Corrective Action Plans

Finding 1168690 (2024-001)

Material Weakness 2024

Oregon Impact

OR

Allowable Costs / Cost Principles Internal Control / Segregation of Duties

Finding Reference Number: 2024-001 -Weakness in Controls over Accounting and Financial Reporting Description of Finding: At 6/30/2024 the Organization's current assets are less than its current liabilities, resulting in a deficit in net assets. Analysis found a material weakness in the Organization'...

Finding Reference Number: 2024-001 -Weakness in Controls over Accounting and Financial Reporting Description of Finding: At 6/30/2024 the Organization's current assets are less than its current liabilities, resulting in a deficit in net assets. Analysis found a material weakness in the Organization's controls over identifying and recording vendor bills that resulted in incorrectly omitting allowable costs from program grant expense reimbursement requests. Additionally, the Executive Director performed staff level program functions that were billed at their higher wage rate resulting in payroll costs in excess of allowed budget costs that were disallowed for reimbursement. Not properly identifying and requesting reimbursement for allowable program costs and incurring payroll costs in excess of allowed budgets has strained on the Organization's operating cash flows resulting in deficits and delays in satisfying the accounts payable obligations to the police agencies for which reimbursed funds have been requested. Statement of Concurrence or Nonconcurrence: The Organization agrees with the finding as presented. Corrective Action: The Organization has implemented a dual-review process for all grant expenses to ensure that eligible costs are identified and submitted as a means to reduce misidentification of expenses for allowed activities. Staff will also receive updated training on allowable expense categories to reduce misinterpretation. In monitoring payroll activities, the Organization has revised its grant payroll allocation process to ensure that duties performed under specific roles are billed at the appropriate rate. Future budgets will more clearly distinguish between roles and corresponding pay rates to prevent overages. All projects will undergo budget-to-expense reconciliation on a monthly basis to safeguard against missed claims and ensure that grant resources are maximized without exceeding allowable limits. Name of Contact Person: Janelle Lawrence, Executive Director Phone: 503-303-4954 E-mail: janelle@oregonimpact.org Projected Completion Date: June 30, 2026

View Audit 380665

Finding 1168647 (2024-001)

Material Weakness 2024

HIR Wellness Institute, Inc.

WI

Subrecipient Monitoring Allowable Costs / Cost Principles Material Weakness

Views of Responsible Officials at Auditee: We recognize that the necessary documentation was unavailable during the audit. To address this issue, we are collaborating with professionals to ensure that all documentation is properly generated and securely stored for future retrieval of processes that ...

Views of Responsible Officials at Auditee: We recognize that the necessary documentation was unavailable during the audit. To address this issue, we are collaborating with professionals to ensure that all documentation is properly generated and securely stored for future retrieval of processes that we already have in place. We have engaged a new bookkeeping firm to assist us in continuing consistent monthly processes and accurate documentation. Additionally, we are implementing a monthly checklist to track our internal controls, highlighting our ongoing review and approval processes. We will ensure that all expenses are reviewed monthly and approved with initials by either the Chief Executive Officer or Chief Financial & Outreach Officer on invoices and receipts. This review will also encompass all bank and credit card statements. Furthermore, we will ensure that all staff compensation documents are updated and reviewed annually to keep them current. This comprehensive process will form an integral part of our financial internal control checklist. While we have established internal controls, recent staff changes during the audit process made it challenging to locate all necessary documentation. This absence of documentation stemmed from these transitions, and we are actively working to improve our documentation procedures moving forward.

View Audit 380599

Finding 1168611 (2024-001)

Material Weakness 2024

Camden County Board of Education

GA

Internal Control / Segregation of Duties Matching / Level of Effort / Earmarking Special Tests & Provisions

Name of Contact Person Responsible for Corrective Action Plan: Jennifer Brown, Executive Director of Finance Corrective Action Plan: Management will establish procedures to ensure compliance with Wage Rate Requirements and implement necessary associated internal controls. Anticipated Completion Date...

Name of Contact Person Responsible for Corrective Action Plan: Jennifer Brown, Executive Director of Finance Corrective Action Plan: Management will establish procedures to ensure compliance with Wage Rate Requirements and implement necessary associated internal controls. Anticipated Completion Date: Fiscal year 2025

View Audit 380525

Finding 1168608 (2024-003)

Material Weakness 2024

Laurens County, Georgia

GA

Procurement, Suspension & Debarment Allowable Costs / Cost Principles Internal Control / Segregation of Duties § 200.318 § 200.326

Response/Corrective Action Plan: We concur with the finding and will revise the procurement policy as well as the internal control policies and procedures specific to the County to be in alignment with the Uniform Guidance requirements. Upon completion, the new policy will be provided to all departm...

