Corrective Action Plans

Finding 375864 (2023-004)

None 2023

NJ

School Nutrition Programs Cash Management Reporting

Finding - The food service daily meal count report did not agree with the School District’s edit check worksheets that detail the number of meals served and provides the number of meals used to determine the amount of Federal reimbursement. Recommendation - That the School District’s food service d...

Finding - The food service daily meal count report did not agree with the School District’s edit check worksheets that detail the number of meals served and provides the number of meals used to determine the amount of Federal reimbursement. Recommendation - That the School District’s food service daily meal count reports agree with the edit check worksheets in an effort to request the appropriate amount of Federal reimbursement. Method of Implementation - Review and enhance internal controls from prior administration, including an implementation of procedures that align to the recommendation. Person Responsible for Implementation - School Business Administrator Implementation Date - March 1, 2024

View Audit 294964

Finding 375769 (2023-003)

Material Weakness 2023

City School District of Albany

NY

Cash Management Reporting School Nutrition Programs

Name of Auditee: City School District of Albany Name of Audit Firm: EFPR Group, CPAs, PLLC Period Covered by the Audit: Year ended June 30, 2023 CAP Prepared by: Joseph Karas, Assistant Superintendent for Business and Finance Phone: 518-475-6022 (A) Current Finding on the Schedule of Findings and Re...

Name of Auditee: City School District of Albany Name of Audit Firm: EFPR Group, CPAs, PLLC Period Covered by the Audit: Year ended June 30, 2023 CAP Prepared by: Joseph Karas, Assistant Superintendent for Business and Finance Phone: 518-475-6022 (A) Current Finding on the Schedule of Findings and Responses (3) Audit Finding 2023-003 (a) Comments on the finding and recommendation: The District agrees with the finding. The District also agrees with the recommendation. See below for actions taken. (b) Actions Taken: Management will reconcile significant asset and liability accounts, including state and federal receivables, at year end to ensure accounting records accurately reflect appropriate balances. (c) Anticipated Completion Date: Management anticipates this finding will be resolved by June 30, 2024.

View Audit 294827

Finding 375748 (2023-002)

Material Weakness 2023

Evergreen Local School District

OH

Allowable Costs / Cost Principles Cash Management Material Weakness § 200.303 § 200.514

Management is aware and understands the importance of compliance with the federal requirements and will ensure the meal counts will be properly reported in the future.

View Audit 294809

Finding 375700 (2023-003)

Significant Deficiency 2023

Marian University, Inc.

WI

Internal Control / Segregation of Duties Cash Management Significant Deficiency

Recommendation: We recommend that the University work to formally document the policy establishing systems of internal control over compliance that includes proper segregation of duties. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken i...

Recommendation: We recommend that the University work to formally document the policy establishing systems of internal control over compliance that includes proper segregation of duties. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: The University will formally document the policy establishing systems of internal control over compliance that includes proper segregation of duties specific to use of the G5 system. Name(s) of the contact person(s) responsible for corrective action: Michael Moos and Mark Quistorf Planned completion date for corrective action plan: March 31, 2024

View Audit 294773

Finding 375592 (2023-003)

Material Weakness 2023

Randolph Central School Corporation

IN

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

FINDING 2023-003 Finding Subject: Special Education Cluster (IDEA) – Allowable Costs/Cost Principles Summary of Finding: The Individuals with Disabilities Act (IDEA) Special Education – Grants to States program provides grant to states, and through them to Local Educational Agencies (i.e. the School...

