Corrective Action Plans

Finding 521131 (2024-003)

Material Weakness 2024

IN

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

FINDING 2024-003 Finding Subject: Child Nutrition Cluster (School Lunch) – Allowable Cost Summary of Finding: The payroll for non-certified employees for the 2023-2024 school year has not been approved by the board, leading to a lack of verification for salaries paid from fund 800. As a result, any ...

FINDING 2024-003 Finding Subject: Child Nutrition Cluster (School Lunch) – Allowable Cost Summary of Finding: The payroll for non-certified employees for the 2023-2024 school year has not been approved by the board, leading to a lack of verification for salaries paid from fund 800. As a result, any payroll for non-certified employees paid after August 1, 2023 from fund 800 cannot be verified. Contact Person Responsible for Corrective Action: Robin Popejoy Contact Phone Number and Email Address: 317.758.4172 – rpopejoy@sheridan.k12.in.us Views of Responsible Officials: We concur with the finding. Description of Corrective Action Plan: The salary schedules will be submitted to the board for approval. Anticipated Completion Date: May – August 2025

View Audit 341082 Questioned Costs: $1

Finding 521103 (2024-002)

Material Weakness 2024

City of Auburn

CA

Allowable Costs / Cost Principles Material Weakness § 200.430

Planned Corrective Action: The City will ensure actual costs are charged to the program as part of the annual reporting process. Anticipated Completion Date: December 30, 2024 Responsible Contact Person: Gretchen Johnson, Finance Director

View Audit 341029

Finding 521070 (2024-002)

Material Weakness 2024

Northwestern Michigan College

MI

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

Condition: The College’s internal control in place for manual journal entries did not identify unallowable costs reported in the SEFA. Planned Corrective Action: While the College currently has controls in place to review all manual journal entries, we will adjust our review process going forward to...

Condition: The College’s internal control in place for manual journal entries did not identify unallowable costs reported in the SEFA. Planned Corrective Action: While the College currently has controls in place to review all manual journal entries, we will adjust our review process going forward to incorporate additional oversight for any manual journal entries impacting Federal grants. Going forward, the Controller will review all manual journal entries impacting Federal grants, and the Vice President of Finance will provide a second level review of any such entries that equal or exceed $50,000. Contact person responsible for corrective action: Troy Kierczynski, Vice President for Finance & Administration Anticipated Completion Date: Immediately

View Audit 340980 Questioned Costs: $1

Finding 521042 (2024-002)

Significant Deficiency 2024

North Fork Area Transit

NE

Allowable Costs / Cost Principles § 200.303 § 200.430

Views of Responsible Officials The Organization agrees with this finding. Corrective Action Plan The Organization has strengthened its internal controls over payroll transactions in order to comply with laws, regulations, and grant agreements. Additionally, the pass-through entity has increased its ...

Views of Responsible Officials The Organization agrees with this finding. Corrective Action Plan The Organization has strengthened its internal controls over payroll transactions in order to comply with laws, regulations, and grant agreements. Additionally, the pass-through entity has increased its documentation requirements which helps the Organization ensure that it possesses compliant payroll documentation. Further, the Organization plans to review its personnel files to ensure that adequate documentation exists to support approved rates of pay. Name(s) of Responsible Individuals Lacy Kimes, Board President Anticipated Completion Date Partially implemented; partially ongoing. Personnel file review anticipated completion February 28, 2025.

View Audit 340916

Finding 520954 (2024-002)

Significant Deficiency 2024

Orion Area Not-for Profit Housing Corporation

MI

HUD Housing Programs Allowable Costs / Cost Principles Eligibility

Corrective Action Plan Orion Area Non-Profit Housing Corporation Project No. 044-11113 Year Ended June 30, 2024 January 31, 2025 FEDERAL AWARD FINDINGS AND QUESTIONED COSTS 2024-002 – Eligibility - Tenant Income Threshold Finding Type. Immaterial noncompliance, Significant deficiency in internal...

