Corrective Action Plans

Finding 43283 (2022-004)

Material Weakness 2022

Cattaraugus County Project Head Start Inc.

NY

Questioned Costs Cash Management Allowable Costs / Cost Principles

Allowable Cost/Cost Principles Auditor?s Recommendation: On a monthly basis, expenses recorded within the Organization?s general ledger system should be reconciled with expenses claimed for reimbursement through Head Start drawdowns. The reconciliation should consider reimbursements and credits rece...

Allowable Cost/Cost Principles Auditor?s Recommendation: On a monthly basis, expenses recorded within the Organization?s general ledger system should be reconciled with expenses claimed for reimbursement through Head Start drawdowns. The reconciliation should consider reimbursements and credits received by the Organization. This reconciliation should be reviewed by someone independent of the preparer. Organization?s Response: Head Start agrees with the recommendation and will continue to prepare grant reconciliations to ensure draw down requests are matched by expenditures. Reconciliations will be approved by Anthony Harenda, Financial Manager, and Danielle Amore, CEO. Monthly reconciliations will be included in the Board of Directors reports. This will be addressed for the year ending December 31, 2023 and in future years.

View Audit 49748 Questioned Costs: $1

Finding 43282 (2022-003)

Material Weakness 2022

Cattaraugus County Project Head Start Inc.

NY

Questioned Costs Cash Management Allowable Costs / Cost Principles

Allowable Cost/Cost Principles Auditor?s Recommendation: On a monthly basis, expenses recorded within the Organization?s general ledger system should be reconciled with expenses claimed for reimbursement through Head Start drawdowns. The reconciliation should consider reimbursements and credits rece...

Allowable Cost/Cost Principles Auditor?s Recommendation: On a monthly basis, expenses recorded within the Organization?s general ledger system should be reconciled with expenses claimed for reimbursement through Head Start drawdowns. The reconciliation should consider reimbursements and credits received by the Organization. This reconciliation should be reviewed by someone independent of the preparer. Organization?s Response: Head Start agrees with the recommendation and will continue to prepare grant reconciliations to ensure draw down requests are matched by expenditures. Reconciliations will be approved by Anthony Harenda, Financial Manager, and Danielle Amore, CEO. Monthly reconciliations will be included in the Board of Directors reports. This will be addressed for the year ending December 31, 2023 and in future years.

View Audit 49748 Questioned Costs: $1

Finding 43248 (2022-001)

Material Weakness 2022

Alverno Apartments, Inc.

PA

HUD Housing Programs Allowable Costs / Cost Principles Eligibility

ALVERNO APARTMENTS, INC. 98 Hawthorne Road Pittsburgh, PA 15209 CORRECTIVE ACTION PLAN March 24, 2023 United States Department of Housing and Urban Development Alverno Apartment, Inc., respectfully submits the following corrective action plan for the year ended December 31, 2022. Name and addres...

ALVERNO APARTMENTS, INC. 98 Hawthorne Road Pittsburgh, PA 15209 CORRECTIVE ACTION PLAN March 24, 2023 United States Department of Housing and Urban Development Alverno Apartment, Inc., respectfully submits the following corrective action plan for the year ended December 31, 2022. Name and address of independent public accounting firm: Maher Duessel, CPA's 503 Martindale Street, Suite 600 Pittsburgh, PA 15212 Audit period: January 1, 2022 - December 31, 2022 The finding from the December 31, 2022 schedule of findings and questioned costs is discussed below. The finding is numbered consistently with the number assigned in the schedule. FINDINGS?FINANCIAL STATEMENT AUDIT None FINDINGS? FEDERAL AWARD PROGRAMS AUDITS Finding 2022-001 Department of Housing and Urban Development HUD Supportive Housing for the Elderly (Section 202) ALN Number 14.157 Recommendation: The Property should have internal controls in place to review Form HUD-50059 to ensure all documentation used to calculate the tenant rent and assistance payment is supported and properly calculated. Action taken: The Property has a Recertification Checklist. The managers have been reminded to utilize the checklist to its fullest when recertification. Also, managers have been reminded to double check all calculations after submitting to the servicer, Paulhus and Associates. If the Department of Housing and Urban Development has questions regarding this plan, please call Dan Barbusio at 412-646-5193.

