Corrective Action Plans

Finding 563976 (2024-003)

Significant Deficiency 2024

County of Kern

CA

Allowable Costs / Cost Principles Period of Performance Significant Deficiency § 200.303

Block Grants for Prevention and Treatment of Substance Abuse – Assistance Listing No. 93.959 Recommendation: We recommend the County to conduct training with its various departments to instruct them on how to compile expenditures based on the accrual basis of accounting (when the expenditures were i...

Block Grants for Prevention and Treatment of Substance Abuse – Assistance Listing No. 93.959 Recommendation: We recommend the County to conduct training with its various departments to instruct them on how to compile expenditures based on the accrual basis of accounting (when the expenditures were incurred). Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: The Auditor’s Controllers office provides training on accrual basis of accounting at year-end training. All personnel related to recording the expenditures related to this program will be required to attend the meeting. In addition, the Auditor’s office will require all department heads and chief fiscal officers to sign off on the accuracy and completeness of their revenue and expenditures prior to closing each fiscal year going forward. Names of the contact persons responsible for corrective action: Aimee Espinoza, Auditor-Controller and Alonzo Solis, AC Senior Accountant. Planned completion date for corrective action plan: June 30, 2025, is not feasible due to the issuance date so expected completion date to June 30, 2026.

View Audit 358146

Finding 563974 (2024-002)

Significant Deficiency 2024

County of Kern

CA

Allowable Costs / Cost Principles Period of Performance Significant Deficiency § 200.303

Block Grants for Community Mental Health Services - Assistance Listing No. 93.958 Recommendation: We recommend the County to conduct training with its various departments to instruct them on how to compile expenditures based on the accrual basis of accounting (when the expenditures were incurred). ...

Block Grants for Community Mental Health Services - Assistance Listing No. 93.958 Recommendation: We recommend the County to conduct training with its various departments to instruct them on how to compile expenditures based on the accrual basis of accounting (when the expenditures were incurred). Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: The Auditor’s Controllers office provides training on accrual basis of accounting at year-end training. All personnel related to recording the expenditures related to this program will be required to attend the meeting. In addition, the Auditor’s office will require all department heads and chief fiscal officers to sign off on the accuracy and completeness of their revenue and expenditures prior to closing each fiscal year going forward. Names of the contact persons responsible for corrective action: Aimee Espinoza, Auditor-Controller and Alonzo Solis, AC Senior Accountant. Planned completion date for corrective action plan: June 30, 2025, is not feasible due to the issuance date so expected completion date to June 30, 2026.

View Audit 358146

Finding 563969 (2024-001)

Significant Deficiency 2024

Fouke School District

AR

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

We concur with the recommendation and will contact DESE to ensure that the correct process is used to move the unallowable costs totaling $843 to the Operating Fund. To correct the payroll issue of charging unallowable costs, the payroll clerk will run reports quarterly to verify all payroll charge...

We concur with the recommendation and will contact DESE to ensure that the correct process is used to move the unallowable costs totaling $843 to the Operating Fund. To correct the payroll issue of charging unallowable costs, the payroll clerk will run reports quarterly to verify all payroll charges to any federal fund are appropriate.

View Audit 358144 Questioned Costs: $1

Finding 563963 (2024-001)

Material Weakness 2024

Dequeen School District

AR

Procurement, Suspension & Debarment Allowable Costs / Cost Principles School Nutrition Programs

The District has implemented controls to ensure that USDA donated foods is tracked and credited on future FSMC invoices. The District made journal entries from Operating to cover the $244,203 that had been originally approved verbally by CNU. We then found out this was not an approved expense from C...

The District has implemented controls to ensure that USDA donated foods is tracked and credited on future FSMC invoices. The District made journal entries from Operating to cover the $244,203 that had been originally approved verbally by CNU. We then found out this was not an approved expense from Child Nutrition and corrected the expense.

View Audit 358138

Finding 563943 (2024-001)

Significant Deficiency 2024

The Colonial Williamsburg Foundation

VA

Allowable Costs / Cost Principles Reporting

2024-001 – Internal Control over Compliance with Activities Allowed or Unallowed and Allowable Costs and Cost Principles Management’s Corrective Action Plan: The program director will review the payroll data quarterly to ensure that the costs are accurate and allowable and provide documented evidenc...

