Corrective Action Plans

Finding 525690 (2024-003)

Material Weakness 2024

IN

Matching / Level of Effort / Earmarking Internal Control / Segregation of Duties Special Tests & Provisions § 200.303

FINDING 2024-003 Finding Subject: Covid-19 – Education Stabilization Fund – Special Tests and Provisions – Wage Rate Requirements Summary of Finding: This is a repeat finding form the immediately prior audit report. An effective internal control system, which would include segregation of duties, was...

FINDING 2024-003 Finding Subject: Covid-19 – Education Stabilization Fund – Special Tests and Provisions – Wage Rate Requirements Summary of Finding: This is a repeat finding form the immediately prior audit report. An effective internal control system, which would include segregation of duties, was not in place at the School Corporation in order to ensure compliance with requirements related to the grant agreement and the Special Tests and Provisions – Wage Rate Requirements compliance requirement. The School Corporation had not designed, nor implemented a system of internal controls to ensure that the wage rate requirements were met for construction projects. Contact Person Responsible for Corrective Action: Joanna Trueblood, Treasurer Contact Phone Number and Email Address: 812-967-3926 ext.5790 | jtrueblood@ewsc.k12.in.us Views of Responsible Officials: We concur with the finding. Description of Corrective Action Plan: The Corporation Treasurer will ensure that any new construction contracts in excess of $2,000, which are financed by federal assistance funds, pay wages not less than those established for the locality of the project (prevailing wage rates) by the Department of Labor (DOL) to their laborers and mechanics. The previously implemented corrective action plan failed due to lack of knowledge of utilizing federal assistance funds. It was believed the language addressing prevailing wage within the contract met the prevailing wage rate requirement. The Corporation will require all vendors of any new construction contracts to submit a copy of the payroll and statement of compliance to the entity for each week in which contract work is performed. Also, a Corporation checklist will be created for all construction projects financed by federal assistance funds to ensure all requirements are met.􀀃 Anticipated Completion Date: March, 2025

View Audit 344846

Finding 525689 (2024-001)

Significant Deficiency 2024

Middle Kentucky Community Action Partnership, Inc.

KY

Subrecipient Monitoring Reporting Significant Deficiency

Management agrees with the finding and has committed to a corrective action plan. Middle Kentucky has the use of a scheduling calendar in which required dates of reports and other key events are now placed. Middle Kentucky CFO has added the dates of reports including the FSRS report and its due date...

Management agrees with the finding and has committed to a corrective action plan. Middle Kentucky has the use of a scheduling calendar in which required dates of reports and other key events are now placed. Middle Kentucky CFO has added the dates of reports including the FSRS report and its due date. From this calendar an alert can and will e sent to the CFO and a designated second person to alert them as to the upcoming required date that this and other reports are to be submitted. The calendar both electronic and in written form is now in use and no further instances of this occurrence should occur within the fiscal department in the future.

View Audit 344835

Finding 525684 (2024-005)

Material Weakness 2024

Flat Rock - Haw Creek School Corporation

IN

Questioned Costs Allowable Costs / Cost Principles Internal Control / Segregation of Duties § 200.303 § 200.430

Context: For 5 selections, in a sample of 40 payroll transactions, the School Corporation did not have time and effort logs to support the portion of the employees’ time charged to the grant. The employees’ time was split with a non-federal fund; however, the School Corporation did not have support...

Context: For 5 selections, in a sample of 40 payroll transactions, the School Corporation did not have time and effort logs to support the portion of the employees’ time charged to the grant. The employees’ time was split with a non-federal fund; however, the School Corporation did not have support for the allocation of the time charged to the ESSER II and III funds. The sample amount charged to the grant for split-funded employees without time and effort logs was $6,759. Contact Person Responsible for Corrective Action: Melissa Dempsey Contact Phone Number: 812-546-2000 Views of Responsible Official: We concur with the finding. Description of Corrective Action Plan: The newly hired Grant Specialist and Corporation Business Manager will maintain time and effort logs for any personnel whose salary is split between funds. Anticipated Completion Date: July 2025

View Audit 344796 Questioned Costs: $1

Finding 525682 (2024-004)

Material Weakness 2024

Flat Rock - Haw Creek School Corporation

IN

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

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 I, ESSER II, and ESSER III amounts reported for the reports cov...

