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Finding 2025-001 Allowable Cost Principles and Activities Allowed or Unallowed Significant Deficiency in Internal Control Over Compliance Assistance Listing Number 21.029 While Wabash currently maintains informal procedures for coding and reviewing invoices and payroll records, we recognize the need...
Finding 2025-001 Allowable Cost Principles and Activities Allowed or Unallowed Significant Deficiency in Internal Control Over Compliance Assistance Listing Number 21.029 While Wabash currently maintains informal procedures for coding and reviewing invoices and payroll records, we recognize the need for a formalized, written policy governing expenditures charged to federal awards. To address identified significant deficiency, Wabash implemented a comprehensive written policy as of June 30, 2026. This policy will formalized the coding, review, and reporting processes for all federal expenditures. Key improvements included: • Enhanced Internal Controls: We established a clear segregation of duties to ensure oversight and accuracy. • Timely Reporting: We refined our payroll allocation process. Previously, payroll expenditures were withheld pending budget verification, which occasionally led to reporting delays. New controls will ensure that all expenditures, including payroll, are reported within the required quarterly timeframes. • Monitoring: The Controller will oversee the development of these procedures and remain responsible for ongoing monitoring and compliance. These steps will ensure our financial practices meet federal standards and provide rigorous oversight of project funds. Contact person(s): Cheryl Gaither, Controller Justin Gephart, Chief Operating Officer
Audit Finding Reference: 2025-003 Document Policies and Procedures Over Federal Awards Planned Corrective Action: This finding was identified by the Town’s independent auditor during the FY2025 single audit and was not issued by a federal awarding agency. The Assistant Town Administrator/Finance Dir...
Audit Finding Reference: 2025-003 Document Policies and Procedures Over Federal Awards Planned Corrective Action: This finding was identified by the Town’s independent auditor during the FY2025 single audit and was not issued by a federal awarding agency. The Assistant Town Administrator/Finance Director will prepare a concise federal awards procedures addendum addressing allowable costs, employee travel, cash management, procurement, conflicts of interest, and subrecipient monitoring. The addendum will incorporate existing Town policies by reference where they already address a requirement and will identify the responsible finance and departmental roles. Following management review and approval, the addendum will be provided to employees who administer federal awards and retained with the Town’s financial policies. It will be updated when federal requirements or the Town’s federal grant activity materially change. Planned Implementation Date of Corrective Action: October 31, 2026 Person Responsible for Corrective Action: Assistant Town Administrator/Finance Director, with oversight by the Town Administrator
Condition: The Town incurred and charged expenditures totaling $30,826 to a FEMA Public Assistance project after the approved period of performance ended on October 31, 2024. The Town submitted a formal request to extend the period of performance on September 8, 2025. As of March 19, 2026, FEMA had ...
Condition: The Town incurred and charged expenditures totaling $30,826 to a FEMA Public Assistance project after the approved period of performance ended on October 31, 2024. The Town submitted a formal request to extend the period of performance on September 8, 2025. As of March 19, 2026, FEMA had communicated that the extension request has been denied. However, FEMA reimbursed the Town for the expenditures incurred after October 31, 2024. As of the date of this audit report, FEMA has not indicated whether the reimbursement will ultimately be retained or subject to recovery. Corrective Action Plan Corrective Action Planned: The Town will implement a grant expenditure review checklist requiring pre-approval for any costs beyond the approved period; train all grant staff on compliance requirements; update internal controls. The Town will also document all correspondence whether that be by phone, email or written correspondence with FEMA when it comes to deadline extensions. The Town’s FEMA-funded recovery projects are complex, multi-year projects associated with rebuilding the community. Many projects have extended beyond their original completion dates due to factors including the pandemic, supply-chain and world trade impacts, weather, labor availability, construction timelines, and contract procurement requirements. In addition, frequent turnover among FEMA personnel assigned to the Town’s recovery projects has at times resulted in changes in points of contact, delays in responses, and extended processing times for approvals, determinations, and extension requests. These circumstances have contributed to the length and complexity of administering projects that already require significant coordination over multiple years. The Town has continued to work closely with FEMA throughout this process and has received approvals for extensions on recovery projects. In this instance, the expenditures identified in the finding occurred after the original October 31, 2024 period and were ultimately reimbursed by FEMA. Name(s) of Contact Person(s) Responsible for Corrective Action: Aimee Beleu, Finance Director Anticipated Completion Date: The corrective action will be implemented to take effect for the audit of the FY 2025-26 financial statements.
