Corrective Action Plans

Finding 529221 (2024-002)

Material Weakness 2024

IN

Subrecipient Monitoring Material Weakness Reporting § 200.303

Information on the federal program: Subject: Education Stabilization Fund (ESSER) - Internal Controls Federal Agency: Department of Education Federal Program: COVID-19 - Education Stabilization Fund Assistance Listing Number: 84.425D, 84.425U Federal Award Numbers and Years (or Other Identifying Num...

Information on the federal program: Subject: Education Stabilization Fund (ESSER) - Internal Controls Federal Agency: Department of Education Federal Program: COVID-19 - Education Stabilization Fund Assistance Listing Number: 84.425D, 84.425U Federal Award Numbers and Years (or Other Identifying Numbers): S425D210013, S425U210013 Pass-Through Entity: Indiana Department of Education Compliance Requirement: Reporting Audit Finding: Material Weakness Condition: An effective internal control system was not in place at the School Corporation to ensure compliance with requirements related to the grant agreement and the reporting compliance requirements. The School Corporation was not formally reviewing the ESSER reports being submitted by comparing the underlying expenditure detail to the amounts reported for each grant for the reporting period. Context: The School Corporation was required to submit six Annual Data Reports to the Indiana Department of Education (IDOE) during the audit period to meet federal reporting requirements for ESSER grant awards. Crowe noted the following reporting errors for the Year 3 reports (July 1, 2021 through June 30, 2022). The ESSER If amount reported on the Year 3 report ($585,040) did not agree to the underlying expenditure records ($581,468). This is the exact amount reported as the SEA reserve amount on the Annual Data Report. Crowe noted the ESSER Ill amount reported on the Year 3 report ($0) did not agree to the underlying expenditure records ($351,831). Crowe noted the following reporting error for the Year 4 reports (July 1, 2022 through June 30, 2023). The ESSER Ill amount reported on the Year 4 report ($1,062,765) did not agree to the underlying expenditure records ($1,054,618). This is the exact amount reported as the SEA reserve amount on the Annual Data Report. Corrective Action Plan: The School Corporation will implement internal control procedures to ensure the amounts reported in the annual data reports agree to the underlying support and detail from the internal records. A formal review process will be implemented. Person responsible for implementation and projected implementation date: The Corporation's Treasurer and Superintendent will be responsible for implementing the corrective action, which will be implemented immediately.

View Audit 347212

Finding 529216 (2024-002)

Significant Deficiency 2024

Housing and Redevelopment Authority of Fergus Falls

MN

Reporting Internal Control / Segregation of Duties

Recommendation: The Authority should continue to review internal controls currently in place and improve internal controls over financial reporting so that financial statements are in compliance with generally accepted accounting principles. Views of Responsible Officials and Planned Corrective Acti...

Recommendation: The Authority should continue to review internal controls currently in place and improve internal controls over financial reporting so that financial statements are in compliance with generally accepted accounting principles. Views of Responsible Officials and Planned Corrective Actions: The Authority will continue to review the accounting system and related financial reporting system to identify and correct material misstatements to the financial statements.

View Audit 347208

Finding 529215 (2024-001)

Significant Deficiency 2024

Housing and Redevelopment Authority of Fergus Falls

MN

Internal Control / Segregation of Duties

Recommendation: Although it may not be economically feasible for the Authority to attain an ideal segregation of duties environment, the Authority can periodically observe and evaulate its current structure to make improvements when considered necessary. Views of Responsible Officials and Planned Co...

Recommendation: Although it may not be economically feasible for the Authority to attain an ideal segregation of duties environment, the Authority can periodically observe and evaulate its current structure to make improvements when considered necessary. Views of Responsible Officials and Planned Corrective Actions: The Authority has determined the benefit of adequately segregating duties is less than the cost. Based on the assessment, the Authority is accepting the risk posed by the deficiency while also evaluating mitigating controls that will help reduce the risk of material misstatement of the financial statements. Management attempts to mitigate the associated risks by doing the following: 1. Identifies areas where lack of segregation of duties exists and where there are higher risks of error or fraud occuring. 2. Implements limited segregation to the extent possible to reduce risks without impairing efficiency. 3. Uses the knowledge that management and the Board of Directors have of operations by having them review certain accounting records and reports. 4. Monitors the effectiveness of the above actions and makes changes as considered necessary.

