Corrective Action Plans

Finding 540878 (2024-002)

Significant Deficiency 2024

MA

Questioned Costs Allowable Costs / Cost Principles Significant Deficiency

Moving forward all Time & Efforts Records for federal grant funded positions will be on a single schedule (December and June) of each calendar year and tracked by each program department with support from administrative assistants. All forms will be collected electronically and remain on file in one...

Moving forward all Time & Efforts Records for federal grant funded positions will be on a single schedule (December and June) of each calendar year and tracked by each program department with support from administrative assistants. All forms will be collected electronically and remain on file in one central location in the Finance Department through Grants. This process was begun last year and worked well, but we learned that we need to include a mechanism for ensuring that staff complete Time and Effort forms upon their departure if they leave their role/the district prior to the December or June collection dates. We are working with HR to make sure that this is part of the exit process for any federally-funded staff.

View Audit 350527 Questioned Costs: $1

Finding 540876 (2024-006)

Material Weakness 2024

Putnam County Commission

WV

Internal Control / Segregation of Duties Allowable Costs / Cost Principles Matching / Level of Effort / Earmarking § 200.404

The County Commission will work directly with the vendor to ensure future payment requests properly align with payment information listed on the federal contract.

View Audit 350525

Finding 540859 (2024-001)

Significant Deficiency 2024

Magnolia School District

AR

Questioned Costs Allowable Costs / Cost Principles Internal Control / Segregation of Duties § 200.439

At the time of the purchase for this particular building, the district had several prior approval applications for HVAC replacment submitted to DESE for approval. We believe this one had been submitted as well but was unable to confirm that with DESE. We will develop a better checklist for items s...

At the time of the purchase for this particular building, the district had several prior approval applications for HVAC replacment submitted to DESE for approval. We believe this one had been submitted as well but was unable to confirm that with DESE. We will develop a better checklist for items submitted to DESE for prior approvals so nothing is overlooked.

View Audit 350512 Questioned Costs: $1

Finding 540854 (2024-002)

Material Weakness 2024

Ashtabula County Educational Service Center

OH

Questioned Costs Allowable Costs / Cost Principles Reporting § 200.430

The Treasurer will ensure that the appropriate documentation supporting the time spent on a federal grant, in accordance with the Service Center’s Policy 6116 for Time and Effort, for all employees having wages and/or benefits charged to federal grants.

View Audit 350470 Questioned Costs: $1

Finding 540840 (2024-003)

Material Weakness 2024

Kankakee Valley School Corporation

IN

Questioned Costs Allowable Costs / Cost Principles § 200.303 § 200.403

FINDING 2024-003 Finding Subject: Special Education Cluster (IDEA) Activities Allowed or Unallowed, Allowable Costs/Cost Principles Summary of Finding: During the fiscal year 2023-2024, the School Corporation was part of Cooperative School Services, which managed special education programs and finan...

FINDING 2024-003 Finding Subject: Special Education Cluster (IDEA) Activities Allowed or Unallowed, Allowable Costs/Cost Principles Summary of Finding: During the fiscal year 2023-2024, the School Corporation was part of Cooperative School Services, which managed special education programs and finances for its schools. There were recognized issues where non-public schools received direct reimbursements. It is recommended that the School Corporation implement internal controls to prevent direct reimbursements, ensuring compliance with grant requirements and financial regulations. Contact Person Responsible for Corrective Action: Chris Richie Business Manager/Treasurer Contact Phone Number and Email Address: 219 987 4711, crichie@kv.k12.in.us Views of Responsible Officials: We concur with the finding. Description of Corrective Action Plan: We will work with Cooperative School Services to ensure allowable cost requirements are met. Reports tracking expenditures will be reviewed semiannually for compliance. Anticipated Completion Date: June 1, 2025

View Audit 350469 Questioned Costs: $1

Finding 540834 (2024-002)

Material Weakness 2024

Kankakee Valley School Corporation

IN

Matching / Level of Effort / Earmarking Allowable Costs / Cost Principles § 200.208 § 200.303 § 200.403

FINDING 2024-002 Finding Subject: Special Education Cluster (IDEA) Earmarking Summary of Finding: As a member of Cooperative School Services, special education funding was administered by the Cooperative. The School Corporation only partially spent required funds for some grants. It is recommended t...