2024-001 – Internal Control over Compliance with Activities Allowed or Unallowed and Allowable Costs and Cost Principles Management’s Corrective Action Plan: The program director will review the payroll data quarterly to ensure that the costs are accurate and allowable and provide documented evidence of timely review to the Grant Officer. Estimated Completion Date: June 30, 2025 Individual(s) Responsible for Corrective Action Plan: Ramona Vogel (Hill), Executive Director, Historic Area Interpretation & Operations, (757) 220-7762

View Audit 358119

Finding 563866 (2024-007)

Material Weakness 2024

Hitchcock Independent School District

TX

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

Finding Reference Number: 2024-007 Description of Finding: Lack of Semi-Annual Certifications for Special Education Personnel (Controls over Compliance - Special Education Cluster) Corrective Action Planned:The district has implemented new procedures for fiscal year 2025 to ensure that semiannual ce...

Finding Reference Number: 2024-007 Description of Finding: Lack of Semi-Annual Certifications for Special Education Personnel (Controls over Compliance - Special Education Cluster) Corrective Action Planned:The district has implemented new procedures for fiscal year 2025 to ensure that semiannual certifications are prepared, signed, and retained for all employees working solely on federal programs, including the Special Education Cluster (IDEA). A tracking system has been established, and staff training has been completed to reinforce documentation requirements. The district will continue to monitor compliance to ensure procedures are consistently applied. Responsible Contact Person: Patrick M. Faour, Interim Superintendent Anticipated Completion Date: August 30, 2025

View Audit 358090

Finding 563861 (2024-006)

Material Weakness 2024

Hitchcock Independent School District

TX

Allowable Costs / Cost Principles Internal Control / Segregation of Duties

Finding Reference Number: 2024-006 Description of Finding: Unauthorized Use of Child Nutrition Funds (Controls over Compliance - Child Nutrition Cluster) Corrective Action Planned: The district is conducting a full review of interfund activity involving Child Nutrition funds to ensure compliance wit...

Finding Reference Number: 2024-006 Description of Finding: Unauthorized Use of Child Nutrition Funds (Controls over Compliance - Child Nutrition Cluster) Corrective Action Planned: The district is conducting a full review of interfund activity involving Child Nutrition funds to ensure compliance with the grant requirements. Staff will be trained on programspecific requirements, including reviewing all expenditures for allowability. The District will evaluate the impact of budget amendments that may be necessary if significant reimbursements to the Child Nutrition fund must be made from the general fund. Responsible Contact Person: Patrick M. Faour, Interim Superintendent Anticipated Completion Date: August 31, 2025

View Audit 358090

Finding 563847 (2024-001)

Material Weakness 2024

Seminole County Board of Edcuation

GA

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

FA 2024-001 Strengthen Controls over Expenditures Compliance Requirement: Activities Allowed or Unallowed Allowable Costs/Cost Principle Internal Control Impact: Material Weakness Compliance Impact: Material Noncompliance Federal Awarding Agency: U.S. Department of Education Pass-Through Entity: ...

FA 2024-001 Strengthen Controls over Expenditures Compliance Requirement: Activities Allowed or Unallowed Allowable Costs/Cost Principle Internal Control Impact: Material Weakness Compliance Impact: Material Noncompliance Federal Awarding Agency: U.S. Department of Education Pass-Through Entity: Georgia Department of Education Assistance Listing Number and Title: COVID-19 - 84.425D - Elementary and Secondary School Emergency Relief Fund COVID-19 - 84.425U - American Rescue Plan Elementary and Secondary School Emergency Relief Fund Federal Award Number: S425D210012 (Year: 2021), S425U210012 (Year: 2021) Questioned Costs: $72,595 Description: A review of expenditures charged to the Elementary and Secondary School Emergency Relief Fund programs revealed that the School District's internal control procedures were not operating appropriately to ensure that expenditures were properly recorded. Corrective Action Plans: Our office was unaware our financial program could automatically generate employee's supplemental checks in addition to standard monthly checks. Now that we are aware, Ivey McLendon and I will monitor our financial program's automatically generated claims closely to adapt our manual accrual entries. Estimated Completion Date: June 30, 2025 Contact Person: Sherry Gray, Financial Director Telephone: (229) 524-2433 Email: sgray@seminole.k12.ga.us

View Audit 358065 Questioned Costs: $1

Finding 563796 (2024-002)

Significant Deficiency 2024

Center for Independence

WA

Questioned Costs Allowable Costs / Cost Principles § 200.403

Activities Allowed or Unallowed; Allowable Costs and Cost Principles Auditor's Recommendations: We recommend that the Organization obtains a better understanding of allowable and unallowable costs for federal awards. We also recommend that the Organization implement a system of internal control tha...

