Corrective Action Plans

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The Center recognizes the importance of timely compliance with federal single audit requirements. To address this, in the Spring of 2024, management engaged an outsourced firm specializing in supporting non-profits to provide full-service Controller and CFO support. This firm monitors federal expend...
The Center recognizes the importance of timely compliance with federal single audit requirements. To address this, in the Spring of 2024, management engaged an outsourced firm specializing in supporting non-profits to provide full-service Controller and CFO support. This firm monitors federal expenditures throughout the year, ensuring that thresholds triggering audit requirements are promptly identified. In addition, procedures have been established to track all federal awards and deadlines, with periodic compliance reviews performed by the outsourced team. This oversight will ensure that single audits are conducted when required and that federal regulations are met in a timely and accurate manner.
FA 2024-001 Improve Controls over Expenditures Compliance Requirement: Internal Control Impact: Compliance Impact: Federal Awarding Agency: Pass-Through Entity: Assistance Listing Number and Title: Federal Award Number: Questioned Costs: Activities Allowed or Unallowed Allowable Costs/Cost Principle...
FA 2024-001 Improve Controls over Expenditures Compliance Requirement: Internal Control Impact: Compliance Impact: Federal Awarding Agency: Pass-Through Entity: Assistance Listing Number and Title: Federal Award Number: Questioned Costs: Activities Allowed or Unallowed Allowable Costs/Cost Principles Reporting Material Weakness Material Noncompliance U.S. Department of Education Georgia Department of Education COVID-19 - 84.425D - Elementary and Secondary School Emergency Relief Fund COVID-19 - 84.425U - American Rescue Plan Elementary and Secondary School Emergency Relief Fund S425D210012 (Year: 2021), S425U210012 (Year: 2021) $819,799.49 Description: The policies and procedures of the School District were insufficient to provide adequate internal controls over expenditures as it relates to the Elementary and Secondary School Emergency Relief Fund program. Corrective Action Plans: The Hancock County School District has updated the policies and procedures to ensure that these coding errors do not occur in the future. The updates included but are not limited to: The District has corrected the coding in the general ledger for FY 26 and has implemented additional coding cross-checks to ensure alignment with the approved Con App. The function/object coding has been corrected in the FY 26 budget crosswalk, and coding protocols have been reinforced. Personnel coding has been corrected, and a verification procedure is now in place at the point of hiring and funding assignment. The Federal Program department will meet with the Finance Department to review funding codes prior to submission. Estimated Completion Date: June 30, 2026 Contact Person: Matthias Jones, Finance Director Telephone: 706-444-5775 ext. 125 Email: mjones@hancock.k12.ga.us
2024-001 Supporting Documentation and Approval of Disbursements Contact Person – Erin Metcalf, Finance Director Description of Corrective Action – Since that time, the organization has developed an invoice and payment process. This ensures proper disbursement and approval processes and supporting do...
2024-001 Supporting Documentation and Approval of Disbursements Contact Person – Erin Metcalf, Finance Director Description of Corrective Action – Since that time, the organization has developed an invoice and payment process. This ensures proper disbursement and approval processes and supporting documentation are obtained for expenses incurred. We will ensure that the expenses for the grants are reviewed monthly and will make the correct adjustments on a timely basis to ensure that the funds are approved and paid in accordance with the grant documents. Completion Date – June 30, 2025 Root Cause – New program procedures were not in place
To mitigate further delays in completing our 2025 audit, SERC has discussed amending the agreement with its current auditing firm to conduct the 2025 audit. SERC has also contracted with an external consultant to facilitate the fiscal department's operations while we find a permanent fiscal departme...
To mitigate further delays in completing our 2025 audit, SERC has discussed amending the agreement with its current auditing firm to conduct the 2025 audit. SERC has also contracted with an external consultant to facilitate the fiscal department's operations while we find a permanent fiscal department head.
CORRECTIVE ACTION PLAN February 24, 2026 U.S. Department of Health and Human Services Park DuValle Community Health Center, Inc. respectively submits the following corrective action plan for the year ended December 31, 2024. Name and address of independent public accounting firm: Blue & Co., LLC 265...
