Corrective Action Plans

Finding 497935 (2023-004)

Material Weakness 2023

Michigan Association of Recovery Residences, Inc.

MI

Questioned Costs Period of Performance Allowable Costs / Cost Principles

Planned Corrective Action: MARR will retain a CPA consultant to establish formal written policy documenting significant accounting procedures including but not limited to the independent review of the grant period of performance when recording transactions and preparing grant reimbursement requests....

Planned Corrective Action: MARR will retain a CPA consultant to establish formal written policy documenting significant accounting procedures including but not limited to the independent review of the grant period of performance when recording transactions and preparing grant reimbursement requests. Evidence of the review to be documented and maintained according to the procedures to be implemented.

View Audit 320567 Questioned Costs: $1

Finding 497933 (2023-003)

Material Weakness 2023

Lawrence County

IN

Internal Control / Segregation of Duties Cash Management Material Weakness § 200.303

FINDING 2023-003 Finding Subject: Internal Controls over COVID-19 – Coronavirus State and Local Fiscal Recovery Funds: Lead Reduction Grant Summary of Finding: The County submitted one invoice for reimbursement to the State during the audit period. The County had not established a proper system of i...

FINDING 2023-003 Finding Subject: Internal Controls over COVID-19 – Coronavirus State and Local Fiscal Recovery Funds: Lead Reduction Grant Summary of Finding: The County submitted one invoice for reimbursement to the State during the audit period. The County had not established a proper system of internal control over reporting as one employee in the County Health Department prepared and submitted the invoice with no evidence of an oversight, review, or approval process to ensure that the report was accurate. Contact Person Responsible for Corrective Action: Paula Kern-Edwards Contact Phone Number and Email Address: 812-275-3234 pedwards@lawrencecounty.in.gov Views of Responsible Officials: We concur with the finding. Description of Corrective Action Plan: This grant period has ended. The County will review all future grant awards for similar requirements and comply with any oversight, review or approval requirements. Anticipated Completion Date: Completed

View Audit 320559

Finding 497535 (2023-001)

Significant Deficiency 2023

Canaan Manor Dayton

LA

HUD Housing Programs Cash Management

Residual Receipts in the amount of $12,257 was not incurred in the fiscal year of 2023. This surplus cash was incurred in prior years. Excess residual receipts have not been remitted for two reasons 1) funds are needed for improvements which we are pursuing to 3 bids for as required and 2) HUD has n...

Residual Receipts in the amount of $12,257 was not incurred in the fiscal year of 2023. This surplus cash was incurred in prior years. Excess residual receipts have not been remitted for two reasons 1) funds are needed for improvements which we are pursuing to 3 bids for as required and 2) HUD has not notified management of the method to remit.

View Audit 320274

Finding 497516 (2023-005)

Significant Deficiency 2023

Lifewire

WA

Allowable Costs / Cost Principles Matching / Level of Effort / Earmarking Subrecipient Monitoring § 200.303 § 200.430

o As of June 30, 2024, LifeWire has implemented a new software package called VELA in which direct services staff enter their actual time worked to contracts, which is then reviewed and approved by their supervisors and reported to Finance staff for payroll processing. By December 31, 2024, the Fina...

o As of June 30, 2024, LifeWire has implemented a new software package called VELA in which direct services staff enter their actual time worked to contracts, which is then reviewed and approved by their supervisors and reported to Finance staff for payroll processing. By December 31, 2024, the Finance staff will ensure all 2024 actual hours worked toward contracts have been reviewed and approved by all direct services staff whose time is billed and approved by their supervisors. o Name of Responsible Individual: Jeannette Biffle, Controller

View Audit 320262

Finding 497504 (2023-001)

Significant Deficiency 2023

Lifewire

WA

Subrecipient Monitoring Allowable Costs / Cost Principles Cash Management

o LifeWire’s Senior Accountants, Controller and Co-EDs carefully review all costs charged to contracts to ensure they fall within the appropriate contract period. As of September 9, 2024, all 2024 contract charges are captured in the correct periods. o If the staff of LifeWire has any question about...

