Corrective Action Plans

Finding 7887 (2022-001)

Material Weakness 2022

WA

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

CORRECTIVE ACTION PLAN FOR FINDINGS REPORTED UNDER UNIFORM GUIDANCE Highline School District No. 401 September 1, 2021 through August 31, 2022 This schedule presents the corrective action planned by the District for findings reported in this report in accordance with Title 2 U.S. Code of Federal R...

CORRECTIVE ACTION PLAN FOR FINDINGS REPORTED UNDER UNIFORM GUIDANCE Highline School District No. 401 September 1, 2021 through August 31, 2022 This schedule presents the corrective action planned by the District for findings reported in this report in accordance with Title 2 U.S. Code of Federal Regulations (CFR) Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Finding ref number: 2022-001 Finding caption: The District did not have adequate internal controls for ensuring compliance with federal wage requirements. Name, address, and telephone of District contact person: Andrew Burgess, Controller 15675 Ambaum Blvd SW Burien, WA 98166 (206) 631-3201 Corrective action the auditee plans to take in response to the finding: For Federally funded public works contracts, the district will collect and review all weekly certified payroll reports from contractors and subcontractors to confirm laborers were paid proper prevailing wages Further, the district will ensure that staff (both current and future) that oversee and monitor the distribution and use of Federal funds are trained and made aware of this requirement, and the differences between prevailing wage requirements at the state versus the Federal level. Anticipated date to complete the corrective action: August 31, 2024

View Audit 10286

Finding 7824 (2022-002)

Material Weakness 2022

Mobility International, USA

OR

Allowable Costs / Cost Principles § 200.430

Finding Reference # 2022-002, Material Weakness in internal control over compliance and instance of immaterial noncompliance. Compliance Requirement: Allowable Costs Auditor’s Recommendation: We recommend management return to the previous process for recording payroll costs to grants and programs by...

Finding Reference # 2022-002, Material Weakness in internal control over compliance and instance of immaterial noncompliance. Compliance Requirement: Allowable Costs Auditor’s Recommendation: We recommend management return to the previous process for recording payroll costs to grants and programs by which individual employee salaries and wages are allocated based on actual time spent on various activities and are directly charged to the respective activity cost centers benefited. Corrective Action: In 2022, we began outsourcing our payroll processing to Paychex, Inc. During that transition, we changed our process for entering payroll into our accounting software and began using aggregation of total employee hours. Management will return to the practice of allocating payroll per employee instead of using aggregate totals, effective immediately. Management will also contact grantors to resolve any errors in cost reimbursements resulting from 2022 payroll allocation corrections.

View Audit 10152

Finding 7787 (2022-005)

Material Weakness 2022

Televerde Foundation, Inc.

AZ

Questioned Costs Allowable Costs / Cost Principles § 200.303

U.S. Department of the Treasury Passed through State of Arizona, Maricopa County (Maricopa County), Federal Financial Assistance Listing #21.027, PE386182260A4 2022 Coronavirus State and Local Fiscal Recovery Funds Finding Summary: The auditors identified certain expenditures tested lacked prop...

U.S. Department of the Treasury Passed through State of Arizona, Maricopa County (Maricopa County), Federal Financial Assistance Listing #21.027, PE386182260A4 2022 Coronavirus State and Local Fiscal Recovery Funds Finding Summary: The auditors identified certain expenditures tested lacked proper documentation of review and approval and those expenditures submitted for reimbursement were based on budgeted amounts expended rather than actual with no true up performed. They also identified one expenditure deemed potentially unallowable. Management’s Response and Corrective Action Plan: Televerde Foundation has experienced significant growth from inception in March 2020 to fiscal year ended December 31, 2022. We have grown from contributions and grants of $83 thousand and $50 thousand, respectively, in March 2020 to contributions and grants of $236 thousand and $978 thousand, respectively, as of December 31, 2022. During this same period, Televerde Foundation went from 3 employees to 21 employees and experienced significant turnover in finance staff including 2 CFO’s, 2 Controllers, and four staff accountants. The growth combined with lack of a consistent finance team is the primary cause of this deficiency. To address the deficiency, management will perform the actions below. Management will leverage our general ledger to retain documentation for approval and review of expenditures. We will utilize actual amounts for expenditures and in circumstances where budgeted amounts are needed, we will perform a true-up on a quarterly basis. Responsible Individuals: Michelle Cirocco, Executive Director Anticipated Completion Date: July 2023