Activities Allowed or Unallowed; Allowable Costs and Cost Principles Auditor's Recommendations: We recommend that the Organization obtains a better understanding of allowable and unallowable costs for federal awards. We also recommend that the Organization implement a system of internal control that can detect noncompliance prior to charging costs to the federal award. Corrective Action: Executive Director, Faith Brown, will develop a process for checking and charging costs to federal awards as required per the compliance policy. The Executive Director will be responsible for verifying that all internal controls are operating and will have been checked for unallowable prior to disbursing future federal funds. Timing of remediation completion: Executive Director, Faith Brown, will complete by September 29, 2025.

View Audit 358009 Questioned Costs: $1

Finding 563788 (2024-001)

None 2024

Stonegate Housing, Ltd.

TX

Allowable Costs / Cost Principles

Management will coordinate with its agent and external parties, as necessary, and anticipates completion of this action no later than December 31, 2025.

View Audit 357998

Finding 563693 (2024-002)

Material Weakness 2024

Toole County

MT

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

Finding 2024-002: Transit Grants. Federal Award Numbers: 113057, 113061, 113052, 113093 Response: Toole County on behalf of Northern Transit Interlocal will implement and set up different expenditure and revenue codes to identify the grants and the expenditure of the grant funds.

View Audit 357988

Finding 563684 (2024-001)

None 2024

Auburn University

AL

Procurement, Suspension & Debarment Allowable Costs / Cost Principles Subrecipient Monitoring § 200.324

MANAGEMENT VIEWS AND CORRECTIVE ACTION PLAN REPORT ON FEDERAL AWARDS IN ACCORDANCE WITH THE OMB UNIFORM GUIDANCE SEPTEMBER 30, 2024 Finding 2024-001 Procurement- Lack of Cost or Price Analysis Cluster: Research and Development, SNAP, and also applies to COVID-19 – Coronavirus State and Local Fisca...

MANAGEMENT VIEWS AND CORRECTIVE ACTION PLAN REPORT ON FEDERAL AWARDS IN ACCORDANCE WITH THE OMB UNIFORM GUIDANCE SEPTEMBER 30, 2024 Finding 2024-001 Procurement- Lack of Cost or Price Analysis Cluster: Research and Development, SNAP, and also applies to COVID-19 – Coronavirus State and Local Fiscal Recovery Funds, which is not a cluster Sponsoring Agency: Various agencies Award Names: DE-CR0000033, USDA-58-6010-9-011, WICHITA ST UN-23-01534, AL DHR-AGREE 4153-FY24, and ADF-RURAL HLTH INITIATIVE-OPS Award Numbers: 212514, 204805, 245195, 376563, and 223331 Assistance Listing Title: Cybersecurity, Energy Security & Emergency Response (CESER), Agricultural Research Basic and Applied Research, Other Financial Assistance, State Administrative Matching Grants for the Supplemental Nutrition Assistance Program, and COVID-19 – Coronavirus State and Local Fiscal Recovery Funds Assistance Listing Number: 81.008, 10.001, 12.RD, 10.561, and 21.027 Award Year: 2023 – 2024 To ensure Auburn University is in compliance with 2CFR 200.324, Auburn University will implement the following corrective action plan: In addition to our current policies that require three quotes for purchases between $15,000-$75,000 and a formal competitive bid for purchases greater than $75,000, Auburn University will revise our policies to require a cost or price analysis for items greater than $250,000, documenting that the purchase is reasonable. The items identified within the audit were either a Professional Service Contract, advertising services (which are both exempt from State of Alabama Bid Law) or a sole source purchase. For items greater than $250,000, we will include a certification on the Professional Services Contracts and the Sole Source request forms indicating an analysis of cost or price has occurred and that the purchase is reasonable. As part of the cost or price analysis, we will utilize available data points. In addition to our analysis, we will ensure that our reviews have been appropriately documented and included in our files. Prior to the implementation date noted below, we will review any purchases greater than $250,000 in fiscal year 2025 and ensure proper cost or price analysis is completed and documented. Contact: Missty Kennedy Chief Procurement Officer and Executive Director Procurement and Payment Services Amy Douglas Associate VP Financial Services/Controller Anticipated Completion Date: October 1, 2025

View Audit 357977

Finding 563613 (2024-002)

Material Weakness 2024

Council of Spanish Speaking Organizations, Inc.

