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2025-001 Unallowable Costs Planned Corrective Action Plan: Heartwood agrees with the finding and acknowledges that two expenditures charged to the Preschool Development Grants (PDG) program were determined to be unallowable under Federal cost principles. To address this issue and prevent similar occ...
2025-001 Unallowable Costs Planned Corrective Action Plan: Heartwood agrees with the finding and acknowledges that two expenditures charged to the Preschool Development Grants (PDG) program were determined to be unallowable under Federal cost principles. To address this issue and prevent similar occurrences in the future, Heartwood will implement the following corrective actions: 1. Enhanced Review Procedures Heartwood will implement additional review procedures for expenditures charged to Federal programs to ensure that all costs are evaluated for allowability under Uniform Guidance (2 CFR §200.403) and the specific terms and conditions of the PDG grant prior to being charged to the grant. 2. Training for Program and Fiscal Staff Program administrators and fiscal staff responsible for processing or approving grant expenditures will receive training on Federal cost principles and allowable expenditures under Uniform Guidance and the PDG program requirements. 3. Monitoring and Oversight Heartwood will require periodic supervisory review of grant expenditures to confirm that costs charged to the program are properly supported, reasonable, and allowable. 4. Review of Current-Year Expenditures Heartwood will review other expenditures charged to the PDG program during the fiscal year to determine whether additional unallowable costs were incurred and will take appropriate corrective action if necessary. 5. Disposition of Questioned Costs Heartwood will work with the pass-through entity or Federal awarding agency to determine the appropriate disposition of the questioned costs totaling $1,467.53, which may include reimbursement to the grant if required. Anticipated Completion Date: December 31, 2026 Responsible Contact Person: Sherri Sampson, Executive Director
Program: HIV Emergency Relief Project Grants (Ryan White) Federal Financial Assistance Listing Number: 93.914 Federal Grantor: U.S. Department of Health and Human Services Award No. and Year: 6H89HA00019-32-04; 2024 Compliance Requirements: Activities Allowable or Unallowed and Allowable Costs/Cost ...
Program: HIV Emergency Relief Project Grants (Ryan White) Federal Financial Assistance Listing Number: 93.914 Federal Grantor: U.S. Department of Health and Human Services Award No. and Year: 6H89HA00019-32-04; 2024 Compliance Requirements: Activities Allowable or Unallowed and Allowable Costs/Cost Principles Type of Finding: Significant Deficiency in Internal Control over Compliance Criteria: 2 CFR Section 200.303(a), Internal Controls, states that the non-Federal entity must establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. 2 CFR Section 200.430, Compensation – Personal Services, states that charges to Federal awards for salaries and wages must be based on records that accurately reflect the work performed. These records must be supported by a system of internal control that provides reasonable assurance that the charges are accurate, allowable, and properly allocated. Condition: During our testing, for one (1) out of sixty (60) payroll expenditures, we noted the timecard did not contain documented evidence of supervisory approval. Cause: The County’s internal control procedures were not consistently followed to ensure that the review and approval of timecards was documented. Effect: Lack of documented review for personnel hours could lead to an increased risk that unallowable or inaccurate activities and costs to be charged to the Federal program. Questioned Costs: No questioned costs were identified as a result of our procedures. Context/Sampling: A nonstatistical sampling of sixty (60) timecards were selected for testing out of a population of 5,994. The condition noted above was identified during our procedures related to activities allowed or unallowed and allowable costs/cost principles. Repeat Finding from Prior Years: No. Recommendation: We recommend that the County strengthen its policies and procedures to ensure that timecards consistently include documented evidence of supervisor approval prior to payroll processing. The County should also establish compensating controls for circumstances where timely supervisory approvals is not possible, and ensure such controls are consistently documented. Management Response and Corrective Action Plan: 1. Person Responsible: Barbara Harano, HCA Disbursements Manager 2. Corrective action plan: HCA Payroll will continue to review the Unapproved Timesheets Report in OC Time and send reminder emails to all supervisors with pending approvals. If supervisory approvals cannot be obtained by the OC Time timesheet upload deadlines, HCA Payroll will ensure documented timesheet approvals are appended through the OC Time amendment process and archived in the Unit’s shared drive. 3. Anticipated Implementation date: January 22, 2026
Program: Refugee and Entrant Assistance State/Replacement Designee Administered Programs Federal Financial Assistance Listing Number: 93.566 Federal Grantor: U.S. Department of Health and Human Services Pass Through: California Department of Social Services Award No. and Year: Various Compliance Req...
