Corrective Action Plans

Finding 562185 (2024-004)

Significant Deficiency 2024

LA

Special Tests & Provisions Subrecipient Monitoring Cash Management

2024-004 Education Stabilization Fund – COVID 19 – Assistance Listing No. 84.425, Special Tests & Provisions – Davis-Bacon Act RECOMMENDATION: The School Board should take the necessary steps to ensure that staff are appropriately trained and contractor payrolls are monitored timely. Corrective Acti...

2024-004 Education Stabilization Fund – COVID 19 – Assistance Listing No. 84.425, Special Tests & Provisions – Davis-Bacon Act RECOMMENDATION: The School Board should take the necessary steps to ensure that staff are appropriately trained and contractor payrolls are monitored timely. Corrective Action Plan: The School System’s grant administration team will complete the necessary training related to Davis-Bacon to ensure that contractors are in compliance with the Davis Bacon Act. Anticipated Completion Date: June 30, 2025

View Audit 357791

Finding 562139 (2024-007)

Material Weakness 2024

Los Angeles Chapter National Tooling & MacHining Association Training Centers Trust

CA

Cash Management

While HEERF funding will no longer be available in subsequent years, we recognize the importance of ensuring timely and compliant disbursement processes for all federal grants. To address this finding and prevent similar issues in future grant programs, the Institution has taken or will take the fol...

While HEERF funding will no longer be available in subsequent years, we recognize the importance of ensuring timely and compliant disbursement processes for all federal grants. To address this finding and prevent similar issues in future grant programs, the Institution has taken or will take the following corrective actions: 1. Internal Process Review: We are conducting a comprehensive review of our federal funds management processes, with a focus on cash drawdowns and disbursement timelines. 2. Grant Compliance Training: Staff responsible for federal grant administration will receive enhanced training on compliance requirements, including drawdown and disbursement timelines, to ensure all applicable deadlines are met. 3. Standard Operating Procedures (SOPs): We are developing and updating SOPs to document internal controls and step-by-step processes for managing federal grant funds, ensuring clarity and accountability at all levels. 4. Monitoring and Oversight: A structured internal monitoring process will be implemented to track disbursement deadlines and ensure timely distribution of student aid funds. 5. Cross-Functional Coordination: Financial Aid and Finance teams will collaborate more closely to streamline communication and execution of disbursements within required timeframes. Personnel Responsible for Implementation: Danielle Skinner Position of Responsible Personnel: President Expected Date of Implementation: Immediate

View Audit 357766

Finding 562082 (2024-004)

None 2024

City of Westbrook

MN

Procurement, Suspension & Debarment Allowable Costs / Cost Principles Cash Management

1. Explanation of Disagreement with Audit Finding There is no disagreement with the audit finding. 2. Actions Planned in Response to Finding: The City will create policies to be adopted by the Council. 3. Official Responsible for Ensuring CAP: Katie Steen, City Clerk, and Dan Joel, Superintendent of...

1. Explanation of Disagreement with Audit Finding There is no disagreement with the audit finding. 2. Actions Planned in Response to Finding: The City will create policies to be adopted by the Council. 3. Official Responsible for Ensuring CAP: Katie Steen, City Clerk, and Dan Joel, Superintendent of the Utilities, are the officials responsible for ensuring corrective action of the finding. 4. Planned Completion Date for CAP: The planned completion date is December 31, 2025. 5. Plan to Monitor Completion of CAP: The Council will be monitoring this corrective action plan.

View Audit 357712

Finding 562064 (2024-003)

Significant Deficiency 2024

La Casa De Buena Salud, Inc.

NM

Reporting Allowable Costs / Cost Principles Cash Management § 200.302 § 200.303 § 200.305

The reconciliation process implemented in Finding 2024-001 includes a formal method of matching drawdowns to allowable expenditures. Each grant will continue to be tracked in a separate cost center and La Casa will document the reconciled expenditures in the general ledger to amounts drawn from eac...