CORRECTIVE ACTION PLAN NOVEMBER 30, 2025 U. S. Department of Housing and Urban Development K.P.C. Apartments, Phase II (the "Project") respectfully submits the following corrective action plan for the year ended November 30, 2025. Audit Firm: Harper, Rains, Knight & Company, P.A. 1052 Highland Colon...
CORRECTIVE ACTION PLAN NOVEMBER 30, 2025 U. S. Department of Housing and Urban Development K.P.C. Apartments, Phase II (the "Project") respectfully submits the following corrective action plan for the year ended November 30, 2025. Audit Firm: Harper, Rains, Knight & Company, P.A. 1052 Highland Colony Parkway, Suite 100 Ridgeland, MS 39157 Audit Period: Year Ended November 30, 2025 Audit Finding Reference: 2025-001 Planned Corrective Action Management will submit a request to HUD for authorization of the distribution of the residual receipt funds. Name of Contact Person: If the U. S. Department of Housing and Urban Development for audit has questions regarding this plan, please call Rick Greene at 601-714-8349. Sincerely, K.P.C. Apartments, Phase II By Inventive Property Management Company
Views of Responsible Officials and Planned Corrective Action: Management acknowledges that, for certain reimbursement requests, documentation evidencing review and approval prior to submission was not retained. Management notes, however, that the underlying expenditures included in the reimbursement...
Views of Responsible Officials and Planned Corrective Action: Management acknowledges that, for certain reimbursement requests, documentation evidencing review and approval prior to submission was not retained. Management notes, however, that the underlying expenditures included in the reimbursement requests were valid, properly recorded in the general ledger, and supported by appropriate accounting records. No questioned costs were identified, and the amounts requested for reimbursement were consistent with allowable program expenditures. Management believes the condition was limited to documentation of review rather than the absence of an actual review process. Reimbursement requests were prepared using underlying financial records and submitted based on incurred costs; however, evidence of supervisory review was not consistently retained during a period of staffing transition. Upon identification, management evaluated its cash management and drawdown processes and reinforced expectations related to documentation and retention of review and approval. Review and approval of reimbursement requests are now consistently evidenced through electronic or physical sign off, and supporting documentation is maintained in a centralized and accessible manner. In addition, management has reinforced alignment of drawdown activity with underlying accounting records to ensure consistency between reimbursement requests, financial reporting, and the general ledger. Management believes this condition represents a documentation gap during a defined period rather than a systemic breakdown in internal control over compliance. The underlying control activities—preparation of drawdowns based on recorded expenditures and supervisory oversight—were in place and functioning, and the enhancements implemented ensure consistent documentation and retention of those controls going forward. Management will continue to monitor these processes as part of ongoing financial operations to ensure compliance with applicable requirements, including 2 CFR Part 200. Management respectfully notes that this condition was limited to the retention of documentation evidencing review and approval and did not impact the allowability of costs, the accuracy of reimbursement requests, or compliance with program requirements. All expenditures were properly supported and recorded, and no questioned costs were identified.
Views of Responsible Officials and Planned Corrective Action: Management acknowledges that documentation supporting the review and approval of a reimbursement request was not retained, and that drawdown activity during the period did not consistently align with the timing of incurred expenditures. M...
