Corrective Action Plans

Finding 541881 (2024-021)

None 2024

LA

Questioned Costs Allowable Costs / Cost Principles § 200.303

Dear Mr. Waguespack: The Department of Children and Family Services (DCFS) has received the finding titled "Unauthorized Employee Fuel Transactions." The finding states that the Department of Children and Family Services (DCFS), Bureau of Audit and Compliance Services, investigated and identified ...

Dear Mr. Waguespack: The Department of Children and Family Services (DCFS) has received the finding titled "Unauthorized Employee Fuel Transactions." The finding states that the Department of Children and Family Services (DCFS), Bureau of Audit and Compliance Services, investigated and identified multiple instances of unauthorized fuel transactions made by a former DCFS employee, estimated at approximately $97,500 in fiscal year 2024. Of that total, $5,191 was charged to the Social Services Block Grant program and $32,555 was charged to the Foster Care program through the cost allocation process. DCFS concurs with the finding and has zero tolerance for unauthorized use of state or federal funds. The department's Fleet Manager has developed monitoring reports to review transactions on a monthly basis. The results of these reviews will be communicated with the Director of Administrative Services who will ensure compliance with the established policies and procedures governed by the Fleet Card Program. The department has also established adequate segregation of duties to the Fleet Coordinators in the field offices. Any DCFS employee engaged in such an unauthorized use of state and federal funds would be terminated. If you have any additional questions, please reach out to Director of Administrative Services. Tina Hebert, who oversees Fuel Purchasing Program. You can reach her at (225) 342-1875 or Tina.Hebert.DCFS@la.gov.

View Audit 350759 Questioned Costs: $1

Finding 541860 (2024-006)

Material Weakness 2024

State of Louisiana

LA

Questioned Costs Allowable Costs / Cost Principles Special Tests & Provisions § 200.308 § 200.430

Dear Mr. Waguespack, Please find below the University's management response to the audit finding titled "Control Weakness and Noncompliance with Personnel Expenses Charged to Federal Awards." Management Response: The University partially concurs with the finding. The audit finding states that UL...

Dear Mr. Waguespack, Please find below the University's management response to the audit finding titled "Control Weakness and Noncompliance with Personnel Expenses Charged to Federal Awards." Management Response: The University partially concurs with the finding. The audit finding states that UL Lafayette did not perform time and effort certifications for the period January 1, 2024, through June 30, 2024. However, we clarify that these certifications were not intentionally omitted. As outlined in our prior response, the University has been transitioning from a manual to an electronic effort certification system. In the transition, we had opted shifting from a fiscal year-based reporting framework to a calendar-year-based framework. The effort certifications for the period in question are scheduled for completion by April 15, 2025, at which point they will fully support that salaries and wages charged to federal awards are based on records accurately reflecting work performed. Corrective Actions: • The University has developed a structured plan to complete the January 1, 2024 — June 30, 2024 effort certifications, ensuring compliance with 2 CFR §200.430(i), which requires after-the-fact confirmation of personnel costs. • The Standard Operating Procedure (SOP) will be updated to require biannual effort reporting, enhancing monitoring of personnel effort. • The University will retain the full calendar-year effort reports (January 1, 2024 — December 31, 2024), including the January 1, 2024 — June 30, 2024 period, electronically on file for audit and compliance purposes. Planned Actions: • Completion of Effort Certifications: The University will finalize and retain the calendar-year effort reports for January 1, 2024 — December 31, 2024, by April 15, 2025, ensuring compliance with federal regulations and addressing audit concerns. • Transition to Biannual Effort Reporting: Effective FY 2025, UL Lafayette will implement biannual effort reporting to enhance compliance and personnel effort monitoring. The updated SOP will reflect this change. • The University will make every effort to secure effort certification for Key personnel leaving the university prior to their departure. The University remains committed to making continuous improvements and appreciates your understanding and support as we address these challenges.