The reconciliation process implemented in Finding 2024-001 includes a formal method of matching drawdowns to allowable expenditures. Each grant will continue to be tracked in a separate cost center and La Casa will document the reconciled expenditures in the general ledger to amounts drawn from each grant. The monthly reconciliation will be reviewed by the CFO to ensure that revenue is recognized in accordance with ASC 958-605 and that federal expenditures reported on the SEFA and financial statements comply with 2 CFR §§200.302, 200.303, and 200.305. The CFO will utilize the reconciliations to prepare the SF-425 filings and confirm that cumulative drawdowns reconcile to allowable costs and recorded revenues. All supporting documentation will be retained electronically and included in monthly close procedures.

View Audit 357668

Finding 562058 (2024-001)

Significant Deficiency 2024

Project Vida

TX

Reporting Cash Management

Management’s view: Management adopted the recommendations from last fiscal year to record at the end of each month all grant receivables and other receivables, in accordance with the accrual basis of accounting. The organization has continued to see a growth in program complexity and activities. Thi...

Management’s view: Management adopted the recommendations from last fiscal year to record at the end of each month all grant receivables and other receivables, in accordance with the accrual basis of accounting. The organization has continued to see a growth in program complexity and activities. This procedure is more in line with the recommendations of the auditors. In response to this increase in complexity, Management has provided additional training of staff responsible for entering receivables in the General Ledger. Proposed corrective action: Management will review outstanding grant receivables and revenue accounts on a monthly basis in detail, which includes ensuring that the date of the receivable corresponds to the date the reimbursement submitted, as well as to ensure that the correct payer source codes are reflected in the finance system. Any discrepancies found during the review should be documented through a journal entry. Management will ensure the journal entry correction is done promptly and has resolved the discrepancy identified. In addition, Management will name a responsible person that will oversee this internal control each month and will incorporate the review and adjustments needed as part of the monthly accounting process. To ensure the accuracy of accounts receivable, management will conduct monthly reviews of outstanding receivables with each responsible Program Director and will investigate all receivables outstanding for more than ninety days. Last, Management will review outstanding receivables with the external auditor periodically, and at least once, during an interim date near the end of the fiscal year. Management continues to train additional staff, in order to assist with entering information into the General Ledger and will ensure the responsible individual for monitoring accounts receivable and approving proposed adjustments, is overseeing this internal control process each month. Anticipated correction date: The completion of this process will be done by August 31, 2025. Responsible official: CEO, Tim Davenport-Herbst is responsible for these actions.

View Audit 357653

Finding 562030 (2024-001)

Significant Deficiency 2024

Fife School District No.417

WA

School Nutrition Programs Subrecipient Monitoring Cash Management

Finding ref number: 2024-001 Finding caption: The District did not have adequate internal controls for ensuring compliance with federal eligibility and paid lunch equity requirements. Name, address, and telephone of Fife School District contact person: Dany Wanner, Business Services Director 1720 Oa...

Finding ref number: 2024-001 Finding caption: The District did not have adequate internal controls for ensuring compliance with federal eligibility and paid lunch equity requirements. Name, address, and telephone of Fife School District contact person: Dany Wanner, Business Services Director 1720 Oak St, Milton, WA 98354 (253) 517-1000 ext 29121 Corrective action the auditee plans to take in response to the finding: The Fife School District implemented the following to Ensure Adequate Internal Controls for Compliance with Federal Eligibility: The Business Services team and Nutrition Services staff have conducted a thorough review of the process of monthly paid lunch equity and modified its procedures including developing a checklist for the process to ensure that it is completed in a timely manner, signed/dated and saved both electronically and in hard copy on a shared district server folder. The Fife School District implemented the following to Ensure Adequate Internal Controls for the annual completion of the Paid Lunch Equity Tool. The Business Services team and Nutrition Services staff have conducted a thorough review of the process of completing both the PLE tool and GL 828 reconciliation and modified its procedures to ensure that it is completed, signed and saved both electronically and in hard copy on a shared district server folder. Further, the Business Services team and Nutrition Services staff have developed a checklist for the completion of the tool and the checking of the box that indicates that we will be opting not to increase meal prices, but instead to demonstrate using the GL 828 Reconciliation (signed and dated) that we have sufficient fund balance to offset the paid lunches and not utilize Federal funds, including calendar reminders and a shared Google Drive to hold all related documents and procedures. Anticipated date to complete the corrective action: 5/16/2025

View Audit 357621

Finding 561967 (2024-001)

Significant Deficiency 2024

Orting School District No. 344

WA

School Nutrition Programs Subrecipient Monitoring Cash Management

Finding ref number: 2024-001 Finding caption: The District did not have adequate internal controls for ensuring compliance with federal eligibility and paid lunch equity requirements. Name, address, and telephone of District contact person: Marci Bannan, Director of Business Services 121 Whitesell S...

