Corrective Action Plans

Finding 522006 (2024-001)

Material Weakness 2024

University of Kansas School of Medicine - Wichita Mpa

KS

Internal Control / Segregation of Duties Eligibility Reporting

In response to Finding 2024-001 Segregation of Duties/ Review Procedures identified in the fiscal year 2024 audit, the University of Kansas School of Medicine-Wichita Medical Practice Association has modified the HOPW A, housing opportunities for persons with AIDS, procedures for verifying the parti...

In response to Finding 2024-001 Segregation of Duties/ Review Procedures identified in the fiscal year 2024 audit, the University of Kansas School of Medicine-Wichita Medical Practice Association has modified the HOPW A, housing opportunities for persons with AIDS, procedures for verifying the participant's eligibility, rent and utility assistance calculations for accuracy assurance. Immediately, the program has modified the KCTH checklist for housing assistance/support services to include a verification line for both the "intake" and the "verified" for each participant file. To manage the increasing workload of the growing program, a new housing coordinator position is in the recruitment stage. This position will ensure there is an available FTE to complete the verification process timely and assist the Ryan White case managers with client housing needs. Sheila Norris, Director of Finance, will serve as the contact person for this corrective action plan. We hope these changes will sufficiently address Finding 2024-001 Segregation of Duties/ Review Procedures.

View Audit 341251

Finding 521529 (2024-001)

Significant Deficiency 2024

Southern Wesleyan University

SC

Student Financial Aid Internal Control / Segregation of Duties Reporting

Untimely and Inaccurate Returns of Title IV Funds (R2T4) Planned Corrective Action: A review of the student withdrawal process from Registrar notifications to assignment of financial aid reviews and Return of Title IV calculations will be conducted and any needed changes implemented to ensure timel...

Untimely and Inaccurate Returns of Title IV Funds (R2T4) Planned Corrective Action: A review of the student withdrawal process from Registrar notifications to assignment of financial aid reviews and Return of Title IV calculations will be conducted and any needed changes implemented to ensure timely processing. As there are currently only four FA personnel, the Director will continue to process the R2T4 notifications and be held responsible for any late processing. Back-up training for the Associate Director will also be implemented to ensure continuity of coverage in the event the Director is not available to cover this responsibility. Person Responsible for Corrective Action Plan: Thomas Valles, Director of Financial Aid Anticipated Date of Completion: April 30, 2025

View Audit 341204

Finding 521457 (2024-005)

Significant Deficiency 2024

Langston University

OK

Student Financial Aid Significant Deficiency Matching / Level of Effort / Earmarking § 200.303

Recommendation: We recommend that the University review policies and procedures related to R2T4 calculations to ensure calculations are performed correctly and timely. We also recommend the University implement formal review procedures to document the Return of Title IV calculations are being perfor...

Recommendation: We recommend that the University review policies and procedures related to R2T4 calculations to ensure calculations are performed correctly and timely. We also recommend the University implement formal review procedures to document the Return of Title IV calculations are being performed to minimize the likelihood that errors may go undetected and not be corrected in a timely manner. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Questioned Costs: N/A Action taken in response to finding: This is a repeat finding that was first presented to the University in conjunction with the release of the 2022 audit report in November 2023. Procedures for review and return of Title IV funds have been updated to ensure refunds are returned in a timely manner. Return of Title IV calculations are being documented and reviewed by a party independent of the preparer to minimize the likelihood that errors go undetected and/or not be corrected in a timely manner. Name(s) of the contact person(s) responsible for the corrective action: Mr. Heath Burge, Assistant Vice President for Strategic Enrollment and Advising Services and Ms. Nacasaw Coppage, Interim Director, Office of Financial Aid. Planned completion date for corrective action plan: December 2024

View Audit 341200

Finding 521249 (2024-001)

Significant Deficiency 2024

Langston University

OK

Subrecipient Monitoring Matching / Level of Effort / Earmarking Internal Control / Segregation of Duties § 200.303 § 200.305

Recommendation: We recommend that the University review and update current procedures to ensure subrecipient payments are paid timely. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Questioned Costs: N/A Action taken in response to finding: This is a...

