Corrective Action Plans

Browse how organizations respond to audit findings

Total CAPs
64,113
In database
Filtered Results
6,333
Matching current filters
Showing Page
5 of 254
25 per page

Filters

Clear
Active filters: Cash Management
FINDING 2025-011 Finding Subject: Gaining Early Awareness and Readiness for Undergraduate Programs – Internal Controls Contact Person Responsible for Corrective Action: Chad Addie, Ahnaf Tahmid & Marlaina Johns Contact Phone Number and Email Address: 574-393-6000, caddie@sbcsc.k12.in.us, atahmid@sbc...
FINDING 2025-011 Finding Subject: Gaining Early Awareness and Readiness for Undergraduate Programs – Internal Controls Contact Person Responsible for Corrective Action: Chad Addie, Ahnaf Tahmid & Marlaina Johns Contact Phone Number and Email Address: 574-393-6000, caddie@sbcsc.k12.in.us, atahmid@sbcsc.k12.in.us, mjohns2@sbcsc.k12.in.us Views of Responsible Officials: We concur with the finding Description of Corrective Action Plan: The Director of Federal Grants generates detailed expenditure and budget reports, filtering for new transactions since prior requests to ensure alignment before CFO review and submission. Added a dedicated supervisor review signature line on supporting document sheets to confirm approval Anticipated Completion Date: Completed by June 30, 2026
Golden West Humanitarian Foundation agrees with the finding and will implement written cash management procedures designed to ensure compliance with the requirements applicable to interest earned on Federal advance payments. The Foundation will establish procedures to identify Federal advance balanc...
Golden West Humanitarian Foundation agrees with the finding and will implement written cash management procedures designed to ensure compliance with the requirements applicable to interest earned on Federal advance payments. The Foundation will establish procedures to identify Federal advance balances by Federal award and applicable bank or investment account and to calculate the amount of interest earned on those balances. The calculation will be performed at least annually and more frequently when Federal advance balances are significant. As part of this process, the Foundation will determine the amount of interest earned on Federal funds that is subject to remittance after consideration of the annual amount permitted to be retained for administrative expenses. Any amount required to be remitted will be recorded as a payable at year-end and remitted to the Federal government through the applicable Federal payment system in accordance with Federal requirements. The Foundation has evaluated the interest earned on Federal advance balances during the year ended December 31, 2025 and determined the amount, required to be remitted to the Federal government. Any required liability will be recorded and amounts due will be remitted in accordance with applicable Federal requirements. Responsibility for preparing the interest calculation and related reconciliation will be assigned to Asia Johnson, Chief Compliance Officer. The calculation, related accounting entries, and evidence of any required remittance will be reviewed by and approved by an individual (or individuals) independent of the preparer.
2025-002 - Excess Drawdown of Federal Funds (Significant Deficiency and Other Matters) Federal Program Information: Type of Finding: Compliance Areas: Funding Agency: Title: FAL Number: Passthrough: Award Period: Significant Deficiency, Other Non-compliance Cash Management, Allowable Costs and Cost ...
2025-002 - Excess Drawdown of Federal Funds (Significant Deficiency and Other Matters) Federal Program Information: Type of Finding: Compliance Areas: Funding Agency: Title: FAL Number: Passthrough: Award Period: Significant Deficiency, Other Non-compliance Cash Management, Allowable Costs and Cost Reporting U.S. Department of Education Teacher Quality Partnership Grants 84.336S NIA 10/01/2024- 09/30/2025 Principles, and Criteria: Cash Management Although 2 CFR 200.305(b)(l ) permits the Foundation to draw down funds in advance, the entity utilizes a cost reimbursement approach for Federal funding. This practice ensures that funds are drawn only for immediate cash needs . 2 CFR 200.305(8)(1) Federal payment. Advance payments to a non-Federal entity must be limited to the minimum amounts needed and be timed to be in accordance with the actual, immediate cash requirements of the non-Federal entity in carrying out the purpose of the approved program or project. The timing and amount of advance payments must be as close as is administratively feasible to the actual disbursements by the non-Federal entity for direct program or projects costs and the proportionate share of any allowable indirect costs. Cost Principals and Reporting: The application of cost principles is governed by 2 CFR 200.400; specifically (b) the non-Federal entity assumes responsibility for administering Federal funds in a manner consistent with underly ing agreements, program objectives, and the terms and conditions of the Federal award. Condition: During our review of cash management procedures, we identified the following issue: • The Foundation drew down funds for the Teacher Quality Partnership Grants {TQP) prior to expenditures or when expenditures were not yet anticipated to be actu ally disbursed. o TQP Effective Educators grant - $771,222 o TQP Southwest grant - $572,672 Questioned Costs: None. The Foundation used