Finding ref number: 2024-001 Finding caption: The District did not have adequate internal controls for ensuring compliance with federal eligibility and paid lunch equity requirements. Name, address, and telephone of District contact person: Marci Bannan, Director of Business Services 121 Whitesell St NE Orting, WA 98360 Corrective action the auditee plans to take in response to the finding: Eligibility: The District will document the internal controls that are in place for the monthly direct certification downloads and will print the certification download along with saving it electronically so that the files are easy to provide for future audits. Paid Lunch Equity: The District will document the internal controls that are in place for the completion of the PLE tool and ensure that the form is completed appropriately to show the continued use of nonfederal funds that are used yearly to fund the food service account fully. The District will also make sure to ‘print’ the GL 828 tab of the Fund Balance Reporting tool that is done yearly no later than November and sign it immediately after completion of the year end process to provide for the proof that the district has and continues to contribute sufficient nonfederal funds to the food service account. Anticipated date to complete the corrective action: July 31, 2025

View Audit 357586

Finding 561903 (2024-002)

Significant Deficiency 2024

Tompkins Cortland Community College

NY

Cash Management Reporting

Tompkins cortland community college will pass a resolution this summer requiring the comptroller's Department to reconcile monthly all accounts restricted and unrestricted in the college. ln turn the Comptroller and eventualty the vice president of Finance will be responsible to verify that the Ledg...

Tompkins cortland community college will pass a resolution this summer requiring the comptroller's Department to reconcile monthly all accounts restricted and unrestricted in the college. ln turn the Comptroller and eventualty the vice president of Finance will be responsible to verify that the Ledger and subsidiary Ledgers are correct and fairly state the accurate financial picture of the College. The assistant comptroller will be reconciling all the college operating, capital and restricted accounts. There will be a process giving them until the 15h of every month to reconcile to the college's General Ledger. The comptroller will be signing off at all the reconciliations and relevant entries ensuring accuracy and completenessof the accounting records for the college and between component units. The principal account clerk will be reconciling all the restricted and unrestricted accounts for the Foundation and the FSA. The employee will have until the 15th of every month to reconcile all the accounts including all the Foundaiion and FSA general Ledgers. The comptroller will review and sign off on all the reconciliations and relevant journal entries ensuring accuracy and completeness of the accounting records for the Foundation, FSA and between component units. component units.

View Audit 357552

Finding 561902 (2024-003)

Significant Deficiency 2024

Crossway Tower, Inc.

MA

Allowable Costs / Cost Principles Cash Management HUD Housing Programs

Planned Corrective Action: Monthly bank reconciliations and journal entries are completed by staff accountants and reviewed by the Chief Financial Officer. Historically, this process has not been documented as files are retained electronically and our accounting software, Resman, does not offer the ...

Planned Corrective Action: Monthly bank reconciliations and journal entries are completed by staff accountants and reviewed by the Chief Financial Officer. Historically, this process has not been documented as files are retained electronically and our accounting software, Resman, does not offer the functionality of in-system approvals. In 2025, we will implement a control to document this review process. Planned Implementation Date of Corrective Actions: Fiscal year ending 12/31/25

View Audit 357551

Finding 561900 (2024-003)

Significant Deficiency 2024

Lee Central Enriched Housing, Inc.

MA

Allowable Costs / Cost Principles Cash Management HUD Housing Programs

Planned Corrective Action: Monthly bank reconciliations and journal entries are completed by staff accountants and reviewed by the Chief Financial Officer. Historically, this process has not been documented as files are retained electronically and our accounting software, Resman, does not offer the ...

