Corrective Action Plans

Finding 1155821 (2025-001)

Material Weakness 2025

ID

Reporting Matching / Level of Effort / Earmarking Procurement, Suspension & Debarment § 200.512

Finding 2025-001 Federal assistance listing number and name: 10.415 Rural Rent Housing Loans Awards numbers and years: 2025 Federal agency: United States Department of Agriculture Compliance Requirement: Activities allowed or unallowed, allowable costs/ cash management, eligibility, equipment, perio...

Finding 2025-001 Federal assistance listing number and name: 10.415 Rural Rent Housing Loans Awards numbers and years: 2025 Federal agency: United States Department of Agriculture Compliance Requirement: Activities allowed or unallowed, allowable costs/ cash management, eligibility, equipment, period of performance, procurement, program income, reporting, special tests Questioned Costs: None Name of contact person and title: Pat Bishop, President Condition and Context: The auditee did not submit the required audit reports to the Federal Audit Clearinghouse (FAC) and Rural Development (RD) in a timely manner. Specifically:  The 2023 Audit Report was not submitted to the FAC as required under 2 CFR Part 200, Subpart F.  The 2024 Audit Report was submitted past the regulatory deadline to both the FAC and RD. Management Response: Management plans to develop and implement an internal audit compliance calendar with clearly defined submission deadlines for all audit-related deliverables, including due dates for the FAC and RD and Create an internal checklist and sign-off process to confirm that each audit deliverable has been submitted to all required agencies and portals. Status: In progress Anticipated Completion Date: Estimated 2025

View Audit 368214

Finding 1153768 (2025-003)

Material Weakness 2025

Housing Authority of the City of Meadville

PA

HUD Housing Programs Allowable Costs / Cost Principles Cash Management

HACM Management will sign all Capital Fund vouchers going forward.

View Audit 366863

Finding 1153164 (2025-003)

Material Weakness 2025

Outpatient Medical Center, Inc.

LA

Questioned Costs Allowable Costs / Cost Principles § 200.403

2025-003 Period of Performance (repeat of finding 2024-005) Corrective action planned: Beginning April 1, 2025, when the organization was made aware of this finding in last year’s audit, OMC took immediate corrective actions. The CFO/Designee will monitor expenses, and a separate prepaid schedule ha...

2025-003 Period of Performance (repeat of finding 2024-005) Corrective action planned: Beginning April 1, 2025, when the organization was made aware of this finding in last year’s audit, OMC took immediate corrective actions. The CFO/Designee will monitor expenses, and a separate prepaid schedule has been developed to track future period expenses. OMC’s current CFO/Designee has a basic understanding of GAAP. All coding will be reviewed and approved by an authorized, knowledgeable CFO/Designee. Anticipated completion date: Corrective Action taken on April 1, 2025. Contact person responsible for corrective action: Allen Boyd, Director of Fiscal Operations

View Audit 366393 Questioned Costs: $1

Finding 1153162 (2025-002)

Material Weakness 2025

Outpatient Medical Center, Inc.

LA

Questioned Costs Allowable Costs / Cost Principles

2025-002 Allowable Costs/Cost Principles (repeat of finding 2024-004) Corrective action planned: Beginning April 1, 2025, when the organization was made aware of this finding in last year’s audit, OMC took immediate corrective actions. The CFO/Designee will continue to monitor to assure compliance w...

2025-002 Allowable Costs/Cost Principles (repeat of finding 2024-004) Corrective action planned: Beginning April 1, 2025, when the organization was made aware of this finding in last year’s audit, OMC took immediate corrective actions. The CFO/Designee will continue to monitor to assure compliance with documentation for all federal expenditures, whether payroll or procurement transactions. All supporting documentation is currently being retained electronically and linked to the corresponding transaction in the financial system. Anticipated completion date: Corrective Action taken on April 1, 2025. Contact person responsible for corrective action: Allen Boyd, Director of Fiscal Operations

View Audit 366393 Questioned Costs: $1

Finding 576088 (2025-003)

Significant Deficiency 2025

Shelby Township

MI

Allowable Costs / Cost Principles Subrecipient Monitoring Cash Management

Finding 2025-003: Account Reconciliation Procedures Type of Finding: Control U.S Department of Housing and Urban Development Direct program Assistance Listing Number: 14.251 Award Numbers: B-24-CP-MI-1149 Award Year End: August 31, 2032 Recommendation: The Township should establish proced...