View Audit 10124 Questioned Costs: $1

Finding 7720 (2022-005)

Material Weakness 2022

Breathitt County Fiscal Court

KY

Questioned Costs Matching / Level of Effort / Earmarking Procurement, Suspension & Debarment

The Breathitt County Fiscal Court has adopted the KY Model Procurement Code, effective in August 2023. In addition the Fiscal Court hired a new Applicant Agent in January 2023 and transitioned all FEMA related work to the in-house Applicant Agent in August of 2023 rather than contracting services th...

The Breathitt County Fiscal Court has adopted the KY Model Procurement Code, effective in August 2023. In addition the Fiscal Court hired a new Applicant Agent in January 2023 and transitioned all FEMA related work to the in-house Applicant Agent in August of 2023 rather than contracting services through the Disaster Recovery firm the court had been working with prior to August 2023. With the hiring of the new Applicant Agent, proper bid documentation is being maintained & proper procedures are being followed for procurement of bids. The Breathitt County Fiscal Court has also changed the software used for tracking purchase orders which will allow for better tracking of both planned expenditures and already expended funds.

View Audit 10099 Questioned Costs: $1

Finding 7613 (2022-002)

Significant Deficiency 2022

Community Action Partnership of Oregon

OR

Allowable Costs / Cost Principles Reporting Significant Deficiency

Corrective Action: CAPO was unable to locate Board minutes from FY 22 that indicate any increase in compensation for Janet Merrell (prior Executive Director through May 2022). We have been informed by the Board that the last increase was likely prior to 2020, as she had requested additional time of...

Corrective Action: CAPO was unable to locate Board minutes from FY 22 that indicate any increase in compensation for Janet Merrell (prior Executive Director through May 2022). We have been informed by the Board that the last increase was likely prior to 2020, as she had requested additional time off in lieu of additional salary increases. The last record of an evaluation is in the minutes from a Board meeting in August of 2020. Discussion of compensation would have occurred during an Executive Session and would be in the possession of the Secretary at the time and not in CAPO files. Currently, Executive session notes are kept by the Treasurer and will be carefully retained for and accessible to future audits. Person Responsible: CAPO Board of Directors Timing for Implementation: Complete

View Audit 9980

Finding 7612 (2022-001)

Significant Deficiency 2022

Community Action Partnership of Oregon

OR

Allowable Costs / Cost Principles Reporting Significant Deficiency

Corrective Action: Immediately after coming on board in May of 2022, the new Executive Director took action to move CAPO’s fiscal services contract from the current provider to a new accounting firm in Portland, Oregon – Susan Matlack Jones and Associates (SMJ) – as of July 1, 2022. SMJ works with ...

Corrective Action: Immediately after coming on board in May of 2022, the new Executive Director took action to move CAPO’s fiscal services contract from the current provider to a new accounting firm in Portland, Oregon – Susan Matlack Jones and Associates (SMJ) – as of July 1, 2022. SMJ works with several Community Action agencies in Oregon and their expertise is specifically in nonprofit accounting. They worked to resolve accounting issues from the latter half of FY 22 for the purposes of the audit and currently produce timely, accurate financial statements for CAPO management and Board review. As of October 2023, CAPO has also hired an in-house Finance Manager with experience in Community Action and federal fund accounting. Person Responsible: Janet Allanach, CAPO Executive Director Timing for Implementation: Complete as of July 1, 2022.

View Audit 9980

Finding 7497 (2022-002)

Significant Deficiency 2022

Food Export USA - Northeast

PA

Allowable Costs / Cost Principles Cash Management Significant Deficiency

DEPARTMENT OF AGRICULTURE. Market Access Program and Agricultural Trade Promotion Program Assistance Listing Number: 10.601 & 10.618. Recommendation: We recommend the Organization ensure the completion of the controls within their policies to ensure an adequate review process is in place prior to ca...