o LifeWire’s Senior Accountants, Controller and Co-EDs carefully review all costs charged to contracts to ensure they fall within the appropriate contract period. As of September 9, 2024, all 2024 contract charges are captured in the correct periods. o If the staff of LifeWire has any question about the permissibility of a given charge, we will reach out to the contract manager, obtain clarification and/or permission in writing, and ensure that documentation is filed and maintained appropriately. If we are unable to obtain this permission, we will find another funding source for the charge or find alternate methods of supporting survivors’ needs. o Name of Responsible Individual: Jeannette Biffle, Controller

View Audit 320262

Finding 497462 (2023-002)

Significant Deficiency 2023

County of Dane

WI

Student Financial Aid Allowable Costs / Cost Principles Cash Management

Finding 2023‐002 Condition We selected three monthly submissions of GEARS and SPARC reports across multiple programs received by the Wisconsin Department of Human Services and the Wisconsin Department of Children and Families. One of the three GEARS and SPARC reports tested was not reviewed by an in...

Finding 2023‐002 Condition We selected three monthly submissions of GEARS and SPARC reports across multiple programs received by the Wisconsin Department of Human Services and the Wisconsin Department of Children and Families. One of the three GEARS and SPARC reports tested was not reviewed by an independent person before submission for reimbursement. Our sample was not statistically valid. Corrective Action Plan Corrective Action Planned: In September 2023, a review process was established and implemented starting with the August Claim to ensure that required reports are reviewed by someone other than the preparer of the reports prior to submission. Name(s) of Contact Person(s) Responsible for Corrective Action: Reports prepared by Kozue Bush, Finance Manager, will be reviewed by Chad Lillethun, FMS Division Administrator prior to submission. Anticipated Completion Date: Review process was implemented with the August 2023 claim.

View Audit 320246

Finding 497440 (2023-004)

Material Weakness 2023

Huron-Clinton Metropolitan Authority

MI

Cash Management Material Weakness § 200.305

Condition: Controls in place were not adequate to ensure the Authority complied with all requirements under 2 CFR. Planned Corrective Action: The Authority will work to establish a written procedure to follow requirements in 2 CFR 200.305. Contact person responsible for corrective action: Shedrek...

Condition: Controls in place were not adequate to ensure the Authority complied with all requirements under 2 CFR. Planned Corrective Action: The Authority will work to establish a written procedure to follow requirements in 2 CFR 200.305. Contact person responsible for corrective action: Shedreka Miller Anticipated Completion Date: 12/31/2024

View Audit 320209

Finding 497413 (2023-006)

Significant Deficiency 2023

City of Porterville

CA

Reporting Allowable Costs / Cost Principles Cash Management

Staffing for Adequate Fire and Emergency Response (SAFER) - Assistance Listing No. 97.083 Recommendation: It is recommended that SAFER grant reports be reviewed by a supervisory-level person who is not the preparer of the report. Explanation of disagreement with audit finding: There is no disagreeme...

Staffing for Adequate Fire and Emergency Response (SAFER) - Assistance Listing No. 97.083 Recommendation: It is recommended that SAFER grant reports be reviewed by a supervisory-level person who is not the preparer of the report. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: We have established a mandatory review process where all reimbursement requests and performance reports must be reviewed and approved by a designated supervisory-level staff member who did not prepare the report before submission to the granter. We have communicated the importance of this review process in ensuring compliance, completeness and accuracy. We will monitor the process to prevent recurrence. Name of the contact person responsible for corrective action: Janie Rodriguez Planned completion date for corrective action plan: August 7, 202

View Audit 320159

Finding 497412 (2023-005)

Significant Deficiency 2023

City of Porterville

CA

Cash Management Significant Deficiency

Staffing for Adequate Fire and Emergency Response (SAFER) - Assistance Listing No. 97.083 Recommendation: It is recommended that SAFER grant reimbursement requests be reviewed by a supervisory-level person who is not the preparer of the requests. Explanation of disagreement with audit finding: There...