View Audit 350759 Questioned Costs: $1

Finding 541859 (2024-007)

Significant Deficiency 2024

State of Louisiana

LA

Questioned Costs Allowable Costs / Cost Principles Period of Performance § 200.308 § 200.309 § 200.344 § 200.403

Dear Mr. Waguespack, Please find below the University's management response to the audit finding titled “Noncompliance with Period of Performance Requirements." Management Response: The University concurs with the audit finding. Expense Posting Delay ($28,833): This salary charge reflects work pe...

Dear Mr. Waguespack, Please find below the University's management response to the audit finding titled “Noncompliance with Period of Performance Requirements." Management Response: The University concurs with the audit finding. Expense Posting Delay ($28,833): This salary charge reflects work performed within the approved award period. The delay occurred because the Personnel Action Form was received after the June payroll run, resulting in disbursements in July and August. Although the work was completed on time, the payroll posting did not align with the period of performance requirements. We are reviewing our processes to ensure all required documentation is received and processed promptly. Liquidation of Obligations ($34,957): The University failed to liquidate obligations totaling $34,957 within 120 days following the period of performance. This shortfall is due to staffing challenges in the Sponsored Programs Finance Administration and Compliance (SPFAC) Department. The University is actively exploring strategies to attract and retain qualified grant accountants to improve timely fund closeouts. Additional Mitigation Measures 1. Engaging External Consultants: o The University will engage an outside consultant to assess the university's research and administration structure, identifying opportunities to enhance processes and ensure compliance. o The University is retaining interim professional staffing to assist with invoicing and pre-audit review and to provide functional and technical expertise. 2. Deployment of an Electronic Research Administration System (eRA) o The University has begun identifying and implementing an electronic research administration system to transform grant management by offering a centralized platform that automates the entire lifecycle from proposal to closeout, minimizing manual errors while ensuring policy compliance and providing clear portfolio visibility through comprehensive reporting capabilities. The SPFAC Director will oversee the implementation of these corrective actions.

View Audit 350759 Questioned Costs: $1

Finding 541847 (2024-005)

Material Weakness 2024

State of Louisiana

LA

Allowable Costs / Cost Principles Reporting Procurement, Suspension & Debarment § 200.303 § 200.430

Dear Mr. Waguespack, Thank you for the opportunity to respond to your office’s findings related to federal research and development expenses. LSU Health Sciences Center in Shreveport (LSUHSC-S) has reviewed the issues identified by your staff. LSUHSC-S concurs with the recommendations to address th...

Dear Mr. Waguespack, Thank you for the opportunity to respond to your office’s findings related to federal research and development expenses. LSU Health Sciences Center in Shreveport (LSUHSC-S) has reviewed the issues identified by your staff. LSUHSC-S concurs with the recommendations to address the findings and provides the following response and corrective action plan. Recommendation: Management should ensure they have adequate controls over time and effort certifications, purchases, and reimbursement requests. In addition, management should ensure adequate segregation of duties covering approvals of all transaction types. Response and Corrective Action Plan: Effective FY25, LSUHSC-S has implemented an electronic Time & Effort certification system through PeopleSoft in conjunction with New Orleans. Training in the new system was provided by the New Orleans IT Department to all departmental Business Managers. Technical support questions are addressed by OSP Post Award and New Orleans IT Department. LSUHSC-S Administrative Directive 4.4 will be revised to include the new electronic process. The Office of Research Administration will hold Post-Award Monitoring meetings with all principal investigators and designated departmental staff on a quarterly basis. These meetings will begin in March 2025. During these meetings, Grant Managers from OSP Post Award will review grant ledgers to ensure that all grant accounts are reconciled monthly. Departmental Business Managers will sign off on the completed monthly reconciliations. Personnel expenditures will be included in this monthly review. Discrepancies will be reviewed with the PI and business manager for accuracy and possible corrective action plan. Prior to submission, OSP Pre-Award will provide the RPPR to the PI and Business Manager for review and certification, to ensure time and effort allocations match the current budget and PER report. OSP Pre-Award will aid Business Managers as needed. A new PER electronic system was implemented and the AD for Cost Transfer is being revised and approved. The revised AD will require greater detail in the justification for changes in source funding for salaries. Justification must meet the requirements in the revised AD. A new Standard Administrative Procedure will be implemented in March 2025 that requires all salary changes on grant accounts to be made no later than 90-days after the effective date. All requests that are greater than 90 days will be evaluated through a rigorous review process and may or may not be approved. LSUHSC-S Research Administration will ensure accurate information is available and provided to auditors upon request in a timely manner. LSUHSC-S will explore the implementation of additional PS module vendor transaction utility, such as adding more approvers, to ensure adequate segregation of duties for approval. The removal of the ability for self-approval of requisitions within the PeopleSoft requisition workflow will prevent a requestor and an approver from being the same person. A monthly report will be auto-generated and emailed (ad-hoc ability as well) to the Director of Purchasing and the Executive Director of Financial Operations. The report will list detailed requisition information to include the requestor names and approver names of requisitions created for that period for review to ensure the approval process is properly working. Name of Contact(s) Responsible for Action Plan Ramey Benfield, Chief Financial Officer, Vice Chancellor for Research Administration Jen Katzman, Vice Chancellor, Administration and Budget (with Departmental Business Managers) Tracy Calvert, Associate Director, Office for Sponsored Programs Post Award William Haacker, Assistant Director, Office for Sponsored Programs Post Award Steven McAlister, Associate Director of General Accounting Anticipated Completion Date: Continuous

