Corrective Action Plans

Finding 387872 (2023-035)

Significant Deficiency 2023

State of Maine

ME

Internal Control / Segregation of Duties Allowable Costs / Cost Principles Special Tests & Provisions § 200.303

Department: Health and Human Services Title: Internal control over SNAP EBT card security needs improvement Questioned Costs: None Status: Management’s opinion is that corrective action is not required Corrective Action: Although the Department agrees that errors were identified, these data entry er...

Department: Health and Human Services Title: Internal control over SNAP EBT card security needs improvement Questioned Costs: None Status: Management’s opinion is that corrective action is not required Corrective Action: Although the Department agrees that errors were identified, these data entry errors were clerical in nature, and do not impact the security of our returned EBT cards. The Standard Operating Procedure for processing returned EBT cards does segregate duties sufficiently. First, all returned cards are received by District Operations in the Lewiston Regional Office, and they are distributed to a separate resource for processing. Second, a clerical resource in the Lewiston office reviews the case to determine the appropriate course of action, and then subsequently takes and logs that action (in spreadsheets and in ACES). Third, the EBT manager performs quality checks on the logs to ensure the proper handling of the cards/cases. Completion Date: N/A Agency Contact: Ian Yaffe, Director, Office for Family Independence, DHHS, 207- 592-1481

View Audit 299909

Finding 387870 (2023-033)

Material Weakness 2023

State of Maine

ME

Questioned Costs Allowable Costs / Cost Principles Procurement, Suspension & Debarment § 200.303 § 200.403

Department: Health and Human Services Title: Internal control over automated SNAP eligibility certification periods needs improvement Questioned Costs: Known: $18,090 Likely: Undeterminable Status: Corrective action in progress Corrective Action: The Department has the necessary policies and procedu...

Department: Health and Human Services Title: Internal control over automated SNAP eligibility certification periods needs improvement Questioned Costs: Known: $18,090 Likely: Undeterminable Status: Corrective action in progress Corrective Action: The Department has the necessary policies and procedures in place regarding providing households with correct certification period lengths. The Department has previously identified that some household’s six-month reports would be withdrawn incorrectly, at times. Over the course of approximately three years the Department has identified the causes of this error, the final of which is scheduled to be completed June 7, 2024. Completion Date: June 7, 2024 Agency Contact: Ian Yaffe, Director, Office for Family Independence, DHHS, 207- 592-1481

View Audit 299909 Questioned Costs: $1

Finding 387868 (2023-031)

Material Weakness 2023

State of Maine

ME

Questioned Costs Allowable Costs / Cost Principles Eligibility § 200.303 § 200.403

Department: Health and Human Services Title: Internal control over SNAP eligibility determinations and benefit calculations needs improvement Questioned Costs: Known: $7,491 Likely: Undeterminable Status: Corrective action in progress Corrective Action: The management of OFI will review the operatin...

Department: Health and Human Services Title: Internal control over SNAP eligibility determinations and benefit calculations needs improvement Questioned Costs: Known: $7,491 Likely: Undeterminable Status: Corrective action in progress Corrective Action: The management of OFI will review the operating procedures to identify opportunities for improvement and distribute to all staff involved. Completion Date: June 1, 2024 Agency Contact: Ian Yaffe, Director, Office for Family Independence, DHHS, 207- 592-1481

View Audit 299909 Questioned Costs: $1

Finding 387858 (2023-003)

Material Weakness 2023

County of Fresno

CA

Questioned Costs Internal Control / Segregation of Duties

Finding 2022-003 – Coronavirus State and Local Fiscal Recovery Funds – Activities Allowed or Unallowed (Significant Deficiency) Management’s Response or Department’s Response Management agrees with the finding and recommendation. Views of Responsible Officials and Corrective Action At the time o...

