Corrective Action Plans

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The organization implemented a digital data management platform called ClientTrack and begin to maintain client records for program years 2025 and thereafter to ensure the proper retention of all required client eligibility and service documentation. In addition, management will perform periodic sel...
The organization implemented a digital data management platform called ClientTrack and begin to maintain client records for program years 2025 and thereafter to ensure the proper retention of all required client eligibility and service documentation. In addition, management will perform periodic self-assessments to monitor compliance with eligibility documentation and record retention requirements. Certain participant files pertaining to enrollments prior to 2025 were lost due to flood damage at an o􀀁-site storage facility and were not recoverable.
Enhancements are being implemented to ensure all grant reporting requirements are met on a timely basis by creating a grant reporting calendar and deadlines.
Enhancements are being implemented to ensure all grant reporting requirements are met on a timely basis by creating a grant reporting calendar and deadlines.
A formal cost allocation plan is being finalized and will be presented to the Board for approval no later than the November 2026 meeting. The cost allocation plan is expected to be e􀀁ective retroactively as of January 1, 2026, and the organization has already implemented the plan’s allocation methodo...
A formal cost allocation plan is being finalized and will be presented to the Board for approval no later than the November 2026 meeting. The cost allocation plan is expected to be e􀀁ective retroactively as of January 1, 2026, and the organization has already implemented the plan’s allocation methodologies in the general ledger and grant reporting since that date.
Two additional accounting positions are being recruited to strengthen financial oversight and distribute key accounting functions, including reconciliations, grant reporting, and month-end close activities.
Two additional accounting positions are being recruited to strengthen financial oversight and distribute key accounting functions, including reconciliations, grant reporting, and month-end close activities.
Currently under development and expected to be presented to the Board for approval. The handbook will formalize financial reporting procedures, internal controls, grant compliance requirements, cash management practices, account reconciliations, approval workflows, and segregation of duties.
Currently under development and expected to be presented to the Board for approval. The handbook will formalize financial reporting procedures, internal controls, grant compliance requirements, cash management practices, account reconciliations, approval workflows, and segregation of duties.
Views of Responsible Officials and Planned Corrective Actions: Management agrees with the finding and will implement a policy to ensure a documented review process and reconciliation of costs to the report. The City will strengthen its internal controls over federal grant reporting and reimbursement...
Views of Responsible Officials and Planned Corrective Actions: Management agrees with the finding and will implement a policy to ensure a documented review process and reconciliation of costs to the report. The City will strengthen its internal controls over federal grant reporting and reimbursement requests by implementing formal, documented procedures for the preparation, review, approval, and submission of required grant reports and reimbursement requests. Responsibilities will be clearly assigned to appropriate personnel, with segregation of preparation and approval duties where practicable. The City will also implement a centralized tracking process to monitor grant reporting deadlines, reimbursement requests, and amounts received throughout the grant period. Supporting documentation and evidence of review and approval will be maintained to promote timely and accurate reporting and reduce the risk of duplicate or excess reimbursement requests. Responsible party and timeline for completion: The Controller will be responsible for implementation of the corrective action, which will be implemented immediately.
Views of Responsible Officials and Planned Corrective Actions: Management agrees with the finding and will implement a policy to ensure a documented review process and reconciliation of costs to the report. Responsible party and timeline for completion: The Controller will be responsible for oversee...
Views of Responsible Officials and Planned Corrective Actions: Management agrees with the finding and will implement a policy to ensure a documented review process and reconciliation of costs to the report. Responsible party and timeline for completion: The Controller will be responsible for overseeing the implementation of the corrective action plan and will ensure the appropriate personnel are involved in the review and reconciliation process. The corrective action plan will be implemented immediately and take place upon the next report submission.
Management acknowledges that, of the two federally funded contracts reviewed during the audit, one contract was identified as not containing all applicable federal contract provisions required by Appendix II to 2 CFR Part 200. The other contract reviewed did not result in this exception. The Town fo...