Response/Corrective Action Plan: We concur with the finding and will revise the procurement policy as well as the internal control policies and procedures specific to the County to be in alignment with the Uniform Guidance requirements. Upon completion, the new policy will be provided to all department heads to ensure proper compliance in the utilization and disbursement of federal funds.

View Audit 380517

Finding 1168530 (2024-001)

Material Weakness 2024

Palmyra Area Inter-faith Housing Council and Affiliates

PA

Allowable Costs / Cost Principles HUD Housing Programs Reporting

Management agrees to maintain separate trial balances for the allocation of cash, property and equipment, interest rate swap asset and loans payable between Palmyra Area Interfaith Housing Council and Palmyra Interfaith Manor HUD Project No. 034-EH015. Management notes that this represents a differe...

Management agrees to maintain separate trial balances for the allocation of cash, property and equipment, interest rate swap asset and loans payable between Palmyra Area Interfaith Housing Council and Palmyra Interfaith Manor HUD Project No. 034-EH015. Management notes that this represents a difference of opinion from the prior auditors, who found the financial records of the two entities to be properly reconciled through the use of schedules to separate the council and project’s allocation of cash, property and equipment, interest rate swap asset and loans payable between the Council and the Project for 19 years with no consequence.

View Audit 380368

Finding 1168521 (2024-004)

Material Weakness 2024

The Conservation Innovation Fund

DC

Subrecipient Monitoring Reporting Internal Control / Segregation of Duties

Views of Responsible Officials: CIF grew substantially in FY 24 following execution of the Federal award. This finding reflects the learning phase as CIF came into compliance with the Uniform Guidance. CIF retrained staff on FFATA reporting deadlines and documentation expectations so that if new sub...

Views of Responsible Officials: CIF grew substantially in FY 24 following execution of the Federal award. This finding reflects the learning phase as CIF came into compliance with the Uniform Guidance. CIF retrained staff on FFATA reporting deadlines and documentation expectations so that if new subawards are entered into in FY 26, this requirement will be met in a timely fashion. Details relating to FFATA reporting requirements are documented in the CIF Subaward Management & Subrecipient Monitoring Policy and Procedures.

View Audit 380327

Finding 1168518 (2024-001)

Material Weakness 2024

The Conservation Innovation Fund

DC

Allowable Costs / Cost Principles Internal Control / Segregation of Duties § 200.430

Views of Responsible Officials: CIF grew substantially in FY 24 following execution of the Federal award. This finding reflects the learning phase as CIF came into compliance with the Uniform Guidance. This FY 24 Program Audit immediately preceded the FY 25 Single Audit in fall 2025. Given this timi...

Views of Responsible Officials: CIF grew substantially in FY 24 following execution of the Federal award. This finding reflects the learning phase as CIF came into compliance with the Uniform Guidance. This FY 24 Program Audit immediately preceded the FY 25 Single Audit in fall 2025. Given this timing, the earliest possible implementation of corrective action is in FY 26. Beginning in FY 26, CIF implemented a system for documenting time and effort in a manner that complies with Federal requirements which involves timesheets that record actual time spent on a funding source and are accompanied by supervisorial approvals. This system has been formally documented in the FY 26 update to the CIF Financial Policy and includes annual training for staff responsible for managing payroll allocations and Federal reporting. Charges to Federal awards for salaries and wages are now based on records that accurately reflect the work performed. The records are supported by a system of internal control that provides reasonable assurance that the charges are accurate, allowable, and properly allocated. The records support the distribution of the employee's salary or wages among specific activities or cost objectives if the employee works on more than one Federal award; a Federal award and non-Federal award; an indirect cost activity and a direct cost activity; two or more indirect activities allocated using different allocation bases; or an unallowable activity and a direct or indirect cost activity.

View Audit 380327

Finding 1168517 (2024-002)

Material Weakness 2024

THE PINEY WOODS SCHOOL

MS

Subrecipient Monitoring Material Weakness Reporting § 200.302

Finding 2024-002 Delta Regional Authority ( material weakness): Management recognizes the significance of properly segregating transactions relating to restricted grant programs in our accounting software. To address this issue, we will: 1. Reprogram Accounting Software: We will work with our softwa...