Finding 2022-003 – Coronavirus State and Local Fiscal Recovery Funds – Activities Allowed or Unallowed (Significant Deficiency) Management’s Response or Department’s Response Management agrees with the finding and recommendation. Views of Responsible Officials and Corrective Action At the time of approval, the Board Agenda Item for the Congregate Setting Payment (CSP) program did not clearly state under which expenditure category this expense would fall under. Upon further research and as identified in the County’s Recovery Plan Annual Report, the CSP program should have been classified under the expenditure category for Public Health and Negative Economic Impacts (EC 3) as it addressed the negative impacts of the COVID-19 pandemic experienced by the County, by providing a retention incentive to specific positions working in congregate settings. The County will be working with the Treasury to properly categorize the payments to its correct Expenditure Category. The County will be in communication with the CAO’s office to ensure that expenditures reported in the Project and Expenditure Quarterly Reports (P&E) are in agreement with the intended expenditure categories as specified in the County’s Recovery Plan. The County will revise the CSP program to properly reflect its correct expenditure category in the next P&E Report, due July 31, 2024, for Quarter 1 2024. An agenda item will be submitted for approval to the County Board of Supervisors which will memorialize the CSP program by April 2024. Anticipated Completion Date/Completion Date April 2024 Contact Information of Responsible Official Name: George Uc Title: Principal Administrative Analyst Phone: 559-600-1231

View Audit 299892 Questioned Costs: $1

Finding 387851 (2023-002)

Significant Deficiency 2023

County of Fresno

CA

Special Tests & Provisions Allowable Costs / Cost Principles Eligibility § 200.303

Management’s Response or Department’s Response Management agrees with the finding and recommendation. Views of Responsible Officials and Corrective Action A reminder message will be sent to the appropriate staff to process Applicant IEVs within 45 days of application processing and renewals to en...

Management’s Response or Department’s Response Management agrees with the finding and recommendation. Views of Responsible Officials and Corrective Action A reminder message will be sent to the appropriate staff to process Applicant IEVs within 45 days of application processing and renewals to ensure compliance of review of IEVs report. Internal policies such as Workflows will be reviewed and updated with IEVs report processing if possible. Also, an annual IEVs refresher training will be issued to staff who are required to process them. We also intend to have multiple Eligibility Worker recruitments throughout the year to address staffing shortages/reducing vacancy rate. Anticipated Completion Date April 2024 Contact Information of Responsible Official Name: Stephanie Oakley Title: DSS Division Chief Phone: 559-600-28760

View Audit 299892

Finding 387820 (2023-005)

Significant Deficiency 2023

Hodges University, Inc.

FL

Student Financial Aid Reporting Significant Deficiency

2023-005 Common Origination and Disbursement (COD) Reporting Recommendation: We recommend that the University review their reporting policies and procedures to ensure accurate and timely reporting. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Reaso...

2023-005 Common Origination and Disbursement (COD) Reporting Recommendation: We recommend that the University review their reporting policies and procedures to ensure accurate and timely reporting. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Reason for finding: Due to unforeseen technical issues and outdated procedures. Action taken in response to finding: The University is updating the procedures and internal controls to improve the timeliness of reporting. Hodges University is also working closely with our software providers to ensure the transmittals are working in both directions, and that the systems are communicating properly. Name(s) of the contact person(s) responsible for corrective action: Olker Alva, Director of Students Financial Services, and Diana Schultz, SVP of Student Affairs and Financial Services and Provost Planned completion date for corrective action plan: Effective immediately

View Audit 299868

Finding 387819 (2023-004)

Significant Deficiency 2023

Hodges University, Inc.

FL

Questioned Costs Student Financial Aid Matching / Level of Effort / Earmarking

2023-004 Return to Title IV (R2T4) Recommendation: We recommend that the University review its policies and procedures to ensure R2T4 calculations are performed accurately. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Planned completion date for co...

2023-004 Return to Title IV (R2T4) Recommendation: We recommend that the University review its policies and procedures to ensure R2T4 calculations are performed accurately. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Planned completion date for corrective action plan: Effective immediately Reason for finding: The University policies were not in alignment with the with the federal policies and best practices. Action taken in response to finding: Hodges University is updating its policies to follow the federal policies and best practices in order to remain compliant; that update will reflect as an addendum to the catalog. Name(s) of the contact person(s) responsible for corrective action: Nicole Hurley, Director of University Registrar, Olker Alva, Director of Students Financial Services, and Diana Schultz, SVP of Student Affairs and Financial Services and Provost

View Audit 299868 Questioned Costs: $1

Finding 387816 (2023-003)

Significant Deficiency 2023

Hodges University, Inc.