Management acknowledges that, of the two federally funded contracts reviewed during the audit, one contract was identified as not containing all applicable federal contract provisions required by Appendix II to 2 CFR Part 200. The other contract reviewed did not result in this exception. The Town followed the appropriate procurement process in selecting the contractor. The contractor was NHDOT LPA-certified/prequalified, the services were provided as required, and the expenditures were determined to be allowable, resulting in no questioned costs. The audit report specifically notes that the services were appropriately procured and ultimately deemed allowable. The project was administered through NHDOT's Local Public Agency (LPA) process. Contractors and subcontractors performing work through the LPA process are subject to NHDOT Office of Federal Compliance (OFC) approval requirements. The Town's administration of the project therefore included the State's LPA and OFC oversight requirements in addition to the Town's own procurement process. Management recognizes that this oversight does not replace the requirement to include all applicable federal provisions in the contract itself. Going forward, the Town will strengthen its review of contracts funded in whole or in part with federal awards to ensure that applicable federal contract provisions, including those required by Appendix II to 2 CFR Part 200, are identified and incorporated into future agreements. Planned implementation date of corrective action: September 28, 2026 Person responsible for corrective action: Joe Roark, Town Administrator
ELIGIBILITY Recommendation: The County should implement additional procedures to ensure case file reviews are being performed on a regular basis. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action planned in response to finding: Supervisor will sa...
ELIGIBILITY Recommendation: The County should implement additional procedures to ensure case file reviews are being performed on a regular basis. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action planned in response to finding: Supervisor will sample and perform a quality review on a quarterly basis to ensure case workers are accurately assessing eligibility. Review will be documented. Supervisor will review at least one casefile for each caseworker per quarter and randomly pull additional cases from new caseworkers. Name of the contact person responsible for corrective action: Charlene Dale, Human Services Supervisor Planned completion date for corrective action plan: December 31, 2026
Finding 1238615 (2025-001)
Material Weakness 2025
FINDING 2025-001 Finding Subject: COVID-19 – Coronavirus State and Local Fiscal Recovery Funds - Reporting Contact Person Responsible for Corrective Action: Lisa Clark/Benock Contact Phone Number and Email Address: 812-885-2502 lcbenock@knoxcounty.in.gov Views of Responsible for Corrective Action: W...
FINDING 2025-001 Finding Subject: COVID-19 – Coronavirus State and Local Fiscal Recovery Funds - Reporting Contact Person Responsible for Corrective Action: Lisa Clark/Benock Contact Phone Number and Email Address: 812-885-2502 lcbenock@knoxcounty.in.gov Views of Responsible for Corrective Action: We concur with the finding. Description of Corrective Action Plan: The annual reporting for fund 8950 – Coronavirus State and Local Fiscal Recovery Funds with the Treasury shall be reviewed by an independent accountant to verify that all the information is correct and reported per reporting compliance guidelines. In addition, the County Auditor will review the expenditures agree with the ledger. Anticipated Completion Date: April 30, 2027, the due date of the next annual reporting in 2027
Finding 2025-002 Federal Agency: U.S. Department of Housing and Urban Development Federal Program Titles: Housing Voucher Cluster Federal Catalog Numbers: 14.871 & 14.879 Noncompliance – N. Special Tests and Provisions - Housing Assistance Payment Non Compliance Material to the Financial Statements:...
