Corrective Action Plans

Finding 1165556 (2024-216)

Material Weakness 2024

State of Idaho

ID

Matching / Level of Effort / Earmarking Internal Control / Segregation of Duties Allowable Costs / Cost Principles § 200.303

Finding 2024-216: Coronavirus State and Local Fiscal Recovery Funds (CSLFRF) project and expenditure reports (P&E) contained material overstatements. Related to Prior Finding: N/A Agency’s view: Agree Corrective Action Plan: DFM is currently training other staff members to add to the bench of suppor...

Finding 2024-216: Coronavirus State and Local Fiscal Recovery Funds (CSLFRF) project and expenditure reports (P&E) contained material overstatements. Related to Prior Finding: N/A Agency’s view: Agree Corrective Action Plan: DFM is currently training other staff members to add to the bench of support for SLFRF quarterly reporting. This training includes matching expenditures in Luma. We are also going to engage with SCO to see if we can get a report built to identify agency expenditures and match them to the reports provided by the agencies. Additionally, we will continue to work with the US Treasury to see if we can update previous reporting periods. Anticipated Corrective Action Date: June 30, 2026. Responsible for Corrective Action: Justin Collins Deputy Administrator | State Financial Officer Phone: (208) 854-3063 Email: Justin.Collins@dfm.idaho.gov 304 N 8th Street, Fl. 3 Boise, ID 83720

View Audit 376229

Finding 1165554 (2024-214)

Material Weakness 2024

State of Idaho

ID

Allowable Costs / Cost Principles Cash Management Matching / Level of Effort / Earmarking § 200.303 § 200.400

Finding 2024-214: The Department does not have documented internal controls for cash draws and requested reimbursement for the same $175,500 grant expenditure twice. Related to Prior Finding: N/A Agency’s view: Agree Corrective Action Plan: DEQ has had significant turnover in the fiscal office, whic...

Finding 2024-214: The Department does not have documented internal controls for cash draws and requested reimbursement for the same $175,500 grant expenditure twice. Related to Prior Finding: N/A Agency’s view: Agree Corrective Action Plan: DEQ has had significant turnover in the fiscal office, which has resulted in gaps of knowledge of policies and practices. In summer 2025, DEQ leadership reorganized the fiscal department to improve efficiency, enhance oversight of grants and contracts, and strengthen financial controls. The fiscal office is currently in a rebuilding phase and is dedicated to training and developing staff, implementing best practices, and documenting processes and procedures, including those for federal grant compliance. The duplicate payment in question was issued but not redeemed. The issuance was to a similar, but incorrect, vendor name and was caught by staff before it was sent to the vendor. The transaction was cancelled in Luma but was not properly recorded in the following draw request. Fiscal staff now perform a thorough review of transactions before a loan draw is finalized in Luma, reconciling the transactions from the Loans and Grants Tracking System (LGTS) to the information generated in the Luma draw invoice. The reconciling and supporting documentation from LGTS is attached to the Luma draw invoice. Anticipated Corrective Action Date: January 31, 2026 Responsible for Corrective Action: Linda Brown, Financial Executive Officer, at 208-373-0292 or linda.brown@deq.idaho.gov

View Audit 376229

Finding 1165552 (2024-212)

Material Weakness 2024

State of Idaho

ID

Allowable Costs / Cost Principles Internal Control / Segregation of Duties HUD Housing Programs § 200.303 § 200.400

Finding 2024-212: The Department’s Indirect Cost Rate Proposal (ICRP) contained multiple errors. Related to Prior Finding: N/A Agency’s view: Agree Corrective Action Plan: DEQ has had significant turnover in the fiscal office, which has resulted in gaps of knowledge of policies and practices. In sum...

