Corrective Action Plans

Finding 8720 (2022-007)

Material Weakness 2022

Cardiovascular Center Corporation of Puerto Rico and the Caribbean

PR

Questioned Costs Matching / Level of Effort / Earmarking Allowable Costs / Cost Principles § 200.300 § 200.306 § 200.308 § 200.309 § 200.403

Finding No. 2022-007 -Activities Allowed or Unallowed, Eligible Uses - FEMA Condition During the closeout procedures, the Cenh·al Office of Recovery, Reconstruction and Resiliency (COR3) office performed a 100% validation on Rental Equipment, supporting documents including conh"act smmnary record...

Finding No. 2022-007 -Activities Allowed or Unallowed, Eligible Uses - FEMA Condition During the closeout procedures, the Cenh·al Office of Recovery, Reconstruction and Resiliency (COR3) office performed a 100% validation on Rental Equipment, supporting documents including conh"act smmnary record, invoices, and proofs of payment. As a result of the validation, the total validated amount is $979,259 from an original amount of $1,260,775 submitted by the Corporation for reimbursement. Corporation response The Corporation agrees with the finding. Corrective Action Plan Upon receiving the audit findings, we initiated an immediate review of our FEMA-funded projects and expenditures. We are implementing immediate corrective actions to address the identified deficiencies and ensure strict compliance with FEMA guidelines regarding eligible uses. • Policies and Procedures Review - Simultaneously, the Corporation is reviewing our existing policies and procedures related to FEMA funds, with a specific focus on eligible activities. Any necessary revisions will be made to strengthen our policies and ensure rigorous adherence to FEMA guidelines and regulations. • Enhance Internal Controls - We are enhancing our internal controls related to FEMA fund utilization. This includes implementing additional checks and balances to improve the accuracy and reliability of our project management processes, ensuring they align with FEMA guidelines. ■ Communication Protocols Enhancements - We understand the importance of transparent communication regarding the use of FEMA funds. To address this, we are enhancing our communication protocols to ensure that all relevant stakeholders are informed of FEMA guidelines, project eligibility requirements, and any changes to procedures. • Return of Funds - Initiate the communication process with the Central Office of Recovery, Reconstruction, and Resiliency to obtain instructions for returning the funds to FEMA. Follow FEMA's specific guidelines on the return of funds, including the appropriate documentation, timelines, and c01mnunication procedures. ■ Finance Team - The Corporation has made changes to its management staff structure in the finance and budget department, with the mission of improving the monitoring process and compliance with federal and local regulations and the support of independent consultants. A new Finance and Budget Director and the Associate Director of Finance and Budget have been appointed. Names of the contact persons responsible for corrective action plan Jesus A. Rodrfguez Aviles - Financial Planning and Analysis Associate Director Cecilia Robles Kakiuchi - Financial Planning and Analysis Director Anticipated Completion Date Fiscal Year 2024

View Audit 11856 Questioned Costs: $1

Finding 8713 (2022-006)

Significant Deficiency 2022

Cardiovascular Center Corporation of Puerto Rico and the Caribbean

PR

Subrecipient Monitoring Internal Control / Segregation of Duties Allowable Costs / Cost Principles § 200.512

Finding No. 2022-006 - Audit Requirements for Auditees - Report Submission Condition The data collection form and the reporting package for the year ended on June 30, 2022, was not submitted to the Federal Audit Clearinghouse within the timeframe prescribed by the Uniform Guidance. Corporation resp...

