Corrective Action Plans

Finding 1226513 (2024-080)

Material Weakness 2024

OK

Questioned Costs Special Tests & Provisions Matching / Level of Effort / Earmarking § 200.303

Finding Number 2024-080 Subject Heading (Financial) or AL no. and program name (Federal) #17.225 Unemployment Insurance Planned Corrective Action The programming was corrected in SFY 2025. We will continue to monitor the report and ensure data is accurate. No additional resources will be allocated a...

Finding Number 2024-080 Subject Heading (Financial) or AL no. and program name (Federal) #17.225 Unemployment Insurance Planned Corrective Action The programming was corrected in SFY 2025. We will continue to monitor the report and ensure data is accurate. No additional resources will be allocated as we are months away from replacing the overpayment/payment processing system with modernized technology. Anticipated Completion Date SFY2025 Responsible Contact Person Christopher O’Brien, Vice President UI

View Audit 409119

Finding 1226506 (2024-076)

Material Weakness 2024

Oklahoma Water Resources Board

OK

Questioned Costs Subrecipient Monitoring Eligibility

Finding Number 2024-076 Subject Heading (Financial) or AL no. and program name (Federal) 10.565 – Food Distribution Cluster Planned Corrective Action OKDHS agrees that documentation supporting participant eligibility should be consistently maintained and retained in accordance with program requireme...

Finding Number 2024-076 Subject Heading (Financial) or AL no. and program name (Federal) 10.565 – Food Distribution Cluster Planned Corrective Action OKDHS agrees that documentation supporting participant eligibility should be consistently maintained and retained in accordance with program requirements. The condition identified by the auditors represents a documentation and record-retention weakness at one participating local pantry during a limited period. The absence of documentation available during the audit does not, by itself, establish that participant eligibility determinations were incorrect or that ineligible individuals received program benefits; rather, it limits the ability to independently verify those determinations after the fact. It should also be noted that OKDHS conducted an on-site review of this pantry in June 2023 and again in August 2025. During the 2025 review, current participant intake records were available and reviewed to verify that eligibility determinations were being performed in accordance with program requirements. Contrary to the finding's characterization, OKDHS reviews completed participant intake forms during monitoring activities, not merely blank application forms. In accordance with federal requirements, routine CSFP reviews are conducted every two years unless a participating agency is identified as higher risk, in which case more frequent monitoring is performed. To further strengthen oversight, OKDHS is implementing a standardized onboarding process for new participating pantries and new local management. This process will include standardized checklists, verification of required agreements and documentation, confirmation that required program training has been completed, and notification requirements when management changes occur at participating agencies. OKDHS will also work with its food bank partners to strengthen centralized record-retention practices, clarify documentation responsibilities, and reinforce record retention requirements through annual training and technical assistance. Ongoing monitoring activities will continue to include reviews of participant eligibility documentation, agreements, and record-retention practices, with corrective actions implemented whenever deficiencies are identified. These enhancements build upon existing monitoring activities and provide additional assurance that required documentation is consistently maintained and available for future monitoring and audit. Anticipated Completion Date In Progress Responsible Contact Person Kayla Urtz

View Audit 409119

Finding 1226501 (2024-088)

Material Weakness 2024

Oklahoma Water Resources Board

OK

Special Tests & Provisions Questioned Costs Subrecipient Monitoring

Finding Number 2024-088 Subject Heading (Financial) or AL no. and program name (Federal) 10.565 – Food Distribution Cluster Planned Corrective Action OKDHS agrees that documentation supporting the receipt, distribution, and accountability of CSFP food packages should be consistently maintained in ac...

Finding Number 2024-088 Subject Heading (Financial) or AL no. and program name (Federal) 10.565 – Food Distribution Cluster Planned Corrective Action OKDHS agrees that documentation supporting the receipt, distribution, and accountability of CSFP food packages should be consistently maintained in accordance with federal program requirements. The condition identified by the auditors represents a documentation and recordkeeping weakness at one participating local pantry and does not, by itself, establish that USDA commodities were lost, misused, or improperly distributed. With respect to the reported inventory discrepancy, the issue identified during the audit related to documentation supporting home deliveries. While the local pantry did not maintain documentation at the site to support the number of food packages assigned to a delivery route, OKDHS does not agree that the food packages should be characterized as unaccounted for. Home delivery distributions are finalized after the delivery route is completed to ensure inventory records accurately reflect the commodities actually delivered and any packages returned to the pantry if a delivery cannot be completed. Requiring documentation to be completed before deliveries are finalized could result in inaccurate inventory records when circumstances change during the delivery route. The documentation weakness identified was the lack of retained supporting documentation demonstrating the number of packages assigned for home delivery. OKDHS currently performs management reviews in accordance with 7 CFR 247.34, including on-site reviews of participating agencies at least once every two years, with more frequent monitoring of agencies identified as higher risk. Agencies with identified deficiencies are required to submit corrective action plans, and follow-up reviews are conducted until corrective actions have been satisfactorily implemented. Accordingly, OKDHS believes its existing monitoring process is consistent with federal requirements while recognizing that documentation controls can be strengthened. To further enhance internal controls, OKDHS will work with its food bank partners to standardize documentation requirements for home deliveries, strengthen record retention practices, and clarify responsibilities for maintaining receiving, inventory, and distribution records. OKDHS will also require food banks to incorporate these documentation requirements into their oversight of local pantries and will provide annual training reinforcing federal inventory accountability, documentation, and record retention requirements. In addition, OKDHS will continue evaluating monitoring practices and available resources to determine the most effective methods for strengthening oversight of participating agencies while continuing to meet all applicable federal monitoring requirements. These enhancements build upon the existing management review process and are intended to provide additional assurance that inventory records are complete, accurate, and available for future monitoring and audit activities. Anticipated Completion Date In Progress Responsible Contact Person Kayla Urtz

