Corrective Action Plans

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To properly ensure internal controls, all segregation of duties will be documented beyond what is currently being done. For additional oversight of monthly reconciliation, it will be documented that this has had a secondary review. Additionally, a board member or another individual will review month...
To properly ensure internal controls, all segregation of duties will be documented beyond what is currently being done. For additional oversight of monthly reconciliation, it will be documented that this has had a secondary review. Additionally, a board member or another individual will review monthly bank statements, invoices, and related documentation. The board will review policy and focus on stricter internal controls to prevent any form of fraud.
Finding 2025-002: Insufficient Documentation of Management Review of Section 3 Quarterly and Annual Reporting Planned Corrective Action: Management concurs with the finding. Although the related grant concluded during fiscal year 2025, the City will implement procedures to ensure that future federal...
Finding 2025-002: Insufficient Documentation of Management Review of Section 3 Quarterly and Annual Reporting Planned Corrective Action: Management concurs with the finding. Although the related grant concluded during fiscal year 2025, the City will implement procedures to ensure that future federal program reports, including any applicable Section 3 or similar compliance reports, are subject to documented management review and approval prior to submission. The procedures will require the preparer to provide each report and supporting documentation to City management for review, and evidence of approval, such as a signed review checklist, email approval, or electronic sign-off, will be retained in the grant files. The City Secretary will be responsible for ensuring that documented review and approval procedures are applied to future federal reporting requirements. Anticipated Completion Date: July 2026
2025-002 Reporting The county implemented procedures to complete review of claims and reconciliations. Planned completion date for corrective action: December 31, 2025
2025-002 Reporting The county implemented procedures to complete review of claims and reconciliations. Planned completion date for corrective action: December 31, 2025
FINDING 2025-003 Sherry Lockard, 812-283-1500, slockard@townofclarksville.com A. Coronavirus State and Local Fiscal Recovery Funds (IDOH fire dept grant) The Town concurs with the finding. INDIANA STATE BOARD OF ACCOUNTS 23 The Town will create a form for the Fire Department to use to have a second ...
FINDING 2025-003 Sherry Lockard, 812-283-1500, slockard@townofclarksville.com A. Coronavirus State and Local Fiscal Recovery Funds (IDOH fire dept grant) The Town concurs with the finding. INDIANA STATE BOARD OF ACCOUNTS 23 The Town will create a form for the Fire Department to use to have a second person review any reporting and requests for reimbursements when federal funds are involved. The form will be an attachment at the end of this document, therefore no further action is necessary.
Special Tests and Provisions California Governor’s Office of Emergency Services On December 10, 2025, Cal OES implemented communication protocol improvements by reemphasizing correct threshold applicability prior to payment during team meetings. In addition, by August 31, 2026, Cal OES will revise i...
Special Tests and Provisions California Governor’s Office of Emergency Services On December 10, 2025, Cal OES implemented communication protocol improvements by reemphasizing correct threshold applicability prior to payment during team meetings. In addition, by August 31, 2026, Cal OES will revise its Project Threshold standard operating procedure to include a review control that verifies the applicability of project thresholds, specifically the Large Project threshold, based on the appropriate timing criteria. Cal OES will also provide training to all grants processing and support staff on the revised procedure, including how to correctly identify and enter Large Project Thresholds, verify disaster data against approved sources, and apply the appropriate thresholds for specific declaration dates. Refresher training will be provided as needed thereafter. Furthermore, guidance on Large Project Thresholds will be incorporated into the onboarding process for all new staff. Estimated Implementation Date: August 2026 Contact: - Heidi Palchik, Chief, Recovery Financial Administration Branch, lnteragency Recovery Coordination Section
Special Tests and Provisions California Department of Public Health Public Health concurs with the finding that a portion of the federally-required Skilled Nursing Facility (SNF) and Intermediate Care Facility (ICF) recertification surveys were not completed within the 15.9-month requirement. Public...