Planned Corrective Action: Monthly bank reconciliations and journal entries are completed by staff accountants and reviewed by the Chief Financial Officer. Historically, this process has not been documented as files are retained electronically and our accounting software, Resman, does not offer the functionality of in‐system approvals. In 2025, we will implement a control to document this review process. Planned Implementation Date of Corrective Action: Fiscal year ending 2025, we will implement a control to document this review process. Person Responsible for Corrective Action: Chief Financial Officer

View Audit 357550

Finding 561899 (2024-003)

Significant Deficiency 2024

Lee Elderly Housing Corporation

MA

Allowable Costs / Cost Principles Cash Management HUD Housing Programs

Planned Corrective Action: Monthly bank reconciliations and journal entries are completed by staff accountants and reviewed by the Chief Financial Officer. Historically, this process has not been documented as files are retained electronically and our accounting software, Resman, does not offer the ...

Planned Corrective Action: Monthly bank reconciliations and journal entries are completed by staff accountants and reviewed by the Chief Financial Officer. Historically, this process has not been documented as files are retained electronically and our accounting software, Resman, does not offer the functionality of in-system approvals. In 2025, we will implement a control to document this review process. Planned Implementation Date of Corrective Action: Fiscal year ending 2025, we will implement a control to document this review process. Person Responsible for Corrective Action: Chief Financial Officer

View Audit 357549

Finding 561898 (2024-003)

Significant Deficiency 2024

Christian Center Housing Corporation

MA

HUD Housing Programs Special Tests & Provisions Procurement, Suspension & Debarment

Planned Corrective Action: Monthly bank reconciliations and journal entries are completed by staff accountants and reviewed by the Chief Financial Officer. Historically, this process has not been documented as files are retained electronically and our accounting software, Resman, does not offer the ...

Planned Corrective Action: Monthly bank reconciliations and journal entries are completed by staff accountants and reviewed by the Chief Financial Officer. Historically, this process has not been documented as files are retained electronically and our accounting software, Resman, does not offer the functionality of in-system approvals. In 2025, we will implement a control to document this review process. Planned Implementation Date of Corrective Action: Fiscal year ending 2025, we will implement a control to document this review process. Person Responsible for Corrective Action: Chief Financial Officer

View Audit 357548

Finding 561896 (2024-003)

Significant Deficiency 2024

Holy Family Housing Corporation

MA

HUD Housing Programs Special Tests & Provisions Procurement, Suspension & Debarment

Planned Corrective Action: Monthly bank reconciliations and journal entries are completed by staff accountants and reviewed by the Chief Financial Officer. Historically, this process has not been documented as files are retained electronically and our accounting software, Resman, does not offer the ...

Planned Corrective Action: Monthly bank reconciliations and journal entries are completed by staff accountants and reviewed by the Chief Financial Officer. Historically, this process has not been documented as files are retained electronically and our accounting software, Resman, does not offer the functionality of in-system approvals. In 2025, we will implement a control to document this review process. Planned Implementation Date of Corrective Action: Fiscal year ending 2025, we will implement a control to document this review process.

View Audit 357547

Finding 561843 (2024-001)

Material Weakness 2024

Teachers College, Columbia University

NY

Student Financial Aid Reporting Subrecipient Monitoring

2024-001 Reporting (Financial) Student Financial Assistance Cluster: U.S. Department of Education Federal Direct Student Loans (ALN 84.268) Federal Grant Numbers and Years: P268K240460, (9/1/2023-8/31/2024) Finding Type: Material Weakness and Noncompliance Responsible personnel: Alyssa Timko, Di...