View Audit 45116

Finding 43247 (2022-002)

Significant Deficiency 2022

Hacienda, Inc.

AZ

Questioned Costs Allowable Costs / Cost Principles Reporting

The following are Reponses to the findings in the Hacienda, Inc. single audit for the year ended Jun 30, 2022: 1. Section II - Financial Statement Findings 2022-001 Finding: Inadequate internal Controls The Organization's internal controls over financial reporting at the general ledger and financi...

The following are Reponses to the findings in the Hacienda, Inc. single audit for the year ended Jun 30, 2022: 1. Section II - Financial Statement Findings 2022-001 Finding: Inadequate internal Controls The Organization's internal controls over financial reporting at the general ledger and financial statement levels were not adequate to ensure misstatements would be prevented and/or detected. Response: Management acknowledges the finding and in response the Organization plans to put in place more effective internal controls, accounting policies, and procedures to better prevent and/or detect financial statements from material misstatements. Contact person(s) responsible for corrective action: a. Laura Worthy, CFO b. Heather Myers, Accounting Manager 2. Section II - Financial Statement Findings 2022-002 Finding: Errors were made in reporting expenditures in the period two provider relief fund report to the U.S. Department of Health and Human Services. During testing it was identified that employee salaries were included twice on the report. However, it was noted that the Organization had sufficient expenditures that covered the questioned costs of $29,135 of expenditures that were unallowed. Response: Management acknowledges the finding and in response will perform a high level of review of expenditures for accuracy and allowability under the criteria provided by entity to ensure compliance with reporting requirements. Contact person(s) responsible for corrective action: a. Laura Worthy, CFO b. Heather Myers, Accounting Manager For any additional questions, concerns, and/or clarifications, please contact Laura Worthy via email at lworthy@haciendainc.org.

View Audit 45113 Questioned Costs: $1

Finding 43223 (2022-004)

Significant Deficiency 2022

Homesight and Subsidiaries

WA

Questioned Costs Allowable Costs / Cost Principles

Audit Finding: 2022-004 Audit Finding Title: The Organization disburse federal funds to program beneficiaries in excess of program limits. Correction Plan: 1. Salesforce will used as the central repository location for all grants and contracts. 2. A regular reconciliation with the Program Ma...

Audit Finding: 2022-004 Audit Finding Title: The Organization disburse federal funds to program beneficiaries in excess of program limits. Correction Plan: 1. Salesforce will used as the central repository location for all grants and contracts. 2. A regular reconciliation with the Program Managers will be performed. 3. The overages for the WSHFC program were paid May 2023. Implementation Date: The correction action begun Jan. 2023. Anticipated Completed Date: These are on-going corrective actions.

View Audit 47955 Questioned Costs: $1

Finding 43221 (2022-001)

Significant Deficiency 2022

Homesight and Subsidiaries

WA

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

Audit Finding: 2022-001 Audit Finding Title: Internal control procedures over financial reporting were not performed consistently throughout the fiscal year to ensure accuracy in accounting for revenue and related accounts. Correction Plan: 1. The use of Salesforce as a central repository all gr...

Audit Finding: 2022-001 Audit Finding Title: Internal control procedures over financial reporting were not performed consistently throughout the fiscal year to ensure accuracy in accounting for revenue and related accounts. Correction Plan: 1. The use of Salesforce as a central repository all grant and contract documentation. 2. Financial Policies and Procedures accessible to all current and new staff and a regular review with Finance staff. Implementation Date: The above corrections have been implemented since Jan. 2023. Anticipated Completion Date: These are on-going corrective actions.

View Audit 47955

Finding 43217 (2022-002)

Material Weakness 2022

Homesight and Subsidiaries

WA

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

Audit Finding: 2022-002 Audit Finding Title: The SEFA provided for audit omitted a major program and federal contracts and either understated or overstated the federal contracts listed in the condition and context section below, which resulted in an understatement of federal awards of $1.8M. All...

Audit Finding: 2022-002 Audit Finding Title: The SEFA provided for audit omitted a major program and federal contracts and either understated or overstated the federal contracts listed in the condition and context section below, which resulted in an understatement of federal awards of $1.8M. All errors were corrected in the attached SEFA; however, the errors indicate gaps in internal controls over financial reporting. Correction Plan: 1. A central repository is created in Salesforce in order to have one location for staff to pull documentation of grants and contracts. 2. The SEFA will be reconciled on a quarterly basis with updates. Implementation Date: The corrective actions 1 has been implemented since Jan. 2023. The corrective action 2 has been implemented since June 2023. Anticipated Completed Date: These are on-going corrective actions.

