Corrective Action Plans

Finding 381230 (2023-001)

Significant Deficiency 2023

Whittier College

CA

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

The Financial Aid Office concurs with the audit finding of the monthly SAS reconciliation requirement to be done internally was not in compliance. Whittier College Financial Aid Staff failed to send the SAS files monthly to our Accounting Department for reconciliation. As of September 2023, Whitti...

The Financial Aid Office concurs with the audit finding of the monthly SAS reconciliation requirement to be done internally was not in compliance. Whittier College Financial Aid Staff failed to send the SAS files monthly to our Accounting Department for reconciliation. As of September 2023, Whittier College Financial Aid Office has calendared a monthly reconciliation report to be sent to the Accounting Department to meet the guidelines set forth by the Department of Education. This reconciliation report will be sent monthly through out the calendar year. In the summer months of June and July we may not have any funds to reconcile, however, a report will be sent regardless for compliance. Person Responsible: Jesse Marquez, Associate Director and Information Specialist of Financial Aid Anticipated Completion Date: Implemented as of September 2023

View Audit 295948

Finding 381226 (2023-004)

Significant Deficiency 2023

Municipality of Vega Baja

PR

Subrecipient Monitoring Reporting Significant Deficiency

Audit Report: Reports on Compliance and Internal Control in Accordance with Government Auditing Standards and OMB Super Circular Uniform Guidance Audit Period: July 1, 2022 – June 30, 2023 Fiscal Year: 2022-2023 Principal Exe...

Audit Report: Reports on Compliance and Internal Control in Accordance with Government Auditing Standards and OMB Super Circular Uniform Guidance Audit Period: July 1, 2022 – June 30, 2023 Fiscal Year: 2022-2023 Principal Executive: Hon. Marcos Cruz Molina, Mayor Contact Person: Mr. Edgardo Pérez, Department of Management, Administration and Budget Director Phone: (787)855-2500 Original Finding Number: 2023-004 Statement of Concurrence or Non concurrence: We concur with the finding. Corrective Action: As an internal control, the accountant in charge of the program will keep monthly reports of the expenditures to expedite the collection of information and submit timely and complete reports. The documentation of the reports will be physically filed and digitally saved in the accounting files. Implementation Date: Fiscal Year 2023-2024. Responsible Person: José A. Mathews Maisonet Accountant

View Audit 295939

Finding 381224 (2023-003)

Significant Deficiency 2023

Municipality of Vega Baja

PR

Subrecipient Monitoring Reporting Significant Deficiency § 200.302 § 200.328 § 200.329

Audit Report: Reports on Compliance and Internal Control in Accordance with Government Auditing Standards and OMB Super Circular Uniform Guidance Audit Period: July 1, 2022 – June 30, 2023 Fiscal Year: 2022-2023 Principal Exe...

Audit Report: Reports on Compliance and Internal Control in Accordance with Government Auditing Standards and OMB Super Circular Uniform Guidance Audit Period: July 1, 2022 – June 30, 2023 Fiscal Year: 2022-2023 Principal Executive: Hon. Marcos Cruz Molina, Mayor Contact Person: Mr. Edgardo Pérez, Department of Management, Administration and Budget Director Phone: (787)855-2500 Original Finding Number: 2023-003 Statement of Concurrence or Non concurrence: We concur with the finding. Corrective Action: The QPR Reports for the months from January to March 2023, were completed by the previous POC Recovery Office. We understand that expenses were reported in the QPR on the date when the certification with the contractor´s invoice was received at the Secretary of Engineering and Conservation of Infrastructure and not on the date of payment or disbursement of the invoice. For example, if the invoice was received in the month of February, the expense was recorded in the QPR from January to March even though it was not paid until the month of April. We are verifying each project reported in the QPR against the amount reported at the SIMA System. We expect to have updated and correct information for all the Quarterly Progress Reports for the period from January to March 2024. Implementation Date: Fiscal Year 2023-2024. Responsible Person: Dafne L. Claudio Sánchez Accountant

View Audit 295939

Finding 381223 (2023-002)

Significant Deficiency 2023

Municipality of Vega Baja

PR

Subrecipient Monitoring Reporting Significant Deficiency § 200.1

Audit Report: Reports on Compliance and Internal Control in Accordance with Government Auditing Standards and OMB Super Circular Uniform Guidance Audit Period: July 1, 2022 – June 30, 2023 Fiscal Year: 2022-2023 Principal Exe...

