Corrective Action Plans

Finding 20322 (2022-002)

None 2022

AL

Special Tests & Provisions Subrecipient Monitoring Allowable Costs / Cost Principles

Corrective Action Plan: Management has arranged for grants training for relevant employees. Directors over the City's ESG federal program will develop procedures with the City's Finance Department in order to ensure that the City meets the award requirements for both ESG and ESG- CV funds. Perso...

Corrective Action Plan: Management has arranged for grants training for relevant employees. Directors over the City's ESG federal program will develop procedures with the City's Finance Department in order to ensure that the City meets the award requirements for both ESG and ESG- CV funds. Person Responsible: Dr. Meghan V. Thomas, Director of Community Development Aaron L. Saxton, Acting Director of Finance

View Audit 28073

Finding 20318 (2022-001)

Material Weakness 2022

Advance Community Health

NC

Allowable Costs / Cost Principles HUD Housing Programs Reporting

Advance Community Health was inundated with HRSA reporting due to the multiple funding we received in response to the Covid-19 Pandemic. In an effort to help health centers deal expeditiously with the Covid crisis some of the funding was given in advance with reporting requirements to follow. The ...

Advance Community Health was inundated with HRSA reporting due to the multiple funding we received in response to the Covid-19 Pandemic. In an effort to help health centers deal expeditiously with the Covid crisis some of the funding was given in advance with reporting requirements to follow. The rush to get funding out to address the Covid-19 pandemic crisis resulted in reporting requirements that were developed and implemented very quickly, and the reporting requirements were confusing to many health centers. The Provider Relief Funding was one of the instances in which funding was given in advance with reporting requirements to follow. As a result of the confusion surrounding these last-minute reporting requirements, we believe that the former CFO inadvertently omitted certain revenue that perhaps should have been included in the Provider Relief Funding (PRF) report and there was no clear explanation in the narrative section as to why these revenues were omitted. We attempted to recall and amend the PRF report but were told by the PRF reporting team that we are unable to amend the report at this time. However, should the opportunity to amend the PRF Report occur, we will make the appropriate amendment to the PRF report with a reconciliation and narrative that will support the earning of the PRF funding. To prevent future occurrences of where it is not clear why revenue items are being omitted or included on a federal provider relief report, a reconciliation will be prepared that ties the revenue section of the PRF report with the revenue section of the internal financial statements. The reconciliation will clearly outline what is included in and what is omitted from the report and establish clear documentation to strongly support the amounts on the PRF report. A narrative documenting why certain revenue is omitted should be attached, which will clearly and concisely explain how the revenue amounts on the PRF report were derived. The reconciliation will be prepared by our senior accountant and reviewed by the CFO. Tiffany Robertson, the interim CFO and Rhonda Payne, our Chief Compliance Officer will be responsible for and will continue to assess our internal reporting processes. We will continue to conduct staff training as deemed necessary to ensure compliance with federal reporting requirements for PRF funding. The training and procedure should be implemented by December 2022.

View Audit 26499

Finding 20313 (2022-002)

Material Weakness 2022

Erie Elementary Charter School

IL

Allowable Costs / Cost Principles Procurement, Suspension & Debarment Matching / Level of Effort / Earmarking § 200.302 § 200.303 § 200.305 § 200.318 § 200.319

FINDING NUMBER: 2022-002 Condition: The Organization is either lacking or has non-conforming written policies and procedures for the following administrative functions, required by the Uniform Guidance: 1. Financial Management - 2 CFR 200.302(b)(6) 2. Allowable Costs - 2 CFR 200.302(b)(7) 3. Federal...