Finding 2024-002 Delta Regional Authority ( material weakness): Management recognizes the significance of properly segregating transactions relating to restricted grant programs in our accounting software. To address this issue, we will: 1. Reprogram Accounting Software: We will work with our software vendor to reprogram or adjust our accounting software to ensure that it can effectively segregate transactions related to restricted grants from other general ledger activities. 2. Revise Account Code Structure: We will review and redefine our general ledger account code structure to create more detailed categories that support accurate tracking and reporting of restricted funds. 3. Training for Staff: We will provide training for relevant staff on the updated accounting procedures to ensure they understand how to correctly use the new accounting software features and reporting structures. 4. Hire grant accountant: We have contracted a Grants Accountant who has already began organizing and file maintenance of grant records as well as working with the CFO, staff accountant and Grants Administrator to consolidate files, records, and supporting documentation for all active grants affecting the current fiscal year and FY 2025. II. Other Cause and Effect Management acknowledges that these weaknesses were caused by oversight from responsible employees and recognizes the risks associated with material misstatements and potential fraudulent activity. To mitigate these risks, we will enhance our internal controls, ensure accountability, and promote a culture of compliance and vigilance within the organization. Conclusion Management is committed to improving our internal controls over financial reporting to ensure compliance with federal regulations and enhance the accuracy of our financial statements. We appreciate the recommendations provided and will implement these corrective actions in a timely manner to strengthen our financial practices and restore stakeholder confidence. We will keep the board informed of our progress in addressing these material weaknesses. Management is dedicated to resolving these material weaknesses in a timely manner and will implement the recommended actions to strengthen our internal controls over financial reporting. We will keep the Board updated on our progress and provide necessary training for our staff to ensure adherence to new procedures. We appreciate the auditors' recommendations and are committed to making the necessary improvements to foster greater transparency and accountability in our financial reporting practices. Finding 2024-002 Delta Regional Authority (Material Weakness) – Accounting has worked with the Abilla System program coordinators and have set up codes within the accounting system to identify grants, restricted and unrestricted, for more effective reporting and identification.

View Audit 380325

Finding 1168472 (2024-003)

Material Weakness 2024

Mana Maoli

HI

Allowable Costs / Cost Principles Internal Control / Segregation of Duties HUD Housing Programs § 200.430 § 200.516

Mana Maoli has implemented a practical review and reconciliation step as part of payroll processing. This step compares approved timesheets to payroll register hours to help ensure that payroll allocations to federal programs are based on accurate records. This reconciliation is integrated into the ...

Mana Maoli has implemented a practical review and reconciliation step as part of payroll processing. This step compares approved timesheets to payroll register hours to help ensure that payroll allocations to federal programs are based on accurate records. This reconciliation is integrated into the existing payroll workflow to avoid added administrative burden. Management will conduct periodic reviews of payroll records and refine the process as needed to maintain reasonable assurance of accuracy, recognizing that the goal is continuous improvement. Anticipated completion date: December 31, 2026

View Audit 380292

Finding 1168440 (2024-005)

Material Weakness 2024

Fremont County School District No. 14

WY

Significant Deficiency Internal Control / Segregation of Duties

CORRECTIVE ACTION FINDING 2024-005 - SEGREGATION OF DUTIES Anticipated Date of Completion: December 31 , 2025 Name of Contact Person: Jordan Sarmo, Business Manager Management Response: The District will continue to refine the segregation of duties within the business office as staffing levels allow...

CORRECTIVE ACTION FINDING 2024-005 - SEGREGATION OF DUTIES Anticipated Date of Completion: December 31 , 2025 Name of Contact Person: Jordan Sarmo, Business Manager Management Response: The District will continue to refine the segregation of duties within the business office as staffing levels allow. With recently filled positions, the District will assign responsibil ities in a manner that reduces risk and ensures adequate separation of key accounting functions is maintained.

View Audit 380215

Finding 1168439 (2024-004)

Material Weakness 2024

Fremont County School District No. 14

WY

Cash Management Internal Control / Segregation of Duties Subrecipient Monitoring

CORRECTIVE ACTION FINDING 2024-004 - CASH MANAGEMENT AND RECONCILIATION OF ACCOUNTS Anticipated Date of Completion: December 31, 2025 Name of Contact Person: Jordan Sarmo, Business Manager Management Response: The District will strengthen controls over cash management by performing month ly reconcil...

CORRECTIVE ACTION FINDING 2024-004 - CASH MANAGEMENT AND RECONCILIATION OF ACCOUNTS Anticipated Date of Completion: December 31, 2025 Name of Contact Person: Jordan Sarmo, Business Manager Management Response: The District will strengthen controls over cash management by performing month ly reconciliations of all cash and investment accounts and by implementing supervisory review procedures. These measures will improve the accuracy of federal program reporting and overall financial reporting rel iability.