all the funds drawn down according to the grant directives as it closed out the grant funds. All expenditures were in compliance with the stated objectives. Cause: During the beginning of the second Donald Trump administration, President Trump issued an executive order on January 20, 2025 that established the Department of Government Efficiency (DOGE). Individuals within the Employment and Training Administration (Budget and Management) of the DOL that administered our YouthBuild program and other similar programs encouraged the Foundation to draw down the funds on all grants as they believed the grants were going to be shut down soon by DOGE, but they wanted those entities that were already committed to staffing and programs to be able to complete the year. The Foundation did draw down funds in order to complete the commitments. Effect: The Foundation was not in compliance with 2 CFR200.305(b)(l) and 2 CFR200.400(b) by drawing down funds prior to actual expenditures. Auditor's Recommendation: We recommend that the Foundation not draw down funds prior to incurring actual expenditures or until expenditures are expected in the very near future. Grant program personnel do not have the authority to waive 2 CFR requirements or grant requirements, even in unusual situations like the DOGE occurrence. Responsible official's view: • Specific corrective action plan for the finding: Three Rivers Education Foundation's CEO, Dr. Linda J Coy will ensure that all drawdowns follow appropriate timeframes as required. TREF has already implemented this longstanding practice. The action described in this "Significant Deficiency" came about because of extenuating circumstances and advice provided from the federal government. We were assisted with disbursements by the Federal Program Officer for the TQP programs. • Timeline for completion of corrective action plan: The corrective plan has been implemented as per Dr. Linda J. Coy, CEO for Three Rivers Education Foundation as of September 29, 2026. • Employee positions(s) responsible for meeting the timeline: Dr. Linda J Coy, Executive Director and James L. Coy, Chief Financial Officer
Name of Contact Person Responsible for Corrective Action: Catherine Schaaf, Executive Director Corrective Action Planned ECO is currently reviewing and revising its Financial Procedures Manual to ensure written accounting and administrative policies and procedures reflect current operations and appl...
Name of Contact Person Responsible for Corrective Action: Catherine Schaaf, Executive Director Corrective Action Planned ECO is currently reviewing and revising its Financial Procedures Manual to ensure written accounting and administrative policies and procedures reflect current operations and applicable Federal requirements. The revised manual will clearly document financial procedures, internal controls, responsibilities, and methodologies for allocating indirect, shared, personnel, and other costs to applicable funding sources. The HR & Finance Director will be responsible for maintaining and implementing the Financial Procedures Manual, ensuring appropriate financial documentation is maintained, and communicating applicable procedures to staff. The Operations Director will monitor implementation of and compliance with established procedures and assist in identifying areas requiring corrective action. The Executive Director will provide overall oversight and ensure identified issues are addressed in a timely manner. ECO will periodically review and update the Financial Procedures Manual to ensure policies and procedures remain appropriate for current operations and applicable requirements. Changes to established financial procedures or allocation methodologies will be documented and approved prior to implementation. Anticipated Completion Date December 31, 2026
Management acknowledges the finding related to the timing of federal cash drawdowns. The January 2025 drawdowns occurred during a period of significant uncertainty regarding federal funding and potential changes in federal funding availability. Based upon guidance and recommendations received from t...
Management acknowledges the finding related to the timing of federal cash drawdowns. The January 2025 drawdowns occurred during a period of significant uncertainty regarding federal funding and potential changes in federal funding availability. Based upon guidance and recommendations received from the Michigan Primary Care Association during this period, the Organization drew available federal funding to mitigate the potential risk of disruption in access to awarded funds. This action was specific to the circumstances and federal funding environment that existed during 2025 and was not the Organization's standard cash management practice. Management recognizes the importance of ensuring that federal drawdowns are aligned with immediate cash requirements and applicable federal cash management requirements. The Organization has subsequently strengthened its federal drawdown procedures. Grant drawdowns are reconciled to eligible expenditures and the general ledger, supporting documentation is maintained electronically, and additional management review has been incorporated into the process. The Chief Financial Officer will continue monitoring federal cash management procedures to ensure future drawdowns are appropriately supported, documented, and timed in accordance with applicable federal requirements.
