Corrective Action Plans

Finding 548676 (2024-004)

Significant Deficiency 2024

MD

Internal Control / Segregation of Duties Student Financial Aid Matching / Level of Effort / Earmarking

Name of Responsible Individual: Brandon Rhone, Analyst, Financial Aid Systems, and Chad Wick, Director Financial Aid Corrective Action: The Vice President of Enrollment created a process, implemented in the Spring of 2023, that automated the student loan disbursement notifications with-in the requi...

Name of Responsible Individual: Brandon Rhone, Analyst, Financial Aid Systems, and Chad Wick, Director Financial Aid Corrective Action: The Vice President of Enrollment created a process, implemented in the Spring of 2023, that automated the student loan disbursement notifications with-in the required 30 days of student accounts transmitting their loans, but some of them were already disbursed before this new process. To further enhance this process the FA Analyst created a process in Colleague to automate this process as well as allow for us to keep better records of the notifications. This new process was implemented in 2024, and the University should see results on the 2024-2025 Audit. Anticipated Completion Date: March 31, 2025

View Audit 351998

Finding 548673 (2024-005)

Significant Deficiency 2024

Stevenson University, Inc.

MD

Student Financial Aid Reporting Matching / Level of Effort / Earmarking

Name of Responsible Individual: Montague Blount, Registrar Corrective Action: The University Registrar has worked to develop and implement a plan to ensure appropriate cross-training, position backup, and a system of proper checks and balances to improve quality control and continuity in executing ...

Name of Responsible Individual: Montague Blount, Registrar Corrective Action: The University Registrar has worked to develop and implement a plan to ensure appropriate cross-training, position backup, and a system of proper checks and balances to improve quality control and continuity in executing core functions within the Registrar's Office. To enhance our efforts on this front, the University Registrar will implement additional training measures and reporting SOPs to ensure all status changes and error records are submitted to the NSC/NSLDS website within the required timeframe. These efforts will strengthen accuracy and overall compliance with reporting requirements. Enrollment reporting remains a critical focus of this initiative. Anticipated Completion Date: June 30, 2025

View Audit 351998

Finding 548670 (2024-003)

Significant Deficiency 2024

Stevenson University, Inc.

MD

Internal Control / Segregation of Duties Student Financial Aid Reporting

Name of Responsible Individual: Mary Beth Schiller-Schwenke, Chief Financial Officer and Joyce Sawyer, Director of Payroll Services Corrective Action: The instance of non-compliance occurred during a period of software change for timecard recordkeeping. The former software allowed the supervisor to...

Name of Responsible Individual: Mary Beth Schiller-Schwenke, Chief Financial Officer and Joyce Sawyer, Director of Payroll Services Corrective Action: The instance of non-compliance occurred during a period of software change for timecard recordkeeping. The former software allowed the supervisor to electronically approve a student timecard after payroll was processed. The new software does not allow this and the process now requires manual follow-up and signature. The Payroll Office in combination with Human Resources will enhance training for supervisors and require additional training for those supervisors that fail to approve timecards timely. Reporting has been improved to identify timecards that have not been approved. A procedure change has been implemented to remove wages from FWS if the hours in question remain unapproved after 30 days. Anticipated Completion Date: March 31, 2025

View Audit 351998

Finding 548668 (2024-001)

Significant Deficiency 2024

Stevenson University, Inc.

MD

Cash Management Student Financial Aid Internal Control / Segregation of Duties

Name of Responsible Individual: Mary Beth Schiller-Schwenke, Chief Financial Officer Corrective Action: The FWS Program instances were the result of retroactive award adjustments that posted subsequent to the federal draws and federal draw reconciliations. To prevent a similar error in the future, ...