FINDING NUMBER: 2022-002 Condition: The Organization is either lacking or has non-conforming written policies and procedures for the following administrative functions, required by the Uniform Guidance: 1. Financial Management - 2 CFR 200.302(b)(6) 2. Allowable Costs - 2 CFR 200.302(b)(7) 3. Federal payment - 2 CFR 200.305(b)(1) 4. Procurement - 2 CFR 200.318(a) and 2 CFR 200.318(c)(1) 5. Competition - 2 CFR 200.319(d) 5. Competition ? 2 CFR 200.319(d) 6. Methods of procurement to be followed - 2 CFR 200.320 7. Compensation (Personal Services) - 2 CFR 200.430(a)(1) 8. Compensation (Fringe Benefits - Leave) - 2 CFR 200.431(b)(1) 9. Relocation costs of employees - 2 CFR 200.464(a)(2) 10. Travel costs - 2 CFR 200.474 Planned Corrective Action: Management agrees with the finding and plans to review Uniform Guidance, modify and create policies and procedures where necessary to meet administrative Uniform Guidance requirements. The adopted policies and procedures will be reviewed and approved by the School Board of Directors at the organization?s next scheduled Board meeting. School Representative Responsible for Corrective Action: Carlos Perez, Executive Director Anticipated Completion Date: June 14, 2023

View Audit 25279

Finding 20278 (2022-001)

Significant Deficiency 2022

Epic Academy

IL

Allowable Costs / Cost Principles Subrecipient Monitoring Cash Management § 200.410

Identifying Number: 2022-001 Finding: The following discrepancies and inconsistencies were identified: administrative procedures and requirements of the grantor were not followed; there were no proper review or approval of required reporting prior to submission. Contact person responsible for corr...

Identifying Number: 2022-001 Finding: The following discrepancies and inconsistencies were identified: administrative procedures and requirements of the grantor were not followed; there were no proper review or approval of required reporting prior to submission. Contact person responsible for corrective action: Kevyn Harmon, Senior Director of Finance & Administration Corrective Action: All personnel involved with the ESSER III ? MFT Programs undergo training on the all the processes and requirements to administer the programs, and management will perform proper review of all claims for reimbursement. In additional, an annual update on the procedures and the requirements to ensure propriety and accuracy. Proposed Completion Date: EPIC Academy will complete implementation of the above procedures by November 30, 2022.

View Audit 23750

Finding 20277 (2022-002)

None 2022

Epic Academy

IL

Questioned Costs Allowable Costs / Cost Principles Subrecipient Monitoring § 200.302 § 200.303 § 200.308 § 200.410 § 200.430

Identifying Number: 2022-002 Finding: The following discrepancies and inconsistencies were identified: administrative procedures and requirements of the grantor were not followed; there were no proper review or approval of required reporting prior to submission. Contact person responsible for corr...

Identifying Number: 2022-002 Finding: The following discrepancies and inconsistencies were identified: administrative procedures and requirements of the grantor were not followed; there were no proper review or approval of required reporting prior to submission. Contact person responsible for corrective action: Kevyn Harmon, Senior Director of Finance & Administration Corrective Action: All personnel involved with the Title programs undergo training on the all the processes and requirements to administer the programs, and management will perform proper review of all claims for reimbursement. In additional, an annual update on the procedures and the requirements to ensure propriety and accuracy. Proposed Completion Date: EPIC Academy will complete implementation of the above procedures by November 30, 2022.

View Audit 23750 Questioned Costs: $1

Finding 20271 (2022-002)

Significant Deficiency 2022

Healthwest

MI

Questioned Costs Allowable Costs / Cost Principles Period of Performance § 200.309

Finding 2022-002 ? Considered a significant deficiency in internal control over compliance/immaterial non-compliance Federal Grant ? ALN 93.958 Condition ? During testing it was noted that FICA costs were overcharged by $14,047. Corrective Action ? HealthWest will review its methods for determini...

Finding 2022-002 ? Considered a significant deficiency in internal control over compliance/immaterial non-compliance Federal Grant ? ALN 93.958 Condition ? During testing it was noted that FICA costs were overcharged by $14,047. Corrective Action ? HealthWest will review its methods for determining allocations of fringe benefits to their grants. Review and, any necessary, updates to daily procedures and processes are occurring. All finance staff and any HealthWest staff assigned to grants will be required to obtain grants specific training annually. Finally, monthly monitoring of all expenses will be reviewed. Contract Person ? Brandy Carlson, Chief Financial Officer Anticipated Completion Date ? June 30, 2023

View Audit 21044 Questioned Costs: $1

Finding 20251 (2022-015)

Material Weakness 2022

Doral Academy of Nevada

NV

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

Finding Number: 2022-015 ? Reporting 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. R...