DEPARTMENT OF AGRICULTURE. Market Access Program and Agricultural Trade Promotion Program Assistance Listing Number: 10.601 & 10.618. Recommendation: We recommend the Organization ensure the completion of the controls within their policies to ensure an adequate review process is in place prior to cash disbursement payments and claims submitted. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: Food Export-Northeast, under the direction of the new Executive Director /CEO, has undergone a significant restructuring effective July 2023. This restructure has resulted in the installation of a Chief Financial Officer, reporting directly to the Executive Director/CEO. Similar “C-suite” positions now exist in Operations, Programs, and Communications. This has significantly increased the scope and ability for oversight and internal control. Internal policies and procedures are currently under review; any changes to policies and procedures will be made as needed/identified. Increased monitoring and enforcement of existing internal control measures has already resulted in improved completeness and accuracy of financial reporting. In September 2023, the Food Export staff met with FAS staff to review procedures and policies, including meetings with Management to review and evaluate controls. The feedback from those meetings will be incorporated into any updates on procedure. Names of the contact person(s) responsible for corrective action: Brendan Wilson, Food Export Executive Director/CEO; Michelle Rogowski, Chief Operating Officer, Laura England, Deputy Director/Chief Communications Officer; Robert Lowe, CPA, Chief Financial Officer; Teresa Miller, Chief Program and Partnership Officer. Planned completion date for corrective action plan: December 31, 2023. If the U.S. Department of Agriculture has questions regarding this plan, please call Laura England at (215) 599-9738 or contact via email at lengland@foodexport.org.

View Audit 9730

Finding 7457 (2022-003)

Material Weakness 2022

The Methodist Home of Kentucky, Inc.

KY

Questioned Costs Allowable Costs / Cost Principles

Action Taken: The Home sought guidance from the Board of Child Care of the United Methodist Church and the Office of Refugee Resettlement to determine when/if costs are considered capital or operating for indirect allocation.

View Audit 9623 Questioned Costs: $1

Finding 7383 (2022-009)

Significant Deficiency 2022

Change, Inc.

MN

Allowable Costs / Cost Principles Cash Management Period of Performance

While our Human Resources Specialist position was filled in May 2021, we are still working to have sufficient HR and accounting staffing to meet our significant growth. Additional positions of Human Resources Manager and Controller will help reduce/eliminate these types of errors in the future.

View Audit 9524

Finding 7382 (2022-008)

Significant Deficiency 2022

Change, Inc.

MN

Allowable Costs / Cost Principles

We understand the requirement to approve invoices prior to payment and have controls in place to achieve this requirement. We will continue to strive for 100% compliance in this requirement.

View Audit 9524

Finding 7310 (2022-001)

Material Weakness 2022

Young Men's Christian Association of Metropolitan Atlanta

GA

Questioned Costs Allowable Costs / Cost Principles

The Organization is in the process of addressing the findings identified. The following actions have been taken or are in process: • We have retained a certified public accountng firm (CPA firm) to develop appropriate infrastructure related to federal awards. • We are providing regular and periodic ...

The Organization is in the process of addressing the findings identified. The following actions have been taken or are in process: • We have retained a certified public accountng firm (CPA firm) to develop appropriate infrastructure related to federal awards. • We are providing regular and periodic training for staff in the actviies involved in our use of federal awards. • We are evaluating policy and procedures related to the administration of federal awards to achieve alignment with the federal regulations which we are subject to, including federal cost principles. • We are developing the proper procedures for documenting federal awards expenditures by the Organization. • We are evaluating and determining the impact and amount of possible disallowed costs subject to further inquiry together with any calculated disallowed costs which will be communicated with the funding agency and promptly returned. • We are collaborating with any funding agency on next steps to correct any potentual noncompliance. • We are documenting and recognizing reasonable alloca􀆟on of direct salaries & wages, and indirect costs, including administrative costs. • We are documenting the classification and application of direct salaries & wages, and indirect costs consistently among all applied grants and locations. • We have engaged a CPA firm to assist in determining the indirect cost rate that ultimately will be approved by our cognizant federal agency. • We are redesigning staffing structure to a) support proper grant administration, b) ensure required documentation is maintained, and c) practie diligent oversight of expenditures and reporting. • Finance and Accounting personnel, in addition to program administration staff, will review expenditures on federal awards, including supporting documentation, before expenses are submited to grantors.

View Audit 9485 Questioned Costs: $1

Finding 7281 (2022-007)

Significant Deficiency 2022

Dallas County Board of Education

AL

Allowable Costs / Cost Principles § 200.430

A policy will be developed and submitted for board approval outlinging the payroll internal control processes as it relates to timesheets, payroll service reports, and approval process. Newly adopted written procedures will be developed to align with the newly adopted board policy. The following ...

