Corrective Action Plans

Finding 566887 (2024-002)

Significant Deficiency 2024

WA

Subrecipient Monitoring Allowable Costs / Cost Principles § 200.332

Finding 2024-002: TCFB was negligent in monitoring sub-recipients during the grant agreement period. The Problem: During testing, the auditors noted that one of the three sub-recipients tested did not receive a site visit during the grant agreement period. Established standard Three programs requir...

Finding 2024-002: TCFB was negligent in monitoring sub-recipients during the grant agreement period. The Problem: During testing, the auditors noted that one of the three sub-recipients tested did not receive a site visit during the grant agreement period. Established standard Three programs require sub-agency monitoring visits. EFAP (3 sub-agencies) requires each sub-agency to be monitored on site once each biennium (2 year agreement period). TEFAP (40 sub-agencies) requires that a minimum of 10% of sub-agencies be monitored on site once each year. CSFP (3 sub-agencies) requires each agency to be monitored on site once every 2 years. Actions to be taken - While the EFAP requirement was used for the test above, this plan will include monitoring visits for all 3 programs. - An additional staff member will be added to the contract team who will be responsible for on-site monitoring visits once trained. - Plan out which agencies should be visited in which years. - Create a shared calendar that includes the time period visits should take place in, when to reach out to sub-agencies to schedule visits, who will conduct visits. Action assignments - The entire contract team will work together to create the calendar. - Contracts Manager and Commodities Coordinator will plan out which sub-agencies to visit, and when to visit them. - Contracts Manager and new team member will schedule and conduct the first 2 site reviews, after which the new team member will take the lead with support from the others. Timeline - The additional contract team member will be added July 1st, 2025, but will be available for planning meetings before then. - Ordered list of sub-agency visits will be completed by the end of May 2025. - Shared calendar will be fully completed by the end of June 2025. Verify implementation - The Contracts Manager will report progress of monitoring visits to CEO/ED quarterly.

View Audit 359751

Finding 566871 (2024-001)

Significant Deficiency 2024

Thurston County Food Bank

WA

Questioned Costs Allowable Costs / Cost Principles Cash Management § 200.430

Finding 2024-001: Internal controls and adherence to compliance were not followed with regards to an appropriate level of approval of management that is charged to the Coronavirus State and Local Recovery Funds and the Food Cluster Program. The Problem: CEO timesheets were not reviewed or approved b...

Finding 2024-001: Internal controls and adherence to compliance were not followed with regards to an appropriate level of approval of management that is charged to the Coronavirus State and Local Recovery Funds and the Food Cluster Program. The Problem: CEO timesheets were not reviewed or approved by our Board of Directors in 2024 so proper oversight was not being done. Corrective Action: The procedure we had in place was that our Board Chairperson would review and approve our CEO timesheet entries each payroll period. This procedure was followed in prior years. In January 2024 the Chairperson changed to a new Chairperson and this person did not receive proper training on how to approve the CEO timesheet. When the auditors brought our attention to this situation in March of 2025, we immediately contacted the current and previous Board Chairs, HR Director, and Interim CEO. They worked together to train the present Board Chairperson on how to access the CEO timesheet entries, review them and approve them in a timely manner. This process is being used every pay period and our reports show that all timesheets are approved. We also printed out all timesheets going back to January and had the Board Chair review and sign those copies. Going forward we will be sure that proper training is done when there is a change in either the Board Chair or the CEO/Ed position.

View Audit 359751 Questioned Costs: $1

Finding 566865 (2024-007)

Material Weakness 2024

Harris-Stowe State University

MO

Questioned Costs Subrecipient Monitoring Allowable Costs / Cost Principles § 200.403

Finding 2024-007 Personnel Responsible for Corrective Action: Grant Principal Investigators and Grant Accountant – Charme Benson Anticipated Completion Date: June 30, 2025 Corrective Action Plan: All expenses must be supported by documentation and comply with Generally Accepted Accounting Princ...

