Corrective Action Plans

Finding 517550 (2024-004)

Material Weakness 2024

MI

Cash Management Subrecipient Monitoring Material Weakness § 200.303

Although the Academy has internal controls in place for approvals on journal entries, payments, transfers, and other disbursements, we will improve our processes in the following ways: • We will ensure a signature and date are included on all paperwork needing review and approval going forward. If d...

Although the Academy has internal controls in place for approvals on journal entries, payments, transfers, and other disbursements, we will improve our processes in the following ways: • We will ensure a signature and date are included on all paperwork needing review and approval going forward. If documents are electronic, there must be an electronic signature with a time stamp included. • All Federal draws will have supporting documents that are reviewed, approved, and certified before funds are requested.

View Audit 335565

Finding 517538 (2024-005)

Material Weakness 2024

Lincoln-King Adams-Young Academy

MI

Cash Management Subrecipient Monitoring Material Weakness § 200.303

Although the Academy has internal controls in place for approvals on journal entries, payments, transfers, and other disbursements, we will improve our processes in the following ways: • We will ensure a signature and date are included on all paperwork needing review and approval going forward. If d...

Although the Academy has internal controls in place for approvals on journal entries, payments, transfers, and other disbursements, we will improve our processes in the following ways: • We will ensure a signature and date are included on all paperwork needing review and approval going forward. If documents are electronic, there must be an electronic signature with a time stamp included.

View Audit 335561

Finding 517526 (2024-004)

Material Weakness 2024

Lincoln-King Adams-Young Academy

MI

Cash Management Subrecipient Monitoring Material Weakness § 200.303

Although the Academy has internal controls in place for approvals on journal entries, payments, transfers, and other disbursements, we will improve our processes in the following ways: • We will ensure a signature and date are included on all paperwork needing review and approval going forward. If d...

Although the Academy has internal controls in place for approvals on journal entries, payments, transfers, and other disbursements, we will improve our processes in the following ways: • We will ensure a signature and date are included on all paperwork needing review and approval going forward. If documents are electronic, there must be an electronic signature with a time stamp included. • All Federal draws will have supporting documents that are reviewed, approved, and certified before funds are requested.

View Audit 335561

Finding 517442 (2024-001)

None 2024

School District of Milton

WI

Questioned Costs Subrecipient Monitoring Cash Management

Criteria: All services billed (SBS) must be identified in the students' IEP. Cost reimbursement is disallowed for Medicaid-coverable services not specified in the student's IEP. Condition: Two students from the auditor's sample were billed for nursing services that were not included in the students...

Criteria: All services billed (SBS) must be identified in the students' IEP. Cost reimbursement is disallowed for Medicaid-coverable services not specified in the student's IEP. Condition: Two students from the auditor's sample were billed for nursing services that were not included in the students' IEPs. Cause: The District billed for services that were not listed on the students' IEPs. Effect: Billing for services not listed on the IEP is not allowed and may result in improper use of federal funds. Questioned Costs: $1,670 Recommendation: The District should review procedures with the third party billing service to ensure there is proper communication regarding the allowed services being billed under IEPs. Additionally, the District should implement regular review of billed services to verify compliance with Medicaid requirements and ensure that all billed services are properly documented with students' IEPs. Grantee Response: The District will implement a process to verify all billed services are documented in the IEPs and provide training to staff to prevent future occurrences. Contact Person: Ross MacPherson Anticipated Completion: June 30, 2025

View Audit 335404 Questioned Costs: $1

Finding 517347 (2024-004)

Material Weakness 2024

Jackson Housing Commission

MI

HUD Housing Programs Procurement, Suspension & Debarment Allowable Costs / Cost Principles

ALN 14.872 – Public Housing Capital Fund Program – Lack of Data Available to Audit Federal Compliance Requirements Applicable to the Public Housing Capital Fund Program (Material Weakness, Potential Material Noncompliance) The PHA's management and staff continue to work to clear up prior year's comp...