View Audit 380215

Finding 1168438 (2024-003)

Material Weakness 2024

Fremont County School District No. 14

WY

Cash Management Internal Control / Segregation of Duties Material Weakness

CORRECTIVE ACTION FINDING 2024-003 - RESTATEMENT OF BEGINNING FUND BALANCE Anticipated Date of Completion: December 31 , 2025 Name of Contact Person: Jordan Sarmo, Business Manager Management Response: The District will improve internal controls over financial reporting by implementing ongoing revie...

CORRECTIVE ACTION FINDING 2024-003 - RESTATEMENT OF BEGINNING FUND BALANCE Anticipated Date of Completion: December 31 , 2025 Name of Contact Person: Jordan Sarmo, Business Manager Management Response: The District will improve internal controls over financial reporting by implementing ongoing review and reconciliation of balance sheet accounts, ensuring investments are recorded at fair value, and resolving interfund and cash transactions timely. Continued oversight and, when necessary, external consultation will be used to ensure accurate reporting going forward.

View Audit 380215

Finding 1168388 (2024-001)

Material Weakness 2024

Casa

NC

Eligibility Internal Control / Segregation of Duties Reporting

CASA 624 W Jones St. Raleigh, North Carolina 27603 CORRECTIVE ACTION PLAN December 9, 2025 Single Audit Clearinghouse 1201 East 10th Street Jeffersonville, Indiana 47132 CASA (the "Organization"), respectfully submits the following Corrective Action Plan for the year ended June 30, 2024. Bernard Rob...

CASA 624 W Jones St. Raleigh, North Carolina 27603 CORRECTIVE ACTION PLAN December 9, 2025 Single Audit Clearinghouse 1201 East 10th Street Jeffersonville, Indiana 47132 CASA (the "Organization"), respectfully submits the following Corrective Action Plan for the year ended June 30, 2024. Bernard Robinson & Company, L.L.P. 1501 Highwoods Blvd., Suite 300 Greensboro, North Carolina 27410 Audit period: Year ended June 30, 2024 The findings from the June 30, 2024 Schedule of Findings and Questioned Costs are discussed below. The findings are numbered consistently with the numbers assigned in the schedule. Findings and Questioned Costs: Section II - Findings relating to the financial statements which are required to be reported in accordance with generally accepted Government Auditing Standards and Section III - Findings and questioned costs relating to the major programs which are required to be reported as defined by the Uniform Guidance [2 CFR 200.516(a)]: Finding 2024-001: U.S. Department of Housing and Urban Development, HOME Investments Partnerships Program Recommendation: Management should implement procedures to track tenant's annual recertification dates to ensure timely recertification; utilize checklists to ensure all required documentation, including income verification, disability and homelessness statuses, utility allowance calculations, background checks, and HOME lease addendums are properly maintained; conduct periodic internal audits of tenant's files; and evaluate staffing capacity of the leasing department. Management's Response and Corrective Action Plan: Management agrees with the recommendation and has already adjusted procedures to track annual recertification dates, supported by checklists to ensure all required documentation is complete and accurate. Periodic internal audits of tenant files will be conducted to maintain compliance. Additionally, a newly hired Senior Director of Operations will have total oversight of this process to ensure all recommendations are followed. Leasing staff continue to complete training to develop their knowledge and abilities. If you have questions regarding this plan, please call Everett McElveen at 919-754-9960. Sincerely yours, Everett McElveen CASA

View Audit 380207

Finding 1168381 (2024-004)

Material Weakness 2024

Casa

NC

Reporting Internal Control / Segregation of Duties § 200.510

CASA 624 W Jones St. Raleigh, North Carolina 27603 CORRECTIVE ACTION PLAN December 9, 2025 Single Audit Clearinghouse 1201 East 10th Street Jeffersonville, Indiana 47132 CASA (the "Organization"), respectfully submits the following Corrective Action Plan for the year ended June 30, 2024. Bernard Rob...