Finding 2024-007 Personnel Responsible for Corrective Action: Grant Principal Investigators and Grant Accountant – Charme Benson Anticipated Completion Date: June 30, 2025 Corrective Action Plan: All expenses must be supported by documentation and comply with Generally Accepted Accounting Principles (GAAP) standards. A pre-review checklist will be required for all charges against FIPSE grants. Prepaid items must be recorded in the prepaid ledger and amortized appropriately. Documentation will be retained in alignment with the University Record Retention policy. Management will implement a formal review and approval process to ensure that all allowable costs are verified for compliance with applicable regulations and approved by designated personnel prior to reimbursement or payment.

View Audit 359750 Questioned Costs: $1

Finding 566857 (2024-006)

Significant Deficiency 2024

Harris-Stowe State University

MO

Allowable Costs / Cost Principles Subrecipient Monitoring Cash Management

Finding 2024-006 Personnel Responsible for Corrective Action: Director of Sponsored Programs- Eva Kain, Director of Title III – Dr. Neidra Butler and Grant Accountant – Charme Benson Anticipated Completion Date: June 30, 2025 Corrective Action Plan: Payroll charges to federal programs must mat...

Finding 2024-006 Personnel Responsible for Corrective Action: Director of Sponsored Programs- Eva Kain, Director of Title III – Dr. Neidra Butler and Grant Accountant – Charme Benson Anticipated Completion Date: June 30, 2025 Corrective Action Plan: Payroll charges to federal programs must match certified time and effort documentation. The Director of Sponsored Programs, the Director of Title III, and the Grant Accountant will jointly review allocations before payrolls are processed. Monthly reports will be generated for review by the Grant Accountant, and discrepancies must be corrected within 30 days. Management will implement a formal review and approval process to ensure that all allowable costs are verified for compliance with applicable regulations and approved by designated personnel prior to reimbursement or payment.

View Audit 359750

Finding 566849 (2024-001)

Significant Deficiency 2024

Pacific Northwest Research Institute

WA

Subrecipient Monitoring Cash Management Allowable Costs / Cost Principles § 200.305

Finding Number 2024-001 Contact Person(s): Dionne Gordon dgordon@pnri.org Explanation and specific reasons for disagreement with the audit finding or that corrective action is not required (if applicable): Although the findings consisted primarily of a small number of late payments that were either ...

Finding Number 2024-001 Contact Person(s): Dionne Gordon dgordon@pnri.org Explanation and specific reasons for disagreement with the audit finding or that corrective action is not required (if applicable): Although the findings consisted primarily of a small number of late payments that were either 1 day late or late as a result of a poorly timed holiday, we fully acknowledge the accuracy of the finding and have added an additional control to account for the impact of weekends and holidays on our AP payment runs. Corrective action planned: Internal control established in AP department to keep track of sub recipients’ request reimbursement to ensure payments are disbursed within 30 calendar days after receipt of request. Anticipated completion date: March 31st 2025

View Audit 359747

Finding 566118 (2024-001)

None 2024

Battelle Memorial Institute

OH

Special Tests & Provisions Allowable Costs / Cost Principles Reporting § 200.508

Reference: Finding 2024-001 Qualified Auditor’s Opinion for Allowable Costs and Activities Allowed and Unallowed and Special Tests and Provisions for Research & Development Cluster Due to Material Scope Limitations Contact: Erica Classing, Controller; classinge@battelle.org; 614-424-3372 Views of Re...