FINDING 2024-002 Finding Subject: Special Education Cluster (IDEA) Earmarking Summary of Finding: As a member of Cooperative School Services, special education funding was administered by the Cooperative. The School Corporation only partially spent required funds for some grants. It is recommended that the School Corporation creates written policies to track non-public expenditures to meet earmarking requirements. Contact Person Responsible for Corrective Action: Chris Richie Business Manager/Treasurer Contact Phone Number and Email Address: 219 987 4711, crichie@kv.k12.in.us Views of Responsible Officials: We concur with the finding. Description of Corrective Action Plan: Kankakee Valley School Corporation will work with Cooperative School Services to ensure that Earmarking requirements are met. Reports tracking expenditures will be reviewed semiannually for compliance. Anticipated Completion Date: June 1, 2025

View Audit 350469

Finding 540823 (2024-003)

Significant Deficiency 2024

Muncie Community Schools

IN

Questioned Costs Allowable Costs / Cost Principles School Nutrition Programs § 200.303 § 200.430

Finding 2024-003 – Child Nutrition Cluster – Activities Allowed or Unallowed, Allowable Costs/Cost Principles Context: For 5 selections, in a sample of 5 payroll transactions, the School Corporation did not have time and effort logs to support the portion of the employee’s time charged to the grant...

Finding 2024-003 – Child Nutrition Cluster – Activities Allowed or Unallowed, Allowable Costs/Cost Principles Context: For 5 selections, in a sample of 5 payroll transactions, the School Corporation did not have time and effort logs to support the portion of the employee’s time charged to the grant. The employees’ time was split with a non-federal fund; however, the School Corporation did not have support for the allocation of the time charged to the School Lunch fund. Contact Person Responsible for Corrective Action: Brad DeRome Contact Phone Number: 765-747-5222 Views of Responsible Official: We concur with the finding. Description of Corrective Action Plan: We will ensure all payroll amounts recorded to food service are reviewed to ensure they represent food service payroll activity only. Anticipated Completion Date: March 2025

View Audit 350456 Questioned Costs: $1

Finding 540795 (2024-008)

Material Weakness 2024

Rochester Community School Corporation

IN

Questioned Costs Allowable Costs / Cost Principles § 200.303 § 200.403 § 200.430

Information on the federal program: Subject: Education Stabilization Fund (ESSER) – Internal Controls Federal Agency: Department of Education Federal Program: COVID-19 – Education Stabilization Fund Assistance Listing Number: 84.425D, 84.425U Federal Award Numbers and Years (or Other Identifying Num...

Information on the federal program: Subject: Education Stabilization Fund (ESSER) – Internal Controls Federal Agency: Department of Education Federal Program: COVID-19 – Education Stabilization Fund Assistance Listing Number: 84.425D, 84.425U Federal Award Numbers and Years (or Other Identifying Numbers): S425D210013, S425U210013 Pass-Through Entity: Indiana Department of Education Compliance Requirement: Allowable Costs/Cost Principles Audit Finding: Material Weakness Condition: An effective internal control system was not in place at the School Corporation in order to ensure compliance with requirements related to the grant agreement and the Allowable Costs/Cost Principles compliance requirements. Context: During testing of the Allowable Costs/Cost Principles compliance requirements, there were two vendor vouchers in a sample of 60, where the School Corporation was unable to locate any supporting documentation. These two selections totaled $1,530 charged to the grant. It was further noted that during our testing of payroll costs charged to the COVID-19 – Education Stabilization Fund, for 2 selections in a sample of 40, the School Corporation was unable to provide any support to validate the amount of payroll charged to the grant. These two selections totaled $414 charged to the COVID-19 – Education Stabilization Fund. Corrective Action Plan: The School Corporation will establish a system of internal controls to ensure that documentation is maintained and that expenditures charged to the grant comply with the grant agreement and are allowable. Person responsible for implementation and projected implementation date: The Business Manager will be responsible for overseeing the implementation of the corrective action plan, which will go into effect immediately.

View Audit 350448 Questioned Costs: $1

Finding 540783 (2024-002)

Material Weakness 2024

Rochester Community School Corporation

IN

Allowable Costs / Cost Principles Subrecipient Monitoring Material Weakness § 200.303

Information on the federal program: Subject: Title I Grants to Local Educational Agencies – Allowable Costs/Cost Principles Federal Agency: Department of Education Federal Program: Title I Grants to Local Educational Agencies Assistance Listing Number: 84.010A Federal Award Numbers and Years (or Oth...