Finding 2024-212: The Department’s Indirect Cost Rate Proposal (ICRP) contained multiple errors. Related to Prior Finding: N/A Agency’s view: Agree Corrective Action Plan: DEQ has had significant turnover in the fiscal office, which has resulted in gaps of knowledge of policies and practices. In summer 2025, DEQ leadership reorganized the fiscal department to improve efficiency, enhance oversight of grants and contracts, and strengthen financial controls. The fiscal office is currently in a rebuilding phase and is dedicated to training and developing staff, implementing best practices, and documenting processes and procedures, including those for federal grant compliance. The agency has new staff that will be preparing and submitting the indirect cost rate proposal this year and will take the auditor’s recommendations very seriously in our development and preparation. We have reached out to our federal oversight agency for assistance and direction Page 2 of 3 and are committed to maintaining a file with all supporting documentation used to compile and prepare the proposal, as required by 2 CFR 200. Anticipated Corrective Action Date: January 31, 2026 Responsible for Corrective Action: Linda Brown, Financial Executive Officer, at 208-373-0292 or linda.brown@deq.idaho.gov

View Audit 376229

Finding 1165517 (2024-206)

Material Weakness 2024

State of Idaho

ID

Procurement, Suspension & Debarment Subrecipient Monitoring Reporting § 200.303

Finding 2024-206: The Department did not complete required reports for the Federal Funding Accountability and Transparency Act (FFATA) Related to Prior Finding: N/A Agency’s view: Agree Corrective Action Plan: Multiple RFPs were issued to obtain subject matter experts support for Grant Accounting Su...

Finding 2024-206: The Department did not complete required reports for the Federal Funding Accountability and Transparency Act (FFATA) Related to Prior Finding: N/A Agency’s view: Agree Corrective Action Plan: Multiple RFPs were issued to obtain subject matter experts support for Grant Accounting Support and Grant Administration Support. Internal discussions determined the need for more accounting, administration, and grant management support. Below is our status for support through public procurement. a. The Grant Accounting support was awarded October 2025. b. Procurement of Grant Administration support is in the end stages of award. 2. Updated Procedures (Implemented – April 2025) a. The Department has updated its Notice of Award procedures to explicitly include FFATA reporting as a required step once a Federal grant agreement is fully executed. This requirement is now documented in agency procedures, internal checklists, and award processing workflows. 3. Assignment of Responsibility (Implemented – April 2025) a. Responsibility for FFATA compliance has been formally assigned to the Grants and Contracts Officer with the contracted administrative grant support, with assistance provided from the contracted accounting support when necessary. Their duties now include: i. Completing required FFATA submissions following award execution, andii. The process has now been added to our internal processes and procedures and updated with staff. 4. Quarterly Monitoring and Verification (April - 2025) a. To prevent recurrence, Grants and Contracts Officer will conduct a quarterly review of all Federal Grant programs to ensure: i. All applicable awards are listed in the FFATA, ii. No required submissions have been omitted. iii. Any discrepancies are corrected promptly. iv. These quarterly reviews will be documented and retained for audit and internal monitoring purposes. 5. Training and Staff Communication (In Progress — Completion in February 2026 a. Training began in April 2025 and was expanded in October 2025 with support from our Grant Accounting Contractor. The contractor assists in finalizing accounting, reporting, and compliance with OMB guidance. They provide training, updated procedures, and staff guidance. Updated procedures and training will be completed in conjunction with our contractor’s subject matter expertise. Updated policies, training materials, and procedural guidance will be completed and fully implemented in February 2026, with training documented and provided to all Grants and Contracts Officers, contracted services, and relevant program personnel. The training includes but is not limited to: a. All Federal reporting requirements (including FFATA) b. Applicable CFR compliance obligations. Newly implemented internal controls and review procedures. Anticipated Corrective Action Date: February 2026 Responsible for Corrective Action: Ewa Szewczyk Compliance Manager Idaho Department of Commerce Email: ewa.szewczyk@commerce.idaho.gov Phone: 208-287-0784

View Audit 376229

Finding 1165513 (2024-202)

Material Weakness 2024

State of Idaho

ID

Allowable Costs / Cost Principles § 200.303 § 200.400

Finding 2024-202: The Cost Allocation Plan (CAP) used in fiscal year 2024 was not approved by the RSA as required and contained multiple errors. Related to Prior Finding: N/A Agency’s view: Agree Corrective Action Plan: ICBVI recognizes it did not submit its Cost Allocation Plan for annual recertifi...

