Corrective Action Plans

Finding 565771 (2024-002)

Significant Deficiency 2024

Boys & Girls Club of Huntington County, Inc.

IN

Questioned Costs Allowable Costs / Cost Principles Cash Management § 200.305 § 200.403

2024-002 Twenty-First Century Community Learning Centers - Assistance Listing No. 84.287 Significant Deficiency in Internal Control Over Compliance and Noncompliance - Appropriate Review of Expenditures Claimed B. Allowable Costs/Cost Principles Recommendation: The Auditors recommend that management...

2024-002 Twenty-First Century Community Learning Centers - Assistance Listing No. 84.287 Significant Deficiency in Internal Control Over Compliance and Noncompliance - Appropriate Review of Expenditures Claimed B. Allowable Costs/Cost Principles Recommendation: The Auditors recommend that management strengthen its review procedures over expense cutoff to ensure that expenditures are recognized on the SEFA in alignment with GMP. Additionally, training should be provided to accounting personnel on Uniform Guidance compliance and GMP requirements related to expense recognition. Planned Corrective Action: We agree with the recommendation and plan to have the corrective action implemented by August 2025.

View Audit 359460 Questioned Costs: $1

Finding 565770 (2024-001)

Material Weakness 2024

Boys & Girls Club of Huntington County, Inc.

IN

Questioned Costs Allowable Costs / Cost Principles Material Weakness § 200.430

2024-001 Twenty-First Century Community Learning Centers - Assistance Listing No. 84.287 Material Weakness in Internal Control Over Compliance and Noncompliance...., Inadequate Payroll Documentation B. Allowable Costs/Cost Principles Recommendation: The Auditors recommend that management ensure all ...

2024-001 Twenty-First Century Community Learning Centers - Assistance Listing No. 84.287 Material Weakness in Internal Control Over Compliance and Noncompliance...., Inadequate Payroll Documentation B. Allowable Costs/Cost Principles Recommendation: The Auditors recommend that management ensure all employee timecards are signed or electronically certified by the employee in a timely manner. The Auditors also recommend a process be implemented to reconcile time charge to federal award to underlying payroll report. Internal controls should be reinforced to verify that no payroll costs are charged to federal programs without appropriate documentation and approval. Action Taken : We agree with the recommendation and updated our written policy in 2024 . The policy was reviewed by the Finance Committee and approved by the full Board of Directors in December 2024.

View Audit 359460 Questioned Costs: $1

Finding 565740 (2024-003)

Material Weakness 2024

United Way of Acadiana, INC

LA

Allowable Costs / Cost Principles Internal Control / Segregation of Duties

U.S. Department of Health and Human Services Head Start Cluster – Assistance Listing No. 93.600 2024-003 Allowable Costs Recommendation: The Organization should review their established policies and procedures for effectiveness and ensure all employees adhere to all established procedures. Addi...

U.S. Department of Health and Human Services Head Start Cluster – Assistance Listing No. 93.600 2024-003 Allowable Costs Recommendation: The Organization should review their established policies and procedures for effectiveness and ensure all employees adhere to all established procedures. Additionally, management should ensure all costs charged to the program are allowable under the grant guidelines. Corrective Action Plan: United Way of Acadiana hired a new Finance Director in late 2024 who will develop and ensure internal controls for Federal grant programs. Internal controls have been addressed and implemented in 2025 to provide better operational efficiency.

View Audit 359451

Finding 565738 (2024-001)

None 2024

United Way of Acadiana, INC

LA

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

U.S. Department of Health and Human Services Head Start Cluster – Assistance Listing No. 93.600 2024-001 Allowable Costs Recommendation: The Organization should review their established policies and procedures for effectiveness and ensure all employees adhere to all established procedures. Addi...

U.S. Department of Health and Human Services Head Start Cluster – Assistance Listing No. 93.600 2024-001 Allowable Costs Recommendation: The Organization should review their established policies and procedures for effectiveness and ensure all employees adhere to all established procedures. Additionally, management should ensure all costs charged to the program are allowable under the grant guidelines. Corrective Action Plan: United Way of Acadiana hired a new Finance Director in late 2024 who will develop and ensure internal controls for Federal grant programs. Internal controls have been addressed and implemented in 2025 to provide better operational efficiency.

