Corrective Action Plans

Finding 518920 (2023-006)

Material Weakness 2023

IN

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

Finding 2022-06 Unallowable and Improperly Documented Payroll Expenditures Condition: The Organization failed to establish critical processes and internal controls over payroll expenditures to ensure compliance with Uniform Guidance requirements and several compliance issues were identified. As par...

Finding 2022-06 Unallowable and Improperly Documented Payroll Expenditures Condition: The Organization failed to establish critical processes and internal controls over payroll expenditures to ensure compliance with Uniform Guidance requirements and several compliance issues were identified. As part of audit procedures, 44 transactions were selected in a testing sample from a population of 243 direct payroll transactions. Of the transactions tested, the auditors noted 8 instances of payroll costs overclaimed by way of claiming the same work effort for the same period on multiple grants. The auditors noted 18 instances of failure to properly calculate and allocate the work effort completed by employees that worked on multiple grants and programs. The auditors noted 9 instances of the Organization failing to have approved pay rates on file that matched the amounts paid to the employees. The auditors also noted a significant lack of supervisory approval on timesheets or other time allocation support. Corrective Actions Taken or Planned: - Conduct mandatory training for all supervisors to reinforce the importance of: + Accurate timesheet approval processes. + Proper time allocation for employees working on multiple grants or programs. + Ensuring timely and consistent documentation of payroll expenditures. - Engage Christy Paddock Advisors LLC (CPA firm) to: + Oversee payroll allocation processes to ensure employee time is properly distributed across grants and programs based on actual work effort. + Implement controls to flag and prevent duplicate payroll charges to multiple grants. + Payroll expense reports will be systematically reviewed and approved by the CPA firm and VOICES’ executive team prior to filing federal claims. - Ensure all approved pay rates are documented, signed, and filed for each employee. - Configure QuickBooks to ensure payroll costs and grant allocations are: + Clearly identifiable and traceable. + Linked to corresponding grants and federal claims. - Revise the PTO policy to address liability and improve tracking by: + Implementing a "use-it-or-lose-it" policy with a defined carryover limit. + Removing PTO payout upon termination to reduce financial exposure. + Communicate the updated policy clearly to staff and implement tracking in payroll systems.

View Audit 337399 Questioned Costs: $1

Finding 518913 (2023-001)

Material Weakness 2023

Eclectic Soul Voices Corporation

IN

Internal Control / Segregation of Duties Material Weakness Reporting

Finding 2023-01 Financial Close Process Condition: The auditors noted a lack of a strong financial close process which led to several material audit adjustments that were proposed during the audit and recorded by the client to properly reflect various financial statement accounts. Corrective Actio...

Finding 2023-01 Financial Close Process Condition: The auditors noted a lack of a strong financial close process which led to several material audit adjustments that were proposed during the audit and recorded by the client to properly reflect various financial statement accounts. Corrective Actions Taken or Planned: - Retained Christy Paddock Advisors LLC, a licensed CPA firm with significant expertise in financial reporting and audit compliance. Their role includes providing oversight and ensuring that all financial activities are appropriately reviewed and recorded. - A comprehensive financial close process will be formalized and documented. This process will include clear timelines, task ownership, and internal controls to ensure the timely and accurate reconciliation of all accounts prior to audit submission. - Beginning in 2025, all financial transactions and balances will undergo rigorous monthly reviews to ensure proper classification in the correct financial statement accounts, reducing the likelihood of errors.

View Audit 337399

Finding 518870 (2023-003)

Material Weakness 2023

The Astraea Foundation, Inc.

NY

Allowable Costs / Cost Principles Material Weakness Reporting

Views of Responsible Officials: All Astraea staff members are required to complete timesheets. Astraea’s internal processes were reviewed and overhauled in December 2021 (midway through FY2022) with department heads determining how their direct reports would spend time on various Astraea work stream...

Views of Responsible Officials: All Astraea staff members are required to complete timesheets. Astraea’s internal processes were reviewed and overhauled in December 2021 (midway through FY2022) with department heads determining how their direct reports would spend time on various Astraea work streams and projects.This information is detailed in a level of effort (LOE) spreadsheet tracked against timesheets and budgets regularly. However, the processes for instituting regular updates to the LOE spreadsheet and timesheet allocations remained time-consuming and highly manual in FY2023 – which we believe resulted in misallocations. Astraea is currently reviewing internal processes to ensure, 1) that review and revision of the LOE spreadsheet and timesheet allocations can happen in a timely manner with less administrative burden, and 2) allowance of a more detailed review of the payroll allocation approval and entry process. As of November 2024, the Astraea Finance team was in the process of transitioning to a more sophisticated finance and accounting system. This system will allow for automation of the processes. Since this system is expected to be live starting in January of 2025, the anticipated completion date remains January 31, 2025.

