Corrective Action Plans

Finding 3739 (2023-003)

Significant Deficiency 2023

Lessie Bates Davis Neighborhood House Inc.

IL

Allowable Costs / Cost Principles

The Neighborhood House will conduct an internal review of all payroll and payroll allocations to make adjustments and corrections to program allocations. The payroll report will be reviewed annually for revisions. Staff will discuss a procedure to ensure that payroll and benefits are accurately allo...

The Neighborhood House will conduct an internal review of all payroll and payroll allocations to make adjustments and corrections to program allocations. The payroll report will be reviewed annually for revisions. Staff will discuss a procedure to ensure that payroll and benefits are accurately allocated.

View Audit 5897

Finding 3737 (2023-001)

Significant Deficiency 2023

Lessie Bates Davis Neighborhood House Inc.

IL

Allowable Costs / Cost Principles Cash Management

The Neighborhood House is undergoing an internal review of all payroll and payroll allocations. Adjustments and corrections to program allocations will be made accordingly. The payroll report will be reviewed annually for revisions.

View Audit 5897

Finding 3710 (2023-002)

Significant Deficiency 2023

Deerfield Community School District

WI

Questioned Costs Subrecipient Monitoring Allowable Costs / Cost Principles

2023-002 -#84.425D COVID-19 Elementary and Secondary School Emergency Relief Fund II Federal Grantor: U.S. Department of Education Pass-through Award Number: 2022-131309-DPI-ESSERFll-163 Pass-through Entity: Wisconsin Department of Public Instruction Criteria: Wage rate requirements apply t...

2023-002 -#84.425D COVID-19 Elementary and Secondary School Emergency Relief Fund II Federal Grantor: U.S. Department of Education Pass-through Award Number: 2022-131309-DPI-ESSERFll-163 Pass-through Entity: Wisconsin Department of Public Instruction Criteria: Wage rate requirements apply to the Education Stabilization Fund when laborers and mechanics employed by contractors or subcontractors work on construction contracts more than $2,000. Laborer must be paid wages not less than those established for the locality of the project (prevailing wage rates) by the Department of Labor (DOL). Nonfederal entities shall include in their contracts subject to wage rate requirements a provision that the contractor or subcontractor complies with those requirements and the DOL regulations. This includes a requirement for the contractor or subcontractor to submit to the District weekly payrolls and a statement of compliance (certified payrolls). Condition: There was one Education Stabilization Fund construction project performed by a subcontractor. Grant expenditures for the project paid by the Education Stabilization Fund totaled $34,828. There was not a prevailing wage clause in the contract and certified payrolls were not received. Cause: The District was not aware that wage rate requirements applied to the construction project until after it was completed. Effect: A reimbursement request was made for expenditures that did not comply with wage rate requirements. Questioned Costs: $34,828. Recommendation: Establish controls to comply with wage rate requirements related to the Education Stabilization Fund. Consider determining if the contractor performing the project in 2022-2023 paid prevailing wage rates for costs reimbursed by the grant. Otherwise, the District should replace the cost with other allowable costs. Response: The District replaced the cost with other allowable costs. Contact Person: Doreen Treuden Anticipated Completion: November 27, 2023

View Audit 5871 Questioned Costs: $1

Finding 3691 (2023-001)

Significant Deficiency 2023

Volunteers of America Chesapeake & Carolinas, INC

MD

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

Finding #2023-001 – Allowable Costs relating to Time and Effort and Internal Controls Contact – Suzanne Tobin, Chief Financial Officer Telephone Number – (301)-832-3810 Completion Date – First Quarter of 2024 Information on the Major Federal Program: U.S. Department of Health and Human Services Name...