Name of Responsible Individual: Mary Beth Schiller-Schwenke, Chief Financial Officer Corrective Action: The FWS Program instances were the result of retroactive award adjustments that posted subsequent to the federal draws and federal draw reconciliations. To prevent a similar error in the future, the Business Office has modified its draw recordkeeping process to require that the employees that perform the draw requests and the reconciliations review the FWS master worksheet for any pending adjustments. The Federal Pell Grant Program instances resulted from reversals of student awards. The Business Office routinely monitors the general ledger for award transactions, however, reversals of student aid awarded late in the academic term can be missed. The Financial Aid Office will be responsible to notify the Business Office when they initiate award reversals that necessitate a refund. In addition to ongoing monitoring of the related general ledger accounts, the Business Office will also create automated reporting to notify staff of the pending account balances. Anticipated Completion Date: March 31, 2025

View Audit 351998

Finding 548667 (2024-007)

None 2024

Stevenson University, Inc.

MD

Student Financial Aid Eligibility Internal Control / Segregation of Duties

Name of Responsible Individual: Brandon Rhone, Analyst, Financial Aid Systems, and Chad Wick, Director Financial Aid Corrective Action: During the 2024 fiscal year, the Financial Aid office experienced several staffing changes, including hiring of a new Director of Financial Aid. The University tr...

Name of Responsible Individual: Brandon Rhone, Analyst, Financial Aid Systems, and Chad Wick, Director Financial Aid Corrective Action: During the 2024 fiscal year, the Financial Aid office experienced several staffing changes, including hiring of a new Director of Financial Aid. The University transitioned from a manual awarding process to an automated process after last year’s audit but not in time to change some of the 23-24 awards. In the past FSEOG funds were used to assist students to pay off balances allowing them to register for the next semester. This practice in no longer being followed beginning with the 24-25 academic year. In addition, the Financial Aid office will review all 2024-2025 FSEOG awards to ensure that FSEOG is only awarded to Pell recipients. Anticipated Completion Date: March 31, 2025

View Audit 351998

Finding 548666 (2024-006)

Significant Deficiency 2024

Stevenson University, Inc.

MD

Student Financial Aid Reporting Matching / Level of Effort / Earmarking

Name of Responsible Individual: Chad Wick, Director Financial Aid Corrective Action: During the 2024 fiscal year, the Financial Aid office experienced several staffing changes, including hiring a new Director of Financial Aid. The newly hired staff did not receive the proper training to perform th...

Name of Responsible Individual: Chad Wick, Director Financial Aid Corrective Action: During the 2024 fiscal year, the Financial Aid office experienced several staffing changes, including hiring a new Director of Financial Aid. The newly hired staff did not receive the proper training to perform their roles effectively. This led to errors identifying and calculating the unearned amount of Title IV assistance to be returned. The previous Financial Aid Director was terminated before the prior corrective action plan could be fully completed. New leadership, in collaboration with the Office of Information Technology, developed an automated weekly report confirming student withdrawal dates for the 24-25 academic year. The report is emailed to Financial Aid director every Friday. The Financial Aid Director reviews the report and identifies Title IV recipients. The return of Title IV funds calculation is performed for those students. Any funds required to be disbursed or returned are then processed. Anticipated Completion Date: March 31, 2025

View Audit 351998

Finding 548665 (2024-002)

Significant Deficiency 2024

Stevenson University, Inc.

MD

Student Financial Aid Internal Control / Segregation of Duties Matching / Level of Effort / Earmarking

Name of Responsible Individual: Brian Emery, Associate Director Financial Aid and Chad Wick, Director Financial Aid Corrective Action: During the 2024 fiscal year, the Financial Aid office experienced several staffing changes, including hiring a new Director Financial of Aid. They also contracted w...