Audit Report: Reports on Compliance and Internal Control in Accordance with Government Auditing Standards and OMB Super Circular Uniform Guidance Audit Period: July 1, 2022 – June 30, 2023 Fiscal Year: 2022-2023 Principal Executive: Hon. Marcos Cruz Molina, Mayor Contact Person: Mr. Edgardo Pérez, Department of Management, Administration and Budget Director Phone: (787)855-2500 Original Finding Number: 2023-002 Statement of Concurrence or Non concurrence: We concur with the finding. Corrective Action: During the quarters from January to March and April to June 2023, there were differences between the reports submitted to the Treasury Department and the accounting reports of the SIMA system. This happened because obligations that were cancelled were included in the submitted reports and not corrected within the corresponding quarter. The personnel assigned to work on the quarterly reports became aware of these situations after the submission of the reports. As a corrective measure, an internal work sheet was created where monthly cancellations and adjustments are verified. In this way, the quarterly report submitted to the Treasury Department will agree with the accounting system. Before submitting the reports, a meeting is held to validate that the worksheet is in accordance with the accounting system. After validating the accuracy of the worksheet, the report is submitted to the Treasury Department with information consistent with the accounting system. As of today, the differences identified have been corrected in subsequent quarters. Implementation Date: Fiscal Year 2023-2024. Responsible Person: Bárbara Castro Viruet Accountant

View Audit 295939

Finding 381216 (2023-003)

Significant Deficiency 2023

San Diego Community College District

CA

Reporting Significant Deficiency Internal Control / Segregation of Duties § 200.328 § 200.329

We concur. Procedures will be put in place and reporting will be modified and improved to ensure deadlines are met.

View Audit 295932

Finding 381210 (2023-002)

Significant Deficiency 2023

San Diego Community College District

CA

Student Financial Aid Reporting Significant Deficiency

We concur. The enrollment file reported to NSLDS is submitted on behalf of the District by the National Student Clearinghouse (NSC). Contact will be made to ensure NSC accurately reports these entries on our behalf.

View Audit 295932

Finding 381209 (2023-003)

Significant Deficiency 2023

Volunteers of America, Utah

UT

Period of Performance Significant Deficiency Internal Control / Segregation of Duties § 200.303

Finding Summary: In connection with the audit procedures performed, it was noted that there was one expenditure amount that was incurred prior to the period of performance. Responsible Individuals: Christa Beauchat, Chief Financial Officer Corrective Action Plan: Management is revising its processes...

Finding Summary: In connection with the audit procedures performed, it was noted that there was one expenditure amount that was incurred prior to the period of performance. Responsible Individuals: Christa Beauchat, Chief Financial Officer Corrective Action Plan: Management is revising its processes to ensure that an adequate review of the period of performance is occurring over the expenditures of each federal award contract (verification that any expenditure charged to a federal award has actually been incurred during the federal award’s contract period). Anticipated Completion Date: Ongoing

View Audit 295925

Finding 381207 (2023-001)

Significant Deficiency 2023

Volunteers of America, Utah

UT

Internal Control / Segregation of Duties

Finding Summary: In connection with the audit procedures performed, audit adjustments were required to properly reflect: 1) accounts receivable and revenue, and 2) construction in progress and the amounts payable related to the construction at year‐end. The Organization’s system of internal controls...