Recommendation: We recommend that the University review and update current procedures to ensure subrecipient payments are paid timely. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Questioned Costs: N/A Action taken in response to finding: This is a repeat finding that was first presented to the University in conjunction with the release of the 2023 audit report in May 2024. The 2023 audit was completed after substantially all of Fiscal Year 2024 had elapsed, so there was not adequate time for the University to fully implement corrective action. The University is strengthening its accounts payable processes and sign-off approvals to help ensure reimbursements to subrecipients are paid timely. Principal investigators and designated administrative personnel within academic departments will be reminded of the need to initiate payments to subrecipients timely. Name(s) of the contact person(s) responsible for the corrective action: Mr. Robert Dixon, Director, Grants and Contracts Fiscal Administration at Oklahoma State University and Mr. Chris Kuwitzky, Vice President for Fiscal and Administrative Affairs. Planned completion date for corrective action plan: March 2025

View Audit 341200

Finding 521239 (2024-001)

Significant Deficiency 2024

School City of Whiting

IN

School Nutrition Programs Internal Control / Segregation of Duties Eligibility § 200.303

FINDING 2024-001 Child Nutrition Cluster - Eligibility School Breakfast program, National School Lunch Program, Eligibility, Significant Deficiency Contact Person Responsible for Corrective Action: Contact Phone Number: Kim Pusateri 219-659-0656 ext. 157 Views of Responsible Official: We concur with...

FINDING 2024-001 Child Nutrition Cluster - Eligibility School Breakfast program, National School Lunch Program, Eligibility, Significant Deficiency Contact Person Responsible for Corrective Action: Contact Phone Number: Kim Pusateri 219-659-0656 ext. 157 Views of Responsible Official: We concur with the finding. Internal Controls and procedures will be implemented to ensure accurate eligibility determinations for free and reduced-price meals by implementing internal controls, segregation of duties, and documented reviews. Description of Corrective Action Plan: Applications (eligibility): • Maintain records of all reviews for audit purposes. o Take a picture of the eligibility grid for review and date it. o Require two staff members (Director of Food Services and designee) to sign off on the review. Direct Certifications • The direct certification report will be run monthly and uploaded into the school point-of-sale system. A copy of the report will be saved, printed and checked that it was uploaded properly. A copy of the student's application and history will be printed and stapled to the direct cert report to verify that the change was made. It will be dated and initialed and saved in a folder. Anticipated Completion Date: Immediately

View Audit 341181

Finding 521238 (2024-001)

None 2024

Southeast Kansas Regional Planning Commission

KS

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

Southeast Kansas Regional Planning Commission Corrective Action Plan January 30, 2025 Cognizant or Oversight Agency for Audit Southeast Kansas Regional Planning Commission respectfully submits the following corrective action plan for the year ended June 30, 2024. Name and address of independent publ...

Southeast Kansas Regional Planning Commission Corrective Action Plan January 30, 2025 Cognizant or Oversight Agency for Audit Southeast Kansas Regional Planning Commission respectfully submits the following corrective action plan for the year ended June 30, 2024. Name and address of independent public accounting firm: Jarred, Gilmore & Phillips, PA, P.O. Box 779, 1815 S Santa Fe, Chanute, Kansas 66720. Audit period: Year ended June 30, 2024 The findings from the January 30, 2025 schedule of findings and questioned costs are discussed below. The findings are numbered consistently with the numbers assigned in the schedule. Finding 2024-001 –Reporting Condition: During our testing of reporting, we tested the annual report to ensure numbers were accurate and supported by amounts in the general ledger. During this testing, we noted a variance between what was reported and what the actual accurate amounts were. Recommendation: Procedures should be implemented to ensure that interest income is appropriately classified based on the funds that are earning those amounts and that late fees are accurately reflected as well. Action Taken: We are in agreement with the recommendation and the Commission has worked on ensuring that amounts are accurately reflected in the proper classes and accounts. Anticipated Complete Date: January 31, 2025 Should the Oversight Agency for Audit have questions regarding this plan, please contact Jonni Duncan, Finance Manager, at (620) 431-0080. Sincerely Southeast Kansas Regional Planning Commission Southeast Kansas Regional Planning Commission