Finding #2023-001 – Allowable Costs relating to Time and Effort and Internal Controls Contact – Suzanne Tobin, Chief Financial Officer Telephone Number – (301)-832-3810 Completion Date – First Quarter of 2024 Information on the Major Federal Program: U.S. Department of Health and Human Services Name of Program: Substance Abuse and Mental Health Services Assistance Listing Number: 93.243 Grant Award Number: 1H79TI085239-01/6H79SM080760-03M001/1H79TI084237-01/ 1H79SM080760-01 Grant Award Period: September 30, 2022 to September 29, 2027, November 30, 2018 to November 29, 2023, September 30, 2021 to September 29, 2026/November 30, 2018 to November 29, 2023 U.S. Department of Veterans Affairs Name of Program: Veterans Supportive Housing Per Diem Program Assistance Listing Number: 64.024 Grant Award Number: VOAQ754-1291-558-PD-21, VOAQ754-2080-558-CM-22, VOAQ754-2286-565-CM-22 Grant Award Period: October 1, 2022 to September 30, 2023 Corrective Action Plan: Effective immediately, the Organization will strictly enforce its policy for employees to properly complete their timesheets and for supervisors to properly review and approve employees’ timesheets. To do this, the Organization will conduct a training for all employees and supervisors about how to properly complete and review timesheets. To ensure compliance with the policy, the Organization will conduct random checks of timesheets every pay period to verify that supervisory approval is performed. Appropriate disciplinary action will be implemented for non-compliance.

View Audit 5813

Finding 3629 (2023-002)

Significant Deficiency 2023

Little Lake City School District

CA

Questioned Costs Allowable Costs / Cost Principles

The Director of Fiscal Services will communicate with the California Depratment of Education on all unclear unallowable indirect cost prior to year-end closing. Moving forward the district will continue to use the Standardized Account Code Resource Code Query tables to identify allowable and Indirec...

The Director of Fiscal Services will communicate with the California Depratment of Education on all unclear unallowable indirect cost prior to year-end closing. Moving forward the district will continue to use the Standardized Account Code Resource Code Query tables to identify allowable and Indirect cost programs. Additionally, the district will continue to utilize the approved indirect cost rates established by the California Department of Education.

View Audit 5632 Questioned Costs: $1

Finding 3405 (2023-003)

Material Weakness 2023

Brodstone Memorial Hospital D/b/a Brodstone Healthcare and Affiliate

NE

Questioned Costs Allowable Costs / Cost Principles Cash Management § 200.303

Material Weakness: Criteria: 2 CFR 200.303(a) establishes that the auditee must establish and maintain effective internal control over the federal award that provides assurance that the entity is managing the federal award in compliance with federal statutes, regulations, and conditions of the feder...

Material Weakness: Criteria: 2 CFR 200.303(a) establishes that the auditee must establish and maintain effective internal control over the federal award that provides assurance that the entity is managing the federal award in compliance with federal statutes, regulations, and conditions of the federal award. The Hospital claimed reimbursement for health-related lost revenue during the COVID-19 pandemic. Condition: The Hospital claimed reimbursement for health-related lost revenue based on a comparison of actual monthly revenue for the months of March, April, and May 2020 to the same corresponding months of 2019. Within the calculation, the Hospital excluded certain other operating revenue from the 2020 monthly totals which were included in the 2019 monthly totals. As a result, the compilation of revenue used between the periods was not consistently applied resulting in a higher lost revenue calculation than prescribed by the applicable guidance. Views of Responsible Officials: Management agrees with the finding. Planned Completion Date: April 30, 2024. Person Responsible: Cyrstal Wyatt, CFO.

View Audit 5310 Questioned Costs: $1

Finding 3173 (2023-002)

Material Weakness 2023

Reading Partners

CA

Allowable Costs / Cost Principles Reporting

Management agrees with the findings presented by the auditors. Management has taken the following actions already to ensure that there is proper review and approval. The Organization went through a payroll system transition in FY23. During the implementation phase of the new payroll system, the orga...