Finding Summary: In connection with the audit procedures performed, audit adjustments were required to properly reflect: 1) accounts receivable and revenue, and 2) construction in progress and the amounts payable related to the construction at year‐end. The Organization’s system of internal controls did not include controls to apply cutoff in the affected areas and properly reflect certain transactions in the financial statements. The Organization’s system of internal control over the preparation of the financial statements did not detect errors. Responsible Individuals: Christa Beauchat, Chief Financial Officer Corrective Action Plan: Management is revising its processes to address the areas with audit adjustments to ensure they are not repeated in the future, including a more detailed and thorough review (by management) of account balances prior to the audit. Anticipated Completion Date: 04/30/2024

View Audit 295925

Finding 381202 (2023-003)

Material Weakness 2023

Borden-Henryville School Corporation

IN

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

FINDING 2023-003 Subject: Child Nutrition Cluster - Internal Controls Federal Agency: Department of Agriculture Federal Programs: School Breakfast Program, National School Lunch Program COVID-19 - National School Lunch Program Assistance Listings Numbers: 10.553, 10.555 Federal Award Numbers and Yea...

FINDING 2023-003 Subject: Child Nutrition Cluster - Internal Controls Federal Agency: Department of Agriculture Federal Programs: School Breakfast Program, National School Lunch Program COVID-19 - National School Lunch Program Assistance Listings Numbers: 10.553, 10.555 Federal Award Numbers and Years (or Other Identifying Numbers): SY22, SY23 Pass-Through Entity: Indiana Department of Education Compliance Requirements: Eligibility, Special Tests and Provisions - Verification of Free and Reduced Price Applications (NSLP), Special Tests and Provisions - Non-Profit School Food Service Accounts Audit Finding: Material Weakness Condition and Context The School Corporation had not established effective internal controls that would likely be effective in preventing, or detecting and correcting, noncompliance. Eligibility The School Corporation's policy is to have the Treasurer review and initial paper applications processed by the individual school treasurers to ensure that the eligibility determination was correct. However, six of the ten applications tested lacked documentation of this review. In addition, there was no internal control in place over applications submitted online. INDIANA STATE BOARD OF ACCOUNTS 18 BORDEN-HENRYVILLE SCHOOL CORPORATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS (Continued) Special Tests and Provisions - Verification of Free and Reduced Price Applications (NSLP) The Treasurer performed the verification of free and reduced price applications without a documented review or oversight process in place to ensure that applications selected for verification were in compliance with requirements related to the program. Special Tests and Provisions - Non-Profit School Food Service Accounts The School Corporation did not have an internal control in place to ensure that reimbursements for meals served were properly credited to the School Lunch fund. The lack of internal controls for Eligibility and Special Tests and Provisions - Verification of Free and Reduced Price Applications (NSLP) was isolated to the second year of the audit period. The lack of internal controls over Special Tests and Provisions - School Food Accounts was systemic throughout the audit period. Criteria 2 CFR 200.303 states in part: "The non-Federal entity must: (a) 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 be in compliance 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). . . ." Cause A proper system of internal controls was not designed by management of the School Corporation, which would include segregation of key functions. Embedded within a properly designed and implemented internal control system should be internal controls consisting of policies and procedures. Policies reflect the School Corporation's management statements of what should be done to effect internal controls, and procedures should consist of actions that would implement these policies. Effect Without the proper design or implementation of the components of a system of internal controls, including policies and procedures that provide segregation of duties and additional oversight as needed, the internal control system cannot be capable of effectively preventing, or detecting and correcting, material noncompliance. Questioned Costs There were no questioned costs identified. INDIANA STATE BOARD OF ACCOUNTS 19 BORDEN-HENRYVILLE SCHOOL CORPORATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS (Continued) Recommendation We recommended that management of the School Corporation design and implement a proper system of internal controls, including policies and procedures that would provide segregation of duties to ensure appropriate reviews, approvals, and oversight are taking place. Views of Responsible Officials For the views of responsible officials, refer to the Corrective Action Plan that is part of this report.

View Audit 295924

Finding 381194 (2023-002)

Material Weakness 2023

The Phalen Leadership Academy - Indiana, Inc.

