Corrective Action Plans

Finding 567377 (2024-005)

Material Weakness 2024

WI

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

Elementary and Secondary School Emergency Relief – Assistance Listing No. 84.425U, 84.425W Recommendation: CLA recommends the District review its grant disbursement process to ensure that there is adequate segregation of duties in regards to initiating, authorizing, reviewing for grant allowability ...

Elementary and Secondary School Emergency Relief – Assistance Listing No. 84.425U, 84.425W Recommendation: CLA recommends the District review its grant disbursement process to ensure that there is adequate segregation of duties in regards to initiating, authorizing, reviewing for grant allowability and approving purchases, along with adding controls to ensure that the item purchased was received by the District. CLA also recommends the District review its payroll process and identify payroll tasks that could be reassigned to other district personnel or consider implementing additional review procedures specifically focused on payroll and related fringe benefit costs claimed on federal and state grants. CLA also recommends the District review its grant reporting processes and implement internal controls to help ensure that there is adequate segregation of duties in regards to grant reporting including special reports. Explanation of disagreement with audit finding: There is no disagreement with this finding. Action planned/taken in response to finding: District staff will accumulate as much of the information required for federal and state awards as we can and reconcile the revenue and expenditures information to the general ledger for these awards. Name(s) of the contact person(s) responsible for corrective action: Adrian Foster, Brooke Rosemeyer Planned completion date for corrective action plan: Ongoing.

View Audit 360049

Finding 567372 (2024-002)

Significant Deficiency 2024

National Federal of Families for Children's Mental Health

MD

Allowable Costs / Cost Principles Matching / Level of Effort / Earmarking § 200.430

Finding 2024-002 – Allowable costs – payroll Assistance Listing #: 93.243 Condition: During fiscal year 2024, the Organization charged payroll costs to the federal award programs using a set percentage based on budget and not based on employee’s actual time or effort amongst various programs. Recomm...

Finding 2024-002 – Allowable costs – payroll Assistance Listing #: 93.243 Condition: During fiscal year 2024, the Organization charged payroll costs to the federal award programs using a set percentage based on budget and not based on employee’s actual time or effort amongst various programs. Recommendation: We recommend the Organization make changes overall its timekeeping processes to ensure that payroll costs accurately reflect the work performed and if budget estimates are utilized, that they are reconciled and trued up on a consistent basis. Action Taken: NFFCMH has made changes overall to the Federation’s timekeeping processes to ensure that payroll costs accurately reflect the work performed. The Organization is acting upon different guidance it has received, and as of the date this audit is released, the contract this finding addresses is currently scheduled to end on 08/30/2025. NFFCMH will continue our current practice through the end of this same contract, and we will review any potential change to same upon renewal or extension of this contract.

View Audit 360032

Finding 567134 (2024-002)

Significant Deficiency 2024

Src, Inc.

NY

Allowable Costs / Cost Principles Internal Control / Segregation of Duties

A review of SRC's policies and procedures will be completed and if necessary, will be updated to put additional controls in place to ensure appropriate personnel are reviewing and approving submitted employee work arrangements. Training will be provided, as applicable, for any changes that may be ma...

A review of SRC's policies and procedures will be completed and if necessary, will be updated to put additional controls in place to ensure appropriate personnel are reviewing and approving submitted employee work arrangements. Training will be provided, as applicable, for any changes that may be made. Contact Person Responsible for Corrective Action: Janna Nelson, Director, Human Resources Completion Date: Review of policy and procedures will be completed by September 30, 2025.

View Audit 360024

Finding 567133 (2024-001)

Significant Deficiency 2024

Src, Inc.

NY

Allowable Costs / Cost Principles

SRC is in the fifth year of an anticipated five-year period to verify the existence of tangible assets. This review includes validation of the status of active tangible assets as well as those withdrawn from active use to identify differences between physical life and depreciable life. Once this is...