Special Tests and Provisions California Department of Public Health Public Health concurs with the finding that a portion of the federally-required Skilled Nursing Facility (SNF) and Intermediate Care Facility (ICF) recertification surveys were not completed within the 15.9-month requirement. Public Health’s ability to meet survey workload was hindered by the nearly three-month federal shutdown, reduced staffing capacity due to budget constraints, and competing high-priority workloads. Surveys that were overdue in FFY 2024-25 have been prioritized in FFY 2025-26, focusing first on facilities presenting the highest risk and those with the longest intervals since their last survey. Public Health will continue prioritizing the highest-risk federal workload within the limits of available staffing and budget. The federal contract allotment has remained stagnant despite increased expectations, and reductions in state funding during SFY 2024-25 and continuing through SFY 2025-26 limit Public Health’s ability to backfill gaps with state resources. As a result, Public Health will focus surveyor efforts on Immediate Jeopardy (IJ) investigations, quality-of-care issues, access-to-careconcer, and Tier 1 workload (including SNFs and ICFs). This approach aligns with CMS’s shift toward prioritizing IJ and high-risk intakes over lower-tier recertification surveys. Public Health remains committed to completing all federal workload assignments and will strive to meet Mission and Priorities Document (MPD) and State Performance Standards Systems (SPSS) requirements to the fullest extent possible given current staffing and budget limitations. Estimated Implementation Date June 2027 Contact - Andy Barbusca, State Surveyors Branch Chief, Center for Health Care Quality, California Department of Public Health
Reporting California Department of Social Services CDSS will implement improved procedures and consider if a grant management solution would be feasible and necessary. CDSS has already begun establishing a process that determines and documents whether funding actions are reportable subrecipients or ...
Reporting California Department of Social Services CDSS will implement improved procedures and consider if a grant management solution would be feasible and necessary. CDSS has already begun establishing a process that determines and documents whether funding actions are reportable subrecipients or contractors. CDSS has also begun establishing a field within the CDSS accounting system that identifies subrecipients at the contract level so this data is automatically included when extracted for FFATA reporting, which will ensure reports are submitted accurately and timely. CDSS is also developing a Federal Reporting Dashboard to track all grants with FFATA reporting requirements, including due dates and completion status. Additionally, CDSS will designate a primary point and a backup person within the Federal Reporting Section to monitor all FFATA reporting deadlines. This designated staff member will issue 45 days advance notifications to the grant owner and reviewing manager, set calendar reminders for grant owners, and provide regular status updates to Accounting Management. To strengthen timely compliance, these reminders will also instruct grant owners to complete the FFATA submission 10 days before the federal deadline, ensuring sufficient time to resolve any errors that may occur during the upload process. Estimated Implementation Date: November 2026 Contact: - Rosali Bautista, Chief, Accounting and Reporting Bureau, Accounting and Fiscal Systems Branch, Finance and Accounting Division
Special Tests and Provisions California Department of Social Services CDSS agrees in part and disagrees in part with this finding. Section 10.1 of the State Plan, “Effective Internal Controls” which establishes the review cycle for CDSS’s monitoring activities inadvertently contains a conflicting ti...
Special Tests and Provisions California Department of Social Services CDSS agrees in part and disagrees in part with this finding. Section 10.1 of the State Plan, “Effective Internal Controls” which establishes the review cycle for CDSS’s monitoring activities inadvertently contains a conflicting timing requirement for contractor reviews. This finding is based upon the language in subsection 10.1.2 “Fiscal management practices,” which states that CDSS must conduct contract monitoring review of each contracting agency every three years. However, subsection 10.1.1 “Organizational structure to support integrity and internal controls,” and the related regulation in Title 5 California Code of Regulations Section 18023(b), both require onsite monitoring every three years, or as resources permit. Importantly, CDSS conducts an annual risk assessment and schedules monitoring visits based on both contractor risk level and time since previous review. Staffing constraints required prioritizing higher-risk contractors, which resulted in two lower-risk contractors not receiving onsite monitoring within a threeyear review cycle. This was not due to a lack of internal controls, but a strategic decision based on resource levels, level of risk, and within the allowable parameters of Subsection 10.1.1 of the State Plan. CDSS will correct this section within the State Plan to ensure that it is clear that all contract monitoring is subject to the same every three years, or as resources permit, requirement. Estimated Implementation Date: October 2027 Contact: - Jeff Fowler, Child Care Administration Bureau Chief Central Operations Branch, Child Care and Development Division
Special Tests and Provisions California Department of Social Services CDSS agrees with this finding. This was identified in the previous audit. CDSS Child Care and Development Division is working towards compliance with federal requirements for license-exempt health and safety monitoring with an ant...
