Corrective Action Plans

Finding 575874 (2024-001)

Material Weakness 2024

United Auto Workers Senior Citizens' Center Inc.

IL

HUD Housing Programs Internal Control / Segregation of Duties Material Weakness

Segregation of Duties Recommendation: When this condition exists, management’s and the board’s close supervision and review of accounting information is the best means of preventing or detecting errors and fraud. Explanation of disagreement with audit finding: There is no disagreement with the audit...

Segregation of Duties Recommendation: When this condition exists, management’s and the board’s close supervision and review of accounting information is the best means of preventing or detecting errors and fraud. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action planned in response to finding: We agree and will continue to monitor financial results and accounting information as hiring additional employees is not practical. Name(s) of the contact person(s) responsible for corrective action: Donald Bly Planned completion date for corrective action plan: In process If the U.S. Department of Housing and Urban Development has questions regarding this plan, please call Donald Bly at 309-347-7791.

View Audit 365821

Finding 575846 (2024-001)

Significant Deficiency 2024

Forest Preserve District of Dupage County

IL

Internal Control / Segregation of Duties

Finding 2024 – 001: Audit Journal Entries Condition: During audit fieldwork, our testing resulted in significant audit adjustments in order to present materially accurate financial statements. Plan: The Interim Director of Finance, along with staff, will review year-end adjustments as part of the au...

Finding 2024 – 001: Audit Journal Entries Condition: During audit fieldwork, our testing resulted in significant audit adjustments in order to present materially accurate financial statements. Plan: The Interim Director of Finance, along with staff, will review year-end adjustments as part of the audit preparation process and work to reduce the number of entries proposed by the auditors and prepare fully adjusted financial statements prior to audit fieldwork. Anticipated Date of Completion: 2.1.26 Name of Contact Person: Brian Kuszewski, Interim Director of Finance Management Response Management acknowledges this comment and will work to correct in the coming year.

View Audit 365816

Finding 575838 (2024-003)

Material Weakness 2024

Tulare County Regional Transit Agency

CA

Reporting Internal Control / Segregation of Duties § 200.303 § 200.502 § 200.510

Finding 2024-003 – Preparation of Schedule of Expenditures of Federal Awards (SEFA) (Material Weakness) (Repeat Finding) Corrective Action Plan Strengthening Internal Controls • Implement a formal SEFA preparation checklist aligned with the Uniform Guidance. • Require dual-level review (Finance Ma...

Finding 2024-003 – Preparation of Schedule of Expenditures of Federal Awards (SEFA) (Material Weakness) (Repeat Finding) Corrective Action Plan Strengthening Internal Controls • Implement a formal SEFA preparation checklist aligned with the Uniform Guidance. • Require dual-level review (Finance Manager and Executive Director) of all SEFA schedules before submission to external auditors. • Establish reconciliation procedures that tie SEFA expenditures to the general ledger, grant agreements, and drawdown records. Year-End Closing Procedures • Revise year-end close calendar to include specific SEFA preparation deadlines and review steps. • Require supporting documentation (trial balance reports, grant reconciliations, and expenditure detail by funding source) to be retained and cross-referenced to the SEFA. Training • Provide targeted training to finance and grants staff on SEFA preparation, Uniform Guidance requirements, and OMB Compliance Supplement updates. • Require annual refresher training for staff responsible for grant accounting and reporting. Responsible Parties • Finance Director (Primary) • Executive Director (Oversight and Resources) Anticipated Completion Date Full implementation by June 30, 2025 (in time for fiscal year 2024-2025 reporting cycle).

View Audit 365807

Finding 575831 (2024-002)

Significant Deficiency 2024

City of Lake Lillian

MN

Internal Control / Segregation of Duties

Segregation of Duties

View Audit 365805

Finding 575831 (2024-002)

Significant Deficiency 2024

City of Lake Lillian

MN

Internal Control / Segregation of Duties

Name of Contact Person: Casey Ochs, City Clerk

View Audit 365805

Finding 575831 (2024-002)

Significant Deficiency 2024

City of Lake Lillian

MN

Internal Control / Segregation of Duties

Correction Action: The finance related tasks will be separated as much as possible and alternative controls will be used to compensate for the lack of separation. The City Council will become more involved in providing some of these controls.

