Corrective Action Plans

Finding 537361 (2024-009)

Significant Deficiency 2024

State of Vermont

VT

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

Reference Number: 2024-009 Prior Year Finding: 2023-007; 2022-016 Federal Agency: U.S. Department of Labor State Agency: Vermont Department of Labor Federal Program: Unemployment Insurance Assistance Listing Number: 17.225 Award Number and Period: DUA 23A60UD000013 (7/14/2023 - 7/14/2026) Compliance...

Reference Number: 2024-009 Prior Year Finding: 2023-007; 2022-016 Federal Agency: U.S. Department of Labor State Agency: Vermont Department of Labor Federal Program: Unemployment Insurance Assistance Listing Number: 17.225 Award Number and Period: DUA 23A60UD000013 (7/14/2023 - 7/14/2026) Compliance Requirement: Allowable Costs/Cost Principles Type of Finding: Significant Deficiency in Internal Control over Compliance, Other Matters Recommendation: We recommend the Department reviews and enhances its procedures and controls regarding payment processing to ensure that, prior to charging costs to the program, they are supported and reviewed by a supervisor who is knowledgeable of the regulations regarding allowable program costs and that documentation of the review is maintained. Views of responsible officials: Management agrees with the finding. Corrective Action Plan: The Department will review its procedures and internal controls and update as necessary to ensure that expenditures are adequately reviewed and signed off on. It should be noted that during the period of performance for which this audit was conducted there were a large number of personnel changes and shifts. The position that was responsible for the majority of these duties retired in January 2024. We proactively hired for her replacement a year before she retired. Over the course of the year our replacement took over more and more duties. In the process of this replacement, we have completed a tremendous amount of evaluation of our assigned duties, processes, workflow, training, and documentation. Not only in this role, but we are also undergoing a division and business unit wide analysis of our internal controls and workflow. Scheduled Completion Date of Corrective Action Plan: April 1, 2025 Contacts for Corrective Action Plan: Chad Wawrzyniak, Financial Director II chad.wawrzyniak@vermont.gov

View Audit 348596 Questioned Costs: $1

Finding 537359 (2024-007)

Significant Deficiency 2024

State of Vermont

VT

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

Reference Number: 2024-007 Prior Year Finding: No Federal Agency: U.S. Department of Defense State Agency: Vermont State Military Department Federal Program: National Guard Military Operations and Maintenance (O&M) Projects Assistance Listing Number: 12.401 Award Number and Period: W912LN2421001 (10...

Reference Number: 2024-007 Prior Year Finding: No Federal Agency: U.S. Department of Defense State Agency: Vermont State Military Department Federal Program: National Guard Military Operations and Maintenance (O&M) Projects Assistance Listing Number: 12.401 Award Number and Period: W912LN2421001 (10/1/2023 – 9/20/2024) Compliance Requirement: Period of Performance Type of Finding: Significant Deficiency in Internal Control over Compliance, Other Matters Recommendation: The Department should review and enhance its procedures and internal controls to ensure that it charges expenditures to the program that are incurred within an award’s allowable period of performance. Views of responsible officials: Management agrees with the finding. Corrective Action Plan: The Department agrees with this finding and will implement the following: • Update Accounts Payable Standard Operating Procedures to include instructions for determining the appropriate Federal Fiscal year for coding and paying vendor invoices. • Distribute updated procedures and train staff to ensure understanding of Period of Performance reporting requirements. • Update Vision query to include the Invoice Date field. Current reports used for preparing the SF-270 only include the Vision transaction date, therefore the preparer and reviewer are not able to determine the performance dates of individual transactions based on this report alone and rely on proper coding of the Class field during voucher entry. Adding the Invoice Date to the report will improve the department’s ability to QC the SF-270 for period of performance discrepancies prior to submission for reimbursement. • The Financial Director will perform quarterly audits of this Vision report to identify any improper reporting. Any errors identified will be corrected with a journal voucher and subsequently corrected on the next SF-270. Scheduled Completion Date of Corrective Action Plan: April 15, 2025 Contacts for Corrective Action Plan: Kim Fedele, Financial Director kimberly.fedele@vermont.gov

View Audit 348596

Finding 537343 (2024-027)

Significant Deficiency 2024

State of Vermont

VT

Allowable Costs / Cost Principles § 200.303 § 200.403

Reference Number: 2024-027 Prior Year Finding: No Federal Agency: U.S. Department of Agriculture U.S. Department of Health and Human Services State Agency: Department of Human Resources Agency of Human Services Federal Program: SNAP Cluster Temporary Assistance for Needy Families Child Support Servi...