SRC is in the fifth year of an anticipated five-year period to verify the existence of tangible assets. This review includes validation of the status of active tangible assets as well as those withdrawn from active use to identify differences between physical life and depreciable life. Once this is complete SRC will update our policies and procedures to incorporate the process of periodically analyzing and reviewing our useful life matrix to determine whether useful lives are valid or if adjustments are required. SRC provides additional training to employees responsible for capital. SRC’s policy states that residual value will be recognized consistent with FAR 31.205-11 which states, “for tangible personal property, only estimated residual values that exceed ten percent of the capitalized cost of the asset need be used in establishing depreciable costs”. SRC’s capital asset policy and Disclosure Statement do not set a standard ten percent residual value. SRC demonstrated that there have been no instances of salvage value of any amount recovered at tangible asset disposition. SRC agrees the system defaults to zero percent salvage value but disagrees this is indicative of a deficiency as the system provides for the flexibility to adjust the salvage value to the appropriate amount, as applicable. Remaining outstanding corrective action, which entails reviews of our policies and procedures will take place by September 30, 2026. Contact Person Responsible for Corrective Action: Lisa Kennedy, Director, Corporate Controller Completion Date: All corrective action will be implemented by September 30, 2026.

View Audit 360024

Finding 567105 (2024-003)

Significant Deficiency 2024

Pittsfield Charter Township

MI

Procurement, Suspension & Debarment Allowable Costs / Cost Principles

Finding: 2024-003 - Suspension and Debarment – Verification Auditor Description of Condition and Effect: The Township was unable to provide evidence that one of the vendors selected for testing was not suspended, debarred, or otherwise excluded at the time the Township hired the vendor to provide g...

Finding: 2024-003 - Suspension and Debarment – Verification Auditor Description of Condition and Effect: The Township was unable to provide evidence that one of the vendors selected for testing was not suspended, debarred, or otherwise excluded at the time the Township hired the vendor to provide goods or services. While none of the vendors tested appeared to be suspended or debarred, documentation does not exist to support that the Township verified its vendors paid with federal dollars were not suspended or debarred prior to contracting with them. Auditor Recommendation: We recommend that the Township review its written policies and procedures over federal awards to ensure that the appropriate suspension and debarment evidence of verifications are retained for all vendors providing goods or services in excess of $25,000. Corrective Action: We acknowledge the finding of immaterial noncompliance and the identified significant deficiency in our internal controls related to compliance with suspension and debarment requirements. We take this matter seriously and are committed to strengthening our compliance processes. Relevant personnel will undergo updated training on suspension and debarment procedures, including use of the SAM.gov exclusion database. Responsible Person: Tracy Watkins, Finance Director Anticipated Completion Date: December 31, 2025

View Audit 359968

Finding 567104 (2024-002)

Significant Deficiency 2024

Pittsfield Charter Township

MI

Allowable Costs / Cost Principles Subrecipient Monitoring

2024-002 - Lack of Independent Review and Approval of Reporting Auditor Description of Condition and Effect: During our audit procedures over the Township's reporting process, we noted that none of the semi-annual financial reports selected for testing included documentation that they were subjecte...

2024-002 - Lack of Independent Review and Approval of Reporting Auditor Description of Condition and Effect: During our audit procedures over the Township's reporting process, we noted that none of the semi-annual financial reports selected for testing included documentation that they were subjected to an independent review and approval prior to submission in order to detect and correct potential errors or omissions. As a result of this condition, the Township was exposed to an increased risk that the reports filed could contain errors and not be detected and corrected on a timely basis. Auditor Recommendation: We recommend that the Township establish procedures to ensure that all reports are subject to review and approval by an independent employee prior to submission, and that the review and approval is adequately documented. Corrective Action: We acknowledge the finding of significant deficiency in internal controls over compliance. While the matter is not considered to be material to the overall compliance requirements, we recognize the importance of maintaining robust internal controls to ensure full adherence to applicable regulations and policies. The Township is in the process of ensuring relevant personnel are informed and adequately trained on updated compliance processes. We will also increase periodic reviews and monitoring activities to ensure sustained compliance and timely identification of potential issues. Responsible Person: Tracy Watkins, Finance Director Anticipated Completion Date: December 31, 2025

View Audit 359968

Finding 567094 (2024-002)

Significant Deficiency 2024

Yankton Transit, Inc.