View Audit 365805

Finding 575831 (2024-002)

Significant Deficiency 2024

City of Lake Lillian

MN

Internal Control / Segregation of Duties

Proposed Completion Date: The City Council will implement the above procedures immediately.

View Audit 365805

Finding 575821 (2024-001)

Material Weakness 2024

Beacon, Inc.

IN

Internal Control / Segregation of Duties Material Weakness Reporting

2024 CORRECTIVE ACTION PLAN July 30, 2025 Beacon, Inc. respectfully submits the following Corrective Action Plan for the year ended December 31, 2024. Name and address of independent public accounting firm: Blue & Co., LLC 720 E Pete Rose Way, Suite 100 Cincinnati, OH 45202 Audit period: January 0...

2024 CORRECTIVE ACTION PLAN July 30, 2025 Beacon, Inc. respectfully submits the following Corrective Action Plan for the year ended December 31, 2024. Name and address of independent public accounting firm: Blue & Co., LLC 720 E Pete Rose Way, Suite 100 Cincinnati, OH 45202 Audit period: January 01, 2024 - December 31, 2024 Beacon, Inc.’s response to the findings from the December 31, 2024 schedule of findings and questioned costs are discussed below. The findings are numbered consistently with the numbers assigned in the schedule. Financial Statement Findings 2024-001 Finding: Preparation of Financial Statements Management’s response: Management concurs with the above finding and, accordingly, has engaged the auditors to assist with the preparation of the 2024 year-end external financial statements. Action planned: Engagement of the auditors to assist with the preparation of the 2024 year-end external financial statements. Management is currently reviewing the procedures and controls in place to address the preparation and review of external year-end financial statements and will revise and enhance as warranted. Implementation Date: Ongoing Responsible Person: Rev Forrest Gilmore, Executive Director Respectfully submitted, _________________________________________________________ Rev. Forrest Gilmore Executive Director

View Audit 365803

Finding 575820 (2024-001)

Significant Deficiency 2024

Genesis Nonprofit Housing Corporation

MI

Eligibility HUD Housing Programs Significant Deficiency

The Corporation contacted the local Continuum of Care and regional HUD office in an effort to verify the required number of units occupied by individuals meeting the definition of "homeless". The local Continuum of Care had no record of the original grant agreement or required number of "homeless" t...

The Corporation contacted the local Continuum of Care and regional HUD office in an effort to verify the required number of units occupied by individuals meeting the definition of "homeless". The local Continuum of Care had no record of the original grant agreement or required number of "homeless" to be served. The Corporation contacted three staff in the regional HUD office, including the staff that had been our representative for annually renewed operation and support service grants for the two projects. Regional HUD staff were not able to provide a copy of the original grant agreements which would indicate the number of persons to be served by each project. HUD staff stated that they do not keep copies of grant agreements longer than seven years. Corporation management will continue to work with HUD personnel to determine the continuing compliance requirements of the Continuum of Care funding received for initial construction or rehabilitation. Corporation management will continue to serve individuals meeting the definition of homelessness at its two projects and document evidence in the file.

View Audit 365801

Finding 575802 (2024-001)

Material Weakness 2024

Mary Lee Community

TX

Eligibility HUD Housing Programs Reporting

Recommendation: The Cornerstone and Legacy projects were disposed of by sale and contribution, respectively, and all HOME-related loans and related compliance requirements were assumed by Foundation Communities (an unrelated nonprofit organization) or one of its affiliates during May 2024. Therefore...

Recommendation: The Cornerstone and Legacy projects were disposed of by sale and contribution, respectively, and all HOME-related loans and related compliance requirements were assumed by Foundation Communities (an unrelated nonprofit organization) or one of its affiliates during May 2024. Therefore, we have no recommendation for this finding. Action taken: Management agrees with the finding. No action is needed.