Finding No. 2022-006 - Audit Requirements for Auditees - Report Submission Condition The data collection form and the reporting package for the year ended on June 30, 2022, was not submitted to the Federal Audit Clearinghouse within the timeframe prescribed by the Uniform Guidance. Corporation response The Corporation agrees with the finding. Corrective Action Plan Upon receipt of the audit findings, we initiated an immediate review of our reporting procedures. We have identified specific areas that require attention and are implementing quick corrective actions to address the identified deficiencies. ■ Policies and Procedures Review - Simultaneously, we are reviewing our existing policies and procedures related to federal awards reporting. This includes a reassessment of reporting tirnelines, data validation processes, and the overall framework for ensuring accuracy and completeness in our reports. ■ Staff Training and Development - Recognizing the critical role of our personnel in the reporting process, we are providing additional training to the individuals involved. This training will emphasize the importance of adherence to reporting guidelines, accurate data entry, and the significance of meeting established deadlines. ■ Communication Protocol Enhancement - We recognize the importance of effective communication regarding reporting processes. To address this, we are enhancing our communication protocols to ensure that all relevant stakeholders are informed of reporting requirements, timelines, and any changes to procedures. ■ Monitoring - The Corporation designated the Financial Planning and Analysis Associate Director in charge of monitoring the compliance with the federal awards reporting requirements. Names of the contact persons responsible for corrective action plan Jesus A. Rodriguez Aviles - Financial Planning and Analysis Associate Director Cecilia Robles Kakiuchi - Financial Planning and Analysis Director Anticipated Completion Date Fiscal Year 2024

View Audit 11856

Finding 8712 (2022-004)

Material Weakness 2022

Cardiovascular Center Corporation of Puerto Rico and the Caribbean

PR

Subrecipient Monitoring Matching / Level of Effort / Earmarking Internal Control / Segregation of Duties § 200.303

Finding No. 2022-004 - Monthly Reporting Condition During our audit procedures regarding the compliance requirement related to reporting, we noted that, during the fiscal year ended June 30, 2022: • The Corporation was not able to provide audit evidence for the submission of fifteen (15) monthl...

Finding No. 2022-004 - Monthly Reporting Condition During our audit procedures regarding the compliance requirement related to reporting, we noted that, during the fiscal year ended June 30, 2022: • The Corporation was not able to provide audit evidence for the submission of fifteen (15) monthly reports, three (3) for the Coronavirus Relief Fund and twelve (12) for the Coronavirus State and Local Fiscal Recovery Fund. • Five (5) monthly reports were submitted later than its due date as follows: Corporation response The Corporation agrees with the finding. Corrective Action Plan Upon receipt of the audit findings, we initiated an immediate review of our monthly reporting procedures. We have identified specific areas that require attention and are implementing immediate corrective actions to address the identified deficiencies. ■ Policies and Procedures Review - Simultaneously, we are reviewing our existing policies and procedures related to monthly reporting. This includes a reassessing reporting timeline, data validation processes, and the overall framework for ensuring accuracy and completeness in our monthly reports. ■ Staff Training and Development - Recognizing the critical role of our personnel in the reporting process, we are providing additional training to the individuals involved. This training will emphasize the importance of adherence to reporting guidelines, accurate data entry, and the significance of meeting established deadlines. Communication Protocol Enhancement - We recognize the importance of effective communication regarding reporting processes. To address this, we are enhancing us communication protocols to ensure that all relevant stakeholders are informed of reporting requirements, timelines, and any changes to procedures. • Finance Team - The Corporation has changed its management staff structure in the finance and budget department, with the mission of improving the monitoring process and compliance with federal and local regulations. A new Finance and Budget Director and the Associate Director of Finance and Budget have been appointed. Names of the contact persons responsible for corrective action plan Jesus A. Rodriguez Aviles- Financial Planning and Analysis Associate Director Cecilia Robles Kakiuchi - Financial Planning and Analysis Director Anticipated Completion Date Fiscal Year 2024

View Audit 11856

Finding 8703 (2022-008)

Significant Deficiency 2022

Dakota County

MN

Allowable Costs / Cost Principles Significant Deficiency § 200.303

2022-008– EMERGENCY RENTAL ASSISTANCE – ENFORCEMENT – ACTIVITIES ALLOWED AND UNALLOWED U.S. Department of Treasury Emergency Rental Assistance Assistance Listing Number: 21.023 Direct Payment Award Period: 2022 Recommendation: We recommend the County review its procedures and controls related to ...