View Audit 47955

Finding 43213 (2022-002)

Significant Deficiency 2022

Community Mental Health Partnership of Southeast Michigan

MI

Questioned Costs Subrecipient Monitoring Allowable Costs / Cost Principles § 200.309

Finding 2022-002: Considered a significant deficiency in internal control over compliance/immaterial non-compliance Program: ALN 93.959 Block Grants for Prevention and Treatment of Substance Abuse (ARPA Prevention) Criteria: As detailed by 2 CFR 200.309, ?A non-Federal entity may charge to the Feder...

Finding 2022-002: Considered a significant deficiency in internal control over compliance/immaterial non-compliance Program: ALN 93.959 Block Grants for Prevention and Treatment of Substance Abuse (ARPA Prevention) Criteria: As detailed by 2 CFR 200.309, ?A non-Federal entity may charge to the Federal award only allowable costs incurred during the period of performance and any costs incurred before the Federal awarding agency or pass-through entity made the Federal award that were authorized by the Federal awarding agency or pass-through entity.?. Condition: During testing it was noted that $112,581 of costs that were allowable under ARPA Treatment were incorrectly allocated from ARPA Treatment to ARPA Prevention. Corrective Action: All finance staff responsible for any allocation of grant funding have undergone additional training or reading on how to allocate grants. The was completed by April 30, 2023.

View Audit 44644 Questioned Costs: $1

Finding 43211 (2022-003)

Significant Deficiency 2022

The Villages, Inc.

KS

Allowable Costs / Cost Principles Period of Performance Significant Deficiency

2022-003 Review and Approval of Grant Expenditures (Significant Deficiency) Department of Health and Human Services Unaccompanied Alien Children Program, Assistance Listing Number 93.676 Compliance Requirement: Activities Allowed or Unallowed, Allowable Costs/Cost Principles and Period of Performa...

2022-003 Review and Approval of Grant Expenditures (Significant Deficiency) Department of Health and Human Services Unaccompanied Alien Children Program, Assistance Listing Number 93.676 Compliance Requirement: Activities Allowed or Unallowed, Allowable Costs/Cost Principles and Period of Performance Recommendation: The Organization should implement controls and processes that ensure grant expenditures charged to the program are reviewed to ensure costs are allowable and properly supported. Action Taken (Unaudited):. All expenses must be approved by the Executive Director prior to payment. Approvals are documented either via physical signature or email. A schedule has been established so that expenses are reviewed in a more timely and organized manner. Contact Name ? Kaleena Harmer Expected Completion Date ? 08/31/2022

View Audit 45599

Finding 43205 (2022-003)

Material Weakness 2022

Jefferson County School District No R-1

CO

Questioned Costs Reporting Allowable Costs / Cost Principles § 200.502

Emergency Connectivity Fund Program ? Assistance Listing No. 32.009 Recommendation: We recommend that the district improve the review process over tracking and reporting reimbursements of federal expenditures. Explanation of disagreement with audit finding: There is no disagreement with the audit ...

Emergency Connectivity Fund Program ? Assistance Listing No. 32.009 Recommendation: We recommend that the district improve the review process over tracking and reporting reimbursements of federal expenditures. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action planned in response to finding: As the subject matter experts, the district grants accounting department will work with other district departments to ensure eligibility rules and requirements are fully met when seeking reimbursement for expenditures. Grants team members will further work to support departments who play an active role in obtaining and monitoring federal grants to seek reimbursement within a timely manner, and when possible, seeking such reimbursement by the close of the fiscal year or immediately thereafter. Specific guidance will be communicated with other department management and future updates to the district Financial Services Guide will include updated guidance for all departments to reference. The Grants Manager will be responsible for monitoring all correspondence with grant-making entities to ensure timely response to potentially disputed submissions. Name(s) of the contact person(s) responsible for corrective action: Andy Flinn, Grants Manager Planned completion date for corrective action plan: June 2023

View Audit 41462 Questioned Costs: $1

Finding 43178 (2022-013)

Material Weakness 2022

Doral Academy of Northern Nevada

NV

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

Finding Number: 2022-013 ? Activities Allowed or Unallowed and Allowable Costs/Cost Principles Corrective Action Plan: A process has been put in place for the school principal to review all RFRs prior to submission to the grantor. Approval is evidenced by email sent by principal to the Director of G...