Information on the federal program: Subject: Title I Grants to Local Educational Agencies – Allowable Costs/Cost Principles Federal Agency: Department of Education Federal Program: Title I Grants to Local Educational Agencies Assistance Listing Number: 84.010A Federal Award Numbers and Years (or Other Identifying Numbers): S010A210014, S010A220014, S010A230014 Pass-Through Entity: Indiana Department of Education Compliance Requirement: Allowable Costs/Cost Principles Audit Finding: Material Weakness Condition: An effective system of internal controls was not in place at the School Corporation to ensure compliance with requirements related to the grant agreement and the Allowable Costs/Cost Principles compliance requirement. Context: We noted that for 11 payroll claims in a sample of 60, the School Corporation was not able to provide semi-annual certifications or support that the personnel were approved to be paid with Title I funds. Corrective Action Plan: The School Corporation will implement internal control procedures to ensure semi-annual certifications or other forms of support are maintained to certify employees are approved to be paid with Title I funds. Person responsible for implementation and projected implementation date: The Curriculum Director and Business Manager will oversee the implementation of the corrective action plan, which will be implemented immediately. The CD has already implemented the requirements of certifications beginning August 1, 2025 and are on file in the Title I records.

View Audit 350448

Finding 540753 (2024-003)

Material Weakness 2024

Sto-Rox School District

PA

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

CONDITION: During my review of a random sample of eleven (11) invoices related to the District’s expenditure of federal funds, I noted that there was not an approved purchase order issued in eight (8) of those instances. This is a repeat Finding (2023-003) from the prior fiscal year. CRITERIA: In ...

CONDITION: During my review of a random sample of eleven (11) invoices related to the District’s expenditure of federal funds, I noted that there was not an approved purchase order issued in eight (8) of those instances. This is a repeat Finding (2023-003) from the prior fiscal year. CRITERIA: In accordance with the District’s Procurement Policy for Federal Programs (#626.5), the District shall use properly prepared and approved purchase orders for federal purchases. In addition, Section 2 CFR 200.403(g) of the Uniform Guidance requires that all expenditures (costs) must be adequately documented. RECOMMENDATION: I recommend that the District utilize properly prepared and approved purchase orders for all future federal program purchases in compliance with its Procurement Policy for Federal Programs (#626.5) and Section 2 CFR 200.403(g) of the Uniform Guidance. MANAGEMENT’S PLANNED CORRECTIVE ACTION: The School District’s will ensure that purchase order documentation is maintained as part of internal purchasing procedures. Regarding the timeframe for completion, the District has already implemented procedures regarding the documentation of costs and will continue to follow and improve them going forward. The District has contracted J. Martin & Associates, LLC (JMA) to provide business office accounting services. Representatives from JMA and the rest of the business office staff will monitor documentation procedures to ensure that they are followed appropriately.

View Audit 350447

Finding 540734 (2024-003)

Significant Deficiency 2024

Town of Hanover

NH

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

Audit Finding Reference: 2024-003 Management’s Response and Planned Corrective Action: The Town agrees with the identified finding and will write and adopt policies and procedures to ensure compliance with the Uniform Guidance and will address: • Determination of allowable costs • Conflict of i...

Audit Finding Reference: 2024-003 Management’s Response and Planned Corrective Action: The Town agrees with the identified finding and will write and adopt policies and procedures to ensure compliance with the Uniform Guidance and will address: • Determination of allowable costs • Conflict of interest • Employee travel • Cash management • Equipment and inventory • Procurement, Suspension and Debarment • Time & effort reporting • Subrecipient monitoring and management Name of Contact Person and Completion Date: Name 1: Ellen Bullion Name 2: Tom Grantham Anticipated Completion Date – 6/30/25, to be fully implemented for FY2026

View Audit 350426

Finding 540724 (2024-003)

Material Weakness 2024

Belcourt Public School District #7

ND

Questioned Costs Allowable Costs / Cost Principles

2024-003 Contact Person: Duane Poitra, Business Manager Corrective Action Plan: We will resolve these issues and ensure full compliance by training purchasing agents and business office staff to properly document federally funded purchase order expenditures, maintain supporting invoices, and verify ...