Staffing for Adequate Fire and Emergency Response (SAFER) - Assistance Listing No. 97.083 Recommendation: It is recommended that SAFER grant reimbursement requests be reviewed by a supervisory-level person who is not the preparer of the requests. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: We have established a mandatory review process where all reimbursement requests must be thoroughly reviewed by a designated finance staff member who did not prepare the request. A final approver (i.e. supervisor or director) will authorize the reimbursement request before submission to the grantor. We have communicated the importance of this review process to our team to ensure compliance, completeness and accuracy. We will monitor the process to prevent recurrence. Name of the contact person responsible for corrective action: Janie Rodriguez Planned completion date for corrective action plan: August 7, 2024

View Audit 320159

Finding 497342 (2023-001)

Material Weakness 2023

Town of Paradise

CA

Cash Management Material Weakness Reporting

Description of Finding: There were 42 audit adjustments and closing entries posted during the audit to report the Towns’s financial statements in accordance with Generally Accepted Accounting Principles (GAAP). The large number of adjustments identified during the course of the audit indicates t...

Description of Finding: There were 42 audit adjustments and closing entries posted during the audit to report the Towns’s financial statements in accordance with Generally Accepted Accounting Principles (GAAP). The large number of adjustments identified during the course of the audit indicates that the Town does not have internal controls in place to prevent or detect misstatements on a timely bases. Areas where accounts and transactions were not adequately reconciled and evaluated for proper recording prior to the start of the audit field work and areas that require improvement included in the following: • Procedures to ensure beginning fund balance/net position roll-forward to prior year audited financial statements. • Procedures for ensuring revenue received in advance of qualifying expenditures are properly deferred. • Procedures to ensure retentions payable is properly accrued. • Procedures for tracking grant expenditures to ensure revenue is accrued to the extent of reimbursable expenditures incurred and evaluation of proper accounting treatment of transactions as earned, unearned, or unavailable revenue. • Procedures to ensure capital outlay is properly reconciled to capital asset additions. • Procedures to ensure that building permit fees not earned are properly accounted for as unearned revenue. • Procedures to ensure all loans issued by the Town are properly recorded in the general ledger. • Procedures for evaluating when entries should be posted to fund balance and whether fund balance/net position/restrictions and investment in capital assets are properly reflected. • Procedures to ensure interfund transactions, including due to and from other funds, advances to and from other funds and transfer in and out, excluding those with agency funds, are in balance. Statement of Concurrence or Nonconcurrence: There was a large number of audit adjustments as the audit progressed. Some of those are standard within a yearly closing period. Corrective Action: Staff turnover contributed to the need for multiple adjustments after the fact. Of the five positions within the department five were vacated within a 12 month period. During and leading up to the closing of the FY 22/23 year, a complete turnover of staff occurred including all senior staff within the Finance Department. There were a number of journal entries that required a depth of historical knowledge to perform properly. Budgeted large transfers and project transfers complicated the process of closing projects and funds. All positions are currently filled. To reduce the need for as many audit adjustments, a new process was implemented during the FY 23/24. Payroll and invoices are being direct billed to the funds and projects to reduce the need for unnecessary transfers. This step will simplify the structure of funds. This standard accounting practice will enable staff to reconcile, evaluate, and accrue much more timely and accurately. Name of Contact Person: Aimee Beleu, Finance Director, (530) 872-6291, abeleu@townofparadise.com Projected Completion Date: 4/1/24

View Audit 320057

Finding 497337 (2023-001)

Significant Deficiency 2023

Rochester Area Joint Sewer Authority

PA

Internal Control / Segregation of Duties Cash Management Significant Deficiency

Views of Responsible Officials and Planned Corrective Actions: We will continue segregating duties among the Authority Manager, Board, and Accounting Manager. An individual other than the Accounting Manager will review cancelled checks to ensure payment amount and payee agreed with what was approved...