View Audit 341180

Finding 521204 (2024-001)

Material Weakness 2024

Bremen Public Schools

IN

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

Finding 2024-001 Subject: Education Stabilization Fund – Equipment and Real Property Management Federal Agency: Department of Education Federal Program: COVID-19 – Education Stabilization Fund Assistance Listing Number: 84.425D, 84.425U Federal Award Numbers: S425D210013, S425U200013 Pass-Through En...

Finding 2024-001 Subject: Education Stabilization Fund – Equipment and Real Property Management Federal Agency: Department of Education Federal Program: COVID-19 – Education Stabilization Fund Assistance Listing Number: 84.425D, 84.425U Federal Award Numbers: S425D210013, S425U200013 Pass-Through Entity: Indiana Department of Education Compliance Requirement: Equipment and Real Property Management Audit Findings: Material Weakness Condition: An effective internal control system was not in place at the School Corporation in order to ensure compliance with requirements related to the grant agreement and the Equipment and Real Property Management Requirements compliance requirements. Context: The School Corporation expended $944,437 on building renovations during the period under audit which was charged to the ESSER II (84.425D) and ESSER III (84.425U) grant awards. It was noted these capital asset acquisitions were not reported on the capital asset listing for the School Corporation as of June 30, 2024. The School Corporation had also not performed a complete physical inventory of capital assets during the audit period. Views of Responsible Official: Management agrees with the finding and will take the following corrective action. Description of Corrective Action Plan: Stephanie Pittman, Treasurer will add the value of the building renovations to the capital asset listing as of June 30, 2024 and amend the annual financial report for the 2023- 2024 school year. Stephanie Pittman, Treasurer will also perform a complete physical inventory at the end of the 2024-2025 school year and develop a schedule for regular inventories at least every other year. Anticipated Completion Date: The amendment to the capital asset listing and annual financial report will be completed by February 15, 2025. The physical inventory will be completed by August 31, 2025.

View Audit 341165

Finding 521185 (2024-006)

Significant Deficiency 2024

Domestic Violence Crisis Center

ND

Cash Management Internal Control / Segregation of Duties

Contact Person: Kathryn Cowart, Board President Corrective Action Plan: Domestic Violence Crisis Center, Inc.’s Office Manager will initial all invoices to signal that they have been reviewed and approved for payment. Completion Date: The Center implemented an internal control in January 2025 to e...

Contact Person: Kathryn Cowart, Board President Corrective Action Plan: Domestic Violence Crisis Center, Inc.’s Office Manager will initial all invoices to signal that they have been reviewed and approved for payment. Completion Date: The Center implemented an internal control in January 2025 to ensure all invoices are reviewed and approved by management.

View Audit 341140

Finding 521184 (2024-005)

Significant Deficiency 2024

Domestic Violence Crisis Center

ND

Cash Management Internal Control / Segregation of Duties

Contact Person: Kathryn Cowart, Board President Corrective Action Plan: Domestic Violence Crisis Center, Inc. will review their process for reviewing and approving reimbursement requests. Completion Date: The Center implemented an internal control in October 2023 to ensure all reimbursement reques...

Contact Person: Kathryn Cowart, Board President Corrective Action Plan: Domestic Violence Crisis Center, Inc. will review their process for reviewing and approving reimbursement requests. Completion Date: The Center implemented an internal control in October 2023 to ensure all reimbursement requests are reviewed and approved by management.

