Corrective Action Plans

Finding 384322 (2023-003)

Significant Deficiency 2023

Erikson Institute

IL

Cash Management Student Financial Aid Matching / Level of Effort / Earmarking § 200.303

Finding 2023-003: Cash Management The Institute had three instances of return of funds that resulted in excess cash for Federal Direct Student Loans ranging from $94 to $46,049 during the period of September 19, 2022 through November 29, 2022. In these situations, the excess cash, being less than ...

Finding 2023-003: Cash Management The Institute had three instances of return of funds that resulted in excess cash for Federal Direct Student Loans ranging from $94 to $46,049 during the period of September 19, 2022 through November 29, 2022. In these situations, the excess cash, being less than one percent of total prior year drawdowns, were not returned within a seven day tolerance period. Corrective Action Plan A Student Bursar was hired in November 2022 and onboarding included comprehensive federal funds cash management training with an outside consultant. A review of cash management policies in place was conducted at that time and monitoring procedures and reconciliations were enhanced to eliminate excess cash. Contact Person Christine Frankhauser Controller cfrankhauser@erikson.edu Anticipated Completion Date January 2023

View Audit 297439

Finding 384282 (2023-001)

Material Weakness 2023

Wesley Tower, Inc.

CA

Questioned Costs Cash Management HUD Housing Programs

FINDING NUMBER 2023-001 - Reporting views of responsible officials: The Company will monitor cash balances or monitor the bank ratings. Concur or do not concur with the finding: Concur with the finding Agree or disagree with the auditor recommendations: Agree Completion date: September 30, 2023 Acti...

FINDING NUMBER 2023-001 - Reporting views of responsible officials: The Company will monitor cash balances or monitor the bank ratings. Concur or do not concur with the finding: Concur with the finding Agree or disagree with the auditor recommendations: Agree Completion date: September 30, 2023 Actions take or planned on the finding: The Company will monitor the cash balances. Contact person: James Sweeney

View Audit 297421

Finding 384161 (2023-001)

Significant Deficiency 2023

Rowan-Salisbury Board of Education

NC

Questioned Costs Cash Management § 200.305

As noted in the last fiscal year audit, we incurred the same finding. Immediately after the auditors helped bring the finding to our knowledge, we began procedures to fix and prevent from re-occurring. We began to draw down the actual expenses instead of our budgeted expenses. Our TSL Technical Assi...

As noted in the last fiscal year audit, we incurred the same finding. Immediately after the auditors helped bring the finding to our knowledge, we began procedures to fix and prevent from re-occurring. We began to draw down the actual expenses instead of our budgeted expenses. Our TSL Technical Assistance vendor reconciled all of our incorrect drawdowns and created one final lump sum drawdown to appropriately balance the G5 account. We have since worked closely each month with our RSS payroll department to ensure monthly expenses are correct. If they are incorrect, we make sure they are fixed and accounted for all within the same month.

View Audit 297271 Questioned Costs: $1

Finding 384093 (2023-004)

Significant Deficiency 2023

Cloud County Health Center, Inc.

KS

Special Tests & Provisions Questioned Costs Student Financial Aid § 200.303

Federal Award Finding Finding 2023-004 Federal Agency Name: U.S. Department of Agriculture Program Name: Community Facilities Loans and Grants Cluster Applicable Federal Award Number - Direct Loan and Guaranteed Loan Assistance Listing Number #10.766 Finding Summary: The Medical Center was not in c...

Federal Award Finding Finding 2023-004 Federal Agency Name: U.S. Department of Agriculture Program Name: Community Facilities Loans and Grants Cluster Applicable Federal Award Number - Direct Loan and Guaranteed Loan Assistance Listing Number #10.766 Finding Summary: The Medical Center was not in compliance with the terms of the loan agreements related to the reserve funds. Responsible Individuals: Ron Harrington, CFO Corrective Action Plan: The CFO will create the appropriate reserve accounts, as required under the loan agreements. This item will be discussed with our contact person at USDA to ensure the hospital will be in compliance with the loan agreements and letter of conditions since the closing of the loans in 2022. Additionally, management will implement a control process to enusre the monthly deposits are made as required, until the accounts are fully funded. Anticipated Completion Date: Ongoing

View Audit 297221

Finding 384071 (2023-002)

Significant Deficiency 2023

Peoria Heights Community Unit School District No. 325

IL

Questioned Costs Subrecipient Monitoring Cash Management § 200.305

Condition - The District's expenditure report filed for June 30, 2023 included expenditures in the amount of $27,366 paid in September 2023. These amounts were not reported as committed or obligated. Plan - Grant expenditure reports will be prepared on the cash basis and obligations reported. The l...