Finding Number: 2022-015 ? Reporting 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 20771

Finding 20243 (2022-013)

Material Weakness 2022

Doral Academy of Nevada

NV

Allowable Costs / Cost Principles School Nutrition Programs 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 20771

Finding 20242 (2022-016)

Material Weakness 2022

Doral Academy of Nevada

NV

Reporting School Nutrition Programs Internal Control / Segregation of Duties § 200.303

Finding Number: 2022-016 ? 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: 2022-016 ? 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 20771

Finding 20181 (2022-010)

Material Weakness 2022

Hartford Union High School District

WI

Allowable Costs / Cost Principles School Nutrition Programs

District Response and Corrective Action Plan: The Business Office has implemented new procedures requiring requisitions prior to every purchase. All purchases for the 2022-2023 school will have approval. Timecards are approved in Skyward via the Organizational Chart by each employee?s supervisor.

View Audit 28366

Finding 20138 (2022-001)

Significant Deficiency 2022

Siloam Springs School District

AR

Questioned Costs Allowable Costs / Cost Principles Internal Control / Segregation of Duties § 200.439

2022-001 Allowable Costs/Cost Principles The ESSER Coordinator, Shane Patrick, Assistant Superintendent of Operations and the Chief Financial Officer, Terri Raskiewicz, are reviewing all actual expenses that pertain to COVID-19-Education Stabilization Fund. Shane Patrick did reach out to DESE and D...

2022-001 Allowable Costs/Cost Principles The ESSER Coordinator, Shane Patrick, Assistant Superintendent of Operations and the Chief Financial Officer, Terri Raskiewicz, are reviewing all actual expenses that pertain to COVID-19-Education Stabilization Fund. Shane Patrick did reach out to DESE and DESE provided our district with a letter stating these expenses would have been approved had we sent in a justification form. This item was approved by DESE in our overall ESSER plan. We implemented on July 1, 2022

View Audit 19455 Questioned Costs: $1

Finding 20131 (2022-008)

Significant Deficiency 2022

Edgecombe County

NC

Allowable Costs / Cost Principles Eligibility Significant Deficiency

Finding: 2022-008 Significant Deficiency over Eligibility Name of contact person: Lynda Kennedy and Narkeisha Bryant, TANF Supervisors Corrective Action: Files will be reviewed internally by TANF Supervisors and Quality Control Workers to ensure all required e...

Finding: 2022-008 Significant Deficiency over Eligibility Name of contact person: Lynda Kennedy and Narkeisha Bryant, TANF Supervisors Corrective Action: Files will be reviewed internally by TANF Supervisors and Quality Control Workers to ensure all required evidence is received and documented properly. Workers will be retrained on what files should contain and the importance of complete and accurate record keeping. Workers will be retrained to ensure that all files include verifications, documented sources of income and verify that those amounts will match information in NCFAST. The workers will be retrained to ensure that the results found or documentation in case notes will clearly indicate what actions were performed and the results of those actions. Proposed Completion Date: Training and corrections will be completed by March 1, 2023. Case record reviews are currently being conducted and will be ongoing.

View Audit 22511

Finding 20130 (2022-010)

Significant Deficiency 2022

Edgecombe County

NC

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

Finding: 2022-010 Significant Deficiency over Eligibility Name of contact person: Eric Evans, County Manager Corrective Action: The County understands the importance of implementing these policies and will work to have these policies adopted by the Board of Com...

Finding: 2022-010 Significant Deficiency over Eligibility Name of contact person: Eric Evans, County Manager Corrective Action: The County understands the importance of implementing these policies and will work to have these policies adopted by the Board of Commissioners by the end of the fiscal year using the model policies developed by the UNC School of Government. Proposed Completion Date: June 30, 2023

View Audit 22511

Finding 20129 (2022-009)

Significant Deficiency 2022

Edgecombe County

NC

Allowable Costs / Cost Principles Eligibility Significant Deficiency

Finding: 2022-009 Significant Deficiency over Eligibility Name of contact person: Donna Barnes and Linda Jackson, FNS Supervisors Corrective Action: Files will be reviewed internally by FNS Supervisors an Quality Control Workers to ensure that records containt ...