Finding 2024-202: The Cost Allocation Plan (CAP) used in fiscal year 2024 was not approved by the RSA as required and contained multiple errors. Related to Prior Finding: N/A Agency’s view: Agree Corrective Action Plan: ICBVI recognizes it did not submit its Cost Allocation Plan for annual recertification as required and that the CAP contained errors due to transition challenges with the new accounting software (Luma). CAP Update and Approval: The CAP will be revised to reflect the current chart of accounts and reporting parameters of the Luma system. We have a meeting scheduled with the Director of the Indirect Cost Division at the US Dept of Education on 12/10/25. We will be submitting an updated CAP for review and approval. Annual submission for federal recertification will be scheduled and tracked. Documentation: All expenditure data and supporting documentation will be sourced directly from Luma and retained for verification Anticipated Corrective Action Date: 1-15-26 Responsible for Corrective Action: Corey Bresina, Administrative Services Manager, 208-639-8369, cbresina@icbvi.idaho.gov

View Audit 376229

Finding 1165512 (2024-201)

Material Weakness 2024

State of Idaho

ID

Matching / Level of Effort / Earmarking Allowable Costs / Cost Principles Internal Control / Segregation of Duties § 200.302 § 200.303 § 200.400

Finding 2024-201: Multiple errors were identified in the amounts reported on the Rehabilitation Services Administration (RSA) reports required for the Rehabilitation Services-Vocational Rehabilitation Grants to States. Related to Prior Finding: N/A Agency’s view: Agree Corrective Action Plan: These ...

Finding 2024-201: Multiple errors were identified in the amounts reported on the Rehabilitation Services Administration (RSA) reports required for the Rehabilitation Services-Vocational Rehabilitation Grants to States. Related to Prior Finding: N/A Agency’s view: Agree Corrective Action Plan: These errors in quarterly and final RSA-17 reports are acknowledged, and immediate measures are being taken to address root causes: Accurate Financial Reporting: ICBVI will develop detailed procedures to ensure all amounts reported on federal forms are reconciled to supporting documentation in the accounting system (Luma) prior to submission. Review and Oversight: A two-person review process will be formalized, ensuring every report is checked for accuracy by a knowledgeable reviewer before submission. Documentation and Training: Supporting documentation for all line items will be archived securely. Staff will receive training in federal grant reporting standards. Anticipated Corrective Action Date: 1-15-26 Responsible for Corrective Action: Corey Bresina, Administrative Services Manager, 208-639-8369, cbresina@icbvi.idaho.gov

View Audit 376229

Finding 1165511 (2024-200)

Material Weakness 2024

State of Idaho

ID

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

Finding 2024-200: The Commission did not comply with federal Matching, Level of Effort, and Earmarking grant requirements for the Rehabilitation Services-Vocational Rehabilitation Grants to States program. Related to Prior Finding: N/A Agency’s view: Agree Corrective Action Plan: The Cost Allocation...