Special Tests and Provisions California Department of Social Services CDSS agrees with this finding. This was identified in the previous audit. CDSS Child Care and Development Division is working towards compliance with federal requirements for license-exempt health and safety monitoring with an anticipated completion date of July 1, 2029, assuming additional resources are secured. This plan has been outlined in Appendix A of the Federal Fiscal Year 2025-27 State Plan for California with Administration of Children and Families (State Plan). The State Plan can be provided upon request. Estimated Implementation Date: July 2029 Contact: - Jeff Fowler, Child Care Administration Bureau Chief Central Operations Branch, Child Care and Development Division
Reporting California Department of Social Services CDSS agrees with this finding and has already begun developing appropriate procedures that will support this recommendation, using the CCDF program area as a model. CDSS will implement improved procedures and consider if a grant management solution ...
Reporting California Department of Social Services CDSS agrees with this finding and has already begun developing appropriate procedures that will support this recommendation, using the CCDF program area as a model. CDSS will implement improved procedures and consider if a grant management solution would be feasible and necessary. CDSS has already begun establishing a process that determines and documents whether funding actions are reportable subrecipients or contractors. CDSS has also begun establishing a field within the CDSS accounting system that identifies subrecipients at the contract level so this data is automatically included when extracted for FFATA reporting, which will ensure reports are submitted accurately and timely. CDSS is also developing a Federal Reporting Dashboard to track all grants with FFATA reporting requirements, including due dates and completion status. Additionally, CDSS will designate a primary point and a backup person within the Federal Reporting Section to monitor all FFATA reporting deadlines. This designated staff member will issue 45 days advance notifications to the grant owner and reviewing manager, set calendar reminders for grant owners, and provide regular status updates to Accounting Management. To strengthen timely compliance, these reminders will also instruct grant owners to complete the FFATA submission 10 days before the federal deadline, ensuring sufficient time to resolve any errors that may occur during the upload process. Estimated Implementation Date: November 2026 Contact: - Jeff Fowler, Child Care Administration Bureau Chief Central Operations Branch, Child Care and Development Division - Rosali Bautista, Chief, Accounting and Reporting Bureau, Accounting and Fiscal Systems Branch, Finance and Accounting Division
Reporting California Department of Social Services CDSS does not agree with this finding and its characterization as an ACF-696 reporting inaccuracy. The discrepancy between the ACF-696 and the general ledger is primarily due to timing differences. The ACF-696 was due on July 30, 2025, and relies on...
Reporting California Department of Social Services CDSS does not agree with this finding and its characterization as an ACF-696 reporting inaccuracy. The discrepancy between the ACF-696 and the general ledger is primarily due to timing differences. The ACF-696 was due on July 30, 2025, and relies on preliminary figures that were prepared before final cost allocations and accruals were posted. In contrast, the general ledger is based on the final expenditure data, including all adjustments, and finalized in September 2025. Any discrepancies or adjustments from the June 2025 quarter were reported in the following quarter. The Administration for Children and Families has confirmed with CDSS Accounting that the current practice of reflecting these adjustments in the subsequent quarter for federal reporting is acceptable. CDSS began performing the reconciliation of the ACF-696 and the general ledger following the close of FY 2024–25. However, completion of this process was delayed due to an unprecedented volume of ongoing audit activities and the significant demands associated with supporting the Department, the California Health and Human Services Agency, the continual flux of federal funding changes, and federal shutdown preparedness drills. CDSS submitted a Budget Change Proposal in response to the previous audit finding 2024-015 to complete this reconciliation between ACF-696 and the general ledger. This request has been approved, and we are in the process of hiring for this position. Once this position is filled, responsibility for the reconciliation activities will be transferred to the newly assigned staff member to ensure consistent oversight, timely completion, and ongoing maintenance of the reconciliation process. Estimated Implementation Date: September 2026 Contact: - Rosali Bautista, Chief, Accounting and Reporting Bureau, Accounting and Fiscal Systems Branch, Finance and Accounting Division
Reporting California Department of Social Services CDSS does not agree with this finding that the FFATA reporting deadline was not met for the subaward reporting for all 58 counties for the Foster Care grant. The FFY 2025 FFATA report was originally submitted on November 27, 2024, which met the fede...
