort to comply with District policy and procedures in accordance with the Uniform Guidance. Individuals Responsible for Implementation: Linda Dolecek, District Treasurer; Dr. Susan Farber, IDEA Grants; Michele Ortiz, Title Grants; Dr. Patricia Kolodnicki, Other Federal Grants Completion Date: June 30, 2024

View Audit 296826

Finding 383787 (2023-001)

Significant Deficiency 2023

Catholic Community Services of Western Washington

WA

Allowable Costs / Cost Principles § 200.430

Type of Finding: Significant Deficiency in Internal Control over Compliance relating to inadequate allocation of wages to federal programs may result in noncompliance with grant regulations. Views of Responsible Officials: Management accepts the finding. Effective internal control over the allocati...

Type of Finding: Significant Deficiency in Internal Control over Compliance relating to inadequate allocation of wages to federal programs may result in noncompliance with grant regulations. Views of Responsible Officials: Management accepts the finding. Effective internal control over the allocation of wages to federal programs, which can be attributed to how employees and cost centers were initially set up in the payroll software (ADP) to achieve the desired allocation splits. In one region, employees in ADP were not being consistently set up correctly to ensure the proper allocation of hours worked per the timesheets to their associated job cost centers. More thorough training of staff, along with careful supervisory review of employees’ allocations of wages and documented time and effort spent on each program would likely have prevented this error. Corrective Action: The setup for all employees has been corrected. In addition, each pay period, the setup for all new employees will be reviewed by the Controller to ensure consistency. The Controller will also pull samples of timecards monthly and verify the allocation percentages. A training is being developed along with a procedure guide for all current payroll staff and will be continued with all new payroll staff.

View Audit 296797

Finding 383784 (2023-002)

Significant Deficiency 2023

Catholic Community Services of Western Washington

WA

Questioned Costs Allowable Costs / Cost Principles Cash Management § 200.303 § 200.403 § 200.414

Type of Finding: Significant Deficiency in Internal Control over Compliance relating to inadequate documentation and controls in place to ensure costs are reasonable and intended for the program charged. Views of Responsible Officials: Management accepts the finding. Effective internal control over...

Type of Finding: Significant Deficiency in Internal Control over Compliance relating to inadequate documentation and controls in place to ensure costs are reasonable and intended for the program charged. Views of Responsible Officials: Management accepts the finding. Effective internal control over the allocation of indirect costs exceeding the de minimis cost rate of 10%, which can be attributed to a lack of communication and review of the total expenditures being charged to the federal program. Program managers were accidentally invoicing before reconciling adjustments made. More thorough training of staff, along with careful supervisory review of total expenditures being charged to the federal program, and invoicing would likely have prevented this error. Corrective Action: An annual training of all grant accountants is being developed and will cover indirect and allowable costs. In addition, a process for secondary review of all invoices is being developed.

View Audit 296797 Questioned Costs: $1

Finding 383771 (2023-003)

Material Weakness 2023

Catholic Community Services of Western Washington

WA

Allowable Costs / Cost Principles Cash Management Subrecipient Monitoring § 200.303 § 200.329

Type of Finding: Material weakness in internal control over compliance relating to inadequate documentation and controls in place to ensure costs are reasonable and intended for the program charged. Views of Responsible Officials: Management accepts the finding. Effective internal control over the ...

Type of Finding: Material weakness in internal control over compliance relating to inadequate documentation and controls in place to ensure costs are reasonable and intended for the program charged. Views of Responsible Officials: Management accepts the finding. Effective internal control over the documentation of secondary review of financial reports, timely filing, and disclosed demographics contained within the reports, which can be attributed to a lack of documentation of review and controls in place for submission of a report when responsible employee is out of office during the due date. Authorized personnel review was not documented, and a performance report was not filed timely and was filed with incorrect demographics. More thorough training of staff, along with careful supervisory review and documentation of review of report submissions prior to filing would likely have prevented these errors. Corrective action: A process for secondary review of all financial and programmatic reports will be developed in each region.