Views of Responsible Officials and Planned Corrective Actions: We will continue segregating duties among the Authority Manager, Board, and Accounting Manager. An individual other than the Accounting Manager will review cancelled checks to ensure payment amount and payee agreed with what was approved by the board. In late 2023, the Office Manager and Accounting Manager decided to leave their current role to pursue other opportunities. The Authority Manager acted swiftly to fill those positions with the hiring of a new Office Manager and Accounting Manager in August 2023 and October 2023, respectively. Both new employees are being trained on the accounting processes to allow for 1.) redundancy in personnel and 2.) assist in improving controls specific to the segregation of duties for recordkeeping, custody, and authorization. The Authority follows the following federal award reimbursements requests and payment approval process: Federal Award Reimbursement & Contractor Payment: 1. A licensed independent Engineer detail reviews all invoices/pay applications and signs and certifies the work completed before providing to the Authority. 2. After the Engineer approves invoices/pay applications, they are sent to the Office Manager who begins data entry into PENNVEST’s online request portal. The Office Manager then prepares the payment request packets for the upcoming board meeting and QuickBooks entries for federal award tracking. 3. The Board reviews the submittal packets in detail and provides approval to submit the request for reimbursement to PENNVEST. 4. After Board approval, the Accounting Manager submits the request and corresponding invoice/pay application support to PENNVEST’s online portal. 5. PENNVEST reviews the request for disbursements. Once approved, they wire funds to the Authority’s bank account. 6. After the Authority receives the funds from PENNVEST, they begin the process to pay the Contractors. 7. Payment to contractors occurs through written check or ACH after approval and at minimum two signatures are obtained from the Board and the Authority Manager. All paper checks require two signatures. ACH payments to contractors require a board member approval in the form of a signature on the ACH printout prepared by the Accounting Manager. 8. The Office Manager performs the bank reconciliation process within QuickBooks and clears any outstanding checks on the reconciliation module. 9. The Accounting Manager reviews the bank statement reconciliation and any outstanding account payables.

View Audit 320046

Finding 497334 (2023-001)

Significant Deficiency 2023

Savio House

CO

Allowable Costs / Cost Principles Cash Management Significant Deficiency § 200.303

Planned Corrective Action: Savio believes that our internal control system is effective in determining allowable costs charged to the grant. In addition to the reviews done by the Controller, there is an additional third party review to ensure all costs are allowable. We do believe that we could bet...

Planned Corrective Action: Savio believes that our internal control system is effective in determining allowable costs charged to the grant. In addition to the reviews done by the Controller, there is an additional third party review to ensure all costs are allowable. We do believe that we could better segregate the controls within the Organization to further improve the system of internal controls. We will modify our controls to require that all expenses along with the indirect rate and calculation will be reviewed and approved by the Development department rather than the controller to provide a better review process for appropriateness and support of costs before reimbursement, as recommended by the auditor. Since the Development department writes the grants they would have the best knowledge on what expenses qualify and verify support. This will be implemented immediately. Name of Contact Person: Eric Heppe, Controller, EHeppe@saviohouse.org Anticipated completion date: September 2024 invoicing process

View Audit 320032

Finding 497332 (2023-001)

Material Weakness 2023

City of West Chicago

IL

Cash Management Reporting Internal Control / Segregation of Duties

Condition: During audit fieldwork, our testing resulted in a restatement of fund balance in order to correct liability insurance improperly recorded in prior years. Plan: The City will implement internal controls to properly record liability insurance expenses, payables, and prepaid expenses on a ti...

Condition: During audit fieldwork, our testing resulted in a restatement of fund balance in order to correct liability insurance improperly recorded in prior years. Plan: The City will implement internal controls to properly record liability insurance expenses, payables, and prepaid expenses on a timely basis prior to audit fieldwork. Anticipated Date of Completion: December 31, 2024

View Audit 320027

Finding 497326 (2023-001)

Material Weakness 2023

City of New Albany

IN

Internal Control / Segregation of Duties Subrecipient Monitoring Allowable Costs / Cost Principles § 200.1 § 200.303

FINDING 2023-001 Finding Subject: COVID-19 - Coronavirus State and Local Fiscal Recovery Funds - Reporting Summary of Finding: The City submitted four P&E reports during the audit period; however, the controls in place were not effective to prevent, or detect and correct, errors. As a result, errors...