View Audit 359451 Questioned Costs: $1

Finding 565731 (2024-002)

Significant Deficiency 2024

Community Action Agency of Jackson, Lenawee, and Hillsdale

MI

Subrecipient Monitoring Reporting Allowable Costs / Cost Principles § 200.328

2024-002 - Late submission of reports Auditor Description of Condition and Effect: The Agency failed to submit the required report for the federal grant within the stipulated deadlines as outlined in the grant agreement and Uniform Guidance. During reporting testing, it was noted that the Final FFR ...

2024-002 - Late submission of reports Auditor Description of Condition and Effect: The Agency failed to submit the required report for the federal grant within the stipulated deadlines as outlined in the grant agreement and Uniform Guidance. During reporting testing, it was noted that the Final FFR report was not submitted into the Payment Management Services (PMS) prior to the required due date. Late submission of reports results in noncompliance with federal regulations, potentially leading to administrative actions such as withholding of future grant funds, increased monitoring, or other penalties as deemed appropriate by the Federal awarding agency. The Agency did not comply with contractual reporting requirements. Auditor Recommendation: We recommend the Agency implement procedures to ensure timely submission of all required reports. Corrective Action: The Agency will implement a system of reviewing the semi-annual and annual federal financial reporting which would include the reports being prepared by the Financial Grants Manager, reviewed by the Chief Financial Officer and submitted by the Chief Executive Officer, all of whom will be aware of the reporting due dates as to ensure they are filed timely. Responsible Person: Anthony J Samon, CFO Anticipated Completion Date: Immediately, the Agency’s next FFR due date is September 30th.

View Audit 359441

Finding 565728 (2024-001)

Significant Deficiency 2024

Community Action Agency of Jackson, Lenawee, and Hillsdale

MI

Allowable Costs / Cost Principles Eligibility § 200.303

2024-001 - Missing evidence of review and approval Auditor Description of Condition and Effect: During our testing of Allowable Costs, we noted 4 disbursements tested did not have signed and approved purchase orders. During our testing of Reporting, we noted two quarterly reports that had no evidenc...

2024-001 - Missing evidence of review and approval Auditor Description of Condition and Effect: During our testing of Allowable Costs, we noted 4 disbursements tested did not have signed and approved purchase orders. During our testing of Reporting, we noted two quarterly reports that had no evidence of review and approval. During our Eligibility testing, we noted one applicant whose certification form was not signed by the supervisor. As a result of this condition, there is an increased risk of unallowable expenses being charged to the grant, inaccurate financial reporting, allowing ineligible participants to receive grant benefits and other potential noncompliance with federal regulations. Auditor Recommendation: We recommend the Agency adheres to their internal control process of an independent review and approval of transactions and reporting related to federal grant programs. Corrective Action: The Agency will review the accounts payable/purchase order approval process with the finance department, all of whom were new (or the position vacant) during much of the period being examined, to ensure they understand the various requirements. The Agency will verify the review of the semi-annual and annual federal financial reporting by signing off on the reports after various staff have reviewed them. Responsible Person: Anthony J Samon, CFO Anticipated Completion Date: June 15, 2025

View Audit 359441

Finding 565702 (2024-001)

None 2024

The Cleveland Play House

OH

Questioned Costs Allowable Costs / Cost Principles Cash Management § 200.403 § 200.430

CORRECTIVE ACTION PLAN Year Ended June 30, 2024 Finding Number: 2024-001 Planned Corrective Action: Cleveland Play House has had difficulties with finding a long-term replacement for the Director of Finance roll and thus the position has experienced much turnover since June of 2023. During this time...

CORRECTIVE ACTION PLAN Year Ended June 30, 2024 Finding Number: 2024-001 Planned Corrective Action: Cleveland Play House has had difficulties with finding a long-term replacement for the Director of Finance roll and thus the position has experienced much turnover since June of 2023. During this time period, practices have been put in place for the reviewing of grant draws and the approval of time and effort logs. However, the turnover has led to inconsistency with the application of these practices. While the Director of Finance position remains temporarily staffed, there has been improvement in the following of industry best practice for the monitoring of time and effort and grant expenditures. Based on the reduction in questioned costs down from prior year findings and with the continued adherence to best practices for grant costs, Cleveland Play House continues to work towards a clean audit for the fiscal 2025 year ending June 30th, 2025. Anticipated Completion Date: June 30, 2025

View Audit 359414 Questioned Costs: $1

Finding 565700 (2024-002)

Material Weakness 2024

City of Jacksonville

FL

Allowable Costs / Cost Principles Special Tests & Provisions § 200.303 § 200.330

Management’s Action Plan: The Neighborhoods Department is committed to ensuring wage rate requirements for contractors and subcontractors are prioritized and internal controls are properly documented. In particular, evidence of approvals needed to ensure compliance with allowable costs, cost princip...