View Audit 296797

Finding 383744 (2023-001)

None 2023

The Primavera Foundation, Inc.

AZ

Questioned Costs Allowable Costs / Cost Principles

We have submitted a modified administrative cost approach plan (MACA) to the VA on December 8, 2023, and we are waiting for approval. We are working with our outside CPA firm to update our policies and procedures accounting for the new MACA plan implementation once it is approved. In the interim, we...

We have submitted a modified administrative cost approach plan (MACA) to the VA on December 8, 2023, and we are waiting for approval. We are working with our outside CPA firm to update our policies and procedures accounting for the new MACA plan implementation once it is approved. In the interim, we have already begun running detailed reports of allocations each month. We have also adjusted the VA grant to only apply direct cost for any administrative charges until the MACA is approved.

View Audit 296767 Questioned Costs: $1

Finding 383735 (2023-001)

Significant Deficiency 2023

Commcare Corporation Inc.

LA

Allowable Costs / Cost Principles § 200.303 § 200.403

2023-001 Significant Deficiency: Internal Controls over Allowable Costs Status: In progress Planned Corrective Action: Management will design, implement, and monitor controls for the retention of employee benefit election forms to adequately document costs charged to federal programs. Anticipated Co...

2023-001 Significant Deficiency: Internal Controls over Allowable Costs Status: In progress Planned Corrective Action: Management will design, implement, and monitor controls for the retention of employee benefit election forms to adequately document costs charged to federal programs. Anticipated Completion Date: March 31, 2024 Responsible Party: Alec Lundberg, Chief Financial Officer

View Audit 296752

Finding 383723 (2023-008)

Material Weakness 2023

Solen Public School District No. 3

ND

Allowable Costs / Cost Principles

Contact Person David Drapeaux Corrective Action Plan The district will review and update existing polices and procedures related to allowable cost principles to address deficiencies identified in this finding. The administration will ensure that staff understand the principles of allowable costs and...

Contact Person David Drapeaux Corrective Action Plan The district will review and update existing polices and procedures related to allowable cost principles to address deficiencies identified in this finding. The administration will ensure that staff understand the principles of allowable costs and compliance requirements. Completion Date On-going

View Audit 296746

Finding 383711 (2023-002)

Significant Deficiency 2023

M.s.a.d. No 70

ME

Allowable Costs / Cost Principles § 200.303

CORRECTIVE ACTION PLAN (Concerning Finding 2023-002) Contact Person Responsible for Corrective Action: Catrina Kemp, Business Manager Corrective Action: The Regional School Unit No. 70 will take the following actions to address finding 2023-002. Management will review standards and requirements annu...

CORRECTIVE ACTION PLAN (Concerning Finding 2023-002) Contact Person Responsible for Corrective Action: Catrina Kemp, Business Manager Corrective Action: The Regional School Unit No. 70 will take the following actions to address finding 2023-002. Management will review standards and requirements annually to ensure that the district is following federal guidelines. Management will also develop an attendance procedure to track salaried employees. Management will also employ a signature and date on all federal grant disbursements to ensure that all criteria and requirements are met for future federal grants. Anticipated Completion Date: July 1, 2024

View Audit 296743

Finding 383668 (2023-001)

Significant Deficiency 2023

Jewish Family & Children's Service of Southern Arizona, Inc.

AZ

Allowable Costs / Cost Principles

2023‐001: Costs billed to Federal Awards should be allowable per award guidelines. Recommendation: The Organization enhance review of policies and procedures. Action Taken: Management has added another layer of federal award invoice approval prior to the monthly submission for reimbursement.

View Audit 296710

Finding 383612 (2023-003)

Significant Deficiency 2023

Southwest School Corporation

IN

Matching / Level of Effort / Earmarking Allowable Costs / Cost Principles § 200.208 § 200.303 § 200.403

FINDING 2023-003 Information on the federal program: Subject: Special Education Cluster (IDEA) - Earmarking Federal Agency: Department of Education Federal Program: Special Education Grants to States Assistance Listings Number: 84.027 Federal Award Numbers and Years (or Other Identifying Number...

