Corrective Action Plans

Finding No: 2022-002 Activities Allowed or Unallowed/Allowable Costs Federal Agency: U.S. Department of Agriculture Assistance Listing Number: 10.652 Program: Research and Development Cluster ? Forestry Research Award Year: July 31, 2017 through July 30, 2022 (a) Criteria or Requirement Per 2 CFR 200.303, the non-Federal entity must establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. (b) Condition Found, Including Perspective During our test work over the Research and Development cluster, we selected a sample of 50 disbursements made during the fiscal year. Within our sample, we noted one instance in which certain documented costs were approved and disbursements were made for an unallowable amount due to an inaccurate calculation on the underlying invoice. (c) Possible Cause The University has a management review process to review invoices and related documentation before payments are disbursed. The University management review control that was in place did not operate effectively to prevent unallowable charges from being submitted for reimbursement by the Federal agency. (d) Questioned Cost None reportable. (e) Effect Federal funds were expended for inaccurate amounts. (f) Statistical Validity The sample was not intended to be, and was not, a statistically valid sample. (g) Repeat Finding in the Prior Year Not a repeat finding. (h) Recommendation We recommend that the University strengthen controls over the management review process to prevent inaccurate amounts from being charged to Federal programs. (i) View of Responsible Officials Management concurs with the finding. While we have an adequate process in place, those responsible for steps of the review process need to be reminded of the importance of completing adequate reviews. (j) Corrective Action Plan An email will be sent to the Research Operations Council that reminds administrators, who are responsible for processing invoices, to confirm invoice calculations prior to processing for payment. Research administrators will also be re-trained at the next Research Operations Council meeting on the importance of thoroughly reviewing invoices received for payment. Inaccurate expenditures will be removed from project. (k) Anticipated Completion Date Email reminder of proper invoice review protocol sent November 11, 2022. Inaccurate expenditure will be removed from project by December 1, 2022. In-person reminder of process will be discussed at next in-person ROC meeting which is currently scheduled for December 1, 2022. (l) Name of Contact Person for Corrective Action Lindsey Sheffield, Manager, Office of Contracts and Grants: 251-460-6052.

Finding Reference Number: 2022-001 Concur or Do Not Concur: Concur Agree or Disagree with Auditor Recommendations: Agree Actions Taken or Planned on the Finding: Management agrees with the finding. The excess funds were accrued to submit to HUD. Completion Date: August 3, 2022

City of Dothan Corrective Action Plan RE: FEDERAL FINDINGS AND QUESTIONED COSTS Finding 2022-001 U.S. DEPARTMENT OF AGRICULTURE: Passed Through State Department of Education: Children At Risk Feeding Child and Adult Care Program Assistance Listing Number: 10.558 Pass-Through Grantor?s Number: AKZ-0000 While internal controls are designed to provide reasonable assurance that operations are effective and reliable, there are certain areas that require further review. It was determined that inconsistencies existed in records that were required for proper grant administration. Due to inadequate supervision of the program, inconsistent and insufficient records were used in the reimbursement filing process. The City of Dothan has implemented procedures to avoid any future issues or discrepancies with expenses and reporting for the program. The Finance Department will review any monthly reports and corresponding general ledger account numbers for accuracy and consistency with the amounts provided in the monthly filings prior to submission to the Department of Education. The new program manager has reviewed all grant requirements and relevant forms required for proper grant administration. Training has also been provided to the City?s staff tasked with administering the program moving forward.

The District will evaluate all aspects and needs of the food service program including personnel, equipment such as stoves, freezers, etc. and determine the best and legally proper use of the excess funds.