FINDING 2023-003 Finding Subject: Special Education Cluster (IDEA) – Allowable Costs/Cost Principles Summary of Finding: The Individuals with Disabilities Act (IDEA) Special Education – Grants to States program provides grant to states, and through them to Local Educational Agencies (i.e. the School Corporation), to assist them in providing special education and related services to eligible children with disabilities ages 3-21. IDEA’s Special Education – Preschool Grants program provides grants to states, and through them to LEAs to assist them in providing special education and related services to children with disabilities ages three to five and, at the state’s discretion, to two-year-old children with disabilities who will turn three during the school year. To receive reimbursement for special education expenses paid, the School Corporation’s Treasurer completed a reimbursement request, and the Assistant Superintendent reviewed it. The documentation attached to the reimbursement request; however, did not have adequate detail to determine the payroll paid was in conformance with the applicable cost principles. Furthermore, payroll disbursements were posted by the Treasurer without a review to ensure the payee, amount, fund, and disbursement classification was accurate prior to disbursement. The auditors recommended that management of the School Corporation design and implement a proper system of internal control, including policies and procedures that would provide segregation of duties to ensure appropriate reviews, approvals and oversight are taking place. Contact Person Responsible for Corrective Action: Rolland Abraham Contact Phone Number and Email Address: 765-584-1401, rabraham@randolphcentral.us Views of Responsible Officials: We concur with the finding Description of Corrective Action Plan: The Treasurer will prepare a detailed payroll appropriation report each payroll. The Assistant Superintendent will review it to ensure the payee, amount, fund, and disbursement classification are accurate prior to disbursement. After approval, at the end of the month, the Treasurer will complete a reimbursement request and the Assistant Superintendent will review it for accuracy prior to submission. Anticipated Completion Date: 2/21/2024

View Audit 294679

Finding 375586 (2023-001)

Material Weakness 2023

Louisiana Delta Service Corps

LA

Internal Control / Segregation of Duties Cash Management Reporting § 200.303

Management Response: Due to the size of LDSC’s administrative staff, complete segregation of duties is not economically feasible. However, during the 2023 fiscal year, LDSC created a financial policies handbook that outlines controls and responsibilities in the financial reporting cycle. We will ens...

Management Response: Due to the size of LDSC’s administrative staff, complete segregation of duties is not economically feasible. However, during the 2023 fiscal year, LDSC created a financial policies handbook that outlines controls and responsibilities in the financial reporting cycle. We will ensure the areas recommended above are added to our current policy to the extent it is economically feasible. Responsible Person: Lisa Moore, Executive Director Anticipated Remediation Date: Fiscal year ended August 31, 2024

View Audit 294676

Finding 375455 (2023-004)

Material Weakness 2023

Community and Economic Development Organization of Gadsden County, Inc.

FL

Questioned Costs Allowable Costs / Cost Principles Cash Management

Management is working with a consultant to revise the policies and develop financial procedures, which will be followed to assure that all reimbursement requests consistently include only applicable invoices as support. Once developed, these procedures will be approved by the Board and implemented ...

Management is working with a consultant to revise the policies and develop financial procedures, which will be followed to assure that all reimbursement requests consistently include only applicable invoices as support. Once developed, these procedures will be approved by the Board and implemented immediately.

View Audit 294512 Questioned Costs: $1

Finding 374679 (2023-002)

None 2023

Elaine Ellis Center of Health Inc.

DC

Cash Management Reporting

The Center has developed a reporting system that is linked to the Payment Management System (PMS). This additional layer of scrutiny is intended to serve as a check against human error. When drawdowns are executed, they will be recorded in the system once the drawdown hits the bank account. The amou...

The Center has developed a reporting system that is linked to the Payment Management System (PMS). This additional layer of scrutiny is intended to serve as a check against human error. When drawdowns are executed, they will be recorded in the system once the drawdown hits the bank account. The amount recorded in this system will be an exact reflection of what is on the PMS report. The alignment of these two reporting systems will guarantee the accuracy of the center’s UDS reporting

View Audit 294369

Finding 374628 (2023-002)

Significant Deficiency 2023

School District of Belleville

WI

Questioned Costs Procurement, Suspension & Debarment Subrecipient Monitoring

Finding #2023-002: ESSER II #84.425D COVID-19 – Education Stabilization Fund and ESSER III #84.425U COVID-19 – Education Stabilization Fund Federal Grantor: U.S. Department of Education Pass-through Award Numbers: 2022-252646-DPI-ESSERFII-163 and 2022-252646-DPI-ESSERFIII-165 Pass-throug...