Condition - The District's expenditure report filed for June 30, 2023 included expenditures in the amount of $27,366 paid in September 2023. These amounts were not reported as committed or obligated. Plan - Grant expenditure reports will be prepared on the cash basis and obligations reported. The liquidation of the obligations will be reported on subsequent liquidation reports. Anticipated Date of Completion - June 2024. Name of Contact Person - Dr. Eric Heath, Superintendent. Managment Response - There is no disagreement with this finding and management will monitor all future federal reimbursement requests.

View Audit 297179

Finding 384016 (2023-104)

Significant Deficiency 2023

Aroostook Area Agency on Aging INC

ME

Allowable Costs / Cost Principles Cash Management

The payroll registers and postings do match but the agency has historically corrected wages to each grant monthly, resulting in difficulty to test each payroll to grants. Finance and HR attempted to identify a process with the payroll company. Instead, the Agency created a new payroll journal to p...

The payroll registers and postings do match but the agency has historically corrected wages to each grant monthly, resulting in difficulty to test each payroll to grants. Finance and HR attempted to identify a process with the payroll company. Instead, the Agency created a new payroll journal to post payrolls per pay period that match grant budgets. In addition, the Agency updated the Fiscal Procedures manual with this clarification, “Grants are amended throughout the year for revenues. The agency may need to move staff and benefits prior to a grant year end close due to realignment with amendments. The agency should always strive to not have carry forward in smaller state grants and to post expenses such that carry forward is accounted for the in State 8001 contract. This is not to shift costs to grants but to reconcile budget amendments that occur frequently during the year to actual expenditures.” This clarification acknowledges that perpetual changes to grant amounts by the State and Federal government will necessitate changes during the fiscal year.

View Audit 297066

Finding 384015 (2023-102)

None 2023

Aroostook Area Agency on Aging INC

ME

Allowable Costs / Cost Principles Cash Management

Travel reimbursement was immediately corrected, and the agency has implemented the added step that the Finance Director will review and approve all mileage reimbursements for consistency in calculation.

View Audit 297066

Finding 384009 (2023-103)

Significant Deficiency 2023

Aroostook Area Agency on Aging INC

ME

Allowable Costs / Cost Principles Cash Management

The payroll registers and postings do match but the agency has historically corrected wages to each grant monthly, resulting in difficulty to test each payroll to grants. Finance and HR attempted to identify a process with the payroll company. Instead, the Agency created a new payroll journal to p...

The payroll registers and postings do match but the agency has historically corrected wages to each grant monthly, resulting in difficulty to test each payroll to grants. Finance and HR attempted to identify a process with the payroll company. Instead, the Agency created a new payroll journal to post payrolls per pay period that match grant budgets. In addition, the Agency updated the Fiscal Procedures manual with this clarification, “Grants are amended throughout the year for revenues. The agency may need to move staff and benefits prior to a grant year end close due to realignment with amendments. The agency should always strive to not have carry forward in smaller state grants and to post expenses such that carry forward is accounted for the in State 8001 contract. This is not to shift costs to grants but to reconcile budget amendments that occur frequently during the year to actual expenditures.” This clarification acknowledges that perpetual changes to grant amounts by the State and Federal government will necessitate changes during the fiscal year.

View Audit 297066

Finding 384004 (2023-001)

Significant Deficiency 2023

Clarke County Board of Education

GA

Questioned Costs Allowable Costs / Cost Principles Cash Management § 200.303 § 200.305 § 200.307 § 200.403

FA 2023-001 Improve Controls over Expenditures Compliance Requirement: Activities Allowed or Unallowed Allowable Costs/Cost Principle Cash Management Program Income Internal Control Impact: Significant Deficiency Compliance Impact: Nonmaterial Noncompliance Federal Awarding Agency: U.S. Departm...