View Audit 347208

Finding 529195 (2024-002)

Significant Deficiency 2024

Many Farms Community School, Inc.

AZ

Special Tests & Provisions Significant Deficiency Internal Control / Segregation of Duties

CORRECTIVE ACTION PLAN U.S. Department of the Interior Many Farms Community School, Inc. respectfully submits the following corrective action plan for the year ended June 30, 2024. Audit period: July 1, 2023 – June 30, 2024 The findings from the schedule of findings and questioned costs are discusse...

CORRECTIVE ACTION PLAN U.S. Department of the Interior Many Farms Community School, Inc. respectfully submits the following corrective action plan for the year ended June 30, 2024. Audit period: July 1, 2023 – June 30, 2024 The findings from the schedule of findings and questioned costs are discussed below. The findings are numbered consistently with the numbers assigned in the schedule. FINDINGS—FINANCIAL STATEMENT AUDIT 2024-001 Internal Control Over Financial Reporting Type of Finding: Material Weakness in Internal Control Over Financial Reporting Condition: According to generally accepted accounting principles (GAAP), School management is responsible for establishing and maintaining internal controls over financial reporting, to include controls over the School’s accounting records and general ledger transactions. These internal control procedures should include ensuring expenditures are recorded within the correct fiscal year and that revenue and expenditure transactions are properly recorded within the General Ledger. Context: During our review of the School’s accounting records, we noted the following:  The School erroneously recorded $215,173 in expenditures on a fiscal year 2023-2024 encumbrance voucher. This was due to an issue in the financial reporting software with the purchase order not rolling to fiscal year 2024-2025.An audit adjustment was recorded to reverse the expenditures.  An audit adjustment was recorded to accrue an E-Rate reimbursement of $112,919 that was received within the encumbrance period.  The School does not currently have access to its investment account; due to turnover the School does not currently have an authorized signer for the account. The June 2024 statement shows a balance of $2,772,353. The School is currently in litigation to get access to the account. Repeat Finding: Repeated and modified. Action planned in response to finding: The School will implement additional procedures to review revenues and expenditures to ensure that they are recorded in the proper accounting period. Additionally, the School will complete the litigation process to regain access to its investment account. Planned completion date for corrective action plan: For the period ending June 30, 2025. Name of the contact person responsible for corrective action: Ernest Sakeva, Business Manager

View Audit 347177

Finding 529193 (2024-004)

Significant Deficiency 2024

Chicago State University

IL

Matching / Level of Effort / Earmarking Internal Control / Segregation of Duties Student Financial Aid § 200.303

The staff ember responsible for running the process has started to send notification manually instead of through the Banner System until a resolution to the glitch has been identified Task Activity Expected Start Date Expected End Date Completion Date Manual emails sent January 2025 Ongoing Depends...

The staff ember responsible for running the process has started to send notification manually instead of through the Banner System until a resolution to the glitch has been identified Task Activity Expected Start Date Expected End Date Completion Date Manual emails sent January 2025 Ongoing Depends upon resolution from Ellucian

View Audit 347176

Finding 529179 (2024-003)

Material Weakness 2024

Oregon Food Bank, Inc.

OR

Questioned Costs Reporting Internal Control / Segregation of Duties § 200.430

Food Distribution Cluster US Department of Agriculture / Oregon Department of Human Services Federal Assistance Listing Number: 10.565, 10.568, 10.569, 10.182 Federal Program Name: Food Distribution Cluster, Local Food Purchase Assistance Cooperative OFB’s View on Finding: OFB acknowledges the findi...