View Audit 365790

Finding 575798 (2024-001)

Significant Deficiency 2024

Cherokee Hills Utility District

TN

Internal Control / Segregation of Duties

Due to the size of the District's administration and limited number of employees, total segregation of duties is not feasible at this time. The Board of Commissioners will continue to be closely involved in financial reporting and will continue to provide oversight in order to mitigate risk of misap...

Due to the size of the District's administration and limited number of employees, total segregation of duties is not feasible at this time. The Board of Commissioners will continue to be closely involved in financial reporting and will continue to provide oversight in order to mitigate risk of misappropriation of assets.

View Audit 365778

Finding 575796 (2024-005)

Material Weakness 2024

Union County Fiscal Court

KY

Procurement, Suspension & Debarment Allowable Costs / Cost Principles Material Weakness

Prepared by: Lissa Gibson, Union County Treasurer Date Prepared: 6-20-2025 Person Responsible for Corrective Action Plan: Jill Hunley or Kim Nance Anticipated Completion Date: Already jmplemented Official's Response: This is a rollover comment from FY 22 and 23 regarding expenditures in general....

Prepared by: Lissa Gibson, Union County Treasurer Date Prepared: 6-20-2025 Person Responsible for Corrective Action Plan: Jill Hunley or Kim Nance Anticipated Completion Date: Already jmplemented Official's Response: This is a rollover comment from FY 22 and 23 regarding expenditures in general. If purchase orders are not issued on the day of purchase they were dated the date the invoices were received. This has been corrected to match the date of invoice.

View Audit 365767

Finding 575782 (2024-001)

Material Weakness 2024

Overdose Lifeline, Inc.

IN

Internal Control / Segregation of Duties Allowable Costs / Cost Principles Material Weakness

Finding 2024-01 Financial Close Process Condition: The auditors noted a lack of a strong financial close process which led to several material audit adjustments that were proposed during the audit and recorded by the client to properly reflect various financial statement accounts. Corrective Actio...

Finding 2024-01 Financial Close Process Condition: The auditors noted a lack of a strong financial close process which led to several material audit adjustments that were proposed during the audit and recorded by the client to properly reflect various financial statement accounts. Corrective Actions Taken or Planned: The Organizations’ Board and Executive Team consisting of the CEO, COO and key Organization staff to include the independent bookkeeper and Grant and Finance Manager recognize the need to further significantly improve on the oversight and reconciliation of the financial statement process. The team will develop processes to include but not limited to. - A comprehensive financial close process will be formalized and documented. This process will include clear timelines, task ownership, and internal controls to ensure the timely and accurate reconciliation of all accounts prior to audit submission. - Beginning in 2025, all financial transactions and balances will undergo rigorous monthly reviews to ensure proper classification in the correct financial statement accounts, reducing the likelihood of errors. - Quarterly meetings will occur to review entries and approval of entry assignment will occur.

View Audit 365764

Finding 575781 (2024-001)

Significant Deficiency 2024

City of Chisholm

MN

Internal Control / Segregation of Duties Reporting Significant Deficiency

The City Clerk-Treasurer will attempt to monitor transactions and structure the duties of the office personnel to ensure as much segregation of duties as possible within the City's staffing limitations and funding constraints.

View Audit 365757

Finding 575780 (2024-001)

None 2024

Town of Foxborough, Massachusetts

MA

Internal Control / Segregation of Duties

July 28, 2025 The Town of Foxborough, Massachusetts respectfully submits the following corrective action plan for the year ended June 30, 2024. Name and address of independent public accounting firm: Robert E. Brown II, CPA 25 Cemetery Street P.O. Box 230 Mendon, Massachusetts 01756 Audit perio...