Finding Number: 2022-013 ? Activities Allowed or Unallowed and Allowable Costs/Cost Principles Corrective Action Plan: A process has been put in place for the school principal to review all RFRs prior to submission to the grantor. Approval is evidenced by email sent by principal to the Director of Grant Management, which is saved with the RFR as support. Responsible Individuals: Nachum Golodner, Director of Accounting Anticipated Completion Date: June 30, 2023

View Audit 48322

Finding 43177 (2022-014)

Material Weakness 2022

Doral Academy of Northern Nevada

NV

Reporting Allowable Costs / Cost Principles Material Weakness

Finding Number: 2022-014 ? SEFA Preparation Corrective Action Plan: In 2022, the office had downsized due to turnover in staff. While a process was in place for reconciling, a secondary review was not performed to verify accuracy of the residual value calculations. To strengthen the oversight of fin...

Finding Number: 2022-014 ? SEFA Preparation Corrective Action Plan: In 2022, the office had downsized due to turnover in staff. While a process was in place for reconciling, a secondary review was not performed to verify accuracy of the residual value calculations. To strengthen the oversight of financial management in the School, Academica Nevada, the School?s management company, has filled all the open positions and realigned staff responsibilities to reduce individual workloads and provide additional oversight and review. The grant manager will reconcile all grants to ensure proper cutoff, with a secondary review performed by a member of management. Responsible Individuals: Nachum Golodner, Director of Accounting Anticipated Completion Date: June 30, 2023

View Audit 48322

Finding 43163 (2022-002)

Material Weakness 2022

Youth & Family Services, Inc.

SD

Questioned Costs Allowable Costs / Cost Principles Reporting

The Organization has communicated with OHS officials to confirm expectations regarding prepaid contracts. The Organization will follow the guidance of OHS and will record prepaid contracts according to GAAP rules. The Organization will receive and implement guidance from OHS to correct the draw an...

The Organization has communicated with OHS officials to confirm expectations regarding prepaid contracts. The Organization will follow the guidance of OHS and will record prepaid contracts according to GAAP rules. The Organization will receive and implement guidance from OHS to correct the draw and use of funds related to the current situation. Going forward, per the HHS Grants Policy Statement, the Organization will confirm with OHS if an exception related to handling a specific prepaid service contract is appropriate and allowed.

View Audit 44468 Questioned Costs: $1

Finding 43140 (2022-002)

Significant Deficiency 2022

Pinnacles Prep Charter School

WA

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

Pinnacles agrees that an expense was double claimed. The only mitigating factor was that the e-rate funding decision took over a year to be received. The corrective action below has already been implemented. Moving forward, the contracted accounting firm will mark all items submitted for reimbursem...

Pinnacles agrees that an expense was double claimed. The only mitigating factor was that the e-rate funding decision took over a year to be received. The corrective action below has already been implemented. Moving forward, the contracted accounting firm will mark all items submitted for reimbursement with the appropriate class code in the accounting system. This will prevent double claiming as the accounting system will already demarcate which expenses were submitted for reimbursement. This finding was also already communicated to the CSP grantor and an eligible expense was submitted and accepted to replace the double claimed expense.

View Audit 39552

Finding 43138 (2022-003)

Significant Deficiency 2022

Pinnacles Prep Charter School

WA

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

Pinnacles agrees that appropriate time and effort reports were not kept. The reports were created but never signed. Moving forward, the School will implement procedures to ensure that these reports are signed in a timely manner.

View Audit 39552

Finding 43094 (2022-003)

Material Weakness 2022

Sisseton-Wahpeton College

SD

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

Finding 2022-003 Activities Allowed or Unallowed, Allowable Costs/Cost Principles and Period of Performance Material Weakness in Internal Control over Compliance and Material Noncompliance Finding Summary: Through testing of operational expenditures of the College, it was determined; o Payroll expen...