Finding 2025-003: Account Reconciliation Procedures Type of Finding: Control U.S Department of Housing and Urban Development Direct program Assistance Listing Number: 14.251 Award Numbers: B-24-CP-MI-1149 Award Year End: August 31, 2032 Recommendation: The Township should establish procedures to verify that expenditures are properly tracked by individual grant to ensure that individual disbursements are not allocated to more than one grant. Action Taken: The Township will create a spreadsheet to track expenditures by individual grants that will be updated as individual disbursements and receipts occur. Responsible Person and Anticipated Completion Date: Township Treasurer, March 31, 2026. If the Michigan Strategic Fund has questions regarding this plan, please call Rebecca Griffin at 231-861-5853.

View Audit 365991

Finding 575602 (2025-004)

Significant Deficiency 2025

Village of Shelby

MI

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

Finding 2025-004: Coronavirus State and Local Fiscal Recovery Funds Reporting Procedures Type of Finding: Control U.S. Department of Treasury Pass-through Entities: The Right Place, Inc. and Michigan Department of Treasury. Assistance Listing Number: 21.027 Award Numbers: COVID-19 Revitaliza...

Finding 2025-004: Coronavirus State and Local Fiscal Recovery Funds Reporting Procedures Type of Finding: Control U.S. Department of Treasury Pass-through Entities: The Right Place, Inc. and Michigan Department of Treasury. Assistance Listing Number: 21.027 Award Numbers: COVID-19 Revitalization and Placemaking Grant, COVID-19 American Rescue Plan Act Award Year End: June 30, 2026 and December 31, 2026 Specific Requirement: (L.) Reporting Recommendation: The Village should follow established procedures to require the documented review and approval of both RAP and ARPA grant reports by an individual with adequate skills, knowledge, and experience prior to submission. Action Taken: The Village is implementing a new procedure requiring that ARPA grant reports be reviewed and approved by a designated reviewer before submission in addition to RAP grant reports. The reviewer, who must possess the appropriate skills, knowledge, and experience relevant to the report's content, will ensure that the information is accurate, complete, and compliant with organizational standards and regulatory requirements. Responsible Person and Anticipated Completion Date: The Village Clerk/Treasurer will oversee the implementation of this plan by February 28, 2026. If the Michigan Strategic Fund has questions regarding this plan, please call Phillip Morse at 231-861-4401.

View Audit 365594

Finding 574697 (2025-005)

None 2025

Village of Marion

MI

Procurement, Suspension & Debarment Allowable Costs / Cost Principles

This finding is due to the Village not having formal written policies in place required by Uniform Guidance. The Village is now aware that these policies are required and will adopt all necessary policies. The Village does not believe that there were any actual nonallowable costs or transactions bec...

This finding is due to the Village not having formal written policies in place required by Uniform Guidance. The Village is now aware that these policies are required and will adopt all necessary policies. The Village does not believe that there were any actual nonallowable costs or transactions because of the lack of written policies as required by Uniform Guidance. The Village will adopt all necessary policies to be in compliance. The person responsible for the corrective action is the Village President. The anticipated completion date of the corrective action plan is before the end of the 2026 fiscal year. The plan for adherence is the Council will review all proposed policies and adopt them, the Council will also monitor any changes to policy requirements to ensure that they are in compliance in the future.

View Audit 364976

Finding 1225296 (2024-002)

Material Weakness 2024

The International Center for Journalists, Inc.

DC

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

Views of Responsible Officials: Management acknowledges the three instances noted where timesheet allocations did not agree to the general ledger postings. The errors have been reviewed and corrected. ICFJ will implement a secondary review procedure whereby payroll postings are compared against appr...