July 28, 2025 The Town of Foxborough, Massachusetts respectfully submits the following corrective action plan for the year ended June 30, 2024. Name and address of independent public accounting firm: Robert E. Brown II, CPA 25 Cemetery Street P.O. Box 230 Mendon, Massachusetts 01756 Audit period: The finding from the June 30, 2024 schedule of findings and questioned costs is discussed below. The finding is numbered consistently with the number assigned in the schedule of expenditures of federal awards. Finding 2024-001 – Education Stabilization Fund – AL No. 84.425U Department of Education Massachusetts Department of Elementary and Secondary Education Other Matters Related to Internal Control over Compliance of the Major Program Criteria: Where employees work solely or partially on a single Federal program or cost objective, their salaries or wages must be supported by periodic certification that the employee worked on this program for the period covered by the program. The certifications should be prepared at least semi-annually, and should be signed by the employee or supervisory official having first-hand knowledge of the work performed by the employee. Condition: During our test of controls over compliance with time and effort certifications the Town was not able to provide evidence that the required certifications of time and effort for those employees whose time was spent either completely or partially spent on this program was performed as required by Uniform Guidance. Questioned Costs: Unknown Context: During our test of payroll transactions of the major program (Education Stabilization Fund) it was noted that 2 of the employees charged to this major program had time and effort certifications that were only completed annually as opposed to being prepared at least semi-annually. Effect: The Town was not in compliance with the time and effort certification requirements. Cause: In Fiscal Year 2024, the employee in charge of grant management was under the assumption that annual time and effort certifications were sufficient. Individuals involved with the grants were informed in Fiscal Year 2025 that semi-annual time and effort certifications were required. Identification as a Repeat Finding: N/A Recommendation: We recommend the Town of Foxborough follow procedures to ensure that semi-annual certifications and/or monthly certifications are prepared and signed by either the employees and/or supervisory official having first-hand knowledge of the work performed by the employees in a timely manner in order to comply with the time and effort certification requirement. Responsible for Corrective Plan: Karin Sheridan, School Business Administrator Estimated Completion Date: This process of semi-annually began with Fiscal Year 2025. Action Taken: Individuals involved with grant management began the process of semi-annual certifications in Fiscal Year 2025.

View Audit 365754

Finding 575775 (2024-002)

Material Weakness 2024

Community Action Team, Inc.

OR

Procurement, Suspension & Debarment Subrecipient Monitoring Material Weakness § 200.303

2024-002 Federal Award Special Reporting - Federal Funding Accountability and Transparency Act (FFATA)- Material Non-Compliance and Material Weakness in Internal Controls over Compliance (Repeat of finding 2023-003} Recommendation: The Organization should establish written policies and procedures r...

2024-002 Federal Award Special Reporting - Federal Funding Accountability and Transparency Act (FFATA)- Material Non-Compliance and Material Weakness in Internal Controls over Compliance (Repeat of finding 2023-003} Recommendation: The Organization should establish written policies and procedures regarding review of grant agreements for compliance requirements along with written policies and procedures for first-tier subawards including tracking and proper internal control procedures. Action Taken: Management concurs with the finding and has defined corrective action to address it. We understand a material weakness is identified in the internal control over special reporting. We have identified gaps in our reporting processes and worked to implement changes to ensure compliance with special reporting requirements. The responsibility for reporting under the Federal Funding Accountability and Transparency Act (FFATA) will be within the Fiscal Department. Policies and procedures will be updated regarding special reporting requirements. The Fiscal department will also be responsible for reviewing all contracts to identify all compliance requirements. Tracking procedures will be implemented to ensure reports are filed timely. The above identified corrective action was implemented in July 2024. Stacey Wilson, Fiscal Director, has implemented a tracking system for the FFATA.

View Audit 365745

Finding 575774 (2024-002)

Material Weakness 2024

North Valley Caring Services

CA

Eligibility Internal Control / Segregation of Duties Subrecipient Monitoring § 200.302

Management concurs with the finding and will revise procedures to ensure detailed, timely recording of USDA Foods distributions. Staff will receive training on documentation requirements, and management will implement periodic compliance reviews. These corrective actions are expected to be complet...