View Audit 341140

Finding 521183 (2024-004)

Significant Deficiency 2024

Domestic Violence Crisis Center

ND

Cash Management Internal Control / Segregation of Duties

Contact Person: Kathryn Cowart, Board President Corrective Action Plan: Domestic Violence Crisis Center, Inc.’s Office Manager will initial all invoices to signal that they have been reviewed and approved for payment. Completion Date: The Center implemented an internal control in January 2025 to e...

Contact Person: Kathryn Cowart, Board President Corrective Action Plan: Domestic Violence Crisis Center, Inc.’s Office Manager will initial all invoices to signal that they have been reviewed and approved for payment. Completion Date: The Center implemented an internal control in January 2025 to ensure all invoices are reviewed and approved by management.

View Audit 341140

Finding 521180 (2024-002)

Significant Deficiency 2024

Natrona County School District No. 1

WY

Allowable Costs / Cost Principles Reporting Internal Control / Segregation of Duties § 200.303

The District will adopt a general ledger account structure that is directly correlated to the Wyoming Department of Education’s Accounting Manual.

View Audit 341125

Finding 521157 (2024-003)

Significant Deficiency 2024

Hamilton Health Center, Inc.

PA

Questioned Costs Cash Management Allowable Costs / Cost Principles

Condition The Organization's negotiated indirect cost rate agreement includes a provisional rate of 17.75% of direct costs for the period April 1, 2021 through March 21, 2024. The Organization charged indirect costs to its American Rescue Plan supplemental health center funding using a rate of 18.8...

Condition The Organization's negotiated indirect cost rate agreement includes a provisional rate of 17.75% of direct costs for the period April 1, 2021 through March 21, 2024. The Organization charged indirect costs to its American Rescue Plan supplemental health center funding using a rate of 18.8% of direct costs for the period April 2023 through June 2023. The 18.8% rate that was used was obtained from an expired indirect cost rate agreement. Corrective Action Plan Corrective Action Planned: The continued use of the expired indirect cost rate was caused by the departure of the CFO who was responsible for reviewing federal grant draw downs. After the CFO left, the controller continued using the expired indirect cost rate but now the new CFO has put in place a system of review the indirect cost rate in effect against all reports before drawing down the grant. Name(s) of Contact Person(s) Responsible for Corrective Action: Frackson Sakala, CFO; Joseph McLaughlin, Controller; and Tran Le, the Assistant Controller. Anticipated Completion Date: This was immediately effected when this error was discovered during the FY2024 audit.

View Audit 341112 Questioned Costs: $1

Finding 521156 (2024-002)

Significant Deficiency 2024

Hamilton Health Center, Inc.

PA

Reporting Internal Control / Segregation of Duties

Condition The Organization was required to submit thirty-five reports during its fiscal year ended March 31, 2024, which comprised six financial reports and twenty-nine performance reports. Two performance reports and three financial reports were not filed timely. Reports that were filed late range...

Condition The Organization was required to submit thirty-five reports during its fiscal year ended March 31, 2024, which comprised six financial reports and twenty-nine performance reports. Two performance reports and three financial reports were not filed timely. Reports that were filed late ranged from being 1 day late up to seventeen days late. The Organization was able to demonstrate its attempt to file 4 of the late reports before their respective due dates however due to login issues on the federal submission site, the reports were not timely filed. The fifth late submission was late by one day. Corrective Action Plan Corrective Action Planned: The late submission of some grant reports was mainly due to login issues when the HRSA changed the process for logging in by adding on a second layer for authentication. A diary system has been developed to alert the CFO and the Controller when grant reports are due. Also, the Controller and Assistant Controller have been given access to both the Payment Management System and the Electronic Handbook (EHB) and have been trained in federal grant reporting so that in the absence of one the others can prepare the reports and submit in time. Name(s) of Contact Person(s) Responsible for Corrective Action: Frackson Sakala, CFO; Joseph McLaughlin, Controller; and Tran Le, the Assistant Controller Anticipated Completion Date: This has been started and is expected to be completed by January 31, 2025.

