Corrective Action Plans

Finding 50593 (2022-003)

Significant Deficiency 2022

Housing Authority of the City of Nogales

AZ

HUD Housing Programs Internal Control / Segregation of Duties Allowable Costs / Cost Principles

2022-003 Public and Indian Housing ? Assistance Listing No. 14.850 Recommendation: We recommend the Authority design and implement controls to ensure the required general depository agreements are executed and submitted to HUD utilizing the HUD-51999 form. Explanation of disagreement with audit f...

2022-003 Public and Indian Housing ? Assistance Listing No. 14.850 Recommendation: We recommend the Authority design and implement controls to ensure the required general depository agreements are executed and submitted to HUD utilizing the HUD-51999 form. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: The Authority will file the declaration of trust for each property using the acceptable form under HUD guidance. Name(s) of the contact person(s) responsible for corrective action: Terry Ybarra Planned completion date for corrective action plan: June 30, 2023.

View Audit 43026

Finding 50592 (2022-002)

Significant Deficiency 2022

Housing Authority of the City of Nogales

AZ

HUD Housing Programs Allowable Costs / Cost Principles Significant Deficiency

2022-002 Public and Indian Housing ? Assistance Listing No. 14.850 Recommendation: We recommend the Authority design and implement controls to declaration of trust were prepared and recorded against all public housing properties owned by the Authority. Explanation of disagreement with audit findin...

2022-002 Public and Indian Housing ? Assistance Listing No. 14.850 Recommendation: We recommend the Authority design and implement controls to declaration of trust were prepared and recorded against all public housing properties owned by the Authority. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: The Authority will file the declaration of trust for each property using the acceptable form under HUD guidance. Name(s) of the contact person(s) responsible for corrective action: Terry Ybarra Planned completion date for corrective action plan: June 30, 2023.

View Audit 43026

Finding 50560 (2022-001)

Significant Deficiency 2022

Community Health Systems, Inc.

CA

Allowable Costs / Cost Principles Cash Management Eligibility

Finding 2022-001 PROGRAM INCOME ? CFD #93.224 (Significant Deficiency in Internal Control over Compliance) Response: Corrective Action Plan The Operation Department will conduct a verification of the sliding fee scale. In their internal monthly Sliding Fee Discount audit process, the Site Manager is...

Finding 2022-001 PROGRAM INCOME ? CFD #93.224 (Significant Deficiency in Internal Control over Compliance) Response: Corrective Action Plan The Operation Department will conduct a verification of the sliding fee scale. In their internal monthly Sliding Fee Discount audit process, the Site Manager is to review and verify each patient application, to the current Federal Poverty Level, to ensure patient is receiving the correct discount. Attached is a copy of policy and procedure for this corrective action plan.

View Audit 53034

Finding 50545 (2022-001)

Material Weakness 2022

Prosser School District No. 116

WA

Questioned Costs Allowable Costs / Cost Principles Subrecipient Monitoring

CORRECTIVE ACTION PLAN FOR FINDINGS REPORTED UNDER UNIFORM GUIDANCE Prosser School District No. 116 September 1, 2021 through August 31, 2022 This schedule presents the corrective action the District is planning to take for findings included in this report in accordance with Title 2 U.S. Code of Fe...

CORRECTIVE ACTION PLAN FOR FINDINGS REPORTED UNDER UNIFORM GUIDANCE Prosser School District No. 116 September 1, 2021 through August 31, 2022 This schedule presents the corrective action the District is planning to take for findings included in this report in accordance with Title 2 U.S. Code of Federal Regulations (CFR) Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Finding ref number: 2022-001 Finding caption: The District did not have adequate internal controls for ensuring compliance with allowable activities and costs and restricted purpose requirements. Name, address, and telephone of District contact person: Amy Hill, Business Manager, 1500 Grant Avenue, Prosser, WA 99350 (509) 786-3323 Corrective action the auditee plans to take in response to the finding: Although the District does not concur with the audit finding, we will take the following corrective steps: 1) Add questions for the student/staff member at the time of device distribution to determine ?unmet need? 2) Document the response 3) Retain the response for the required retention period Given the timing, the District will not be able to implement these changes for the 2022-2023 cycle, so the earliest date of implementation would be the 2023-2024 school year. Anticipated date to complete the corrective action: 9/1/2023

View Audit 53024 Questioned Costs: $1

Finding 50544 (2022-001)

Significant Deficiency 2022

Community Health Care, Inc.