Finding 2024-200: The Commission did not comply with federal Matching, Level of Effort, and Earmarking grant requirements for the Rehabilitation Services-Vocational Rehabilitation Grants to States program. Related to Prior Finding: N/A Agency’s view: Agree Corrective Action Plan: The Cost Allocation Plan (CAP) needs to be updated, resubmitted, and approved through RSA. We also agree that ICBVI needs to provide clear documentation to support the numbers in our CAP. ICBVI has reviewed its documentation and believes we met the federal Matching, Level of Effort, and Earmarking requirements for the Rehabilitation Services-Vocational Rehabilitation Grants to States program. Matching and Maintenance of Effort (MOE): ICBVI uses a monthly/semi-monthly CAP process to determine the level of federal draw for reimbursement. These draw amounts are based on the necessary monthly amounts (1/12) of the required 21.3% of the total grant award + match, OR the MOE amount from 2 years prior (whichever is greater). This CAP process keeps track of the Grant Total, Draws to Date, To be Drawn, State Portion, and Match/MOE amount YTD. It is through this systematic monthly process that we calculate what the allowable direct and indirect State expenditures are and will make draws that allow us to reach the Match/MOE targets. Based on our documentation, we have made our Match and MOE amounts for the years in question. Documentation supporting the reported amounts can be found in the CAPs from any FFY. Earmarking: Allowable expenditures for Pre-Employment Transition Services (Pre-ETS) are also tracked in the CAP. Documentation to support amounts reported can be found in the CAPs from any FFY. CAP Update and Approval: We have a meeting scheduled with the Director of the Indirect Cost Division at the US Dept of Education on 12/10/25. The CAP will be revised to reflect the current chart of accounts and reporting parameters of the Luma system. We will be submitting an updated CAP for review and approval. Documentation: All expenditure data and supporting documentation will be sourced directly from Luma and retained for verification. Internal Controls and Training: ICBVI will continue to improve its internal control procedures to include periodic training and cross-training on compliance requirements, ensuring reviews are substantive and error detection is robust. ICBVI will also seek further guidance from the federal grantor and will document all correspondence and remedial efforts. Anticipated Corrective Action Date: 1-15-26 Responsible for Corrective Action: Corey Bresina, Administrative Services Manager, 208-639-8369, cbresina@icbvi.idaho.gov

View Audit 376229

Finding 1165365 (2024-004)

Material Weakness 2024

Alamo Area Mutual Housing Association

TX

Internal Control / Segregation of Duties Allowable Costs / Cost Principles Significant Deficiency

CORRECTIVE ACTION PLAN Name and Number of the Project: Alamo Area Mutual Housing Association Audit Firm: M Group, LLP Audit Period: The year ended December 31, 2024 Compliance Review A. COMMENTS ON FINDINGS AND RECOMMENDATIONS We concur with the findings and recommendations of our auditors regarding...

CORRECTIVE ACTION PLAN Name and Number of the Project: Alamo Area Mutual Housing Association Audit Firm: M Group, LLP Audit Period: The year ended December 31, 2024 Compliance Review A. COMMENTS ON FINDINGS AND RECOMMENDATIONS We concur with the findings and recommendations of our auditors regarding our noncompliance as cited in the accompanying Schedule of Findings and Questioned Costs. ACTIONS TAKEN: FINDING 2024-004: The Company does not have effective internal controls or consistently follow the written policies and procedures over federal awards. CORRECTIVE ACTION: Alamo is seeking training and support to improve internal controls and policies and procedures for oversight of federal awards. The Board of Directors is providing oversight and researching recommendations to ensure adequate internal controls are functioning. Alamo currently has a Memorandum of Understanding with a non-profit corporation for a potential acquisition or merger who will provide expertise and guidance to improve controls and implement adequate policies and procedures.

View Audit 375928

Finding 1165273 (2024-002)

Material Weakness 2024

Argus Community, INC

NY

Allowable Costs / Cost Principles § 200.430

Corrective Action Planned: In July 2023, the Organization implemented ADP Work Force Now to systematically capture hours worked, the supervisor's approval and audit trail to reflect the work performed. Budget and Grants in conjunction with the program and Human Resources will implement a hindsight r...

Corrective Action Planned: In July 2023, the Organization implemented ADP Work Force Now to systematically capture hours worked, the supervisor's approval and audit trail to reflect the work performed. Budget and Grants in conjunction with the program and Human Resources will implement a hindsight review of employee working hours with a certification by the employee and supervisor. Name(s) of Contact Person(s) Responsible for Corrective Action: Betsey Knapp, Director of Budgets and Contracts: Alvin Sinckler, Chief Financial Officer Anticipated Completion Date: November 15, 2025.

View Audit 375784

Finding 1164945 (2024-003)

Material Weakness 2024

Eve, INC

MI

Allowable Costs / Cost Principles Material Weakness Reporting

Management concurs with the finding and has initiated immediate steps to strengthen record retention and succession planning for federal award management. A key element of our response is the engagement our outsourced accounting provider, to ensure compliance with federal regulations and establish r...

