Corrective Action Plans

Finding 505267 (2024-001)

Material Weakness 2024

MI

Reporting School Nutrition Programs Internal Control / Segregation of Duties

Condition: The School District must submit monthly claims for reimbursement for meals served to eligible students within 60 days following the last day of the month covered by the claim (7 CFR sections 210.8, 220.11, 215.10, and 225.15 (c)). Upon preparation of meal reimbursement claims, the School ...

Condition: The School District must submit monthly claims for reimbursement for meals served to eligible students within 60 days following the last day of the month covered by the claim (7 CFR sections 210.8, 220.11, 215.10, and 225.15 (c)). Upon preparation of meal reimbursement claims, the School District is required to have controls in place to ensure the accuracy of the request for reimbursement. For certain periods during the year the School District asserts there was a review process in place over the reimbursement requests; however, the review was not documented, and therefore we were not able to verify if the control was in place and operating effectively. For other periods during the year, the School District did not have a control in place where a review of the meal counts entered into the Michigan Nutrition Data (MiND) system takes place, which could result in incorrect reporting of the number of free and reduced priced meals, which could result in the School District being reimbursed an incorrect amount by the Michigan Department of Education. Planned Corrective Action: The School District's business office performed a detailed review of all meal claim submissions for the 2023-2024 fiscal year. Ultimately, the lack of a review control during the 2023-2024 fiscal year did not result in inaccurate reporting or incorrect amount of reimbursement paid by the Michigan Department of Education. The Business Office has since implemented a formalized internal control procedure beginning in July 2024, whereby a formal documented review of the meal claim submission is performed. Contact person responsible for corrective action: Kevin Taratuta, Chief Financial and Operations Officer Anticipated Completion Date: August 1, 2024

View Audit 327892

Finding 505259 (2024-003)

Significant Deficiency 2024

Lenoir-Rhyne University

NC

Cash Management Student Financial Aid

Name of Responsible Individual: Alex Putzer, AVP of Business and Finance Condition: The University had one instance during the year that were identified in which Title IV funds drawn were held in excess of the allowable time frame. Corrective Action Plan: This is the first time, to the Universit...

Name of Responsible Individual: Alex Putzer, AVP of Business and Finance Condition: The University had one instance during the year that were identified in which Title IV funds drawn were held in excess of the allowable time frame. Corrective Action Plan: This is the first time, to the University’s knowledge, that this error has occurred. We believe it was a one-off employee manual oversight, and not a systemic issue. We believe the general procedures for performing the Title IV drawdowns are in good standing; however, we will add a process where the AVP of Business and Finance regularly reviews the Title IV drawdowns to prevent this in the future. Anticipated Completion Date: 12/31/2024

View Audit 327876

Finding 505255 (2024-002)

Significant Deficiency 2024

Lenoir-Rhyne University

NC

Student Financial Aid Special Tests & Provisions Matching / Level of Effort / Earmarking

Name of Responsible Individual: Alex Putzer, AVP of Business and Finance Condition The University did not return credit balances to students within the required timeframe. Corrective Action Plan: The University experienced significant turnover of staff in the Business Office, particularly in Stu...

Name of Responsible Individual: Alex Putzer, AVP of Business and Finance Condition The University did not return credit balances to students within the required timeframe. Corrective Action Plan: The University experienced significant turnover of staff in the Business Office, particularly in Student Accounts, during summer 2024 through fall 2024. The University recognizes that there needs to be better checks and balances in place to ensure all credit balances triggered by federal aid are properly refunded to students within the 14-day required period. Director of Student Accounts will more frequently post financial aid awards on student accounts, once a week at a minimum. The Business Office will monitor all refunds and process them weekly. Additionally, a concerted effort to have the majority of students signed up for eRefund will be made priority. The AVP of Business and Finance will review the status of all credit balances on Student accounts’ on a weekly basis throughout the year to ensure timely reimbursement. Anticipated Completion Date: 11/30/2024

View Audit 327876

Finding 504954 (2024-001)

None 2024

Roncalli Apartments, Inc.

ME

Cash Management HUD Housing Programs

The project had insufficient cash to make the required deposit. Management is in consultation with the HUD representative for an acceptable solution with anticipated resolution by October 31, 2024.

View Audit 327705

Finding 504953 (2024-001)

Material Weakness 2024

St. Francis Apartments, Inc.

ME

Cash Management HUD Housing Programs

The project had insufficient cash to make the required deposit. Management is in consultation with the HUD representative for an acceptable solution.

View Audit 327704

Finding 504864 (2024-001)

Significant Deficiency 2024

University of Oklahoma Norman Campus

OK

Cash Management Student Financial Aid

The following is the Management's Response to Auditor's Findings, Summary Schedule of Prior Audit Findings and Corrective Action Plan. This document was prepared by management of the University of Oklahoma. 2024-001 Student Financial Assistance Cluster, ALN 84.063 Federal Pell Grant Program and ALN ...