MA

Questioned Costs Special Tests & Provisions Subrecipient Monitoring § 200.303

Special Tests and Provisions Education Stabilization Fund: Assistance Listing No. 84.425 Recommendation: We recommend that for future construction contracts financed by federal education funds PLA verify that subcontractors comply with prevailing wage requirements. Explanation of disagreement with a...

Special Tests and Provisions Education Stabilization Fund: Assistance Listing No. 84.425 Recommendation: We recommend that for future construction contracts financed by federal education funds PLA verify that subcontractors comply with prevailing wage requirements. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: PLA will train operations and business office staff on the compliance requirements under Davis-Bacon to ensure construction contracts are entered into with qualified contractors and obtain and retain appropriate certified payroll documentation during the construction period. Name(s) of the contact person(s) responsible for corrective action: Carlo Hershberger, Director of Finance and Accounting; Javier Dimas, Vice-President of Operations; Martha Arellano, Procurement Manager and Buyer Planned completion date for corrective action plan: April 1, 2024 If the United States Department of Education has questions regarding this plan, please call Eva Spilker, Chief Financial Officer, at 410-598-3087.

View Audit 295918 Questioned Costs: $1

Finding 381188 (2023-005)

Material Weakness 2023

Noblesville Schools

IN

Questioned Costs School Nutrition Programs Material Weakness § 200.303

FINDING 2023-005 Subject: Child Nutrition Cluster (CNC) – Internal Controls Federal Agency: Department of Agriculture Federal Program: School Breakfast Program, National School Lunch Program Assistance Listing Number: 10.553, 10.555 Pass-Through Entity: Indiana Department of Education Compliance Req...

FINDING 2023-005 Subject: Child Nutrition Cluster (CNC) – Internal Controls Federal Agency: Department of Agriculture Federal Program: School Breakfast Program, National School Lunch Program Assistance Listing Number: 10.553, 10.555 Pass-Through Entity: Indiana Department of Education Compliance Requirement: Reporting Audit Findings: Material Weakness Condition: An effective internal control system was not in place at the School Corporation in order to ensure compliance with requirements related to the grant agreement and the Reporting compliance requirements. Context: During testing of reporting, we identified a control breakdown in the claim submission process. Although student meal data is summarized at the school level and reviewed by both the Food Services Bookkeeper and the Food Services Director, there is not a review of the actual claim submission prior to being submitted to the portal. Due to the breakdown in controls, we identified that the October 2022 revision claim overstated breakfasts served by 10 meals. Views of Responsible Official: We concur with the finding. Description of Corrective Action Plan: The Director of Food Services will input the monthly claims into the state reporting system. This will be checked by the bookkeeper prior to submission to ensure data was entered correctly. Responsible Party and Timeline for Completion: Beginning January 2024

View Audit 295916 Questioned Costs: $1

Finding 381185 (2023-004)

Material Weakness 2023

Noblesville Schools

IN

School Nutrition Programs Eligibility Material Weakness § 200.303

FINDING 2023-004 Subject: Child Nutrition Cluster (CNC) – Internal Controls Federal Agency: Department of Agriculture Federal Program: School Breakfast Program, National School Lunch Program Assistance Listing Number: 10.553, 10.555 Pass-Through Entity: Indiana Department of Education Compliance Req...

FINDING 2023-004 Subject: Child Nutrition Cluster (CNC) – Internal Controls Federal Agency: Department of Agriculture Federal Program: School Breakfast Program, National School Lunch Program Assistance Listing Number: 10.553, 10.555 Pass-Through Entity: Indiana Department of Education Compliance Requirement: Eligibility Audit Findings: Material Weakness Condition: An effective internal control system was not in place at the School Corporation in order to ensure compliance with requirements related to the grant agreement and the Eligibility compliance requirements. Context: During testing of eligibility, we noted that a formal documented control for the review of online student applications was not in place. Management indicated that the free and reduced parameters are updated annually in the Titan system, however, there was no documented review that the updated parameters were reviewed. Views of Responsible Official: We concur with the finding. Description of Corrective Action Plan: Management will document a formal review of student applications for free/reduced lunch. Management will also document a review over the thresholds for free/reduced meals within the Titan system to ensure they accurately input into the system this will be done by way of signature on the state published eligibility guidelines. This will be kept for record keeping. Responsible Party and Timeline for Completion: Beginning July 2024