Reference Number: 2024-027 Prior Year Finding: No Federal Agency: U.S. Department of Agriculture U.S. Department of Health and Human Services State Agency: Department of Human Resources Agency of Human Services Federal Program: SNAP Cluster Temporary Assistance for Needy Families Child Support Services Medicaid Cluster Assistance Listing Number: 10.551, 10.561, 93.558, 93.563, 93.775, 93.777, 93.778 Award Number and Year: 4VT400406 (10/1/2022 – 9/30/2023) 4VT402513 (10/1/2023 – 9/30/2024) 2301VTTANF (10/1/2022 – 9/30/2023) 2401VTTANF (10/1/2023 – 9/30/2024) 2401VTSCSS (10/1/2023 – 9/30/2024) 2305VT5MAP (10/1/2022 – 9/30/2023) Compliance Requirement: Allowable Activities/Allowable Costs - Payroll Type of Finding: Significant Deficiency in Internal Control Over Compliance Recommendation: We recommend that the Department review and enhance procedures and internal controls to ensure that VTHR uses rates of pay for attorneys that align with the maximum pay rates established by the Attorney Pay Plan. Views of responsible officials: Management agrees with the finding. Corrective Action Plan: The language in the attorney play plan will be clarified to be consistent with long-standing Department of Human Resources’ interpretation of the maximum hourly rate for certain attorney job titles. Specifically, the “whichever is lower” clause will be deleted from Staff Attorney III, Staff Attorney IV, and General Counsel I descriptions. This will leave the limiting language to be “or up to Department/Agency Head’s Salary.” This will allow the maximum salary to be capped at the department head’s salary, which is the intention of the pay plan. In addition, the compensation team will continue to audit all salary actions to ensure that no pay action will exceed the intended maximum salary. The Compensation Division of the Department of Human Resources will make these changes and publish the updated Attorney Pay Plan according to the agreed schedule. Scheduled Completion Date of Corrective Action Plan: The Corrective Action Plan will be completed by February 1, 2025. Contacts for Corrective Action Plan: Douglas Pine, Deputy Director doug.pine@vermont.gov

View Audit 348596

Finding 537305 (2024-002)

None 2024

Winchester School District

NH

Allowable Costs / Cost Principles § 200.430

The Business Administrator will review all the prepared contracts to ensure all grant information is provided and that the semi-annual certifications are signed and completed.

View Audit 348550

Finding 537262 (2024-002)

Material Weakness 2024

Project Quest

OR

Allowable Costs / Cost Principles Material Weakness

Finding # 2024-002 Type: Material weakness Type: Material noncompliance over allowable costs A.L. Number: 21.027 Department of U.S. Treasury Material Weakness/Material Noncompliance Personnel expenses charged to federal awards must be supported records that reflect the time worked charged to the a...

Finding # 2024-002 Type: Material weakness Type: Material noncompliance over allowable costs A.L. Number: 21.027 Department of U.S. Treasury Material Weakness/Material Noncompliance Personnel expenses charged to federal awards must be supported records that reflect the time worked charged to the award. The Organization charged personnel expenses based on approved budgeted amounts in the award agreement. Corrective Action: We recommend the Organization implement a time and effort system to track employee time. This is typically done in a timesheet format that tracks all time worked by an employee, including programmatic and administrative time. Management agrees with the finding. Management will work with the human resources function and payroll department to implement a system of time and effort tracking. Anticipated Completion Date March 2025

View Audit 348495

Finding 532016 (2024-104)

Significant Deficiency 2024

State of Texas C/o Comptroller of Public Accounts

TX

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

Corrective Action Plan: The Red Hat Enterprise Linux (RHEL) Extended Life Cycle Support license for UTMB’s 51 PeopleSoft RHEL7 servers was received on Friday 10/4/2024 for service dates through 6/30/2025. Furthermore, these servers will be updated to RHEL9 in the first half of 2025. Implementati...