Finding 2022-013 ? Internal Controls Over Grant Management (Significant Deficiency) Information on the Federal Program: U.S. Department of Education, CFDA No. 84.425, COVID-19 Education Stabilization Fund ? Higher Education Emergency Relief Fund Criteria: 2 CFR 200.303 requires non-federal entities receiving federal awards establish and maintain internal controls over the federal awards that provides reasonable assurance that the non-federal entity is managing the federal awards in compliance with federal statutes, regulations and the terms and conditions of the federal awards. Condition: During audit procedures we tested controls over applicable compliance requirements. We tested two drawdowns for cash management requirements. One of the draws was a reimbursement for lost revenue. Although the method to calculate lost revenue was reviewed and approved, the individual calculations and amounts to be drawn were not reviewed and approved. We tested five disbursements made directly to students as grant awards. Of these five, four disbursements did not have documentation of review or approval of the amounts to be paid. Management?s View: Management had previously held many discussions regarding drawdown calculations and student disbursements either verbally or during in-person meetings that were not formally documented. Corrective Action Plan: Management is in process of updating Policies and Procedures. Management will ensure that all drawdown calculations will be sent to the Director of Accounting and Finance and the VP of Administration and Operations for review and approval via email. Student disbursement information, including the method of determining qualifying students and amounts, will be sent by the Dean of Students to the VP of Administration and Operations for review and approval. In the event such information is discussed verbally or at in-person meetings, documentation of date, time, and summary of the discussion will be documented. This will take effect immediately as the policies are formally updated. Anticipated Completion Date: September 30, 2023

Finding 2022-001 - Controls Over Cash Management (Significant Deficiency) Criteria: According to Title 2 U.S. Code of Federal Regulations (" CFR") Part 200 , paragraph 305, non-federal entities are required to minimize the time that elapses between the transfer of funds from the federal funding source and the disbursement of those funds by the non-federal entity for the program's intended purposes. Condition and Context: As a part of our testing over cash management of funds received from the federal funding source, we examined information showing the dates on which five program-related disbursement of federal funds were received by the Corporation , and we compared those dates to the dates when the Corporation remitted the amounts for the purposes of covering payroll expenses and paying its various contractors. We noted one draw for $1,184,367 that was received from the federal funding source with no payments made to the contractors for which the funds had been appropriated. This resulted in a period of 16 days between receipt of the federal funds and the corresponding payments to the contractors. We also noted one of the five draws tested were for an incorrect amount. The Corporation submitted a draw for $29,997 in error. The overdrawn funds were repaid to the federal funding source. The Corporation prepared a schedule of draws made during 2022 and it was noted that the Corporation drew or repaid an incorrect amount in four months of the year, of which some were corrected in the next period. Effect: As a result of these matters , the Corporation essentially borrowed money from the federal government and potentially delayed payment to vendors. Cause: The condition was caused by an oversight by management that resulted in invoices not being processed for payment unt i l well after the cash had been drawn by the Corporation and resulted in draws to processed for an incorrect amount. Questioned Costs: From our sample tests , the Corporation overdrew $29,997 for the month of May 2022. Recommendation : We recommend that management designate a specific individual to be responsible for monitoring the receipt of federal funds on a daily basis . This person should be tasked with ensuring that funds that have been transferred from the federal funding source are disbursed to the intended contractors within a short period following receipt of these funds and ensuring that the correct draw amounts are submitted. We also in compliance with Federal statutes, regulations and terms and conditions of the Federal award. The Corporation should have controls in place to document that salaries and overtime paid with federal funds were allowable. Timecards supporting hours worked should be approved and pay rates reviewed. Condition and Context: A summary of allowable charges for the grant was prepared for submission. Differences were noted when comparing the summary to timecards. Within the sample of 45, we noted that 31 timecards did not have a documented review. From the sample, we noted that the pay advice form, which reflects pay rate changes, for 2 employees did not indicate signature by an approver and only indicated the requestor's signature. The employees' new pay rate as indicated on the pay advice form was reflected in the payroll expenditure. Additionally, within the sample of 45, we noted 1 employee that did not have a pay advice form or contract to support the pay rate. We noted the following control items: ? 31 out of 45 timecards tested did not have documented review. ? 2 out of 45 employees tested did not have pay advice forms signed by both the requestor and reviewer. Only the requestor signed the form. ? 1 out of 45 employees tested did not have a pay advice form or other supporting documentation for the pay rate. Effect: Payroll expenditures could be inaccurately charged to the federal grant. Cause: The lack of documented timecard and pay rate approval were an oversight. Questioned Costs: None Recommendation: We recommend the Corporation maintain documented approval of all timecards and pay rate increases. Views of Responsible Officials and Planned Corrective Actions: The Transportation Department provides a spreadsheet that details time operators work by route. This process is used to align FTA funding streams with routes driven. The spreadsheet is kept by the Transportation Manager and reviewed by the Director of Transportation. These two positions approve time prior to submitting it for processing. GPTC is engaging its current payroll provider to assist in finding a technological solution to capturing start and end times of each operator. Until we can get this technical solution, an approval form will be submitted by the Transportation Department along with the allocation spreadsheet. As stated above, GPTC experienced a lot of turnover and personnel changes - the Human Resource Department had many. Pay advices are managed by this department. Our recommend that management prepare a schedule of all claims to determine whether there are additional amounts that have been overclaimed. Views of Responsible Officials and Planned Corrective Actions: In 2022, GPTC experienced a lot of turnover and personnel changes in multiple areas. In reassigning responsibilities, the Finance Department was designated as the area to handle FTA fund requests in June 2023. Absorption of these responsibilities required them to get an understanding of the process, formulate procedures for drawdowns, and develop a method for monitoring these dollars. The first drawdowns by the new team occurred in August 2023. FTA dollars are a major source of funding, so managing this process is highly important. GPTC has implemented a review process, as required by the FTA; and developed a spreadsheet for formulating amounts to be drawn. Iniquities in the spreadsheet were remedied in September 2023, and future processing has been good. GPTC realizes that FTA grants are reimbursable. The process requires prepayment of expenses, proof of payment, and reclamation of the FTA's portion of expended funds. So, future funds will be disbursed in a timely fashion. Large dollar amounts that require FTA funding for payment will be disbursed within three days, as required.

