Corrective Action Plans

Finding 48233 (2022-001)

Material Weakness 2022

SD

Reporting Cash Management Material Weakness

Finding: 2022-001 Federal Agency Name: Department of Health and Human Services Program Name: COVID-19 Provider Relief Fund and American Rescue Plan (ARP) Rural Distribution, COVID-19 HRSA Claims Reimbursement for the Uninsured Program and the COVID-19 Coverage Assistance Fund Federal Financial Assis...

Finding: 2022-001 Federal Agency Name: Department of Health and Human Services Program Name: COVID-19 Provider Relief Fund and American Rescue Plan (ARP) Rural Distribution, COVID-19 HRSA Claims Reimbursement for the Uninsured Program and the COVID-19 Coverage Assistance Fund Federal Financial Assistance Listing #: #93.498, 93.461 Finding Summary: Management prepared the schedule of expenditures of federal awards for the year ended June 30, 2022. During testing, the auditors decreased the amount reported for the COVID-19 Provider Relief Fund and American Rescue Plan (ARP) Rural Distribution program (PRF) to the amounts reported within the Department of Health and Human Services (HHS) for Period 2 and Period 3 Special Report. In addition, adjustments were made to decrease the amount reported for the COVID-19 HRSA Claims Reimbursement for the Uninsured Program and the COVID-19 Coverage Assistance Fund (Uninsured Program) to total receipt of monies received from the federal agency during the year ended June 30, 2022. Finding 2022-001 relates solely to which period expenditures are included in the schedule of expenditures of federal awards as compared to periods deposited from the Uninsured Program and to periods in which they are included in Period 2 and Period 3 reports. Responsible Individuals: Austin Willuweit, Vice President of Finance Jen Schmaltz, Corporate Controller Corrective Action Plan: Monument Health will review future schedules of expenditures of federal awards to ensure period reporting consistent with agency filings and deposit periods. Anticipated Completion Date: June 30, 2023

View Audit 40813

Finding 48206 (2022-001)

None 2022

St. Martin De Porres, Inc. (wellington Place Apartments)

TX

Questioned Costs Cash Management HUD Housing Programs

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 property has requested reimbursement from Villa Santa Maria. Completion Date: March 13, 2023

View Audit 41998 Questioned Costs: $1

Finding 48198 (2022-002)

Significant Deficiency 2022

Catholic Charities West Michigan

MI

Subrecipient Monitoring Cash Management Reporting

An Administrative Financial Management Policy is being written to address proper identification, grant relationship, and allowable costs of federal grants. This policy should be in place by June 2023. Catholic Charities West Michigan adopted a cash management policy in February 2023 supporting pro...

An Administrative Financial Management Policy is being written to address proper identification, grant relationship, and allowable costs of federal grants. This policy should be in place by June 2023. Catholic Charities West Michigan adopted a cash management policy in February 2023 supporting procedures to follow to assure timely draw and expenditures of federal dollars.

View Audit 41510

Finding 48074 (2022-002)

Material Weakness 2022

S.g. Noble Garden of Hope

LA

HUD Housing Programs Cash Management

2022-2 Excess Residual Receipts Condition: The Project did not prepare a HUD 9250 to remit excess residual receipts nor did it mail a check or transmit a wire of those funds. Criteria: According to the Consolidated Appropriations Act, 2017, owners subject to a Section 202 or 811 Project Rental Assis...

2022-2 Excess Residual Receipts Condition: The Project did not prepare a HUD 9250 to remit excess residual receipts nor did it mail a check or transmit a wire of those funds. Criteria: According to the Consolidated Appropriations Act, 2017, owners subject to a Section 202 or 811 Project Rental Assistance Contract (PRAC) are required to remit any excess balance in a Residual Receipts account, greater than $250 per unit, to HUD?s Accounting Center upon termination or renewal of the PRAC contract. Effect: Residual receipts balance is $30,133 as of December 31, 2022. The allowable balance is $7,250 ($250 X 29 units), resulting in excess residual receipts of $22,883. Recommendation: I recommend the Property prepare the HUD 9250 requesting to remit excess funds to HUD. Management Response: The property needs to money for improvements at the property. There will be an increase in the costs of future expenses due to inflations. It is not prudent for management to return funds for a property of this age. They do have Replacement Reserve funds but those funds may not be adequate enough to cover what will be needed. We have witnessed substantial increases in Insurance. Additionally, in order to maintain staff we would be looking at increases in Health Insurance, Compensation, and Fringe Benefits. Surplus cash is based on historical costs, it does not take into consideration what may happen in the future.