Reference: Finding 2024-001 Qualified Auditor’s Opinion for Allowable Costs and Activities Allowed and Unallowed and Special Tests and Provisions for Research & Development Cluster Due to Material Scope Limitations Contact: Erica Classing, Controller; classinge@battelle.org; 614-424-3372 Views of Responsible Officials: Battelle acknowledges the scope limitation is the result of access restrictions to classified contract documents imposed by federal agencies that are beyond Battelle’s control. Battelle does not have the authority to grant auditor access to classified programs without the proper security clearance and program permissions, rather this authority resides with the federal awarding agency, in accordance with applicable federal security regulations. These restrictions prohibited access to classified contracts for required audit procedures in those areas noted in Finding 2024-001. This limitation was only on classified contracts which is a small subset (10%) of Battelle’s total reportable expenditures. Battelle provided all unclassified documentation required to support transactions selected for testing. In addition, Battelle provided all documentation necessary to audit compliance with requirements on all non-classified contracts selected. Management upholds high standards of compliance and transparency and continues to support audit processes to the fullest extent possible. Battelle agrees to explore options to satisfy audit requirements while maintaining compliance with classified contract security regulations. Corrective Action Plan: Summary of finding: During testing of allowable costs and special tests and provisions, access to classified contracts was restricted. The auditor was unable to view federal award documents to determine allowability terms and conditions, security clearance requirements, or other special provisions for sample selections of classified contracts. Consequently, this restriction on access to the source contract document resulted in a material scope limitation for these testing areas. Root cause: Access to classified contracts is subject to confidentiality requirements mandated by external regulators, requiring appropriate security clearance levels and verified need-to-know status. If the classified contract is a special access program, obtaining program-specific approvals from the awarding agency in addition to possessing the appropriate security clearance and need to know is required. There is no guarantee that the federal awarding agency will ultimately grant cleared auditors access to the classified contract. Corrective action: Battelle is taking the following steps to address the finding: • Internal Review: We conducted an internal review of the areas affected by the scope limitation to validate each selection complied with the applicable contractual and regulatory requirements. This action was completed by December 19, 2024 and did not identify any instance of non-compliance with applicable rules, regulations, or contractual requirements. • We have existing monitoring mechanisms in place to ensure compliance in the areas affected by the scope limitation. • Early coordination with external auditor: We are collaborating with our external audit team to identify any classified contract audit selections earlier in the annual audit process. A proactive approach will allow Battelle extra time to engage clients for required approvals to either gain access to the classified information or obtain appropriate alternative audit evidence. In addition, any other related steps that can be completed in advance such as verifying auditor clearance types and levels will be performed early to help mitigate any delays. This corrective action requires the audit firm to provide auditors with the appropriate security clearances. • Engagement with regulatory agencies: We are in dialogue with impacted federal awarding agencies to explore options to provide necessary audit evidence. • Enhanced documentation: We are enhancing our audit support procedures to provide guidelines on how, within the bounds of regulatory restrictions, we can provide access to audit evidence for future audits. Overall Anticipated Implementation Date: December 31, 2025

View Audit 359740

Finding 566043 (2024-002)

Significant Deficiency 2024

Global Communities

MD

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

Views of Responsible Officials and Planned Corrective Action: Global Communities policies and procedures did detect these instances of fraud, management of Global Communities took appropriate action ensuring that no unallowable costs were charged to Federal funds. Global Communities will continue th...

Views of Responsible Officials and Planned Corrective Action: Global Communities policies and procedures did detect these instances of fraud, management of Global Communities took appropriate action ensuring that no unallowable costs were charged to Federal funds. Global Communities will continue their due diligence with respect to any items that are considered fraudulent in nature. Any high-risk areas are carefully monitored, additional training and/or resources are provided to ensure that internal controls are functioning as designed to prevent occurrences of misappropriation of assets and procurement fraud.

View Audit 359700

Finding 565992 (2024-003)

Significant Deficiency 2024

Central Virginia Legal Aid Society, Inc.

VA

Allowable Costs / Cost Principles Reporting Significant Deficiency

Corrective Action Taken or Planned: The Organization will implement a review process to ensure that reports to LSC are filed timely. This review process will consist of the Executive Director and the Director of Finance independently reviewing the Oversight section of Grantease (LSC’s web-based p...

Corrective Action Taken or Planned: The Organization will implement a review process to ensure that reports to LSC are filed timely. This review process will consist of the Executive Director and the Director of Finance independently reviewing the Oversight section of Grantease (LSC’s web-based platform) monthly to ensure compliance. The Organization already has calendared all report deadlines for LSC and has a good track record of meeting those deadlines. The Organization believes the missed deadline identified in the audit was due to changes in job responsibilities following organizational restructuring and will not occur again. Name of Contact Person: Steve Dickinson, Executive Director Phone Number of Contact Person: (804) 200-6049 Projected Completion Date: April 30, 2025

View Audit 359640

Finding 565991 (2024-002)

Material Weakness 2024

Central Virginia Legal Aid Society, Inc.

VA

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

Corrective Action Taken or Planned: The Organization will immediately implement a more formal review process for review of citizenship attestations and asset levels to ensure compliance before cases are reported to LSC. This review process will consist of two checks. The first will be done monthl...