Views of Responsible Officials: Management acknowledges the three instances noted where timesheet allocations did not agree to the general ledger postings. The errors have been reviewed and corrected. ICFJ will implement a secondary review procedure whereby payroll postings are compared against approved timesheets prior to finalization each pay period. Any discrepancies will be resolved before entries are posted to the general ledger.  Anticipated completion date: 9/30/26  Responsible position: Chief Financial Officer

View Audit 408324

Finding 1225260 (2024-005)

Material Weakness 2024

Compañia de Turismo de Puerto Rico

PR

Procurement, Suspension & Debarment Allowable Costs / Cost Principles Eligibility

Responsibility for Suspension and Debarment compliance has been formally assigned to the Legal Affairs Division. The Legal Affairs Division is responsible for performing and documenting reviews of contractor eligibility, including verification through SAM and other applicable federal sources, prior ...

Responsibility for Suspension and Debarment compliance has been formally assigned to the Legal Affairs Division. The Legal Affairs Division is responsible for performing and documenting reviews of contractor eligibility, including verification through SAM and other applicable federal sources, prior to contract execution and when otherwise required by federal regulations.

View Audit 408295

Finding 1225255 (2024-005)

Material Weakness 2024

Town of Lakeview

OR

Internal Control / Segregation of Duties Allowable Costs / Cost Principles Cash Management § 200.403

Finding 2024-005 – Duplicate Reimbursement Request for Federal Award Expenditures (Material Weakness) Criteria: CFR §200.403 and related provisions, costs charged to federal awards must be accurate, allowable, and not charged or reimbursed more than once. Additionally, reimbursement requests must be...

Finding 2024-005 – Duplicate Reimbursement Request for Federal Award Expenditures (Material Weakness) Criteria: CFR §200.403 and related provisions, costs charged to federal awards must be accurate, allowable, and not charged or reimbursed more than once. Additionally, reimbursement requests must be supported by complete and accurate records to ensure compliance with federal requirements and prevent improper payments. Condition: During our testing of expenditures and reimbursement requests for the above-referenced federal program, we identified that certain expenditures were submitted for reimbursement twice across twoseparate fiscal years. While the underlying expenditures were incurred only once, and not paid twice by the entity, they were included in reimbursement requests in two different periods, resulting in The Town receiving duplicate reimbursements for the same costs Cause: The duplication likely occurred due to changes in financial staffing for The Town. Specifically: • Turnover in personnel resulted in a loss of institutional knowledge regarding prior reimbursement and submissions. • Inadequate review controls allowed previously reimbursed expenditures to be re-submitted in a subsequent period. • Initial reimbursement requests appear to have used an alternate methodology for reimbursement requests. Context: The Town administers multiple federal awards and is responsible for preparing and submitting reimbursement requests based on incurred allowable expenditures. During the audit period, The Town experienced staff turnover and changes in key financial and grant management roles. These changes affected the continuity of oversight and the tracking of cumulative expenditures and prior reimbursement requests. As a result, controls over the review and reconciliation of reimbursement submissions were not consistently applied, contributing to the resubmission of previously reimbursed expenditures in a subsequent year. Recommendation: We recommend that the entity: • Reconcile all reimbursement requests to the underlying expenditures and prior submissions to identify and quantify any additional duplication. • Re-pay any overpayments to the federal awarding agency in a timely manner. • Strengthen internal controls by: o Implementing a centralized tracking system for all reimbursement requests and cumulative expenditures. o Establishing a formal review and approval process to verify that costs have not been previously reimbursed. o Clearly document roles and responsibilities, especially during staffing transitions. • Provide training to staff involved in grant management to ensure compliance with federal requirements. Corrective Action Plan: The Town of Lakeview has taken significant organizational and procedural steps to strengthen its administration of federal awards and ensure future compliance with Uniform Guidance reporting requirements. Corrective actions implemented include: • The Town has hired a Finance Director with substantial experience in state and federal grant administration and financial reporting. The Finance Director is responsible for oversight of all federal financial reporting, including review of expenditures and preparation of disbursement requests. • The Town has hired a new Town Manager who has established improved financial oversight and accountability throughout the organization. The Town Manager will work closely with the Finance Director to monitor compliance with federal grant requirements and review expenditures and disbursement requests. • The Town Council has established a Citizen Finance Advisory Committee to provide independent oversight and review of the Town’s financial management practices. The committee will review financial reports, budget performance, and federal grant administration processes, providing recommendations to improve accountability and transparency. • The Town has developed and implemented formal policies and procedures governing the administration of federal awards including: o Identification and tracking of awards o Documentation of expenditures charged to federal programso Procedures for maintaining grant files o Reconciliation of grant expenditures to the general ledger o Annual preparation and supervisory review of the Schedule of Expenditures of Federal Awards • The Finance Director will prepare disbursement requests, and they will be reviewed and signed by Council members prior to submittal. A ll disbursement requests and associated expenditures will be maintained in an electronic file system. Hard copies of disbursement requests and expenditure documentation will also be maintained in a standardized fi le system. Planned Implementation Date: The corrective actions described above have been implemented. The Town will continue to monitor compliance throughout the fiscal year, and the revised procedures will be fully incorporated into the preparation of the next annual SEFA. Responsible Person: Town of Lakeview Mayor.