Corrective Action Plan Orion Area Non-Profit Housing Corporation Project No. 044-11113 Year Ended June 30, 2024 January 31, 2025 FEDERAL AWARD FINDINGS AND QUESTIONED COSTS 2024-002 – Eligibility - Tenant Income Threshold Finding Type. Immaterial noncompliance, Significant deficiency in internal controls over compliance (Eligibility) Federal programs U.S. Department of Housing and Urban Development  Section 8 Housing Assistance Payments (ALN# 14.195) Condition. Less than 40% of tenants who moved into the property during the year met the extremely low-income threshold and management did not maintain records of marketing efforts targeted to extremely low-income families, demonstrating that reasonable efforts were made to fill available units accordingly and that such efforts are ongoing. Effect. As a result of this condition, the Project failed to meet the prescribed income targeting requirements and documentation of marketing efforts to reach the target population. Plan. Management agrees with finding 2024-002. Management agrees to target extremely low-income individuals for residence, and to retain marketing records that support this effort. Contact Person Responsible for This Corrective Action: Laura Maisevich, Senior Housing Manager Anticipated completion date: June 30, 2025

View Audit 340845

Finding 520950 (2024-001)

Significant Deficiency 2024

East Detroit Area Non-Profit Housing Corporation

MI

Allowable Costs / Cost Principles Eligibility HUD Housing Programs

Corrective Action Plan East Detroit Area Non-Profit Housing Corporation Project No. 044-EH221 Year Ended June 30, 2024 January 31, 2025 FEDERAL AWARD FINDINGS AND QUESTIONED COSTS 2024-001 – Eligibility - Tenant File Documentation Finding Type. Immaterial noncompliance, Significant deficiency in...

Corrective Action Plan East Detroit Area Non-Profit Housing Corporation Project No. 044-EH221 Year Ended June 30, 2024 January 31, 2025 FEDERAL AWARD FINDINGS AND QUESTIONED COSTS 2024-001 – Eligibility - Tenant File Documentation Finding Type. Immaterial noncompliance, Significant deficiency in internal controls over compliance (Eligibility) Federal programs U.S. Department of Housing and Urban Development  Supportive Housing for the Elderly (ALN# 14.157) Condition. Out of a sample of 6 tenant files, it was noted: 1. One out of six instances where an EIV was not run for a tenant file within 90 days of move in; 2. One out of six instances where a refund was not disbursed to a tenant within 60 days of move-out; 3. Two out of six instances where the incorrect checking account balance was used in the verification of tenant assets; Effect. As a result of this condition, employees did not follow HUD guideline procedures, and/or did not properly calculate the tenant subsidy in HUD Form 50059. While there were no significant differences in the amount of subsidies allowed compared to subsidies received, the lack of effective internal controls could lead to future significant noncompliance. Plan. Management agrees with finding 2024-001. All files are to be inspected in the current fiscal year to ensure compliance with HUD regulations. File maintenance will be competed following each move in and annual recertification. In addition to one-on-one training, the housing administrator has signed up for additional training including a WebEx on annual recertification and a basic EIV course. Additional training sessions are forthcoming. Contact Person Responsible for This Corrective Action: Laura Maisevich, Senior Housing Manager Anticipated completion date: 1/31/2025

View Audit 340843

Finding 520948 (2024-002)

Significant Deficiency 2024

Highland Area Non-Profit Housing Corporation

MI

HUD Housing Programs Allowable Costs / Cost Principles Eligibility

Corrective Action Plan Highland Area Non-Profit Housing Corporation Project No. 044-11111 Year Ended June 30, 2024 January 31, 2025 FEDERAL AWARD FINDINGS AND QUESTIONED COSTS 2024-002 – Eligibility - Tenant Income Threshold Finding Type. Immaterial noncompliance, Significant deficiency in inter...

Corrective Action Plan Highland Area Non-Profit Housing Corporation Project No. 044-11111 Year Ended June 30, 2024 January 31, 2025 FEDERAL AWARD FINDINGS AND QUESTIONED COSTS 2024-002 – Eligibility - Tenant Income Threshold Finding Type. Immaterial noncompliance, Significant deficiency in internal controls over compliance (Eligibility) Federal programs U.S. Department of Housing and Urban Development  Section 8 Housing Assistance Payments (ALN# 14.195) Condition. Less than 40% of tenants who moved into the property during the year met the extremely low-income threshold and management did not maintain records of marketing efforts targeted to extremely low-income families, demonstrating that reasonable efforts were made to fill available units accordingly and that such efforts are ongoing. Effect. As a result of this condition, the Project failed to meet the prescribed income targeting requirements and documentation of marketing efforts to reach the target population. Plan. Management agrees with finding 2024-002. Management agrees to target extremely low-income individuals for residence, and to retain marketing records that support this effort. Contact Person Responsible for This Corrective Action: Laura Maisevich, Senior Housing Manager Anticipated completion date: June 30, 2025

View Audit 340840

Finding 520902 (2024-011)

Material Weakness 2024

Wheeling Jesuit University INC

WV

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

FINDING 2024-011 Name of Responsible Individual: Tyler Hosey, Senior Accountant Corrective Action: The University acknowledges that the records to substantiate the payroll costs were insufficient and lacking internal controls. Going forward the University plans to implement a strategic process ...