2022-008– EMERGENCY RENTAL ASSISTANCE – ENFORCEMENT – ACTIVITIES ALLOWED AND UNALLOWED U.S. Department of Treasury Emergency Rental Assistance Assistance Listing Number: 21.023 Direct Payment Award Period: 2022 Recommendation: We recommend the County review its procedures and controls related to emergency rental assistance general expenditures to ensure the accuracy of all payments going forward. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action planned in response to finding: The County will ensure a proper review of all payments that the correct amount is paid. Name of the contact person responsible for corrective action: Peter Skwira, Finance Director Planned completion date for corrective action plan: December 31, 2023

View Audit 11849

Finding 8702 (2022-005)

Material Weakness 2022

Dakota County

MN

Allowable Costs / Cost Principles Material Weakness Reporting § 200.303

2022-005 – EMERGENCY RENTAL ASSISTANCE – REPORTING AND SPECIAL PROVISIONS U.S. Department of Treasury Emergency Rental Assistance Assistance Listing Number: 21.023 Direct Payment Award Period: 2022 Recommendation: We recommend the County implement internal controls to ensure that all reports for f...

2022-005 – EMERGENCY RENTAL ASSISTANCE – REPORTING AND SPECIAL PROVISIONS U.S. Department of Treasury Emergency Rental Assistance Assistance Listing Number: 21.023 Direct Payment Award Period: 2022 Recommendation: We recommend the County implement internal controls to ensure that all reports for federal programs are compiled, properly reviewed, and that review be reasonably documented prior to submission of the reports or data. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action planned in response to finding: We will continue to work with SLFRF program managers to understand and adhere to federal purchasing policies. Name of the contact person responsible for corrective action: Peter Skwira, Finance Director Planned completion date for corrective action plan: December 31, 2023

View Audit 11849

Finding 8700 (2022-007)

Significant Deficiency 2022

Dakota County

MN

Allowable Costs / Cost Principles Significant Deficiency Internal Control / Segregation of Duties § 200.303 § 200.420 § 200.476

2022-007 – SUPPLEMENTAL NUTRITION ASSISTANCE PROGRAM CLUSTER, TEMPORARY ASSISTANCE FOR NEEDY FAMILIES, & CHILD SUPPORT ENFORCEMENT – ACTIVITIES ALLOWED AND UNALLOWED U.S. Department of Agriculture & U.S. Department of Health and Human Services Supplemental Nutrition Assistance Program Cluster, Temp...

2022-007 – SUPPLEMENTAL NUTRITION ASSISTANCE PROGRAM CLUSTER, TEMPORARY ASSISTANCE FOR NEEDY FAMILIES, & CHILD SUPPORT ENFORCEMENT – ACTIVITIES ALLOWED AND UNALLOWED U.S. Department of Agriculture & U.S. Department of Health and Human Services Supplemental Nutrition Assistance Program Cluster, Temporary Assistance for Needy Families & Child Support Enforcement Assistance Listing Number: 10.561, 93.558, 93.563 Passed Through Minnesota Department of Human Services Pass Through Number: H55210010, H55214077 & H55214004 Award Period: 2022 Recommendation: We recommend that the County retain documentation of review and approval of all expenditures. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action planned in response to finding: EEA has reviewed existing policies for purchases using federal funds. If using federal funds, these policies and procedures will be followed. Name of the contact person responsible for corrective action: Daren Nyquist, Administration Manager Planned completion date for corrective action plan: December 31, 2023

View Audit 11849

Finding 8699 (2022-006)

Material Weakness 2022

Dakota County

MN

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

2022-006 – SUPPLEMENTAL NUTRITION ASSISTANCE PROGRAM CLUSTER & TEMPORARY ASSISTANCE FOR NEEDY FAMILIES – ACTIVITIES ALLOWED AND UNALLOWED U.S. Department of Agriculture & U.S. Department of Health and Human Services Supplemental Nutrition Assistance Program Cluster & Temporary Assistance for Needy ...