Food Distribution Cluster US Department of Agriculture / Oregon Department of Human Services Federal Assistance Listing Number: 10.565, 10.568, 10.569, 10.182 Federal Program Name: Food Distribution Cluster, Local Food Purchase Assistance Cooperative OFB’s View on Finding: OFB acknowledges the finding and agrees with the auditors' assessment Responsible Party: Katie Kenton, Interim Co-Director of Finance (Strategic Finance); Nan Wang, Interim Co-Director of Finance (Operational Finance); Rut Martinez-Alicea, Director of Equity People Culture and Administration; Starr Yurkewycz, Director of Partnerships and Programs; Nathan Harris, Director of Community Philanthropy; Shannon Oliver, Interim Director of Operations Corrective Action Plan: Finance will collaborate with key stakeholders to develop and implement a time and effort reporting system that meets federal documentation standards. This plan will identify impacted personnel and tailor reporting processes based on different funding sources. This effort will be cross departmental, roll out may include iterations of testing and refining and require training adoption and monitoring. These actions will strengthen internal controls and ensure personnel costs are accurately recorded and appropriately allocated. The anticipated completion date is: Employee review & certification of time and effort estimates - June 30, 2026 Implementation of software solution for time and effort documentation - June 30, 2027

View Audit 347167 Questioned Costs: $1

Finding 529177 (2024-002)

Significant Deficiency 2024

Thomas Edison State University and Its Affiliate the New Jersey State

NJ

Student Financial Aid Special Tests & Provisions Reporting

2024-002 Special Tests (Enrollment Reporting) Federal Agency: Student Financial Assistance Cluster - U.S. Department of Education Program Titles and ALN: Federal Pell Grant Program (ALN 84.063) and Federal Direct Student Loans (ALN 84.268) Federal Grant Numbers: E-P063P243920 (7/1/2024 – 6/30/2025...

2024-002 Special Tests (Enrollment Reporting) Federal Agency: Student Financial Assistance Cluster - U.S. Department of Education Program Titles and ALN: Federal Pell Grant Program (ALN 84.063) and Federal Direct Student Loans (ALN 84.268) Federal Grant Numbers: E-P063P243920 (7/1/2024 – 6/30/2025), P268K253920 (7/1/2024 – 6/30/2025) Contact Person: Catharine A. Punchello, Vice Provost and University Registrar, 609-984-1180, x3135 Corrective Action: National Student Loan Data System (NSLDS) has resolved the issue causing the Error Code 75 (EC75) errors. Our last large batch of 75 errors was received in response to our Student Status Confirmation Report (SSCR) on July 8, 2024. We received one EC75 on September 13, 2024 and two EC75 on November 8, 2024 and none since then. The University continues to monitor NSLDS’ error reports on our SSCRs to ensure we are aware if they return. The University will continue to submit the SSCR responses to the Clearinghouse and ensure we report individual graduations or enrollment if there are error codes that cannot be resolved timely through the Clearinghouse process. Anticipated Completion Date: Completed

View Audit 347163

Finding 529175 (2024-001)

Significant Deficiency 2024

Thomas Edison State University and Its Affiliate the New Jersey State

NJ

Special Tests & Provisions Student Financial Aid Significant Deficiency

2024-001 Special Tests and Provisions (Verification) Federal Agency: Student Financial Assistance Cluster - U.S. Department of Education Program Titles and Assistance Listing Numbers (ALN): Federal Pell Grant Program (ALN 84.063) and Federal Direct Student Loans (ALN 84.268) Federal Grant Numbers:...

2024-001 Special Tests and Provisions (Verification) Federal Agency: Student Financial Assistance Cluster - U.S. Department of Education Program Titles and Assistance Listing Numbers (ALN): Federal Pell Grant Program (ALN 84.063) and Federal Direct Student Loans (ALN 84.268) Federal Grant Numbers: E-P063P243920 (7/1/2024 – 6/30/2025), P268K253920 (7/1/2024 – 6/30/2025) Contact Person: James Owens, Director of Financial Aid, (609) 633-9658 x 3400 Corrective Action: The University has enhanced its report for required verification documentation to highlight those selected with V4 or V5 status to ensure all proper documentation is requested and provided by the students as required for the verification status. The review will be done on a monthly basis throughout the fiscal year. Anticipated Completion Date: April 2025

View Audit 347163

Finding 529166 (2024-001)

Significant Deficiency 2024

University of Maine System

ME

Student Financial Aid Reporting Significant Deficiency

Student Financial Assistance Cluster – Assistance Listing No. Various Recommendation: We recommend the University review its reporting procedures to ensure that students’ statuses are accurately and timely reported to the National Student Loan Database System (NSLDS) within the appropriate timefram...