FINDING 2024-011 Name of Responsible Individual: Tyler Hosey, Senior Accountant Corrective Action: The University acknowledges that the records to substantiate the payroll costs were insufficient and lacking internal controls. Going forward the University plans to implement a strategic process to document time and effort associated with research and development cluster and it’s federal grants. All employees that work with the Challenger Learning Center will continue to have their hours worked documented in the Paycom payroll software. Payroll is processed on a biweekly basis, and therefore on biweekly basis the payroll costs from the Challenger Learning Center will be reimbursed to the University from the various Challenger Learning Center bank accounts. This will be done as a percentage of time worked for the NIH Grant, the NASA Grant, and the general Challenger Learning Center functions. Anticipated Completion Date: June 2025

View Audit 340797 Questioned Costs: $1

Finding 520883 (2024-002)

Significant Deficiency 2024

Shawmet Homes, Inc.

MO

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

Recommendation: The Organization should review of its operating and maintenance policies and procedures, as well as review by the individuals monitoring the operating and maintenance of the property, to ensure that the necessary documentation showing that resident problems or concerns were responded...

Recommendation: The Organization should review of its operating and maintenance policies and procedures, as well as review by the individuals monitoring the operating and maintenance of the property, to ensure that the necessary documentation showing that resident problems or concerns were responded to in a timely manner is being completed. View of Responsible Officials and Corrective Actions: Shawmet Homes, Inc. has, and will continue to complete problems or concerns raised by tenants, and only failed to document timely completion within in our management system. The Organization has reviewed its staffing and implemented training, and periodic reviews of the work order system, to ensure that the documentation is being completed timely.

View Audit 340740

Finding 520877 (2024-002)

Material Weakness 2024

Vandalia Cusd 203

IL

Internal Control / Segregation of Duties Allowable Costs / Cost Principles

Payroll disbursements will align to the approved salary schedule.

View Audit 340710

Finding 520867 (2024-003)

Material Weakness 2024

Vandalia Cusd 203

IL

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

Payroll disbursements will align to the approved salary schedule.

View Audit 340710

Finding 520865 (2024-004)

Significant Deficiency 2024

Linden-Kildare Consolidated Independent School District

TX

Questioned Costs Allowable Costs / Cost Principles Cash Management

Due to the transition of personnel within the payroll and business office during the year, the District did not properly account for amounts that were previously requested under the grant as well as expense reversals that occurred near year-end. The District will take the recommendation of the audit...

Due to the transition of personnel within the payroll and business office during the year, the District did not properly account for amounts that were previously requested under the grant as well as expense reversals that occurred near year-end. The District will take the recommendation of the auditors and implement additional controls to monitor compliance with federal program guidelines.

View Audit 340692 Questioned Costs: $1

Finding 520793 (2024-003)

Significant Deficiency 2024

Central District Health Department

NE

Questioned Costs Allowable Costs / Cost Principles Subrecipient Monitoring

Views of Responsible Officials The Health Department agrees with this finding. Corrective Action Plan The Health Department will establish a system of internal controls to identify grants which do not allow the reimbursement of indirect costs. After the auditor brought forth this instance of noncomp...

Views of Responsible Officials The Health Department agrees with this finding. Corrective Action Plan The Health Department will establish a system of internal controls to identify grants which do not allow the reimbursement of indirect costs. After the auditor brought forth this instance of noncompliance, the Health Department immediately contacted the Nebraska Department of Health and Human Services to establish a plan for corrective action. Name of Responsible Individual Teresa Anderson, Health Director Anticipated Completion Date January 31, 2025

View Audit 340597 Questioned Costs: $1

Finding 520780 (2024-001)

Significant Deficiency 2024

Town of Hooksett

NH

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

Audit Finding Reference: 2024-001 Management’s Response and Planned Corrective Action: The Town acknowledges the need to formalize written policies and procedures to comply with Uniform Guidance requirements. We are in the process of developing and implementing comprehensive policies addressing all...