Finding #2023-002: ESSER II #84.425D COVID-19 – Education Stabilization Fund and ESSER III #84.425U COVID-19 – Education Stabilization Fund Federal Grantor: U.S. Department of Education Pass-through Award Numbers: 2022-252646-DPI-ESSERFII-163 and 2022-252646-DPI-ESSERFIII-165 Pass-through Entity: Wisconsin Department of Public Instruction Condition: There were five Education Stabilization Fund construction projects performed by contractors/subcontractors. None of the contracts included prevailing wage language clauses and certified payrolls were not obtained by the District during the fiscal year expended. Not all contractors/subcontractors were able to provide certified payrolls when requested as part of the compliance testing. Criteria: Wage rate requirements apply to the Education Stabilization Fund when laborers and mechanics employed by contractors or subcontractors work on construction contracts more than $2,000. Laborers must be paid wages not less than those established for the locality of the project (prevailing wage rates) by the Department of Labor (DOL). Nonfederal entities shall include in their contracts subject to wage rate requirements a provision that the contractor or subcontractor comply with those requirements and the DOL regulations. This includes a requirement for the contractor or subcontractor to submit to the District weekly payrolls and a statement of compliance (certified payrolls). Cause: There was turnover in the business office and the contracts were secured and approved prior to the current business manager. The District was not aware of the applicable requirements related to these projects. Effect: A reimbursement request was made for expenditures that did not comply with wage rate requirements. Questioned Costs: $78,300 (Amount for which certified payrolls were not subsequently provided) Recommendation: Establish procedures and controls to comply with wage rate requirements related to the Education Stabilization Fund. Obtain verification from contractors that prevailing wage rates were paid on the projects submitted for costs reimbursed by the grant. Response: The District became aware of the prevailing wage rate requirements after finishing the projects. Before bidding future construction projects more than $2,000, that may be funded with federal grant dollars, the request for bid and contract will include a prevailing wage rate clause. Certified payrolls will be received from contractors or subcontractors. Additionally, the district has obtained payroll data from all each contractor to provide support for wage rates paid if necessary. Contact Person: Erik Farrar Anticipated Completion: March 15, 2024

View Audit 294304 Questioned Costs: $1

Finding 374608 (2023-001)

Significant Deficiency 2023

Georgetown University

DC

Questioned Costs Cash Management

Finding 2023-001: Cash Management: Management agrees with the finding and recommendation. The University continues to evaluate monthly expenses to match actual expenses with cash draws. The University will also evaluate if an increase in the frequency of draws at smaller amounts is necessary in orde...

Finding 2023-001: Cash Management: Management agrees with the finding and recommendation. The University continues to evaluate monthly expenses to match actual expenses with cash draws. The University will also evaluate if an increase in the frequency of draws at smaller amounts is necessary in order to ensure funding drawn is expended within the thirty-day window. Chao Wang, Senior Director, Sponsored Projects Financial Operations, will perform on‐going monitoring of draws under this program to ensure funds are expended timely in accordance with the grant requirements throughout the year, and to identify the areas where additional training is required. The estimated completion date is June 30, 2024.

View Audit 294278 Questioned Costs: $1

Finding 374570 (2023-002)

Material Weakness 2023

South Florida Regional Transportation Authority

FL

Allowable Costs / Cost Principles Cash Management Material Weakness § 200.403

Condition: The billing submitted to the awarding agency for May and June 2023 cash management drawdown included expenses that weren’t incurred as of May and June 2023. Planned Corrective Action: The corrective action has been implemented to modify the order of our preventative internal controls. SFT...