View Audit 409119

Finding 1226491 (2024-052)

Material Weakness 2024

Oklahoma Water Resources Board

OK

Special Tests & Provisions Questioned Costs Equipment & Real Property Management

Finding Number 2024-052 Subject Heading (Financial) or AL no. and program name (Federal) 10.551 – SNAP Cluster Planned Corrective Action The Oklahoma Department of Human Services (OKDHS) concurs that opportunities existed to strengthen the EBT card inventory control environment, documentation proces...

Finding Number 2024-052 Subject Heading (Financial) or AL no. and program name (Federal) 10.551 – SNAP Cluster Planned Corrective Action The Oklahoma Department of Human Services (OKDHS) concurs that opportunities existed to strengthen the EBT card inventory control environment, documentation processes, replacement card monitoring, and overall governance supporting EBT operations. Since the audit period, the Agency has implemented significant corrective actions designed to strengthen accountability, improve documentation, enhance segregation of duties, and provide greater oversight of EBT inventory and related operational processes. The Agency recognizes that the finding identifies several distinct operational areas, including card inventory management, card destruction procedures, county reconciliation practices, card stock documentation, replacement card system functionality, and fraud monitoring. While each of these areas required evaluation and improvement, they represent separate control activities within the broader EBT control environment and have been addressed through targeted corrective actions appropriate to each process. To strengthen inventory accountability, the Agency has enhanced segregation of duties surrounding card printing, inventory reconciliation, and card destruction activities. During organizational changes associated with transitioning card printing responsibilities, system access was modified to preserve segregation of duties by removing eligibility system access from employees assuming card printing responsibilities. Additionally, EBT card destruction activities are now electronically documented through centralized tracking, with independent verification that destroyed cards have been properly deactivated within the EBT system. Daily inventory reconciliation procedures have also been strengthened through standardized reconciliation guidance, improved documentation requirements, and enhanced statewide oversight designed to identify and resolve discrepancies more timely. The Agency has also strengthened documentation surrounding EBT card stock inventory. Card stock reorder requests are now processed through a centralized electronic request process that automatically creates a permanent record of each request while providing simultaneous notification to the requesting office, vendor, and Electronic Payment Services (EPS). This process replaces reliance upon locally retained email requests and provides greater transparency, documentation retention, and management oversight over card inventory. Regarding excessive replacement card notices, the Agency concurs that a system malfunction prevented generation of certain notification letters during the audit period. Upon discovery, the underlying system issue was corrected, notice generation was restored, and monitoring procedures were implemented to promptly identify future processing failures. Because the delayed notices no longer reflected current replacement card activity, management determined that issuing notices more than one year after the triggering events would not effectively serve their intended purpose. Accordingly, the obsolete notices were not issued, and the notification process resumed prospectively following correction of the system issue. The Agency also corrected a separate system issue affecting replacement card count calculations to ensure future notices accurately reflect replacement activity. The Agency respectfully disagrees, however, with the conclusion that EBT transactions were not monitored for possible misuse or fraud during the audit period. The Office of Inspector General (OIG) utilized transaction monitoring tools, including EPPIC and BUMP, to identify potential trafficking and misuse through established fraud indicators such as even-dollar transactions, rapid successive transactions, geographically improbable transaction patterns, and other transaction anomalies indicative of potential trafficking activity. While the Agency acknowledges that documentation of these monitoring methodologies can be strengthened, it does not agree that fraud monitoring activities were absent during the audit period. The Agency also notes that excessive replacement card activity represents one of many potential indicators of fraud but is not, standing alone, determinative of trafficking or misuse. Fraud detection efforts utilize a risk-based approach that evaluates multiple data points and investigative indicators to prioritize limited investigative resources toward the highest-risk cases. Accordingly, the Agency believes replacement card activity should be considered as one component of a broader fraud detection strategy rather than as an independent indicator requiring investigation in every instance. To further strengthen the overall EBT control environment, the Agency has implemented annual EBT policy training and employee attestations for personnel responsible for EBT operations. Completion of these requirements is mandatory and tracked as part of each employee's official training record, with system access removed for employees who fail to complete the required training. The Agency has also strengthened user access reviews, enhanced onsite monitoring, implemented centralized incident tracking, and expanded management oversight to improve accountability and ensure timely resolution of identified control deficiencies. Collectively, these improvements extend beyond the individual recommendations contained within this finding and reflect the Agency's commitment to establishing a stronger and more sustainable governance framework over EBT operations. Rather than relying solely upon additional training, the Agency has redesigned several operational processes through centralized tracking, automated documentation, strengthened segregation of duties, enhanced monitoring, and improved management oversight to reduce risk and improve accountability across the EBT program. Accordingly, the Agency concurs that the EBT control environment required strengthening and has implemented significant corrective actions addressing both the specific operational issues identified during the audit and broader opportunities to improve governance over EBT operations. However, the Agency respectfully disagrees with the conclusion that fraud monitoring activities were not performed during the audit period and believes the finding is more accurately characterized as an opportunity to strengthen documentation, coordination, and governance surrounding existing fraud monitoring activities rather than the absence of such activities. Anticipated Completion Date Substantially complete Responsible Contact Person Kayla Urtz