FL

Questioned Costs Student Financial Aid Matching / Level of Effort / Earmarking

2023-003 240-Day Requirement for Unclaimed Checks Recommendation: We recommend that the University review its procedures related to outstanding student checks to ensure they are being returned to the Department of Education within 240 days. Explanation of disagreement with audit finding: There is no...

2023-003 240-Day Requirement for Unclaimed Checks Recommendation: We recommend that the University review its procedures related to outstanding student checks to ensure they are being returned to the Department of Education within 240 days. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Reason for finding: The University continuously attempted to refund the student checks. Action taken in response to finding: The Financial Aid and Student Accounts offices will work diligently to ensure the University's compliance with the federal regulations and deadlines regarding unclaimed properties. Name(s) of the contact person(s) responsible for corrective action: Olker Alva, Director of Students Financial Services, and Diana Schultz, SVP of Student Affairs and Financial Services and Provost Planned completion date for corrective action plan: April 30, 2024

View Audit 299868 Questioned Costs: $1

Finding 387813 (2023-001)

Significant Deficiency 2023

Chicago Urban League

IL

Reporting Internal Control / Segregation of Duties

Corrective Action Plan: We concur with this finding. While we have the proper policies and procedures in place to ensure the funds are being spent in accordance with the donor’s intent and we track some of these restricted funds in a separate general ledger account within the accounting system, we c...

Corrective Action Plan: We concur with this finding. While we have the proper policies and procedures in place to ensure the funds are being spent in accordance with the donor’s intent and we track some of these restricted funds in a separate general ledger account within the accounting system, we concur that we do not track all expenses in a separate general ledge account. Going forward we will track all restricted funds in a separate general ledger account within the Financial Edge accounting system. In addition to this, CUL will provide additional training to staff around revenue recognition. Name of contact person and title: Curtis A. Whittaker, Sr., CPA Interim CFO Anticipated Completion Date: June 30, 2024

View Audit 299852

Finding 387811 (2023-003)

Material Weakness 2023

City of Temecula

CA

Special Tests & Provisions Material Weakness Matching / Level of Effort / Earmarking § 200.303

Program: Nationally Significant Freight and Highway Projects Financial Assistance Listing Number: 20.934 Federal Agency: U.S. Department of Transportation Pass-through: California Department of Transportation Award Year: 2019 Grant Award Number: INFRALUL-5459(031) Compliance Requirements: Special Te...

Program: Nationally Significant Freight and Highway Projects Financial Assistance Listing Number: 20.934 Federal Agency: U.S. Department of Transportation Pass-through: California Department of Transportation Award Year: 2019 Grant Award Number: INFRALUL-5459(031) Compliance Requirements: Special Tests and Provisions - Wage Rate Requirements Views of Responsible Officials and Corrective Action: We concur with the finding. The City will implement controls to ensure there are procedures in place requiring the documented review of the certified payroll submitted by the construction contractors. Name of Responsible Person: Jennifer Hennessey, Director of Finance Projected Implementation Date: June 30, 2024

View Audit 299850

Finding 387793 (2023-002)

Material Weakness 2023

City of Temecula

CA

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

Program: Community Development Block Grants/Entitlement Grants Cluster Financial Assistance Listing Number: 14.218 Federal Agency: U.S. Department of Housing and Urban Development Award Year: All Grant Award Number: All Compliance Requirements: Reporting Views of Responsible Officials and Correctiv...