Student Financial Assistance Cluster – Assistance Listing No. Various Recommendation: We recommend the University review its reporting procedures to ensure that students’ statuses are accurately and timely reported to the National Student Loan Database System (NSLDS) within the appropriate timeframe as required by regulations. University of Maine at Farmington Condition: During our testing of 40 students, we noted four students at the University of Maine Farmington (UMF) whose campus enrollment effective date did not match their program enrollment effective date. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: After a similar audit finding in 2022, UMF understood that having the error reports from the National Student Clearinghouse (NSC) would correct this problem going forward. It was subsequently discovered that the internal report used in submitting withdrawals to the NSC pulled the Program Enrollment Effective Date from the wrong location, resulting in instances where the reported date did not match the Enrollment Effective Date. UMF is actively working with UMS IT staff to correct this report. In the meantime, these dates have been updated manually on the NSC website for all withdrawn students, including the four identified in this finding. Name(s) of the contact person(s) responsible for corrective action: Lisa Beane, Assistant Registrar for the University of Maine at Farmington. Planned completion date for corrective action plan: April 2025.

View Audit 347150

Finding 529140 (2024-001)

None 2024

Syracuse YMCA Senior Citizen Housing Development Fund Corporation

NY

Procurement, Suspension & Debarment Eligibility HUD Housing Programs

Finding No. 2024-001: Mortgage Insurance for the Purchase or Refinancing of Existing Multifamily Housing Projects – AL No. 14.155 Finding: During the audit of Syracuse YMCA Senior Citizen Housing Development Fund Corporation (Syracuse YMCA Apartments), it was identified that property management fail...

Finding No. 2024-001: Mortgage Insurance for the Purchase or Refinancing of Existing Multifamily Housing Projects – AL No. 14.155 Finding: During the audit of Syracuse YMCA Senior Citizen Housing Development Fund Corporation (Syracuse YMCA Apartments), it was identified that property management failed to perform required tenant recertifications for multiple tenants within the HUD required time frame. Recommendation: Syracuse YMCA Apartments should take measures to ensure that all tenants who have missed their recertification deadlines are properly recertified as soon as administratively feasible. In addition, management should implement internal policies to ensure all future recertifications are completed within HUD’s required timeline to avoid further disruption of subsidy payments. Action Taken: Syracuse YMCA Apartments agrees with the finding and going forward will make every effort to recertify tenants within the required timeframe. If the U.S. Department of Housing and Urban Development has questions regarding this plan, please call Anne Hawkes at (315) 474-6851.

View Audit 347114

Finding 529139 (2024-003)

Material Weakness 2024

West Fork Community School District

IA

Internal Control / Segregation of Duties

SEE RESPONSE AND CORRECTIVE ACTION PLAN AT 2024-001

View Audit 347109

Finding 529138 (2024-002)

Significant Deficiency 2024

Th, INC

WI

Internal Control / Segregation of Duties

Recommendation: Management and Board of Directors should remain aware of this situation and continue to monitor the various functions of the office staff and review detail reports to improve reliance on information prepared. Management Response: TH, Inc’s Administrator and Board will continue to mo...

Recommendation: Management and Board of Directors should remain aware of this situation and continue to monitor the various functions of the office staff and review detail reports to improve reliance on information prepared. Management Response: TH, Inc’s Administrator and Board will continue to monitor the accounting process. The following procedures have become written policy: All checks received are recorded in the appropriate deposit book by the Administrative Assistant. All deposits are reviewed by the Administrator. The Administrator makes the deposit at the bank. The Bookkeeper reviews and compares deposit totals with the online bank activity. The Administrator and Bookkeeper review monthly paper bank statements together. The Board reviews the financial reports, which includes monthly check register activity.

