Corrective Action Plans

Finding 9885 (2023-002)

Material Weakness 2023

PA

Internal Control / Segregation of Duties Cash Management

Adjusting Journal Entries, Required Disclosures and Draft Financial Statements Year ended June 30, 2023 Auditors’ Recommendation: Although auditors may continue to provide such assistance both now and in the future, under this pronouncement, the District should continue to review and accept both pro...

Adjusting Journal Entries, Required Disclosures and Draft Financial Statements Year ended June 30, 2023 Auditors’ Recommendation: Although auditors may continue to provide such assistance both now and in the future, under this pronouncement, the District should continue to review and accept both proposed adjusting journal entries and footnote disclosures, along with the draft financial statements. District’s Response: Adam Moate, Business Manager, has received, reviewed and accepted all journal entries, footnote disclosures and draft financial statements proposed for the current year audit and will continue to review similar information for the year ending June 30, 2024 and in future years. Further, the District believes it has a thorough understanding of these financial statements and the ability to make informed judgments based on these financial statements. Lastly, the District considers such assistance provided by the auditors to be the most cost effective in preparing such information.

View Audit 13527

Finding 9737 (2023-004)

Significant Deficiency 2023

Putnam County, Tennessee

TN

Questioned Costs Procurement, Suspension & Debarment Cash Management

The following steps have been implemented regarding the Education for Homeless Chidren and Youth grants: All gift cards have been secured at the Putnam County Board of Education central office in a secured area and in a locked safe. All gift cards are being signed out with documentation. Supporting ...

The following steps have been implemented regarding the Education for Homeless Chidren and Youth grants: All gift cards have been secured at the Putnam County Board of Education central office in a secured area and in a locked safe. All gift cards are being signed out with documentation. Supporting documentats are now being returned to the accounting department. Supporting documents are being stored within the accounting system. Supporting documents are being categorized in the correct grant. Reimbursement requests will not be made until after the final purchase of any goods or services have transpired. No purchases of gift cards will take place at the end of the year unless the final purchases of any goods or services will be able to take place before the end of the fiscal year.

View Audit 13488 Questioned Costs: $1

Finding 9658 (2023-002)

Material Weakness 2023

Williamston Housing Authority

NC

HUD Housing Programs Cash Management Material Weakness

Name of Contact Person: Michael Gaddy Executive Director Corrective Action: We have addressed all reported deficiencies noted in the 2023 physical inspection. Management will be more diligent in working with Ma...

Name of Contact Person: Michael Gaddy Executive Director Corrective Action: We have addressed all reported deficiencies noted in the 2023 physical inspection. Management will be more diligent in working with Maintenance to monitor the physical condition of all properties. Proposed Completion Date: Immediately

View Audit 13376

Finding 9657 (2023-001)

None 2023

Fellowship Commons Whalley, Inc.

CT

Cash Management HUD Housing Programs

Upon discovery of the FY23 underfunding, a corrective deposit was made subsequent to year end. The monthly amount for FY24 was also corrected to return the project to compliance with deposit requirements.

View Audit 13375

Finding 9651 (2023-002)

Material Weakness 2023

Pono Homes, Inc.

MD

Questioned Costs Cash Management HUD Housing Programs

Recommendation: Training of staff should be performed to bring staff up to date with the implementation of all residual receipts’ compliance requirements. Action Taken: The Organization did not obtain approval to pay back the excess residual receipt amount. This led to the residual receipt account...

Recommendation: Training of staff should be performed to bring staff up to date with the implementation of all residual receipts’ compliance requirements. Action Taken: The Organization did not obtain approval to pay back the excess residual receipt amount. This led to the residual receipt account being greater than its compliance amount. The Organization will request approval to pay back excess residual receipts.

View Audit 13330 Questioned Costs: $1

Finding 9622 (2023-002)

None 2023

Mahalo Homes, Inc.

MD

Questioned Costs Cash Management HUD Housing Programs

Recommendation: Training of staff should be performed to bring staff up to date with the implementation of all residual receipts’ compliance requirements. Additionally, the Organization should request approval for current overage. Action Taken: The Organization did not obtain approval to pay back...