Finding 2025-002 Federal Agency: U.S. Department of Housing and Urban Development Federal Program Titles: Housing Voucher Cluster Federal Catalog Numbers: 14.871 & 14.879 Noncompliance – N. Special Tests and Provisions - Housing Assistance Payment Non Compliance Material to the Financial Statements: No Significant Deficiency in Internal Control over Compliance for Special Tests and Provisions Criteria: PHAs must pay monthly HAP in amounts that agree to Line 12u of the HUD-50058 and are accurately reflected in the HAP contract and HAP register (24 CFR § 982.158 and 24 CFR Part 982, Subpart K). PHAs must adopt and maintain a payment standard schedule establishing voucher payment standards by bedroom size within the PHA’s jurisdiction (24 CFR § 982.505). Payment standards must generally be set within 90 percent to 110 percent of HUD-published Fair Market Rents (FMRs) or Small Area FMRs, as applicable, without HUD approval (24 CFR § 982.503(d)). PHAs are required to review payment standards annually and revise the schedule, as necessary, no later than three months following the effective date of new FMRs to remain within the basic range (24 CFR § 982.503(c)(3)). For new HAP contracts, the payment standard in effect at the time of HAP execution must be used. For existing HAP contracts, increases in payment standards must be applied no later than the earliest of a rent increase affecting the family share, the family’s next regular or interim reexamination, or one year after the effective date of the payment standard increase, unless applied earlier in accordance with the PHA’s Administrative Plan (24 CFR § 982.505(c)(4)). Condition: Based upon inspection of the Authority’s files and on discussion with management, it was determined the Authority applied incorrect payment standard amounts in calculating HAP. As a result, the HAP reported on Line 12u of the HUD-50058 were calculated using payment standards that were not applicable to the households at the time the HAP amounts were determined. Context: Of a sample size of fifty-six (56) tenant files, one (1) tenants' HAP reported on Line 12u of the HUD-50058s were calculated using payment standards that were not applicable to the households at the time of recertification. Our sample size is statistically valid. Known Questioned Costs: $908* * Represents HAP attributable to one (1) tenant file for which the Authority could not demonstrate compliance with housing assistance payment requirements. The questioned costs do not represent amounts determined to be ineligible but rather costs associated with the tenant that remained in noncompliance beyond the required recertification date. Cause: There is a significant deficiency in internal controls over the compliance for the special tests and provisions type of compliance related to housing assistance payments. The Authority has not maintained and monitored a system of internal controls that reasonably assures the program is in compliance. Effect: The Housing Voucher Cluster program is in non-compliance with the special tests and provisions compliance requirement related to the payment standards of housing assistance payments. Recommendation: We recommend the Authority design and implement internal control procedures that will reasonably assure compliance with the Uniform Guidance and the compliance supplement. Authority Response: The Authority accepts the recommendation of the auditor. The Authority will increase oversight in the Housing Voucher Cluster program to ensure that established internal control policies are being followed on a timely basis. Nicole Alexander, HCV Program Director, is responsible for implementing this corrective action by December 31, 2026.
Finding 2025-001: Federal Agency: U.S. Department of Housing and Urban Development Federal Program Titles: Housing Voucher Cluster Assistance Listing Numbers: 14.871 & 14.879 Non Compliance - E. Eligibility - Tenant Files Non Compliance Material to the Financial Statements: No Significant Deficiency...
Finding 2025-001: Federal Agency: U.S. Department of Housing and Urban Development Federal Program Titles: Housing Voucher Cluster Assistance Listing Numbers: 14.871 & 14.879 Non Compliance - E. Eligibility - Tenant Files Non Compliance Material to the Financial Statements: No Significant Deficiency in Internal Control over Compliance for Eligibility Criteria: Tenant Files. The PHA must do the following: As a condition of admission or continued occupancy, require the tenant and other family members to provide necessary information, documentation, and releases for the PHA to verify income eligibility (24 CFR sections 5.230, 5.609, and 982.516). These files are required to be maintained and available for examination at the time of audit. Condition: Based upon inspection of the Authority’s files and on discussion with management, there were documents that were unavailable for examination at the time of audit. Context: There are approximately 6,490 units. Of a sample size of fifty-six (56) tenant files, the following was noted: • HUD form 9886 was unable to be provided in 9 files • Citizen Declaration Section 214 form was unable to be provided in 7 files • Verification of income was unable to be provided in 1 file • Lead based paint form was unable to be provided in 1 file Known Questioned Costs: $15,432* * Represents HAP attributable to one (1) tenant file for which the Authority could not demonstrate compliance with eligibility requirements. The questioned costs do not represent amounts determined to be ineligible but rather costs associated with the tenant that remained in noncompliance beyond the required recertification date. Cause: There is a significant deficiency in internal controls over the eligibility type of compliance related to the maintenance of tenant files in the Housing Voucher Cluster. The Authority has not maintained and monitored a system of internal controls that reasonably assures the program is in compliance. Effect: The Authority is in non-compliance with the eligibility requirements of the Housing Voucher Cluster programs. Recommendation: We recommend the Authority design and implement internal control procedures that will reasonably assure compliance with the Uniform Guidance and the compliance supplement. Views of responsible officials and planned corrective action: The Authority accepts the recommendation of the auditor. The Authority will increase oversight in the Section 8 Housing Choice Vouchers Program to ensure that established internal control policies are being followed on a timely basis. Nicole Alexander, HCV Program Director, is responsible for implementing this corrective action by December 31, 2026.