FA 2023-001 Improve Controls over Expenditures Compliance Requirement: Activities Allowed or Unallowed Allowable Costs/Cost Principle Cash Management Program Income Internal Control Impact: Significant Deficiency Compliance Impact: Nonmaterial Noncompliance Federal Awarding Agency: U.S. Department of Education Pass-Through Entity: Georgia Department of Education Assistance Listing Number and Title: COVID-19 - 84.425U - American Rescue Plan Elementary and Secondary School Emergency Relief Fund Federal Award Number: S425U210012 Questioned Costs: $309,623 Description: The policies and procedures of the School District were insufficient to provide adequate internal controls over expenditures as it relates to the Elementary and Secondary School emergency Relief Fund Program. Corrective Action Plans: No after-school program expenditures have been or will be included int eh ESSER expenditures for FY2024. Estimated Completion Date: July 1, 2024 Contact Person: Chris Griner, Chief Financial Officer Telephone: 706-546-7721 Email: grinerc@clarke.k12.ga.us

View Audit 297005 Questioned Costs: $1

Finding 384001 (2023-001)

Material Weakness 2023

Stuttgart School District

AR

Reporting School Nutrition Programs Questioned Costs

On behalf of Stuttgart School District, please accept this letter as a corrective action plan and response to the Material Weakness finding EDSD00423-001 regarding Child Nutrition and CEP claiming percentage weakness. The individuals responsible for this corrective action plan are: Jessica Millerd;...

On behalf of Stuttgart School District, please accept this letter as a corrective action plan and response to the Material Weakness finding EDSD00423-001 regarding Child Nutrition and CEP claiming percentage weakness. The individuals responsible for this corrective action plan are: Jessica Millerd; Child Nutrition Director, Sharon Mayville; Comptroller, and Jeff McKinney; Superintendent

View Audit 296996 Questioned Costs: $1

Finding 384001 (2023-001)

Material Weakness 2023

Stuttgart School District

AR

Reporting School Nutrition Programs Questioned Costs

The corrective action plan was implemented and resolved on April 27, 2023 and the district will continue to utilize the corrective procedures for Child Nutrition CEP claims.

View Audit 296996 Questioned Costs: $1

Finding 384001 (2023-001)

Material Weakness 2023

Stuttgart School District

AR

Reporting School Nutrition Programs Questioned Costs

Corrective Action Plan: Child Nutrition Director, claim approver and Superintendent have been made aware of the percentage claim requirement and will review all monthly claims going forward to ensure the correct allowable percentage is claimed for all campuses designation as CEP. A spreadsheet with ...

Corrective Action Plan: Child Nutrition Director, claim approver and Superintendent have been made aware of the percentage claim requirement and will review all monthly claims going forward to ensure the correct allowable percentage is claimed for all campuses designation as CEP. A spreadsheet with formulas has been created to verify the monthly claim includes the correct percentage calculations. The data is reviewed by both the Child Nutrition Director and the Comptroller prior to submitting the official monthly claim to the Child Nutrition Unit.

View Audit 296996 Questioned Costs: $1

Finding 384001 (2023-001)

Material Weakness 2023

Stuttgart School District

AR

Reporting School Nutrition Programs Questioned Costs

In addition, incorrect claims for the 2023 fiscal year were modified and corrected monthly forms were submitted to the Child Nutrition Unit before fiscal year 2023 end. Excess reimbursement amounts were also repaid to the Child Nutrition department during the same year.

View Audit 296996 Questioned Costs: $1

Finding 383977 (2023-005)

Material Weakness 2023

School City of East Chicago

IN

Subrecipient Monitoring Internal Control / Segregation of Duties Questioned Costs § 200.302 § 200.303 § 200.328 § 200.329 § 200.334

FINDING 2023-005 Finding Subject:􀀃Title􀀃I􀀃Grants􀀃to􀀃Local􀀃Educational􀀃Agencies􀀃–􀀃Reporting􀀃 Summary of Finding: An􀀃effective􀀃internal􀀃control􀀃system􀀃was􀀃not􀀃in􀀃place􀀃at􀀃the􀀃School􀀃Corporation􀀃to􀀃ensure􀀃compliance􀀃with􀀃 requirements􀀃related􀀃to􀀃the􀀃grant􀀃agreement􀀃and􀀃the􀀃Reporting􀀃requirement.􀀃The􀀃Sc...