Finding 1238695 (2025-002)
Material Weakness 2025
Finding 2025-002 Cash Management Contact Person: Tracy Carr, Rajee Rao Management Response: We agree with the auditors’ comments and the following action plan was taken last year to implement internal control procedures to allow for timely reporting: A grant reporting schedule was developed and has ...
Finding 2025-002 Cash Management Contact Person: Tracy Carr, Rajee Rao Management Response: We agree with the auditors’ comments and the following action plan was taken last year to implement internal control procedures to allow for timely reporting: A grant reporting schedule was developed and has been followed since June 2025 which has enabled the submission of the monthly grant reimbursement reports to be filed by the due date since July 2025. It has required a group effort by the entire staff and the individual members of the finance team in the responsibilities to meet the deadline. The continued use of this schedule has proven to keep the process on track and allow the organization to adhere to the grant deadlines. Completion Date: Beginning July 1, 2025 and thereafter
The Authority acknowledges the deficiencies identified in the Public Housing Capital Fund Program. The majority of the questioned costs originated before 2024 under prior management. The primary issue was the failure to identify and document the specific property to which each disbursement related. ...
The Authority acknowledges the deficiencies identified in the Public Housing Capital Fund Program. The majority of the questioned costs originated before 2024 under prior management. The primary issue was the failure to identify and document the specific property to which each disbursement related. The Authority will strengthen its Capital Fund cash management procedures, including property-level coding and supporting documentation for each disbursement, periodic reconciliation of grant drawdowns to eligible expenditures by property, and supervisory review. Staff will be trained on these procedures to ensure compliance with federal regulations. Dexter Brady, Interim Executive Director, is the responsible official and this will be completed by December 31, 2026.
During fiscal year 2025 the Town had not yet consolidated all federally required grant administration practices and procedures into a comprehensive written federal grant policy. The Town did, however, maintain policies and procedures applicable to grant-funded activities, including a Procurement Pol...
During fiscal year 2025 the Town had not yet consolidated all federally required grant administration practices and procedures into a comprehensive written federal grant policy. The Town did, however, maintain policies and procedures applicable to grant-funded activities, including a Procurement Policy effective January 1, 2025 that applied regardless of funding source and addressed grant-funded purchases, procurement, conflicts of interest, record retention, and compliance with grant-specific requirements. The Town was first formally advised of the need for additional comprehensive written federal grant policies and procedures in connection with the audit of its 2024 federal awards, which was conducted in late 2025. Once the finding was communicated, management responded as soon as practicable by developing a comprehensive Grants, Donations & Fundraising Policy incorporating the requirements of 2 CFR Part 200. The policy was adopted by the Board of Selectmen on March 31, 2026 and became effective April 1, 2026. Corrective action has been completed through adoption and implementation of this policy. Management also notes that the 2025 audit reported no questioned costs associated with this finding, identified no material weaknesses in internal control over the major federal program, and resulted in an unmodified opinion that the Town complied, in all material respects, with the applicable compliance requirements. Planned Implementation Date of Corrective Action: Occurred on April 1, 2026 Person Responsible for Corrective Action: Tammy Penny, Finance Direct & Assistant Town Administrator
Standard written sign-off (signature or initials and date) on every reimbursement request before submission, retained in the grant file; requests not submitted without it; emailed approvals filed with the request. Quarterly spot-check of a sample of requests by [independent reviewer], with results d...
Standard written sign-off (signature or initials and date) on every reimbursement request before submission, retained in the grant file; requests not submitted without it; emailed approvals filed with the request. Quarterly spot-check of a sample of requests by [independent reviewer], with results documented. Contact person, Myrna A. Young, Financial Manager (sign off and filing), independent reviewer and spot check by accountant, anticipated completion October 31, 2026, with first spot check Q4 2026.
Type of Finding: Significant Deficiency in Internal Control Over Compliance – Cash Management and Reporting Recommendation: The Organization should formalize and consistently apply its review and approval controls over drawdown requests and grant reports. Management should review all submissions pri...