Condition: The billing submitted to the awarding agency for May and June 2023 cash management drawdown included expenses that weren’t incurred as of May and June 2023. Planned Corrective Action: The corrective action has been implemented to modify the order of our preventative internal controls. SFTRA has changed the order of review so the electronic drawdown is not completed by the Budget Office until the Accounting Office has reviewed and approved the draw. This step was previously completed after the drawdown was initiated. Additionally, during review by the Accounting Office, the general ledger line detail will be reviewed to ensure accuracy Contact person responsible for corrective action: Jeremy Baker, Director of Finance Anticipated Completion Date: 1/15/2024

View Audit 294245

Finding 374540 (2023-003)

Material Weakness 2023

Maywood-Melrose Park-Broadview School District 89

IL

Allowable Costs / Cost Principles Cash Management Reporting

Corrective Action Plan Finding No.: 2023- 003 Condition: Audit procedures identified that during fiscal year 2023, the District claimed four construction related invoices that amounted to $1,257,867 of ESSER III award expenditures that were previously claimed under fiscal year 2022 ESSER award reimb...

Corrective Action Plan Finding No.: 2023- 003 Condition: Audit procedures identified that during fiscal year 2023, the District claimed four construction related invoices that amounted to $1,257,867 of ESSER III award expenditures that were previously claimed under fiscal year 2022 ESSER award reimbursement claims and were reported on the fiscal year 2022 Schedule of Expenditures of Federal Awards. The District was able to identify alternate invoices that where for allowable costs within the existing grant agreement and were not previously claimed. The District's internal controls did not initially identify that the same expenditure was claimed twice under the federal award for reimbursement. Plan: The District will implement additional procedures and review processes to ensure that expenditures claimed for reimbursement are for allowable costs that have not been previously claimed for reimbursement. Anticipated Date of Completion: June 30, 2024 Name of Contact Person: James Vreeland, Business Manager Management Response: See above

View Audit 294244

Finding 374480 (2023-002)

Significant Deficiency 2023

Millersburg Area School District

PA

Subrecipient Monitoring Cash Management Reporting

Corrective Action Planned: The District will review and establish procedures that all required quarterly cash on hand and final expenditure reports are properly completed within the required time periods. A new federal programs coordinator has been hired and the District has consulted with an expe...

Corrective Action Planned: The District will review and establish procedures that all required quarterly cash on hand and final expenditure reports are properly completed within the required time periods. A new federal programs coordinator has been hired and the District has consulted with an experienced federal programs coordinator to train that individual. Procedures are now in place to ensure that the District files all quarterly cash on hand reports within 10 days of quarter ending and final expenditure reports within 30 days after the funds are expended, but no later than 30 days after the ending date of the project. All existing compliance issues related to filing deadlines are being addressed and corrected. Anticipated Completion Date: Acton has already been taken by the District to resolve the underlying issue of the finding for the year ending June 30, 2024. Contact Person Responsible: Eric S. Petery, Business Manager

View Audit 294158

Finding 374441 (2023-003)

Material Weakness 2023

City of Newport, Tn

TN

Cash Management Internal Control / Segregation of Duties

Finding #2023-003: Internal Controls Over Grant Expenditures Response and Corrective Action Plan Prepared by: Justin Norton Person Responsible for Implementing the Corrective Action: Justin Norton Anticipated Date of Corrected Action: June 30, 2024. Repeat Finding: No Planned Corrective Action: We w...

Finding #2023-003: Internal Controls Over Grant Expenditures Response and Corrective Action Plan Prepared by: Justin Norton Person Responsible for Implementing the Corrective Action: Justin Norton Anticipated Date of Corrected Action: June 30, 2024. Repeat Finding: No Planned Corrective Action: We will establish and implement internal control policies to maintain federal grant expenditures and reimbursements.

View Audit 294101

Finding 374407 (2023-003)

Significant Deficiency 2023

Sunshine Connections, Inc.

KS

Allowable Costs / Cost Principles Cash Management Eligibility

2023-003 – 10.558 – Child and Adult Care Food Program – Activities Allowed or Unallowed and Allowable Costs/Cost Principles and Eligibility Condition Four providers received an improper amount for their meal reimbursement for the month tested. Recommendation Controls should be reviewed and updated t...