Management concurs with the finding and will revise procedures to ensure detailed, timely recording of USDA Foods distributions. Staff will receive training on documentation requirements, and management will implement periodic compliance reviews. These corrective actions are expected to be completed by March 1, 2025.

View Audit 365739

Finding 575769 (2024-002)

Material Weakness 2024

Catherine's Health Center

MI

Special Tests & Provisions Subrecipient Monitoring Eligibility

Recommendation – We recommend the Center provide proper training to employees to ensure that the sliding fee discounts are being properly applied and documented. In addition to implementing policies and procedures to ensure the sliding fee discounts are being properly monitored and supervised on a ...

Recommendation – We recommend the Center provide proper training to employees to ensure that the sliding fee discounts are being properly applied and documented. In addition to implementing policies and procedures to ensure the sliding fee discounts are being properly monitored and supervised on a periodic basis to ensure compliance. Action Taken – We concur with the audit finding. While the Center has a policy that meets the compliance requirements, management is responsible for the implementation and monitoring of those processes and procedures. Additional staff training on slide fee discounts is in place and quarterly review and testing of compliance with Center sliding fee discount policy is ongoing.

View Audit 365733

Finding 575723 (2024-001)

Significant Deficiency 2024

Oak Street Senior Apartments INC

MI

Questioned Costs HUD Housing Programs Reporting

OAK STREET SENIOR APARTMENTS, INC. HUD PROJECT NO. 048-EE018 CORRECTIVE ACTION PLAN YEAR ENDED DECEMBER 31, 2024 Oak Street Senior Apartments, Inc. respectfully submits the following corrective action plan for the year end December 31, 2024. Auditor: Maner Costerisan 2425 E. Grand River Ave. Suite 1...

OAK STREET SENIOR APARTMENTS, INC. HUD PROJECT NO. 048-EE018 CORRECTIVE ACTION PLAN YEAR ENDED DECEMBER 31, 2024 Oak Street Senior Apartments, Inc. respectfully submits the following corrective action plan for the year end December 31, 2024. Auditor: Maner Costerisan 2425 E. Grand River Ave. Suite 1 Lansing, MI 48912 Audit Period: Year ended December 31, 2024 Corporation Contact Person: Elliott Broderick, Management Agent Representative The finding from the December 31, 2024 schedule of findings and questioned costs are discussed below. The finding is numbered consistently with the number assigned in the schedule. Finding – Federal Award Findings and Questioned Costs Finding 2024-001: Considered a significant deficiency in internal control over financial reporting Recommendation: The Corporation should ensure that there are proper internal controls in place over financial reporting to ensure accurate and timely submission of financial transactions, including monthly replacement reserve deposits. Action to be Taken: The Management agent concurs with the facts of this finding and as properly funded the replacement reserve account in 2025.

View Audit 365715 Questioned Costs: $1

Finding 575678 (2024-001)

Material Weakness 2024

The Praxis Project

CA

Reporting Internal Control / Segregation of Duties § 200.501

CORRECTIVE ACTION PLAN July 10, 2025 Cognizant or Oversight Agency for Audit The Praxis Project, Inc. (the Organization) respectfully submits the following corrective action plan for the year ended December 31, 2024. Name and address of independent public accounting firm: AAFCPAs, Inc. 50 Wash...