FINDING 2023-003 Information on the federal program: Subject: Special Education Cluster (IDEA) - Earmarking Federal Agency: Department of Education Federal Program: Special Education Grants to States Assistance Listings Number: 84.027 Federal Award Numbers and Years (or Other Identifying Numbers): 19611-022-PN01, 20611-022-PN01, 21611-022-PN01, 22611-022-PN01 Pass-Through Entity: Indiana Department of Education Compliance Requirement: Matching, Level of Effort, Earmarking Audit Findings: Significant Deficiency Condition: The School Corporation did not have internal controls in place to ensure that the Cooperative complied with the earmarking requirements. The Cooperative did not have adequate procedures in place to ensure that the required level of expenditures for non-public school students with disabilities was met for each member school. The Cooperative did not have effective internal controls to ensure non-public school expenditures were appropriately identified and reported. Context: The School Corporation is a member of the Greene Sullivan Special Education Cooperative (Cooperative). During fiscal year 2021-2022 and 2022-2023, the Cooperative operated the special education programs and spent the federal money on behalf of all its members.  As the grant agreements were between the Indiana Department of Education (IDOE) and each member school, the School Corporation was responsible for ensuring and providing oversight of the Cooperative. However, there was inadequate oversight performed by the School Corporation in order to ensure compliance with the Matching, Level of Effort, Earmarking compliance requirement. Although the Cooperative has a separate object code to identify expenditures for the purpose of proportionate share, there is no identifier or separate way to track which member school the funding was expended for. As such, the Non-Public Proportionate Share expenditures for the 19611-022-PN01, 20611-022-PN01, 21611-022-PN01, and 22611-022-PN01 grant awards could not be verified for the individual member schools. Additionally, the Cooperative did not obtain a waiver from the Indiana Department of Education for the amount unspent for the requirement on the 19611-022-PN01 and 20611-022-PN01 grant awards. For the 21611-022-PN01 grant award, a waiver was obtained from the IDOE which was used to cover a portion of the member school's required proportionate share amount; however, the remaining amount, which the Cooperative claimed to have expended, could not be traced to documentation that indicated which member school the expenditure was applied to. For the 22611-022-PN01 grant award, no waiver was obtained, and the amounts spent could not be traced to documentation that indicated which member school the expenditure was applied to. Also, the total amount expended for proportionate share was less than the total amount required when all member school proportionate share requirements were totaled. The lack of internal controls and noncompliance were isolated to the 19611-022-PN01, 20611-022-PN01, 21611-022-PN01, and 22611-022-PN01 grant awards. The minimum earmarking requirement for the 19611-022-PN01, 20611-022-PN01, 21611-022-PN01, and 22611-022-PN01 grant awards were $1,931, $3,486, $6,832, and $1,794, respectively. Views of Responsible Officials and Planned Corrective Actions: Management agrees with the finding and will take the following corrective action: 1 – Southwest School Corporation will establish a system of internal controls and procedures to ensure non-public proportionate share funds are appropriately allocated to the member school based on expenses charged directly on behalf of the member school. Supporting documentation for these expenses should be retailed for audit. 2 – Greene Sullivan Special Education Cooperative will require all staff to complete the appropriate google form following the completion of each session with Non-Public students. An example of this documentation is the Proportionate Share Service Log. This document will allow for ease of tracking funds per provider/school district. This will allow for successful usage of funds. In the event that funds are not successfully used, a waiver will be requested barring board approval. Responsible party and timeline for completion: Chris Stitzle, Superintendent, April 1, 2024

View Audit 296662

Finding 383601 (2023-002)

Material Weakness 2023

Southwest School Corporation

IN

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

FINDING 2023-002 Information on the federal program: Subject: Special Education Cluster (IDEA) - Activities Allowed or Unallowed, Allowable Costs/Cost Principles, Period of Performance Federal Agency: Department of Education Federal Programs: Special Education Grants to States, Special Educ...