View Audit 341112

Finding 521153 (2024-002)

Significant Deficiency 2024

Isd # 13 Columbia Heights

MN

Procurement, Suspension & Debarment Internal Control / Segregation of Duties School Nutrition Programs

SIGNIFICANT DEFICIENCY IN INTERNAL CONTROL OVER COMPLIANCE – U.S. DEPARTMENT OF AGRICULTURE – PASSED THROUGH MINNESOTA DEPARTMENT OF EDUCATION, CHILD NUTRITION CLUSTER (FEDERAL ALN 10.553, 10.555, AND 10.559) 2024-002 Internal Control Over Compliance With Federal Suspension and Debarment Requireme...

SIGNIFICANT DEFICIENCY IN INTERNAL CONTROL OVER COMPLIANCE – U.S. DEPARTMENT OF AGRICULTURE – PASSED THROUGH MINNESOTA DEPARTMENT OF EDUCATION, CHILD NUTRITION CLUSTER (FEDERAL ALN 10.553, 10.555, AND 10.559) 2024-002 Internal Control Over Compliance With Federal Suspension and Debarment Requirements Finding Summary 2 CFR § 180 requires the District to establish and maintain effective internal control over compliance with requirements applicable to federal program expenditures, including suspension and debarment requirements applicable to the child nutrition cluster. The District did not have sufficient controls in place within its child nutrition cluster to assure that it was not contracting for goods or services with parties that are suspended or debarred, or whose principals are suspended or debarred from participating in contracts involving the expenditures of federal program funds. Actions Planned – The District will review policies and procedures relating to suspension and debarment for its federal programs and will ensure that all parties with which it contracts for goods or services are eligible to participate in contracts involving the expenditures of federal program funding. Official Responsible – Bryan Hennekens, Director of Finance and Operations. Planned Completion Date – June 30, 2025. Disagreement With or Explanation of Finding – The District is in agreement with this finding. Plan to Monitor – Bryan Hennekens, Director of Finance and Operations, will work with the financial auditors to review specific weaknesses identified during the annual audit and actions needed to eliminate or mitigate this internal control weakness.

View Audit 341108

Finding 521130 (2024-005)

Material Weakness 2024

Sheridan Community Schools

IN

School Nutrition Programs Internal Control / Segregation of Duties Eligibility § 200.303

FINDING 2024-005 Finding Subject: Child Nutrition Cluster (School Lunch) – Eligibility Summary of Finding: Café Director uploaded the Direct Certification reports from the state into the software system without following a documented oversight or review process to ensure that direct certified studen...

FINDING 2024-005 Finding Subject: Child Nutrition Cluster (School Lunch) – Eligibility Summary of Finding: Café Director uploaded the Direct Certification reports from the state into the software system without following a documented oversight or review process to ensure that direct certified students were accurately processed. This highlights a lack of documented controls for directly certified students. Contact Person Responsible for Corrective Action: Robin Popejoy Contact Phone Number and Email Address: 317.758.4172 – rpopejoy@sheridan.k12.in.us Views of Responsible Officials: We concur with the finding. Description of Corrective Action Plan: The Data Department will collaborate with the Café Department to input and ensure the accuracy of the information. Anticipated Completion Date: Already started in August of 2024.

View Audit 341082

Finding 521110 (2024-001)

Material Weakness 2024

Deliverance Manor Housing Corporation

IL

Questioned Costs Student Financial Aid Cash Management

CORRECTIVE ACTION PLAN Finding No. 2024-001: Credit Card was not reconciled and receipts were not obtained. Expenses were not properly recorded in the general ledger. Recommendation: Management should reconcile credit card accounts monthly and secure receipts for purchases and expenses should be pos...