View Audit 52789

Finding 48073 (2022-001)

Material Weakness 2022

S.g. Noble Garden of Hope

LA

HUD Housing Programs Cash Management

2022-1 Surplus Cash Not Deposited to Residual Receipts Condition: Surplus cash was calculated at $9,619 at December 31, 2021. Criteria: Surplus cash is required to be deposited into the residual receipts account at the end of each fiscal year in which it was calculated. Cause: The cause is undetermi...

2022-1 Surplus Cash Not Deposited to Residual Receipts Condition: Surplus cash was calculated at $9,619 at December 31, 2021. Criteria: Surplus cash is required to be deposited into the residual receipts account at the end of each fiscal year in which it was calculated. Cause: The cause is undeterminable. Effect: The property is not in compliance with HUD rules and regulations as it relates to surplus cash. Recommendation: I recommend management make all required deposits of surplus cash to the residual receipts account in compliance with HUD rules and regulations. Management Response: It is our understanding that the Board of Directors will be requesting a meeting with HUD to discuss the dissolution of this item. Upon meeting with HUD it will be discharged.

View Audit 52789

Finding 48050 (2022-001)

None 2022

Newaygo Public Schools

MI

Cash Management School Nutrition Programs Subrecipient Monitoring

2022-001 Corrective Action Plan-Food Service Fund Balance This finding is caused by the District?s Food Service Fund?s fund balance exceeding the USDA?s threshold of 3 months average expenditures. The District is fully aware of this situation and has a spend down plan in place to help alleviate the...

2022-001 Corrective Action Plan-Food Service Fund Balance This finding is caused by the District?s Food Service Fund?s fund balance exceeding the USDA?s threshold of 3 months average expenditures. The District is fully aware of this situation and has a spend down plan in place to help alleviate the excess fund balance down to a reasonable level and anticipates the completion date for the corrective action plan to be before the end of the 2022-23 fiscal year. The persons responsible for the corrective action are Maryanne Charette, the food service director and Kim Bidwell, the business manager. The anticipated completion date of the corrective action plan is before the end of the 2023 fiscal year. The plan for monitoring adherence is the food service director and business manager will work together to assess where the fund balance is after all of the projects from the spend down plan are completed.

View Audit 44717

Finding 48048 (2022-002)

Significant Deficiency 2022

Sonoma County Community Development Commission

CA

Subrecipient Monitoring Allowable Costs / Cost Principles Cash Management

The Sonoma County Community Development Commission submits the following corrective action plan in response to Finding 2022-002 which states, ?Emergency Solutions Grant Program.? This finding pertains to (24 CFR Section 576.203) which states, ?the recipient must pay each subrecipient for allowable c...

The Sonoma County Community Development Commission submits the following corrective action plan in response to Finding 2022-002 which states, ?Emergency Solutions Grant Program.? This finding pertains to (24 CFR Section 576.203) which states, ?the recipient must pay each subrecipient for allowable costs within 30 days after receiving the subrecipient?s complete payment request.? The Ending Homelessness Team received substantial funding to assist with the Coronavirus Pandemic. Aside from the $7M received from the Federal Government, the Homelessness Team received an additional $10M in funding for State Emergency Solutions Grant (Coronavirus) and the State?s HHAP (Homeless Housing Assistance Prevention) Program, approximately four times the amount the team processed in prior years. Despite the significant increase in funding and program needs across the County during the pandemic, the Homelessness Team?s staffing levels didn?t change. The volume of transactions increased substantially and took additional time to process check request received. In addition, all checks are processed through the County of Sonoma?s accounting functions where they are reviewed, approved, and paid. The County?s Claims Department serves the entire County. During the height of the pandemic, all departments, including the Commission, experienced significant delays in processing times at the County level. Now that the pandemic is nearing an end, the Commission expects the Homelessness Team to return to their regular funding levels which will significantly reduce processing turn times. Sincerely, Dave Kiff Interim Executive Director Sonoma County Community Development Commission

View Audit 41759

Finding 47972 (2022-001)

Significant Deficiency 2022

Ottawa River Estates, Inc. 042-Hd072

OH

HUD Housing Programs Cash Management

Gilmore Jasion Mahler recommended that management make timely required deposits to the residual receipts reserve. Management has completed the required deposit to the residual receipts reserve of $3,901 in September 2022.