2024-003 Contact Person: Duane Poitra, Business Manager Corrective Action Plan: We will resolve these issues and ensure full compliance by training purchasing agents and business office staff to properly document federally funded purchase order expenditures, maintain supporting invoices, and verify that vendor quotes reflect competitive market rates. Purchasing agents and approving administrators will also ensure staff travel requests are electronically filed; all related documentation for all related expenses will be collected. Additional training will be provided to relevant staff on federal expenditure guidelines to prevent future issues. These corrective actions will mitigate the risk of non-compliance and ensure that expenditures are reasonable and necessary for the federal award. Anticipated Completion Date: Fiscal Year 2024-2025

View Audit 350425 Questioned Costs: $1

Finding 540715 (2024-003)

Significant Deficiency 2024

Grand Forks Public School District No. 1

ND

Special Tests & Provisions Allowable Costs / Cost Principles School Nutrition Programs

2024-003 Contact Person–Brandon Baumbach, Business Manager Corrective Action Plan–The District will collect Worksheet G forms monthly from our nonpublic schools mirroring the process used for public schools through our child nutrition system. This will ensure consistent documentation and verificat...

2024-003 Contact Person–Brandon Baumbach, Business Manager Corrective Action Plan–The District will collect Worksheet G forms monthly from our nonpublic schools mirroring the process used for public schools through our child nutrition system. This will ensure consistent documentation and verification of data, and prevent future discrepancies. Completion Date - June 30, 2025

View Audit 350408

Finding 540712 (2024-002)

Significant Deficiency 2024

Jobpath, Inc.

AZ

Questioned Costs Allowable Costs / Cost Principles Subrecipient Monitoring

The organization identified the issues and made staffing changes as of January 1, 2025 that include eliminating the Director of Finance position and instead created an accounting coordinator position and hired an outside accounting firm to provide expertise and an additional level of oversight. This...

The organization identified the issues and made staffing changes as of January 1, 2025 that include eliminating the Director of Finance position and instead created an accounting coordinator position and hired an outside accounting firm to provide expertise and an additional level of oversight. This change expands the finance and accounting team, increasing capacity to ensure the time needed for review of invoices and efficient communication with funders and avoid misunderstandings in the future.

View Audit 350398 Questioned Costs: $1

Finding 540693 (2024-001)

Significant Deficiency 2024

Families First, Inc.

GA

Allowable Costs / Cost Principles Reporting Significant Deficiency § 200.303

Grantee Response and Corrective Action Plan: The CFO met with both the Director of Parenting and Adoption Support Services and the Access and Visitation Program Supervisor to discuss the finding and improve the invoice process. The preparation of the invoice is a team effort and involves at a minimu...

Grantee Response and Corrective Action Plan: The CFO met with both the Director of Parenting and Adoption Support Services and the Access and Visitation Program Supervisor to discuss the finding and improve the invoice process. The preparation of the invoice is a team effort and involves at a minimum seventy-five documents and attachments per invoice. To minimize the risk of omitting required documentation, the Director or designated staff will review the invoice package prior to submission to the funder and an invoice checklist task will be developed and completed. Contact person(s) responsible for corrective action: Schwanna C. Lakine The anticipated completion date is June 30, 2025.

View Audit 350393

Finding 540671 (2024-024)

Material Weakness 2024

State of New Hampshire

NH

Subrecipient Monitoring Reporting Internal Control / Segregation of Duties

CORRECTIVE ACTION PLAN State Fiscal Year Ended June 30, 2024 CCDF Cluster (ALN #93.489, #93.575, #93.596) and COVID-19 Cluster (ALN #93.489, #93.575, #93.596) State Agency: Department of Health and Human Services (DHHS) Audit Contact: Hannah Glines and Melissa Kelleher Title: Revenue Director and ...

