Corrective Action Plans

Finding 47696 (2022-005)

Material Weakness 2022

OR

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

DEPARTMENT OF TRANSPORTATION Airport Improvement Program ? CARES Act Compliance and Material Weakness ? Special Tests 2022-005 Management?s response: Economic Development & Airport Director has clearly instructed new Airport Manager on City?s purchasing procedures and stressed the importance of abi...

DEPARTMENT OF TRANSPORTATION Airport Improvement Program ? CARES Act Compliance and Material Weakness ? Special Tests 2022-005 Management?s response: Economic Development & Airport Director has clearly instructed new Airport Manager on City?s purchasing procedures and stressed the importance of abiding by them.

View Audit 49041

Finding 47664 (2022-002)

Significant Deficiency 2022

Morongo Basin Transit Authority

CA

Questioned Costs Allowable Costs / Cost Principles § 200.430

Finding 2022-002 Program: Formula Grants for Rural Areas, COVID-19 Formula Grants for Rural Areas Finding Summary: 2 CFR section 200.430, Compensation ? personal services, states that charges to Federal awards for salaries and wages must be based on records that accurately reflect the work performe...

Finding 2022-002 Program: Formula Grants for Rural Areas, COVID-19 Formula Grants for Rural Areas Finding Summary: 2 CFR section 200.430, Compensation ? personal services, states that charges to Federal awards for salaries and wages must be based on records that accurately reflect the work performed. The records must be support by a system of internal control which provides reasonable assurance that the charges are accurate, allowable, and properly allocated. Responsible Individuals: Cheri Holsclaw, General Manager Corrective Action Plan: Basin Transit will review the Federal grants management procedures to ensure that costs incurred due to error or other types of unallowable costs are not included in subsequent reimbursement requests. Anticipated Completion Date: January 27, 2023 Cheri Holsclaw, General Manager

View Audit 52444 Questioned Costs: $1

Finding 47661 (2022-004)

Significant Deficiency 2022

Carmen High School of Science and Technology, Inc.

WI

Questioned Costs Allowable Costs / Cost Principles

Reference Number: 2022-004 Description: 84.010 A Title I - Activities allowed and Allowable Costs Corrective Action Plan: The Organization will obtain required staff credentials ? HR dept to obtain r equired staff credentials upon hiring and on boarding staff ? Finance dept to confirm with HR dept t...

Reference Number: 2022-004 Description: 84.010 A Title I - Activities allowed and Allowable Costs Corrective Action Plan: The Organization will obtain required staff credentials ? HR dept to obtain r equired staff credentials upon hiring and on boarding staff ? Finance dept to confirm with HR dept that staff assigned to grants have met eligible criteria, including proper licensure and or related qualifications Anticipated Corrective Action Plan Completion Date: Currently implementing process, effective January 2023 Contact Information: For additional information regarding this finding please contact Michael Bradley, Chief Financial and Operating Officer, at bradleym@carmenhighschool.org

View Audit 52014 Questioned Costs: $1

Finding 47635 (2022-005)

Significant Deficiency 2022

South Adams Schools

IN

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

CORRECTIVE ACTION PLAN FINDING 2022-005 Contact Person Responsible for Corrective Action: Special Education Cluster/Heidi Sprunger Contact Phone Number: 260-589-3133 Views of Responsible Official: We concur with the finding. The district is working with Special Education Cluster to obtain the correc...

CORRECTIVE ACTION PLAN FINDING 2022-005 Contact Person Responsible for Corrective Action: Special Education Cluster/Heidi Sprunger Contact Phone Number: 260-589-3133 Views of Responsible Official: We concur with the finding. The district is working with Special Education Cluster to obtain the corrective action plan that was submitted previously. Description of Corrective Action Plan: We will monitor this with Adams-Wells Special Services Co-op to ensure that the corrective action plan that was submitted will be followed. Anticipated Completion Date: Immediately

View Audit 48846

Finding 47626 (2022-002)

Material Weakness 2022

South Adams Schools

IN

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

CORRECTIVE ACTION PLAN FINDING 2022-002 Contact Person Responsible for Corrective Action: Heidi Sprunger Contact Phone Number: 260-589-3133 Views of Responsible Official: We concur with the finding the documentation supporting employees? time charged to the Child Nutrition Cluster program for custod...