Audit Finding Reference: 2024-001 Management’s Response and Planned Corrective Action: The Town acknowledges the need to formalize written policies and procedures to comply with Uniform Guidance requirements. We are in the process of developing and implementing comprehensive policies addressing allowable costs, employee travel, cash management, equipment and inventory, procurement, and subrecipient monitoring. Name of Contact Person and Completion Date: Name 1: Christine Tewksbury Name 2: Anticipated Completion Date – March 2025

View Audit 340575

Finding 520699 (2024-004)

Significant Deficiency 2024

Community Action of Southern Indiana

IN

Allowable Costs / Cost Principles Eligibility

Response: The Agency acknowledges this error and agrees with the recommendations. The Agency provides the additional context that the purge of records was carried out by a previous program staff member who was terminated from the Agency. The Agency has adopted a new Document Retention and Destructio...

Response: The Agency acknowledges this error and agrees with the recommendations. The Agency provides the additional context that the purge of records was carried out by a previous program staff member who was terminated from the Agency. The Agency has adopted a new Document Retention and Destruction Policy, and all program and administrative staff leadership has received training on the new policy

View Audit 340424

Finding 520691 (2024-001)

Material Weakness 2024

Lakeview Soil and Water Conservation District

OR

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

Views of REsponsible Officials and Planned Corrective Actions. We agree with this finding. LSWCD has a good Financial Manager familiar with operations of soil and water conservation districts. LSWCD will provide online and other training for the Financial Manager to gain knowledge of governmental ac...

Views of REsponsible Officials and Planned Corrective Actions. We agree with this finding. LSWCD has a good Financial Manager familiar with operations of soil and water conservation districts. LSWCD will provide online and other training for the Financial Manager to gain knowledge of governmental accounting, federal single audit requirements, and USGAAP in an effort to accurate financial statements, reduce audit costs, and avoid errors in and omissions of year-end accruals. provide

View Audit 340383

Finding 520661 (2024-002)

Significant Deficiency 2024

Martin County

NC

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

2024-002 Inadequate Documentation Maintained. Name of Contact Person - Angela Ellis, DSS Director. The DSS department will offer additional training to all case workers to ensure proper documentation requirements and proper review procedures are being followed to ensure files are properly maintai...

2024-002 Inadequate Documentation Maintained. Name of Contact Person - Angela Ellis, DSS Director. The DSS department will offer additional training to all case workers to ensure proper documentation requirements and proper review procedures are being followed to ensure files are properly maintained going forward. Employees will be retrained on what files should contain and the importance of complete and accurate record keeping. In addition, additional training will be provdied on online verifications, documented resources of income and those amounts agree to information in NC FAST. Proposed Completion Date: March 31, 2025

View Audit 340373

Finding 520643 (2024-002)

Significant Deficiency 2024

North Country Food Bank, Inc.

MN

Questioned Costs Allowable Costs / Cost Principles § 200.421

Contact Person: Susie Novak Boelter, Executive Director Corrective Action Plan: The Food Bank will review their procedures for allocating expenses to grants to ensure only allowable expenses are charged to the grant. Completion Date: Immediately

View Audit 340321 Questioned Costs: $1

Finding 520619 (2024-001)

Significant Deficiency 2024

Tolleson Elementary School District No. 17

AZ

Questioned Costs Allowable Costs / Cost Principles School Nutrition Programs

Findings and Questioned Costs Related to Federal Awards Finding Number: 2024‐001 Program Name/Assistance Listing Title: Child Nutrition Cluster Assistance Listing Numbers: 10.553, 10.555, 10.559 Contact Person: Anita Percell, Executive Director of Business Services Anticipated Completion Date: June ...

Findings and Questioned Costs Related to Federal Awards Finding Number: 2024‐001 Program Name/Assistance Listing Title: Child Nutrition Cluster Assistance Listing Numbers: 10.553, 10.555, 10.559 Contact Person: Anita Percell, Executive Director of Business Services Anticipated Completion Date: June 30, 2025 Planned Corrective Action: The District acknowledges the findings regarding the overcharging of indirect costs and is committed to ensuring full compliance with the federal cost principles and guidelines established by USDA and ADE. We will implement strengthened procedures, provide targeted training for relevant staff, and promptly reimburse the questioned costs.

View Audit 340268 Questioned Costs: $1

Finding 520608 (2024-006)

Material Weakness 2024

Harmony Area School District

PA

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

Action Taken: Management agrees with the recommendations. The procedures in the business office will be modified and internal controls followed to ensure that payments based on quotes are prohibited. The business office staff will be more involved in the cash/accounts payable function and will be ed...

