Corrective Action Plans

Finding 575396 (2024-001)

Material Weakness 2024

OH

Internal Control / Segregation of Duties Subrecipient Monitoring Allowable Costs / Cost Principles § 200.1 § 200.303

FINDING 2024-001 Finding Subject: COVID-19 - Coronavirus State and Local Fiscal Recovery Funds – Reporting Summary of Finding: The City submitted four P&E reports during the audit period; however, the controls in place were not effective to prevent, or detect and correct, errors. As a result, errors...

FINDING 2024-001 Finding Subject: COVID-19 - Coronavirus State and Local Fiscal Recovery Funds – Reporting Summary of Finding: The City submitted four P&E reports during the audit period; however, the controls in place were not effective to prevent, or detect and correct, errors. As a result, errors in reporting were identified. The current period and cumulative expenditures reported consisted of the amounts expended by the beneficiaries who were awarded funds from the City, rather than total amounts expended to the beneficiaries, resulting in current period expenditures and cumulative expenditures being incorrectly reported on all four reports as follows:  Quarterly Report: October 1, 2023 to December 31, 2023 Current period expenditures were overstated by $666,417. Cumulative expenditures were understated by $964,879.  Quarterly Report: January 1, 2024 to March 31, 2024 Current period expenditures were overstated by $860,312. Cumulative expenditures were understated by $104,567.  Quarterly Report: April 1, 2024 to June 30, 2024 Current period expenditures were overstated by $104,567. Contact Person Responsible for Corrective Action: Linda Moeller Contact Phone Number and Email Address: 812-948-5333 and lmoeller@cityofnewalbany.com Views of Responsible Officials and Explanation and Reasons for Disagreement:  We concur with the finding.  However, the issue and non-compliance deals with the interpretation of the federal rules regarding the appropriate amounts to report and when to report them by subrecipients of the monies.  The non-compliance is not related to policies or controls not being effective to prevent, detect or correct errors. In fact, the reporting system initially implemented by the City and put in the federal reports provided the actual expenditures for those periods by recipients of the grants.  However, the City does agree that after full examination and review of the federal rules the initial full amount of funds provided to the subrecipients should have been reported in full versus the actual expenditures during the periods. Description of Corrective Action Plan:  Current period and cumulative expenditures reported will consist of the amounts advanced to subrecipients. Anticipated Completion Date:  The City has already made this correction in its Quarterly Report July 1, 2024 to September 30, 2024.

View Audit 365446

Finding 575326 (2024-002)

Significant Deficiency 2024

Shiloh Home Inc.

CO

Allowable Costs / Cost Principles Internal Control / Segregation of Duties § 200.303 § 200.403

Corrective Action Plan: Shiloh will expand its recurring processes around the disbursement of funds under its federal awards to ensure there is documentation that the associated expenses are allowable. Shiloh will also revisit its relationship with Spark Community Foundation who are currently engag...

Corrective Action Plan: Shiloh will expand its recurring processes around the disbursement of funds under its federal awards to ensure there is documentation that the associated expenses are allowable. Shiloh will also revisit its relationship with Spark Community Foundation who are currently engaged to perform the review and approval determination, including for Shiloh specific charges.

View Audit 365374

Finding 575298 (2024-003)

Significant Deficiency 2024

Sangamon County, Illinois

IL

Questioned Costs Allowable Costs / Cost Principles Period of Performance § 200.303 § 200.308 § 200.309 § 200.403

County department personnel changes have been implemented, which address this deficiency. Additional training from the Auditor’s Office and state grantors has occurred for newer staff in certain departments with large amounts of federal and state awards.

View Audit 365342 Questioned Costs: $1

Finding 575292 (2024-005)

Significant Deficiency 2024

California Fire Safe Council, Inc.

CA

Questioned Costs Allowable Costs / Cost Principles § 200.403

Management agrees with the finding and is implementing the accompanying corrective action plan. Views of Responsible Officials: Jacy Hyde, Executive Director Joel Rusco, Chief Financial and Administrative Officer Jessica Martinez, Deputy Director Contact Person: Joel Rusco, Chief Financial and Adm...

