Corrective Action Plans

Finding 571500 (2024-003)

Material Weakness 2024

City of Loveland

CO

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

Condition: The City did not have controls in place surrounding the review of requests for reimbursement to ensure the underlying invoices were allowable and that the local matching contribution was calculated correctly. Planned Corrective Action: The City will revise its Grants Management Administra...

Condition: The City did not have controls in place surrounding the review of requests for reimbursement to ensure the underlying invoices were allowable and that the local matching contribution was calculated correctly. Planned Corrective Action: The City will revise its Grants Management Administrative Regulation to require that all requests for reimbursement be submitted on a quarterly basis. Each RFR will be required to go through a documented review by a finance staff member prior to submission to ensure accuracy and appropriate application of required match. Contact person responsible for corrective action: Grant Accountant and Accounting Manager Anticipated Completion Date: 07/31/2025

View Audit 362454

Finding 571495 (2024-001)

Material Weakness 2024

Boys and Girls Clubs of Greater Houston, Inc. and Controlled Org

TX

Allowable Costs / Cost Principles

Finding #2024-001 – Material Weakness and Material Noncompliance. Applicable federal program: U. S. Department of Education, COVID-19 – Education Stabilization Fund, Assistance Listing #84.425U, Passed through Texas Education Agency, Contract period: 01/31/22 – 05/31/24, Contract number: 2152805...

Finding #2024-001 – Material Weakness and Material Noncompliance. Applicable federal program: U. S. Department of Education, COVID-19 – Education Stabilization Fund, Assistance Listing #84.425U, Passed through Texas Education Agency, Contract period: 01/31/22 – 05/31/24, Contract number: 215280587110020, Passed through Lamar Consolidated Independent School District, Contract period: 09/01/22 – 06/30/24, Contract number: None, Passed through Wharton Independent School District, Contract period: 01/01/22 – 06/30/24, Contract number: None. Condition and context: In a sample of 30 payroll transactions, 7 did not have timesheets to support the allocation of salary costs charged to the major program. Further investigation revealed that Boys and Girls Clubs did not require time and effort reporting for program management personnel whose time charged to the awards totaled approximately $98,000. Repeat finding of #2023-003. Recommendation: Strengthen controls to require time and effort reporting of actual time incurred for all salaries and wages charged to federal programs. Planned corrective action: Management agrees with the finding. Boys and Girls Clubs shall implement tighter controls related to accurately documenting time and effort allocations to grants. Boys and Girls Clubs became aware of this issue subsequent to the termination of the program. At that time, the Vice President of Finance and Business Operations implemented a Bi-Weekly Activity Report for administrative salaried personnel on a timeline that aligns with the payroll period cycle. Administrative personnel have been trained on the use of the Bi-Weekly Activity Report. The Bi-Weekly Activity Report is filled out by the employee detailing their activity for the period and signed by their immediate Supervisor and then provided back to the Finance Department. Responsible officer: Jonathan Sturgis, Vice President Finance and Business Operations. Estimated completion date: Completed June 30, 2024

View Audit 362452

Finding 571487 (2024-004)

Significant Deficiency 2024

Academy of Accelerated Learning, INC

TX

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

Managements Response: Academy of Accelerated Learning, Inc. leadership will develop, along with new financial management a plan for improvement to be presented to the Board which includes a review of its internal control procedures over financial reporting to ensure controls are in place to designat...

Managements Response: Academy of Accelerated Learning, Inc. leadership will develop, along with new financial management a plan for improvement to be presented to the Board which includes a review of its internal control procedures over financial reporting to ensure controls are in place to designate the preparer and approver, to properly and timely record all accounts in accordance with generally accepted accounting principles. Academy of Accelerated Learning, Inc. will establish timelines and training for the expense approval process. Leadership and the new financial management will designate staff to align with a segregation of duties and hold staff accountable. Timeline and Responsible Position: By August 31, 2026. Board of Directors, Superintendent, and Chief Financial Officer.

View Audit 362410

Finding 571481 (2024-002)

Material Weakness 2024

Eastern Plains Community Action Agency, Inc.