View Audit 347099

Finding 529137 (2024-001)

Significant Deficiency 2024

Th, INC

WI

Internal Control / Segregation of Duties

Recommendation: We recommend the Organization adopt policies and procedures to ensure the accounting records are in compliance with generally accepted accounting principles. Additionally, procedures should remain for requiring the Organization’s management to review the drafted financial statements...

Recommendation: We recommend the Organization adopt policies and procedures to ensure the accounting records are in compliance with generally accepted accounting principles. Additionally, procedures should remain for requiring the Organization’s management to review the drafted financial statements with the accounting firm and take responsibility for the finalized financial statements. Management Response: TH, Inc's Administrator and Board recognize their responsibility for the financial statements. The following procedures have become written policy: - The administrator reviews and approves invoices and statements as they come in. -The Bookkeeper processes invoices and statements weekly, processing checks every other week. - A Board member and Administrator review and approve the checks and direct payments every other week. - Electronic payments are reviewed and approved monthly by a Board member and Administrator. - All financial reports are reviewed and approved by the Board at the monthly Board meetings.

View Audit 347099

Finding 529134 (2024-001)

Significant Deficiency 2024

Timothy L. Johnson Academy

IN

Reporting Significant Deficiency Matching / Level of Effort / Earmarking § 200.329

March 13, 2025 Donovan CPAs 9292 N. Meridian Street, Suite 150 Indianapolis, IN 46260 Timothy L Johnson Academy Elementary school has already taken the following actions to address the FY2024 finding of noncompliance with Federal grant awards: 1. We transitioned to a new business services provid...

March 13, 2025 Donovan CPAs 9292 N. Meridian Street, Suite 150 Indianapolis, IN 46260 Timothy L Johnson Academy Elementary school has already taken the following actions to address the FY2024 finding of noncompliance with Federal grant awards: 1. We transitioned to a new business services provider in FY2025, and part of that transition included a complete overhaul of our grants management. 2. As part of this transition, we created procedures that better integrated our grants management processes with our financial accounting processes. This already allows us to better track the differences in our reimbursement-based grants, cash-basis state reporting, and GAAP-based accounting principles. 3. We also now have a more transparent school-level view of all our grants, which adds a level of control while working with an outsourced business and grants service provider. 4. Dawn Starks and Brad Yoder were responsible on the school side for these procedure changes. Brian Anderson and Kim Tarin from the Center for Innovative Education Solutions were responsible for this as the new business and grants services provider.

View Audit 347076

Finding 529127 (2024-001)

Significant Deficiency 2024

Douglas Pointe III Associates, LLC

IN

Procurement, Suspension & Debarment HUD Housing Programs Reporting § 200.512

The Data Collection Form was submitted to the Federal Audit Clearinghouse on May 22, 2024, and management will submit the Data Collection Form timely going forward.

View Audit 347054

Finding 529126 (2024-002)

Material Weakness 2024

Knox Community School Corporation

IN

Equipment & Real Property Management Internal Control / Segregation of Duties § 200.313

FINDING 2024-002 Information on the federal program: Subject: Education Stabilization Fund – Internal Controls Federal Agency: Department of Education Federal Program: COVID-19 – Education Stabilization Fund Assistance Listing Number: 84.425U Federal Award Numbers: S425U210013 Pass-Through Entity: I...

FINDING 2024-002 Information on the federal program: Subject: Education Stabilization Fund – Internal Controls Federal Agency: Department of Education Federal Program: COVID-19 – Education Stabilization Fund Assistance Listing Number: 84.425U Federal Award Numbers: S425U210013 Pass-Through Entity: Indiana Department of Education Compliance Requirement: Equipment and Real Property Management Audit Findings: Material Weakness Context: The School Corporation paid $2,135,000 for HVAC and flooring improvements and $92,301 in concrete work at various locations using COVID-19 - Education Stabilization Funds grant funds. These capital improvements were added to the detailed listing of capital improvements; however, did not include a detailed description of the property, a serial number or other identification number, the source of funding for the property (including the federal award identification number (FAIN)), who holds the title, and percentage of federal participation in the project costs for the federal award under which the property was acquired. Contact Person Responsible for Corrective Action: Kasey Clark Contact Phone Number: 574-772-1604 Views of Responsible Official: We concur with the finding. Description of Corrective Action Plan: AdTec does the inventory listing every two years and it will be placed on the Capital improvement listing. Anticipated Completion Date: Fall of 2025 during next inventory