FINDING 2023-005 Finding Subject:􀀃Title􀀃I􀀃Grants􀀃to􀀃Local􀀃Educational􀀃Agencies􀀃–􀀃Reporting􀀃 Summary of Finding: An􀀃effective􀀃internal􀀃control􀀃system􀀃was􀀃not􀀃in􀀃place􀀃at􀀃the􀀃School􀀃Corporation􀀃to􀀃ensure􀀃compliance􀀃with􀀃 requirements􀀃related􀀃to􀀃the􀀃grant􀀃agreement􀀃and􀀃the􀀃Reporting􀀃requirement.􀀃The􀀃School􀀃Corporation􀀃did􀀃not􀀃have􀀃 effective􀀃internal􀀃controls􀀃to􀀃ensure􀀃that􀀃reimbursement􀀃requests􀀃or􀀃final􀀃expenditure􀀃reports􀀃were􀀃properly􀀃 supported􀀃with􀀃documentation.􀀃 Contact Person Responsible for Corrective Action: Lela Simmons Contact Phone Number and Email Address: (219) 391- 4100, lesimmons@ecps.org Views of Responsible Officials: We concur with the finding Description of Corrective Action Plan: Internal controls and policies will be put in place to ensure all Title cash request will have three approvals before submitting the request to the State. The Federal clerk will prepare the request, the federal director we do second approval. The CFO will do final approval after review all documentation associated with the cash request. All will sign document. All title state reporting and back up documentation will be reviewed by the CFO and signed. Anticipated Completion Date:􀀃We􀀃anticipate􀀃having􀀃the􀀃above􀀃corrective􀀃action􀀃plan􀀃in􀀃place􀀃by􀀃September 30, 2024.

View Audit 296995 Questioned Costs: $1

Finding 383960 (2023-001)

Material Weakness 2023

Corn Belt Power Cooperative

IA

Allowable Costs / Cost Principles Cash Management Material Weakness § 200.303

Federal Agency Name: Department of Homeland Security & Emergency Management passed through State of Iowa department of Homeland Security and Emergency Management Assistance Listing Number: 97.3036, 4642DRIAP00000501 Program Name: Disaster Grants – Public Assistance Finding Summary: The Cooperative ...

Federal Agency Name: Department of Homeland Security & Emergency Management passed through State of Iowa department of Homeland Security and Emergency Management Assistance Listing Number: 97.3036, 4642DRIAP00000501 Program Name: Disaster Grants – Public Assistance Finding Summary: The Cooperative did not have any formally documented review and approval over the material and transportation costs claimed for reimbursement under the program. Corrective Action Plan: The Cooperative will document the review and approval of expenses for transportation and material that we are already doing. This will include initials and e-mails documenting the review process that was completed. For transportation the person reviewing the transportation logs with the payroll logs will initial the transportation logs. The person tying the transportation logs to the computer system and the vehicle’s actual ending mileage will also initial the transportation logs. For material transactions, a summary of transactions for the month will go to the appropriate department supervisor to sign off on those transactions. The person approving the transaction will depend on the department. Responsible Individuals: Department Supervisors who have inventory, Jaylen Heinz - Accountant, Kari Rubel - Accountant and other accountants. Anticipation Completion date: March 2024

View Audit 296983

Finding 383845 (2023-001)

Material Weakness 2023

Indigenous Peoples Task Force

MN

Cash Management Questioned Costs Material Weakness § 200.302

2023-001: Overspent Grant Federal Departments: Department of Health and Human Services Assistance Listing #: 93.243 Compliance and Internal Controls Material Weakness Category of Finding – Cash Management Name of contact person – Sharon Day, Executive Director Corrective action – IPTF h...

