Corrective Action Plans

Finding 22383 (2022-001)

Significant Deficiency 2022

TX

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

Christian Community Action respectfully submits the following corrective action plan for the year ended June 30, 2022. Audit period: 07/01/2021 ? 06/30/2022. The finding from the schedule of findings and questioned costs is discussed below. The finding is numbered consistently with the number assign...

Christian Community Action respectfully submits the following corrective action plan for the year ended June 30, 2022. Audit period: 07/01/2021 ? 06/30/2022. The finding from the 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 Housing and Urban Development 2022-001 Emergency Shelter Grant Program ? Assistance Listing No. 14.231 Recommendation: The organization should establish a process for review of the calculation of the rate per hour used to charge wages to the grant as well as a process for review of the calculation that is used to apply total salaries under the program to applicable grants. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: I. A process has been implemented for the CFO Consultant to perform and document review of the calculation of the rate per hour used to charge wages to the grant. II. A process has been implemented for the Controller to perform and document review of payroll data used to calculate the rate per hour. III. A process is being implemented for the Controller and CFO Consultant to perform and document review the report of total salaries and fringe benefits applied to the applicable grant program. Names of the contact persons responsible for corrective action: Janet Moore Planned completion date for corrective action plan: 02/28/2023 If the U.S. Department of Housing and Urban Development has questions regarding this plan, please call Janet Moore at 972-219-4375.

View Audit 20297

Finding 22381 (2022-002)

Material Weakness 2022

Little Buns, Inc.

IN

Questioned Costs Allowable Costs / Cost Principles Material Weakness

Finding 2022-002 Internal Control Over Activities Allowed or Unallowable (ALN# 59.008 COVID-19 Disaster Assistance Loans) Type of Finding: Material Weakness in Internal Control Over Compliance Condition and Context: During the year ended December 31, 2022, the Executive Director was paid a one-tim...

Finding 2022-002 Internal Control Over Activities Allowed or Unallowable (ALN# 59.008 COVID-19 Disaster Assistance Loans) Type of Finding: Material Weakness in Internal Control Over Compliance Condition and Context: During the year ended December 31, 2022, the Executive Director was paid a one-time payment in the amount of $60,000 and another $50,000 was paid to an LLC that is owned by the Executive Director?s daughter. There were no services provided to support these payments. Action(s) taken or planned on the finding: Little Buns, Inc. will provide oversight with a paid position of a CPA controller to oversee the fundraising efforts for compliance with all non-profit regulations. In order to fully engage with non-profit regulation, Little Buns, Inc. will create transparency of all non-profit accounts, including fundraising, investment and grant streams. All funds deemed inappropriate will be paid back by the Executive Director. If there are any questions regarding this plan, please call the undersigned at 317-663-8276. Sincerely, Maxine Jeglum, Director

View Audit 20797 Questioned Costs: $1

Finding 22380 (2022-003)

None 2022

Blanchester Local School District

OH

Questioned Costs Allowable Costs / Cost Principles Internal Control / Segregation of Duties § 200.303 § 200.403

The district will implement procedures to ensure that personnel paid from federal funding complete single funding certifications and/ or time and effort logs.

View Audit 20899 Questioned Costs: $1

Finding 22376 (2022-003)

Significant Deficiency 2022

Wes-Del Community School Corporation

IN

Questioned Costs Allowable Costs / Cost Principles § 200.303 § 200.403 § 200.404

FINDING 2022-003 Contact Person Responsible for Corrective Action: Sharon Fowler Contact Phone Number: (765) 358-4006 Views of Responsible Official: The Superintendent and Corporation Treasurer felt that expenses of $15,787.31 were justifiable due to the lack of fund raiser dollars for prom because ...