Management agrees with the finding and is implementing the accompanying corrective action plan. Views of Responsible Officials: Jacy Hyde, Executive Director Joel Rusco, Chief Financial and Administrative Officer Jessica Martinez, Deputy Director Contact Person: Joel Rusco, Chief Financial and Administrative Officer Jessica Martinez, Deputy Director Corrective Action Plan: To mitigate the risk of error in payroll allocation and ensure compliance with allowable cost provisions, CFSC will enhance its payroll review process with the following corrective actions: 1. Enhanced Payroll Verification Process: a. CFSC will implement an additional cross‐checking step in the payroll entry process by requiring finance staff to a run a “Program Summary by Projects Lists” report in the timekeeping system (i.e., Clicktime) before submitting for payroll. b. This report will allow finance staff to verify that total hours worked per project per employee align with the grant allocation and employee timesheets before payroll is processed. 2. Regular Internal Audits & Compliance Checks: a. Finance will conduct quarterly internal payroll audits to identify any discrepancies in time tracking and grant allocations. Anticipated Completion Date: These corrective actions have been fully implemented as of FY25.

View Audit 365313 Questioned Costs: $1

Finding 575291 (2024-004)

Material Weakness 2024

California Fire Safe Council, Inc.

CA

Procurement, Suspension & Debarment Allowable Costs / Cost Principles Subrecipient Monitoring § 200.403

Management agrees with the finding and is implementing the accompanying corrective action plan. Views of Responsible Officials: Jacy Hyde, Executive Director Joel Rusco, Chief Financial and Administrative Officer Jessica Martinez, Deputy Director Contact Person: Joel Rusco, Chief Financial and Adm...

Management agrees with the finding and is implementing the accompanying corrective action plan. Views of Responsible Officials: Jacy Hyde, Executive Director Joel Rusco, Chief Financial and Administrative Officer Jessica Martinez, Deputy Director Contact Person: Joel Rusco, Chief Financial and Administrative Officer Jessica Martinez, Deputy Director Corrective Action Plan: In response to the FY21 Corrective Action Plan, CFSC implemented a Subrecipient Monitoring Policy in June 2024 to ensure compliance with the Uniform Guidance for monitoring subrecipients of federal funding, including audit requirements and the verification of suspension and debarment status. To further strengthen compliance and ensure timely verification, CFSC will implement the following actions: 1. Mandatory Pre‐Award Verification Timing & Documentation: a. Suspension and debarment status must be verified on SAM.gov by the assigned Grant Specialist before the execution of any subaward agreements. b. The verification data and results will be documented by the assigned Grant Specialist and included in the Risk Assessment process prior to award issuance. c. Any subrecipients flagged as high risk due to past audit findings will undergo enhanced pre‐award due diligence before subaward execution to be carried out by the assigned Grant Specialist. 2. Grant Compliance Oversight & Approval: a. The Grants Manager (or designee) will review and approve all subrecipient compliance checks before final award execution. b. Any exceptions or delays in verification must be documented and approved by the CFAO & Deputy Director before proceeding. 3. Quarterly Compliance Audits: a. The Grants Manager (or designee) will conduct quarterly internal audits of subrecipient monitoring files to confirm that suspension & debarment verification was completed timely before subaward execution. b. The Grants Manager will be responsible for reporting any identified deficiencies to senior management and ensuring timely correction for policy reinforcement. Anticipated Completion Date: CFSC has implemented corrective actions regarding mandatory Pre‐award verification & documentation (action item 1) and grant compliance oversight & approval (item 2). CFSC has begun to implement the quarterly compliance audits (item 3) and will have this fully implemented by the end of FY25.

View Audit 365313

Finding 575289 (2024-002)

Material Weakness 2024

California Fire Safe Council, Inc.