Program: Refugee and Entrant Assistance State/Replacement Designee Administered Programs Federal Financial Assistance Listing Number: 93.566 Federal Grantor: U.S. Department of Health and Human Services Pass Through: California Department of Social Services Award No. and Year: Various Compliance Requirements: Activities Allowed or Unallowed, Allowable Costs/Cost Principles, and Eligibility Type of Finding: Significant Deficiency in Internal Control Over Compliance and Instance of Noncompliance Criteria: 2 CFR Section 200.303(a), Internal Controls, states that the non-Federal entity must establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. 45 CFR Part 400, prescribes the eligibility conditions refugees must meet to receive RCA including the following: • RCA recipients must meet the general eligibility requirements for immigration status and refugee identification in accordance with 45 CFR §400.40 - §400.44. • RCA is limited to refugees who are ineligible for TANF, SSI, OAA, AB, APTD, and AABD in accordance with 45 CFR §400.53. • Mandatory work registrants must comply with work requirements and may not voluntarily quit or refuse suitable employment within 30 days prior to application; benefits must be terminated when requirements are not met (45 CFR §§400.75(a), 400.77, and 400.82(a)). • RCA payments may not exceed ORR-authorized rates and may not be less than the State TANF payment rate (45 CFR §§400.60(b) and 400.60(d); ORR PL 22-01). Condition: During our testing of the Social Services Agency’s (SSA) compliance with eligibility and allowable cost/cost principles, we noted the following: • One (1) instance of payment issued to a participant who did not meet eligible immigration status requirements. • One (1) instance of payment issued to a participant who was eligible for another federally funded cash assistance program. • One (1) instance of payment issued to a participant who failed to meet the mandatory work registrant requirements within the required time frame. • One (1) instance of payment issued to a participant using an incorrect benefit rate. Cause: Controls over eligibility determination and benefit rate calculation were not consistently applied, including insufficient verification and supervisory review of eligibility criteria and payment amounts. Effect: Program funds were expended for ineligible participants and an incorrect benefit rate was used, increasing the risk of noncompliance with federal requirements. Questioned Costs: Questioned costs for cases tested in which we determined to be ineligible to receive cash assistance was $1,814. Context/Sampling: A nonstatistical sample of sixty (60) out of all active program participants were sampled. For ineligible cases, we have projected questioned costs against the remaining population for a total of $24,276. The underpayment related to an incorrect benefit rate used was not projected as questioned costs as this did not result in an over-expenditure of federal funds The condition above was identified during our procedures over eligibility, activities allowed or unallowed, and allowable costs/cost principles testing. Repeat Finding from Prior Years: Yes. Recommendation: We recommend that the SSA department strengthen its internal controls to ensure that program eligibility criteria and benefit determinations are properly supported. Management Response and Corrective Action Plan: 1. Person Responsible: Rosa Palacios, Human Services Manager 2. Corrective action plan: Staff Guidance and Eligibility Reminder: Program will issue a reminder to all eligibility staff reinforcing program eligibility requirements and the importance of thoroughly reviewing documentation when making eligibility determinations. The reminder will highlight key areas identified in the audit findings, including verification of immigration eligibility, identifying applicants who may qualify for other federally funded cash assistance programs, and ensuring accurate benefit determinations. Work Requirement Reporting Coordination: Program will also communicate with the contracted provider responsible for monitoring work participation requirements to reinforce expectations regarding timely reporting of participant non-compliance. Internal staff will be reminded to take timely action once non-compliance is reported to ensure benefits are discontinued in accordance with program requirements. System Correction: The incorrect benefit rate identified during the audit was related to a prior system configuration issue that required manual processing. The system has since been updated. Program staff will continue to monitor system updates and verify benefit calculations as needed. 3. Anticipated Implementation date: June 30, 2026
Program: WIC Special Supplemental Nutrition Program for Women, Infants, and Children Federal Financial Assistance Listing Number: 10.557 Federal Grantor: U.S. Department of Agriculture Pass-Through: California Department of Public Health Award No. and Year: 22-10270 A03 and 2022 Compliance Requireme...