Name of Responsible Individual: Brian Emery, Associate Director Financial Aid and Chad Wick, Director Financial Aid Corrective Action: During the 2024 fiscal year, the Financial Aid office experienced several staffing changes, including hiring a new Director Financial of Aid. They also contracted with a third-party servicer that assisted with the verification process. The newly hired staff did not receive the proper training to perform their roles effectively. These two changes led to errors in verifying certain data when performing verification. The Financial Aid office implemented a Quality Assurance two-step verification process, but this took place after some of the 23-24 awards were processed. The Financial Aid office will run a report to identify all students selected for verification for 2024-2025 and review them for accuracy. If any corrections are needed, they will be updated, and awards will be adjusted as needed. Anticipated Completion Date: March 31, 2025

View Audit 351998

Finding 548648 (2024-002)

Significant Deficiency 2024

Queens University of Charlotte

NC

Student Financial Aid Matching / Level of Effort / Earmarking Internal Control / Segregation of Duties

Individual Responsible for Corrective Action: Everett Jeter, Director of Compliance Corrective Action: The error falls into the category of human oversight rather than fundamental misunderstanding of the regulation or timing of processes. A loan disbursement notification was sent to the students i...

Individual Responsible for Corrective Action: Everett Jeter, Director of Compliance Corrective Action: The error falls into the category of human oversight rather than fundamental misunderstanding of the regulation or timing of processes. A loan disbursement notification was sent to the students in question; however, we can only document the loan disbursement notification was sent but are unable to document the date or content of the communication. Students identified with missing communications are from spring 2024. Our internal processes dictate that the notification would normally be sent on the date of disbursement. We will develop and implement a loan disbursement notification to loan recipient reconciliation process to effectively capture students with missing communications to ensure that both a record of the notification and the date are maintained. Anticipated Completion Date: August 15, 2025

View Audit 351979

Finding 548642 (2024-001)

Material Weakness 2024

Women in Safe Homes, Inc.

AK

Subrecipient Monitoring Material Weakness Reporting

Federal Award Finding: 2024-001 Material Weakness in Compliance and Internal Control over Reporting Name and Contact Person: Adrienne Gaines, Executive Director Corrective Action: WISH has evaluated and revised the processes and procedures regarding monitoring of grant reporting and deadlines, as we...

Federal Award Finding: 2024-001 Material Weakness in Compliance and Internal Control over Reporting Name and Contact Person: Adrienne Gaines, Executive Director Corrective Action: WISH has evaluated and revised the processes and procedures regarding monitoring of grant reporting and deadlines, as well as the processes for maintaining records supporting all grant reports, submission details, and corresponding approvals. Management will appoint an individual to oversee this for each grant. Proposed Completion Date: June 30, 2025

View Audit 351973

Finding 548640 (2024-008)

Significant Deficiency 2024

The Shaw University, Inc.

NC

Student Financial Aid Reporting Matching / Level of Effort / Earmarking

Name of Responsible Individual: Vice President of Enrollment Management (Dr. Stacey Sowell), Director of Financial Aid (Dr. Ojebe Ifegwu), University Registrar (Charee Ellison) Corrective Action: The University concurs with the finding and will review and revise its procedures for the frequency of ...

Name of Responsible Individual: Vice President of Enrollment Management (Dr. Stacey Sowell), Director of Financial Aid (Dr. Ojebe Ifegwu), University Registrar (Charee Ellison) Corrective Action: The University concurs with the finding and will review and revise its procedures for the frequency of NSLDS reporting to ensure timely reporting of enrollment changes. The University will implement a monthly enrollment audit to ensure that any change in enrollment status is identified in a timely manner and reported to NSLDS. Anticipated Completion Date: June 30, 2025

View Audit 351972

Finding 548637 (2024-007)

Significant Deficiency 2024

The Shaw University, Inc.

NC

Internal Control / Segregation of Duties Student Financial Aid Subrecipient Monitoring

Name of Responsible Individual: Vice President of Enrollment Management (Dr. Stacey Sowell), Director of Financial Aid (Dr. Ojebe Ifegwu), University Registrar (Charee Ellison) Corrective Action: The University concurs with the finding and will monitor internal controls to ensure that the return of...