CORRECTIVE ACTION PLAN (Concerning Finding 2025-001)- Procurement Policy for the Rural Development A ward Contact Person Responsible for Con-ective Action: Sharon Jackson, Town Manager Con-ective Action: The Town of Bethel will take the following actions to address finding 2025-001 The current Town ...
CORRECTIVE ACTION PLAN (Concerning Finding 2025-001)- Procurement Policy for the Rural Development A ward Contact Person Responsible for Con-ective Action: Sharon Jackson, Town Manager Con-ective Action: The Town of Bethel will take the following actions to address finding 2025-001 The current Town Manager was appointed by the Select Board in October 2023 and had no knowledge of the material weakness. She is an experienced Manager that has implemented training for the Finance Officer and Finance Assistant, the Treasurer and the Select Board. RHR Smith & Company has been contracted and has completed the Town audits through June 2025. The Town Manager will work in conjunction with the Finance employees to put a Procurement Policy together and put the policy through the administrative process of review and approval by the Select Board. Anticipated Completion Date: 12/31/2026
Finding Number: 2025-003 Finding Title: Eligibility - MAXIS Program: 93.778 Grants to States for Medicaid Name of Contact Person Responsible for Corrective Action: Melody Santana-Marty – Controller Community Services and Supports Corrective Action Planned: Internal quality controls specific to the M...
Finding Number: 2025-003 Finding Title: Eligibility - MAXIS Program: 93.778 Grants to States for Medicaid Name of Contact Person Responsible for Corrective Action: Melody Santana-Marty – Controller Community Services and Supports Corrective Action Planned: Internal quality controls specific to the Medicaid program, will be reviewed and updated. Department-wide communication to staff regarding the importance of complete and adequate supporting documentation in the case file prior to case approval has been implemented and will continue on an ongoing basis. This communication will include guidance on how to determine whether documentation is sufficient, along with examples of acceptable support. At a minimum, required documentation will include: • Documentation verifying citizenship. • Examples of properly completed applications. • Reconciliation of the income verification in MAXIS and the documentation in the case file. • Reconciliation of the asset verification in MAXIS and the documentation in the case file. The Quality Assurance review process and Corrective Action Plan have been documented and communicated to provide guidance for new staff, serve as refresher training for existing staff, and ensure that appropriate actions are consistently followed. This documentation will be reviewed and revised as necessary to maintain compliance and consistency across the department. Supervisory review has been implemented for new hires. When issues are identified with current staff, enhanced review strategies and procedures will be applied to ensure required documentation is properly reviewed prior to case approval. In addition, supervisors will review the audited cases to look for any trends in errors with specific staff. Anticipated Completion Date: December 31, 2026
Finding Number: 2025-002 Finding Title: Special Tests and Provisions – Child Support Non-Cooperation Program: 93.558 Temporary Assistance for Needy Families Name of Contact Person Responsible for Corrective Action: Melody Santana-Marty – Controller Community Services and Supports Corrective Action P...
Finding Number: 2025-002 Finding Title: Special Tests and Provisions – Child Support Non-Cooperation Program: 93.558 Temporary Assistance for Needy Families Name of Contact Person Responsible for Corrective Action: Melody Santana-Marty – Controller Community Services and Supports Corrective Action Planned: Internal quality controls specific to the Child Support program, will be reviewed and updated. Department-wide communication to staff regarding the importance of complete and adequate supporting documentation in the case file prior to case approval has been implemented and will continue on an ongoing basis. This communication will include guidance on how to determine whether documentation is sufficient, along with examples of acceptable support. At a minimum, required documentation will include: • Documentation supporting non-cooperation. • Verification of sanction implementation and removal timelines. • Reviewing files for completeness. Supervisory review has been implemented for new hires. When issues are identified with current staff, enhanced review strategies and procedures will be applied to ensure required documentation is properly reviewed prior to case approval. In addition, supervisors will review the audited cases to look for any trends in errors with specific staff. Anticipated Completion Date: December 31, 2026
Finding Number: 2025-001 Finding Title: Eligibility-MAXIS Program: 93.558 Temporary Assistance for Needy Families Name of Contact Person Responsible for Corrective Action: Melody Santana-Marty – Controller Community Services and Supports Corrective Action Planned: Internal quality control review che...