CORRECTIVE ACTION PLAN Finding No. 2024-001: Credit Card was not reconciled and receipts were not obtained. Expenses were not properly recorded in the general ledger. Recommendation: Management should reconcile credit card accounts monthly and secure receipts for purchases and expenses should be posted to the proper general ledger account. Action Taken or Planned: Credit card accounts will be reconciled and receipts will be requested for purchases. Accounting will review the nature of purchases and properly post to the general ledger. Responsible Person: Mary Amador, Property Manager Completion Date: October 31, 2024

View Audit 341047 Questioned Costs: $1

Finding 521105 (2024-004)

Material Weakness 2024

City of Auburn

CA

Internal Control / Segregation of Duties Material Weakness Reporting § 200.303

The City has documented in its reporting procedures to ensure supporting financial information is kept with the submitted report. The report that was compiled to procedure the report in FY 2023-24 was overwritten as ongoing expenses were being tracked in the report. Anticipated Completion Date: Dece...

The City has documented in its reporting procedures to ensure supporting financial information is kept with the submitted report. The report that was compiled to procedure the report in FY 2023-24 was overwritten as ongoing expenses were being tracked in the report. Anticipated Completion Date: December 30, 2024 Responsible Contact Person: Gretchen Johnson, Finance Director

View Audit 341029

Finding 521078 (2024-001)

Significant Deficiency 2024

Gloucester County Special Services School District

NJ

Cash Management Period of Performance Internal Control / Segregation of Duties

In order to strengthen internal controls, the School District will train the staff responsible for reimbursement requests, final reports, and amendments as well as those responsible for purchasing for the grant to ensure that there is proper supporting documentation and grant management. The traini...

In order to strengthen internal controls, the School District will train the staff responsible for reimbursement requests, final reports, and amendments as well as those responsible for purchasing for the grant to ensure that there is proper supporting documentation and grant management. The training will include but is not limited to: NJ Finance law, good business practice, as well as a review of the purchasing manual. After this training in completed, the business office will be responsible for the review of reimbursement requests, final reports, amendments and purchases, prior to completion and submission to ensure compliance with the grant requirements and purchasing laws.

View Audit 341013

Finding 521074 (2024-004)

Material Weakness 2024

Brown County Schools

IN

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

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: S425U200013 Pass-Through Entity: Indiana Department...

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: S425U200013 Pass-Through Entity: Indiana Department of Education Compliance Requirement: Equipment and Real Property Management Audit Findings: Material Weakness Context: For 1 of 2 sample items tested, we noted the School Corporation expended $1,079,166 on roof renovations which was charged to the ESSER III (84.425U) grant award. It was noted these capital asset acquisitions were not reported on the capital asset listing for the School Corporation as of June 30, 2024. Contact Person Responsible for Corrective Action: Dawn Ray Contact Phone Number: 812.988.6601 Views of Responsible Official: We concur with the finding. Description of Corrective Action Plan: We will have someone other than the preparer of the capital asset invoices perform a documented review prior to submission to the Capital Asset company to validate the accuracy and completeness of the items to be submitted. Anticipated Completion Date: Immediately upon the completion of the audit.

View Audit 340994

Finding 521072 (2024-002)

Material Weakness 2024

Brown County Schools

IN

Special Tests & Provisions Subrecipient Monitoring Material Weakness § 200.303

Information on the federal program: Subject: Education Stabilization Fund – Special Tests and Provisions - Wage Rate Requirements Federal Agency: Department of Education Federal Program: COVID-19 - Education Stabilization Fund Assistance Listing Number: 84.425U Federal Award Numbers and Years (or Ot...