Type of Finding: Significant Deficiency in Internal Control Over Compliance – Cash Management and Reporting Recommendation: The Organization should formalize and consistently apply its review and approval controls over drawdown requests and grant reports. Management should review all submissions prior to filing and maintain documentation evidencing the review and approval performed. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: This finding is a repeat of prior-year finding 2024-002. The Organization implemented its documented review and approval process over federal drawdown requests in September 2025. As noted in the finding, the two drawdown requests without documented review were submitted prior to that implementation, and the remaining drawdown requests tested included documented review and approval. Building on the corrective action plan submitted for fiscal year 2024, the Organization has taken the following corrective actions: ● Beginning in September 2025, the Organization implemented a documented two-level review and approval process for all federal drawdown requests. The preparer compiles the supporting documentation, and the Operations Director reviews the request and provides written approval prior to submission. ● Documented management review and approval has been extended to ETA-9130 financial reports, which are reviewed and approved by the Operations Director prior to filing. ● The Organization's Cash Management Policy was formally updated, effective March 3, 2026, as part of the corrective action plan submitted to and approved by the U.S. Department of Labor. The policy requires written management approval prior to submission of any drawdown request, documented management review of ETA-9130 financial reports prior to filing, and retention of all approval evidence in the electronic grant file, memorializing the drawdown review procedures in practice since September 2025. ● No drawdown request or financial report is submitted until the Operations Director's written approval has been received and saved to the electronic grant file, so evidence of review and approval is retained for every submission. ● The Operations Director will conduct quarterly internal reviews to ensure this process is being followed. The drawdown review and approval process has been in practice since September 2025, and the review and approval requirements for drawdown requests and financial reports were formally documented in policy effective March 3, 2026. These controls continue to be monitored on an ongoing basis to prevent recurrence. Name(s) of contact person(s) responsible for corrective action: Cory Finley, Operations Director, with oversight by Brandi Jahnke, Chief Executive Officer Planned completion date for corrective action plan: Drawdown review and approval implemented in practice as of September 2025; review and approval requirements formalized in written policy effective March 3, 2026. The Operations Director will conduct quarterly internal reviews on an ongoing basis. If the U.S. Department of Labor has questions regarding this plan, please call Brandi Jahnke at (816) 520-4404.
UNIFORM GUIDANCE AUDIT REPORTING REQUIREMENTS Federal Agency: Department of Transportation Federal Program: Formula Grants for Rural Areas and Tribal Transit Program Assistance Listing Number: 20.509 Federal Award Identification Number and Year: MN-2020-020-01, MN-2023-045-00 Pass-Through Agency: Mi...
UNIFORM GUIDANCE AUDIT REPORTING REQUIREMENTS Federal Agency: Department of Transportation Federal Program: Formula Grants for Rural Areas and Tribal Transit Program Assistance Listing Number: 20.509 Federal Award Identification Number and Year: MN-2020-020-01, MN-2023-045-00 Pass-Through Agency: Minnesota Department of Transportation Pass-Through Number: MN-2020-020-01, MN-2023-045-00 Award Period: Year Ended December 31, 2025 Compliance Requirement: Cash Management Type of Finding: Material Weakness in Internal Controls over Compliance Recommendation: The deadline for filing an audit report with the Federal Clearinghouse is 30 days after receiving the audit report or 9 months after year-end, whichever occurs first. It is recommended that prior to year-end, the operation board annually approve an audit schedule timeline. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: The Transit Board will annually approve a schedule and timeline prior to year-end. In addition, the Transit Board has hired new external auditors who will have sufficient resources to complete the audit by the September 30, 2027 deadline for the December 31, 2026, audit. Name of the contact person responsible for corrective action: Kathy Schultz, Executive Director Planned completion date for corrective action plan: June 30, 2027
INTERNAL CONTROLS OVER CASH MANAGEMENT Federal Agency: Department of Transportation Federal Program: Formula Grants for Rural Areas and Tribal Transit Program Assistance Listing Number: 20.509 Federal Award Identification Number and Year: MN-2020-020-01 Pass-Through Agency: Minnesota Department of T...