FINDING 2023-002 Information on the federal program: Subject: Special Education Cluster (IDEA) - Activities Allowed or Unallowed, Allowable Costs/Cost Principles, Period of Performance Federal Agency: Department of Education Federal Programs: Special Education Grants to States, Special Education Preschool Grants Assistance Listings Numbers: 84.027, 84.027X, 84.173, 84.173X Federal Award Numbers and Years (or Other Identifying Numbers): 19611-022-PN01, 20611-022-PN01, 21611-022-PN01, 22611-022-PN01, 22611-022-ARP, 23611-022-PN01, 20619-022-PN01, 21619-022-PN01, 22619-022-PN01, 22619-022-ARP, 23619-022-PN01 Pass-Through Entity: Indiana Department of Education Compliance Requirements: Activities Allowed or Unallowed, Allowable Costs/Cost Principles, Period of Performance Audit Finding: Material Weakness, Qualified Opinion Condition: The School Corporation did not have internal controls in place to ensure that the Cooperative complied with the Activities Allowed or Unallowed, Allowable Costs/Cost Principles, and Period of Performance compliance requirements. The Cooperative had not designed or implemented adequate policies or procedures to determine that grant expenditures were for the excess costs of providing special education and related services to children with disabilities, were in conformance with the applicable cost principles and were obligated during the award period of performance. There was no documented oversight, review, or approval process in place at the Cooperative to ensure expenditures were allowable, conformed with cost principles and were incurred during the period of performance. Context: The School Corporation is a member of the Greene-Sullivan Special Education Cooperative (Cooperative). During fiscal year 2021-2022 and 2022-2023, the Cooperative operated the special education programs and spent the federal money on behalf of all its members.  As the grant agreements were between the Indiana Department of Education (IDOE) and each member school, the School Corporation was responsible for ensuring and providing oversight of the Cooperative. However, there was inadequate oversight performed by the School Corporation in order to ensure compliance with the Activities Allowed or Unallowed, Allowable Costs/Cost Principles, and Period of Performance compliance requirements. The School Corporation did not have internal controls in place to ensure that the Cooperative complied with the Activities Allowed or Unallowed, Allowable Costs/Cost Principles, and Period of Performance compliance requirements. The Cooperative had not designed or implemented adequate policies or procedures to determine that grant expenditures were for the excess costs of providing special education and related services to children with disabilities, were in conformance with the applicable cost principles and were obligated during the award period of performance. There was no documented oversight, review, or approval process in place at the Cooperative to ensure expenditures were allowable, conformed with cost principles and were incurred during the period of performance. The lack of internal controls was a systemic issue throughout the audit period. Views of Responsible Officials and Planned Corrective Actions: Management agrees with the finding and will take the following corrective action: 1 – All invoices, as well as receipts, will be documented upon receipt by the Director of Special Education at Greene Sullivan Special Education Cooperative. After this takes place, The Director of Finance at Greene Sullivan Special Education Cooperative will then create vouchers and receipts accordingly. Prior to submission, the Director of Special Education of Greene Sullivan Special Education Cooperative will verify all documents for accuracy. The Superintendent and Treasurer of Southwest School Corporation will review the documentation for the Cooperative at lease semi-annually. Responsible party and timeline for completion: Chris Stitzle, Superintendent – April 1, 2024

View Audit 296662

Finding 383575 (2023-002)

Significant Deficiency 2023

Addiction Recovery Care Association, Inc.

NC

Questioned Costs Allowable Costs / Cost Principles § 200.439

The Organization has developed appropriate controls over the review and approval of allowable costs; however, the Organization will review and strengthen these control activities by providing a more thorough examination of capital expenditures to ensure that such costs are approved by the federal aw...

The Organization has developed appropriate controls over the review and approval of allowable costs; however, the Organization will review and strengthen these control activities by providing a more thorough examination of capital expenditures to ensure that such costs are approved by the federal awarding agency or the pass-through entity when required.