Management’s Action Plan: The Neighborhoods Department is committed to ensuring wage rate requirements for contractors and subcontractors are prioritized and internal controls are properly documented. In particular, evidence of approvals needed to ensure compliance with allowable costs, cost principles and period of performance requirements will be documented for all invoices and payroll allocations. Weekly payroll reports will be reviewed as part of the special tests and provisions needed to comply with wage rate requirements. A Labor Standards and Construction Manager has been hired to monitor all contracts with labor standard regulations, including wage rate requirements. This individual will be tasked with setting up tracking systems and monitoring compliance of the various City departments, as well as external subrecipients, to ensure all regulations and requirements for labor standards are followed. Currently, City Departments using federal funds through a MOU with the Neighborhoods Department can access funds and pay vendors without a review by the Housing & Community Development Division’s team. This has led to vendors being paid without submitting the proper wage rate requirement documentation. To mitigate this challenge, the Division has recommended that funds appropriated to other City departments be held by the Housing & Community Development Division, so that verification of wage rate requirements can occur prior to any payment for services. We will ensure that the written procedures for controls include the title of the positions responsible for each control (preparation, review, reconciliation, etc.) and require that the performance of the controls be documented in a clear, reperformable manner including the name of each responsible individual, the specific control they performed over compliance for the grant and the date(s) the controls were performed. Contact Names responsible for the plan – Travis Jeffrey Anticipated completion date of the plan – September 2025

View Audit 359404

Finding 565697 (2024-010)

Significant Deficiency 2024

Washington County

OR

Allowable Costs / Cost Principles

Auditor recommendation: The County should develop and implement policies and procedures to ensure that payroll and administrative expenditure matching is reviewed to ensure the 25% matching requirement is met and costs used to match are allowable. Management response: Agree Target date to complete...

Auditor recommendation: The County should develop and implement policies and procedures to ensure that payroll and administrative expenditure matching is reviewed to ensure the 25% matching requirement is met and costs used to match are allowable. Management response: Agree Target date to complete implementation activities: July 2026 Name of specific point of contact for implementation: Ryan Bansbach, Deputy CFO, Housing, 503.846.8811 Response: The Homeless Division, that administers the programmatic aspect of the Continuum of Care, reviewed budget allocations to subrecipients including the Housing Authority. Although match was reviewed and included in the approved County budget, the Homeless Division is developing and implementing policies and procedures to ensure documentation of match review is retained. In future fiscal years, Washington County has committed the match to subrecipients to ensure the match is met and eligible in alignment with HUD expenses.

View Audit 359401

Finding 565673 (2024-001)

Significant Deficiency 2024

School's Out Washington

WA

Questioned Costs Allowable Costs / Cost Principles

Create a policy that clearly specifies that subscription and other costs related to federally funded programs which are invoiced on an annual basis are expensed on an accrual basis rather than as period expenses. Policy will also include procedures to assure that for federally funded programs the re...

Create a policy that clearly specifies that subscription and other costs related to federally funded programs which are invoiced on an annual basis are expensed on an accrual basis rather than as period expenses. Policy will also include procedures to assure that for federally funded programs the recognition of expenses aligns with the performance period of the federal contracts. Implement new policy effective immediately. Revise treatment of all bills invoiced on an annual basis received in 2025 to comply with new policy. Make adjusting journal entries as needed to assure that any expenses related to annual invoices do not result in charges to federally funded programs beyond the performance period. Anticipated completion date: 6/30/25 School’s Out Washington considers the above steps sufficient and adequate to close the gaps in the coding of transactions that may have permitted unallowable costs to post to grants for YE2024. These steps will remedy the lapse in effectiveness experienced by School’s Out Washington’s internal controls over allowable costs.

View Audit 359353 Questioned Costs: $1

Finding 565672 (2024-001)

Significant Deficiency 2024

Boys & Girls Clubs of Southeastern Michigan

MI

Subrecipient Monitoring Allowable Costs / Cost Principles Reporting

Delinquent Filing of Reports Auditor Description of Condition and Effect: The Organization failed to submit certain reports for the federal grant within the stipulated deadlines as outlined in the grant agreement and Uniform Guidance. Late or delinquent submission of reports results in noncompliance...