FINDING 2023-001 Finding Subject: COVID-19 - Coronavirus State and Local Fiscal Recovery Funds - Reporting Summary of Finding: The City submitted four P&E reports during the audit period; however, the controls in place were not effective to prevent, or detect and correct, errors. As a result, errors in reporting were identified. The current period and cumulative expenditures reported consisted of the amounts expended by the beneficiaries who were awarded funds from the City, rather than total amounts expended to the beneficiaries, resulting in current period expenditures and cumulative expenditures being incorrectly reported on all four reports as follows:  Quarterly Report: October 1, 2022 to December 31, 2022 Current period expenditures were overstated by $40,350. Cumulative expenditures were understated by $262,057.  Quarterly Report: January 1, 2023 to March 31, 2023 Current period expenditures were understated by $2,338,864. Cumulative expenditures were understated by $2,499,656.  Quarterly Report: April 1, 2023 to June 30, 2023 Current period expenditures were understated by $1,200,000. Cumulative expenditures were understated by $3,699,656.  Quarterly Report: July 1, 2023 to September 30, 2023 Current period expenditures were overstated by $2,126,306. Cumulative expenditures were understated by $1,573,349. Contact Person Responsible for Corrective Action: Linda Moeller Contact Phone Number and Email Address: 812-948-5333 and lmoeller@cityofnewalbany.com Views of Responsible Officials and Explanation and Reasons for Disagreement:  We concur with the finding.  However, the issue and non-compliance deals with the interpretation of the federal rules regarding the appropriate amounts to report and when to report them by subrecipients of the monies. INDIANA STATE BOARD OF ACCOUNTS 19 Office of the Controller  New Albany City Hall  142 E Main Street, Suite 314  New Albany, Indiana 47150 Telephone: 812-948-5333  www.cityofnewalbany.com City of New Albany, Indiana Linda Moeller City Controller  The non-compliance is not related to policies or controls not being effective to prevent, detect or correct errors. In fact, the reporting system initially implemented by the City and put in the federal reports provided the actual expenditures for those periods by recipients of the grants.  However, the City does agree that after full examination and review of the federal rules the initial full amount of funds provided to the subrecipients should have been reported in full versus the actual expenditures during the periods. Description of Corrective Action Plan:  Current period and cumulative expenditures reported will consist of the amounts advanced to subrecipients. Anticipated Completion Date:  The City has already made this correction in its most recent Quarterly Report April 1, 2024 to June 30, 2024.

View Audit 320010

Finding 497318 (2023-001)

Significant Deficiency 2023

Monroe County Board of Education

GA

School Nutrition Programs Subrecipient Monitoring Allowable Costs / Cost Principles § 200.303

FA 2023-001 Strengthen Controls over Special Reporting Compliance Requirement: Reporting Internal Control Impact: Significant Deficiency Compliance Impact: Nonmaterial Noncompliance Federal Awarding Agency: U.S. Department of Agriculture Pass-Through Entity: Georgia Department of Education Assista...