CORRECTIVE ACTION PLAN July 10, 2025 Cognizant or Oversight Agency for Audit The Praxis Project, Inc. (the Organization) respectfully submits the following corrective action plan for the year ended December 31, 2024. Name and address of independent public accounting firm: AAFCPAs, Inc. 50 Washington Street Westborough, MA 01581 Audit period: January 1, 2024 - December 31, 2024 The findings from the July 10, 2025 Schedule of Findings and Questioned Costs are discussed below. The findings are numbered consistently with the numbers assigned in the schedule. FINDINGS-FEDERAL AWARD PROGRAMS AUDITS 2024-001 Schedule of Federal Awards Management Recommendation: We recommend that the Organization implement formal procedures to regularly track and monitor cumulative Federal expenditures across all departments, projects and programs. This should include a centralized review process on at least a quarterly basis to assess whether the Single Audit threshold is approaching or exceeded. Procedures should be updated to include: · Establishing a formal process to track all Federal awards on an ongoing basis, including grant numbers, Assistance Listing Numbers (ALNs), contract periods, award amounts, and qualifying expenditures. · Calculating Federal expenditures based upon expenses incurred rather than cash received or invoiced. · Assigning responsibility to a specific individual or department for maintaining the SEFA throughout the year. · Implement quarterly monitoring procedures to track cumulative Federal expenditures and proactively assess whether the Single Audit threshold is likely to be met. · Ensure that program managers and finance personnel are regularly trained to understand the reporting, compliance and audit requirements tied to Federal awards. Implementing these steps will improve the Organization's ability to meet Federal reporting deadlines and meet compliance and audit requirements. 2024-001 Schedule of Federal Awards Management (Continued) Action Taken: In response to the finding, we are taking the following corrective actions: · Effective June 24, 2025, the finance department will implement a standardized process for tracking all Federal awards. · We will ensure that all Federal expenditures are tracked and reported on an incurred-expense basis. · The responsibility for maintaining and updating the SEFA will be formally assigned to the Assistant Director of Finance. · Beginning in the next fiscal quarter, the finance team will conduct quarterly reviews of cumulative Federal expenditures to proactively assess our proximity to the Single Audit threshold. Findings will be documented and reviewed by the Sr. Director of Finance. · We will ensure program managers, finance personnel, and the FS Team are aware and understand Federal compliance, reporting requirements, and audit thresholds. We believe these actions will significantly strengthen our compliance framework, enhance transparency, and ensure that the Organization remains fully prepared for future audits.

View Audit 365689

Finding 575672 (2024-001)

Significant Deficiency 2024

City of Glendora

CA

Reporting Matching / Level of Effort / Earmarking Internal Control / Segregation of Duties § 200.512

Contact Person: Kyle Johnson, Finance Director Corrective Action Plan: The City will review and update internal policies and procedures related to Single Audit completion and submission to ensure compliance with Uniform Guidance. The City is actively working with the part time employees and consulta...

Contact Person: Kyle Johnson, Finance Director Corrective Action Plan: The City will review and update internal policies and procedures related to Single Audit completion and submission to ensure compliance with Uniform Guidance. The City is actively working with the part time employees and consultant to document the procedures and strengthen internal controls. Anticipated Completion Date: March 31, 2026.

View Audit 365679

Finding 575670 (2024-005)

Significant Deficiency 2024

Indiana Diaper Bank, Inc.

IN

Subrecipient Monitoring Eligibility Reporting

Finding 2024-05 Inadequate System of Internal Controls over Benefit Limitation Condition: The Organization is required by the federal grant award to limit eligible client families to a maximum of eleven diapering supply "package" distributions per participating child over the course of the grant ag...

Finding 2024-05 Inadequate System of Internal Controls over Benefit Limitation Condition: The Organization is required by the federal grant award to limit eligible client families to a maximum of eleven diapering supply "package" distributions per participating child over the course of the grant agreement period. While the program design includes efforts to control this requirement, the eligibility database lacks the capability to assign or track unique participant identifiers needed to reliably enforce this limit. Additionally, there is no documentation to demonstrate that processes related to benefit limits are periodically reviewed or monitored. Due to the nature of recordkeeping in this area, testing compliance is challenging. Although no instances of noncompliance were identified in the sample tested, the Organization has not implemented an adequate system of internal controls to ensure consistent compliance with this grant criterion. Corrective Actions Taken or Planned: The Organization will transition to Pantry Soft a new CRM to track benefit limitation and mandatory documentation. We will include mandatory eligibility fields and document upload requirements before service can be recorded. We will develop a standardized eligibility checklist to be completed for all new and returning participants. Staff will be trained on Pantry Soft usage, eligibility requirements and document retention stands.

View Audit 365678

Finding 575669 (2024-004)

Significant Deficiency 2024

Indiana Diaper Bank, Inc.