Management agrees with the findings presented by the auditors. Management has taken the following actions already to ensure that there is proper review and approval. The Organization went through a payroll system transition in FY23. During the implementation phase of the new payroll system, the organization encountered a significant learning curve. As we progress into FY24, we will utilize our payroll system to document the approval process for staff working on federal grants. We offer two options for this documentation: either via timesheets or written confirmation of hours worked on federal grants for recordkeeping.Management will continue to conduct staff training and education regarding the importance of time tracking when allocating time to federal grants. To ensure strong internal controls, management is committed to conducting periodic internal reviews as part of our compliance checks.

View Audit 5193

Finding 3168 (2023-002)

Significant Deficiency 2023

Hot Springs County School District #1

WY

Allowable Costs / Cost Principles § 200.303

2023-002 - Expenditure Controls - Significant Deficiency The District agrees that while significant progress has been made in this area, there is still work to do regarding the pre-authorization of purchases. The Business Manager has held meetings with each building and department individually to co...

2023-002 - Expenditure Controls - Significant Deficiency The District agrees that while significant progress has been made in this area, there is still work to do regarding the pre-authorization of purchases. The Business Manager has held meetings with each building and department individually to communicate proper procedures. She has also issued All Staff emails outlining these procedures and referencing board policy supporting these practices. Proper procurement procedure instructions are also available via video through a link on the Business Office Department page of the District website for reference. We recognize that proper training is imperative to compliance in all departments and the Business Office will continue to provide training throughout the year, with an emphasis in departments with new staff.

View Audit 5169

Finding 3132 (2023-003)

Significant Deficiency 2023

Delaware County Memorial Hospital D/b/a Regional Medical Center

IA

Allowable Costs / Cost Principles Reporting Significant Deficiency § 200.303

Management agrees with the finding. The Medical Center’s secondary review control will ensure allowable expenses are being claimed.

View Audit 5069

Finding 3119 (2023-002)

None 2023

Cherokee County School District

SC

Subrecipient Monitoring Allowable Costs / Cost Principles

Corrective Action: The Executive Director of Finance and Coordinator of Testing and Accountability & State/Federal Programs will do additional training on Title I plans and how to claim money. We will monitor the claims quarterly to track spending for each quarter to make sure we are meeting the pe...

Corrective Action: The Executive Director of Finance and Coordinator of Testing and Accountability & State/Federal Programs will do additional training on Title I plans and how to claim money. We will monitor the claims quarterly to track spending for each quarter to make sure we are meeting the percentages that are required by the state department. The Coordinator of Testing and Accountability & State/Federals will meet monthly with the Grants Accountant to monitor Title I.

View Audit 5045

Finding 3063 (2023-002)

Significant Deficiency 2023

Charter Institute at Erskine

SC

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

The Institute has implemented procedures to ensure all documents to support the salaries and wages charged to federal programs are prepared in accordance with the SCDE requirements.

View Audit 5024

Finding 2748 (2023-002)

Significant Deficiency 2023

Boyne City Public Schools

MI

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

The District will require those personnel that are subject to federal award requirements to complete a personnel activity report (PAR) or semi-annual certification. The person responsible for the corrective action is Irene Byrne, the CFO. The anticipated completion date of the corrective action plan...

The District will require those personnel that are subject to federal award requirements to complete a personnel activity report (PAR) or semi-annual certification. The person responsible for the corrective action is Irene Byrne, the CFO. The anticipated completion date of the corrective action plan is immediate. The plan for monitoring adherence is for the CFO to monitor federal employees and review the completed documents for all employees.

View Audit 4753

Finding 2740 (2023-001)

Significant Deficiency 2023

Reed City Area Public Schools

MI

Subrecipient Monitoring Allowable Costs / Cost Principles Reporting § 200.308

This finding is caused by Human error in transcribing amounts from the general ledger to the proper Activities and Objects on the Final Expenditure Report. The completion date for the corrective action plan is immediate. The person responsible for the corrective action is Tina Mills, the Business Ma...

