Corrective Action Plans

Finding 541796 (2024-005)

Significant Deficiency 2024

TX

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

Finding 2024‐005 Student Financial Assistance Cluster ALN: 84.268 Finding: The College did not submit the required monthly reconciliation for the direct loan program Corrective Action Plan: To address the issue of not submitting the required monthly reconciliation for the Direct Loan Program, the...

Finding 2024‐005 Student Financial Assistance Cluster ALN: 84.268 Finding: The College did not submit the required monthly reconciliation for the direct loan program Corrective Action Plan: To address the issue of not submitting the required monthly reconciliation for the Direct Loan Program, the Financial Aid office has implemented a process to ensure Direct Loan reconciliation is completed monthly. An outlook calendar reminder entry will serve as a reminder to begin the reconciliation process on the 15th of each month. The Senior Financial Aid Counselor requests a YTD SAS report from COD, which contains loan data from the central processor, the report is delivered to our electronic mailbox within 24 hours. The Senior Financial Aid Counselor runs a second report from the SIS System to generate YTD loan disbursement information. The files are reformatted and compared by the Senior Financial Aid Counselor. Any discrepancies are reviewed and resolved in the appropriate system (COD or SIS), dependent on the discrepancy. The Senior Counselor notifies the Senior Manager of Financial Aid that the comparison and updates are complete. The Senior Manager of Financial Aid then reviews delta from the compared data and verifies that corrections are made in the correct system. The Senior Manager ensures that resolved amount is within the COD delta found on the summary page in COD and a screenshot is maintained in the reconciliation file. Senior Manager marks “Sr Manager Reviewed” column on the loan reconciliation spreadsheet with a date of review as evidence. The completed reconciliation is maintained in the Financial Aid Shared Directory. Person Responsible: Scott Moore, Senior Manager, Financial Aid, Baylor College of Medicine Expected Completion: April 2024

View Audit 350695

Finding 541104 (2024-001)

Significant Deficiency 2024

Fairfield University

CT

Student Financial Aid Matching / Level of Effort / Earmarking Subrecipient Monitoring

Corrective Action The corrective action that will be taken is that Pell Grant disbursements will be reported timely to COD. The following will support this effort: 1. Address Systematic Issues 2. Enhance Staff Training 3. Implement Regular Monitoring and Auditing Persons Responsible for Corre...

Corrective Action The corrective action that will be taken is that Pell Grant disbursements will be reported timely to COD. The following will support this effort: 1. Address Systematic Issues 2. Enhance Staff Training 3. Implement Regular Monitoring and Auditing Persons Responsible for Corrective Action The corrective action plan will be completed by Corry Unis, Vice President for Enrollment Management and Diana Draper, Executive Director of Financial Aid. Completion Date Initial corrective action was taken by Diana Draper, Financial Aid Director, in March 2024 when the student disbursements were reports to COD. Additional corrective actions included systematic controls, additional training, and greater internal monitoring and auditing have been put in place.

View Audit 350686

Finding 541073 (2024-002)

Significant Deficiency 2024

Scenic Bluffs Health Center, INC

WI

Questioned Costs Cash Management Significant Deficiency § 200.430

Allowable Activities and Costs Health Centers Cluster – Assistance Listing No. 93.224 and 93.527 Recommendation: We recommend the Organization implement a comprehensive and thorough process to review all wages charged to federal and state grant prior to initiating a drawdown request or submitting a ...

Allowable Activities and Costs Health Centers Cluster – Assistance Listing No. 93.224 and 93.527 Recommendation: We recommend the Organization implement a comprehensive and thorough process to review all wages charged to federal and state grant prior to initiating a drawdown request or submitting a reimbursement request to the grantor. As part of this, the Organization should implement a process to review changes to salary and wage information as changes are made or identified.. Action taken in response to finding: The process has been changed as of July 1, 2024 and will continue forward. Name(s) of the contact person(s) responsible for corrective action: Daria Sztaba, CFO Planned completion date for corrective action plan: July 1, 2024

View Audit 350678 Questioned Costs: $1

Finding 541037 (2024-001)

Material Weakness 2024

Wild Rose School District

WI

Cash Management Reporting

The District acknowledges the finding and will continue to review new standards as part of the fiscal audit process.