NM

Questioned Costs Equipment & Real Property Management Allowable Costs / Cost Principles § 200.303 § 200.313 § 200.406

Physical inventory has been completed, and this process was added to our monitoring calendar to be completed in May of each year. Regarding insurance reimbursement, our policies and procedures are updated to reflect this requirement, and the fiscal staff has been t...

Physical inventory has been completed, and this process was added to our monitoring calendar to be completed in May of each year. Regarding insurance reimbursement, our policies and procedures are updated to reflect this requirement, and the fiscal staff has been trained on this requirement.

View Audit 362404 Questioned Costs: $1

Finding 571435 (2024-002)

Material Weakness 2024

Hope Shines Bright Holding Company, Inc.

NV

Allowable Costs / Cost Principles Internal Control / Segregation of Duties Cash Management § 200.62

2004-002: Controls over Allowable Costs, etc. St. Jude’s Ranch for Children (the parent entity of HSB Holding Company) acknowledges that weaknesses in the financial oversight process contributed to this finding. Specifically, limited knowledge of Generally Accepted Accounting Principles (GAAP) and ...

2004-002: Controls over Allowable Costs, etc. St. Jude’s Ranch for Children (the parent entity of HSB Holding Company) acknowledges that weaknesses in the financial oversight process contributed to this finding. Specifically, limited knowledge of Generally Accepted Accounting Principles (GAAP) and federal cost principles by key financial personnel led to misclassification of costs and errors in reimbursement requests in a new type of grant unfamiliar to the accounting team. In response, the organization is restructuring its finance department to ensure that individuals with appropriate qualifications and experience in nonprofit GAAP and federal grant compliance are responsible for reviewing accounting records and reimbursement requests. This includes a new Chief Financial Officer with demonstrated experience in federal grant accounting and compliance and a dedicated grants manager to prepare all reimbursement submissions under the oversight of the CFO.

View Audit 362369

Finding 571398 (2024-002)

Significant Deficiency 2024

Jefferson County Iowa

IA

Allowable Costs / Cost Principles

Data Collection Form Name of the contact person: Christy Conner, County Auditor Corrective Action: Future data collection forms will be filed by the due date. Proposed Completion Date: Future audits.

View Audit 362348

Finding 571358 (2024-001)

Significant Deficiency 2024

Franklin County Public Utility District No. 1

WA

Subrecipient Monitoring Procurement, Suspension & Debarment Internal Control / Segregation of Duties § 200.318

The District will modify the federal procurement language existing in its current policy in accordance with 2 CFR 200.

View Audit 362298

Finding 571307 (2024-001)

Material Weakness 2024

Lyle School District No. 406

WA

Questioned Costs Internal Control / Segregation of Duties Subrecipient Monitoring

CORRECTIVE ACTION PLAN FOR FINDINGS REPORTED UNDER UNIFORM GUIDANCE Lyle School District No. 406 September 1, 2023 through August 31, 2024 This schedule presents the corrective action the District is planning to take for findings included in this report in accordance with Title 2 U.S. ...

CORRECTIVE ACTION PLAN FOR FINDINGS REPORTED UNDER UNIFORM GUIDANCE Lyle School District No. 406 September 1, 2023 through August 31, 2024 This schedule presents the corrective action the District is planning to take for findings included in this report in accordance with Title 2 U.S. Code of Federal Regulations (CFR) Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Finding ref number: 2024-001 Finding caption: The District did not have adequate controls for ensuring compliance with federal requirements for allowable costs and cost principles and federal wage rate requirements. Name, address, and telephone of District contact person: Susan Carabin, Business Manager PO Box 368 Lyle, WA 98635 (509) 365-2191 Corrective action the auditee plans to take in response to the finding: A new methodology for calculating indirect cost rates has been implemented, including working directly with EGMS staff at the beginning of the fiscal year to document the correct indirect rate per grant (for the 2024-25 fiscal year this was completed in March 2025). The District was previously not aware that OSPI was not modifying the hard coded rate. The District has significantly strengthened its internal controls over expenditures. We've implemented a checklist system for accounts payable, designed to catch errors such as duplicate taxation. Additionally, the District developed a master spreadsheet to reconcile all grant claims monthly, ensuring each claim is reconciled both before and after submission, and upon revenue receipt. Anticipated date to complete the corrective action: March 2025

View Audit 362249 Questioned Costs: $1

Finding 571282 (2024-001)

None 2024

Valley Packaging Industries, Inc.