View Audit 41227

Finding 47955 (2022-001)

Material Weakness 2022

Adams Central Community Schools

IN

Questioned Costs School Nutrition Programs Cash Management § 200.303

FINDING 2022-001 Information on the federal program: Subject: Child Nutrition Cluster ? Internal Controls Federal Agency: Department of Agriculture Federal Program: School Breakfast Program, National School Lunch Program Assistance Listing Numbers: 10.553, 10.555 Pass-Through Entity: Indiana Departm...

FINDING 2022-001 Information on the federal program: Subject: Child Nutrition Cluster ? Internal Controls Federal Agency: Department of Agriculture Federal Program: School Breakfast Program, National School Lunch Program Assistance Listing Numbers: 10.553, 10.555 Pass-Through Entity: Indiana Department of Education Compliance Requirement: Reporting Audit Finding: Material Weakness Condition: 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 reporting compliance requirement. Context: We noted that for one claim in a sample of four, the school lunch meal count was overclaimed for the month. We noted that in October 2020 the School Corporation had overclaimed lunches by 173 meals. We noted that the sponsor claim reimbursement form had been reviewed, however, the lack of an effective review allowed the error to go unnoticed. Views of Responsible Officials: We concur with the finding. Description of Corrective Action Plan: Going forward, we will have multiple people verifying the data before submission to reimbursement for claims to make sure all meals submitted meet the criteria and eligibility of the Child Nutrition Cluster. Responsible Party and Timeline for Completion: The Food Service Director and the Corporation Treasurer are the responsible parties for this corrective action. This has already been implemented.

View Audit 52770 Questioned Costs: $1

Finding 47898 (2022-001)

Significant Deficiency 2022

United Federation of Teachers Educational Foundation, Inc.

NY

Allowable Costs / Cost Principles Cash Management Eligibility

The Organization agrees with the recommendation. An internal review is currently in process to review and update policies as needed to address the use of federal funds.

View Audit 41434

Finding 47877 (2022-001)

Significant Deficiency 2022

Philadelphia Industrial Development Corporation

PA

Questioned Costs Allowable Costs / Cost Principles Cash Management

Corrective Action Plan and Status of Prior Year Findings Management?s Corrective Action Plan: Individual(s) Responsible for Corrective Action Plan Tysha Dixon Director, Financial Reporting (215) 496-8168 Anticipated Completion Date Completed March 2023 Management?s Corrective Action Plan Manage...

Corrective Action Plan and Status of Prior Year Findings Management?s Corrective Action Plan: Individual(s) Responsible for Corrective Action Plan Tysha Dixon Director, Financial Reporting (215) 496-8168 Anticipated Completion Date Completed March 2023 Management?s Corrective Action Plan Management will continue to rely on its existing controls in place; however, noting that Management will closely monitor loans and loan disbursements where the funding source has changed closely to ensure that disbursements are in accordance with funding terms and approval limits. Management will continue to rely on its existing controls that are in place, including the ongoing communication with the City for any changes in transactions that require their approval. In the circumstances where management is pending a contract amendment from the City for loans requiring additional funding, management will determine if there are unrestricted funding sources to support the change in the approved amount of the loan until the amended contract is finalized. Questioned Program: CFDA #14.218 Community Development Block Grants (CDBG)

View Audit 52296 Questioned Costs: $1

Finding 47871 (2022-001)

Material Weakness 2022

North Slope Borough School District

AK

Subrecipient Monitoring Cash Management Material Weakness

Finding 2022-001 Lack of Internal Controls over Reporting Federal Agency: U.S. Department of Agriculture (passed through the State of Alaska) Federal Program: Child Nutrition Cluster Assistance Listing Number: 10.553/10.555/10.582 Award Year: 2022 Type of Finding Material weakness in internal co...