Management concurs with the finding and has initiated immediate steps to strengthen record retention and succession planning for federal award management. A key element of our response is the engagement our outsourced accounting provider, to ensure compliance with federal regulations and establish robust processes. To address this finding, the following actions are underway: - By December 31, 2025, management, with the expertise of the outsourced CPA firm, will implement a comprehensive record retention policy tailored to federal award management. This policy will outline retention periods, storage protocols, and access requirements, ensuring all documentation is systematically organized and readily available. - For fiscal year 2025, the outsourced CPA firm is assisting in the creation and retention of adequate reconciling schedules to support all grant draw requests, aligning our processes with federal compliance standards. - The outsourced CPA firm is also supporting the development of detailed procedure manuals for federal award processes and the implementation of a document management system to centralize and secure critical records. These efforts will mitigate the risks associated with staff turnover and ensure continuity of operations. - By December 31, 2025, management will formalize a succession planning process for key positions involved in federal award management, incorporating cross-training of staff under the guidance of our CPA firm to facilitate knowledge transfer and operational resilience. The transition to our outsourced accounting provider addresses the root causes of this finding by bringing specialized expertise and structured processes to our federal award management. We are confident that these actions will result in sustainable improvements and full compliance with federal requirements. Anticipated completion date for these initiatives is December 31, 2025. Anticipated completion date is December 31, 2025.

View Audit 374870

Finding 1164825 (2024-002)

Material Weakness 2024

County of Montgomery

PA

Subrecipient Monitoring Allowable Costs / Cost Principles § 200.332

Finding 2024-002 - Subrecipient Monitoring Federal Agency: Department of Treasury Program: COVID-19 - Coronavirus State and Local Fiscal Recovery Funds - ALN #21.027 Condition: As part of the monitoring process, the County did not obtain and review the annual audit reports of subrecipients. Planned ...

Finding 2024-002 - Subrecipient Monitoring Federal Agency: Department of Treasury Program: COVID-19 - Coronavirus State and Local Fiscal Recovery Funds - ALN #21.027 Condition: As part of the monitoring process, the County did not obtain and review the annual audit reports of subrecipients. Planned Corrective Action: Upon notification of this issue during the 2024 Single Audit, the County immediately took action to implement corrective actions to be compliant with this with this requirement. The County modified the subrecipient quarterly report template for Q3 2025 to include a question requiring all subrecipients to verify if they were audited as required by subpart F of 200.332. The County then conducted the required follow up to obtain and review each audit to identify any significant developments that might negatively impact the subaward. Of the 27 subrecipient audits reviewed, only one had a finding related to 21.027 regarding keeping records of their reporting to the County and hiring a full-time finance director. The County followed up with the subrecipient to confirm that they have put their corrective action into place and the subrecipient responded that this was complete. Additionally, there were four subrecipients who reported that they were required to have an audit, but it wasn't completed yet. The County is in the process of conducting follow-up with these organizations to remind them of their responsibilities under 200.332 and to obtain and review the required audits. The County will conduct subrecipient monitoring of ARPA subrecipients each year throughout the remainder of the program. Additionally, the Controllers department will provide Subrecipient Monitoring training and information in 2026 to County departments who administer subrecipient funding in order to assist them in fully complying with this requirement Name(s) of contact person(s) responsible for corrective action: Fonta Reilly and Eli Gilman Planned completion date for corrective action plan: Corrective action implemented in November 2025

View Audit 374654

Finding 1164807 (2024-006)

Material Weakness 2024

East Central Vermont Telecommunications District

VT

Allowable Costs / Cost Principles

Finding Reference Number: 2024-006 Description of Finding: Vendor Records Statement of Concurrence or Nonconcurrence: The District agrees with this finding. Corrective Action: The accounting software used for the District’s financial records failed to flag a duplicate invoice (#310725) in this insta...