CORRECTIVE ACTION PLAN FINDING 2022-002 Contact Person Responsible for Corrective Action: Heidi Sprunger Contact Phone Number: 260-589-3133 Views of Responsible Official: We concur with the finding the documentation supporting employees? time charged to the Child Nutrition Cluster program for custodians and grant specialist was not properly maintained. However, we disagree that they would be considered an indirect cost according to the definition of indirect cost: (Indirect costs are sometimes referred to as ?overhead costs? and more recently as ?facilities and administrative costs.?) Examples include executive oversight, accounting, grants management, legal expenses, utilities, technology support, and facility maintenance. Description of Corrective Action Plan: The district will evaluate and determine which employees will continue to be charged under the Child Nutrition Cluster Program. Only those employees spending direct physical time in the cafeteria doing work will continue to be under the Child Nutrition Cluster Program. Once identified those employees will be required to fill out a separate time sheet for hours worked under the Child Nutrition Cluster program. Those time sheets will then be approved by the Food Service Director. Once approved they will be submitted to Payroll Coordinator. Anticipated Completion Date: March 20, 2023

View Audit 48846 Questioned Costs: $1

Finding 47603 (2022-003)

Significant Deficiency 2022

Morningstar Children and Family Services, Inc.

GA

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

Finding 2022-003 Condition: Supporting documentation was missing for 3 of 40 disbursements selected for allowable cost testing. Cause: Internal controls did not provide for supporting documentation to be adequately retained. Recommendation: Internal control procedures on recordkeeping and filing...

Finding 2022-003 Condition: Supporting documentation was missing for 3 of 40 disbursements selected for allowable cost testing. Cause: Internal controls did not provide for supporting documentation to be adequately retained. Recommendation: Internal control procedures on recordkeeping and filing should be clearly stated as part of the Organizational policy. Management Response: We concur with the finding. The receipts, with a total value less than $200 could not be located during the audit. Corrective Actions: 1. Actions have been taken to diminish the use of the company credit card for purchases. 2. Beginning March 2023, an enterprise level application was deployed to track and automate the collection of expenses and receipts for approved users. 3. The accounting department has set up additional direct bill accounts for improved ordering processes and less frequent use of credit cards and subsequent receipt retention requirements. Name of Responsible Person: Beth VanDerbeck

View Audit 41687

Finding 47598 (2022-001)

Significant Deficiency 2022

City of Haverhill

MA

Allowable Costs / Cost Principles Subrecipient Monitoring Reporting

CORRECTIVE ACTION PLAN Oversight Agency for Audit: U.S. Department of Education The City of Haverhill, Massachusetts respectfully submits the following corrective action plan for the year ended June 30, 2022. Name and address of independent public accounting firm: Powers & Sullivan, LLC 10...

CORRECTIVE ACTION PLAN Oversight Agency for Audit: U.S. Department of Education The City of Haverhill, Massachusetts respectfully submits the following corrective action plan for the year ended June 30, 2022. Name and address of independent public accounting firm: Powers & Sullivan, LLC 100 Quannapowitt Parkway, Suite 101 Wakefield, MA 01880 Audit period: July 1, 2021 through June 30, 2022 The finding from the June 30, 2022, schedule of findings and questioned costs is discussed below. The finding is numbered consistently with the number assigned in the schedule. FINDINGS?FEDERAL AWARD PROGRAMS AUDITS U.S. DEPARTMENT OF EDUCATION Passed through the Massachusetts Department of Elementary and Secondary Education Title I Grants to Local Educational Agencies Title I Grants to Local Educational Agencies Federal Assistance Listing No. 84.010 Special Education Cluster Special Education Grants to States and Special Education Preschool Grants Federal Assistance Listing Numbers, 84.027 and 84.173. 2022-001: Controls for Monitoring Payroll Charged to the Grant Compliance Requirement: Allowable Costs/Cost Principles Type of Finding: Compliance and Significant Deficiency in Internal Control over Compliance Criteria or Specific Requirement: Grantees must provide reasonable assurance that Federal awards are expended only for allowable activities and that the costs of goods and services charged to Federal awards are allowable and in accordance with the applicable cost principles. Condition: Management has not established written guidelines and procedures outlining the time and effort reporting and documentation requirements that department heads must adhere with to ensure compliance with federal and state time and effort reporting requirements. Such guidelines and procedures should indicate under what circumstances semi-annual certifications and personnel activity reports (PARS) are required and should indicate due dates for when this information must be provided to the school business office. Management also has not adopted and implemented standardized forms for semi-annual certifications and PARS that include all data required by federal and state guidelines. Questioned Costs: None reported. Context: Payroll expenditures charged to the programs are required to be supported with documentation substantiating that the employees are eligible to be charged to the grant and that the payroll charged relates to time spent accomplishing grant objectives. This supporting documentation should be standardized and should include all required elements in accordance with Title 2 U.S. Code of Federal Regulations Part 225 Cost Principals for State, Local, and Indian Tribal Governments. The City did not have an adequate system of internal controls in place to provide sufficient documentation to demonstrate compliance with federal and state time and effort reporting requirements in accordance with the provisions of Title 2 U.S. Code of Federal Regulations Part 225 Cost Principals for State, Local, and Indian Tribal Governments. Effect: The City has not complied with the federal and state time and effort reporting requirements. Cause: Lack of documented policies, procedures and guidelines in place to ensure compliance with time and effort reporting requirements. Repeat Finding: This matter was reported as a finding for the special education cluster grants in the previous year as finding 2021-004. Recommendation: Management should establish written guidelines and procedures outlining the time and effort reporting and documentation requirements that department heads must adhere with to ensure compliance with federal and state time and effort reporting requirements. Such guidelines and procedures should indicate under what circumstances semi-annual certifications and personnel activity reports (PARS) are required and should indicate due dates for when this information must be provided to the school business office. Management should also adopt and implement standardized forms for semi-annual certifications and PARS that include all data required by federal and state guidelines. Once the written guidelines and procedures have been established, training should be provided to ensure that the program managers fully understand the time and effort reporting requirements. Views of Responsible Officials and Planned Corrective Actions: Management agrees with the finding and will establish written guidelines and procedures outlining the time and effort reporting and documentation requirements that department heads must adhere with to ensure compliance with federal and state time and effort reporting requirements. Such guidelines and procedures will indicate under what circumstances semi-annual certifications and personnel activity reports (PARS) are required and will indicate due dates for when this information must be provided to the school business office. Management will also adopt and implement standardized forms for semi-annual certifications and PARS that include all data required by federal and state guidelines. Once the written guidelines and procedures have been established, training will be provided to ensure that the program managers fully understand the time and effort reporting requirements. Management intends to implement these procedures in fiscal 2023. If the Oversight Agency has questions regarding this plan, please call Michael Pfifferling, Assistant Superintendent of Finance and Operations at 978-374-3400. Sincerely yours, Michael Pfifferling Assistant Superintendent of Finance and Operations City of Haverhill