Finding Number: 2025-001 Finding Title: Eligibility-MAXIS Program: 93.558 Temporary Assistance for Needy Families Name of Contact Person Responsible for Corrective Action: Melody Santana-Marty – Controller Community Services and Supports Corrective Action Planned: Internal quality control review checklists, specific to each program area, will be reviewed and updated, and additional controls will be developed to ensure that required documentation is obtained and maintained. Department-wide communication to staff regarding the importance of complete and adequate supporting documentation in the case file prior to case approval has been implemented and will continue on an ongoing basis. This communication will include guidance on how to determine whether supporting documentation is sufficient, along with examples of acceptable documentation. At a minimum, required documentation will include: • Documentation verifying client eligibility for the key eligibility-determining factors. • Evidence of the verification process recorded in MAXIS. Supervisors will continue to conduct periodic reviews of case files to ensure that all required documentation is on file. In addition, supervisors will review the audited cases to look for any trends in errors with specific staff. Anticipated Completion Date: December 31, 2026
CORRECTIVE ACTION PLAN Name of Entity: High Valley Manor Apartments Audit Firm: SVA Certified Public Accountants, S.C. Audit Period: Year ended December 31, 2025 Corrective Action Plan Prepared by: Name: Dawn Melgares Position: Executive Director of San Luis Valley Housing Coalition, Inc. Telephone ...
CORRECTIVE ACTION PLAN Name of Entity: High Valley Manor Apartments Audit Firm: SVA Certified Public Accountants, S.C. Audit Period: Year ended December 31, 2025 Corrective Action Plan Prepared by: Name: Dawn Melgares Position: Executive Director of San Luis Valley Housing Coalition, Inc. Telephone Number: 719-587-9807 1. 2025-001 Finding – Internal control over financial reporting a. Comments on findings and recommendations There is a lack of controls over financial reporting to ensure material misstatements are detected and corrected in a timely manner and the project relies on its auditors to assist in the preparation of the financial statements in accordance with generally accepted accounting principles. b. Actions taken or planned i. Management agent to review processes to ensure transactions are recorded in proper accounts. ii. Management agent will review all audit adjustments and create processes to perform annual account reconciliation of year end balances agree to supporting schedules. c. Anticipated completion date October 31, 2026
FINDING 2025-004 Finding Subject: Material Weakness Contact Person Responsible for Corrective Action: Heather Huff, Jason Copeland Contact Phone Number and Email Address: 812-273-1708/ jason.copeland@jeffersoncounty.in.gov 812-265- 8907 heather.huff@jeffersoncounty.in.gov Subject: Highway Planning a...
FINDING 2025-004 Finding Subject: Material Weakness Contact Person Responsible for Corrective Action: Heather Huff, Jason Copeland Contact Phone Number and Email Address: 812-273-1708/ jason.copeland@jeffersoncounty.in.gov 812-265- 8907 heather.huff@jeffersoncounty.in.gov Subject: Highway Planning and Construction – Internal Controls Views of Responsible Officials: We concur with the finding. Description of Corrective Action Plan: The County Highway Department has implemented internal controls for the deficiencies identified. The department heads have begun reviewing and signing LPA Invoice Vouchers and Claim Invoices to ensure compliance with the grant requirements before submission into LOW software program by the Highway Dept Clerk. Anticipated Completion Date: The Completion Date will be 12-31-2026. Although the plan is implemented there will be some invoices in 2026 that were not signed. 2027 will be the first year this plan is implemented throughout.
Finding 1238593 (2025-002)
Material Weakness 2025
Management agrees with the finding. The Corporation experienced turnover in key personnel who were responsible for adherence to the requirements of the Regulatory Agreement, thus resulting in late submission of the annual audited financial statements and the annual budget by the required deadlines. ...