View Audit 337275

Finding 518866 (2023-003)

Material Weakness 2023

Agape Community Health Center, Inc.

FL

Reporting Internal Control / Segregation of Duties § 200.512

Actions Planned: The Organization has contracted with a healthcare consulting firm and has outsourced the financial reporting function in its entirety. They are responsible for general ledger reconciliations to the appropriate subsidiary ledgers and/or supporting documentation. They will also be r...

Actions Planned: The Organization has contracted with a healthcare consulting firm and has outsourced the financial reporting function in its entirety. They are responsible for general ledger reconciliations to the appropriate subsidiary ledgers and/or supporting documentation. They will also be responsible for all internal and external financial reporting.

View Audit 337264

Finding 518748 (2023-002)

Significant Deficiency 2023

Housing Authority of the City of Norwalk

CT

Questioned Costs HUD Housing Programs Eligibility

Finding 2023-002 Federal Agency: U.S. Department of Housing and Urban Development Federal Program Titles: Section 8 Housing Choice Vouchers Program Federal Catalog Numbers: 14.871 Noncompliance – E. Eligibility - Tenant Files Non Compliance Material to the Financial Statements: No Significant Defici...

Finding 2023-002 Federal Agency: U.S. Department of Housing and Urban Development Federal Program Titles: Section 8 Housing Choice Vouchers Program Federal Catalog Numbers: 14.871 Noncompliance – E. Eligibility - Tenant Files Non Compliance Material to the Financial Statements: No Significant Deficiency in Internal Control over Compliance for Eligibility Criteria: Tenant Files. The PHA must do the following: As a condition of admission or continued occupancy, require the tenant and other family member to provide necessary information, documentation, and releases for the PHA to verify income eligibility (24 CFR sections 5.230, 5.609, and 982.516). These files are required to be maintained and available for examination at the time of audit. Condition: Based upon inspection of the Authority’s files and on discussion with management, there were documents that were unavailable for examination at the time of audit. Context: Of a sample size of twenty-two (22) tenant files, the following information was unavailable for examination at the time of audit: • Biennial inspection reports were missing in two (2) files Our sample size is statistically valid. Known Questioned Costs: $21,520 Cause: There is a significant deficiency in internal controls over the compliance for the eligibility type of compliance related to the maintenance of tenant files. The Authority has not properly considered, designed, implemented, maintained, and monitored a system of internal controls that reasonably assures the program is in compliance. Effect: The Section 8 Housing Choice Vouchers program is in non-compliance with the eligibility type of compliance related to the maintenance of tenant files. Recommendation: We recommend the Authority design and implement internal control procedures that will reasonably assure compliance with the Uniform Guidance and the compliance supplement. 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. Adam Bovilsky, Executive Director, is responsible for implementing this corrective action by March 31, 2024.

View Audit 337205 Questioned Costs: $1

Finding 518732 (2023-002)

Material Weakness 2023

Inland Southern California United Way

CA

Reporting Internal Control / Segregation of Duties

2023-002 – Controls over Reporting (previously 2022-005): Material Weakness. Federal Programs: AL 21.023 – Emergency Rental Assistance Program. AL 14.231 – Emergency Solutions Grant. Auditors Notes: As a part of the administering federal funds, the Organization should have internal controls over co...

2023-002 – Controls over Reporting (previously 2022-005): Material Weakness. Federal Programs: AL 21.023 – Emergency Rental Assistance Program. AL 14.231 – Emergency Solutions Grant. Auditors Notes: As a part of the administering federal funds, the Organization should have internal controls over compliance in place to ensure that reporting deadlines are met. The Organization experienced delays in the completion of the financial statement audit, and therefore the single audit was delayed until after the required submission date. The Organization is relatively new to the single audit process and requirements, there were various versions of guidance received and unclear identification of responsibilities until later into the program year that resulted in delays. The effect was a delay in the finalization of the single audit and inappropriate reporting to the related granting agencies. We recommend that the Organization develop a process to track and ensure that reporting deadlines are met. Management’s Response: Inland Southern California United Way and Subsidiaries are currently catching up on both financial audits and single audits for the Organization, therefore deadlines that have already passed could not have been met. However, the Accounting Manager and Executive Director of Finance will be responsible for ensuring that any future deadlines, effective FY24, for program reporting requirements as well as both financial audits and single audits are completed and submitted in a timely manner.

View Audit 337167

Finding 518700 (2023-008)

Significant Deficiency 2023

State of Mississippi

MS

Questioned Costs Subrecipient Monitoring Allowable Costs / Cost Principles § 200.303

2023-008 Assistance Listing No. 96.001, 96.006 and Social Security Disability lnsurance Cluster Type of Compliance Requirement: Allowable Costs lnternal Controls gtver glant disbursements were not consistently performed Response: There is no disagreement with the audit finding. Corrective Action Pla...