Reporting California Department of Social Services CDSS does not agree with this finding that the FFATA reporting deadline was not met for the subaward reporting for all 58 counties for the Foster Care grant. The FFY 2025 FFATA report was originally submitted on November 27, 2024, which met the federal submission deadline of November 30, 2024. During this initial submission, however, data lines for two counties failed to upload into the legacy FSRS.gov system and required additional research. The corrected data was subsequently submitted on December 10, 2024. Since that time, FSRS.gov has migrated to SAM.gov, and the new system only displays the most recent submission date as the official record. It appears that SAM.gov does not retain or display the historical log of submissions FSRS.gov. As a result, the system reflects only the December 10 submission date, even though the original, timely submission occurred on November 27, 2024. CDSS is developing a Federal Reporting Dashboard to track all grants with FFATA reporting requirements, including due dates and completion status. Additionally, CDSS will designate a primary point and a backup person within the Federal Reporting Section to monitor all FFATA reporting deadlines. This designated staff member will issue 45 days advance notifications to the grant owner and reviewing manager, set calendar reminders for grant owners, and provide regular status updates to Accounting Management. To strengthen timely compliance, these reminders will also instruct grant owners to complete the FFATA submission 10 days before the federal deadline, ensuring sufficient time to resolve any errors that may occur during the upload process. Estimated Implementation Date: November 2026 Contact: - Rosali Bautista, Chief, Accounting and Reporting Bureau, Accounting and Fiscal Systems Branch, Finance and Accounting Division
Special Tests and Provisions Employment Development Department EDD has current policies, procedures, and training in place instructing employees to include applicable penalty amounts when establishing overpayments in the database. When the overpayment for the sample in question was established, the ...
Special Tests and Provisions Employment Development Department EDD has current policies, procedures, and training in place instructing employees to include applicable penalty amounts when establishing overpayments in the database. When the overpayment for the sample in question was established, the employee did not follow proper procedure to include the penalty. EDD accepts this oversight and is committed to reviewing its applicable policies and procedures to ensure they are clear, and the penalty requirements are emphasized. Regarding internal controls, EDD leverages a process known as the Field Office Basic Evaluation System (FOBES). This process includes a standardized form that is utilized by leadership to evaluate the quality of their employees’ work in a variety of processes, including overpayment processing. EDD continues to review and modernize the existing assessment form and FOBES process to ensure effectiveness and consistency while evaluating employee compliance with policies and procedures. EDD will enhance current procedures to outline the steps for reviewing claimant eligibility and applying disqualification penalties by: - Updating procedures in the various resources available for our determination false statement processes to include more comprehensive guidance. - Providing updated training for employees on any changes to procedures. Milestones: - Update UI Manuals by 8/14/2026. - Engage with UIB training team to update overpayment-related training and create a new refresher training by 8/14/2026. - Evaluate when a refresher training can be presented to determination trained employees by 8/14/2026. - Provide updated milestone to DOL by 9/30/2026. Estimated Implementation Date: September 2026 Contact: - Diane Underwood, Division Chief, Unemployment Insurance Branch
Reporting California Department of Social Services California Department of Social Services (CDSS) agrees with this finding. CDSS is developing a Federal Reporting Dashboard to monitor all federal reporting requirements, including due dates and completion status. This dashboard will be used by both ...