WI

Allowable Costs / Cost Principles

VPI is trying to reduce the amount of wages that require allocation to benefitting programs. More employees are now being charged directly to the programs they work in. As the number of employees decreases, the likelihood of finding a reasonable, cost effective solution increases. VPI is still trans...

VPI is trying to reduce the amount of wages that require allocation to benefitting programs. More employees are now being charged directly to the programs they work in. As the number of employees decreases, the likelihood of finding a reasonable, cost effective solution increases. VPI is still transitioning to the cloud based version of Business Central and may have some option available once this is completed. Person Responsible: Jim Patten, CFO Timing for Implementation: This will continue to be evaluated going forward

View Audit 362207

Finding 571250 (2024-001)

Material Weakness 2024

La Center School District

WA

Subrecipient Monitoring Allowable Costs / Cost Principles Material Weakness

CORRECTIVE ACTION PLAN FOR FINDINGS REPORTED UNDER UNIFORM GUIDANCE La Center School District No. 101 September 1, 2023 through August 31, 2024 This schedule presents the corrective action the District is planning to take for findings included in this report in accordance with Title 2 U.S. Code of ...

CORRECTIVE ACTION PLAN FOR FINDINGS REPORTED UNDER UNIFORM GUIDANCE La Center School District No. 101 September 1, 2023 through August 31, 2024 This schedule presents the corrective action the District is planning to take for findings included in this report in accordance with Title 2 U.S. Code of Federal Regulations (CFR) Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Finding ref number: 2024-001 Finding caption: The District did not have adequate internal controls and did not comply with time-and-effort requirements. Name, address, and telephone of District contact person: Gary McGarvie, Business Manager PO Box 1840 La Center, WA 98629 (360) 263-2131 Corrective action the auditee plans to take in response to the finding: (If the auditee does not concur with the finding, the auditee must list the reasons for disagreement). This letter is in response to the SAO Audit concern regarding the Special Education Time & Effort Attestation Finding. As discussed with the State Auditor, the issue stemmed from a clerical error in the activity box selection. We have since corrected the forms, with the original signer's initials added for verification. This error did not affect student services or funding. A review of prior year signatures supports the intent to check the correct box on the forms. To prevent similar issues in the future, we will pre-fill the forms and print them with the appropriate box selected for the necessary attestation. Moving forward, LCSD will continue to adhere to the guidelines provided by OSPI for attestation signatures and the correct use of fund codes. Anticipated date to complete the corrective action: 4/23/2025

View Audit 362175

Finding 571248 (2024-001)

Significant Deficiency 2024

Catholic Charities of Shiawassee and Genesee Counties

MI

Questioned Costs Allowable Costs / Cost Principles Significant Deficiency

Catholic Charities of Shiawassee and Genesee Counties Single Audit Corrective Action Statement Audit year ending September 30, 2024 Section III – Federal Findings and Questioned Costs Corrective Action Statement 2024-001 Allowability The corporation Board of Directors adopted and implemented the req...

Catholic Charities of Shiawassee and Genesee Counties Single Audit Corrective Action Statement Audit year ending September 30, 2024 Section III – Federal Findings and Questioned Costs Corrective Action Statement 2024-001 Allowability The corporation Board of Directors adopted and implemented the required policies to ensure documentation supporting the allocation of personnel costs to federal and state grant programs be maintained for a minimum of five years. The actual administrative and case management costs charged to the grant were within the allowed budget. To ensure an accurate reflection of the true cost of the program, time studies and allocations will be reexamined at least biannually.

View Audit 362157 Questioned Costs: $1

Finding 571136 (2024-001)

Significant Deficiency 2024

Washington County Youth Service Bureau and Boys and Girls Club

VT

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

Finding Number: 2024-001 Management’s Response The management of Elevate Youth Services (EYS) acknowledges the importance of having a formal, documented approval process for journal entries—one that is clear both in form and in practice. Context: Historically, the Executive Director and the Director...