Recommendation: Training of staff should be performed to bring staff up to date with the implementation of all residual receipts’ compliance requirements. Additionally, the Organization should request approval for current overage. Action Taken: The Organization did not obtain approval to pay back the excess residual receipt amount. This led to the residual receipt account being greater than its compliance amount. The Organization will request approval to pay back excess residual receipts.

View Audit 13307 Questioned Costs: $1

Finding 9617 (2023-002)

Material Weakness 2023

Kuleana Gardens, Inc.

MD

Questioned Costs Cash Management HUD Housing Programs

Recommendation: Training of staff should be performed to bring the staff up to date with the implementation of all residual receipts compliance requirements. Additionally, the Organization should request approval for current overage. Actio...

Recommendation: Training of staff should be performed to bring the staff up to date with the implementation of all residual receipts compliance requirements. Additionally, the Organization should request approval for current overage. Action Taken: Kuleana Gardens, Inc. did not retain approval to pay back the excess residual receipts amount. This led to the residual receipt account being greater than its compliance amount. The Organization will request approval to move money out of the residual receipts account in order to pay the residual receipt note.

View Audit 13303 Questioned Costs: $1

Finding 9614 (2023-002)

None 2023

Lorien Homes, Inc.

MD

Questioned Costs Cash Management HUD Housing Programs

Recommendation: Training of staff should be performed to bring the staff up to date with all residual receipts compliance requirements . Action Taken: Lorien Homes, Inc. did not obtain approval to pay back the excess residual receipt amount. This led to the residual receipt account being greater th...

Recommendation: Training of staff should be performed to bring the staff up to date with all residual receipts compliance requirements . Action Taken: Lorien Homes, Inc. did not obtain approval to pay back the excess residual receipt amount. This led to the residual receipt account being greater than its compliance amount. The Organization will request approval to pay back excess residual receipts.

View Audit 13299 Questioned Costs: $1

Finding 9438 (2023-002)

Material Weakness 2023

Housing Authority of the City of Lexington, Nebraska

NE

HUD Housing Programs Special Tests & Provisions Cash Management

Lexington Housing Authority (LHA) did fail to determine excess receipts were due to HUD when its PRAC renewed November 1, 2022. Amount due is $5,292.34. LHA is preparing to ask HUD if we can use some of the excess receipts to fix the smoke alarm system as well as a couple other items. If LHA is not...

Lexington Housing Authority (LHA) did fail to determine excess receipts were due to HUD when its PRAC renewed November 1, 2022. Amount due is $5,292.34. LHA is preparing to ask HUD if we can use some of the excess receipts to fix the smoke alarm system as well as a couple other items. If LHA is not able to, then they will be remitted back to HUD. LHA agrees with the finding and the planned corrective action follows. LHA should have answers back from HUD in regards to using the funds within the next two weeks. LHA Procedure for the future: When Annual Contract is renewed, check balance of Residual Receipts and if over the $4500 limit, remit the amount back to HUD.

View Audit 12929

Finding 9412 (2023-004)

Material Weakness 2023

Reorganized School District R-II of Cape Girardeau County

MO

School Nutrition Programs Procurement, Suspension & Debarment Internal Control / Segregation of Duties

Name of Contact Person: Matt Lacy, Chief Financial Officer; Recommendation: We recommend the District verify a vendor's status by checking the System for Award Management (SAM) maintained by the General Services Administration before making purchases expected to exceed $25,000; Corrective Action: ...

Name of Contact Person: Matt Lacy, Chief Financial Officer; Recommendation: We recommend the District verify a vendor's status by checking the System for Award Management (SAM) maintained by the General Services Administration before making purchases expected to exceed $25,000; Corrective Action: We will verify all vendors' status using the System for Award Management (SAM) maintained by the General Services Administration before making purchases expected to exceed $25,000.

View Audit 12919

Finding 9402 (2023-002)

Significant Deficiency 2023

True North Rochester Preparatory Charter School

NY

School Nutrition Programs Cash Management Reporting

The Rochester Schools will implement a plan which will eliminate discrepancies between meal counting at the homeroom level, reporting at the school level, and claims made at the state and federal levels. This implementation plan includes a heighten responsibility with data collection, multiple quali...