Corrective Action Taken or Planned: The Organization will immediately implement a more formal review process for review of citizenship attestations and asset levels to ensure compliance before cases are reported to LSC. This review process will consist of two checks. The first will be done monthly through reports run in the case management system designed to identify cases where LSC or the Organization’s policies were not met. The second will be a review by the Managing Director of each of the Organization’s practice area groups where the case was closed to ensure compliance with LSC and the Organization’s requirements. In addition, training of new employees as part of their onboarding, and an annual training course for all of the Organization’s staff, will be held on LSC and the Organization’s case acceptance and reporting requirements and the use of tools, such as case management reports and checklists, to ensure compliance. Name of Contact Person: Steve Dickinson, Executive Director Phone Number of Contact Person: (804) 200-6049 Projected Completion Date: April 30, 2025

View Audit 359640

Finding 565990 (2024-001)

Material Weakness 2024

Central Virginia Legal Aid Society, Inc.

VA

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

Corrective Action Taken or Planned: The Organization will immediately implement a more formal review process for review of citizenship attestations and asset levels to ensure compliance before cases are reported to LSC. This review process will consist of two checks. The first will be done monthl...

Corrective Action Taken or Planned: The Organization will immediately implement a more formal review process for review of citizenship attestations and asset levels to ensure compliance before cases are reported to LSC. This review process will consist of two checks. The first will be done monthly through reports run in the case management system designed to identify cases where LSC or the Organization’s policies were not met. The second will be a review by the Managing Director of each of the Organization’s practice area groups where the case was closed to ensure compliance with LSC and the Organization’s requirements. In addition, training of new employees as part of their onboarding, and an annual training course for all of the Organization’s staff, will be held on LSC and the Organization’s case acceptance and reporting requirements and the use of tools, such as case management reports and checklists, to ensure compliance. Name of Contact Person: Steve Dickinson, Executive Director Phone Number of Contact Person: (804) 200-6049 Projected Completion Date: April 30, 2025

View Audit 359640

Finding 565807 (2024-004)

Significant Deficiency 2024

Human Services of Faribault and Martin Counties

MN

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

Federal Agency: U.S. Department of Health and Human Services Federal Program Name: Medical Assistance Program (Medicaid Cluster) Assistance Listing Number: 93.778 Federal Award Identification Numbers and Year: 2405MN5MAP and 2405MN5ADM, 2024 Pass-Through Agency: Minnesota Department of Human Ser...

Federal Agency: U.S. Department of Health and Human Services Federal Program Name: Medical Assistance Program (Medicaid Cluster) Assistance Listing Number: 93.778 Federal Award Identification Numbers and Year: 2405MN5MAP and 2405MN5ADM, 2024 Pass-Through Agency: Minnesota Department of Human Services Pass-Through Numbers: 2405MN5MAP and 2405MN5ADM Compliance Requirement Affected: Allowable Costs/Allowable Activities Award Period: Year-Ended December 31, 2024 Type of Finding: Significant Deficiency in Internal Control over Compliance and Other Matters Recommendation: It is recommended the Agency implement control procedures to ensure Income Maintenance Random Moment Study (IMRMS) and Social Services Time Study (SSTS) listings are accurate. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: The Agency will review procedures and implement changes as needed to ensure going forward that the IMRMS and SSTS listings are accurate. Name of the contact person responsible for corrective action plan: Chera Sevcik, Human Services Executive Director Planned completion date for corrective action plan: December 31, 2025

View Audit 359512

Finding 565805 (2024-002)

Significant Deficiency 2024

Metropolitan Economic Development Association

MN

Allowable Costs / Cost Principles

Federal Agency Name: Department of Treasury Assistance Listing Number: 21.033 Program Name: Community Development Financial Institutions Equitable Recovery Program Finding Summary: MEDA has a process for allocating employee wages based on hours worked, however controls in place did not operate to p...

