Corrective Action Plans

Finding 34240 (2022-006)

Material Weakness 2022

IN

Allowable Costs / Cost Principles Subrecipient Monitoring Material Weakness § 200.303

FINDING 2022-006 Contact Person Responsible for Corrective Action: Julia Smith, Business Manager Contact Phone Number: 317-788-4481 Views of Responsible Official: We concur with the findings Description of Corrective Action Plan: Accounts Payable and the Business Manager will make sure all invoices ...

FINDING 2022-006 Contact Person Responsible for Corrective Action: Julia Smith, Business Manager Contact Phone Number: 317-788-4481 Views of Responsible Official: We concur with the findings Description of Corrective Action Plan: Accounts Payable and the Business Manager will make sure all invoices are signed and approved prior to payment. Anticipated Completion Date: January 2023

View Audit 33058

Finding 34228 (2022-003)

Material Weakness 2022

Beech Grove City Schools

IN

Questioned Costs School Nutrition Programs Allowable Costs / Cost Principles § 200.303 § 200.407 § 200.439 § 200.452

FINDING 2022-003 Contact Person Responsible for Corrective Action: Julia Smith, Business Manager Contact Phone Number: 317-788-4481 Views of Responsible Official: We concur with the findings Description of Corrective Action Plan: The Foodservice Director and Business Manager will refer to the Guidan...

FINDING 2022-003 Contact Person Responsible for Corrective Action: Julia Smith, Business Manager Contact Phone Number: 317-788-4481 Views of Responsible Official: We concur with the findings Description of Corrective Action Plan: The Foodservice Director and Business Manager will refer to the Guidance for State Agencies and School Food Authorities manual to ensure compliance for allowable costs. Anticipated Completion Date: January 2023

View Audit 33058 Questioned Costs: $1

Finding 34215 (2022-002)

Significant Deficiency 2022

Alluma, INC

MN

Questioned Costs Allowable Costs / Cost Principles Significant Deficiency § 200.403

Alluma, Inc. Single Audit Corrective Action Plan Year Ending December 31, 2022 Audit Finding 2022-002: Contact Person Tammy Hickel Zola, CFO Corrective Action Plan Ensure specific CFR training to employees responsible for managing federal grant requirements as well as implementing additional procedu...

Alluma, Inc. Single Audit Corrective Action Plan Year Ending December 31, 2022 Audit Finding 2022-002: Contact Person Tammy Hickel Zola, CFO Corrective Action Plan Ensure specific CFR training to employees responsible for managing federal grant requirements as well as implementing additional procedures to ensure compliance with necessary and reasonable costs. Completion Date Alluma will expand training and internal controls in 2023.

View Audit 30304 Questioned Costs: $1

Finding 34213 (2022-001)

Significant Deficiency 2022

Dysart Unified School District No. 89

AZ

School Nutrition Programs Student Financial Aid Allowable Costs / Cost Principles

Findings and Questioned Costs Related to Federal Awards Finding Number: 2022-001 Contact Person: Dr. Shelley Isai, Assistant Superintendent for Education Services Anticipated Completion Date: November 21, 2022 Planned Corrective Action: The District reviewed the procedures used to determine Tit...

Findings and Questioned Costs Related to Federal Awards Finding Number: 2022-001 Contact Person: Dr. Shelley Isai, Assistant Superintendent for Education Services Anticipated Completion Date: November 21, 2022 Planned Corrective Action: The District reviewed the procedures used to determine Title I, Part A eligibility in the Grants Management System as well as a process that includes maintaining records. The process was redefined for the fiscal year 2023 grant application but will change slightly in future years due to a change in the options in criteria available used to determine eligibility for fiscal year 2023 grant applications. To complete this process with accuracy, the Director of Federal Projects will communicate the required eligibility criteria to the Director of Nutrition Services. The Nutrition Services department will provide Federal Projects with the necessary information to complete the process. Supporting documentation for the basis of fiscal year 2023 and the future years will be stored in a shared file and readily accessible for reference or audits. This process has been documented to ensure consistency through any department transitions.

View Audit 36747

Finding 34193 (2022-002)

Significant Deficiency 2022

Lutheran Social Services of South Dakota

SD

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

Finding 2022-002 Allowable Costs / Costs Principles and Activities Allowed or Unallowed Administration for Children and Families CFDA 93.566 Refugee and Entrant Assistance ? State Administered Programs Finding Summary: Two instances were identified in which the manual federal time tracker, tracks f...