View Audit 409119

Finding 1226487 (2024-083)

Material Weakness 2024

Oklahoma Water Resources Board

OK

Eligibility Internal Control / Segregation of Duties Special Tests & Provisions

Finding Number 2024-083 Subject Heading (Financial) or AL no. and program name (Federal) 10.551 – SNAP Cluster Planned Corrective Action OKDHS agrees with the finding and recommendation. The agency recognizes that the volume of GI DX discrepancy messages, combined with limited automated triage capab...

Finding Number 2024-083 Subject Heading (Financial) or AL no. and program name (Federal) 10.551 – SNAP Cluster Planned Corrective Action OKDHS agrees with the finding and recommendation. The agency recognizes that the volume of GI DX discrepancy messages, combined with limited automated triage capabilities, contributed to delays in resolving exceptions within the required 45-calendar-day timeframe. As noted by the auditors, the existing process relied heavily on manual review and did not provide sufficient management oversight tools to effectively monitor aging discrepancies and ensure timely resolution. OKDHS has initiated a muti-faceted corrective action plan designed to improve the timeliness, consistency, and accountability of G1DX exception resolution. As part of this effort, OKDHS is developing an automated pre-screening process for National New Hire (NNH), State New Hire (SNH), and Oklahoma Wage (OWG) discrepancy messages. The automated process is intended to evaluate discrepancies against established policy criteria and reduce the number of non-actionable matches requiring manual review. Discrepancies identified as requiring staff review will be routed to eligibility staff with standardized documentation and processing guidance. Additionally, OKDHS is developing formal procedures governing the review, monitoring, and resolution of GIDX discrepancies. These procedures will define staff responsibilities, supervisory oversight expectations, escalation requirements, and management use of exception monitoring reports to support the timely resolution of discrepancies. Management reporting and monitoring controls are also being enhanced to improve visibility into outstanding discrepancies and aging trends. Supervisors and program management will utilize exception reporting to monitor workloads, identify training opportunities, and promote accountability for timely processing. OKDHS will also provide training and implementation guidance to staff and supervisors regarding revised workflows, discrepancy resolution requirements, documentation standards, and management monitoring expectations. The agency anticipates implementation of the planned enhancements beginning in October 2026, with continued monitoring and refinement following deployment to ensure the corrective actions effectively address the underlying control deficiencies identified in the finding. Anticipated Completion Date 10/5/26 Responsible Contact Person Kayla Urtz

View Audit 409119

Finding 1226483 (2024-002)

Material Weakness 2024

City of Odessa, Tx

TX

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

Finance Finding: 2024-002 - Reporting Corrective Action Plan Type of Finding: Noncompliance and Material Weakness in Internal Control Over Compliance Federal Agency: U.S. Department of Treasury Federal Program Title: COVID 19 - Coronavirus State and Local Fiscal Recover Funds ALN: 21.027 Corrective ...

