Corrective Action Plans

Finding 528830 (2024-001)

Material Weakness 2024

AZ

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

Program Name/Assistance Listing Title: Indian School Equalization Assistance Listing Number: 15.042 Contact Persons: Carmen Jodie, Principal; Patrice Henderson, Business Manager Anticipated Completion Date: June 30, 2025 Planned Corrective Action: The School previously experienced a high turnover ra...

Program Name/Assistance Listing Title: Indian School Equalization Assistance Listing Number: 15.042 Contact Persons: Carmen Jodie, Principal; Patrice Henderson, Business Manager Anticipated Completion Date: June 30, 2025 Planned Corrective Action: The School previously experienced a high turnover rate in the Business Office and Administration. The School had a Principal and Acting Principals throughout School Year 2023‐ 24. The business office has obtained outside consulting services to assist in reconciliation and financial processes. The business office will continue to work with other departments in making sure they submit documentation accurately and timely. The business office will continue to work on improving the following areas: travel reimbursement, receiving reports, timely payment of bills, payment of goods, journal entries, purchase orders; per the findings listed. A Credit Card User Agreement form will be developed to support the school’s Credit Card Policies and Procedures.

View Audit 346886

Finding 528824 (2024-002)

Material Weakness 2024

Frankton Lapel Community School Corporation

IN

Allowable Costs / Cost Principles School Nutrition Programs Internal Control / Segregation of Duties § 200.303 § 200.430

Information on the federal program : Subject: Child Nutrition Cluster - Internal Controls Federal Agency: Department of Agriculture Federal Program: School Breakfast Program, National School Lunch Program Assistance Listing Number: 10.553, 10.555 Federal Award Numbers and Years (or Other Identifying...

Information on the federal program : Subject: Child Nutrition Cluster - Internal Controls Federal Agency: Department of Agriculture Federal Program: School Breakfast Program, National School Lunch Program Assistance Listing Number: 10.553, 10.555 Federal Award Numbers and Years (or Other Identifying Numbers): FY2023, FY2024 Pass-Through Entity: Indiana Department of Education Compliance Requirement: Activities Allowed or Unallowed, Allowable Costs/Cost Principles Audit Finding: Material Weakness Context : For 18 selections, in a sample of 40 payroll transactions, the School Corporation based the employees’ time charged to the grant on an annual time and effort log. The employee’s time was split with a non-federal fund. The School Corporation allocated the employee’s time based on a time and effort log completed in September of each year which was reviewed by the Superintendent. The School Corporation did not complete time and effort logs more frequently than annually to ensure the amounts being charged to food service were based on worked performed for each payroll period. Contact Person Responsible for Corrective Action: Candace McDonald Contact Phone Number: 765-734-1261 Views of Responsible Official: We concur with the finding. Description of Corrective Action Plan: Instead of doing a time study, we will fully implement an analysis of percentages paid by the school lunch program on a monthly basis. Anticipated Completion Date: Beginning of April 2025, fully implemented and corrected by the end of May 2025.

View Audit 346885

Finding 528817 (2024-003)

Material Weakness 2024

Clinton Prairie School Corporation

IN

School Nutrition Programs Internal Control / Segregation of Duties Allowable Costs / Cost Principles § 200.303

FINDING 2024-003 Information on the federal program: Subject: Child Nutrition Cluster - Internal Controls Federal Agency: Department of Agriculture Federal Program: School Breakfast Program, National School Lunch Program Assistance Listing Number: 10.553, 10.555 Federal Award Numbers and Years (or...

FINDING 2024-003 Information on the federal program: Subject: Child Nutrition Cluster - Internal Controls Federal Agency: Department of Agriculture Federal Program: School Breakfast Program, National School Lunch Program Assistance Listing Number: 10.553, 10.555 Federal Award Numbers and Years (or Other Identifying Numbers): FY2023, FY2024 Pass-Through Entity: Indiana Department of Education Compliance Requirement: Activities Allowed or Unallowed, Allowable Costs/Cost Principles Audit Finding: Material Weakness Context: Crowe noted there was no review of all 35 timecards selected for testing in a sample of 40 payroll transactions. The other 5 sample payroll transactions for salaried employees were tested without error. Contact Person Responsible for Corrective Action: Contact Phone Number: • Linda Burkhalter, 765-659-1339, ext 113 Views of Responsible Official: We concur with the finding. Description of Corrective Action Plan: • We will have dual control on all timesheets. Anticipated Completion Date: • 3/17/2025

View Audit 346869

Finding 528783 (2024-002)

Material Weakness 2024

Latin American Association, Inc.