Program: Community Development Block Grants/Entitlement Grants Cluster Financial Assistance Listing Number: 14.218 Federal Agency: U.S. Department of Housing and Urban Development Award Year: All Grant Award Number: All Compliance Requirements: Reporting Views of Responsible Officials and Corrective Action: We concur with the finding. The City will implement procedures to include evidence documenting the individual who reviewed and approved required reports prior to submission. Name of Responsible Person: Jennifer Hennessey, Director of Finance Projected Implementation Date: June 30, 2024

View Audit 299850

Finding 387790 (2023-003)

Material Weakness 2023

Housing Authority of the City of Allentown

PA

Questioned Costs HUD Housing Programs Eligibility

Action taken in response to finding: Create a third party verification policy and procedure SOP. Name(s) of the contact person(s) responsible for corrective action: Doryan Campo Planned completion date for corrective action plan: April 2024

View Audit 299848 Questioned Costs: $1

Finding 387788 (2023-002)

Significant Deficiency 2023

Housing Authority of the City of Allentown

PA

HUD Housing Programs Significant Deficiency Internal Control / Segregation of Duties

Action taken in response to finding: Create a reasonable rent management SOP. Name(s) of the contact person(s) responsible for corrective action: Aida Núñez Planned completion date for corrective action plan: April 2024

View Audit 299848

Finding 387786 (2023-001)

Significant Deficiency 2023

Housing Authority of the City of Allentown

PA

HUD Housing Programs Reporting Significant Deficiency

Action taken in response to finding: To avoid future scheduling conflicts and delays, secure vendor several month in advance. Name(s) of the contact person(s) responsible for corrective action: Aida Núñez Planned completion date for corrective action plan: April 2024

View Audit 299848

Finding 387784 (2023-001)

Material Weakness 2023

Calumet Independent School District No. 76

OK

Subrecipient Monitoring Material Weakness Matching / Level of Effort / Earmarking

Calumet Public School will ensure that the Davis-Bacon Act is followed. The district will conduct weekly and bi-weekly payroll report reviews on contractors and subcontractors. We will ensure that federal wage rates, as well as the fringes are being properly paid. The district will also have all ...

Calumet Public School will ensure that the Davis-Bacon Act is followed. The district will conduct weekly and bi-weekly payroll report reviews on contractors and subcontractors. We will ensure that federal wage rates, as well as the fringes are being properly paid. The district will also have all the required items posted at any jobsite. We are committed to complying with the Davis-Bacon Act.

View Audit 299834

Finding 387778 (2023-002)

Material Weakness 2023

Seymour Community School Corporation

IN

Internal Control / Segregation of Duties Subrecipient Monitoring Material Weakness § 200.302 § 200.303 § 200.328 § 200.329 § 200.334

FINDING 2023-002 Finding Subject: COVID 19 – Education Stabilization Fund - Reporting Summary of Finding: Material Weakness, Other Matters. Contact Person Responsible for Corrective Action: Steve Nauman, Treasurer Contact Phone Number and Email Address: Phone: 812-522-3340 Email: naumans@scsc.k12.in...

FINDING 2023-002 Finding Subject: COVID 19 – Education Stabilization Fund - Reporting Summary of Finding: Material Weakness, Other Matters. Contact Person Responsible for Corrective Action: Steve Nauman, Treasurer Contact Phone Number and Email Address: Phone: 812-522-3340 Email: naumans@scsc.k12.in.us Views of Responsible Officials: We concur with the finding. Description of Corrective Action Plan: The SCSC management team will design and implement a proper system of internal control, including policies and procedures that would provide segregation of duties to ensure appropriate reviews, approvals and oversight are taking place prior to filing required reports. Anticipated Completion Date: The projected date of completion is February 29, 2024.

View Audit 299833

Finding 387770 (2023-001)

Material Weakness 2023

Seymour Community School Corporation

IN

School Nutrition Programs Procurement, Suspension & Debarment Internal Control / Segregation of Duties § 200.303

FINDING 2023-001 Finding Subject: Child Nutrition Cluster – Eligibility, Procurement and Suspension and Debarment , Special Tests and Provisions – Verification of Free and Reduced Price Applications (NSLP) Summary of Finding: Material Weakness Contact Person Responsible for Corrective Action: Steve ...