Program: WIC Special Supplemental Nutrition Program for Women, Infants, and Children Federal Financial Assistance Listing Number: 10.557 Federal Grantor: U.S. Department of Agriculture Pass-Through: California Department of Public Health Award No. and Year: 22-10270 A03 and 2022 Compliance Requirements: Activities Allowed or Unallowed and Allowable Costs/Cost Principles Type of Finding: Significant Deficiency in Internal Control over Compliance Criteria: 2 CFR Section 200.303(a), Internal Controls, states that the non-Federal entity must establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. 2 CFR Section 200.430, Compensation – Personal Services, states that charges to Federal awards for salaries and wages must be based on records that accurately reflect the work performed. These records must be supported by a system of internal control that provides reasonable assurance that the charges are accurate, allowable, and properly allocated. Condition: During our testing of the HCA’s provisions for activities allowed or unallowed and allowable costs/cost principles requirements, we noted that for one (1) of sixty (60) payroll samples tested, the employee was able to review and approve their own timecard. Cause: It was determined that the control deficiency resulted from a system configuration error that permitted the employee to approve their own timecard under the supervisor/manager review role. Effect: Failure to consistently apply internal controls over payroll charges increases the risk that unallowable or unsupported payroll costs could be charged to the Federal program and not be detected in a timely manner. Questioned Costs: No questioned costs were identified as a result of our procedures. Context/Sampling: A nonstatistical sampling of sixty (60) timecards was selected for testing out of a population of 1,144. The condition noted above was identified during our procedures related to activities allowed or unallowed and allowable costs/cost principles. Repeat Finding from Prior Years: No. Recommendation: Management should ensure appropriate segregation of duties within the payroll system by restricting approval authority to independent supervisors or managers and implementing controls to prevent self-approval. In addition, management should periodically review user access roles and system configurations to confirm that approval controls are operating as designed and that payroll charges to Federal programs are allowable, properly allocated, and adequately supported. Management Response and Corrective Action Plan: 1. Person Responsible: Barbara Harano, HCA Disbursements Manager 2. Corrective action plan: An unexpected change occurred in the OC Time system that allowed an employee to both submit and approve their own timesheet. This issue had been previously reported and resolved. Auditor-Controller IT has reported the issue again to the timekeeping system vendor and is currently validating and testing the updated configuration to ensure the problem does not recur. 3. Anticipated Implementation date: June 30, 2026
Finding: 2025-005 Name of Contact Person: Linda Higuet, Interim Finance Director Corrective Action: Management will make organizational changes as needed to ensure that each program is self-sustaining. Upper level management will obtain training for allowable costs/cost principles and activities all...
Finding: 2025-005 Name of Contact Person: Linda Higuet, Interim Finance Director Corrective Action: Management will make organizational changes as needed to ensure that each program is self-sustaining. Upper level management will obtain training for allowable costs/cost principles and activities allowed/unallowed under the Uniform Guidance and specific program regulations. Additionally, all upper level management will obtain training for financial and program specific reporting. Financial reports will be reviewed monthly by program directors, and program specific reporting will undergo monthly review by program directors. Proposed Completion Date: As soon as possible.
Finding: 2025-004 Name of Contact Person: Linda Higuet, Interim Finance Director Corrective Action: Management will review all costs to ensure they are allowable and in accordance with the cost principles of the Uniform Guidance and specific program regulations, as applicable. Management will obtain...
Finding: 2025-004 Name of Contact Person: Linda Higuet, Interim Finance Director Corrective Action: Management will review all costs to ensure they are allowable and in accordance with the cost principles of the Uniform Guidance and specific program regulations, as applicable. Management will obtain training regarding these cost principles and regulations. Proposed Completion Date: Immediately.
CORRECTIVE ACTION PLAN U.S. Department of Education | Arizona Department of Education Tuba City Unified School District No. 15 respectfully submits the following corrective action plan for the year ended June 30, 2025. Audit period: July 1, 2024 – June 30, 2025 The findings from the schedule of find...