Finding Reference Number: 2024-006 Description of Finding: Vendor Records Statement of Concurrence or Nonconcurrence: The District agrees with this finding. Corrective Action: The accounting software used for the District’s financial records failed to flag a duplicate invoice (#310725) in this instance. The District will remove these costs on a subsequent submission for reimbursement. Name of Contact Person: F. X. Flinn, Board Chair, Telephone:(802)- 369-0069, Email: chair@ecvtd.gov Projected Completion Date: Next Request for Reimbursement

View Audit 374610

Finding 1164806 (2024-005)

Material Weakness 2024

East Central Vermont Telecommunications District

VT

Allowable Costs / Cost Principles

Finding Reference Number: 2024-005 Description of Finding: Vendor Records Statement of Concurrence or Nonconcurrence: The District agrees with this finding. Corrective Action: The District will instruct the operator to indicate on the invoice amounts held back for retainage to be paid at a later dat...

Finding Reference Number: 2024-005 Description of Finding: Vendor Records Statement of Concurrence or Nonconcurrence: The District agrees with this finding. Corrective Action: The District will instruct the operator to indicate on the invoice amounts held back for retainage to be paid at a later date when the work invoiced can be verified as complete. And will also adjust the requisitions to reflect only amounts actually paid. Name of Contact Person: F. X. Flinn, Board Chair, Telephone:(802)- 369-0069, Email: chair@ecvtd.gov Projected Completion Date: October 2025

View Audit 374610

Finding 1164799 (2024-008)

Material Weakness 2024

Mayes County

OK

Procurement, Suspension & Debarment Allowable Costs / Cost Principles § 200.303

The Board of County Commissioners will work with all County Officials to go over all grants and federal monies that the County receives to ensure that proper internal controls are implemented.

View Audit 374603

Finding 1164798 (2024-007)

Material Weakness 2024

Mayes County

OK

Procurement, Suspension & Debarment Internal Control / Segregation of Duties Subrecipient Monitoring

We will work to implement a Risk Assessment plan. We will implement controls to help make sure we are in compliance with all grant requirements and federal funds are expended in accordance with grant agreements and in a timely manner. We will ensure employees have the current and correct compliance ...

We will work to implement a Risk Assessment plan. We will implement controls to help make sure we are in compliance with all grant requirements and federal funds are expended in accordance with grant agreements and in a timely manner. We will ensure employees have the current and correct compliance supplement to work from.

View Audit 374603

Finding 1164797 (2024-018)

Material Weakness 2024

Mayes County

OK

Procurement, Suspension & Debarment Allowable Costs / Cost Principles Special Tests & Provisions § 200.303

The Board of County Commissioners will work with all County Officials to go over all grants and federal monies that the County receives to ensure that proper internal controls are implemented.

View Audit 374603

Finding 1164796 (2024-017)

Material Weakness 2024

Mayes County

OK

Procurement, Suspension & Debarment Internal Control / Segregation of Duties Subrecipient Monitoring

We will work to implement a risk assessment plan. We will implement controls to help make sure we are in compliance with all grant requirements and federal funds are expended in accordance with grant agreements and in a timely manner. We will ensure employees have the current and correct compliance ...

We will work to implement a risk assessment plan. We will implement controls to help make sure we are in compliance with all grant requirements and federal funds are expended in accordance with grant agreements and in a timely manner. We will ensure employees have the current and correct compliance supplement to work from.

View Audit 374603

Finding 1164788 (2024-041)

Material Weakness 2024

City of Batesville, Mississippi

MS

Allowable Costs / Cost Principles § 200.403 § 200.405

Finding Number: 2024-041 Audit Type: Single Audit Finding Title: Unsupported FEMA Reimbursements Related Finding: 2024-031 (Yellow Book) 1. Contact Person Responsible for Corrective Action Name: Shannah Weaver Title: City Clerk Department: Finance Department 2. Planned Corrective Action The City wil...