Finding Number: 2024-001 Management’s Response The management of Elevate Youth Services (EYS) acknowledges the importance of having a formal, documented approval process for journal entries—one that is clear both in form and in practice. Context: Historically, the Executive Director and the Director of Finance jointly reviewed internal financial reports. During these reviews, items that appeared inconsistent were examined in detail to ensure proper coding, and adjustments were made as needed. However, documentation of this review process was not consistently maintained. Corrective Action Plan 1. Oversight at the Board Level In mid-FY25, EYS established a Board Finance Committee. One of its top priorities has been to ensure the development of an auditable review process for financial reports and key transactions, including journal entries. The committee began by reviewing FY24 journal entries, conducting an internal audit of randomly selected entries to assess supporting documentation and the appropriateness of coding. No issues were identified during this review. 2. Increased Staffing to Strengthen Internal Controls EYS has expanded its finance team to improve internal controls. The addition of new staff enables greater segregation of duties, allowing for multiple levels of review of journal entries at both the Director of Finance and Executive Director levels. 3. Review and Revision of Fiscal Policies To support the transition from cash basis to accrual basis financial reporting in FY24, financial reporting and review processes were performed, but often on an irregular basis. With the formation of the Board Finance Committee and the expansion of finance staff, EYS is now actively assessing and updating its fiscal policies to better align with the needs of the organization’s financial operations and reporting standards. EYS is committed to strengthening its financial practices and has fully embraced the implementation of a formal, consistent process for the review and approval of journal entries.

View Audit 362034

Finding 571013 (2024-002)

Material Weakness 2024

Geneva City Board of Education

AL

Questioned Costs Allowable Costs / Cost Principles Special Tests & Provisions § 200.303 § 200.326

Corrective Action Plan Item 2024-002 Special Tests and Provisions - Wage Rate Requirement Responsible Parties: Heath McInnis, Assistant Superintendent The Board will provide assurance that proper prevailing wage requirements are added to construction contracts being paid from Federal funds, and tha...

Corrective Action Plan Item 2024-002 Special Tests and Provisions - Wage Rate Requirement Responsible Parties: Heath McInnis, Assistant Superintendent The Board will provide assurance that proper prevailing wage requirements are added to construction contracts being paid from Federal funds, and that certified payrolls are maintained for each week in which construction work is performed. These changes will be enacted by July 31, 2025

View Audit 361965 Questioned Costs: $1

Finding 571012 (2024-001)

Significant Deficiency 2024

Geneva City Board of Education

AL

Allowable Costs / Cost Principles § 200.303

Corrective Action Plan Item 2024-001 Activities Allowed/Allowable Cost Responsible Parties: Erica Wright, Federal Programs Director Training on procurement processes of Geneva City Schools is being planned for mid-July for all employees with th authority to make purchases. The requirement of a purc...

Corrective Action Plan Item 2024-001 Activities Allowed/Allowable Cost Responsible Parties: Erica Wright, Federal Programs Director Training on procurement processes of Geneva City Schools is being planned for mid-July for all employees with th authority to make purchases. The requirement of a purchase order for all purchases will be a large focus. The Board will strengthen the current controls in place to ensure that all procedures have been followed prior to expenditures being encumbered. These changes will be enacted by July 31, 2025.

View Audit 361965

Finding 570986 (2024-001)

None 2024

Ability Connection Colorado, Inc.

CO

Allowable Costs / Cost Principles HUD Housing Programs Reporting

The Organization will strive to meet future reporting deadlines, as it has in the past. Greater emphasis will be placed on identifying issues that may result in delays to facilitate timely resolution of situations with parties outside of the Organization's control.

View Audit 361924

Finding 570868 (2024-001)

Significant Deficiency 2024

City of Corcoran

MN

Allowable Costs / Cost Principles Procurement, Suspension & Debarment Cash Management § 200.302

Finding 2024-001 Internal Controls Over Compliance for Cash Management, Allowable Costs, Procurement, and Conflicts of Interest 1. Explanation of Disagreement with Audit Finding There is no disagreement with the audit finding. 2. Action Planned in Response to Finding Subsequent to year-end, the City...