Reporting California Department of Social Services California Department of Social Services (CDSS) agrees with this finding. CDSS is developing a Federal Reporting Dashboard to monitor all federal reporting requirements, including due dates and completion status. This dashboard will be used by both staff and management to track upcoming deadlines and ensure timely submission of all federal reports. While the dashboard is still in development, the preparer and reviewer of the FNS-46 have implemented interim controls by setting calendar reminders for the FNS-46 reporting deadlines. Estimated Implementation Date: October 2026 Contact: - Rosali Bautista, Chief, Accounting and Reporting Bureau, Accounting and Fiscal Systems Branch, Finance and Accounting Division
Management Response: HRCSF became an independent 501(c)(3) organization following decades of operation under a fiscal sponsor. During the transition, the organization inherited certain administrative and payroll practices, including the timing of timesheet approvals. As management continued to forma...
Management Response: HRCSF became an independent 501(c)(3) organization following decades of operation under a fiscal sponsor. During the transition, the organization inherited certain administrative and payroll practices, including the timing of timesheet approvals. As management continued to formalize internal policies and procedures following independence, this practice was identified and corrected. Effective May 2025, management transitioned from a semi-monthly payroll schedule to a bi-weekly payroll schedule and revised its payroll calendar, timesheet procedures, and approval deadlines to ensure timesheets are completed and approved after the close of each pay period. These corrective actions were implemented during the fiscal year under review and prior to the issuance of this finding. Management disagrees with the characterization of this matter as a material weakness in internal control over payroll. The condition identified relates to the timing of timesheet approval and documentation rather than a breakdown in controls over payroll accuracy, payroll disbursements, or federal compliance. Employees were compensated based on approved compensation rates, and payroll costs charged to grants were subject to multiple compensating controls. In addition,grant invoicing was performed, on average, approximately three weeks after close of the applicable service period, allowing sufficient time for payroll review, reconciliation, and correction of any identified discrepancies, and appropriate allocation of labor costs to grants. Extensive audit testing of FY25 of payroll transactions and federal expenditures identified no unsupported payroll charges, questioned costs, employee overpayments, or material compliance exceptions related to this condition. Management is likewise unaware of any instance in which such issues occurred. Management believes this matter is more appropriately characterized as a procedural control deficiency mitigated by compensating controls that was remediated during FY2024-2025 and did not result in material noncompliance or material misstatement. Management will continue to monitor compliance with the revised payroll procedures to ensure effectiveness of internal controls over payroll processing. Anticipated Completion Date: Implemented May 2025 Responsible Officials: Ileana Mar, HRCSF, Finance & Operations Director Neelam Kumar, HRCSF, Director of People & Culture Maria Zamudio, HRCSF, Executive Director
To Federal Awarding Agency The City of Osseo, Wisconsin respectfully submits the following corrective action plan for the year ended December 31, 2025. Audit period: January 1, 2025 - December 31, 2025 The findings from the schedule of findings and questioned costs are discussed below. The findings ...