Finding 2022-002 Allowable Costs / Costs Principles and Activities Allowed or Unallowed Administration for Children and Families CFDA 93.566 Refugee and Entrant Assistance ? State Administered Programs Finding Summary: Two instances were identified in which the manual federal time tracker, tracks federal and nonfederal hours for employees, used to allocate employee?s time across federal awards, was not reviewed and approved prior to completion of monthly direct and indirect cost allocations based on staff time by federal award. Responsible Individuals: Nathan Beyer & Emily Lyons Corrective Action Plan: Procedures will be reviewed to determine if there are additional steps that can be taken to simplify completion and approval of federal time trackers. Procedures will then be reviewed with staff to ensure they are following the correct process. Anticipated Completion Date: December 31, 2022

View Audit 28902

Finding 34192 (2022-001)

Significant Deficiency 2022

Terra State Community College

OH

Subrecipient Monitoring Allowable Costs / Cost Principles § 200.329

See Corrective Action Plan for chart/table

View Audit 29781

Finding 34178 (2022-002)

Material Weakness 2022

Clarkson University

NY

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

Management accepts this finding. To address this issue, the SEFA, related reconciliation and draft financial statements will be prepared by the Associate Controller and will be reviewed by the Controller and / or Chief Financial Officer prior to initiation of the audit review process. Anticipated Co...

Management accepts this finding. To address this issue, the SEFA, related reconciliation and draft financial statements will be prepared by the Associate Controller and will be reviewed by the Controller and / or Chief Financial Officer prior to initiation of the audit review process. Anticipated Completion Date March 2023 Responsible Person Keith Rosser, Controller

View Audit 30456

Finding 34151 (2022-001)

Material Weakness 2022

Higher Horizons Day Care Center, Inc.

VA

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

Higher Horizons will ensure the segregation of duties in the Fiscal Department at all times to ensure business continuity. The newly developed procedure will address continuing business operations in the event of disasters and other high impact scenarios (i.e. staff transitions, emergency operations...

Higher Horizons will ensure the segregation of duties in the Fiscal Department at all times to ensure business continuity. The newly developed procedure will address continuing business operations in the event of disasters and other high impact scenarios (i.e. staff transitions, emergency operations, etc.) Higher Horizons will refine and develop systems and fiscal procedures to ensure that when transitions of Finance Department staff occur, that all responsibilities are assigned to another individual. Fiscal operational procedures will reflect personnel assigned for tasks, authorizing responsibility, and approvals. Reconciling of accounts and review of all reconciliations and adjusting journal entries will be completed by someone other than the preparer. Higher Horizons' goal is to provide sufficient internal control over fiscal reporting so all necessary transactions are in accordance to generally accepted accounting principles. Person(s) Responsible: Kassahun Endaylalu, Chief Fiscal Officer. Timing for Implementation: April 30, 2023

View Audit 30454

Finding 34135 (2022-002)

Material Weakness 2022

Dubuque County

IA

Allowable Costs / Cost Principles Eligibility Material Weakness § 200.303

Finding 2022-002 Activities Allowed or Unallowed and Allowable Costs/Cost Principles and Reporting Material Weakness in Internal Control Over Compliance Federal Agency Name: Department of Health and Human Services Program Name: COVID-19 Provider Relief Fund and American Rescue Plan (ARP) Rural Distr...

Finding 2022-002 Activities Allowed or Unallowed and Allowable Costs/Cost Principles and Reporting Material Weakness in Internal Control Over Compliance Federal Agency Name: Department of Health and Human Services Program Name: COVID-19 Provider Relief Fund and American Rescue Plan (ARP) Rural Distribution CFDA Number: 93.498 Finding Summary: The County?s final expenditure listing identified as eligible and claimed under the Provider Relief Fund program was not reviewed and approved by a separate individual outside of the preparer. In addition, the County?s special reports submitted to the Department of Health and Human Services for Periods 2 and 3 TIN #426004597 were not reviewed and approved by a separate individual outside of the preparer. Responsible Individuals: Dani Ettema, Sunnycrest Administrator Corrective Action Planned: Moving forward, the Finance Director and/or Administrator will review and approve the expenditures and reports prior to being submitted. Anticipated Completion Date: June 30, 2023

View Audit 35627

Finding 34121 (2022-003)

Significant Deficiency 2022

Dyer County, Tennessee

TN

Questioned Costs Allowable Costs / Cost Principles Internal Control / Segregation of Duties § 200.407 § 200.413 § 200.430

FINDING: DYER COUNTY SCHOOL DEPARTMENT HAD DEFICIENCIES IN THE USE OF EPIDEMIOLOGY AND LABORATORY CAPACITY FOR INFECTIOUS DISEASED (ELC) GRANT FUNDS, WHICH RESULTED IN QUESTIONED COSTS Response and Corrective Action Plan Prepared by: Cheryl Mathis, Director of Schools & Jeremy Gatlin, School Board ...