2024-001 Reporting (Financial) Student Financial Assistance Cluster: U.S. Department of Education Federal Direct Student Loans (ALN 84.268) Federal Grant Numbers and Years: P268K240460, (9/1/2023-8/31/2024) Finding Type: Material Weakness and Noncompliance Responsible personnel: Alyssa Timko, Director of Financial Aid, act2156@tc.columbia.edu, 212 678-3654 Corrective Action Plan: In September 2023, the College identified a technical issue with the manual reporting process for student loan disbursements to COD and determined the existing solution was only partially functioning at that time. While some loan activity was timely and properly reported to COD, other student disbursement transactions were stalled and reported after the 15-calendar day requirement. At that time, the College’s ERP, Banner, job submission process for disbursement reporting to COD was manually initiated by the Office of Financial Aid. The resulting reports were then uploaded through the DOE’s EDconnect, a Windows based software application, using WinSCP file transfer (the same process was used for return files from COD). After an evaluation, it was determined that a new solution and process was required to ensure proper, complete and timely reporting under the regulations. The reporting process was redesigned in October 2023 as part of a plan to automate loan origination and now functions through Automic, a workload automation software. Instead of manually generated files and upload / receipt through EDconnect, student loan disbursement records are now automated to/from COD using TDClient, which is a command software for sending and receiving student aid related information through the DOE’s Student Aid Internet Gateway (SAIG). The new process regularly transfers loan disbursement data to COD. However, the College also determined that a prescheduled pause in the Automic loan origination process at the end of the fiscal year 2024 academic year (in August 2024), which was established in accordance with the regulations, also inadvertently paused loan disbursement reporting and resulted in late submissions. The Office of Financial Aid has also remedied this issue by adding non-standard reporting days to the standard calendar. Along with more frequent and recurring reconciliations of Banner to COD loan disbursement data and ensuring the continuation of disbursement reporting after loan originations are paused at the end the academic year, the College does not anticipate any further late reporting matters and expects all future disbursement data to be reported within 15 calendar days.

View Audit 357504

Finding 561760 (2024-002)

Significant Deficiency 2024

Altarum Institute and Subsidiaries

MI

Questioned Costs Allowable Costs / Cost Principles Internal Control / Segregation of Duties

2024-002 – Indirect Costs Auditor Description of Condition and Effect. During our testing of indirect cost rates we observed that overhead was included in the Institute's indirect cost rate reimbursement calculation for one out of the Institute's three indirect cost calculations (the general and adm...

2024-002 – Indirect Costs Auditor Description of Condition and Effect. During our testing of indirect cost rates we observed that overhead was included in the Institute's indirect cost rate reimbursement calculation for one out of the Institute's three indirect cost calculations (the general and administrative calculation). As a result of this condition, the Institute did not fully comply with the Uniform Guidance applicable to the above noted grants. Auditor Recommendation. We recommend that the Institute review its policies and procedures in regard to the review of the calculation of indirect costs reimbursement to ensure that it conforms with the approved indirect cost rate and all provisions of the indirect cost rate approved by the Institute's cognizant agency. Corrective Action. Altarum’s indirect rate agreement with the Federal government is a provisional rate agreement, meaning the rates and their bases are not yet finalized. Under FAR Subpart 42.7, Altarum has the flexibility to propose the rates, and their bases provided we comply with the FAR. The following FAR clauses address flexibility:  Indirect Cost Rates: Under FAR 42.703-1, companies must accumulate indirect costs in logical groupings and allocate them using a base that reflects the benefits accruing to cost objectives. This ensures fairness and consistency in cost allocation.  Flexibility: FAR Subpart 42.7 provides flexibility in cost allocation methods, particularly under FAR 42.705 (Final Indirect Cost Rates). This section allows companies to adjust indirect cost allocation methods in response to significant changes in business operations or other relevant circumstances.  Certification: The requirement for contractors to certify their indirect cost proposals is detailed in FAR 42.703-2 (Certificate of Indirect Costs). This ensures compliance with applicable regulations and establishes the validity of the cost proposals. In June 2024, Altarum submitted a certified indirect rate proposal utilizing the total cost input method, excluding subrecipients over $25,000, as the base for our general and administrative (G&A) cost pool. This base was chosen to reflect the benefits accruing to those cost objectives. The accompanying proposed rate Altarum submitted reflected this calculation. Our provisional G&A rate was approved at the percentage that included overhead in our G&A base. However, the narrative in our provisional nonprofit rate agreement did not accurately reflect our proposal, as it inadvertently included the term "total direct costs" when describing the base for the G&A rate. For the fiscal year 2024, Altarum incorporated overhead costs into the base of the associated general and administrative cost rate as certified in our proposal to the Federal government in June 2024. To address the discrepancy between the provisional rate agreement, our proposal, and our system, we sought guidance from our cognizant agent at US Department of Health and Human Services (HHS). In discussions, Altarum was advised to update the allocation base as part of our next proposal package submission, June 2025. Additionally, we were advised that the reviewer from HHS will update the allocation base when finalizing the indirect cost rates for fiscal year 2024. Altarum will follow the advice of HHS and resolve the discrepancies in the rate agreement later this year. Responsible Person. Denise Sturm Anticipated Completion Date. 6/30/2025 – submissions to Federal government; final resolution subject to DHHS's review of our submissions.