View Audit 347048

Finding 529125 (2024-001)

Material Weakness 2024

Knox Community School Corporation

IN

Subrecipient Monitoring Material Weakness Reporting § 200.302 § 200.303 § 200.328

FINDING 2024-001 Information on the federal program: Subject: Education Stabilization Fund (ESSER) – Internal Controls Federal Agency: Department of Education Federal Program: COVID-19 – Education Stabilization Fund Assistance Listing Number: 84.425U Federal Award Numbers and Years (or Other Identif...

FINDING 2024-001 Information on the federal program: Subject: Education Stabilization Fund (ESSER) – Internal Controls Federal Agency: Department of Education Federal Program: COVID-19 – Education Stabilization Fund Assistance Listing Number: 84.425U Federal Award Numbers and Years (or Other Identifying Numbers): S425U210013 Pass-Through Entity: Indiana Department of Education Compliance Requirement: Reporting Audit Finding: Material Weakness Context: The School Corporation was required to submit two Annual Data Reports to the Indiana Department of Education (IDOE) to meet federal reporting requirements for ESSER grant awards. The Annual Data Reports were prepared by School Corporation management and reviewed by someone other than the preparer, however, the review process in place did not prevent, or detect and correct, errors. During testing of the accuracy of the annual data reports, the following errors were noted: • The Year 2 Annual Data Report for the ESSER III (84.425U) grant award reported total disbursements of $2,219,321 for the period of July 1, 2021 through June 30, 2022 compared to underlying disbursement detail of $2,715,940. • The Year 3 Annual Data Report for the ESSER III (84.425U) grant award reported total disbursements of $224,309 for the period of July 1, 2022 through June 30, 2023 compared to underlying disbursement detail of $306,194. Contact Person Responsible for Corrective Action: Kasey Clark Contact Phone Number: 574-772-1604 Views of Responsible Official: We concur with the finding. Description of Corrective Action Plan: There will be two people who look over the ESSER reports before submitting to the state to make sure they agree with the reports. Anticipated Completion Date: When next report is due.

View Audit 347048

Finding 529120 (2024-001)

Material Weakness 2024

Charleroi Area School District

PA

Cash Management School Nutrition Programs Internal Control / Segregation of Duties

Name of contact person: Mr. Joseph Gudac, Business Manager ...

Name of contact person: Mr. Joseph Gudac, Business Manager Corrective Action: We will follow our policy for ensuring the accuracy of meal counts before remitting the total meals to PDE. The district will implement a pre-submission review protocol to verify that monthly claims accurately reflect the meals served to eligible students. We also will develop a standardized checklist for reviewing and approving meal counts before submission and to ensure that discrepancies identified during review are promptly investigated and corrected. Anticipated Completion Date: The District will implement the above procedure immediately.

View Audit 347046

Finding 529112 (2024-001)

Significant Deficiency 2024

Chicago Commons Association

IL

Subrecipient Monitoring Cash Management Internal Control / Segregation of Duties § 200.305 § 200.516

Corrective Actions Taken Commons has taken the following actions to protect against such fraudulent incidents in the future: • Engaged a firm to assist with managing the incident; • Opened a new bank account; • Added account verification services with our banking partner, which will be utilized to v...

Corrective Actions Taken Commons has taken the following actions to protect against such fraudulent incidents in the future: • Engaged a firm to assist with managing the incident; • Opened a new bank account; • Added account verification services with our banking partner, which will be utilized to verify account updates; • Limited the amount of per vendor/subrecipient daily payments to our insurance limits, with verifications prior to releasing additional funds when the total payment exceeds the insurance limits; • Subrecipient payment receipt is verified by both the subrecipient and the Commons grants team; • Updated our policy and procedures to direct our subrecipients to request banking changes through our procurement system and not through email; and • Expanded implementation of our Kissflow procurement system across the organization, which includes new vendor process as well as a change of vendor information module. Vendor changes would be approved first by the program/department that works with the vendor prior to Finance approval. Completion Date With the exception of implementing the change of vendor information module in Kissflow, the above actions have all been completed by the date of this report. The projected completion date for Kissflow change of vendor information module is April 30, 2025. Responsible Party Dana Thomas, Chief Financial Officer Angela Allen, Vice President of Finance