Corrective Action Plan: The Red Hat Enterprise Linux (RHEL) Extended Life Cycle Support license for UTMB’s 51 PeopleSoft RHEL7 servers was received on Friday 10/4/2024 for service dates through 6/30/2025. Furthermore, these servers will be updated to RHEL9 in the first half of 2025. Implementation Date: October 4, 2024 Responsible Person: Darwin VanDyke, IT Services – Director of Administrative & Research Information Systems

View Audit 348386

Finding 530395 (2024-022)

Significant Deficiency 2024

State of Texas C/o Comptroller of Public Accounts

TX

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

Corrective action plan: TVC’s Finance Department hired a dedicated Budget Analyst to the VES program in October 2024. Both the Chief Financial Officer and the Deputy Chief Financial Officer will review and approve all Forecast and Payroll reports related to the VES grant program to ensure there is...

Corrective action plan: TVC’s Finance Department hired a dedicated Budget Analyst to the VES program in October 2024. Both the Chief Financial Officer and the Deputy Chief Financial Officer will review and approve all Forecast and Payroll reports related to the VES grant program to ensure there is proper documentation and approvals as well as to be familiar with procedures in the event of employee and/or management turnover. During the review process, the Chief Financial Officer or the Deputy Financial Officer will also validate that VES’s indirect revenues are being accurately calculated against VES’s payroll costs (salaries and benefits only) and well documented each month. There will also be an annual review conducted for additional verification. Implementation dates: November 2024 Responsible persons: Michelle Nall, Chief Financial Officer, Lawrence Cruz, Deputy Financial Officer, and Julie Pusan ,VES Budget Analyst

View Audit 348386 Questioned Costs: $1

Finding 530393 (2024-021)

Significant Deficiency 2024

State of Texas C/o Comptroller of Public Accounts

TX

Allowable Costs / Cost Principles § 200.303 § 200.430

Corrective action plan: The VES Budget Analyst will continue to review the monthly Forecast and Payroll reports with the VES’s Director or Operations Manager. Upon review, the Director or Operations Manager will sign-off on both the monthly Forecast and the monthly Payroll Report which identifies ...

Corrective action plan: The VES Budget Analyst will continue to review the monthly Forecast and Payroll reports with the VES’s Director or Operations Manager. Upon review, the Director or Operations Manager will sign-off on both the monthly Forecast and the monthly Payroll Report which identifies each employee’s payroll costs and operation costs approved to be charged to the grant. VES’s Director or Operations Manger will also sign-off on the VES Annual State Plan which identifies employees and operating costs approved to be charged to the grant for the grant period, prior to submitting to the U.S. Department of Labor. Implementation dates: January 2025 Responsible persons: Anna Baker, Director of Veteran Employment Services and Julie Pusan, VES Budget Analyst,

View Audit 348386

Finding 530381 (2024-018)

Significant Deficiency 2024

State of Texas C/o Comptroller of Public Accounts

TX

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

Corrective action plan: The current application lacks a notification feature for discrepancies between the requested and approved payment amounts. A software enhancement is expected to be implemented by April 30th, 2025, that will display a warning message if the requested and approved amounts do ...

Corrective action plan: The current application lacks a notification feature for discrepancies between the requested and approved payment amounts. A software enhancement is expected to be implemented by April 30th, 2025, that will display a warning message if the requested and approved amounts do not match, prompting an additional review. During the developer review, the Grant Manager Lead will maintain a spreadsheet highlighting mismatched data, stored in the AVN Grant drive for reference. TxDOT AVN Grant Managers will be trained on this process, with updated instructions. Once the software is updated, further training and procedure updates will follow. Implementation dates: June 1, 2025 Responsible persons: Michelle Burcham, Grants & Admin Section Director, Allison Martin, Grant Manager Lead, Cassandra Moore, Grant Managers

View Audit 348386

Finding 530372 (2024-015)

Significant Deficiency 2024

State of Texas C/o Comptroller of Public Accounts

TX

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

Corrective action plan: Based on the recommendation above, HHSC Medicaid & CHIP Services (MCS) Financial Reporting and Audit Coordination (FRAC) has incorporated the suggested enhanced controls around the review of MLR report submissions to ensure they are complete and accurate. In order to enhan...