INTERNAL CONTROLS OVER CASH MANAGEMENT Federal Agency: Department of Transportation Federal Program: Formula Grants for Rural Areas and Tribal Transit Program Assistance Listing Number: 20.509 Federal Award Identification Number and Year: MN-2020-020-01 Pass-Through Agency: Minnesota Department of Transportation Pass-Through Number: MN-2020-020-01, MN-2023-045-00 Award Period: Year Ended December 31, 2025 Compliance Requirement: Cash Management Type of Finding: Significant Deficiency in Internal Controls over Compliance Recommendation: It is recommended the Transit Board designate qualified personnel for conducting the quarterly reporting review. The review should be performed and documented. Formal procedures should be documented to ensure consistency and effectiveness of the quality review process. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: The Transit Board will continue to evaluate their internal staff capacity to determine if an internal control policy over cash management and other areas is beneficial. Name of the contact person responsible for corrective action: Kathy Schultz, Executive Director Planned completion date for corrective action plan: June 30, 2027
Management Response: Management and the outsourced accounting firm will establish documented procedures to reconcile personnel costs included in reimbursement requests to actual allowable compensation costs. When budgeted or agreed-upon rates are used for billing, the outsourced accounting firm will...
Management Response: Management and the outsourced accounting firm will establish documented procedures to reconcile personnel costs included in reimbursement requests to actual allowable compensation costs. When budgeted or agreed-upon rates are used for billing, the outsourced accounting firm will perform periodic after-the-fact reconciliations to actual payroll and time-and-effort support and will identify any differences requiring adjustment. Management will review and approve the reconciliation before submission of subsequent reimbursement requests and will promptly adjust future billings or arrange repayment with the pass-through entity, as appropriate. Evidence of reconciliation, review, approval, and resolution of any excess reimbursement will be retained in the grant files. Management will also ensure that agreed-upon billing rates are documented in writing and maintained with the award support. Proposed Completion Date – October 01, 2026 Contact – Ronny Sandoval, Board Chair Email: ronnys@irecusa.org
Management Response: Management will formalize procedures requiring documented review and approval of each cash drawdown or reimbursement submission before submission. The preparer, which is intended to be someone from management will work with the outsourced accounting firm to assemble the supporti...
Management Response: Management will formalize procedures requiring documented review and approval of each cash drawdown or reimbursement submission before submission. The preparer, which is intended to be someone from management will work with the outsourced accounting firm to assemble the supporting documentation, including the reimbursement request or drawdown support, related cost detail, and any applicable reconciliations. The Organization intends 0to have either the head of Finance or CEO review the submission for completeness, accuracy, and compliance with award requirements, and will document approval through sign-off, email approval, or other retained evidence prior to submission. Evidence of review and approval will be maintained with the supporting documentation for each submission. Management and the outsourced accounting firm will monitor compliance with this process through periodic review of grant submission files. Proposed Completion Date – October 01, 2026 Contact – Ronny Sandoval, Board Chair Email: ronnys@irecusa.org
2025-001 – Cash Management Corrective action plan: 1. Remittance of $116,558.82 to the Department of Health and Human Services Payment Management System. Completed September 21, 2026. 2. Adopt a written cash management and drawdown procedure as an amendment to NFEAIE’s Financial Management Policies ...
2025-001 – Cash Management Corrective action plan: 1. Remittance of $116,558.82 to the Department of Health and Human Services Payment Management System. Completed September 21, 2026. 2. Adopt a written cash management and drawdown procedure as an amendment to NFEAIE’s Financial Management Policies and Procedures Manual, requiring that each request be limited to disbursements expected within a defined period not to exceed 45 days, that the request identify the disbursements it supports, that the Chief Financial Officer (CFO) approve the request before submission, that the request and its supporting schedule be retained in the award file, and that any direction from an awarding agency to draw on a different schedule, or any award term authorizing a different payment basis, be documented in writing and retained in the award file. 3. Amend the manual to assign the CFO responsibility for computing interest earned on federal advances not less than semiannually, to prescribe the allocation of interest between federal and non-federal funds where accounts are commingled, to apply the $500 annual retention threshold, to require the amount payable to the federal government to be recorded in the period earned, and to require remittance through the Payment Management System. Interest on federal advances is currently being accrued as a payable in the period earned, as reflected in journal entry JE-INT-2026H1 recorded at June 30, 2026, and will continue to be recorded on at least a semi-annual basis. 4. Evaluate holding federal advances in a separate account so that an allocation between federal and non-federal funds is not required, and implement if operationally feasible. 5. Present both procedures to the Finance Committee and the Board of Directors for adoption at the Board's fourth quarter 2026 meeting. Personnel responsible for corrective action: Nicholas Cunningham, CFO Estimated corrective action completion date: December 31, 2026
Management Response and Action Taken: Drawdown with No Subsequent Payment • MHA will reconcile and match all end-of-year grant receivables with the invoices and subsequent payment in the ensuing year. • MHA will confirm payments are made timely, within the required three-day period. Duplicate Invoic...