Name of Responsible Individual: Vice President of Enrollment Management (Dr. Stacey Sowell), Director of Financial Aid (Dr. Ojebe Ifegwu), University Registrar (Charee Ellison) Corrective Action: The University concurs with the finding and will monitor internal controls to ensure that the return of Title IV funds is processed in accordance with federal regulations, specifically within the required 45-day timeframe after determining a student has withdrawn from the university. The university will establish a quarterly audit and monitoring system to review all Title IV fund returns, ensuring compliance with federal guidelines. Anticipated Completion Date: June 30, 2025

View Audit 351972

Finding 548633 (2024-006)

Significant Deficiency 2024

The Shaw University, Inc.

NC

Student Financial Aid Internal Control / Segregation of Duties Reporting

Name of Responsible Individual: Vice President of Enrollment Management (Dr. Stacey Sowell), Director of Financial Aid (Dr. Ojebe Ifegwu) Corrective Action: The University concurs with the finding. The University will make any necessary changes and corrections to ensure that the FISAP is submitted...

Name of Responsible Individual: Vice President of Enrollment Management (Dr. Stacey Sowell), Director of Financial Aid (Dr. Ojebe Ifegwu) Corrective Action: The University concurs with the finding. The University will make any necessary changes and corrections to ensure that the FISAP is submitted annually by October 1 following the end of the award year. This ensures that all data corrections are submitted on or before the deadline. The Financial aid Office will implement a process to enhance internal controls, policies and procedures, to ensure the FISAP is submitted accurately and timely. Anticipated Completion Date: October 1, 2025

View Audit 351972

Finding 548632 (2024-005)

Significant Deficiency 2024

The Shaw University, Inc.

NC

Internal Control / Segregation of Duties Student Financial Aid Eligibility

Name of Responsible Individual: Vice President of Enrollment Management (Dr. Stacey Sowell), Director of Financial Aid (Dr. Ojebe Ifegwu) Corrective Action: The University concurs with the finding. In selecting among eligible students for FSEOG in each award year, the office of Financial Aid will ...

Name of Responsible Individual: Vice President of Enrollment Management (Dr. Stacey Sowell), Director of Financial Aid (Dr. Ojebe Ifegwu) Corrective Action: The University concurs with the finding. In selecting among eligible students for FSEOG in each award year, the office of Financial Aid will select first those students with the lowest expected family contribution and the highest need who also received Federal Pell Grants in that year. Management will implement and document an internal audit review. A monthly reconciliation will be completed to ensure Pell recipients are awarded FSEOG, based on the guidance provided by the Federal handbook. Anticipated Completion Date: June 30, 2025

View Audit 351972

Finding 548629 (2024-004)

Significant Deficiency 2024

The Shaw University, Inc.

NC

Cash Management Internal Control / Segregation of Duties

Name of Responsible Individual: Controller (Michelle Lane) Corrective Action: The University concurs with the finding. We have made necessary changes in personnel to mitigate the risk of these actions repeating. We have implemented new controls over cash management and implemented additional intern...

Name of Responsible Individual: Controller (Michelle Lane) Corrective Action: The University concurs with the finding. We have made necessary changes in personnel to mitigate the risk of these actions repeating. We have implemented new controls over cash management and implemented additional internal controls. The University will make disbursements as soon as they are available, but no later than the three (3) business days following receipt of funds. University policies and procedures will be followed closely to ensure there is no excess cash. All funds will be returned in a timely manner. Anticipated Completion Date: June 30, 2025

View Audit 351972

Finding 548625 (2024-101)

Significant Deficiency 2024

Maricopa County Community College District

AZ

Reporting Internal Control / Segregation of Duties § 200.303

The Maricopa County Community College District understands the importance of maintaining documentation that demonstrates the information provided to sponsoring agencies accurately reflects approved program activities and expenditures for a reporting time period. The District has internal controls in...

