Corrective Action Plans

Finding 539628 (2024-001)

Significant Deficiency 2024

Friendship I Co.

ID

HUD Housing Programs Cash Management

MANAGEMENT’S OR DEPARTMENT’S RESPONSE: WE CONCUR. VIEWS OF RESPONSIBLE OFFICIALS AND CORRECTION ACTION: AMOUNT HAS BEEN DEPOSITED. ADDITIONALLY, ALL RESTRICTED ACCOUNTS WILL BE REVIEWED ANNUALLY TO ENSURE TRANSFERS ARE MADE.

View Audit 350169

Finding 539606 (2024-001)

Significant Deficiency 2024

Horatio School District

AR

Questioned Costs Procurement, Suspension & Debarment Cash Management

Horatio School District will contact the Federal Communications Commission for guidance regarding this matter and reimbursement. Anticipated completion date: April 15, 2025.

View Audit 350148 Questioned Costs: $1

Finding 539541 (2024-002)

Significant Deficiency 2024

Kid Net Foundation Dba Jonathan's Place

TX

Allowable Costs / Cost Principles Cash Management Significant Deficiency

RESET is a cost reimbursement grant. The agency maintains an Excel workbook that tracks costs over the course of the 12-month award year. The workbook is updated prior to each month's request for reimbursement. The grant accountant accrued a reimbursable expense for clothing for September, then inex...

RESET is a cost reimbursement grant. The agency maintains an Excel workbook that tracks costs over the course of the 12-month award year. The workbook is updated prior to each month's request for reimbursement. The grant accountant accrued a reimbursable expense for clothing for September, then inexplicably entered a slightly different amount into the workbook. This l ne item was selected for audit, and the agency is unable to provide support for the difference. In addition, in October the grant accountant improperly recorded a payroll cost in the General Ledger and the grant workbook. While the documentation clearly shows how the amount was calculated, it was nor a legitimate period cost. The agency charges expenses to a unique department number in the General Ledger. Costs are assigned in the workbook to one of three categories: reimbursable, ineligible, and pending. The control process calls for the grant accountant to assign each GL expense to a category, then to ensure the workbook ties to the GL for the month and award year-to-date. An initial review indicates the control worked because the cost column for the month consistently matches the GL. A closer review shows that for September, the accountant matched the GL by entering a rounding error. Rounding errors should be limited to a penny or so. The control failed. The lack of accuracy and attention to detail is regrettable. The grant accountant is no longer with the agency. The grant accountant is responsible for the integrity of the workbook. The CFO is responsible for the overall integrity of the financial statements. The CFO and grant accountant meet monthly to review the workbook. The CFO reviews the workbook for reasonableness and completeness. This review includes observing the grant accountant's assertion that the workbook matches the GL. To reduce the risk of future errors, the CFO has 1. Reviewed the monthly process with the new grant accountant, emphasizing the need to match the GL. Status: Complete. 2. Created an agenda template for monthly workbook reviews. This agenda includes confirmation that the workbook matches the GL and identification of any amount of rounding for the month and award year-to-date. Status: Complete. 3. Added a step to the workbook. In addition to the current process of entering GL information to the workbook, the grant accountant will enter date of confirmation and save a copy of the GL that matches the workbook. Status: complete, effective as of January 2025 activity. 4. Added a step to the department's close checklist. The grant accountant explicitly confirms that Step 3 is done. Status: complete, effective as of January 2025 activity.

View Audit 350082

Finding 539540 (2024-001)

Significant Deficiency 2024

Kid Net Foundation Dba Jonathan's Place

TX

Questioned Costs Allowable Costs / Cost Principles Cash Management

RESET is a cost reimbursement grant. The agency maintains an Excel workbook that tracks costs over the course of the 12-month award year. The workbook is updated prior to each month's request for reimbursement. The grant accountant accrued a reimbursable expense for clothing for September, then inex...