ALN 14.872 – Public Housing Capital Fund Program – Lack of Data Available to Audit Federal Compliance Requirements Applicable to the Public Housing Capital Fund Program (Material Weakness, Potential Material Noncompliance) The PHA's management and staff continue to work to clear up prior year's compliance and supporting balance issues and expects to finalize these issues prior to March 31, 2025's submission of the unaudited financial data schedule. Person Responsible for Correction of Exception: Mr. Arturo Puckerin, Executive Director Projected Completion Date: March 31, 2025

View Audit 335346

Finding 517228 (2024-001)

Significant Deficiency 2024

Believe Schools, Inc. and Affiliate

IN

Subrecipient Monitoring Matching / Level of Effort / Earmarking Internal Control / Segregation of Duties § 200.334

To Whom it may concern: This document serves as the response to the 2023-2024 Financial Audit on behalf of BELIEVE Schools, Inc. We’ve identified and addressed the comments that were included in the Uniform Guidance Major Program Findings. Please review the corrective action items in response to the...

To Whom it may concern: This document serves as the response to the 2023-2024 Financial Audit on behalf of BELIEVE Schools, Inc. We’ve identified and addressed the comments that were included in the Uniform Guidance Major Program Findings. Please review the corrective action items in response to the Audit Results and Comments: Education Stabilization Fund (ESSER Grant): The school was unable to provide construction contracts to allow auditors to verify that the required Davis-Bacon Act wording was included. ● The Principal, Angel Jackson-Anderson, and Dean of Operations, Kayla Marshall, will ensure that the proper contracts are received and filed for all services conducted under ESSER grants. Child Nutrition: The school did not maintain tally sheets to support the number of meals served. ● The Dean of Operations, Kayla Marshall, will ensure that the proper physical files (tally sheets) are maintained and filed monthly, both in digital and paper form. The principal will review these files monthly to ensure documents are not lost or misplaced. If you have any questions, concerns, or comments, please feel free to contact me the school principal, Angel Jackson-Anderson, Aanderson@believeschools.org. Many thanks, Angel Jackson-Anderson Principal, BELIEVE Circle City High School Kayla Marshall Dean of Operations, BELIEVE Circle City High School www.believeschools.org @believeschoolsindy admin@believeschools.org 317-296-1954 Angel Jackson-Anderson 11/07/2024 02:25PM UTC

View Audit 335212

Finding 517178 (2024-002)

Significant Deficiency 2024

Catawba Valley Medical Center

NC

Cash Management

Approval of draw requests Recommendation: We recommend that the client keep physical sign of review or approval of the draw downs. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action planned in response to finding: There is no disagreement with ...

Approval of draw requests Recommendation: We recommend that the client keep physical sign of review or approval of the draw downs. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action planned in response to finding: There is no disagreement with the audit finding. Management will update the current review and approval process going forward. Name(s) of the contact person(s) responsible for corrective action: Pam Gallagher, CFO Planned completion date for corrective action plan: December 31, 2024

View Audit 335131

Finding 517155 (2024-001)

Significant Deficiency 2024

Sparta Area School District

WI

Cash Management

The District has obtained a signed and dated Form M-5 for the one student missing a signed form during testing and will review that M-5 forms are on file for all eligible students.

View Audit 335106

Finding 517103 (2024-001)

Significant Deficiency 2024

City of Clemson, South Carolina

SC

Cash Management Period of Performance Reporting

We will review the respective requirements to evaluate and determine the most efficient and effective solution to ensure all required reports are prepared, reviewed, and submitted within the COVID-19 State and Local Fiscal Recovery program’s required timeframes, and with the correct amounts.

View Audit 334979

Finding 517076 (2024-006)

Material Weakness 2024

City of Marine City

MI

Reporting Cash Management

Response: With the multiple award year of ARPA federal funds, and the addition of both Federal funds and state funds being awarded in multiple fiscal years for water project (DWSRF); the ability to track these funds and appropriately ledger/journal notes these expenditures were lacking. There was q...