The Rochester Schools will implement a plan which will eliminate discrepancies between meal counting at the homeroom level, reporting at the school level, and claims made at the state and federal levels. This implementation plan includes a heighten responsibility with data collection, multiple quality checks and data transfer. Procedures to prevent reoccurrence in the future are listed below:

View Audit 12883

Finding 9399 (2023-002)

None 2023

Paradise Independent School District

TX

Cash Management Equipment & Real Property Management

The findings identified for the current year of an excess cash balance in the lunchroom fund will be reviewed by the Superintendent, Business Manager, and the Board of Trustees. The review will include determining the District’s current needs for equipment, amounts charged for student meals, and oth...

The findings identified for the current year of an excess cash balance in the lunchroom fund will be reviewed by the Superintendent, Business Manager, and the Board of Trustees. The review will include determining the District’s current needs for equipment, amounts charged for student meals, and other food service expenditures to determine the best course of action for the District to reduce the excess cash balance in the food service program.

View Audit 12863

Finding 9337 (2023-002)

Significant Deficiency 2023

Paris Junior College

TX

Student Financial Aid Cash Management Reporting

Corrective Action Plan (Continued) Year Ended August 31, 2023 2023-02 Recommendations: Paris Junior College's management should implement additional controls and procedures to ensure compliance requirements are met regarding the posting of contracted arrangements with financial account providers to ...

Corrective Action Plan (Continued) Year Ended August 31, 2023 2023-02 Recommendations: Paris Junior College's management should implement additional controls and procedures to ensure compliance requirements are met regarding the posting of contracted arrangements with financial account providers to the Department of Education's database. Additionally, the College must establish a procedure to accomplish a due diligence review of the financial account provider's rates and fees. Action Plan: Paris Junior College management will ensure that a comprehensive procedure is established and implemented to ensure compliance requirements are met. Contact Person: Debra Craig, Controller Anticipated Completion Date: January 10, 2024

View Audit 12826

Finding 9234 (2023-002)

Significant Deficiency 2023

Scotland County Board of Education

NC

Subrecipient Monitoring Cash Management Reporting

Name of Contact Person :Wannaa Chavis, Chief Finance Officer ...

Name of Contact Person :Wannaa Chavis, Chief Finance Officer Corrective Acrtion Plan: The finding resulted primarily from significant turnover within the Finance Department. Management has established procedures to ensure that all bank account and other required reconciliations are prepared on a timely basis going forward. The Finance department will also strive to keep key positions filled at all times and ensure that staff receives appropriate training regarding reconciliations. Proposed Completion Date: Immediately

View Audit 12648

Finding 9228 (2023-002)

Material Weakness 2023

The Chicago Lighthouse for the Blind and Visually Impaired

IL

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

The Chicago Lighthouse will implement processes to address material weakness for internal controls in relation to reviewing and approving time spent by personnel working on government funded programs. Staff dedicating time and effort to activities that are multi-grant funded will prepare Personnel ...

The Chicago Lighthouse will implement processes to address material weakness for internal controls in relation to reviewing and approving time spent by personnel working on government funded programs. Staff dedicating time and effort to activities that are multi-grant funded will prepare Personnel Activity Reports (PAR) monthly and submit them to the Accounting Department once approved by the manager over the program. Charges to awards for salaries, wages, and benefits will be based on documented PAR approved by a responsible official(s) of the organization. PAR submissions will contain the breakdown of time dedicated by staff to activities and awards across all programs they support. In the event a staff member is dedicated to only one program or cost objective, the recurrence of the PAR will be at least twice a year. Each Program Director must ensure that all grant-funded employees are familiar with time documentation guidelines and are complying with these requirements. The Director of Grants and Contracts will review the time and effort report (PAR) and confirm appropriate verification. As part of the recurring vouchering process, the Director of Grants and Contracts will reconcile actual hours worked and percentage of hours worked per program as reported on the time reporting forms to actual charges within the accounting system. The Director of Grants and Contracts will work with the Program Director/Administrator to resolve any discrepancies. The Program Director/Administrator must initial any corrections that are made to the forms. Name of the contact person responsible for corrective action: Rosa Carrillo, CFO Anticipated completion date for corrective action: 07/01/2023

View Audit 12612

Finding 9218 (2023-004)

Material Weakness 2023

Ypsilanti Community Schools

MI

Cash Management Eligibility Material Weakness

Finding 2023-004- Eligibility- Reimbursements Request Auditor Description of Condition: The School District's support for the number of meals served did not agree to the meals requested on the reimbursement requests. The District should request reimbursement for the actual number of meals served an...