View Audit 347007

Finding 529085 (2024-021)

Material Weakness 2024

State of North Dakota

ND

Questioned Costs Allowable Costs / Cost Principles Reporting § 200.430

University System Response/Corrective Action Plan North Dakota State University: Agree. North Dakota State University agrees to certify federal payroll expenses in a timely manner. North Dakota State University implemented a new payroll certification system which went live Spring 2024. Previously,...

University System Response/Corrective Action Plan North Dakota State University: Agree. North Dakota State University agrees to certify federal payroll expenses in a timely manner. North Dakota State University implemented a new payroll certification system which went live Spring 2024. Previously, North Dakota State University utilized a manual effort reporting process as part of PeopleSoft. The new payroll certification process was built into Novelution Research Management System, which supports multiple aspects of grant management. Novelution allows PIs to review salary information and certify within the software, provides automated reminder emails, and provides a better tracking mechanism for compliance. There has been a learning curve in utilizing the new system, and during FY2025 we continued to refine the process and implement additional mechanisms to improve compliance. University of North Dakota: Agree. In accordance with University of North Dakota’s policy, we will remind pre-reviewers and certifiers of University of North Dakota's requirement for timely certification. As outlined in the policy, we will invoke the consequences for failing to timely certify, including removing uncertified payroll from a project. Contact Person: North Dakota State University: Karin Hegstad, Associate Vice President Finance & Administration University of North Dakota: Lauren Pite, Director Grants & Contracts Anticipated Completion Date: North Dakota State University: June 30, 2025 University of North Dakota: March 31, 2025

View Audit 346994 Questioned Costs: $1

Finding 529081 (2024-020)

Material Weakness 2024

State of North Dakota

ND

Questioned Costs Procurement, Suspension & Debarment Matching / Level of Effort / Earmarking § 200.303 § 200.317

University System Response/Corrective Action Plan Bismarck State College: Agree. On the published RFQ, Bismarck State College identified a selection committee composed of nine members with the registered engineer and registered architect listed as TBD, as these members had not yet been identified. T...

University System Response/Corrective Action Plan Bismarck State College: Agree. On the published RFQ, Bismarck State College identified a selection committee composed of nine members with the registered engineer and registered architect listed as TBD, as these members had not yet been identified. The selection committee later downsized to seven members. Bismarck State College understands that an amendment to the RFQ should have been released. Four selection committee members evaluated the RFQ submittals, three from Bismarck State College and a licensed contractor. Bismarck State College understands that all seven members must be present during the initial review. Bismarck State College did have all seven members present, including a registered engineer and registered architect during the interviews and final decision when selecting the CMAR. Bismarck State College has reviewed the selection process and will adhere to ensure compliance for construction projects. Minot State University: Minot State agrees with the audit recommendation in that not all the proper steps were completed in the procurement of architect and Construction Management at Risk (CMaR) services and will ensure proper procedures are followed going forward. Upon review, Minot State is confident that all Hartnett Hall remodel project expenses are appropriate, allowable, and allocable to the project. University of North Dakota: Agree. The University of North Dakota's solicitation templates for A/E and CMAR have been moved to an electronic system effective 2023, and our templates were updated with the correct proposal criteria at that time. Contact Person: Bismarck State College: Sonya Koble – Chief Financial Officer Minot State University: Krista Lambrecht, VP for Administration & Finance University of North Dakota: Tom Scrivener, CPO Anticipated Completion Date: Bismarck State College: September 2024 Minot State University: Immediately University of North Dakota: Completed.

View Audit 346994 Questioned Costs: $1

Finding 529060 (2024-008)

Significant Deficiency 2024

State of North Dakota

ND

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

Department of Health and Human Services Response/Corrective Action Plan The Department of Health and Human Services disagrees with the finding. The federal regulations do not explicitly mandate the separation of duties between employees conducting audits and those processing claims. While 42 CFR 456...