IA

Allowable Costs / Cost Principles Reporting

During CHC's annual audit, Management discovered $80,305.25 of self-pay revenue has been entered into an incorrect quarter in the provider relief reporting portal. This has resulted in a finding in the current year financial statement audit. Management has evaluated the finding and reviewed whether ...

During CHC's annual audit, Management discovered $80,305.25 of self-pay revenue has been entered into an incorrect quarter in the provider relief reporting portal. This has resulted in a finding in the current year financial statement audit. Management has evaluated the finding and reviewed whether any funds need to be repaid and evaluated its controls around future provider relief reporting cycles. It has been determined that even if Self-Pay revenue were reclassified to the correct quarter, lost revenues would have been sufficient to keep the entire award. Therefore, no repayment is necessary. If allowed in future provider relief reporting periods CHC will correct the misreporting. In addition, management will ensure adequate time to review the provider relief reporting prior to the submission deadline. Management believes all necessary steps have been completed to correct the misreporting and believe this matter to be closed.

View Audit 52585

Finding 50534 (2022-007)

Material Weakness 2022

Randolph County Commission

WV

Questioned Costs Subrecipient Monitoring Allowable Costs / Cost Principles § 200.1 § 200.332 § 200.405 § 200.414 § 200.501

Finding # 2022-007 Title of Finding Subrecipient Monitoring Contact Person Brook Hinzman Anticipated Completion Date June 2023 Corrective Action planned to be taken: Will comply and monitor subrecipient spending going forward.

View Audit 47655 Questioned Costs: $1

Finding 50531 (2022-002)

Material Weakness 2022

Lancaster County Career and Technology Center

PA

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

PLANNED CORRECTIVE ACTIONS: ? CORRECT YEAR-END SPREADSHEET RECONCILIATIONS TO ENSURE PROPER MONITORING ? CONTACT PENNSYLVANIA DEPARTMENT OF EDUCATION TO RECTIFY THE OVERPAYMENT ? CONDUCT REGULAR REVIEW OF ORIGINAL GRANT BUDGETS AND ANY CORRESPONDING REVISIONS WITH MULTIPLE STAFF MEMBERS TO ENSURE TH...

PLANNED CORRECTIVE ACTIONS: ? CORRECT YEAR-END SPREADSHEET RECONCILIATIONS TO ENSURE PROPER MONITORING ? CONTACT PENNSYLVANIA DEPARTMENT OF EDUCATION TO RECTIFY THE OVERPAYMENT ? CONDUCT REGULAR REVIEW OF ORIGINAL GRANT BUDGETS AND ANY CORRESPONDING REVISIONS WITH MULTIPLE STAFF MEMBERS TO ENSURE THAT NO ERRORS EXIST

View Audit 47082 Questioned Costs: $1

Finding 50529 (2022-005)

Material Weakness 2022

Warren County, North Carolina

NC

Allowable Costs / Cost Principles Cash Management Material Weakness

Finding: 2022-5 Name of contact person: Renae Alston Corrective Action: Employees will be provided a refresher training on documentation of time sheets. Supervisors will be provided training on the review and reconciliation of data between the timesheet and the daysheet. Pr...

Finding: 2022-5 Name of contact person: Renae Alston Corrective Action: Employees will be provided a refresher training on documentation of time sheets. Supervisors will be provided training on the review and reconciliation of data between the timesheet and the daysheet. Proposed Completion Date: March 31, 2023

View Audit 47077

Finding 50524 (2022-002)

Significant Deficiency 2022

YWCA Madison, Inc.