Finding 2022-003 Activities Allowed or Unallowed, Allowable Costs/Cost Principles and Period of Performance Material Weakness in Internal Control over Compliance and Material Noncompliance Finding Summary: Through testing of operational expenditures of the College, it was determined; o Payroll expenditures charged to the award were not for costs newly associated with the coronavirus, a requirement communicated within the supplemental guidance in the Higher Education Emergency Relief Fund III Frequently Asked Questions published May 11, 2021 and updated May 24, 2021. Through testing of disbursements to students, it was determined; o No support could not be provided to substantiate a secondary level of review was completed prior to disbursement of funds. o 26 instances identified in which the College directly controlled how student?s use their emergency financial aid grant. o 8 instances identified in which college discharged outstanding balance on student account for costs incurred prior to March 13, 2020. o 2 instances identified in which the College charged coronavirus vaccine incentive payments under the student portion of HEERF award. Responsible Individuals: Dr. Lane Azure, President Corrective Action Plan: o In response to the payroll finding, this was funded through MSI (no Student or Institutional funds were used for payroll). SWC president attended weekly meetings with American Indian Higher Education Consortium (AIHEC) who assisted and advocated for these HEERF monies for all Tribal Colleges and Universities (TCU). Handouts (attached) of slides were given to each institution and Payroll was an allowable cost with the exception of the President. The college president believed in order to allow the college to stay open and not lose students and staff, subsidies had to be included in payroll. There were no predictions on how long this world-wide pandemic was going to last or how much funds the government was going to give to IHE. SWC is a small tribal college where hiring and maintaining qualified personnel has been difficult long before the pandemic and now even more so. SWC could not afford to hire new staff even if it was feasible to find someone to fill new positions. Therefore, SWC used HEERF to make payroll on many employees whose job duties changed so they could assist the college in staying open and transition to a completely different method of delivering education to SWC students. SWC president was told by the Department of Education and AIHEC that these funds had to be exhausted in a limited amount of time. In addition, there was a limited number of items that the funds could be spent on, but it was changing every day to be more liberal. In March 2020, SWC had to begin offering courses via distance delivery which was a completely new method for this college. In summer 2020, the college did not offer classes and in fall 2020 SWC had to begin offering a hybrid method of delivery. Every single employee of this college had to do their day to day duties differently in order to support the new delivery method for education ranging from contact tracing, hyflex delivery, social distancing, hygiene, masking up, staff meetings, parking, teaching, and etc. The range of employees went from admissions, student services, academic staff, faculty, and the business office. All employees were coming in at different shifts, and/or working remotely, while social distancing. o The College will ensure documented secondary level of review and approval is retained. o For grant payments funded by institutional portion, Grant payments were applied to student accounts and if no outstanding balance, a check was given to the student. For grants funded by MSI, a formula was used to distribute $125 per credit and an allowance for books and fees. The COARS was a financial aid grant to the student who applied for the relief. o Any debt relief provided for students was for those students who could not attend the current academic year because of a prior balance. In order to attend college during the pandemic, MSI funds were used to discharge the student?s balance at the discretion of the student. o The checks for these instances were given directly to the student to defray costs of going to get the vaccine, for transportation, for cost of the office visit, or whatever it may have been they needed in order to get the vaccine. It was emergency aid to the student. Anticipated Completion Date: July 1, 2022

View Audit 48700 Questioned Costs: $1

Finding 43091 (2022-004)

Material Weakness 2022

Sunny Glen Children's Home, Inc.

TX

Questioned Costs Allowable Costs / Cost Principles Equipment & Real Property Management

Views of Responsible Officials and Planned Corrective Action: The Home disagrees with the disallowance and maintains that the ACF made legal and factual errors in taking the disallowance and that expenses incurred were necessary, reasonable, allocable and allowable. The Home is working with a consul...

Views of Responsible Officials and Planned Corrective Action: The Home disagrees with the disallowance and maintains that the ACF made legal and factual errors in taking the disallowance and that expenses incurred were necessary, reasonable, allocable and allowable. The Home is working with a consultant to establish standard operating procedures and workflows relating to the accounting function.

View Audit 45290 Questioned Costs: $1

Finding 43075 (2022-002)

Material Weakness 2022

First Step House, Inc.

UT

Questioned Costs Allowable Costs / Cost Principles Material Weakness § 200.303

2022-001 Finding Summary: The Organization?s accounts relating to the Provider Relief Fund were materially overstated, resulting in a material adjustment to the financial statements. The Organization?s system of internal control over the preparation of the consolidated financial statements did not d...