2022-006 – SUPPLEMENTAL NUTRITION ASSISTANCE PROGRAM CLUSTER & TEMPORARY ASSISTANCE FOR NEEDY FAMILIES – ACTIVITIES ALLOWED AND UNALLOWED U.S. Department of Agriculture & U.S. Department of Health and Human Services Supplemental Nutrition Assistance Program Cluster & Temporary Assistance for Needy Families Assistance Listing Number: 10.561 & 93.558 Passed Through Minnesota Department of Human Services Pass Through Number: H55210010 & H55214077 Award Period: 2022 Recommendation: We recommend that the County review its procedures and control to ensure all RMS listings sent to the State properly exclude those necessary individuals no longer working in the programs. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action planned in response to finding: Dakota County has implemented a new ERP application. In that process, the county needed to reexamine the way in which it codes staff into units. EEA is working with the state and other county departments to ensure correct documentation is updated in the new ERP system and procedures are in place to keep them accurate. Name of the contact person responsible for corrective action: Daren Nyquist, Administration Manager Planned completion date for corrective action plan: December 31, 2023

View Audit 11849

Finding 8523 (2022-102)

Significant Deficiency 2022

Greenlee County, Arizona

AZ

Allowable Costs / Cost Principles Matching / Level of Effort / Earmarking

Contact Name: Rene Ontiveros Corrective Action Planned: The County distributes a portion of the SRS funds to the Road department. These SRS budgeted funds are now tracked by a function code when utilized for upcoming road projects. Anticipated Completion Date: March 31, 2024

View Audit 11508

Finding 8514 (2022-002)

Significant Deficiency 2022

Carlsbad Lifehouse, Inc.

NM

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

Substance Abuse Prevention and Treatment Block Grant – Assistance Listing No. 93.959 Recommendation: We recommend the Organization implement policies and procedures to ensure the books and records are closed and audit ready in a timely manner in order to meet the six-month audit requirement. Explana...

Substance Abuse Prevention and Treatment Block Grant – Assistance Listing No. 93.959 Recommendation: We recommend the Organization implement policies and procedures to ensure the books and records are closed and audit ready in a timely manner in order to meet the six-month audit requirement. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: Carlsbad Lifehouse will initiate the 2023 audit earlier in 2024. Carlsbad Lifehouse will reconsider staffing and partners engaged in finance to expedite the process. Name(s) of the contact person(s) responsible for corrective action: Philip Huston Planned completion date for corrective action plan: January 31, 2024 If the State of New Mexico Behavior Health Services Division has questions regarding this plan, please call Philip Huston at 575-725-5552 ext. 700.

View Audit 11494

Finding 8370 (2022-005)

Significant Deficiency 2022

Educating Children Matters, Inc. D/b/a Indianapolis Indy Steam Academy

IN

Questioned Costs Allowable Costs / Cost Principles § 200.403

Criteria: In accordance with 2 CFR 200.403(g), costs must be adequately documented in order to be allowable under Federal awards. Condition: The School was unable to provide documentation for three (3) out of sixty (60) non-payroll expenses. Cause: The School failed to follow its own policies for do...

Criteria: In accordance with 2 CFR 200.403(g), costs must be adequately documented in order to be allowable under Federal awards. Condition: The School was unable to provide documentation for three (3) out of sixty (60) non-payroll expenses. Cause: The School failed to follow its own policies for documentation of expenses and document retention. Effect: The costs were not allowable under the Federal award because they were not adequately documented. Questioned costs: $2,412 Context: Three (3) out of sixty (60) non-payroll expenditures tested did not have original invoice or payment support. Recommendation: We recommend the School implement a document retention system whereby invoices and payment support are retained for the appropriate time period. Action Plan: The school has maintained receipts for these non-payroll expenditures but were not found within the audit timeline. Better organization of receipts will be implemented. The School will scan receipts and electronically store documents including invoices and payments together. The School will consider multiple platforms including server or a cloud document storage platform. Receipts will be maintained and reported in the appropriate period. Persons Responsible: Yvonne Bullock, CEO/Head of School Gulen Hicks, Consultant Administrative Assistant Consultant

View Audit 11209 Questioned Costs: $1

Finding 8366 (2022-002)

None 2022

Ferry County

WA

Questioned Costs Allowable Costs / Cost Principles Eligibility

The County will establish procedures to verify eligibility of program costs by requiring proof of eligibility be attached to grant fund expense vouchers when submitted to the auditor’s office for processing.