WI

Subrecipient Monitoring Allowable Costs / Cost Principles Period of Performance § 200.403

FINDINGS ? FEDERAL AWARD PROGRAM AUDIT SIGNIFICANT DEFICIENCY 2022-002 Coronavirus State and Local Fiscal Recovery Funds ? Assistance Listing No. 21.027 Recommendation: YWCA should establish written policies and procedures to provide for timely and appropriate review and approval for period of pe...

FINDINGS ? FEDERAL AWARD PROGRAM AUDIT SIGNIFICANT DEFICIENCY 2022-002 Coronavirus State and Local Fiscal Recovery Funds ? Assistance Listing No. 21.027 Recommendation: YWCA should establish written policies and procedures to provide for timely and appropriate review and approval for period of performance. Action Taken: We concur with the recommendation and have developed the following plan. YWCA Madison, Inc., in compliance with guidance set forth in the Uniform Guidance 2 CFR section 200.303, will develop written policies and procedures on what, when, and who is responsible for review and approval for period of performance for YWC Madison funding. Additionally, YWCA Madison, Inc. will create a grant tracking checklist with key details for the funding including the performance period, total funding amount, allowable costs, the program or department funding is to be used for, etc. The checklist will also include an approval section for YWCA Madison finance team members to complete indicating their review of costs charged to the funding source at the beginning and the end of the performance period. The monitoring checklist will be updated to add a review of any new grant tracking checklists for the month as part of its internal controls checklist. The monitoring checklist will be reviewed monthly by the CEO and the review will be documented.

View Audit 48383

Finding 50523 (2022-001)

Material Weakness 2022

YWCA Madison, Inc.

WI

Subrecipient Monitoring Allowable Costs / Cost Principles Reporting § 200.303

FINDINGS ? FEDERAL AWARD PROGRAM AUDIT MATERIAL WEAKNESS 2022-001 Coronavirus State and Local Fiscal Recovery Funds ? Assistance Listing No. 21.027 Recommendation: YWCA should establish written policies and procedures to provide for timely and appropriate review and approval and adequate document...

FINDINGS ? FEDERAL AWARD PROGRAM AUDIT MATERIAL WEAKNESS 2022-001 Coronavirus State and Local Fiscal Recovery Funds ? Assistance Listing No. 21.027 Recommendation: YWCA should establish written policies and procedures to provide for timely and appropriate review and approval and adequate documentation of overhead allocations and time and effort reporting. Action Taken: We concur with the recommendation and have developed the following plan. In compliance with guidance set forth in the Uniform Guidance 2 CFR section 200.303, YWCA Madison, Inc. will document written policies and procedures to ensure timely and appropriate review and approval of overhead allocations and time and effort reporting. These policies and procedures will also describe the documentation to be used as support for the overhead allocations and time and effort reporting i.e., signed staff timesheets, program or department headcount, and facility floor plans. Additionally, on a quarterly basis, YWCA Madison, Inc. will document, review, and update, if necessary, the basis used for allocating overhead costs and time and effort reporting. A review of this process will be added to the monitoring checklist as part of the internal controls checklist. This checklist will be reviewed monthly by the CEO and the review will be documented.

View Audit 48383

Finding 50515 (2022-001)

Significant Deficiency 2022

Exceptional Persons, Inc.

IA

Allowable Costs / Cost Principles

Comment Number: 22-III-R-1 (2022-001) Comment Title: Salaries Approval and Allocation Corrective Action Plan: The corrective action plan was documented in our response to the auditor?s comment. See the schedule of findings and questioned costs. Contact Person, Title, Phone No.: James E. Perry, Chief...

Comment Number: 22-III-R-1 (2022-001) Comment Title: Salaries Approval and Allocation Corrective Action Plan: The corrective action plan was documented in our response to the auditor?s comment. See the schedule of findings and questioned costs. Contact Person, Title, Phone No.: James E. Perry, Chief Financial Officer Anticipated Date of Completion: June 30, 2023

View Audit 43449

Finding 50436 (2022-002)

Significant Deficiency 2022

Enrichment Services Program, Inc.