Finding 2023-004- Eligibility- Reimbursements Request Auditor Description of Condition: The School District's support for the number of meals served did not agree to the meals requested on the reimbursement requests. The District should request reimbursement for the actual number of meals served and should maintain support for the number of meals served for each reimbursement request. The School District maintained records from a point-of-sale system, but those meals served could not be reconciled or agreed to the reimbursement requests for our sample of 3 claims. The lack of reconciliation or other records to explain the differences could have resulted in the School District over or under requesting reimbursement from Michigan Department of Education. Corrective Action Plan: The Business Office will work with the Food Service Director to implement procedures to ensure meals service data is retained and communicated to the entity requesting reimbursement for meals served. Responsible Person: Director of Finance and Director of Food Service. Anticipated Completion Date: June 30, 2024

View Audit 12601

Finding 9185 (2023-001)

Significant Deficiency 2023

University of South Alabama

AL

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

Corrective Action Plan Inaccurate Vendor Invoice Calculations Communication was made by USA Health Director of Accounting to the USA Health Accounting Department on 11/4/23 and sent via email to all USA Health Department Managers on 11/6/2023 reiterating the procedures for submission, review, and ap...

Corrective Action Plan Inaccurate Vendor Invoice Calculations Communication was made by USA Health Director of Accounting to the USA Health Accounting Department on 11/4/23 and sent via email to all USA Health Department Managers on 11/6/2023 reiterating the procedures for submission, review, and approval of contract labor invoices. Specific instructions to recalculate each contract employees’ timesheet(s) and agree the totals to the related invoice prior to approval were included and outlined for department managers, accountants, and accounts payable staff. Duplicate Grant Expenditures and Proper Approvals The manager charged with approval of grant related transactions and transfers in 2022/2023 has since left USA. The process for reviewing and approving grant expenditures has since been enhanced. Specifically, employees responsible for processing grant transfer documentation will ensure documents contain management approval(s), grants and contracts accounting approval, and appropriate documentation prior to keying and uploading documentation into the general ledger (Banner system). The new practice will help compensate for employee turnover as documentation of historical review will be available to successors. Additional process enhancements will include the following: • Expenses cannot be transferred to a grant until payment has been processed. • Entries must contain a transaction line item for each invoice transferred to the Grant (not subtotals). • Accounting records will be reviewed prior to approval to ensure expenditures have not been previously transferred to a grant. • Expense transfer supporting documentation must contain a detailed schedule of all invoices, include a reference to the foapal and document number originally charged, name of vendor, date of initial payment, and amount. USA Health Accounting is currently working with Grants & Contracts Accounting and the USA Campus Business Office to document the process and effectively communicate this process with all responsible parties. Anticipated Completion Date 01/31/2024 Name of Contact Person for Corrective Action Becky Schaffer, USA Health Director of Accounting

View Audit 12556 Questioned Costs: $1

Finding 9184 (2023-002)

Significant Deficiency 2023

Children's Home of Northern Kentucky Inc.

KY

Student Financial Aid Cash Management Matching / Level of Effort / Earmarking § 200.305

Finding 2023-002 Cash Management Internal Controls (Significant Deficiency) Responsible Persons: Debbie Rapier, Chief Financial Officer Corrective Action Plan: All monthly billing information for the FPP and MST programs is sent by the Director of Revenue Cycle to the FPP/MST supervisor for review...