2022-002: Internal Control Over Financial Reporting and Compliance with Allowable Costs and Cash Management U.S. Department of Health and Human Services, pass-through State of Tennessee Department of Health - Immunization Cooperative Agreements (ALN COVID-93.268) Management?s Response: We concur. View of Responsible Officials and Corrective Action: The CEO and the Project Manager have created a tracking document to closely monitor the assessment completed and accounted for within the requested reimbursement. The Controller will review the assessment tracker to account for only those completed assessments in 2022-year end financials. Remaining assessments will be accounted for 2023 financials. Anticipated Completion Date: With new accounting software being implemented on October 1, 2023, the correction to this accounting of assessments will be correctly attributed by November 1, 2023.

See corrective action plan

See corrective action plan

1347 Morris Avenue Corporation 290 Lenox, 3rd Floor New York, NY 10027 AUDITEE?S CORRECTIVE ACTION PLAN Name and Number of Project 1347 Morris Avenue Corporation, FHA Project Number 012-HD086 Auditor/Audit Firm PKF O?Connor Davies LLP Audit Period June 30, 2022 Finding 2022-001 ? Timely Deposit of Surplus Cash A. Comments on Finding and Recommendations Recommendation ? We recommend that management ensures the surplus cash deposit is done timely in the future. B. Actions Taken or Planned Auditee agrees with this finding. Our policy has been to make surplus cash deposits after the final audit has been issued. Going forward our focus will be to work with the auditor and owner to get the audits finalized earlier so adequate time is left for the deposits to be made. In instances where the final is not going to be issued and allow enough time, the deposit will be made based on the reviewed draft. C. Status of Corrective Action on Prior Findings No prior findings. Ezra Mill, CFO

Program: Low Rent Public Housing AL Number: 14.850 Finding Number: 2022-001 Audit Finding (Copied & Pasted Directly from Auditor?s Report): Condition: During our audit, the Authority transferred PHA cash and charged asset management fees in AMP 2 and AMP 3 in excess of the excess cash amount from the 2021 audited numbers. Context: AMP 4 and AMP 10 have issues cash flowing and rely on the other AMPS to transfer excess cash every year. In 2021, the other AMPs had less excess cash, so were unable to subsidize AMP 4 and AMP 10 like normal. The Authority did not detect the cash flow issue until after the fiscal year ended. Resulting in noncompliance with the program's rules Cause: Controls were not followed to ensure fungibility rules between each project were followed Criteria: After subsidy (operating) is calculated at a project level, operating subsidy can be transferred as the PHA determines during the PHA's fiscal year to another ACC project(s) if a project's financial information, as described more fully in 240 CFR ? 990.280, produces excess cash flow, and only in the amount up to those excess cash flows. 240 CFR ? 990.205. Corrective Action to Be Taken: Executive Director, Holly Girdwood, is responsible to train/teach the Comptroller, Tara Sheffler, to perform monthly reconciliations to ensure fungibility is properly maintained. This should be completed prior to year-end December 31, 2023. In response to the context, it was our understanding that we could charge asset management fees to all AMPS due to COVID guidelines. Contact Responsible for Corrective Action: Tara Sheffler Comptroller PO Box 988 481 Neshannock Avenue New Castle, PA 16103 724-656-5100 ext. 5100 tsheffler@lawrencecountyha.com