2022-001 Finding Summary: The Organization?s accounts relating to the Provider Relief Fund were materially overstated, resulting in a material adjustment to the financial statements. The Organization?s system of internal control over the preparation of the consolidated financial statements did not detect the error. Responsible Individuals: Austin Davis, Associate Director and Heidi Spence, Finance Director Corrective Action Plan: We have established a policy to conduct a thorough review of significant, non-routine transactions, including utilizing external experts where needed. Anticipated Completion Date: 8/24/23 Finding 2022-002 Federal Agency Name: Program Name: CFDA # Finding Summary: The total lost revenues included on the report submitted to the Health Resources and Services Administration (HRSA) for Period 2 (Period 2 Report) utilizing Option 3, as defined by HRSA, contained errors. Responsible Individuals: Austin Davis, Associate Director and Heidi Spence, Finance Director Corrective Action Plan: We have established a policy to conduct a thorough review of significant, non-routine transactions, including utilizing external experts where needed. Anticipated Completion Date: 8/24/23

View Audit 44183 Questioned Costs: $1

Finding 43072 (2022-005)

Material Weakness 2022

Lawrence County Fiscal Court

KY

Questioned Costs Procurement, Suspension & Debarment Internal Control / Segregation of Duties § 200.318

County Judge/Executive?s Response: See answer to 2022-002. County Judge/Executive?s Response: The Fiscal Court hired the County Judge's brother as road foreman because he was the only person who met the requirements for the position a...

County Judge/Executive?s Response: See answer to 2022-002. County Judge/Executive?s Response: The Fiscal Court hired the County Judge's brother as road foreman because he was the only person who met the requirements for the position and would accept the job, other people were offered the job before the brother, in addition the brother also served in the same position under a previous administration and left on good terms. At the time of the Fiscal Court acceptance of bids from the vendor, the son-in-law of the Judge Executive was not listed as an officer of the entity. The County Judge does not vote on fiscal court matter other than as a tie breaker. All votes cast by the Judge executive are either for tie breaking purposes or purely symbolic to show unity on the Court. All future hiring's and/or vendor purchases that require Ethics Commission approval will be submitted to the Ethics Committee in advance and will be in compliance with all state and federal statutes and guidelines.

View Audit 44179 Questioned Costs: $1

Finding 43070 (2022-003)

Significant Deficiency 2022

Lawrence County Fiscal Court

KY

Allowable Costs / Cost Principles Reporting § 200.302 § 200.303 § 200.328 § 200.329 § 200.502

County Judge/Executive?s Response: The fiscal court would like to point out that ARPA funds were properly distributed. During this time there was little guidance on how to manage the reporting. All reporting has been corrected.

View Audit 44179

Finding 43040 (2022-001)

Material Weakness 2022

Loon Lake School District No. 183/43j

WA

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

When or if the District enters into another project funded with federal dollars, the District will create a spreadsheet to track the submittals of weekly certified payrolls. This tracking document will include the following data: Project Description/Subcontractor Vendor/Date SAM verified/Date Inte...

When or if the District enters into another project funded with federal dollars, the District will create a spreadsheet to track the submittals of weekly certified payrolls. This tracking document will include the following data: Project Description/Subcontractor Vendor/Date SAM verified/Date Intent Filed and Project Number/Date Affidavit Filed/Position & Dates/Verified Prevailing Wage (State or Federal, whichever is higher). Federal purchasing requirements will be shared with all staff tasked to manage the project.

View Audit 44224

Finding 43013 (2022-001)

Significant Deficiency 2022

Council of Western State Foresters

CO

Questioned Costs Subrecipient Monitoring Allowable Costs / Cost Principles § 200.303

Management Response and Planned Corrective Action We concur with the Federal Award Findings outlined above of the auditors and have implemented a corrective action plan, including updating internal control policies and procedures. Views of Responsible Officials and Corrective Actions The managem...