View Audit 52314

Finding 47575 (2022-001)

None 2022

Housing Forward

IL

Allowable Costs / Cost Principles Reporting § 200.430

Re: 2022 Single Audit Finding Hi Ron, Below is our response to the 2022 Single Audit finding listed in Part 3: Findings and questioned costs ? Major Federal Award Programs Audit; Finding # 2022-001; Criteria: According to 2 CFR 200.430 i(i)(vii) charges to federal awards for salaries and wages...

Re: 2022 Single Audit Finding Hi Ron, Below is our response to the 2022 Single Audit finding listed in Part 3: Findings and questioned costs ? Major Federal Award Programs Audit; Finding # 2022-001; Criteria: According to 2 CFR 200.430 i(i)(vii) charges to federal awards for salaries and wages must be based on records that accurately reflect the work performed and there should be support to the distributions of the employee?s salary or wages among specific activities or cost objectives if the employee works on more than one Federal award. Condition: In gaining our understanding of controls over payroll, we noted the following control: the majority of the employees at Housing Forward and Subsidiary work for only one grant with the exception of management that may work for two. We viewed 40 timesheets related to the CoC program of which twelve showed the employee working for multiple grants but did not include the number of hours worked for each program on the timesheet, it was tracked through management and staff. Cause: The timesheets that were missing a breakdown of time and effort applied to each grant did not have a detailed tracking of hours by grants to remind employees to allocate their time by grant. The allocation was made based on a percentage rather than the actual time worked. Effect: The hours charged to a program could be under or overstated based budget compared to actual hours that should be documented on the timesheets. Response ? Management Employees have transitioned to submitting time and effort bi-weekly within the ADP payroll system to ensure timeliness of allocation of wages. Hours will be reported based on actual time worked in projects, even when employees are working in a single project. These hours are used to allocate salaries and wages and unpaid time off bi-weekly. Fringe benefits will be allocated on a monthly basis using the allocation of hours for that month. Allocation of hours and coding is reviewed by the Finance department for accuracy and allowance before submittal of payroll. If changes are needed after processing, Finance staff will work with staff to correct time and effort reporting through a manual time and effort report. If you have any questions, please feel free to contact me at mfaust@housingforward.org or 708.338.1724 ext. 263

View Audit 51669

Finding 47493 (2022-018)

Material Weakness 2022

North Lawrence Community Schools

IN

Allowable Costs / Cost Principles Subrecipient Monitoring Cash Management § 200.303

FINDING 2022-018 Contact Person Responsible for Corrective Action: Tricia Malone Hudson, District Curriculum Specialist Contact Phone Number: 812-279-3521 Views of Responsible Official: We concur with the audit finding. Description of Corrective Action Plan: The school corporation will develop a ser...