Views of Responsible Officials and Planned Corrective Action: Management acknowledges that documentation supporting the review and approval of a reimbursement request was not retained, and that drawdown activity during the period did not consistently align with the timing of incurred expenditures. Management notes that this condition was identified during a period of staffing transition and resulted in a lapse in documentation and timeliness, rather than an absence of underlying financial controls. Management further notes that the expenditure underlying the reimbursement request were valid, properly recorded in the general ledger, and supported by appropriate accounting records. The condition was limited to documentation of review and the timing of drawdown activity, and no questioned costs were identified. Upon identification, management evaluated and reinforced its cash management and drawdown processes. Drawdown requests are now consistently prepared based on underlying accounting records and aligned with incurred expenditures. A formal review and approval step has been implemented and is now required prior to submission, with evidence of review retained electronically or physically for audit purposes. In addition, management has strengthened oversight of drawdown timing to better align reimbursements with the period in which costs are incurred, reducing the risk of delayed submissions and ensuring consistency with related financial reporting. Management believes this condition represents a lapse in execution and documentation during a defined period rather than a systemic breakdown in control design. Enhancements implemented have addressed the identified gaps and established a more consistent and well documented process for drawdown preparation, review, and submission in accordance with applicable requirements, including 2 CFR Part 200.
2025-002 a. Name of Contact Person Responsible for Corrective Action: Dr. Terri Rhea, Superintendent b. Corrective Action Planned: We will implement policies or procedures to establish an internal control system that will ensure strong financial accountability, including compliance with state and fe...
2025-002 a. Name of Contact Person Responsible for Corrective Action: Dr. Terri Rhea, Superintendent b. Corrective Action Planned: We will implement policies or procedures to establish an internal control system that will ensure strong financial accountability, including compliance with state and federal grant requirements. c. Anticipated Completion Date: Immediately.
Condition: The College retained interest earnings in excess of $500 in its federal bank account during fiscal year 2025. This represents noncompliance with Cash Management requirements and is a repeat finding (2024-009). Corrective Action Plan The institution has strengthened internal controls, moni...
Condition: The College retained interest earnings in excess of $500 in its federal bank account during fiscal year 2025. This represents noncompliance with Cash Management requirements and is a repeat finding (2024-009). Corrective Action Plan The institution has strengthened internal controls, monitoring, and procedures to ensure compliance with federal cash management requirements and to prevent recurrence in future audit periods. The institution has revised its cash management procedures to ensure timely identification and return of excess interest earnings. • To prevent recurrence, the institution will maintain a lower balance in the federal funds account to minimize interest accrual. • Any interest exceeding $500 at fiscal year-end will be returned promptly in accordance with federal requirements. • Processes now include calculating interest earned on a routine basis and confirming compliance with the $500 threshold prior to fiscal year-end. Staff Training Staff responsible for federal funds management have been retrained on cash management requirements under 34 CFR 668.163, including thresholds for retained interest and required timelines for returning excess funds. System and Manual Checks The Business Office has implemented manual tracking of interest earned on federal funds accounts. A year-end reconciliation process has been enhanced to verify that any interest exceeding $500 is identified and returned within required timeframes. Monitoring and Compliance Ongoing monitoring includes: • Periodic review of bank account balances and interest accrual • Record of interest calculation for FY2025 • Bank statements supporting interest earned • Internal reconciliation and review documentation Responsible Person for Correction Action Plan: Deana Rogers, Vice President of Administration & Finance Implementation Date for Corrective Action Plan: Immediate and ongoing
Management will revise grant setup and expenditure review procedures to ensure grant cost centers are not activated prior to the authorized period of performance. A documented review will be implemented to verify that expenditures charged to federal awards were incurred within the applicable period ...
Management will revise grant setup and expenditure review procedures to ensure grant cost centers are not activated prior to the authorized period of performance. A documented review will be implemented to verify that expenditures charged to federal awards were incurred within the applicable period of performance before reimbursement requests are submitted. Initial grant expenditures and reimbursement requests will be subject to supervisory review and approval. Grants and finance personnel will also receive periodic training regarding Uniform Guidance requirements related to allowable costs and period-of-performance compliance. An entry will be made for FY26 to adjust the expenditures.