RESET is a cost reimbursement grant. The agency maintains an Excel workbook that tracks costs over the course of the 12-month award year. The workbook is updated prior to each month's request for reimbursement. The grant accountant accrued a reimbursable expense for clothing for September, then inexplicably entered a slightly different amount into the workbook. This l ne item was selected for audit, and the agency is unable to provide support for the difference. In addition, in October the grant accountant improperly recorded a payroll cost in the General Ledger and the grant workbook. While the documentation clearly shows how the amount was calculated, it was nor a legitimate period cost. The agency charges expenses to a unique department number in the General Ledger. Costs are assigned in the workbook to one of three categories: reimbursable, ineligible, and pending. The control process calls for the grant accountant to assign each GL expense to a category, then to ensure the workbook ties to the GL for the month and award year-to-date. An initial review indicates the control worked because the cost column for the month consistently matches the GL. A closer review shows that for September, the accountant matched the GL by entering a rounding error. Rounding errors should be limited to a penny or so. The control failed. The lack of accuracy and attention to detail is regrettable. The grant accountant is no longer with the agency. The grant accountant is responsible for the integrity of the workbook. The CFO is responsible for the overall integrity of the financial statements. The CFO and grant accountant meet monthly to review the workbook. The CFO reviews the workbook for reasonableness and completeness. This review includes observing the grant accountant's assertion that the workbook matches the GL. To reduce the risk of future errors, the CFO has 1. Reviewed the monthly process with the new grant accountant, emphasizing the need to match the GL. Status: Complete. 2. Created an agenda template for monthly workbook reviews. This agenda includes confirmation that the workbook matches the GL and identification of any amount of rounding for the month and award year-to-date. Status: Complete. 3. Added a step to the workbook. In addition to the current process of entering GL information to the workbook, the grant accountant will enter date of confirmation and save a copy of the GL that matches the workbook. Status: complete, effective as of January 2025 activity. 4. Added a step to the department's close checklist. The grant accountant explicitly confirms that Step 3 is done. Status: complete, effective as of January 2025 activity.

View Audit 350082

Finding 539534 (2024-001)

None 2024

Economic and Community Development Institute, Inc.

OH

Questioned Costs Allowable Costs / Cost Principles Cash Management § 200.516

Finding Number: 2024-001 Condition: GBQ identified errors in how employee time was allocated to the program, and salaries and wages allocated to the program in excess of the Executive Level II Salary maximum. Specifically, one employee had salaries and wages allocated to the program in excess of ho...

Finding Number: 2024-001 Condition: GBQ identified errors in how employee time was allocated to the program, and salaries and wages allocated to the program in excess of the Executive Level II Salary maximum. Specifically, one employee had salaries and wages allocated to the program in excess of hours tracked to the program for a selected month. Another employee had an inappropriate wage rate applied to allocated time to the program. Last, two employees had compensation levels allocated to the program in excess of the Executive Level II Salary max amount in effect for the respective period. Planned Corrective Action: ECDI will put additional steps in place in Payroll Review process to ensure reconciliation of payroll charges to actual time records and rates. The organization will modify it's calculations to ensure that pay rates are reflective of the timeframe in question (not for periods before or after). ECDI will update its calculations to include thresholds for Executive pay so they are not entered in excess of approved rates. The company is also exploring technology enhancements so that information from ECDl's Payroll system flows directly into ECDl's Accounting system to limit the chance of errors during extraction from Payroll system and uploading into Accounting system. Contact Person Responsible for Corrective Action: Brian Barrett and Hudu Ahmed. Completion Date: In process

View Audit 350075 Questioned Costs: $1

Finding 539484 (2024-003)

Significant Deficiency 2024

Athens Housing Authority

GA

Questioned Costs Cash Management Reporting

Finding 2024-003 – Capital Fund Grant Reconciliations – Special Tests – Significant Deficiency Capital Fund Program – ALN #14.872 Corrective Action Plan: The Housing Authority has brough forward all schedules related to Capital Fund Grant as of March 2025. Person Responsible: Sheila Crisp, Executi...

Finding 2024-003 – Capital Fund Grant Reconciliations – Special Tests – Significant Deficiency Capital Fund Program – ALN #14.872 Corrective Action Plan: The Housing Authority has brough forward all schedules related to Capital Fund Grant as of March 2025. Person Responsible: Sheila Crisp, Executive Director Anticipated Completion Date: June 2025

View Audit 350010

Finding 539480 (2024-010)

Significant Deficiency 2024

Urshan College

MO

Cash Management Questioned Costs Reporting § 200.303

Cash Management – Assistance Listing No. 84.063, 84.268 Recommendation: We recommend the College design controls to ensure an adequate review process is in place to ensure compliance with reporting requirements. Explanation of disagreement with audit finding: There is no disagreement with the audit...