Finding 2024-001 Internal Controls Over Compliance for Cash Management, Allowable Costs, Procurement, and Conflicts of Interest 1. Explanation of Disagreement with Audit Finding There is no disagreement with the audit finding. 2. Action Planned in Response to Finding Subsequent to year-end, the City addressed this matter by formally adopting written policies meeting the referenced requirements of the Code of Federal Regulations. 3. Official Responsible The City Administrator is the official responsible for ensuring corrective action. 4. Planned Completion Date June 30, 2025. 5. Plan to Monitor Completion The City Council will be monitoring this Corrective Plan.

View Audit 361794

Finding 570860 (2024-007)

Material Weakness 2024

Polk County, Iowa

IA

Allowable Costs / Cost Principles Material Weakness Period of Performance § 200.303

Identifying Number: 2024-007 Corrective Actions Taken or Planned: Finding: 2024-007 Agency: internal Name of contact person and title: Keith Olson, Central Accounting Manager Anticipated completion date: Effective immediately / June 2025 Agency’s response: Concur: We agree with this finding. This gr...

Identifying Number: 2024-007 Corrective Actions Taken or Planned: Finding: 2024-007 Agency: internal Name of contact person and title: Keith Olson, Central Accounting Manager Anticipated completion date: Effective immediately / June 2025 Agency’s response: Concur: We agree with this finding. This grant has ended as of 6/30/25. In the future if we have fiscal agency services, we will ensure the that the program is being properly reviewed and administered.

View Audit 361781

Finding 570815 (2024-005)

None 2024

The Baby Fold

IL

Questioned Costs Allowable Costs / Cost Principles § 200.430

Condition: Out of forty payroll transactions tested, we noted two instances where hourly employees did not have their timecard approved by their supervisor. • Corrective Action Plan: o Each supervisor responsible for employees in their area will need to sign off on timecards through Paylocity. o If ...

Condition: Out of forty payroll transactions tested, we noted two instances where hourly employees did not have their timecard approved by their supervisor. • Corrective Action Plan: o Each supervisor responsible for employees in their area will need to sign off on timecards through Paylocity. o If a supervisor is unavailable, the person above them will need to sign off on the timecard. o A corrective action plan will be implemented for repeat offenders. • Responsible Person for Corrective Action Plan: Supervisors, directors, VP of the program, HR and Finance • Implementation Date for Corrective Action Plan: July 1, 2025

View Audit 361760 Questioned Costs: $1

Finding 570797 (2024-001)

None 2024

Aids Healthcare Foundation

CA

Allowable Costs / Cost Principles § 200.430

Views of Responsible Officials and Planned Corrective Actions A. Improved Documentation for Basis of Cost Allocation for Employee Time Charges Per the Associate Director of Contract Accounting, the Foundation reviewed all the invoices on the 1st and 2nd quarters of 2025 and noted that there were no...

Views of Responsible Officials and Planned Corrective Actions A. Improved Documentation for Basis of Cost Allocation for Employee Time Charges Per the Associate Director of Contract Accounting, the Foundation reviewed all the invoices on the 1st and 2nd quarters of 2025 and noted that there were no other adjustments made relating to the invoices within the audit year ended December 31, 2024. To further strengthen internal controls for reimbursement requests, the Foundation will implement the following procedures: 1. Prior to submission of reimbursement requests to the funder, the Contracts Manager for each grant will review the supporting documents and invoice template to ensure only final and fully supported data is invoiced. 2. Continue the practice of reviewing salary costs allocated to each grant in the payroll system, with the percentage charged to the funder to ensure only fully supported costs are billed. B. Improved Documentation of Routinary Reviews of Employee Hours Charged to Grants Per the Associate Director of Contract Accounting, the Foundation has a process to review staff allocated to a grant to ensure that hours and salary costs are allocated correctly at least quarterly, but also additional adjustments and reclasses may be posted at year-end to ensure completeness and that all expenditures are posted in the correct SEFA period as part of the SEFA review process. C. Timecards Lacking Employee and Manager Approvals Per the Associate Director of Contract Accounting, the Foundation has a process in place to ensure that employees and managers approve timecards every pay period and will continue making enhancements to this process to ensure that gaps do not occur subsequently. Personnel responsible for implementation: Shibu Sam Position of responsible personnel: National Director of Contracts Date of Implementation: August 1, 2025