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 I, ESSER II, and ESSER III amounts reported for the reports covering the FY22 time period ($3,000, $0 and $0, respectively) did not agree to the underlying expenditure records ($0, $207,168, and $104,885, respectively, for the period of July 1, 2021 through June 30, 2022). Additionally, we noted that the ESSER II, and ESSER III amounts reported for the reports covering the FY23 time period ($328,359 and $334,119, respectively) did not agree to the underlying expenditure records ($121,193 and $229,234, respectively, for the period of July 1, 2022 through June 30, 2023). Contact Person Responsible for Corrective Action: Melissa Dempsey Contact Phone Number: 812-546-2000 Views of Responsible Official: We concur with the finding. Description of Corrective Action Plan: The Business Manager and Assistant will jointly review all expenditures or fedral grant awards with in the fiscal year that are to be reported to ensure accuracy of reporting. Anticipated Completion Date: July 2025

View Audit 344796

Finding 525679 (2024-003)

Significant Deficiency 2024

Flat Rock - Haw Creek School Corporation

IN

School Nutrition Programs Internal Control / Segregation of Duties Cash Management § 200.303

Context: For one sponsor claim reimbursement in a sample of four claims, the Food Service Director prepared the sponsor claim reimbursement summary without a secondary, documented review before the submission of the claim to ensure the accuracy of the sponsor claim reimbursement summary. Contact P...

Context: For one sponsor claim reimbursement in a sample of four claims, the Food Service Director prepared the sponsor claim reimbursement summary without a secondary, documented review before the submission of the claim to ensure the accuracy of the sponsor claim reimbursement summary. Contact Person Responsible for Corrective Action: Melissa Dempsey Contact Phone Number: 812-546-2000 Views of Responsible Official: We concur with the finding. Description of Corrective Action Plan: I have spoken to the Food Service Director to ensure that 2 individuals are signing off on all the claims. Anticipated Completion Date: 3/1/2025

View Audit 344796

Finding 525676 (2024-002)

Material Weakness 2024

Flat Rock - Haw Creek School Corporation

IN

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

Context: During testing over controls for eligibility, we noted there was no formal, secondary review for the applications entered in the food service software determining eligibility. Additionally, there was no documented annual review by School Corporation personnel of the income eligibility guid...

Context: During testing over controls for eligibility, we noted there was no formal, secondary review for the applications entered in the food service software determining eligibility. Additionally, there was no documented annual review by School Corporation personnel of the income eligibility guidelines used by the food service software. Contact Person Responsible for Corrective Action: Melissa Dempsey Contact Phone Number: 812-546-2000 Views of Responsible Official: We concur with the finding. Description of Corrective Action Plan: I have spoken to the Food Service Director and she will begin printing the Skyward threshold guidelines and sign off on those/confirm they match the federal poverty guidelines. Anticipated Completion Date: August 2025

View Audit 344796

Finding 525669 (2024-003)

Significant Deficiency 2024

Community College District of Gogebic County

MI

Reporting Significant Deficiency Internal Control / Segregation of Duties

Auditor Description of Condition and Effect. During our review of the submitted quarterly reports, we noted there were errors in the amounts reported. As a result, the College's quarterly ADN-to-BSN reports were prepared incorrectly and were not corrected until the mistakes were identified by the au...

Auditor Description of Condition and Effect. During our review of the submitted quarterly reports, we noted there were errors in the amounts reported. As a result, the College's quarterly ADN-to-BSN reports were prepared incorrectly and were not corrected until the mistakes were identified by the auditors. Auditor Recommendation. We recommend that the College implement a reconciliation and review process over the preparation and reporting of the ADN-to-BSN quarterly reports to ensure proper and accurate reporting. Corrective Action. The College has performed the necessary steps to correct the error and will correct the amounts reported in the next quarterly report. Additionally, the reporting process will include a reconciliation of the expenses and an additional level of review. Responsible Person. Chad Lashua, Vice President of Business Services. Anticipated Completion Date. April 30, 2025.

View Audit 344780

Finding 525665 (2024-002)

Significant Deficiency 2024

Community College District of Gogebic County

MI

Student Financial Aid Internal Control / Segregation of Duties Reporting

Auditor Description of Condition and Effect. During our review of the Fiscal Operations Report and Application to Participate (FISAP), we noted there were errors in the amounts reported. As a result, the College's FISAP was prepared incorrectly and had to be resubmitted to the Department of Federal ...

Auditor Description of Condition and Effect. During our review of the Fiscal Operations Report and Application to Participate (FISAP), we noted there were errors in the amounts reported. As a result, the College's FISAP was prepared incorrectly and had to be resubmitted to the Department of Federal Student Aid. Auditor Recommendation. We recommend that the College implement a secondary review process over the preparation and reporting of the FISAP to ensure proper and accurate reporting. Corrective Action. The College has performed the necessary steps to correct the error and will amend the reporting process to ensure that a second individual is reviewing the work performed. Responsible Person. Maryann DeCaire, Director of Financial Aid. Anticipated Completion Date. April 30, 2025.