2023-008 Assistance Listing No. 96.001, 96.006 and Social Security Disability lnsurance Cluster Type of Compliance Requirement: Allowable Costs lnternal Controls gtver glant disbursements were not consistently performed Response: There is no disagreement with the audit finding. Corrective Action Plan: Item is isolated and immaterial. And, we feel effective controls are in place to mitigate the likelihood of this type of error. We have also, since, reached out to the vendor to redeem the $14 associated with this transaction. However, we will continue to monitor and reinforce, with our managers, the importance of being vigilant during their review and approval processes for this type of situatlon. Planned completion date for corrective action plan: lmmediately Name(s) of the contact person(s) responsible for corrective actions: Andy Salin Finance Director 601-853-5220.

View Audit 337153 Questioned Costs: $1

Finding 518679 (2023-017)

Material Weakness 2023

State of Mississippi

MS

Subrecipient Monitoring Internal Control / Segregation of Duties Material Weakness

SUBRECIPIENT MONITORING ALN Number 2023-017 Response: 93.568 Low Income Home Energy Assistance (LIH EAP) 93.489, 93.575, and 93 .596 Child Care Deve lopment Fund (CCDf-') Strenl.!.lhen Controls Over Onsite Monitorirw for the Low-Income Home Enerl.!.v Assistance Program ( LI HEAP). MOHS Concurs that ...

SUBRECIPIENT MONITORING ALN Number 2023-017 Response: 93.568 Low Income Home Energy Assistance (LIH EAP) 93.489, 93.575, and 93 .596 Child Care Deve lopment Fund (CCDf-') Strenl.!.lhen Controls Over Onsite Monitorirw for the Low-Income Home Enerl.!.v Assistance Program ( LI HEAP). MOHS Concurs that cont ro ls should be strengthened over On-Site monitoring for the LIHEAP and CCDF. Corrective Action Plan: I. Strengthen cont ro ls over the subrec ipienl monitoring process: A. The Office of Compliance, Division of Monitoring has made sign ifi cant strides in strength ening cont ro ls over the subreci pient monitor ing process. The Division continues to rev iew and update the processes and procedures as necessary to ensure processes are adeq uate and effective. Staff are constantly notified/trained on updates to poli cies, procedures, and regulations to ensure continued compliance with monitoring the agency's subgrant agreem ents. Additionally, the Division is in the process of implementing a case management system to ass ist in better track ing the status of monitoring reviews. B. Responsible Party: Kameron Harri s, Chief Compliance Officer, Director of Monitoring, Laketha Gilmore C. Completion Date: This corrective action has been implemented and is ongoi ng.

View Audit 337153

Finding 518674 (2023-016)

Material Weakness 2023

State of Mississippi

MS

Internal Control / Segregation of Duties Subrecipient Monitoring Material Weakness

REPORTING ALN Number 2023-016 Response: 93.558 Temporary Assistance for Needy Families (TANI') 93.568 Low Income Home Energy Assistance (LIH EAP) 93.489, 93.596 and 93.575 Child Care Development Fund (CCDF) Strengthen Controls to Ensure Compliance with l'ecleral Fundinl.!. Accountabi litv and Transp...

REPORTING ALN Number 2023-016 Response: 93.558 Temporary Assistance for Needy Families (TANI') 93.568 Low Income Home Energy Assistance (LIH EAP) 93.489, 93.596 and 93.575 Child Care Development Fund (CCDF) Strengthen Controls to Ensure Compliance with l'ecleral Fundinl.!. Accountabi litv and Transparency Act ffF AT A) req uirements. MOHS concurs that controls should be strengthened over FF AT A reporting requirements. Corrective Action Plan: I. Strengthen controls to ensure compliance with FFATA reporting requirements. A. MOHS implemented a process as of January I. 2023, to ensure that FFATA reporting is being clone and verified on a periodic basis. After doing an initial submission of reports the first year and completing the process, Standard Operating Procedures were deve loped to ensure that the reports are entered, rev iewed and submitted within the required tim efram e. B. Responsible Parties: Debra Dixon, Deputy of Finance and Samuel Cole, Director of Procurement Services C. Anticipated Completion Date: This correct ive action has been implemented.

View Audit 337153

Finding 518668 (2023-025)

Material Weakness 2023

State of Mississippi

MS

Subrecipient Monitoring Internal Control / Segregation of Duties Eligibility § 200.303

2023-025 Response: Strengthen Controls to Ensure Compliance with Eligibility Requirements for the Emergency Rental Assistance Program (ERA). ALN# 21.023 We acknowledge the finding. The Mississippi Department of Finance and Administration was not appropriated funds for this program nor was the agency...