CORRECTIVE ACTION PLAN State Fiscal Year Ended June 30, 2024 CCDF Cluster (ALN #93.489, #93.575, #93.596) and COVID-19 Cluster (ALN #93.489, #93.575, #93.596) State Agency: Department of Health and Human Services (DHHS) Audit Contact: Hannah Glines and Melissa Kelleher Title: Revenue Director and Grants Administrator of Bureau of Contracts and Procurement Telephone: 603-271-9043 and 603-271-9637 E-mail address: Hannah.J.Glines@dhhs.nh.gov and Melissa.J.Kelleher@dhhs.nh.gov Audit Report Reference: 2024-024 – Reporting - FFATA Anticipated Completion Date: September 30, 2025 Corrective Action Planned: FFATA procedures will be reviewed and strengthened to ensure adequate controls are in place. This will include training other members of the federal reporting staff so that there is sufficient separation of duties for preparation, review, approval, and timely submittal of the reports. The contracts were all in process prior to the April 4, 2022, inception of the UEI, and had been prepared with the DUNS number. However, the appropriate UEI was obtained to perform the required FFATA reporting requirements using SAM.GOV.

View Audit 350389

Finding 540669 (2024-022)

Material Weakness 2024

State of New Hampshire

NH

Subrecipient Monitoring Reporting Allowable Costs / Cost Principles

CORRECTIVE ACTION PLAN State Fiscal Year Ended June 30, 2024 93.568 Low-Income Home Energy Assistance State Agency: Department of Energy Audit Contact: Leonard Rautio Title: Chief of Operations Telephone: (603) 271-6008 E-mail address: leonard.j.rautio1@energy.nh.gov Audit Report Reference: 2024-...

CORRECTIVE ACTION PLAN State Fiscal Year Ended June 30, 2024 93.568 Low-Income Home Energy Assistance State Agency: Department of Energy Audit Contact: Leonard Rautio Title: Chief of Operations Telephone: (603) 271-6008 E-mail address: leonard.j.rautio1@energy.nh.gov Audit Report Reference: 2024-022, 2023-016, 2022-026, 2021-028, 2021-029 - Reporting Anticipated Completion Date: Complete Corrective Action Planned: Concur The Department has implemented processes and updated procedures to mitigate late reporting or insufficient back-up data since the last finding. These processes have been implemented and personnel trained on the new procedures.

View Audit 350389

Finding 540652 (2024-016)

Material Weakness 2024

State of New Hampshire

NH

Subrecipient Monitoring Allowable Costs / Cost Principles Cash Management

CORRECTIVE ACTION PLAN State Fiscal Year Ended June 30, 2024 93.044, 93.045, 93.053 Aging Cluster State Agency: Department of Health and Human Services (DHHS) Audit Contact: Kyra Leonard Title: DBH & DLTSS Finance Director Telephone: 603-271-5052 E-mail address: Kyra.C.Leonard@dhhs.nh.gov Audit R...

CORRECTIVE ACTION PLAN State Fiscal Year Ended June 30, 2024 93.044, 93.045, 93.053 Aging Cluster State Agency: Department of Health and Human Services (DHHS) Audit Contact: Kyra Leonard Title: DBH & DLTSS Finance Director Telephone: 603-271-5052 E-mail address: Kyra.C.Leonard@dhhs.nh.gov Audit Report Reference: 2024-016 - Activities Allowed or Unallowed/Allowable Costs/Costs Principles Anticipated Completion Date: June 30, 2025 Corrective Action Planned: The Department recognizes the business rules currently in place in the Options Electronic Billing and Service Authorization Maintenance System does not necessitate certain allowability approvals before the expenses are submitted through NHFirst for payment. The Department will turn off the automatic interface between Options and NHFirst in order to review the expenses before payment is issued. The Department will implement the typical invoice review process based on reporting from the Options, including a checklist that will specify each procedure and include a date that it was completed on. Then the approved output will be entered into NHFirst for payment.

View Audit 350389

Finding 540642 (2024-014)

Material Weakness 2024

State of New Hampshire

NH

Subrecipient Monitoring Allowable Costs / Cost Principles Material Weakness § 200.303

CORRECTIVE ACTION PLAN State Fiscal Year Ended June 30, 2024 84.425 COVID-19 Education Stabilization Fund State Agency: Education Department (ED) Audit Contact: Lindsey Labonville Title: Administrator IV Telephone: 603.731.4621 E-mail address: Lindsey.L.Labonville@doe.nh.gov Audit Report Referenc...