View Audit 357424 Questioned Costs: $1

Finding 561748 (2024-001)

None 2024

Aroostook Mental Health Services, Inc.

ME

Cash Management

2024-001 Other Matter – Financial assistance listing number 93.912 – HRSA ACORP – Cash management Name of contact person: Christy Daggett Corrective Action: The Organization will ensure that future grant draws through the payment management system are performed accurately. Additional training ...

2024-001 Other Matter – Financial assistance listing number 93.912 – HRSA ACORP – Cash management Name of contact person: Christy Daggett Corrective Action: The Organization will ensure that future grant draws through the payment management system are performed accurately. Additional training will be provided to staff to deter errors from occurring in the future. Proposed implementation date: The corrective action plan will be implemented immediately.

View Audit 357393

Finding 561708 (2024-001)

Material Weakness 2024

Global Community Charter School

NY

School Nutrition Programs Cash Management Material Weakness

Global Community Charter School recognizes the management deficiencies cited by MMB+CO as finding 2024-001 in the FY2024 Audited Financial Statements. The following procedures have been implemented to mitigate and/or eliminate further process deficiencies. ● Beginning in August 2024, all participati...

Global Community Charter School recognizes the management deficiencies cited by MMB+CO as finding 2024-001 in the FY2024 Audited Financial Statements. The following procedures have been implemented to mitigate and/or eliminate further process deficiencies. ● Beginning in August 2024, all participating operations staff were retrained and given clarity on the importance of accurate and timely count management. ● At the elementary and middle school, one operations person has been designated as responsible for the monthly count. This individual coordinates all personnel involved in the process and is further responsible for ensuring coverage and accuracy when personnel are shifted around or absent. ● This designated individual also meets with the food preparer weekly to check the provider’s meal count against the school's. ● The designated individual also annotates the weekly/monthly count on a digital worksheet that compares the food providers' count against the schools. ● The Director of Finance audits the worksheet monthly for “reasonability”, accuracy, and consistency. ● Post-audit, the CFO does a final review. If anything anomalous or inconsistent is found, the team will meet to confirm if the changes reflect actual student utilization. If no changes are required, the CFO takes the monthly data and uploads it to the template provided by the NSLP consultant who submits the voucher. In addition to the process outlined above, an ongoing review of student utilization is being conducted to reduce the waste and cost to the school created when too many meals are produced and students do not consume them. This process should allow meals produced to mirror consumption going forward. We implemented this process in mid-August and expect positive realignment and consistency from November 2024 onward.

View Audit 357332

Finding 561679 (2024-004)

Significant Deficiency 2024

Jericho Road Ministries D/b/a Jericho Road Community Health Center

NY

Cash Management

During the fiscal year June 30, 2025, a process for drawing down federal funds was established. Veronica Koller, CFO requests approval for drawdown of the funds from either the COO, Magdalena Nichols or Controller, Hannah Pawlowski. Once approval is provided, the CFO draws down the federal funds.

View Audit 357305

Finding 561662 (2024-001)

Significant Deficiency 2024

Capital Region Transportation Planning Agency

FL

Matching / Level of Effort / Earmarking Allowable Costs / Cost Principles Cash Management

The City of Tallahassee is committed to ensuring compliance with all grant requirements associated with the awards received from both Federal and State of Florida partners. The City was awarded $15 million from the Federal Transit Authority and $1 million from the State of Florida for the construc...

The City of Tallahassee is committed to ensuring compliance with all grant requirements associated with the awards received from both Federal and State of Florida partners. The City was awarded $15 million from the Federal Transit Authority and $1 million from the State of Florida for the construction of the Southside Transit Center (STC). An additional $4 million was included from local sources. The issue noted came to light when the State directed City staff to request reimbursement at 5% of total costs rather than the original method of direct charging certain costs. As a result, the allocations across funding sources were updated to reflect this change in methodology. City staff immediately began the recalculation of expenditures and future budget allocations tasks and is in the process of adjusting the grant project accounting. The 3/31/25 quarterly performance and financial reports will reflect the adjustments. The next draw down of funds will include adjustments for the over reimbursement that occurred as of 9/30/24. We anticipate this process to completed by 5/30/25. Finally, the Grants Management Division has added steps to its business process to ensure compliance with match requirements and staff have begun implementation of the new process.