FINDING 2022-003 Contact Person Responsible for Corrective Action: Sharon Fowler Contact Phone Number: (765) 358-4006 Views of Responsible Official: The Superintendent and Corporation Treasurer felt that expenses of $15,787.31 were justifiable due to the lack of fund raiser dollars for prom because of COVID. Part of that expense amount was for Esports Club chairs. These chairs are used for Esports only after school, and used during the day in regular classrooms. As for the Freshman Class Sponsor, Assistant Wrestling Coach, and Elementary Talen Show Sponsor, these contracts were paid from ESSER. The ECA positions were inadvertently added to teachers? contracts, as usual, and not taken out of the Education Fund. Description of Corrective Action Plan: Beginning with the 2022-23 fiscal year, we will be more careful with what we spend from ESSER Funds. Anticipated Completion Date: July 2023

View Audit 21466 Questioned Costs: $1

Finding 22327 (2022-001)

Material Weakness 2022

Community Memorial Hospital District D/b/a Syracuse Area Health

NE

Allowable Costs / Cost Principles Material Weakness Reporting § 200.303

Finding No. 2022-001 Criteria: 2 CFR 200.303(a) establishes that the auditee must establish and maintain effective internal control over the federal award that provides assurance that the entity is managing the federal award in compliance with federal statutes, regulations, and conditions of the fe...

Finding No. 2022-001 Criteria: 2 CFR 200.303(a) establishes that the auditee must establish and maintain effective internal control over the federal award that provides assurance that the entity is managing the federal award in compliance with federal statutes, regulations, and conditions of the federal award. Condition: SAH selected option I to calculate lost revenue, which consists of a comparison of actual results during the period of availability to the base calendar year of 2019. For all periods reported in SAH?s Period 2 submission, the reported patient service revenue amounts did not agree to the underlying internal financial statements. Furthermore, SAH did not report actual revenue for Quarter 3 2021 and Quarter 4 2021. Planned Corrective Action: Management will continue to refine processes to more diligently review the lost revenue calculation to ensure such amounts are in accordance with the terms and conditions of the federal award. However, SAH incurred and reported eligible expenses and lost revenue that had the errors in the lost revenue calculation been identified and corrected prior to reporting, SAH would have satisfactorily incurred eligible expenses and lost revenue in excess of the PRF funds received, including interest earned on such funds. Planned Completion Date: Ongoing Person Responsible: Karrie Beach, VP of Finance

View Audit 26341

Finding 22323 (2022-006)

Significant Deficiency 2022

Penasco Independent School District

NM

Procurement, Suspension & Debarment Allowable Costs / Cost Principles Significant Deficiency

Corrective Action: We will work with the District staff to plan and obtain purchase orders before receiving items and / or placing orders. Due Date of Completion: June 30, 2023 Responsible Party(ies): Business Manager

View Audit 25727

Finding 22322 (2022-004)

Significant Deficiency 2022

Haven - Violence Prevention and Support Services

NH

Allowable Costs / Cost Principles

2022-004: Time Sheets Time sheets are detailed out by program but not by grant thus it is not straightforward to ensure that the amounts charged to the grant were allowable. We recommend that time sheets support the time allocated to the grant and that a second review be performed and documented fo...

2022-004: Time Sheets Time sheets are detailed out by program but not by grant thus it is not straightforward to ensure that the amounts charged to the grant were allowable. We recommend that time sheets support the time allocated to the grant and that a second review be performed and documented for allowable charges to the grants. Action Taken: The time sheets are created based on the uniqueness of each employee salary funding. The time sheets are created to only be funded from the approved grant budgets as submitted to the grantors. If funding changes and the change should affect the payroll, all time sheets associated with the change will be modified by the Office Manager to match the change. The time sheets currently are reviewed by employees? direct supervisors for their signature, then reviewed and reconciled by the Office Manager (HR) within the payroll process. Once the payroll is entered it is then reviewed again by the Executive Director and in her absence the Finance Director for final processing.