CORRECTIVE ACTION PLAN February 24, 2026 U.S. Department of Health and Human Services Park DuValle Community Health Center, Inc. respectively submits the following corrective action plan for the year ended December 31, 2024. Name and address of independent public accounting firm: Blue & Co., LLC 2650 Eastpoint Pkwy., Suite 300 Louisville, Kentucky 40223 Audit period: December 31, 2024. The findings from the schedule of findings and questioned costs for the year ended December 31, 2024, are discussed below. The findings are numbered consistently with the numbers assigned in the Schedule. FINDINGS - FINANCIAL STATEMENT AUDIT 2024-001 Condition: During our audit procedures, we noted that multiple accounts were not properly reconciled as part of close procedures. The result was multiple audit adjustments that totaled a material adjustment to the financial statements. Action: Management will implement policies and procedures by June 30, 2026, to ensure proper reconciliation of trial balance accounts are properly reconciled. FINDINGS – FEDERAL AWARD PROGRAM AUDITS 2024-002 Condition: Sliding fee scale: There were several instances noted where the incorrect sliding fee discount was given to patients based on their verified incomes and household sizes. Action: Management will implement internal control procedures by June 30, 2026, to ensure that sliding fee discounts are properly applied and posted to patient accounts for eligible encounters. If the U.S. Department of Health and Human Services has questions regarding this plan, please call Dr. Swannie Jett, CEO, at (502) 774-4401. Sincerely, Dr. Swannie Jett, Chief Executive Officer Park DuValle Community Health Center, Inc.
Description of Finding: The organization did not complete and submit its Single Audit within the required timeframe due to staff turnover in key financial management positions, resulting in delays in audit coordination and reporting and the timing of commencing the audit. Statement of Concurrence: T...
Description of Finding: The organization did not complete and submit its Single Audit within the required timeframe due to staff turnover in key financial management positions, resulting in delays in audit coordination and reporting and the timing of commencing the audit. Statement of Concurrence: The organization concurs with this finding. Corrective Action: The organization has resolved the underlying cause of this finding by onboarding a Vice President of Finance, who is a Certified Public Accountant (CPA). The VP of Finance is responsible for oversight of financial reporting, compliance with Uniform Guidance (2 CFR Part 200), and coordination of the Single Audit process. Corrective actions implemented include: • Assignment of clear responsibility and accountability for Single Audit compliance to the VP of Finance. • Development of a formal audit timeline and internal milestones to ensure timely audit initiation, completion, and submission. • Strengthening of internal controls over financial reporting and audit documentation. • Ongoing communication and coordination with external auditors to ensure compliance with federal audit requirements. These actions ensure that future Single Audits will be completed and submitted timely in accordance with Uniform Guidance.
Management corrective action: Management recognizes the need to submit its single audit reports to the State Auditor and FAC in accordance with the required deadlines in order to remain compliant with requirements. Management has made Professional Services changes to ensure timely audit compliance m...
Management corrective action: Management recognizes the need to submit its single audit reports to the State Auditor and FAC in accordance with the required deadlines in order to remain compliant with requirements. Management has made Professional Services changes to ensure timely audit compliance moving forward.Expected completion date: 3/31/2027 Party Responsible: Joe Don Dunham, Director of Finance/,City Treasurer Contact Information: (918) 224-3040 jdd@sapulpaok.gov
Finding 2024-002 – Career and Technical Education - Perkins CFDA No. 84.048 Department of Education Massachusetts Department of Elementary and Secondary Education Other Matters Related to Internal Control over Compliance of the Major Program Criteria: Where employees work solely or partially on a si...
Finding 2024-002 – Career and Technical Education - Perkins CFDA No. 84.048 Department of Education Massachusetts Department of Elementary and Secondary Education Other Matters Related to Internal Control over Compliance of the Major Program Criteria: Where employees work solely or partially on a single Federal award or cost objective, their salaries or wages must be supported by periodic certification that the employee worked solely on these programs for the period covered by the programs. The certifications should be prepared at least semi-annually, and should be signed by the employee or supervisory official having first-hand knowledge of the work performed by the employee. Condition: During our test of controls over compliance with time and effort certifications the School was not able to provide evidence that required semi-annual certifications of time and effort for those employees whose time was wholly spent on these programs was performed in a timely manner as required by Uniform Guidance. Questioned Costs: None Context: During our test of payroll transactions of the FY 2024 Perkins and FY 23 Perkins grants it was noted that the time and effort certifications were not completed in a timely manner as set forth by Uniform Guidance. Effect: The Assabet Valley Regional Technical High School was not in compliance with the time and effort certification requirements. Cause: Compliance of the past grants were not handled correctly due to employee staffing changes and training. Identification as a Repeat Finding: This is not a repeat finding Recommendation: We recommend the Assabet Valley Regional Technical High School follow procedures to ensure that semi-annual certifications are prepared and signed by either the employees or supervisory official having first-hand knowledge of the work performed by the employees in a timely manner in order to comply with the time and effort certification requirement. Responsible for Corrective Plan: Sabrina Howley Estimated Completion Date: 11/5/25 On going Action Taken: Grants compliance will be strictly enforced per DESE and Federal regulations. This includes payroll, time and effort sheets.