FINDING 2023-001 Finding Subject: Child Nutrition Cluster – Eligibility, Procurement and Suspension and Debarment , Special Tests and Provisions – Verification of Free and Reduced Price Applications (NSLP) Summary of Finding: Material Weakness Contact Person Responsible for Corrective Action: Steve Nauman, Treasurer Contact Phone Number and Email Address: Phone: 812-522-3340 Email: naumans@scsc.k12.in.us Views of Responsible Officials: We concur with the finding. Description of Corrective Action Plan: The SCSC management team will design and implement a proper system of internal control, including policies and procedures that would provide segregation of duties to ensure appropriate reviews, approvals and oversight are taking place concerning the Eligibility, Procurement and Suspension and Debarment, and Special Tests and Provisions - Verification of Free and Reduced Price Applications (NSLP) compliance requirements. Anticipated Completion Date: The projected date of completion is March 31, 2024.

View Audit 299833

Finding 387747 (2023-001)

None 2023

Eagle Lake Development Corporation

ME

Internal Control / Segregation of Duties

2023-001 Other Matter Name of contact person: Michelle Raymond, Management Agent Corrective Action: The Organization will ensure that future reserve requests are filed timely to allow adequate time for USDA Rural Development to process the request prior to the invoice due date. Management will...

2023-001 Other Matter Name of contact person: Michelle Raymond, Management Agent Corrective Action: The Organization will ensure that future reserve requests are filed timely to allow adequate time for USDA Rural Development to process the request prior to the invoice due date. Management will ensure all future checks written on the reserve account have been approved prior to issuance. Proposed implementation date: The corrective action plan will be implemented immediately.

View Audit 299827

Finding 387739 (2023-006)

Significant Deficiency 2023

Wyoming Energy Authority

WY

Subrecipient Monitoring Significant Deficiency Matching / Level of Effort / Earmarking

2023-006: Level of Effort – Supplement, Not Supplant (Significant Deficiency) Views of Responsible Officials and Planned Corrective Actions: Management concurs with the finding. The Authority will put into place a system to regularly monitor the expenditure of all Federal funds to ensure that the...

2023-006: Level of Effort – Supplement, Not Supplant (Significant Deficiency) Views of Responsible Officials and Planned Corrective Actions: Management concurs with the finding. The Authority will put into place a system to regularly monitor the expenditure of all Federal funds to ensure that the funds are not being used to supplant state funds. The SEP Manager will send a calendar invite to the Accounting Manager on a quarterly basis to review and assess all Federal fund activity. The review will be documented and signed by the Accounting Manager and the SEP Manager. Completion Date - June 2024 Contact Person - Jami Blosmo, Accounting Manager

View Audit 299811

Finding 387737 (2023-002)

Significant Deficiency 2023

Wyoming Energy Authority

WY

Internal Control / Segregation of Duties HUD Housing Programs Reporting

2023-002: Segregation of Duties (Significant Deficiency) Views of Responsible Officials and Planned Corrective Actions: Management concurs with the finding. The Authority will implement controls when feasible. In addition, the Executive Director and the Board of Directors will continue to review ...

2023-002: Segregation of Duties (Significant Deficiency) Views of Responsible Officials and Planned Corrective Actions: Management concurs with the finding. The Authority will implement controls when feasible. In addition, the Executive Director and the Board of Directors will continue to review the Accounting Manager’s monthly financials and backup documentation. Another avenue the Authority will explore is to hire an external accounting firm to review all transactions on a quarterly basis. Completion Date - June 2024 Contact Person - Jami Blosmo, Accounting Manager

View Audit 299811

Finding 387733 (2023-004)

Significant Deficiency 2023

Britton-Hecla School District No. 45-4

SD

Cash Management Reporting Significant Deficiency

Finding 2023-004 – Department of Education, Passed Though the South Dakota Department of Education Federal Financial Assistance Listing Number 84.010 – Title I Grants to Local Educational Award Number – Unknown, Award Year – 2023 Finding Summary: The School District lacks observable controls to ensu...