View Audit 24945

Finding 22321 (2022-003)

Significant Deficiency 2022

Haven - Violence Prevention and Support Services

NH

Allowable Costs / Cost Principles Cash Management Reporting

2022-003: QuickBooks Expenditure Tracking HAVEN utilizes QuickBooks by customer reports to track the expenditures applied to the grants. There were four instances where the QuickBooks report did not agree to the reimbursement request for the grant. We recommend that a report is run from QuickBooks ...

2022-003: QuickBooks Expenditure Tracking HAVEN utilizes QuickBooks by customer reports to track the expenditures applied to the grants. There were four instances where the QuickBooks report did not agree to the reimbursement request for the grant. We recommend that a report is run from QuickBooks to support the grant reimbursement request and that the report is reviewed by the Executive Director for agreement. If changes are made QuickBooks should be updated. To ensure changes are being properly reflected, a report for the year-to-date period should be generated to ensure the figures agree to the reimbursement requests to date. Action Taken: In FY22 there were 3 different people in the Finance Director position. Our current Finance Director corrected these findings with the approval of WIPFLI in August 2022, when she discovered them. Since June 21, 2022, our new Finance Director has run monthly and quarterly grant reports to ascertain that the balances reconcile to what is being invoiced. The Finance Director and Executive Director will continue to review and cross reference all reports each month and quarter as we invoice the grants.

View Audit 24945

Finding 22316 (2022-002)

Significant Deficiency 2022

Denver Research Institute, Inc.

CO

Allowable Costs / Cost Principles Significant Deficiency

Finding 2022-002: U.S. Department of Health and Human Services - Regents of the University of California San Francisco - Allergy and Infectious Diseases Research - Assistance Listing No. 93.855.U.S. Department of Health and Human Services - Palo Alto Veterans Institute for Research - Family and Comm...

Finding 2022-002: U.S. Department of Health and Human Services - Regents of the University of California San Francisco - Allergy and Infectious Diseases Research - Assistance Listing No. 93.855.U.S. Department of Health and Human Services - Palo Alto Veterans Institute for Research - Family and Community Violence Prevention Program - Assistance Listing No. 93.910. Allowable Costs, Significant Deficiency Auditor Recommendation: We recommend the Organization enhance its year-end close process to include calculating the indirects charged to all federal awards for the entire year to ensure the indirects have been properly charged to the grant and with the correct rate. Corrective Action: The Standard Operating Procedures (SOPs) for the Grants & Contracts department have been enhanced to include the current indirect rates through the monitoring process of the Grants Milestone Calendar. As previously noted, this cornerstone process reminds the grants department of a monthly review for all areas of each grant. This provides insight of the progression of the grant, meeting or exceeding thresholds and milestones, the project timeline of the grant, accuracy for invoicing, correct indirect rates, and so on. This is monitored on a monthly basis through the Operations Timeline Schedule, moving through the monthly system and is reviewed, and approved by the Grants Director, then the Executive Director. This is an actionable item in the system. Responsible Party: Grants Department, and Executive Director Anticipated Completion Date: This corrective action is currently in effect as of April 30, 2023

View Audit 23009

Finding 22241 (2022-004)

Significant Deficiency 2022

Elizabeth Glaser Pediatric Aids Foundation

DC

Allowable Costs / Cost Principles Subrecipient Monitoring Reporting

2022-004 Internal Control over Compliance and Compliance with Activities Allowed or Unallowed and Allowable Costs and Cost Principles Contact: Sherian Abramaitys-yi Title: Chief Human Resources Officer Phone Number: 202-296-9165 Estimated Completion Date: December 2023 Corrective Action: Managem...