CORRECTIVE ACTION PLAN State Fiscal Year Ended June 30, 2024 84.425 COVID-19 Education Stabilization Fund State Agency: Education Department (ED) Audit Contact: Lindsey Labonville Title: Administrator IV Telephone: 603.731.4621 E-mail address: Lindsey.L.Labonville@doe.nh.gov Audit Report Reference: 2024-014, 2023-008; 2022-013, 2022-016; 2021-013, 2021-015 - Reporting Anticipated Completion Date: 06/30/2025 Corrective Action Planned: The NHED concurs with this finding. We acknowledge these discrepancies with a note regarding section b and c. These discrepancies are associated with ESSER III and not ESSER II. The lack of documentation is due to employee turnover. Locating documentation was a challenge for the ESSER Reporting. We are currently reviewing the FY24 reports and making corrections. The corrected ESSER Recipient Data Collection Form will be updated and refiled during the Year 4 re-open period on 7/28/2025. Documentation will be centrally located in the common drive clearly marked. The review process will be well documented with completed sign-off documentation to confirm reconciliation between the GMS system and NH First, the financial system of record.

View Audit 350389

Finding 540622 (2024-008)

Material Weakness 2024

State of New Hampshire

NH

Questioned Costs Allowable Costs / Cost Principles Matching / Level of Effort / Earmarking § 200.303 § 200.306 § 200.414 § 200.434

CORRECTIVE ACTION PLAN State Fiscal Year Ended June 30, 2024 Fish and Wildlife Cluster (Assistance Listing #15.605, #15.611, #15.626) State Agency: NH Fish and Game Department Audit Contact: Kathy LaBonte Title: Business Division Chief Telephone: 603 271-2274 E-mail address: kathy.a.labonte@wildli...

CORRECTIVE ACTION PLAN State Fiscal Year Ended June 30, 2024 Fish and Wildlife Cluster (Assistance Listing #15.605, #15.611, #15.626) State Agency: NH Fish and Game Department Audit Contact: Kathy LaBonte Title: Business Division Chief Telephone: 603 271-2274 E-mail address: kathy.a.labonte@wildlife.nh.gov Audit Report Reference: 2024-008 - Matching Anticipated Completion Date: June 30, 2025 Corrective Action Planned: To have revised procedures in place to include additional documentation to ensure accuracy from the subrecipient. We concur with the finding; A. In-kind match documentation earned requires additional documentation to support subrecipient match contribution. Revised procedures will be implemented to include additional documentation from the subrecipient to ensure accuracy. B. Internal review of volunteer in-kind match calculations are in place, however, in one instance, prior year rates were used resulting in under reported in-kind match earned. The Department does review and track match received from the subrecipient. We do not agree there are questioned costs of $201,250.

View Audit 350389 Questioned Costs: $1

Finding 540621 (2024-007)

Material Weakness 2024

State of New Hampshire

NH

Questioned Costs Allowable Costs / Cost Principles § 200.303 § 200.502

CORRECTIVE ACTION PLAN State Fiscal Year Ended June 30, 2024 Fish and Wildlife Cluster (Assistance Listing #15.605, #15.611, #15.626) State Agency: NH Fish and Game Department Audit Contact: Kathy LaBonte Title: Business Division Chief Telephone: 603 271-2274 E-mail address: kathy.a.labonte@wildli...

CORRECTIVE ACTION PLAN State Fiscal Year Ended June 30, 2024 Fish and Wildlife Cluster (Assistance Listing #15.605, #15.611, #15.626) State Agency: NH Fish and Game Department Audit Contact: Kathy LaBonte Title: Business Division Chief Telephone: 603 271-2274 E-mail address: kathy.a.labonte@wildlife.nh.gov Audit Report Reference: 2024-007 – Activities Allowed or Unallowed/Allowable Costs/Costs Principles Anticipated Completion Date: Unknown Corrective Action Planned: To have the ability to use NHFIRST for grant accounting in the future. Hopefully, the migration to CloudSuite will offer this option. We concur in part with the finding; A. The Department does recognize the NHFIRST system is the official financial system of the state of NH, however, at this time NHFIRST does not allow for us to be able to charge grants individually for staff working on grant funded projects through the NHFIRST system. Therefore, we use QuickBooks as a ‘calculator’ for these grant costs. The Department uses a calculated rate based on the employee’s pay rate, benefits and years of service. While it is an arduous and complicated task, there is currently no other option for capturing all costs of the employee to the programs. B. We do not concur with part B as we did supply the support to substantiate the payroll costs but it was not used for testing. C. We did provide a specific sample for testing but again not in the timeliness requested. The Department does perform reconciliations and pre-audits of information entered into QuickBooks to verify data is complete and accurate. Payment vouchers are entered into QuickBooks by the Federal Aid Accountant and verified by the Supervisor. The Supervisor also verifies payroll and Indirect. We do not agree there are questioned costs of $11,409.