SD

Procurement, Suspension & Debarment Allowable Costs / Cost Principles Significant Deficiency § 200.313

Yankton Transit will become familiar with the requirements of CFR, §200.313(a) and will establish internal control policies and procedures and will train staff on those policies and procedures. Currently, we have changed the debit cards to credit cards for proper approval and complete support for t...

Yankton Transit will become familiar with the requirements of CFR, §200.313(a) and will establish internal control policies and procedures and will train staff on those policies and procedures. Currently, we have changed the debit cards to credit cards for proper approval and complete support for the transactions that occur monthly.

View Audit 359960

Finding 567052 (2024-001)

Material Weakness 2024

Community Foundation of Northwest Indiana, Inc.

IN

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

Finding 2024-001 – Activities Allowed or Unallowed, Allowable Costs/Cost Principles, and Period of Performance Federal Grantor: United States Department of Homeland Security Assistance Listing No.: Assistance Listing 97.036, COVID-19 Disaster Grants – Public Assistance (Presidentially Declared Disas...

Finding 2024-001 – Activities Allowed or Unallowed, Allowable Costs/Cost Principles, and Period of Performance Federal Grantor: United States Department of Homeland Security Assistance Listing No.: Assistance Listing 97.036, COVID-19 Disaster Grants – Public Assistance (Presidentially Declared Disasters) (FEMA) Pass-Through Grantor: Indiana Department of Homeland Security Federal Award Period of Performance: March 1, 2020 – May 11, 2023 A material weakness was identified related to internal controls over payroll expenses charged to FEMA funds, subject to the Uniform Guidance (UG) audit. This guidance requires internal controls to comply with the terms of the federal award as well as with the "Standards for Internal Control in the Federal Government" issued by the Comptroller General of the United States or the "Internal Control—Integrated Framework" issued by COSO. The finding was a compliance matter and did not result in any questioned costs. Community Foundation of Northwest Indiana, Inc. and Subsidiaries (CFNI) acknowledges the finding related to the lack of documented review and approval of all timecards for payroll expenses charged to federally funded programs. In line with industry standards, CFNI prioritizes timely payroll processing and does not delay payroll for outstanding timecard approvals. While this is not a recurring issue and did not result in any questioned costs, CFNI recognizes the importance of ensuring compliance with all federal requirements. To address this finding and prevent recurrence, CFNI is implementing a comprehensive policy that mandates timely review and approval of all timecards associated with payroll expenses charged to federal grants. Additionally, CFNI is establishing a formal process to monitor adherence to this policy, including regular audits and detailed documentation of the review process. CFNI is committed to strengthening internal controls, improving oversight, and ensuring full compliance with federal grant requirements. Responsible Official: Pamela Pokropinski, VP Finance Status of finding: Completion expected June 2025

View Audit 359944

Finding 567015 (2024-004)

Material Weakness 2024

City of Wallis

TX

Allowable Costs / Cost Principles

The City was informed of this finding in December 2023. The City will establish and adopt written policies for federal awards.

View Audit 359926

Finding 567012 (2024-002)

Significant Deficiency 2024

Crow Wing County

MN

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

ALLOWABLE COSTS AND ALLOWABLE ACTIVITIES – TEMPORARY ASSISTANCE FOR NEEDY FAMILIES Recommendation: It is recommended that the County has a supervisor review the random moment studies wages in detail to ensure costs are accurate by report line. Explanation of disagreement with audit finding: There ...

ALLOWABLE COSTS AND ALLOWABLE ACTIVITIES – TEMPORARY ASSISTANCE FOR NEEDY FAMILIES Recommendation: It is recommended that the County has a supervisor review the random moment studies wages in detail to ensure costs are accurate by report line. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: The County will implement policies to ensure all expenditures reported are accurate. Name of the contact person responsible for corrective action plan: Kara Terry, Community Services Director Planned completion date for corrective action plan: December 31, 2025

View Audit 359921

Finding 566936 (2024-002)

Significant Deficiency 2024

Sabine Parish School Board

LA

Reporting Allowable Costs / Cost Principles

To ensure the new Business Manager has all necessary information to accurately prepare the Schedule of Expenditures of Federal Awards (SEFA), procedures will be implemented to improve communication and documentation. Employees responsible for preparing grant reimbursement claims will maintain organi...