View Audit 408289

Finding 1224929 (2024-003)

Material Weakness 2024

Advent House Ministries, Inc.

MI

Allowable Costs / Cost Principles Material Weakness Reporting

July 23, 2026 Advent House Ministries, Inc. respectfully submits the following corrective action plan for the year ended December 31, 2024. Auditor: Maner Costerisan 2425 E. Grand River Avenue, Suite 1 Lansing, MI 48912 Audit Period: The finding from the December 31, 2024 schedule of findings and qu...

July 23, 2026 Advent House Ministries, Inc. respectfully submits the following corrective action plan for the year ended December 31, 2024. Auditor: Maner Costerisan 2425 E. Grand River Avenue, Suite 1 Lansing, MI 48912 Audit Period: The finding from the December 31, 2024 schedule of findings and questioned costs is discussed below. The finding is numbered consistently with the number assigned in the schedule. Findings - Financial Statement Audit Finding 2024-001 - Material Weakness Recommendation: Advent House Ministries, Inc. should consider obtaining the necessary skills, knowledge, or experience to prepare and/or review the footnotes related to the financial statements of the Organization. Action Taken: We concur with the recommendation, the Organization is working to contract with an accountant in 2025 with the skills, knowledge, and experience to address the above recommendation. Finding 2024-002 - Material Weakness Recommendation: Advent House Ministries, Inc. should record all audit adjusting entries and reconcile their final trial balance to the audited financial statements. We also recommend that grant agreements and payments be carefully reviewed to ensure proper classification of any conditional funding. Action Taken: We concur with the recommendation. The Organization will record all audit adjusting entries, reconcile account balances to the audited financial statements, and ensure any conditional grant payments are properly recorded. Finding - Federal audit Finding 2024-003 - Material Weakness Recommendation: Advent House Ministries, Inc. currently has procedures and controls in place to effectively monitor the status of the submission of the data collection form and the reporting package to ensure that the required information is submitted in a timely manner. The cause related to this finding was not due to failure in internal controls, therefore, we have no further recommendation for the Organization at this time. Action to be Taken: The Organization concurs with the facts of this finding and has procedures in place to ensure the timely submission of the data collection form and the reporting package. Sincerely yours, Susan Cancro, Executive Director

View Audit 408181

Finding 1224874 (2024-002)

Material Weakness 2024

Albuquerque Area Indian Health Board, Inc.

NM

Allowable Costs / Cost Principles § 200.318 § 200.324 § 200.403 § 200.421

View of Responsible Officials and Corrective Action Plan We acknowledge the finding regarding the use of gift cards and bonus payments to contractors. During the Covid-19 pandemic, our staff and contractors were tasked with responding to urgent and overwhelming public health demands, particularly as...