View Audit 350640

Finding 541031 (2024-001)

Significant Deficiency 2024

Rodman Commons INC

RI

Cash Management HUD Housing Programs Internal Control / Segregation of Duties

Corrective Action Plan United States Department of Housing and Urban Development Rodman Commons, Inc. respectfully submits the following corrective action plan for the year ended June 30, 2024 Name of Audit Firm: Damiano, Burk & Nuttall, P.C. 6 Blackstone Valley Place Suite 109 Lincoln, RI 02865 Aud...

Corrective Action Plan United States Department of Housing and Urban Development Rodman Commons, Inc. respectfully submits the following corrective action plan for the year ended June 30, 2024 Name of Audit Firm: Damiano, Burk & Nuttall, P.C. 6 Blackstone Valley Place Suite 109 Lincoln, RI 02865 Audit period covered: 7/1/2023-6/30/2024 The findings from the June 30, 2024 schedule of findings and questioned costs are discussed below. The findings are numbered consistently with the numbers assigned in the schedule. Section A of the schedule, Summary of Audit Results, does not include findings and is not addressed. FINDINGS—FEDERAL AWARD PROGRAMS AUDITS DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT FINDING 2024-001: Section 202 Project Rental Assistance—Assistance Listing # 14.157 Recommendation: The Corporation should design and implement internal controls to ensure that all replacement reserve deposits are deposited in a timely manner. Action Taken: Management has implemented internal controls to ensure that monthly replacement reserve deposits are made in a timely fashion. An individual at the office has been assigned oversight responsibility to ensure these deposits are made each month. If the United States Department of Housing and Urban Development has questions regarding this plan, please call Frank Shea at (401) 296-3761.

View Audit 350637

Finding 540993 (2024-002)

Significant Deficiency 2024

Emmanuel College

MA

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

The Controller will ensure he signs the monthly schedule on all future bank reconciliations that he reviews. The controller will sign all bank reconciliations starting March 2024.

View Audit 350596

Finding 540982 (2024-008)

Material Weakness 2024

City of Amsterdam, New York

NY

Reporting Internal Control / Segregation of Duties Cash Management

The City Controller, City Engineer and Director of Community and Economic Development held meetings to discuss the development of a SharePoint site for all grant documentation. This is slowly starting to take shape and with the addition of an IT professional to the City's workforce, we are confident...

The City Controller, City Engineer and Director of Community and Economic Development held meetings to discuss the development of a SharePoint site for all grant documentation. This is slowly starting to take shape and with the addition of an IT professional to the City's workforce, we are confident that the City will become much better at tracking federal and state expenditures by funding source. Louise Biron will be responsible for this finding and the anticipated completion date is June 30, 2025.

View Audit 350587

Finding 540976 (2024-002)

Significant Deficiency 2024

Lewistown Community Unit Schools District 97

IL

Subrecipient Monitoring Cash Management Matching / Level of Effort / Earmarking § 200.305

Condition: The District's expenditure reports filed for June 30, 2024 included expenditures in the amount of $19,645 paid in July 2024. These amounts were not reported as committed or obligated. Plan: Grant expenditure reports will be prepared on the cash basis and obligations reported. The liquidat...

Condition: The District's expenditure reports filed for June 30, 2024 included expenditures in the amount of $19,645 paid in July 2024. 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 expenditure reports. Management Response: There is no disagreement with this finding, and management will monitor all future federal reimbursement requests. Committed and obligated expenditure reports will be reported appropriately, and will be paid within 90 days after project completion.

View Audit 350586

Finding 540945 (2024-006)

Significant Deficiency 2024

State of New Jersey

NJ

Special Tests & Provisions Cash Management Significant Deficiency § 200.303

The New Jersey Department of Transportation (NJDOT) has finalized its Utility Accommodation Policy (UAP) to align with federal requirements. The UAP follows the formal state regulatory process, and it was re-adopted on June 6, 2023, with technical changes. The UAP remains to be in full form and effe...