Federal Agency Name: Department of Treasury Assistance Listing Number: 21.033 Program Name: Community Development Financial Institutions Equitable Recovery Program Finding Summary: MEDA has a process for allocating employee wages based on hours worked, however controls in place did not operate to prevent errors in the allocation of employees’ pay to the grants. Corrective Action Plan: MEDA’s payroll is performed by a third party. The errors identified during the audit were made by the third-party provider. Prior to the audit, MEDA was unsatisfied with the accuracy of records and customer service of the provider and engaged with a different payroll provider, transitioning the payroll processing at the beginning of 2025. This finding has very little impact on the financials and on the CDFI award. Total amount of differences between booked payroll and auditor-calculated payroll were less than $200. With the new payroll provider in place, we expect to have accurate results and accurate allocations to federal awards. Responsible Individuals: Catherine Rossini – Controller, Tarsha Humpries- Payroll Manager, Mesude Cingilli – VP of Finance Anticipated Completion Date: January 31, 2025

View Audit 359504

Finding 565772 (2024-003)

Significant Deficiency 2024

Boys & Girls Club of Huntington County, Inc.

IN

Allowable Costs / Cost Principles Cash Management Significant Deficiency

2024-003 Twenty-First Century Community Learning Centers -Assistance Listing No. 84.287 Significant Deficiency in Internal Control Over Compliance and Noncompliance - Appropriate Internal Control Structure Related to Compliance Requirements A. Activities Allowed or Unallowed, B. Allowable Costs/Cost...

2024-003 Twenty-First Century Community Learning Centers -Assistance Listing No. 84.287 Significant Deficiency in Internal Control Over Compliance and Noncompliance - Appropriate Internal Control Structure Related to Compliance Requirements A. Activities Allowed or Unallowed, B. Allowable Costs/Cost Principles, and C. Cash Management Recommendation: The Auditor recommends the policies in accordance with §200.302 Financial Management paragraph (b) (6) and (b)(7) be written by the Organization, approved by the Board of Directors, and included in the permanent files of the Organization. Planned Corrective Action: We agree with the recommendation, and updated our policies in accordance with §200.302 Financial Management paragraph (b) (7) in December 2024 and will update our policies in accordance with (b) (6) by August 2025.

View Audit 359460

Finding 565771 (2024-002)

Significant Deficiency 2024

Boys & Girls Club of Huntington County, Inc.

IN

Questioned Costs Allowable Costs / Cost Principles Cash Management § 200.305 § 200.403

2024-002 Twenty-First Century Community Learning Centers - Assistance Listing No. 84.287 Significant Deficiency in Internal Control Over Compliance and Noncompliance - Appropriate Review of Expenditures Claimed B. Allowable Costs/Cost Principles Recommendation: The Auditors recommend that management...

2024-002 Twenty-First Century Community Learning Centers - Assistance Listing No. 84.287 Significant Deficiency in Internal Control Over Compliance and Noncompliance - Appropriate Review of Expenditures Claimed B. Allowable Costs/Cost Principles Recommendation: The Auditors recommend that management strengthen its review procedures over expense cutoff to ensure that expenditures are recognized on the SEFA in alignment with GMP. Additionally, training should be provided to accounting personnel on Uniform Guidance compliance and GMP requirements related to expense recognition. Planned Corrective Action: We agree with the recommendation and plan to have the corrective action implemented by August 2025.

View Audit 359460 Questioned Costs: $1

Finding 565770 (2024-001)

Material Weakness 2024

Boys & Girls Club of Huntington County, Inc.

IN

Questioned Costs Allowable Costs / Cost Principles Material Weakness § 200.430

2024-001 Twenty-First Century Community Learning Centers - Assistance Listing No. 84.287 Material Weakness in Internal Control Over Compliance and Noncompliance...., Inadequate Payroll Documentation B. Allowable Costs/Cost Principles Recommendation: The Auditors recommend that management ensure all ...

2024-001 Twenty-First Century Community Learning Centers - Assistance Listing No. 84.287 Material Weakness in Internal Control Over Compliance and Noncompliance...., Inadequate Payroll Documentation B. Allowable Costs/Cost Principles Recommendation: The Auditors recommend that management ensure all employee timecards are signed or electronically certified by the employee in a timely manner. The Auditors also recommend a process be implemented to reconcile time charge to federal award to underlying payroll report. Internal controls should be reinforced to verify that no payroll costs are charged to federal programs without appropriate documentation and approval. Action Taken : We agree with the recommendation and updated our written policy in 2024 . The policy was reviewed by the Finance Committee and approved by the full Board of Directors in December 2024.