CA

Procurement, Suspension & Debarment Allowable Costs / Cost Principles Subrecipient Monitoring § 200.403

Management agrees with the finding and is implementing the accompanying corrective action plan. Views of Responsible Officials: Jacy Hyde, Executive Director Joel Rusco, Chief Financial and Administrative Officer Jessica Martinez, Deputy Director Contact Person: Joel Rusco, Chief Financial and Adm...

Management agrees with the finding and is implementing the accompanying corrective action plan. Views of Responsible Officials: Jacy Hyde, Executive Director Joel Rusco, Chief Financial and Administrative Officer Jessica Martinez, Deputy Director Contact Person: Joel Rusco, Chief Financial and Administrative Officer Jessica Martinez, Deputy Director Corrective Action Plan: In response to the FY21 Corrective Action Plan, CFSC implemented a Subrecipient Monitoring Policy in June 2024 to ensure compliance with the Uniform Guidance for monitoring subrecipients of federal funding, including audit requirements and the verification of suspension and debarment status. To further strengthen compliance and ensure timely verification, CFSC will implement the following actions: 1. Mandatory Pre‐Award Verification Timing & Documentation: a. Suspension and debarment status must be verified on SAM.gov by the assigned Grant Specialist before the execution of any subaward agreements. b. The verification data and results will be documented by the assigned Grant Specialist and included in the Risk Assessment process prior to award issuance. c. Any subrecipients flagged as high risk due to past audit findings will undergo enhanced pre‐award due diligence before subaward execution to be carried out by the assigned Grant Specialist. 2. Grant Compliance Oversight & Approval: a. The Grants Manager (or designee) will review and approve all subrecipient compliance checks before final award execution. b. Any exceptions or delays in verification must be documented and approved by the CFAO & Deputy Director before proceeding. 3. Quarterly Compliance Audits: a. The Grants Manager (or designee) will conduct quarterly internal audits of subrecipient monitoring files to confirm that suspension & debarment verification was completed timely before subaward execution. b. The Grants Manager will be responsible for reporting any identified deficiencies to senior management and ensuring timely correction for policy reinforcement. Anticipated Completion Date: These corrective actions will be fully implemented by the end of FY25, with ongoing monitoring and enforcement thereafter.

View Audit 365313

Finding 575249 (2024-001)

Material Weakness 2024

City of Lowell

MA

Questioned Costs Allowable Costs / Cost Principles Material Weakness

Víews of Responsíble Official and Planned Correctíve Actíon Management agrees with the recommendation. The District recognizes the importance of maintaining accurate and timely documentation to ensure that salaries and wages charged to federal awards are allowable and supported in accordance with fe...

Víews of Responsíble Official and Planned Correctíve Actíon Management agrees with the recommendation. The District recognizes the importance of maintaining accurate and timely documentation to ensure that salaries and wages charged to federal awards are allowable and supported in accordance with federal cost principles. To address the deficiency, the following corrective actions will be taken: . Action: Reinforce the requiremént that all employees whose salaries are charged in whole or in part to federal grants must complete and sign time and effort certifications on at least a semi-annual basis, in accordance with 2 CFR 200.430. . Action: Develop a centralized tracking system to monitor the distribution, collection, and retention of time and effort certifications to ensure completeness and timeliness. . Action: provide training to program directors, supervisors, and staff on the requirements for time and effort reporting and the importance of compliance. . Action: Establish an intemal review process whereby the Grants Manager will conduct periodic spot-checks to confirm thaf certifications are being properly maintained and retained.

View Audit 365311 Questioned Costs: $1

Finding 575248 (2024-002)

None 2024

City of Thomasville, Georiga

GA

Questioned Costs Allowable Costs / Cost Principles § 200.403

Responsible Official’s Response and Corrective Action Planned: We have reached out to FEMA and was provided this summarized response: “The project was obligated as a small project. FEMA does not adjust the funding amount unless specific conditions are met. If the applicant was stating that the actua...