GA

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

We concur with this finding and have implemented measures to mitigate the repetition of additional occurrences. In July 2023, a new policy was implemented that requires employees to record their time as a percentage across all grants in which they work. The employee records this allocation at least ...

We concur with this finding and have implemented measures to mitigate the repetition of additional occurrences. In July 2023, a new policy was implemented that requires employees to record their time as a percentage across all grants in which they work. The employee records this allocation at least weekly within a time keeping software system. Employees and supervisors are now required to review and acknowledge payroll allocations across grants by signing weekly timesheets. Timesheets will be retained and used as backup by the Grants Department when invoicing the Grantor for expense reimbursement. In addition, we have updated our Policy and Procedures Manual to reflect this policy. An additional policy was implemented in November 2024 requiring one Accounting staffer and one Grant staffer review employee timecards versus invoices prior to submission. The Policy and Procedures Manual has been updated to reflect this policy. Responsible Parties: Kimberly Yoo, CFO Whitney Gillis, Director of RD Mary Guzman, Accounting Supervisor Date Corrected: November 2024

View Audit 346843

Finding 528781 (2024-001)

Significant Deficiency 2024

Drew Central School District

AR

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

Ø The CFO, Stephanie Goad and CND, Meredith Shirey will take more care to ensure that all expenditures are properly classified per the APSCN manual. If at any time the CFO and CND are unsure if an expense is allowable, the CND will contact the Child Nutrition Unit at DESE for guidance prior to purc...

Ø The CFO, Stephanie Goad and CND, Meredith Shirey will take more care to ensure that all expenditures are properly classified per the APSCN manual. If at any time the CFO and CND are unsure if an expense is allowable, the CND will contact the Child Nutrition Unit at DESE for guidance prior to purchasing. The District will contact DESE for guidance regarding this matter and will implement proper controls over program expenditures moving forward.

View Audit 346841 Questioned Costs: $1

Finding 528779 (2024-003)

Significant Deficiency 2024

The Salvation Army Golden State Division

CA

Allowable Costs / Cost Principles § 200.430

Corrective Action Plan: The Division will implement a more detailed and precise review process to ensure the accuracy and completeness of the reimbursement request. Anticipated Date: April 2025 Name of Person Responsible for Implementation: Al Agpoon, Controller

View Audit 346837

Finding 528773 (2024-002)

Material Weakness 2024

Saline County, Nebraska

NE

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

County will implement procedures to ensure reporting is completed correctly.

View Audit 346806

Finding 528728 (2024-002)

Significant Deficiency 2024

Fort Worth Transportation Authority

TX

Questioned Costs Allowable Costs / Cost Principles Cash Management

Finding 2024-002: Matching Major Federal Program: Federal Transit Cluster Compliance Requirements: Allowable Costs and Cost Principles, Cash Management, Matching Response: Concur: An inaccurate reimbursement rate was applied causing overpayment of $613,075. Due to the inaccuracy of the percentage ra...

Finding 2024-002: Matching Major Federal Program: Federal Transit Cluster Compliance Requirements: Allowable Costs and Cost Principles, Cash Management, Matching Response: Concur: An inaccurate reimbursement rate was applied causing overpayment of $613,075. Due to the inaccuracy of the percentage rate applied in this drawdown, Trinity Metro will actively reinforce its internal control processes to ensure detailed reviews related to cost reimbursement rates are accurately identified monthly by those who are authorized to process drawdowns. Implementation will take place immediately. Steps that will be taken include: 􀁸 Dual-Approval Process for Reimbursement Requests: Both the Grants Department and Accounting will confirm the accuracy of the reimbursement rate before submission. 􀁸 Grant Agreement Review Process: Both the Grants Department and Accounting will jointly review grant agreements before submitting reimbursement requests to ensure that the correct rate if applied. Date of Completion: This action plan will go into effect immediately. Person Responsible to Ensure Completion: Contact Person: Greg Jordan, Chief Financial Officer Contact Person: Eva Williams, Director of Budget and Grants, Finance