Cash Management – Assistance Listing No. 84.063, 84.268 Recommendation: We recommend the College design controls to ensure an adequate review process is in place to ensure compliance with reporting requirements. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: The Financial Aid Director will ensure that when processes are completed, they are verifiable through documentation. Credit Balance refunds as well as drawdowns will be tracked for proper compliance requirements. Name(s) of the contact person(s) responsible for corrective action: Levi Powell, Student Financial Aid Director Planned completion date for corrective action plan: 6/30/2025

View Audit 350009

Finding 539464 (2024-001)

Significant Deficiency 2024

Pro-Youth, Inc.

CA

Questioned Costs Allowable Costs / Cost Principles Cash Management

Management's Response/Planned Corrective Action: The Organization has established and implemented a new procedure to ensure the correct allocation of substitute teachers. This change has already been made effective as of July 1, 2024 to meet the auditor's recommendations. The Organization will now b...

Management's Response/Planned Corrective Action: The Organization has established and implemented a new procedure to ensure the correct allocation of substitute teachers. This change has already been made effective as of July 1, 2024 to meet the auditor's recommendations. The Organization will now bill substitutes exclusively to the appropriate site and program, which will enhance financial tracking and accountability. Substitutes will no longer be included in any distribution tables. Currently, substitutes are assigned to a System of Support (SOS) as their direct supervisor. The SOS is responsible for scheduling substitutes, entering their schedules into Paycor, and assigning them to school sites. Additionally, the Payroll Coordinator, Joanna Qualls, is required to add a billing code to these substitutes. The Payroll Department follows a procedure every pay period to run a report on substitutes, ensuring they are coded correctly. This process has been established as a step for every payroll run. The Director of Finance, Juana Sierra-Perez, also does a final audit of payroll to ensure transactions are being coded properly.

View Audit 350003 Questioned Costs: $1

Finding 539434 (2024-001)

Significant Deficiency 2024

New London Homeless Hospitality Center, Inc.

CT

Questioned Costs Allowable Costs / Cost Principles Cash Management

While the audit notes improvements in this area, we continued to face some challenges in properly allocating indirect costs and fringe benefits to individual contracts. We will close the remaining gap between the costs properly billed to individual contracts and the process of reflecting these costs...

While the audit notes improvements in this area, we continued to face some challenges in properly allocating indirect costs and fringe benefits to individual contracts. We will close the remaining gap between the costs properly billed to individual contracts and the process of reflecting these costs in our accounting system by refining our cost allocation plan. This revision will include consistent rules for allocating indirect and fringe plus a quarterly review by accounting staff and management. We will also use newly formatted grant worksheets shared with us by Whittlesey to help us identify and correct any allocation issues before closing out our accounting records for this fiscal year.

View Audit 349995

Finding 539394 (2024-006)

Material Weakness 2024

Camden County Technical Schools

NJ

School Nutrition Programs Cash Management Reporting

Edit Check Worksheets will be matched to requests for State of NJ Division of Agriculture reimbursement on a monthly basis for accuracy.

View Audit 349945

Finding 539231 (2024-300)

Material Weakness 2024

State of Wisconsin

WI

Allowable Costs / Cost Principles Eligibility Questioned Costs

Wisconsin Department of Health Services Planned Corrective Action: This FY 2022-23 finding continued through SFY 2023-24 because the public health emergency unwinding was completed after June 30, 2024, for this population. No new concerns were identified by LAB during their FY 2023-24 audit. Correct...

Wisconsin Department of Health Services Planned Corrective Action: This FY 2022-23 finding continued through SFY 2023-24 because the public health emergency unwinding was completed after June 30, 2024, for this population. No new concerns were identified by LAB during their FY 2023-24 audit. Corrective actions began during SFY 2023-24, and DHS completed a final analysis in November 2024. As part of this process, all outstanding cases were resolved. After the analysis was completed, DHS implemented an ongoing monthly monitoring plan with the IM agencies, which was outlined in the CARES Coordinator Notice (CCN) dated January 27, 2025. Anticipated Completion Date: January 27, 2025Persons responsible for corrective action: Autumn Arnold, Director Bureau of Eligibility and Enrollment Policy, Division of Medicaid Services autumn.arnold@dhs.wisconsin.gov Jonelle Brom, Director Bureau of Eligibility Operations and Training, Division of Medicaid Services Jonellem.Brom@dhs.wisconsin.gov Dave Varana, Director Bureau of Fiscal Accountability and Management, Division of Medicaid Services Dave2.Varana@dhs.wisconsin.gov