Finance Finding: 2024-002 - Reporting Corrective Action Plan Type of Finding: Noncompliance and Material Weakness in Internal Control Over Compliance Federal Agency: U.S. Department of Treasury Federal Program Title: COVID 19 - Coronavirus State and Local Fiscal Recover Funds ALN: 21.027 Corrective Action: The City recognizes the importance of timely and accurate financial reporting for grant-funded programs. To address the root causes of this finding and strengthen internal controls over grant accounting, the City is implementing the following corrective actions: 1. Dedicated Grant Accounting Oversight The City has established a Senior Accountant position dedicated to grant accounting and compliance. This position will be responsible for overseeing grant-related financial activity, monitoring grant expenditures and revenues, coordinating reimbursement requests, ensuring compliance with grant requirements, and reviewing transactions for proper accounting period recognition. 2. Enhanced Communication with Grant Departments Finance will implement regular communication with departments responsible for managing grants to ensure grant activity is identified and recorded timely. Departments will be expected to notify Finance of significant grant expenditures, reimbursement requests, project milestones, and other events affecting grant accounting. Regular meetings will be scheduled, as appropriate, to discuss grant status, upcoming deadlines, and financial reporting requirements. 3. Routine Grant Reconciliations The Finance Department will perform recurring reconciliations of grant expenditures, revenues, receivables, deferred revenues, and reimbursement requests. These reconciliations will compare the general ledger to grant reimbursement activity and supporting documentation to identify and resolve timing differences before month-end and year-end financial reporting. A comprehensive reconciliation will also be performed during the fiscal year-end closing process to ensure all grant transactions are recorded in the appropriate accounting period. 4. Grant Accounting Training The newly assigned Senior Accountant will receive formal training in governmental grant accounting, Uniform Guidance (2 CFR Part 200), federal and state grant compliance requirements, and applicable GASB reporting standards. In addition, the City will provide ongoing professional development opportunities through external training, webinars, professional organizations, and auditor recommendations to maintain current knowledge of grant accounting requirements. 5. Strengthened Year-End Closing Procedures Grant-specific procedures will be incorporated into the City's year-end closing checklist. Finance will perform a detailed review of outstanding grant expenditures, reimbursement requests, accrued revenues, deferred inflows, and subsequent receipts to verify that grant transactions are recognized in the appropriate fiscal period prior to issuance of the Annual Comprehensive Financial Report (ACFR). Responsible Department: Finance Department Responsible Official: Chief Financial Officer, Finance Director (or equivalent) Senior Accountant - Grants & Special Revenue Implementation Date: Began implementation in FY 2026 and will be fully incorporated into the City's ongoing financial reporting and year-end closing processes.

View Audit 409115

Finding 1226475 (2024-008)

Material Weakness 2024

South Dakota Urban Indian Health, Inc.

SD

Special Tests & Provisions Questioned Costs Significant Deficiency

Finding 2024-008:Special Tests and Provisions: Personnel Requirements (Title V, CFDA 93.U01) Significant Deficiency (New Finding) Condition: Of ten employees tested under Title V personnel requirements (Public Law 101-630, Indian Child Protection and Family Violence Prevention Act), background check...

Finding 2024-008:Special Tests and Provisions: Personnel Requirements (Title V, CFDA 93.U01) Significant Deficiency (New Finding) Condition: Of ten employees tested under Title V personnel requirements (Public Law 101-630, Indian Child Protection and Family Violence Prevention Act), background check documentation was missingfor two employees and a signed confidentialityagreement was missingfor one employee. Corrective Action: Obtain and file the missing background check documentation and confidentiality agreement for the identified employees. Implement a personnel compliance checklist requiring completed background checks and signed confidentiality agreements before any employee begins duties involving contact with or control over Indian children. Assign HR sign-off responsibility confirming checklist completion, retained in each personnel file. Conduct a one-time look-back review of all current Title V-relevant personnel files to confirm completeness. Responsible Party: Human Resources/ Chief Executive Officer Anticipated Completion Date: Checklist process in effect by October 15, 2026

View Audit 409105

Finding 1226469 (2024-005)

Material Weakness 2024

South Dakota Urban Indian Health, Inc.

SD

Questioned Costs Material Weakness Reporting § 200.302 § 200.333

Finding 2024-005: Reporting (Title V, CFDA 93.U01) Material Weakness (Repeat Finding: 2021-005, 2022-005, 2023-005) Condition: The Organization could not provide required Title Vreports, including the financial report, activity narrative, third-party income report, GPRA/GPRAMA, urban data standards ...

Finding 2024-005: Reporting (Title V, CFDA 93.U01) Material Weakness (Repeat Finding: 2021-005, 2022-005, 2023-005) Condition: The Organization could not provide required Title Vreports, including the financial report, activity narrative, third-party income report, GPRA/GPRAMA, urban data standards report, and property inventory. Corrective Action: • Build a federal reportingcalendar listing every required Title Vreport, its due date, data source, and responsible preparer. • Assign a designated preparer and a second-level reviewer for each report prior to submission. • Retain a copy of each submitted report, with the submission confirmation, in a centralized compliance file. • Provide staff training on Title V reporting obligations and the underlying contract requirements. Responsible Party: Chief Financial Officer/ Grant Director Anticipated Completion Date: Reporting calendar in place by October 15, 2026; first fully compliant reporting cycle Q1 2027

View Audit 409105

Finding 1226465 (2024-003)

Material Weakness 2024

South Dakota Urban Indian Health, Inc.