View of Responsible Officials and Corrective Action Plan We acknowledge the finding regarding the use of gift cards and bonus payments to contractors. During the Covid-19 pandemic, our staff and contractors were tasked with responding to urgent and overwhelming public health demands, particularly as the New Mexico Department of Health became overextended. To recognize the efforts and to ensure timely case reporting and investigations for tribal communities, gift cards and bonuses were used as a form of appreciation. Corrective Action Plan Moving forward, we will ensure full compliance with federal grant requirements. Specifically: 1. We will adhere strictly to the cost principles and allowability guidance outlined in federal regulations and the terms of each Notice of Award. 2. In instances where the allowability of an expense is unclear, we will proactively seek guidance and written approval from our Federal Grant Management Officer before incurring the cost. 3. We will provide refresher training to program and fiscal staff on allowable costs under federal awards to prevent recurrence of similar findings. These corrective actions will ensure future expenditures are fully compliant with federal guidelines. Corrective Action Plan Timeline As part of being a continued finding, AAIHB has already ceased the use of gift cards. Going forward we will also discontinue the use of bonuses for contractors. Within the next quarter, Finance and Program Leadership will review current grant guidance, the applicable Notice of Award, and other relevant federal requirements to ensure compliance. To prevent this issue for recurring, whenever there is uncertainty regarding the allowability of a cost, staff will consult Grants Management Officers prior to obligating or expending funds. Designation of Employee Position Responsible for Meeting Deadline Program Managers/Directors, Finance Officer, and Accounting Manager.

View Audit 408092

Finding 1224776 (2024-009)

Material Weakness 2024

Scott County School District 2

IN

Matching / Level of Effort / Earmarking Subrecipient Monitoring Allowable Costs / Cost Principles § 200.302 § 200.303 § 200.328 § 200.329 § 200.334

FINDING 2024-009 Finding Subject: ESSER Grant Contact Person Responsible for Corrective Action: Superintendent and Treasurer Contact Phone Number and Email Address: Kyle Neukam; 812-752-8921; kneukam@scsd2.k12.in.us Casey Cheatham; 812-752-8949; ccheatham@scsd2.k12.in.us Views of Responsible Officia...

FINDING 2024-009 Finding Subject: ESSER Grant Contact Person Responsible for Corrective Action: Superintendent and Treasurer Contact Phone Number and Email Address: Kyle Neukam; 812-752-8921; kneukam@scsd2.k12.in.us Casey Cheatham; 812-752-8949; ccheatham@scsd2.k12.in.us Views of Responsible Officials: We concur with the finding. Description of Corrective Action Plan: The ESSER program has concluded and corrections were made following leadership changes. Financial activity was reviewed and adjusted where possible. Reimbursement requests are now tied to general ledger activity with full documentation. The prior practice of correcting errors through transfers has been discontinued. Controls implemented apply to all future grants and monitoring is ongoing. Anticipated Completion Date: May 2026

View Audit 407972

Finding 1224773 (2024-008)

Material Weakness 2024

Scott County School District 2

IN

Matching / Level of Effort / Earmarking Subrecipient Monitoring Allowable Costs / Cost Principles § 200.302 § 200.303 § 200.328 § 200.329 § 200.334

FINDING 2024-008 Finding Subject: Special Education Cluster (IDEA) Contact Person Responsible for Corrective Action: Superintendent and Treasurer Contact Phone Number and Email Address: Kyle Neukam; 812-752-8921; kneukam@scsd2.k12.in.us Casey Cheatham; 812-752-8949; ccheatham@scsd2.k12.in.us Views o...

FINDING 2024-008 Finding Subject: Special Education Cluster (IDEA) Contact Person Responsible for Corrective Action: Superintendent and Treasurer Contact Phone Number and Email Address: Kyle Neukam; 812-752-8921; kneukam@scsd2.k12.in.us Casey Cheatham; 812-752-8949; ccheatham@scsd2.k12.in.us Views of Responsible Officials: We concur with the finding. Description of Corrective Action Plan: The School Corporation partnered with Mazi Education for oversight. Separate funds are maintained for each project year. Payroll mapping has been corrected and reimbursement requests are based on ledger activity with supporting documentation. Transfers are documented and restricted. Monitoring procedures ensure ongoing compliance. The School Corporation has implemented procedures designed to strengthen the control environment, improve risk assessment and information and communication processes, enhance control activities, and provide ongoing monitoring to ensure compliance with Special Education grant requirements and timely identification and correction of deficiencies. Anticipated Completion Date: August 2026

View Audit 407972

Finding 1224765 (2024-006)

Material Weakness 2024

Scott County School District 2

IN

Matching / Level of Effort / Earmarking Subrecipient Monitoring Allowable Costs / Cost Principles § 200.302 § 200.303 § 200.328 § 200.329 § 200.334

FINDING 2024-006 Finding Subject: Title I Grants Contact Person Responsible for Corrective Action: Superintendent and Treasurer Contact Phone Number and Email Address: Kyle Neukam; 812-752-8921; kneukam@scsd2.k12.in.us Casey Cheatham; 812-752-8949; ccheatham@scsd2.k12.in.us Views of Responsible Offi...