The New Jersey Department of Transportation (NJDOT) has finalized its Utility Accommodation Policy (UAP) to align with federal requirements. The UAP follows the formal state regulatory process, and it was re-adopted on June 6, 2023, with technical changes. The UAP remains to be in full form and effect. In compliance with the federal rules, the UAP is being amended to incorporate provisions for Broadband and Telecommunications and Video Surveillance. The amended language has been reviewed and approved by Federal Highway Administration (FHWA). The UAP is progressing through the formal regulatory process. The policy is expected to be published on April 7, 2025. A 60-day public comment period will follow, allowing stakeholders to provide feedback. Once the public comment period is completed, the revised UAP will be implemented immediately to ensure compliance. The DOT will continue to monitor the implementation and ensure that all utility accommodation actions align with the newly approved policy. COMPLETION DATE/ CONTACT PERSON & PHONE# Anticipated Completion Date: TBD but no later than December 30, 2025 Vince Martorana (609) 963-1825 Vince.Martorana@dot.nj.gov James Lepri (609) 963-1837 James.Lepri@dot.nj.gov

View Audit 350571

Finding 540829 (2024-001)

Significant Deficiency 2024

Newbern Housing Authority

TN

Questioned Costs Cash Management HUD Housing Programs

2024-001 FINDING: Excess Reimbursement Requested (Public Housing Capital Fund - ALN 14.872) – Significant Deficiency and Noncompliance Person responsible for Implementing the Corrective Action: The Board of Commissioners and David Jones Anticipated Completion Date of Corrective Action: June 30, ...

2024-001 FINDING: Excess Reimbursement Requested (Public Housing Capital Fund - ALN 14.872) – Significant Deficiency and Noncompliance Person responsible for Implementing the Corrective Action: The Board of Commissioners and David Jones Anticipated Completion Date of Corrective Action: June 30, 2025 Planned Corrective Action: The Authority will work on ensuring requests for reimbursement of capital funds will have supporting documentation and management will take measures to ensure duplicate requests aren't made for a single invoice.

View Audit 350466 Questioned Costs: $1

Finding 540801 (2024-001)

Material Weakness 2024

South Florida Regional Transportation Authority

FL

Reporting Subrecipient Monitoring Cash Management § 200.502 § 200.508 § 200.510 § 200.71

Condition: The SEFA for the year ended June 30, 2024 was not accurately prepared, as it originally included federal expenditures that were not on the cash basis. Planned Corrective Action: The corrective actions implemented for capital grants will be expanded to include the operating grants. Contact...

Condition: The SEFA for the year ended June 30, 2024 was not accurately prepared, as it originally included federal expenditures that were not on the cash basis. Planned Corrective Action: The corrective actions implemented for capital grants will be expanded to include the operating grants. Contact person responsible for corrective action: Joseph Khouzami Anticipated Completion Date: March 1, 2025

View Audit 350453

Finding 540691 (2024-002)

None 2024

Franklin County Dial Self, Inc.

MA

Internal Control / Segregation of Duties Cash Management

FINDINGS - MAJOR FEDERAL AWARD PROGRAM AUDIT Corporation for National and Community Service Finding, 2024-002: Major Program: AmeriCorps, Federal Assistance Listing Number 94.006 RECOMMENDATION The auditor recommends the Organization adjust the internal control process to have the bills verified ...

FINDINGS - MAJOR FEDERAL AWARD PROGRAM AUDIT Corporation for National and Community Service Finding, 2024-002: Major Program: AmeriCorps, Federal Assistance Listing Number 94.006 RECOMMENDATION The auditor recommends the Organization adjust the internal control process to have the bills verified internally before sending to AmeriCorps. ACTION TAKEN The Organization will be contacting AmeriCorps regarding the overbilling and intends on implementing a modification to the procedures for billing cost reimbursement contracts.

View Audit 350391

Finding 540685 (2024-032)

Material Weakness 2024

State of New Hampshire

NH

Special Tests & Provisions Subrecipient Monitoring Cash Management § 200.303

CORRECTIVE ACTION PLAN State Fiscal Year Ended June 30, 2024 97.036 Disaster Grants – Public Assistance (Presidentially Declared Disasters) State Agency: NH Department of Safety, Division of Homeland Security and Emergency Management Audit Contact: Matthew Hotchkiss and Austin Brown Telephone: 602...