The Maricopa County Community College District understands the importance of maintaining documentation that demonstrates the information provided to sponsoring agencies accurately reflects approved program activities and expenditures for a reporting time period. The District has internal controls in place that outline the procedures for the review and approval of financial reports for its grants that are submitted separately to the sponsoring agency for the reimbursement of program expenses. The reports identified in this test work were related to the overall program report. The District will develop a review and approval procedure to ensure that the review and approval of overall programmatic reporting provided to sponsoring agencies, which may contain financial information that has been reviewed and approved, is documented and maintained within program files.

View Audit 351965

Finding 548605 (2024-002)

Significant Deficiency 2024

City of Madera

CA

Subrecipient Monitoring HUD Housing Programs Period of Performance

Finding 2024-002 Special Tests and Provision – Internal Control and Compliance over Environmental Reviews (Significant Deficiency) Criteria: Title 24 U.S. Code of Federal Regulations sections 58.1, 58.22, 58.34, 58.35, and 570.604 require projects to have an environmental review unless they meet ...

Finding 2024-002 Special Tests and Provision – Internal Control and Compliance over Environmental Reviews (Significant Deficiency) Criteria: Title 24 U.S. Code of Federal Regulations sections 58.1, 58.22, 58.34, 58.35, and 570.604 require projects to have an environmental review unless they meet criteria specified in the regulations that would exempt or exclude them from environmental certification requirements. For projects where the environmental review was not performed, a written documentation that the review was not required must be prepared. Condition and Context: The City could not provide support that there was pre-award or post-award review of grant projects to determine if a project requires an environmental review or is categorically excluded from the environmental review requirements. The City did not have adequate internal controls to ensure compliance with the special test – environmental review requirements. Testing was performed over each requirement for the City. Out of a total population of twelve (12) projects, we selected a sample of four (4) projects to test for environmental reviews. Four (4) out of the four (4) projects tested did not have an exemption report prepared in a timely manner. The sample was not intended to be, and was not, a statistically valid sample. City’s Corrective Action Plan: The City will reinforce its standard operating procedure concerning Environmental Reviews (ER) and will reinsure that environmental reviews are properly completed for every awarded grant project. Contact person responsible for corrective action: Michael Lima, Finance Director Anticipated completion date: June 30, 2025

View Audit 351953

Finding 548202 (2024-002)

None 2024

Dartmouth-Hitchcock Health and Subsidiaries

NH

Subrecipient Monitoring Allowable Costs / Cost Principles HUD Housing Programs § 200.430

Management agrees with the finding related to effort certifications. Dartmouth-Hitchcock published a new effort policy on February 11, 2025, for all research staff to emphasize the importance of Principal Investigators and Research Staff certifying their efforts on grants promptly. Management will b...

Management agrees with the finding related to effort certifications. Dartmouth-Hitchcock published a new effort policy on February 11, 2025, for all research staff to emphasize the importance of Principal Investigators and Research Staff certifying their efforts on grants promptly. Management will begin implementing and enforcing the policy starting with the quarter ending March 31, 2025. Leadership Responsible: John Muhlen, System Vice President of Corporate Finance Anticipated Completion Date: March 31, 2025

View Audit 351922

Finding 548011 (2024-004)

Significant Deficiency 2024

Halstead Housing Authority

KS

Reporting Equipment & Real Property Management Internal Control / Segregation of Duties

Action Taken: We will implement internal controls to follow up with the Fee accountant at FYE to be certain they are preparing materials in accordance with Generally Accepted Accounting Principles (GAAP). Anticipated Date of Resolution: This finding will be corrected with the next financial data ...

Action Taken: We will implement internal controls to follow up with the Fee accountant at FYE to be certain they are preparing materials in accordance with Generally Accepted Accounting Principles (GAAP). Anticipated Date of Resolution: This finding will be corrected with the next financial data schedule submission. Individual Responsible: DawnEna Davidson, Executive Director.

View Audit 351920

Finding 548006 (2024-006)

Significant Deficiency 2024

Quincy Asian Resources, Inc.

MA

Cash Management Internal Control / Segregation of Duties

Views of Responsible Officials and Planned Corrective Action: Quincy Asian Resources, Inc. agrees with the finding and will implement policies and procedures to draw down Federal funds only for its immediate Federal program cash needs.