View Audit 359460 Questioned Costs: $1

Finding 565740 (2024-003)

Material Weakness 2024

United Way of Acadiana, INC

LA

Allowable Costs / Cost Principles Internal Control / Segregation of Duties

U.S. Department of Health and Human Services Head Start Cluster – Assistance Listing No. 93.600 2024-003 Allowable Costs Recommendation: The Organization should review their established policies and procedures for effectiveness and ensure all employees adhere to all established procedures. Addi...

U.S. Department of Health and Human Services Head Start Cluster – Assistance Listing No. 93.600 2024-003 Allowable Costs Recommendation: The Organization should review their established policies and procedures for effectiveness and ensure all employees adhere to all established procedures. Additionally, management should ensure all costs charged to the program are allowable under the grant guidelines. Corrective Action Plan: United Way of Acadiana hired a new Finance Director in late 2024 who will develop and ensure internal controls for Federal grant programs. Internal controls have been addressed and implemented in 2025 to provide better operational efficiency.

View Audit 359451

Finding 565738 (2024-001)

None 2024

United Way of Acadiana, INC

LA

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

U.S. Department of Health and Human Services Head Start Cluster – Assistance Listing No. 93.600 2024-001 Allowable Costs Recommendation: The Organization should review their established policies and procedures for effectiveness and ensure all employees adhere to all established procedures. Addi...

U.S. Department of Health and Human Services Head Start Cluster – Assistance Listing No. 93.600 2024-001 Allowable Costs Recommendation: The Organization should review their established policies and procedures for effectiveness and ensure all employees adhere to all established procedures. Additionally, management should ensure all costs charged to the program are allowable under the grant guidelines. Corrective Action Plan: United Way of Acadiana hired a new Finance Director in late 2024 who will develop and ensure internal controls for Federal grant programs. Internal controls have been addressed and implemented in 2025 to provide better operational efficiency.

View Audit 359451 Questioned Costs: $1

Finding 565731 (2024-002)

Significant Deficiency 2024

Community Action Agency of Jackson, Lenawee, and Hillsdale

MI

Subrecipient Monitoring Reporting Allowable Costs / Cost Principles § 200.328

2024-002 - Late submission of reports Auditor Description of Condition and Effect: The Agency failed to submit the required report for the federal grant within the stipulated deadlines as outlined in the grant agreement and Uniform Guidance. During reporting testing, it was noted that the Final FFR ...

2024-002 - Late submission of reports Auditor Description of Condition and Effect: The Agency failed to submit the required report for the federal grant within the stipulated deadlines as outlined in the grant agreement and Uniform Guidance. During reporting testing, it was noted that the Final FFR report was not submitted into the Payment Management Services (PMS) prior to the required due date. Late submission of reports results in noncompliance with federal regulations, potentially leading to administrative actions such as withholding of future grant funds, increased monitoring, or other penalties as deemed appropriate by the Federal awarding agency. The Agency did not comply with contractual reporting requirements. Auditor Recommendation: We recommend the Agency implement procedures to ensure timely submission of all required reports. Corrective Action: The Agency will implement a system of reviewing the semi-annual and annual federal financial reporting which would include the reports being prepared by the Financial Grants Manager, reviewed by the Chief Financial Officer and submitted by the Chief Executive Officer, all of whom will be aware of the reporting due dates as to ensure they are filed timely. Responsible Person: Anthony J Samon, CFO Anticipated Completion Date: Immediately, the Agency’s next FFR due date is September 30th.

View Audit 359441

Finding 565728 (2024-001)

Significant Deficiency 2024

Community Action Agency of Jackson, Lenawee, and Hillsdale

MI

Allowable Costs / Cost Principles Eligibility § 200.303

2024-001 - Missing evidence of review and approval Auditor Description of Condition and Effect: During our testing of Allowable Costs, we noted 4 disbursements tested did not have signed and approved purchase orders. During our testing of Reporting, we noted two quarterly reports that had no evidenc...