Finding Number: 2024-041 Audit Type: Single Audit Finding Title: Unsupported FEMA Reimbursements Related Finding: 2024-031 (Yellow Book) 1. Contact Person Responsible for Corrective Action Name: Shannah Weaver Title: City Clerk Department: Finance Department 2. Planned Corrective Action The City will implement a documentation checklist and assign a grants compliance officer to ensure all FEMA reimbursement requests are fully supported. 3. Anticipated Completion Date September 30, 2026 4. Management's Response Management concurs and will ensure all FEMA-related expenditures are properly documented and retained. 5. Status of Prior Year Finding This is a new finding.

View Audit 374592

Finding 1164787 (2024-038)

Material Weakness 2024

City of Batesville, Mississippi

MS

Allowable Costs / Cost Principles § 200.430

Finding Number: 2024-038 Audit Type: Single Audit Finding Title: Inadequate Documentation of HIDTA Personnel Costs Related Finding: 2024-026 (Yellow Book) 1. Contact Person Responsible for Corrective Action Name: Shannah Weaver Title: City Clerk Department: Finance Department 2. Planned Corrective A...

Finding Number: 2024-038 Audit Type: Single Audit Finding Title: Inadequate Documentation of HIDTA Personnel Costs Related Finding: 2024-026 (Yellow Book) 1. Contact Person Responsible for Corrective Action Name: Shannah Weaver Title: City Clerk Department: Finance Department 2. Planned Corrective Action The City will implement timekeeping procedures and maintain documentation to support HIDTA personnel costs charged to the grant. 3. Anticipated Completion Date September 30, 2026 - plan in place 4. Management's Response Management concurs and will ensure compliance with federal documentation standards. 5. Status of Prior Year Finding This is a new finding.

View Audit 374592

Finding 1164786 (2024-042)

Material Weakness 2024

City of Batesville, Mississippi

MS

Allowable Costs / Cost Principles Cash Management § 200.303 § 200.403 § 200.405

Finding Number: 2024-042 Audit Type: Single Audit Finding Title: Misallocation of Expenditures Across Federal Awards Related Finding: 2024-028 (Yellow Book) 1. Contact Person Responsible for Corrective Action Name: Shannah Weaver Title: City Clerk Department: Finance Department 2. Planned Corrective...

Finding Number: 2024-042 Audit Type: Single Audit Finding Title: Misallocation of Expenditures Across Federal Awards Related Finding: 2024-028 (Yellow Book) 1. Contact Person Responsible for Corrective Action Name: Shannah Weaver Title: City Clerk Department: Finance Department 2. Planned Corrective Action The City will revise its grant accounting procedures to ensure expenditures are properly allocated to the correct federal awards. 3. Anticipated Completion Date September 30, 2026 4. Management's Response Management concurs and will implement additional review steps during the grant reimbursement process. 5. Status of Prior Year Finding This is a new finding.

View Audit 374592

Finding 1164777 (2024-043)

Material Weakness 2024

City of Batesville, Mississippi

MS

Allowable Costs / Cost Principles Matching / Level of Effort / Earmarking Internal Control / Segregation of Duties § 200.303 § 200.306 § 200.403 § 200.516

Finding Number: 2024-043 Audit Type: Single Audit Finding Title: Use of Unapproved Federal Funds to Satisfy Required Local Match Related Finding: 2024-022 (Yellow Book) 1. Contact Person Responsible for Corrective Action Name: Shannah Weaver Title: City Clerk Department: Finance Department2. 2. Plan...

Finding Number: 2024-043 Audit Type: Single Audit Finding Title: Use of Unapproved Federal Funds to Satisfy Required Local Match Related Finding: 2024-022 (Yellow Book) 1. Contact Person Responsible for Corrective Action Name: Shannah Weaver Title: City Clerk Department: Finance Department2. 2. Planned Corrective Action The City will revise its grant accounting procedures to ensure only eligible local funds are used for matching requirements. 3. Anticipated Completion Date September 30, 2026 4. Management's Response Management concurs and will coordinate with granting agencies to confirm match eligibility. 5. Status of Prior Year Finding This is a new finding.