This finding is caused by Human error in transcribing amounts from the general ledger to the proper Activities and Objects on the Final Expenditure Report. The completion date for the corrective action plan is immediate. The person responsible for the corrective action is Tina Mills, the Business Manager. The plan for monitoring adherence is the business manager will double check reports before submitting them to the State of Michigan.

View Audit 4709

Finding 2675 (2023-002)

None 2023

Lincoln County, Nebraska

NE

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

West Central NE Development District will need to collect reports from various offices (County Clerk & County Treasurer) to verify all expenditures and disbursements match and perform their own calculations.

View Audit 4513

Finding 2630 (2023-001)

Significant Deficiency 2023

Alight

MN

Allowable Costs / Cost Principles Subrecipient Monitoring Reporting

Views of Responsible Officials: As part of our investigation, we determined staff involved in the embezzlement colluded to circumvent Alight’s systems of internal controls at the directions of an Alight manager. In addition to taking the immediate actions listed above, including terminating the empl...

Views of Responsible Officials: As part of our investigation, we determined staff involved in the embezzlement colluded to circumvent Alight’s systems of internal controls at the directions of an Alight manager. In addition to taking the immediate actions listed above, including terminating the employment of staff involved, we also took the following actions:  We filed a police report, and are pursuing legal actions against the key actors involved in the malfeasance.  Alight’s executive leaders conducted policy, procedures and fraud notification training with the Thai staff including how to report suspected incidence of fraud.  Executive leaders and Thai leaders traveled to field offices to review operations and provide staff the opportunity to report issues. We believe these actions reinforce management’s zero tolerance to fraud and offer staff the knowledge and opportunity to report potential issues going forward.

View Audit 4459

Finding 2537 (2023-001)

Significant Deficiency 2023

Epidaurus Dba Amity Foundation

AZ

Procurement, Suspension & Debarment Allowable Costs / Cost Principles

Epidaurus dba Amity Foundation respectfully submits the following corrective action plan for the year ended June 30, 2023. Name and address of independent public accounting firm: BeachFleischman PLLC 1985 E. River Road, Suite 201 Tucson, AZ 85718 Audit Period: Year ending June 30, 2023 The finding f...

Epidaurus dba Amity Foundation respectfully submits the following corrective action plan for the year ended June 30, 2023. Name and address of independent public accounting firm: BeachFleischman PLLC 1985 E. River Road, Suite 201 Tucson, AZ 85718 Audit Period: Year ending June 30, 2023 The finding from the June 30, 2023 schedule of findings and questioned costs is discussed below. The finding is numbered consistently with the number assigned in the schedule. Findings - Major Federal Award Programs Audit 2023-001 Procurement Recommendation: We recommend the Organization implement changes to their procurement policies so they contain all the requirements of 2 CFR Part 200. Auditee response: Management is working on improving the documentation of their procurement policies, and will ensure any updated policies are in line with the requirements of 2 CFR Part 200. Management expects to have the policies updated by the end of December 2023. If you have any questions regarding this plan, please call Gloria Meridew, at 520-622-6489 or gmeridew@amityfdn.org.

View Audit 4324

Finding 2523 (2023-001)

Significant Deficiency 2023

Kent State University

OH

Questioned Costs Internal Control / Segregation of Duties Allowable Costs / Cost Principles § 200.413 § 200.516

Upon learning of the possibility of frauduelent activity, the University began an internal audit review and all activity on the grant was stopped. Throughout the process, the University coordinated with the Ohio Department of Development. The internal audit procedures led to the determination that $...

Upon learning of the possibility of frauduelent activity, the University began an internal audit review and all activity on the grant was stopped. Throughout the process, the University coordinated with the Ohio Department of Development. The internal audit procedures led to the determination that $209,101 was incorrectly reported by the program advisor and was not detected by the program director. These funds were returned to the Ohio Department of Development on October 11, 2023. The program has been termianted and program income returned. The individuals involved with this program are no longer employees of the University. The University is in the process of seeking reimbursement from the former employee. An internal controls questionnaire was prepared and reviewed for the other Small Business Development Center (SBDC) program noting no areas of concern. The FY24 internal audit plan will include additional review of the remaining SBDC program as well as review of controls within the department which previously managed the program noted in the finding. In addition, training related to roles and responsibilities for supervisors/approvers will be provided in FY24 to emphasize the guidance provided in the grants manual. Contact person responsible for the corrective action: Mark Polatajko, Senior Vice President for Finance and Administration.