Finding: 2022-009 Significant Deficiency over Eligibility Name of contact person: Donna Barnes and Linda Jackson, FNS Supervisors Corrective Action: Files will be reviewed internally by FNS Supervisors an Quality Control Workers to ensure that records containt all required evidence and is received and documented properly. Workers will be retrained on what files should contain and the importance of complete and accurate record keeping. Workers will be retrained to ensure all files will include verifications, documented sources of income and verify that those amounts will match information in NCFAST. The workers will be retrained to ensure that results found or documentation in case notes will clearly indicate what actions were performed and the results of those actions. Proposed Completion Date: Training and corrections will be completed by March 1, 2023. Case record reviews are currently being conducted and will be ongoing.

View Audit 22511

Finding 20116 (2022-001)

Material Weakness 2022

Albany Area Primary Health Care, Inc.

GA

Allowable Costs / Cost Principles HUD Housing Programs Reporting

Views of Responsible Officials and Planned Corrective Actions ? AAPHC has evaluated the lost revenue calculation used in the period one Provider Relief Fund reporting and has determined that there would still have been sufficient lost revenue incurred to fully obligate the funds received if 340b pha...

Views of Responsible Officials and Planned Corrective Actions ? AAPHC has evaluated the lost revenue calculation used in the period one Provider Relief Fund reporting and has determined that there would still have been sufficient lost revenue incurred to fully obligate the funds received if 340b pharmacy revenue had been included in the calculation. Management intends to correct the lost revenue previously reported when completing the required reporting for the period four funding cycle. Responsible Official: Milton Jordan, Chief Financial Officer Anticipated completion date: March 31, 2023

View Audit 21769

Finding 20109 (2022-001)

Material Weakness 2022

Adventist Health System/west

CA

Questioned Costs Allowable Costs / Cost Principles Reporting

Finding 2022-001 - Internal control deficiency and noncompliance over the allowable activities, allowable costs/cost principles, and reporting compliance requirements Adventist Health had several phone conversations with HRSA over allowable expenses for the ARP program. We explained we had been usi...

Finding 2022-001 - Internal control deficiency and noncompliance over the allowable activities, allowable costs/cost principles, and reporting compliance requirements Adventist Health had several phone conversations with HRSA over allowable expenses for the ARP program. We explained we had been using lost revenue method for prior period reporting. We asked specifically what we can use and not use. We were informed to take the values (in whole) to use as expenses. We were following the guidance we had received by the HRSA employees. The information was confirmed on our methodology for allowable expenses by 2 different employees. Contact Person: Manager, Tax & Audit ? David Dumitru. Expected Completion Date: October 2023

View Audit 20475 Questioned Costs: $1

Finding 20101 (2022-001)

Material Weakness 2022

South Kitsap School District No. 402

WA

Subrecipient Monitoring Matching / Level of Effort / Earmarking Internal Control / Segregation of Duties

Finding ref number: 2022-001 Finding caption: The District did not have adequate internal controls for ensuring compliance with wage rate requirements. Name, address, and telephone of District contact person: Andrea Nokell 2689 Hoover Ave SE Port Orchard, WA 98366 360-874-7015 Corrective action th...

Finding ref number: 2022-001 Finding caption: The District did not have adequate internal controls for ensuring compliance with wage rate requirements. Name, address, and telephone of District contact person: Andrea Nokell 2689 Hoover Ave SE Port Orchard, WA 98366 360-874-7015 Corrective action the auditee plans to take in response to the finding: The District will obtain weekly certified payroll reports from all contractors and subcontractors performing public works projects funded with Federal funds. Anticipated date to complete the corrective action: Immediately.

View Audit 21474

Finding 20093 (2022-001)

Material Weakness 2022

Siouxland Community Health Center

IA

Allowable Costs / Cost Principles Reporting

In completing the annual financial audit for Siouxland Community Health Center (SCHC), and in particular the Provider Relief Fund dollars in the amount of $463,105 received in April and June 2020, staff at FORVIS determined SCHC had made an error in reporting its use of funds. SCHC chose Option 3, w...

In completing the annual financial audit for Siouxland Community Health Center (SCHC), and in particular the Provider Relief Fund dollars in the amount of $463,105 received in April and June 2020, staff at FORVIS determined SCHC had made an error in reporting its use of funds. SCHC chose Option 3, which included a comparison between actual lost patient revenue and budgeted patient revenue for each of the six quarters from 1/1/20 to 6/30/21, and inadvertently entered incorrect actual dollars spent compared to budgeted dollars. The total amount of lost revenue reported was originally reported as $1,542,234, but the revised amount is $1,340,781, a difference of $201,453. This error did not result in any funds be returned. Jan Anderson, CFO, corrected the report on the Provider Relief portal in July 2022.