Corrective action plan: Based on the recommendation above, HHSC Medicaid & CHIP Services (MCS) Financial Reporting and Audit Coordination (FRAC) has incorporated the suggested enhanced controls around the review of MLR report submissions to ensure they are complete and accurate. In order to enhance existing controls, MCS FRAC has included a section for MLR reviewers to ensure Methodology(ies) for allocation of expenditures tab questions are complete. Likewise, specific instructions have been added to the review document to ensure the recommendations are met. These enhanced controls will be included in Fiscal Year (FY) 2025 and ongoing review of MLR report submissions. Implementation dates: November 2025 Responsible persons: Jason Mendl, Deputy Associate Commissioner, FRAC

View Audit 348386

Finding 530347 (2024-010)

Significant Deficiency 2024

State of Texas C/o Comptroller of Public Accounts

TX

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

Corrective action plan: HHSC has enacted changes to policies and timelines to ensure SOC 1 Type 2 reports are completed in a timely manner each year. HHSC will evaluate language in new and/or amending contracts to ensure contractual language supports these efforts. Implementation date: September ...

Corrective action plan: HHSC has enacted changes to policies and timelines to ensure SOC 1 Type 2 reports are completed in a timely manner each year. HHSC will evaluate language in new and/or amending contracts to ensure contractual language supports these efforts. Implementation date: September 30, 2025 Responsible persons: Michael Blood, Deputy Associate Commissioner, Contract Administration and Provider Monitoring

View Audit 348386

Finding 530344 (2024-009)

Significant Deficiency 2024

State of Texas C/o Comptroller of Public Accounts

TX

Allowable Costs / Cost Principles Significant Deficiency § 200.303

Corrective action plan: The Commission’s current Accounts Payable Policy and Procedures Handbook documents voucher processing requirements including “approval to pay” documentation. The Accounts Payable (AP) management of the CFO Central Accounting division conducts a monthly “AP Talk” to update s...

Corrective action plan: The Commission’s current Accounts Payable Policy and Procedures Handbook documents voucher processing requirements including “approval to pay” documentation. The Accounts Payable (AP) management of the CFO Central Accounting division conducts a monthly “AP Talk” to update staff on changes to policy and procedures and provide refresher trainings, as needed. The program approval requirements for voucher payments and associated documentation will be reviewed in the February “AP Talk” for CFO Central Accounting and submitted to the HHSC peripheral accounting departments by the end of February. Implementation dates: February 28, 2025 Responsible persons: David Schneider, Deputy Director, Expenditure Management

View Audit 348386

Finding 530339 (2024-007)

Significant Deficiency 2024

State of Texas C/o Comptroller of Public Accounts

TX

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

Corrective action plan: Social Services Block Grant (SSBG) Actions Taken: HHSC Fund Management worked with Chief Financial Officer (CFO) Operations Support to develop a query to identify journal transactions that post in the CAPPS Financials General Ledger module prior to the start date of the p...

Corrective action plan: Social Services Block Grant (SSBG) Actions Taken: HHSC Fund Management worked with Chief Financial Officer (CFO) Operations Support to develop a query to identify journal transactions that post in the CAPPS Financials General Ledger module prior to the start date of the project. This query has been run monthly since May 2024, and it was fully implemented as of August 31, 2024. Planned: Additional training on the review process for Accounting and Budget staff, and revisions to the process to emphasize meeting deadlines while new federal grants and old federal grant close out transactions occur. An expenditure transfer voucher (ETV) to correct reconciliation issue will be completed by CFO Budget staff. Block Grants for Community Mental Health Services (MHBG) Actions Taken: HHSC Fund Management will run the monthly query and take corrective action on any resulting journals prior to the close of the fiscal year. In addition, HHSC Fund Management/Cash Management does not draw federal funds past the liquidation date. These dates are denoted in their draw ledgers. Cash Management also sends a semi_x0002_monthly email during the fiscal year and a weekly email from mid-June through the end of July to HHSC Budget identifying transactions by fund source that should be cleared from the draw down report prior to the close of the fiscal year. HHSC Cash Management will continue to send the draw down clean up report and start the weekly emails the first week of June. HHSC Budget will complete any ETVs resulting from the draw down clean up report to HHSC Fund Management General Ledger for processing by July 15 to ensure the draw down accurately reflects federal expenditures for the SEFA population. Planned: Budget Management will revise the coordination process with Behavioral Health Services program financial staff administering MHBG to prioritize addressing encumbered balances on expiring block grant years at the beginning of the liquidation period and set deadlines for Program input on required financial adjustments to ensure sufficient time for processing. ETV to correct reconciliation issue will be completed. Implementation dates: February 28, 2025 Responsible persons: SSBG: Heather Nevill, Fund Management Director, Fund Accounting Raymond Jasik, Budget Director, CFO Budget Heather Anderson, Budget Manager, CFO Budget MHBG: Marcie Ochoa-Gamez, Budget Manager, Budget Management