To Federal Awarding Agency The City of Osseo, Wisconsin respectfully submits the following corrective action plan for the year ended December 31, 2025. Audit period: January 1, 2025 - December 31, 2025 The findings from the schedule of findings and questioned costs are discussed below. The findings are numbered consistently with the numbers assigned in the schedule. FINDINGS—FINANCIAL STATEMENT AUDIT MATERIAL WEAKNESSES 2025-001 Limited Segregation of Duties Recommendation: The City should continue to evaluate its staffing in order to segregate incompatible duties whenever possible. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action planned in response to finding: The City will continue to work to achieve segregation of duties whenever cost effective. Name(s) of the contact person(s) responsible for corrective action: Stephanie Nelson, Clerk/Treasurer. Planned completion date for corrective action plan: The activities outlined above will be completed by December 31, 2025. 2025-002 Material Audit Adjustments Recommendation: The City should continue to evaluate its internal control processes to determine if additional internal control procedures should be implemented to ensure that accounts are adjusted to their appropriate year end balances in accordance with Generally Accepted Accounting Principles (GAAP). Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action planned in response to finding: The City will continue to rely upon the audit firm to propose audit adjustments necessary to adjust accounts in accordance with GAAP. Management will review and approve these entries prior to recording them. Name(s) of the contact person(s) responsible for corrective action: Stephanie Nelson, Clerk/Treasurer. Planned completion date for corrective action plan: The activities outlined above will be completed by December 31, 2025. 2025-003 Annual Financial Reporting under Generally Accepted Accounting Principles (GAAP) Recommendation: The City should continue to evaluate its internal staff and expertise to determine if an internal control policy over the annual financial reporting is beneficial. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action planned in response to finding: The City will continue to rely upon the audit firm to prepare the annual financial statements and related footnote disclosures in accordance with GAAP. Management will review, approve and accept responsibility for these financial statements and related footnote disclosures prior to issuance. Name(s) of the contact person(s) responsible for corrective action: Stephanie Nelson, Clerk/Treasurer. Planned completion date for corrective action plan: The activities outlined above will be completed by December 31, 2025. 2025-004 Procurement Policy Recommendation: The City should be familiar with compliance requirements outlined by Uniform Guidance and design controls to ensure procurement requirements are met. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action planned in response to finding: The City will review procurement policies and procedures and adopt necessary changes to meet the requirements of Uniform Guidance. Name(s) of the contact person(s) responsible for corrective action: Stephanie Nelson, Clerk/Treasurer. Planned completion date for corrective action plan: The activities outlined above will be completed by December 31, 2025. Any questions regarding these corrective action plans can be directed to Stephanie Nelson, Clerk/Treasurer, 13712 8th Street, Osseo, WI 54758 or 715-597-2207.
The Corporation contacted the local Continuum of Care and regional HUD office in an effort to verify the required number of units occupied by individuals meeting the definition of "homeless". The local Continuum of Care had no record of the original grant agreement or required number of "homeless" t...
The Corporation contacted the local Continuum of Care and regional HUD office in an effort to verify the required number of units occupied by individuals meeting the definition of "homeless". The local Continuum of Care had no record of the original grant agreement or required number of "homeless" to be served. The Corporation contacted three staff in the regional HUD office, including the staff that had been our representative for annually renewed operation and support service grants for the project. Regional HUD staff were not able to provide a copy of the original grant agreements which would indicate the number of persons to be served by each project. HUD staff stated that they do not keep copies of grant agreements longer than seven years. Corporation management will continue to work with HUD personnel to determine the continuing compliance requirements of the Continuum of Care funding received for initial construction or rehabilitation. Corporation management will continue to serve individuals meeting the definition of homelessness at its project and document evidence in the files.
FINDING 2025-002 Finding Subject: COVID-19 – Coronavirus State and Local Fiscal Recovery Funds – Reporting Contact Person Responsible for Corrective Action: Angela Hamrick Contact Phone Number and Email Address: 260-748-7012 ahamrick@newhaven.in.gov Views of Responsible Officials: We concur with the...
FINDING 2025-002 Finding Subject: COVID-19 – Coronavirus State and Local Fiscal Recovery Funds – Reporting Contact Person Responsible for Corrective Action: Angela Hamrick Contact Phone Number and Email Address: 260-748-7012 ahamrick@newhaven.in.gov Views of Responsible Officials: We concur with the finding Description of Corrective Action Plan: When completing the Annual P & E report I will add an internal control of a separate employee reviewing the information to make sure the correct expenditures are listed within the correct period. We will have each employee who reviews the information to sign the completed report. Anticipated Completion Date: 6/24/26 INDIANA STATE
FINDING 2025-001 Finding Subject: COVID-19 – Coronavirus State and Local Fiscal Recovery Funds – Reporting Contact Person Responsible for Corrective Action: Angela Hamrick Contact Phone Number and Email Address: 260-748-7012 ahamrick@newhaven.in.gov Views of Responsible Officials: We concur with the...