Responsible Official’s Response and Corrective Action Planned: We have reached out to FEMA and was provided this summarized response: “The project was obligated as a small project. FEMA does not adjust the funding amount unless specific conditions are met. If the applicant was stating that the actual cost for the small project was more than FEMA obligated, we would have to request what is called a New Small Project Overrun Appeal Request. But in this case, the actual cost resulted in an underrun based on the small project obligated amount. FEMA only asks for the applicants to apply the underrun amount back into the community." Management has also implemented a process to include financial oversight and review of all documents prior to submission to FEMA for reimbursement going forward. We will meet with all leadership staff to discuss documentation requirements necessary for FEMA reimbursements. Lastly, Management will only sign off on reimbursed costs after all changes to FEMA requests have been adequately documented.

View Audit 365308 Questioned Costs: $1

Finding 575205 (2024-005)

Material Weakness 2024

Alternatives, Inc.

IL

Questioned Costs Allowable Costs / Cost Principles § 200.430

Due to limited staffing resources, the Organization was not able to ensure maintenance of adequate documentation. The Organization has made efforts to ensure that proper documentation is maintained and accessible by necessary staff.

View Audit 365271 Questioned Costs: $1

Finding 575167 (2024-001)

Significant Deficiency 2024

Family Star, Inc.

CO

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

Family Star acknowledges the FY24 finding related to labor allocation. During that fiscal year, the organization experienced several operational challenges, including insufficient documentation and oversight of labor allocation reporting. These administrative issues were contributing factors in a br...

Family Star acknowledges the FY24 finding related to labor allocation. During that fiscal year, the organization experienced several operational challenges, including insufficient documentation and oversight of labor allocation reporting. These administrative issues were contributing factors in a broader leadership restructuring, which included the elimination of five middle management positions. As a result, responsibilities for labor allocation were reassigned to ensure proper oversight. Since that time, Family Star has already taken intentional steps to strengthen internal controls and improve the accuracy and consistency of key administrative functions. Labor time reporting is now aligned with organizational slot distribution across programs and funding sources to ensure compliance and transparency moving forward. To further reinforce accountability, we have implemented a new monthly monitoring procedure. On the first Wednesday of each month, the Senior Director of Community Partnerships and the HR Specialist jointly review and archive labor allocation records. This process ensures allocations are preserved, updates are made in a timely and compliant manner, and labor costs are supported by accurate documentation. These measures are designed to increase transparency, enhance internal controls, and ensure labor allocations are properly managed going forward.

View Audit 365264

Finding 575164 (2024-002)

Material Weakness 2024

City of Milano

TX

Allowable Costs / Cost Principles

The City is in the process of establishing written policies for federal awards.

View Audit 365261

Finding 575160 (2024-005)

Material Weakness 2024

Town of Elkton, Maryland

MD

Questioned Costs Subrecipient Monitoring Allowable Costs / Cost Principles § 200.303 § 200.400 § 200.403 § 200.404

COVID-19-Coronavirus State and Local Relief Funds (CSLRF)-Assistance Listing No. 21.027 Allowable Activities/Costs Recommendation: The Town should review and enhance controls and procedures where necessary. Explanation of disagreement with audit finding: There is no disagreement with the audit fi...

COVID-19-Coronavirus State and Local Relief Funds (CSLRF)-Assistance Listing No. 21.027 Allowable Activities/Costs Recommendation: The Town should review and enhance controls and procedures where necessary. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: The Town will continue to review and enhance controls where necessary to ensure that all State and Local Fiscal Recovery Funds (SLFRF) expenditures support an eligible COVID-19 public health or economic response. Name(s) of the contact person(s) responsible for corrective action: Tyler Home, Director of Finance Planned completion date for corrective action plan: 07/01/2024

View Audit 365251 Questioned Costs: $1

Finding 575114 (2024-107)

Significant Deficiency 2024

Pancare of Florida, INC

FL

Allowable Costs / Cost Principles § 200.303 § 200.430

2024-107 Review of Reimbursement Request Did Not Detect an Error in Amount Reported Condition: The September 2024 reimbursement request included wages paid in August 2024 instead of September 2024 in error. This is not a systemic problem but an isolated occurrence resulting in an immaterial differe...