FA 2023-001 Strengthen Controls over Special Reporting Compliance Requirement: Reporting Internal Control Impact: Significant Deficiency Compliance Impact: Nonmaterial Noncompliance Federal Awarding Agency: U.S. Department of Agriculture Pass-Through Entity: Georgia Department of Education Assistance Listing Number and Title: 10.553 - School Breakfast Program 10.555 - National School Lunch Program Federal Award Number: 235GA324N1199 Questioned Costs: None Identified Prior Year Finding: FA 2022-001 Description: The policies and procedures of the School District were insufficient to provide adequate internal controls over the monthly Claims for Reimbursement process. Corrective Action Plans: The School District has returned to collecting Free and Reduce applications and recording the student meals accordingly. Estimated Completion Date: July 1, 2024 Contact Person: Chris Johnson, Director of Financial Services Telephone: 478-994-2031 Email: chris.johnson@mcschools.org

View Audit 319968

Finding 497253 (2023-001)

None 2023

Swainsboro Presbyterian Housing Corporation

GA

Cash Management HUD Housing Programs Internal Control / Segregation of Duties

Recommendation: We recommend the Organization implement additional procedures during year-end close out procedures to ensure residual receipt deposits at year-end are deposited in a timely manner. Action Taken: To enhance the controls around residual receipt deposits during year-end close-out proce...

Recommendation: We recommend the Organization implement additional procedures during year-end close out procedures to ensure residual receipt deposits at year-end are deposited in a timely manner. Action Taken: To enhance the controls around residual receipt deposits during year-end close-out procedures, the Organization will implement a systematic action plan to ensure that residual receipt deposits are processed in a timely manner. The organization will implement a monitoring system that tracks the status of residual receipts and flags any deposits that are approaching or have passed their deadlines. Regular progress reviews will be scheduled to ensure that all residual receipts are processed promptly and any issues are addressed swiftly. Finally, a post-year-end audit will be conducted to evaluate the effectiveness of the new procedures, identify any areas for improvement, and refine the process for the following year. This action plan will ensure that residual receipt deposits are managed efficiently and contribute to the overall accuracy of the year-end financial statements.

View Audit 319843

Finding 497026 (2023-002)

Significant Deficiency 2023

Henry J. Austin Health Center, Inc.

PA

Questioned Costs Allowable Costs / Cost Principles Cash Management § 200.302

The finding arose due to conditions created as a result of turnover experienced by the Center within the finance department, expense reimbursement requests were inadvertently completed incorrectly using incorrect allocation percentages and information. Additional preventative internal control proced...

The finding arose due to conditions created as a result of turnover experienced by the Center within the finance department, expense reimbursement requests were inadvertently completed incorrectly using incorrect allocation percentages and information. Additional preventative internal control procedures will be implemented, including an additional level of review of the reimbursement request prior to submission.

View Audit 319762 Questioned Costs: $1

Finding 496947 (2023-003)

Significant Deficiency 2023

Regional School Unit #54 - Msad #54

ME

Cash Management Reporting Internal Control / Segregation of Duties

Management response/corrective action: The Nutrition Director will involve the Support Services Administrative Assistant in the claims process to review and check for accuracy.

View Audit 319690

Finding 496946 (2023-005)

Material Weakness 2023

Village of Luck

WI

Subrecipient Monitoring Internal Control / Segregation of Duties Cash Management

Pre-Disaster Mitigation PDM Program – Assistance Listing No. 97.047 Recommendation: The Village should monitor the various reporting requirements and have the proper reporting documentation on file from the subrecipient. Explanation of disagreement with audit finding: There is no disagreement with...

Pre-Disaster Mitigation PDM Program – Assistance Listing No. 97.047 Recommendation: The Village should monitor the various reporting requirements and have the proper reporting documentation on file from the subrecipient. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: The Village will revise their control process to ensure that they are monitoring the various reporting requirements and have the proper reporting documentation on file from the subrecipient. Name(s) of the contact person(s) responsible for corrective action: Laurie Cook, Village Treasurer. Planned completion date for corrective action plan: December 31, 2024

View Audit 319689

Finding 496843 (2023-003)

Significant Deficiency 2023

The Food Trust

PA

Cash Management Allowable Costs / Cost Principles

There was no documentation of review or approval on the calculation for the draw of funding for the program. In addition, draws are not performed in a timely manner after the expenditures are incurred. Recommendation: We recommend The Food Trust implement a clear approval process for the drawing o...