GA

Reporting Internal Control / Segregation of Duties Allowable Costs / Cost Principles § 200.302 § 200.327 § 200.328 § 200.510

INTERNAL CONTROLS OVER FINANCIAL STATEMENT PREPARATION, GRANT CLOSE OUT AND COMPLIANCE WITH RELATED PROVISIONS OF GRANTS AND CONTRACTS SHOULD BE IMPROVED HEAD START AND EARLY HEAD START PROGRAMS LOW-INCOME HOME ENERGY and WATER ASSISTANCE PROGRAM CFDA # 93.600, 93.568 and 93.499 (Questioned Costs -...

INTERNAL CONTROLS OVER FINANCIAL STATEMENT PREPARATION, GRANT CLOSE OUT AND COMPLIANCE WITH RELATED PROVISIONS OF GRANTS AND CONTRACTS SHOULD BE IMPROVED HEAD START AND EARLY HEAD START PROGRAMS LOW-INCOME HOME ENERGY and WATER ASSISTANCE PROGRAM CFDA # 93.600, 93.568 and 93.499 (Questioned Costs - Undetermined) Management is in the process of assessing the organizational structure and capacity to provide adequate financial reporting. With Board review and approval of the agency?s financial funding sources, the agency will hire additional fiscal clerk to further support financial requirements and segregation of duties to ensure adequate internal controls are fully implemented. The CFO will have the overall responsibility of properly reconciling and closing out the accounting system and grant activity each month in an efficient and timely manner to eliminate the risk of significant errors occurring. Budget-to-actual schedules will be an integral part of the grant accountant analyst?s basic responsibilities. The fiscal policies and procedures will be updated with the enhancements implemented within the fiscal department. Staff will be trained on revised policies and procedures and uniform guidance regulations. The new automated financial system, will support financial reporting to meet GAAP requirements and to provide informative reports for Board and Management. All enhancements will be implemented by December 31, 2023.

View Audit 43073

Finding 50426 (2022-001)

Material Weakness 2022

Boston Mountain Rural Health Center, Inc.

AR

Questioned Costs Allowable Costs / Cost Principles Reporting

Contact Name: Becky Blair, CFO Contact Phone Number: 870-448-5733 Audit Period Ending: December 31, 2022 Audit Firm: FORVIS, LLP Federal Program: Provider Relief Fund (PRF) and American Rescue Plan (ARP) Rural Distribution, Assistance Listing No. 93.498 Federal Agency: U.S. Department of Healt...

Contact Name: Becky Blair, CFO Contact Phone Number: 870-448-5733 Audit Period Ending: December 31, 2022 Audit Firm: FORVIS, LLP Federal Program: Provider Relief Fund (PRF) and American Rescue Plan (ARP) Rural Distribution, Assistance Listing No. 93.498 Federal Agency: U.S. Department of Health and Human Services Payment Received Period: Period 4, July 1, 2021 to December 31, 2021 Finding Number: 2022-001 Statement Condition: The Organization incorrectly reported all period four provider relief payments were applied to unreimbursed expenses attributable to COVID-19 within the HHS Provider Relief Fund (PRF) portal. Total expenditures reported had not been incurred by the Organization. Response: Management concurs with the finding and recommendation and will implement controls to ensure all reporting is reviewed for accuracy.

View Audit 43428 Questioned Costs: $1

Finding 50353 (2022-002)

None 2022

Bethel School District No. 403

WA

Questioned Costs Subrecipient Monitoring Equipment & Real Property Management

Finding ref number: 2022-002 Finding caption: The District did not have adequate internal controls for ensuring compliance with allowable activities and costs, and restricted purpose requirements. Name, address, and telephone of District contact person: Joanne Klein 516 176th Street E. Spanaway, ...