Response: With the multiple award year of ARPA federal funds, and the addition of both Federal funds and state funds being awarded in multiple fiscal years for water project (DWSRF); the ability to track these funds and appropriately ledger/journal notes these expenditures were lacking. There was question as to if the amount the City's received was over the $750,000 threshold due to invoicing and payment dates being in multiple fiscal years. Going forward, the City is aware that the invoicing for the use of Federal Funds are the amounts to be looked at when deciding if a single audit needs to be completed. The City will make the auditors aware of the need for a single audit prior to them completing the normal annual audit each year it is necessary. Timeframe: Immediate. Contact Person Responsible for Corrective Action: Finance Director/Treasurer Katy Posey

View Audit 334957

Finding 516775 (2024-002)

Significant Deficiency 2024

Future Earth

CO

Questioned Costs Cash Management § 200.305

We were made aware of this issue by a desk review from the National Science Foundation and we have developed and implemented the following policies and internal controls to ensure grant funds are drawn down only after qualifying expenditures on a monthly basis.: If a grant is awarded on a cost-reim...

We were made aware of this issue by a desk review from the National Science Foundation and we have developed and implemented the following policies and internal controls to ensure grant funds are drawn down only after qualifying expenditures on a monthly basis.: If a grant is awarded on a cost-reimbursement basis, Future Earth draws down funds approximately once a month, unless the funder requires another way of accessing their funds. Funds are not drawn down until they have been spent. Before each drawdown, the third-party accounting firm will confirm the grant's cash balance. If there is a positive cash balance, the third-party accounting firm and COO will investigate the cause and correct it immediately. Grants with negative cash balance will be checked by third-party accounting firm to confirm that the grant was active when the expenses were incurred. The third-party account firm will provide a report of the associated transactions of the negative cash balance. The PI will confirm the report transactions and approve the drawdown request. Once approved, the third-party accounting firm will create an invoice and journal entry in the Quickbooks accounting system and the COO will request the drawdown from the funder.

View Audit 334729 Questioned Costs: $1

Finding 516717 (2024-005)

Material Weakness 2024

Bolivar-Richburg Central School District

NY

Cash Management Reporting

Bank Reconciliations, Interfund Balances Reconciliations and Other Balance Sheet Accounts Year ended June 30, 2024 Auditors’ Recommendation: We recommend that the District prepare bank reconciliations soon after the end of each month. As part of the reconciliation process the District’s general ledg...

Bank Reconciliations, Interfund Balances Reconciliations and Other Balance Sheet Accounts Year ended June 30, 2024 Auditors’ Recommendation: We recommend that the District prepare bank reconciliations soon after the end of each month. As part of the reconciliation process the District’s general ledger cash balances should be compared against the bank reconciliation, with any differences being immediately investigated. Once complete, the bank reconciliation should be reviewed by someone independent of the preparer. In addition, a worksheet should be developed which reconciles interfund balances on a monthly basis. Any differences in the reconciliation process should be immediately investigated. We recommend that asset and liability accounts be reconciled on a regular and routine basis. Further, reconciliations should be reviewed by management to ensure their accurate and timely completion. District’s Response: The School Business Administrator, Amy Ginnitti, and Treasurer, Hilary Hadden, will ensure that bank reconciliations are prepared in a timely manner and verify that balances within the general ledger cash accounts agree to the bank reconciliation, along with ensuring that interfund balances reconcile and that balance sheet asset and liabilities are reconciled to supporting documentation for the year ending June 30, 2025.

View Audit 334694

Finding 516699 (2024-002)

Material Weakness 2024

Verdugo Tower, Inc.

CA

Cash Management HUD Housing Programs

Reporting views of responsible officials: The Company will develop a plan to monitor the cash balances in the financial institutions to ensure that cash balances are maintained within HUD’s guidelines. Auditors' summary of auditee's comments on the findings and recommendations: The Company will de...