View Audit 361757

Finding 570664 (2024-001)

Material Weakness 2024

Royal School District No. 160

WA

Subrecipient Monitoring Allowable Costs / Cost Principles Material Weakness

The district acknowledges the finding regarding inadequate internal controls and non-compliance with time-and-effort requirements. We take this concern seriously and are fully committed to addressing them promptly to ensure we are following all applicable federal and state regulations. To do so, the...

The district acknowledges the finding regarding inadequate internal controls and non-compliance with time-and-effort requirements. We take this concern seriously and are fully committed to addressing them promptly to ensure we are following all applicable federal and state regulations. To do so, the district has taken the following steps: 1. Internal Controls: we are reviewing and improving our internal control procedures related to grant documentation and management. 2. Time-and-Effort Reporting: we are ensuring our policies are current and will be training staff to ensure time-and-effort documentation is accurate and up to date in accordance with federal and state guidelines. 3. Monitoring: we are enhancing our monitoring procedures to ensure we have consistent application of our internal controls across departments.

View Audit 361683

Finding 570660 (2024-002)

Material Weakness 2024

Tuerk House, Inc.

MD

Questioned Costs Allowable Costs / Cost Principles Period of Performance § 200.308 § 200.309 § 200.334 § 200.403

Tuerk House, Inc. recognizes the importance of maintaining compliance with federal grant requirements related to allowable costs and documentation standards. The Organization acknowledges the deficiencies identified in the areas of time and effort reporting and supporting documentation for expenditu...

Tuerk House, Inc. recognizes the importance of maintaining compliance with federal grant requirements related to allowable costs and documentation standards. The Organization acknowledges the deficiencies identified in the areas of time and effort reporting and supporting documentation for expenditures charged to grant programs. To address this finding, Tuerk House is taking the following corrective actions: ·Implementing a formal time and effort certification process that requires employees to certify actual time worked on federal grant activities on a regular basis, rather than relying on budgeted allocations. ·Developing a standardized cost allocation methodology that aligns with actual grant activity and is supported by verifiable documentation. ·Requiring that all expenditures charged to federal awards be supported by complete and accurate source documentation, including vendor invoices, timesheets, and approvals. ·Establishing a document retention policy consistent with 2 CFR § 200.334 to ensure all supporting records are retained for the required period and readily accessible for audit or review. Training sessions for program and finance staff will be conducted to ensure consistent understanding and application of these updated policies and procedures. Organization Contact Person Responsible for Corrective Action – Joseph Koehler, Director of Finance Anticipated Completion Date – June 30, 2025

View Audit 361681 Questioned Costs: $1

Finding 570587 (2024-001)

Material Weakness 2024

Niles City School District

OH

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

The treasurer will review the monthly invoices and will initial the invoices

View Audit 361623 Questioned Costs: $1

Finding 570581 (2024-004)

Significant Deficiency 2024

Boys & Girls Clubs of Northeast Ohio

OH

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

BGCNEO corrected the overbilling in June and July before the grant period closed. BGCNEO will have stronger controls around the grant period year ends to ensure double billings are less likely to occur.

View Audit 361612 Questioned Costs: $1

Finding 570575 (2024-001)

Significant Deficiency 2024

Rocking Horse Children's Health Center Dba Rocking Horse Center

OH

Questioned Costs Allowable Costs / Cost Principles Reporting § 200.430

Corrective Action Plan June 26, 2025 U.S. Department of Health and Human Services Health Resources and Services Administration Rocking Horse Community Health Center and Affiliate respectively submits the following corrective action plan for the year ended December 31, 2024. Clark, Schaefer, Hac...