View Audit 349896 Questioned Costs: $1

Finding 539229 (2024-302)

Significant Deficiency 2024

State of Wisconsin

WI

Subrecipient Monitoring Allowable Costs / Cost Principles Cash Management § 200.332

Wisconsin Department of Health Services Planned Corrective Action: After the SFY 2022-23 audit finding was received, DHS immediately began corrective actions. No new concerns were identified by LAB during their SFY 2023-24 audit. DHS corrected the assistance listing number (ALN) of TANF funds transf...

Wisconsin Department of Health Services Planned Corrective Action: After the SFY 2022-23 audit finding was received, DHS immediately began corrective actions. No new concerns were identified by LAB during their SFY 2023-24 audit. DHS corrected the assistance listing number (ALN) of TANF funds transferred to the SSBG on the DHS website (https://www.dhs.wisconsin.gov/gears/index.htm) for the calendar year 2023 and 2024 Basic County Allocation on March 20, 2024. DHS changed the ALN for TANF funds transferred to the SSBG on the calendar year 2025 Basic County Allocation contracts that started January 1, 2025. Anticipated Completion Date: January 1, 2025 Person responsible for corrective action: Rebecca Mogensen, Section Chief Managerial Accounting, Bureau of Fiscal Services, Division of Enterprise Services rebeccaj.mogensen@dhs.wisconsin.gov

View Audit 349896

Finding 539182 (2024-301)

Material Weakness 2024

State of Wisconsin

WI

Questioned Costs Cash Management § 200.1

Wisconsin Department of Health Services Planned Corrective Action: Summer EBT was a brand-new program started in summer 2024 to provide food benefits during the summer months to families with children who were determined eligible for free or reduced-price school meals in the prior school year or dur...

Wisconsin Department of Health Services Planned Corrective Action: Summer EBT was a brand-new program started in summer 2024 to provide food benefits during the summer months to families with children who were determined eligible for free or reduced-price school meals in the prior school year or during the summer. DHS provided benefits to over 450,000 children. While DHS agrees with the cash management concerns cited by LAB under this program, we need to clarify that the questioned costs do not represent inappropriate federal spending. While the federal funds were received too early and remained in a bank account as of June 30, 2024, most of the funds were paid out to eligible children during the following three months. A reconciliation of funds received to funds spent for the children in this program was completed in early SFY 2024-25, with any unspent balance returned to the federal government in September 2024. DHS will work with DOA and our Summer EBT third-party vendor to improve the payment process, ensuring compliance with federal requirements for future years. Anticipated Completion Date: June 30, 2025Person responsible for corrective action: Rebecca Mogensen, Section Chief Managerial Accounting, Bureau of Fiscal Services, Division of Enterprise Services rebeccaj.mogensen@dhs.wisconsin.gov Rebuttal from the Wisconsin Legislative Audit Bureau In its corrective action plan on page 345, the Department of Health Services agreed with the cash management concerns reported by the Bureau, but stated it did not consider the questioned costs to be inappropriate federal spending. In addition, the Department of Health Services noted that it completed a reconciliation of funds received to funds spent for children in this program and returned the unspent balance to the federal government in September 2024. However, a questioned cost is defined by 2 CFR s. 200.1 as an amount expended or received from a federal award, that in the auditor’s judgment:  is noncompliant or suspected noncompliant with federal statutes, regulations, or the terms and conditions of the federal award;  lacked adequate documentation to support compliance; or  appeared unreasonable and did not reflect the actions a prudent person would take in the circumstances. As reported in the finding, United States Department of Agriculture guidance indicates that expenditures or disbursements under the Summer Electronic Benefit Transfer Program for Children are incurred when participants have used the issued benefits to purchase food. The amount questioned was the balance of the federal funds drawn and not spent by participants as of June 30, 2024. This amount met the criteria of a questioned cost due to noncompliance with federal regulations and a lack of adequate documentation to support compliance. In addition, the return of $14.2 million to the federal government in September 2024 further indicates that the amounts drawn in June 2024 were not supported.