CORRECTIVE ACTION PLAN U.S. Department of Education | Arizona Department of Education Tuba City Unified School District No. 15 respectfully submits the following corrective action plan for the year ended June 30, 2025. Audit period: July 1, 2024 – June 30, 2025 The findings from the schedule of findings and questioned costs are discussed below. The findings are numbered consistently with the numbers assigned in the schedule. FINANCIAL STATEMENT FINDINGS 2025-001 INFORMATION TECHNOLOGY Type of Finding: Material Weakness in Internal Control Over Financial Reporting Condition/Context: The District did not establish internal control procedures over information technology systems to ensure proper protection of District and student data. The following control deficiencies were noted regarding the District’s information technology policies and procedures: • The District did not limit access within the District’s accounting software to only those areas in each employee’s job function. Several employees had full administrative access to the accounting software, including third-party consultants, without compensating manual controls. • The District did not have a formal written policy regarding system or software changes. • Data-sharing agreements with third party provides that had access to the District’s data were not provided. • Documentation was not provided to support that the IT systems generated electronic audit trail reports or change logs were being reviewed or analyzed. This would include systemgenerated incident or error reports. • Disaster recovery and contingency plans were not provided. Recommendation: To strengthen internal controls, the District should evaluate its procedures regarding information technology security. The District should review and establish IT policies and procedures to protect the District’s data, train employees, establish backup plans, disaster recover or contingency plans, and 3rd party security and data confidentiality agreements. System general irregularity reports, including incident or error reports should be reviewed on an ongoing basis. Corrective Action: The District will evaluate its procedures regarding information technology security. The District will review and establish IT policies and procedures to protect the District’s data, disaster recovery or contingency plans, and 3rd party security and data confidentiality agreements. Additionally, the District will review system generated irregularity reports, including incident or error reports on an ongoing basis. Planned completion date for corrective action plan: For the period ending June 30, 2026. Name of the contact person responsible for corrective action: Leah Begay, Business Manager
Finding No. 2025-005 ALN No. 10.179 Program Title: Micro-Grants Food Security Program Grant Award No.: AM200100XXXG132 21MGFSPHI1003-00 AM22MGFSPHI1007-04 23MGFSPHI1011-00 24MGFSPHI1016-00 Condition An elapsed time of 583 days between the drawdown and disbursement date of funds for the program and t...
Finding No. 2025-005 ALN No. 10.179 Program Title: Micro-Grants Food Security Program Grant Award No.: AM200100XXXG132 21MGFSPHI1003-00 AM22MGFSPHI1007-04 23MGFSPHI1011-00 24MGFSPHI1016-00 Condition An elapsed time of 583 days between the drawdown and disbursement date of funds for the program and that the check date of 01/24/2025 occurred after the grant period expiration of 09/29/2024. Indicating that cash management controls were not operating to minimize time between transfer and disbursement and that the period of performance was unauthorized to be extended past the budget date. Corrective Action Plan Concur. The Hawaii Department of Agriculture and Biosecurity (DAB) will change administrative procedures for drawdown and disbursement of federal funds under the Micro-Grants Food Security Program. DAB will process the grant contracts and payments in batches of about 100 micro-grants per month, and federal drawdown will not occur until about a batch of 100 contracts have been executed. Additional staff hired for grant processing will expedite the payment process to ensure conformity with the 25-day disbursement timeline. Person Responsible Brendan Akamu, Market Development Branch Manager Anticipated Date of Completion Corrective action plan will be implemented in April 2026.
English Language Acquisition State Grants – Assistance Listing No. 84.365 Recommendation: We recommend Boston Public Schools review and enhance its procedures and internal controls to ensure it charges expenditures to the program that are incurred within an award’s allowable period of performance. B...
English Language Acquisition State Grants – Assistance Listing No. 84.365 Recommendation: We recommend Boston Public Schools review and enhance its procedures and internal controls to ensure it charges expenditures to the program that are incurred within an award’s allowable period of performance. Boston Public Schools should enhance procedures, implement proper controls, and perform additional training over time and effort reporting. Boston Public Schools should not seek federal reimbursement unless it can substantiate that the time and effort was dedicated to the federal program. Documentation should be readily available for audit. Action taken in response to finding: Boston Public Schools is conducting a full review of all employees charged to Title III to ensure required time and effort documentation is complete and compliant. Name(s) of the contact person(s) responsible for corrective action: Marcela Mahecha, Director of Federal & State Grants, Programs, and Compliance Boston Public Schools Planned completion date for corrective action plan: June 30, 2027
English Language Acquisition State Grants – Assistance Listing No. 84.365 Recommendation: We recommend Boston Public Schools enhance procedures, implement proper controls, and perform additional training over time and effort reporting. BPS should not seek federal reimbursement unless it can substant...
English Language Acquisition State Grants – Assistance Listing No. 84.365 Recommendation: We recommend Boston Public Schools enhance procedures, implement proper controls, and perform additional training over time and effort reporting. BPS should not seek federal reimbursement unless it can substantiate that the time and effort was dedicated to the federal program. Documentation should be readily available for audit. Action taken in response to finding: Immediate corrective action: Boston Public Schools is conducting a full review of all employees charged to Title III to ensure required time and effort documentation is complete and compliant. Name(s) of the contact person(s) responsible for corrective action: Marcela Mahecha, Director of Federal & State Grants, Programs, and Compliance Boston Public Schools Planned completion date for corrective action plan: June 30, 2027
Management’s Response Regarding Corrective Action Taken or Planned Management acknowledges this finding and concurs that payroll costs charged to the Housing Choice Voucher (HCV) Program under CFDA 14.871 must be supported by records that accurately reflect actual work performed, as required under 2...