CASA 624 W Jones St. Raleigh, North Carolina 27603 CORRECTIVE ACTION PLAN December 9, 2025 Single Audit Clearinghouse 1201 East 10th Street Jeffersonville, Indiana 47132 CASA (the "Organization"), respectfully submits the following Corrective Action Plan for the year ended June 30, 2024. Bernard Robinson & Company, L.L.P. 1501 Highwoods Blvd., Suite 300 Greensboro, North Carolina 27410 Audit period: Year ended June 30, 2024 The findings from the June 30, 2024 Schedule of Findings and Questioned Costs are discussed below. The findings are numbered consistently with the numbers assigned in the schedule. Findings and Questioned Costs: Section II - Findings relating to the financial statements which are required to be reported in accordance with generally accepted Government Auditing Standards and Section III - Findings and questioned costs relating to the major programs which are required to be reported as defined by the Uniform Guidance [2 CFR 200.516(a)]: Finding 2024-004: U.S. Department of Housing and Urban Development, Community Project Funding Recommendation: Management should implement stronger internal controls over the preparation and review of the SEFA. This should include reconciliation procedures between grant records, accounting records, and the SEFA, as well as a formal review by finance leadership prior to submission. Management's Response and Corrective Action Plan: Management agrees with the finding and will ensure that the SEFA is accurate going forward via enhanced review of the organizations funding. If you have questions regarding this plan, please call Everett McElveen at 919-754-9960. Sincerely yours, Everett McElveen CASA

View Audit 380207

Finding 1168380 (2024-003)

Material Weakness 2024

Casa

NC

Reporting Internal Control / Segregation of Duties § 200.329

CASA 624 W Jones St. Raleigh, North Carolina 27603 CORRECTIVE ACTION PLAN December 9, 2025 Single Audit Clearinghouse 1201 East 10th Street Jeffersonville, Indiana 47132 CASA (the "Organization"), respectfully submits the following Corrective Action Plan for the year ended June 30, 2024. Bernard Rob...

CASA 624 W Jones St. Raleigh, North Carolina 27603 CORRECTIVE ACTION PLAN December 9, 2025 Single Audit Clearinghouse 1201 East 10th Street Jeffersonville, Indiana 47132 CASA (the "Organization"), respectfully submits the following Corrective Action Plan for the year ended June 30, 2024. Bernard Robinson & Company, L.L.P. 1501 Highwoods Blvd., Suite 300 Greensboro, North Carolina 27410 Audit period: Year ended June 30, 2024 The findings from the June 30, 2024 Schedule of Findings and Questioned Costs are discussed below. The findings are numbered consistently with the numbers assigned in the schedule. Findings and Questioned Costs: Section II - Findings relating to the financial statements which are required to be reported in accordance with generally accepted Government Auditing Standards and Section III - Findings and questioned costs relating to the major programs which are required to be reported as defined by the Uniform Guidance [2 CFR 200.516(a)]: Finding 2024-003: U.S. Department of Housing and Urban Development, Community Project Funding Recommendation: Management should review the grant agreement and applicable federal regulations to identify all required reports, and implement procedures to ensure submission of all required reports by their due dates. Management's Response and Corrective Action Plan: Management agrees with the finding and is taking steps to file all required reports. If you have questions regarding this plan, please call Everett McElveen at 919-754-9960. Sincerely yours, Everett McElveen CASA

View Audit 380207

Finding 1168372 (2024-001)

Material Weakness 2024

City of Stevenson

WA

Subrecipient Monitoring Reporting Internal Control / Segregation of Duties

CORRECTIVE ACTION PLAN FOR FINDINGS REPORTED UNDER UNIFORM GUIDANCE City of Stevenson January 1, 2024 through December 31, 2024 This schedule presents the corrective action the City is planning to take for findings included in this report in accordance with Title 2 U.S. Code of Federal Regulations (...

CORRECTIVE ACTION PLAN FOR FINDINGS REPORTED UNDER UNIFORM GUIDANCE City of Stevenson January 1, 2024 through December 31, 2024 This schedule presents the corrective action the City is planning to take for findings included in this report in accordance with Title 2 U.S. Code of Federal Regulations (CFR) Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Finding ref number: 2024-001 Finding caption: The City did not have adequate internal controls and did not comply with federal wage rate requirements. Name, address, and telephone of City contact person: Wesley Wootten, City Administrator PO Box 371 Stevenson, WA 98648 509-427-5970 Corrective action the auditee plans to take in response to the finding: (If the auditee does not concur with the finding, the auditee must list the reasons for disagreement). The City will strengthen oversight of federally funded projects by enhancing internal review and documentation processes. 1. A project compliance tracking form will be created and used for each project to document required wage rate verifications, funding sources, reporting deadlines, and accounting setup. This form will be reviewed and updated annually to ensure compliance with current federal requirements. 2. The City will also create a reimbursement tracking system to monitor project reimbursements and ensure consistency with the SEFA. 3. Staff responsible for project and grant administration will attend training opportunities related to federal compliance and wage rate requirements to ensure continued understanding and adherence. Anticipated date to complete the corrective action: December 31, 2025

View Audit 380170

Finding 1168319 (2024-002)

Material Weakness 2024

Wickliffe City School District

OH

Allowable Costs / Cost Principles Internal Control / Segregation of Duties § 200.430 § 200.516

The District Director of Student Services will monitor and make sure that all personnel who serve under federal programs have their time properly documented using semi-annual certification forms or other appropriate time and effort methods.