View Audit 351904

Finding 548001 (2024-001)

Significant Deficiency 2024

Quincy Asian Resources, Inc.

MA

HUD Housing Programs Reporting Internal Control / Segregation of Duties

Views of Responsible Officials and Planned Corrective Action: While Quincy Asian Resources, Inc. concurs with the ultimate outcome identified in the finding, we want to emphasize our review indicates all transactions were handled with appropriate intent. The identified adjustments were primarily due...

Views of Responsible Officials and Planned Corrective Action: While Quincy Asian Resources, Inc. concurs with the ultimate outcome identified in the finding, we want to emphasize our review indicates all transactions were handled with appropriate intent. The identified adjustments were primarily due to timing of personnel transitions on our accounting department. To further strengthen our financial reporting processes, we have subsequently hired a new controller with extensive nonprofit accounting experience. This addition to our team will help ensure continued accuracy in financial reporting while maintaining strong internal controls.

View Audit 351904

Finding 547993 (2024-004)

Material Weakness 2024

Umpqua Public Transportation District

OR

Procurement, Suspension & Debarment Material Weakness Internal Control / Segregation of Duties § 200.318

Finding 2024-004 - Procurement (Material Weakness) CFDA Title and Number: 20.526 Grants for Buses and Bus Facilities Formula Program Name of Federal Agency: Department of Transportation Internal Control over Compliance: Procurement CFDA Title and Number: 20.513 (5310) Enhanced Mobility of Seniors ...

Finding 2024-004 - Procurement (Material Weakness) CFDA Title and Number: 20.526 Grants for Buses and Bus Facilities Formula Program Name of Federal Agency: Department of Transportation Internal Control over Compliance: Procurement CFDA Title and Number: 20.513 (5310) Enhanced Mobility of Seniors & Individuals with Disabilities. Name of Federal Agency: Department of Transportation Internal Control over Compliance: Procurement CFDA Title and Number: 20.509 (5311) Operating Assistance. Formula Grants for Rural. Name of Federal Agency: Department of Transportation Internal Control over Compliance: Procurement Criteria: 2 CFR Part 200.318(a-k) Numerous procurement regulations exist requiring federal grant awardees to develop and implement internal control policies and procedures related to procurement activities. Condition: The District made expenditures and engaged in contracts without following relevant procurement requirements. Cause: Management lacked awareness of relevant procurement regulations. Consequently, no internal control policies or procedures related to procurement existed, or policies and procedures existed but were not implemented. Effect or Potential Effect: The lack of effective internal controls over procurement activities allowed for widespread deficiencies and noncompliant activities, which resulted in the District’s revocation of one award. Questioned Cost: No Context: Without proper procurement policies and procedures, the risk of compliance requirement violations is significant. The District failed to meet numerous procurement requirements throughout the year, and ultimately lost a significant award for bus acquisitions. Repeat of a Prior-Year Finding: No Recommendation: The District should design and implement internal controls related to procurement regulations that will reduce the risk that the District’s procurement activities are not in compliance with federal regulations. District's Response: The District acknowledges the weaknesses and its intention of correcting weaknesses. Corrective Action Plan: The District’s shall design and implement, or revise, policies and procedures for meeting procurement compliance requirements. The District will work with ODOT to ensure compliance. The new procurement policy must include not only policies for procurements, but also for documentation of solicitations, contracts activities. Planned Implementation Date: October 31, 2024 Responsible Persons: District Board, Umpqua Public Transit District

View Audit 351895

Finding 547981 (2024-003)

Significant Deficiency 2024

Nuestra Escuela

PR

Reporting Internal Control / Segregation of Duties

Management response: • Nuestra Escuela’s Program Director will adopt automated data collection software to ensure the timely availability of participants information, thereby preventing delays in report submission. • Nuestra Escuela will enhance its internal controls to ensure adherence to all req...