2023-025 Response: Strengthen Controls to Ensure Compliance with Eligibility Requirements for the Emergency Rental Assistance Program (ERA). ALN# 21.023 We acknowledge the finding. The Mississippi Department of Finance and Administration was not appropriated funds for this program nor was the agency given any authority for the administration for the program. As such, DFA was not in a position to assess eligibility determinations or perform monitoring. DFA drew down funds on behalf of Mississippi Home Corp in light of an impending federal deadline. Mississippi Home Corporation had eligibility and fraud prevention policies in place for the ARPA programs. These policies included, but are not limited to, contracting with a third-party law firm to review all applications with a three-tier review system, monitoring with random sample selections for every 10% completed, employing an internal, qualitycontrol auditor, and reviewing any applications submitted that were greater than $10,000. As a result of their monitoring, MHC was able to identify suspicious applications and report them to the Mississippi Attorney General for investigation. MHC continues to report all expenditures directly to U.S. Treasury on a quarterly basis. It is also worth noting that the program stopped taking applications in September of 2022 which was prior to the issuance of the 2022 Single Audit Report that was released on July 31, 2023. Thus, policies and controls in place could not be changed for this. DFA is taking the position that corrective action is no longer necessary for these funds. Corrective Action: A. The Mississippi Department of Finance and Administration is taking the position that corrective action is no longer necessary. The program stopped taking applications in September of 2022, which is prior to the current 2023 single audit report dated November 21, 2024. Policies and controls in place could not be changed for this. B . N/A C. N/A D. The Emergency Rental Assistance program stopped taking applications September of 2022.

View Audit 337153

Finding 518660 (2023-010)

Material Weakness 2023

State of Mississippi

MS

Subrecipient Monitoring Material Weakness Reporting § 200.303

Reference Number: 2023-001 Prior Year Finding: No Federal Agency: U.S. Department of Labor Department Name: Mississippi Department of Employment Security Federal Program: WIOA Cluster Assistance Listing Number: 17.258, 17.259, 17.278 Award Number and Year: 7/1/22 – 6/30/23 Compliance Requirement: Re...

Reference Number: 2023-001 Prior Year Finding: No Federal Agency: U.S. Department of Labor Department Name: Mississippi Department of Employment Security Federal Program: WIOA Cluster Assistance Listing Number: 17.258, 17.259, 17.278 Award Number and Year: 7/1/22 – 6/30/23 Compliance Requirement: Reporting – Federal Funding Accountability and Transparency Act (FFATA) Type of Finding: Material Weakness in Internal Control Over Compliance, Material Noncompliance Criteria or specific requirement: Compliance: Per the Federal Funding Accountability and Transparency Act (FFATA), prime (direct) recipients of grants or cooperative agreements are required to report firsttier subawards of $30,000 or more to the Federal Funding Accountability and Transparency Act Subaward Reporting System (FSRS). Reports must be filed in FSRS by the end of the month following the month in which the prime recipient awards any sub-grant greater than or equal to $30,000. If the initial award is below $30,000 but subsequent grant modifications result in a total award equal to or over $30,000, the award will be subject to the reporting requirements as of the date the award exceeds $30,000. If the initial award equals or exceeds $30,000 but funding is subsequently de-obligated such that the total award amount falls below $30,000, the award continues to be subject to FFATA reporting requirements. Control: Per 2 CFR section 200.303(a), a non-Federal entity must: Establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. These internal controls should comply with guidance in “Standards for Internal Control in the Federal Government” issued by the Comptroller General of the United States or the “Internal Control Integrated Framework”, issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO). Condition: The Mississippi Department of Employment Security (MDES) did not report subaward information to FSRS within thirty days after issuing the subaward or subaward amendment. Context: Nine subawards were selected for testing which included five original subawards and four amendments. We noted the following exceptions:  1 of 9 subawards should have been reported by 11/30/2022 but was not reported before the end of FY 2023. The subaward was subsequently reported in February 2024.  3 of 9 subawards should have been reported by 5/31/2023 but were not reported before the end of FY 2023. The subawards were subsequently reported in February 2024.  4 of 9 subawards should have been reported no later than 2/28/2023 but they were reported on 3/29/2023, or 29 days late. Cause: MDES’s procedures and controls were not sufficient to ensure that subawards were reported to FSRS no later than the end of the month following the month of issuance. Effect: Subawards were not reported to FSRS in accordance with FFATA requirements. Questioned costs: None noted. Recommendation: We recommend MDES establish procedures and internal controls to ensure that all required subawards are reported timely to FSRS no later than the end of the month following the month of issuance of each subaward. Views of responsible officials: MDES Response MDES concurs that the program year 2022 subawards were not entered into the Federal Funding Accountability and Transparency Act Subaward Reporting System (FSRS) within thirty days of subaward issuance. The practice of MDES has been to enter all subawards into the FSRS at one time and later perform a look back to determine the adjustments needed to bring the reported balances up or down based on subaward amendments made during the year. Specifically, for program year 2022 subawards, the initial entry into FSRS was on 3/29/2023 with the post award adjustment entry made February 23, 2024. Corrective Action Plan: a. MDES Plan: MDES will strengthen controls around FSRS reporting to ensure subawards are reported to FSRS within thirty days of issuance. MDES will also monitor subaward amendments and ensure they are reported within thirty days of issuance. Entries into the FSRS will be reviewed by the supervisor to ensure compliance. This process is effective immediately. b. Contact Person Responsible: Comptroller. c. Anticipated Corrective Action Plan Completion Date: July 15, 2024.