View Audit 357287

Finding 561652 (2024-004)

Significant Deficiency 2024

Lewis & Clark Community College District 536

IL

Cash Management Period of Performance

During fiscal year 2024, the College had two grant awards with Natural Resources Conservation Services (NRCS). The first grant award was from September 1, 2022 through August 31, 2023. The second grant award was from the date of final contract signature which was September 29, 2023 through September...

During fiscal year 2024, the College had two grant awards with Natural Resources Conservation Services (NRCS). The first grant award was from September 1, 2022 through August 31, 2023. The second grant award was from the date of final contract signature which was September 29, 2023 through September 21, 2028. Due to the gap period between contracts, the September 2023 NRCS general ledger was cleared of any expenses. A grant program staff member attended a training in August 2023 and submitted for travel reimbursement in October 2023. Grant program staff members attended a conference in September 2023 and the registration fees were paid in October 2023. The travel reimbursement, conference registration fees and corresponding indirect costs were included in the October 2023 financial report submitted to NRCS for reimbursement. Once the error was discovered, the expenses were removed from the NRCS general ledger and charged to an ·appro pri at e account. An adjustment was made to reduce the expenses on the October 2024 financial report submitted to NRCS. The college recognizes the importance of proper reporting for financial reports and reimbursement requests and that those reports should only include costs that are incurred during the grant period. The grant finance team will work with grant program staff to implement a schedule that will help to ensure that goods, services and travel are completed during the grant term, that invoices are submitted in a timely manner and prior to grant end, and when possible, payment will be made for said items prior to the end of the grant term. The grant finance team will review expenses incurred during the grant term and immediately following the grant term to confirm expenses are being reported in the correct period for financial reporting and reimbursement requests. Person(s) Responsible: Carrie Patton, Jen Evans Timing for Implementation: Immediate

View Audit 357265

Finding 561597 (2024-005)

Significant Deficiency 2024

Universal Academy Charter School

MN

Internal Control / Segregation of Duties Cash Management Reporting § 200.328

SIGNIFICANT DEFICIENCY IN INTERNAL CONTROL OVER COMPLIANCE – PASSED THROUGH MINNESOTA DEPARTMENT OF EDUCATION – TITLE i GRANTS TO LOCAL EDUCATION AGENCIES FUNDS (FEDERAL ALN 84.010) 2024-005 Internal Control Over Compliance With Federal Reimbursement Submission Deadline Requirements Finding Summa...

SIGNIFICANT DEFICIENCY IN INTERNAL CONTROL OVER COMPLIANCE – PASSED THROUGH MINNESOTA DEPARTMENT OF EDUCATION – TITLE i GRANTS TO LOCAL EDUCATION AGENCIES FUNDS (FEDERAL ALN 84.010) 2024-005 Internal Control Over Compliance With Federal Reimbursement Submission Deadline Requirements Finding Summary 2 CFR § 200.328 requires the Academy to establish and maintain effective internal control over compliance with requirements applicable to federal program reporting, including reimbursement submission requirements applicable to Title I grants. During our audit, we noted the Academy did not have sufficient controls within its Title I federal program to ensure compliance with federal reporting requirements. Corrective Action Plan Actions Planned – The Academy is in the process of reviewing and updating its policies and procedures relating to reimbursement submission for its federal programs to ensure compliance with the Uniform Guidance in the future. The review of procedures will also include steps to ensure that academy personnel are following the requirements of the Uniform Guidance related to reimbursement submission requirements. Official Responsible – The Academy's Executive Director, Farhiya Einte. Planned Completion Date – June 30, 2025. Disagreement With or Explanation of Finding – The Academy agrees with this finding. Plan to Monitor – The School’s Executive Director, Farhiya Einte, will assure appropriate internal controls and procedures are updated and in place to ensure compliance with reimbursement submission requirements.