View Audit 296624 Questioned Costs: $1

Finding 383567 (2023-003)

Material Weakness 2023

North West Hendricks School Corporation

IN

Questioned Costs Allowable Costs / Cost Principles Cash Management § 200.303 § 200.305

FINDING 2023-003 Information on the federal program: Subject: Education Stabilization Fund – Advance Draws Federal Agency: Department of Education Federal Program: COVID-19 – Education Stabilization Fund Assistance Listing Number: 84.425D, 84.425U Pass-Through Entity: Indiana Department of Educatio...

FINDING 2023-003 Information on the federal program: Subject: Education Stabilization Fund – Advance Draws Federal Agency: Department of Education Federal Program: COVID-19 – Education Stabilization Fund Assistance Listing Number: 84.425D, 84.425U Pass-Through Entity: Indiana Department of Education Compliance Requirement: Activities Allowed or Unallowed, Allowable Costs- Cost Principles Audit Finding: Material Weakness, Qualified Opinion Condition: The School Corporation requested reimbursement prior to incurring expenditures under federal grant awards. An effective internal control system was not in place at the School Corporation in order to ensure compliance with requirements related to the grant agreement and the Activities Allowed or Unallowed, Allowable Costs- Cost Principles compliance requirements. Context: During testing disbursements charged to ESF grants, we noted advance payments were received during the audit period prior to allowable costs being incurred by the School Corporation impacting the following Education Stabilization Fund grant awards: ● The School Corporation submitted a claim for reimbursement for $43,864 from the ESSER I grant award (84.425D) which was receipted on August 24, 2021. As of August 24, 2021, the School Corporation had incurred $41,674 of grant expenditures. The remaining $2,190 was disbursed on April 12, 2022. ● The School Corporation submitted a claim for reimbursement for $148,822 from the ESSER II grant award (84.425D) which was receipted on July 28, 2021. There were no expenditures incurred as of the date of the reimbursement request. The School Corporation began incurring expenditures after the advance payment, however, as of June 30, 2022, the School Corporation had an unspent cash balance of $24,613 in the ESSER II fund because of the advance payment. The School Corporation did not request any reimbursements for the period of July 1, 2022 through June 30, 2023 and continued to incur expenditures. As of June 30, 2023, the School Corporation had an unspent cash balance of $16,145. FINDING 2023-003 (Continued) ● The School Corporation submitted two claims for reimbursements from the ESSER III grant award (84.425U) during fiscal year 2022. The first claim reimbursement was receipted on November 24, 2021, in the amount of $52,210. The second claim reimbursement request was receipted on June 22, 2022, in the amount of $144,649. The School Corporation had incurred expenditures as of the date of each claim reimbursement requests, however, the amount claimed for reimbursement exceeded expenditures incurred resulting in advance payments being received. As of June 30, 2022, the School Corporation had an unspent cash balance of $88,348 in the ESSER III fund as a result of the advance payment. The School Corporation did not request any claims for reimbursements for the period of July 1, 2022 through June 30, 2023 and continued to incur expenditures. As of June 30, 2023, the School Corporation had an unspent cash balance of $21,842 in the ESSER III fund because of the advance payments. Views of Responsible Officials and Corrective Action Plan: Management agrees with the finding. Going forward the reimbursement will be prepared by the Assistant Superintendent once the funds have been spent and the Corporation Treasurer will review the reimbursement before it is submitted. Responsible Party and Timeline for Completion: The Assistant Superintendent, David Hobaugh, and the Corporation Treasurer, Kristina James, will oversee the corrective action plan and will be implemented immediately.

View Audit 296613 Questioned Costs: $1

Finding 383545 (2023-005)

Material Weakness 2023

Community Schools of Frankfort

IN

School Nutrition Programs Internal Control / Segregation of Duties Matching / Level of Effort / Earmarking § 200.303

FINDING 2023-005 Finding Subject: Child Nutrition Cluster – Reporting; Special Tests and Provisions, Eligibility Summary of Finding: Internal controls were not in place to ensure compliance with requirements related to the grant agreement, specifically related to reporting and eligibility. Contact P...