FINDING 2022-018 Contact Person Responsible for Corrective Action: Tricia Malone Hudson, District Curriculum Specialist Contact Phone Number: 812-279-3521 Views of Responsible Official: We concur with the audit finding. Description of Corrective Action Plan: The school corporation will develop a series of checkpoints for federal grants. This includes multiple staff reviews and approvals prior to purchases. In addition, the reimbursement process includes multiple reviews and approvals prior to submission. Anticipated Completion Date: North Lawrence Community Schools implemented this procedure beginning in January 2023. INDIANA STATE

View Audit 41189

Finding 47482 (2022-011)

Material Weakness 2022

North Lawrence Community Schools

IN

Matching / Level of Effort / Earmarking Allowable Costs / Cost Principles § 200.208 § 200.303 § 200.400 § 200.403

FINDING 2022-011 Contact Person Responsible for Corrective Action: Tricia Malone Hudson, District Curriculum Specialist Contact Phone Number: 812-279-3521 Views of Responsible Official: We concur with the audit finding. Description of Corrective Action Plan: The district has established a process fo...

FINDING 2022-011 Contact Person Responsible for Corrective Action: Tricia Malone Hudson, District Curriculum Specialist Contact Phone Number: 812-279-3521 Views of Responsible Official: We concur with the audit finding. Description of Corrective Action Plan: The district has established a process for tracking expenses for homeless and parental involvement funds. In addition, a process has been established to ensure all expenses are coded properly. Anticipated Completion Date: North Lawrence Community Schools implemented this procedure beginning in March 2023.

View Audit 41189

Finding 47481 (2022-010)

Material Weakness 2022

North Lawrence Community Schools

IN

Questioned Costs Allowable Costs / Cost Principles § 200.303 § 200.309 § 200.334 § 200.403 § 200.430

FINDING 2022-010 Contact Person Responsible for Corrective Action: Tricia Malone Hudson, District Curriculum Specialist Contact Phone Number: 812-279-3521 Views of Responsible Official: We concur with the audit finding. Description of Corrective Action Plan: The school district will develop a plan f...

FINDING 2022-010 Contact Person Responsible for Corrective Action: Tricia Malone Hudson, District Curriculum Specialist Contact Phone Number: 812-279-3521 Views of Responsible Official: We concur with the audit finding. Description of Corrective Action Plan: The school district will develop a plan for tracking employee pay and timecard alignment. The district will ensure that these documents are available to auditors. All expenditures will have a cover sheet with identifying information, will be attached to the proper invoice(s), signed by 2 parties, and hard copies will be kept on file for audit purposes in folders attached to each grant. Anticipated Completion Date: North Lawrence Community Schools will implement this procedure by June 2023.

View Audit 41189 Questioned Costs: $1

Finding 47476 (2022-006)

Material Weakness 2022

North Lawrence Community Schools

IN

Questioned Costs Allowable Costs / Cost Principles Subrecipient Monitoring § 200.303 § 200.333 § 200.403

FINDING 2022-006 Contact Person Responsible for Corrective Action: Melissa Hinds, Director of Special Education Contact Phone Number: 812-279-3521 Views of Responsible Official: We concur with the audit finding. Description of Corrective Action Plan: As it relates to retaining proper documentation f...

FINDING 2022-006 Contact Person Responsible for Corrective Action: Melissa Hinds, Director of Special Education Contact Phone Number: 812-279-3521 Views of Responsible Official: We concur with the audit finding. Description of Corrective Action Plan: As it relates to retaining proper documentation for an audit for Activities allowed or un-allowed, and allowable cost/costs, a policy and procedure will be implemented regarding the documentation and retention of records. Review and approval of activities reimbursed by the Special Education Grants to States and Special Education Preschool Grants will have the appropriate backup documentation (e.g. invoices, purchase orders, contracts, receipts) to ensure alignment to the IDOE grant, as well as documentation that funds were encumbered within the financial system by the respective period of performance end date. As of July 2022, these activities began being reviewed and approved by two separate individuals. Anticipated Completion Date: July 2022

View Audit 41189 Questioned Costs: $1

Finding 47475 (2022-008)

Material Weakness 2022

North Lawrence Community Schools

IN

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

FINDING 2022-008 Contact Person Responsible for Corrective Action: Melissa Hinds, Director of Special Education Contact Phone Number: 812-279-3521 Views of Responsible Official: We concur with the audit finding. Description of Corrective Action Plan: A print out of the current expenses and balances ...