View Audit 344780

Finding 525661 (2024-001)

Significant Deficiency 2024

Community College District of Gogebic County

MI

Special Tests & Provisions Student Financial Aid Period of Performance

Auditor Description of Condition and Effect. This condition was caused by a lack of detailed review of the Return to Title IV calculation and days used in the Spring 2024 semester. As a result, four students' Return to Title IV calculations were performed using incorrect start dates for the 2024 Spr...

Auditor Description of Condition and Effect. This condition was caused by a lack of detailed review of the Return to Title IV calculation and days used in the Spring 2024 semester. As a result, four students' Return to Title IV calculations were performed using incorrect start dates for the 2024 Spring semester resulting in an understatement in $84 of Pell awards to the students. The College corrected this issue with the Department of Education on July 30, 2024. Auditor Recommendation. We recommend that the College implement a review process to ensure the number of days used in the Return to Title IV calculation is accurate and that the Return to Title IV calculation is being reviewed by a second individual. Corrective Action. The College has performed the necessary steps to correct the error and will develop a process to ensure that a second individual is reviewing the work performed. Responsible Person. Maryann DeCaire, Director of Financial Aid. Anticipated Completion Date. April 30, 2025.

View Audit 344780

Finding 525660 (2024-003)

Significant Deficiency 2024

Schuyler Head Start, Inc.

NY

Internal Control / Segregation of Duties

The Organization will review and follow their established policies and procedures for drawing federal funds. The CFO will be conducting an ongoing federal grant draws to federal grant expenditures reconciliation. This will be accomplished by keeping a spreadsheet that shows each draw and the specifi...

The Organization will review and follow their established policies and procedures for drawing federal funds. The CFO will be conducting an ongoing federal grant draws to federal grant expenditures reconciliation. This will be accomplished by keeping a spreadsheet that shows each draw and the specifics behind it, and any notes. It will also show the utilizing of the cash account details and bank statement details. The federal draws and expenditures reconciliation will be reviewed and signed off on by the executive director at the time of bank account reconciliation sign off to ensure that all federal expenditures are being properly recorded and accounted.

View Audit 344777

Finding 525657 (2024-002)

Material Weakness 2024

Cissna Park Senior Life Development, Nfp

IL

Internal Control / Segregation of Duties

Jeff Cottingham, Management agent, and Diane Theesfeld, sponsor of project, will continue to monitor financial reports and accounting information as correction is not practical.

View Audit 344767

Finding 525656 (2024-001)

Material Weakness 2024

Cissna Park Senior Life Development, Nfp

IL

Internal Control / Segregation of Duties HUD Housing Programs

Jeff Cottingham, Management agent, and Diane Theesfeld, sponsor of project, will be responsible for monitoring monthly financial results and accounting information as correction is not practical.

View Audit 344767

Finding 525652 (2024-001)

Material Weakness 2024

Lebanon Community School Corporation

IN

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

1. Corrective Action Step A. Strengthening Internal Controls Over Determination of Applications Demonstrating Questionable Eligibility The School Corporation will develop and implement a segregation of duties, ensuring that current individuals approve applications, perform Direct Certification check...

1. Corrective Action Step A. Strengthening Internal Controls Over Determination of Applications Demonstrating Questionable Eligibility The School Corporation will develop and implement a segregation of duties, ensuring that current individuals approve applications, perform Direct Certification checks, and conduct follow-up verifications of questionable applicatoins in a more directed manor. If an applicant provides a case number that does not appear on the Direct Certification list the School Corporation will: 1. Review the application based on standard income eligibility requirements, while confirming the application will remain subject to verification. 2. If $0 income is provided or the application is otherwise 'questionable' then the reviewing individual will add the following to the application comments field: reviewing individual name, reason for review request, to whom the application will be escalated. 3. Apply benefits to siblings, if appropriate. 4. Not complete the final step of marking the application as processed, rather leave it 'pending' and notify Director of School Nutrition of the need for this application to be reviewed. 5. Director of School Nutrition or designee will review and either confirm the DC status by downloading the certification or conduct follow-up verification. In either case, approved or verification for cause, the Director of School Nutrition or Designee will mark the application as processed. 6. If the verification for cause is not responded to in a timely manner, the status will revert to 'Paid' status as per 'verification for cause' guidelines. 2. Corrective Follow-Up and Reporting The School Corporation will review all applications from current year (FY 24-25) to identify any applications not subject to verification process. Management will report progress on implementing these corrective actions to the School Board and maintain records for review by auditors and state officials. 3. Anticipated Completion Date The review of current year (FY 24-25) applications will be completed March 21, 2025. The school board report will be completed April 11, 2025.