Finding 2022-001 Lack of Internal Controls over Reporting Federal Agency: U.S. Department of Agriculture (passed through the State of Alaska) Federal Program: Child Nutrition Cluster Assistance Listing Number: 10.553/10.555/10.582 Award Year: 2022 Type of Finding Material weakness in internal control over compliance and noncompliance. Name of Contact Person: Dennis Niedermeyer Corrective Action Plan: The District will make changes in personnel to provide for the accurate entry and reporting of meal counts into the state?s reporting and claims system. The NSBSD will hired an experienced and qualified food service administrator who will review, monitor and verify compliance with accurate reporting of meal counts. Proposed Completion Date: October 28, 2022.

View Audit 52531

Finding 47848 (2022-004)

Significant Deficiency 2022

Wakefield Community School

NE

Cash Management School Nutrition Programs Internal Control / Segregation of Duties

Finding: 2022-004 Name of Contact Person: Matt Farup, Superintendent Corrective Action: Management has contacted the Nebraska Department of Education subsequent to yearend to determine the status of the duplicate claim for reimbursement. The duplicate payment of $19,529 will be returned to the ...

Finding: 2022-004 Name of Contact Person: Matt Farup, Superintendent Corrective Action: Management has contacted the Nebraska Department of Education subsequent to yearend to determine the status of the duplicate claim for reimbursement. The duplicate payment of $19,529 will be returned to the Nebraska Department of Education. We will review processes and implement procedures as necessary to address the issue in the future. Proposed Completion Date: Immediately

View Audit 51186

Finding 47834 (2022-002)

Significant Deficiency 2022

Morrow County

OH

Cash Management Reporting Matching / Level of Effort / Earmarking § 200.208 § 200.305

Finding Number Planned Corrective Action Anticipated Completion Date Responsible Contact Person 2022-001 We will continue to discuss and review the issue with our GAAP converter to make sure adjustments are properly made to the financial statements. May 31, 2023 County Auditor 2022-002 We ...

Finding Number Planned Corrective Action Anticipated Completion Date Responsible Contact Person 2022-001 We will continue to discuss and review the issue with our GAAP converter to make sure adjustments are properly made to the financial statements. May 31, 2023 County Auditor 2022-002 We will implement procedures to ensure all quarterly reports are submitted timely under this grant. December 31, 2023 Director of Morrow County Job and Family Services and Morrow County Area Transit

View Audit 46816

Finding 47825 (2022-001)

Material Weakness 2022

Lancaster City School District

OH

Subrecipient Monitoring Matching / Level of Effort / Earmarking Special Tests & Provisions

CORRECTIVE ACTION PLAN 2 CFR ? 200.511(c) JUNE 30, 2022 Finding Number: 2022-001 Planned Corrective Action: In the summer of 2022, during a Monitoring Review performed by ODE of ESSER II funds, the District became aware of the specific requirements/documentation necessary for contracts let with fed...

CORRECTIVE ACTION PLAN 2 CFR ? 200.511(c) JUNE 30, 2022 Finding Number: 2022-001 Planned Corrective Action: In the summer of 2022, during a Monitoring Review performed by ODE of ESSER II funds, the District became aware of the specific requirements/documentation necessary for contracts let with federal ESSER funds. School Districts are usually not required to pay prevailing wages (state/local funds). The District had not used federal funds for construction in the past and was unaware of the requirement. Due to using an architect firm for the HVAC and window projects that were familiar with the requirements, the District had paid prevailing wage and had the required Davis-Bacon documentation for two of the three projects spent out of ESSER funds. The remaining project was in the amount of $46,870 for Locker Room Floor Renovations at the High School. The District was not aware of the Davis-Bacon requirements when the Business Manager originally contacted Kiefer in 2020 about the rubber flooring (no guidance was available). Due to COVID and delays in materials, the project was pushed back and this requirement was not reconsidered. District Administration has been made aware of the requirements using Federal ESSER funds going forward. In addition, the District policy (DJF) regarding purchasing procedures, that did not specifically include Davis-Bacon language, was updated to include Davis-Bacon requirements (Board approved 9/27/22). Further, the District intends to closely follow internal controls pertaining to federal grant management in order to prevent future issues as described in Finding 2022-001. Anticipated Completion Date: 09/27/22 Responsible Contact Person: Julie Taylor, Treasurer

View Audit 41547

Finding 47817 (2022-046)

Significant Deficiency 2022

State of Oregon

OR

Cash Management

2022-046 Oregon Health Authority Ensure cash draws are made only for immediate cash needs Federal Awarding Agency: U.S. Department of Health and Human Services Assistance Listing Number and Name: 93.959 Block Grants for Prevention and Treatment of Substance Abuse Federal Award Numbers and Years:...