View Audit 337153

Finding 518656 (2023-009)

Significant Deficiency 2023

State of Mississippi

MS

Special Tests & Provisions Significant Deficiency Matching / Level of Effort / Earmarking § 200.303

Reference Number: 2023-001 Prior Year Finding: No Federal Agency: U.S. Department of Labor Department Name: Mississippi Department of Employment Security Federal Program: Unemployment Insurance Assistance Listing Number: 17.225 Award Number and Year: 7/1/22 – 6/30/23 Compliance Requirement: Special ...

Reference Number: 2023-001 Prior Year Finding: No Federal Agency: U.S. Department of Labor Department Name: Mississippi Department of Employment Security Federal Program: Unemployment Insurance Assistance Listing Number: 17.225 Award Number and Year: 7/1/22 – 6/30/23 Compliance Requirement: Special Tests and Provisions – UI Benefit Payments Type of Finding: Significant Deficiency in Internal Control over Compliance Criteria or specific requirement: Compliance: The State Workforce Agency (SWA) is required by 20 CFR section 602.11(d) to operate and maintain a quality control system. The Benefits Accuracy Measurement (BAM) program is DOL’s quality control system designed to assess the accuracy of UI benefit payments and denied claims, unless the SWA is exempted from such requirement (20 CFR section 602.22). The program estimates error rates, that is, numbers of claims improperly paid or denied, and dollar amounts of benefits improperly paid or denied, by projecting the results from investigations of statistically sound random samples to the universe of all claims paid and denied in a state. Specifically, the SWA’s BAM unit is required to draw a weekly sample of payments and denied claims, complete prompt, and in-depth investigations to determine if the administration of the UC program is consistent with state and federal law (20 CFR section 602.21(d)). As presented in the ET Handbook No. 395, the investigation involves a review of state agency records, as well as contacting the claimant, employers, and third parties (either inperson, by telephone, or by fax) to conduct new and original fact-finding related to all of the information pertinent to the paid or denied claim that was sampled. BAM investigators review cases for adherence to federal and state law as well as official policy. The following time limits are established for completion of all cases for the year. (The "year" includes all batches of weeks ending in the calendar year.): • a minimum of 70 percent of cases must be completed within 60 days of the week ending date of the batch; • 95 percent of cases must be completed within 90 days of the week ending date of the batch; • a minimum of 98 percent of cases for the year must be completed within 120 days of the ending date of the calendar year. Control: Per 2 CFR section 200.303(a), a non-Federal entity must: Establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. These internal controls should comply with guidance in “Standards for Internal Control in the Federal Government” issued by the Comptroller General of the United States or the “Internal Control Integrated Framework”, issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO). Condition: The Mississippi Department of Employment Security (MDES) was unable to provide documentation that case reviews were reviewed and approved by investigator staff. Context: One of forty cases selected for testing did not have documentation of investigator review and approval. Questioned costs: Undetermined. Cause: The Department’s internal controls were not sufficient to ensure that it maintained documentation of investigator review and approval for all BAM case reviews. Effect: Incomplete documentation of BAM case reviews could delay the detection and correction of inaccurate benefit payments and denied claims. Recommendation: We recommend the Department review and enhance procedures and controls to ensure that documentation of investigator review, and approval of all BAM case reviews is maintained. Views of responsible officials: MDES Response MDES concurs with this finding. Corrective Action Plan: a. MDES Plan: MDES will provide additional training to BAM investigative staff and supervisors to remind them of the importance of complying with federal regulations requiring all investigative staff to document their work on the final approved reviews of the BAM cases with a signature. b. Contact Person Responsible: Director Unemployment Insurance – Tax. c. Anticipated Corrective Action Plan Completion Date: July 31, 2024.