Name of auditee: Arirang Housing, Inc. HUD auditee identification number: 122-EH518-WAH-NP Name of audit firm: Dauby O'Connor & Zaleski, LLC Period covered by the audit: Year ended June 30, 2025 CAP prepared by Name: Noel Sweitzer Position: President, HDSI Management, Inc. Telephone number: (323) 23...
Name of auditee: Arirang Housing, Inc. HUD auditee identification number: 122-EH518-WAH-NP Name of audit firm: Dauby O'Connor & Zaleski, LLC Period covered by the audit: Year ended June 30, 2025 CAP prepared by Name: Noel Sweitzer Position: President, HDSI Management, Inc. Telephone number: (323) 231-1104 Current Findings on the Schedule of Findings, Questioned Costs, and Recommendations Statement of condition 2025-004: The Corporation made payments on entity expenses in the amount of $21,398 and did not obtain the required HUD approval. Comments on the Finding and Each Recommendation: The Corporation should request retroactive HUD approval to make the payments or request reimbursement from the Board of Directors. Action(s) taken or planned on the finding: Management has requested approval from HUD. As of the report date, no response has been received.
Assistance Listing Number (ALN) & Program Name: 11.472 Unallied Science Program (U.S. Dept. of Commerce, NOAA) Fiscal Year: FY2025 Finding: Significant Deficiency in Cash Management Compliance Documentation NPRB has already taken significant corrective action to strengthen its cash management contro...
Assistance Listing Number (ALN) & Program Name: 11.472 Unallied Science Program (U.S. Dept. of Commerce, NOAA) Fiscal Year: FY2025 Finding: Significant Deficiency in Cash Management Compliance Documentation NPRB has already taken significant corrective action to strengthen its cash management controls. Effective October 1, 2025, NBPR transitioned its accounting, financial reporting, cash management, accounts payables, grant accounting, and all related financial operations from its former fiscal agent to direct management by NPRB staff. NPRB continues to use an external accounting firm to assist with reconciliations, and provide review and internal-control advisory support Beginning October 1, 2025, NPRB implemented procedures requiring detailed supporting documentation for each federal cash draw request. Each draw support packet identifies the specific allowable expenditures being reimbursed and provides documentation sufficient to reconcile the amount requested to the underlying expenditures and NPRB’s accounting records. Draw support packets are retained electronically in accordance with NPRB’s document-retention procedures. NPRB has also implemented periodic reconciliations between federal draw activity and the general ledger, including cumulative draw activity, as well as between cumulative federal draw activity and federal expenditures reported on the SEFA. These procedures are being incorporated into NPRB's formal financial policies and procedures, including defined approval authorities, segregation-of-duties requirements, internal-control responsibilities, and documentation and retention requirements.
Federal Agency Name: Department of Treasury Pass-Through Entity: State of Iowa Department of Management Assistance Listing Number: #21.029 Program Name: Coronavirus Capital Projects Fund Finding Summary: The Cooperative was unable to provide documentation to support review and approval of the Cooper...
Federal Agency Name: Department of Treasury Pass-Through Entity: State of Iowa Department of Management Assistance Listing Number: #21.029 Program Name: Coronavirus Capital Projects Fund Finding Summary: The Cooperative was unable to provide documentation to support review and approval of the Cooperative’s request for reimbursement. Corrective Action Plan: Grant 24-GRAD-005 requires grantees to sign a General Accounting Expenditure form when submitting a reimbursement claim. The form lists the amount of invoices submitted, the MVEC match and the reimbursement requested. The CEO will sign off on these forms. For other grant reimbursements, the CFO will create a General Accounting Expenditure form for the CEO to sign off on. That form will be retained with the other supporting documentation. Responsible Individuals: Jeremy Richert, Chief Executive Officer and Kelly Gibbs, Chief Financial Officer Anticipated Completion Date: June 2026
Effective June 2025, the Organization hired a Director of Finance to strengthen financial management, enhance internal controls, and improve oversight of financial reporting and federal grant compliance. Management has implemented enhanced grant reconciliation procedures, documented management revie...