Management agrees with the finding. The Corporation experienced turnover in key personnel who were responsible for adherence to the requirements of the Regulatory Agreement, thus resulting in late submission of the annual audited financial statements and the annual budget by the required deadlines. Management has implemented additional levels of oversight and assigned appropriate personnel to oversee adherence to the requirements of the Regulatory Agreement. This finding has been remediated in 2026 through the timely filings of the annual audited consolidated financial statements for the year ended December 31, 2025, and the 2026 annual budget.
Finding 1238586 (2025-002)
Material Weakness 2025
FINDING 2025-002 Finding Subject: COVID-19 - Coronavirus State and Local Fiscal Recovery Funds - Reporting Contact Person Responsible for Corrective Action: Burzynski Thaddeus Contact Phone Number and Email Address: 219-755-3200, burzytx@lakecountyin.org Views of Responsible Officials: We concur wit...
FINDING 2025-002 Finding Subject: COVID-19 - Coronavirus State and Local Fiscal Recovery Funds - Reporting Contact Person Responsible for Corrective Action: Burzynski Thaddeus Contact Phone Number and Email Address: 219-755-3200, burzytx@lakecountyin.org Views of Responsible Officials: We concur with the finding. Description of Corrective Action Plan: The County filed each quarterly report with the federal government through the ARPA reporting portal every quarter and made sure it balanced. The County will develop and implement a proper system of internal controls and segregation of duties where a County employee verifies the work performed by the consultant. This will ensure accuracy and correctness of all quarterly P & E Reports. Anticipated Completion Date: December 31, 2026
Finding: Schedule of Expenditures of Federal Awards (SEFA) Preparation (2025-005) As part of our audit of the District’s SEFA, we assisted management in the preparation of the SEFA in accordance with Uniform Guidance. While our assistance in the preparation of the SEFA complies with Uniform Guidance...
Finding: Schedule of Expenditures of Federal Awards (SEFA) Preparation (2025-005) As part of our audit of the District’s SEFA, we assisted management in the preparation of the SEFA in accordance with Uniform Guidance. While our assistance in the preparation of the SEFA complies with Uniform Guidance, those standards also require that we report this material weakness in control over financial reporting to those with governance responsibilities. Name of contact person responsible for corrective action: Jack Ducharme, Treasurer Anticipated completion date: December 31, 2026 Corrective Action Plan: Management agrees with the finding and recommendation. The District willestablish procedures to identify and accumulate federal expenditures throughout the year and will implement a review process over the preparation of the SEFA prior to its submission for audit.
Corrective Action Plan for the Calendar Year Ended December 31, 2025 In response to the finding from the Federal Single Audit for the fiscal year ended December 31, 2025. Major Program: COVID-19 Disaster Grants – Public Assistance (Presidentially Declared Disasters (Assistance Listing Number 97.036)...
Corrective Action Plan for the Calendar Year Ended December 31, 2025 In response to the finding from the Federal Single Audit for the fiscal year ended December 31, 2025. Major Program: COVID-19 Disaster Grants – Public Assistance (Presidentially Declared Disasters (Assistance Listing Number 97.036) (4488DR-NJ 734668; 4488DR-NJ 734675; 4488DR-NJ 736923) Finding: 2025-001 – Activities Allowed or Unallowed and Allowable Costs/Cost Principles (Material Weakness and Material Non-Compliance) Management Response: The System will strengthen its grant management and monitoring controls to ensure COVID 19 Disaster Grants – Public Assistance (Presidentially Declared Disasters) (Disaster Grants) -funded expenditures are appropriately identified, tracked, and reconciled to insurance recoveries and other sources of disaster-related funding. Management will implement obligation-level tracking and periodic reconciliation procedures to identify applicable credits and potential duplication of benefits before submitting or retaining Federal reimbursement. The System will also formalize policies and procedures governing Disaster Grant administration, enhance communication among departments responsible for disaster-related funding, and provide training to personnel involved in grant management activities to support ongoing compliance with applicable Federal requirements. Christopher Caulfield, Assistant Vice President of Finance, will effectuate the corrective action plan, which is anticipated to be completed by December 31, 2026. caulfieldc@sjhmc.org 973-754-2016
UNIFORM GUIDANCE AUDIT REPORTING REQUIREMENTS Federal Agency: Department of Transportation Federal Program: Formula Grants for Rural Areas and Tribal Transit Program Assistance Listing Number: 20.509 Federal Award Identification Number and Year: MN-2020-020-01, MN-2023-045-00 Pass-Through Agency: Mi...