View Audit 11191 Questioned Costs: $1

Finding 8203 (2022-007)

Significant Deficiency 2022

Hubbard County

MN

Allowable Costs / Cost Principles Reporting Significant Deficiency § 200.303

Finding Number: 2022-007 Finding Title: Reporting – LCTS Spending Report Program: 93.778 Medical Assistance Program Name of Contact Person Responsible for Corrective Action: Brian Ophus, Social Services Director Corrective Action Planned: LCTS recipients have been given education on the importance ...

Finding Number: 2022-007 Finding Title: Reporting – LCTS Spending Report Program: 93.778 Medical Assistance Program Name of Contact Person Responsible for Corrective Action: Brian Ophus, Social Services Director Corrective Action Planned: LCTS recipients have been given education on the importance of timely reporting, Hubbard County has provided recipients with the proper tools and timelines in order to meet the deadlines. DHS was notified of the tardiness from recipients and issued a warning to them. Anticipated Completion Date: October 1, 2023

View Audit 10780

Finding 8202 (2022-006)

Significant Deficiency 2022

Hubbard County

MN

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

Finding Number: 2022-006 Finding Title: Activities Allowed and Unallowed, Allowable Costs/Cost Principles, and Reporting Program: 93.778 Medical Assistance Program Name of Contact Person Responsible for Corrective Action: Brian Ophus, Social Services Director Corrective Action Planned: Staff alloca...

Finding Number: 2022-006 Finding Title: Activities Allowed and Unallowed, Allowable Costs/Cost Principles, and Reporting Program: 93.778 Medical Assistance Program Name of Contact Person Responsible for Corrective Action: Brian Ophus, Social Services Director Corrective Action Planned: Staff allocations have been re calculated per DHS guidelines in the new County Payroll system. Anticipated Completion Date: November 1, 2023

View Audit 10780

Finding 8165 (2022-004)

Material Weakness 2022

City of Muncie

IN

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

FINDING 2022-004 Craig Wright (765)747-4828 Views of Responsible Official: We concur with the findings. Description of Corrective Action Plan: Correcting the audit findings is ongoing. The city has implemented monitoring procedures to review and prevent reoccurring errors. Anticipated Completion Dat...

FINDING 2022-004 Craig Wright (765)747-4828 Views of Responsible Official: We concur with the findings. Description of Corrective Action Plan: Correcting the audit findings is ongoing. The city has implemented monitoring procedures to review and prevent reoccurring errors. Anticipated Completion Date: The internal control monitoring and checks and balances will be implemented immediately and continue going forward.

View Audit 10718

Finding 8017 (2022-001)

Material Weakness 2022

Calhoun County Board of Education

GA

Questioned Costs Allowable Costs / Cost Principles Subrecipient Monitoring § 200.303 § 200.403 § 200.415

FA 2022-001 Strengthen Budgetary Controls over Expenditures Compliance Requirement: Activities Allowed or Unallowed Allowable Costs/Cost Principle Internal Control Impact: Material Weakness Compliance Impact: Material Noncompliance Federal Awarding Agency: U.S. Department of Education Pass-Throug...