To ensure the new Business Manager has all necessary information to accurately prepare the Schedule of Expenditures of Federal Awards (SEFA), procedures will be implemented to improve communication and documentation. Employees responsible for preparing grant reimbursement claims will maintain organized files with all supporting documentation readily accessible to the Business Manager. Additionally, all department directors and grant writers will be instructed to notify the Business Manager of any grant applications submitted and to keep them informed on the status of each grant. These steps will help ensure the SEFA is complete, accurate, and prepared in a timely manner.

View Audit 359807

Finding 566901 (2024-004)

None 2024

Helping Ourselves Pursue Enrichment, Inc.

AZ

Allowable Costs / Cost Principles § 200.403 § 200.414

This discrepancy resulted from a lack of understanding by the CFO in processing grant related funding. Grant policies have been updated, and personnel trained to direct and understand the role of independent accounting by funding sources through class codes. Anticipated completion date: 8/31/25. R...

This discrepancy resulted from a lack of understanding by the CFO in processing grant related funding. Grant policies have been updated, and personnel trained to direct and understand the role of independent accounting by funding sources through class codes. Anticipated completion date: 8/31/25. Responsible contact person: John Carroll, CFO

View Audit 359758

Finding 566887 (2024-002)

Significant Deficiency 2024

Thurston County Food Bank

WA

Subrecipient Monitoring Allowable Costs / Cost Principles § 200.332

Finding 2024-002: TCFB was negligent in monitoring sub-recipients during the grant agreement period. The Problem: During testing, the auditors noted that one of the three sub-recipients tested did not receive a site visit during the grant agreement period. Established standard Three programs requir...

Finding 2024-002: TCFB was negligent in monitoring sub-recipients during the grant agreement period. The Problem: During testing, the auditors noted that one of the three sub-recipients tested did not receive a site visit during the grant agreement period. Established standard Three programs require sub-agency monitoring visits. EFAP (3 sub-agencies) requires each sub-agency to be monitored on site once each biennium (2 year agreement period). TEFAP (40 sub-agencies) requires that a minimum of 10% of sub-agencies be monitored on site once each year. CSFP (3 sub-agencies) requires each agency to be monitored on site once every 2 years. Actions to be taken - While the EFAP requirement was used for the test above, this plan will include monitoring visits for all 3 programs. - An additional staff member will be added to the contract team who will be responsible for on-site monitoring visits once trained. - Plan out which agencies should be visited in which years. - Create a shared calendar that includes the time period visits should take place in, when to reach out to sub-agencies to schedule visits, who will conduct visits. Action assignments - The entire contract team will work together to create the calendar. - Contracts Manager and Commodities Coordinator will plan out which sub-agencies to visit, and when to visit them. - Contracts Manager and new team member will schedule and conduct the first 2 site reviews, after which the new team member will take the lead with support from the others. Timeline - The additional contract team member will be added July 1st, 2025, but will be available for planning meetings before then. - Ordered list of sub-agency visits will be completed by the end of May 2025. - Shared calendar will be fully completed by the end of June 2025. Verify implementation - The Contracts Manager will report progress of monitoring visits to CEO/ED quarterly.

View Audit 359751

Finding 566871 (2024-001)

Significant Deficiency 2024

Thurston County Food Bank

WA

Questioned Costs Allowable Costs / Cost Principles Cash Management § 200.430

Finding 2024-001: Internal controls and adherence to compliance were not followed with regards to an appropriate level of approval of management that is charged to the Coronavirus State and Local Recovery Funds and the Food Cluster Program. The Problem: CEO timesheets were not reviewed or approved b...