SD

Questioned Costs Allowable Costs / Cost Principles Material Weakness § 200.302 § 200.333

Finding 2024-003: Activities Allowed and Unallowed, Allowable Costs, Period of Performance (Title V, C FDA 93. U0 1) Material Weakness (Repeat Finding: 2021-003, 2022-003, 2023-003) Condition: Title V expenditures were recorded through summary journal entries without transactionlevel detail, prevent...

Finding 2024-003: Activities Allowed and Unallowed, Allowable Costs, Period of Performance (Title V, C FDA 93. U0 1) Material Weakness (Repeat Finding: 2021-003, 2022-003, 2023-003) Condition: Title V expenditures were recorded through summary journal entries without transactionlevel detail, preventing the auditor from selecting a valid sample or testing compliance. A disclaimed opinion on compliance was issued for this major program. Questioned costs are undetermined due to scope limitation. Corrective Action: • Restructure the chart of accounts/ GL coding so every Title V transaction is individually recorded and traceable to source documentation, rather than aggregated into journal entries. • Require program/grant coding at the point of transaction entry (accounts payable, payroll allocation, purchasing) rather than after the fact. • Implement a quarterly internal review reconciling Title V ledger detail to the approved Title V budget and contract terms. • Provide finance staff training on Uniform Guidance recordkeeping requirements (2 CFR §200.302, §200.333) specific to federal award transactions. Responsible Party: Chief Financial Officer Anticipated Completion Date: GL restructuring to be implemented concurrent with the Organization's new fund accounting system (Blackbaud Financial Edge NXT), implementation kickoff August 13, 2026; complete by March 31, 2027, with the first fully traceable Title V transaction month in April 2027

View Audit 409105

Finding 1226444 (2024-004)

Material Weakness 2024

County of Belknap, New Hampshire

NH

Internal Control / Segregation of Duties Questioned Costs § 200.512

Audit Finding Reference: 2024-004 Timely Filing of Single Audit Report Planned Corrective Action: Faster turn around time from Audit firm Planned Implementation Date of Corrective Action: Immediately upon notification, June 09, 2025. Person Responsible for Corrective Action: County Administrator and...

Audit Finding Reference: 2024-004 Timely Filing of Single Audit Report Planned Corrective Action: Faster turn around time from Audit firm Planned Implementation Date of Corrective Action: Immediately upon notification, June 09, 2025. Person Responsible for Corrective Action: County Administrator and Finance Director

View Audit 409060

Finding 1226443 (2024-003)

Material Weakness 2024

County of Belknap, New Hampshire

NH

Reporting Internal Control / Segregation of Duties Material Weakness § 200.303

Audit Finding Reference: 2024-003 Internal Controls Over Reporting Planned Corrective Action: A Finance Director will review quarterly report prior to submission. Planned Implementation Date of Corrective Action: Immediately upon notification, June 09, 2025. Person Responsible for Corrective Action:...

Audit Finding Reference: 2024-003 Internal Controls Over Reporting Planned Corrective Action: A Finance Director will review quarterly report prior to submission. Planned Implementation Date of Corrective Action: Immediately upon notification, June 09, 2025. Person Responsible for Corrective Action: County Administrator and Finance Director

View Audit 409060

Finding 1226412 (2024-006)

Material Weakness 2024

National Young Farmers Coalition, Inc.

NY

Questioned Costs Subrecipient Monitoring Cash Management

Planned Corrective Action: While the Organization’s existing internal controls address management of invoices and payments, there was no written process within the organization’s internal controls that identified the required documentation, workpapers, review, and approval for federal grant reimburs...

Planned Corrective Action: While the Organization’s existing internal controls address management of invoices and payments, there was no written process within the organization’s internal controls that identified the required documentation, workpapers, review, and approval for federal grant reimbursements. Planned Implementation Date of Corrective Action: October 1, 2025 Name of Contact Person: Melinda Lequin, Executive Finance Director

View Audit 409019

Finding 1226398 (2024-008)

Material Weakness 2024

I&f Incorporated Nfp

IL

Internal Control / Segregation of Duties

Management has implemented a standardized monthly grant reconciliation process requiring that all reimbursement requests be fully reconciled to the general ledger, grant cost centers, payroll records, and supporting documentation before submission to the granting agency. Payroll-related expenditures...