View Audit 346790 Questioned Costs: $1

Finding 528726 (2024-004)

Material Weakness 2024

Evansdale Municipal Housing Authority

IA

HUD Housing Programs Internal Control / Segregation of Duties Allowable Costs / Cost Principles

2024-004 Activities Allowed - Management Agrees with Finding. EHMA will formally adopt an entity wide budget for the Fiscal Year beginning July 1, 2025 to include the Housing Choice Voucher (HCV) Program and revenue for reimbursement for shared expenses with Green Roof Properties. Additionally, the...

2024-004 Activities Allowed - Management Agrees with Finding. EHMA will formally adopt an entity wide budget for the Fiscal Year beginning July 1, 2025 to include the Housing Choice Voucher (HCV) Program and revenue for reimbursement for shared expenses with Green Roof Properties. Additionally, the Board of Directors for Green Roof Properties will adopt a budget for the upcoming FY. EMHA will also work with the fee accountant to incorporate the adopted budget and report on variances into the monthly financial reports they produce. Furthermore, the Board will be provided a breakdown of the allocation of expenses to each program when presenting disbursements for their approval monthly.

View Audit 346789

Finding 528723 (2024-002)

Significant Deficiency 2024

North Miami Community Schools

IN

Questioned Costs Allowable Costs / Cost Principles Internal Control / Segregation of Duties § 200.303 § 200.430

Context: For 4 selections, in a sample of 40 payroll transactions, the School Corporation did not have time and effort logs to support the portion of the employees’ time charged to the grant. The employees’ time was split with a non-federal fund; however, the School Corporation did not have support ...

Context: For 4 selections, in a sample of 40 payroll transactions, the School Corporation did not have time and effort logs to support the portion of the employees’ 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 ESSER III fund. The sample amount charged to the grant for split-funded employees without time and effort logs was $1,375. Contact Person Responsible for Corrective Action: Serena Francis, Business Manager Contact Phone Number: 765-985-3891 Views of Responsible Official: We concur with the finding. Description of Corrective Action Plan: We will implement time and effort logs for all split-funded employees. Currently we do not have any split funded employees. Anticipated Completion Date: 3/1/2025

View Audit 346755 Questioned Costs: $1

Finding 528722 (2024-001)

Significant Deficiency 2024

Froedtert Health, Inc. and Affiliates

WI

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

Corrective Actions Relating to Federal Awards: Finding 2024 001 Lack of review and approval of Time and Effort Reporting Corrective Actions Manual processes will be ...

Corrective Actions Relating to Federal Awards: Finding 2024 001 Lack of review and approval of Time and Effort Reporting Corrective Actions Manual processes will be reinforced regarding time and effort reporting (T/E) and Operations (Ops) will be instructed to hold each drawdown until all processes are completed and approved by the Grant Program Manager. Grant Program Manager will also conduct more frequent internal monitoring of completeness of records, and create an e-learning for all team members involved in the grant process regarding the steps that need to be followed. The Froedtert ThedaCare Health (FTCH) compliance team has created a proposal to implement a Grant Management Software solution. The software solution will have mechanisms for facilitating automated and streamlined processes to support time and effort documentation requirements. Specific actions to be taken include: Party Responsible Laurie Moore, Grant Program Manager Corrective Action Reinforce T/E and implement hold practice with each Ops owner expensing salaries Anticipated Completion Date April 1, 2025 Party Responsible Laurie Moore, Grant Program Manager Corrective Action Increase internal monitoring frequency for grants expensing salaries Anticipated Completion Date Beginning April 15, 2025 and ongoing thereafter Party Responsible Laurie Moore, Grant Program Manager Corrective Action Create e-learning Anticipated Completion Date Create Learning: May 1, 2025 Implementation: June 1, 2025 (If not able to do e-learn, will publish PowerPoint)

View Audit 346753

Finding 528712 (2024-001)

Significant Deficiency 2024

City of Glendale, Arizona

AZ

Procurement, Suspension & Debarment Allowable Costs / Cost Principles HUD Housing Programs

COVID-19 Coronavirus State and Local Fiscal Recovery Fund– Assistance Listing No. 21.027 Recommendation: The City should enhance or modify its internal controls over suspension and debarment, as necessary, to ensure compliance with suspension and debarment provisions. Explanation of disagreement wi...