Finding 2024-001 – Career and Technical Education - Perkins CFDA No. 84.048 Department of Education Massachusetts Department of Elementary and Secondary Education Other Matters Related to Internal Control over Compliance of the Major Program Criteria: Massachusetts Department of Education and Second...
Finding 2024-001 – Career and Technical Education - Perkins CFDA No. 84.048 Department of Education Massachusetts Department of Elementary and Secondary Education Other Matters Related to Internal Control over Compliance of the Major Program Criteria: Massachusetts Department of Education and Secondary Education Requires: • Final expenditure reports are required to be filed within 60 days of the grant period ending date. Condition: During our test of controls over compliance it was noted that the Student Organization grant, 21st Century grant, & Equitable Access grant final expense reports were not filed within 60 days of the grant period ending as required by Massachusetts Department of Education and Secondary Education. Questioned Costs: None Context: During our test of the Final Expenditure Reports it was noted that the Student Organization, 21st Century grant, & Equitable Access Grant final expense reports were not filed within 60 days of the grant period ending as required by Massachusetts Department of Education and Secondary Education. Effect: Assabet Valley Regional Technical High School was not in compliance with the Final Expenditure Reporting requirement date as set forth by the Massachusetts Department of Education and Secondary Education. Cause: In June 2023 Assabet’s staff member handling grants retired. They only came in once a week to help with grants until new staff could be hired. In October of 2023 our current grant manager was hired and had very limited training on grants before the retiree quit fully in January 2024. Due to this, training in Edgrants was extremely limited and the FY23 grants mentioned where not handled correctly. Identification as a Repeat Finding: This is not a repeat finding. Recommendation: We recommend the Assabet Valley Regional Technical High School follow procedures to ensure that the Final Expenditure Reports are filed within the 60 days of the grant period ending date as required by the Massachusetts Department of Education and Secondary Education. Responsible for Corrective Plan: Sabrina Howley Estimated Completion Date: 11/5/25, Ongoing Action Taken: In June 2023 Assabet’s staff member handling grants retired. They only came in once a week to help with grants until new staff could be hired. In October of 2023 our current grant manager was hired and had very limited training on grants before the retiree quit fully in January 2024. Due to this, training in Edgrants was extremely limited and the FY23 grants mentioned where not handled correctly. All grants since FY24/25 in Gem$ have been managed correctly with processing the FER (no longer FR-1) within the 60 days of the grant period. This will be an ongoing every year for all Federal and State Grants.
Finding 2024-008 – Education Stabilization Fund – ESSER III AL No. 84.425U Department of Education Massachusetts Department of Elementary and Secondary Education Noncompliance and Material Weakness Related to Internal Control over Compliance of the Major Program Condition: Upon review of the Assabet...