2024-107 Review of Reimbursement Request Did Not Detect an Error in Amount Reported Condition: The September 2024 reimbursement request included wages paid in August 2024 instead of September 2024 in error. This is not a systemic problem but an isolated occurrence resulting in an immaterial difference in the amount reimbursed and the amount that should have been requested for September 2024 wages paid. Corrective Action Planned: We acknowledge the finding and have strengthened our review process for reimbursement requests to prevent similar errors. Finance staff verify payroll periods against reimbursement periods before submission, and supervisors perform an additional review. This process includes careful cross-checking against the appropriate pay periods. This was an isolated occurrence with immaterial impact, but corrective steps will ensure accuracy in future requests. Person Responsible for Corrective Action: Robert Thompson, Chief Executive Officer Anticipated Completion Date: Implemented

View Audit 365222

Finding 575080 (2024-106)

Material Weakness 2024

Pancare of Florida, INC

FL

Allowable Costs / Cost Principles § 200.303 § 200.430

2024-106 Lack of Time and Effort Documentation Policy Condition: Time and effort reporting on actual hours spent on individual grant projects used to support the budgeted allocations of employee salary for each grant are not being kept. This is a systemic issue as a procedure for documenting time a...

2024-106 Lack of Time and Effort Documentation Policy Condition: Time and effort reporting on actual hours spent on individual grant projects used to support the budgeted allocations of employee salary for each grant are not being kept. This is a systemic issue as a procedure for documenting time and effort by employee to justify the allocation of salaries across grants has not been put in place. Corrective Action Planned: We acknowledge the finding and have adopted a formal Time and Effort Reporting Policy. Standardized timesheets will be implemented and staff trained within 60 days, with supervisors reviewing submissions. The Finance Manager will monitor records monthly and conduct quarterly reviews to ensure compliance going forward. Person Responsible for Corrective Action: Robert Thompson, Chief Executive Officer Anticipated Completion Date: October 2025

View Audit 365222

Finding 575079 (2024-105)

Material Weakness 2024

Pancare of Florida, INC

FL

Subrecipient Monitoring Allowable Costs / Cost Principles HUD Housing Programs § 200.303

2024-105 Lack of Payroll Review and Approval Condition: No documentation of employee time approval by supervisors could be provided. The payroll clerk processes the payroll, and the finance director approves through the releasing of the payroll. However, there is no formal documentation of the ove...

2024-105 Lack of Payroll Review and Approval Condition: No documentation of employee time approval by supervisors could be provided. The payroll clerk processes the payroll, and the finance director approves through the releasing of the payroll. However, there is no formal documentation of the overall review of the payroll process and the supervisors’ approval of time recorded by employees. Corrective Action Planned: The Organization has implemented a new payroll process using the ADP system. Employees are now required to approve their own time within the ADP portal, and this approval is documented. Following this, supervisors review and approve their employee's time, which is also documented in the portal. Human Resources then prepares the payroll, reviewing all entries and initialing a shared file of payroll items and providing backup for changes. Once HR confirms accuracy, they notify Finance. Finance then reviews the payroll, with the Finance Manger providing the final approval within ADP once all items are confirmed. This entire process is fully documented, with approvals recorded within the ADP by employees and supervisors and the shared file drive where HR and Finance initial off on the reviewed payroll items, ensuring a traceable record of the entire payroll approval process Person Responsible for Corrective Action: Robert Thompson, Chief Executive Officer Anticipated Completion Date: Implemented

View Audit 365222

Finding 575067 (2024-003)

Significant Deficiency 2024

Catholic Community Services of Western Washington

WA

Allowable Costs / Cost Principles § 200.1 § 200.414

Type of Finding: Signiﬁcant deﬁciency in internal controls over the calculation of Modiﬁed Total Direct Costs puts CCS at risk of an overallocation indirect costs to federal programs. View of Responsible Officials: Management accepts this ﬁnding. Effective internal control over the calculation of...