Management Response and Action Taken: Drawdown with No Subsequent Payment • MHA will reconcile and match all end-of-year grant receivables with the invoices and subsequent payment in the ensuing year. • MHA will confirm payments are made timely, within the required three-day period. Duplicate Invoices • MHA will include a direct sign-off, date, and matching requirement on our invoice package that reconciles the draw down date, amount to the invoice payment amount, invoice number(s) and date paid. • MHA will log all invoices prior to drawdown to ensure any duplicate invoices are identified prior to drawdown. Name of Responsible Person(s): Ken Cross, Head of Finance Projected Completion Date: November 30, 2026
Management concurs with the finding, and the actions described below will be implemented. 1. Staff Training - Mandatory training will be implemented for Front Office, Billing, and Eligibility staff focusing on proper income verification, patient classification, documentation requirements, and accura...
Management concurs with the finding, and the actions described below will be implemented. 1. Staff Training - Mandatory training will be implemented for Front Office, Billing, and Eligibility staff focusing on proper income verification, patient classification, documentation requirements, and accurate application of the Sliding Fee Discount Program in accordance with HRSA Compliance Manual and HRSA Operational Site Visit Protocol. 2. Policy and Procedure Changes - The Sliding Fee Discount Program policies and procedures are being revised to provide clearer guidance regarding eligibility determination, income verification, discount application, annual renewals, staff responsibilities, and supervisory oversight. 3. Ongoing Monitoring - Quarterly compliance reviews are now conducted to monitor accurate application of the sliding fee schedule, completeness of supporting documentation, and compliance with established procedures. Corrective action and retraining are provided promptly when discrepancies are identified. Personnel responsible for implementation: Kristopher Zuniga Position of responsible personnel: Interim Chief Financial Officer Expected date of implementation: Implemented as of June 30, 2026.
The District acknowledges the auditor’s finding regarding the use of a cash advance during extreme and time sensitive circumstances. While cash advances are not part of the District’s normal financial practice, the situation required immediate action to ensure continuity of services funded by the fe...
The District acknowledges the auditor’s finding regarding the use of a cash advance during extreme and time sensitive circumstances. While cash advances are not part of the District’s normal financial practice, the situation required immediate action to ensure continuity of services funded by the federal granting agency. The District takes this recommendation very seriously. Throughout the period in which the cash advance remained unexpended, the District maintained complete documentation of all interest accrued, consistent with federal requirements. As soon as the auditors provided direction to remit interest exceeding the allowable $500 threshold, the District immediately issued a reimbursement check to the U.S. Department of Health and Human Services. This action was completed promptly to ensure full compliance with federal grant regulations. To prevent similar issues in the future, the District has formally adopted a written Cash Advance Policy. This policy establishes that cash advances are not standard procedure and may only be used under exceptional circumstances. It further requires monthly monitoring of any interest earned and mandates annual repayment of interest exceeding $500 to the granting agency. The policy ensures that any future need for a cash advance will be managed with clear controls, documented oversight, and strict adherence to federal guidelines. The District is committed to maintaining strong internal controls, complying with all federal grant requirements, and implementing corrective measures that strengthen financial stewardship moving forward.
2025-004 – Finding: Material Weakness in Internal Controls over Compliance: Cash Management Responsible official: Rose Braden, President Context and Cause: SEC did not document a separate review of cash draws by someone other than the party preparing and recording them. Recommendation: Management sh...
2025-004 – Finding: Material Weakness in Internal Controls over Compliance: Cash Management Responsible official: Rose Braden, President Context and Cause: SEC did not document a separate review of cash draws by someone other than the party preparing and recording them. Recommendation: Management should establish and implement procedures requiring cash draws to be reviewed and approved by an authorized individual, independent of the cash draw preparation function. The review should be documented. Corrective Action Planned: SEC will update processes and policies. A documented review process will be added to the cash draw process. Implementation date: December 31, 2026
2025-002: Cash Management – Research and Development Cluster Condition Funds were drawn down by the Institute in excess of the three-day period recommended by its funding agency, and did not minimize the time elapsing between the transfers of funds from the grantor to the issue of payment by the rec...