2023-003 – 10.558 – Child and Adult Care Food Program – Activities Allowed or Unallowed and Allowable Costs/Cost Principles and Eligibility Condition Four providers received an improper amount for their meal reimbursement for the month tested. Recommendation Controls should be reviewed and updated to ensure that complete and accurate meal counts are submitted to the State for reimbursement. Comments on the Finding Given the Organization’s limited size, it is not always feasible to fully segregate the duties surrounding the meal claims processes. However, in order to mitigate errors, steps have been taken to implement checks within those processes. Action Taken Whenever possible, an employee other than the Director will prepare the claims. The Director of the Organization will later review the claims for accuracy and compare the claim numbers in both the Excel Spreadsheet and the Little Organizer Program to ensure their correctness.

View Audit 294026

Finding 372678 (2023-002)

Material Weakness 2023

2-1-1 Big Bend, Inc.

FL

Allowable Costs / Cost Principles Cash Management

Finding 2023-002: Allowable Cost/Cost Principle The agency will implement a lost receipt form. This form will be used by employees to report instances where a receipt is lost or cannot be obtained. The form will include fields for documenting the date of the transaction, the amount, the purpose of t...

Finding 2023-002: Allowable Cost/Cost Principle The agency will implement a lost receipt form. This form will be used by employees to report instances where a receipt is lost or cannot be obtained. The form will include fields for documenting the date of the transaction, the amount, the purpose of the expense, and any other relevant details. Additionally, the form will require approval from the appropriate manager or supervisor.

View Audit 293802

Finding 372650 (2023-001)

Significant Deficiency 2023

Pendergast Elementary School District No. 92

AZ

Cash Management Reporting School Nutrition Programs

Findings and Questioned Costs Related to Federal Awards Finding Number: 2023‐001 Program Name/Assistance Listing Title: Child Nutrition Cluster Assistance Listing Numbers: 10.553, 10.555, 10.559 Contact Person: Krystal Burnham, Food Service Compliance Coordinator/ Danny Robbins, Interim Director of ...

Findings and Questioned Costs Related to Federal Awards Finding Number: 2023‐001 Program Name/Assistance Listing Title: Child Nutrition Cluster Assistance Listing Numbers: 10.553, 10.555, 10.559 Contact Person: Krystal Burnham, Food Service Compliance Coordinator/ Danny Robbins, Interim Director of Budget and Finance Anticipated Completion Date: July 31, 2023 Planned Corrective Action: The District will ensure that monthly counts are supported by documentation and verified by a second staff member and agree to the accuracy of the reimbursement claims prior to submission to the Arizona Department of Education. The District will also ensure that reimbursement claims are submitted within the required time period after month end and any identified issues with measures that prevent their recurrence.

View Audit 293730

Finding 372600 (2023-003)

Significant Deficiency 2023

Agate Housing and Services, Inc.

MN

Cash Management Significant Deficiency Internal Control / Segregation of Duties

2023-003 Lack of Support for Credit Card Charges for Former Employees Name of contact person – Laura Straw, Director of Finance Corrective action – Agate has re-instated the credit card receipt policy and has begun to enforce this policy. We are also taking action to review current policies and ...

2023-003 Lack of Support for Credit Card Charges for Former Employees Name of contact person – Laura Straw, Director of Finance Corrective action – Agate has re-instated the credit card receipt policy and has begun to enforce this policy. We are also taking action to review current policies and procedures surrounding employee credit cards and reimbursements. Completion date – Management and the Board of Directors implemented the above as of January 1, 2024.

View Audit 293672

Finding 372397 (2023-001)

Significant Deficiency 2023

Boise State University

ID

Subrecipient Monitoring Matching / Level of Effort / Earmarking Internal Control / Segregation of Duties § 200.303 § 200.305

Federal Program Title: Research and Development Cluster ALN: Various Recommendation: We recommend the University evaluate its procedures and implement an additional control to review and approve the subrecipient reimbursements timely. Explanation of disagreement with audit finding: There is no di...