View Audit 350759

Finding 541844 (2024-003)

Significant Deficiency 2024

State of Louisiana

LA

Allowable Costs / Cost Principles § 200.303 § 200.400

Dear Mr. Waguespack: The Department of Children and Family Services (DCFS) has received the finding titled “Control Weakness and Noncompliance Related to Cost Allocation Process" and appreciates the opportunity to provide this response to your office's finding. Finding: The Department of Children ...

Dear Mr. Waguespack: The Department of Children and Family Services (DCFS) has received the finding titled “Control Weakness and Noncompliance Related to Cost Allocation Process" and appreciates the opportunity to provide this response to your office's finding. Finding: The Department of Children and Family Services did not have adequate controls in place to ensure the correct allocation of expenditures in accordance with the Cost Allocation Plan, which assigns costs to federal programs. Recommendation: DCFS should strengthen internal controls over the cost allocation review process. DCFS Response: DCFS concurs with the LLA's finding and recommendation. Corrective Action Plan: DCFS's Division of Management and Finance has implemented a corrective action plan aimed at addressing the identified issue and strengthening internal controls. 1. Internal Procedure Revisions: The Division of Management & Finance has trained relevant stakeholders on proper cost allocation procedures, emphasizing compliance with federal regulations and accurate reporting. Additionally, internal procedures have been revised to strengthen the review process, ensuring expenditures are correctly allocated in accordance with the Cost Allocation Plan. 2. Strengthening Internal Controls & Ongoing Monitoring: To prevent recurrence, the Cost Allocation team has implemented a more rigorous review process for cost allocation supporting documentation. This includes, but is not limited to, generating a LaGov report during the three-day fiscal month close to proactively identify any expenditures incorrectly allocated to a closed grant. This step will ensure a real-time review process, allowing errors to be detected and corrected promptly. DCFS acknowledges the importance of accurate cost allocation to ensure compliance with federal regulations and the proper distribution of expenditures across programs. Strengthening our internal controls and reviewing processes remains a top priority to prevent misallocations. Should you require additional information, please contact Christopher Bahm at Christopher.Bahm.DCFS@la.gov or (225) 219-0536.

View Audit 350759

Finding 541829 (2024-005)

None 2024

Johns Hopkins Health System

MD

Allowable Costs / Cost Principles

Finding 2024-005: Timeliness of Cost Transfers Grantor: Department of Health and Human Services, National Institute of Health (“NIH”), National Heart, Lung, and Blood Institute, Eunice Kennedy Shriver National Institute of Child Health & Human Development Cluster: Research & Development Award Names:...