View Audit 19443

Finding 20079 (2022-001)

Significant Deficiency 2022

District 7 Human Resources Development Council

MT

Allowable Costs / Cost Principles § 200.447

Re: Management Response to - Section Ill - Federal Awards Findings & Questioned Costs During Fiscal Year 2022 HRDC management acknowledges that there were key changes within the organizational structure including changes to personnel within the employment & training department, as well as, various o...

Re: Management Response to - Section Ill - Federal Awards Findings & Questioned Costs During Fiscal Year 2022 HRDC management acknowledges that there were key changes within the organizational structure including changes to personnel within the employment & training department, as well as, various other operating changes. Included below is management's response to Section Ill - Federal Awards Findings & Questioned Costs for the Fiscal Audit ended June 30, 2022. 2022 - 001 INSURANCE COVERAGE - ALLOWABLE COSTS PRINCIPLES The agency carries adequate insurance coverage for all vehicles and property as required by the Code of Federal Regulations. The agency has a written vehicle inspection and maintenance procedure which includes detailed procedures for vehicle inspection, maintenance, reporting of problems, cleaning procedures, and recordkeeping. The agency followed its procedures for vehicle inspections and maintenance and minor observable damage was noted to the vehicle. Shortly after the inspection, key staffing changes occurred and the manager failed to follow up on the report nor continue to note the damage on subsequent monthly reports. Upon return of the leased vehicle to the dealership, the dealership noted hail damage. While the damage was noted in our inspection reports, the length of time to report such a claim to insurance had expired and would not be covered through an insurance claim. Under CFR Section 200.447 Insurance and Indemnification, losses which could have been covered by permissible insurance are unallowable, however costs incurred because of losses not covered under nominal insurance coverage provided in keeping with sound management practice, and minor losses not covered by insurance are allowable. The agency has interpreted this provision as a loss not covered under nominal insurance coverage provided in keeping with sound management practices which would be an allowable cost under CFR 200.447. The Auditors disagreed with our interpretation of the regulations. The agency will continue to inspect vehicles on a regular basis under procedures that have been in effect and are part of our control systems. In addition program managers and directors will be instructed to continue to include any damage on vehicle inspections reports until fixed. The agency believes this is an isolated instance but will continue to try to ensure that all outstanding items are resolved during any staff transition period. The agency also will consider the interpretation of CFR 200.447 for further clarification on what may be included as allowable costs from granting Agencies and federal regulations.

View Audit 18603

Finding 19943 (2022-005)

Material Weakness 2022

Floyd County

IN

Internal Control / Segregation of Duties Allowable Costs / Cost Principles Material Weakness § 200.1 § 200.303

FINDING 2022-005 Contact Person: Donald Lopp, Director of Operations and Planning Contact Phone Number: (812) 948.4110 Views of Responsible Official: Corrective Action As Director of Operations and Planning, the American Rescue Plan quarterly reports are submitted through the office. During the audi...

FINDING 2022-005 Contact Person: Donald Lopp, Director of Operations and Planning Contact Phone Number: (812) 948.4110 Views of Responsible Official: Corrective Action As Director of Operations and Planning, the American Rescue Plan quarterly reports are submitted through the office. During the audit, it appears eight of the ten audit items had the correct cumulative expenditure but those figures were not also applied to the current quarter expenditures. The US Treasury portal will not allow for the submission of the quarterly report unless the cumulative obligations and expenditures match. Description of Corrective Action Plan: Prior to submission, quarterly reports will be printed and reviewed by secondary staff in Office to review submission correctness. Anticipated Completion Date: This method will be instituted at the July 2023 quarterly report submission.

View Audit 23517

Finding 19926 (2022-002)

Material Weakness 2022

Vigo County

IN

Questioned Costs Allowable Costs / Cost Principles § 200.302 § 200.303 § 200.403

FINDING 2022-002 Finding Subject: Child Support Enforcement - Activities Allowed or Unallowed, Allowable Costs/Cost Principles Summary of Finding: An effective internal control system was not in place at the County to ensure compliance with the requirements related to the grant agreement and the Act...