FINDING 2025-001 Finding Subject: COVID-19 – Coronavirus State and Local Fiscal Recovery Funds – Reporting Contact Person Responsible for Corrective Action: Angela Hamrick Contact Phone Number and Email Address: 260-748-7012 ahamrick@newhaven.in.gov Views of Responsible Officials: We concur with the finding Description of Corrective Action Plan: I have reviewed the 2026 Baker Tilly Monthly Project Spending Reports and have had my Accounts Payables verify each of the monthly reports to our computer data to verify the amounts are correct. She has signed off on the reports that they were verified. I also emailed our contact at Baker Tilly and let them know we were told the incorrect information on how to file these reports with them and going forward two signatures would be required on the form. If we have any additional projects similar to this one I will include two signatures for verification on the form. Anticipated Completion Date: 6/24/26 INDIANA STATE
Finding Number: 2025-003 Name of Responsible Party: JaShawn Hill, Executive Director Corrective Action: Management acknowledges and agrees with the finding. This issue resulted from a reduction in force during which various employees’ final workday coincided with the end of a payroll period. While e...
Finding Number: 2025-003 Name of Responsible Party: JaShawn Hill, Executive Director Corrective Action: Management acknowledges and agrees with the finding. This issue resulted from a reduction in force during which various employees’ final workday coincided with the end of a payroll period. While employees typically have around one week to submit their timesheets after the end of a pay period, the employees that were let go from the organization did not finalize their information before leaving. In the future, management will ensure that all timesheets are submitted on the final day of employment as a part of the last day procedures. Anticipated Completion Date: July 31, 2026
Management will continue strengthening accounting practices and internal controls over federal funds transactions to promote accurate, complete, and timely financial information. Management will also coordinate with the Puerto Rico Department of the Treasury to facilitate timely recording of remitta...
Management will continue strengthening accounting practices and internal controls over federal funds transactions to promote accurate, complete, and timely financial information. Management will also coordinate with the Puerto Rico Department of the Treasury to facilitate timely recording of remittances in PRIFAS and to support implementation and use of processes/system functionality that enables timely preparation of financial reports required by oversight entities.
The Organization should implement an effective monitoring system to keep track of the compliance calendar, which includes financial reporting deadlines, and automatic reminders in advance of each deadline to aid in properly planning and timing submission of reporting packages. Additionally, the Orga...
The Organization should implement an effective monitoring system to keep track of the compliance calendar, which includes financial reporting deadlines, and automatic reminders in advance of each deadline to aid in properly planning and timing submission of reporting packages. Additionally, the Organization should engage the audit firm well before the fiscal year end. The Organization should establish a timeline with the auditors that aligns with internal deadlines to ensure sufficient time to conduct the audit. Additionally, the Organization should implement a system that will file documents in an organized manner and make them easily accessible to the Organization and auditors. Furthermore, the Organization’s Board of Directors should be more actively engaged in the auditing and reporting process to establish a greater degree of accountability and oversight.
Corrective Action Planned: Due to the Authority's size, it is cost-prohibitive and impractical to achieve the ideal level of segregation of duties. The Authority has implemented as many controls and segregation of duties as practically possible for an organization of this size. Completion Date: Ongo...
Corrective Action Planned: Due to the Authority's size, it is cost-prohibitive and impractical to achieve the ideal level of segregation of duties. The Authority has implemented as many controls and segregation of duties as practically possible for an organization of this size. Completion Date: Ongoing
Finding 2025-005 Federal Agency: U.S. Department of Housing and Urban Development Federal Program Titles: Public Housing Capital Fund Program Federal Assistance Listing Numbers: 14.872 Noncompliance - C. Cash Management Non Compliance Material to the Financial Statements: No Significant deficiency i...
