Corrective Action Plans

Finding 403902 (2022-002)

Material Weakness 2022

Aerospace MacHinists Joint Training Committee

WA

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

Corrective Action Plan: The deficiencies related to internal control policies and procedures were initially identified in a Federal Desk Monitoring Review conducted in November 2022. Internal control policies and procedures were updated in response to these findings and approved by DOL on October 26...

Corrective Action Plan: The deficiencies related to internal control policies and procedures were initially identified in a Federal Desk Monitoring Review conducted in November 2022. Internal control policies and procedures were updated in response to these findings and approved by DOL on October 26, 2023. All financial reporting policies and procedures will be reviewed and updated on an annual basis by AJAC Directors and Supervisors. Anticipated Completion Date: Completed

View Audit 310790

Finding 403888 (2022-002)

Significant Deficiency 2022

West Alabama Aids Outreach, Inc.

AL

Subrecipient Monitoring Allowable Costs / Cost Principles Cash Management § 200.303

The CFO has instituted multiple approvals for each reimbursement or purchase request. Since completion of the fiscal year ended 9/30/2022, the Organization has added a Director of Grants Management, two grant billers, and a purchasing manager to help ensure policies and procedures are being followe...

The CFO has instituted multiple approvals for each reimbursement or purchase request. Since completion of the fiscal year ended 9/30/2022, the Organization has added a Director of Grants Management, two grant billers, and a purchasing manager to help ensure policies and procedures are being followed. For reimbursements, employees will complete an Employee Reimbursement Form which is signed by the employee and employee's direct supervisor. For purchase requests, employees will complete a Purchase Order form which is signed by the employee and the employee's supervisor. The signed form is sent to the finance department where it is entered in Bill.com for payment by accounts payable personnel. The Director of Finance approves the reimbursement or purchase on Bill.com, then the CFO approves and releases for payment. The approved Reimbursement Form or Purchase Order is sent to the Director of Grants Management, and if eligible, attached to the monthly billing to grantor for reimbursement. Anticipated Completion Date: 9/30/2023 Responsible Contact Person: Chris White, CFO

View Audit 310763

Finding 403822 (2022-007)

Significant Deficiency 2022

Jft Recovery and Veterans Support Services

PA

Procurement, Suspension & Debarment Allowable Costs / Cost Principles Cash Management § 200.302 § 200.303 § 200.318 § 200.319 § 200.430

Policies will be placed and adopted by the agency that meet the UG code. These policies will be placed in the fiscal manual. The fiscal manual will be created by using federal guidelines and by using the DDAP fiscal manual as guidance.

View Audit 310733

Finding 403820 (2022-005)

Material Weakness 2022

Jft Recovery and Veterans Support Services

PA

Allowable Costs / Cost Principles Cash Management Material Weakness

As of 2023 we will be adding the following policy to the fiscal manual and to the operations manual to read as follows: All monthly program reports shall be completed by the coordinator and sent to the Deputy Director for approval, once approved they will be sent to the Fiscal Coordinator. The Fis...

As of 2023 we will be adding the following policy to the fiscal manual and to the operations manual to read as follows: All monthly program reports shall be completed by the coordinator and sent to the Deputy Director for approval, once approved they will be sent to the Fiscal Coordinator. The Fiscal Coordinator will then complete the billing amount and fiscal narrative then the report will be reviewed by the Deputy Director. Once approved the report will be presented to the Executive Director for final review, approval and signature and date placed on each report before it is sent to the funder. All program coordinators will complete a JFT outcomes report that is placed in an electronic reporting system and these reports will be reviewed quarterly by the Deputy Director. The Deputy Director does data analysis and these reports are placed in narrative form by the Deputy Director quarterly and the year-end report. These are shared with the funders according to the reporting requirements in the grant. All reports must be to funders by the 15th of the following month, unless otherwise stated in funder contract. The following policy will also be added to the fiscal manual: All budget modifications will be written up on the budget modification form and sent to the funder electronically once approved the form will be notated and include the funders signature, written on the form verbal communication from the funder, or a copy of the email with funder approval.