View Audit 295916

Finding 381176 (2023-003)

Significant Deficiency 2023

International Pacific Halibut Commission

WA

Questioned Costs Procurement, Suspension & Debarment Subrecipient Monitoring § 200.318

Finding Number 2023-003 • Significant deficiency in internal controls over compliance related to procurement. Federal Agency: U.S. Department of Commerce Program Title: Pacific Fisheries Data Program Assistance Listing Number: 11.437 Award Nu...

Finding Number 2023-003 • Significant deficiency in internal controls over compliance related to procurement. Federal Agency: U.S. Department of Commerce Program Title: Pacific Fisheries Data Program Assistance Listing Number: 11.437 Award Numbers: NOAA-NMFS-AK-2023-2007663 Award Period: October 1, 2022 to September 30, 2027 Criteria • 2 U.S. Code of Federal Regulations (CFR) Part 200 Uniform Administrative Requirements, Procurement Standards require that awardees use documented procurement procedures for the acquisition of property or services required under a Federal award or subaward. Condition/Context for Evaluation • IPHC's internal controls over procurement do not include the controls and procedures required by 2 CFR 200. Questioned Costs • Not applicable. Cause • IPHC has not yet modified its procurement policies with the requirements of the 2 CFR Part 200 Procurement Standards. Effect or Potential Effect • As a result, IPHC cannot be certain that procurements were conducted in accordance with the 2 CFR Part 200 Procurement Standards. Repeat Finding • Not applicable. Recommendation • We recommend that IPHC update its procurement policy to include all procurement requirements of 2 CFR Part 200. - Procurement standards 2 CFR 200 Subpart D or 200.318-200.327 - Requirement for documented policies consistent with standards 200.318(a) Contact Person(s): • Executive Director: David Wilson (david.wilson@iphc.int); • Assistant Director: Andrea Keikkala (andrea.keikkala@iphc.int) Explanation and specific reasons for disagreement with the audit finding or that corrective action is not required (if applicable): Not applicable. Corrective action planned: As this was the IPHC’s first full GAAP Audit, Single Audit of federal grant funds, and also our first year transitioned from a Cash-basis of accounting to an Accrual-basis of accounting, there are a number of policies and procedures that are in the process of being amended. It will take the Secretariat several months to bring our written process guides into alignment with “2 U.S. Code of Federal Regulations (CFR) Part 200”, as well as our Financial Regulations (2021) that will be considered for amendment at the upcoming 100th Session of the IPHC Finance and Administration Committee (FAC100) and subsequent 100th Session of the IPHC Annual Meeting (AM100) in late January 2024. During the 2nd quarter of FY2024 (1 January – 31 March 2024) the IPHC will undertake a thorough review of “2 U.S. Code of Federal Regulations (CFR) PART 200—UNIFORM ADMINISTRATIVE REQUIREMENTS, COST PRINCIPLES, AND AUDIT REQUIREMENTS FOR FEDERAL AWARDS” and update our procurement policies and processes accordingly. Anticipated completion date: Deadline: 1 April 2024.

View Audit 295898 Questioned Costs: $1

Finding 381165 (2023-002)

Significant Deficiency 2023

Housing and Redevelopment Authority of Fergus Falls

MN

Reporting Internal Control / Segregation of Duties

Recommendation: The Organization should review internal controls currently in place and improve internal controls over financial reporting which will prevent, or detect and correct, misstatements to the financial statements. Management’s Response and Actions Planned: Management of the Organization ...