CORRECTIVE ACTION PLAN State Fiscal Year Ended June 30, 2024 97.036 Disaster Grants – Public Assistance (Presidentially Declared Disasters) State Agency: NH Department of Safety, Division of Homeland Security and Emergency Management Audit Contact: Matthew Hotchkiss and Austin Brown Telephone: 602-271-2231 E-mail address: Matthew.A.Hotchkiss@dos.nh.gov and NHPA@dos.nh.gov Audit Report Reference: 2024-032, 2023-021 Special Tests and Provisions - Project Accounting Anticipated Completion Date: April 30, 2025 Corrective Action Planned: HSEM concurs with finding 001-A. This issue was discovered during FEMA’s financial monitoring site visit in March 2024. To resolve this issue, HSEM drafted a Delegation of Authority letter which was filed with FEMA in November 2024. A copy of the DOA is attached to this response and was supplied to KPMG during the audit. The control and review concern of this issue was previously addressed by establishing a review process between the Accountant IV, Administrator II, and the Deputy Director prior to the submittal of all 425s. These controls were in place during the audit period but were not documented. Please note that inaccuracies were not found during the audit on the filed 425 reports. In the future, HSEM will ensure that the review process is documented. HSEM concurs with Finding 001-B and is taking immediate action to review and strengthen its procedures regarding FFATA filing. As of March 8, the Federal FFATA filing process has shifted to SAM.gov for report submissions. In response, HSEM is swiftly updating its internal procedures to guarantee the timely and accurate filing of FFATA reports. These updates will be incorporated into a comprehensive Quick Reference Guide, designed to provide programmatic staff with clear, efficient instructions for completing reports. Additionally, a robust review process will be instituted for programmatic supervisors to ensure strict adherence to the updated procedures. Programmatic supervisors, who will be responsible for conducting these reviews, were informed of the required process change on March 11, 2025. To ensure a smooth transition and full compliance, remedial training will be provided to all programmatic staff upon completion of the Quick Reference Guide review and update, no later than April 15, 2025.

View Audit 350389

Finding 540670 (2024-023)

Material Weakness 2024

State of New Hampshire

NH

Cash Management Subrecipient Monitoring § 200.204 § 200.305

CORRECTIVE ACTION PLAN State Fiscal Year Ended June 30, 2024 93.568 Low-Income Home Energy Assistance State Agency: Department of Energy Audit Contact: Leonard Rautio Title: Chief of Operations Telephone: (603) 271-6008 E-mail address: leonard.j.rautio1@energy.nh.gov Audit Report Reference: 2024-...

CORRECTIVE ACTION PLAN State Fiscal Year Ended June 30, 2024 93.568 Low-Income Home Energy Assistance State Agency: Department of Energy Audit Contact: Leonard Rautio Title: Chief of Operations Telephone: (603) 271-6008 E-mail address: leonard.j.rautio1@energy.nh.gov Audit Report Reference: 2024-023, 2023-014, 2022-027 – Cash Management Anticipated Completion Date: June 30, 2025 Corrective Action Planned: Concur The Department has eliminated giving program advances for program year 2025 (PY25) and reduced the amount of the administrative advances from 17.5% to 10% for PY25. The Department monitors monthly bank statements from the subrecipients to ensure there is little or no interest accrued from cash on hand. 2 CFR 200.305 (b)(1) does not limit cash on hand to 30 days but indicates that the timing and amount of advance payments must be as close as is administratively feasible to the actual disbursements by the subrecipient. Federal guidance to the Department indicates the Department is meeting that requirement. However, the Department will continue to review administrative advances and adjust the amounts to ensure subrecipient cash on hand is limited to a reasonable timeframe.

View Audit 350389

Finding 540652 (2024-016)

Material Weakness 2024

State of New Hampshire

NH

Subrecipient Monitoring Allowable Costs / Cost Principles Cash Management

CORRECTIVE ACTION PLAN State Fiscal Year Ended June 30, 2024 93.044, 93.045, 93.053 Aging Cluster State Agency: Department of Health and Human Services (DHHS) Audit Contact: Kyra Leonard Title: DBH & DLTSS Finance Director Telephone: 603-271-5052 E-mail address: Kyra.C.Leonard@dhhs.nh.gov Audit R...

CORRECTIVE ACTION PLAN State Fiscal Year Ended June 30, 2024 93.044, 93.045, 93.053 Aging Cluster State Agency: Department of Health and Human Services (DHHS) Audit Contact: Kyra Leonard Title: DBH & DLTSS Finance Director Telephone: 603-271-5052 E-mail address: Kyra.C.Leonard@dhhs.nh.gov Audit Report Reference: 2024-016 - Activities Allowed or Unallowed/Allowable Costs/Costs Principles Anticipated Completion Date: June 30, 2025 Corrective Action Planned: The Department recognizes the business rules currently in place in the Options Electronic Billing and Service Authorization Maintenance System does not necessitate certain allowability approvals before the expenses are submitted through NHFirst for payment. The Department will turn off the automatic interface between Options and NHFirst in order to review the expenses before payment is issued. The Department will implement the typical invoice review process based on reporting from the Options, including a checklist that will specify each procedure and include a date that it was completed on. Then the approved output will be entered into NHFirst for payment.