Finding 2023-002 Cash Management Internal Controls (Significant Deficiency) Responsible Persons: Debbie Rapier, Chief Financial Officer Corrective Action Plan: All monthly billing information for the FPP and MST programs is sent by the Director of Revenue Cycle to the FPP/MST supervisor for review and comparison. The Outpatient Services Manager then prepares the monthly invoice. The invoice is forwarded to finance and reviewed by the Chief Financial Officer or Accounting Manager, in the absence of the CFO. Once approved, it is submitted to the Department of Community Based Services for payment. Once payment is received, it is compared against the receivable for accuracy. Anticipated Completion Date: Throughout fiscal year ending and beyond June 30, 2024

View Audit 12548

Finding 9122 (2023-001)

Significant Deficiency 2023

Northwest Community Schools

MI

Cash Management Reporting School Nutrition Programs

Finding: 2023-001 – Reporting – Meal Claim Reimbursement Noncompliance Auditor Description of Condition and Effect. Two of three meal claim reimbursement reports selected for testing did not agree to underlying meal count sheets and on all three reports tested, the District understated claims for o...

Finding: 2023-001 – Reporting – Meal Claim Reimbursement Noncompliance Auditor Description of Condition and Effect. Two of three meal claim reimbursement reports selected for testing did not agree to underlying meal count sheets and on all three reports tested, the District understated claims for one of its facilities. As a result of this condition, the District submitted inaccurate claims for reimbursement, resulting in a reimbursement less than what the District should have received. Auditor Recommendation. We recommend that the District thoroughly review its monthly reports to count sheets and familiarize itself with allowable reimbursement claims. Corrective Action. Management concurs with finding. The District will utilize a thorough review of entered data prior to certification of claims data. A secondary review of claims data will be reviewed by a District finance department staff to ensure proper claims data. Responsible Person: Emili Jones, Director of Business and Finance Anticipated Completion Date: November 1, 2023

View Audit 12482

Finding 9115 (2023-002)

Significant Deficiency 2023

Mason Public Schools

MI

Cash Management School Nutrition Programs Internal Control / Segregation of Duties

Condition: During the testing of internal controls surrounding the child nutrition program claims reimbursement reporting, it was identified that review of the meal counts and monthly claims reports is not taking place. Planned Corrective Action: The 2022-23 school year returned to students having t...

Condition: During the testing of internal controls surrounding the child nutrition program claims reimbursement reporting, it was identified that review of the meal counts and monthly claims reports is not taking place. Planned Corrective Action: The 2022-23 school year returned to students having to pay for their school meals since COVID. The district had a FS bookkeeper who was hired in the spring of 2020. The 2022-23 school year was her first-time filing school meal claims based on if students were free, reduced, or full pay. She started by exporting student counts from Skyward then adjusting them for GSRP and Heartwood student meal claims. Since this was a manual process, a few errors occurred. This FS bookkeeper resigned in the spring of 2023. The district hired a new FS Bookkeeper. She will be exporting the count information directly from Skyward, then using an Excel spreadsheet to adjust for GSRP and Heartwood students. The FS Bookkeeper will enter the counts into School Meal Claims website. The counts will be reviewed by the FS Director who will complete the actual submission of the meal claims. The entire process will be audited by the district accountant monthly. Contact person responsible for corrective action: Tracey Wooden, CFO Anticipated Completion Date: 07/12/2023

View Audit 12468

Finding 9069 (2023-001)

Material Weakness 2023

Naf Senior Housing, Inc.

NE

HUD Housing Programs Special Tests & Provisions Cash Management

Finding 2023-001: Excess Residual Receipts Lexington Housing Authority (LHA) did fail to determine excess receipts were due to HUD when its PRAC renewed November 1, 2022. Amount due is $5,29234. LHA is preparing to ask HUD if we can use some of the excess receipts to fix the smoke alarm system as ...

Finding 2023-001: Excess Residual Receipts Lexington Housing Authority (LHA) did fail to determine excess receipts were due to HUD when its PRAC renewed November 1, 2022. Amount due is $5,29234. LHA is preparing to ask HUD if we can use some of the excess receipts to fix the smoke alarm system as well as a couple other items. If LHA is not able to, then they will be remitted back to HUD. LHA agrees with the finding and the planned corrective action follows. LHA should have answers back from HUD in regards to using the funds within the next two weeks. LHA Procedure for the future: When Annual Contract is renewed, check balance of Residual Receipts and if over the $4500 limit, remit the amount back to HUD.