2022-046 Oregon Health Authority Ensure cash draws are made only for immediate cash needs Federal Awarding Agency: U.S. Department of Health and Human Services Assistance Listing Number and Name: 93.959 Block Grants for Prevention and Treatment of Substance Abuse Federal Award Numbers and Years: 6B08TI083472, 2021 Compliance Requirement: Cash Management Type of Finding: Significant Deficiency; Noncompliance Prior Year Finding: N/A Questioned Costs: N/A Criteria: 31 CFR 205.33 The Substance Abuse Block Grant is subject to federal cash management requirements. Federal regulations require the state minimize the time between the drawdown and disbursement of federal funds. The department?s normal draw procedure for the block grant is designed to request federal funds on a reimbursement basis. The amount to be drawn is calculated based on a comparison between previously drawn revenue amounts and program expenditures at the time of the draw. During our testing of a sample of three of the 15 cash draws performed during state fiscal year 2022, we identified an error in the calculation of a draw performed in April 2022 for the 2021 award. The process used to identify program revenues and expenditures for the draw calculation was incorrectly updated when the department transitioned to a new data analysis tool. As a result, the April 2022 draw requested $1 million in federal funds in excess of actual expenditures. The error in the query was not identified by the department through the end of the fiscal year. The total drawn on the award at the end of state fiscal year 2022 was in excess of expenditures by $847 thousand. Although the 2021 award was drawn in excess of expenditures at times after April 2022, the total revenues and expenditures were balanced at the close out of the award in December 2022. Additionally, according to Federal regulations no interest liability is incurred even though the draws were in excess of the immediate cash needs of operating the program. We recommend management ensure controls over the draw process are designed and implemented to review and identify calculation errors. MANAGEMENT RESPONSE: We agree with this recommendation. This was a criteria filter error in the accountant?s data query as developed in the transition from one query tool to another. This criteria filter has been corrected and the data query is now operating correctly. The referenced grant is currently in balance, revenue is balanced to expenditures. The reconciliation, which would have identified this anomaly, was delayed for this quarter. In the future, a full reconciliation to the general ledger system of record will occur quarterly to ensure this is not repeated. Anticipated Completion Date: November 30, 2023 Contact: Julie Strauss, Accounting Manager

View Audit 45093

Finding 47801 (2022-034)

Significant Deficiency 2022

State of Oregon

OR

Cash Management § 200.305 § 200.508

2022-034 Oregon Housing and Community Services Ensure review of subrecipient requests for funds verifies immediate cash needs are supported Federal Awarding Agency: U.S. Department of Health and Human Services, Administration for Children and Families Assistance Listing Number and Name: 93.568 Low...