FA 2022-001 Strengthen Budgetary Controls over Expenditures Compliance Requirement: Activities Allowed or Unallowed Allowable Costs/Cost Principle Internal Control Impact: Material Weakness Compliance Impact: Material Noncompliance Federal Awarding Agency: U.S. Department of Education Pass-Through Entity: Georgia Department of Education Assistance Listing Number and Title: COVID-19 - 84.425D - Elementary and Secondary School Emergency Relief Fund COVID-19 - 84.425U - American Rescue Plan Elementary and Secondary School Emergency Relief Fund Federal Award Number: S425D200012 (Year: 2020), S425D210012 (Year: 2021) S425U2120012 (Year: 2021) Questioned Costs: $31,131 Prior Year Finding: N/A Description: A review of expenditures charged to the Elementary and Secondary School Emergency Relief Fund program revealed instances in which expenditures had not be properly approved by the pass-through entity. Corrective Action Plans: The Calhoun County School System will ensure that all expenditures charged to the Elementary and Secondary School Emergency Relief Fund are properly approved by the pass-through entity. The Federal Programs Director will verify that all expenditures are reflected in the approved budget or subsequent amendments within the Consolidated Application as required. The Calhoun County School System will follow the procedures listed below to ensure that expenditures are reflected in the approved budget and/or subsequent amendments: The Federal Programs Director and the Finance Director will monitor all original budgets and subsequent amendments to ensure that expenditures have been approved. During monthly leadership meetings, the Federal Programs Director and the Finance Director will verify that all budgets and subsequent amendments have been properly signed off on by the Program Coordinator and the Superintendent in the Consolidated Application. In the event budgets and subsequent amendments are not found to be properly signed off on by the Program Coordinator and the Superintendent, the Federal Programs Director will take steps to ensure that proper sign off is initiated and completed. Estimated Completion Date: September 30, 2024 Contact Person: Pamela Quimbley Telephone: 229-545-7231 ext. 2005 Email: pamquimbley@calhoun.k12.ga.us

View Audit 10491 Questioned Costs: $1

Finding 7981 (2022-004)

Significant Deficiency 2022

YMCA De San Juan (the Young Men's Christian Association of San Juan, Inc.)

PR

Subrecipient Monitoring Matching / Level of Effort / Earmarking Internal Control / Segregation of Duties § 200.303

Corrective action plan The Organization is currently implementing a procedure to strengthen written policies and procedures to evidence its compliance with Federal Programs. Name (s) of person (s) responsible for corrective action Ms. Mabel Román, YMCA Executive Director YMCA Finance Director Antici...

Corrective action plan The Organization is currently implementing a procedure to strengthen written policies and procedures to evidence its compliance with Federal Programs. Name (s) of person (s) responsible for corrective action Ms. Mabel Román, YMCA Executive Director YMCA Finance Director Anticipated completion date January 2024

View Audit 10431

Finding 7901 (2022-002)

Significant Deficiency 2022

Lifetime Independence for Everyone, Inc. and Subsidiary

TX

Questioned Costs Allowable Costs / Cost Principles Significant Deficiency § 200.303 § 200.405

2022-002 – Allocation Percentage Charged – Significant Deficiency in Internal Controls over Compliance Recommendation: The auditor recommends LIFE enhance the design of its control activities and procedures over the allocation percentage forms used throughout the year to ensure the staff know how to...

2022-002 – Allocation Percentage Charged – Significant Deficiency in Internal Controls over Compliance Recommendation: The auditor recommends LIFE enhance the design of its control activities and procedures over the allocation percentage forms used throughout the year to ensure the staff know how to apply percentages and are using the correct approved allocation form for the period in the year. Action Taken: LIFE Management will: • Update its allocation form by clearly labeling the document used and the period and type of expense for which it applies. • Communicate the revision of all forms to staff involved in the allocation process, followed by a training session to ensure understanding and proper application of the form. • Establish a monthly review process, whereby allocation forms will be audited for current updates and application consistency. Due Date of Completion: November 30, 2023 Responsible Official: Executive Director

View Audit 10307 Questioned Costs: $1

Finding 7887 (2022-001)

Material Weakness 2022

Highline School District No. 401

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

Corrective Action Plans

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