2022-004 Internal Control over Compliance and Compliance with Activities Allowed or Unallowed and Allowable Costs and Cost Principles Contact: Sherian Abramaitys-yi Title: Chief Human Resources Officer Phone Number: 202-296-9165 Estimated Completion Date: December 2023 Corrective Action: Management acknowledges the finding and notes that policies and procedures in place at the Foundation are designed to mitigate these risks, as evidenced by the auditors noting no issues in the overwhelming majority of samples selected. The Foundation will remind staff, particularly those in HR, as well as supervisors, of the importance of a complete personnel record for each employee, as well as the importance of reviewing and approving timesheets in a timely manner.

View Audit 20063

Finding 22240 (2022-005)

Significant Deficiency 2022

Elizabeth Glaser Pediatric Aids Foundation

DC

Allowable Costs / Cost Principles Reporting Subrecipient Monitoring

2022-005 Internal Control over Compliance and Compliance with Activities Allowed or Unallowed and Allowable Costs and Cost Principles Contact: Sam Kimball Title: Corporate Controller Phone Number: 202-296-9165 Estimated Completion Date: December 2023 Corrective Action: During 2023, the Foundatio...

2022-005 Internal Control over Compliance and Compliance with Activities Allowed or Unallowed and Allowable Costs and Cost Principles Contact: Sam Kimball Title: Corporate Controller Phone Number: 202-296-9165 Estimated Completion Date: December 2023 Corrective Action: During 2023, the Foundation is implementing a new ERP system with an anticipated go-live date of October 1, 2023. This new system will allow for better structure around the period-end accrual process and allow the Foundation to more clearly and effectively accrue for costs in the period of performance. Additionally, the Foundation will hold informal training sessions to remind staff of the importance of recording expenditures in the appropriate period and the policies around year-end accruals for costs that have not yet been invoiced.

View Audit 20063

Finding 22114 (2022-004)

None 2022

Village of Honor

MI

Procurement, Suspension & Debarment Allowable Costs / Cost Principles Cash Management

Finding: 2022-004 ? Immaterial Noncompliance ? Written Policies Required by the Uniform Grant Guidance Auditor Description of Condition and Effect: The Uniform Guidance requires a non-federal entity that has expended federal awards for a grant awarded on or after December 26, 2014, to have written ...

Finding: 2022-004 ? Immaterial Noncompliance ? Written Policies Required by the Uniform Grant Guidance Auditor Description of Condition and Effect: The Uniform Guidance requires a non-federal entity that has expended federal awards for a grant awarded on or after December 26, 2014, to have written policies pertaining to allowability of costs charged to federal programs, controlled activities over allowable costs and allowable activities, cash management, financial management, procurement, compensation/payroll, travel costs, and relocation cost of employees (?200.300 - 328)). This condition appears to be the result of a time lag in identifying the requirement and developing a plan for compliance. Auditor Recommendation: We recommend that the Village ensures these policies are updated to conform with the Uniform Guidance as soon as practical, but no later than the end of fiscal year 2023. Corrective Action: The Village agrees to the condition/finding of written policies required by the Uniform Grant Guidance. Management and Village agrees Responsible Person: Anticipated Completion Date: December 31, 2023

View Audit 26278

Finding 22112 (2022-002)

Significant Deficiency 2022

Memorial Hospital D/b/a Memorial Healthcare

MI

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

The items in question were included on the same purchase order as other COVID-19 related supplies and were incorrectly charged to the grant. Going forward, the Organization will ensure the individuals accumulating allowable expenses ensure they understand the nature of all items being charged to ens...

The items in question were included on the same purchase order as other COVID-19 related supplies and were incorrectly charged to the grant. Going forward, the Organization will ensure the individuals accumulating allowable expenses ensure they understand the nature of all items being charged to ensure compliance with the program requirements.

View Audit 25483 Questioned Costs: $1

Finding 22110 (2022-002)

Significant Deficiency 2022

Chillicothe Metropolitan Housing Authority

OH

Allowable Costs / Cost Principles Procurement, Suspension & Debarment § 200.302 § 200.317 § 200.318 § 200.327

Lack of Purchase Order Compliance Requirement: Activities Allowed or Unallowed, Allowable Costs/Cost Principles We will make sure that we follow our SOP and that proper controls are in place to ensure the policies and procedures are being followed. We also have a new E.D. who checks and approves eve...