2023-001: Overspent Grant Federal Departments: Department of Health and Human Services Assistance Listing #: 93.243 Compliance and Internal Controls Material Weakness Category of Finding – Cash Management Name of contact person – Sharon Day, Executive Director Corrective action – IPTF hired a new contract accountant in October 2022 and have since implemented processes to ensure accurate internal financial statements are prepared and reviewed by program managers on a monthly basis as required by their written financial policies. Completion date – Management and the Board of Directors implemented the above as of January 2024.

View Audit 296866 Questioned Costs: $1

Finding 383823 (2023-002)

Material Weakness 2023

Metropolitan School District of Washington Township

IN

Subrecipient Monitoring Reporting Allowable Costs / Cost Principles § 200.208 § 200.302 § 200.303 § 200.328

FINDING 2023-002 Finding Subject: Special Education Cluster (IDEA) - Reporting Summary of Finding: Expenditures not agreeing with ledgers Contact Person Responsible for Corrective Action: Phyllis Ritenour Contact Phone Number and Email Address: 317-845-9400 pritenour@msdwt.k12.in.us Views of Respons...

FINDING 2023-002 Finding Subject: Special Education Cluster (IDEA) - Reporting Summary of Finding: Expenditures not agreeing with ledgers Contact Person Responsible for Corrective Action: Phyllis Ritenour Contact Phone Number and Email Address: 317-845-9400 pritenour@msdwt.k12.in.us Views of Responsible Officials: We concur with the finding Description of Corrective Action Plan: The finding was due to amounts that could not be claimed timely for reimbursement because of funds needing to be moved within grant buckets. Per a discussion with the auditors we need to tie the expenses not claimed back to a specific employee/employees or a specific purchase. beginning with our March reimbursements all adjustments to the funds ledger will have backup documents showing what items were omitted from reimbursement because of need for a budget amendment. Anticipated Completion Date: March 2024

View Audit 296858

Finding 383784 (2023-002)

Significant Deficiency 2023

Catholic Community Services of Western Washington

WA

Allowable Costs / Cost Principles Questioned Costs Cash Management § 200.303 § 200.403 § 200.414

Type of Finding: Significant Deficiency in Internal Control over Compliance relating to inadequate documentation and controls in place to ensure costs are reasonable and intended for the program charged. Views of Responsible Officials: Management accepts the finding. Effective internal control over...

Type of Finding: Significant Deficiency in Internal Control over Compliance relating to inadequate documentation and controls in place to ensure costs are reasonable and intended for the program charged. Views of Responsible Officials: Management accepts the finding. Effective internal control over the allocation of indirect costs exceeding the de minimis cost rate of 10%, which can be attributed to a lack of communication and review of the total expenditures being charged to the federal program. Program managers were accidentally invoicing before reconciling adjustments made. More thorough training of staff, along with careful supervisory review of total expenditures being charged to the federal program, and invoicing would likely have prevented this error. Corrective Action: An annual training of all grant accountants is being developed and will cover indirect and allowable costs. In addition, a process for secondary review of all invoices is being developed.

View Audit 296797 Questioned Costs: $1

Finding 383771 (2023-003)

Material Weakness 2023

Catholic Community Services of Western Washington

WA

Allowable Costs / Cost Principles Cash Management Subrecipient Monitoring § 200.303 § 200.329

Type of Finding: Material weakness in internal control over compliance relating to inadequate documentation and controls in place to ensure costs are reasonable and intended for the program charged. Views of Responsible Officials: Management accepts the finding. Effective internal control over the ...

Type of Finding: Material weakness in internal control over compliance relating to inadequate documentation and controls in place to ensure costs are reasonable and intended for the program charged. Views of Responsible Officials: Management accepts the finding. Effective internal control over the documentation of secondary review of financial reports, timely filing, and disclosed demographics contained within the reports, which can be attributed to a lack of documentation of review and controls in place for submission of a report when responsible employee is out of office during the due date. Authorized personnel review was not documented, and a performance report was not filed timely and was filed with incorrect demographics. More thorough training of staff, along with careful supervisory review and documentation of review of report submissions prior to filing would likely have prevented these errors. Corrective action: A process for secondary review of all financial and programmatic reports will be developed in each region.