Finding 2024-005: Timeliness of Cost Transfers Grantor: Department of Health and Human Services, National Institute of Health (“NIH”), National Heart, Lung, and Blood Institute, Eunice Kennedy Shriver National Institute of Child Health & Human Development Cluster: Research & Development Award Names: KidsDOTT-CCC, Pediatric Biospeciment Procure Center (BPC) supporting the Developmental Gene (dGTEx) Project Award Numbers: U01HL130048, U24HD106537 Assistance Listing Titles: Blood Diseases and Resources Research, and Child Health and Human Development Extramural Research Assistance Listing Numbers: 93.839 and 93.865 Award Years: September 15, 2016 – June 30, 2024 and September 9, 2021 – August 31, 2024 Passthrough Entity: Johns Hopkins University Management agrees with the finding and recommendation and will emphasize the importance of timely identification and submission of cost transfers, particularly on federally funded awards. A new process was implemented in FY25 which requires formal written documentation and sign-off on all cost transfers by grant Principal Investigators. JHHS will draft and implement a formal written policy about cost transfer processes in compliance with federal guidelines. Management will remediate this finding by June 30, 2025.

View Audit 350738

Finding 541826 (2024-002)

None 2024

Johns Hopkins Health System

MD

Questioned Costs Allowable Costs / Cost Principles § 200.431

Finding 2024-002: Healthy Start Fringe Rate Grantor: Department of Health and Human Services Program Title: Healthy Start Initiative Award Name: Healthy Start Initiative‐Eliminating Racial/Ethnic Disparities Award Number: H4927805 Assistance Listing Title: Healthy Start Initiative Assistance Listing...

Finding 2024-002: Healthy Start Fringe Rate Grantor: Department of Health and Human Services Program Title: Healthy Start Initiative Award Name: Healthy Start Initiative‐Eliminating Racial/Ethnic Disparities Award Number: H4927805 Assistance Listing Title: Healthy Start Initiative Assistance Listing Number: 93.926 Award Year: April 1, 2023 – August 31, 2024 Passthrough Entity: None Management agrees with the finding and recommendation. The fringe benefits were originally budgeted at 27% on the initial grant application in 2019 which has been approved by the awarding agency. The actual fringe rate posted to each department increased to 29% in FY2024. Management utilized the 29% fringe rate to charge the award based on a provision noted on the award granting the permission to re-allocate up to 25% of the award amount in each budgeted category. Management will establish a quarterly review process owned by Finance to ensure the appropriate or agreed-upon negotiated fringe rate is being charged for all awards. Management will contact DHHS for instruction on returning the funds as the FY25 benefit calculation will be adjusted to remove $5,906 of excess benefits for the Healthy Start grant. Management will remediate this finding by June 30, 2025.

View Audit 350738 Questioned Costs: $1

Finding 541079 (2024-003)

Material Weakness 2024

Manchester Community Schools

IN

Matching / Level of Effort / Earmarking Allowable Costs / Cost Principles § 200.208 § 200.303 § 200.403

FINDING 2024-003 Finding Subject: Special Education Cluster - Earmarking Contact Person Responsible for Corrective Action: Shelly Leifer Contact Phone Number and Email Address: 260.306.3359 shelly_leifer@mcs.k12.in.us Views of Responsible Officials: We concur with the finding Description of Correcti...

FINDING 2024-003 Finding Subject: Special Education Cluster - Earmarking Contact Person Responsible for Corrective Action: Shelly Leifer Contact Phone Number and Email Address: 260.306.3359 shelly_leifer@mcs.k12.in.us Views of Responsible Officials: We concur with the finding Description of Corrective Action Plan: 1. A proportionate Share Working Spreadsheet was developed and is distributed annually to service providers working with non-pub students. 2. Service providers document the following information for each corporation: Student name, Date of service, Time of Service, Number of hours, Type of Service, and any other required information. 3. Documentation is reviewed monthly. 4. Reimbursement for non-pub services is requested when reimbursement amounts reach $1,000.00 or annually, whichever comes first. Anticipated Completion Date: March 1, 2024

View Audit 350682

Finding 541071 (2024-001)

Significant Deficiency 2024

Mental Health Association of Maryland, Inc.