2022-034 Oregon Housing and Community Services Ensure review of subrecipient requests for funds verifies immediate cash needs are supported Federal Awarding Agency: U.S. Department of Health and Human Services, Administration for Children and Families Assistance Listing Number and Name: 93.568 Low-Income Home Energy Assistance Program 93.568 Low-Income Home Energy Assistance Program (COVID-19) Federal Award Numbers and Years: 2001ORE5C3, 2020 (COVID-19); 2102ORLIEA, 2021; 2102ORE5C6, 2021 (COVID-19); 2202ORLIEA, 2022 Compliance Requirement: Cash Management Type of Finding: Significant Deficiency; Noncompliance Prior Year Finding: N/A Questioned Costs: N/A Criteria: 2 CFR ? 200.305(b), (b)(1); 2 CFR ? 200.508 Federal regulations require that auditees maintain documentation as needed for the performance of audit procedures related to the Single Audit. Additionally, regulations require payment advances should be limited to the minimum amounts needed and be timed to be in accordance with the actual, immediate cash requirements of the subrecipient for carrying out the approved program. We reviewed 60 sample cash draws and were unable to obtain adequate supporting documentation for 4 subrecipient requests for reimbursement/advances demonstrating they were appropriate and for immediate cash needs. We also identified an advance payment for which there was not an adequate explanation indicating why an advance was needed. These 5 exceptions totaled $124,304 in expenditures. Department management cited a breakdown in control process and communicated their intention to train relevant staff to ensure adequate support is obtained. Without adequate verification of cash needs, the department could be sending funds to subrecipients that are not for a reimbursement of expenditures or immediate cash needs. We recommend department management strengthen internal controls to ensure support for subrecipient requests for funds adequately documents they are appropriate and for immediate cash needs. MANAGEMENT RESPONSE: We agree with this recommendation. Strong internal controls exist and costs were eventually substantiated and allowable, however OHCS had significant staff turnover and newer staff processing these advance requests did not gather the level of detail required by OHCS to substantiate draws in a timely manner. Training has been completed for FY23. Anticipated Completion Date: June 30, 2023 Contact: Beth Brown, Accounting Manager

View Audit 45093

Finding 47789 (2022-051)

Significant Deficiency 2022

State of Oregon

OR

Questioned Costs Cash Management Significant Deficiency § 200.302

2022-051 Oregon Health Authority Correct expenditures charged to the incorrect program Federal Awarding Agency: U.S. Department of Health and Human Services Assistance Listing Number and Name: 93.323 Epidemiology and Laboratory Capacity for Infectious Diseases (COVID-19) Federal Award Numbers and ...

2022-051 Oregon Health Authority Correct expenditures charged to the incorrect program Federal Awarding Agency: U.S. Department of Health and Human Services Assistance Listing Number and Name: 93.323 Epidemiology and Laboratory Capacity for Infectious Diseases (COVID-19) Federal Award Numbers and Years: 6 NU50CK000541 (COVID-19) Compliance Requirements: Activities Allowed or Unallowed Type of Finding: Significant Deficiency, Noncompliance Prior Year Finding: N/A Questioned Costs: $356,050 (COVID-19) Criteria: 2 CFR 200.302 To address the COVID-19 pandemic, the Center for Disease Control (CDC) awarded the Oregon Health Authority (department) over $495 million in additional funding beyond the normal funding levels for the Epidemiology and Laboratory Capacity for Infectious Diseases (ELC) program. The funding was awarded for specific purposes such as enhancing detection, reopening schools, and enhancing detection expansion. The purposes of these awards generally do not allow for expenditures directly related to operating the COVID-19 vaccine clinics. In our testing, we identified two payments totaling $356,050 relating to emergency medical technicians attending vaccine clinics to assist if those receiving the vaccine had adverse reactions and required medical attention. Per department management, the transactions should have been charged to a different grant provided by the Federal Emergency Management Agency (FEMA). The error was caused by incorrect account coding when the invoice was processed. Other transactions under this contract were properly charged to the FEMA grant. We recommend management correct the accounting error and ensure the expenditures are charged to the correct programs. We also recommend the department determine if there are additional questioned costs relating to the advanced cash draw as the federal programs have different timing for federal reimbursements. MANAGEMENT RESPONSE: We agree with this recommendation. Corrective action plan: ? Adjust the two identified payments charged to the grant in error ? Adjust the erroneous charges to the Federal Emergency Management Agency (FEMA) grant ? Complete internal audit of expenditures and adjust any non-grant compliant expenditures out of this grant prior to federal financial reporting and close-out. Anticipated Completion Date: June 30, 2023 Contact: Kim Riddell, Program Support Coordinator and Jeff Cartwright, ACDP Lead Fiscal Analyst

View Audit 45093 Questioned Costs: $1

Finding 47785 (2022-049)

Significant Deficiency 2022

State of Oregon

OR

Questioned Costs Allowable Costs / Cost Principles Cash Management § 200.403

2022-049 Oregon Health Authority Return overdraw of reclassified FEMA expenditures Federal Awarding Agency: U.S. Department of Health and Human Services Assistance Listing Number and Name: 93.268 Immunization Cooperative Agreements (COVID-19); 93.323 Epidemiology and Laboratory Capacity for Infe...