FINDING 2022-008 Contact Person Responsible for Corrective Action: Melissa Hinds, Director of Special Education Contact Phone Number: 812-279-3521 Views of Responsible Official: We concur with the audit finding. Description of Corrective Action Plan: A print out of the current expenses and balances will be reviewed by the Special Education Director and District?s Treasurer before the cash request is emailed to the state to ensure there is proper compliance with grant agreement and the matching, level of effort, earmarking and reporting compliance Anticipated Completion Date: February 2023

View Audit 41189

Finding 47451 (2022-003)

Material Weakness 2022

North Lawrence Community Schools

IN

Questioned Costs Allowable Costs / Cost Principles School Nutrition Programs § 200.303 § 200.334 § 200.403

FINDING 2022-003 Contact Person Responsible for Corrective Action: Robyn Muder, Director of Business Contact Phone Number: 812-279-3521 Views of Responsible Official: We concur with the audit finding. Description of Corrective Action Plan: Internal controls were updated in 2022. All supporting docum...

FINDING 2022-003 Contact Person Responsible for Corrective Action: Robyn Muder, Director of Business Contact Phone Number: 812-279-3521 Views of Responsible Official: We concur with the audit finding. Description of Corrective Action Plan: Internal controls were updated in 2022. All supporting documentation is attached to vouchers for more efficient and effective business practices. The financial software was updated in January of 2023 to keep fringe benefit information retained. North Lawrence Community Schools has implemented a new procedure to pay mileage as a vendor payment instead of reimbursement through payroll to keep it separate from employees? gross earnings. North Lawrence Community Schools has implemented new practice to send all salary employees contracts which must be signed and kept in their personnel files. North Lawrence Community Schools has implemented new practices to prevent employees from being off of the board approved hourly pay schedule. North Lawrence Community Schools no longer utilizes paper timesheets. We now use an electronic time clock system. North Lawrence Community Schools is updating direct deposit information for all employees. Anticipated Completion Date: North Lawrence Community Schools implemented this procedure in 2023.

View Audit 41189 Questioned Costs: $1

Finding 47449 (2022-002)

Significant Deficiency 2022

Planned Parenthood South Texas

TX

Questioned Costs Allowable Costs / Cost Principles § 200.303

2022.002: Activities Allowed or Unallowed, Allowable Costs/Cost Principles United States Department of Health and Human Services Family Planning Services Assistance Listing No.93.217 Federal Award Number: FPHPA006525 Federal Award Year: 2022 Type of Finding: Significant Deficiency Finding: As of ...

2022.002: Activities Allowed or Unallowed, Allowable Costs/Cost Principles United States Department of Health and Human Services Family Planning Services Assistance Listing No.93.217 Federal Award Number: FPHPA006525 Federal Award Year: 2022 Type of Finding: Significant Deficiency Finding: As of December 31, 2022, the Organization provided health care services to 2,964 patients, however the reimbursement request was for 3,648 patients. The difference between the expected patients versus actual created an overpayment of federal funds totaling $83,701 at December 31, 2022. Management subsequently returned the funds to the granting agency. Corrective Actions Taken or Planned: Management will track patients per month to evaluate whether actual patient volume is meeting the expected patient volume. The Organization, at year-end, will assess whether the actual patient volume for the year met the expected patient volume and has earned all the recorded revenue. If overpayment was made, the Organization will adjust the recorded revenue to reflect actual earned revenue. Individual(s) Responsible: Magda Mijares, Controller Adron Cooley, Revenue Cycle Manager Anticipated Date of Completion: Organization started evaluating as soon as the issue was known on 5/16/2023 and will continue to do so for the rest of the grant period.

View Audit 53673 Questioned Costs: $1

Finding 47448 (2022-003)

Significant Deficiency 2022

Planned Parenthood South Texas

TX

Allowable Costs / Cost Principles § 200.303

Finding 2022.003? Activities Allowed or Unallowed, Allowable Costs/Cost Principles, Reporting United States Department of Health and Human Servic...

Finding 2022.003? Activities Allowed or Unallowed, Allowable Costs/Cost Principles, Reporting United States Department of Health and Human Services Family Planning Services Assistance Listing No.93.217 Federal Award Number: FPHPA006499 Federal Award Year: 2022 Type of Finding: Significant Deficiency Finding: During our testing, we noted the Organization requested reimbursements of $50,000 and determined the reasonableness of the amount being requested on a per patient basis rather than requesting funds based on actual expenditures incurred. Due to this, the expenditures were not reviewed for compliance with grant requirements. Corrective Actions Taken or Planned: The Organization has reviewed the expenditures and the actual expenditures met the grant requirements. The grant was complete on 3/31/2023. No other corrective actions need to be made. Individual(s) Responsible: Magda Mijares, Controller Anticipated Date of Completion: Completed by 7/31/2023

View Audit 53673

Finding 47425 (2022-002)

Material Weakness 2022

El Hogar Del Nino

IL

Allowable Costs / Cost Principles

CORRECTIVE ACTION PLAN February 27, 2023 Federal Audit Clearinghouse 1201 E. 10th Street Jeffersonville, IN 47132 El Hogar del Nino (FEIN 36-2749858) respectfully submits the following corrective action plan for the year ended June 30, 2022. Our independent public accounting firm is: De...