There was no documentation of review or approval on the calculation for the draw of funding for the program. In addition, draws are not performed in a timely manner after the expenditures are incurred. Recommendation: We recommend The Food Trust implement a clear approval process for the drawing of federal funding. In addition, it is important to establish a clear process and timeline for performing draws. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: The Organization will implement an electronic approval system, and draws will be completed within 30 days of month end. Name(s) of the contact person(s) responsible for corrective action: Regine Metellus, Vice President of Finance Planned completion date for corrective action plan: The planned corrective action will be completed with the September 2024 month-end close.

View Audit 319570

Finding 496819 (2023-001)

Material Weakness 2023

Mark Twain Association for Mental Health Inc.

MO

Allowable Costs / Cost Principles Matching / Level of Effort / Earmarking Cash Management § 200.302 § 200.430

September 9, 2024 Re: SAMHSA Notice of Award for 6H79SM083161-01M003 MTBH submitted our budget based on anticipated salary costs for new hires, which we believe stayed at or below our actual costs. We made available all necessary documentation requested from payroll, grant-related expenses, grant r...

September 9, 2024 Re: SAMHSA Notice of Award for 6H79SM083161-01M003 MTBH submitted our budget based on anticipated salary costs for new hires, which we believe stayed at or below our actual costs. We made available all necessary documentation requested from payroll, grant-related expenses, grant reports and timekeeping records to Wade Stables P.C for review. We did not have the grant in our financial software as we were beginning a migration to new software during the early stages of the grant; therefore, we tracked that grant on an excel spreadsheet that annually was provided to our auditors. Most of the staff assigned to the grant were full-time staff, so time allocation was easily tracked. For the few staff that were part-time we had designated codes in our Electronic Medical Record to identify work done on behalf of the grant. In response to Finding 2023-001- B Allowable Costs, we agree with the Statement of Cause citing the exponential growth of the organization regarding preparedness for a first-time grant award of this size being our largest challenge. Initially we were informed we had not received the grant then, due to additional COVID funding, we were invited to participate in the grant with a very short turnaround to finalize budgets and hire staff. Our salaries are consistent with the positions designated in the grant and in a few cases our staff salaries exceeded the allowable costs; therefore, those allowable costs were used to calculate the drawdown. MTBH did not have an established de minimis rate; therefore, we used the 10% designated rate associated with the grant. The interactive Budget Narrative Form template, required per SAMHSA guidelines, had 10% built into the template. If afforded future opportunities to secure a SAMSHA grant, we would be better positioned to execute the financial management in our SAGE software to segregate costs for the purpose of tracking the expenditures associated agency grant operations. Currently all agency expenditures have transferred into SAGE by our Vice President of Finance, Jenny Haught MBA, which would also be the Responsible Official to fiscally manage future grants. Respectfully, Angela Caraway, VP of Clinical Operations

View Audit 319554

Finding 496802 (2023-001)

Significant Deficiency 2023

Texas Biomedical Research Institute

TX

Cash Management Subrecipient Monitoring § 200.303 § 200.305

Effective June 1, 2023 Texas Biomed implemented enhanced controls to ensure timely entry of subrecipient invoices into the financial system and timely approvals by Principal Investigators (PIs) of invoices. While these controls were operating effectively after the implementation date, turnover with...

Effective June 1, 2023 Texas Biomed implemented enhanced controls to ensure timely entry of subrecipient invoices into the financial system and timely approvals by Principal Investigators (PIs) of invoices. While these controls were operating effectively after the implementation date, turnover within the Accounts Payable team had not been anticipated and led to delayed payment processing. In mid-2024, Texas Biomed implemented a new electronic AP/invoice system as part of a comprehensive Enterprise Resource Planning system (and associated supporting systems) conversion to enhance efficiencies and functionality. With implementation of new systems, control enhancements enabled by the systems were implemented. This included setting up subawards as Purchase Orders, which enabled automation of a previously manual process to secure PI approval of invoices. Accounts Payable staff have been trained on how to properly enter subaward invoices into the system to trigger electronic routing to the PI for approval. While these steps will streamline the approval process, a further mitigating control will be implemented, with Accounts Payable staff periodically tracking approvals of pending subrecipient invoices and notifying the appropriate Sponsored Program Administrator for follow up with PIs in the event of delayed approvals. Responsible Parties: Eva Zepeda, Director, Finance; Michelle Hyde, Controller Completion Date: September 30, 2024

View Audit 319544

Finding 496771 (2023-005)

Material Weakness 2023

Overdose Lifeline, Inc.