View Audit 374592

Finding 1164611 (2024-001)

Material Weakness 2024

Town of Cohasset

MA

Allowable Costs / Cost Principles Reporting Significant Deficiency

Planned Corrective Action: All future ARPA reporting will be derived from trial balances generated from the accounting department staff. The trial balances will then be reviewed and entered into the reporting portal by the Town Manager by the reporting due date. Any variances or adjustments that are...

Planned Corrective Action: All future ARPA reporting will be derived from trial balances generated from the accounting department staff. The trial balances will then be reviewed and entered into the reporting portal by the Town Manager by the reporting due date. Any variances or adjustments that are necessary from the trial balance will be clearly documented for reconciliation and confirmed by the Town Accountant as accurate. Upon confirmation, the Town Manager will submit the portal. Planned Implementation Date of Corrective Action: March 2026 P&E Report (due by April 30, 2026) Person Responsible for Corrective Action: Town Accountant Town Manager

View Audit 374218

Finding 1164604 (2024-006)

Material Weakness 2024

Central Minnesota Jobs and Training Services

MN

Questioned Costs Allowable Costs / Cost Principles Eligibility

Inadequate Approval Controls Over Adjusting Journal Entries and Invoices Recommendation: We recommend following documented controls to enforce approval for adjusting journal entries. We also recommend ensuring invoice processing workflows include mandatory approvals before payment. We further recomm...

Inadequate Approval Controls Over Adjusting Journal Entries and Invoices Recommendation: We recommend following documented controls to enforce approval for adjusting journal entries. We also recommend ensuring invoice processing workflows include mandatory approvals before payment. We further recommend conducting periodic audits to verify compliance with approval policies. Action Taken: CMJTS migrated to a new accounting software in February of 2025. This software has systematic approval workflows built in to ensure approvals are done on journal entries before they are posted and invoices before they can be paid.

View Audit 374211 Questioned Costs: $1

Finding 1164602 (2024-004)

Material Weakness 2024

Central Minnesota Jobs and Training Services

MN

Questioned Costs Allowable Costs / Cost Principles Reporting

Documentation of Allocations for Salaries and Wage Costs Recommendation: The Organization should establish and implement a comprehensive documentation retention policy that includes clear procedures for maintaining records supporting the allocation of employee time. This policy should ensure that al...

Documentation of Allocations for Salaries and Wage Costs Recommendation: The Organization should establish and implement a comprehensive documentation retention policy that includes clear procedures for maintaining records supporting the allocation of employee time. This policy should ensure that all relevant documentation—such as timesheets and work allocation records—is retained for the required period and readily accessible for audit purposes. Additionally, staff involved in timekeeping and financial reporting should receive training on documentation requirements under the Uniform Guidance. Action Taken: CMJTS has since worked with DEED to update our cost allocation policy, and DEED approved our new policy. In this policy, the CMJTS fiscal team will work with CMJTS program managers to update allocations for the upcoming month. Changes to allocations will be documents and saved for record retention.

View Audit 374211 Questioned Costs: $1

Finding 1164601 (2024-003)

Material Weakness 2024

Central Minnesota Jobs and Training Services

MN

Questioned Costs Allowable Costs / Cost Principles

Documentation of Allocations for Costs Recommendation: The Organization should adopt a comprehensive documentation retention policy that includes specific procedures for maintaining records related to cost allocations. This policy should ensure that all relevant documentation is retained for the req...

Documentation of Allocations for Costs Recommendation: The Organization should adopt a comprehensive documentation retention policy that includes specific procedures for maintaining records related to cost allocations. This policy should ensure that all relevant documentation is retained for the required period and is readily accessible for audit purposes. Additionally, the Organization should enforce a formal review process to verify the accuracy and compliance of cost allocations. Staff responsible for financial record-keeping and compliance should receive training on documentation standards, review procedures, and the requirements of the Uniform Guidance. Action Taken: CMJTS has since worked with DEED to update our cost allocation policy, and DEED approved our new policy. In this policy, the CMJTS fiscal team will work with CMJTS program managers to update allocations for the upcoming month. Changes to allocations will be documents and saved for record retention.

View Audit 374211 Questioned Costs: $1

Corrective Action Plans

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