Recommendation: The Organization should review internal controls currently in place and improve internal controls over financial reporting which will prevent, or detect and correct, misstatements to the financial statements. Management’s Response and Actions Planned: Management of the Organization is aware of and in agreement with the finding. Management reviews and approves the draft audited financial statements. Management recognizes this and feels it is effectively handling its responsibilities with the procedures described above.

View Audit 295892

Finding 381164 (2023-001)

Significant Deficiency 2023

Housing and Redevelopment Authority of Fergus Falls

MN

Internal Control / Segregation of Duties

Recommendation – Although it may not be economically feasible for the Organization to attain an ideal segregation of duties environment, the Organization can periodically observe and evaluate its current structure so as to make improvements when considered necessary. Management’s Response and Actio...

Recommendation – Although it may not be economically feasible for the Organization to attain an ideal segregation of duties environment, the Organization can periodically observe and evaluate its current structure so as to make improvements when considered necessary. Management’s Response and Actions Planned Action Planned – The Organization has determined the benefit of adequately segregating duties is less than the cost. Based on the assessment, the Organization is accepting the risk posed by the deficiency while also evaluating mitigating controls that will help reduce the risk of material misstatement of the financial statements. Management attempts to mitigate the associated risks by doing the following: 1. Identifies areas where lack of segregation of duties exists and where there are higher risks of errors or fraud occurring. 2. Implements limited segregation to the extent possible to reduce risks without impairing efficiency. 3. Uses the knowledge that management and the Board of Directors have of operations by having them review certain accounting records and reports. 4. Monitors the effectiveness of the above actions and makes changes as considered appropriate.

View Audit 295892

Finding 381157 (2023-003)

Significant Deficiency 2023

Catholic Charities, Archdiocese of San Antonio, Inc.

TX

Procurement, Suspension & Debarment Reporting Significant Deficiency § 200.303

Criteria: 2 CFR Section 200.303 of the Uniform Guidance requires the non-Federal entity to establish and maintain effective internal controls over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regul...

Criteria: 2 CFR Section 200.303 of the Uniform Guidance requires the non-Federal entity to establish and maintain effective internal controls 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. Condition: During testing of credit card purchases, we noted that supervisor approvals of expense reports were not timely obtained. Cause: Lack of timely review of credit card expense reports and transactions by supervisors for approval. Agency Response: Program directors/approvers of expense reports must go in by the 5th of the month after month end to approve/reject all employee expense reports assigned to them. The Financial Data Clerk will go in by the 6th of the month note the staff who has not approved their expense reports. The clerk will then communicate with the Director of Finance who in turn will send notification to the staff who is listed as approver. Once the staff is notified they will be given a 48 hour turn around to approve/reject, in the event they do not comply disciplinary action will be taken. After the 48 hours if report is not approved, Finance leadership will go into the system and review the report for approval or rejection. Responsible parties will be Alejandra Nunez, Financial Data Clerk and Lisette DeLeon, CFO, Cynthia Timm, Director of Finance, and Program designated expense report approvers. This will be implemented by February 2024.

View Audit 295879

Finding 381150 (2023-001)

Material Weakness 2023

Catholic Charities, Archdiocese of San Antonio, Inc.

TX

Reporting Internal Control / Segregation of Duties § 200.302 § 200.303

Criteria: 2 CFR Section 200.302 of the Uniform Guidance requires that a non-federal entity provide for accurate, Current, and complete disclosure of the financial results of each Federal award or program. Additionally, 2 CFR Section 200.303 of the Uniform Guidance requires the non-Federal entity to ...