FINDING 2024-006 Finding Subject: Title I Grants Contact Person Responsible for Corrective Action: Superintendent and Treasurer Contact Phone Number and Email Address: Kyle Neukam; 812-752-8921; kneukam@scsd2.k12.in.us Casey Cheatham; 812-752-8949; ccheatham@scsd2.k12.in.us Views of Responsible Officials: We concur with the finding. Description of Corrective Action Plan: The School Corporation partnered with Mazi Education to provide oversight of grant compliance. Separate funds are maintained for each grant and project year. Payroll mapping has been corrected to ensure proper allocation. Reimbursement requests are based on general ledger activity and supported by documentation. Transfers are restricted and documented. The School Corporation has implemented procedures designed to strengthen the control environment, improve risk assessment and information and communication processes, enhance control activities, and provide ongoing monitoring to ensure compliance with federal grant requirements and timely identification and correction of deficiencies. Anticipated Completion Date: August 2026

View Audit 407972

Finding 1224757 (2024-004)

Material Weakness 2024

Scott County School District 2

IN

School Nutrition Programs Subrecipient Monitoring Matching / Level of Effort / Earmarking § 200.303

FINDING 2024-004 Finding Subject: Child Nutrition Cluster – Internal Controls Contact Person Responsible for Corrective Action: Superintendent and Food Service Director Contact Phone Number and Email Address: Kyle Neukam; 812-752-8921; kneukam@scsd2.k12.in.us Tammy Mosier; 812-752-8921; tmosier@scsd...

FINDING 2024-004 Finding Subject: Child Nutrition Cluster – Internal Controls Contact Person Responsible for Corrective Action: Superintendent and Food Service Director Contact Phone Number and Email Address: Kyle Neukam; 812-752-8921; kneukam@scsd2.k12.in.us Tammy Mosier; 812-752-8921; tmosier@scsd2.k12.in.us Views of Responsible Officials: We concur with the finding. Description of Corrective Action Plan: A new Food Service Director has been appointed and the District partnered with OPAA! Food Management to provide oversight and compliance support. Invoice review procedures ensure pricing accuracy and compliance with contracts. Risk assessment and monitoring procedures have been implemented to ensure ongoing compliance. Scott County School District 2 now participates in the Community Eligibility Provision (CEP) for its school nutrition programs. Under CEP, individual household applications for free and reduced-price meal eligibility are no longer collected or processed. As a result, the eligibility determination procedures that were the subject of finding are no longer applicable. Therefore, no further action is warranted regarding this compliance requirement. The School Corporation has implemented procedures designed to strengthen the control environment, improve risk assessment and information and communication processes, enhance control activities, and provide ongoing monitoring to ensure compliance with Child Nutrition Program requirements and timely identification and correction of deficiencies. Anticipated Completion Date: August 2026

View Audit 407972

Finding 1224750 (2024-002)

Material Weakness 2024

Eviciton Defense Collaborative, Inc.

CA

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

The Eviction Defense Collaborative has hired a new controller, Daniel Poore, and has replaced Scrubbed.net with a new professional services firm YPTC to implement this recommendation

View Audit 407958

Finding 1224707 (2024-011)

Material Weakness 2024

Defensewerx

FL

Allowable Costs / Cost Principles § 200.430

We agree with the recommendations offered, and as of the date of this report, have already established and implemented a written incentive compensation policy that contains all the elements required by the Uniform Guidance.

View Audit 407904

Finding 1224693 (2024-009)

Material Weakness 2024

Defensewerx

FL

Allowable Costs / Cost Principles § 200.403 § 200.430

As noted above, we are working with consultants and our government partners to determine and define the requirements for each relevant program. We understand the recommendations offered and will review, and possibly revise, our policies and procedures, including supervisory review of documentation t...