PA

Allowable Costs / Cost Principles Student Financial Aid Subrecipient Monitoring

2024-002 • Material Weakness in Internal Control over Compliance Condition: During our eligibility assessment, we examined 40 files from Community Umbrella Agency 3 (CUA) foster care children to ensure they contained required documents by the City of Philadelphia and Pennsylvania's Department of H...

2024-002 • Material Weakness in Internal Control over Compliance Condition: During our eligibility assessment, we examined 40 files from Community Umbrella Agency 3 (CUA) foster care children to ensure they contained required documents by the City of Philadelphia and Pennsylvania's Department of Human Services (DHS). Our review found missing documents, time gaps between submissions, or untimely paperwork, including the following: (a) 29 CUA Safety Assessments, (b) 30 CUA Safety Plans, (c) 7 CUA PA Model Risk Assessments, (d) 3 CUA Documented Client Visits (Structure Case Notes), (e) FAST Family Advocacy Forms, (f) 17 Life Skills Assessment/ Biopsychosocial Evaluation/ IEP or Ages & Stages Questionnaire (ASQ), (g) 11 School Aged Report Cards, (h) 6 CUA Authorization to Release Information, (i) 9 CUA Immunizations, (j) 3 DHS Court Order Sheets, (k) 14 Child’s Photo, (l) 10 Initial CUA Single Case Plan, (m) 7 Monthly Updates to CUA Single Case Plan, (n) 17 Initial CUA Case Service Conference Summary Report, and (o) 16 Six Month Ongoing CUA Services Conference Summary Report. Furthermore, each child's file needed to contain specific documents from the DHS, which had to be supplied by the department or shown evidence of request by the CUA. Missing documents consisted of: (a) 34 DHS Service Authorization Forms, (b) 21 DHS CUA Provider Referral Forms, and (c) 30 DHS CUA In-Home Services Referral Forms. Recommendation: We recommend that management continue to develop policies and procedures in order to properly include all pertinent documentation within each client file as required by the City of Philadelphia, Department of Human Services. In addition, we recommend that program leadership and/or quality control department performs periodic audits of the client files to ensure all required documentation is included. Explanation of Disagreement with Audit Finding There is no disagreement with the audit finding. FINDINGS – FEDERAL AWARD PROGRAM AUDITS (CONTINUED) Action taken in response to finding: 1. Hiring of Chief Compliance Officer to oversee Concilio Quality Assurance and Compliance process 2. Staffing of Quality Assurance department 3. Monthly review of client files for accuracy and completeness 4. Additional training of staff to review audit findings and implement corrective action Name of the contact person responsible for corrective action: Albert Essilfie, Chief Financial Officer albert.essilfie@elconcilio.net (215) 627-3100 Planned completion date for corrective action plan: June 30, 2025

View Audit 357894

Finding 563587 (2024-002)

Significant Deficiency 2024

Western Maine Community Action, Inc.

ME

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

To address this issue identified with nonpayroll employee disbursements, we have implemented a new requirement that all such payments made through payroll must be preceded by a Personnel Action Form. This form must be submitted to HR in advance and signed by the applicable department director and wi...

To address this issue identified with nonpayroll employee disbursements, we have implemented a new requirement that all such payments made through payroll must be preceded by a Personnel Action Form. This form must be submitted to HR in advance and signed by the applicable department director and with the HR Director or CFO. This process ensures that all nonpayroll disbursements are properly reviewed and authorized prior to payment. The new procedure has been communicated to relevant staff and integrated into exisiting workflows to ensure compliance and strengthen internal controls moving forward.

View Audit 357850

Finding 563584 (2024-001)

Significant Deficiency 2024

Western Maine Community Action, Inc.

ME

Allowable Costs / Cost Principles § 200.430

To address this issure and ensure timely approval of time sheets, the following corrective actions have been implemented and will be maintained: 1. Recurring Communications on Payroll Deadlines: A structured communication schedule has been developed, through which both HR and the CEO will issue regu...