Criteria: 2 CFR Section 200.302 of the Uniform Guidance requires that a non-federal entity provide for accurate, Current, and complete disclosure of the financial results of each Federal award or program. Additionally, 2 CFR Section 200.303 of the Uniform Guidance requires the non-Federal entity to establish and maintain effective internal controls 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. Condition: Issues identified during our audit procedures over the SEFA and federal grant expenditure reports (SEFA project rollout). Cause: Lack of timely review and oversight of federal project expenditures, including the SEFA rollout report. In addition, the preliminary SEFA and underlying support was not timely reviewed by management after it was prepared by accounting staff. Agency Response: On a monthly basis there will be review on the expenditures to ensure that contractual expenses will be accrued. On a quarterly basis the SEFA rollout report will required to be created by the Financial Data Analyst or designee by the CFO. This report will be created by the 25th of the month after the quarter end. Once the report is created the analysis and review of expenditures to revenues will also occur. Based on the analysis, any discrepancies that are noted will be communicated with the Director of Finance. Those discrepancies will be corrected within 48 hours by the program accountants with the direction of the Director of Finance. In the event that the staff fails to make the corrections there will be disciplinary action. By the 30th of the month the report will be given to the CFO for review and approval. Responsible staff will be Lisette DeLeon, CFO, Cynthia Timm, Director of Finance, various staff, Program accountants, and Boubacar Traore, Financial Analyst. This process will begin January 2024 and be fully implemented by February 2024.

View Audit 295879

Finding 381142 (2023-003)

Material Weakness 2023

Pike County School Corporation

IN

Equipment & Real Property Management Internal Control / Segregation of Duties § 200.303 § 200.313

FINDING 2023-003 Finding Subject: COVID-19 Education Stabilization Fund-Equipment and Real Property Management Summary of Finding: There was no internal control procedure to ensure that a capital asset purchased with Federal money was listed in the asset ledger with the serial number or other identi...

FINDING 2023-003 Finding Subject: COVID-19 Education Stabilization Fund-Equipment and Real Property Management Summary of Finding: There was no internal control procedure to ensure that a capital asset purchased with Federal money was listed in the asset ledger with the serial number or other identification number, the source of funding for the property (including the federal award identification number), percentage of federal participation in the project costs for the federal award under which the property was acquired, the location, and use and condition of the property. Contact Person Responsible for Corrective Action: Chelsea Yon Contact Phone Number and Email Address: 812-354-8731 cyon@pcsc.k12.in.us Views of Responsible Officials: We concur with the finding Description of Corrective Action Plan: The Corporation Treasurer or the Accounts Payable processor will make copies of any invoices over $5,000 and place them in a folder for addition to the asset listing. Those copies will also include what fund the item was paid from to properly note that Federal money was spent on that purchase. When Adtec performs the physical inventory and presents the listing, the Treasurer will verify that all items and necessary information have been included. Anticipated Completion Date: This is anticipated in being added to the asset ledger in August 2024.

View Audit 295872

Finding 381136 (2023-002)

Material Weakness 2023

Pike County School Corporation

IN

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

FINDING 2023-002 Finding Subject: COVID-19 Education Stabilization Fund-Special Tests and Provisions-Wage Rate Requirement Summary of Finding: There was no internal control procedure to ensure that construction contracts paid from federal grant funds included a prevailing wage rate clause. This woul...

FINDING 2023-002 Finding Subject: COVID-19 Education Stabilization Fund-Special Tests and Provisions-Wage Rate Requirement Summary of Finding: There was no internal control procedure to ensure that construction contracts paid from federal grant funds included a prevailing wage rate clause. This would include a requirement to submit a copy of the payroll and statement of compliance to the entity for each week in which contract work was performed. Contact Person Responsible for Corrective Action: Chelsea Yon Contact Phone Number and Email Address: 812-354-8731 cyon@pcsc.k12.in.us Views of Responsible Officials: We concur with the finding Description of Corrective Action Plan: The School Corporation will ensure when spending federal grant funds on contracted projects that a prevailing wage clause is included in the contract. The internal control policy will include that the Superintendent and Assistant Superintendent will verify the contract has the prevailing wage clause and that the contractor is submitting certified payrolls each week in which contract work is performed. Anticipated Completion Date: The amended contract has been approved with the vendor and funds will be spent by June 2024. Certified payrolls were requested March 5, 2024.