A policy will be developed and submitted for board approval outlinging the payroll internal control processes as it relates to timesheets, payroll service reports, and approval process. Newly adopted written procedures will be developed to align with the newly adopted board policy. The following district office staff members will participate in training provided by a private consultant ont he newly adopted policy and procedures along with the required process for documenting all personnel services charged by Title I Grants: CSFO, Federal Programs Bookkeeper, Federal Programs Secretary, Centralized LSA Bookkeeper, State Funds Bookkeeper 2, Accounts Payable Clerk, and Payroll Clerk. The CSFO will develop a turn-around training and trail all school level staff to include bookkeepers and principals on the following topics: Completing and documenting time and effort sheets, properly documenting and affirming salaries of Title I employees, checks and balances for payroll and timesheets, adhering to board approved policies and procedures for completing timesheets, signing timesheets, and balancing timesheets against payroll service reports. An internal audit team will be developed to periodically check compliance to newly adopted policies and procedures. All time and effort sheets will be submitted at the onset of employment for review and compliance with a follow up mid-year certification of time and effort on the federal programs.

View Audit 9464

Finding 7280 (2022-006)

Material Weakness 2022

Dallas County Board of Education

AL

Questioned Costs Allowable Costs / Cost Principles § 200.430

A policy will be developed and submitted for board approval outlinging the payroll internal control processes as it relates to timesheets, payroll service reports, and approval process. Newly adopted written procedures will be developed to align with the newly adopted board policy. The following ...

A policy will be developed and submitted for board approval outlinging the payroll internal control processes as it relates to timesheets, payroll service reports, and approval process. Newly adopted written procedures will be developed to align with the newly adopted board policy. The following district office staff members will participate in training provided by a private consultant ont he newly adopted policy and procedures along with the required process for documenting all personnel services charged by Education Stabilization Fund: CSFO, Federal Programs Bookkeeper, Federal Programs Secretary, Centralized LSA Bookkeeper, State Funds Bookkeeper 2, Accounts Payable Clerk, and Payroll Clerk. The CSFO will develop a turn-around training and trail all school level staff to include bookkeepers and principals on the following topics: Completing and documenting time and effort sheets, properly documenting and affirming salaries of Education Stabilization Fund employees, checks and balances for payroll and timesheets, adhering to board approved policies and procedures for completing timesheets, signing timesheets, and balancing timesheets against payroll service reports. An internal audit team will be developed to periodically check compliance to newly adopted policies and procedures. All time and effort sheets will be submitted at the onset of employment for review and compliance with a follow up mid-year certification of time and effort on the federal programs.

View Audit 9464 Questioned Costs: $1

Finding 7223 (2022-005)

Significant Deficiency 2022

MacOn and Piatt Counties Regional Office of Education No. 39

IL

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

CONDITION: The ROE did not ensure costs or expenditures were adequately documented, reviewed, and approved to ensure allowability under the federal award. PLAN: Past practice and policy during the FY22 audit, allowed for the Business Manager to sign off on purchase orders and requisitions rel...

CONDITION: The ROE did not ensure costs or expenditures were adequately documented, reviewed, and approved to ensure allowability under the federal award. PLAN: Past practice and policy during the FY22 audit, allowed for the Business Manager to sign off on purchase orders and requisitions related to monthly, reoccurring bills. New management is working on updated fiscal policies. A new Accounts Payable employee was hired in March 2023 by ROE management and trained by the Business Manager, along with Program Directors, on procedures for expenditures. Procedures have been put into place to ensure that all expenditures are signed by the Program Director or Assistant/Regional Superintendent to indicate review and approval of expenditures. After being signed by a Program Director or Assistant/Regional Superintendent, the expenditure goes to the Business Office where the Business Manager will check for appropriate signatures and will pass on to Accounts Payable for a final check for appropriate signatures and supporting invoices prior to payment. ANTICIPATED DATE OF COMPLETION: This was implemented in March 2023. CONTACT PERSON: Ms. Jill Reedy, Regional Superintendent

View Audit 9381

Finding 7176 (2022-003)

Material Weakness 2022

Foster Adopt Connect, INC

MO

Allowable Costs / Cost Principles § 200.430

Personnel Responsible for Corrective Action: This initiative was a collaboration between the Finance Grants Team, Brandie Hall and Bobby Morris-Culp, and the COO, Jennifer Johnson, representing the programs side of the contract. Anticipated Completion Date: A proper Time Activity Report was implemen...