Management has implemented a standardized monthly grant reconciliation process requiring that all reimbursement requests be fully reconciled to the general ledger, grant cost centers, payroll records, and supporting documentation before submission to the granting agency. Payroll-related expenditures and fringe benefit allocations are now based solely on actual allowable costs incurred and recorded in the general ledger. Budgeted amounts are no longer utilized when calculating reimbursement requests if actual expenditure information is available. As part of the Organization's standardized monthly financial close process, payroll costs, employer payroll taxes, employee benefits, workers' compensation, and other fringe benefit expenditures are reconciled to the general ledger and supporting documentation before reimbursement requests are prepared. Management has also implemented documented supervisory review procedures requiring verification that reimbursement requests reconcile to the accounting records and comply with the Organization's cost allocation methodology and applicable federal grant requirements before submission. Management has completed a review of prior reimbursement reporting, reconciled identified differences to the underlying accounting records, and corrected identified reporting discrepancies. These reconciliation procedures have been incorporated into the Organization's ongoing grant compliance process to strengthen internal controls over federal reimbursement requests and promote continued compliance with 2 CFR Part 200. The corrective actions identified above were substantially implemented during the fourth quarter of 2025 and have been incorporated into the Organization's standardized monthly financial close and grant reimbursement processes. Management continues to monitor the effectiveness and consistent application of these controls, including reconciliation of fringe benefit expenditures to actual costs recorded in the general ledger and documented supervisory review before submission of reimbursement requests. Full formalization and documentation of the enhanced grant reconciliation and compliance procedures are expected by February 28, 2027.

View Audit 408980

Finding 1226335 (2024-002)

Material Weakness 2024

Town of Woodbridge

CT

Internal Control / Segregation of Duties Questioned Costs Material Weakness § 200.303

Identifying Number: 2024-002 Finding: There was a lack of segregation of duties in preparing and reviewing the quarterly Project and Expenditure Reports. Corrective Actions Taken or Planned: The Town has established policy and related procedures to ensure proper segregation of duties in preparing an...

Identifying Number: 2024-002 Finding: There was a lack of segregation of duties in preparing and reviewing the quarterly Project and Expenditure Reports. Corrective Actions Taken or Planned: The Town has established policy and related procedures to ensure proper segregation of duties in preparing and reviewing the quarterly Project and Expenditure Reports. Contact person(s): Anthony Genovese, Director of Finance Anticipated Completion Date: July 2026

View Audit 408971

Finding 1226290 (2024-009)

Material Weakness 2024

City of Blackduck

MN

Questioned Costs Subrecipient Monitoring Material Weakness

Recommendation: We recommend that the City implement controls over USDA reports to ensure that they are reviewed prior to submission. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action planned in response to finding: The City will work to ensure t...

Recommendation: We recommend that the City implement controls over USDA reports to ensure that they are reviewed prior to submission. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action planned in response to finding: The City will work to ensure that the management reports are reviewed prior to submission. Name of the contact person responsible for corrective action: Christina Regas, City Administrator Planned completion date for corrective action plan: December 31, 2025.

View Audit 408959

Finding 1226222 (2024-005)

Material Weakness 2024

COUNTY OF IRWIN

GA

Questioned Costs Reporting Internal Control / Segregation of Duties

Reporting Requirements for Federally Funded Projects – U.S. Department of Treasury Coronavirus State and Local Fiscal Recovery Funds, (Assistance Listing #21.027) Name of the Contact Person Responsible for the Corrective Action Plan: Willis Lott, Director of Finance. Corrective Action Plan: We concu...

Reporting Requirements for Federally Funded Projects – U.S. Department of Treasury Coronavirus State and Local Fiscal Recovery Funds, (Assistance Listing #21.027) Name of the Contact Person Responsible for the Corrective Action Plan: Willis Lott, Director of Finance. Corrective Action Plan: We concur. We will continue to review and improve policies and procedures in an effort to eliminate error and identify deficiencies from both operational and financial perspectives. Anticipated Completion Date: August 31, 2025

View Audit 408869

Finding 1226203 (2024-004)

Material Weakness 2024

Inkster Housing Commission

MI

Questioned Costs HUD Housing Programs Internal Control / Segregation of Duties

IHC has identified gaps in supporting documentation for credit card charges and has implemented measures to strengthen internal controls. Employees are now required to submit all receipts within two business days of the charge being processed. In addition, individuals who fail to submit proper docum...

IHC has identified gaps in supporting documentation for credit card charges and has implemented measures to strengthen internal controls. Employees are now required to submit all receipts within two business days of the charge being processed. In addition, individuals who fail to submit proper documentation may be held directly accountable for the charge. Monthly internal audits have been instituted to review all credit card transactions for compliance, and receipts ar now collected and verified according to established timelines. These measures ensure that all credit card activity is properly documented, monitored, and compliant with agency policies moving forward.

View Audit 408839

Finding 1226202 (2024-003)

Material Weakness 2024

Inkster Housing Commission

MI

Questioned Costs HUD Housing Programs Internal Control / Segregation of Duties

IHC continues to strengthen its internal processes to reduce delinquent recertifications, guided by a board-approved Quality Assurance Plan that includes recurring file reviews, rent calculation checks, and completeness checklists.

View Audit 408839

Finding 1226201 (2024-002)

Material Weakness 2024

Inkster Housing Commission

MI

Questioned Costs HUD Housing Programs Internal Control / Segregation of Duties

The IHC has experienced some major staffing transactions within its Finance Department which have caused delays in the processing of cash disbursements to vendors. Since that time, IHC has updated its Internal Control Policy and made changes to the process of paying vendors. IHC has also hired a Sr....