IN

Questioned Costs Internal Control / Segregation of Duties Subrecipient Monitoring § 200.303

Finding 2024-04 Insufficient Documentation Supporting Eligibility Determination Condition: The Organization uses a database to collect and store documentation related to eligibility determinations for program participants. While this tool was used consistently throughout the year, the audit identif...

Finding 2024-04 Insufficient Documentation Supporting Eligibility Determination Condition: The Organization uses a database to collect and store documentation related to eligibility determinations for program participants. While this tool was used consistently throughout the year, the audit identified a lack of documented review procedures to verify that eligibility criteria were appropriately assessed and that all required documentation was obtained and retained. There is no established process to review or confirm the completeness and accuracy of eligibility documentation within the database. As a result, three of the sixty transactions tested did not include sufficient documentation to support eligibility determinations, representing instances of noncompliance with the eligibility requirements under the federal program. Corrective Actions Taken or Planned: The Organization will transition to Pantry Soft, a new CRM to centralize client records, eligibility documentation and service dates. We will include mandatory eligibility fields and document upload requirements before service can be recorded. We will develop a standardized eligibility checklist to be completed for all new and returning participants. Staff will be trained on Pantry Soft usage, eligibility requirements and document retention stands.

View Audit 365678 Questioned Costs: $1

Finding 575668 (2024-003)

Material Weakness 2024

Indiana Diaper Bank, Inc.

IN

Questioned Costs Allowable Costs / Cost Principles Internal Control / Segregation of Duties § 200.302 § 200.403

Finding 2024-03 Insufficient Documentation of Other Direct Expenses Condition: During testing of direct costs charged to the federal program, the Organization did not maintain sufficient documentation to fully support all expenditures claimed. In one instance, a receipt supporting a claimed expense...

Finding 2024-03 Insufficient Documentation of Other Direct Expenses Condition: During testing of direct costs charged to the federal program, the Organization did not maintain sufficient documentation to fully support all expenditures claimed. In one instance, a receipt supporting a claimed expense was missing. In three additional cases, although the expenditures were generally supported, the documentation did not clearly reflect how the amounts allocated to the major federal program were determined. While these issues were isolated and the known and likely questioned costs were immaterial, the lack of complete documentation represents noncompliance with federal requirements for allowable costs. Corrective Actions Taken or Planned: The Organization will develop written guidelines specifying the required supporting documentation for each type of direct expense. Set up vendors in QuickBooks. We will hire and train Finance Manager to manage and track revenue and expenses, QuickBooks, grant reporting etc. All receipts and expenses will be scanned in and kept electronically. The Organization will provide training on documentation requirements, proper record submission, and compliance expectations.

View Audit 365678 Questioned Costs: $1

Finding 575666 (2024-001)

Material Weakness 2024

Indiana Diaper Bank, Inc.

IN

Material Weakness Reporting Equipment & Real Property Management

Finding 2024-01 Financial Close Process Condition: During the audit, it was noted that the Organization lacked a robust financial close and review process. This deficiency resulted in multiple material audit adjustments across key financial statement accounts, including inventory, accounts payable,...

Finding 2024-01 Financial Close Process Condition: During the audit, it was noted that the Organization lacked a robust financial close and review process. This deficiency resulted in multiple material audit adjustments across key financial statement accounts, including inventory, accounts payable, fixed assets, deferred revenue, and related activity accounts. These adjustments were proposed by the auditors and subsequently recorded by management to fairly present the financial statements in accordance with generally accepted accounting principles. The extent and materiality of the adjustments indicate that the Organization's existing closing procedures were insufficient to identify and correct errors prior to the audit. Corrective Actions Taken or Planned: The Organization will develop a financial close calendar with clear deadlines. We will create a standard operating procedure for account reconciliations, journal entries, and financial reporting with assignments to specifics staff. The Organization will implement a review and sign-off process for financial reports at board meetings. The Organization plans on hiring a part-time finance manager to help us with documentation and reporting.

View Audit 365678

Corrective Action Plans

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