COVID-19 Coronavirus State and Local Fiscal Recovery Fund– Assistance Listing No. 21.027 Recommendation: The City should enhance or modify its internal controls over suspension and debarment, as necessary, to ensure compliance with suspension and debarment provisions. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: We provided training to procurement staff about the suspension and debarment requirements of 2 CFR 200.214. Further, we expanded language in the City’s formal soliciation template regarding suspension and debarment and added a specifc step on our solitication timeline checklist to perform SAM checks. Name(s) of the contact person(s) responsible for corrective action Levi Gibson, Budget and Finance Director Planned completion date for corrective action plan: December 2024

View Audit 346727

Finding 528639 (2024-002)

Significant Deficiency 2024

Southampton Union Free School District

NY

Allowable Costs / Cost Principles Cash Management § 200.1

2024-002. Payroll (Improper Payments) United States Department of Education, Passed-through New York State Department of Education: Education Stabilization Funds COVID 19: American Rescue Plan – Elementary and Secondary School Emergency Relief ALN: 84.425U Condition: During the current year, the aud...

2024-002. Payroll (Improper Payments) United States Department of Education, Passed-through New York State Department of Education: Education Stabilization Funds COVID 19: American Rescue Plan – Elementary and Secondary School Emergency Relief ALN: 84.425U Condition: During the current year, the audit identified instances of duplicate salary payments being charged to Federal awards. These payments resulted in certain employees being charged to multiple grants for federal reimbursement. Our audit review revealed that payroll records including transactions where employees’ salaries were recorded more than once, leading to noncompliance with 2 CFR §200.1 regarding improper payments. Planned Corrective Action: The District acknowledges the findings and will implement stronger internal controls to ensure that salary payments are accurately recorded and reconciled to prevent duplicate submissions of reimbursement to the federal funding source. In addition, management is in the process of contacting the funding award agency to determine whether reimbursement for the improper payments charged to the grant is necessary. Responsible Contact Person: Jean Mingot Assistance Superintendent for Business Southampton Union Free School District 70 Leland Lane Southampton, New York 11968-5089 Anticipated Completion Date: June 30, 2025

View Audit 346607

Finding 528638 (2024-001)

Significant Deficiency 2024

Southampton Union Free School District

NY

Allowable Costs / Cost Principles § 200.430

2024-001. Payroll (Allowable Costs/Cost Principles) United States Department of Education, Passed-through New York State Department of Education: Special Education Cluster Special Education Grants to States ALN: 84.027 Condition: Subpart I, 2 CFR §200.430 of the Uniform Guidance requires that charge...

2024-001. Payroll (Allowable Costs/Cost Principles) United States Department of Education, Passed-through New York State Department of Education: Special Education Cluster Special Education Grants to States ALN: 84.027 Condition: Subpart I, 2 CFR §200.430 of the Uniform Guidance requires that charges to “Federal awards for salaries and wages must be based on records that accurately reflect the performed. The documentation should support the distribution of the employee’s compensation among specific activities if the employees work on more than one Federal award, or a Federal award and non-Federal award. The preparation of personnel activation reports (PARs) or periodic certifications or the equivalent is the most effective way to comply with this requirement. During the current year, it was noted that in some instances, the District’s payroll verification forms were either not reviewed or signed by either the employer and employee, and they did not accurately reflect the actual allocation that was charged to the grant in order to comply with Subpart I, 2 CFR §200.430. Planned Corrective Action: The District acknowledges the finding and will thoroughly review and maintain the federal personnel activity reports to ensure each employee’s salary, or other forms of compensation, are properly approved and signed off by employer and employee. Additionally, the District will ensure that the amount charged to the grant corresponds to the federal program to which the employees’ earnings were allocated, based on time and effort, in compliance with Subpart I, 2 CFR §200.430. Responsible Contact Person: Jean Mingot Assistance Superintendent for Business Southampton Union Free School District 70 Leland Lane Southampton, New York 11968-5089 Anticipated Completion Date: June 30, 2025

View Audit 346607

Finding 528607 (2024-006)

Material Weakness 2024

Navajo Health Foundation - Sage Memorial Hospital Inc.