View Audit 310733

Finding 403819 (2022-004)

Material Weakness 2022

Jft Recovery and Veterans Support Services

PA

Questioned Costs Allowable Costs / Cost Principles

In 2022 and 2023 we have developed a system that better separated and tracked expenditures by grant. We have made the following adjustments already: 1. We have purchased software and a device to read and store receipts into the computer system. We have purchased and are using QuickBooks. All ex...

In 2022 and 2023 we have developed a system that better separated and tracked expenditures by grant. We have made the following adjustments already: 1. We have purchased software and a device to read and store receipts into the computer system. We have purchased and are using QuickBooks. All expenditures and incoming funds will be placed into the QuickBooks system. Any expenditure is then filed by grant, by month with a copy of the invoice, bill, etc. documentation as well as the receipt that corresponds. All files will be kept in a locked cabinet in the fiscal office. At the end of each year all past year records will be stored and kept for 7 years. 2. We have hired a person to do data entry and bookkeeping part time. 3. We have devoted our Administrative Coordinator to take responsibility for HR and fiscal matters to serve as a check and balance system as well as to take the larger load from the Fiscal Coordinator since we have grown. 4. The final thing JFT has done is to hire an accounting firm called Gift CPAs to come in as a final check and balance. Gift CPAs has been able to give our agency training on fiscal matters that were not clear, they have been able to expand our knowledge and use of the QuickBooks System and helped us set up proper checks and balances to better ensure that everything that is charged to each grant is well documented.

View Audit 310733 Questioned Costs: $1

Finding 403818 (2022-003)

Material Weakness 2022

Jft Recovery and Veterans Support Services

PA

Allowable Costs / Cost Principles § 200.430

JFT does have all the board minutes on file. However, because we were a small agency, salary rates were not often changed. Additionally, all salary rates and changes were always driven by the ability to obtain the funding needed. Since we were small and there was not always a lot to discuss with ...

JFT does have all the board minutes on file. However, because we were a small agency, salary rates were not often changed. Additionally, all salary rates and changes were always driven by the ability to obtain the funding needed. Since we were small and there was not always a lot to discuss with the board our board only met twice a year. Therefore, all salary was discussed with the board president, then taken to the board. Unfortunately, there is no formal documentation at this time. As of 2023 our board now meets quarterly. Therefore, the following policy will be included in the fiscal manual: the JFT board of directors will hold a public meeting quarterly. All matters of pay rates and salaries will be approved at the start of each grant cycle. State and county grants will be discussed prior to the July 1 start dates, all federal grants will be discussed prior to October 1. Any changes in salary must be approved by the board and documented in official board minutes. All board minutes will be placed in a locked file in the Fiscal Coordinator’s office.

View Audit 310733

Finding 403817 (2022-002)

Material Weakness 2022

Jft Recovery and Veterans Support Services

PA

Questioned Costs Allowable Costs / Cost Principles § 200.430

Starting in 2023 all employees of the Organization will complete formal time sheets. These sheets will be signed by the Administrative Coordinator and by the Fiscal Coordinator and then entered into the system each pay period to rectify this finding.

View Audit 310733 Questioned Costs: $1

Finding 403696 (2022-003)

None 2022

Nacogdoches Memorial Hospital District

TX

Allowable Costs / Cost Principles Special Tests & Provisions Cash Management

We are in receipt of the findings required to be reported by the single audit for COVID19 Claims Reimbursement for the Uninsured Program and the COVID19 Coverage Assistance Fund specifically, regarding discrepancies in funding received under a different employer identifier number. Management does no...

We are in receipt of the findings required to be reported by the single audit for COVID19 Claims Reimbursement for the Uninsured Program and the COVID19 Coverage Assistance Fund specifically, regarding discrepancies in funding received under a different employer identifier number. Management does not dispute the finding. The District is in it’s second year after going through an asset purchase transaction, whereby the physical assets were retained by the District, but the operations of the hospital were sold. As the District moves forward, we will work to develop policies and procedures over financial reporting to ensure they only request reimbursement for federal grants for programs with the correct employer identification number. Lynn Lindsey, Chief Financial Officer, will be responsible to ensure that this is accomplished and will begin to implement new procedures. The corrective action plan will be implemented by September 30, 2024.