View Audit 337153

Finding 518655 (2023-002)

Significant Deficiency 2023

America Walks, Inc.

WA

Cash Management Subrecipient Monitoring Allowable Costs / Cost Principles

Contact person(s) responsible: Nicole Smith, Operations Manager Corrective action planned: We will prepare the manual of financial and federal compliance policies and procedures (including cash management, allowable costs, and procurement) as required by the Uniform Guidance. Pertinent employees wil...

Contact person(s) responsible: Nicole Smith, Operations Manager Corrective action planned: We will prepare the manual of financial and federal compliance policies and procedures (including cash management, allowable costs, and procurement) as required by the Uniform Guidance. Pertinent employees will be trained to use this manual to ensure compliance. Anticipated completion date: December 31, 2024

View Audit 337123

Finding 518643 (2023-003)

Significant Deficiency 2023

Mandaree Public School District No 36

ND

Allowable Costs / Cost Principles Internal Control / Segregation of Duties

Contact Person: Business Manager and Human Resource Manager Planned Corrective Action: The District currently does have processes and controls in place to ensure grant expenditures have been approved. Specific to this audit finding of employee contracts and employee timecards missing proper approval...

Contact Person: Business Manager and Human Resource Manager Planned Corrective Action: The District currently does have processes and controls in place to ensure grant expenditures have been approved. Specific to this audit finding of employee contracts and employee timecards missing proper approvals, the Business Manager will meet with the Human Resource Manager to review the current control and approval processes for employee contracts and timecards and make changes as appropriate. Planned Completion Date: January 2025

View Audit 337094

Finding 518631 (2023-004)

Significant Deficiency 2023

Mandaree Public School District No 36

ND

Allowable Costs / Cost Principles Internal Control / Segregation of Duties

Contact Person: Business Manager and Human Resource Manager Planned Corrective Action: The District currently does have processes and controls in place to ensure grant expenditures have been approved. Specific to this audit finding of an employee contract and salary authorization forms not having pr...

Contact Person: Business Manager and Human Resource Manager Planned Corrective Action: The District currently does have processes and controls in place to ensure grant expenditures have been approved. Specific to this audit finding of an employee contract and salary authorization forms not having proper approvals, the Business Manager will meet with the Human Resource Manager to review the current control and approval processes for employee contracts and salary authorization forms and make changes as appropriate. Planned Completion Date: January 2025

View Audit 337094

Finding 518474 (2023-002)

Material Weakness 2023

Rhode Island Association of Conservation Districts

RI

Internal Control / Segregation of Duties Allowable Costs / Cost Principles Cash Management

RIACD has instituted a system by which all transactions are reviewed by the Treasurer (or a delegate), completed by the Secretary or President, and recorded by a contracted administrator. This system, instituted in early 2024, ensures adequate separation of duties to ensure that all federal funds ar...

RIACD has instituted a system by which all transactions are reviewed by the Treasurer (or a delegate), completed by the Secretary or President, and recorded by a contracted administrator. This system, instituted in early 2024, ensures adequate separation of duties to ensure that all federal funds are spent appropriately. RIACD’s current Treasurer is an experienced businessman who is knowledgeable about accounting principals and budget management, and his expertise is a credit to the Board. He recently committed to serve an addition two-year term in the role. Marcum has reviewed this new approval system and advised that it is an appropriate way to proceed with this correct action. RIACD identified Phil Moreschi, Treasurer, as the party responsible for this corrective action. You can contact Phil Moreschi and philmor54@comcast.net.

View Audit 336931

Finding 518329 (2023-002)

Significant Deficiency 2023

Community Action Team, Inc.

OR

Reporting Significant Deficiency Internal Control / Segregation of Duties

2023-002 – Federal Award Special Reporting – Real Property Status Report SF-429 0 Non-Compliance and Significant Deficiency in Internal Control Recommendation: The Organization should establish written policies and procedures regarding special reporting such as Real Property Status Reporting form S...

2023-002 – Federal Award Special Reporting – Real Property Status Report SF-429 0 Non-Compliance and Significant Deficiency in Internal Control Recommendation: The Organization should establish written policies and procedures regarding special reporting such as Real Property Status Reporting form SF-429 as well as establish organizational controls to ensure that such policies and procedures are being followed. Action Taken: We have identified gaps in our reporting processes and worked to implement changes to ensure compliance with special reporting requirements. Policies and procedures will be updated regarding special reporting requirements and ensure controls are in place for additional review of such reports prior to filing. Tracking procedures will be implemented to ensure reports are filed timely. The above identified corrective action was implemented in July 2024. Stacey Wilson, Fiscal Director, has implemented a tracking system for Real Property Reporting form SF-429.

View Audit 336686

Finding 518327 (2023-003)

Material Weakness 2023

Community Action Team, Inc.