FINDING: DYER COUNTY SCHOOL DEPARTMENT HAD DEFICIENCIES IN THE USE OF EPIDEMIOLOGY AND LABORATORY CAPACITY FOR INFECTIOUS DISEASED (ELC) GRANT FUNDS, WHICH RESULTED IN QUESTIONED COSTS Response and Corrective Action Plan Prepared by: Cheryl Mathis, Director of Schools & Jeremy Gatlin, School Board Chairman Person Responsible for Implementing the Corrective Action: Cheryl Mathis, Director of Schools & Jeremy Gatlin, School Board Chairman Anticipated Completion Date of Corrective Action: October 11, 2022 ? Repeat Finding: No Reason Corrective Action was Not Taken in the Prior Year: NIA Planned Corrective Action: The school system will strengthen its internal controls by requiring that any future bonus paid to any member of the administrative staff be approved by the school board before the funds are disbursed to ensure that duties are adequately segregated. /l

View Audit 33597 Questioned Costs: $1

Finding 34088 (2022-002)

Significant Deficiency 2022

Fremont Community Schools

IN

Matching / Level of Effort / Earmarking Allowable Costs / Cost Principles § 200.208 § 200.303 § 200.403

FINDING 2022-002 Contact Person Responsible for Corrective Action: Dr. William Stitt, Superintendent Contact Phone Number: 260-495-5005 Views of Responsible Officials and Planned Corrective Actions: Management agrees with the finding. Fremont Community Schools will work with NEISEC to ensure proper ...

FINDING 2022-002 Contact Person Responsible for Corrective Action: Dr. William Stitt, Superintendent Contact Phone Number: 260-495-5005 Views of Responsible Officials and Planned Corrective Actions: Management agrees with the finding. Fremont Community Schools will work with NEISEC to ensure proper oversight and internal controls are in maintained. Anticipated Completion Date: Corrective action plan will be implemented by June 30, 2023.

View Audit 32727

Finding 34065 (2022-004)

Material Weakness 2022

Wayne County

IN

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

FINDING 2022-004 Contact Person Responsible for Corrective Action: Auditor Mark Hoelscher Contact Phone Number: 765-973-9318 Views of Responsible Official: We concur with the finding. Description of Corrective Action Plan: ARPA Quarterly & Annual Reports will be reviewed by someone other than the pr...

FINDING 2022-004 Contact Person Responsible for Corrective Action: Auditor Mark Hoelscher Contact Phone Number: 765-973-9318 Views of Responsible Official: We concur with the finding. Description of Corrective Action Plan: ARPA Quarterly & Annual Reports will be reviewed by someone other than the preparer. Anticipated Completion Date: 12-31-23

View Audit 35322

Finding 34051 (2022-001)

Significant Deficiency 2022

Hope House, Inc.

CA

Allowable Costs / Cost Principles § 200.430

Hope House concurs with the auditor?s recommendations. Effective October 2022, the Executive Director will print and store personnel action forms in the employee?s file.

View Audit 29577

Finding 34048 (2022-001)

Significant Deficiency 2022

Eastport Health Care, Inc.

ME

Cash Management Subrecipient Monitoring Allowable Costs / Cost Principles

Finding Number: 2022-001 Condition Found: The Organization was found to have a significant deficiency in internal controls over compliance and compliance related to period of performance and cash management. Individual(s) Responsible for Corrective Action: Wanda Matthews, CFO and Ellen Krajewski, ...