Corrective Action Plan June 26, 2025 U.S. Department of Health and Human Services Health Resources and Services Administration Rocking Horse Community Health Center and Affiliate respectively submits the following corrective action plan for the year ended December 31, 2024. Clark, Schaefer, Hackett & Co. 14 East Main Street, Suite 500 Springfield, OH 45502 Audit period: January 1, 2024 – December 31, 2024 The findings from the June 26, 2025 schedule of findings and questioned costs are discussed below. The findings are numbered consistently with the numbers assigned in the schedule. FINDINGS – FEDERAL AWARD PROGRAM AUDITS Department of Health and Human Services 2024-001 Health Center Cluster Program – ALN # 93.527; Grant No. H2E Significant Deficiency: See Finding 2024-001 Recommendation: Management should strengthen its internal controls over payroll charges to federal awards by ensuring consistent adherence to its time and effort certification policies as well as conduct periodic reviews of payroll documentation to verify compliance with established policies and federal requirements. Action Taken: We concur with the recommendation and will implement formal policies and procedures around obtaining time and effort certifications by June 30, 2025.

View Audit 361604 Questioned Costs: $1

Finding 570574 (2024-003)

Significant Deficiency 2024

YWCA Madison, Inc.

WI

Questioned Costs Allowable Costs / Cost Principles § 200.403 § 200.436

YWCA Madison, Inc. respectfully submits the following corrective action plan for the year ended December 31, 2024. Name and address of independent public accounting firm: Wegner CPAs 2921 Landmark Place Suite 300 Madison, Wisconsin 53713 Audit period: January 1, 2024 – December 31, 2024 The findi...

YWCA Madison, Inc. respectfully submits the following corrective action plan for the year ended December 31, 2024. Name and address of independent public accounting firm: Wegner CPAs 2921 Landmark Place Suite 300 Madison, Wisconsin 53713 Audit period: January 1, 2024 – December 31, 2024 The findings from the December 31, 2024 schedule of findings and questioned costs are discussed below. The findings are numbered consistently with the numbers assigned in the schedule. FINANCIAL STATEMENT FINDINGS SIGNIFICANT DEFICIENCY 2024-001 Recommendation: Management should implement procedures to ensure continuity of key financial controls during periods of personnel transition. This includes assigning interim reviewers, establishing clear handover protocols, and enforcing timely documentation of reviews to maintain financial oversight. Action Taken: Under the leadership of our new fractional CFO and outsourced accounting firm, we have implemented an accounting close and financial reporting management system using ClickUp. Each task impacting key financial controls now has both a designated preparer and reviewer. The system automatically tracks and displays the completion status of each control. Further review of financial schedules is documented through Google Drive approvals. Transitioning from manual to system-driven documentation ensures that, during staffing changes, task reassignments are more visible to all responsible team members. It is important to note that, due to capacity constraints during the transition, immediate reassignment of responsibilities was not feasible. However, once new team members were onboarded, a cumulative review of the period was conducted to ensure the completeness and accuracy of the financial information—ultimately reflected in an unmodified financial audit opinion. MATERIAL WEAKNESS 2024-002 Recommendation: Assign clear responsibility for maintaining and reviewing the monitoring checklist. Management should establish a recurring schedule (e.g., monthly or quarterly) for checklist reviews and ensure the results are documented and retained for accountability and audit purposes. Action Taken: The new fractional CFO, Grants & Compliance Director, and CEO have revised the monitoring checklist to separate financial and compliance controls, as these operate on different schedules. Financial controls have been integrated into the financial management project system in ClickUp. Compliance controls will be maintained within the grant management system and embedded into the grant management and reporting processes. FEDERAL AWARD FINDINGS DEPARTMENT OF TRANSPORTATION STATE OF WISCONSIN DEPARTMENT OF TRANSPORTATION 2024-003 Formula Grants for Rural Areas and Tribal Transit Program — Assistance Listing No. 20.509 Recommendation: Management should conduct a review of depreciation charges for the current and future years to ensure that federally funded assets are excluded from depreciation allocations to federal programs. Action Taken: We have added a new depreciation expense account to distinguish between allowable and non-allowable depreciation expenses in grant expenditure allocations. If there are questions regarding this plan, please call Tania Ibarra, CPA, at 608.347.6747. Sincerely, Geraldine Paredes Vásquez CEO gpvasquez@ywcamadison.org

View Audit 361592 Questioned Costs: $1

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