Personnel Responsible for Corrective Action: This initiative was a collaboration between the Finance Grants Team, Brandie Hall and Bobby Morris-Culp, and the COO, Jennifer Johnson, representing the programs side of the contract. Anticipated Completion Date: A proper Time Activity Report was implemented October 1, 2022. Corrective Action Plan: Although Foster Adopt Connect did not receive the results from the 2021 Independent Audit conducted by other auditors until November of 2022, due to the close time proximity, was able to design a compliant Time Activity Report and have staff utilize said reports to track time beginning October 1, 2022, which was the beginning of the FFY/Contract funding period. This would indicate that this is not in fact, a repeat finding.

View Audit 9295

Finding 7105 (2022-003)

Significant Deficiency 2022

Boys & Girls Club of Greater Milwaukee, INC

WI

Allowable Costs / Cost Principles Significant Deficiency

Corrective Action Plan: The Finance Department of Boys & Girls Clubs of Greater Milwaukee, Inc. will implement a hard close on a monthly basis where accounts are reviewed and reconciled on a monthly basis. Responsible Person for Corrective Action: Marta Kwiatkowski, Vice President of Administration ...

Corrective Action Plan: The Finance Department of Boys & Girls Clubs of Greater Milwaukee, Inc. will implement a hard close on a monthly basis where accounts are reviewed and reconciled on a monthly basis. Responsible Person for Corrective Action: Marta Kwiatkowski, Vice President of Administration & Chief Financial Officer Implementation Date for Corrective Action: December 31, 2023

View Audit 9204

Finding 7096 (2022-004)

Significant Deficiency 2022

The Fishing Partnership Health Plan Corporation D/b/a Fishing Partnership

MA

Questioned Costs Internal Control / Segregation of Duties Allowable Costs / Cost Principles § 200.430

Finding 2022-004 - Strengthen controls surrounding program-related record keeping including increasing the frequency of reconciliation's and program wage allocation procedures to match the payroll cycle. Program Affected Under the U.S. Department of Health and Human Services - Award Year October 1,...

Finding 2022-004 - Strengthen controls surrounding program-related record keeping including increasing the frequency of reconciliation's and program wage allocation procedures to match the payroll cycle. Program Affected Under the U.S. Department of Health and Human Services - Award Year October 1, 2021 - September 30, 2022: Assistance Listing 93.262 Occupational Safety and Health Program Corrective Action The Organization agrees with the finding. The Organization has implemented both time and effort reporting by pay period and wage reconciliations as part of a monthly close process. Responsible individual - JJ Bartlett Completion 9/30/2023

View Audit 9150 Questioned Costs: $1

Finding 7034 (2022-002)

Material Weakness 2022

Isaiah House

NJ

Allowable Costs / Cost Principles Material Weakness Reporting

The Executive Director and Deputy Director will review and approve all reporting submissions to ensure they are being reported timely in accordance with grant requirements.

View Audit 9025

Finding 7008 (2022-001)

Significant Deficiency 2022

The Roskamp Institute, Inc.

FL

Allowable Costs / Cost Principles Internal Control / Segregation of Duties

VIEWS OF RESPONSIBLE OFFICIALS AND PLANNED CORRECTIVE ACTION: Management agrees with the finding and will implement a process to maintain all payroll allocations.

View Audit 9020

Finding 6965 (2022-004)

Material Weakness 2022

Fredericksburg Area Health and Support Services, Inc.

VA

Questioned Costs Internal Control / Segregation of Duties Subrecipient Monitoring § 200.430

Finding: The Organization allowed payroll related costs to be submitted for reimbursement under the grant for time that did not match approved timesheets. This is not in compliance with program allowable cost requirements. The amount of payroll and related costs discovered to be incorrect was a net...