FINDING 2023-005 Finding Subject: Child Nutrition Cluster – Reporting; Special Tests and Provisions, Eligibility Summary of Finding: Internal controls were not in place to ensure compliance with requirements related to the grant agreement, specifically related to reporting and eligibility. Contact Person Responsible for Corrective Action: Scott Weltz, Amanda Brackett Contact Phone Number and Email Address: 765-654-5585, weltzs@frankfort.k12.in.us, bracketa@frankfort.k12.in.us Views of Responsible Officials: We concur with the finding. Description of Corrective Action Plan: Internal controls will be established and followed to ensure compliance with requirements related to the grant agreement. The Director shall submit the report after the Treasurer reviews and verifies the information in the report. Such measures will prevent future misstatements and provide the proper internal controls. Anticipated Completion Date: Effective immediately and ongoing

View Audit 296610

Finding 383539 (2023-004)

Material Weakness 2023

Community Schools of Frankfort

IN

Allowable Costs / Cost Principles School Nutrition Programs § 200.303 § 200.403 § 200.430

FINDING 2023-004 Finding Subject: Child Nutrition Cluster – Allowable Activities & Allowable Costs / Cost Principals Summary of Finding: Internal controls were not in place to ensure compliance with requirements related to the grant agreement, specifically the requirement: Allowable Activities & All...

FINDING 2023-004 Finding Subject: Child Nutrition Cluster – Allowable Activities & Allowable Costs / Cost Principals Summary of Finding: Internal controls were not in place to ensure compliance with requirements related to the grant agreement, specifically the requirement: Allowable Activities & Allowable Costs / Cost Principals. Contact Person Responsible for Corrective Action: Scott Weltz, Amanda Brackett Contact Phone Number and Email Address: 765-654-5585, weltzs@frankfort.k12.in.us, bracketa@frankfort.k12.in.us Views of Responsible Officials: We concur with the finding. Description of Corrective Action Plan: Internal controls will be established and followed to ensure compliance with requirements related to the grant agreement. The Deputy Treasurer or designee will provide payroll distribution reports to the Director for review of payroll claims against the grant. Anticipated Completion Date: Effective immediately and ongoing

View Audit 296610

Finding 383484 (2023-020)

None 2023

State of Utah

UT

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

2023-020. Working Capital Reserves in Excess of Federal Guidelines State Agency: Department of Governmental Operations Federal Agency: Various Division of Purchasing and General Services Cooperative Contract Management Fund – Public entities in Utah rely on the Division of Purchasing and General Ser...