2024-001 - Missing evidence of review and approval Auditor Description of Condition and Effect: During our testing of Allowable Costs, we noted 4 disbursements tested did not have signed and approved purchase orders. During our testing of Reporting, we noted two quarterly reports that had no evidence of review and approval. During our Eligibility testing, we noted one applicant whose certification form was not signed by the supervisor. As a result of this condition, there is an increased risk of unallowable expenses being charged to the grant, inaccurate financial reporting, allowing ineligible participants to receive grant benefits and other potential noncompliance with federal regulations. Auditor Recommendation: We recommend the Agency adheres to their internal control process of an independent review and approval of transactions and reporting related to federal grant programs. Corrective Action: The Agency will review the accounts payable/purchase order approval process with the finance department, all of whom were new (or the position vacant) during much of the period being examined, to ensure they understand the various requirements. The Agency will verify the review of the semi-annual and annual federal financial reporting by signing off on the reports after various staff have reviewed them. Responsible Person: Anthony J Samon, CFO Anticipated Completion Date: June 15, 2025

View Audit 359441

Finding 565702 (2024-001)

None 2024

The Cleveland Play House

OH

Questioned Costs Allowable Costs / Cost Principles Cash Management § 200.403 § 200.430

CORRECTIVE ACTION PLAN Year Ended June 30, 2024 Finding Number: 2024-001 Planned Corrective Action: Cleveland Play House has had difficulties with finding a long-term replacement for the Director of Finance roll and thus the position has experienced much turnover since June of 2023. During this time...

CORRECTIVE ACTION PLAN Year Ended June 30, 2024 Finding Number: 2024-001 Planned Corrective Action: Cleveland Play House has had difficulties with finding a long-term replacement for the Director of Finance roll and thus the position has experienced much turnover since June of 2023. During this time period, practices have been put in place for the reviewing of grant draws and the approval of time and effort logs. However, the turnover has led to inconsistency with the application of these practices. While the Director of Finance position remains temporarily staffed, there has been improvement in the following of industry best practice for the monitoring of time and effort and grant expenditures. Based on the reduction in questioned costs down from prior year findings and with the continued adherence to best practices for grant costs, Cleveland Play House continues to work towards a clean audit for the fiscal 2025 year ending June 30th, 2025. Anticipated Completion Date: June 30, 2025

View Audit 359414 Questioned Costs: $1

Finding 565700 (2024-002)

Material Weakness 2024

City of Jacksonville

FL

Allowable Costs / Cost Principles Special Tests & Provisions § 200.303 § 200.330

Management’s Action Plan: The Neighborhoods Department is committed to ensuring wage rate requirements for contractors and subcontractors are prioritized and internal controls are properly documented. In particular, evidence of approvals needed to ensure compliance with allowable costs, cost princip...

Management’s Action Plan: The Neighborhoods Department is committed to ensuring wage rate requirements for contractors and subcontractors are prioritized and internal controls are properly documented. In particular, evidence of approvals needed to ensure compliance with allowable costs, cost principles and period of performance requirements will be documented for all invoices and payroll allocations. Weekly payroll reports will be reviewed as part of the special tests and provisions needed to comply with wage rate requirements. A Labor Standards and Construction Manager has been hired to monitor all contracts with labor standard regulations, including wage rate requirements. This individual will be tasked with setting up tracking systems and monitoring compliance of the various City departments, as well as external subrecipients, to ensure all regulations and requirements for labor standards are followed. Currently, City Departments using federal funds through a MOU with the Neighborhoods Department can access funds and pay vendors without a review by the Housing & Community Development Division’s team. This has led to vendors being paid without submitting the proper wage rate requirement documentation. To mitigate this challenge, the Division has recommended that funds appropriated to other City departments be held by the Housing & Community Development Division, so that verification of wage rate requirements can occur prior to any payment for services. We will ensure that the written procedures for controls include the title of the positions responsible for each control (preparation, review, reconciliation, etc.) and require that the performance of the controls be documented in a clear, reperformable manner including the name of each responsible individual, the specific control they performed over compliance for the grant and the date(s) the controls were performed. Contact Names responsible for the plan – Travis Jeffrey Anticipated completion date of the plan – September 2025

View Audit 359404

Finding 565697 (2024-010)

Significant Deficiency 2024

Washington County

OR

Allowable Costs / Cost Principles

Auditor recommendation: The County should develop and implement policies and procedures to ensure that payroll and administrative expenditure matching is reviewed to ensure the 25% matching requirement is met and costs used to match are allowable. Management response: Agree Target date to complete...