2025-002: Cash Management – Research and Development Cluster Condition Funds were drawn down by the Institute in excess of the three-day period recommended by its funding agency, and did not minimize the time elapsing between the transfers of funds from the grantor to the issue of payment by the recipient during the year ended December 31, 2025. Criteria Cash management under 2 CFR 215.22 states that payment methods shall minimize the time elapsing between the transfers of funds from the grantor to the issue of payment by the recipient. Cause The Institute’s preparation and review procedures over the draw-down of funds were insufficient to minimize the time elapsing between the transfers of funds from the grantor to the issue of payments by the Institute. Effect The Institute was not in compliance with the cash management compliance requirements stated in 2 CFR 215.22 during the year. Recommendation The Institute should improve policies and procedures regarding cash management. This should include the procedure for calculating the allowable cash draw for actual immediate cash needs for expenses to be paid within the three-day period, in order to minimize the time elapsing between the transfer of funds from the grantor to the issue of payment by the recipient to cover operating cash flow needs. Management Response Management acknowledges the finding and the management staff of the Institute take seriously the federal compliance requirements that apply to drawing funds from the DHHS Payment Management System. The Institute recognizes that it has drawn down excess funds. The Institute plans to improve policies and procedures for cash management in 2026 that will ensure the calculation for allowable cash draw for actual immediate cash needs is complete and accurate. Action Taken Scintillon plans to improve policies and procedures for cash management in 2026 that will ensure the calculation for allowable cash draw for actual immediate cash needs is complete and accurate.
2025-001: Cash Management: Federal Funds Drawn Down for Indirect Costs not yet Liquidated – Research and Development Cluster Condition During testing of cash management and indirect cost allocations, it was noted that approximately $900,000 in costs included in the Institute's indirect cost pool rem...
2025-001: Cash Management: Federal Funds Drawn Down for Indirect Costs not yet Liquidated – Research and Development Cluster Condition During testing of cash management and indirect cost allocations, it was noted that approximately $900,000 in costs included in the Institute's indirect cost pool remained recorded in accounts payable and had not been disbursed (liquidated) as of December 31, 2025. Despite these costs not yet being paid, the related federal funds had already been drawn down from the awarding agency. Criteria 2 CFR 200.305(b) requires non-federal entities operating under the advance payment method to minimize the time elapsing between the drawdown of federal funds and the disbursement of those funds for program purposes, and to limit draws to amounts needed for immediate cash requirements. Costs recorded in accounts payable but not yet paid do not represent a disbursement and therefore do not constitute an immediate cash need sufficient to support a drawdown. Additionally, 2 CFR 200.1 and 2 CFR 200.413/200.414 contemplate that costs included in the indirect cost pool and allocated to federal awards should reflect costs that are allowable, allocable, and appropriately recognized in the period in which they are incurred and settled in accordance with the Institute's established accounting practices and cash management controls. Cause The Institute's process for requesting federal drawdowns is based on costs recorded on an accrual basis (i.e., invoices entered into accounts payable and included in the indirect cost pool) rather than on the actual disbursement date. As a result, drawdown requests were not reconciled to actual cash outlays, allowing draws to occur before the related liabilities were paid. Effect The Institute drew down federal cash in advance of its immediate cash needs, resulting in excess federal funds on hand for a period during which $900,000 in related costs remained unpaid. This condition represents a noncompliance with federal cash management requirements and may expose the Institute to: • Liability for interest owed to the federal government under the Cash Management Improvement Act (CMIA) for the period the funds were held prior to disbursement; • Questioned costs to the extent the $900,000 was allocated through the indirect cost rate prior to liquidation; and • A control deficiency in the reconciliation between the accounts payable subledger, indirect cost pool, and cash drawdown requests. Recommendation We recommend that the Institute: 1. Revise its drawdown procedures so that federal cash requests are tied to actual disbursement dates rather than accrual/invoice entry into accounts payable; 2. Implement a monthly reconciliation between drawdown requests, the accounts payable aging report, and amounts included in the indirect cost pool; 3. Evaluate whether the $900,000 should be removed from the indirect cost pool for the affected period until liquidated, and adjust the indirect cost rate calculation accordingly if required; 4. Calculate potential interest liability under CMIA for the period excess federal cash was held and remit if applicable; and 5. Document and implement written cash management policies and procedures addressing the timing of drawdowns relative to disbursement. Management Response Management acknowledges the finding and the management staff of the Institute take seriously the federal compliance requirements that apply to drawing funds from the DHHS Payment Management System. The Institute recognizes that it has drawn down excess funds. The Institute plans to improve policies and procedures for cash management in 2026 that will ensure the calculation for allowable cash draw for actual immediate cash needs is complete and accurate. Action Taken Scintillon plans to improve policies and procedures for cash management in 2026 that will ensure the calculation for allowable cash draw for actual immediate cash needs is complete and accurate.