2023-020. Working Capital Reserves in Excess of Federal Guidelines State Agency: Department of Governmental Operations Federal Agency: Various Division of Purchasing and General Services Cooperative Contract Management Fund – Public entities in Utah rely on the Division of Purchasing and General Services (State Purchasing) to maintain the cooperative contract program to assist with public procurement in Utah. The usage of state cooperative contracts by public entities continues to increase yearly, resulting in a corresponding increase in the collection of administrative fees. State Purchasing continues to review contract administrative fees on state cooperative contracts as each contract expires and is resolicited. This is a slow process since State Purchasing has approximately 1,200 cooperative contracts that expire only every five years and are then resolicited. While State Purchasing is allowed under law to collect up to a 1.0% administrative fee on each cooperative contract, currently the average administrative fee is approximately 0.35%, a decrease of 18.6% from the average contract administrative fee in fiscal year 2022. The Division of Purchasing and General Services also continues to work with the Department of Government Operations executive leadership to request the Utah Legislature appropriate out a portion of the excess reserves in the Cooperative Contract Management Fund. The calculation of the federal portion of these transfers will be submitted to Cost Allocation Services for review and approval when these transfers are completed. Federal Surplus Property Fund- Surplus Property anticipated relocating by the end of fiscal year 2023 with the completion of the new Utah State Prison. Due to schedule changes, the new location for Surplus Property was not completed in time and the new anticipated relocation date is the end of fiscal year 2025. At the time of relocation, Surplus Property will use the excess reserve funds to move and furnish the new location, including replacing aged equipment. Contact Person: Windy Aphayrath, waphayrath@utah.gov, Director, Division of Purchasing and General Services Anticipated Correction Date: June 30, 2025 Division of Finance Purchasing Card Fund – State Finance is in the process of implementing a new travel and expense reporting system for all state agencies. This system will simplify travel approvals, travel reimbursements, and reduce the administrative burden for the purchasing card (P-Card) expense reports on state agency personnel. To cover system implementation costs, State Finance elected not to distribute the rebates received from U.S. Bank related to state agency P-Card spending for calendar years 2021, 2022, and 2023. Rebates were still sent to participating entities external to the primary government. The anticipated completion date for the new system is the end of the calendar year 2024. State Finance will then review annually the costs of the system, develop a cost allocation strategy between the travel and P-Card programs, and adjust travel rates to cover the travel program's ongoing costs. The P-Card program will then distribute any remaining P-Card rebates to state agencies respective to their spend. This effort should reduce and/or eliminate any excess federal reserves in the P-Card fund by the end of fiscal year 2025. Contact Person: Allyson Branch, abranch@utah.gov, Assistant Director, Division of Finance Anticipated Correction Date: June 30, 2025 Division of Risk Management Workers' Compensation Fund – The Division of Risk Management did not request an increase in rates for fiscal year 2024 for the Workers Compensation Fund. It is also anticipated that premiums for worker compensation insurance for fiscal year 2025 will increase. This increase will help bring this fund back into compliance. The Division of Risk Management will also reevaluate this program at the end of fiscal year 2024 to determine if a legislative request to transfer funds out and/or refund the federal portion of retained earnings is needed to reduce and/or eliminate the excess federal reserves remaining in this fund. Contact Person: Rachel Terry, rachelgterry@utah.gov, Director, Division of Risk Management Anticipated Correction Date: June 30, 2025 Division of Technology Services Communication Services – The fiscal year 2024 Communication Services rate was set to under recover the cost of providing this service by $276,000. The fiscal year 2025 rate was also set to under recover the cost of providing this service by an additional $398,000. DTS plans to annually review and adjust rates and issue mid-year rebates, if necessary, to bring DTS Communication Services into compliance with federal excess reserve guidelines by the end of fiscal year 2025. Mainframe Services – This service will be coming to an end by fiscal year 2024. As this service ends, DTS will issue rebates of any remaining Mainframe Services retained earnings to the state agencies who used the system. Contact Person: Dan Frei, dfrei@utah.gov, Finance Director, Division of Technology Services Anticipated Correction Date: June 30, 2025 Division of Human Resource Management Human Resources Field Services – During fiscal year 2023, the Division of Human Resource Management worked to better align expenses with the corresponding rate. A cost allocation plan was developed to accomplish this goal. As a result of that effort, the Human Resources Field Services rate was decreased, and the Payroll Services and Core Services rates were increased for fiscal year 2025. The Division anticipates that these rate adjustments will eliminate the excess reserves. Contact Person: John Barrand, jbarrand@utah.gov, Director, Division of Human Resource Management Anticipated Correction Date: June 30, 2025

View Audit 296545

Finding 383483 (2023-006)

Material Weakness 2023

State of Utah

UT

Subrecipient Monitoring Allowable Costs / Cost Principles Cash Management § 200.303

2023-006. Lack of Controls over Food Benefit Payments State Agency: Department of Health and Human Services Federal Agency: Department of Health and Human Services The Division of Family Health (DFH) will continue efforts to ensure proper management of the WIC program. The department and DFH will co...

2023-006. Lack of Controls over Food Benefit Payments State Agency: Department of Health and Human Services Federal Agency: Department of Health and Human Services The Division of Family Health (DFH) will continue efforts to ensure proper management of the WIC program. The department and DFH will consider possible improvements for managing third party food benefit redemptions. Contact Person: Mykio Saracino, Assistant Office Director, 385-228-4798 Anticipated Correction Date: December 31, 2024

View Audit 296545

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