Finding 2024-008 – Education Stabilization Fund – ESSER III AL No. 84.425U Department of Education Massachusetts Department of Elementary and Secondary Education Noncompliance and Material Weakness Related to Internal Control over Compliance of the Major Program Condition: Upon review of the Assabet Valley Regional Technical High School’s final expense report filed with the Massachusetts Department of Elementary and Secondary Education it was noted that the report did not agree with the School’s accounting ledgers and final amended budget. Criteria: Massachusetts Department of Education and Secondary Education Requires: • Final expenditure reports are required to be filed within 60 days of the grant period ending date and accounting ledgers. Context: The Final expense report for the ESSER III grant does not agree with the general ledger actual expenses and the final amended budget for ESSER III. Effect: Assabet Valley Regional Technical High School was not in compliance with the Final Expenditure Reporting requirement as set forth by the Massachusetts Department of Education and Secondary Education. Questioned Costs: N/A Cause: In June 2023 Assabet’s staff member handling grants retired. They only came in once a week to help with grants until new staff could be hired. In October of 2023 our current grant manager was hired and had very limited training on grants before the retiree quit fully in January 2024. Due to this, training in Edgrants was extremely limited and the FY23 grants mentioned where not handled correctly. Identification as a Repeat Finding: This is not a repeat finding. Recommendation: We recommend the Assabet Valley Regional Technical High School follow procedures to ensure that the Final Expenditure Reports are in agreement with the School’s general ledger total expenses. Responsible for Corrective Plan: Sabrina Howley Estimated Completion Date: 11/5/25, ongoing Action Taken: In June 2023 Assabet’s staff member handling grants retired. They only came in once a week to help with grants until new staff could be hired. In October of 2023 our current grant manager was hired and had very limited training on grants before the retiree quit fully in January 2024. Due to this, training in Edgrants was extremely limited and the FY23 grants mentioned where not handled correctly. Esser III had been amended multiple times, by the time the FR-1 was completed the grant manager quickly went through not realizing it had to match funds and wasn’t automatically changed. Since that time Esser III has been amended and the FR-1 has been competed fully.
Finding 2024-006 – Special Education Cluster – AL No. 84.027 Department of Education Massachusetts Department of Elementary and Secondary Education Noncompliance and Material Weakness Related to Internal Control over Compliance of the Major Program Condition: Upon review of the Assabet Valley Region...
Finding 2024-006 – Special Education Cluster – AL No. 84.027 Department of Education Massachusetts Department of Elementary and Secondary Education Noncompliance and Material Weakness Related to Internal Control over Compliance of the Major Program Condition: Upon review of the Assabet Valley Regional Technical High School’s final expense report filed with the Massachusetts Department of Elementary and Secondary Education it was noted that the reports did not agree with the School’s general ledgers. Criteria: Massachusetts Department of Education and Secondary Education Requires: • Final expenditure reports are required to be filed within 60 days of the grant period ending date and agree with general ledgers. Context: The Final expense report for the FY 2023 Special Education PL94-142 reported that the grant was fully spent, however the grant was not fully spent per the School’s general ledger. Effect: Assabet Valley Regional Technical High School was not in compliance with the Final Expenditure Reporting requirement as set forth by the Massachusetts Department of Education and Secondary Education as it did not agree to the Schools accounting ledgers. Questioned Costs: N/A Cause: In June 2023 Assabet’s staff member handling grants retired. They only came in once a week to help with grants until new staff could be hired. In October of 2023 our current grant manager was hired and had very limited training on grants before the retiree quit fully in January 2024. Due to this, training in Edgrants was extremely limited and the FY23 grants mentioned where not handled correctly. Identification as a Repeat Finding: This is not a repeat finding. Recommendation: We recommend the Assabet Valley Regional Technical High School follow procedures to ensure that the Final Expenditure Reports are in agreement with the School’s general ledger. Responsible for Corrective Plan: Sabrina Howley Estimated Completion Date: 11/5/25, Ongoing Action Taken: In June 2023 Assabet’s staff member handling grants retired. They only came in once a week to help with grants until new staff could be hired. In October of 2023 our current grant manager was hired and had very limited training on grants before the retiree quit fully in January 2024. Due to this, training in Edgrants was extremely limited and the FY23 grants mentioned where not handled correctly. All grants since FY24/25 in Gem$ have been managed correctly with processing the FER (no longer FR-1) within the 60 days of the grant period. This will be an ongoing every year for all Federal and State Grants. FER’s will be completed once the grant is fully spent according to our general ledger.
The Organization hired a new grant and partnership specialist. This specialist attaches all relevant support for expenditure to the internal monthly grant reporting and ensures that all expenditures are fully supported by appropriate detail. This detail is on a shared drive with finance and is revie...
The Organization hired a new grant and partnership specialist. This specialist attaches all relevant support for expenditure to the internal monthly grant reporting and ensures that all expenditures are fully supported by appropriate detail. This detail is on a shared drive with finance and is reviewed by the vice president of finance.
Audit Response to Finding 2024-002 to Uniform Guidance Audit - Advanced Drawdown Acknowledgement and Concurrence: Management acknowledges that two out of the six drawdowns selected for testing within the Research & Development (R&D) cluster were requested prior to the actual incurrence of the underl...