View Audit 310696

Finding 403123 (2022-001)

Material Weakness 2022

Town of Middleborough

MA

Questioned Costs Allowable Costs / Cost Principles Material Weakness § 200.334

Name of Contact Person: Sue Nickerson, Town Accountant

View Audit 310251 Questioned Costs: $1

Finding 403123 (2022-001)

Material Weakness 2022

Town of Middleborough

MA

Questioned Costs Allowable Costs / Cost Principles Material Weakness § 200.334

Corrective Action Plan: The District has had turnover of personnel in the Business Office this past fiscal year. As the new Director of Business and Finance there will be procedures implemented to ensure that sufficient documentation for transactions for costs charged to federal programs is supporte...

Corrective Action Plan: The District has had turnover of personnel in the Business Office this past fiscal year. As the new Director of Business and Finance there will be procedures implemented to ensure that sufficient documentation for transactions for costs charged to federal programs is supported by documentation as required by the Uniform Guidance regulations. Additionally, there will be a review of current purchasing policies, to add or amend, which will further help support meeting the federal guidelines. Lastly, it should be noted that the Town/School financial system will be converting/upgrading to MUNIS ERP Solution for the Public Sector. This upgrade will be very instrumental in maintaining the necessary information to meet audit requirements.

View Audit 310251 Questioned Costs: $1

Finding 403123 (2022-001)

Material Weakness 2022

Town of Middleborough

MA

Questioned Costs Allowable Costs / Cost Principles Material Weakness § 200.334

Proposed Completion Date: Immediately

View Audit 310251 Questioned Costs: $1

Finding 403121 (2022-012)

Material Weakness 2022

State of California

CA

Internal Control / Segregation of Duties Special Tests & Provisions Allowable Costs / Cost Principles § 200.303

Public Health agrees that Form CMS-1539 should be signed. We are exploring reasons why so many forms were not signed, and we will work with our District office management to ensure that they are all signed going forward. Further, we will address this issue at our next meeting of District Managers, ...

Public Health agrees that Form CMS-1539 should be signed. We are exploring reasons why so many forms were not signed, and we will work with our District office management to ensure that they are all signed going forward. Further, we will address this issue at our next meeting of District Managers, District Administrators, and Health Facilities Evaluator Supervisors, and will work to update our training materials as necessary. Finally, we will also explore periodically pulling a sample of completed CMS-1539 forms to verify that signatures are present. Estimated Implementation Date: May 1, 2024 Contact: Elizabeth Moreno, Section Chief Business Operation Section Center for Health Care Quality, Office of Internal Operations California Department of Public Health

View Audit 310237

Finding 403119 (2022-010)

Material Weakness 2022

State of California

CA

Eligibility Internal Control / Segregation of Duties Procurement, Suspension & Debarment § 200.303

Public Health’s Office of Aids (OA) agrees with the finding and recommendation. OA developed and implemented additional internal quality assurance (QA) processes in April of 2022 to ensure that secondary reviews of AIDS Drug Assistance Program (ADAP) applications are consistently enforcing the exist...

Public Health’s Office of Aids (OA) agrees with the finding and recommendation. OA developed and implemented additional internal quality assurance (QA) processes in April of 2022 to ensure that secondary reviews of AIDS Drug Assistance Program (ADAP) applications are consistently enforcing the existing guidelines, including acceptable supporting documentation and accurate eligibility requirements. Prior to this audit period, and through December 2021, ADAP had issued multiple policy memos to respond to the COVID-19 pandemic, which enabled staff and enrollment workers to defer documentation collection, when necessary, to remain flexible and ensure clients impacted by the pandemic, and associated site closures, did not lose eligibility and access to life-saving medications and comprehensive healthcare. These flexibilities in our guidelines were implemented based on guidance received from our federal funder, the Health Resources and Services Administration, which encouraged ADAP to reassess its organization's eligibility and recertification policies and procedures, and remove any barriers that may impede social distancing, or other public health strategies, necessary to minimize COVID-19 transmission. This documentation deferral was terminated on December 31, 2021, and since January 1, 2022, full documentation and eligibility requirements have been enforced. This, combined with ongoing QA efforts, will help mitigate future findings in ADAP applications. Estimated Implementation Date: Implemented as of April 2022 Contact: Joseph Lagrama, Branch Chief AIDS Drug Assistance Program Branch California Department of Public Health

View Audit 310237

Finding 403118 (2022-009)

Material Weakness 2022

State of California

CA

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

The Behavioral Health Administrative support team will endeavor to ensure that timesheets are collected and submitted appropriately. As the payroll system (SCO) and leave accounting (HRIS) are two completely separate programs that do not interact, the Behavioral Health (BH) Administrative Support T...