Federal Program Title: Research and Development Cluster ALN: Various Recommendation: We recommend the University evaluate its procedures and implement an additional control to review and approve the subrecipient reimbursements timely. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action planned/taken in response to finding: Boise State University continues to review and enhance its internal subrecipient payment processes to find ways to identify and prevent untimely subrecipient payments, and to reduce the potential for human error. The University will implement additional internal measures to address inefficiencies related to the current multi-department review, approval, and payment process. Name(s) of the contact person(s) responsible for corrective action: Jen Lutke, Assistant Director, Post Award: jenniferlutke@boisestate.edu Planned completion date for corrective action plan: February 2024

View Audit 293651

Finding 372353 (2023-002)

None 2023

Carteret Board of Education

NJ

School Nutrition Programs Procurement, Suspension & Debarment Cash Management

The District has taken remedial actions to reduce net cash resources the Food Service Fund including the purchase of updated cafeteria equipment, service vehicles and brand new cafeteria tables for the High School. Additionally, the District plans to request additional staffing and more diverse menu...

The District has taken remedial actions to reduce net cash resources the Food Service Fund including the purchase of updated cafeteria equipment, service vehicles and brand new cafeteria tables for the High School. Additionally, the District plans to request additional staffing and more diverse menu items to suuplement the food service program.

View Audit 293633

Finding 372326 (2023-003)

Significant Deficiency 2023

Carteret Board of Education

NJ

Cash Management Reporting Significant Deficiency

The District will implement processes and procedures for the timely liquidation of all POs to ensure that expenditures are captured and are in agreement with the final federal grant expenditure report.

View Audit 293633

Finding 372298 (2023-001)

Material Weakness 2023

It Takes A Village to Feed One Child, INC

PA

Allowable Costs / Cost Principles Cash Management Reporting

To address Cost Efficacy, It Takes A Village To Feed One Chitd, Inc., we wilt imptement and utilize QBO moving forward, through obtaining an additionat license for QBO and taking onLine training classes to become more wetl versed and efficient through accredited and ticensed instructors. We witt use...

To address Cost Efficacy, It Takes A Village To Feed One Chitd, Inc., we wilt imptement and utilize QBO moving forward, through obtaining an additionat license for QBO and taking onLine training classes to become more wetl versed and efficient through accredited and ticensed instructors. We witt use best practices for internat controts through showing more evidence of QBO approvat routing for alt transactions, accounts payabte & receivabte, credit card reconcitiations. We wilt improve overatt checks and batances for supervision and staff, white team ing how to operate on a futt accrual tevet.

View Audit 293600

Finding 372180 (2023-001)

Significant Deficiency 2023

University of Cincinnati

OH

Subrecipient Monitoring Procurement, Suspension & Debarment Cash Management § 200.305

Finding Number: 2023-001 Condition: Out of 28 payments to subrecipients that were tested, 12 were made after the 30 calendar day requirement. Planned Corrective Action: Accounts Payable personnel will review all vendor invoices to determine whether an invoice is related to a federal award expendit...

Finding Number: 2023-001 Condition: Out of 28 payments to subrecipients that were tested, 12 were made after the 30 calendar day requirement. Planned Corrective Action: Accounts Payable personnel will review all vendor invoices to determine whether an invoice is related to a federal award expenditure. For federal award expenditures, Accounts Payable will manually change the payment terms to 30 calendar days or less, to ensure compliance. Periodically, Accounts Payable will review open federal award payables to verify payment terms have been properly set for the 30-day compliance requirement. The Controller’s and Accounts Payable Offices will also explore creating a more efficient long-term solution, whereby the 30-day terms could be automatically set during the purchase order creation process. This would eliminate any manual updates to the payment terms by Accounts Payable personnel. The Sponsored Research Services Accounting Office will send reminders to all college business officers and Principal Investigators (PIs) to highlight the need for prompt review and approval of Federal award invoices. This language will be incorporated into the SRS Best Grant Practices training classes, as well as the university’s Fundamentals of Sponsored Administration training courses. Contact person responsible for corrective action: Accounts Payable: Erik Sager; Purchasing: Tom Guerin; Sponsored Research Services Accounting: John Ungruhe Anticipated Completion Date: Initial corrective action, including review of invoices, reminders and modifications to training, will be completed by 10/31/2023. Additional solutions to eliminate manual updates, if possible, will be completed within 12 months.