Delinquent Filing of Reports Auditor Description of Condition and Effect: The Organization failed to submit certain reports for the federal grant within the stipulated deadlines as outlined in the grant agreement and Uniform Guidance. Late or delinquent submission of reports results in noncompliance with federal regulations, potentially leading to administrative actions such as withholding of future grant funds, increased monitoring, or other penalties as deemed appropriate by the Federal awarding agency. The Organization did not comply with certain contractual reporting requirements. Auditor Recommendation: We recommend the Organization implement procedures to ensure timely submission of all required reports. Corrective Action: BGCSM leadership agrees with the audit finding noted above. BGCSM will establish and document clear grant administration policies and procedures. The processes will include steps to ensure a thorough understanding of the reporting requirements to ensure timely and accurate reporting. Responsible Person: Resource Development – Julia Callis and Gregory McPherson Anticipated Completion Date: 6/30/2025

View Audit 359350

Finding 565663 (2024-004)

Material Weakness 2024

Community Action Partnership of North Dakota Inc.

ND

Questioned Costs Subrecipient Monitoring Internal Control / Segregation of Duties § 200.331

2024-004 Allowable Costs Compliance - SSVF Person responsible for corrective action - Andrea Olson, executive Director Responsible official's response - Management is in agreement with this finding. Corrective acction planned - CAPND has a comprehensive monitoring plan to monitor all grant supported...

2024-004 Allowable Costs Compliance - SSVF Person responsible for corrective action - Andrea Olson, executive Director Responsible official's response - Management is in agreement with this finding. Corrective acction planned - CAPND has a comprehensive monitoring plan to monitor all grant supported activities in accordance with program rules relative to SSVF program including rules established by the program, those established by CAPND. Planned implementation date of corrective action - 2025

View Audit 359346 Questioned Costs: $1

Finding 565662 (2024-003)

Material Weakness 2024

Community Action Partnership of North Dakota Inc.

ND

Subrecipient Monitoring Allowable Costs / Cost Principles Material Weakness

2024-003 Subrecipient Monitoring and Allowable Costs – Material Weakness Person responsible for corrective action – Andrea Olson, Executive Director Corrective action planned – CAPND has a comprehensive monitoring plan to monitor all grantsupported activities in accordance with program rules relativ...

2024-003 Subrecipient Monitoring and Allowable Costs – Material Weakness Person responsible for corrective action – Andrea Olson, Executive Director Corrective action planned – CAPND has a comprehensive monitoring plan to monitor all grantsupported activities in accordance with program rules relative to SSVF program including rules established by the VA, those established by CAPND, and by 2CFR Part 200. Planned implementation date of corrective action – June 18, 2025

View Audit 359346

Finding 565532 (2024-004)

Significant Deficiency 2024

It's Time Texas, Inc.

TX

Questioned Costs Allowable Costs / Cost Principles

Corrective Action Plan: Healthier Texas has initiated corrective action to establish internal control procedures that align with the Uniform Guidance and the applicable Compliance Supplement. Lonnicia Maxwell, SVP of Operations, and Asawar Sajid, Accountant, will oversee the review and correction of...

Corrective Action Plan: Healthier Texas has initiated corrective action to establish internal control procedures that align with the Uniform Guidance and the applicable Compliance Supplement. Lonnicia Maxwell, SVP of Operations, and Asawar Sajid, Accountant, will oversee the review and correction of unallowable costs to ensure compliance going forward. Healthier Texas has made the requested revisions to our travel policy to include that gratuities are unallowable. Healthier Texas has updated our travel policy to provide clarity around employee meals and per diem rates

View Audit 359326 Questioned Costs: $1

Finding 565527 (2024-006)

Significant Deficiency 2024

Southern Fulton School District

PA

Student Financial Aid Subrecipient Monitoring Allowable Costs / Cost Principles

The finding from Section III – 2024-006 General Ledger System Condition: The District did not track the federal expenditures within the general ledger system, or if they were, the business office was unaware of the process and was not using the correct expenditures to claim as eligible expenditures...