CORRECTIVE ACTION PLAN February 27, 2023 Federal Audit Clearinghouse 1201 E. 10th Street Jeffersonville, IN 47132 El Hogar del Nino (FEIN 36-2749858) respectfully submits the following corrective action plan for the year ended June 30, 2022. Our independent public accounting firm is: Desmond & Ahern, Ltd 10827 S. Western Avenue Chicago, IL 60643 Phone: 773-779-4720 Audit Period: July 1, 2021 through June 30, 2022 The findings from the June 30, 2022 schedule of findings and questioned costs are discussed below. The findings are numbered consistently with the numbers assigned in the schedule. 2022-002 Allowable Costs/Cost Principles Criteria: Reports reflecting the distribution of activity of each employee must be maintained for all staff members whose compensation is charged, in whole or in part, directly to awards, in accordance with Cost Principles for Non-Profit Organizations (2 CFR Part 230.8). Charges to Federal awards must also be supported by a system of internal control which provides reasonable assurance that the charges are accurate, allowable, and properly allocated. These records must also support the distribution of the employee's salary or wages among specific activities or cost objectives if the employee works on more than one Federal award; a Federal award and non-Federal award; an indirect cost activity and a direct cost activity; two or more indirect activities which are allocated using different allocation bases; or an unallowable activity and a direct or indirect cost activity. Condition: The Organization provided time records that account for the number of hours worked by the selected employees and the departments employees are charged. The Organization is using projected salaries including vacant positions in order to calculate their full-time equivalent rate to be used for administrative allocations and not using actual time. We noted that the expenses are not being properly tracked by federal grant within the general ledger properly to show expenses are not being allocated to multiple grants. Cause: The Organization asserts that time records are consistently maintained to support the allocation of staff time to different functions however, budget estimates are used to support for charges to Federal awards. Effect: Budget estimates (i.e., estimates determined before the services are performed) alone, do not qualify as support for charges to Federal awards. Questioned Costs: None. Recommendation: We again recommend that quarterly recaps of the time sheets be done and that the time analysis be compared to the actual percent being allocated. If necessary, the projected allocation percentages, including full time equivalents, should be changed to reflect the actual time spent as required under 2 CFR 230. Also, the previous quarter should also be adjusted if the revised percentages would cause the financials to be materially misstated. We further again recommend that all employees receive additional training on filling out time sheets and that supervisors receive written procedures on reviewing the time sheets before approving to ensure that they are properly completed. With regards to allocations to awards, we recommend that the Organization properly allocate expenses within the general ledger to reflect the actual expenditures submitted for reimbursement and to ensure no expenses are being reimbursed from multiple grants. Corrective Action Planned: El Hogar del Nino will strengthen its internal controls. An expense allocation method will be developed that will more closely reflect the benefit each funding source receives from the expense and is supportable either by an amendable allocation method such as, real time tracking of time, number of students served or square footage to name a few possible examples. Where estimates are used in budgeting, quarterly after the fact adjustment will be made when there is a material variance from budget. El Hogar del Nino plans to correct this issue by June 30, 2023. Paul DiCaro (CFO Consultant) is responsible for correcting this issue. Paul can be contacted at (224) 229-8250. Sincerely, Paul DiCaro CFO Consultant

View Audit 52687

Finding 47418 (2022-001)

Material Weakness 2022

Soap Lake School District No. 156

WA

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

Finding ref number:2022-01 Finding caption: The District did not have adequate controls for ensuring compliance with federal wage rate requirements. Name, address, and telephone of District contact person: Nicole Courtney, Business Manager P.O. Box 1389 Soap Lake, WA 98851 (509) 667-7119 Corrective...

Finding ref number:2022-01 Finding caption: The District did not have adequate controls for ensuring compliance with federal wage rate requirements. Name, address, and telephone of District contact person: Nicole Courtney, Business Manager P.O. Box 1389 Soap Lake, WA 98851 (509) 667-7119 Corrective action the auditee plans to take in response to the finding: For future federal prevailing wage projects, the district will have an attorney specializing in public works construction law to review and update contracts to include language regarding Davis Bacon wages and contractors' responsibilities to file weekly certified payroll per 29 CFR 3.3, 3.4 and 5.5. Recognizing that most contractors in Soap Lake School District's circle will not be familiar with 29 CFR, the district will take what was learned in this audit to ensure they are fully aware of their responsibilities and obligations to file the weekly certified payroll under federal funds. Anticipated date to complete the corrective action: March 2024

View Audit 53752

Finding 47415 (2022-001)

Material Weakness 2022

Northport School District No. 211

WA

Subrecipient Monitoring Internal Control / Segregation of Duties Special Tests & Provisions

Northport School District will follow the corrective action to ensure that adequate internal controls are followed. Northport School District will make sure that a formal contract is written up and the entire Federal Prevailing Wage clause is included in the contract. Northport School District w...