Lack of Purchase Order Compliance Requirement: Activities Allowed or Unallowed, Allowable Costs/Cost Principles We will make sure that we follow our SOP and that proper controls are in place to ensure the policies and procedures are being followed. We also have a new E.D. who checks and approves every purchase order. The proper controls are now in place.

View Audit 24931

Finding 22108 (2022-005)

Significant Deficiency 2022

Theatre for Children, Inc.

CA

Cash Management Procurement, Suspension & Debarment Allowable Costs / Cost Principles

Finding 2022-005: Written Policies and Procedures Organization?s Response: We concur Views of Responsible Officials and Corrective Action: This was our first year of a Single Audit. We will develop the applicable written policies before undergoing any future Single Audits. Name of Responsible Offici...

Finding 2022-005: Written Policies and Procedures Organization?s Response: We concur Views of Responsible Officials and Corrective Action: This was our first year of a Single Audit. We will develop the applicable written policies before undergoing any future Single Audits. Name of Responsible Official: Lyndsay Burch Projected Implementation Date: August 2023

View Audit 23437

Finding 22105 (2022-002)

Significant Deficiency 2022

Theatre for Children, Inc.

CA

Allowable Costs / Cost Principles Reporting

Finding 2022-002: Delay in Financial Reporting Organization?s Response: We concur and disagree Views of Responsible Officials and Corrective Action: We were not aware that delays were such that they would create a finding. We actually received kudos from the auditors at the beginning of the audit fo...

Finding 2022-002: Delay in Financial Reporting Organization?s Response: We concur and disagree Views of Responsible Officials and Corrective Action: We were not aware that delays were such that they would create a finding. We actually received kudos from the auditors at the beginning of the audit for our recordkeeping. We disagree that delays have created issues with management?s decision-making. The Board receives monthly financial reports in a timely manner. We are actively considering the hiring of a CFO. Name of Responsible Official: Lyndsay Burch Projected Implementation Date: August 2023

View Audit 23437

Finding 22096 (2022-001)

Significant Deficiency 2022

Hattiesburg Public School District

MS

Allowable Costs / Cost Principles Matching / Level of Effort / Earmarking Special Tests & Provisions

Finding 2022-001. 84.425D COVID-19 - Elementary & Secondary School Emergency Relief Fund ARP III; 84.027 Special Education - Grants to States and 84.173 Special Education - Preschool Grants; and 84.010 Title I Grants to Local Educational Agencies - Cost Principals (Contract Provisions for Non-Feder...

Finding 2022-001. 84.425D COVID-19 - Elementary & Secondary School Emergency Relief Fund ARP III; 84.027 Special Education - Grants to States and 84.173 Special Education - Preschool Grants; and 84.010 Title I Grants to Local Educational Agencies - Cost Principals (Contract Provisions for Non-Federal Entity Contracts Under Federal Awards). A. Corrective Action Plan - The district will strengthen internal controls over contracts to ensure all contracts under federal awards contain the required contract provisions. A contract review checklist will be utilized during the contract review process. Person Responsible: Dr. Robert Williams, Superintendent of Education. Anticipated Completion Date: February 1, 2023.

View Audit 18497

Finding 22089 (2022-001)

Material Weakness 2022

McLaren Health Care Corporation and Subsidiaries

MI

Subrecipient Monitoring Allowable Costs / Cost Principles Material Weakness

Finding Number: 2022-001 Condition: The Corporation?s controls in place for reporting submissions did not identify that guidelines were not followed related to the reporting of expenses. Planned Corrective Action: The Corporate Controller will request all Portal Submission Documents from the subsidi...