Reporting views of responsible officials: The Company will develop a plan to monitor the cash balances in the financial institutions to ensure that cash balances are maintained within HUD’s guidelines. Auditors' summary of auditee's comments on the findings and recommendations: The Company will develop a plan to monitor the cash balances in the financial institutions to ensure that cash balances are maintained within HUD’s guidelines. Response indicator: Agree. Response: The Company will work with the financial institutions to ensure that HUD’s requirements are followed. Completion date: September 30, 2024

View Audit 334688

Finding 516688 (2024-001)

Significant Deficiency 2024

Lawndale Christian Health Center and Affiliates

IL

Cash Management Matching / Level of Effort / Earmarking § 200.303 § 200.305

Action taken in response to finding: LCHC management has implemented a robust task-management software to assist with internal controls, especially when related to grant management. Furthermore, a cloud-hosted warehouse for internal procedures was implemented to properly manage the assignment and tr...

Action taken in response to finding: LCHC management has implemented a robust task-management software to assist with internal controls, especially when related to grant management. Furthermore, a cloud-hosted warehouse for internal procedures was implemented to properly manage the assignment and transfer of accounting roles/responsibilities like the review and approval of grant drawdown request. Name(s) of the contact person(s) responsible for corrective action: Jeff Nelson, Accounting and Financial Analysis Director Planned completion date for corrective action plan: 9/30/2024

View Audit 334674

Finding 516671 (2024-003)

Significant Deficiency 2024

Progressive Community Health Centers, Inc.

WI

Questioned Costs Allowable Costs / Cost Principles Cash Management § 200.403

Upon identification of costs allocated to more than one grant, the Organization identified allowable costs previously charged to program income and reallocated the duplicated expenditures without creating other instances of noncompliance (such as cash management or period of performance). Although t...

Upon identification of costs allocated to more than one grant, the Organization identified allowable costs previously charged to program income and reallocated the duplicated expenditures without creating other instances of noncompliance (such as cash management or period of performance). Although the initial support provided to auditors contained instances of expenditures charged to more than one grant, expenditure justification has been updated to reflect corrections and all subsequent grant expenditure detail has been reviewed to ensure no recurrence in the subsequent period. The Organization has also reviewed our internal processes to capture all salaries supported by grants accurately and timely. Additional internal controls such as limiting the number of grants an employee can be on at one time and the reduction of more catch-up drawdowns to account for staffing changes within the organization were implemented. We are also working with our accounting software vendor and payroll vendor to automate the allocation of grant salaries based on time and effort of each individual rather than after-the-fact allocations to grants. This will reduce the need to maintain manual spreadsheets to track staff and essentially eliminate the risk of charging expenditures to more than one grant. Further, relevant staff participated in a training focused on CHC grants management matters in December 2024 and will continue to look for learning opportunities to support and challenge compliance matters. Official Responsible for Ensuring the Corrective Action Plan: Danielle Hahn, Progressive Community Health Center Chief Financial Officer. Planned Completion Date for the Corrective Action Plan: The Organization has implemented the corrective action plan as of December 2024 and will continue to monitor throughout the year.

View Audit 334670 Questioned Costs: $1

Finding 516647 (2024-005)

Material Weakness 2024

West River Transit

ND

Procurement, Suspension & Debarment Cash Management Reporting

2024-005: Documentation Contact Person – Carol Anderson, Executive Director Corrective Action Plan – This finding is noted together with the Board. The Organization will keep copies of quarterly NDDOT reimbursement reports to support the audit of federal programs. Completion Date – The Organization ...

2024-005: Documentation Contact Person – Carol Anderson, Executive Director Corrective Action Plan – This finding is noted together with the Board. The Organization will keep copies of quarterly NDDOT reimbursement reports to support the audit of federal programs. Completion Date – The Organization will implement the change in the fiscal year ended on June 30, 2025.

View Audit 334624

Finding 516560 (2024-001)

None 2024

Independence Industries

OH

Special Tests & Provisions Cash Management HUD Housing Programs

We will implement stricter adherence to deadlines and ensure that all required annual deposits to residual receipts are completed within 90 days of year end.