Condition The audit identified opportunities to strengthen documentation and monitoring controls related to federal grant compliance and Uniform Guidance requirements. Corrective Action Plan Management will enhance its federal awards compliance framework by implementing formal policies, assigning re...
Condition The audit identified opportunities to strengthen documentation and monitoring controls related to federal grant compliance and Uniform Guidance requirements. Corrective Action Plan Management will enhance its federal awards compliance framework by implementing formal policies, assigning responsibilities, improving monitoring procedures, and providing staff training. Actions include: • Develop and implement a Uniform Guidance Compliance Manual. • Update procurement policies to align with Uniform Guidance requirements. • Establish written policies for cash management, allowable costs, and federal grant documentation standards. • Develop and document a formal cost allocation methodology for shared program costs. • Assign and document federal award compliance responsibilities across accounting, grants management, and program staff. • Create a grant compliance monitoring checklist and implement quarterly documented compliance reviews. • Conduct Uniform Guidance training for accounting, grants, and program personnel. Responsible Official Chief Financial Officer and Grant Manager. Anticipated Completion Date October 31, 2026.
Condition: During our audit, we identified material errors in the financial records used to prepare and submit required federal financial reports (SF-425). Specifically, the Organization failed to record certain allowable expenditures, accrued liabilities, related grant receivables, and federal reve...
Condition: During our audit, we identified material errors in the financial records used to prepare and submit required federal financial reports (SF-425). Specifically, the Organization failed to record certain allowable expenditures, accrued liabilities, related grant receivables, and federal revenue associated with federal awards. As a result, expenditures reported on previously submitted SF-425 reports were materially understated. Additionally, the Organization did not submit drawdown requests for certain allowable expenditures incurred during the award period. Consequently, federal expenditures reported to the awarding agency did not agree to the underlying accounting records after correction of the identified errors.Recommendation: Management should strengthen controls over federal reporting by: • Implementing procedures to identify and record all allowable federal expenditures on a timely basis. • Performing periodic reconciliations between grant expenditures, reimbursement requests, general ledger balances, and SF-425 reports. • Establishing documented supervisory review of all federal reports prior to submission. • Monitoring unreimbursed grant expenditures and submitting reimbursement requests promptly. • Providing additional training to personnel responsible for federal grant accounting and reporting requirements. Action Taken: Since the date of receipt of the draft audit, Lanai Community Health Center has reviewed existing policies, specifically, “Federal Award Fund Management” and is committed to adhering to the procedures dictated therein which would address the recommendations above. Further, Lanai Community Health Center will enhance their policy to include a four-way reconciliation between grant expenditures, reimbursement requests, general ledger and SF-425 reports at least quarterly.
Franklin County Department of Job and Family Services will revise all subaward and contract boilerplates issued post July 1, 2026, to reflect that any deviations from the stated invoice submission schedule must be authorized in writing by FCDJFS. Additionally, internal process and training documents...
Franklin County Department of Job and Family Services will revise all subaward and contract boilerplates issued post July 1, 2026, to reflect that any deviations from the stated invoice submission schedule must be authorized in writing by FCDJFS. Additionally, internal process and training documents will be revised to align with this process. FCDJFS staff responsible for federal subawards and contracts will be trained on the new process by or before July 1, 2026.
Uniform Data System Reporting – Significant Deficiency 2025-003 Management agrees with the finding and will enhance procedures for the preparation and review of UDS reporting. Management will implement procedures and controls to ensure amounts reported are reviewed for compliance with UDS requiremen...
Uniform Data System Reporting – Significant Deficiency 2025-003 Management agrees with the finding and will enhance procedures for the preparation and review of UDS reporting. Management will implement procedures and controls to ensure amounts reported are reviewed for compliance with UDS requirements prior to submission.
« 1 3 4 6 7 254 »