Type of Finding: Signiﬁcant deﬁciency in internal controls over the calculation of Modiﬁed Total Direct Costs puts CCS at risk of an overallocation indirect costs to federal programs. View of Responsible Officials: Management accepts this ﬁnding. Effective internal control over the calculation of Modiﬁed Total Direct Costs ensures that costs are allocated correctly to programs. Training of staff and increased review over allocations would likely have prevented this error. Corrective Action: CCS will be setting up a new form to calculate the Modiﬁed Indirect Cost Rate that each division will be required to use for all contract billings that are using the de minimis indirect cost method. The indirect costs charged to each contract will be reviewed semi-annually for accuracy and consistency.

View Audit 365205

Finding 575041 (2024-002)

Significant Deficiency 2024

Catholic Community Services of Western Washington

WA

Allowable Costs / Cost Principles § 200.430

Type of Finding: Signiﬁcant deﬁciency in Internal Control over Compliance relating to inadequate allocation of wages to federal programs may result in noncompliance with grant regulations. Views of Responsible Officials: Management accepts this ﬁnding. Effective internal control over the allocati...

Type of Finding: Signiﬁcant deﬁciency in Internal Control over Compliance relating to inadequate allocation of wages to federal programs may result in noncompliance with grant regulations. Views of Responsible Officials: Management accepts this ﬁnding. Effective internal control over the allocation of wages to federal programs ensures we remain in compliance with allowable costs. In one region, two employees in ADP were not set up correctly to ensure the proper allocation of hours worked per the timesheets to the associated job cost centers. Training of staff along with additional supervision over allocations would likely have prevented this error. Corrective Action: The set up of all employees has been reviewed and now corrected. In addition, new employee set up will be reviewed by a designated staff member to ensure consistency. A new report has been developed that will be reviewed for each pay period to ensure all employees, allocating their time are set up properly.

View Audit 365205

Finding 574978 (2024-004)

Significant Deficiency 2024

Leadership, Education, and Athletics in Partnership

CT

Allowable Costs / Cost Principles

Planned Corrective Action: LEAP will hire a local CPA firm with expertise in nonprofit accounting inclusive of federal reporting requirements to support the updating of the finance manual to more fully include federal reporting requirements and applicable procedures. Planned Implementation Date of C...

Planned Corrective Action: LEAP will hire a local CPA firm with expertise in nonprofit accounting inclusive of federal reporting requirements to support the updating of the finance manual to more fully include federal reporting requirements and applicable procedures. Planned Implementation Date of Corrective Action: Implementation to begin September 1st, 2025, with completion by December 31 , 2025. Person Responsible for Corrective Action: Shadine Alveranga, Managing Director of Finance Henry Fernandez, Executive Director

View Audit 365189

Finding 574901 (2024-005)

Significant Deficiency 2024

Jackson County, Il

IL

Questioned Costs Reporting Allowable Costs / Cost Principles

The County agrees with this finding. The questioned costs are related to eligible payroll costs that were reported on the current year SEFA in error, rather than in the fiscal year in which they were incurred. The County recommends training for payroll and accounting staff related to proper recognit...

The County agrees with this finding. The questioned costs are related to eligible payroll costs that were reported on the current year SEFA in error, rather than in the fiscal year in which they were incurred. The County recommends training for payroll and accounting staff related to proper recognition of expenses on the SEFA and documentation standards of the COVID-19 Coronavirus State and Local Fiscal Recovery Funds program.

View Audit 365155 Questioned Costs: $1

Finding 574884 (2024-004)

Material Weakness 2024

Kinston Community Health Center, Inc.