2020-01: Segregation of Duties Name of contact person: Katie Sponberger, Executive Director Corrective Action: Duties and functions will be reviewed to determine where segregation needs to occur. The duties will be separated as much as possible and alternative controls will be implemented to compensate for lack of segregation. The costs of segregating certain duties exceeds the benefit and therefore, nonfinancial employees will be trained to provide some assistance in these areas. Proposed completion date: The Board will implement the above procedure immediately.

Finding 2022-001 PROGRAM INCOME ? CFD #93.224 (Significant Deficiency in Internal Control over Compliance) Response: Corrective Action Plan The Operation Department will conduct a verification of the sliding fee scale. In their internal monthly Sliding Fee Discount audit process, the Site Manager is to review and verify each patient application, to the current Federal Poverty Level, to ensure patient is receiving the correct discount. Attached is a copy of policy and procedure for this corrective action plan.

Recommendation: Training of staff should be performed to bring the staff up to date with the implementation of all residual receipts compliance requirements. Action Taken: The Organization will request approval from HUD to pay back the excess residual receipt balance.

Findings Related to the Financial Statements Reported in Accordance with Government Auditing Standards Finding Number: 2022-001 ? Internal Control over Financial Close and Reporting Responsible Persons: Business Manager, Angelita Clitso Anticipated Completion Date: July 2023 Planned Corrective Action: The school has had turnover in the Business Office and in administrative positions. The business office will correct and reconcile all accounts timely.

Finding: 2022-5 Name of contact person: Renae Alston Corrective Action: Employees will be provided a refresher training on documentation of time sheets. Supervisors will be provided training on the review and reconciliation of data between the timesheet and the daysheet. Proposed Completion Date: March 31, 2023

2022-101 ? Reporting (Significant Deficiency, Compliance Finding) Federal Funding Agency: U.S. Department of Housing and Urban Development; U.S. Department of Treasury Pass Through Agency: Arizona Department of Economic Security and Central Arizona Shelter Services; Maricopa County, Arizona Title: Emergency Solutions Grant Program; Coronavirus State and Local Fiscal Recovery Funds. Assistance Listing #: 14.231; 21.027 Award Year: July 1, 2021 through June 30, 2022 Questioned Costs: N/A Person Responsible: Petrona Zickgraf, Controller, St Joseph the Worker Estimated Completion Date: 05/31/2023 Planned Corrective Action: We have established policies and procedures by which expenses being charged to each federal award are now summarized on an ongoing basis, to general ledger accounts in our accounting system so that at all costs that were charged to each award can be easily determined.

Finding 2022-002 Late Reporting and Noncompliance with Reporting Requirements Name of Contact Person: Leslie Young Corrective Action Plan: The district business office has had significant staffing transitions within the last year and was without a business manager for six months, despite a continual search for qualified applicants. It was identified that the district did not provide one quarterly reimbursement request to the State of Alaska in a timely manner during this period. The district business office is now fully staffed, with new staff hired in August, and is currently addressing this matter. Staff are being trained to support timely submission of quarterly reporting. Proposed Completion Date: 6/30/2023