View Audit 296797

Finding 383736 (2023-003)

Material Weakness 2023

Aromas-San Juan Unified School District

CA

Cash Management Eligibility Reporting

We agree with the auditor’s comments, and the following actions will be taken to ensure all records are maintained for reporting purposes: 1. Implement a point-of-sale system 2. Use the point-of-sale system to track all meals served by student eligibility 3. Reconcile records against claim forms on ...

We agree with the auditor’s comments, and the following actions will be taken to ensure all records are maintained for reporting purposes: 1. Implement a point-of-sale system 2. Use the point-of-sale system to track all meals served by student eligibility 3. Reconcile records against claim forms on a monthly basis as reimbursement claims are submitted to the California Department of Education The above steps have been completed and implemented since January of 2023 and the District maintains that it will continue the actions above to follow Child and Adult Care Food Program, Child Nutrition Cluster guidelines.

View Audit 296753

Finding 383657 (2023-002)

Significant Deficiency 2023

Mount Mary University, Inc.

WI

Cash Management § 200.305

For the Year Ended June 30, 2023 Finding 2023-002 Condition #2: The University withdrew the current year budget amount for one grant for $176,615 before incurring allowable expenses and did not disburse the funds within three days. The University kept the funds in an insured account and used the fun...

For the Year Ended June 30, 2023 Finding 2023-002 Condition #2: The University withdrew the current year budget amount for one grant for $176,615 before incurring allowable expenses and did not disburse the funds within three days. The University kept the funds in an insured account and used the funds on eligible expenses by June 30, 2023. The internal controls over cash management were not operating effectively. Corrective Action Planned: A desk review of ALN 47.076 National Science foundation (NSF) occurred in August 2023 and identified 17.76%, the current year annual budgeted amount, had been drawn down in advance of expenditures incurred and not fully utilized as indicated in 2 CFR 200.305 Federal Payments. MMU has discontinued the practice of drawing down funds in advance based on the budgeted amount for each year of the project (as prior grants allowed). Instead, MMU will draw down funds based on immediate cash requirements each month of the project after expenditures are incurred, reflected in the general ledger system and reviewed by the Principal Investigator (PI)/Co Principal Investigator (Co-PI) and Senior Accountant. The Business Office has implemented a cash management control as follows: Review financial requirements upon grant submission and again when awarded, adjust accounting controls according to grantor requirements, actively participate in monthly review of financial reporting to grantor and document all financial activities as required Name(s) of Contact Person(s) Responsible for Corrective Action: Cheryl Bailey (PI), and Kathleen Glancey (Co-PI) and Nicole Biddle, Senior Director of Finance. Anticipated Completion Date: Grants Manager, Kathleen Glancey, has experience with grant reporting and management systems. Cheryl Bailey (PI) and Kathy Glancey met during the month of September 2023 to create an updated grants management manual that contains policies and procedures to encompass all federal sponsored programs. MMU shared the grants manual with NSF by September 30th, 2023. Immediately upon completion of manual and submission to NSF, monthly meetings commenced to implement financial review of incurred expenses prior to cash draws. The complete action plan was implemented upon the desk review which was 4 months prior to the Single Audit.

View Audit 296692

Finding 383627 (2023-005)

Material Weakness 2023

Southwest School Corporation

IN

Subrecipient Monitoring Internal Control / Segregation of Duties Matching / Level of Effort / Earmarking § 200.302 § 200.303 § 200.328 § 200.329 § 200.334

FINDING 2023-005 Information on the federal program: Subject: Special Education Cluster (IDEA) - Reporting Federal Agency: Department of Education Federal Programs: Special Education Grants to States, Special Education Preschool Grants Assistance Listings Numbers: 84.027, 84.027X, 84.173, 84.173X...