The Behavioral Health Administrative support team will endeavor to ensure that timesheets are collected and submitted appropriately. As the payroll system (SCO) and leave accounting (HRIS) are two completely separate programs that do not interact, the Behavioral Health (BH) Administrative Support Team will maintain a master file detailing the funding information for each position. For example, if a position is funded by two different grants, the file would reflect the percentage of work associated with each. It must be noted that as employee leave is tracked and maintained in a separate system, the Absence and Additional Time Worked Reports (STD 634) only reflect hours worked and leave used and does not reflect how a position is funded. Additionally, staff who are in Work Week Group E and are exempt from coverage under the Fair Labor Standards Act (FLSA) are not required to document hours worked for payroll purposes. Therefore, this form would only reflect leave credits used in whole-day increments. This means that on their timesheets, you will only find time used to cover full-day leave usage. These are generally our Supervisors and Managers. Estimated Implementation Date: July 2024 Contact: Raberta Gannon, Chief Behavioral Health Administrative Support Services Section Deputy Diretor’s Office, Behavioral Health California Department of Health Care Services

View Audit 310237

Finding 403116 (2022-008)

Material Weakness 2022

State of California

CA

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

The Local Governmental Financing Division, in collaboration with the Audits and Investigations Division, agrees that policies and procedures will be developed to take additional action for significantly late-cost reports and non-compliant counties. As of July 1, 2023, the California Department of He...

The Local Governmental Financing Division, in collaboration with the Audits and Investigations Division, agrees that policies and procedures will be developed to take additional action for significantly late-cost reports and non-compliant counties. As of July 1, 2023, the California Department of Health Care Services transitioned counties away from cost reconciliation financing, and for any state fiscal year after July 1, 2023, counties will no longer be required to submit cost reports. Estimated Implementation Date: July 2023 Contact: Wendy Griffe, Chief Internal Audits California Department of Health Care Services

View Audit 310237

Finding 403115 (2022-007)

Material Weakness 2022

State of California

CA

Allowable Costs / Cost Principles Material Weakness Reporting § 200.303

California received $27 billion in State Fiscal Recovery Funds (SFRF) under the American Rescue Plan Act of 2021 to cover costs and mitigate the impacts of the COVID-19 pandemic. States that lost revenue due to the pandemic are permitted to use an amount of SFRF equivalent to their lost revenue, as ...

California received $27 billion in State Fiscal Recovery Funds (SFRF) under the American Rescue Plan Act of 2021 to cover costs and mitigate the impacts of the COVID-19 pandemic. States that lost revenue due to the pandemic are permitted to use an amount of SFRF equivalent to their lost revenue, as calculated pursuant to the U.S. Treasury’s Final Rule, to fund government services. The Department of Finance (Finance) acknowledges that its established review processes did not detect the inclusion of state employee contributions to deferred compensation plans in its revenue loss calculation and that these contributions did not constitute eligible revenue codes as they were not reported as revenues in the state’s basic financial statements. Due to unclear federal guidance, Finance’s original analysis and screening questions accounted for revenue codes that constituted revenues to the state from a budgetary perspective. Finance agrees that this oversight is a material weakness and has since adjusted its approach to the revenue loss calculation by excluding revenue codes that do not constitute revenues from a financial statement accounting perspective. However, Finance maintains that its overall controls and calculation process is sound and disagrees that this oversight was categorized as a material noncompliance finding. As stated in the finding, the overstated revenue loss amount did not impact expenditures reported for fiscal year 2022, and corrective action was taken before this finding and the state’s annual comprehensive financial report were released. The overstated revenue loss amount of $977,898,160 was not transferred from Fund 8506, which was established for the administration of the State Fiscal Recovery Funds received from the federal government, and was not used for the provision of government services. Estimated Implementation Date: January 2024 Contact: Mary Halterman, Assistant Program Budget Manager Federal Funds Cost Tracking & Accountability Unit California Department of Finance

View Audit 310237

Finding 403113 (2022-006)

Material Weakness 2022

State of California

CA

Questioned Costs Eligibility Reporting § 200.303

The EDD resumed adjudicating all potential eligibility issues as of January 2021 and completed the retroactive determination workload on April 30, 2023. Estimated Implementation Date: April 2023 Contact: Diane Underwood, Division Chief Unemployment Insurance Branch California Em...