Corrective Action Plan February 16, 2023 Cognizant or Oversight Agency for Audit Independence Community College respectfully submits the following corrective action plan for the year ended June 30, 2022. Name and address of independent public accounting firm: Jarred, Gilmore & Phillips, PA, P.O. Box 779, 1815 S Santa Fe, Chanute, Kansas 66720. Audit period: Year ended June 30, 2022. The findings from the February 16, 2023 schedule of findings and questioned costs are discussed below. The findings are numbered consistently with the numbers assigned in the schedule. Finding: 2022-001 ? Improper Classification of Transactions Condition: Reconciliations of most balance sheet accounts found transactions that were improperly classified and/or not recorded at all. These balance sheet account reconciliations resulted in material amounts of general ledger adjustments posted after year end and through the date of the audit report. Recommendation: Additional training for staff is needed in the area of financial statement preparation and use of the general ledger software. Views of responsible officials: We are in agreement and the proper training will be added. Policies will also be updated to include additional detail & steps to assure that misclassifications can be traced and reclassified in a timely manner, along with assuring reconciliation of all balance sheet accounts can properly occur monthly. Finding: 2022-002 ? Reporting Condition: During our testing of financial reports to the grantor, it was determined a breakdown in internal controls occurred, because staff did not keep support for amounts reported to grantors from the accounting system. Staff tried to re-create the reports withthe accounting system and amounts were materially different than originally reported to the grantor. Recommendation: Additional training for staff is needed in the area of internal control over reporting. All reports filed should be thoroughly reviewed and approved before issuance. This review would include tying amounts reported to attached support from the accounting system. Views of responsible officials: We are in agreement and policies will be updated to include the proper internal controls are in place. It will also be required that all supporting GL documentation be included for all reporting aspects for Grants from the draws to annual reports. If the Oversight Agency for Audit has questions regarding this plan, please call Jonathan Sadhoo, Vice President for Administration & Finance, at (620) 332-5412. Sincerely, Independence Community College Independence Community College -

CORRECTIVE ACTION PLAN YEAR ENDED JUNE 30, 2022 (Unaudited) CORRECTIVE ACTION ? FINDING 2022-005 ? TIMELY DRAW DOWN GRANT REIMBURSEMENTS Anticipated Date of Completion: April 1, 2023 Name of Contact Person: Robin Vail, Business Manager Corrective Action Plan: Expenditure reports and cash requests are being processed to catch up. Provide more training for central office staff so they can take on more tasks.

May 31, 2023 Finding 2022-001: Cash Management ? Disbursement U.S. Department of Education ? Education Stabilization Fund ALN 84.425F COVID-19 Institutional Portion Criteria: Non-federal entities must minimize the time elapsing between the transfer of funds from the US Treasury or pass-through entity and disbursement by the non-federal entity for direct program or project costs and the proportionate share of allowable indirect costs, whether the payment is made by electronic funds transfer, or issuance or redemption of checks, warrants, or payment by other means (2 CFR section 200.305(b)). Condition: Management implemented a financial management system that meets the specified standards for fund control and accountability, but the system failed to ensure disbursement of funds within the required timeframe. Questioned Costs: None noted. Repeat Finding: This is not a repeat finding. Cause: Management did not accurately identify the required timeframe of disbursement for funds received under the Institutional Portion subprogram. A mitigating factor is the uniqueness of the Institutional Portion subprogram. Effect: Institutional Portion funds used to defray expenses associated with coronavirus was not disbursed within the required 3 calendar days of the drawdown from ED?s G5 grants system. Planned Corrective Action Management concurs with the finding. Since the program is not applicable to the organization after the issuance date of the financial statements, no corrective action is necessary. Responsible person: Sholom Goldstein, Executive Director Completed date: May 31, 2023

Finding ref number: 2022-002 Finding caption: The District did not have adequate internal controls for ensuring compliance with allowable activities and costs, and restricted purpose requirements. Name, address, and telephone of District contact person: Joanne Klein 516 176th Street E. Spanaway, WA 98387-8399 Corrective action the auditee plans to take in response to the finding: The District does not concur with the finding or questioned costs. The district had every intention to provide these iPads to the preschool students who were not in the district technology plan. However, the pandemic caused many distribution delays. The decision was made to provide these students with older surplus iPads. Since the iPads shipment was expected after the students returned to school. The District will work with the FCC to resolve this finding. District does not have any other Emergency Connectivity Grants. Anticipated date to complete the corrective action: 11/1/2023