View Audit 334488

Finding 516536 (2024-002)

Material Weakness 2024

Housing Authority of the City of Carrollton, Missouri

MO

Internal Control / Segregation of Duties Special Tests & Provisions Cash Management

The Housing Authority of the Town of Carrollton, Missouri, is a small PHA defined by HUD and lacks in segregation of duties for Internal Control. The Director has developed a spreadsheet to track obligation dates, amounts, contracts, and expenses to justify the amount obligated each month in the sy...

The Housing Authority of the Town of Carrollton, Missouri, is a small PHA defined by HUD and lacks in segregation of duties for Internal Control. The Director has developed a spreadsheet to track obligation dates, amounts, contracts, and expenses to justify the amount obligated each month in the system.

View Audit 334475

Finding 516386 (2024-006)

Significant Deficiency 2024

Clatsop Community College

OR

Cash Management Matching / Level of Effort / Earmarking Internal Control / Segregation of Duties § 200.303

Recommendation: We recommend the College implement procedures to ensure all requirements of a Tier One arrangement for Third Party Servicers are being met. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: We are no...

Recommendation: We recommend the College implement procedures to ensure all requirements of a Tier One arrangement for Third Party Servicers are being met. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: We are no longer using a Tier One processor for our financial aid refunds. Name(s) of the contact person(s) responsible for corrective action: Margaret Antilla Planned completion date for corrective action plan: Implemented July 2024 when we changed from Bank Mobile to TouchNet.

View Audit 334325

Finding 516273 (2024-002)

Significant Deficiency 2024

Anne Arundel County Board of Education

MD

Cash Management Significant Deficiency Matching / Level of Effort / Earmarking § 200.303

2024-002 Federal Agency: U.S. Department of Treasury Federal Program Name: Coronavirus State and Local Fiscal Recovery Funds Assistance Listing Number: 21.027 Federal Award Identification Number and Year: None Pass-Through Agency: Maryland State Department of Education Pass-Through Number: 211837-...

2024-002 Federal Agency: U.S. Department of Treasury Federal Program Name: Coronavirus State and Local Fiscal Recovery Funds Assistance Listing Number: 21.027 Federal Award Identification Number and Year: None Pass-Through Agency: Maryland State Department of Education Pass-Through Number: 211837-01 Award Period: 3/3/2021 – 12/31/2024 Type of Finding: Significant Deficiency in Internal Control over Compliance Recommendation: We recommend that the Board continue with established policies and procedures implemented in November 2023 to ensure that documentation supporting the Board’s review and approval of the monthly FSR reimbursement requests are retained for audit purposes. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: The Director of Financial Reporting and Grants Management will ensure that the Board’s review and approval of monthly FSR reimbursement requests and documented and retained. Name(s) of the contact person(s) responsible for corrective action: Ruth Grasty Director of Financial Reporting and Grants Management Planned completion date for corrective action plan: For immediate implementation and ongoing.

View Audit 334095

Finding 516229 (2024-006)

Material Weakness 2024

Marissa Community Unit School District No. 40

IL

Questioned Costs Procurement, Suspension & Debarment Allowable Costs / Cost Principles

Condition: To determine that an accurate final expenditure report was filed with the Illinois State Board of Education. The District submitted budgeted expenditures for reimbursement instead of actual expenditures for ESSER II. Recommendation: We recommend reconciling the budgeted amount to the gen...

Condition: To determine that an accurate final expenditure report was filed with the Illinois State Board of Education. The District submitted budgeted expenditures for reimbursement instead of actual expenditures for ESSER II. Recommendation: We recommend reconciling the budgeted amount to the general ledger totals and reconciling those to expenditure reports before submitting. Management Response: The District will review the budgeted cost of items and the amount recorded in the general ledger against the expenditure reports before submitting.

View Audit 334048 Questioned Costs: $1

Finding 516228 (2024-005)

Material Weakness 2024

Marissa Community Unit School District No. 40

IL

Questioned Costs Allowable Costs / Cost Principles Cash Management

Condition: To determine that an accurate final expenditure report was filed with the Illinois State Board of Education. The District reported expenses on the final ESSER II November 11, 2023 expenditure report that were claimed twice in different grants. Recommendation: We recommend to review for d...