FINDING 2023-005 Information on the federal program: Subject: Special Education Cluster (IDEA) - Reporting Federal Agency: Department of Education Federal Programs: Special Education Grants to States, Special Education Preschool Grants Assistance Listings Numbers: 84.027, 84.027X, 84.173, 84.173X Federal Award Numbers and Years (or Other Identifying Numbers): 19611-022-PN01, 20611-022-PN01, 21611-022-PN01, 22611-022-PN01, 22611-022-ARP, 23611-022-PN01, 20619-022-PN01, 21619-022-PN01, 22619-022-PN01, 22619-022-ARP, 23619-022-PN01 Pass-Through Entity: Indiana Department of Education Compliance Requirement: Reporting Audit Findings: Material Weakness, Qualified Opinion Condition: The School Corporation did not have internal controls in place to ensure that the Cooperative complied with the reporting requirements. The Cooperative had not designed or implemented adequate policies or procedures to determine that requests for reimbursement were submitted accurately and agreed to supporting documentation. There was a documented oversight, review, and approval process in place; however, the Cooperative did not adequately ensure that proper procedures were followed. Context: The School Corporation is a member of the Greene-Sullivan Special Education Cooperative (Cooperative). During fiscal year 2021-2022, the Cooperative operated the special education programs and spent the federal money on behalf of all its members.  As the grant agreements were between the Indiana Department of Education (IDOE) and each member school, the School Corporation was responsible for ensuring and providing oversight of the Cooperative. However, there was inadequate oversight performed by the School Corporation in order to ensure compliance with the Reporting compliance requirement. The School Corporation did not have internal controls in place to ensure that the Cooperative complied with the reporting requirements. The Cooperative had not designed or implemented adequate policies or procedures to determine that requests for reimbursement were submitted accurately and agreed to supporting documentation. There was a documented oversight, review, and approval process in place; however, the Cooperative did not adequately ensure that proper procedures were followed. For fiscal year 2022, 51 Reimbursement Reports were tested. 14 Reimbursement Reports could not be traced to unit ledgers for expenditures, and 21 Reports did not have appropriate supporting documentation. For fiscal year 2023, 23 Reimbursement Reports were tested. Three Reimbursements Report did not agree to supporting documentation, and key line items could not be verified. The lack of internal controls and noncompliance were systemic issues throughout the audit period. Views of Responsible Officials and Planned Corrective Actions: Management agrees with the finding and will take the following corrective action: 1 – Greene Sullivan Special Education Cooperative will implement a procedure that includes the requirement of proper documentation for all reimbursement requests, such as the detailed history report for each request submitted. The Director will then review each request prior to submission. Responsible party and timeline for completion: Chris Stitzle, Superintendent – April 1, 2024

View Audit 296662

Finding 383582 (2023-002)

Significant Deficiency 2023

Central Fulton School District

PA

Questioned Costs Subrecipient Monitoring Cash Management

The finding from Section III — Federal Awards Findings and Questioned Costs Finding 2023-002 — Cash Management and Reporting Condition: The District did not file the required quarterly reports for June 2023 for grant #223-210073 and #225-210073 in a timely man...

The finding from Section III — Federal Awards Findings and Questioned Costs Finding 2023-002 — Cash Management and Reporting Condition: The District did not file the required quarterly reports for June 2023 for grant #223-210073 and #225-210073 in a timely manner within the 10-day requirement. The District did not file the required quarterly report for June 2023 for grant #200-210073. Also, the District did not file the required final expenditure report for grant #200-200073 timely. Views of Responsible Officials and Planned Corrective Actions: The District Business Manager will work with all involved in the process of the Federal Grants filing the expenditure reports quarterly and filing of the final expenditure reports. Procedures will include creating a calendar with the due dates, reporting the expenditures in the accounting software and creating a report with the expenses listed for the month and quarterly. Account numbers have been created according to the PDE accounting manual for the recording of all expenses and revenue for each federal grant. All expenditures will be recorded correctly and in a timely manner. The person responsible for the corrective action plan will be the Business Manager and the anticipated completion date will be June 30, 2024.

View Audit 296626

Finding 383567 (2023-003)

Material Weakness 2023

North West Hendricks School Corporation

IN

Questioned Costs Allowable Costs / Cost Principles Cash Management § 200.303 § 200.305

FINDING 2023-003 Information on the federal program: Subject: Education Stabilization Fund – Advance Draws Federal Agency: Department of Education Federal Program: COVID-19 – Education Stabilization Fund Assistance Listing Number: 84.425D, 84.425U Pass-Through Entity: Indiana Department of Educatio...