Finding Number: 2022-001 Condition: The Corporation?s controls in place for reporting submissions did not identify that guidelines were not followed related to the reporting of expenses. Planned Corrective Action: The Corporate Controller will request all Portal Submission Documents from the subsidiaries after their completion. The Corporate Controller and VP of Reimbursement will reconcile the portal submission documents completed by the subsidiaries to the documentation provided by our FEMA claims partner to ensure accuracy. If any discrepancies are noted, we will notify the subsidiary CFOs of the irregularities and request they edit the submission with the correct information. Once completed by the subsidiary CFOs, the updated submission documents will be re-reviewed to ensure accuracy. This process will continue until the portal submission documents are accurate. Contact person responsible for corrective action: Brian Balutanski, Vice President and Corporate Controller. Anticipated Completion Date: 06/01/2023

View Audit 20166

Finding 22034 (2022-002)

None 2022

The Charles Stark Draper Laboratory, Inc.

MA

Questioned Costs Allowable Costs / Cost Principles

c. Draper?s Reaction: Draper?s reaction follows verbatim. Draper concurs with DCAA?s finding and will ensure that only allowable compensation costs are claimed in the future by performing an additional review of claimed compensation costs prior to submittal of the annual Uniform Guidance submission...

c. Draper?s Reaction: Draper?s reaction follows verbatim. Draper concurs with DCAA?s finding and will ensure that only allowable compensation costs are claimed in the future by performing an additional review of claimed compensation costs prior to submittal of the annual Uniform Guidance submission. Issue Coordinator: Jamie Pereira, Director, Government Accounting & Compliance Est. Completion Date: November 2023

View Audit 27018 Questioned Costs: $1

Finding 22033 (2022-001)

None 2022

The Charles Stark Draper Laboratory, Inc.

MA

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

d. Draper?s Reaction: Draper?s reaction follows verbatim. Draper does not concur with DCAA?s finding that the atrium depreciation expense is unreasonable. As DCAA points out, Draper provided a reasonableness presentation to address the business need for the atrium on April 28, 2022 and provided add...

d. Draper?s Reaction: Draper?s reaction follows verbatim. Draper does not concur with DCAA?s finding that the atrium depreciation expense is unreasonable. As DCAA points out, Draper provided a reasonableness presentation to address the business need for the atrium on April 28, 2022 and provided additional analyses and evidence (October 2022) proving all subcontractors utilized on the project were competitively awarded, which establishes those costs were awarded at a fair and reasonable price. Draper reserves the right to negotiate this issue with the ACO. Draper has, and continues to support the Government?s requests in regards to the reasonableness of the atrium. Issue Coordinator: Jamie Pereira, Director, Government Accounting & Compliance Est. Completion Date: Pending DCMA Resolution

View Audit 27018 Questioned Costs: $1

Finding 22011 (2022-001)

Material Weakness 2022

Cardinal Local School District

OH

Questioned Costs Allowable Costs / Cost Principles Reporting § 200.430

The District will implement internal controls to monitor and ensure that the appropriate time and effort documentation of those employees paid in whole or in part with federal funds is on file to support the amount of time an employee works on a federal program. Compliance will be achieved by: 1...

The District will implement internal controls to monitor and ensure that the appropriate time and effort documentation of those employees paid in whole or in part with federal funds is on file to support the amount of time an employee works on a federal program. Compliance will be achieved by: 1)Develop a set of internal controls for time and effort documentation which provides reasonable assurance that charges are accurate, allowable, and allocable. (CFO/Treasurer) 2)Require time and effort documentation be filed in a timely manner with the CFO/Treasurer and maintained for records. (CFO/Treasurer ? Superintendent ? Direct Supervisor) 3)Require Direct Supervisor of employees to maintain time and effort documentation in accordance with District policies and procedures, as well as federal laws and guidelines. (Direct Supervisor) 4)Periodically monitor time and effort documentation in relationship to the percentage of time the employee spends on a federal program vs. non-federal. (CFO/Treasurer ? Superintendent - Direct Supervisor)