View Audit 350389 Questioned Costs: $1

Finding 540612 (2024-003)

Material Weakness 2024

The Crenulated Company Ltd.

NY

Allowable Costs / Cost Principles Matching / Level of Effort / Earmarking Reporting § 200.306 § 200.403 § 200.434

The Crenulated will request a quarterly in-kind contribution report from DOE and will ensure the in-kind contributions are recorded in the financial statements. The Crenulated plans to hire an in-house Controller with expertise in accounting for grants, and review its existing contract with current ...

The Crenulated will request a quarterly in-kind contribution report from DOE and will ensure the in-kind contributions are recorded in the financial statements. The Crenulated plans to hire an in-house Controller with expertise in accounting for grants, and review its existing contract with current third-party accounting provider.

View Audit 350384

Finding 540588 (2024-005)

Material Weakness 2024

Triad Adult and Pediatric Medicine, INC

NC

Allowable Costs / Cost Principles Period of Performance

Management agrees with this finding. Triad Adult and Pediatric Medicine has updated its Grant Policy and Procedure to address how the organization can reasonably ensure that costs claimed against future federal awards will be allowable federal costs that are incurred within the approved period of p...

Management agrees with this finding. Triad Adult and Pediatric Medicine has updated its Grant Policy and Procedure to address how the organization can reasonably ensure that costs claimed against future federal awards will be allowable federal costs that are incurred within the approved period of performance and meet federal cost principles. This action was the responsibility of the Chief Financial Officer and has been completed. The questioned costs have been repaid and the matter is considered closed.

View Audit 350343

Finding 540548 (2024-005)

Material Weakness 2024

Independent School District #2909, Rock Ridge Public Schools

MN

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

Contact Person – Dr. Noel Schmidt, Superintendent Corrective Action Plan – The District staff will establish a journal entry review policy. A policy detailing thresholds for purchase order approval will also be implemented. Completion Date – Immediately

View Audit 350310

Finding 540509 (2024-005)

Material Weakness 2024

State of Hawaii, Department of Accounting and General Services

HI

Cash Management Subrecipient Monitoring Allowable Costs / Cost Principles

Finding No: 2024 005 ALN No.: 10.179 Program Title: Micro Grants for Food Security Program Grant Award No.: AM200100XXXXG132 2020 21MGFSPHI1003-00 2021 AM22MGFSPHI1007-04 2022 23MGFSPHI1011-00 2023 Condition The audit identified 25 instances totaling $55,000 where grantee disbursements were not mad...

Finding No: 2024 005 ALN No.: 10.179 Program Title: Micro Grants for Food Security Program Grant Award No.: AM200100XXXXG132 2020 21MGFSPHI1003-00 2021 AM22MGFSPHI1007-04 2022 23MGFSPHI1011-00 2023 Condition The audit identified 25 instances totaling $55,000 where grantee disbursements were not made as soon as administratively possible after the drawdown of Federal Funds. Audit staff determined 25 days to be a reasonable period to disburse cash after drawdown from the Federal Government. Corrective Action Plan Concur. The Hawaii Department of Agriculture (HDOA) will change administrative procedures for disbursement of Federal funds under the Micro Grants for Food Security Program. Going forward, HDOA will process the grant contracts and payments in batches of roughly 100 micro grants per month. Federal Drawdown will not occur until the full batch of 100 contracts have been executed. HDOA fiscal staff will then expedite the payment process to ensure conformity with the 25 day disbursement timeline. Person Responsible Brendan Akamu, Market Development Branch Manager Anticipated Date of Completion The updated work process will be implemented in April 2025. The first batch of grant contracts and payments for the 2023 Fiscal year awards are scheduled for April 2025.

View Audit 350263

Corrective Action Plans

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