Finding 2023-004 – Department of Education, Passed Though the South Dakota Department of Education Federal Financial Assistance Listing Number 84.010 – Title I Grants to Local Educational Award Number – Unknown, Award Year – 2023 Finding Summary: The School District lacks observable controls to ensure reporting to the State of South Dakota Department of Education for reimbursement requests are reviewed prior to submissions being completed. Responsible Individual: Kayla Hastings, Business Manager Corrective Action Plan: The School District will have reimbursement requests be reviewed and approved by either Title I director or the assistant business manager prior to submission. Anticipated Completion Date: The above corrective actions will be implemented beginning April 1, 2024.

View Audit 299801

Finding 387723 (2023-001)

Significant Deficiency 2023

Beacon College, Inc.

FL

Student Financial Aid Matching / Level of Effort / Earmarking Internal Control / Segregation of Duties

Recommendation: We recommend the College evaluate its policies and procedures for identifying and reporting enrollment status changes to ensure that all changes are reported to NSLDS in a timely manner. Explanation of disagreement with audit finding: There is no disagreement with the audit finding....

Recommendation: We recommend the College evaluate its policies and procedures for identifying and reporting enrollment status changes to ensure that all changes are reported to NSLDS in a timely manner. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action planned/taken in response to finding: The College has recently updated their Student Information System (SIS) to a less manual program. Formerly, the College used SONIS, but as of February 2023 has moved to Jenzabar One (J1). The J1 system is more robust than the SONIS system and is interfaced with the Financial Aid Management (FAM) system the College uses – PowerFAIDS. With the capability of the systems communicating with each other, the College can implement real-time internal reconciliation that can quickly identify issues with the dates, amounts, etc. and will allow the departments to work quickly to resolve exceptions found related to compliance of the dates, amounts, etc. Since the change-over to J1, the reconciliation process has been more efficient and has allowed for quick resolution of discrepancies identified. Name(s) of the contact person(s) responsible for corrective action: Daphne Parks, Vice President of Processing at FAS; Stephanie Knight, Director of Enrollment Services & Financial Aid, Beacon College; Carrie Santaw, Registrar, Beacon College Planned completion date for corrective action plan: Completed.

View Audit 299776

Finding 387722 (2023-002)

Significant Deficiency 2023

Beacon College, Inc.

FL

Student Financial Aid Matching / Level of Effort / Earmarking Internal Control / Segregation of Duties

Recommendation: We recommend that the College review their reporting policies and procedures to ensure accurate reporting. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action planned/taken in response to finding: In Beacon’s previous student bill...

Recommendation: We recommend that the College review their reporting policies and procedures to ensure accurate reporting. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action planned/taken in response to finding: In Beacon’s previous student billing system (Sonis, in use until February 2023), Beacon had recuring difficulties posting certain transactions to student accounts, causing Financial Aid staff or the Jenzabar program administrator to work behind the scenes to get transactions entered. Since our conversion to Jenzabar J1, we have not encountered these difficulties. Secondly, a schedule of posting transactions to the student accounts has been established depending upon when the transaction is received from Financial Aid. This schedule should ensure that posting of transactions is performed timely and predictably. Name(s) of the contact person(s) responsible for corrective action: Daphne Parks, Vice President of Processing at FAS; Stephanie Knight, Director of Enrollment Services & Financial Aid, Beacon College Planned completion date for corrective action plan: Completed.

View Audit 299776

Finding 387721 (2023-002)

Significant Deficiency 2023

Housing Authority of Seymour

TX

Questioned Costs Procurement, Suspension & Debarment HUD Housing Programs

Corrective Action Plan - Online Purchases. Contact Person - Executive Director. Corrective Action Planned - The PHA will ensure that supporting documentation is maintained for all online purhases. Anticipated Completion Date - Within the next fiscal year.

View Audit 299775 Questioned Costs: $1

Finding 387720 (2023-001)

Significant Deficiency 2023

Housing Authority of Seymour

TX

Questioned Costs HUD Housing Programs Significant Deficiency

Corrective Action Plan - Unauthorized ACH Payments. Contact Person - Executive Director. Corrective Action Planned - The PHA will ensure that all ACH payments are adequately documented and approved. Anticipated Completion Date - Within the next fiscal year.

View Audit 299775 Questioned Costs: $1

Corrective Action Plans

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