View Audit 350389

Finding 540619 (2024-005)

Material Weakness 2024

State of New Hampshire

NH

Subrecipient Monitoring Cash Management § 200.303 § 200.332 § 200.501 § 200.521

CORRECTIVE ACTION PLAN State Fiscal Year Ended June 30, 2024 Fish and Wildlife Cluster (Assistance Listing #15.605, #15.611, #15.626) State Agency: NH Fish and Game Department Audit Contact: Randy Curtis Title: Federal Aid Administrator Telephone: (603) 271-0801 E-mail address: randy.l.curtis@wild...

CORRECTIVE ACTION PLAN State Fiscal Year Ended June 30, 2024 Fish and Wildlife Cluster (Assistance Listing #15.605, #15.611, #15.626) State Agency: NH Fish and Game Department Audit Contact: Randy Curtis Title: Federal Aid Administrator Telephone: (603) 271-0801 E-mail address: randy.l.curtis@wildlife.nh.gov Audit Report Reference: 2024-005 – Subrecipient Monitoring Anticipated Completion Date: June 30, 2025 Corrective Action Planned: We partially concur with the finding. A. The Department concurs there were required elements missing from the information included in tested subaward agreements. The Department will develop templates and put in place a process to ensure that all subrecipient agreements contain all required communications. B. The Department concurs and has recently completed and is implementing new internal policies and procedures that address nearly all of the conditions identified in this finding overall. These written policies and procedures were designed to be in compliance with the requirements of 2 CFR Part 200 Subpart D - Subrecipient Monitoring and Management and to establish improved internal controls. The policy includes a process for completing a risk assessment which outlines they types and frequency of monitoring procedures and for documenting their completion. C. The Department partially concurs with this condition. We believe the level of detail included within the invoice was consistent with the terms of the agreements and project budgets and did allow Department staff reviewing the reasonableness of the costs incurred to ensure that they were incurred in accordance with the grant agreement. Additionally, the Department’s updated subrecipient monitoring policies and procedures will provide for testing and requesting detailed backup and support for at least one invoice annually. D. The Department concurs there was no specific evidence denoting approval of the subaward reports. However, Department project leaders do review reports received from subrecipients and typically include them as attachments in our own grant reports to the Fish and Wildlife Service. A step will be added to monitoring procedures to include specific Department approval of subrecipient reports. Further, the Department will include a step for documentation of the receipt and review of subrecipient Uniform Guidance audit reports.

View Audit 350389

Finding 540618 (2024-004)

Material Weakness 2024

State of New Hampshire

NH

Internal Control / Segregation of Duties Cash Management Material Weakness § 200.303

CORRECTIVE ACTION PLAN State Fiscal Year Ended June 30, 2024 12.401 National Guard Military Operations and Maintenance (O&M) Projects State Agency: Department of Military Affairs and Veterans Services (DMAVS) Audit Contact: Judy Chen Title: Administrator Telephone: 603-225-1366 E-mail address: yin...

CORRECTIVE ACTION PLAN State Fiscal Year Ended June 30, 2024 12.401 National Guard Military Operations and Maintenance (O&M) Projects State Agency: Department of Military Affairs and Veterans Services (DMAVS) Audit Contact: Judy Chen Title: Administrator Telephone: 603-225-1366 E-mail address: ying.q.chen@DMAVS.nh.gov Audit Report Reference: 2024-004, 2023-003 – Cash Management Anticipated Completion Date: None Corrective Action Planned: Non Concur With regard to the segregation of duties, the SF-270 is a required form that DMAVS submits to the National Guard Appendix Program Manager for reimbursement with all back up documentation. The National Guard Appendix Program Manager, National Guard Grants Officer Representative, and National Guard United States Property Fiscal Officer (USPFO)/controller located in Concord, NH review, sign and submit the form to the Department of Defense on behalf of DMAVS to request the cash draw. Prior to the submission of reimbursement of any funds, each billing and invoice is reviewed, entered into a ledger and reconciled by three members of the accounting team. Once reconciled, the SF-270 is prepared and signed by the Financial Administrator. The SF-270 is then submitted to the appendix program manager for concurrence and then to the federal fiscal agent (USPFO) for approval. No funds are drawn down until approved by the USPFO. If this is not a satisfactory level of review, the department will request a new position to ensure that there the business function has the proper level of staffing to meet the requirements for segregation of duties.