Audit Response to Finding 2024-002 to Uniform Guidance Audit - Advanced Drawdown Acknowledgement and Concurrence: Management acknowledges that two out of the six drawdowns selected for testing within the Research & Development (R&D) cluster were requested prior to the actual incurrence of the underlying expenditures. The University identified that the noncompliance was timing related only. A full year of stipend expenses were advance recorded in the general ledger and triggered the drawdown process prematurely. The University determined that this was an isolated incident unique to only one of the federal awards, and this issue has subsequently been corrected. While the grant was ultimately in a cumulative underdrawn position by year-end, we recognize that the reimbursement method under Uniform Guidance requires expenditures to be paid or incurred prior to the request for federal funds. Corrective Action Plan: • Enhanced Management Review: The University Controller’s Office will perform a "secondary review" of the GL date of the underlying expenditure versus the drawdown request date to ensure no "future-dated" or "anticipated" costs are included. • AP Policy Change: The University has revised its stipend processing workflow to ensure that payments are scheduled according to the service period rather than the entry date, and no longer will 12 months of stipend payments be entered in AP at one time. Responsible Party: Joseph J. Piccirilli, Chief Accounting Officer and Controller Completion Date: March 2026
Management will work with the Board of Directors to establish a formal board meeting calendar with meetings scheduled at least quarterly to ensure sufficient oversight and fiduciary responsibilities are fulfilled.
Management will work with the Board of Directors to establish a formal board meeting calendar with meetings scheduled at least quarterly to ensure sufficient oversight and fiduciary responsibilities are fulfilled.
Management will work with the Board of Directors to establish a formal board meeting calendar with meetings scheduled at least quarterly to ensure sufficient oversight and fiduciary responsibilities are fulfilled.
Management will work with the Board of Directors to establish a formal board meeting calendar with meetings scheduled at least quarterly to ensure sufficient oversight and fiduciary responsibilities are fulfilled.
In response to a finding identified in the City of Camden Redevelopment Agency’s Financial Statements and Independent Auditors’ Report for the year ending December 31, 2024 prepared by CRA. The CAP is pending Board approval. Finding Number: 2024-001: Auditing Procedures and Scope Criteria Management...
In response to a finding identified in the City of Camden Redevelopment Agency’s Financial Statements and Independent Auditors’ Report for the year ending December 31, 2024 prepared by CRA. The CAP is pending Board approval. Finding Number: 2024-001: Auditing Procedures and Scope Criteria Management is responsible for timely and accurate financial reporting and submission of the audit report to the State of New Jersey and submission of the single audit report and data collection form to the federal audit clearinghouse within nine months of year end as per 2 CFR Part 200.512. Condition Identified: Delays and inaccuracies in reconciliations, adjustments, and year-end close procedures, resulting in the late completion of the annual audit and untimely filing of the single audit data collection form. These issues were compounded by deficiencies in internal controls over financial reporting, including a lack of review for budget to actual reporting—where budget activity was recorded as transactional rather than following a structured budget process—insufficient oversight of the cash to accrual process, inadequate review of general journal adjustments, and weak controls over grant reporting, including incomplete reconciliation of grant expenses to the general ledger. Collectively, these deficiencies increase the risk of material misstatements, non-compliance with grantor requirements, and limit management’s ability to make informed financial decisions. Corrective Action Plan • Implementation of a Year-End Close Calendar: Develop and adopt a comprehensive year-end close calendar with specific deadlines and responsibilities for each required task, including reconciliations, adjustments, and audit preparation. This calendar will be communicated to all relevant personnel at least 60 days before fiscal year-end. • Monthly Reconciliation Schedule: Enforce a standardized monthly reconciliation process for all key accounts (e.g., cash, receivables, payables, grants), to ensure that year-end tasks do not accumulate and can be completed efficiently and accurately. • Staff Training and Cross-Training: Provide targeted training for accounting and finance staff on proper reconciliation techniques, closing procedures, and audit requirements. Cross-training will also be provided to ensure continuity and reduce reliance on single individuals. • Audit Preparation Checklist: Create and utilize an internal audit prep checklist that is reviewed quarterly and finalized before year-end. This will ensure all necessary reports, schedules, and documentation are prepared well in advance of the auditor’s arrival. • Automation and Software Improvements: Evaluate and implement improvements in accounting software or systems to automate reconciliation reports and reduce the risk of manual errors. Posting of activity on an accrual basis at time of transaction with necessary adjustments for required cash postings resulting from accounting system adjusted to accrual basis and the entries reviewed and approved timely by finance staff segregated from the entry preparer. • Ongoing Monitoring: The Finance Director will perform monthly reviews of account reconciliations and tie out to monthly and quarterly grant reporting to assess timeliness and accuracy. Issues will be flagged early for resolution. • Consult with finance software provider to better utilize the module or switch to new software platform. • A Senior Accountant was hired in April of 2025. • While completing the 2024 audit, we have updated protocols to year end procedures as well as standard operating procedures. Responsible Person(s): Executive Director, Finance Director, and Senior Accountant Anticipated Completion Date: All corrective measures not already in progress will be implemented in February 2026 in preparation for the 2025 year-end close procedures and 2026 daily transaction activity.