FINDING 2022-002 Finding Subject: Child Support Enforcement - Activities Allowed or Unallowed, Allowable Costs/Cost Principles Summary of Finding: An effective internal control system was not in place at the County to ensure compliance with the requirements related to the grant agreement and the Activities Allowed or Unallowed and Allowable Costs/Cost Principles compliance requirements. The payment of the Deputy Court Clerk?s wages and benefits out of the Clerk?s Incentive Fund supplanted not supplemented the employee?s salary which is unallowable. Contractual payment did not match the amount stated in the contract. The County did not have an allowable cost policy. Contact Person Responsible for Corrective Action: James W. Bramble Contact Phone Number and Email Address: 812-462-3361 james.bramble@vigocounty.in.gov Views of Responsible Officials: We concur with the finding. Description of Corrective Action Plan: Internal control procedures will be evaluated to determine needed changes to correct the above noted compliance requirements over Child Support. Changes will be made to the 2024 budget to correct the payroll related issue so the Clerk?s Incentive Fund. Contracts will be reviewed to ensure the contract amounts are current. The County will develop an allowable cost policy. Anticipated Completion Date: January 1, 2024

View Audit 23400 Questioned Costs: $1

Finding 19870 (2022-001)

None 2022

Commonwealth of Puerto Rico Department of Natural and Environmental Resources

PR

Subrecipient Monitoring Allowable Costs / Cost Principles Reporting § 200.512

Finding No. 2022-001 Audit Requirements for Auditees ? Report Submission Condition found The data collection form and the reporting package for the year ended on June 30, 2022 was not submitted to the Federal Audit Clearinghouse within the timeframe prescribed by the Uniform Guidance. Views of Res...

Finding No. 2022-001 Audit Requirements for Auditees ? Report Submission Condition found The data collection form and the reporting package for the year ended on June 30, 2022 was not submitted to the Federal Audit Clearinghouse within the timeframe prescribed by the Uniform Guidance. Views of Responsible Officials and Corrective Action Plan Department of Natural and Environmental Resources (DNER), Puerto Rico Infrastructure Financing Authority (PRIFA), Puerto Rico Aqueduct and Sewer Authority (PRASA), entered on December 27, 2016, into a Memorandum of Understanding (MOU), subsequently amended on June 21, 2018, to include the Fiscal Agency and Financial Advisory Authority (FAFAA). Under the MOU, as amended, each party has agreed to assume specific responsibilities in connection with the operations of the Revolving Fund pursuant to the Operating Agreement entered between the EPA and the DNER on July 25, 2018. Pursuant to the MOU, as amended, DNER will remain as the administrator for the Revolving Fund, PRIFA will act as the operating agent to provide assistance with the financial and accounting activities, and FAFAA will conduct the financial capabilities analysis of any eligible assistance recipient of funds, provide the necessary information to the DNER and PRIFA to the extent as possible for the development of the different programs compliance reports reviews, provide oversight as fiscal agent, financial advisor and information agent of the Commonwealth to ensure that the monies are safeguarded in a trust structure and to ensure the proper administration. The data collection form and the reporting package were not file on time due to lack and availability of funds to cover expenses related to the audit process and other expenses related to the administrative responsibilities assigned in the Memo of Understanding to PRIFA. Management is currently working with DNER a Subaward, as required by the Environmental Protection Agency (EPA) and as established in the MOU, as amended, in order to respond to the lack of funding to cover all the related expenses for the administrative responsibilities assigned to PRIFA. EPA has been informed and communication will be maintained until the Subaward is in force. Management plans are to file the data collection form for the fiscal year ended on June 30, 2022 on or before June 30, 2023 and the data collection form for the fiscal year ending on June 30, 2023 on or before December 31, 2023, which will result in the elimination of the finding. Name (s) of the Contact Person (s) Responsible for Corrective Action Francisco Pares, Secretary of the Treasury Department, Eduardo Rivera Cruz, Executive Director Puerto Rico Infrastructure Financing Authority and Anais Rodriguez Vega, Secretary Puerto Rico Department of Natural and Environmental Resources Anticipated Completion Date June 2023

View Audit 23582

Finding 19851 (2022-002)

Material Weakness 2022

Highlands School District

PA

Allowable Costs / Cost Principles Cash Management Reporting

2022-002 Activities Allowed or Unallowed Response Highlands School District agrees with the finding and the recommended procedures and is attempting to implement improvements over reporting.