The EDD resumed adjudicating all potential eligibility issues as of January 2021 and completed the retroactive determination workload on April 30, 2023. Estimated Implementation Date: April 2023 Contact: Diane Underwood, Division Chief Unemployment Insurance Branch California Employment Development Department

View Audit 310237 Questioned Costs: $1

Finding 403111 (2022-005)

Material Weakness 2022

State of California

CA

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

Given the unprecedented volume of unemployment insurance claims during the federal disaster—approximately 20 million claims compared to 3.8 million during the Great Recession—EDD took action to speed payments to eligible claimants whenever possible. For example, EDD launched in July 2021 a Condition...

Given the unprecedented volume of unemployment insurance claims during the federal disaster—approximately 20 million claims compared to 3.8 million during the Great Recession—EDD took action to speed payments to eligible claimants whenever possible. For example, EDD launched in July 2021 a Conditional Payment Program to speed payments to claimants who certified for benefits and already received at least one week of benefits in the past but whose payments were later pending for more than two weeks. EDD also boosted its capacity to process workloads, prioritized timely payments, and employed automation among other measures. As reported in Reference Number 2020-006 in fiscal year 2019-2020, EDD began automatically cross-matching EDD wage records and Franchise Tax Board records in November 2020 to assist in verifying the income of PUA claimants who could not be automatically verified through these procedures. Such claimants were required to submit additional documentation to EDD for a manual review. Regarding the manual processing of the income documents to substantiate the PUA weekly benefit amounts that have been increased above the minimum California WBA of $167, and the verification of employment or self-employment substantiation (known in California as “Self-employment/Employment Substantiation” or “SEES”), on February 6, 2024, in accordance with the U.S. Department of Labor (DOL) Unemployment Insurance Program Letter 05-24, the California Employment Development Department (EDD) identified that the processing of PUA income documents and the SEES workloads must be considered resolved due to California’s finality laws. The EDD is prohibited by law from resolving these items by California Unemployment Insurance Code section 1376, which provides that EDD cannot establish overpayments more than one year after the close of the benefit year in which the overpayment was made unless the overpayment is found to be a result of fraud, misrepresentation, or willful nondisclosure. Given that there is no fraud or fault on the part of the individuals identified in these populations, EDD is unable to take the required actions to resolve the workload due to California’s finality law provisions. EDD is expecting a response from DOL agreeing with the application of California’s finality laws to the PUA income verification and the SEES workloads. Estimated Implementation Date: Upon DOL response, to be determined Contact: Diane Underwood, Division Chief Unemployment Insurance Branch California Employment Development Department

View Audit 310237 Questioned Costs: $1

Finding 403109 (2022-004)

Material Weakness 2022

State of California

CA

Questioned Costs Eligibility Internal Control / Segregation of Duties § 200.303

As reported in the prior year’s response, since fiscal year 2020-21, the Employment Development Department (EDD) has implemented dozens of strict anti-fraud measures and has continued to evaluate and enhance its fraud detection. EDD has also developed internal fraud working groups and a multiagency ...