AZ

Allowable Costs / Cost Principles Internal Control / Segregation of Duties Reporting § 200.303 § 200.400 § 200.475

Management’s Response: The Finance team of Financial Controller and Senior Accountant are responsible for the reconciling grant revenue, grant receivables and unearned revenue accounts monthly. Proper monitoring and accurate documentation of COVID-19 related activities, including any and all expendi...

Management’s Response: The Finance team of Financial Controller and Senior Accountant are responsible for the reconciling grant revenue, grant receivables and unearned revenue accounts monthly. Proper monitoring and accurate documentation of COVID-19 related activities, including any and all expenditures will be tracked, properly documented and reconciled. Training and monitoring of grant activity will continue in fiscal year 2025. This will be completed by September 30, 2025. Estimated Completion Date: September 30, 2025 Responsible Position: Brochelle Shirley, Financial Controller, and Dawn Bowens, Senior Accountant

View Audit 346589

Finding 528561 (2024-003)

Significant Deficiency 2024

Catholic Reflief Services - US Conference of Catholic Bishops

MD

Questioned Costs Allowable Costs / Cost Principles Procurement, Suspension & Debarment § 200.303 § 200.309 § 200.403

3.1.Ensure that the inventory expenses charged to the federal program are allowable within the period of performance. Responsible Official: Head of Operations, Supply Chain Managers, DRD Operations, SCM RTAs, Completion Date: September 30, 2025

View Audit 346571 Questioned Costs: $1

Finding 528559 (2024-002)

Significant Deficiency 2024

Catholic Reflief Services - US Conference of Catholic Bishops

MD

Allowable Costs / Cost Principles Reporting Subrecipient Monitoring § 200.303 § 200.309 § 200.403

2.1 Ensure timely reconciliation of inventory distributions in order to record the transactions in the correct accounting period. Responsible Official: Head of Operations, Supply Chain Managers, DRD Operations, SCM RTAs, Completion Date: September 30, 2025

View Audit 346571

Finding 528521 (2024-003)

Material Weakness 2024

Gary Community School Corporation

IN

Questioned Costs Allowable Costs / Cost Principles School Nutrition Programs § 200.303 § 200.403 § 200.430

FINDING 2024-003 Finding Subject: Child Nutrition Cluster – Activities Allowed or Unallowed, Allowable Costs/Cost Principles Summary of Finding: Material Weakness, Modified Opinion Contact Person Responsible for Corrective Action: Linda Zaborowski, CFO Contact Phone Number and Email Address: (219) 8...

FINDING 2024-003 Finding Subject: Child Nutrition Cluster – Activities Allowed or Unallowed, Allowable Costs/Cost Principles Summary of Finding: Material Weakness, Modified Opinion Contact Person Responsible for Corrective Action: Linda Zaborowski, CFO Contact Phone Number and Email Address: (219) 881-5536 lzaborowski@garycsc.k12.in.us Views of Responsible Officials: We concur with the finding Description of Corrective Action Plan: Gary Community School Corporation is committed to strengthening internal controls to ensure compliance with federal regulations governing the Child Nutrition Cluster programs. To address the deficiencies identified in the audit, we will implement a structured system for reviewing and approving all financial transactions related to the food service program. Moving forward, all invoices submitted by the Food Service Management Company (FSMC) will require detailed supporting documentation before payment is processed. The Food Service Director will conduct thorough reviews to verify the accuracy and allowability of costs, ensuring that only eligible expenses are charged to the program. Additionally, a standardized checklist will be developed to confirm compliance with federal cost principles. To address payroll-related deficiencies, all employees whose salaries are funded by the Child Nutrition Cluster will be required to maintain detailed time and effort records that document their work on federal and non-federal activities. The Payroll Department will not process payments from federal funds without proper documentation, and approval from the CFO/Food Service Director. To prevent future occurrences of questioned costs, the Business Office Coordinator will carefully review all FSMC invoices to verify that adequate documentation is provided, and any unallowable costs, including sales tax, are identified and excluded before payment is made. Moving forward, internal procedures will include a detailed verification process to ensure that only allowable costs are charged to the program. Anticipated Completion Date: Gary Community School Corporation will implement this procedure by July 2025.