Late Reporting (Significant Deficiency) Individuals Responsible for Corrective Action Plan: BGCA State Alliances Fiscal Team (Shelby Mahoney) in partnership with Ohio Alliance staff Corrective Action: Management will implement procedures to ensure timely completion and submission of future single au...
Late Reporting (Significant Deficiency) Individuals Responsible for Corrective Action Plan: BGCA State Alliances Fiscal Team (Shelby Mahoney) in partnership with Ohio Alliance staff Corrective Action: Management will implement procedures to ensure timely completion and submission of future single audits in compliance with Uniform Guidance reporting deadlines. Corrective actions include: - Developing a formal annual audit timeline with clearly defined internal deadlines for financial statement preparation, SEFA completion, auditor fieldwork, and submission to the Federal Audit Clearinghouse. - Assigning responsibility for monitoring audit progress and compliance deadlines to designated management personnel. - Holding periodic status meetings with auditors to proactively address issues that could delay completion. Anticipated Completion Date: June 30, 2026
Understated SEFA (Material Weakness) Individuals Responsible for Corrective Action Plan: BGCA State Alliances Fiscal Team (Shelby Mahoney) Corrective Action: Management will enhance controls over the preparation and review of the Schedule of Expenditures of Federal Awards (SEFA) to ensure completene...
Understated SEFA (Material Weakness) Individuals Responsible for Corrective Action Plan: BGCA State Alliances Fiscal Team (Shelby Mahoney) Corrective Action: Management will enhance controls over the preparation and review of the Schedule of Expenditures of Federal Awards (SEFA) to ensure completeness and accuracy in accordance with Uniform Guidance (2 CFR Part 200). Corrective actions include: - Establishing a formal secondary review and approval process by management prior to submission to the auditors. - Maintaining detailed supporting schedules that reconcile the SEFA to the general ledger and grant documentation. Anticipated Completion Date: June 30, 2026
Implementation of plan of action - Management will review control policies to ensure that approvals of purchases are documented prior to disbursement of federal funds. Implementation date - Anticipated completion February 28, 2026. Persons responsible for the implementation - The Board of Directors ...
Implementation of plan of action - Management will review control policies to ensure that approvals of purchases are documented prior to disbursement of federal funds. Implementation date - Anticipated completion February 28, 2026. Persons responsible for the implementation - The Board of Directors and Head of School.
The Center is in process of implementing monthly close procedures with their third-party bookkeeper. Procedures will include monthly monitoring and supervisory review of reconciliations.
The Center is in process of implementing monthly close procedures with their third-party bookkeeper. Procedures will include monthly monitoring and supervisory review of reconciliations.
The Center is working with their third-party bookkeeper to ensure all federal funds are reported properly in their general ledger system in order to determine if a federal single audit is required.
The Center is working with their third-party bookkeeper to ensure all federal funds are reported properly in their general ledger system in order to determine if a federal single audit is required.
2024-002 CORONAVIRUS STATE AND LOCAL FISCAL RECOVERY FUNDS – IMPROPER REPORTING OF EXPENDITURES & OBLIGATIONS – ALN 21.027 – MATERIAL WEAKNESS & MATERIAL NON-COMPLIANCE Condition: Mountrail County did not properly report total expenditures and obligations on the March 31, 2024, Project and Expenditu...