Effective June 2025, the Organization hired a Director of Finance to strengthen financial management, enhance internal controls, and improve oversight of financial reporting and federal grant compliance. Management has implemented enhanced grant reconciliation procedures, documented management review of reimbursement requests, and standardized reporting processes to improve the accuracy and completeness of grant reporting.
Finding 1227711 (2025-002)
Material Weakness 2025
Adjoin
CA
2. Current Year Findings 2025-002 e. Program Name: Supportive Services for Veterans Families: CFDA 64.033 f. Criteria: Failure to comply with the grant agreement’s terms and applicable regulations: The Organization did not comply with grant compliance requirements related to timeliness of submitting...
2. Current Year Findings 2025-002 e. Program Name: Supportive Services for Veterans Families: CFDA 64.033 f. Criteria: Failure to comply with the grant agreement’s terms and applicable regulations: The Organization did not comply with grant compliance requirements related to timeliness of submitting reports to funding agencies. g. Condition: During our audit, JGD noted that there was 1 out of 5 reports submitted outside of defined due dates. The delayed reporting, if uncorrected, might result in delays in the review and approval process on claim reimbursement and ability to make informed decisions about the future requirements on grant funding. h. Response: Management acknowledges the finding. During the audit period, staffing transitions within the accounting department affected the timing of the monthly financial close process, which contributed to one required report being submitted after the established deadline. To address this matter, the organization has filled the Accounting Manager position and added a Senior Accountant to strengthen the overall accounting capacity and improve the timeliness of financial reporting. Management has also established a targeted 20-day monthly close process and enhanced monitoring of reporting deadlines to support timely submission of grant reports and continued compliance with funding requirements.
Finding No. Corrective Action Plan 2025-002 Uniform Grant Guidance Implementation Recommendation: We recommend the County finalize the assessment of its financial management system and related internal controls over federal awards during the 2021 fiscal year. This assessment should include an evalua...
Finding No. Corrective Action Plan 2025-002 Uniform Grant Guidance Implementation Recommendation: We recommend the County finalize the assessment of its financial management system and related internal controls over federal awards during the 2021 fiscal year. This assessment should include an evaluation of existing policies and procedures to determine where additional enhancements should be made or new policies created, a plan to communicate these policies to County employees, and procedures to periodically review and update, as considered necessary. Action Planned/taken in response to the finding: Kewaunee County agrees with the finding. An assessment of all grants, requirements, and related policy and procedures is in progress and will continue to: • Evaluate existing policy and procedures for needed revisions • Document revisions to policy and procedures as necessary • Communicate any new policies to employees responsible for awards • Identify awards covered by the Uniform Guidance • Set and document a schedule for periodic review and revision Policy and procedures, as well as related documentation, are being revised as necessary to ensure compliance with the Uniform Guidance. Progress continues into 2025. The Finance Director will continue to coordinate and provide assistance and guidance to departments receiving grants subject to the Uniform Guidance. Names(s) of the contact person(s) responsible for corrective action: Paul Kunesh Planned completion date for corrective action: December 31, 2026
Finding No. Corrective Action Plan 2025-003 Review of Claim Forms and Expenditure Reconciliation Recommendation: We recommend that there is an appropriate reviewer of each grant claim and monthly reconciliation. Action planned/taken in response to the finding: Management will evaluate their current ...
Finding No. Corrective Action Plan 2025-003 Review of Claim Forms and Expenditure Reconciliation Recommendation: We recommend that there is an appropriate reviewer of each grant claim and monthly reconciliation. Action planned/taken in response to the finding: Management will evaluate their current processes and procedures during staffing transitions in fiscal year 2026 to ensure that proper review of claim forms and expenditure reconciliation. Names(s) of the contact person(s) responsible for corrective action: Paul Kunesh and Brian Johnson Planned completion date for corrective action: December 31, 2026
Views of Responsible Officials: Internal review and approval of the final (close out) funding request submission was provided verbally during an in-person management retreat; both the VPFinance and the Executive Director sat side-byside during review, approval and submission process. Management ackn...