MD

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

Views of Responsible Officials: We acknowledge the audit finding regarding the documentation of personnel time. To address this issue, we have implemented the following corrective actions and will continue to enhance our process: 1. Enhanced Training: We are providing comprehensive training to all r...

Views of Responsible Officials: We acknowledge the audit finding regarding the documentation of personnel time. To address this issue, we have implemented the following corrective actions and will continue to enhance our process: 1. Enhanced Training: We are providing comprehensive training to all relevant staff on the importance of accurate timesheet entry/review and the proper procedures for documenting and allocating personnel expenses. 2. Improved Internal Controls: We have strengthened our internal control procedures to ensure that timesheets are completed accurately, reviewed thoroughly, and retained properly. Allocations are additionally entered into the payroll system for further accuracy. These are reviewed and approved then entered into the accounting system. This is then reconciled to the payroll system for further accuracy. 3. Regular Audits: We are conducting regular internal audits of timesheet and payroll records to ensure ongoing compliance with documentation standards and to identify any areas needing improvement. 4. Accessible Records: We have established a system for the retention of allocation documentation in a readily accessible format to facilitate future audits and ensure transparency. 5. Addressing Turnover: We recognize that high turnover rates within the finance and program departments have contributed to these issues. To mitigate this, we will continue to focus on improving staff retention through enhanced support, training, and development opportunities, ensuring continuity and consistency in our documentation processes.

View Audit 350674

Finding 541065 (2024-002)

Significant Deficiency 2024

Tasc of Southeast Oihio

OH

Allowable Costs / Cost Principles § 200.430

TASC of Southeast Ohio is currently reviewing all personnel files to ensure that all approved rates are included in the files. Internal controls surrounding the documentation of approvals of timesheets and pay raises are currently being implemented.

View Audit 350671

Finding 541059 (2024-001)

Significant Deficiency 2024

Endicott College

MA

Student Financial Aid Allowable Costs / Cost Principles Internal Control / Segregation of Duties

Finding During testing it was identified that for one (1) of thirty (30) students selected for test work, one (1) of the ten (10) required verification elements, specifically the parents’ education credits, was not accurately reflected within the student’s SAR and was not submitted for correction by...

Finding During testing it was identified that for one (1) of thirty (30) students selected for test work, one (1) of the ten (10) required verification elements, specifically the parents’ education credits, was not accurately reflected within the student’s SAR and was not submitted for correction by the institution. Endicott College Responsible Contact Maria Morelli, Director of Financial Aid Corrective Action Plan Anticipated Completion Date March 2025

View Audit 350651

Finding 541049 (2024-005)

Material Weakness 2024

North Newton School Corporation

IN

Allowable Costs / Cost Principles Matching / Level of Effort / Earmarking Internal Control / Segregation of Duties § 200.1 § 200.303 § 200.308 § 200.403

FINDING 2024-005 (Auditor Assigned Reference Number) Finding Subject: Special Education Cluster (IDEA)- Period of Performance Contact Person Responsible for Corrective Action: Julie Remschneider Contact Phone Number and Email Address: julie.r@nn.k12.in.us, 219-285-2228 Views of Responsible Officials...

FINDING 2024-005 (Auditor Assigned Reference Number) Finding Subject: Special Education Cluster (IDEA)- Period of Performance Contact Person Responsible for Corrective Action: Julie Remschneider Contact Phone Number and Email Address: julie.r@nn.k12.in.us, 219-285-2228 Views of Responsible Officials: We concur with the finding. Description of Corrective Action Plan: We will ensure the Special Education Co-op will have controls in place to make sure payments are made within the period of performance. Anticipated Completion Date: September 30, 2025

View Audit 350647

Finding 541038 (2024-002)

Significant Deficiency 2024

PA Chapter American Academy of Pediatrics

PA

Allowable Costs / Cost Principles Reporting Significant Deficiency § 200.430

Immunization Cooperative Agreements – Assistance Listing No. 93.268 During our testing, we noted the Chapter charges benefits to the programs based on an estimated allocation calculated based on the percentage of salaries as determined in the contract budget. However, we noted the Chapter does not ...