Finding: The Organization allowed payroll related costs to be submitted for reimbursement under the grant for time that did not match approved timesheets. This is not in compliance with program allowable cost requirements. The amount of payroll and related costs discovered to be incorrect was a net amount of $25, which when projected onto the remaining payroll and related costs that were not tested, amounted to $1,038. Corrective Action Taken or Planned: The Organization will review audit findings and ensure accurate future reimbursements, develop a comprehensive process for verifying time sheets against service delivery, and implement a paper timesheet system in which supervisors must enter time based on timesheets, ensuring 1:1 reimbursement. Name of Contact Person: Jacob Ducey, Grants Manager Phone Number of Contact Person: (540) 907-4555 Projected Completion Date: October 31, 2023

View Audit 9001 Questioned Costs: $1

Finding 6946 (2022-002)

None 2022

Booker T. Senior Village, INC

LA

Allowable Costs / Cost Principles

Management concurs with the finding and will establish written policies and procedures to maintain supporting documentation for at least three years and ensure funds are used per HUD’s authorization.

View Audit 8939

Finding 6891 (2022-002)

Significant Deficiency 2022

Lakeshore Regional Entity

MI

Allowable Costs / Cost Principles § 200.402

2022-002 – Activities Allowed/Allowable Costs Finding Type: Significant Deficiency in internal control over compliance Program: ALN 93.959 – Prevention, Women’s Specialty Services, Administration Criteria: As required by 2 CFR 200.402, the total cost of a Federal award is the sum of the allo...

2022-002 – Activities Allowed/Allowable Costs Finding Type: Significant Deficiency in internal control over compliance Program: ALN 93.959 – Prevention, Women’s Specialty Services, Administration Criteria: As required by 2 CFR 200.402, the total cost of a Federal award is the sum of the allowable direct and allocable indirect costs less any applicable credits. Condition: For the timecard tested, all paid time off was charged to the grant. However, based on the percentage allocations in the timecard, only a portion should have been charged to the grant. Cause/Effect: Management oversight. Unallowable costs were charged to the grant. Recommendation: We recommend that the Entity review the internal controls over approval of payroll costs and modify them, if necessary, to assure that only allowable costs are charged to grants. View of Responsible Official: Management is in agreement with this recommendation. Planned corrective action: Management will work with the third party payroll processor to implement a payroll audit process to assure that timecards are entered as submitted. Responsible party: Chief Financial Officer Anticipated completion date: September 30, 2024

View Audit 8866

Finding 6774 (2022-001)

Material Weakness 2022

Winlock School District No. 232

WA

Questioned Costs Subrecipient Monitoring Allowable Costs / Cost Principles

CORRECTIVE ACTION PLAN FOR FINDINGS REPORTED UNDER UNIFORM GUIDANCE Winlock School District No. 232 September 1, 2021 through August 31, 2022 This schedule presents the corrective action planned by the District for findings reported in this report in accordance with Title 2 U.S. Code of Federal Regu...

CORRECTIVE ACTION PLAN FOR FINDINGS REPORTED UNDER UNIFORM GUIDANCE Winlock School District No. 232 September 1, 2021 through August 31, 2022 This schedule presents the corrective action planned by the District for findings reported in this report in accordance with Title 2 U.S. Code of Federal Regulations (CFR) Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Finding ref number: 2022-001 Finding caption: The District did not have adequate controls for ensuring compliance with federal requirements for allowable costs and cost principles. Name, address, and telephone of District contact person: Gloria Dupree, Business Manager, N.E. 1st Street, Winlock, WA 98596, (360) 785-3582 Corrective action the auditee plans to take in response to the finding: Corrective actions for ensuring compliance with federal requirements around cash management, allowable costs, and cost principles. Cash Management 1. Review Policies and Procedures: Ensure the district’s policies and procedures align with federal standards. Regularly audit your cash management practices. 2. Training: Ensure training on federal regulations and the importance of adhering to them for staff members involved in cash management. 3. Internal Controls: Strengthen internal controls to prevent and detect non-compliance, including segregation of duties and regular reconciliations. We hired a new Accounts payable employee in February 2023. 4. Monitoring: Monitor regularly to ensure that federal funds are utilized properly and efficiently. Allowable Costs 1. Guidance Review: Review the federal awarding agency’s guidance on allowable costs to ensure that all costs charged to the award are permissible under the specific federal program. Office of the Washington State Auditor sao.wa.gov 2. Documentation: Implement a robust system to document all costs and ensure they are reasonable, allocable, and necessary. 4. Review: Conduct regular reviews of expenditures to check for compliance with allowable cost principles. 5. Training: Educate all staff involved in financial management about the principles of allowable costs associated with federal awards. Cost Principles 1. Policy Update: Update organizational policies to reflect federal cost principles. 2. Consistency: Apply costs consistently and in a manner consistent with policies and procedures. 3. Direct vs. Indirect Costs: Properly identify direct and indirect costs and allocate them according to federal standards. 4. Record Keeping: Maintain accurate and complete financial records, retaining them for the period specified by the federal award or until all audits are completed and findings resolved. Anticipated date to complete the corrective action: 02/01/2024