FINDING 2023-003 Information on the federal program: Subject: Education Stabilization Fund – Advance Draws Federal Agency: Department of Education Federal Program: COVID-19 – Education Stabilization Fund Assistance Listing Number: 84.425D, 84.425U Pass-Through Entity: Indiana Department of Education Compliance Requirement: Activities Allowed or Unallowed, Allowable Costs- Cost Principles Audit Finding: Material Weakness, Qualified Opinion Condition: The School Corporation requested reimbursement prior to incurring expenditures under federal grant awards. An effective internal control system was not in place at the School Corporation in order to ensure compliance with requirements related to the grant agreement and the Activities Allowed or Unallowed, Allowable Costs- Cost Principles compliance requirements. Context: During testing disbursements charged to ESF grants, we noted advance payments were received during the audit period prior to allowable costs being incurred by the School Corporation impacting the following Education Stabilization Fund grant awards: ● The School Corporation submitted a claim for reimbursement for $43,864 from the ESSER I grant award (84.425D) which was receipted on August 24, 2021. As of August 24, 2021, the School Corporation had incurred $41,674 of grant expenditures. The remaining $2,190 was disbursed on April 12, 2022. ● The School Corporation submitted a claim for reimbursement for $148,822 from the ESSER II grant award (84.425D) which was receipted on July 28, 2021. There were no expenditures incurred as of the date of the reimbursement request. The School Corporation began incurring expenditures after the advance payment, however, as of June 30, 2022, the School Corporation had an unspent cash balance of $24,613 in the ESSER II fund because of the advance payment. The School Corporation did not request any reimbursements for the period of July 1, 2022 through June 30, 2023 and continued to incur expenditures. As of June 30, 2023, the School Corporation had an unspent cash balance of $16,145. FINDING 2023-003 (Continued) ● The School Corporation submitted two claims for reimbursements from the ESSER III grant award (84.425U) during fiscal year 2022. The first claim reimbursement was receipted on November 24, 2021, in the amount of $52,210. The second claim reimbursement request was receipted on June 22, 2022, in the amount of $144,649. The School Corporation had incurred expenditures as of the date of each claim reimbursement requests, however, the amount claimed for reimbursement exceeded expenditures incurred resulting in advance payments being received. As of June 30, 2022, the School Corporation had an unspent cash balance of $88,348 in the ESSER III fund as a result of the advance payment. The School Corporation did not request any claims for reimbursements for the period of July 1, 2022 through June 30, 2023 and continued to incur expenditures. As of June 30, 2023, the School Corporation had an unspent cash balance of $21,842 in the ESSER III fund because of the advance payments. Views of Responsible Officials and Corrective Action Plan: Management agrees with the finding. Going forward the reimbursement will be prepared by the Assistant Superintendent once the funds have been spent and the Corporation Treasurer will review the reimbursement before it is submitted. Responsible Party and Timeline for Completion: The Assistant Superintendent, David Hobaugh, and the Corporation Treasurer, Kristina James, will oversee the corrective action plan and will be implemented immediately.

View Audit 296613 Questioned Costs: $1

Finding 383545 (2023-005)

Material Weakness 2023

Community Schools of Frankfort

IN

School Nutrition Programs Internal Control / Segregation of Duties Matching / Level of Effort / Earmarking § 200.303

FINDING 2023-005 Finding Subject: Child Nutrition Cluster – Reporting; Special Tests and Provisions, Eligibility Summary of Finding: Internal controls were not in place to ensure compliance with requirements related to the grant agreement, specifically related to reporting and eligibility. Contact P...

FINDING 2023-005 Finding Subject: Child Nutrition Cluster – Reporting; Special Tests and Provisions, Eligibility Summary of Finding: Internal controls were not in place to ensure compliance with requirements related to the grant agreement, specifically related to reporting and eligibility. Contact Person Responsible for Corrective Action: Scott Weltz, Amanda Brackett Contact Phone Number and Email Address: 765-654-5585, weltzs@frankfort.k12.in.us, bracketa@frankfort.k12.in.us Views of Responsible Officials: We concur with the finding. Description of Corrective Action Plan: Internal controls will be established and followed to ensure compliance with requirements related to the grant agreement. The Director shall submit the report after the Treasurer reviews and verifies the information in the report. Such measures will prevent future misstatements and provide the proper internal controls. Anticipated Completion Date: Effective immediately and ongoing

View Audit 296610

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