View Audit 19283 Questioned Costs: $1

Finding 22001 (2022-005)

Significant Deficiency 2022

Beltrami County

MN

Allowable Costs / Cost Principles Internal Control / Segregation of Duties Cash Management

RANDOM MOMENT STUDY (RMS) EMPLOYEE LISTING Federal Agency: U.S. Department of Health and Human Services and U.S. Department of Agriculture Federal Program Title: Medical Assistance Program (Medicaid Cluster), Temporary Assistance for Needy Families (TANF) and State Administrative Matching Grants for...

RANDOM MOMENT STUDY (RMS) EMPLOYEE LISTING Federal Agency: U.S. Department of Health and Human Services and U.S. Department of Agriculture Federal Program Title: Medical Assistance Program (Medicaid Cluster), Temporary Assistance for Needy Families (TANF) and State Administrative Matching Grants for Supplemental Nutrition Assistance Program (SNAP Cluster) Assistance Listing Number: 93.778, 93.558, and 10.561 Pass-Through Agency: Minnesota Department of Human Services and Minnesota Department of Agriculture Pass-Through Numbers: 2205MN5ADM, 2201MNTANF, and 222MN101S2520 Award Period: Year-Ended December 31, 2022 Type of Finding: Significant Deficiency in Internal Control over Compliance and Other Matter Recommendation: It is recommended the County review the RMS listings and employees within the department and account codes to ensure the proper employees are included on the listing and general ledger accounts. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: The County will conduct a training session for applicable health and human services staff regarding accurate reporting of the random moment studies. Name of the contact person responsible for corrective action plan: Anne Lindseth, Health and Human Services Director Planned completion date for corrective action plan: December 31, 2023

View Audit 18549

Finding 21976 (2022-026)

None 2022

State of Mississippi

MS

Questioned Costs Subrecipient Monitoring Allowable Costs / Cost Principles § 200.51 § 200.511 § 200.514

93.767 Children' s Health Insurance Program (CHIP) 93.778 Medical Assistance Program (Medicaid; Title XIX) Reporting 2022-026 Ensure Compliance with Reporting Requirements of the Children's Health Insurance Program (CHIP) and the Medical Assistance Program DOM Response: DOM Concurs. DOM identif...

93.767 Children' s Health Insurance Program (CHIP) 93.778 Medical Assistance Program (Medicaid; Title XIX) Reporting 2022-026 Ensure Compliance with Reporting Requirements of the Children's Health Insurance Program (CHIP) and the Medical Assistance Program DOM Response: DOM Concurs. DOM identified this issue during reporting of the March 31, 2022 federal expenditures. Per 45 CFR ?95.1, DOM has two years (seven quarters following the occurrence of the expenditure) to make adjusting entries to claim additional expenditures. DOM Does not Concur. DOM has fully corrected finding 2021-041 on the Schedule of Prior Year Findings. This finding is based on OSA's belief that DOM should be using state tax data to determine eligibility of applicants. However, DOM does not have statutory authority to access this information. DOM utilizes all available tools, in accordance with the CMS approved state plan, to evaluate the eligibility of applicants; thus, this finding is Fully Corrected as DOM is complying with all CMS regulations and the approved state plan. Further, DOM performed training and made operational changes for all other issues noted in finding 2021-041. There are internal controls in place to limit the number of errors and annual training is conducted that includes examples of issues noted, along with preventive and corrective solutions. Human error is a part of any manual process and cannot be completely eliminated. DOM Corrective Action Plan: a. DOM made adjustments to the costs identified in this audit finding in the June 30, 2023 federal reports. In addition, a reconciliation has been added to the spreadsheets used for reporting of federal expenditures to ensure all expenditures are reported properly going forward. b. Christine Woodberry c. Completed July 24, 2023

View Audit 18740 Questioned Costs: $1

Finding 21943 (2022-032)

Material Weakness 2022

State of Mississippi

MS

Subrecipient Monitoring Allowable Costs / Cost Principles § 200.303 § 200.400

21.023 COVID-19 Emergency Rental Assistance (ERA) 21.026 COVID-19 Homeowners Assistance Fund (HAF) Monitoring 2022-032 Strengthen Controls to Ensure Compliance with Federal Monitoring Requirements Response: DFA was simply a pass-through agency of the funds and was required to draw down the funds...