View Audit 344763

Finding 525650 (2024-002)

Material Weakness 2024

Yancey County, North Carolina

NC

Eligibility Material Weakness Matching / Level of Effort / Earmarking § 200.303

The County will develop a 2nd Party Review from that will be used to check completed applications for accuracy in applying policy and to assure all verifications have been uploaded to the NCFAST system.

View Audit 344762

Finding 525649 (2024-002)

Significant Deficiency 2024

Chowan County, North Carolina

NC

Questioned Costs Eligibility Internal Control / Segregation of Duties

New Procedures and controls are being developed for all Medicaid caseworkers to follow. There were 60 Medicaid transactions that were examined, that resulted in (1) Eligibility error discovered during the fiscal year findings June 30, 2024. (1) Eligibility error SSI benefits terminated, no proof of ...

New Procedures and controls are being developed for all Medicaid caseworkers to follow. There were 60 Medicaid transactions that were examined, that resulted in (1) Eligibility error discovered during the fiscal year findings June 30, 2024. (1) Eligibility error SSI benefits terminated, no proof of disability in the file. Documentation Training Power Point will need to be utilized for all Medicaid workers when documenting each case. Application/Recertification check list will be used for applications and recertifications. Supervisor and Lead Worker will continue to review all pending Medicaid applications, and complete 2nd Party reviews once applications are completed. NC Fast Learning Gateway trainings and New employee trainings will be conducted. Medicaid workers will need to make sure they are working the SSI Termination report to eliminate any future paybacks. Workers will continue to have Round Table Meetings to discuss policy, administrative letters, and cases. Medicaid workers will keep the case record accurate, verifications, and reserve calculations correct. Proposed Completion Date: November 1, 2024. Certain controls are currently being created and reviewed. Management will continue to monitor the progress of this issue and modify the controls as needed.

View Audit 344759 Questioned Costs: $1

Finding 525618 (2024-001)

None 2024

Town of Dudley, Massachusetts

MA

Internal Control / Segregation of Duties Subrecipient Monitoring Reporting

When the reporting portal opens in late March 2025 for Annual Reports due by April 30, 2025 (for the April 1, 2024-March 31, 2025 reporting period), the Town Accountant will enter a project under expenditure category 6.1 (Revenue Replacement) that will include the $3,519,030.12 that was obligated an...

When the reporting portal opens in late March 2025 for Annual Reports due by April 30, 2025 (for the April 1, 2024-March 31, 2025 reporting period), the Town Accountant will enter a project under expenditure category 6.1 (Revenue Replacement) that will include the $3,519,030.12 that was obligated and expended by Dudley for revenue replacement. On the overview section of the 2024 report the town will report the full $3,519,030.12 as obligated and expensed.

View Audit 344723

Finding 525611 (2024-001)

Significant Deficiency 2024

Housing Authority of the Borough of Clementon

NJ

HUD Housing Programs Special Tests & Provisions Significant Deficiency

Views of responsible officials and planned corrective action: The Authority accepts the recommendation of the auditor. The Authority will increase oversight in the Section 8 Housing Choice Vouchers Program to ensure that established internal control policies are being followed on a timely basis. Ve...

Views of responsible officials and planned corrective action: The Authority accepts the recommendation of the auditor. The Authority will increase oversight in the Section 8 Housing Choice Vouchers Program to ensure that established internal control policies are being followed on a timely basis. Vernon Lawrence, Executive Director, will be responsible to implement this corrective action by June 30, 2025.

View Audit 344709

Finding 525598 (2024-001)

Significant Deficiency 2024

Allegheny College

PA

Student Financial Aid Reporting Significant Deficiency

Criteria, Condition, Cause: We concur that our timely reporting of academically dismissed students during the non-required summer term is an issue and will be vigilant to prevent this delayed reporting in the fun1re. It should be noted that this small cohort was all deemed ineligible to return for ...