2022-049 Oregon Health Authority Return overdraw of reclassified FEMA expenditures Federal Awarding Agency: U.S. Department of Health and Human Services Assistance Listing Number and Name: 93.268 Immunization Cooperative Agreements (COVID-19); 93.323 Epidemiology and Laboratory Capacity for Infectious Diseases (COVID-19) Federal Award Numbers and Years: 93.268: 5 NH23IP922626 (COVID-19); 93.268: 6 NH23IP922626 (COVID-19); 93.323: 6 NU50CK000541 (COVID-19) Compliance Requirement: Activities Allowed or Unallowed Type of Finding: Significant Deficiency, Noncompliance Prior Year Finding: N/A Questioned Costs: 93.268 - $36,783 (known) (COVID-19) 93.323 - $73,333 (known) (COVID-19) Criteria: 2 CFR 200.403 During the COVID-19 pandemic, the Oregon Health Authority (department) spent money from Federal Emergency Management Agency (FEMA) awards to address needs in addressing the pandemic. Due to delays in receiving federal reimbursement for the expenditures, the department reclassified the expenditures to other programs where reimbursements would occur timelier. In our testing of Activities Allowed or Unallowed, we reviewed two individually significant items in the accounting system reclassifying 398 and 914 individual expenditures from the FEMA grants to the Immunization Cooperative Agreements program and Epidemiology and Laboratory Capacity program, respectively. Based upon the account coding of the original transactions, all of the reclassifications were allowable and consistent with program requirements. However, we found several transactions were reclassified twice, resulting in an excess of $36,783 charged to the Immunization program and $73,333 charged to the Epidemiology program. The reclassifications were completed in two batches and the managerial review of the reclassifying transactions failed to detect some transactions were included in both batches. We recommend department management correct the entries and reimburse excess cash drawn to the federal agency for unallowable costs. We also recommend department management revise the review procedures to verify that the same expenditure transactions are not duplicated in multiple batches. MANAGEMENT RESPONSE: We agree with this recommendation. Corrective action plan: ? The agency has reviewed the questioned costs and has corrected the entries with BTCL7084 and reimbursed the federal programs. ? The department has regular processes to review for duplicate adjusting entries. However, this process was missed for this entry. ? Department management will work with department staff to reinforce their understanding of the need to follow these processes to ensure transactions are not adjusted more than once. Anticipated Completion Date: June 1, 2023 Contact: Nichole Petersen, Division Liaison ? PH/ HP&A/ OEBB/ PEBB

View Audit 45093 Questioned Costs: $1

Finding 47756 (2022-003)

Material Weakness 2022

Union Township School Corporation

IN

School Nutrition Programs Cash Management Material Weakness § 200.303

FINDING 2022-003 (Auditor Assigned Reference Number) Contact Person Responsible for Corrective Action: Philip McKelvey Contact Phone Number: 219-759-2531 Views of Responsible Official: we concur with the finding. Description of Corrective Action Plan: Reimbursement reports and claims will be signed ...

FINDING 2022-003 (Auditor Assigned Reference Number) Contact Person Responsible for Corrective Action: Philip McKelvey Contact Phone Number: 219-759-2531 Views of Responsible Official: we concur with the finding. Description of Corrective Action Plan: Reimbursement reports and claims will be signed off on between the submitter and the Food Service Consultant or Kitchen Manager(s) in order to ensure accuracy. Anticipated Completion Date: January 23, 2023.

View Audit 41100

Finding 47749 (2022-004)

Material Weakness 2022

Liberty-Perry Community School Corporation

IN

School Nutrition Programs Subrecipient Monitoring Cash Management § 200.303

FINDING:2022-004 Contact Person Responsible for Corrective Action: Brenda Layne, Food Service Director Contact Phone Number: 765-289-7323 Views of Responsible Official: We concur with the findings Description of Corrective Action Plan: The Corporation Treasure and I discussed this matter and we will...