Information on the federal program: Subject: Education Stabilization Fund – Special Tests and Provisions - Wage Rate Requirements 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): S425U200013 Pass-Through Entity: Indiana Department of Education Compliance Requirement: Special Tests and Provisions - Wage Rate Requirements Audit Findings: Material Weakness, Material Noncompliance, Qualified Opinion Context: For the one project sampled for Davis-Bacon requirements, the School Corporation did not obtain the weekly payroll reports certifications from the company that performed renovations on the School Corporation’s roof. Therefore, no review was performed to ensure that pay rates complied with the federal wage rate requirements. Additionally, the School Corporation did not have contracts with the companies that included the clauses for the federal wage rate requirements. The amount disbursed and reported on the SEFA during the audit period is $467,094. Contact Person Responsible for Corrective Action: Dawn Ray Contact Phone Number: 812.988.6601 Views of Responsible Official: We concur with the finding. Description of Corrective Action Plan: Brown County Schools will require notification of certified payroll reviews be sent to us with the monthly work updates after the contractor has reviewed them for accuracy and compliance with prevailing wage requirements. Anticipated Completion Date: Immediately upon the completion of the audit.

View Audit 340994

Finding 521071 (2024-003)

Material Weakness 2024

Brown County Schools

IN

Internal Control / Segregation of Duties Material Weakness Reporting § 200.302 § 200.303 § 200.328

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, S425U200013 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) during the audit period to meet federal reporting requirements for ESSER grant awards. We noted that the ESSER II and ESSER III amounts reported on the Year 3 report ($397,392 and $294,138, respectively) did not agree to the underlying expenditure records ($498,259 and $1,509,413, respectively, for the period of July 1, 2021 through June 30, 2022). Additionally, we noted that the ESSER II and ESSER III amounts reported on the Year 4 report ($400,501 and $294,129, respectively) did not agree to the underlying expenditure records ($412,324 and $287,065, respectively, for the period of July 1, 2022 through June 30, 2023). We noted that the 195 number of Full-time equivalent (FTE) positions on September 30, 2023 on the second report did not agree to the underlying records supporting number of 274 Full-time equivalent (FTE) positions on September 30, 2023. Contact Person Responsible for Corrective Action: Dawn Ray Contact Phone Number: 812.988.6601 Views of Responsible Official: We concur with the finding. Description of Corrective Action Plan: We will have someone other than the preparer of the report perform a documented review prior to submission to validate the accuracy and completeness of the data submitted. Anticipated Completion Date: Immediately upon the completion of the audit.

View Audit 340994

Finding 521070 (2024-002)

Material Weakness 2024

Northwestern Michigan College

MI

Questioned Costs Allowable Costs / Cost Principles Internal Control / Segregation of Duties § 200.303

Condition: The College’s internal control in place for manual journal entries did not identify unallowable costs reported in the SEFA. Planned Corrective Action: While the College currently has controls in place to review all manual journal entries, we will adjust our review process going forward to...

Condition: The College’s internal control in place for manual journal entries did not identify unallowable costs reported in the SEFA. Planned Corrective Action: While the College currently has controls in place to review all manual journal entries, we will adjust our review process going forward to incorporate additional oversight for any manual journal entries impacting Federal grants. Going forward, the Controller will review all manual journal entries impacting Federal grants, and the Vice President of Finance will provide a second level review of any such entries that equal or exceed $50,000. Contact person responsible for corrective action: Troy Kierczynski, Vice President for Finance & Administration Anticipated Completion Date: Immediately

View Audit 340980 Questioned Costs: $1

Finding 521061 (2024-002)

Significant Deficiency 2024

Watertown School District No. 14-4

SD

Student Financial Aid Special Tests & Provisions Matching / Level of Effort / Earmarking

Finding 2024-002 Federal Agency Name: Department of Education Assistance Listing Number: #84.268 Program Name: Federal Direct Student Loans Finding Summary: 1 of the 60 students selected for testing the reporting of student status changes were reported with the incorrect enrollment status based on N...