View Audit 23491

Finding 19812 (2022-011)

Material Weakness 2022

State of Washington C/o Office of Financial Management

WA

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

Finding: The Washington State Department of Transportation did not have adequate internal controls over and did not comply with quality assurance program requirements to ensure materials conformed to approved plans and specifications, and that only qualified personnel performed testing for projects...

Finding: The Washington State Department of Transportation did not have adequate internal controls over and did not comply with quality assurance program requirements to ensure materials conformed to approved plans and specifications, and that only qualified personnel performed testing for projects funded by the Highway Planning and Construction Cluster. Questioned Costs: CFDA # 20.205 20.205 COVID-19 20.219 20.224 Amount $0 Status: Corrective action in progress Corrective Action: The Department is committed to ensuring that our grant programs comply with federal regulations related to quality assurance (QA) requirements and safeguarding that materials and workmanship conform to approved plans and specifications through testing, inspections, or certifications. The Department continues to work closely with the Federal Highway Administration (FHWA) on the QA program and has received positive feedback on the strength of the program. In addition, the Department is currently investing in the Unifier software to replace separate QA legacy systems, which will allow shared data and provide built-in controls to help prevent the issues identified in the audit. Depending on funding and programming times, the Department estimates Unifier to be online for the QA program within five years. To address the audit recommendations, the Department?s Construction Division will examine current policies and procedures/practices related to the audit issues. The Department will: ? Update policies and procedures, including the Department?s Construction Manual (M46-01), as needed to ensure staff practices meet federal regulations. Updates will also include other clarifications to address documentation and evidence of compliance, and a reasonable level of controls regarding materials testing, inspections, certification, acceptance, and tester certifications. ? Obtain approval of updates to the Construction Manual from the FHWA. ? Communicate changes in policies and procedures to division staff and stakeholders. ? Provide training to Project Engineering Office staff to emphasize QA program requirements. The conditions noted in this finding were previously reported in findings 2021-011, 2020-017 and 2019-019. Completion Date: Estimated June 2024 Agency Contact: Jesse Daniels External Audit Liaison PO Box 47320 Olympia, WA 98504-7320 (360) 705-7035 danielje@wsdot.wa.gov

View Audit 23129

Finding 19809 (2022-008)

Significant Deficiency 2022

State of Washington C/o Office of Financial Management

WA

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

Finding: The Washington State Department of Transportation did not have adequate internal controls to ensure supervisors reviewed and approved payroll journals for the Highway Planning and Construction Cluster. Questioned Costs: Assistance Listing # 20.205 20.205 COVID-19 20.219 20.224 Amoun...

Finding: The Washington State Department of Transportation did not have adequate internal controls to ensure supervisors reviewed and approved payroll journals for the Highway Planning and Construction Cluster. Questioned Costs: Assistance Listing # 20.205 20.205 COVID-19 20.219 20.224 Amount $0 Status: Corrective action in progress Corrective Action: The Department is committed to ensuring adequate internal controls are established for processing payroll journals. Currently, the Department: ? Sends payroll journals electronically via Adobe Acrobat Sign on day four of payroll processing. ? Generates system automated emails, which are sent to the reviewer each day the journal is unsigned. ? Reconciles unsigned payroll journals and will follow up with responsible staff. To further improve controls over timely approval and return of payroll journals, the Department will: ? Continue to review existing internal controls to assess their effectiveness and make improvements as needed. ? Review the Payroll Manual to ensure directions, guidelines, and expectations around the payroll journal approval are clearly defined. ? Evaluate the appropriateness of establishing a timeline for returning signed payroll journals for incorporation into the Payroll Manual. Completion Date: Estimated June 2024 Agency Contact: Jesse Daniels External Audit Liaison PO Box 47320 Olympia, WA 98504-7320 (360) 705-7035 danielje@wsdot.wa.gov

View Audit 23129

Corrective Action Plans

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