Management response: • Nuestra Escuela’s Program Director will adopt automated data collection software to ensure the timely availability of participants information, thereby preventing delays in report submission. • Nuestra Escuela will enhance its internal controls to ensure adherence to all required reporting deadlines, promoting timely and accurate submissions under the TANF program strengthen internal controls to ensure the compliance with the reporting. • Nuestra Escuela will conduct regular audits to verify data accuracy, maintaining open and consistent communication with all relevant parties to address potential reporting bottlenecks. • Nuestra Escuela Management staff will receive specialized training on participant qualification and proper requirements and efficient time management practices to improve reporting compliance. • The Executive President will develop and implement a contingency plan to address unforeseen circumstances that could otherwise hinder timely submission of reports. Corrective action plan: Action Date of Compliance Involved areas Adopt automated data collection software Jun 25 - 2025 Executive President Program Director Schedule of internal monitoring for compliance with Special Conditions Monthly Program Director Specialized training on participant qualification and proper requirements May 22 - 2025 External Consultant Program Director Directors in charge of Programs Develop a contingency plan to address unforeseen circumstances Apr 10 - 2025 Executive President External Consultant Actions to complete monthly: ● Internal monitoring by the Program Director with the automated data collection software. ● Meeting between the Program Director and the Directors of each of the Programs to validate the correct status of the reports. Actions to complete quarterly: ● Meeting between the Program Director and the Executive President for a physical review of the files. Contact Person: Ana Yris Guzmán – Executive President|

View Audit 351891

Finding 547968 (2024-002)

Significant Deficiency 2024

Nuestra Escuela

PR

Reporting Significant Deficiency Internal Control / Segregation of Duties

Management response: • Nuestra Escuela will design and implement internal controls specifically addressing the accounting of conditional advances. These controls will include developing a clear rubric to assess whether grants and contracts meet the criteria for conditional contributions under ASU 2...

Management response: • Nuestra Escuela will design and implement internal controls specifically addressing the accounting of conditional advances. These controls will include developing a clear rubric to assess whether grants and contracts meet the criteria for conditional contributions under ASU 2018-08. • The accounting staff will undergo specialized training on the proper recognition of conditional advances. Regular reviews will be conducted to ensure ongoing compliance with ASU 2018-08 and to maintain accurate financial reporting. • Recognizing the need to meet both agency (cash basis) and GAAP (accrual basis), Nuestra Escuela will prepare management reports on both bases. This approach will facilitate accurate grant reporting while ensuring compliance with generally accepted accounting principles. Corrective action plan: Action Date of Compliance Involved areas Developing a clear rubric to assess whether grants and contracts meet the criteria for conditional contributions under ASU 2018-08. Apr 21 - 2025 External Consultant Executive President Administrative Director Directors in charge of Programs Create a “Model reports” on both bases, to use monthly. Monthly Executive President Administrative Director Specialized training on the proper recognition of conditional advances. Jun 10 - 2025 External Consultant Executive President Administrative Director Directors in charge of Programs Actions to complete monthly: • To prepare management reports on both bases Actions to complete quarterly: • Use the rubric to assess whether grants and contracts meet the criteria for conditional contributions under ASU 2018-08. Contact Person: Ana Yris Guzmán – Executive President

View Audit 351891

Finding 547967 (2024-001)

Significant Deficiency 2024

Nuestra Escuela

PR

Reporting Significant Deficiency Internal Control / Segregation of Duties

Management response: • Nuestra Escuela will strengthen its processes to ensure that all grants and accrued expenses are recorded promptly and that services rendered are accounted for in the correct period accurately. • The Administrative Director will perform regular reconciliations of accounts to...