Management’s Response Regarding Corrective Action Taken or Planned Management acknowledges this finding and concurs that payroll costs charged to the Housing Choice Voucher (HCV) Program under CFDA 14.871 must be supported by records that accurately reflect actual work performed, as required under 2 CFR 200.430(i). The City's prior practice of using predetermined allocation percentages to distribute payroll across multiple funding sources did not fully satisfy the federal standards for documenting actual time worked on HCV-eligible activities. Management notes that the projected questioned costs of $214,045 represent a projection of potential unallowable payroll charges based on the sample tested, that were unsupported due to insufficient time documentation and are not necessarily unallowable. The City will coordinate with HUD to determine the appropriate resolution of these questioned costs. The corrective actions outlined in Finding 2025-007 apply equally to the HCV Program. Specifically: 1. Actual Time Reporting: All Housing Authority employees who perform HCV program activities are required to document actual hours worked per program activity on their timesheets, effective immediately. 2. Discontinuation of Fixed Allocations: Predetermined allocation percentages will no longer serve as the basis for payroll charges to the HCV Program. All charges must be supported by actual time records. 3. Timesheet System and Training: Housing Authority staff will be included in the system enhancement and training initiatives described in Finding 2025-007, with particular emphasis on documentation standards under the HCV Program's applicable requirements4. Quarterly Internal Compliance Reviews: HCV payroll charges will be included in the Accounting & Finance Division's quarterly compliance reviews, with findings reported to the City Manager and the Housing Authority Director
Management’s Response Regarding Corrective Action Taken or Planned Management acknowledges this finding and concurs that payroll costs charged to federal awards must be supported by documentation accurately reflecting the actual work performed, as required under 2 CFR 200.430(i). The City's prior pr...
Management’s Response Regarding Corrective Action Taken or Planned Management acknowledges this finding and concurs that payroll costs charged to federal awards must be supported by documentation accurately reflecting the actual work performed, as required under 2 CFR 200.430(i). The City's prior practice of distributing payroll costs using predetermined allocation percentages for employees working across multiple programs did not fully satisfy federal requirements for documenting actual time expended on CDBG-eligible activities. Management notes that the projected questioned costs of $217,355 represent a projection of potential unallowable payroll charges based on the sample tested, that were unsupported due to insufficient time documentation and are not necessarily unallowable. The City is prepared to work with HUD to determine the appropriate resolution of these questioned costs. The City is implementing the following corrective actions: 1. Actual Time Reporting: Effective immediately, all employees who charge any portion of their time to federal grant programs—including CDBG—are required to document actual hours worked on each program or activity in their timesheets. Time entries must correspond to specific program activities and must be reviewed and certified by the employee's supervisor each pay period. 2. Discontinuation of Fixed Allocation Percentages: The City is eliminating the use of predetermined payroll allocation percentages as the basis for charging personnel costs to federally funded programs. Future payroll charges to federal awards will be based exclusively on actual documented hours, in compliance with 2 CFR 200.430(i). 3. Staff Training: The City will provide mandatory training to all employees who charge time to federal programs, supervisors responsible for timesheet review, and payroll staff. Training will cover the requirements of 2 CFR 200.430, the City's updated time documentation procedures, and the consequences of noncompliance.4. Quarterly Internal Compliance Reviews: Beginning in Q1 of FY 2025-26, the Accounting & Finance Division will conduct quarterly reviews of payroll charges to all federal programs to confirm that expenditures are supported by compliant time records. Results will be reported to the applicable department directors.
Special Education (IDEA) Cluster – 84.027 – Special Education – Grants to States – Activities Allowed or Unallowed and Unallowable Costs/Cost Principles Condition Supporting documentation for tuition reimbursements did not include a receipt showing the cost per credit hour, which is required to be s...
Special Education (IDEA) Cluster – 84.027 – Special Education – Grants to States – Activities Allowed or Unallowed and Unallowable Costs/Cost Principles Condition Supporting documentation for tuition reimbursements did not include a receipt showing the cost per credit hour, which is required to be submitted as part of its contract with its employees. Recommendation Procedures should be established and implemented to ensure that all supporting documentation be obtained and saved. Comments on the Finding Recommendation NCKSEC agrees with the findings. A procedure has been put in place to assure that receipts are collected from teachers reflecting the cost per credit hour for the amount the teacher is reimbursed. Receipts are collected before payment is issued. Action Taken Receipts are being collected before payment is issued as reimbursement per credit hour. This action began at the start of the 2025-2026 school year.