View Audit 357218

Finding 561595 (2024-004)

Significant Deficiency 2024

Universal Academy Charter School

MN

Internal Control / Segregation of Duties Cash Management School Nutrition Programs

SIGNIFICANT DEFICIENCY IN INTERNAL CONTROL OVER COMPLIANCE – PASSED THROUGH MINNESOTA DEPARTMENT OF EDUCATION – CHILD NUTRITION CLUSTER (FEDERAL ALN 10.553 AND 10.555) 2024-004 Internal Control Over Compliance With Federal Reimbursement Submission Deadline Requirements Finding Summary 7 CFR § 21...

SIGNIFICANT DEFICIENCY IN INTERNAL CONTROL OVER COMPLIANCE – PASSED THROUGH MINNESOTA DEPARTMENT OF EDUCATION – CHILD NUTRITION CLUSTER (FEDERAL ALN 10.553 AND 10.555) 2024-004 Internal Control Over Compliance With Federal Reimbursement Submission Deadline Requirements Finding Summary 7 CFR § 210.8 requires the Academy to establish and maintain effective internal control over compliance with requirements applicable to federal programs, including reimbursement submission requirements applicable to the child nutrition federal program. During our audit, we noted the Academy did not have sufficient controls in place within its child nutrition cluster federal program to ensure compliance with federal submission requirements related to claims for reimbursement. Corrective Action Plan Actions Planned – The Academy is in the process of reviewing and updating its policies and procedures relating to reimbursement submission for its federal programs to ensure compliance with the Uniform Guidance in the future. The review of procedures will also include steps to ensure that Academy personnel are following the requirements of the Uniform Guidance related to reimbursement submission requirements. Official Responsible – The Academy's Executive Director, Farhiya Einte. Planned Completion Date – June 30, 2025. Disagreement With or Explanation of Finding – The Academy agrees with this finding. Plan to Monitor – The Academy’s Executive Director, Farhiya Einte, will assure appropriate internal controls and procedures are updated and in place to ensure compliance with reimbursement submission requirements.

View Audit 357218

Finding 561540 (2024-004)

Material Weakness 2024

Dunseith Public School District No. 1

ND

Internal Control / Segregation of Duties Subrecipient Monitoring Cash Management

Contact Person Evan Peltier Planned Corrective Action Dunseith Public School Dist. #1 will implement the recommendation from Brady Martz. Planned Completion Date The planned completion date is June 30, 2025.

View Audit 357152

Finding 561523 (2024-001)

None 2024

Cedar Tree Public Charter School

DC

Cash Management Reporting

Corrective Action: Contact Name of Responsible Person: Usha Jayanthi. The school staff involved were given training to keep proper record keeping procedures and submission of reimbursable meal counts. We have made the following employees responsible for keeping records stored for the next three (3)...

Corrective Action: Contact Name of Responsible Person: Usha Jayanthi. The school staff involved were given training to keep proper record keeping procedures and submission of reimbursable meal counts. We have made the following employees responsible for keeping records stored for the next three (3) years. a. Jim Kim-Food service manager-Keep track of the production records; b. Stephanie Foo-Aftercare Supervisor-Keep track of the actual snack count of riembursable snack count; c. Usha Jayanthi-CFO-verify the snack count and submits reimbursement reports. Proposed Completion Date-Correction action was completed on January 15, 2024.

View Audit 357139

Finding 561523 (2024-001)

None 2024

Cedar Tree Public Charter School

DC

Cash Management Reporting

Corrective Action: Contact Name of Responsible Person: Usha Jayanthi. The school staff involved were given training to keep proper record keeping procedures and submission of reimbursable meal counts. We have made the following employees responsible for keeping records stored for the next three (3)...

Corrective Action: Contact Name of Responsible Person: Usha Jayanthi. The school staff involved were given training to keep proper record keeping procedures and submission of reimbursable meal counts. We have made the following employees responsible for keeping records stored for the next three (3) years. a. Jim Kim-Food service manager-Keep track of the production records; b. Stephanie Foo-Aftercare Supervisor-Keep track of the actual snack count of riembursable snack count; c. Usha Jayanthi-CFO-verify the snack count and submits reimbursement reports. Proposed Completion Date-Correction action was completed on January 15, 2024

View Audit 357139

Corrective Action Plans

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