View Audit 380077

Finding 1168222 (2024-003)

Material Weakness 2024

Heritage University

WA

Student Financial Aid Reporting Internal Control / Segregation of Duties

As a response to concerns about disruptions in processes and the turnover of key staff in several departments, the Enrollment Alliance group that includes director-level staff in Admissions, the Registrar, Financial Aid, Advising, Bursar, and IT began meeting under the facilitation of the VP of Stud...

As a response to concerns about disruptions in processes and the turnover of key staff in several departments, the Enrollment Alliance group that includes director-level staff in Admissions, the Registrar, Financial Aid, Advising, Bursar, and IT began meeting under the facilitation of the VP of Student Affairs on January 7, 2025. When the registrar office sends their enrollment reporting through the clearing house, financial aid will have a person with access to NSLDS to spot check to ensure enrollment is submitted correctly and in a timely manner. A system will be developed where spot checks will be done monthly on a few random students. Name of Responsible Party: 1. Nancy Benavides,Financial Aid Director 2. J.T. Menard, Registrar 3. Ivan Banks, Interim Provost 4. Corey Hodge, VP for Student Affairs 5. Joanne Fernandez, Controller 6. Marla Withers, Assistant Controller 7. Sagrario Armenta Jimenez, CFO 8. Dr. Christopher Gilmer, President Anticipated completion date: 6/30/2026

View Audit 380015

Finding 1168207 (2024-005)

Material Weakness 2024

Detroit Health Care for the Homeless Dba Advantage Health Centers

MI

Eligibility HUD Housing Programs Matching / Level of Effort / Earmarking § 200.303

AHC has revised its patient intake procedures to ensure that all required documentation is collected and verified at the point of service. An electronic eligibility checklist has been integrated into the EHR, and staff have been trained to collect alternative income documentation where appropriate. ...

AHC has revised its patient intake procedures to ensure that all required documentation is collected and verified at the point of service. An electronic eligibility checklist has been integrated into the EHR, and staff have been trained to collect alternative income documentation where appropriate. Monthly audits of ten patient files per site are conducted, and exceptions are logged and resolved within ten business days. Policies and procedures have been updated to reflect documentation and compliance standards. Ongoing monitoring and periodic staff retraining continue to support program integrity and compliance with federal requirements. Moving forward, responsibility for managing the sliding fee discount process will transition from front-desk personnel to the Revenue Cycle department to ensure stronger oversight and accountability.

View Audit 380010

Finding 1168188 (2024-007)

Material Weakness 2024

County of Humboldt

CA

Eligibility Internal Control / Segregation of Duties Subrecipient Monitoring

Condition: During the review of 60 sampled cases, 2 cases were found where redeterminations were performed outside the required 12-month window, indicating non-compliance with federal renewal timing requirements. And one of the two cases were deemed ineligible during the re-evaluation. Recommendatio...

Condition: During the review of 60 sampled cases, 2 cases were found where redeterminations were performed outside the required 12-month window, indicating non-compliance with federal renewal timing requirements. And one of the two cases were deemed ineligible during the re-evaluation. Recommendation: CLA recommends that the County implement or reinforce tracking procedures, such as a monitoring checklist, to ensure lead and supervisor reviews are completed and accountability is maintained. Additionally, CLA recommends that the County conduct targeted refresher training for staff and supervisors on renewal timelines and review protocols to strengthen procedural compliance and minimize errors. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action planned in response to finding: Retrain supervisory staff and line-staff regarding the importance of timely redetermination. Increase reporting, especially exceptions reporting, on the status of outstanding redeterminations. Commitment to continued periodic trainings. Name(s) of the contact person(s) responsible for corrective action: Connie Beck Planned completion date for corrective action plan: Fiscal year ended June 30, 2026

View Audit 379965

Finding 1168128 (2024-001)

Material Weakness 2024

Instituto Para El Desarrollo Socio Economico Y De Vivienda De P.r.,inc

PR

Subrecipient Monitoring Reporting Internal Control / Segregation of Duties § 200.512

Corrective Action Plan For the Year Ended December 31, 2023 Finding Reference Number: 2023-001 Finding Title: Late Submission of Single Audit Report Corrective Action Plan: INDESOVI de P.R., Inc. acknowledges the late filing of the Single Audit Report for the fiscal year ended December 31, 2023. The...