Management response: • Nuestra Escuela will strengthen its processes to ensure that all grants and accrued expenses are recorded promptly and that services rendered are accounted for in the correct period accurately. • The Administrative Director will perform regular reconciliations of accounts to detect, identify, and correct, any discrepancies that may indicate cut-off errors. • The administrative staff and accounting team will receive additional training on the best practices and proper cut-off procedures, emphasizing the importance of timely and accurate recognition of liabilities and receivables and the impact of errors on financial reporting. • Nuestra Escuela will reinforce its internal audit processes to periodically review compliance with cut-off procedures. This practice will involve analyzing the impact of contractual clauses on the period of receipt and use of funds. • Nuestra Escuela will Create documentation of its cut-off policies and procedures to ensure consistent application and understanding among all relevant staff and ensure that they are strictly enforced. • Nuestra Escuela is committed to preventing cut-off errors through a proactive approach from accountants. This involves a combination of robust procedures, leveraging technology, and fostering a culture of accuracy and compliance within the accounting department. By following these best practices, accountants can help ensure the integrity of the financial reporting process. Corrective action plan: Action Date of Compliance Involved areas Reconciliations of each account to identify any discrepancies that may indicate cut-off errors. Monthly Executive President Administrative Director Analyze the impact of contractual clauses on the period of receipt and use of funds. Apr 15 – 2025 Jul 15 -2025 Oct 15 – 2025 Ene 15 - 2026 Executive President Administrative Director Training on the best practices and proper cut-off procedures May 8 - 2025 External Consultant Executive President Administrative Director Directors in charge of Programs Complete file with cut-off policies and procedures Jun 20 - 2025 Administrative Director Directors in charge of Programs Actions to complete monthly: • Reconciliations of each account to identify any discrepancies that may indicate cut-off errors. Actions to complete quarterly: • Analyze the impact of contractual clauses on the period of receipt and use of funds. • Training on the best practices and proper cut-off procedures • Complete file with cut-off policies and procedures Contact Person: Ana Yris Guzmán – Executive President

View Audit 351891

Finding 547954 (2024-001)

Material Weakness 2024

County of El Dorado

CA

Eligibility Material Weakness Matching / Level of Effort / Earmarking

Reference Number: 2024-001 Name of Contact Person: Kelly Nakamura Phone: 530-642-7167 Email: Kelly.nakamura@edcgov.us Corrective Action: • Increasing Staffing Levels: o By April 1, 2025, the County will have 11 newly trained Eligibility Specialists who are fully trained to proces...

Reference Number: 2024-001 Name of Contact Person: Kelly Nakamura Phone: 530-642-7167 Email: Kelly.nakamura@edcgov.us Corrective Action: • Increasing Staffing Levels: o By April 1, 2025, the County will have 11 newly trained Eligibility Specialists who are fully trained to process Medi-Cal applications. o Ongoing recruitment efforts will continue to fill vacant positions, including the hiring additional trainees to build capacity for timely eligibility determinations. • Improving Internal Processes: o The County is conducting a review of workflows to identify inefficiencies and implement streamlined processes that eliminate bottlenecks. o Digital tools and automation are being introduced to enhance efficiency and accuracy case processing. • Providing Additional Support: o Overtime opportunities are being offered to eligibility specialists to expedite the processing of pending cases. o Applications are being assigned to Eligibility Specialists on a weekly basis to ensure consistent progress in reducing the backlog. • Enhancing Monitoring and Reporting: o Administrative staff are generating weekly reports from CalSAWS to track the status Medi-Cal pending applications and monitor progress. o Weekly meetings are being held with supervisors to review performance, discuss challenges, and adjust strategies as needed. • Strengthening Internal Controls: o The County is improving its internal controls to prevent future delays, including increased use of system reports to identify applications nearing the 45-day processing requirement, regular audits of the eligibility determination process and enhanced compliance training for staff. • Ongoing Evaluation and Adaptation: o Progress will be assessed weekly to ensure the implemented measures are effective. Adjustments will be made as needed to maintain compliance with the 45-day requirement. Proposed Completion Date: The county has already implemented this process and expects it to be completed by July 31, 2026.

View Audit 351887

Corrective Action Plans

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