Finding Number: 2022-001 Condition Found: The Organization was found to have a significant deficiency in internal controls over compliance and compliance related to period of performance and cash management. Individual(s) Responsible for Corrective Action: Wanda Matthews, CFO and Ellen Krajewski, CEO. Corrective Action Planned: In order to comply with the U.S. Code of Federal Regulations (CFR), 45 CFR 75.309(a), and 45 CFR 75.305(b)(l), and ensure that the timing and amount of advance payments are as close as is administratively feasible to the actual disbursements by the organization for direct program or project costs and the proportionate share of any allowable indirect costs, the following process has been established for internal quality control: ? Drawdowns for salary expenses will be completed bi-weekly one week after the second week payroll. Drawdowns for other expenses will be completed at the end of every month for expenses that are documented as paid. This will help to ensure that grant funds expended prior to completing a drawdown in the PMS system. ? The request for disbursement from PMS will be submitted to the CEO with all corresponding backup that includes an earnings summary, documented and approved work hours report, expanded general ledger for other than salary expenses, the statement of revenue and expenditures for each grant, the worksheets that are completed for grant expenditure tracking, and a review checklist for completion by the CEO that includes the following requirements: o Are expenses related to the current budget period? o Is the drawdown amount in line with the expenses? o Is the drawdown amount for expenses that have been paid? o Are the expenses eligible for this grant? o Does the General Ledger and PMS system balances match? o Does supporting documentation provided support the expenses included in drawdown request? o At the end of the month, the statement of revenue and expenditures will be run for each grant. An adjusting entry will be completed to recognize grant revenue based on the verified expenses for each grant and recorded in the adjusting entry journal. o The adjusting entry journal is presented to the CEO for approval along with all supporting documentation for review and approval. Anticipated Completion Date: The process was started immediately upon notification of the finding. An updated Policy and Procedure will be submitted to the Board of Directors at the October 24, 2022 meeting.

View Audit 28631

Finding 34034 (2022-001)

Significant Deficiency 2022

Mountain Home Montana, INC

MT

Allowable Costs / Cost Principles Matching / Level of Effort / Earmarking Internal Control / Segregation of Duties § 200.430

With regard to Federal Award Finding 2022-001, Documentation of Personnel Expenses Charged to Federal Awards, in the audit report for Mountain Home Montana, Inc. for the year ended December 31, 2022, we offer the following response. We understand that Single Audit standards require documentation of...

With regard to Federal Award Finding 2022-001, Documentation of Personnel Expenses Charged to Federal Awards, in the audit report for Mountain Home Montana, Inc. for the year ended December 31, 2022, we offer the following response. We understand that Single Audit standards require documentation of personnel expenses charged to multi-funding sources to include the specific activities performed and adequate authorization in accordance with the individual grant agreements. We plan to review and develop our policies as recommended in the audit report to achieve an acceptable time-tracking process for our federal funds. We anticipate starting and implementing this process in the current fiscal year with the goal of being in compliance for next year's audit.

View Audit 34740

Finding 34014 (2022-004)

Significant Deficiency 2022

Boys & Girls Clubs of the Sioux Empire, Inc.

SD

Allowable Costs / Cost Principles Significant Deficiency § 200.303

Finding 2022-004 Federal Agency Name: Department of Education and Passed through State of South Dakota Department of Education Program Name: COVID-19 Education Stabilization Fund- Governor?s Emergency Education Relief (GEER) Fund FFAL # 84.425C Finding Summary: Four instances identified in which d...

Finding 2022-004 Federal Agency Name: Department of Education and Passed through State of South Dakota Department of Education Program Name: COVID-19 Education Stabilization Fund- Governor?s Emergency Education Relief (GEER) Fund FFAL # 84.425C Finding Summary: Four instances identified in which documentation could not be provided to support a formal review and approval of the expenditures prior to payment. Responsible Individuals: Scott Hupke CFO Corrective Action Plan: The State of SD, at the end of the grant period, allowed us to reallocate some of the funding to cover other expenses that went back to prior periods. Those expenses were missing the proof of formal review as the new process had not yet been put into place. We have taken corrective action and implemented an independent review of purchases to ensure they have been approved. Anticipated Completion Date: September 2022

View Audit 36738

Finding 34012 (2022-003)

Significant Deficiency 2022

Boys & Girls Clubs of the Sioux Empire, Inc.

SD

Allowable Costs / Cost Principles § 200.303 § 200.430

Finding 2022-003 Federal Agency Name: Department of Education and Passed through State of South Dakota Department of Education Program Names: COVID-19 Education Stabilization Fund- Governor?s Emergency Education Relief (GEER) Fund and Twenty-First Century Community Learning Centers Program FFAL # 84...