Finding 2025-005 Federal Agency: U.S. Department of Housing and Urban Development Federal Program Titles: Public Housing Capital Fund Program Federal Assistance Listing Numbers: 14.872 Noncompliance - C. Cash Management Non Compliance Material to the Financial Statements: No Significant deficiency in Internal Control over Compliance for Cash Management Criteria: In accordance with 2 CFR 200.305, payment methods for federal awards must minimize the time elapsing between the transfer of federal funds and the disbursement of those funds by the recipient. Federal funds drawn under the Public Housing Capital Fund Program should be limited to amounts needed to meet the Authority’s immediate cash requirements for allowable program expenditures. Accordingly, the Authority should implement procedures to ensure grant funds are not drawn in advance of actual or imminent eligible expenditures. Condition: The Authority drew down federal funds in advance of immediate cash needs for allowable program expenditures. As of year end, a portion of the funds drawn remained unexpended and was reported as unearned revenue in the financial statements. This indicates that federal funds were received prior to the incurrence of eligible expenditures. Context: During review of the financial statements, the Authority was noted to have unexpended federal funds on hand at year end that had been drawn prior to the disbursement of allowable program costs. Specifically, amounts recorded as unearned revenue represented federal funds received in advance of immediate cash needs. This condition was identified through review of drawdown activity, general ledger balances, and year end financial reporting records. Known Questioned Costs: $134,883. Cause: The Authority did not have adequate internal controls in place to monitor the timing of grant drawdowns in relation to actual program cash needs and allowable expenditures. As a result, federal funds were requested and received prior to the incurrence of eligible costs under the Public Housing Capital Fund Program. Effect: The Authority was not in compliance with federal cash management requirements governing the timing of federal fund drawdowns. As a result, federal funds were held in advance of immediate cash needs, increasing the risk of improper cash management and noncompliance with Uniform Guidance and HUD requirements. Recommendation: We recommend the Authority strengthen its internal controls over cash management to ensure federal funds are drawn only for immediate cash needs related to allowable program expenditures. Management should implement monitoring and review controls over grant drawdown activity, including periodic reconciliation of drawdowns to incurred expenditures, to ensure compliance with 2 CFR 200.305 and HUD requirements. Authority's Response: The Authority accepts the recommendation of the auditor. The Authority will increase oversight in the Public Housing Capital Fund Program to ensure that established internal control policies are being followed on a timely basis. Ralph Staley, CFO is responsible for ensuring proper internal controls are in place to prevent significant deficiencies and material weaknesses from occurring and is expected to be completed by December 31, 2026.
CORRECTIVE ACTION PLAN FINDING 2025-002 Finding Subject: COVID-19- Coronavirus State and Local Fiscal Recovery Funds Contact Person Responsible for Corrective Action: Valeriano F. Gomez Contact Phone Number and Email Address: 219-391-8220 Views of Responsible Officials: Option 1: “We concur with the...
CORRECTIVE ACTION PLAN FINDING 2025-002 Finding Subject: COVID-19- Coronavirus State and Local Fiscal Recovery Funds Contact Person Responsible for Corrective Action: Valeriano F. Gomez Contact Phone Number and Email Address: 219-391-8220 Views of Responsible Officials: Option 1: “We concur with the finding.” Description of Corrective Action Plan: Previous corrective action read as follows: To ensure proper implementation of the policies and procedures in place related to SLFRF reporting, in future, no submittal of reports will be approved without the City Controller and a Senior Staff Accountant reviewing and approving the P & E reports…… issue arose when City Departments responsive for entering data in P & E reports and Staff Accountant documentation differed , adding to issue both groups were not together in same room to assist each other with reporting . Corrective Action Plan: 1. All future SLFRF Quarterly reports shall require advance meetings before the data entering day; to ensure correct reporting. Meetings shall include all personnel reviewing and entering information (City department personnel and Controllers office personnel, to include two from the Controller’s Office; Controller, or Deputy City Controller and Senior City Accountant. 2. These Staff meeting shall address any differences in reporting documentation, and prepare for any editing and revising data to correct issues from previous P & E reporting, in next available report (Sec. V. Editing and Revising Data P & E Report User Guide) 3. No data shall be entered / submitted on entry day for future Quarterly P & E reports without Controller personnel present and having reviewed and confirmed data. Anticipated Completion Date: Controllers Office and City Departments involved in reporting are presently working to address and correct issues in past reporting, completion is anticipated when upcoming 2nd Quarterly Report for 2026 is opened and issues are addressed.
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