Views of Responsible Officials: Internal review and approval of the final (close out) funding request submission was provided verbally during an in-person management retreat; both the VPFinance and the Executive Director sat side-byside during review, approval and submission process. Management acknowledges the lack of written documentation and has implemented protocols to ensure all approvals are written approvals, including instances where initial approvals are verbal in nature. Management does not expect to see this finding upon completion of our FY2026 audit. Anticipated Completion Date: December 31, 2025
1007 W. Third Avenue, Suite 100 Anchorage, AK 99501 907.644.6753 www.aoos.org August 17, 2026 CORRECTIVE ACTION PLAN Finding Number 2025-001 Significant Deficiency in Cash Management Compliance Documentation Contact Person: Sheyna Wisdom, Executive Director, AOOS Management Response: AOOS concurs wi...
1007 W. Third Avenue, Suite 100 Anchorage, AK 99501 907.644.6753 www.aoos.org August 17, 2026 CORRECTIVE ACTION PLAN Finding Number 2025-001 Significant Deficiency in Cash Management Compliance Documentation Contact Person: Sheyna Wisdom, Executive Director, AOOS Management Response: AOOS concurs with the finding and acknowledges the necessity of maintaining clear, accessible documentation linking individual federal cash draws directly to specific allowable expenditures incurred. Corrective action: To address this deficiency, AOOS, in coordination with its fiscal sponsor (Alaska SeaLife Center), will establish and formalize a standardized procedure for cash draw requests. Specifically, AOOS will: • Implement documentation for every ASAP drawdown request, which will include detailed general ledger expenditure reports, invoice registers, or transaction listings matching the exact draw amount. • Establish a dual-review process requiring formal written sign-off by both AOOS and Alaska SeaLife Center prior to executing funds transfers in ASAP. • Maintain permanent digital archives of all draw support packets and perform quarterly reconciliations between ASAP drawdowns, general ledger accounts, and SEFA reporting. Anticipated completion date: September 30, 2026
Finding 2025-005 - Untimely Release of Title IV Credit Balances (Significant Deficiency): Condition - During testing of student account activity, we identified that fourteen (14) out of sixty (60) sampled students had Title IV created credit balances that remained on their accounts for more than 14 ...
Finding 2025-005 - Untimely Release of Title IV Credit Balances (Significant Deficiency): Condition - During testing of student account activity, we identified that fourteen (14) out of sixty (60) sampled students had Title IV created credit balances that remained on their accounts for more than 14 days without being released to the student or parent. All refunds were eventually released to the students. Corrertive Action Plan The College experienced significant staff turnover within the business office. In addition, the College is undergoing conversion to a new Enterprise Resource Planning (ERP) system which affected its ability to complete some functions within a timely manner. A new bursar was hired in May 2026. Timely processing of student refunds was emphasized during her training. Going forward, student refunds will be released within 14 days after credit balances are reflected on student accounts." Completion Date - September 30, 2026 Responsible Party - Chief Financial Officer
Finding 2025-004 - Various Federal Programs: Cash Management- Excess Federal Cash, Untimely Reconciliations [Material Weakness}: Condition - At June 30, 2025, the College maintained excess federal cash balances across multiple federal programs, indicating that cash drawdowns and/or payable balances ...