Finding 2022-003 Federal Agency Name: Department of Education and Passed through State of South Dakota Department of Education Program Names: COVID-19 Education Stabilization Fund- Governor?s Emergency Education Relief (GEER) Fund and Twenty-First Century Community Learning Centers Program FFAL # 84.425C and 84.287C Finding Summary: The amount of payroll taxes allocated to the GEER program exceeded the amount of payroll taxes actually paid for two of two employees tested. Additionally, one instance in which an employee?s overtime hours was not charged to the Twenty First Century Program. Lastly, one instance in which one employee?s biweekly wages were not charged to the Twenty First Century Program. Responsible Individuals: Scott Hupke CFO Corrective Action Plan: We have added an additional person in the review of the manual process for accuracy and to eliminate the errors. We will also continue to explore ways to automate the process from our payroll provider to the accounting software. Anticipated Completion Date: October 2022 for the manual process review and ongoing for the ways to automate the process.

View Audit 36738

Finding 34010 (2022-002)

Material Weakness 2022

The Community Builders, Inc. and Subsidiaries

MA

Questioned Costs Allowable Costs / Cost Principles Subrecipient Monitoring § 200.430

The Community Builders, Inc. 185 Dartmouth Street Boston, MA 02116 CORRECTIVE ACTION PLAN September 21, 2023 Federal Audit Clearinghouse The Community Builders, Inc. (the Company) respectfully submits the following corrective action plan for the year ended December 31, 2022. Name and address of...

The Community Builders, Inc. 185 Dartmouth Street Boston, MA 02116 CORRECTIVE ACTION PLAN September 21, 2023 Federal Audit Clearinghouse The Community Builders, Inc. (the Company) respectfully submits the following corrective action plan for the year ended December 31, 2022. Name and address of independent accounting firm: CohnReznick 7501 Wisconsin Ave, Suite 400E Bethesda, Maryland 20814 Audit period: January 01, 2022-December 31, 2022 The findings from the December 31, 2022 schedule of findings and questioned costs are discussed below. The findings are numbered consistently with the numbers assigned in the schedule. Findings and Questioned Costs - Major Federal Program Audit MATERIAL WEAKNESS Hope VI Cluster 14.889 2022-002 ? Allowable Costs/Cost Principles Recommendation: The Company should establish a system of internal controls to provide reasonable assurance that salary and wage costs are accurate, allowable, and properly allocated by basing salaries and wages charged to federal awards on underlying records that accurately reflect all work performed on a daily basis in accordance with 2 CFR 200, Subpart E, Subsection 430. Action Taken: The Company has procedures in place to provide reasonable assurance that salaries and wages are accurate. The Company has managed several federal award programs and has a billing tracking system already implemented in ADP. When implementing this new program with a different department, it was identified that three staff were not following the payroll billing policies already put in place. The Company has notified the staff and effective September 1, 2023, the department has started tracking their time directly in ADP. Management will review this billing as part of draw submissions to confirm the process is being followed. If the Federal Audit Clearinghouse has questions regarding this plan, please call Alexa DuCote at 857-221-8753. Sincerely, Alexa DuCote Vice-President of Corporate Finance and Accounting

View Audit 36734 Questioned Costs: $1

Finding 33939 (2022-001)

Material Weakness 2022

Northshore School District No. 417

WA

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

See Corrective Action Plan for chart/table.

View Audit 34959 Questioned Costs: $1

Finding 33920 (2022-001)

Material Weakness 2022

Chicago Housing Authority

IL

HUD Housing Programs Eligibility Allowable Costs / Cost Principles § 200.303

Finding 2022-001 (Assistance Listing 14.881) Eligibility and Reporting (Form HUD-50058 MTW) Public Housing and Rental Assistance Demonstration (RAD) Corrective Action Plan: ? Summary of Finding ? Eligibility and Reporting ? Internal Controls ? There were four Public Housing tenants and three RAD ...