OR

Procurement, Suspension & Debarment Subrecipient Monitoring Material Weakness § 200.303

2023-003 Federal Award Special Reporting – Federal Funding Accountability and Transparency Act (FFATA) – Material Non-Compliance and Material Weakness in Internal Controls over Compliance Recommendation: The Organization should establish written policies and procedures regarding review of grant agre...

2023-003 Federal Award Special Reporting – Federal Funding Accountability and Transparency Act (FFATA) – Material Non-Compliance and Material Weakness in Internal Controls over Compliance Recommendation: The Organization should establish written policies and procedures regarding review of grant agreements for compliance requirements along with written policies and procedures for first-tier subawards including tracking and proper internal control procedures. Action Taken: Management concurs with the finding and has defined corrective action to address it. We have identified gaps in our reporting processes and worked to implement changes to ensure compliance with special reporting requirements. Policies and procedures will be updated regarding special reporting requirements. The Fiscal department will also be responsible for reviewing all contracts to identify all compliance requirements. Tracking procedures will be implemented to ensure reports are filed timely. The above identified corrective action was implemented in July 2024. Stacey Wilson, Fiscal Director, has implemented a tracking system for the FFATA.

View Audit 336686

Finding 518276 (2023-001)

Material Weakness 2023

Greenfield School District R-IV

MO

Internal Control / Segregation of Duties HUD Housing Programs

CORRECTIVE ACTION PLAN September 14, 2023 UNITED STATES DEPARTMENT OF EDUCATION UNITED STATES DEPARTMENT OF AGRICULTURE Greenfield School District R-4 respectfully submits the following corrective action plan for the year ended June 30, 2023. Contact information for the individual responsible f...

CORRECTIVE ACTION PLAN September 14, 2023 UNITED STATES DEPARTMENT OF EDUCATION UNITED STATES DEPARTMENT OF AGRICULTURE Greenfield School District R-4 respectfully submits the following corrective action plan for the year ended June 30, 2023. Contact information for the individual responsible for the corrective action: Dr Chris Kell, Superintendent Greenfield School District, R-4 Greenfield, MO 65661 (417) 637-5321 Independent Public Accounting Firm: The CPA Group, PC, 217 4th Street, Monett, MO 65708 Audit Period: Year ended June 30, 2023 The findings from the June 30, 2023, Schedule of Findings and Questioned Costs are discussed below. The findings are numbered consistently with the numbers assigned in the schedule. FINDINGS – FINANCIAL STATEMENT AUDIT Material Weakness – Internal Control over Financial Reporting - Segregation of duties Finding 2023-001 Recommendation: We realize Because of limited resources and personnel, management may not be able to achieve a proper segregation of duties; however, our professional standards require that we bring this lack of segregation of duties to your attention in this report. Action Taken: The limited number of available personnel prohibits segregation of incompatible duties and the District does not have the resources to hire additional accounting personnel. Completion Date: Not applicable Sincerely, Dr Chris Kell, Superintendent Greenfield School District, R-4

View Audit 336619

Finding 518156 (2023-004)

Material Weakness 2023

City of Forest Park, Georgia

GA

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

Name of the Contact Person Responsible for the Corrective Action Plan: John Wiggins, Finance Director. Corrective Action Plan: The City of Forest Park will take necessary steps to ensure that the reporting requirement of the CSLFRF grant will be submitted on time to prevent noncompliance with the t...

Name of the Contact Person Responsible for the Corrective Action Plan: John Wiggins, Finance Director. Corrective Action Plan: The City of Forest Park will take necessary steps to ensure that the reporting requirement of the CSLFRF grant will be submitted on time to prevent noncompliance with the terms of the CSLFRF grant. Anticipated Completion Date: April 30, 2024

View Audit 336497

Finding 518086 (2023-001)

Significant Deficiency 2023

The Montessori Network

IL

Allowable Costs / Cost Principles Cash Management Internal Control / Segregation of Duties

Audit Recommendation: Procedures should be consistently applied requiring the reconciliation of submitted personnel activity reports to the employees' actual costs allocated and charged to federal and other programs. Planned Corrective Actions: This finding was initially identified during fiscal yea...