The finding from Section III – 2024-006 General Ledger System Condition: The District did not track the federal expenditures within the general ledger system, or if they were, the business office was unaware of the process and was not using the correct expenditures to claim as eligible expenditures. Views of Responsible Officials and Planned Corrective Actions: Southern Fulton School District has hired a Certified Public Accountant (CPA) as the Chief Financial Officer (CFO) as of 4/1/2025 who will be responsible for ensuring that the general ledger system is utilized to track all federal expenditures.

View Audit 359322

Finding 565501 (2024-004)

Significant Deficiency 2024

Highland Falls-Fort Montgomery Central School District

NY

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

Finding & Recommendation 2024-004: As per C.R. 170.2 of the Commissioner's Regulations, Purchase Orders must be established to encumber approved budget items for each expenditure in advance of the expenditure. For the ARP Summer Enrichment grant, Purchase Orders were created after the dates of servi...

Finding & Recommendation 2024-004: As per C.R. 170.2 of the Commissioner's Regulations, Purchase Orders must be established to encumber approved budget items for each expenditure in advance of the expenditure. For the ARP Summer Enrichment grant, Purchase Orders were created after the dates of service and the district did not have sufficient internal controls in place to ensure Purchase Orders are created in accordance with the above noted regulation. It is recommended that the District's written procedures addressing internal controls with respect to program requirements be followed to ensure the District is in compliance at all times. Corrective Action: The district concurs and understands the importance of maintaining internal controls in accordance with Commissioner Regulations. By June 30, 2025, Assistant Superintendent Christopher Carballo will review with Business Office Staff the existing procedures for the creation of purchase orders in advance of the expenditure. Additionally, Asst. Superintendent Carballo will review these procedures with clerical staff across the district involved in the creation of purchase orders and will remind district administrators at the start of the new fiscal year that purchase orders need to be established in advance for all expenditures.

View Audit 359289 Questioned Costs: $1

Finding 565500 (2024-005)

Significant Deficiency 2024

Highland Falls-Fort Montgomery Central School District

NY

Allowable Costs / Cost Principles § 200.430

Finding & Recommendation 2024-005: As per 2 CFR, part 430(i)(l) of the Office of Management and Budget's Uniform Grant Guidance, charges to Federal Awards for salaries and wages must be based on records that accurately reflect the work performed. The district did not complete Federal payroll certifi...

Finding & Recommendation 2024-005: As per 2 CFR, part 430(i)(l) of the Office of Management and Budget's Uniform Grant Guidance, charges to Federal Awards for salaries and wages must be based on records that accurately reflect the work performed. The district did not complete Federal payroll certification until May 2024 and did not have sufficient internal controls in place to ensure the certification process was being performed. It is recommended the district's written procedures addressing internal controls with respect to the program requirements be followed to ensure the district tis in compliance at all times. Corrective Action: The district concurs and understands the importance of maintaining internal controls in accordance with 0MB Uniform Grant Guidance. By June 30, 2025, Assistant Superintendent Christopher Carballo will review the existing procedure for Federal payroll certification with Business Office staff to ensure compliance in the future.

View Audit 359289

Finding 565487 (2024-039)

Significant Deficiency 2024

Commonwealth of Massachusetts

MA

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

MASSACHUSETTS EMERGENCY MANAGEMENT AGENCY 2024-039 COVID-19 - Disaster Grants – Public Assistance (Presidentially Declared Disasters) - Assistance Listing No. 97.036 Recommendation: We recommend the Agency review and enhance procedures and controls to ensure that costs charged to the program are all...

MASSACHUSETTS EMERGENCY MANAGEMENT AGENCY 2024-039 COVID-19 - Disaster Grants – Public Assistance (Presidentially Declared Disasters) - Assistance Listing No. 97.036 Recommendation: We recommend the Agency review and enhance procedures and controls to ensure that costs charged to the program are allowable, approved, and accounted for properly in the Commonwealth’s accounting system. Action taken in response to finding: MEMA is recognizing the importance of documentation and internal controls. This current fiscal year an Internal Control Group was formed to review, create and overhaul what is needed or needed to be updated. The team primary stakeholders is made up of the CFO, Legal Counsel, Assistant Director for Recovery and Mitigation and Emergency Management Grants Supervisor. We are making the completion of updated Policies and Procedures a priority to address the findings such as the ones being pointed out as a critical piece to the success of the agency going forward. We have found that there has been much to update, and we are doing our best to deliver these much-needed documents as soon as possible. Name(s) of the contact person(s) responsible for corrective action: Randall Lui Planned completion date for corrective action plan: End of the Federal Fiscal Year 9/30/2025

View Audit 359283

Finding 565475 (2024-034)

Significant Deficiency 2024

Commonwealth of Massachusetts

MA

Eligibility Special Tests & Provisions Allowable Costs / Cost Principles § 200.303

EXECUTIVE OFFICE OF HEALTH AND HUMAN SERVICES 2024-034 Medicaid Cluster, COVID-19 – Medicaid Cluster - Assistance Listing No. 93.775, 93.777, 93.778 Recommendation: The Department should enhance its procedures and internal controls to ensure it properly monitors high-risk providers and that it maint...