AL

Allowable Costs / Cost Principles

In Finding 2024-004, it was reported that time and activity reports and/or I-9 forms were not maintained for certain employees. Although the Organization’s policies require that time records be maintained by employees, current operating procedures are not in place to ensure the time records are comp...

In Finding 2024-004, it was reported that time and activity reports and/or I-9 forms were not maintained for certain employees. Although the Organization’s policies require that time records be maintained by employees, current operating procedures are not in place to ensure the time records are completed. In response to Finding 2024-004, Management concurs. This was corrected after the audit for the fiscal year ended November 30, 2023, which was completed after the fiscal year ended November 30, 2024.

View Audit 365147

Finding 574882 (2024-001)

Significant Deficiency 2024

Communities in Schools of Georgia, Inc.

GA

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

Communities In Schools of Georgia acknowledges the audit recommendation regarding enhancing internal controls over payroll allocation by establishing a formalized process for accurate completion and review of employee timesheets and integrating the timesheet functionality within our payroll platform...

Communities In Schools of Georgia acknowledges the audit recommendation regarding enhancing internal controls over payroll allocation by establishing a formalized process for accurate completion and review of employee timesheets and integrating the timesheet functionality within our payroll platform with our accounting system to facilitate accurate and efficient allocation of payroll costs to grants. Under the leadership of our newly hired CFO, we are improving our internal controls over the allocation of payroll costs and reporting by implementing the following measures: Establishing a Formalized Process for Accurate Completion and Approval of Timesheets Reconciling Timesheet Data in the Payroll Platform to the Salary Costs Captured in the General Ledger Training and Capacity Building During fiscal year 2025, we took the following actions to improve internal controls over the allocation of payroll costs and reporting processes: Engaged Senior Finance Contractor Completed a Search for Permanent full-time CFO Initiated and Completed a Search for an Accounting Manager

View Audit 365140 Questioned Costs: $1

Finding 574865 (2024-002)

Significant Deficiency 2024

Enrichment Services Program, Inc.

GA

Questioned Costs Reporting Internal Control / Segregation of Duties § 200.302 § 200.328 § 200.329 § 200.510

August 15, 2025 To: Clausell & Associates, P.C. From: Tabirus Lockhart, Chief Financial Officer of Enrichment Services Programs, Inc. Below is the Agency’s corrective action plan as it relates to the findings for the fiscal year ending July 31, 2024, Single Audit Act audit. Comment #2024-001 INT...

August 15, 2025 To: Clausell & Associates, P.C. From: Tabirus Lockhart, Chief Financial Officer of Enrichment Services Programs, Inc. Below is the Agency’s corrective action plan as it relates to the findings for the fiscal year ending July 31, 2024, Single Audit Act audit. Comment #2024-001 INTERNAL CONTROLS OVER FINANCIAL STATEMENT PREPARATION, GRANT CLOSE-OUT, AND COMPLIANCE WITH RELATED PROVISIONS OF GRANTS AND CONTRACTS SHOULD BE IMPROVED GENERAL (Repeat) Views of Responsible Officials and Planned Corrective Actions: We concur with this finding - Management is in the process of assessing the organizational structure, capacity to provide adequate financial reporting. With Board review and approval of the Agency’s financial funding sources, the Agency will hire additional fiscal clerk to further support financial requirements and segregation of duties to ensure adequate internal controls are fully implemented. The CFO will have the overall responsibility of properly reconciling and closing out the accounting system and grant activity each month in an efficient and timely manner to eliminate the risk of significant errors occurring. Budget-to-actual schedules will be an integral part of the grant accountant analyst’s basic responsibilities. The fiscal policies and procedures will be updated with the enhancements implemented within the fiscal department. Staff will be trained on revised policies and procedures and Uniform Guidance regulations. The new automated financial systems, will support financial reporting to meet GAAP requirements and to provide informative reports for Board and Management. All enhancements will be implemented by December 31, 2024. Concerning preparation of external reports required by various funding sources (i.e., SF-425, DHS’s reports for LIHEAP, LIHWAP, etc.), the Agency will ensure adequate training is performed to improve the skills and knowledge of key personnel. Policies and procedures will also be revised to support external reporting. Implementation Date: The plan correction date will be completed no later than December 31, 2025. Responsible Person: Tabirus Lockhart, CFO, will be responsible for the corrective action. Comment #2024-002 INTERNAL CONTROLS OVER FINANCIAL STATEMENT PREPARATION, GRANT CLOSE-OUT, AND COMPLIANCE WITH RELATED PROVISIONS OF GRANTS AND CONTRACTS SHOULD BE IMPROVED HEAD START AND EARLY HEAD START, LIHEAP, LIHWAP, CSBG, ASTHO, CACFP, and SLFRF FAL # 93.600, 93.568, 93.499, 93.569, 93.185, 10.558, 21.027 (Questioned Costs - Undetermined) Views of Responsible Officials and Planned Corrective Actions: We concur with the finding. Management and staff are in the process of assessing and updating the policies and procedures over the accounting and reporting of federal and state grants and contracts. In connection with training staff on the new and updated accounting system, we are providing ongoing training on the requirements of the Uniform Guidance and the specific requirements for each individual grant award as outlined in each applicable Compliance Supplement issued by Office of Management and Budget (OMB). We are currently reconciling all cash accounts and completing and amending, where necessary, all SF-425 reports and other external reports required by each funding source (state and federal). We anticipate completing this corrective action by December 31, 2025. See also the response to Comment #2024-001. Implementation Date: The plan correction date will be completed no later than December 31, 2025. Responsible Person: Tabirus Lockhart, CFO, will be responsible for the corrective action.