Finding 2024-001: Internal controls and adherence to compliance were not followed with regards to an appropriate level of approval of management that is charged to the Coronavirus State and Local Recovery Funds and the Food Cluster Program. The Problem: CEO timesheets were not reviewed or approved by our Board of Directors in 2024 so proper oversight was not being done. Corrective Action: The procedure we had in place was that our Board Chairperson would review and approve our CEO timesheet entries each payroll period. This procedure was followed in prior years. In January 2024 the Chairperson changed to a new Chairperson and this person did not receive proper training on how to approve the CEO timesheet. When the auditors brought our attention to this situation in March of 2025, we immediately contacted the current and previous Board Chairs, HR Director, and Interim CEO. They worked together to train the present Board Chairperson on how to access the CEO timesheet entries, review them and approve them in a timely manner. This process is being used every pay period and our reports show that all timesheets are approved. We also printed out all timesheets going back to January and had the Board Chair review and sign those copies. Going forward we will be sure that proper training is done when there is a change in either the Board Chair or the CEO/Ed position.

View Audit 359751 Questioned Costs: $1

Finding 566865 (2024-007)

Material Weakness 2024

Harris-Stowe State University

MO

Questioned Costs Subrecipient Monitoring Allowable Costs / Cost Principles § 200.403

Finding 2024-007 Personnel Responsible for Corrective Action: Grant Principal Investigators and Grant Accountant – Charme Benson Anticipated Completion Date: June 30, 2025 Corrective Action Plan: All expenses must be supported by documentation and comply with Generally Accepted Accounting Princ...

Finding 2024-007 Personnel Responsible for Corrective Action: Grant Principal Investigators and Grant Accountant – Charme Benson Anticipated Completion Date: June 30, 2025 Corrective Action Plan: All expenses must be supported by documentation and comply with Generally Accepted Accounting Principles (GAAP) standards. A pre-review checklist will be required for all charges against FIPSE grants. Prepaid items must be recorded in the prepaid ledger and amortized appropriately. Documentation will be retained in alignment with the University Record Retention policy. Management will implement a formal review and approval process to ensure that all allowable costs are verified for compliance with applicable regulations and approved by designated personnel prior to reimbursement or payment.

View Audit 359750 Questioned Costs: $1

Finding 566857 (2024-006)

Significant Deficiency 2024

Harris-Stowe State University

MO

Allowable Costs / Cost Principles Subrecipient Monitoring Cash Management

Finding 2024-006 Personnel Responsible for Corrective Action: Director of Sponsored Programs- Eva Kain, Director of Title III – Dr. Neidra Butler and Grant Accountant – Charme Benson Anticipated Completion Date: June 30, 2025 Corrective Action Plan: Payroll charges to federal programs must mat...

Finding 2024-006 Personnel Responsible for Corrective Action: Director of Sponsored Programs- Eva Kain, Director of Title III – Dr. Neidra Butler and Grant Accountant – Charme Benson Anticipated Completion Date: June 30, 2025 Corrective Action Plan: Payroll charges to federal programs must match certified time and effort documentation. The Director of Sponsored Programs, the Director of Title III, and the Grant Accountant will jointly review allocations before payrolls are processed. Monthly reports will be generated for review by the Grant Accountant, and discrepancies must be corrected within 30 days. Management will implement a formal review and approval process to ensure that all allowable costs are verified for compliance with applicable regulations and approved by designated personnel prior to reimbursement or payment.

View Audit 359750

Finding 566849 (2024-001)

Significant Deficiency 2024

Pacific Northwest Research Institute

WA

Subrecipient Monitoring Cash Management Allowable Costs / Cost Principles § 200.305

Finding Number 2024-001 Contact Person(s): Dionne Gordon dgordon@pnri.org Explanation and specific reasons for disagreement with the audit finding or that corrective action is not required (if applicable): Although the findings consisted primarily of a small number of late payments that were either ...