Corrective Action Plan For the Year Ended December 31, 2023 Finding Reference Number: 2023-001 Finding Title: Late Submission of Single Audit Report Corrective Action Plan: INDESOVI de P.R., Inc. acknowledges the late filing of the Single Audit Report for the fiscal year ended December 31, 2023. The report was submitted on February 27, 2025, which was 150 days after the required deadline of September 30, 2024. To correct and prevent recurrence of this finding, the following steps have been implemented:  Compliance Calendar: A compliance calendar has been developed and implemented to track all key federal reporting deadlines, including the Single Audit Report due date.  Assignment of Responsibility: The Controller has been designated as responsible for monitoring audit progress and ensuring timely submission of the audit package to the FAC.  Earlier Audit Scheduling: Audit planning and fieldwork will be scheduled earlier in the fiscal year to allow sufficient time for completion of audit procedures and report submission.  Oversight by Management: Senior management will review the compliance calendar quarterly to verify that all reporting requirements are on track for timely completion. Anticipated Completion Date: The corrective action plan has already been implemented as of March 2025.

View Audit 379859

Finding 1168073 (2024-001)

Material Weakness 2024

Walnut Hills Redevelopment Foundation

OH

Material Weakness Matching / Level of Effort / Earmarking Internal Control / Segregation of Duties

Reference Number: 2024-001 Internal control material weakness Program: 21.027 CORONAVIRUS STATE AND LOCAL FISCAL RECOVERY FUNDS Condition: The agreements to receive these grants and loan them out to a specific development project were signed in July and October 2024 for $648,718 and $525,000, respec...

Reference Number: 2024-001 Internal control material weakness Program: 21.027 CORONAVIRUS STATE AND LOCAL FISCAL RECOVERY FUNDS Condition: The agreements to receive these grants and loan them out to a specific development project were signed in July and October 2024 for $648,718 and $525,000, respectively. The funds for the July agreement of $648,718 were received by the entity and paid back out to the development project. The $648,718 was recorded to the general ledger twice. It was recorded once when the funds were received and paid out to the development project and a second time when the Organization was closings its books for the fiscal year. When the funds were paid out to the development, the funds were also incorrectly recorded as an expense instead of a loan receivable. Recommendation: The Organization should employ financial literate staff who are familiar with GAAP accounting to ensure financial transactions are recorded in accordance with current accounting standards. Also, the Organization should implement a process for a final detailed review of financial data when performing post-closing audit adjustments to ensure proper and complete capture of all transactions. Current Status: The recommendation is in process of being implemented. Management’s Response: Management understands the audit findings and the associated risks and will take the appropriate action to hire either staff or vendors with appropriate financial statement review skills and knowledge of GAAP. The organization will implement a process for a final detailed financial statement review before providing final yearend financial statements to the auditors.

View Audit 379771

Finding 1168068 (2024-002)

Material Weakness 2024

City of McKeesport

PA

Allowable Costs / Cost Principles Internal Control / Segregation of Duties Reporting § 200.403

CONDITION: During the calendar year 2024, the City did not utilize a formal general ledger system of accounting to track the financial activity (financial position and results of operations) for several ‘Funds’ held at the City. The activity of these funds is either 1) maintained in spreadsheet fash...

CONDITION: During the calendar year 2024, the City did not utilize a formal general ledger system of accounting to track the financial activity (financial position and results of operations) for several ‘Funds’ held at the City. The activity of these funds is either 1) maintained in spreadsheet fashion similar to a checkbook used in personal finances, 2) recorded partially (expenses only with no revenue), or 3) not tracked at all. As these funds are not maintained using the City’s accounting software package, management does not have the ability to efficiently generate financial reports necessary to provide management with the proper fiscal oversight. This condition included the American Rescue Plan Act (ARPA) funding known as the Coronavirus State and Local Fiscal Recovery Fund. However, it should be noted that City personnel were able to prepare spreadsheets to document which expenditures were utilized to prepare the necessary quarterly reporting requirements to the Department of Treasury. This is a repeat finding (2023-002) from the prior year. CRITERIA: Prudent internal control procedures in the areas of general ledger management and financial reporting include maintaining a formal general ledger system of accounting to track the activity of all ‘Funds’ maintained by the City. In specific as it relates to federal programs, Section 2 CFR 200.403(g) of the Uniform Guidance requires that federal costs must be adequately documented which would include the maintaining of a formal general ledger system of accounting for all ‘Funds’ of the City. MANAGEMENT’S CORRECTIVE ACTION PLAN: Management of the City is continuing to assess the current workload and expertise of the City’s business office personnel in an effort to determine a feasible timeframe to continue the process of creating a formal general ledger system of accounting for all City ‘Funds’ that are not already entered into the software accounting system. The timeframe for completion of this review will occur during the first nine months of calendar year 2026 with the intention of having the City be in full compliance with Section 2 CFR 200.403(g) of the Uniform Guidance which requires federal costs to be adequately documented which would include the maintaining of a formal general ledger system of accounting for all ‘Funds’ of the City.