View Audit 350389

Finding 540617 (2024-003)

Material Weakness 2024

State of New Hampshire

NH

Internal Control / Segregation of Duties Cash Management Material Weakness § 200.303

CORRECTIVE ACTION PLAN State Fiscal Year Ended June 30, 2024 12.401 National Guard Military Operations and Maintenance (O&M) Projects State Agency: Department of Military Affairs and Veterans Services (DMAVS) Audit Contact: Judy Chen Title: Administrator Telephone: 603-225-1366 E-mail address: yin...

CORRECTIVE ACTION PLAN State Fiscal Year Ended June 30, 2024 12.401 National Guard Military Operations and Maintenance (O&M) Projects State Agency: Department of Military Affairs and Veterans Services (DMAVS) Audit Contact: Judy Chen Title: Administrator Telephone: 603-225-1366 E-mail address: ying.q.chen@DMAVS.nh.gov Audit Report Reference: 2024-003, 2023-002 – Reporting Anticipated Completion Date: None Corrective Action Planned: Non Concur This requires the Department to create a redundant manual ledger that duplicates the function of the current ledger and DTR. This is not an efficient use of time or personnel. DMAVS has existing policies and procedures in place to track all federal funds, state funds and mixed funds, and uses spreadsheets for all transactions that reconciles every month to NH First Detail Transaction Register (DTR), Federal Fund tracking sheet, and Federal reimbursement tracking sheet with backup documents. The tracking sheet for the federal register is not intended to account for the state share of billing. The state share is accurately accounted for in the DTR, the cumulative accounting in the SF-270 and associated back up documentation. Supporting documentation to substantiate the accuracy of lines a, c, e, and f is in the DTR, the cumulative accounting of each SF-270, the supporting documentation sent with the billing to the Federal Government, and Year-end Agency Report for Federal Awards. This includes reconciliation and analysis of SADB expenditures and revenues to the Statement of Appropriations by each Program Accounting Unit. The SF-270 form is continuous cumulative data that starts Oct 1st and runs through the end of that Federal Fiscal Year. The SF-270 is the required federal form DMAVS submits to the Federal National Guard Appendix Program Manager for reimbursement. Back up documentation is submitted with the SF-270. The National Guard Appendix Program Manager, National Guard Grants Officer Representative, and National Guard United States Property Fiscal Officer (USPFO)/controller located in Concord, NH review, sign and submit the form to the Department of Defense to affect the cash draw. DMAVS does not unilaterally make cash draws to the federal government. The USPFO, who is substantially involved provides an independent review and reconciles any discrepancies prior to approving any requests for reimbursement. One possible explanation for the finding is that the selected test works were not continuous, nor did they account for cumulative data.

View Audit 350389

Finding 540592 (2024-005)

Significant Deficiency 2024

Municipality of Vega Baja

PR

Matching / Level of Effort / Earmarking Cash Management Significant Deficiency

COMMONWEALTH OF PUERTO RICO AUTONOMOUS MUNICIPALITY OF VEGA BAJA Corrective Action Plan For the Fiscal Year Ended June 30, 2024 Audit Report: Reports on Compliance and Internal Control in Accordance with Government Auditing Standards and OMB Super Circular Uniform Guidance Audit P...

COMMONWEALTH OF PUERTO RICO AUTONOMOUS MUNICIPALITY OF VEGA BAJA Corrective Action Plan For the Fiscal Year Ended June 30, 2024 Audit Report: Reports on Compliance and Internal Control in Accordance with Government Auditing Standards and OMB Super Circular Uniform Guidance Audit Period: July 1, 2023 – June 30, 2024 Fiscal Year: 2023-2024 Principal Executive: Hon. Marcos Cruz Molina, Mayor Contact Person: Mr. Edgardo Pérez, Department of Management, Administration and Budget Director Phone: (787)855-2500 Original Finding Number: 2024-005 Statement of Concurrence or Non concurrence: We concur with the finding. Corrective Action : The ACUDEN agency has not yet closed the budget year 2023-2024. Therefore, even though the contract has ended, the remaining reimbursement from the agency has not been received. Therefore, the full closing report cannot be completed until this final amount is received. As a corrective measure for finding 2024-005, the Sub Director of Finance will establish an internal control system in which the processes and compliance with the submission of accounting reports for federal programs, including Child Care, will be periodically monitored. Implementation Date: Fiscal Year 2025-2026. Responsible Person: José A. Mathews Maisonet Program Accountant