Finding Number 2024-001 Contact Person(s): Dionne Gordon dgordon@pnri.org Explanation and specific reasons for disagreement with the audit finding or that corrective action is not required (if applicable): Although the findings consisted primarily of a small number of late payments that were either 1 day late or late as a result of a poorly timed holiday, we fully acknowledge the accuracy of the finding and have added an additional control to account for the impact of weekends and holidays on our AP payment runs. Corrective action planned: Internal control established in AP department to keep track of sub recipients’ request reimbursement to ensure payments are disbursed within 30 calendar days after receipt of request. Anticipated completion date: March 31st 2025

View Audit 359747

Finding 566118 (2024-001)

None 2024

Battelle Memorial Institute

OH

Special Tests & Provisions Allowable Costs / Cost Principles Reporting § 200.508

Reference: Finding 2024-001 Qualified Auditor’s Opinion for Allowable Costs and Activities Allowed and Unallowed and Special Tests and Provisions for Research & Development Cluster Due to Material Scope Limitations Contact: Erica Classing, Controller; classinge@battelle.org; 614-424-3372 Views of Re...

Reference: Finding 2024-001 Qualified Auditor’s Opinion for Allowable Costs and Activities Allowed and Unallowed and Special Tests and Provisions for Research & Development Cluster Due to Material Scope Limitations Contact: Erica Classing, Controller; classinge@battelle.org; 614-424-3372 Views of Responsible Officials: Battelle acknowledges the scope limitation is the result of access restrictions to classified contract documents imposed by federal agencies that are beyond Battelle’s control. Battelle does not have the authority to grant auditor access to classified programs without the proper security clearance and program permissions, rather this authority resides with the federal awarding agency, in accordance with applicable federal security regulations. These restrictions prohibited access to classified contracts for required audit procedures in those areas noted in Finding 2024-001. This limitation was only on classified contracts which is a small subset (10%) of Battelle’s total reportable expenditures. Battelle provided all unclassified documentation required to support transactions selected for testing. In addition, Battelle provided all documentation necessary to audit compliance with requirements on all non-classified contracts selected. Management upholds high standards of compliance and transparency and continues to support audit processes to the fullest extent possible. Battelle agrees to explore options to satisfy audit requirements while maintaining compliance with classified contract security regulations. Corrective Action Plan: Summary of finding: During testing of allowable costs and special tests and provisions, access to classified contracts was restricted. The auditor was unable to view federal award documents to determine allowability terms and conditions, security clearance requirements, or other special provisions for sample selections of classified contracts. Consequently, this restriction on access to the source contract document resulted in a material scope limitation for these testing areas. Root cause: Access to classified contracts is subject to confidentiality requirements mandated by external regulators, requiring appropriate security clearance levels and verified need-to-know status. If the classified contract is a special access program, obtaining program-specific approvals from the awarding agency in addition to possessing the appropriate security clearance and need to know is required. There is no guarantee that the federal awarding agency will ultimately grant cleared auditors access to the classified contract. Corrective action: Battelle is taking the following steps to address the finding: • Internal Review: We conducted an internal review of the areas affected by the scope limitation to validate each selection complied with the applicable contractual and regulatory requirements. This action was completed by December 19, 2024 and did not identify any instance of non-compliance with applicable rules, regulations, or contractual requirements. • We have existing monitoring mechanisms in place to ensure compliance in the areas affected by the scope limitation. • Early coordination with external auditor: We are collaborating with our external audit team to identify any classified contract audit selections earlier in the annual audit process. A proactive approach will allow Battelle extra time to engage clients for required approvals to either gain access to the classified information or obtain appropriate alternative audit evidence. In addition, any other related steps that can be completed in advance such as verifying auditor clearance types and levels will be performed early to help mitigate any delays. This corrective action requires the audit firm to provide auditors with the appropriate security clearances. • Engagement with regulatory agencies: We are in dialogue with impacted federal awarding agencies to explore options to provide necessary audit evidence. • Enhanced documentation: We are enhancing our audit support procedures to provide guidelines on how, within the bounds of regulatory restrictions, we can provide access to audit evidence for future audits. Overall Anticipated Implementation Date: December 31, 2025

View Audit 359740

Finding 566043 (2024-002)

Significant Deficiency 2024

Global Communities

MD

Allowable Costs / Cost Principles Procurement, Suspension & Debarment Subrecipient Monitoring

Views of Responsible Officials and Planned Corrective Action: Global Communities policies and procedures did detect these instances of fraud, management of Global Communities took appropriate action ensuring that no unallowable costs were charged to Federal funds. Global Communities will continue th...