The IHC has experienced some major staffing transactions within its Finance Department which have caused delays in the processing of cash disbursements to vendors. Since that time, IHC has updated its Internal Control Policy and made changes to the process of paying vendors. IHC has also hired a Sr. Accountant and Accounts Receivable Specialist to ensure the process is followed accurately and timely. IHC's Finance Committee and Fee Accountant's will also provide an additional level of monitoring as we are in constant communication to ensure all current practices are compliant. IHC is confident these changes will correct ths finding moving forward.

View Audit 408839

Finding 1226200 (2024-001)

Material Weakness 2024

Inkster Housing Commission

MI

Questioned Costs HUD Housing Programs Internal Control / Segregation of Duties

IHC has experienced significant staffing transitions within its finance department, which have comtributed to delays in processing cash receipts. In response, IHC has updated its Internal Control Policy and revised its processes. Additional support staff have been hired in the finance department to ...

IHC has experienced significant staffing transitions within its finance department, which have comtributed to delays in processing cash receipts. In response, IHC has updated its Internal Control Policy and revised its processes. Additional support staff have been hired in the finance department to ensure accurate and timely processing. Furthermore, IHC's Finance Committee and Fee Accountants provide and added layer of checks and balances, maintaining ongoing communication to ensure all practices remain compliant. IHC is confident that these measures will effectively address this issue moving forward.

View Audit 408839

Finding 1226193 (2024-003)

Material Weakness 2024

Head Start of Lane County

OR

Questioned Costs Significant Deficiency Internal Control / Segregation of Duties

The agency has created new policies and implemented fails saifs, including board involvement, to ensure the deadlines for all required filings are met.

View Audit 408831

Finding 1225984 (2024-001)

Material Weakness 2024

CHAMPLAIN FIRE DISTRICT

NY

Subrecipient Monitoring Reporting Internal Control / Segregation of Duties

2024-001 – Data Collection Forms Finding: Our audit procedures noted Champlain Fire District did not certify or submit the required Data Collection Form for the fiscal year ended December 31, 2024 related to the 2024 Single Audit. As of the date of our 2024 audit, the Data Collection Form and accomp...

2024-001 – Data Collection Forms Finding: Our audit procedures noted Champlain Fire District did not certify or submit the required Data Collection Form for the fiscal year ended December 31, 2024 related to the 2024 Single Audit. As of the date of our 2024 audit, the Data Collection Form and accompanying reporting package remain unsubmitted. Recommendation: We recommend that the Fire District implement procedures to ensure the timely preparation, certification, and submission of the annual Data Collection Form and reporting package when federal funds are received. This should include assigning responsibility for tracking deadlines, establishing a completion checklist, and documenting management review prior to submission. Action Taken: Champlain Fire District agrees with the finding and will implement procedures to address the recommendation in 2025.

View Audit 408642

Finding 1225956 (2024-002)

Material Weakness 2024

People's Emergency Center and Subsidiaries

PA

Internal Control / Segregation of Duties Allowable Costs / Cost Principles Questioned Costs

Finding #2024-002 – Material Weakness – Activities Allowed or Unallowed, Allowable Cost Principles 93.667 Social Services Block Grant - HAP - Bridge Housing and Case Management Payroll Approval Condition During our audit of the Organization for compliance with Uniform Guidance requirements, we noted...

Finding #2024-002 – Material Weakness – Activities Allowed or Unallowed, Allowable Cost Principles 93.667 Social Services Block Grant - HAP - Bridge Housing and Case Management Payroll Approval Condition During our audit of the Organization for compliance with Uniform Guidance requirements, we noted that the client was unable to provide sufficient evidence that the amount being requested for reimbursement was based on actual effort of employees during reimbursement period. In total 40 payroll samples were selected for testing and the lack of support for time spent by employees occurred for all items tested. Recommendation We recommend that Organization establish and enforce formal procedures requiring documented management review and approval of all payroll transactions including review of employees level of effort before they are processed. The review process should be supported by evidence, such as approval signatures, electronic audit trails, or other verifiable records. In addition, management should perform regular reconciliations of payroll to ensure compliance with federal and organizational policies. Management’s Corrective Action Plan Management concurs with this finding. During the fiscal year, the Organization experienced significant turnover within the Accounting and Finance Department, which impacted the consistent execution nd documentation of established payroll review and approval procedures. Although payroll was reviewed prior to processing, management acknowledges that documentation evidencing the review and approval was not consistently maintained to demonstrate compliance with internal control requirements. The Organization recognizes the importance of documented management review as a key internal control over payroll expenditures, particularly for ensuring the appropriate stewardship of federal funds. To address this finding, management has implemented the following corrective actions:  Formalized written payroll processing procedures that require documented review and approval of each payroll register prior to transmission for processing.  Established a standardized payroll approval checklist to document management’s review of payroll changes, employee additions and terminations, pay rate changes, deductions, and payroll totals before each payroll is processed.  Clearly defined segregation of duties between Human Resources, Payroll, and Finance to ensure appropriate authorization and oversight throughout the payroll process.  Implemented a centralized electronic retention process for payroll registers, approval documentation, and supporting reports to ensure records are complete and readily available for audit.  Conducted training with Human Resources and Finance personnel on payroll approval requirements and documentation standards.  Included periodic supervisory reviews of payroll documentation as part of the Finance Department’s internal monitoring process to ensure ongoing compliance. Management believes these corrective actions have strengthened internal controls over payroll processing and approval and will ensure that payroll transactions are consistently reviewed, approved, and appropriately documented prior to payment. Contact Person: Kathy Desmond, President and CEO Anticipated Completion Date: June 30, 2025