EXECUTIVE OFFICE OF HEALTH AND HUMAN SERVICES 2024-034 Medicaid Cluster, COVID-19 – Medicaid Cluster - Assistance Listing No. 93.775, 93.777, 93.778 Recommendation: The Department should enhance its procedures and internal controls to ensure it properly monitors high-risk providers and that it maintains documentation that claims are paid only to eligible providers. Action taken in response to finding: Providers who are identified as high risk, are sent for fingerprinting. Once the fingerprinting results are received, they are scheduled for a site visit. Business Support Services have reinforced with staff that the site visit must follow the fingerprinting results. Additionally, a checklist will be created for all high-risk providers to ensure that all required steps in the process are completed at enrollment, revalidation or when they are identified as having a credible allegation of fraud or appropriate overpayment. Name(s) of the contact person(s) responsible for corrective action: Janice Wadsworth, MassHealth Director Provider Operations Keith West, Director Special Projects Business Support Services and Chris Silva, Manager Provider Enrollment Business Support Services. Planned completion date for corrective action plan: The checklist will be complete by July 2025.

View Audit 359283

Finding 565433 (2024-013)

Significant Deficiency 2024

Commonwealth of Massachusetts

MA

Allowable Costs / Cost Principles § 200.303 § 200.430

EXECUTIVE OFFICE OF LABOR AND WORKFORCE DEVELOPMENT 2024-013 WIOA Cluster - Assistance Listing No. 17.258, 17.259, 17.278 Recommendation: The Department should update its procedures and controls and perform additional training over time and effort reporting to ensure that payroll costs charged to th...

EXECUTIVE OFFICE OF LABOR AND WORKFORCE DEVELOPMENT 2024-013 WIOA Cluster - Assistance Listing No. 17.258, 17.259, 17.278 Recommendation: The Department should update its procedures and controls and perform additional training over time and effort reporting to ensure that payroll costs charged to the program are based on actual time and effort and a combination code that is allowable under the program. The Department should not seek federal reimbursement unless it can substantiate that the time and effort was dedicated to the federal program. Action taken in response to finding: EOLWD Finance continues to address time and effort reporting compliance through targeted training and system enhancements. Ongoing training is provided for new staff to ensure they correctly enter combo codes that align with the activities performed. To strengthen oversight, a custom report has been developed to identify employees missing combo codes each week, allowing Finance staff to proactively follow up and ensure proper time charging weekly. Looking ahead, Finance will collaborate with departments in the upcoming fiscal year to update labor distribution profiles, ensuring that employees are defaulted to the correct combo codes for accurate and efficient time reporting. Name(s) of the contact person(s) responsible for corrective action: Sarah Shannon, Ken Luke, Anna Yong, Vina Yung Planned completion date for corrective action plan: 12/31/2025

View Audit 359283

Finding 565430 (2024-012)

Significant Deficiency 2024

Commonwealth of Massachusetts

MA

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

EXECUTIVE OFFICE OF LABOR AND WORKFORCE DEVELOPMENT 2024-012 WIOA Cluster - Assistance Listing No. 17.258, 17.259, 17.278 Recommendation: We recommend the Agency review and enhance procedures and controls to ensure that costs charged to the program are allowable, approved, and accounted for properly...