Views of Responsible Officials and Planned Corrective Action: Global Communities policies and procedures did detect these instances of fraud, management of Global Communities took appropriate action ensuring that no unallowable costs were charged to Federal funds. Global Communities will continue their due diligence with respect to any items that are considered fraudulent in nature. Any high-risk areas are carefully monitored, additional training and/or resources are provided to ensure that internal controls are functioning as designed to prevent occurrences of misappropriation of assets and procurement fraud.

View Audit 359700

Finding 565992 (2024-003)

Significant Deficiency 2024

Central Virginia Legal Aid Society, Inc.

VA

Allowable Costs / Cost Principles Reporting Significant Deficiency

Corrective Action Taken or Planned: The Organization will implement a review process to ensure that reports to LSC are filed timely. This review process will consist of the Executive Director and the Director of Finance independently reviewing the Oversight section of Grantease (LSC’s web-based p...

Corrective Action Taken or Planned: The Organization will implement a review process to ensure that reports to LSC are filed timely. This review process will consist of the Executive Director and the Director of Finance independently reviewing the Oversight section of Grantease (LSC’s web-based platform) monthly to ensure compliance. The Organization already has calendared all report deadlines for LSC and has a good track record of meeting those deadlines. The Organization believes the missed deadline identified in the audit was due to changes in job responsibilities following organizational restructuring and will not occur again. Name of Contact Person: Steve Dickinson, Executive Director Phone Number of Contact Person: (804) 200-6049 Projected Completion Date: April 30, 2025

View Audit 359640

Finding 565991 (2024-002)

Material Weakness 2024

Central Virginia Legal Aid Society, Inc.

VA

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

Corrective Action Taken or Planned: The Organization will immediately implement a more formal review process for review of citizenship attestations and asset levels to ensure compliance before cases are reported to LSC. This review process will consist of two checks. The first will be done monthl...

Corrective Action Taken or Planned: The Organization will immediately implement a more formal review process for review of citizenship attestations and asset levels to ensure compliance before cases are reported to LSC. This review process will consist of two checks. The first will be done monthly through reports run in the case management system designed to identify cases where LSC or the Organization’s policies were not met. The second will be a review by the Managing Director of each of the Organization’s practice area groups where the case was closed to ensure compliance with LSC and the Organization’s requirements. In addition, training of new employees as part of their onboarding, and an annual training course for all of the Organization’s staff, will be held on LSC and the Organization’s case acceptance and reporting requirements and the use of tools, such as case management reports and checklists, to ensure compliance. Name of Contact Person: Steve Dickinson, Executive Director Phone Number of Contact Person: (804) 200-6049 Projected Completion Date: April 30, 2025

View Audit 359640

Finding 565990 (2024-001)

Material Weakness 2024

Central Virginia Legal Aid Society, Inc.

VA

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

Corrective Action Taken or Planned: The Organization will immediately implement a more formal review process for review of citizenship attestations and asset levels to ensure compliance before cases are reported to LSC. This review process will consist of two checks. The first will be done monthl...

Corrective Action Taken or Planned: The Organization will immediately implement a more formal review process for review of citizenship attestations and asset levels to ensure compliance before cases are reported to LSC. This review process will consist of two checks. The first will be done monthly through reports run in the case management system designed to identify cases where LSC or the Organization’s policies were not met. The second will be a review by the Managing Director of each of the Organization’s practice area groups where the case was closed to ensure compliance with LSC and the Organization’s requirements. In addition, training of new employees as part of their onboarding, and an annual training course for all of the Organization’s staff, will be held on LSC and the Organization’s case acceptance and reporting requirements and the use of tools, such as case management reports and checklists, to ensure compliance. Name of Contact Person: Steve Dickinson, Executive Director Phone Number of Contact Person: (804) 200-6049 Projected Completion Date: April 30, 2025

View Audit 359640

Finding 565807 (2024-004)

Significant Deficiency 2024

Human Services of Faribault and Martin Counties

MN

Internal Control / Segregation of Duties Allowable Costs / Cost Principles Cash Management

Federal Agency: U.S. Department of Health and Human Services Federal Program Name: Medical Assistance Program (Medicaid Cluster) Assistance Listing Number: 93.778 Federal Award Identification Numbers and Year: 2405MN5MAP and 2405MN5ADM, 2024 Pass-Through Agency: Minnesota Department of Human Ser...