Finding 2024-002 Federal Agency Name: Department of Education Assistance Listing Number: #84.268 Program Name: Federal Direct Student Loans Finding Summary: 1 of the 60 students selected for testing the reporting of student status changes were reported with the incorrect enrollment status based on NSLDS Enrollment Reporting guidance. 3 of the 60 students selected for testing the reporting of student status changes were reported to NSLDS with incorrect program begin dates based on NSLDS Enrollment Reporting guidance. 1 of the 60 students selected for testing the reporting of student status changes were reported to NSLDS with an incorrect status effective date based on NSLDS Enrollment Reporting guidance. Corrective Action Plan: LATC currently runs a SQL database script against the enrollment file before sending it to NSC. This script checks for missing and erroneous data (race/ethnicity, nondegree seeking majors, anticipated grad dates, etc.) in the file and updates it to correct values. The Director of Enrollment will work with the Database Administrator to regularly update these tables and review to ensure accurate information is being imported. The Registrar’s office will manually investigate these records and (if necessary) updated before sending the file to NSC. Every 30 days, representatives from the Financial Aid and the Registrar’s departments will pull 10 randomly selected student files to compare information in National Student Clearinghouse, PowerFaids, and NSLDS. The Director of Enrollment will work the error reports that the National Student Clearinghouse sends to LATC after every enrollment file upload with the assistance of the Database Administrator to ensure data submitted is compliant with DOE regulations. The Director of Financial Aid will review NSLDS to ensure corrections submitted by the Director of Enrollment are being properly recorded. Responsible Individual(s): Eric Schultz, Director of Enrollment and Kayla Bossly, Director of Financial Aid Anticipated Completion Date: Corrections complete by December 31, 2024. New process is ongoing.

View Audit 340969

Finding 521058 (2024-004)

Significant Deficiency 2024

Wagner Community Memorial Hospital

SD

Special Tests & Provisions Subrecipient Monitoring Significant Deficiency § 200.303

Federal Agency Name: Department of Agriculture Program Name: Community Facilities Loans and Grants Federal Financial Assistance Listing #10.766 Compliance Requirement: Special Test and Provisions Finding Summary: The Hospital’s reserve account is fully funded per the requirements in the loan resol...

Federal Agency Name: Department of Agriculture Program Name: Community Facilities Loans and Grants Federal Financial Assistance Listing #10.766 Compliance Requirement: Special Test and Provisions Finding Summary: The Hospital’s reserve account is fully funded per the requirements in the loan resolution security agreement. However, there is no documented secondary monitoring of the reserve balance as compared to the required minimum reserve balance. Responsible Individuals: Joshua Christensen, CFO Corrective Action Plan: The reserve account balance is monitored at each of the bi-monthly board of directors’ meetings. This review will include the current reserve account balance, the required minimum reserve account balance and a calculation to show the current balance is within compliance. The review and approval by the board of directors will be documented within the board minutes. Anticipated Completion Date: December 2024

View Audit 340965

Finding 521055 (2024-001)

Significant Deficiency 2024

The Russell Child Development Center, Inc.

KS

Cash Management Eligibility Significant Deficiency

2024-001 Eligibility Condition Six providers received an improper amount for their meal reimbursement for the month tested. Recommendation Controls should be reviewed and updated to ensure that reimbursements are only requested for complete and accurate meal counts at the correct rate of reimburse...

2024-001 Eligibility Condition Six providers received an improper amount for their meal reimbursement for the month tested. Recommendation Controls should be reviewed and updated to ensure that reimbursements are only requested for complete and accurate meal counts at the correct rate of reimbursement, and that only eligible participants are submitted to the State for reimbursement. Comments on the Finding Recommendation The CACFP at The Russell Child Development Center, Inc. is aware of the oversight and will continue to strive to improve its review process. Action Taken: As of the date of this notice, CACFP staff will continue to verify that the tally marks from the paper claims match the total provided. Those tally marks are then entered into My Food Program, and the total is again verified to match the paper claim. The Director of the CACFP program is now a third check for the tally marks matching what’s entered into My Food Program, as well as the totals claimed by the provider. Manual claim adjustments will continue to be saved and filed with supporting documentation, if applicable.

View Audit 340951

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