Finding Number: 2022-005 ? Approval Of Expense Reimbursement Submittals Corrective Action Plan: All expense reimbursements should have approval in writing. The findings were at a time when Academica NV was shorthanded, and since all open positions have been filled. Grant managers send a request for approval of a reimbursement request to schools, once ready. Approvals are now received in writing, via email, prior to any reimbursements being submitted. Personnel Responsible for Corrective Action: Nachum Golodner, Academica Director of Accounting Anticipated Completion Date: June 30, 2023

Sharon Armijo Clerk ? PO Box 197 (575) 533-6400 Joyce Laney Treasurer ? PO Box 407 (575) 533-6384 Lillie Laney Assessor ? PO Box 416 (575) 533-6577 Keith Hughes Sheriff ? PO Box 467 (575) 533-6222 Lucinda Howell Probate Judge 100 Main St. Reserve, New Mexico 87830 Buster F. Green Commissioner District No. 1 Audrey H. McQueen Commissioner District No. 2 Haydn Forward Commissioner District No. 3 Commission Office PO Box 507 ? (575) 533-6423 FAX (575) 533-6433 Loren Cushman County Manager 2022-001 (2018-003) Procurement of Goods and Services (Significant Deficiency) Condition ? During our test work of a sample of 35 transactions we noted the following: County not following disbursements policy and procedures: ? No PO, PO not attached (6 of 35) P cards (6 of 20) ? 1 month ? no documentation of commission review of monthly check register ? Invoice referenced but not attached ? Taxes paid on goods (6 instances) ? 2 instances with no supporting documents Procurement ? (under $20,000) ? 1 No PO ? 1 No supporting documents Procurement ? (> $20,000 & <$60,000) ? 3 instances of only 1 quote ? 2 No supporting documents The County continues to have documentation retention or application issues, no progress from prior year. Corrective Action Plan ? Staff has been proactive in ensuring that purchase orders and invoices are attached to checks and has created a filing system for processed checks. Staff has been proactive in confirming receipts of goods/services, requesting receipts from purchasers, and generally following the NM Procurement Code and County Procurement Policy. Checks are currently being backed up electronically along with purchase orders and other supporting documentation of purchase receipt and justification. Staff has been proactive in obtaining NTTC forms for businesses and utilizing vendors with current state contracts. Staff has created a binder for documenting monthly review of purchases by Commission including maintain original signatures of Commission members. In instances where procurement has found it impossible to obtain three quotations, staff has maintained adequate documentation of best efforts made to obtain said quotes and has conversed with legal to determine that best efforts is adequate in these instances. Responsible Position: Chief Procurement Officer/Accounts Payable Timeline for Correction: Completed Catron County Corrective Action Plan (continued) 2022-002 (2018-006) Local Government Budget Management System (LGBMS) Reporting Incomplete (Other Non-Compliance Repeated with modification. Condition ? The County did not include all budget expenditures in the LGBMS system. The County reported total budgeted expenditures for their original budget in LGBMS of $10,965,065. The actual budget amounts that should have been reported were $11,239,091. The County did not present a revenue budget to the Commission for approval when the Commission approved the expenditure budget. In addition the County did not enter the revenue budget into the budget to actual reporting system to aid in budget monitoring. The County continued to have budget compliance, monitoring and reporting issues in the current year, and therefore no progress has been made regarding budget in the current year. Corrective Action Plan ? We did hire a Finance Director and then almost immediately put him to work as Interim County Manager. A full time County Manager finally started March 22, 2023. The Finance Director?s goal is to have the County?s reporting to the DFA a routine matter ? accurate and on time. Responsible Position: Finance Director Timeline for Correction: June 30, 2024 2022-003 (2018-002) Maintenance of Capital Assets (Material Weakness) Repeated. Condition ? ? Construction In Process is not maintained and lacks a consistent process for adding to the depreciation schedule. ? Depreciation schedule was not updated or calculated for the entire fiscal year. The County digressed in its maintenance of capital asset records and documentation. Corrective Action Plan ? One of the goals of the new Finance Director is a complete review of Catron County?s capital asset records. Responsible Position: Finance Director Timeline for Correction: June 30, 2024 Catron County Corrective Action Plan (continued) 2022-004 Personnel File Maintenance (Significant Deficiency) Statement of Condition ? We tested a sample of 10 Payroll transactions and noted the following: ? Three