21.023 COVID-19 Emergency Rental Assistance (ERA) 21.026 COVID-19 Homeowners Assistance Fund (HAF) Monitoring 2022-032 Strengthen Controls to Ensure Compliance with Federal Monitoring Requirements Response: DFA was simply a pass-through agency of the funds and was required to draw down the funds in light of an impending federal deadline. It is not possible for DFA to conduct monitoring as it has not been appropriated any funds nor does it have the personnel or other resources to do so. Corrective Action Plan: A. Mississippi Home Corporation should hire a 3rd party monitor. B. Mississippi Home Corporation Director Scott Spivey C. N/A D. N/A

View Audit 18740

Finding 21929 (2022-027)

Significant Deficiency 2022

State of Mississippi

MS

Questioned Costs Allowable Costs / Cost Principles School Nutrition Programs

10.558 Child and Adult Care Food Program Allowable Cost 2022-027 Strengthen Controls to Ensure Compliance with Allowable Costs Requirements of the Child and Adult Care Food Program (CACFP). Response: The MDE does not concur with this finding. The OSA did not identify weaknesses in the MDE subrec...

10.558 Child and Adult Care Food Program Allowable Cost 2022-027 Strengthen Controls to Ensure Compliance with Allowable Costs Requirements of the Child and Adult Care Food Program (CACFP). Response: The MDE does not concur with this finding. The OSA did not identify weaknesses in the MDE subrecipient monitoring process, such as in the selection of organizations, the monitoring cycle, or monitoring procedures. Instead, OSA identified potential errors made by individual participating organizations. The MDE has a robust system of internal controls and subrecipient monitoring system for the CACFP. In addition to meeting USDA requirements for monitoring, the MDE Office of Child Nutrition (OCN) also employs a risk -based process to select CACFP subrecipients for review and to determine the scope of monitoring. The MDE routinely exceeds the USDA requirement to monitor 33.3% of participating organizations annually. For Program Year (PY) 2021-2022, 60.3% of participating organizations were reviewed to provide additional oversight of subrecipients. When the MDE identifies instances of noncompliance, it requires participating organizations to take appropriate corrective action. For organizations that are very high-risk, the MDE employs the USDA Serious Deficiency process in accordance with 7 C.F.R. 226.6. The MDE already has a process to recover funds from an organization if an error is discovered during subrecipient monitoring. In PY 2022, the MDE assessed $132,207 in repayments of USDA funds and required an additional $40,577 in unallowable costs to be returned to local CACFP accounts. Finally, MDE staff was not included in the reviews of subrecipients by OSA, so the MDE was unable to verify the accuracy of the proposed unallowable costs before publication of the report from OSA. MDE staff will need to review documentation from OSA, and source documentation retained at CACFP sites before it can make a final determination regarding the potential unallowable cost determinations against sponsors. Corrective Action Plan: A. The MDE will review documentation provided by OSA of potential questioned costs and review source documentation held by the subrecipients to determine the amount of unallowable costs. If confirmed, the MDE will recover any unallowable costs in accordance with USDA policies. This review will be completed by January 22, 2024. Susie Evans, CACFP Director for the MDE OCN, will oversee the review. B. The MDE will continue to assess its CACFP monitoring and continue to strengthen the process while remaining in compliance with USDA regulations.

View Audit 18740 Questioned Costs: $1

Corrective Action Plans

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