View Audit 349896 Questioned Costs: $1

Finding 539169 (2024-713)

Material Weakness 2024

State of Wisconsin

WI

Cash Management Subrecipient Monitoring § 200.305

Planned Corrective Action: To complywith federal cash management requirements, Research and Sponsored Programs (RSP) will develop a responsive cash management policy and procedures to implement the policy for subrecipient agreements. The policy and subsequent procedure will specify the circumstance ...

Planned Corrective Action: To complywith federal cash management requirements, Research and Sponsored Programs (RSP) will develop a responsive cash management policy and procedures to implement the policy for subrecipient agreements. The policy and subsequent procedure will specify the circumstance and requisites a cash advance may be suitable. A standard cost reimbursable agreement will be otherwise executed. RSP will evaluate subrecipientsthat request agreements with advance paymentto determine whetherto issue an agreement with advance payment. Thisincludes determining whetherthe Subrecipient has a need for an advance payment as well asthe amount of advance payment needed. Forsubrecipientsthat RSP determinesto issue a subagreement with an advance payment, RSPwill issue agreementsthatincorporate 2 CFR 200.305(b)(1)(2)- federal payment requirements and include, as applicable, interest-bearing accountrequirements. RSP staffwill be trained on the new procedures and additionsto subrecipient agreements. Anticipated Completion Date: October 30, 2025 Person responsible for corrective action: Angie Johnson, Assistant Director of Research Financial Services Research and Sponsored Programs Angie.johnson@rsp.wisc.edu

View Audit 349896

Finding 539062 (2024-004)

Significant Deficiency 2024

City of Boston

MA

Questioned Costs Cash Management Significant Deficiency § 200.303

Boston Public Schools Food and Nutrition Services has begun implementing various procedures in order to accurately report meal counts and claims. Anticipated Completion Date: June 30, 2025 Responsible Contact Person: Colin Musto, Assistant City Auditor, Grants Monitoring Unit colin.musto@boston.g...

Boston Public Schools Food and Nutrition Services has begun implementing various procedures in order to accurately report meal counts and claims. Anticipated Completion Date: June 30, 2025 Responsible Contact Person: Colin Musto, Assistant City Auditor, Grants Monitoring Unit colin.musto@boston.gov

View Audit 349776

Finding 539061 (2024-003)

Significant Deficiency 2024

City of Boston

MA

Questioned Costs School Nutrition Programs Cash Management § 200.303

Boston Public Schools Food and Nutrition Services has begun implementing advanced policies including additional segregation of duties and additional documentation to ensure that all deposits made have clear and accurate cash receipt forms. Anticipated Completion Date: June 30, 2025 Responsible Co...

Boston Public Schools Food and Nutrition Services has begun implementing advanced policies including additional segregation of duties and additional documentation to ensure that all deposits made have clear and accurate cash receipt forms. Anticipated Completion Date: June 30, 2025 Responsible Contact Person: Colin Musto, Assistant City Auditor, Grants Monitoring Unit colin.musto@boston.gov

View Audit 349776 Questioned Costs: $1

Finding 538852 (2024-002)

Significant Deficiency 2024

Pennsylvania College of Art & Design

PA

Questioned Costs Cash Management

Significant Deficiency - Federal Direct Loan Cash Management Criteria: The Advance Payment Method requires that the College disburse the requested funds no later than three business days following receipt of funds from the Education Department. Action Taken: Procedures and Policies have been put in ...

Significant Deficiency - Federal Direct Loan Cash Management Criteria: The Advance Payment Method requires that the College disburse the requested funds no later than three business days following receipt of funds from the Education Department. Action Taken: Procedures and Policies have been put in place to assure a timely disbursement of Federal funds to student accounts within the mandated timeframe. Coordination efforts have been mandated to assure that payments to student accounts are posted before drawing down federal funds. Anticipated completion date: The above-mentioned policies were put into practice in January of 2024. Drawdowns of federal monies for both the Fall and Spring semesters for the academic year ending 6/30/2025 were in full compliance of the policies.