View Audit 379705

Finding 1168067 (2024-001)

Material Weakness 2024

City of McKeesport

PA

Allowable Costs / Cost Principles Internal Control / Segregation of Duties Reporting § 200.403 § 200.516

CONDITION: During the calendar year 2024, the City did not record the necessary adjustments to the various ‘Fund’ general ledgers of the City to properly reconcile the balance sheet accounts, such as cash, receivables, payables, and payroll-related liabilities to the underlying supporting documentat...

CONDITION: During the calendar year 2024, the City did not record the necessary adjustments to the various ‘Fund’ general ledgers of the City to properly reconcile the balance sheet accounts, such as cash, receivables, payables, and payroll-related liabilities to the underlying supporting documentation available at the City (which includes reconciliations of cash prepared independently by City personnel but do not agree to amounts reported in the various general ledgers). This included ‘Funds” containing significant federal funding such as the City’s Community Development Block Grant (CDBG) Program and American Rescue Plan Act (ARPA) funding known as the Coronavirus State and Local Fiscal Recovery Fund.CONDITION (Continued): As a result, the financial position and results of operations as shown throughout the calendar year were inaccurately stated. However, it should be noted that the Community Development Department of the City and other City personnel maintain separate financial reporting for these federal funds, independent of the aforementioned ‘Fund’ general ledgers sufficient to ascertain the revenues and expenditures of the federal programs. This is a repeat finding (2023-001) for the prior year. CRITERIA: Prudent internal control procedures in the areas of general ledger management and financial reporting include the reconciliation of all general ledger account balances to underlying supporting documentation monthly with independent oversight and approval as part of the process. In specific as it relates to federal programs, Section 2 CFR 200.403(g) of the Uniform Guidance requires that federal costs must be adequately documented which would include the applicable general ledgers of the City. MANAGEMENT’S CORRECTIVE ACTION PLAN: Management of the City is continuing their review of the recommended options as presented by the Audit Firm’s recommendation for feasibility considering current manpower, expertise, and budgetary constraints. In addition, the City plans to ensure that written procedures for all accounting functions are implemented, reviewed and updated as necessary with the objective of ensuring that all balance sheet account balances are supported by the underlying documentation available at the City. The timeframe for completion of this review will occur during the first nine months of calendar year 2026 with the intention of having the City be in full compliance with Section 2 CFR 200.403(g) of the Uniform Guidance which requires federal costs to be adequately documented which would include the applicable general ledgers of the City.

View Audit 379705

Finding 1167989 (2024-001)

Material Weakness 2024

Northern Arizona Intergovernmental Public Transportation Authority

AZ

Material Weakness Reporting Internal Control / Segregation of Duties § 200.512

Finding Number: 2024‐001 Program Names/Assistance Listing Titles: Assistance Listing Numbers: Community Project Funding Congressionally Directed Spending 20.534 Federal Transit Cluster 20.507, 20.526 Contact Person: Megan Coons, Finance Director Anticipated Completion Date: March 31, 2026 Planned Co...

Finding Number: 2024‐001 Program Names/Assistance Listing Titles: Assistance Listing Numbers: Community Project Funding Congressionally Directed Spending 20.534 Federal Transit Cluster 20.507, 20.526 Contact Person: Megan Coons, Finance Director Anticipated Completion Date: March 31, 2026 Planned Corrective Action: The Authority will develop formal written procedures and standardized templates to support real‐time monitoring and reconciliation of accounting transactions and account balances. All finance staff will also attend formal training sessions sponsored by the Authority's accounting system vendor to ensure that all transactions are properly recorded in the system in accordance with GAAP. Lastly, the Authority will develop an audit timeline and checklist of year‐end procedures to ensure timely single audit completion.

View Audit 379652

Corrective Action Plans

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