Auditor recommendation: The County should develop and implement policies and procedures to ensure that payroll and administrative expenditure matching is reviewed to ensure the 25% matching requirement is met and costs used to match are allowable. Management response: Agree Target date to complete implementation activities: July 2026 Name of specific point of contact for implementation: Ryan Bansbach, Deputy CFO, Housing, 503.846.8811 Response: The Homeless Division, that administers the programmatic aspect of the Continuum of Care, reviewed budget allocations to subrecipients including the Housing Authority. Although match was reviewed and included in the approved County budget, the Homeless Division is developing and implementing policies and procedures to ensure documentation of match review is retained. In future fiscal years, Washington County has committed the match to subrecipients to ensure the match is met and eligible in alignment with HUD expenses.

View Audit 359401

Finding 565673 (2024-001)

Significant Deficiency 2024

School's Out Washington

WA

Questioned Costs Allowable Costs / Cost Principles

Create a policy that clearly specifies that subscription and other costs related to federally funded programs which are invoiced on an annual basis are expensed on an accrual basis rather than as period expenses. Policy will also include procedures to assure that for federally funded programs the re...

Create a policy that clearly specifies that subscription and other costs related to federally funded programs which are invoiced on an annual basis are expensed on an accrual basis rather than as period expenses. Policy will also include procedures to assure that for federally funded programs the recognition of expenses aligns with the performance period of the federal contracts. Implement new policy effective immediately. Revise treatment of all bills invoiced on an annual basis received in 2025 to comply with new policy. Make adjusting journal entries as needed to assure that any expenses related to annual invoices do not result in charges to federally funded programs beyond the performance period. Anticipated completion date: 6/30/25 School’s Out Washington considers the above steps sufficient and adequate to close the gaps in the coding of transactions that may have permitted unallowable costs to post to grants for YE2024. These steps will remedy the lapse in effectiveness experienced by School’s Out Washington’s internal controls over allowable costs.

View Audit 359353 Questioned Costs: $1

Finding 565672 (2024-001)

Significant Deficiency 2024

Boys & Girls Clubs of Southeastern Michigan

MI

Subrecipient Monitoring Allowable Costs / Cost Principles Reporting

Delinquent Filing of Reports Auditor Description of Condition and Effect: The Organization failed to submit certain reports for the federal grant within the stipulated deadlines as outlined in the grant agreement and Uniform Guidance. Late or delinquent submission of reports results in noncompliance...

Delinquent Filing of Reports Auditor Description of Condition and Effect: The Organization failed to submit certain reports for the federal grant within the stipulated deadlines as outlined in the grant agreement and Uniform Guidance. Late or delinquent submission of reports results in noncompliance with federal regulations, potentially leading to administrative actions such as withholding of future grant funds, increased monitoring, or other penalties as deemed appropriate by the Federal awarding agency. The Organization did not comply with certain contractual reporting requirements. Auditor Recommendation: We recommend the Organization implement procedures to ensure timely submission of all required reports. Corrective Action: BGCSM leadership agrees with the audit finding noted above. BGCSM will establish and document clear grant administration policies and procedures. The processes will include steps to ensure a thorough understanding of the reporting requirements to ensure timely and accurate reporting. Responsible Person: Resource Development – Julia Callis and Gregory McPherson Anticipated Completion Date: 6/30/2025

View Audit 359350

Finding 565663 (2024-004)

Material Weakness 2024

Community Action Partnership of North Dakota Inc.

ND

Questioned Costs Subrecipient Monitoring Internal Control / Segregation of Duties § 200.331

2024-004 Allowable Costs Compliance - SSVF Person responsible for corrective action - Andrea Olson, executive Director Responsible official's response - Management is in agreement with this finding. Corrective acction planned - CAPND has a comprehensive monitoring plan to monitor all grant supported...

2024-004 Allowable Costs Compliance - SSVF Person responsible for corrective action - Andrea Olson, executive Director Responsible official's response - Management is in agreement with this finding. Corrective acction planned - CAPND has a comprehensive monitoring plan to monitor all grant supported activities in accordance with program rules relative to SSVF program including rules established by the program, those established by CAPND. Planned implementation date of corrective action - 2025

View Audit 359346 Questioned Costs: $1

Corrective Action Plans

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