Criteria, Condition, Cause: We concur that our timely reporting of academically dismissed students during the non-required summer term is an issue and will be vigilant to prevent this delayed reporting in the fun1re. It should be noted that this small cohort was all deemed ineligible to return for the upcoming semester on the same day, and so that singular days' enrollment status changes were the only updates that were untimely in the submission to the National Student Loan Data System (NSLDS). We will be modifying and monitoring our process to accurately capture and report to the NSLDS sh1dents determined to be ineligible to return in the fall semester even during a tenn of non-required enrollment. Effect, Questioned costs, Context: Enrollment rosters and updated enrollment statuses are reported regularly with NSLDS to ensure current enrollment status that can impact loan repayment dates and in-school deferments are accurately on record with the Department of Education. For the summer enrollment roster, although Allegheny's summer term is a non-required tern1, students that are not enrolled in the summer tern1, but Allegheny is aware that they will not be enrolled in the upcoming required fall tem1 must be reported as withdrawn through the summer enrollment roster. Recommendation The College will continue to confom1 to the NSLDS reporting process and timeline, and with the collaboration of the Financial Aid's, Registrar's, and Provost's Offices, will fully bring the non-required term enrollment reporting into alignment. For the next non-required summer tern1 enrollment report in 2025, Allegheny will be incorporating the shtdents determined to be academically dismissed from the spring tenn on the initial summer enrollment roster with the updated withdrawn stah1s. The initial summer enrollment roster will be submitted within 60 days.

View Audit 344703

Finding 525577 (2024-002)

Material Weakness 2024

Gage County

NE

Internal Control / Segregation of Duties Reporting

The County has discussed the finding but must consider the cost of adequate segregation of duties when determining the use of tax money.

View Audit 344683

Finding 525576 (2024-001)

Material Weakness 2024

Gage County

NE

Internal Control / Segregation of Duties Special Tests & Provisions

The County has discussed the finding but must consider the cost of professional resources to complete a set of drafted county financial statements.

View Audit 344683

Finding 525569 (2024-002)

Significant Deficiency 2024

City of Danube

MN

Internal Control / Segregation of Duties

Name of Contact Person: Dotty Schnobrich, City Clerk

View Audit 344659

Finding 525569 (2024-002)

Significant Deficiency 2024

City of Danube

MN

Internal Control / Segregation of Duties

Correction Action: The finance related tasks will be separated as much as possible and alternative controls will be used to compensate for the lack of separation. The City Council will become more involved in providing some of these controls.

View Audit 344659

Finding 525569 (2024-002)

Significant Deficiency 2024

City of Danube

MN

Internal Control / Segregation of Duties

Proposed Completion Date: The City Council will implement the above procedures immediately.

View Audit 344659

Finding 525563 (2024-005)

Significant Deficiency 2024

Bethany College

KS

Special Tests & Provisions Significant Deficiency Matching / Level of Effort / Earmarking

Corrective Action Plan 2024-005: The College has provided to the USDA the required documentation that had been identified as not sufficiently provided and has established controls to ensure that the requirements listed in the Letter of Conditions will be met each year going forward. Completion Date...

Corrective Action Plan 2024-005: The College has provided to the USDA the required documentation that had been identified as not sufficiently provided and has established controls to ensure that the requirements listed in the Letter of Conditions will be met each year going forward. Completion Date: December 2024 Contact Person: Steven W. Eckman, President

View Audit 344637

Finding 525547 (2024-002)

Material Weakness 2024

Jay County School Corporation

IN

Questioned Costs Allowable Costs / Cost Principles School Nutrition Programs § 200.303

Context: During testing of activities allowed and unallowed/allowable costs, it was noted the School Corporation transferred $48,693 from the School Lunch Fund to the JCHS Prepaid Food/Trust Acct to settle negative student balances deemed uncollectible. Outstanding student debt resulting from nonpa...

Context: During testing of activities allowed and unallowed/allowable costs, it was noted the School Corporation transferred $48,693 from the School Lunch Fund to the JCHS Prepaid Food/Trust Acct to settle negative student balances deemed uncollectible. Outstanding student debt resulting from nonpayment of school meals or milk is an unallowable expenditure to the nonprofit school food service account and cannot be absorbed by the food service program at the end of the school year. It must be paid for with other non-federal sources. Contact Person Responsible for Corrective Action: Shannon Current Contact Phone Number: 260-726-9341 Views of Responsible Official: We concur with the finding now that we have more clarifying information. Prior to this audit, we were told we had to use non-federal funds to write off the debt. The published documentation we had was vague as it only stated non-federal funds. With the assistance of our food service company, we were told that catering, adult meals, and al a carte were all non-federal funds. They also had a calculation for figuring out the amount of non-federal funds that we had to make sure it was enough to cover the negative debt. Description of Corrective Action Plan: Moving forward, I will make sure that any negative debt is written off using the operations fund, rainy day, or other approved fund. Anticipated Completion Date: The next time we are required to write off debt. Possibly June 30, 2025.

View Audit 344628 Questioned Costs: $1

Corrective Action Plans

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