Allowable Costs and Activities Condition: Payroll costs were allocated to grants in a manner inconsistent with the time and effort documentation provided. Recommendation: Management should reinforce the requirement to retain time and effort documentation for all employees that are allocated to multi...
Allowable Costs and Activities Condition: Payroll costs were allocated to grants in a manner inconsistent with the time and effort documentation provided. Recommendation: Management should reinforce the requirement to retain time and effort documentation for all employees that are allocated to multiple grants and implement a review process whereby the allocation percentages used are compared to the employee attestations provided. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action planned in response to finding: TCA Health is enhancing its time and effort and payroll allocation processes to ensure charges to grants align with documented effort. We are building on our monthly review process for time and effort by formalizing a review in which payroll allocation percentages are compared to signed attestations, with Finance documenting any corrections and follow-up. We are also partnering with HR to ensure all Personnel Action Forms (PAFs) include appropriate grant coding and to require an updated PAF whenever an employee’s grant funding or allocation changes. In addition, TCA Health is implementing an automated integration between ADP and Sage Intacct so that approved timesheets flow directly into payroll and grant reporting, improving accuracy and the audit trail. We will leverage the systems and limit manual entry. Name(s) of the contact person(s) responsible for corrective action: Bob Van Gilder Planned completion date for corrective action plan: 9/1/26 If the U.S. Departments above have questions regarding this plan, please call Veronica Clarke, Chief Executive Office, at 773-928-5090.
FINDING 2025-013 Finding Subject: Head Start Cluster – Activities Allowed or Unallowed, Allowable Costs/Cost Principles Contact Person Responsible for Corrective Action: Adrian Wilkerson, Chief Financial Officer Chris Akers, Treasurer Artiya Nash, Head Start Director Contact Phone Number and Email A...
FINDING 2025-013 Finding Subject: Head Start Cluster – Activities Allowed or Unallowed, Allowable Costs/Cost Principles Contact Person Responsible for Corrective Action: Adrian Wilkerson, Chief Financial Officer Chris Akers, Treasurer Artiya Nash, Head Start Director Contact Phone Number and Email Address: awilkerson@chsnewtech.com cakers@chsnewtech.com anash@chsnewtech.com 219-838-1819 Views of Responsible Officials: We concur with the finding. Description of Corrective Action Plan: The business office will generate a payroll distribution report by fund after each payroll period. This report will list each individual paid from this fund. This report will be provided to the grant director and will be signed and dated and returned to the business office to be filed with the payroll file. Anticipated Completion Date: This will be implemented immediately. 62
FINDING 2025-011 Finding Subject: COVID-19 Education Stabilization Fund – Activities Allowed or Unallowed, Allowable Costs/Cost Principles Contact Person Responsible for Corrective Action: Adrian Wilkerson, Chief Financial Officer Chris Akers, Treasurer Regin Johnson, Title I Grant Director Contact ...
FINDING 2025-011 Finding Subject: COVID-19 Education Stabilization Fund – Activities Allowed or Unallowed, Allowable Costs/Cost Principles Contact Person Responsible for Corrective Action: Adrian Wilkerson, Chief Financial Officer Chris Akers, Treasurer Regin Johnson, Title I Grant Director Contact Phone Number and Email Address: awilkerson@chsnewtech.com cakers@chsnewtech.com rjohnson@chsnewtech.com 219-838-1819 Views of Responsible Officials: We concur with the finding. Description of Corrective Action Plan: The business office will generate a payroll distribution report by fund after each payroll period. This report will list each individual paid from this fund. This report will be provided to the grant director and will be signed and dated and returned to the business office to be filed with the payroll file. All claims submitted to the business office for payment will need to be signed by the grant director prior to payment. The grant director will provide a detailed invoice, and grant expenditure account information. All stipends will require a copy of the approved board minutes to be included in the payroll file. This letter must provide the expenditure account to be charged for the stipend. These stipend letters will be reviewed and signed by the treasurer or business manager as part of the regular payroll review process. Anticipated Completion Date: This will be implemented immediately.
FINDING 2025-008 Finding Subject: Title I Grants to Local Educational Agencies - Activities Allowed or Unallowed, Allowable Costs/Cost Principles Contact Person Responsible for Corrective Action: Adrian Wilkerson, Chief Financial Officer Chris Akers, Treasurer Regin Johnson, Title I Grant Director C...