FINDING:2022-004 Contact Person Responsible for Corrective Action: Brenda Layne, Food Service Director Contact Phone Number: 765-289-7323 Views of Responsible Official: We concur with the findings Description of Corrective Action Plan: The Corporation Treasure and I discussed this matter and we will be more mindful in the future to get the reimbursement claims receipted in a timely manner. Anticipated Completion Date: February 2023

View Audit 54302

Finding 47742 (2022-003)

Material Weakness 2022

Three Rivers Community Schools

MI

Internal Control / Segregation of Duties Allowable Costs / Cost Principles Matching / Level of Effort / Earmarking

Finding Number: 2022-003 Condition: During payroll expenditure testing of salaried employees, it was identified that, for employees who spend time in multiple cost objectives, appropriate controls were not in place to perform a timely reconciliation between the time charged to Title I based on budge...

Finding Number: 2022-003 Condition: During payroll expenditure testing of salaried employees, it was identified that, for employees who spend time in multiple cost objectives, appropriate controls were not in place to perform a timely reconciliation between the time charged to Title I based on budget estimates and the actual time expended on Title I activities. Ultimately a reconciliation was performed and approximately $ 99,000 was overcharged to Title I and subsequently reclassified as a non- grant expenditure. However, the School District requested and received reimbursement for this amount during the year- end June 30,2022. Planned Corrective Action: The School District will implement procedures to complete a review and reconciliation process to support the amount charged to Title I based on budget estimates is reasonable when compared to actual time expended on federal and state grants, specifically Title I Reconciliation will occur more than once a year to be able to align grant budgets, as needed. Contact person responsible for corrective action: Jennifer Graber, Director of Curriculum and Instruction and Blair Brindley, Director of Business Operations Anticipated Completion Date: 6/30/2023

View Audit 53995

Finding 47729 (2022-002)

Significant Deficiency 2022

Western States Information Network, Inc.

CA

Cash Management Reporting Significant Deficiency

WSIN concurs on finding 2022-002. To prevent further incidences, WSIN plans to revise its written accounting procedures to strengthen internal control policies on reporting program income. Greater emphasis will be taken to ensure the general ledger is updated in a timely manner, so program income is...

WSIN concurs on finding 2022-002. To prevent further incidences, WSIN plans to revise its written accounting procedures to strengthen internal control policies on reporting program income. Greater emphasis will be taken to ensure the general ledger is updated in a timely manner, so program income is reported on the federal financial quarterly reports based off the WSIN general ledger rather than a secondary tracking spreadsheet. WSIN management will ensure financial reporting has been through a secondary review prior to submission to US DOJ/OJP/BJA.

View Audit 52802

Finding 47697 (2022-006)

Significant Deficiency 2022

City of Pendleton, Oregon

OR

Cash Management

2022-006 Management?s response: Economic Development & Airport Director believes that the double checking (of the calculations) was clearly instructed to previous airport manager, however, the step was apparently not followed last year. It is unlikely that any additional payroll will be reimbursed t...

2022-006 Management?s response: Economic Development & Airport Director believes that the double checking (of the calculations) was clearly instructed to previous airport manager, however, the step was apparently not followed last year. It is unlikely that any additional payroll will be reimbursed through CARES Act, but the new Airport Manager has been clearly instructed that all calculations must be doubled checked before submission. Note: This was a somewhat insignificant amount of money related to a part-time worker?s pay. It was also a minor under-collection (less than the City could have collected), which should have been double-checked, but may have possibly been intentional. Staff is unaware of any amount of payroll for which it was required to ask for reimbursement on, so this finding seems subjective and immaterial

View Audit 49041

Finding 47649 (2022-002)

Material Weakness 2022

South Knox School Corporation

IN

School Nutrition Programs Internal Control / Segregation of Duties Cash Management § 200.303

FINDING 2022-002 Contact Person Responsible for Corrective Action: Tamara L. Asdell Contact Phone Number: 812-726-4440 Views of Responsible Official: We concur with the finding. Description of Corrective Action Plan The food service director will prepare and sign the monthly reimbursement claim then...

FINDING 2022-002 Contact Person Responsible for Corrective Action: Tamara L. Asdell Contact Phone Number: 812-726-4440 Views of Responsible Official: We concur with the finding. Description of Corrective Action Plan The food service director will prepare and sign the monthly reimbursement claim then have the claim reviewed by another cafeteria worker or the corporation treasurer who will then sign off on the claim to be submitted. Anticipated Completion Date. Immediately

View Audit 47743

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