View Audit 348386 Questioned Costs: $1

Finding 530303 (2024-001)

Significant Deficiency 2024

State of Texas C/o Comptroller of Public Accounts

TX

Allowable Costs / Cost Principles Matching / Level of Effort / Earmarking § 200.303 § 200.430

Corrective action plan: DSHS will reinforce new hire training to ensure all supervisors understand the purpose and procedures addressing labor account codes, monthly time reporting, and task profiles. DSHS will further evaluate related training materials for opportunities to strengthen understandi...

Corrective action plan: DSHS will reinforce new hire training to ensure all supervisors understand the purpose and procedures addressing labor account codes, monthly time reporting, and task profiles. DSHS will further evaluate related training materials for opportunities to strengthen understanding and compliance overall. Implementation dates: March 1, 2025 Responsible persons: Christy Havel Burton, Chief Financial Officer

View Audit 348386

Finding 530302 (2024-001)

Significant Deficiency 2024

Habitat for Humanity of New Castle County INC

DE

Allowable Costs / Cost Principles Reporting Cash Management § 200.502

Corrective Action Plan: The unaudited statements were corrected for FY2024 and are reflected in the audited statements. FY2023’s were corrected through the retained earnings that show on the FY2024’s audited statements as well in the prior year’s number on the statements. The FY2024 Single Audit ref...

Corrective Action Plan: The unaudited statements were corrected for FY2024 and are reflected in the audited statements. FY2023’s were corrected through the retained earnings that show on the FY2024’s audited statements as well in the prior year’s number on the statements. The FY2024 Single Audit reflects these changes as well. Management invoices at the times allowed upon the different grant funders based upon percentage of completion of the project/s. We will review all on-going projects at the end of each fiscal year during the audit with the auditors to determine what reporting has to be done in order to comply with the requirements of the requirements of Title 2 U.S. Code of Federal Regulations (CFR) Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards, (Uniform Guidance), Subpart F, Audit Requirements.

View Audit 348385

Finding 530291 (2024-003)

Significant Deficiency 2024

School City of Hobart

IN

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

FINDING 2024-003 Finding Subject: Special Education Cluster (IDEA) - Earmarking Contact Person Responsible for Corrective Action: Robert Glover Jr. Contact Phone Number: (219) 945-0250 Contact Email Address: rglover@hobart.k12.in.us Views of Responsible Officials: We concur with the finding. Descrip...

FINDING 2024-003 Finding Subject: Special Education Cluster (IDEA) - Earmarking Contact Person Responsible for Corrective Action: Robert Glover Jr. Contact Phone Number: (219) 945-0250 Contact Email Address: rglover@hobart.k12.in.us Views of Responsible Officials: We concur with the finding. Description of Corrective Action Plan: As a member of the Northwest Indiana Special Education Cooperative (NISEC), School City of Hobart reported their proportionate share based on a percentage of expenditures and have had successful audits in doing so. When Hobart was notified that this process was no longer acceptable, we immediately implemented an internal control process with NISEC which included detailed reporting of staff work hours for nonpublic schools related to only our school corporation. The report is then reviewed and signed by the NISEC staff working for the nonpublic school and their supervisor. The employee detailed time and effort report is then provided to the NISEC finance department for a second review and signature before being provided to payroll. NISEC payroll then charges the proportionate share to the IDEA Part B grant in the payroll system bi-weekly based on the time and effort report pertinent to just School City of Hobart Non-public schools. The time and effort reports are then used to submit the reimbursement request to the Department of Education for Hobart’s proportionate share. Anticipated Completion Date: 4/30/2025