Finding 2022-001 (Assistance Listing 14.881) Eligibility and Reporting (Form HUD-50058 MTW) Public Housing and Rental Assistance Demonstration (RAD) Corrective Action Plan: ? Summary of Finding ? Eligibility and Reporting ? Internal Controls ? There were four Public Housing tenants and three RAD tenants for which control deviations were noted (8.8% overall MTW deviation rate). In the case that a recertification was to be performed in 2022, the nature of the control deviations are as follows: ? The examination/re-examination checklist was not initialed by the certification specialist (CS); therefore, the Authority did not retain evidence that the CS inspected all relevant forms (three instances). ? The examination/re-examination checklist was initialed by the CS, but forms were missing and/or not signed (one instance). ? Relevant forms were signed after the effective date and submittal to HUD (three instances). ? Relevant forms were missing and/or missing signature by the tenant and CS (five instances). ? Summary of Finding ? Eligibility and Reporting ? Compliance In addition, there were twelve compliance exceptions noted out of 100 tenants selected for the MTW program (12.0% overall MTW exception rate). ? The recertification was to be performed in 2022, relevant forms were missing and/or missing signature by tenant and recertification clerk (eight instances). ? The recertification was to be performed in 2022, third-party income support was not available and/or on file (four instances). ? The recertification was to be performed in 2022, third-party income support did not match the calculation amount (one instance). ? The recertification was to be performed in 2022, but was not performed within a reasonable timeframe (two instances). ? The recertification was to be performed, proper documentation was not available and/or on file to tie key line items within Form HUD-50058: total annual income, date of birth, and social security number (two instances). ? The recertification was to be performed in 2022, the reexamination file could not be located (one instance). ? Planned Actions: On March 31, 2023, a comprehensive, in-person training on the `Perfect File Folder? was conducted. It was inclusive of Private Property Management (PPM) firms for both Public Housing and RAD properties. By the end of 2023, each site will have and be required to maintain (and update as needed) a blank Perfect File Folder for site reference. Additionally, the Authority will require certification by the PPMs that 100% of the tenant files that have been reviewed in a calendar year have also been audited and purged. The Authority?s Portfolio Management team will conduct regular audit sampling from the files that have been certified as audited by the PPMs. Contact Person: Eric Garrett, Chief Property Officer Anticipated Completion Date: Q4 2023

View Audit 33257

Finding 33880 (2022-003)

None 2022

East Carroll Parish Hospital Service District

LA

Questioned Costs Allowable Costs / Cost Principles Cash Management

Name of Responsible Official: LaDonna Englerth, Administrator Anticipated Completion Date: February 28, 2023 Hospital?s Response: Management concurs with the finding and will implement additional internal controls over the identification of eligible expenditures for the Provider Relief Fund program ...

Name of Responsible Official: LaDonna Englerth, Administrator Anticipated Completion Date: February 28, 2023 Hospital?s Response: Management concurs with the finding and will implement additional internal controls over the identification of eligible expenditures for the Provider Relief Fund program and the completion of the required reports. The identified expenditures included gross payroll without consideration of allowable fringes, so the Hospital has already identified other costs not reimbursed by federal programs that are allowable under the PRF program.

View Audit 33903 Questioned Costs: $1

Finding 33869 (2022-001)

Material Weakness 2022

Bremerton School District No. 100-C

WA

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

Bremerton School District No. 100-C September 1, 2021 through August 31, 2022 This schedule presents the corrective action the District is planning to take for findings included in this report in accordance with Title 2 U.S. Code of Federal Regulations (CFR) Part 200, Uniform Administrative Require...

Bremerton School District No. 100-C September 1, 2021 through August 31, 2022 This schedule presents the corrective action the District is planning to take for findings included 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 wage rate requirements. Name, address, and telephone of District contact person: Cathie Seevers/Garth Steedman 134 Marion Ave N Bremerton, WA 98312 360-473-1034 Corrective action the auditee plans to take in response to the finding: While we did confirm the worker rates, BSD was not aware that the requirement to comply with wage rates included collecting the weekly payroll. We were reviewing them weekly on the Labor and Industries website. We are now aware and will make sure this is done in the future. We currently have federal projects and are making sure we collect these pay records weekly. This will also be added to our Purchasing Quick Guide, that we give to all schools and departments. Anticipated date to complete the corrective action: 5/8/2023

View Audit 32351

Finding 33800 (2022-002)

Material Weakness 2022

Saugatuck Child Care Services Inc.

CT

Allowable Costs / Cost Principles

Finding Number 2022-002 ? Description ? The organization does not have a documented cost allocation plan and there is a lack of a documented approval process for expenses. ? Views of Responsible Officials and Planned Corrective Action ? We agree with the finding. We will review the basis for our...