Northport School District will follow the corrective action to ensure that adequate internal controls are followed. Northport School District will make sure that a formal contract is written up and the entire Federal Prevailing Wage clause is included in the contract. Northport School District will rely on a Project Manager who is responsible for collecting weekly certified payroll reports from contractors and subcontractors for each week in which work was performed. Northport School District will monitor the Project Manager to ensure all weekly certified payrolls are being collected. Northport School District will make every effort to ensure that correct procedures are followed.

View Audit 53523

Finding 47411 (2022-003)

Material Weakness 2022

McNary Elementary School District No. 23

AZ

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

The District has hired a new business manager as well as engaged a third party accountant with considerable experience. The individuals will work together to process financial transactions and record resulting financial information going forward. Controls have been implemented to ensure that source ...

The District has hired a new business manager as well as engaged a third party accountant with considerable experience. The individuals will work together to process financial transactions and record resulting financial information going forward. Controls have been implemented to ensure that source documentation is retained to support all transactions.

View Audit 52089

Finding 47410 (2022-002)

Material Weakness 2022

McNary Elementary School District No. 23

AZ

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

The District has hired a new business manager as well as engaged a third party accountant with considerable experience. The individuals will work together to process financial transactions and record resulting financial information going forward. Controls have been implemented to ensure that source ...

The District has hired a new business manager as well as engaged a third party accountant with considerable experience. The individuals will work together to process financial transactions and record resulting financial information going forward. Controls have been implemented to ensure that source documentation is retained to support all transactions.

View Audit 52089

Finding 47382 (2022-004)

Material Weakness 2022

Southwest Behavioral Health Services, Inc. and Subsidiaries

AZ

Allowable Costs / Cost Principles Material Weakness Period of Performance § 200.430

Item: 2022-004 Assistance Listing Number: 14.241 Programs: Housing Opportunities for Persons with Aids Federal Agency: U.S. Department of Housing and Urban Development Pass-Through Agencies: City of Phoenix Pass-Through Grantor Identifying Number: 144347 Award Year: July 1, 2021 ? June 30, 2022...

Item: 2022-004 Assistance Listing Number: 14.241 Programs: Housing Opportunities for Persons with Aids Federal Agency: U.S. Department of Housing and Urban Development Pass-Through Agencies: City of Phoenix Pass-Through Grantor Identifying Number: 144347 Award Year: July 1, 2021 ? June 30, 2022 and July 1, 2022 ? June 30, 2023 Compliance Requirement: Allowable Activities and Costs Criteria: Under cost principles established by 2 CFR 200.430, compensation for personal services includes all remuneration, paid currently or accrued, for services of employees rendered during the period of performance under the Federal award, including but not necessarily limited to wages and salaries. Condition: In our sampling of payroll expenditures charged to the program, we noted one employee's wage rate charged to the grant was not updated consistent with the employee's wage rate increase paid in their payroll. As a result, the incorrect amount of payroll costs was charged to the program (undercharged). Name of Contact Person: Mike Fett, CFO Phone Number: (602) 265-8338 Anticipated Completion Date: September 30, 2023 Views of Responsible Officials and Corrective Actions: Southwest Behavioral Health Services, Inc. and Subsidiaries will implement controls to ensure payroll costs charged to the grant properly reflected payroll changes and that amounts charged to the grant were properly supported by current wage rates.

View Audit 42283

Finding 47381 (2022-003)

Material Weakness 2022

Southwest Behavioral Health Services, Inc. and Subsidiaries

AZ

Questioned Costs Allowable Costs / Cost Principles Material Weakness § 200.405

Item: 2022-003 Assistance Listing Number: 14.241 Programs: Housing Opportunities for Persons with Aids Federal Agency: U.S. Department of Housing and Urban Development Pass-Through Agencies: City of Phoenix Pass-Through Grantor Identifying Number: 144347 Award Year: July 1, 2021 ? June 30, 2022 ...