IN

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

Finding 2022-05 Misallocation of Grant Funds Condition: The Organization claimed purchases under a reimbursement-based federal grant but then used these supplies for a different grant. This improper use of grant-funded supplies is a violation of the grant’s terms and conditions. Corrective Actions...

Finding 2022-05 Misallocation of Grant Funds Condition: The Organization claimed purchases under a reimbursement-based federal grant but then used these supplies for a different grant. This improper use of grant-funded supplies is a violation of the grant’s terms and conditions. Corrective Actions Taken or Planned: The Organizations’ Board and Executive Team consisting of the Chief Executive Officer (CEO) and the Chief Operating Officer (COO) and key Overdose Lifeline (ODL) Staff to include the independent bookkeeper and Grant and Finance Manager recognize the need to further significantly improve on the oversight and reconciliation of supply ordering and inventory. This is already underway with the QB inventory process described previously and an improved process for backup documentation. Additionally key staff will complete of a formal course that covers performing a single audit and engage in consultation with the Independent Public Accounting Firm (Pile CPAs)

View Audit 319539 Questioned Costs: $1

Finding 496754 (2023-002)

Material Weakness 2023

City of Gadsden, Alabama

AL

Cash Management HUD Housing Programs Internal Control / Segregation of Duties § 200.303

2023-002 – ALN #14.218 Community Development Block Grant/Entitlements Grant; Recommendation: We recommend that the City return the duplicate drawn funds to HUD. We recommend all drawdown requests are completed by appropriately trained employees and that all drawdowns are reviewed and approved by a...

2023-002 – ALN #14.218 Community Development Block Grant/Entitlements Grant; Recommendation: We recommend that the City return the duplicate drawn funds to HUD. We recommend all drawdown requests are completed by appropriately trained employees and that all drawdowns are reviewed and approved by an appropriately personnel prior to submission to HUD. Corrective Action Planned: The City agrees with this finding. The City will work with HUD to repay the duplicated funds and implement additional review and approval procedures for drawdown requests. Person responsible for corrective action: Brandon Phillips, Finance Director Telephone: (256) 549-4715 Anticipated Completion Date: Corrective action will be implemented for the fiscal year ended September 30, 2024.

View Audit 319516

Finding 496753 (2023-003)

Material Weakness 2023

West Central Electric Cooperative, Inc.

SD

Allowable Costs / Cost Principles Cash Management Material Weakness § 200.303

Federal Agency Name: Department of Homeland Security Program Name: Disaster Grants – Public Assistance Federal Financial Assistance Listing #97.036 Finding Summary: The Cooperative utilized a fringe benefit spreadsheet provided by FEMA where the information was not calculated correctly. Responsibl...

Federal Agency Name: Department of Homeland Security Program Name: Disaster Grants – Public Assistance Federal Financial Assistance Listing #97.036 Finding Summary: The Cooperative utilized a fringe benefit spreadsheet provided by FEMA where the information was not calculated correctly. Responsible Individuals: Jeff Birkeland, CEO Corrective Action Plan: The spreadsheet we received from FEMA was protected and we could not verify formulas or make changes. We assumed the spreadsheet to work correctly. Through the audit, however, we found that there is an error in a formula(s) having to do with overheads. We will ensure we are using the most up-to-date spreadsheet for fringe benefits on FEMA projects going forward. Anticipated Completion Date: This has been resolved and Steph went back through and updated the spreadsheets accordingly in August 2024

View Audit 319515

Corrective Action Plans

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