View Audit 8703 Questioned Costs: $1

Finding 6675 (2022-003)

Material Weakness 2022

Human Resource Development Institute

IL

Questioned Costs Allowable Costs / Cost Principles Cash Management

Allowable Costs/Cost Principles, Cash Management, Period of Performance and Reporting U.S. Department of Health and Human Services, AL No. 93.958, Block Grant for Community Mental Health Services U.S. Department of Health and Human Services, AL No. 93.959, Block Grant for Prevention and Treatment o...

Allowable Costs/Cost Principles, Cash Management, Period of Performance and Reporting U.S. Department of Health and Human Services, AL No. 93.958, Block Grant for Community Mental Health Services U.S. Department of Health and Human Services, AL No. 93.959, Block Grant for Prevention and Treatment of Substance Abuse U.S. Department of Health and Human Services, AL No. 21.027, Coronavirus State and Local Fiscal Recovery Fund U.S. Department of Health and Human Services, AL No 93.778, Medicaid Cluster Medical Assistance Program Criteria Human Resources Development, Inc., and Affiliates’ (HRDI) is responsible for keeping an accurate accounting and all of the required documentation in accordance with applicable federal regulations. Views of Responsible Officials and Planned Corrective Actions: HRDI will implement the following corrective actions for the FY 2023-24 to remediate the finding and address the cause of the finding. HRDI will implement the following corrective actions for the FY 2023-24 to remediate the finding and address the cause of the finding. HRDI has hired staff with higher technical accounting skills than the previous staff. The following staff have been hired full-time or will be hired soon: Payroll & Benefits Specialist, Grant Accountant, Senior Staff Accountant, Accounts Payables and Receivables Specialist, and a Purchasing Specialist. • HRDI’s Human Resources has implemented quarterly audits on all new staff to verify each new staff member hired within the last year has a signed employee offer and appropriate backup support to support the employees’ annual salary. • HRDI has implemented a new accounting system – Sage Intacct. Additionally, we have implemented a grants project tracking module to better help with grants and contracts reporting and compliance. • HRDI is in the process of implementing a new payroll & HRIS – UKG. The anticipated completion date is March 2024. All manual and onboarding processes will be implemented within the system for tracking and auditing purposes. • HRDI will implement an established month-end checklist for all monthly entries to be completed by assigned finance staff. We will ensure that all staff are trained adequately to handle any assigned task. All monthly entries are required reviewed and approved by the Chief Financial Officer prior to posting to the general ledger within our new Accounting Software. All appropriate backup documentation will be saved and stored within the accounting software. • All Grant related Year-End and Audit Procedures will be transitioned to the Grant Accountant who has experience in audits, compliance, and reporting of City, State, Local, and Federal Grants. • HRDI will document accounting policies and procedures to reflect the new month-end processes and provide training to staff on current and future policies. • HRDI will ensure that Finance staff will receive at minimum of 25 hours of training each year related to GASB, GAAP, Governmental Financial Reporting, or other related accounting trainings annually. • HRDI will ensure that any staff involved in Financial Reporting that the technical expertise to help with the preparation, review, and analysis of the financial statements. The target date for implementation is March 31, 2024. The responsible party for the planned resources will be Gail ViJuk, Chief Financial Officer (708) 288-7897. Our address is 340 E. 51st St., Chicago, IL 60615..

View Audit 8675 Questioned Costs: $1

Finding 6607 (2022-004)

Significant Deficiency 2022

Agricultural Enterprises Development Administration

PR

Allowable Costs / Cost Principles Cash Management Reporting

The Cost Allocation Plan is being drafted and will be submitted to the regulatory agency when the attendance and payroll program systems are fully implemented.

View Audit 8540

Corrective Action Plans

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