As reported in the prior year’s response, since fiscal year 2020-21, the Employment Development Department (EDD) has implemented dozens of strict anti-fraud measures and has continued to evaluate and enhance its fraud detection. EDD has also developed internal fraud working groups and a multiagency fraud task force that reviews fraud data and fraud reports on a continual basis and recommends adjustments to filters and tools as necessary. EDD has successfully halted two large fraud scheme attempts over the previous two years and continues to work towards immediate detection and prevention of fraud attempts. EDD will continue to analyze and assess our processes to stay ahead of the ever-evolving fraud landscape. As previously described, EDD implemented the following measures to address the nationwide fraud attempts perpetrated against the new emergency federal benefit programs in 2020-21: • Implemented additional cross-matches in September 2020 to detect multiple claims per address. • Ceased automatically backdating PUA claims under federal rules in September 2020. • Strengthened identity verification procedures in October 2020 by implementing ID.me. • Implemented additional cross-matches in November 2020 against state inmate information. • Vetted applications against law enforcement databases and other tools provided by Thomson Reuters in December 2020 to further curb identity and non-identity fraud. • Established a 1099-G call center to help victims of identity theft deal with any tax-related questions. • Ceased printing Social Security numbers on mailed documents to reduce identity theft risk. • Enhanced benefit card security with Bank of America. • Partnered with state, local and federal law enforcement agencies to support thousands of criminal investigations, arrests, prosecutions and convictions. The EDD has and will continue to evaluate and enhance the fraud detection/prevention tools that have been put in place. Estimated Implementation Date: Annual reassessment to be completed September 2024 Contact: Diane Underwood, Division Chief Unemployment Insurance Branch California Employment Development Department

View Audit 310237 Questioned Costs: $1

Finding 403107 (2022-003)

Material Weakness 2022

State of California

CA

Eligibility Allowable Costs / Cost Principles HUD Housing Programs § 200.303

The California Department of Public Health (Public Health) Women, Infants, and Children (WIC) Division had agreed that the WIC Web Information System Exchange (WISE) system does not currently store eligibility history that should be included in the “Cert History Report,” and the initial eligibility ...

The California Department of Public Health (Public Health) Women, Infants, and Children (WIC) Division had agreed that the WIC Web Information System Exchange (WISE) system does not currently store eligibility history that should be included in the “Cert History Report,” and the initial eligibility data is overwritten when subsequent eligibility information is keyed into WIC WISE. However, WIC WISE does include preventative internal stops or checkpoints that do not allow ineligible individuals to be certified and issued benefits (e.g., over income, not a California resident, no nutrition risk factor, etc.). User acceptance testing vetted these items prior to system implementation in 2019/20. The certification history condition discussed was remediated via a system Defect Correction to WIC WISE that was in user acceptance testing for implementation in Fall 2023. Public Health/WIC has entered Defect Correction #6972 in TFS (Team Foundation Services), the tracking system previously used to capture system changes and defects. The defect correction supports a system change to ensure initial eligibility information is retained when subsequent eligibility information is entered into WIC WISE. Estimated Implementation Date: August 2023 Contact: William Welch, Assistant Division Chief, Operations Women, Infants, and Children Division California Department of Public Health

View Audit 310237

Finding 402404 (2022-002)

Significant Deficiency 2022

City of Bremerton

WA

Subrecipient Monitoring Allowable Costs / Cost Principles

Finding ref number: 2022-002 Finding caption: The City did not have adequate internal controls for ensuring compliance with federal subrecipient monitoring requirements. Name, address, and telephone of City contact person: Mike Riley, Director of Financial Services 345 6th Street, Suite 100 Bremer...

Finding ref number: 2022-002 Finding caption: The City did not have adequate internal controls for ensuring compliance with federal subrecipient monitoring requirements. Name, address, and telephone of City contact person: Mike Riley, Director of Financial Services 345 6th Street, Suite 100 Bremerton, WA 98337 (360) 473-5303 Corrective action the auditee plans to take in response to the finding: The City will ensure every subaward agreement clearly identifies that it is a federal award and includes the applicable federal requirements for programs funded with Coronavirus State and Local Fiscal Recovery Funds and other federal funding. Anticipated date to complete the corrective action: Immediately

View Audit 309938

Finding 401926 (2022-003)

Significant Deficiency 2022

The Wayside House, Inc. and Subsidiary

MN

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

The Organization will implement control procedures that maintain proper segregation of duties. Expenditure amounts that are to be applied to federal awards shall be prepared the Staff Accountant and will require the formal approval from an individual in leadership (COO, Controller) prior to being re...

The Organization will implement control procedures that maintain proper segregation of duties. Expenditure amounts that are to be applied to federal awards shall be prepared the Staff Accountant and will require the formal approval from an individual in leadership (COO, Controller) prior to being recorded. The prepared file and documentation of the review and approval will be retained in a share drive for future access.