Immunization Cooperative Agreements – Assistance Listing No. 93.268 During our testing, we noted the Chapter charges benefits to the programs based on an estimated allocation calculated based on the percentage of salaries as determined in the contract budget. However, we noted the Chapter does not have internal controls in place to provide a review of the actual fringe benefits incurred. Recommendation: We recommend Pennsylvania Chapter, American Academy of Pediatrics establish a process for periodic after-the-fact reviews of interim charges made to federal awards based on budget estimates. Based on the review, management should make any necessary adjustments to the interim charges based on the results of the periodic reviews. This would ensure that the final amount charged to the federal award is accurate, allowable, and properly allocated. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: The Chapter will implement a process for the review of interim charges made to federal awards and make any necessary adjustments that ensure the final amount charged to the federal award is accurate, allowable and properly allocated. Name(s) of the contact person(s) responsible for corrective action: Annette Myarick, Executive Director Planned completion date for corrective action plan: The planned corrective action will be completed by June 2025.

View Audit 350641

Finding 541023 (2024-002)

Material Weakness 2024

Elkhart and St. Joseph Counties Head Start Consortium

IN

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

We will ensure all vouchers are reviewed by a secondary individual, all supporting backup is maintained for each claim, and all payroll amounts agree to approved contracts.

View Audit 350620 Questioned Costs: $1

Finding 540972 (2024-001)

Significant Deficiency 2024

Regional School Unit No. 57

ME

Allowable Costs / Cost Principles Internal Control / Segregation of Duties

Management’s Response/Corrective Action Plan: The management of the District understands the importance of maintaining appropriate authorization and documentation of the Title I grant requirements, including the requirement to remove students from the graduation cohort. The cause of this deficiency...

Management’s Response/Corrective Action Plan: The management of the District understands the importance of maintaining appropriate authorization and documentation of the Title I grant requirements, including the requirement to remove students from the graduation cohort. The cause of this deficiency resulted from a significant change in District management which resulted in lack of appropriate documentation for some students removed from the cohort. The District's corrective action plan includes reviewing all Title I grant requirements on a regular basis to ensure all requirements are maintained in a timely and appropriate manner. Specifically, the administrative team of the RSU will meet on a regular basis to ensure all graduation cohort requirements are documented and internally reviewed for compliance.

View Audit 350579

Finding 540930 (2024-001)

Significant Deficiency 2024

Spring Hill College

AL

Student Financial Aid Allowable Costs / Cost Principles Matching / Level of Effort / Earmarking

Federal Perkins Loan Program, ALN 84.038; Grant period—Year ended June 30, 2024 Condition: There was lack of documentation related to notices for loans paid off for eight out of ten students tested. Criteria: According to §674.19(e)(4)(iii), after the loan obligation is satisfied, the institution ...

Federal Perkins Loan Program, ALN 84.038; Grant period—Year ended June 30, 2024 Condition: There was lack of documentation related to notices for loans paid off for eight out of ten students tested. Criteria: According to §674.19(e)(4)(iii), after the loan obligation is satisfied, the institution shall return the original or a true and exact copy of the note marked "paid in full" to the borrower, or otherwise notify the borrower in writing that the loan is paid in full, and retain a copy for the prescribed period. Cause: The College was unable to locate the communication sent to certain students of loan payoff as a result of staff turnover. Effect: Certain documentation for notification of loan satisfaction could not be provided. Context: During the compliance audit testing of ALN 84.038, it was determined that documentation to confirm delivery of loan satisfaction notices could not be provided for certain students selected for testing. Recommendation: We recommend all required documentation be backed up to support compliance with certain requirements. View of Responsible Officials and Planned Corrective Action: The College is currently working within the financial aid department to make sure the College has support for all communications.