The following is the Management's Response to Auditor's Findings, Summary Schedule of Prior Audit Findings and Corrective Action Plan. This document was prepared by management of the University of Oklahoma. 2024-001 Student Financial Assistance Cluster, ALN 84.063 Federal Pell Grant Program and ALN 84.268 Federal Direct Student Loans, Department of Education, Award Year 2024 Criteria or Specific Requirement - Cash Management, 34 CFR 668.162(b)(3) Finding Summary: For institutions on the Advance Payment Method, Title IV funds not disbursed to recipients by the end of the third business day are considered excess cash. The Department of Education (ED) allows an institution to retain, for up to seven days, excess cash that does not exceed one percent of the total amount of funds drawn by the institution in the prior year. The institution must return to ED any excess cash over the tolerable amount (one percent) and any amount remaining after the tolerance period (seven days). From February 20, 2024 to April 9, 2024, total cash drawdowns for student financial aid consistently exceeded aid disbursements to recipients (expenditures) by an amount less than one percent of prior year drawdowns. The excess cash during this period was not returned to ED within seven days. Explanation of Agreement/Disagreement: Management concurs with the finding and has implemented additional controls within the drawdown process that includes a secondary review and approval of the amount and timing of each drawdown. Officials Responsible for Ensuring Corrective Action: Karen Smith, Assistant Vice President for Administration and Finance and Controller Planned Completion for Corrective Action: Excess cash was no longer on hand as of June 30, 2024. Corrective internal controls have been implemented as of October 1, 2024 to prevent further instances of noncompliance. Plan to Monitor Completion of Corrective Action: Management has implemented controls within the drawdown process that includes a secondary review and approval of the amount and timing of each drawdown. This will ensure that limits are not exceeded and, if there are instances that require a return of funds, provide oversight to ensure the timely return of those funds.

View Audit 327621

Finding 504833 (2024-002)

Material Weakness 2024

City of Carbondale, Illinois

IL

Reporting Cash Management

Views of the responsible officials and planned corrective actions Management agrees that a centralized reconciliation control process should be in place, given the large amount of grants that the City has been awarded and will continue to apply for in the future. Management will work to develop tho...

Views of the responsible officials and planned corrective actions Management agrees that a centralized reconciliation control process should be in place, given the large amount of grants that the City has been awarded and will continue to apply for in the future. Management will work to develop those procedures and communicate with other departments.

View Audit 327562

Finding 504829 (2024-001)

Significant Deficiency 2024

Junior Achievement of Arizona, Inc.

AZ

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

Type of Finding – Significant Deficiency in Internal Control Over Compliance. Condition/Context – Internal control procedures over eligible disbursements did not ensure compliance with federal awards. An employee reimbursement was billed twice, and employee bonuses, which are not allowable costs, we...

Type of Finding – Significant Deficiency in Internal Control Over Compliance. Condition/Context – Internal control procedures over eligible disbursements did not ensure compliance with federal awards. An employee reimbursement was billed twice, and employee bonuses, which are not allowable costs, were included within the reimbursement request. Contact Person – Amy Schaefer, VP of Finance – amys@jaaz.org – (602) 616-0873 Corrective Action Plan – Management has implemented procedures to verify that the expenditures that are requested for reimbursement are accurate and are allowable under the Uniform Guidance. Review procedures will be used to help ensure that only allowable salaries expenses are included in reimbursement requests.

View Audit 327529 Questioned Costs: $1

Finding 504796 (2024-001)

Significant Deficiency 2024

Habitat for Humanity of the Charlotte Region, Inc. and Subsidiaries

NC

Procurement, Suspension & Debarment Subrecipient Monitoring Cash Management

Habitat for Humanity of the Charlotte Region (HCR) verifies suspension and debarment status through SAM.gov. This was an isolated incident. Of the 19 items reviewed, only one verification was not completed. This specific contractor self-certified that they were not suspended or debarred from workin...

Habitat for Humanity of the Charlotte Region (HCR) verifies suspension and debarment status through SAM.gov. This was an isolated incident. Of the 19 items reviewed, only one verification was not completed. This specific contractor self-certified that they were not suspended or debarred from working on government contracts before the contract was awarded. The ARPA contract that governs this grant allows contractor self-certification to meet compliance requirements. The validation was not done prior to grant award, but it was subsequently validated on SAM.gov that the contractor is not debarred or suspended. We are updating our process documentation to ensure that verification of self-certification is completed prior to contract award.

View Audit 327465

Finding 504790 (2024-002)

None 2024

Lss Housing Jamestown, Inc.