View Audit 350357

Finding 540591 (2024-004)

Significant Deficiency 2024

Municipality of Vega Baja

PR

Subrecipient Monitoring Cash Management Reporting

COMMONWEALTH OF PUERTO RICO AUTONOMOUS MUNICIPALITY OF VEGA BAJA Corrective Action Plan For the Fiscal Year Ended June 30, 2024 Audit Report: Reports on Compliance and Internal Control in Accordance with Government Auditing Standards and OMB Super Circular Uniform Guidance Audit P...

COMMONWEALTH OF PUERTO RICO AUTONOMOUS MUNICIPALITY OF VEGA BAJA Corrective Action Plan For the Fiscal Year Ended June 30, 2024 Audit Report: Reports on Compliance and Internal Control in Accordance with Government Auditing Standards and OMB Super Circular Uniform Guidance Audit Period: July 1, 2023 – June 30, 2024 Fiscal Year: 2023-2024 Principal Executive: Hon. Marcos Cruz Molina, Mayor Contact Person: Mr. Edgardo Pérez, Department of Management, Administration and Budget Director Phone: (787)855-2500 Original Finding Number: 2024-004 Statement of Concurrence or Non concurrence: We concur with the finding. Corrective Action: The ACUDEN agency has not yet closed the budget year 2023-2024. Therefore, even though the contract has ended, the remaining reimbursement from the agency has not been received. Therefore, the full closing report cannot be completed until this final amount is received. As a corrective measure for finding 2024-005, the Sub Director of Finance will establish an internal control system in which the processes and compliance with the submission of accounting reports for federal programs, including Child Care, will be periodically monitored. Implementation Date: Fiscal Year 2025-2026. Responsible Person: José A. Mathews Maisonet Program Accountant

View Audit 350357

Finding 540549 (2024-006)

Significant Deficiency 2024

Independent School District #2909, Rock Ridge Public Schools

MN

Internal Control / Segregation of Duties Cash Management Reporting

Contact Person – Dr. Noel Schmidt, Superintendent Corrective Action Plan – The District staff will establish procedures to review meal reimbursement submissions. Completion Date – Immediately

View Audit 350310

Finding 540536 (2024-006)

Significant Deficiency 2024

New Mexico Department of Homeland Security & Emergency Management

NM

Reporting Subrecipient Monitoring Cash Management § 200.302 § 200.303

Recommendation We recommend the Department review the instructions for completion of the federal financial reports with training provided to the program staff preparing and reviewing the federal financial reports to ensure submitted reports are complete. We recommend the Department implement effecti...

Recommendation We recommend the Department review the instructions for completion of the federal financial reports with training provided to the program staff preparing and reviewing the federal financial reports to ensure submitted reports are complete. We recommend the Department implement effective processes and procedures to maintain the submitted reports and the documentation used to prepare the reports in the files of the Department. Management Response Corrective Action: The Department understands the issues and is continuing to take corrective action to improve reporting. In the past the Department has shifted its priority to onboarding across the Department, and we have onboarded a Grants Unit Manager to oversee the reporting requirements of all federal grants. The Grants Unit will focus on procedures to ensure the reporting requirements are met. A procedural checklist will be implemented to ensure that: 1. the recipient share section is completed, 2. that financial reports are submitted to the Department timely, and 3. all Performance Progress Reports as submitted. Due Date of Completion: June 30, 2025 Responsible Person(s): Deputy Cabinet Secretary, Grants Unit Manager

View Audit 350283

Finding 540529 (2024-004)

Material Weakness 2024

New Mexico Department of Homeland Security & Emergency Management

NM

Cash Management Internal Control / Segregation of Duties Reporting § 200.303

Recommendation We recommend the Department train its staff on the various aspects of financial grant management including the specific requirement of the grants for which the Department receives federal funding. We recommend that the reconciliation process over grants be well documented and closely ...