Finding ref number: 2022-002 Finding caption: The District did not have adequate internal controls for ensuring compliance with allowable activities and costs, and restricted purpose requirements. Name, address, and telephone of District contact person: Joanne Klein 516 176th Street E. Spanaway, WA 98387-8399 Corrective action the auditee plans to take in response to the finding: The District does not concur with the finding or questioned costs. The district had every intention to provide these iPads to the preschool students who were not in the district technology plan. However, the pandemic caused many distribution delays. The decision was made to provide these students with older surplus iPads. Since the iPads shipment was expected after the students returned to school. The District will work with the FCC to resolve this finding. District does not have any other Emergency Connectivity Grants. Anticipated date to complete the corrective action: 11/1/2023

View Audit 53745 Questioned Costs: $1

Finding 50350 (2022-001)

Material Weakness 2022

Monroe School District No. 103

WA

Questioned Costs Allowable Costs / Cost Principles Procurement, Suspension & Debarment

"See Corrective Action Plan for chart/table"

View Audit 53742 Questioned Costs: $1

Finding 50323 (2022-005)

Significant Deficiency 2022

Sports Leadership and Management Academy of Nevada

NV

Allowable Costs / Cost Principles Cash Management Significant Deficiency § 200.303

Finding Number: 2022-005 ? Approval Of Expense Reimbursement Submittals Corrective Action Plan: All expense reimbursements should have approval in writing. The findings were at a time when Academica NV was shorthanded, and since all open positions have been filled. Grant managers send a request ...

Finding Number: 2022-005 ? Approval Of Expense Reimbursement Submittals Corrective Action Plan: All expense reimbursements should have approval in writing. The findings were at a time when Academica NV was shorthanded, and since all open positions have been filled. Grant managers send a request for approval of a reimbursement request to schools, once ready. Approvals are now received in writing, via email, prior to any reimbursements being submitted. Personnel Responsible for Corrective Action: Nachum Golodner, Academica Director of Accounting Anticipated Completion Date: June 30, 2023

View Audit 53741

Finding 50289 (2022-002)

Significant Deficiency 2022

The Pavilion Housing Development Fund Corporation

NY

Allowable Costs / Cost Principles HUD Housing Programs

b. Finding 2022-002. Submission to the REAC. i. Comments on the Finding and Each Recommendation: Management concurs with the finding and the auditor?s recommendation to submit the audited financial statement to the REAC within 90 days of the fiscal year end. ii. Actions Taken on the Finding: Managem...

b. Finding 2022-002. Submission to the REAC. i. Comments on the Finding and Each Recommendation: Management concurs with the finding and the auditor?s recommendation to submit the audited financial statement to the REAC within 90 days of the fiscal year end. ii. Actions Taken on the Finding: Management has implemented control procedures to ensure compliance with all requirements under HUD.

View Audit 48232

Finding 50285 (2022-001)

None 2022

Aids Healthcare Foundation

CA

Questioned Costs Subrecipient Monitoring Allowable Costs / Cost Principles

Views of Responsible Officials and Planned Corrective Actions The timesheets did not reflect the correct hours charged to the program. After discussions with program management, it was discovered that correct communication to staff had not been completed regarding proper program and grant payroll co...

Views of Responsible Officials and Planned Corrective Actions The timesheets did not reflect the correct hours charged to the program. After discussions with program management, it was discovered that correct communication to staff had not been completed regarding proper program and grant payroll coding for work done on the program. This has been corrected. The Foundation?s contract administrative staff is working more closely with program staff to ensure for each payroll that the time worked on programs is properly reflected on timesheets that are approved by employees and managers. Necessary changes are communicated between program and contract administrative staff to ensure that timesheets reflect work hours properly. Personnel responsible for implementation: Steven Hartman Position of responsible personnel: Associate Director, Contract Accounting Date of Implementation: August 31, 2023

View Audit 54021 Questioned Costs: $1

Finding 50250 (2022-002)

Significant Deficiency 2022

Town of Hingham, Massachusetts

MA

Allowable Costs / Cost Principles § 200.430

U.S. DEPARTMENT OF HOMELAND SECURITY 2022-002 COVID-19 - Disaster Grants ? Public Assistance (Presidentially Declared Disasters)- ALN No. 97.036 Recommendation: We recommend the Town enhance procedures and controls to ensure that payroll costs charged to the grant are adequately documented. Ex...