View Audit 408588

Finding 1225954 (2024-001)

Material Weakness 2024

People's Emergency Center and Subsidiaries

PA

Internal Control / Segregation of Duties Subrecipient Monitoring Material Weakness § 200.512

Finding #2024-001 – Material Weakness – Accounting Recordkeeping All Programs Other Condition During the year ended June 30, 2024, management was unable to provide timely year-end trial balances in accordance with U.S. GAAP without significant adjusting journal entries required to accurately reflect...

Finding #2024-001 – Material Weakness – Accounting Recordkeeping All Programs Other Condition During the year ended June 30, 2024, management was unable to provide timely year-end trial balances in accordance with U.S. GAAP without significant adjusting journal entries required to accurately reflect the underlying accounting transactions. Recommendation We recommend that individuals overseeing the accounting and finance function continue to review the Organization's current accounting policies and update existing policies or implement new policies, as necessary, to ensure that accounting records are accurately maintained throughout the year. In addition, we recommend the Organization develop and document formal year-end closing procedures, including detailed closing checklists, assignment of responsibilities, and timelines for the preparation and review of reconciliations, trial balances, and supporting schedules. Monthly and quarterly account reconciliations, as appropriate, should be completed and reviewed timely throughout the year to facilitate an efficient year-end close process and ensure that complete and accurate trial balances and related supporting documentation are prepared and reviewed on a timely basis after year-end. Management’s Corrective Action Plan Management concurs with this finding. The delays in maintaining timely accounting records, completing reconciliations, and preparing year-end financial statements were primarily the result of significant turnover within the Accounting and Finance Department during the fiscal year, combined with the operational demands associated with the merger of HopePHL and Youth Service, Inc. These circumstances created a backlog of transaction processing and account reconciliations that ultimately delayed the preparation of accurate trial balances and required yearend adjustments to ensure compliance with U.S. GAAP. Since the conclusion of the audit period, management has implemented several corrective actions to strengthen the organization’s financial reporting processes and internal controls. These actions include:  Rebuilding and stabilizing the Accounting and Finance Department through the recruitment and retention of qualified personnel.  Establishing defined month-end closing procedures, including assigned responsibilities and timelines for completing reconciliations and reviewing financial activity.  Implementing a monthly close calendar with management oversight to ensure timely completion of accounting tasks and identification of outstanding issues.  Strengthening supervisory review of account reconciliations, journal entries, and financial reporting to improve the accuracy and completeness of accounting records throughout the year.  Monitoring compliance with financial reporting deadlines through regular meetings between Finance leadership and executive management. Management believes these corrective actions have substantially addressed the conditions that led to this finding and will help ensure that accounting records are maintained in accordance with U.S. GAAP, financial statements are prepared on a timely basis, and future reporting requirements, including those under 2 CFR §200.512(a)(1), are met. Contact Person: Kathy Desmond, President and CEO Anticipated Completion Date: June 30, 2025

View Audit 408588

Finding 1225897 (2024-001)

Material Weakness 2024

Northeast Florida Health Services, Inc.

FL

Internal Control / Segregation of Duties Questioned Costs Material Weakness

Finding 2024-001, Cash Disbursement Policy Recommendation We recommend the organization follow the documented cash disbursement process and ensure reviews and approvals are documented. Response NEFHS self-identified such inconsistencies through its normal internal control process and implemented a P...

Finding 2024-001, Cash Disbursement Policy Recommendation We recommend the organization follow the documented cash disbursement process and ensure reviews and approvals are documented. Response NEFHS self-identified such inconsistencies through its normal internal control process and implemented a Payable Invoice Management (PIM} system in November 2023. With the loss of personnel this system became too cumbersome and inefficient. All invoices were eventually approved by management with the final approval coming from the CEO when signed. NEFHS has moved to a new financial software platform with an integrated accounts payable system. All invoices are approved for payment before checks are cut and distributed.

View Audit 408574

Corrective Action Plans

Filters