Recommendation We recommend the Department train its staff on the various aspects of financial grant management including the specific requirement of the grants for which the Department receives federal funding. We recommend that the reconciliation process over grants be well documented and closely monitored by management. We recommend the Department work closely with the FEMA to establish a going forward point for the reconciliation of grants and the Federal accounts receivable/payable balance. Management Response Corrective Action: We concur with this finding and the auditor's recommendation. The Department is working to perform a comprehensive reconciliation of all grants and complete any draw down requests for grant funding that has been expended but not drawn down. The initial completion of billing for all the older grants and projects is estimated to be by March 2025. In addition to the historical reconciliation, the finance team is working to ensure that current grant expenditures are drawn down on a monthly basis when possible. The historical grant reconciliation must be prepared and reviewed prior to submitting the draw requests. Due Date of Completion: June 30, 2025 Responsible Person(s): Deputy Cabinet Secretary

View Audit 350283

Finding 540510 (2024-006)

Material Weakness 2024

State of Hawaii, Department of Accounting and General Services

HI

Cash Management

Finding No: 2024-006 ALN No.: 12.400 Program Title: Military Construction, National Guard Grant Award No.: W912J6-23-2-2101 2023 Condition During our audit, we examined four haphazardly selected cash disbursements and identified an instance totaling approximately $60,000 in which the time elapsing b...

Finding No: 2024-006 ALN No.: 12.400 Program Title: Military Construction, National Guard Grant Award No.: W912J6-23-2-2101 2023 Condition During our audit, we examined four haphazardly selected cash disbursements and identified an instance totaling approximately $60,000 in which the time elapsing between the receipt of the federal cash draw and the disbursement to vendor was greater than 45 days. For this instance, the time elapsed was 229 days. While the expenditures were allowable costs under the master cooperative agreement, the State did not disburse these federal advances within National Guard Bureau requirements. Corrective Action Plan HCATT will continue in the management, validation, and process of invoices in close coordination with the 154th Wing, United States Property and Fiscal Office, and contractors as directed by NGR 5-1. HCATT had previously established internal procedures which included regularly scheduled meetings with the 154th Wing in which all parties ensured invoiced tasks were completed per contract, that disbursements were made from the appropriate agreement, and federal cash management process were initiated. We will continue with those procedures. As mentioned in the finding, the draw was done by the State Department of Defense and then transferred to HTDC. HCATT will work with the State Department of Defense on synchronizing our efforts with the National Guard Bureau. Person Responsible David Molinaro, HCATT Manager Anticipated Date of Completion March 17, 2025

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Finding 540509 (2024-005)

Material Weakness 2024

State of Hawaii, Department of Accounting and General Services

HI

Cash Management Subrecipient Monitoring Allowable Costs / Cost Principles

Finding No: 2024 005 ALN No.: 10.179 Program Title: Micro Grants for Food Security Program Grant Award No.: AM200100XXXXG132 2020 21MGFSPHI1003-00 2021 AM22MGFSPHI1007-04 2022 23MGFSPHI1011-00 2023 Condition The audit identified 25 instances totaling $55,000 where grantee disbursements were not mad...

Finding No: 2024 005 ALN No.: 10.179 Program Title: Micro Grants for Food Security Program Grant Award No.: AM200100XXXXG132 2020 21MGFSPHI1003-00 2021 AM22MGFSPHI1007-04 2022 23MGFSPHI1011-00 2023 Condition The audit identified 25 instances totaling $55,000 where grantee disbursements were not made as soon as administratively possible after the drawdown of Federal Funds. Audit staff determined 25 days to be a reasonable period to disburse cash after drawdown from the Federal Government. Corrective Action Plan Concur. The Hawaii Department of Agriculture (HDOA) will change administrative procedures for disbursement of Federal funds under the Micro Grants for Food Security Program. Going forward, HDOA will process the grant contracts and payments in batches of roughly 100 micro grants per month. Federal Drawdown will not occur until the full batch of 100 contracts have been executed. HDOA fiscal staff will then expedite the payment process to ensure conformity with the 25 day disbursement timeline. Person Responsible Brendan Akamu, Market Development Branch Manager Anticipated Date of Completion The updated work process will be implemented in April 2025. The first batch of grant contracts and payments for the 2023 Fiscal year awards are scheduled for April 2025.

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Corrective Action Plans

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