View Audit 349581 Questioned Costs: $1

Finding 538850 (2024-001)

Material Weakness 2024

Valley View Public Schools Community Unit District 365-U

IL

Cash Management Reporting Equipment & Real Property Management

The District and Assistant Superintendent of Administrative Services will implement internal controls to properly record accrued payroll, leases, capital assets, and grant receivables on a timely basis prior to audit fieldwork.

View Audit 349576

Finding 538812 (2024-004)

Material Weakness 2024

Franklin County Community School Corporation

IN

Questioned Costs School Nutrition Programs Internal Control / Segregation of Duties § 200.303

FINDING 2024-004 Subject: Child Nutrition Cluster - Reporting Federal Agency: Department of Agriculture Federal Program: School Breakfast Program, National School Lunch Program Assistance Listing Number: 10.553, 10.555 Federal Award Numbers and Years (or Other Identifying Numbers): FY 22-23, FY 23-...

FINDING 2024-004 Subject: Child Nutrition Cluster - Reporting Federal Agency: Department of Agriculture Federal Program: School Breakfast Program, National School Lunch Program Assistance Listing Number: 10.553, 10.555 Federal Award Numbers and Years (or Other Identifying Numbers): FY 22-23, FY 23-24 Pass-Through Entity: Indiana Department of Education Compliance Requirement: Reporting Audit Finding: Material Weakness, Other Matters Condition: An effective internal control system was not in place at the School Corporation in order to ensure compliance with requirements related to the grant agreement and the cash management compliance requirement. Context: In a sample of 5 monthly claims for reimbursement selected for testing, the following compliance exceptions were noted: • Management failed to submit the April 2023 claim for reimbursement in a timely manner (within 90 days) to the IDOE and was not reimbursed for meals served as a result. • For the other 5 claims tested, the number of meals claimed did not agree to the supporting meal system reports. There was a gross overstatement of meals claimed of $21,189 and a gross understatement of meals claimed of $538.35 resulting in a net over-reimbursement of $20,650.47. We noted that the School Corporation has a secondary review control in place designed to review claims prior to submission to the IDOE. However, the control was not operating effectively to detect and prevent errors in the amount claimed for reimbursement. Views of Responsible Official: We concur with the finding. Description of Corrective Action Plan: Management has revised and implemented a more thorough control process over the preparation and submission of the monthly claims for reimbursement. A reconciliation sheet has been created and implemented for verification and will be completed every month. Responsible Party and Timeline for Completion: Jessica Defossett and Kendra Franks, January 2025

View Audit 349523 Questioned Costs: $1

Finding 538768 (2024-001)

Significant Deficiency 2024

Lake Michigan College

MI

Student Financial Aid Questioned Costs Matching / Level of Effort / Earmarking

Annually update the college website with contract and/or cost information regarding the third-party provider. Provide contract information URL to ED for publication in the Cash Management Contracts Database.

View Audit 349478

Finding 538745 (2024-002)

Material Weakness 2024

Housing Authority of the City of Martinsburg

WV

Eligibility Procurement, Suspension & Debarment Cash Management

Finding 2024-002 – Documentation of Costs and Vendor Invoices – Financial Reporting and Internal Controls ALN 14.850 & 14.871– Noncompliance & Material Weakness Recommendation: We recommend that the Authority amend policies and procedures to better facilitate effective purchasing controls. A clear ...

Finding 2024-002 – Documentation of Costs and Vendor Invoices – Financial Reporting and Internal Controls ALN 14.850 & 14.871– Noncompliance & Material Weakness Recommendation: We recommend that the Authority amend policies and procedures to better facilitate effective purchasing controls. A clear audit trail should be maintained to ensure proper approval, as well as documentation to support the allowability and eligibility of costs. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: We will enhance our internal controls over purchasing and Develop detailed procedures for creating, approving, and managing purchase orders. Name(s) of the contact person(s) responsible for corrective action: Navonya Kolani, Executive Director Planned completion date for corrective action plan: September 30, 2025.

View Audit 349460

Finding 538744 (2024-001)

Material Weakness 2024

Housing Authority of the City of Martinsburg

WV

Cash Management HUD Housing Programs

Finding 2024-001 – Capital Fund Program Accounting– Cash Management & Program Compliance ALN 14.872 – Grant years 2018, 2019, 2021, 2022 – Noncompliance & Material Weakness Recommendation: We recommend that the PHA establish an appropriate cash management procedure that facilitates timely requests ...