View Audit 365128 Questioned Costs: $1

Finding 574788 (2024-002)

Material Weakness 2024

The Salvation Army Chicago City Fund

IL

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

Finding 2024‐002: Allowable Costs/Cost Principles (Material Weakness and Noncompliance) Condition: For individuals charged to this program who also have time charged to other programs there were no timesheets or other evidence to support the allocation to the program was based on actual time incurre...

Finding 2024‐002: Allowable Costs/Cost Principles (Material Weakness and Noncompliance) Condition: For individuals charged to this program who also have time charged to other programs there were no timesheets or other evidence to support the allocation to the program was based on actual time incurred to the program but was instead based on the budgeted amounts for those individuals. Corrective Action Planned: -All individuals assigned to multiple contracts will keep time logs of hours workedon each, with a monthly review that the hours align with the budgeted amounts. -In the event hours diverge, workload will be adjusted or a budget adjustment will be requested. Anticipated Completion Date: February 1, 2025 Name of Contact Person Responsible for the Plan: Kimberly Atwood Lepse, Divisional Director of Finance

View Audit 365076

Finding 574784 (2024-003)

Material Weakness 2024

Florence City Board of Education

AL

Allowable Costs / Cost Principles

Contact persons responsible for corrective action: Chief School Finance Officer Recommendation: The Board should review its current policies and procedures to ensure that required supporting documentation is maintained when applicable. Auditee response: The Board agrees with the finding. Corrective ...

Contact persons responsible for corrective action: Chief School Finance Officer Recommendation: The Board should review its current policies and procedures to ensure that required supporting documentation is maintained when applicable. Auditee response: The Board agrees with the finding. Corrective action planned: The Chief School Finance Officer, Federal Programs Director, and Assistant Superintendent/Special Education Director will ensure that all employees receive the semi-annual certification forms in order to comply with federal regulations. Anticipated completion date: September 30, 2025

View Audit 365072

Finding 574742 (2024-005)

Significant Deficiency 2024

Southern Minnesota Regional Legal Services Inc.

MN

Allowable Costs / Cost Principles

Management agrees with the auditor’s findings and will take immediate action to ensure the expense allocations are recorded properly. The Director of Finance (Vannam Khen) will work directly with the Finance staff to develop procedures to ensure expense allocations are recorded properly.

View Audit 365057

Corrective Action Plans

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