View Audit 346557 Questioned Costs: $1

Finding 528447 (2024-001)

Significant Deficiency 2024

World Relief Corporation of National Association of Evangelicals

MD

Questioned Costs Allowable Costs / Cost Principles Reporting § 200.403

Action Taken: We have taken several steps to prevent this sort of error in the future:We immediately reviewed this error with the office in question and made sure they understood the correct process of capitalizing prepaid expenses and expensing each month  This is a transaction that was made in...

Action Taken: We have taken several steps to prevent this sort of error in the future:We immediately reviewed this error with the office in question and made sure they understood the correct process of capitalizing prepaid expenses and expensing each month  This is a transaction that was made in error, guidance for handling prepaid expenses already exists. We reviewed this existing guidance around the correct way to handle prepaid expenses with relevant finance staff.  At the end of each fiscal year offices will be required to complete a full check with finance signoff for prepaid expenses and agree that everything that is prepaid has been communicated to finance.  There is an existing process for grant closeout that provides additional review of expenses that would detect this sort of expense and ensure it is recorded correctly, however, in this instance it was a multi-year grant and so the grant was not closed out and fiscal year end.  As this is a multi-year grant, we corrected this error in FY25 and returned the funds to the grantor for the expense that had not yet been incurred.

View Audit 346462 Questioned Costs: $1

Finding 528438 (2024-006)

Significant Deficiency 2024

New Mexico Highlands University

NM

Student Financial Aid Allowable Costs / Cost Principles Significant Deficiency

Auditor’s Recommendation: We recommend the University strengthen the controls in place to provide assurance that proper review occurs and retain documentation needed for an audit. Views of Responsible Officials and Planned Corrective Action: In regards to the Stipends sample, the University cannot d...

Auditor’s Recommendation: We recommend the University strengthen the controls in place to provide assurance that proper review occurs and retain documentation needed for an audit. Views of Responsible Officials and Planned Corrective Action: In regards to the Stipends sample, the University cannot determine the accuracy of the audit without seeing the sample materials with the deficiencies. Our corrective action at this time is as follows: We will evaluate our current process and look for a breakdown in the process. We will then revise the process and policy accordingly. In all cases, ORSP will review for compliance and we will monitor the processes for potential deficiencies throughout FY25. Timeline and Estimated Completion Date: June 30, 2025 Responsible Party: Office of Research and Sponsored Projects and Grant Principal Investigators.

View Audit 346437

Finding 528365 (2024-003)

Material Weakness 2024

New Mexico Highlands University

NM

Questioned Costs Student Financial Aid Allowable Costs / Cost Principles § 200.303 § 200.403 § 200.430

Auditor’s Recommendation: We recommend the University strengthen the controls in place to provide assurance that proper review occurs and retain documentation needed for an audit. Views of Responsible Officials and Planned Corrective Action: Management agrees that there have been significant challen...

Auditor’s Recommendation: We recommend the University strengthen the controls in place to provide assurance that proper review occurs and retain documentation needed for an audit. Views of Responsible Officials and Planned Corrective Action: Management agrees that there have been significant challenges with the Paycom system and the approval of the contracts. We are currently working on signature workflows to ensure proper approval for our student, staff and faculty employees. We have begun a team effort among staff in following offices : HR , ORSP, BO, AA, ITS and VPFA. We are working to ensure that all personnel in the chain of the workflow know what signatures are required on different types of contracts. We plan to train relevant staff to recognize when appropriate approvals are not in place and return contracts and timesheets for proper approval. Supervisor training is planned for January 27, 2025 to ensure that supervisors as well as employees take responsibility. In regards to the time and effort, we need a software solution that automatically generates these reports for us and payroll information ties to the payroll system and general ledger. At this time the majority of all the reports generated out of Paycom require intensive manual work in multiple offices. The BO and ORSP will be working on IDC identifying issues and determining solutions. Timeline and Estimated Completion Date: Changes will be implemented in January to be completed by June 30, 2025. Responsible Party: Office of Research and Sponsored Projects, Comptroller and Director of Human Resources