Condition: To determine that an accurate final expenditure report was filed with the Illinois State Board of Education. The District reported expenses on the final ESSER II November 11, 2023 expenditure report that were claimed twice in different grants. Recommendation: We recommend to review for duplicate or unallowable expenses before entering into the expenditure report and submitting. Management Response: The District will review the general ledger for duplicate or unallowable expenses before submitting quarterly reports.

View Audit 334048 Questioned Costs: $1

Finding 516219 (2024-004)

Significant Deficiency 2024

Yadkin County

NC

Cash Management Eligibility Reporting

Finding: 2024-003 Name of contact person: Corrective Action: Proposed Completion Date: Finding: 2024-004 Name of contact person: Corrective Action: Proposed Completion Date: Corrective actions for Finding 2024-001, 2024-002, 2024-003, and 2024-004 also apply to State award findings. Finding: 2024-00...

Finding: 2024-003 Name of contact person: Corrective Action: Proposed Completion Date: Finding: 2024-004 Name of contact person: Corrective Action: Proposed Completion Date: Corrective actions for Finding 2024-001, 2024-002, 2024-003, and 2024-004 also apply to State award findings. Finding: 2024-005 Name of contact person: Lindsey Cearlock Corrective Action: Proposed Completion Date: Immediately. To review all grant documentation carefully and ensure the County is compliant with all requirements. Section IV - State Award Findings and Questioned Costs Jessica Wall, Director YCHSA will continue second party at least 76 Medicaid cases per quarter and will do a targeted second party review of an additional 50 cases to verify that appropriate requests for informaiton are made. YCHSA will implement a checklist to be used prior to eligibility decision for applications and recertifications that would ensure that appropriate information requests have been made and evaluated. YCHSA will develop a shared training platform that will include powerpoint presentations and handouts around the areas of information requests. Checklist will be developed and implemented by 11/18/24. YCHSA will complete an additional targeted review of at least 50 cases per quarter beginning with Quarter 2 of Fiscal Year 2025. YCHSA will develop shared training platform with the expectation that staff will have completed at least one module by 11/30/24. Supervisors will provide staff with a report at least once per month that includes terminated SSI cases that require a full eligibility evaluation. Staff will return this report each month with their initials to indicate that they have initiated full evaluations. Training will be provided by 11/30/24. Training will be provided by 11/30/24 and staff will received SSI Termination Report by 11/30/24. Jessica Wall, Director

View Audit 334031

Finding 516196 (2024-001)

Significant Deficiency 2024

Parallax Advanced Research Corporation

OH

Cash Management Procurement, Suspension & Debarment

As a 501c3 non-profit organization with a large portfolio of federally funded cost reimbursement awards, management of cash is of fundamental importance especially for maintaining quality subcontractor partnerships. Though Parallax has made significant improvements from the prior year as it pertains...

As a 501c3 non-profit organization with a large portfolio of federally funded cost reimbursement awards, management of cash is of fundamental importance especially for maintaining quality subcontractor partnerships. Though Parallax has made significant improvements from the prior year as it pertains to indirect rate management, in conjunction with an increased line of credit, there is still some room for improvement as it pertains to internal controls and formalized policies. In the spirit of continuous improvement and increased management visibility, Parallax has established a formal Billing Policy which will include improved coordination with the Billing department and Program Managers, Accounts Payable and Finance to review vendor payment schedules before submitting a payment request to the U.S. Government to ensure typical payments to vendors are made within 30 days of Parallax’s request for payment. We believe this policy, in conjunction with better cash flows from indirect rate management and the increased line of credit, will assist with ensuring future compliance.

View Audit 334028

Finding 516079 (2024-002)

Material Weakness 2024

Ottawa Elementary School District 141

IL

Cash Management

The District will analyze the expenditures of the food service program and strive to meet the above requirements.

View Audit 333893

Corrective Action Plans

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