UNIFORM GUIDANCE AUDIT REPORTING REQUIREMENTS Federal Agency: Department of Transportation Federal Program: Formula Grants for Rural Areas and Tribal Transit Program Assistance Listing Number: 20.509 Federal Award Identification Number and Year: MN-2020-020-01, MN-2023-045-00 Pass-Through Agency: Minnesota Department of Transportation Pass-Through Number: MN-2020-020-01, MN-2023-045-00 Award Period: Year Ended December 31, 2025 Compliance Requirement: Property and Equipment Type of Finding: Significant Deficiency in Internal Control over Compliance and Other Matters Recommendation: Equipment acquired under federal awards needs to have proper maintenance of records including description, source of funding, who holds title, acquisition date, cost, percentage of Federal agency participation in the cost, location, use and condition, and any disposition data. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: The Transit Board will continue to work on the maintenance of records for property and equipment acquired under federal awards. Name of the contact person responsible for corrective action: Kathy Schultz, Executive Director Planned completion date for corrective action plan: June 30, 2027
UNIFORM GUIDANCE AUDIT REPORTING REQUIREMENTS Federal Agency: Department of Transportation Federal Program: Formula Grants for Rural Areas and Tribal Transit Program Assistance Listing Number: 20.509 Federal Award Identification Number and Year: MN-2020-020-01, MN-2023-045-00 Pass-Through Agency: Mi...
UNIFORM GUIDANCE AUDIT REPORTING REQUIREMENTS Federal Agency: Department of Transportation Federal Program: Formula Grants for Rural Areas and Tribal Transit Program Assistance Listing Number: 20.509 Federal Award Identification Number and Year: MN-2020-020-01, MN-2023-045-00 Pass-Through Agency: Minnesota Department of Transportation Pass-Through Number: MN-2020-020-01, MN-2023-045-00 Award Period: Year Ended December 31, 2025 Compliance Requirement: Cash Management Type of Finding: Material Weakness in Internal Controls over Compliance Recommendation: The deadline for filing an audit report with the Federal Clearinghouse is 30 days after receiving the audit report or 9 months after year-end, whichever occurs first. It is recommended that prior to year-end, the operation board annually approve an audit schedule timeline. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: The Transit Board will annually approve a schedule and timeline prior to year-end. In addition, the Transit Board has hired new external auditors who will have sufficient resources to complete the audit by the September 30, 2027 deadline for the December 31, 2026, audit. Name of the contact person responsible for corrective action: Kathy Schultz, Executive Director Planned completion date for corrective action plan: June 30, 2027
INTERNAL CONTROLS OVER CASH MANAGEMENT Federal Agency: Department of Transportation Federal Program: Formula Grants for Rural Areas and Tribal Transit Program Assistance Listing Number: 20.509 Federal Award Identification Number and Year: MN-2020-020-01 Pass-Through Agency: Minnesota Department of T...
INTERNAL CONTROLS OVER CASH MANAGEMENT Federal Agency: Department of Transportation Federal Program: Formula Grants for Rural Areas and Tribal Transit Program Assistance Listing Number: 20.509 Federal Award Identification Number and Year: MN-2020-020-01 Pass-Through Agency: Minnesota Department of Transportation Pass-Through Number: MN-2020-020-01, MN-2023-045-00 Award Period: Year Ended December 31, 2025 Compliance Requirement: Cash Management Type of Finding: Significant Deficiency in Internal Controls over Compliance Recommendation: It is recommended the Transit Board designate qualified personnel for conducting the quarterly reporting review. The review should be performed and documented. Formal procedures should be documented to ensure consistency and effectiveness of the quality review process. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: The Transit Board will continue to evaluate their internal staff capacity to determine if an internal control policy over cash management and other areas is beneficial. Name of the contact person responsible for corrective action: Kathy Schultz, Executive Director Planned completion date for corrective action plan: June 30, 2027
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