Audit Recommendation: Procedures should be consistently applied requiring the reconciliation of submitted personnel activity reports to the employees' actual costs allocated and charged to federal and other programs. Planned Corrective Actions: This finding was initially identified during fiscal year 2020, and corrective actions were taken by the School in 2021. To address the issue, the School implemented new procedures that require a monthly review by management, which includes a detailed reconciliation of submitted personnel activity reports to vouchers prepared for federal and other programs. This reconciliation process helps to ensure that payroll cost allocation accurately reflects the submitted personnel activity reports. In addition, the School has made changes to its payroll system to ensure accurate time tracking for its various programs. This includes changing the service provider responsible for voucher submissions. These changes will help to prevent similar issues from occurring in the future and ensure that employee-related costs are accurately allocated to the appropriate programs. As of 2022, the School has successfully implemented these changes and continues to review and monitor its procedures to maintain compliance with federal and other program regulations. Finding was repeated during FY23, as the School was in the process of transitioning accounts during the period of exceptions noted. Anticipated Completion Date: June 30, 2023 Contact Person: Rita Nolan, Executive Director

View Audit 336394

Finding 517982 (2023-001)

Material Weakness 2023

Arkansas Hospice, Inc.

AR

Reporting Internal Control / Segregation of Duties

Responsible Party: Judy Wooten, President and CEO Finding 2023-001 (UG) The Organization chose to report under the alternative reporting methodology (option iii). Under this option, the Organization submitted a memo describing its reasonable method of estimated revenues. The methodology described i...

Responsible Party: Judy Wooten, President and CEO Finding 2023-001 (UG) The Organization chose to report under the alternative reporting methodology (option iii). Under this option, the Organization submitted a memo describing its reasonable method of estimated revenues. The methodology described in the memo does not agree with the amounts the Organization reported in the portal. The Organization's calculated lost revenue under its alternative reporting methodology was approximately $2,742,000 more than the amount the Organization reported in the PRF portal. Recommendation We recommend implementing controls to ensure amounts reported are accurate, complete and reviewed. Comments on the Finding and Recommendation Management is in agreement with this finding and the related recommendation. Action(s) Taken or Planned on the Finding Management will implement controls to ensure all reports are accurate, complete, and reviewed. Estimated completion date for the above-mentioned corrective action is September 30, 2024.

View Audit 336237

Finding 517955 (2023-012)

Material Weakness 2023

Unified Government of Wyandotte County and Kansas City, Kansas

KS

Allowable Costs / Cost Principles Cash Management Material Weakness § 200.303

U.S Department of Homeland Security Staffing for Adequate Fire and Emergency Response (SAFER) – 97.083 Management’s Response: During 2024, management worked with the Fire Department and Payroll to ensure only straight time was coded to this grant and no overtime was charged to this grant. This was a...

U.S Department of Homeland Security Staffing for Adequate Fire and Emergency Response (SAFER) – 97.083 Management’s Response: During 2024, management worked with the Fire Department and Payroll to ensure only straight time was coded to this grant and no overtime was charged to this grant. This was a finding in 2022 but we were not aware until the audit was completed in 2024 there was an issue the existing payroll system was not flagging. This has been corrected in in 2024 and should not be a recurring issue. Views of Responsible Officials and Corrective Action: The reason for recurrence is the finding was communicated late in the prior year. Management will work with stakeholders so that only the allowed costs are used as the basis of the reimbursement packet. We have also created fencing around allowed costs and period of performance in our new ERP system. Management will ensure this is addressed by December 31, 2024. Responsible Official: Dr. Shelley Kneuvean Chief Financial Officer Unified Government of Wyandotte County & Kansas City KS

View Audit 336226

Finding 517916 (2023-003)

Material Weakness 2023

Afghan Medical Professionals Association of America

VA

Internal Control / Segregation of Duties

The CFO will handle all financial operations with the Treasurer and third-party non-auditor CPA reviewing on a monthly basis. A board member compliance position has been added to ensure internal control guidelines are met and reports the results to the board. Additionally, the following actions will...

The CFO will handle all financial operations with the Treasurer and third-party non-auditor CPA reviewing on a monthly basis. A board member compliance position has been added to ensure internal control guidelines are met and reports the results to the board. Additionally, the following actions will be taken:

View Audit 336179

Finding 517915 (2023-002)

Significant Deficiency 2023

Afghan Medical Professionals Association of America

VA

Allowable Costs / Cost Principles Internal Control / Segregation of Duties

All of AMPAA’s transactions are electronic using the accounting software from QuickBooks. Monthly billing invoices will either be generated through QuickBooks or uploaded into QuickBooks on the date received. When cash is deposited it will be applied against the appropriate invoice in QuickBooks. Di...

All of AMPAA’s transactions are electronic using the accounting software from QuickBooks. Monthly billing invoices will either be generated through QuickBooks or uploaded into QuickBooks on the date received. When cash is deposited it will be applied against the appropriate invoice in QuickBooks. Disbursements will be entered into QuickBooks directly. Bank account balances will be compared per trial balances with all QuickBooks transactions reconciled to the monthly bank statements. For procurement processes, all invoices will be issued and cleared through QuickBooks.

View Audit 336179

Corrective Action Plans

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