As noted above, we are working with consultants and our government partners to determine and define the requirements for each relevant program. We understand the recommendations offered and will review, and possibly revise, our policies and procedures, including supervisory review of documentation to support the allowability of costs charged to federal agreements. We will also review existing policies and procedures for preventing or detecting and correcting unallowable costs charged to federal agreements to ensure consistent application of those policies and procedures for all costs charged to federal agreements. The anticipated completion date is October 2026.

View Audit 407904

Finding 1224686 (2024-008)

Material Weakness 2024

Defensewerx

FL

Allowable Costs / Cost Principles § 200.403 § 200.412

As noted above, we are working with consultants and our government partners to understand the requirements for each relevant program. We understand the recommendations offered and are exploring a comprehensive indirect cost allocation policy that would align with applicable requirements. The anticip...

As noted above, we are working with consultants and our government partners to understand the requirements for each relevant program. We understand the recommendations offered and are exploring a comprehensive indirect cost allocation policy that would align with applicable requirements. The anticipated completion date is October 2026.

View Audit 407904

Finding 1224643 (2024-002)

Material Weakness 2024

United Voices for Newcomer Rights

NM

Allowable Costs / Cost Principles Significant Deficiency Internal Control / Segregation of Duties § 200.430

Recommendation We recommend that UVNR strengthen its payroll review and approval procedures by requiring that: - The final timesheet used to process payroll be reviewed and approved by the appropriate supervisor before payroll is submitted; - Approved timesheets be reconciled to the payroll register...

Recommendation We recommend that UVNR strengthen its payroll review and approval procedures by requiring that: - The final timesheet used to process payroll be reviewed and approved by the appropriate supervisor before payroll is submitted; - Approved timesheets be reconciled to the payroll register and retained with the payroll documentation; - Timesheet calculations and total hours be independently reviewed for math accuracy; - Version controls be implemented to clearly identify the final approved timesheet when corrected or revised timesheets are submitted; and - Payroll errors and discrepancies be documented and corrected promptly through a subsequent payroll. Management Response Corrective Action: The identified exceptions resulted from isolated administrative errors in the payroll review process and did not reflect intentional noncompliance. Specifically, one exception occurred because an updated Excel timesheet was used for payroll processing without obtaining the required supervisory approval or retaining documentation demonstrating approval of the final version. The second exception resulted from a clerical error in totaling hours on a timesheet. Management acknowledges that these errors indicate opportunities to strengthen payroll review, documentation, and reconciliation procedures. To address the finding, UVNR has implemented enhanced payroll controls designed to improve the accuracy, completeness, and documentation of payroll transactions charged to federal awards: • All payroll timesheets must receive documented supervisory approval before payroll is processed. Only the final approved version of the timesheet may be submitted for payroll processing. • Payroll staff will reconcile approved timesheets to the payroll register prior to payroll submission and retain the approved timesheets with the supporting payroll documentation. • An independent review of timesheet calculations and total hours will be performed before payroll is finalized to verify mathematical accuracy. • Version control procedures have been established to ensure that revised or corrected timesheets are clearly identified as the final approved version, with prior versions retained as appropriate for audit purposes. • Any payroll discrepancies identified after processing will be documented and corrected through the next available payroll cycle, with supporting documentation maintained for the adjustment. • In addition, management will provide refresher training to supervisors and payroll personnel regarding timesheet approval requirements, documentation retention, and payroll review procedures to promote consistent compliance with internal controls and federal grant requirements. Management expects these corrective actions to strengthen internal controls over payroll processing and prevent similar exceptions in the future. Due Date of Completion July 21, 2026 Responsible Party(ies) Co-Executive Directors

View Audit 407899

Finding 1224386 (2024-002)

Material Weakness 2024

BHARATIYA TEMPLE

PA

Procurement, Suspension & Debarment Allowable Costs / Cost Principles Reporting

Finding 2024-002: Internal Control over Compliance (Material Weakness) Name of Auditee’s Contact Person Responsible for Corrective Action: Nand Todi Corrective Action Planned: Management will enhance policies, procedures and controls to ensure appropriate reviews and approvals are in place and prope...