View Audit 348381

Finding 530244 (2024-004)

Significant Deficiency 2024

Wyandanch Union Free School District

NY

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

U.S. Department of Education -Passed-through the NYS Education Department Title I Grants to Local Educational Agencies (LEAs); Assistance Listing Number (ALN) 84.010; Project # 's 0021-23-2955, 0011-23-6011, 0011-23-7200, 0011-24-2160, 0021-24-2955, Grant Period Fiscal Year Ended June 30, 2024 U....

U.S. Department of Education -Passed-through the NYS Education Department Title I Grants to Local Educational Agencies (LEAs); Assistance Listing Number (ALN) 84.010; Project # 's 0021-23-2955, 0011-23-6011, 0011-23-7200, 0011-24-2160, 0021-24-2955, Grant Period Fiscal Year Ended June 30, 2024 U.S. Department of Education -Passed-through the NYS Education Department - Education Stabilization Fund COVID-19 - Elementary and Secondary School Emergency Relief (ESSER) Fund; ALN 84.425D; Project #5891-21-2955; Grant Period - Fiscal Year Ended June 30, 2024 COVID-19 - American Rescue Plan - Elementary and Secondary School Emergency Relief (ARP ESSER) Fund; ALN 84.425U; Project 5880-21-2955, 5884-21-2955, 5883-21-2955, 5882-21- 2955; Grant Period -Fiscal Year Ended June 30, 2024 COVID-19 -American Rescue Plan -Elementary and Secondary School Emergency Relief - Homeless Children and Youth; ALN 84.425W; Project#5218-21-2955; Grant Period - Fiscal Year Ended June 30, 2024 Significant Deficiency Compliance Req uirement: Allowable Activities and Cost Principles Criteria: Per Uniform Guidance (2 CFR §200.430), payroll costs charged to federal grants must be supported by appropriate documentation reflecting actual time and effort spent on grant-related activities. Per District policy employees are required to submit Personnel Activity Reports (PARs) to certify time worked on a federal grant. PARs are then required to be reviewed and approved by a direct supervisor. Condition: We identified seventeen (17) instances of missing or incomplete PAR forms for Title I. Six (6) out of (17) employees did not complete a PAR form. Eleven (11) out of (17) did not document supervisor review and approval. For the education stabilization fund the District was unable to provide support for time and effort worked on the grant for eleven (11) employees. Cause: Due to significant changes in personnel and work environments of key employees, the District was unable to maintain adequate oversight over the payroll function. Effect: The District is not in compliance with federal grant requirements and District policy. Questioned Costs: None Recommendation: We recommend the District enhance internal control measures to verify the accuracy and completeness of PARs in a timely manner. We also recommend the District conduct independent reviews of the payroll process and time and effort reporting to verify established controls are functioning as intended. District's Response: The District agrees with this finding. The procedures that are typically followed were not in place during the 2024 school year due to staff changes but the District is back on track and following the correct protocol for the current year and going forward

View Audit 348332

Finding 530226 (2024-003)

Material Weakness 2024

Bloomfield School District

IN

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

FINDING 2024-003 - Child Nutrition Cluster - Activities Allowed or Unallowed, Allowable Costs/Cost Principles Context: During testing we noted the following issues in a sample of forty child nutrition cluster payroll claims: ● 6 of 40 payroll transactions where a timecard was not completed by the ...