Management Response and Planned Corrective Action We concur with the Federal Award Findings outlined above of the auditors and have implemented a corrective action plan, including updating internal control policies and procedures. Views of Responsible Officials and Corrective Actions The management team of the Council of Western State Foresters believe in the values of transparency, justification, and documentation for the transactions made while conducting organizational duties, whether funded by federal sources or otherwise. As a small organization with limited staff, suggested reasonable improvements to processes are always welcome. It is in this spirit that the below corrective actions to address the findings and questioned costs noted on the 2022 Single Audit. Corrective Action Plan: 1. The organization?s credit card and the credit card held in the name of the Executive Director are currently one and the same. All credit card transactions are reviewed no less than monthly, and any staff usage of the credit card requires and secures pre-approval. Going forward, the CWSF Credit Card Usage Policy will be adjusted to provide clarity regarding credit card usage by staff and reflect the review process. With any staff usage of the credit card, documentation will be made of pre-approval along with receipt documentation of the purchase. Purchases made by staff will be documented as authorized by the Executive Director. 2. While approvals for these expenditures did occur per both the credit card usage and travel policies, the documentation was not attached with the corresponding receipt. In future, written emails or other approval documenting necessary authorization will be included with the corresponding receipts in the organizational and financial records. 3. Following the discovery of 1 income I-9 in staff personnel files during the course of the audit, a thorough review of all personnel files has already been undertaken to ensure that no other files are missing critical documentation, including I-9s and corresponding proof of identification. Moving forward, all personnel documentation for current and future staff will be maintained in hard copy as well as in electronic form and will be maintained in accordance with legal requirements for document retention.

View Audit 39962 Questioned Costs: $1

Finding 43001 (2022-004)

Significant Deficiency 2022

Scotland County of North Carolina

NC

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

Finding: 2022-004 Name of contact person: Beth Hobbs, Finance Director Corrective action: The County followed the IRS guidance in the Final Rule document pertaining to the eligible uses and allowable costs of the ARPA funds. The County also had language in sub-r...

Finding: 2022-004 Name of contact person: Beth Hobbs, Finance Director Corrective action: The County followed the IRS guidance in the Final Rule document pertaining to the eligible uses and allowable costs of the ARPA funds. The County also had language in sub-recipient agreements regarding Title VI for Civil Rights Act. The County did not formally adopt policies for the items mentioned above. For future expenditures the County will adopt said policies to be in compliance. Proposed completion date: Immediately

View Audit 39106

Finding 42950 (2022-003)

Material Weakness 2022

Progress House Inc.

CA

Subrecipient Monitoring Allowable Costs / Cost Principles Reporting

Views of responsible officials and corrective action: See SEFA Preparation; in addition to allocating funds based on the SEFA worksheet properly in our operating system, QuickBooks for tracking purposes. This process will be completed on a monthly basis with a quarterly audit to ensure the proper al...

Views of responsible officials and corrective action: See SEFA Preparation; in addition to allocating funds based on the SEFA worksheet properly in our operating system, QuickBooks for tracking purposes. This process will be completed on a monthly basis with a quarterly audit to ensure the proper allocation of funds provided. Responsible Individual: Office Manager Implementation Date: May 2023

View Audit 38169

Finding 42949 (2022-004)

Material Weakness 2022

Progress House Inc.

CA

Questioned Costs Subrecipient Monitoring Allowable Costs / Cost Principles

Views of responsible officials and corrective action: Payroll Tax administration integration through ADP automats tax deposits and filings ? quarterly/annually for federal, state and local jurisdictions. Conducting continual balancing to ensure that tax filing data match payroll data. ADP identifies...

Views of responsible officials and corrective action: Payroll Tax administration integration through ADP automats tax deposits and filings ? quarterly/annually for federal, state and local jurisdictions. Conducting continual balancing to ensure that tax filing data match payroll data. ADP identifies and corrects reconciliation mistakes throughout the year to help save time and ensure an easier year-end tax audit. expense and accounts payable payroll policy Progress House Inc. contracts with an external company for payroll services. payroll preparation and approval Protocol Payroll Records-Employees are paid on a bi-monthly basis. The payroll company is responsible for preparing payroll checks and maintaining the records in a payroll journal. deductions Progress House Inc. is responsible for providing the external payroll company with accurate employee information, and providing changes or corrections as needed. The external payroll company is responsible for ensuring deductions including the appropriate social security taxes (FICA), federal income taxes, state income taxes and state disability insurance. Responsible Individual: Executive Director and Executive Assistant Implementation Date: July 2022

View Audit 38169 Questioned Costs: $1

Corrective Action Plans

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