View Audit 346437 Questioned Costs: $1

Finding 528364 (2024-010)

Significant Deficiency 2024

Penasco Independent School District

NM

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

Recommendation We recommend that for hourly employees, both the employee and the supervisor sign the timecard, either manually or electronically, to provide evidence that the employee takes responsibility for the hours worked and the supervisor can attest to the hours worked. Management Response Co...

Recommendation We recommend that for hourly employees, both the employee and the supervisor sign the timecard, either manually or electronically, to provide evidence that the employee takes responsibility for the hours worked and the supervisor can attest to the hours worked. Management Response Corrective Action: The District has actively been working with staff and management to review and sign their timesheets before processing payroll. Due Date of Completion: June 30, 2025 Responsible Party(ies): Business Manager

View Audit 346420

Finding 528363 (2024-009)

Significant Deficiency 2024

Penasco Independent School District

NM

Procurement, Suspension & Debarment Allowable Costs / Cost Principles Significant Deficiency

Recommendation We recommend that the District follow the guidance in NM PED's PSAB Supplement 13, Purchasing. Management Response Corrective Action: A purchasing policy is being developed by the district so the staff can have a clear understanding of the expectations regarding the purchasing proces...

Recommendation We recommend that the District follow the guidance in NM PED's PSAB Supplement 13, Purchasing. Management Response Corrective Action: A purchasing policy is being developed by the district so the staff can have a clear understanding of the expectations regarding the purchasing process. The District will work with employees to follow the policy and obtain purchase orders before receiving items and/or placing orders. Due Date of Completion: June 30, 2025 Responsible Party(ies): Business Manager

View Audit 346420

Finding 528348 (2024-005)

Material Weakness 2024

Union School Corporation

IN

Subrecipient Monitoring Allowable Costs / Cost Principles Material Weakness § 200.303 § 200.309 § 200.461

Context: The School Corporation pays one hundred percent of its Special Education Cluster funding to one service provider. From review of the expense population, we noted 2 payments to the service provider where the service provider was not paid until after liquidation date of December 29, 2023. Th...

Context: The School Corporation pays one hundred percent of its Special Education Cluster funding to one service provider. From review of the expense population, we noted 2 payments to the service provider where the service provider was not paid until after liquidation date of December 29, 2023. The School Corporation did not pay the service provider until April 30, 2024 for $258,488 for the services provided. Contact Person Responsible for Corrective Action: Abigail Lindsey Contact Phone Number: 765-853-5464 Views of Responsible Official: We concur with the finding. Description of Corrective Action Plan: Corporation will have all Special Ed funds paid before liquidation date. Anticipated Completion Date: 12/29/25

View Audit 346388

Finding 528342 (2024-003)

Material Weakness 2024

Union School Corporation

IN

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

Context: The School Corporation pays one hundred percent of its Special Education Cluster funding to one service provider. For 1 of the 5 sample payments to the service provider, the School Corporation only reviewed a summary level invoice from the service provider which did not include the underly...

Context: The School Corporation pays one hundred percent of its Special Education Cluster funding to one service provider. For 1 of the 5 sample payments to the service provider, the School Corporation only reviewed a summary level invoice from the service provider which did not include the underlying support or detail of the reimbursable costs incurred by the service provider. The sample amount paid to the service provider without underlying support or detail was $1,138,684. The lack of underlying support was isolated to the 22611-122-PN01 grant. The School Corporation received the support for all other payments tested. Contact Person Responsible for Corrective Action: Abigail Lindsey Contact Phone Number: 765-853-5464 Views of Responsible Official: We concur with the finding. Description of Corrective Action Plan: Corporation and INDLS has already put in place to receive a detailed invoice for Special Education funds. Going forward INDLS will provide detailed invoices for all reimbursable costs. Anticipated Completion Date: 05/01/2025

View Audit 346388

Corrective Action Plans

Filters