Finding 2025-004 - Various Federal Programs: Cash Management- Excess Federal Cash, Untimely Reconciliations [Material Weakness}: Condition - At June 30, 2025, the College maintained excess federal cash balances across multiple federal programs, indicating that cash drawdowns and/or payable balances were not aligned with immediate cash needs for allowable program expenditures. These balances represented federal funds drawn or recorded as payable to federal agencies that were not supported by actual and immediate allowable program expenditures at year-end. The following table summarizes excess federal cash balances identified by program as of June 30, 2025: "Federal Program" "Excess Cash" "Minority Science and Engineering Improvement Program" 120,031 "Science Consortium of Minority Schools" 169,907 "NSF - Empowerment of Undergraduate STEM Majors" 94,801 "NSF - Tennessee Louis Stokes TLSAMP" 54,834 "Title III" 455,679 "FUTURE" 188,215 "Total Identified Excess Cash" 1,083,467 The College did not adequately reconcile federal cash activity to underlying grant expenditures on a timely basis and did not ensure that drawdowns were limited to amounts necessary to meet immediate cash needs. In addition, the College lacked effective monitoring controls to identify and resolve excess cash positions across federal programs in a timely manner. Federal bank reconciliations were untimely and error prone. Corrections occurred only after auditor inquiry. Federal accounts also earned excess interest. Corrective Action Plan The College requests drawdowns for Title Ill and FUTURE programs on a reimbursable basis, including review and approval procedures. Of the total amount identified for the Title Ill program, a $181,433 receivable related to FY2025. The balance related to prior year(s) activity. The College will review its Federal program cost allocation procedures to ensure all eligible costs are properly identified and supported going forward. The College has engaged two accounting firms to assist with staff training and bring all reconciliations current. In addition, standard month-end and year-end closing procedures will be implemented to address timely, accurate Federal program reconciliations and audit readiness going forward. The College experienced significant staff turnover within its business office. In addition, the College is undergoing conversion to a new Enterprise Resource Planning (ERP) system which affected its ability to complete some functions within a timely manner. Completion Date - September 30, 2026 Responsible Party - Chief Financial Officer
Finding 2025-003 - U.S. Department of Education [ED) - Federal Work Study - Noncompliance with Cash Management [Material Weakness): Condition -As of June 30, 2025, the College reported excess federal cash of $415,971 related to the Federal Work-Study Program. The excess cash represented cumulative f...
Finding 2025-003 - U.S. Department of Education [ED) - Federal Work Study - Noncompliance with Cash Management [Material Weakness): Condition -As of June 30, 2025, the College reported excess federal cash of $415,971 related to the Federal Work-Study Program. The excess cash represented cumulative federal funds drawn down through the federal payment system that were not disbursed or allowable Federal Work-Study payroll costs at year-end. The excess cash balance included amounts related to prior award years that had not been fully liquidated through reimbursement of allowable student wage expenditures or returned to the U.S. Department of Education as of June 30, 2025. Corrective Action Plan The College requests drawdowns for the Federal Work Study Program on a reimbursable basis, including review and approval procedures. Of the total amount identified, $26,466 related to FY2025, with the balance relating to prior year(s) activity. The College will review its Federal Work Study Program cost allocation procedures to ensure all eligible costs are properly identified and supported. The College has engaged two accounting firms to assist with staff training and bring all reconciliations current. In addition, standard month-end and year-end closing procedures will be implemented to address timely, accurate Federal Work Study Program reconciliations and audit readiness going forward. Completion Date - September 30, 2026 Responsible Party - Chief Financial Officer
Recommendation We recommend the District strengthen internal controls over the Child Nutrition Program reporting process by ensuring that all required documentation, including federal edit checks, Site Claim Reports by school, and evidence of supervisory review and approval of Meal Count Listings, i...
Recommendation We recommend the District strengthen internal controls over the Child Nutrition Program reporting process by ensuring that all required documentation, including federal edit checks, Site Claim Reports by school, and evidence of supervisory review and approval of Meal Count Listings, is prepared, reviewed, approved, and retained prior to submission of reimbursement claims. Management should also implement periodic monitoring procedures to ensure consistent compliance across all school sites. Management Response Corrective Action Beginning with the 2025–2026 school year, we have implemented a requirement that all kitchen managers complete a daily meal count form provided by the New Mexico Public Education Department (NMPED) in collaboration with the Student Success and Wellness Bureau (SSWB). This documentation ensures accountability and verifies that reimbursable meals are being served for both breakfast and lunch. Additionally, we are currently exploring the implementation of a software program to further strengthen meal count accountability. The Food Service Supervisor will be working closely with the District finance department to identify funding opportunities for the 2026–2027 school year. Due Date of Completion: June 30, 2026 Responsible Party(ies): Director of Federal Programs
Management Response/Corrective Action Plan: The District was awarded funding with the Congressional funds with all parties aware the project would be substantially completed before funding would be finalized. Much of the wait was due to the review and approval of the Build America, Buy America (BABA...