instances (3 of 10) where the current payrate was not substantiated by a personnel action form. ? One personnel file did not include any current documents ? all documents were for 2017 and prior. ? One personnel file lacked a PERA membership application. Corrective Action Plan ? The County has made available training through NM EDGE where we can learn to improve procedures, and best practices to develop strategies on completing internal controls. Auditors did provide valuable feedback on what was necessary to complete Personnel files and those suggestions will be implemented form there on. Responsible Position: HR/Payroll Clerk Timeline: June 30, 2023 2022-005 Solid Waste Receipts Audit Trail (Significant Deficiency) Statement of Condition ? The Solid Waste department?s receipting system lacks a clear audit trail. ? No schedule indicating receipts by customer, only a total page of deposit amount (5 deposits for dump fees totaling $9,696) ? Cash deposits were co-mingled with other cash deposits for the day and therefore not traceable specifically to solid waste cash receipts (all solid waste receipts ? 10 receipts tested totaling $19,392) ? No receipts are issued for each customer (receipts only issued upon customer request) No copies or records of receipts that were issued were maintained (all solid waste receipts ? 10 receipts tested totaling $19,392) Corrective Action Plan ? 1. Solid Waste Clerk will attach a corresponding customer receipt to all spreadsheets. 2. Treasurer?s Office has reconciled the second issue listed above. 3. Convenience Center Attendants will immediately receipt all customers. Responsible Position: Solid Waste Clerk/Coordinator Timeline: April 30, 2023 2022-006 Travel and Perdiem Procedures and Regulations Not Properly Followed (Other Non-Compliance) Statement of Condition ? We tested a sample of 10 travel transactions and noted the following: ? 5 instances where no travel form (per policy) was attached to approve travel $2730.64. ? 1 instance where mileage rate reimbursed was $.46 per mile rather that $.45 per mile ? total over allowable reimbursement was $1.25. Corrective Action Plan ? New travel forms have been created pursuant to DFA Per Diem rates from Memo dated April 12, 2022. New staff has been proactive in ensuring that travel requests are handled timely and properly. Responsible Position: Accounts Payable Timeline: Completed Catron County Corrective Action Plan (continued) 2022-007 Lack of Maintenance of Grant Documentation (Material Weakness) Statement of Condition ? During our test work of federal award reimbursements and expenditures and New Mexico capital Outlay Appropriations, documentation and supporting invoices and reimbursement requests as well as grant award agreements were not available or present in County records. Reimbursement requests are not timely. County is not following award guidelines to maintain the accounting of grant activity for reimbursement requests, expenditures and supporting documentation. The County has numerous awards that are not managed and status of awards is not current. Corrective Action Plan ? The County hired a Finance Director. Even though he spent most of his first eight months as Interim county Manager, he was able to assemble grant documents and collect grant funds that had been waiting for years to be claimed. As we now also have a full time County Manager, this part of the Finance Director?s job should improve even more. Responsible Position: Financial Director Timeline: June 30, 2023 2022-008 (2020-007) Late Audit Report ? (Other Non-Compliance) Repeated with modification Statement of Condition ? The audit report was submitted to the State Auditor?s Office after the county due date of December 1, 2021. This finding remains essentially the same as prior year. Corrective Action Plan ? We are glad the auditor is taking part of the responsibility here. However, if the County can keep a consistent staff in the Commission Office following proper procedures, the audit will definitely go smoother and quicker. Responsible Position: Finance Director Timeline: June 30, 2024

Views of Responsible Officials and Planned Corrective Actions The timesheets did not reflect the correct hours charged to the program. After discussions with program management, it was discovered that correct communication to staff had not been completed regarding proper program and grant payroll coding for work done on the program. This has been corrected. The Foundation?s contract administrative staff is working more closely with program staff to ensure for each payroll that the time worked on programs is properly reflected on timesheets that are approved by employees and managers. Necessary changes are communicated between program and contract administrative staff to ensure that timesheets reflect work hours properly. Personnel responsible for implementation: Steven Hartman Position of responsible personnel: Associate Director, Contract Accounting Date of Implementation: August 31, 2023