FINDING 2025-008 Finding Subject: Title I Grants to Local Educational Agencies - Activities Allowed or Unallowed, Allowable Costs/Cost Principles Contact Person Responsible for Corrective Action: Adrian Wilkerson, Chief Financial Officer Chris Akers, Treasurer Regin Johnson, Title I Grant Director Contact Phone Number and Email Address: awilkerson@chsnewtech.com cakers@chsnewtech.com rjohnson@chsnewtech.com 219-838-1819 Views of Responsible Officials: We concur with the finding. Description of Corrective Action Plan: The business office will generate a payroll distribution report by fund after each payroll period. This report will list each individual paid from this fund. This report will be provided to the grant director and will be signed and dated and returned to the business office to be filed with the payroll file. All claims submitted to the business office for payment will need to be signed by the grant director prior to payment. The grant director will provide a detailed invoice, and grant expenditure account information. Anticipated Completion Date: This will be implemented immediately.
FINDING 2025-006 Finding Subject: Special Education Cluster (IDEA) – Level of Effort Contact Person Responsible for Corrective Action: Adrian Wilkerson, Chief Financial Officer Chris Akers, Treasurer Contact Phone Number and Email Address: awilkerson@chsnewtech.com cakers@chsnewtech.com 219-838-1819...
FINDING 2025-006 Finding Subject: Special Education Cluster (IDEA) – Level of Effort Contact Person Responsible for Corrective Action: Adrian Wilkerson, Chief Financial Officer Chris Akers, Treasurer Contact Phone Number and Email Address: awilkerson@chsnewtech.com cakers@chsnewtech.com 219-838-1819 Views of Responsible Officials: We concur with the finding. Description of Corrective Action Plan: The school corporation will use the Form 9 to reconcile the MOE. The treasurer will prepare a report providing the total monthly expenditures to the cooperative, along with the wage and benefit report provided by the cooperative. Transportation expenses will be divided and recorded in the ledger clearly delineating which expenses are special education. When reporting MOE, the school corporation will reconcile the ledger with invoices. The business manager will review these costs prior to the MOE Workbook submission as part of the Special Education grant application. Anticipated Completion Date: This will be completed by the next SEFA submission date of August 29, 2026.
FINDING 2025-005 Finding Subject: Special Education Cluster (IDEA) - Earmarking Contact Person Responsible for Corrective Action: Adrian Wilkerson, Chief Financial Officer Chris Akers, Treasurer Contact Phone Number and Email Address: awilkerson@chsnewtech.com cakers@chsnewtech.com 219-838-1819 View...
FINDING 2025-005 Finding Subject: Special Education Cluster (IDEA) - Earmarking Contact Person Responsible for Corrective Action: Adrian Wilkerson, Chief Financial Officer Chris Akers, Treasurer Contact Phone Number and Email Address: awilkerson@chsnewtech.com cakers@chsnewtech.com 219-838-1819 Views of Responsible Officials: We concur with the finding. Description of Corrective Action Plan: The school corporation will request an update to the Cooperative Agreement requiring the cooperative to provide school specific expenditure reports for non-public services on a quarterly basis. The school corporation will require detail level data from the cooperative for earmarking compliance. During SEFA and AFR preparation, the treasurer will reconcile the cooperatives year-end report to the proportionate share requirement listed in the IDOE grant award letter. Anticipated Completion Date: This will be completed by the next SEFA submission date of August 29, 2026.
FINDING 2025-003 Finding Subject: Child Nutrition Cluster - Activities Allowed or Unallowed, Allowable Costs/Cost Principles Contact Person Responsible for Corrective Action: Adrian Wilkerson, Chief Financial Officer Chris Akers, Treasurer Fredrick Vaughn, Food Service Director Contact Phone Number ...
FINDING 2025-003 Finding Subject: Child Nutrition Cluster - Activities Allowed or Unallowed, Allowable Costs/Cost Principles Contact Person Responsible for Corrective Action: Adrian Wilkerson, Chief Financial Officer Chris Akers, Treasurer Fredrick Vaughn, Food Service Director Contact Phone Number and Email Address: awilkerson@chsnewtech.com cakers@chsnewtech.com fvaughn@chsnewtech.com 219-838-1819 Views of Responsible Officials: We concur with the finding. Description of Corrective Action Plan: The monthly review process will include detailed ledgers with receipts and invoices provided. The business manager and food service director will review 2CFR 200.403. The business manager or treasurer will review five random line items and trace them back to the source document. The monthly review will be signed by the business manager, food service director and treasurer. Anticipated Completion Date: This will be implemented with the February 2026 monthly review process.