FINDING 2024-003 - Child Nutrition Cluster - Activities Allowed or Unallowed, Allowable Costs/Cost Principles Context: During testing we noted the following issues in a sample of forty child nutrition cluster payroll claims: ● 6 of 40 payroll transactions where a timecard was not completed by the employee to validate their hours worked and the time charged to food service. ● 19 of 40 payroll transactions where the School Corporation was unable to provide supporting documentation for approval of the hourly rate paid to employee. The noncompliance was isolated to the payroll periods through August 4, 2023. The School Corporation corrected the issues starting with the next payroll period. Contact Person Responsible for Corrective Action: Michelle L. Keene Contact Phone Number: (812) 384-4386 Views of Responsible Official: We concur with the finding. Description of Corrective Action Plan: In FY24, the issue was corrected to ensure all employees were only paid for time supported by a time a card and a board approved rate schedule. Anticipated Completion Date: August 19, 2023

View Audit 348324 Questioned Costs: $1

Finding 530222 (2024-002)

Material Weakness 2024

City of Framingham

MA

Questioned Costs Allowable Costs / Cost Principles Material Weakness § 200.430

2024-002 Adult Education - Assistance Listing Number 84.002 Recommendation: We recommend procedures to maintain records that accurately reflect the work performed for payroll charges to the grant be implemented/strengthened. Explanation of disagreement with audit finding: There is no disagreement ...

2024-002 Adult Education - Assistance Listing Number 84.002 Recommendation: We recommend procedures to maintain records that accurately reflect the work performed for payroll charges to the grant be implemented/strengthened. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: The Adult Education department will be collecting the Time and Effort certifications for staff on Federal grants. Name(s) of the contact person(s) responsible for corrective action: Dr. Kevin O’Connor, Claudia Castro Alves and Kate Fiore Planned completion date for corrective action plan: Effective as of 10/10/2024 so will have Time and Effort certifications for all FY25 staff on Federal grant #2340

View Audit 348312 Questioned Costs: $1

Finding 530198 (2024-001)

Significant Deficiency 2024

Catholic Charities Hawaii

HI

Reporting Allowable Costs / Cost Principles Significant Deficiency

Beginning with the audited consolidated financial statements of Catholic Charities Hawaii for the year ended June 30, 2024, the Controller will ensure that each contract awarded and received is thoroughly analyzed prior to assigning a fund source. This control will properly identify federal funds th...

Beginning with the audited consolidated financial statements of Catholic Charities Hawaii for the year ended June 30, 2024, the Controller will ensure that each contract awarded and received is thoroughly analyzed prior to assigning a fund source. This control will properly identify federal funds that are to be reported on the SEFA.

View Audit 348304

Finding 530181 (2024-032)

Significant Deficiency 2024

State of Arkansas

AR

Allowable Costs / Cost Principles Eligibility Special Tests & Provisions

Views of Responsible Officials and Planned Corrective Action: DHS concurs with this finding. For Sample Item 17, the screening activities associated with the revalidation were completed prior to the revalidation date through the Provider Enrollment, Chain, and Ownership System (PECOS). The provider ...

Views of Responsible Officials and Planned Corrective Action: DHS concurs with this finding. For Sample Item 17, the screening activities associated with the revalidation were completed prior to the revalidation date through the Provider Enrollment, Chain, and Ownership System (PECOS). The provider submitted their revalidation application timely, but during the revalidation process the agency requested corrections and clarifications of administrative and tax information. This delayed the final component of the screening, the site visit, until July 15, 2024. For Sample Item 22, DMS confirms there was no W-9 dated prior to February 7, 2024. The primary function of the W-9 form is to confirm the providers name, address, and tax information. This information was already listed in MMIS during the date in question. The W-9 submitted by the provider on April 4, 2024, confirmed the accuracy of the information in MMIS that the provider has used since its initial enrollment on July 20, 1981. DMS is developing a mechanism to obtain information provided on W-9’s by utilizing an electronic process through the provider portal during enrollment. Anticipated Completion Date: June 30, 2025 Contact Person: Elizabeth Pitman Director, Division of Medical Services Department of Human Services 700 Main Street Little Rock, AR 72201 (501) 244-3944 Elizabeth.Pitman@dhs.arkansas.gov

View Audit 348267

Finding 530175 (2024-026)

Significant Deficiency 2024

State of Arkansas

AR

Questioned Costs Allowable Costs / Cost Principles

Views of Responsible Officials and Planned Corrective Action: DHS concurs with this finding and that cost allocation is the most appropriate means for funding this work. DHS has implemented corrective action effective July 1, 2024, to change payment for Managerial Accounting services from 100% Medi...