To address this issure and ensure timely approval of time sheets, the following corrective actions have been implemented and will be maintained: 1. Recurring Communications on Payroll Deadlines: A structured communication schedule has been developed, through which both HR and the CEO will issue regular notices to staff and payroll supervisors. These communications will serve as timely reminders of payroll approval deadlines and emphasize the importance of compliance. 2. Ongoing Training and Support: Staff and supervisors will continue to receive training to address common barriers to timely approvals. On April 28, 2025, a leadership team training was conducted, which included all payroll supervisors. During this session, the importance of timely time sheet approvals was strongly emphasized. This training is part of our ongoing effors to ensure that all personnel involved in payroll processing understand their responsibilities and are equipped to meet them. 3. Escalation and Accountability: A clear escalation procedure has been established for instances where approvals are not completed by the deadline. Repeated non-compliance will result in disciplinary action, as part of a commitment to maintaining accountability. 4. Internal Processing Buffer: An internal buffer has been integrated into the payroll schedule. This allows additional time for finalizing approvals and ensures payroll can be processed accurately and on time. 5. Mandatory Immediate Action: In cases where time sheet approvals are not completed by the specified deadline, both staff and supervisors will be required to take immediate corrective action. This ensures delays are minimized and payroll operations are not disrupted.

View Audit 357850

Finding 563582 (2024-001)

Significant Deficiency 2024

Adelphi University

NY

Subrecipient Monitoring Allowable Costs / Cost Principles Reporting

We acknowledge the finding and have already addressed the issue. Additionally, we have incorporated this procedure into our compliance checklist. As a result, monthly reminders will be sent to a designated group within the Finance team to help prevent recurrence.

View Audit 357849

Finding 563575 (2024-001)

Material Weakness 2024

Arcadia Housing Authority

LA

Procurement, Suspension & Debarment Allowable Costs / Cost Principles

ARCADIA HOUSING AUTHORITY 7210 Prairie Rd Arcadia, LA 71001 Phone No. (318) 263-8471 Fax No. (318) 263-8841 HOUSING AUTHORITY OF ARCADIA, LOUISIANA CORRECTIVE ACTION PLAN YEAR ENDED JUNE 30, 2024 Corrective Action Plan Finding: Finding 2024-001-Support for Disbursements Lacking – Allowable ...

ARCADIA HOUSING AUTHORITY 7210 Prairie Rd Arcadia, LA 71001 Phone No. (318) 263-8471 Fax No. (318) 263-8841 HOUSING AUTHORITY OF ARCADIA, LOUISIANA CORRECTIVE ACTION PLAN YEAR ENDED JUNE 30, 2024 Corrective Action Plan Finding: Finding 2024-001-Support for Disbursements Lacking – Allowable Costs Condition: Expenses must be supported by adequate documentation which supports that the expense was necessary and properly classified, and the individual(s) that utilized the expenditure (example-who used the airline ticket, the explanation of the purpose of the travel, the seminar registration, etc. Another example-food was purchased by which individual, the business justification for the meal purchased). Corrective Action Planned We will follow the auditor’s recommendation. Person responsible for corrective action: Tammy Jones, Executive Director Telephone: (318) 263-8471 Arcadia Housing Authority Fax: (318) 263-8841 3177 Dance Circle Arcadia, Louisiana 71001 Anticipated Completion Date- June 30, 2025

View Audit 357842

Finding 562218 (2024-004)

Significant Deficiency 2024

Charles Drew Health Center, Inc.

NE

Allowable Costs / Cost Principles § 200.430

Finding Summary: During the testing performed, it was noted that the Organization transferred payroll costs between programs, however, no time and effort certification or equivalent documentation was updated to reflect the changes. Additionally, the transfer of payroll costs between grants was not p...