2024-002 CORONAVIRUS STATE AND LOCAL FISCAL RECOVERY FUNDS – IMPROPER REPORTING OF EXPENDITURES & OBLIGATIONS – ALN 21.027 – MATERIAL WEAKNESS & MATERIAL NON-COMPLIANCE Condition: Mountrail County did not properly report total expenditures and obligations on the March 31, 2024, Project and Expenditure Report for the Coronavirus State and Local Fiscal Recovery Funds program. The total reported cumulative and current period expenses were overstated by $516,186 and $500,897, respectively, and the total cumulative and current period obligations were overstated by $49,056 and $144,401, respectively. Management’s Response: We Agree, we will ensure obligations and expenditures for the SLRF grant are properly stated in future periods. Anticipated Completion Date: FY 2025
Recommendation: We recommend that management implement formal procedures to monitor and track net assets and donor-imposed restrictions on an ongoing basis. This could include maintaining detailed sub-ledgers for restricted funds, reconciling net asset balances regularly, and clearly documenting the...
Recommendation: We recommend that management implement formal procedures to monitor and track net assets and donor-imposed restrictions on an ongoing basis. This could include maintaining detailed sub-ledgers for restricted funds, reconciling net asset balances regularly, and clearly documenting the purpose and restrictions of all contributions. Regular tracking and reconciliation will strengthen internal controls, ensure proper classification of net assets in accordance with U.S. GAAP, and support accurate financial reporting throughout the year. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: The Organization has contracted with Ascend Nonprofit Solutions to provide outsourced financial accounting services beginning November 1, 2025, through Ascend’s Finance Shared Services model. Ascend will prepare a listing of Net Asset Restrictions and include an updated listing as part of the monthly financial reporting package. Any complex or non-routine transactions will be reviewed by management with Ascend prior to the preparation of this report. This report will be reviewed by management and the board of directors. Name(s) of the contact person(s) responsible for corrective action: Chris Budnick, Executive Director Planned completion date for corrective action plan: March 2026
Recommendation: We recommend that management implement formal procedures to monitor and track net assets and donor-imposed restrictions on an ongoing basis. This could include maintaining detailed sub-ledgers for restricted funds, reconciling net asset balances regularly, and clearly documenting the...
Recommendation: We recommend that management implement formal procedures to monitor and track net assets and donor-imposed restrictions on an ongoing basis. This could include maintaining detailed sub-ledgers for restricted funds, reconciling net asset balances regularly, and clearly documenting the purpose and restrictions of all contributions. Regular tracking and reconciliation will strengthen internal controls, ensure proper classification of net assets in accordance with U.S. GAAP, and support accurate financial reporting throughout the year. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: The Organization has contracted with Ascend Nonprofit Solutions to provide outsourced financial accounting services beginning November 1, 2025, through Ascend’s Finance Shared Services model. Ascend will prepare a listing of Net Asset Restrictions and include an updated listing as part of the monthly financial reporting package. Any complex or non-routine transactions will be reviewed by management with Ascend prior to the preparation of this report. This report will be reviewed by management and the board of directors. Name(s) of the contact person(s) responsible for corrective action: Chris Budnick, Executive Director Planned completion date for corrective action plan: March 2026
2024-001 Internal Controls over Financial Reporting. Recommendation: The Organization has already taken an important step by engaging a contract accountant to assist with cleaning up the accounting records, reconciling financial information, and recording transactions in accordance with U.S. GAAP. A...
2024-001 Internal Controls over Financial Reporting. Recommendation: The Organization has already taken an important step by engaging a contract accountant to assist with cleaning up the accounting records, reconciling financial information, and recording transactions in accordance with U.S. GAAP. As the Organization transitions these responsibilities to the new financial staff member, we recommend providing thorough training, clear expectations, and appropriate oversight to ensure continuity and consistency in accounting and financial reporting. Establishing structured guidance and ongoing monitoring will help strengthen internal controls and promote a smooth and sustainable transition in the finance function. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: The Organization has contracted with Ascend Nonprofit Solutions to provide outsourced financial accounting services beginning November 1, 2025, through Ascend’s Finance Shared Services model. Certified Public Accountants from Ascend Nonprofit Solutions will review and provide guidance to Healing Transitions, Inc. regarding their internal control structure, adding an extra layer of expertise and credibility to financial statement reporting. Financial statements will be accounted for in accordance with GAAP, monthly, providing clear reporting for financial management, oversight, and governance. These reports will be distributed to management and the board of directors. Name(s) of the contact person(s) responsible for corrective action: Chris Budnick, Executive Director Planned completion date for corrective action plan: January 2026
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