Federal Agency: U.S. Department of Health and Human Services Federal Program Name: Medical Assistance Program (Medicaid Cluster) Assistance Listing Number: 93.778 Federal Award Identification Numbers and Year: 2405MN5MAP and 2405MN5ADM, 2024 Pass-Through Agency: Minnesota Department of Human Services Pass-Through Numbers: 2405MN5MAP and 2405MN5ADM Compliance Requirement Affected: Allowable Costs/Allowable Activities Award Period: Year-Ended December 31, 2024 Type of Finding: Significant Deficiency in Internal Control over Compliance and Other Matters Recommendation: It is recommended the Agency implement control procedures to ensure Income Maintenance Random Moment Study (IMRMS) and Social Services Time Study (SSTS) listings are accurate. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: The Agency will review procedures and implement changes as needed to ensure going forward that the IMRMS and SSTS listings are accurate. Name of the contact person responsible for corrective action plan: Chera Sevcik, Human Services Executive Director Planned completion date for corrective action plan: December 31, 2025

View Audit 359512

Finding 565805 (2024-002)

Significant Deficiency 2024

Metropolitan Economic Development Association

MN

Allowable Costs / Cost Principles

Federal Agency Name: Department of Treasury Assistance Listing Number: 21.033 Program Name: Community Development Financial Institutions Equitable Recovery Program Finding Summary: MEDA has a process for allocating employee wages based on hours worked, however controls in place did not operate to p...

Federal Agency Name: Department of Treasury Assistance Listing Number: 21.033 Program Name: Community Development Financial Institutions Equitable Recovery Program Finding Summary: MEDA has a process for allocating employee wages based on hours worked, however controls in place did not operate to prevent errors in the allocation of employees’ pay to the grants. Corrective Action Plan: MEDA’s payroll is performed by a third party. The errors identified during the audit were made by the third-party provider. Prior to the audit, MEDA was unsatisfied with the accuracy of records and customer service of the provider and engaged with a different payroll provider, transitioning the payroll processing at the beginning of 2025. This finding has very little impact on the financials and on the CDFI award. Total amount of differences between booked payroll and auditor-calculated payroll were less than $200. With the new payroll provider in place, we expect to have accurate results and accurate allocations to federal awards. Responsible Individuals: Catherine Rossini – Controller, Tarsha Humpries- Payroll Manager, Mesude Cingilli – VP of Finance Anticipated Completion Date: January 31, 2025

View Audit 359504

Finding 565772 (2024-003)

Significant Deficiency 2024

Boys & Girls Club of Huntington County, Inc.

IN

Allowable Costs / Cost Principles Cash Management Significant Deficiency

2024-003 Twenty-First Century Community Learning Centers -Assistance Listing No. 84.287 Significant Deficiency in Internal Control Over Compliance and Noncompliance - Appropriate Internal Control Structure Related to Compliance Requirements A. Activities Allowed or Unallowed, B. Allowable Costs/Cost...

2024-003 Twenty-First Century Community Learning Centers -Assistance Listing No. 84.287 Significant Deficiency in Internal Control Over Compliance and Noncompliance - Appropriate Internal Control Structure Related to Compliance Requirements A. Activities Allowed or Unallowed, B. Allowable Costs/Cost Principles, and C. Cash Management Recommendation: The Auditor recommends the policies in accordance with §200.302 Financial Management paragraph (b) (6) and (b)(7) be written by the Organization, approved by the Board of Directors, and included in the permanent files of the Organization. Planned Corrective Action: We agree with the recommendation, and updated our policies in accordance with §200.302 Financial Management paragraph (b) (7) in December 2024 and will update our policies in accordance with (b) (6) by August 2025.

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