U.S. DEPARTMENT OF HOMELAND SECURITY 2022-002 COVID-19 - Disaster Grants ? Public Assistance (Presidentially Declared Disasters)- ALN No. 97.036 Recommendation: We recommend the Town enhance procedures and controls to ensure that payroll costs charged to the grant are adequately documented. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: We agree with the auditor?s findings. Management will enhance procedures and controls to ensure that payroll costs charged to the grant are adequately documented. Name(s) of the contact person(s) responsible for corrective action: Sue Nickerson, Town Accountant. Planned completion date for corrective action plan: Immediately.

View Audit 51046

Finding 50247 (2022-002)

Significant Deficiency 2022

Kankakee County, Illinois

IL

Questioned Costs Subrecipient Monitoring Equipment & Real Property Management

KCHD will implement internal controls to review outstanding items and ongoing projects monthly, particularly those charged to grants, for proper reporting to ensure compliance with the terms of the award. Specifically, the Business Manager and Administrator will identify any hidden issues that could...

KCHD will implement internal controls to review outstanding items and ongoing projects monthly, particularly those charged to grants, for proper reporting to ensure compliance with the terms of the award. Specifically, the Business Manager and Administrator will identify any hidden issues that could violate Uniform Guidance reporting requirements. The Health Department expects to have this procedure in effect no later than July 1, 2023. Additionally, the KCHD plans to obtain adequate resources to assist the financial and grant reporting function to ensure compliance.

View Audit 50336 Questioned Costs: $1

Finding 50203 (2022-006)

None 2022

Davenport Community School District

IA

Eligibility Allowable Costs / Cost Principles § 200.404

Response and Corrective Action Plan: The District will review current policies and procedures for bonus payouts. Cindy Lewis, June 30, 2023.

View Audit 44435

Finding 50125 (2022-001)

Significant Deficiency 2022

Regional Food Bank of Northeastern New York, Inc.

NY

Subrecipient Monitoring Allowable Costs / Cost Principles HUD Housing Programs

Finding Reference Number: 2022-001 Federal Agency: Department of Agriculture (USDA) Description of Finding: Criteria: 7 CFR Section 250. I 9(a) identifies requirements related to record keeping for this major program. It is important to note the Food Bank appeared to maintain the appropriate support...

Finding Reference Number: 2022-001 Federal Agency: Department of Agriculture (USDA) Description of Finding: Criteria: 7 CFR Section 250. I 9(a) identifies requirements related to record keeping for this major program. It is important to note the Food Bank appeared to maintain the appropriate supporting documents and required components, this finding relates to one component regarding lack of a signoff not lack of documentation . Condition: During audit testing performed by Mengel , Metzger, Barr & Co, LLP, they noted the following:The invoices created as a result of USDA orders being made were not consistently signed off on by the recipient agency representative upon pick up or delivery of the commodities. Statement of Concurrence or Nonconcur rence: The Food Bank agrees with this finding. Corrective Action: The Food Bank has always made an effort to ensure that agencies sign their invoice when their order is picked up. We will reinforce with our staff that this is an absolute requirement and ensure that all orders picked up by agencies, particularly those with USDA prod ucts on their orders, will sign for the order at the time of pick up. Name of Contact Person: Nicholas Pisani, Chief Operating Officer; phone number 518-786-3691 ext 241; email NickP@Regionalfoodbank.net. Projected Completion Date: June 29, 2023.

View Audit 43641

Finding 50105 (2022-005)

Material Weakness 2022

North Judson -- San Pierre School Corporation

IN

Questioned Costs Allowable Costs / Cost Principles § 200.303 § 200.403

FINDING 2022-005 Subject: COVID-19 ? Education Stabilization Fund ? Activities Allowed or Unallowed, Allowable Costs/Cost Principles Federal Agency: Department of Education Federal Program: COVID-19 ? Education Stabilization Fund Assistance Listing Number: 84.425D, 84.425U Federal Award Numbers and...