Finding Number 2022-002 ? Description ? The organization does not have a documented cost allocation plan and there is a lack of a documented approval process for expenses. ? Views of Responsible Officials and Planned Corrective Action ? We agree with the finding. We will review the basis for our allocations and develop a written plan. We will begin documenting the approval of invoices prior to the submission for payment. ? Names and Title of Responsible Official ? Sandy Seres, Executive Director; Cathy Donahue, SON Director; Kathy Sabitsky, Finance Manager. ? Anticipated Completion Date ? November 2023.

View Audit 35487

Finding 33794 (2022-004)

Material Weakness 2022

Howard Area Community Center

IL

Questioned Costs Allowable Costs / Cost Principles § 200.430

2022-004 Head Start Cluster, Federal Assistance Listing No. 93.600 Allowable Payroll Costs and Controls Over Payroll (Repeat) Recommendation: The auditors recommend that the Organization establish policies and procedures to support a system of internal controls, which provides a reasonable assuran...

2022-004 Head Start Cluster, Federal Assistance Listing No. 93.600 Allowable Payroll Costs and Controls Over Payroll (Repeat) Recommendation: The auditors recommend that the Organization establish policies and procedures to support a system of internal controls, which provides a reasonable assurance that the charges to federal awards for salaries and other payroll related costs are accurate, allowable and properly allocated. Documentation of all employees? approved pay rates, hours worked and support for the allocation percentages (or actual hours worked) should be maintained. Actions Taken or Planned: The Organization terminated our professional relationship with our financial services provider in FY23, Quatrro BSS. We established a financial services contract with Metropolitan Family Services (MFS) that began July 1, 2022. MFS manages over 130 million dollars in revenue each year and the current finance team has over 50+ years of combined experience managing government and private contracts. MFS is a Professional Employer Organization (PEO) for five organizations averaging four million dollars in annual revenue and has established back-office and finance service contracts with those organizations. MFS has policies and procedures to support a system of internal controls which provides a reasonable assurance that charges to federal awards for payroll related costs are accurate, allowable, and properly allocated. Budget estimates are used for interim accounting purposes provided the estimates produce reasonable approximations of activity performed. The MFS finance team and the Organization's executive team review payroll allocations each quarter. Allocations are supported by an after-the-fact accounting of employee time and effort in a Personal Activity Report (PAR), significant changes in work activity are identified and entered into the record, and the after-the-fact review is completed to make all necessary adjustments to the final amount charged to the Organization's federal awards to help ensure charges are accurate, allowable, and properly allocated. Person Responsible: The Howard Area Community Center Executive Director, Jason Kaiser and the Metropolitan Family Services finance team including CFO James Baldwin, Controller Kelly Kelly, Director of Budget Don Pzynarski, and Assistant Budget Director Emilia Vargas. Estimated Date of Completion: April 2023.

View Audit 34716 Questioned Costs: $1

Finding 33790 (2022-002)

Material Weakness 2022

Advocates for A Healthy Community, Inc. D/b/a Jordan Valley Community

MO

Questioned Costs Allowable Costs / Cost Principles Cash Management

February 21, 2023 To Whom It May Concern: RE: Grants for Capital Development in Health Centers Assistance Listing # 93.526, Finding 2022-002 Corrective Action Plan During our fiscal year 2022 audit, the Organization drew down grant funds under this award and spent them on expenditures that w...

February 21, 2023 To Whom It May Concern: RE: Grants for Capital Development in Health Centers Assistance Listing # 93.526, Finding 2022-002 Corrective Action Plan During our fiscal year 2022 audit, the Organization drew down grant funds under this award and spent them on expenditures that were not allowable. This was a clerical error as finance staff thought they were drawing down funds under the Community Health Center grant instead of this capital grant. The draw was used to pay salaries instead of capital items that this grant was intended for. We have self-reported this issue to HRSA and have been approved to transfer these funds to the appropriate award so they could be spent properly. Although controls are in place to help prevent these types of errors to occur and were effective for the Organization?s other Federal awards, they were not effective for this award. We have reviewed our grant drawdown procedures and have discussed this error internally with finance staff and provided training as appropriate. Our audit partner has discussed this issue with the Organization?s Chief Executive Officer (CEO) and the Board of Directors. A robust discussion occurred in our February board meeting about this issue, how it occurred and what measures need to be taken to help prevent this type of error in the future. At this time, all corrective actions have been taken. We are currently without a Chief Financial Officer but K. Brooks Miller, CEO supervised these corrections and took responsibility to make sure these corrective actions were taken.

View Audit 32657 Questioned Costs: $1

Corrective Action Plans

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