View Audit 12420

Finding 9068 (2023-004)

None 2023

Upper Perkiomen School District

PA

Questioned Costs Cash Management

The District will implement quarterly journal entries to remove 50% of the retirement expenditures from federal grants for employees charged to the grant.

View Audit 12419 Questioned Costs: $1

Finding 9052 (2023-003)

None 2023

Hawthorn School District No. 73

IL

Questioned Costs Cash Management

Condition: In a population of over 550 invoices, exceptions were noted in 1 out of 47 invoices tested. The 1 invoice was paid twice and claimed for reimbursement twice. Plan: Management will implement procedures to ensure an expenditure has cleared the bank before they are claimed as expenditures an...

Condition: In a population of over 550 invoices, exceptions were noted in 1 out of 47 invoices tested. The 1 invoice was paid twice and claimed for reimbursement twice. Plan: Management will implement procedures to ensure an expenditure has cleared the bank before they are claimed as expenditures and remove the expenditure from the grant if they pay in another manner. Anticipated Date of Completion: 6/30/2024 Name of Contact Person: LeeAnn Taylor, Assistant Superintendent of Finance & Business Operations Management Response: N/A

View Audit 12384 Questioned Costs: $1

Finding 9042 (2023-003)

Significant Deficiency 2023

The Wellbeing Initiative, Inc.

NE

Cash Management Internal Control / Segregation of Duties Reporting § 200.305

2023-003 - Noncompliance and Significant Deficiency in Internal Controls over Compliance for Cash Management Corrective Action Plan: Wellbeing Initiative has reviewed Title 2 CFR §200.305 and updated the Internal Controls Policy and Procedure Manual to include the following policy. Other polic...

2023-003 - Noncompliance and Significant Deficiency in Internal Controls over Compliance for Cash Management Corrective Action Plan: Wellbeing Initiative has reviewed Title 2 CFR §200.305 and updated the Internal Controls Policy and Procedure Manual to include the following policy. Other policies and procedures have been implemented and used since the incident to prevent the erroneous draw of funds prior to their expenditure. Item 10.3. Cash Management- : Criteria for cash management requirs non-Federal entities to utilize the reimbursement method and requires that expenditures were incurred prior to the date of the reimbursement request. Funds drawn from the Federal Payment Management System are deposited into a separate account and transferred to the appropriate account for reimbursement of previously accrued expenses. As allowable by grant guidelines the organization may drawdown funds in advance for expenditures to be made within the next 72 hours and meet the following requirements: i. Be limited to the minimum amounts needed to cover allowable project costs ii. Be timed in accordance with the actual immediate cash requirements of carrying out the approved project iii. Not be made to cover future expenditures Anticipated Completion Date: Completed 11/16/2023 Responsible: Chief Executive Team Danielle Smith and Sadie Thompson

View Audit 12371

Finding 8995 (2023-002)

Material Weakness 2023

Mid-South Food Bank

TN

Questioned Costs Cash Management

The deficiency of lack of proper documentation for two mobile distributions is due to oversite by our agency relations team to ensure proper recipient paperwork is maintained at each mobile distribution. Our added mobile distributions to meet the increased need for food in our community has tripled ...

The deficiency of lack of proper documentation for two mobile distributions is due to oversite by our agency relations team to ensure proper recipient paperwork is maintained at each mobile distribution. Our added mobile distributions to meet the increased need for food in our community has tripled this workload. Staff has been retrained to ensure the proper paperwork is filed. Mississippi DHS alleges our food bank has not provided adequate supporting documentation for two TEFAP contracts ending September 30, 2022. The CEO of the food bank and many staff members worked with MS DHS for 14 months and feel we have provided everything requested and cooperated every way we can. This was our first contract with MS DHS and the learning curve for reporting has been great. The reimbursement request by MS DHS is currently being appealed.

View Audit 12341 Questioned Costs: $1

Corrective Action Plans

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