FINDING 2022-005 Subject: COVID-19 ? Education Stabilization Fund ? Activities Allowed or Unallowed, Allowable Costs/Cost Principles Federal Agency: Department of Education Federal Program: COVID-19 ? Education Stabilization Fund Assistance Listing Number: 84.425D, 84.425U Federal Award Numbers and Years (or Other Identifying Numbers): S425D200013, S425U200013 Pass-Through Entity: Indiana Department of Education Compliance Requirement: Activities Allowed or Unallowed, Allowable Costs/Cost Principles Audit Findings: Material Weakness, Material Noncompliance Condition: An effective internal control system was not in place at the School Corporation to ensure compliance with the requirements related to the grant agreement and the Activities Allowed or Unallowed and Allowable Costs/Cost Principles compliance requirements. Context: (a) During allowable cost testing for vendor disbursements, we noted a portion of ARP ESSER funds were utilized to repair the chiller at the middle and high schools. The School Corporation incurred a total of approximately $284,000 in chiller repair costs between September 2021 and May 2022 and requested reimbursement for those expenditures from ARP ESSER funds in full. In October 2021, the School Corporation received an insurance claim check in the amount of $106,755 to cover a portion of the repair costs. The School Corporation did not deduct the amount received through insurance from the amount requested for reimbursement from federal funds, resulting in an overpayment of federal funds during the audit period. (b) Additionally, the School Corporation had not properly designed or implemented internal controls over recording transactions for payroll and fringe benefit disbursements to ensure the accuracy and classification of the payroll disbursements. Payroll disbursements make up approximately 45% of the program costs charged to the Education Stabilization Fund. One employee was responsible for processing payroll. Payroll reports were submitted to the School Board and Treasurer for review and approval; however, the reports only provided a total gross amount paid from each fund. The reports did not list the employees who were paid from the fund. In March 2021, the Treasurer implemented a review of the payroll distribution report, which is broken out by fund and individual employee. The lack of controls related to payroll disbursements was isolated to the 2020-2021 year. Views of Responsible Officials and Planned Corrective Actions: We concur with the finding. Description of Corrective Action Plan: The NJ-SP School Corporation will implement internal controls to ensure a system is established for when insurance claim checks are received that they are properly receipted and funds are accounted for and deducted from necessary reimbursement grants. This will give better proper oversight, reviews, and approvals over the insurance claim checks received. These controls will be implemented by July 1, 2023. The NJ-SP School Corporation will also implement internal controls to oversee that financial transactions related to receipts and payroll and fringe benefits disbursements are reviewed and verified by proper management to ensure that accuracy and documentation is in place. These controls were implemented on March, 2021. Responsible Party and Timeline for Completion: Dalton C. Tunis ? Corporation Business Manager/Treasurer Anticipated Completion Date for (b): March 2021 Anticipated Completion Date for (a): July 1, 2023

View Audit 43779 Questioned Costs: $1

Finding 50101 (2022-008)

Material Weakness 2022

North Judson -- San Pierre School Corporation

IN

Allowable Costs / Cost Principles § 200.303 § 200.403

FINDING 2022-008 Subject: Special Education Cluster (IDEA) ? Activities Allowed or Unallowed, Allowable Costs/Cost Principles Federal Agency: Department of Education Federal Program: Special Education Grants to States, Special Education Preschool Grants Assistance Listing Number: 84.027, 84.173 Fed...