Finding 2024-001 – Capital Fund Program Accounting– Cash Management & Program Compliance ALN 14.872 – Grant years 2018, 2019, 2021, 2022 – Noncompliance & Material Weakness Recommendation: We recommend that the PHA establish an appropriate cash management procedure that facilitates timely requests and reimbursements of grant costs as incurred. We also recommend that the applicable PHA staff undergo Capital Fund training to ensure grant requirements are met prior to their deadlines. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: We will conduct a comprehensive review of existing cash management policies and procedures and update policies to align with current best practices and regulatory requirements for the Capital Fund Program. We will ensure that all staff members are informed of the updated policies and receive appropriate training. Name(s) of the contact person(s) responsible for corrective action: Navonya Kolani, Executive Director Planned completion date for corrective action plan: September 30, 2025.

View Audit 349460

Finding 538657 (2024-004)

Significant Deficiency 2024

Palomar Health

CA

Allowable Costs / Cost Principles Procurement, Suspension & Debarment Subrecipient Monitoring

FINDING 2024-004 – Significant Deficiency in Internal Controls over Compliance – Allowable Cost Principles – Calculation of Project Costs Audit Recommendation: Moss Adams recommends that management perform an in-depth review of all project costs, including a review of any data used in its calculati...

FINDING 2024-004 – Significant Deficiency in Internal Controls over Compliance – Allowable Cost Principles – Calculation of Project Costs Audit Recommendation: Moss Adams recommends that management perform an in-depth review of all project costs, including a review of any data used in its calculation, prior to the submission of project applications to FEMA or other federal agencies. Corrective Action Plan: PH management will put incorporate additional review processes for reporting to external agencies involving project costs and calculations. This will involve secondary review to identify potential errors. Contact Person Responsible for Corrective Action Plan: Melissa Wallace, Vice President of Finance, and Maritess Delosantos, Director of Finance Special Projects Anticipated Completion of Corrective Action Plan: June 2025 Status: 75% completed The District is continually improving processes to correct and prevent these deficiencies from recurring.

View Audit 349399

Finding 538651 (2024-004)

Material Weakness 2024

Sioux Falls School District 49-5

SD

Questioned Costs Cash Management

Identifying Number: 2024-004: U.S. Department of Education: Education Stabilization Fund: Institutional Portion – 84.425F Finding: Due to receiving reimbursement on outstanding purchase orders that were paid months later, or not at all, the District received, but did not disburse, the funds within t...

Identifying Number: 2024-004: U.S. Department of Education: Education Stabilization Fund: Institutional Portion – 84.425F Finding: Due to receiving reimbursement on outstanding purchase orders that were paid months later, or not at all, the District received, but did not disburse, the funds within the allowed three-day timeframe. Corrective Action Taken or Planned: Reimbursement requests will be submitted on a timely basis and after payments for the expenses are made. This will help ensure that reimbursement is received at the same time or after payment has been made. Contact person: Mike Stephens, Director of Accounting Status of finding – The above corrective actions will be implemented beginning April 1, 2025.

View Audit 349380 Questioned Costs: $1

Finding 538650 (2024-003)

Material Weakness 2024

Sioux Falls School District 49-5

SD

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

Identifying Number: 2024-003: U.S. Department of Education: Education Stabilization Fund: Institutional Portion – 84.425F Finding: The District used outstanding purchase order obligations to request reimbursement at the end of the liquidation period, but did not spend all of the outstanding purchase...

Identifying Number: 2024-003: U.S. Department of Education: Education Stabilization Fund: Institutional Portion – 84.425F Finding: The District used outstanding purchase order obligations to request reimbursement at the end of the liquidation period, but did not spend all of the outstanding purchase orders; therefore, receiving reimbursement for items that were never purchased. Corrective Action Taken or Planned: The School will designate finance staff to review reimbursements to ensure they have proper expenses as backup. A further review by the School District will help to ensure that funding is spent on items and requests for reimbursement only after expenses have been paid. Contact person: Mike Stephen, Director of Accounting Status of finding – The above corrective actions will be implemented beginning April 1, 2025.

View Audit 349380 Questioned Costs: $1

Corrective Action Plans

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