ND

HUD Housing Programs Questioned Costs Special Tests & Provisions

Federal Financial Assistance Listing #14.157 Supportive Housing for the Elderly (Section 202) Finding Summary: Due to insufficient cash flow, the Organization was unable to make the required deposit to the residual receipt reserve account in the current year. Responsible Individual: Dustin Rietsema,...

Federal Financial Assistance Listing #14.157 Supportive Housing for the Elderly (Section 202) Finding Summary: Due to insufficient cash flow, the Organization was unable to make the required deposit to the residual receipt reserve account in the current year. Responsible Individual: Dustin Rietsema, Asset Management Director Corrective Action Plan: Management has requested approval from HUD to waive the deposit requirement due to insufficient cash flow from operations. Anticipated Completion Date: October 2024

View Audit 327440 Questioned Costs: $1

Finding 504783 (2024-003)

Material Weakness 2024

Clintondale Community Schools

MI

Questioned Costs Cash Management

SEE CORRECTIVE ACTION PLAN IN AUDIT

View Audit 327421 Questioned Costs: $1

Finding 504708 (2024-001)

Significant Deficiency 2024

St. Vrain Valley School District Re-1j

CO

Questioned Costs Cash Management Eligibility

Action taken in response to finding: The employee responsible for eligibility processing and verification is new to the process. The employee attended all of the trainings provided by CDE prior to conducting verification. The employee misinterpreted “net wages” vs “gross wages” on the paystub, whi...

Action taken in response to finding: The employee responsible for eligibility processing and verification is new to the process. The employee attended all of the trainings provided by CDE prior to conducting verification. The employee misinterpreted “net wages” vs “gross wages” on the paystub, which led to this discrepancy. The household had listed net wages on their application this year and prior years. The student’s status was corrected and backdated to the verification response date. April and May 2024 claims are not affected by overpayment due to the student’s status having been updated before claims were sent to the state for payment. USDA disregards overpayment of reimbursement if the amount does not exceed $600 annually (Section 119c). Since the amount is not over $600, CDE is not required to collect the discrepancy. The District will move into 100% Community Eligibility Provision (CEP) for SY 2024-2025, and continuing for up to 5 consecutive years following enrollment into the provisional program. CEP does not require income application submittal, thus does not host an annual verification certification because data is received solely through Direct Certification reports provided by CDE monthly. Staff responsible for eligibility determination will continue to take the online trainings from CDE and our Nutrition Software annually as required. Name(s) of the contact person(s) responsible for corrective action: Kari Jacobs Planned completion date for corrective action plan: 5/2/2024

View Audit 327327 Questioned Costs: $1

Finding 504524 (2024-001)

None 2024

Elmira City School District

NY

Cash Management Procurement, Suspension & Debarment School Nutrition Programs

The Elmira City School District has been cited for excessive net cash resources since the onset of the pandemic in 2021 and correlated increased aid reimbursements for the school feeding programs. The most notable increase to revenues for the 2023-2024 fiscal year was interest income. The distr...

The Elmira City School District has been cited for excessive net cash resources since the onset of the pandemic in 2021 and correlated increased aid reimbursements for the school feeding programs. The most notable increase to revenues for the 2023-2024 fiscal year was interest income. The districts interest revenues were 95% greater than the 2022-2023 school year. Overall revenues within the School Lunch fund only increased 4.69% over the 2022-2023 school year, while expenditures increased at 10.64%. As part of our 2022-2023 corrective action plan, a new contract was entered within our labor union for cafeteria workers. Those efforts resulted in a 37.48% expenditure increase in 2023-24 to salaries and benefits over the 2022-23 school year. The district also can demonstrate that we closed the gap between revenues and expenses by roughly 5% over the prior fiscal year. This is the result of increased spending on equipment purchases, food purchases and wages as so outlined in prior corrective action plans. Plans for the 2024-25 fiscal year include a projected budget that equates to over 22% spending over the 2023-24 expenditures. Those increases are mainly in our equipment and salary budgets. The district has plans to put out a new capital project to vote in December of 2024. While many building and facility upgrades are included, the district plans to utilize the school lunch fund for any equipment purchases related to our cafeterias within our facilities as so allowed. Our School Food Service Director, in conjunction with our School Lunch Manager will assist in the continued upgrades to school serving lines, and new initiatives within our serving programs in response to population changes and needs. They will also continue our equipment replacement cycle throughout our buildings to ensure outdated equipment is replaced timely. The School Business Official will work in conjunction with the Food Service Director and Manager to manage fund balance and expenditures throughout the year. In prior years fund balance has been appropriated to afford increased food and equipment expenses. To combat the net cash resources, we will first look to move funds within the existing budget to afford those increased expenses, oppose to moving monies from fund balance. Our plans, as so outlined above, are targeting a completion date of this finding in June 2025. Contact Information: Lindsey Tice School Business Official Elmira City School District 430 W. Washington Ave. Elmira, NY 14901 607-735-3054 Expected Correction Date: June 30, 2025

View Audit 327089

Finding 504487 (2024-001)

Significant Deficiency 2024

Great Oaks Academy

MI

Cash Management Allowable Costs / Cost Principles Questioned Costs

Finding Number: 2024-001 Condition: The Academy did not accurately apply the approved indirect cost rate for the program at the time drawdown requests were submitted creating a cash management issue involving unallowable cost reimbursements. Planned Corrective Action: Management agrees with the find...