Finding Summary: During the testing performed, it was noted that the Organization transferred payroll costs between programs, however, no time and effort certification or equivalent documentation was updated to reflect the changes. Additionally, the transfer of payroll costs between grants was not properly reflected within the accounting system records by grant. These transfers between grants were completed after the end of the fiscal year. Responsible Individuals: Andre Stringfellow, Chief Financial Officer Corrective Action Plan: Management agrees with this finding. Staff will be trained to ensure future changes in payroll costs are updated timely within the system and documentation maintained.. Anticipated Completion Date: August 2025

View Audit 357829

Finding 562183 (2024-005)

Significant Deficiency 2024

City of Baker School Board

LA

Allowable Costs / Cost Principles Internal Control / Segregation of Duties

2024-005 Education Stabilization Fund – COVID 19 – Assistance Listing No. 84.425, Allowable Costs/Activities Allowed RECOMMENDATION: The School Board should take steps to ensure that all required approvals are properly documented on official forms. Corrective Action Plan: The School System has imple...

2024-005 Education Stabilization Fund – COVID 19 – Assistance Listing No. 84.425, Allowable Costs/Activities Allowed RECOMMENDATION: The School Board should take steps to ensure that all required approvals are properly documented on official forms. Corrective Action Plan: The School System has implemented necessary controls to ensure that all documents and official forms for payroll contain the necessary approvals prior to processing timesheets for payment. Anticipated Completion Date: Immediately and Ongoing.

View Audit 357791

Finding 562087 (2024-001)

Material Weakness 2024

Jasper School District

AR

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

The District has instituted an internal control to ensure employee payroll coding is reviewed year-to-year as program changes are made.

View Audit 357724 Questioned Costs: $1

Finding 562082 (2024-004)

None 2024

City of Westbrook

MN

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

1. Explanation of Disagreement with Audit Finding There is no disagreement with the audit finding. 2. Actions Planned in Response to Finding: The City will create policies to be adopted by the Council. 3. Official Responsible for Ensuring CAP: Katie Steen, City Clerk, and Dan Joel, Superintendent of...

1. Explanation of Disagreement with Audit Finding There is no disagreement with the audit finding. 2. Actions Planned in Response to Finding: The City will create policies to be adopted by the Council. 3. Official Responsible for Ensuring CAP: Katie Steen, City Clerk, and Dan Joel, Superintendent of the Utilities, are the officials responsible for ensuring corrective action of the finding. 4. Planned Completion Date for CAP: The planned completion date is December 31, 2025. 5. Plan to Monitor Completion of CAP: The Council will be monitoring this corrective action plan.

View Audit 357712

Finding 562081 (2024-002)

Material Weakness 2024

Charter Township of Northville

MI

Procurement, Suspension & Debarment Allowable Costs / Cost Principles § 200.501

Condition: The Township engaged a contractor to perform procurement activities funded by the revenue loss component of their Coronavirus State and Local Fiscal Recovery Funds award and did not have controls in place to ensure that the contractor was following the Township's procurement policy relate...

Condition: The Township engaged a contractor to perform procurement activities funded by the revenue loss component of their Coronavirus State and Local Fiscal Recovery Funds award and did not have controls in place to ensure that the contractor was following the Township's procurement policy related to, specifically checking and ensuring vendors were not suspension and debarred prior to the Township entering into the agreements with the contractors. Planned Corrective Action: As part of the procurement process, the Township will require all contractors to provide documentation verifying that neither they nor their subcontractors are suspended or debarred from conducting business with federal agencies. This verification will be conducted through the federal System for Award Management (SAM.gov). To ensure compliance, procurement files will include printed or electronically saved screenshots from SAM.gov confirming the status of each contractor and subcontractor at the time of the contract award. Contact person responsible for corrective action: Wendy Hillman Anticipated Completion Date: 12/31/2025

View Audit 357711

Finding 562064 (2024-003)

Significant Deficiency 2024

La Casa De Buena Salud, Inc.

NM

Reporting Allowable Costs / Cost Principles Cash Management § 200.302 § 200.303 § 200.305

The reconciliation process implemented in Finding 2024-001 includes a formal method of matching drawdowns to allowable expenditures. Each grant will continue to be tracked in a separate cost center and La Casa will document the reconciled expenditures in the general ledger to amounts drawn from eac...

The reconciliation process implemented in Finding 2024-001 includes a formal method of matching drawdowns to allowable expenditures. Each grant will continue to be tracked in a separate cost center and La Casa will document the reconciled expenditures in the general ledger to amounts drawn from each grant. The monthly reconciliation will be reviewed by the CFO to ensure that revenue is recognized in accordance with ASC 958-605 and that federal expenditures reported on the SEFA and financial statements comply with 2 CFR §§200.302, 200.303, and 200.305. The CFO will utilize the reconciliations to prepare the SF-425 filings and confirm that cumulative drawdowns reconcile to allowable costs and recorded revenues. All supporting documentation will be retained electronically and included in monthly close procedures.