View Audit 293505

Finding 372173 (2023-002)

Material Weakness 2023

Oak Park Elementary School District 97

IL

Questioned Costs Cash Management Internal Control / Segregation of Duties

Condition: The District claimed $136,026 of capital expenditures between their March 31, 2023 and June 30, 2023 reimbursement claim submitted to the Illinois State Board of Education that could not be supported by documentation. Plan: The District is in the process of restructuring finance and opera...

Condition: The District claimed $136,026 of capital expenditures between their March 31, 2023 and June 30, 2023 reimbursement claim submitted to the Illinois State Board of Education that could not be supported by documentation. Plan: The District is in the process of restructuring finance and operations to align roles and responsibilities. We will implement additional procedures for review and approval of reimbursement claims prior to submission to ensure that expenditures are claimed within a reasonable period of time in relation to when a reimbursement claim is submitted. Anticipated Date of Completion: 6/30/2024 Name of Contact Person: Sheila Johnson, Assistant Superintendent of Finance and Operations

View Audit 293479 Questioned Costs: $1

Finding 372115 (2023-002)

Significant Deficiency 2023

Houston Recovery Center, Lgc

TX

Cash Management Reporting Significant Deficiency

Finding #2023-002 – Significant Deficiency and Other Noncompliance. Applicable federal programs: U. S. Department of Treasury, Assistance Listing #21.027, COVID-19 Coronavirus State and Local Fiscal Recovery Funds, Passed through Harris County, Texas, Contract #220163, Contract year: 12/01/22 – 12...

Finding #2023-002 – Significant Deficiency and Other Noncompliance. Applicable federal programs: U. S. Department of Treasury, Assistance Listing #21.027, COVID-19 Coronavirus State and Local Fiscal Recovery Funds, Passed through Harris County, Texas, Contract #220163, Contract year: 12/01/22 – 12/31/24, U. S. Department of Health and Human Services:, Assistance Listing #93.243, Substance Abuse and Mental Health Services Projects of Regional and National Significance, Contract #5H79TI080624-03, Contract year: 09/30/21 – 09/29/22, Contract #5H79TI080624-04, Contract year: 09/30/22 – 09/29/23, Passed through the City of Houston Health Department, Contract #H79SP080300, Contract years: 11/01/21 – 10/31/22, 11/01/22 – 10/31/23 and 06/08/21 – 06/30/23, Assistance Listing #93.788, Opioid STR, Passed through the Texas Health and Human Services Commission, Contract #HHS000357900001, Contract years: 09/01/21 – 08/31/22 and 09/01/22 – 08/31/23, Passed through the University of Texas Health Science Center, San Antonio, Contract #HHS000561800001, Contract year: 09/01/21 – 08/31/22, Assistance Listing #93.959, Block Grants for Prevention and Treatment of Substance Abuse, Passed through the Texas Health and Human Services Commission, Contract #HHS000130500019, Contract years: 09/01/21 – 08/31/22 and 09/01/22 – 08/31/23. Condition and context: Houston Recovery Center is required to submit monthly reimbursement requests for five of its federal programs; one program requires reimbursement requests based on achievement of certain milestones rather than time. Out of a sample of 17 requests, we found six did not have evidence of review and approval as required by Houston Recovery Center’s policies and procedures. Recommendation: Training should be provided to ensure that policies and procedures regarding independent review and approval are followed. Planned corrective action: Houston Recovery Center will strengthen its internal control policies and procedures over independent review and approval of grant payment requests by shifting the primary review and approval process from the Chief Executive Officer (CEO) to the Chief Operating Officer (COO). The COO has full knowledge of allowable costs and has more availability than the CEO, which will make it easier to ensure that our policies and procedures are followed on a consistent basis. The CEO will continue in this role as backup to the COO to ensure immediate access for needed approval. We believe we have a strong system in place used by our accounting department to ensure all expenses underlying the grant payment requests are reviewed, checked for accuracy, and properly approved which further supports the reimbursement policies and procedures. Responsible officer: Leonard Kincaid, Executive Director. Estimated completion date: November 1, 2023.

View Audit 293417

Corrective Action Plans

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