Contact Person – Mike McNeff, Superintendent Correcting Plan – The Superintendent and the Business Manager will work together to ensure that all expenditures incurred will follow internal control policies. Completion Data – June 30, 2026
Contact Person – Mike McNeff, Superintendent Correcting Plan – The Superintendent and the Business Manager will work together to ensure that all expenditures incurred will follow internal control policies. Completion Data – June 30, 2026
Payroll Allocations: Criteria: Management was responsible for implementing policies and procedures to ensure salaries and wages reimbursable by the federal award are approved and submitted for reimbursement at appropriate amounts. Condition: During compliance testing, it was determined that certain ...
Payroll Allocations: Criteria: Management was responsible for implementing policies and procedures to ensure salaries and wages reimbursable by the federal award are approved and submitted for reimbursement at appropriate amounts. Condition: During compliance testing, it was determined that certain payroll expenses related to an employee whose wages are reimbursed by the federal award, were not properly allocated to the federal award. Context: Improper allocations of one employee's wages resulted in an under-allocation totaling $9,287 to the federal award during the year ended June 30, 2025. Cause: The allocation percentages were not appropriately updated in the underlying accounting system. Effect: As a result of the condition, the payroll expenses related to the federal award were under-reported during the year ended June 30, 2025. Questioned Costs: None. Repeat Finding: No. Recommendation: In the future, the System should implement appropriate processes and controls to ensure the underlying accounting system is updated timely and appropriately for changes in payroll allocations. Contact: Michael Hammond, Interim Health System Controller. Corrective Actions Taken or Planned: Management acknowledges the finding and ensure to implement appropriate processes and controls to update the system accordingly as needed.
ICCAP Management will strengthen internal controls over payroll by implementing a new daily time-tracking process within existing payroll procedures. Program Directors will enforce a mandatory 15-minute end-of-day shutdown period for staff to coplete time and activity entries. Directors will also be...
ICCAP Management will strengthen internal controls over payroll by implementing a new daily time-tracking process within existing payroll procedures. Program Directors will enforce a mandatory 15-minute end-of-day shutdown period for staff to coplete time and activity entries. Directors will also be required to verify that all activities recorded on employee timesheets can be supported by case notes, reports, or direct visual confirmation. The fiscal department will review and address any shortages in federal funding related to payroll and will identify the approrpiate support program for reallocation prior to receiving bi-weekly payroll documentation.
Allowable Cost Approval - Criteria: The recipient must: establish, document, and maintain effective internal control over the Federal award that provides reasonable assurance that the recipient is managing the federal award in compliance with federal statutes, regulations, and terms and conditions o...
Allowable Cost Approval - Criteria: The recipient must: establish, document, and maintain effective internal control over the Federal award that provides reasonable assurance that the recipient is managing the federal award in compliance with federal statutes, regulations, and terms and conditions of the federal award. Condition: Payroll is an allowable cost per the grant agreement once approved by DESE in the program budget. Employee changes throughout the year require reapproval of the budget. The Center did not maintain documentation to support reapprovals and budget changes during the year, nor was there any documented review of the budget change submitted. Context: For twenty-five payroll selections, there was no documentation maintained to support a direct correlation to the approved payroll budget. Cause: Due to the size of the entity, the Executive Director is the only one that processes and reviews grant expenditures. Effect: No documentation was maintained to support review of the payroll expenditures when changes were made to the grant. Questioned Costs: None. Repeat Finding: No. Recommendation: Implement review procedures over allowable cost to ensure all employees charged to the grant have received DESE approval. Contact: Vincent Rivers, Executive Director. Corrective Actions Taken or Planned: We have implemented a policy for a program manager to review all allowable cost.
Contact Person – Rebecca Krein, Business Manager Little Eagle Grant School acknowledges the finding regarding insufficient payroll documentation. To address this, the School will implement a standardized certification form to be submitted with each employee timesheet. This form will require employee...
Contact Person – Rebecca Krein, Business Manager Little Eagle Grant School acknowledges the finding regarding insufficient payroll documentation. To address this, the School will implement a standardized certification form to be submitted with each employee timesheet. This form will require employees to certify that their time and effort were performed in accordance with the approved budget and assigned funding source(s). This process will strengthen documentation and ensure compliance with federal requirements moving forward. Completion Date – April 1, 2026
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