View Audit 4303 Questioned Costs: $1

Finding 2456 (2023-003)

Significant Deficiency 2023

Independent School District No. 001

MN

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

ACTIVITIES ALLOWED OR UNALLOWED AND ALLOWABLE COSTS/COST PRINCIPLES Federal agency: U.S. Department of Education Federal program title: Education Stabilization Fund Assistance Listing Number: 84.425D, 84.425U, 84.425W Pass-Through Agency: Minnesota Department of Education Pass-Through Number(s): No...

ACTIVITIES ALLOWED OR UNALLOWED AND ALLOWABLE COSTS/COST PRINCIPLES Federal agency: U.S. Department of Education Federal program title: Education Stabilization Fund Assistance Listing Number: 84.425D, 84.425U, 84.425W Pass-Through Agency: Minnesota Department of Education Pass-Through Number(s): Not applicable Award Period: July 1, 2022 - June 30, 2023 Type of Finding: • Significant Deficiency in internal control over compliance CORRECTIVE ACTION PLAN (CAP): Recommendation: We recommend the District Board approve the wage rate of all employees via contracts or separate, individual approval. Explanation of Disagreement with Audit Findings: There is no disagreement with the audit finding. Actions Planned in Response to the Finding: The District will ensure employees’ wage rates and salaries are approved by the District’s Board. Official Responsible for Ensuring CAP: Heather Hipp, Business Manager. Planned Completion Date for CAP: June 30, 2024.

View Audit 4233

Finding 2392 (2023-001)

Significant Deficiency 2023

Union County School District

SC

Questioned Costs Allowable Costs / Cost Principles

Client Response: The Finance Director has already met with many of the various program leaders within the District to ensure they understand and grasp the concept of indirect cost calculations. They have also shared with them the excluded expenditure listing again to re-emphasize the need to accur...

Client Response: The Finance Director has already met with many of the various program leaders within the District to ensure they understand and grasp the concept of indirect cost calculations. They have also shared with them the excluded expenditure listing again to re-emphasize the need to accurately budget for indirect cost. The District has also looked into the potential to reduce its reliance on indirect cost and increase its direct spending from grants. For the finding above, the Finance Director will serve as the primary contact person for district compliance effort. The District has an estimated completion date of November 2023 as the District has already corrected the finding and resolved any noncompliance, if any, moving forward related to the above listed finding.

View Audit 4087 Questioned Costs: $1

Finding 2379 (2023-002)

Significant Deficiency 2023

East China School District

MI

Internal Control / Segregation of Duties Subrecipient Monitoring Allowable Costs / Cost Principles

Management will work with various departments to review current policies and procedures related to federal grant awards. We will focus on the related controls necessary to avoid transactions paid in advance that extend passed the expenditure period. Grant procedures will include review, approval a...

Management will work with various departments to review current policies and procedures related to federal grant awards. We will focus on the related controls necessary to avoid transactions paid in advance that extend passed the expenditure period. Grant procedures will include review, approval and consideration during the grant planning process.

View Audit 4071

Finding 2375 (2023-002)

Material Weakness 2023

Special School District No. 6

MN

Questioned Costs Allowable Costs / Cost Principles Internal Control / Segregation of Duties § 200.405

MATERIAL WEAKNESS IN INTERNAL CONTROL OVER COMPLIANCE AND MATERIAL NONCOMPLIANCE – U.S. DEPARTMENT OF EDUCATION, PASSED THROUGH MINNESOTA DEPARTMENT OF EDUCATION, SPECIAL EDUCATION CLUSTER (INCLUDING COVID-19 FUNDING) – FEDERAL ALN 84.027 AND 84.173 2023-002 Internal Control Over Compliance and Ma...