Management Response/Corrective Action Plan: The District was awarded funding with the Congressional funds with all parties aware the project would be substantially completed before funding would be finalized. Much of the wait was due to the review and approval of the Build America, Buy America (BABA) waiver. Unfortunately, the agency that trained MSAD54 staff on the process recommended for the request of funds to be made. Subsequent all funding requests were approved by HUD representatives prior to receiving the BABA waiver. The Superintendent recognized the potential error and contacted HUD who worked with the District to correct their mistake and return funds. The waiver has since been approved, and all funds have been drawn down.
Management concurs with the finding and notes that the Organization has increased the controls to ensure that appropriate review of payroll expenses occurs. The Organization never benefited from the erroneous charge to the grant as the overpayment issue was resolved and adjusted prior to the final a...
Management concurs with the finding and notes that the Organization has increased the controls to ensure that appropriate review of payroll expenses occurs. The Organization never benefited from the erroneous charge to the grant as the overpayment issue was resolved and adjusted prior to the final accounting to the Department of Health and Human Services. The final drawdown request for the grant year also reflected the correct expenditures after removal of the overpayment.
Identifying Number: 2025-002: Documentation of Internal Controls Over Compliance Finding: We noted that controls identified by management over all material compliance requirements lack sufficient documentation to conclude application of controls is in place. Corrective Actions Taken or Planned: Mana...
Identifying Number: 2025-002: Documentation of Internal Controls Over Compliance Finding: We noted that controls identified by management over all material compliance requirements lack sufficient documentation to conclude application of controls is in place. Corrective Actions Taken or Planned: Management agrees with the finding and has implemented, or is in the process of implementing, the following corrective actions: 1. Development of Written Policies and Procedures • The Institute will perform a comprehensive review of all applicable Student Financial Assistance compliance requirements and develop formal written policies and procedures documenting the processes and controls for each material compliance area. Procedures will include the individual responsible, required documentation, review requirements, and retention standards. 2. Documentation of Internal Controls • Management will establish standardized control documentation requirements for all compliance activities. Evidence of review and approval will be maintained through signatures, initials, electronic approvals, checklists, reconciliations, or other documented support sufficient to demonstrate that controls were performed and reviewed. 3. Compliance Monitoring Checklists • The Institute will implement compliance monitoring checklists covering all direct and material compliance requirements identified in the audit, including: o Cash Management o Reporting o Student Eligibility o Student Disbursements o Credit Balance Processing o NSLDS Reporting o Gramm-Leach-Bliley Act Information Security Requirements • The checklists will be completed and reviewed periodically to provide evidence of compliance and supervisory oversight. 4. Training and Cross-Training • Financial Aid and Administrative personnel will receive training on federal student aid compliance requirements, documentation expectations, and internal control responsibilities. Cross training will be performed to mitigate risks associated with employee turnover and ensure continuity of operations. 5. Management Review and Oversight • Management will implement periodic supervisory reviews of compliance activities and supporting documentation to verify controls operating as designed. Results of compliance monitoring activities and any identified deficiencies will be reported to senior administration, and corrective actions will be tracked to completion. 6. Annual Compliance Review • The Institute will conduct an annual review of Student Financial Assistance policies, procedures, and internal controls to ensure continued compliance with Department of Education regulations, Uniform Guidance requirements, and changes in federal program requirements. Identifying Number: 2025-002: Documentation of Internal Controls Over Compliance (Continued) Responsible Officials: • Executive Vice President – Ariane Sweeney • Director of Financial Aid – Dr Thelbert Snowden • Controller/Outsourced Accounting Partner – YPTC Associates Melissa McGuire & Samantha Glass • Compliance and Information Security Personnel, as applicable Anticipated completion date: The written policies and procedures, compliance monitoring tools, and documentation standards will be fully implemented by December 31, 2026. Ongoing monitoring, training, and annual reviews will continue thereafter.
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