Department of Health and Human Services Response/Corrective Action Plan The Department of Health and Human Services disagrees with the finding. The federal regulations do not explicitly mandate the separation of duties between employees conducting audits and those processing claims. While 42 CFR 456.2 requires Medicaid agencies to implement a surveillance and utilization control program, it does not specifically require the segregation of these roles. The regulation promotes control measures but does not mandate a distinct separation of duties. Based on this, we do not support this recommendation, as it exceeds the requirements outlined in the applicable federal rules. HHS remains committed to maintaining strong internal controls and believe our current structure aligns with regulatory expectations. Contact Person: Sarah Aker, Medicaid Executive Director Krista Fremming, Assistant Director Anticipated Completion Date: N/A

View Audit 346994

Finding 529057 (2024-010)

Significant Deficiency 2024

State of North Dakota

ND

Questioned Costs Student Financial Aid Matching / Level of Effort / Earmarking

Department of Health and Human Services Response/Corrective Action Plan The Department of Health and Human Services agrees with the recommendation. HHS has begun the process of recoupment and will work to receive full repayment, to date the balance remaining was $5,000 and a payment plan has been...

Department of Health and Human Services Response/Corrective Action Plan The Department of Health and Human Services agrees with the recommendation. HHS has begun the process of recoupment and will work to receive full repayment, to date the balance remaining was $5,000 and a payment plan has been sent up to recoup the remaining amount. The Accounts Payable team will collaborate with OMB to implement additional processes within Peoplesoft to verify payment information in the future. Currently, we are working to add display options in the Mass Voucher Approval screen to allow for tallying of the totals of vouchers in range. This addition will enhance the review step to ensure payments are consistent with Program totals for a secondary check before approval of payments are made. Contact Person: Karol Riedman, Assistant CFO Ann Scott, AP Accounting Manager Anticipated Completion Date: 06/30/2025

View Audit 346994 Questioned Costs: $1

Finding 529053 (2024-009)

Significant Deficiency 2024

State of North Dakota

ND

Questioned Costs Eligibility Matching / Level of Effort / Earmarking § 200.302 § 200.303

Department of Health and Human Services Response/Corrective Action Plan The Department of Health and Human Services agrees with the recommendation. During review of audit found two overpayment errors as a result of outdated supporting documents. Refunds have been requested. HHS provides ongoing t...

Department of Health and Human Services Response/Corrective Action Plan The Department of Health and Human Services agrees with the recommendation. During review of audit found two overpayment errors as a result of outdated supporting documents. Refunds have been requested. HHS provides ongoing training with eligibility and supervisory staff regarding document and eligibility requirements with staff. HHS actively monitors application quality and provides ongoing quality control reviews ensuring consistent adherence to best practices. Contact Person: Jessica Thomasson, Executive Policy Director Anticipated Completion Date: October 2024

View Audit 346994 Questioned Costs: $1

Finding 529052 (2024-013)

Significant Deficiency 2024

State of North Dakota

ND

Internal Control / Segregation of Duties Eligibility Matching / Level of Effort / Earmarking § 200.303

Department of Health and Human Services Response/Corrective Action Plan HHS agrees with the recommendation. During a period of high application volume, HHS temporarily bypassed its two-stage review process, assigning supervisors to review cases directly. The audit found no errors in eligibility du...

Department of Health and Human Services Response/Corrective Action Plan HHS agrees with the recommendation. During a period of high application volume, HHS temporarily bypassed its two-stage review process, assigning supervisors to review cases directly. The audit found no errors in eligibility during this time. To address this, HHS updated policies to document exceptions, including thresholds for initiating and ending them, ensuring transparency. Training sessions are being conducted to familiarize staff with these updates, and weekly monitoring of application volumes continues to anticipate surges. Contingency hiring plans and cross-training initiatives are in place to reduce future exceptions. Periodic reviews will ensure compliance, fostering a scalable, accountable process while maintaining high standards during peak periods. These measures ensure consistency and preparedness moving forward. Contact Person: Jessica Thomasson, Executive Policy Director Anticipated Completion Date: August 2024

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