Action Taken: Management agrees with the recommendations. The procedures in the business office will be modified and internal controls followed to ensure that payments based on quotes are prohibited. The business office staff will be more involved in the cash/accounts payable function and will be educated on proper accounting principles. If an error is discovered by the staff, the business manager will be notified and the error documented and corrected in a timely manner. Controls will include a two-person monitoring of cash/accounts payable.

View Audit 340240

Finding 520602 (2024-004)

None 2024

Harmony Area School District

PA

Questioned Costs Procurement, Suspension & Debarment Allowable Costs / Cost Principles

Action Taken: Management agrees with the recommendation, and personnel involved in purchasing, especially those in the business office, will obtain a better understanding of the federal and state procurement thresholds, ensuring that bids or quotes will be obtained, as necessary. The Pennsylvania bu...

Action Taken: Management agrees with the recommendation, and personnel involved in purchasing, especially those in the business office, will obtain a better understanding of the federal and state procurement thresholds, ensuring that bids or quotes will be obtained, as necessary. The Pennsylvania bulletin has been provided by the auditor, and we will use that as a reference, in addition to the District’s own policy.

View Audit 340240 Questioned Costs: $1

Finding 520599 (2024-003)

None 2024

Harmony Area School District

PA

Questioned Costs Procurement, Suspension & Debarment Allowable Costs / Cost Principles

Action Taken: Management agrees with the recommendations and will obtain a better understanding of encumbrances, especially with regard to grant programs, and will record expenditures only for items or services received.

View Audit 340240 Questioned Costs: $1

Finding 520568 (2024-002)

Significant Deficiency 2024

Buncombe County, Nc

NC

Allowable Costs / Cost Principles Reporting Cash Management

2024-002 Significant Deficiency over Activities Allowed and Unallowed and Allowable Costs/Cost Principles The auditors recommend that the County implements a review control over weekly timesheets to ensure the timesheets include all program time coded on the day sheets. NCDHHS policy requires ...

2024-002 Significant Deficiency over Activities Allowed and Unallowed and Allowable Costs/Cost Principles The auditors recommend that the County implements a review control over weekly timesheets to ensure the timesheets include all program time coded on the day sheets. NCDHHS policy requires program salaries to be allocated and supported by payroll and attendance records for individuals. There is no disagreement with this audit finding.The County will develop and deliver day sheet training which will be required for all staff responsible for completing these reports. The County will also conduct random reviews monthly. Any discrepancies identified will be provided to staff leadership for support and correction. The County will implement additional reviews if errors are identified until corrections are made. New reporting will be created to track review findings and will be shared with the Quality and Performance Officer or their designee. Person responsible for correction action: Leigh Anderson, HHS Business Administrator Completion date: 1/31/2025 – Day sheet training 3/1/2025 – Begin review of random of day sheets and timesheets 4/25/2025 – Report tracking of review findings

View Audit 340126

Finding 520293 (2024-003)

Significant Deficiency 2024

T.a. Lawson State Community College

AL

Questioned Costs Allowable Costs / Cost Principles Significant Deficiency

Management's Response: The College will strengthen its policies and procedures surrounding payroll grant disbursements to ensure expenses are properly approved and allowable under the specific grant budget. Management will ensure that budgets are amended when changes in pay rates occur during the ...

Management's Response: The College will strengthen its policies and procedures surrounding payroll grant disbursements to ensure expenses are properly approved and allowable under the specific grant budget. Management will ensure that budgets are amended when changes in pay rates occur during the grant award periods. Anticipated Completion Date: February 28, 2025

View Audit 340025 Questioned Costs: $1

Finding 520291 (2024-002)

Significant Deficiency 2024

T.a. Lawson State Community College

AL

Questioned Costs Allowable Costs / Cost Principles Cash Management

Management's Response: The College will strengthen its policies and procedures surrounding non-payroll grant disbursements to ensure disbursements are approved, allowable, and calculations supported. Management will review budgets on a monthly basis to ensure expenses do not exceed the budget. M...

Management's Response: The College will strengthen its policies and procedures surrounding non-payroll grant disbursements to ensure disbursements are approved, allowable, and calculations supported. Management will review budgets on a monthly basis to ensure expenses do not exceed the budget. Management will review indirect cost calculations to ensure they are calculated at the correct percentages. Management will review invoices three months past year end to ensure the proper accrual of expenses. Anticipated Completion Date: February 28, 2025

View Audit 340025 Questioned Costs: $1

Corrective Action Plans

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