Finding Number: 2024-001 Condition: The Academy did not accurately apply the approved indirect cost rate for the program at the time drawdown requests were submitted creating a cash management issue involving unallowable cost reimbursements. Planned Corrective Action: Management agrees with the finding. Management identified the error after the draw down occurred and reduced the indirect costs and is in the process of enhancing procedures to prevent overdrawn amounts in the future. Contact person responsible for corrective action: Rebecca Joyner Anticipated Completion Date: 12/31/2024

View Audit 327039 Questioned Costs: $1

Finding 504472 (2024-001)

Significant Deficiency 2024

Ken-Crest Housing PA 2010, Inc.

PA

Questioned Costs Cash Management HUD Housing Programs

Although the Corporation does not currently use an interest-bearing account for project funds, we will evaluate the feasibility of using an interest-bearing account for project funds.

View Audit 327004

Finding 504470 (2024-001)

Significant Deficiency 2024

Ken-Crest Housing PA Ii, Inc.

PA

Questioned Costs Cash Management HUD Housing Programs

Although the Corporation does not currently use an interest-bearing account for project funds, we will evaluate the feasibility of using an interest-bearing account for project funds.

View Audit 327003

Finding 504468 (2024-001)

Significant Deficiency 2024

Ken-Crest Housing Pennsylvania, Inc.

PA

Questioned Costs Cash Management HUD Housing Programs

Although the Corporation does not currently use an interest-bearing account for project funds, we will evaluate the feasibility of using an interest-bearing account for project funds.

View Audit 327002

Finding 504466 (2024-001)

Significant Deficiency 2024

Ken-Crest Housing Del Ii, Inc.

PA

Questioned Costs Cash Management HUD Housing Programs

Although the Corporation does not currently use an interest-bearing account for project funds, we will evaluate the feasibility of using an interest-bearing account for project funds.

View Audit 327001

Finding 504464 (2024-001)

Significant Deficiency 2024

Ken-Crest Housing De 2003, Inc.

PA

Questioned Costs Cash Management HUD Housing Programs

Although the Corporation does not currently use an interest-bearing account for project funds, we will evaluate the feasibility of using an interest-bearing account for project funds.

View Audit 327000

Finding 504462 (2024-001)

Significant Deficiency 2024

Ken-Crest Housing PA 2009, Inc.

PA

Questioned Costs Cash Management HUD Housing Programs

Although the Corporation does not currently use an interest-bearing account for project funds, we will evaluate the feasibility of using an interest-bearing account for project funds.

View Audit 326999

Finding 504460 (2024-001)

Significant Deficiency 2024

Ken-Crest Housing PA 2006, Inc.

PA

Questioned Costs Cash Management HUD Housing Programs

Although the Corporation does not currently use an interest-bearing account for project funds, we will evaluate the feasibility of using an interest-bearing account for project funds.

View Audit 326998

Finding 504458 (2024-001)

Significant Deficiency 2024

Ken-Crest Housing PA 2002, Inc.

PA

Questioned Costs Cash Management HUD Housing Programs

Although the Corporation does not currently use an interest-bearing account for project funds, we will evaluate the feasibility of using an interest-bearing account for project funds.

View Audit 326997

Finding 504456 (2024-001)

Significant Deficiency 2024

Ken-Crest Housing PA 2001, Inc.

PA

Questioned Costs Cash Management HUD Housing Programs

Although the Corporation does not currently use an interest-bearing account for project funds, we will evaluate the feasibility of using an interest-bearing account for project funds.

View Audit 326996

Finding 504454 (2024-001)

Significant Deficiency 2024

Ken-Crest Housing PA 99, Inc.

PA

Questioned Costs Cash Management HUD Housing Programs

Although the Corporation does not currently use an interest-bearing account for project funds, we will evaluate the feasibility of using an interest-bearing account for project funds.

View Audit 326994

Finding 504452 (2024-001)

Significant Deficiency 2024

Ken-Crest Housing PA Iii, Inc.

PA

Questioned Costs Cash Management HUD Housing Programs

Although the Corporation does not currently use an interest-bearing account for project funds, we will evaluate the feasibility of using an interest-bearing account for project funds.

View Audit 326993

Corrective Action Plans

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