View Audit 357668

Finding 562030 (2024-001)

Significant Deficiency 2024

Fife School District No.417

WA

School Nutrition Programs Subrecipient Monitoring Cash Management

Finding ref number: 2024-001 Finding caption: The District did not have adequate internal controls for ensuring compliance with federal eligibility and paid lunch equity requirements. Name, address, and telephone of Fife School District contact person: Dany Wanner, Business Services Director 1720 Oa...

Finding ref number: 2024-001 Finding caption: The District did not have adequate internal controls for ensuring compliance with federal eligibility and paid lunch equity requirements. Name, address, and telephone of Fife School District contact person: Dany Wanner, Business Services Director 1720 Oak St, Milton, WA 98354 (253) 517-1000 ext 29121 Corrective action the auditee plans to take in response to the finding: The Fife School District implemented the following to Ensure Adequate Internal Controls for Compliance with Federal Eligibility: The Business Services team and Nutrition Services staff have conducted a thorough review of the process of monthly paid lunch equity and modified its procedures including developing a checklist for the process to ensure that it is completed in a timely manner, signed/dated and saved both electronically and in hard copy on a shared district server folder. The Fife School District implemented the following to Ensure Adequate Internal Controls for the annual completion of the Paid Lunch Equity Tool. The Business Services team and Nutrition Services staff have conducted a thorough review of the process of completing both the PLE tool and GL 828 reconciliation and modified its procedures to ensure that it is completed, signed and saved both electronically and in hard copy on a shared district server folder. Further, the Business Services team and Nutrition Services staff have developed a checklist for the completion of the tool and the checking of the box that indicates that we will be opting not to increase meal prices, but instead to demonstrate using the GL 828 Reconciliation (signed and dated) that we have sufficient fund balance to offset the paid lunches and not utilize Federal funds, including calendar reminders and a shared Google Drive to hold all related documents and procedures. Anticipated date to complete the corrective action: 5/16/2025

View Audit 357621

Finding 561981 (2024-004)

Material Weakness 2024

Colorado Legal Services, INC

CO

Questioned Costs Allowable Costs / Cost Principles HUD Housing Programs § 200.403

Aging Cluster – Special Programs for the Aging, Title III, Part B – Assistance Listing No. 93.044 Recommendation: We recommend that the Organization consider updating its salaries and wages cost allocation methodology and process to reduce the frequency of manual adjustments based on review of indi...

Aging Cluster – Special Programs for the Aging, Title III, Part B – Assistance Listing No. 93.044 Recommendation: We recommend that the Organization consider updating its salaries and wages cost allocation methodology and process to reduce the frequency of manual adjustments based on review of individual time records and expense data and maximize the use of automated allocations based on employees’ time and effort records, effective compensation during work periods, and that are calculated in a consistent manner. We also recommend that the Organization maintain contemporaneous documentation supporting all cost allocations. Explanation of Disagreement With Audit Finding: Management does not agree with this finding. LSC program letter 22-5 emphasizes the importance of reconciliations of timekeeping reports with labor costs, distribution report or alternative reports. CLS prioritizes this practice of reconciliation and used it during the last months of 2024 to improve internal controls and minimize potential errors. We do not believe that CLA fully and fairly considered CLS’s thorough and complete reconciliation. A “material weakness” is defined as a deficiency “such that there is a reasonable possibility that a material misstatement of the entity’s financial statements will not be prevented, or detected and corrected, on a timely basis.” Given that reconciliation is part of our internal control process used to prevent and detect/correct any errors, it should have been fully considered and is unfairly excluded from the review. For this reason, CLS considers that this is not a material weakness as the reconciliation caught and corrected these errors. Finally, the total amount of this finding is very low and should not rise to the level of material weakness. Action Taken in Response to Finding: The Organization will review this finding and current methodology and propose corrections as part of a broader review of its technologies. Name of the Contact Person Responsible for Corrective Action: Silvia Zelaya, Finance Director Planned Completion Date for Corrective Action Plan: January 2026

View Audit 357595 Questioned Costs: $1

Corrective Action Plans

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