Item: 2022-003 Assistance Listing Number: 14.241 Programs: Housing Opportunities for Persons with Aids Federal Agency: U.S. Department of Housing and Urban Development Pass-Through Agencies: City of Phoenix Pass-Through Grantor Identifying Number: 144347 Award Year: July 1, 2021 ? June 30, 2022 and July 1, 2022 ? June 30, 2023 Compliance Requirement: Allowable Activities and Costs Criteria: In accordance with 2 CFR ? 200.405 - Allocable costs ? a cost is allocable to a particular Federal award or other cost objective if the goods or services involved are chargeable or assignable to that Federal award or cost objective in accordance with relative benefits received. This standard is met if the cost is incurred specifically for the Federal award, benefits both the Federal award and other work of the non-Federal entity and can be distributed in proportions that may be approximated using reasonable methods and is necessary to the overall operation of the non-Federal entity and is assignable in part to the Federal award in accordance with the principles in subpart E. Condition: In fiscal year 2022, the Organization did not have an adequate process to review and approve employee cell phone costs charged to the program resulting in non-program costs being charged to the program. Name of Contact Person: Mike Fett, CFO Phone Number: (602) 265-8338 Anticipated Completion Date: September 30, 2023 Views of Responsible Officials and Corrective Actions: Southwest Behavioral Health Services, Inc. and Subsidiaries will establish additional policies and procedures to ensure adequate review of cell phone bills occurs and terminated and transferred employees are removed immediately. Additionally, we will implement proper review controls over the cost reimbursement reports to identify issues like these timely.

View Audit 42283 Questioned Costs: $1

Finding 47380 (2022-002)

Material Weakness 2022

Southwest Behavioral Health Services, Inc. and Subsidiaries

AZ

Questioned Costs Allowable Costs / Cost Principles Material Weakness § 200.405

Item: 2022-002 Assistance Listing Number: 14.231 Programs: COVID-19 Emergency Solutions Grant ? Homeless Street Outreach Federal Agency: U.S. Department of Housing and Urban Development Pass-Through Agencies: City of Phoenix Pass-Through Grantor Identifying Number: 154962-0 Award Year: July 1, 2...

Item: 2022-002 Assistance Listing Number: 14.231 Programs: COVID-19 Emergency Solutions Grant ? Homeless Street Outreach Federal Agency: U.S. Department of Housing and Urban Development Pass-Through Agencies: City of Phoenix Pass-Through Grantor Identifying Number: 154962-0 Award Year: July 1, 2021 ? June 30, 2022 and July 1, 2022 ? September 30, 2022 Criteria: In accordance with 2 CFR ? 200.405 - Allocable costs ? a cost is allocable to a particular Federal award or other cost objective if the goods or services involved are chargeable or assignable to that Federal award or cost objective in accordance with relative benefits received. This standard is met if the cost is incurred specifically for the Federal award, benefits both the Federal award and other work of the non-Federal entity and can be distributed in proportions that may be approximated using reasonable methods and is necessary to the overall operation of the non-Federal entity and is assignable in part to the Federal award in accordance with the principles in subpart E. Condition: In fiscal year 2022, the Organization did not have an adequate process to review and approve employee cell phone costs charged to the program resulting in non-program costs being charged to the program. One employee's phone bill continued to be charged to the grant after they stopped working on the program. Name of Contact Person: Mike Fett, CFO Phone Number: (602) 265-8338 Anticipated Completion Date: September 30, 2023 Views of Responsible Officials and Corrective Actions: Southwest Behavioral Health Services, Inc. and Subsidiaries will establish additional policies and procedures to ensure adequate review of cell phone bills occurs and terminated and transferred employees are removed immediately. Additionally, we will implement proper review controls over the cost reimbursement reports to identify issues like these timely.

View Audit 42283 Questioned Costs: $1

Finding 47369 (2022-001)

Material Weakness 2022

Community of Peace Academy Charter School No. 4015

MN

Allowable Costs / Cost Principles Material Weakness Reporting

COVID-19 EDUCATION STABILIZATION FUND 84.425c, 84.425D, 84.425W, 84.425U Recommendation: Recommendation: We recommend the School review its controls and procedures over charging costs to federal programs to ensure no costs are charged to multiple federal programs. Explanation of disagreement with au...

COVID-19 EDUCATION STABILIZATION FUND 84.425c, 84.425D, 84.425W, 84.425U Recommendation: Recommendation: We recommend the School review its controls and procedures over charging costs to federal programs to ensure no costs are charged to multiple federal programs. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: The school will review it?s controls and procedures over charging cost to federal programs to ensure no costs are charged to multiple federal programs. The school will coordinate these efforts with the grant manager for the school. Name(s) of the contact person(s) responsible for corrective action: Tim McGowan, Executive Director Planned completion date for corrective action plan: June 30, 2023

View Audit 52935

Corrective Action Plans

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