EXECUTIVE OFFICE OF LABOR AND WORKFORCE DEVELOPMENT 2024-012 WIOA Cluster - Assistance Listing No. 17.258, 17.259, 17.278 Recommendation: We recommend the Agency review and enhance procedures and controls to ensure that costs charged to the program are allowable, approved, and accounted for properly in the Commonwealth’s accounting system. Action taken in response to finding: During the review, supporting documentation for certain expenditure adjustments (EX) could not be located. Since then, the department has taken steps to strengthen internal controls and improve documentation practices. Under new management, enhanced oversight procedures have been implemented, requiring all expenditure adjustments to undergo review and approval by multiple levels of management and staff. To ensure transparency and audit readiness, all supporting documentation is now stored in a centralized and accessible SharePoint repository. Additionally, revised procedures are being integrated into the department's standard operating protocols to support ongoing monitoring. These updates are designed to ensure that all future adjustments are properly documented, allowable under applicable federal regulations, and readily available for review. Name(s) of the contact person(s) responsible for corrective action: Ken Luke Planned completion date for corrective action plan: 9/30/2025

View Audit 359283

Finding 565402 (2024-006)

Significant Deficiency 2024

Kearsarge Elderly Housing, Inc.

NH

Internal Control / Segregation of Duties Allowable Costs / Cost Principles

The Director of Affordable Housing will ensure that her staff submit allocation sheets each pay period. The Director will review the allocation sheets for accuracy, and the Director will approve the allocation sheets before submitting to Payroll for processing. The Chief Operating Officer will ensu...

The Director of Affordable Housing will ensure that her staff submit allocation sheets each pay period. The Director will review the allocation sheets for accuracy, and the Director will approve the allocation sheets before submitting to Payroll for processing. The Chief Operating Officer will ensure that the Director of Affordable Housing submits an allocation sheet each pay period. The COO will check the allocation sheet for accuracy before approving the allocation sheet and submitting to Payroll for processing. The allocation sheet submitted will include detailed information on the job duties performed during that pay period by the staff member submitting the allocation sheet. Completion Date: 3/28/25 Contact: Jackie Oliveira-Director of Affordable Housing

View Audit 359276

Finding 565400 (2024-005)

Significant Deficiency 2024

Kearsarge Elderly Housing, Inc.

NH

Allowable Costs / Cost Principles Internal Control / Segregation of Duties

The Director of Affordable Housing will document job duties for each position in the department. The Director will be sure that staff are recording duties performed on their timesheet. Anticipated Completion Date: 3/28/25 Contact: Jackie Oliveira-Director of Affordable Housing

View Audit 359276

Finding 565385 (2024-001)

Material Weakness 2024

Dearborn Housing Commission

MI

HUD Housing Programs Allowable Costs / Cost Principles Cash Management

Corrective Action Plan: The Accounts Receivable of $1.6 million for the Capital Fund Program was drawn down from eLOCCS on November 27th, 2024. Additionally, the new Executive Director has gained access to eLOCCS.

View Audit 359245

Finding 565375 (2024-001)

None 2024

Umass Memorial Health Care, Inc.

MA

Procurement, Suspension & Debarment Subrecipient Monitoring Allowable Costs / Cost Principles § 200.318 § 200.324

2024-001 Procurement Cluster: Not applicable Grantor: Department of Health and Human Services (DHHS) Award Name: Congressionally Directed Spending Award Number: 6 CE1HS52894‐01‐04, 6 CE1HS52345‐01‐05 Award Year: FY2024 Assistance Listing Number: 93.493 Assistance Listing Title: Congressional Dire...

2024-001 Procurement Cluster: Not applicable Grantor: Department of Health and Human Services (DHHS) Award Name: Congressionally Directed Spending Award Number: 6 CE1HS52894‐01‐04, 6 CE1HS52345‐01‐05 Award Year: FY2024 Assistance Listing Number: 93.493 Assistance Listing Title: Congressional Directives Pass-through Entity: Not applicable In accordance with 2 CFR 200.318 the System must maintain procurement records of sufficient detail that include the rationale for the procurement method, contract type selection, contractor selection or rejection, and the basis for the contract price. For two of two of the auditors’ selections sufficient documentation was not retained from the time of procurement during fiscal year 2023 to demonstrate sole source justification or the competitive bidding process for these samples. For one mammography technology asset, documentation of sole source vendor justification was not documented and retained by the System following Policy HA-50-42, Capital Equipment Requests. For the second selection, while competitive bids were obtained, management did not adequately retain documentation to support the vendor ultimately selected for the selected hardware component and the other bids obtained. Management has reviewed the Capital Equipment Request policy and the related capital request process and will reinforce the need to adhere to existing policies and the importance of retaining appropriate documentation during fiscal year 2025. Primary responsibility of implementing the Corrective Action Plan for this finding rests with Brian Huggins, Senior Vice President of Finance, Corporate Controller, (508) 334-0252.

View Audit 359222

Corrective Action Plans

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