FINDING 2022-008 Subject: Special Education Cluster (IDEA) ? Activities Allowed or Unallowed, Allowable Costs/Cost Principles Federal Agency: Department of Education Federal Program: Special Education Grants to States, Special Education Preschool Grants Assistance Listing Number: 84.027, 84.173 Federal Award Numbers and Years (or Other Identifying Numbers): 20611-109-PN01, 21611-109-PN01, 21619-109-PN01 Pass-Through Entity: Indiana Department of Education Compliance Requirement: Activities Allowed or Unallowed, Allowable Costs/Cost Principles Audit Findings: Material Weakness Condition: An effective internal control system was not in place at the School Corporation to ensure compliance with the requirements related to the grant agreement and the Activities Allowed or Unallowed and Allowable Costs/Cost Principles compliance requirements. Context: The School Corporation had not properly designed or implemented internal controls over recording transactions for payroll and fringe benefit disbursements to ensure the accuracy and classification of the payroll disbursements. Payroll disbursements make up 100% of the program costs charged to the Special Education grants. One employee was responsible for processing payroll. Payroll reports were submitted to the School Board and Treasurer for review and approval; however, the reports only provided a total gross amount paid from each fund. The reports did not list the employees who were paid from the fund. In March 2021, the Treasurer implemented a review of the payroll distribution report by fund and individual employee. The lack of controls related to payroll disbursements was isolated to the 2020-2021 year. Views of Responsible Officials and Planned Corrective Actions: We concur with the finding. Description of Corrective Action Plan: The NJ-SP School Corporation will implement internal controls to oversee that financial transactions related to receipts and payroll and fringe benefits disbursements are reviewed and verified by proper management to ensure that accuracy and documentation is in place. These controls were implemented on March, 2021. Responsible Party and Timeline for Completion: Dalton C. Tunis ? Corporation Business Manager/Treasurer Anticipated Completion Date: March 2021

View Audit 43779

Finding 50097 (2022-004)

Material Weakness 2022

North Judson -- San Pierre School Corporation

IN

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

FINDING 2022-004 Subject: Child Nutrition Cluster ? Activities Allowed or Unallowed, Allowable Costs/Cost Principles Federal Agency: Department of Agriculture Federal Program: School Breakfast Program, National School Lunch Program, After School Snack Program, Summer Food Service Program for Childr...

FINDING 2022-004 Subject: Child Nutrition Cluster ? Activities Allowed or Unallowed, Allowable Costs/Cost Principles Federal Agency: Department of Agriculture Federal Program: School Breakfast Program, National School Lunch Program, After School Snack Program, Summer Food Service Program for Children Assistance Listing Number: 10.553, 10.555, 10.559 Federal Award Numbers and Years (or Other Identifying Numbers): FY2021, FY2022 Pass-Through Entity: Indiana Department of Education Compliance Requirement: Activities Allowed or Unallowed, Allowable Costs/Cost Principles Audit Findings: Material Weakness Condition: An effective internal control system was not in place at the School Corporation to ensure compliance with the requirements related to the grant agreement and the Activities Allowed or Unallowed and Allowable Costs/Cost Principles compliance requirements. Context: The School Corporation had not designed or implemented adequate internal controls to ensure that payroll disbursements were only for food service-related services. Payroll disbursements comprise approximately 45% of the program costs charged to the Child Nutrition Cluster. One employee was responsible for processing payroll. Payroll reports were submitted to the School Board and Treasurer for review and approval; however, the reports only provided a total gross amount paid from each fund. The reports did not list the employees who were paid from the fund. In March 2021, the Treasurer implemented a review of the payroll distribution report, which is broken out by fund and individual employee. The lack of controls related to payroll disbursements was isolated to the 2020-21 year. Additionally, payroll disbursements for custodial employees were allocated to the Child Nutrition Cluster based on a percentage of the custodial employees? salaries. However, there were no time and effort logs or other documentation maintained to support the percentage of the custodial salaries allocated to the Child Nutrition Cluster. The custodial salaries make up approximately 3% of the total payroll disbursements charged to the Child Nutrition Cluster. This was an issue throughout the audit period. Views of Responsible Officials and Planned Corrective Actions: We concur with the finding. Description of Corrective Action Plan: The NJ-SP School Corporation will implement internal controls to ensure compliance with the activities allowed or unallowed and allowable costs/cost principles compliance requirements. This will consist of maintaining documentation to support that payroll disbursements are only for food service operating costs by having supporting timesheets and timecards or time and effort reports for all employees paid from the School lunch fund. These controls will be implemented by July 1, 2023. Responsible Party and Timeline for Completion: Dalton C. Tunis ? Corporation Business Manager/Treasurer Anticipated Completion Date: July 1, 2023

View Audit 43779

Corrective Action Plans

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