MATERIAL WEAKNESS IN INTERNAL CONTROL OVER COMPLIANCE AND MATERIAL NONCOMPLIANCE – U.S. DEPARTMENT OF EDUCATION, PASSED THROUGH MINNESOTA DEPARTMENT OF EDUCATION, SPECIAL EDUCATION CLUSTER (INCLUDING COVID-19 FUNDING) – FEDERAL ALN 84.027 AND 84.173 2023-002 Internal Control Over Compliance and Material Noncompliance With Federal Allowable Costs Requirements Finding Summary 2 CFR § 200.405 specifies a cost is allocable to a particular federal award if the goods or services involved are chargeable or assignable to that federal award in accordance with relative benefits received. This standard is met if: the cost is incurred specifically for the award, the cost can be distributed in proportions that may be approximated using reasonable methods, and if the cost is necessary to the overall operation of the District and is assignable in part to the federal award in accordance with the principles in 2 CFR 200 Subpart E – Cost Principles. During our audit, we noted that the District did not have adequate internal controls in place to ensure all salary costs charged to the federal special education cluster program met the standard for an allowable or allocable cost as defined by the U.S. Office of Management and Budget’s Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance) allowable costs standards, which resulted in a reportable instance of noncompliance. Corrective Action Plan Actions Planned – The District’s Finance Director, along with special education staff, will review all salaries and benefits being charged to the special education cluster in fiscal 2024 to ensure that adequate time and effort documentation will be maintained for all salaries charged to the program so only allowable costs are being claimed for federal reimbursement. The District will also review its policies and procedures relating to allowable costs for its federal programs to ensure compliance with the Uniform Guidance in the future. Official Responsible – Brady Hoffman, Finance Director. Planned Completion Date – June 30, 2024. Disagreement With or Explanation of Finding – The District is in agreement with this finding. Plan to Monitor – Brady Hoffman, Finance Director, will monitor implementation of the corrective action plan to ensure compliance with the Uniform Guidance in the future.

View Audit 4067 Questioned Costs: $1

Finding 2340 (2023-003)

Significant Deficiency 2023

Antelope County

NE

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

Antelope County will complete the annual expenditure report as required by ARPA Funding.

View Audit 4002

Finding 2326 (2023-002)

Significant Deficiency 2023

Marquette Area Public Schools

MI

Allowable Costs / Cost Principles Reporting § 200.430

The School District recognizes the issue identified during the audit and has made all necessary adjustments to ensure compliance with spending down the remaining ESSER III funding.

View Audit 3993

Finding 2325 (2023-003)

Significant Deficiency 2023

Holt County

NE

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

Holt County will create a spreadsheet that will track expenditures and obligations.

View Audit 3982

Finding 2247 (2023-002)

Significant Deficiency 2023

Ralls County R-II School District

MO

Subrecipient Monitoring Allowable Costs / Cost Principles Cash Management § 200.302

I am acknowledging the finding of the Federal Audit team in which an error in my spreadsheet was documented resulting in requesting a recurring expenditure on two different pay requests. The correction was made the day of the audit through coding other expenditures matching the qualifying expenditur...

I am acknowledging the finding of the Federal Audit team in which an error in my spreadsheet was documented resulting in requesting a recurring expenditure on two different pay requests. The correction was made the day of the audit through coding other expenditures matching the qualifying expenditures. In the future, the district spreadsheets will include review by the bookkeeper and superintendent to ensure the fund pay requests are correct and not repeated. By multiple review and the addition of PO number and date of pay request this will easily define a possible "doubling up" of items for a pay request. This was one finding and all other accounts reviewed were correct and accurate. Additional expenditures were corrected and easily matched the grant funds obtained through reimbursement. The new procedure will begin immediately. Tara Lewis Superintendent

View Audit 3876

Corrective Action Plans

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