Finding 2024-002: Internal Control over Compliance (Material Weakness) Name of Auditee’s Contact Person Responsible for Corrective Action: Nand Todi Corrective Action Planned: Management will enhance policies, procedures and controls to ensure appropriate reviews and approvals are in place and properly documented. A member of the executive team will approve all invoices over $10,000 and treasurer will process the payment to the vendor. Management will also ensure formal documentation of executive team meetings related to approvals of expenses for vendors over $50,000, and a formal review to ensure the selected vendor is not debarred will be put into place. A member of the executive team will prepare the financial reports, which will be reviewed and approved by the treasurer prior to submission of future construction projects over $100,000. Anticipated completion date: Implemented July 2026

View Audit 407709

Finding 1224376 (2024-003)

Material Weakness 2024

Vermont Association for Mental Health and Addiction Recovery, INC

VT

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

Finding type: Significant deficiency. Federal award: 93.912, Rural Health Care Services Outreach. Passthrough organization: Not applicable. Condition: Lack of documentation and approval for certain purchases. Management concurrence: Management concurs with this finding. Corrective action plan: Manag...

Finding type: Significant deficiency. Federal award: 93.912, Rural Health Care Services Outreach. Passthrough organization: Not applicable. Condition: Lack of documentation and approval for certain purchases. Management concurrence: Management concurs with this finding. Corrective action plan: Management will ensure there is adequate documentation and approval for all purchases. Name of contact person: Daniel Franklin, Executive Director. Projected completion date: July 1, 2026.

View Audit 407683

Finding 1224375 (2024-002)

Material Weakness 2024

Vermont Association for Mental Health and Addiction Recovery, INC

VT

Procurement, Suspension & Debarment Allowable Costs / Cost Principles

Finding type: Significant deficiency. Federal award: 93.912, Rural Health Care Services Outreach. Passthrough organization: Not applicable. Condition: Incomplete procurement policies and procedures. Management concurrence: Management concurs with this finding. Corrective action plan: VAMHAR now has ...

Finding type: Significant deficiency. Federal award: 93.912, Rural Health Care Services Outreach. Passthrough organization: Not applicable. Condition: Incomplete procurement policies and procedures. Management concurrence: Management concurs with this finding. Corrective action plan: VAMHAR now has a procurement policy that aligns with the Uniform Guidance and it will be followed for future purchases under federal awards. Name of contact person: Daniel Franklin, Executive Director. Projected completion date: July 1, 2026.

View Audit 407683

Finding 1224340 (2024-010)

Material Weakness 2024

City of Flint

MI

Allowable Costs / Cost Principles Reporting

2024-010– Quarterly Project and Expense Reports Finding Type. Immaterial Noncompliance/Significant Deficiency in Internal Control over Compliance (Reporting). Program. Coronavirus State and Local Fiscal Recovery Funds (CLSFRF); U.S. Department of Treasury; Assistance Listing Number 21.027; Direct aw...

2024-010– Quarterly Project and Expense Reports Finding Type. Immaterial Noncompliance/Significant Deficiency in Internal Control over Compliance (Reporting). Program. Coronavirus State and Local Fiscal Recovery Funds (CLSFRF); U.S. Department of Treasury; Assistance Listing Number 21.027; Direct award only. Auditor Description of Condition and Effect: Although the City did prepare all of the quarterly reports required for fiscal year 2024, we noted that while the City had supporting reports from the accounting system for the amounts reported, there were several inconsistencies between the supporting reports and the report submitted. In addition, there were large variances between what was reported quarterly and what was posted to the general ledger and ultimately the schedule of expenditures of federal awards. Lastly, our testing of AP expenditures noted two items of cost, out of 40 tested, that did not appear to be related to approved projects noted in the quarterly reporting. The items were allowable costs for the CSLFRF grant, but the reports were not updated to reflect the inclusion. The City is exposed to an increased risk that future noncompliance could occur and not be prevented or detected by the City's internal controls. Auditor Recommendation: We recommend that the City implement necessary internal controls to ensure that all reporting of financial data is supported by the City's accounting records. Corrective Action: The City will implement the necessary internal controls to ensure the policy for compliance is followed and documented. Responsible Person: Chief Financial Officer Anticipated Completion Date: July 31, 2026

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