View Audit 350555

Finding 540920 (2024-005)

Significant Deficiency 2024

Delaware State Housing Authority

DE

Questioned Costs Allowable Costs / Cost Principles § 200.406

DSHA has implemented the process of requiring the reduction of applicable credits to be applied to all future payment batches and be utilized to fund assistance. This as a result, will eliminate the funds being held by the vendor and remove the need to report as a federal expenditure. The responsibi...

DSHA has implemented the process of requiring the reduction of applicable credits to be applied to all future payment batches and be utilized to fund assistance. This as a result, will eliminate the funds being held by the vendor and remove the need to report as a federal expenditure. The responsibility for implementing this corrective action lies with the following DSHA staff: HAF Program Manager, Director of Housing Finance, Financial Accounting & Reporting Section Manager, and the Director of Financial Management. They will oversee the necessary adjustments to the process and ensure that future payment batches adhere to the revised guidelines.

View Audit 350549 Questioned Costs: $1

Finding 540919 (2024-004)

Significant Deficiency 2024

Delaware State Housing Authority

DE

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

DSHA will implement a policy and procedure requiring the retention of reporting backup data to be retained with the submitted report. Additionally, DSHA will require that the review of the submitted report be documented and that any identified report discrepancies be noted and retained with the sub...

DSHA will implement a policy and procedure requiring the retention of reporting backup data to be retained with the submitted report. Additionally, DSHA will require that the review of the submitted report be documented and that any identified report discrepancies be noted and retained with the submitted report.

View Audit 350549

Finding 540878 (2024-002)

Significant Deficiency 2024

City of Waltham, Massachusetts

MA

Questioned Costs Allowable Costs / Cost Principles Significant Deficiency

Moving forward all Time & Efforts Records for federal grant funded positions will be on a single schedule (December and June) of each calendar year and tracked by each program department with support from administrative assistants. All forms will be collected electronically and remain on file in one...

Moving forward all Time & Efforts Records for federal grant funded positions will be on a single schedule (December and June) of each calendar year and tracked by each program department with support from administrative assistants. All forms will be collected electronically and remain on file in one central location in the Finance Department through Grants. This process was begun last year and worked well, but we learned that we need to include a mechanism for ensuring that staff complete Time and Effort forms upon their departure if they leave their role/the district prior to the December or June collection dates. We are working with HR to make sure that this is part of the exit process for any federally-funded staff.

View Audit 350527 Questioned Costs: $1

Finding 540876 (2024-006)

Material Weakness 2024

Putnam County Commission

WV

Internal Control / Segregation of Duties Allowable Costs / Cost Principles Matching / Level of Effort / Earmarking § 200.404

The County Commission will work directly with the vendor to ensure future payment requests properly align with payment information listed on the federal contract.

View Audit 350525

Finding 540859 (2024-001)

Significant Deficiency 2024

Magnolia School District

AR

Questioned Costs Allowable Costs / Cost Principles Internal Control / Segregation of Duties § 200.439

At the time of the purchase for this particular building, the district had several prior approval applications for HVAC replacment submitted to DESE for approval. We believe this one had been submitted as well but was unable to confirm that with DESE. We will develop a better checklist for items s...

At the time of the purchase for this particular building, the district had several prior approval applications for HVAC replacment submitted to DESE for approval. We believe this one had been submitted as well but was unable to confirm that with DESE. We will develop a better checklist for items submitted to DESE for prior approvals so nothing is overlooked.

View Audit 350512 Questioned Costs: $1

Finding 540854 (2024-002)

Material Weakness 2024

Ashtabula County Educational Service Center

OH

Questioned Costs Allowable Costs / Cost Principles Reporting § 200.430

The Treasurer will ensure that the appropriate documentation supporting the time spent on a federal grant, in accordance with the Service Center’s Policy 6116 for Time and Effort, for all employees having wages and/or benefits charged to federal grants.