Views of Responsible Officials and Planned Corrective Action: DHS concurs with this finding and that cost allocation is the most appropriate means for funding this work. DHS has implemented corrective action effective July 1, 2024, to change payment for Managerial Accounting services from 100% Medicaid funding to a cost allocation methodology. Future contracts and contract extensions executed by the Office of Finance will be evaluated by the DHS Chief Financial Officer to determine the nature of work performed for each contract and specify the appropriate method of allocating costs for services. Anticipated Completion Date: Complete Contact Person: Renee Ikard Chief Financial Officer Department of Human Services 700 Main Street Little Rock, AR 72201 (501) 682-8985 Renee.Ikard@dhs.arkansas.gov

View Audit 348267 Questioned Costs: $1

Finding 530171 (2024-023)

Significant Deficiency 2024

State of Arkansas

AR

Student Financial Aid Subrecipient Monitoring Allowable Costs / Cost Principles

Views of Responsible Officials and Planned Corrective Action: DHS concurs with this finding. Corrections have been made to the affected quarterly reports for SFY2024. New program codes for Placement and Residential Licensing expenditures were not included in prior reporting for Administrative Costs...

Views of Responsible Officials and Planned Corrective Action: DHS concurs with this finding. Corrections have been made to the affected quarterly reports for SFY2024. New program codes for Placement and Residential Licensing expenditures were not included in prior reporting for Administrative Costs. Documented procedures for quarterly financial reporting will be revised to include more specific instructions for reporting expenditures and additional levels of review prior to report submission. Additional training on completion of quarterly financial reporting is being developed for DCFS Finance and Managerial Accounting-Grants Management staff. Anticipated Completion Date: April 30, 2025 Contact Person: Tiffany Wright Director, Division of Children and Family Services Department of Human Services 700 Main Street Little Rock, AR 72201 (501) 396-6477 Tiffany.Wright@dhs.arkansas.gov

View Audit 348267

Finding 530169 (2024-021)

Significant Deficiency 2024

State of Arkansas

AR

Questioned Costs Allowable Costs / Cost Principles Eligibility

Views of Responsible Officials and Planned Corrective Action: DHS concurs with this finding. The DHS Accounts Receivables Unit is developing documented procedures and controls addressing the process for entering adoption subsidy overpayments into the agency’s accounts receivable system (AROPTS) and ...

Views of Responsible Officials and Planned Corrective Action: DHS concurs with this finding. The DHS Accounts Receivables Unit is developing documented procedures and controls addressing the process for entering adoption subsidy overpayments into the agency’s accounts receivable system (AROPTS) and DCFS is updating documented procedures and training on reporting of collected overpayments to the Accounts Receivable Unit. System changes are also in process for AROPTS that will pull the adjusted balance for overpayments when a notice is being created. Anticipated Completion Date: April 30, 2025 Contact Person: Renee Ikard Chief Financial Officer Department of Human Services 700 Main Street Little Rock, AR 72201 (501) 682-8985 Renee.Ikard@dhs.arkansas.gov

View Audit 348267 Questioned Costs: $1

Finding 530168 (2024-020)

Material Weakness 2024

State of Arkansas

AR

Reporting Student Financial Aid Subrecipient Monitoring

Views of Responsible Officials and Planned Corrective Action: DHS concurs with this finding. Corrections have been made to the affected quarterly reports for SFY2024. New program codes for Placement and Residential Licensing expenditures were not included in prior reporting for Administrative Costs...

Views of Responsible Officials and Planned Corrective Action: DHS concurs with this finding. Corrections have been made to the affected quarterly reports for SFY2024. New program codes for Placement and Residential Licensing expenditures were not included in prior reporting for Administrative Costs. Documented procedures for quarterly financial reporting will be revised to include more specific instructions for reporting expenditures and additional levels of review prior to report submission. Additional training on completion of quarterly financial reporting is being developed for DCFS Finance and Managerial Accounting-Grants Management staff. Anticipated Completion Date: April 30, 2025 Contact Person: Tiffany Wright Director, Division of Children and Family Services Department of Human Services 700 Main Street Little Rock, AR 72201 (501) 396-6477 Tiffany.Wright@dhs.arkansas.gov

View Audit 348267

Corrective Action Plans

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