View Audit 309846

Finding 401925 (2022-002)

Significant Deficiency 2022

The Wayside House, Inc. and Subsidiary

MN

Allowable Costs / Cost Principles § 200.430

The Organization will implement control procedures that maintain proper segregation of duties. Allocation of payroll expenditures to federal programs are to be prepared by the Staff Accountant and will require the formal approval from an individual in leadership (COO, Controller) prior to being reco...

The Organization will implement control procedures that maintain proper segregation of duties. Allocation of payroll expenditures to federal programs are to be prepared by the Staff Accountant and will require the formal approval from an individual in leadership (COO, Controller) prior to being recorded. The prepared file and documentation of the review and approval will be retained in a share drive for future access.

View Audit 309846

Finding 401802 (2022-007)

Material Weakness 2022

City of East Point, Georgia

GA

Allowable Costs / Cost Principles Reporting

Finding - Item 2022-07 - Annual Audit U.S. Department of Treasury Coronavirus State and Local Fiscal Recovery Funds -ALN 21.027 U.S. Department of Housing & Urban Development Community Development Block Grants -ALN 14.218 U.S. Department of Justice Equitable Sharing Program-ALN 16.922 Statement of C...

Finding - Item 2022-07 - Annual Audit U.S. Department of Treasury Coronavirus State and Local Fiscal Recovery Funds -ALN 21.027 U.S. Department of Housing & Urban Development Community Development Block Grants -ALN 14.218 U.S. Department of Justice Equitable Sharing Program-ALN 16.922 Statement of Condition: The required annual audit of the financial statements for the year ended June 30, 2022, was not completed and submitted to the federal and state governments within the time frames required by Federal Regulations and the State of Georgia. Criteria: Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles and Audit Requirements for Federal Awards (Uniform Guidance) require that grant recipients that expend $750,000 or more in federal awards in a fiscal year have a single audit conducted in accordance with 45 CFR Part 75, Subpart F and submit the related audit reports electronically to the Federal Audit Clearinghouse within the specified time frame. The Official Code of Georgia annotated §36-81-7 requires an annual audit of the financial affairs, transactions of all funds and activities of the local government for each fiscal year of the local government. The audit report must contain fmancial statements prepared in conformity with generally accepted governmental accounting principles. The annual audit report of the local government shall be completed, and a copy forwarded to the state auditor within 180 days after the close of the local government's fiscal year end. Corrective Action: The city concurs with the finding. During the audit year in question, the City experienced a significant turnover in multiple key :financial positions. The significant turnover severely hampered the City's ability to compile and complete the fmancial reports and submissions by the required federal and state deadlines. The City recently completed its audits of the financial statements and federal awards for the fiscal year ended June 30, 2022. While there are still key :financial positions with vacancies, the City is confident that future reports will be submitted in a timely manner. The city has engaged a public accounting firm and plans to begin its audit for the fiscal year ending June 30, 2023, immediately. Person Responsible for Corrective Action: Finance Anticipated Completion Date for Corrective Action: 06/30/2024

View Audit 309706

Finding 401429 (2022-006)

Significant Deficiency 2022

County of Columbia, Pennsylvania

PA

Subrecipient Monitoring Allowable Costs / Cost Principles Reporting

Federal Program: Assistance Listing #21.027, COVID-19 - Coronavirus State and Local Fiscal Recovery Funds, U.S. Department of Treasury, Passed Through Pennsylvania Department of Community and Economic Development, Pass-Through Entity Identifying Number: not available Condition/Context: The County’...

Federal Program: Assistance Listing #21.027, COVID-19 - Coronavirus State and Local Fiscal Recovery Funds, U.S. Department of Treasury, Passed Through Pennsylvania Department of Community and Economic Development, Pass-Through Entity Identifying Number: not available Condition/Context: The County’s required report for the quarter ended December 31, 2022 was due to be filed by January 31, 2023. The County filed its report on March 23, 2023, 48 days after the required due date. Recommendation: We recommend that the County revisit its policies and procedures related to reporting to ensure future reports are completed and submitted within the appropriate time period. Planned Corrective Actions: The County is current on all reporting. Name(s) of Contact Person(s) Responsible for Corrective Action: David Witchey, Chief Clerk

View Audit 309542

Corrective Action Plans

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