View Audit 350470 Questioned Costs: $1

Finding 540840 (2024-003)

Material Weakness 2024

Kankakee Valley School Corporation

IN

Questioned Costs Allowable Costs / Cost Principles § 200.303 § 200.403

FINDING 2024-003 Finding Subject: Special Education Cluster (IDEA) Activities Allowed or Unallowed, Allowable Costs/Cost Principles Summary of Finding: During the fiscal year 2023-2024, the School Corporation was part of Cooperative School Services, which managed special education programs and finan...

FINDING 2024-003 Finding Subject: Special Education Cluster (IDEA) Activities Allowed or Unallowed, Allowable Costs/Cost Principles Summary of Finding: During the fiscal year 2023-2024, the School Corporation was part of Cooperative School Services, which managed special education programs and finances for its schools. There were recognized issues where non-public schools received direct reimbursements. It is recommended that the School Corporation implement internal controls to prevent direct reimbursements, ensuring compliance with grant requirements and financial regulations. Contact Person Responsible for Corrective Action: Chris Richie Business Manager/Treasurer Contact Phone Number and Email Address: 219 987 4711, crichie@kv.k12.in.us Views of Responsible Officials: We concur with the finding. Description of Corrective Action Plan: We will work with Cooperative School Services to ensure allowable cost requirements are met. Reports tracking expenditures will be reviewed semiannually for compliance. Anticipated Completion Date: June 1, 2025

View Audit 350469 Questioned Costs: $1

Finding 540834 (2024-002)

Material Weakness 2024

Kankakee Valley School Corporation

IN

Matching / Level of Effort / Earmarking Allowable Costs / Cost Principles § 200.208 § 200.303 § 200.403

FINDING 2024-002 Finding Subject: Special Education Cluster (IDEA) Earmarking Summary of Finding: As a member of Cooperative School Services, special education funding was administered by the Cooperative. The School Corporation only partially spent required funds for some grants. It is recommended t...

FINDING 2024-002 Finding Subject: Special Education Cluster (IDEA) Earmarking Summary of Finding: As a member of Cooperative School Services, special education funding was administered by the Cooperative. The School Corporation only partially spent required funds for some grants. It is recommended that the School Corporation creates written policies to track non-public expenditures to meet earmarking requirements. Contact Person Responsible for Corrective Action: Chris Richie Business Manager/Treasurer Contact Phone Number and Email Address: 219 987 4711, crichie@kv.k12.in.us Views of Responsible Officials: We concur with the finding. Description of Corrective Action Plan: Kankakee Valley School Corporation will work with Cooperative School Services to ensure that Earmarking requirements are met. Reports tracking expenditures will be reviewed semiannually for compliance. Anticipated Completion Date: June 1, 2025

View Audit 350469

Finding 540823 (2024-003)

Significant Deficiency 2024

Muncie Community Schools

IN

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

Finding 2024-003 – Child Nutrition Cluster – Activities Allowed or Unallowed, Allowable Costs/Cost Principles Context: For 5 selections, in a sample of 5 payroll transactions, the School Corporation did not have time and effort logs to support the portion of the employee’s time charged to the grant...

Finding 2024-003 – Child Nutrition Cluster – Activities Allowed or Unallowed, Allowable Costs/Cost Principles Context: For 5 selections, in a sample of 5 payroll transactions, the School Corporation did not have time and effort logs to support the portion of the employee’s time charged to the grant. The employees’ time was split with a non-federal fund; however, the School Corporation did not have support for the allocation of the time charged to the School Lunch fund. Contact Person Responsible for Corrective Action: Brad DeRome Contact Phone Number: 765-747-5222 Views of Responsible Official: We concur with the finding. Description of Corrective Action Plan: We will ensure all payroll amounts recorded to food service are reviewed to ensure they represent food service payroll activity only. Anticipated Completion Date: March 2025

View Audit 350456 Questioned Costs: $1

Corrective Action Plans

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