View Audit 295872

Finding 381125 (2023-004)

Material Weakness 2023

St Anthony Regional Hospital & Nursing Home

IA

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

Federal Agency Name: Department of Agriculture & Department of Health and Human Services Program Name: Community Facilities Loans and Grants Cluster Federal Financial Assistance Listing #10.766 Compliance Requirement: Special Tests and Provisions Finding Summary: The Hospital did not maintain a res...

Federal Agency Name: Department of Agriculture & Department of Health and Human Services Program Name: Community Facilities Loans and Grants Cluster Federal Financial Assistance Listing #10.766 Compliance Requirement: Special Tests and Provisions Finding Summary: The Hospital did not maintain a reserve account or request the Department of Agriculture’s (USDA) permission prior to entering into new debt in compliance with their debt agreements. As of June 30, 2023, the Hospital should have USDA debt reserves at least equal to $417,954. Responsible Individuals: Eric Salmonson, CFO Corrective Action Plan: Management agrees with the finding. The Hospital has reviewed the internal controls and implemented improvements related to their USDA debt. They have also funded our USDA debt reserve account and worked with USDA to become compliant with all debt requirements. Anticipated Completion Date: March 5, 2024

View Audit 295863

Finding 381119 (2023-003)

Significant Deficiency 2023

Western Illinois University

IL

Student Financial Aid Matching / Level of Effort / Earmarking Procurement, Suspension & Debarment § 200.303

Finding Number: 2023-002 - Inadequate Internal Control over Return of Title IV Funds Planned Corrective Action: The University agrees with the finding. The University has streamlined the process of R2T 4 to prevent delays in processing. This enhanced process creates a countdown report to prioritize ...

Finding Number: 2023-002 - Inadequate Internal Control over Return of Title IV Funds Planned Corrective Action: The University agrees with the finding. The University has streamlined the process of R2T 4 to prevent delays in processing. This enhanced process creates a countdown report to prioritize R2T4 calculation when staff resources as strained. Contact person responsible for corrective action: Roberta Smith Anticipated Completion Date: 06/30/2023

View Audit 295860

Finding 381091 (2023-006)

Significant Deficiency 2023

Epilepsy Foundation of America

MD

Reporting Internal Control / Segregation of Duties

The reports to the CDC are provided in quarterly meetings. We were able to provide these reports to the Auditors and are now receiving these reports from the program office so that they can be maintained in a file which can be used for audit purposes.

View Audit 295841

Finding 381090 (2023-005)

Significant Deficiency 2023

Epilepsy Foundation of America

MD

Internal Control / Segregation of Duties

A previous staff member (who is no longer with EF) appears to have erroneously overwritten a payroll report. We now have a process where each month, a payroll folder is created with the correct reports and supporting documents. Once again, this process is in place with documentation. As part of our ...

A previous staff member (who is no longer with EF) appears to have erroneously overwritten a payroll report. We now have a process where each month, a payroll folder is created with the correct reports and supporting documents. Once again, this process is in place with documentation. As part of our collation process, these will be gathered into a procedural manual.

View Audit 295841

Finding 381086 (2024-001)

None 2023

Pine Grove Area School District

PA

Reporting Internal Control / Segregation of Duties

The District accepts and acknowledges that the Quarterly Cash Reports for the Quarter ended June 30, 2023 were not correct in their entirety. The error occurred due to miscommunication between the Federal Programs Coordinator (who was also the Director of Curriculum at that time who is no longer emp...

The District accepts and acknowledges that the Quarterly Cash Reports for the Quarter ended June 30, 2023 were not correct in their entirety. The error occurred due to miscommunication between the Federal Programs Coordinator (who was also the Director of Curriculum at that time who is no longer employed in the District) and the Business Administrator. ln order to appropriately and completely expend various streams of ESSERs funding, the Curriculum Director revised his budget multiple times, moving expenditures that were originally budgeted to be expended from one grant to another grant. Although all the Federal funding received was expended on qualifying and appropriate expenditures, the failure occurred when the former Federal Programs Coordinator did not inform the Business Manager that he was making these numerous budget adjustments. As such, the final Quarterly Cash Reports as of June 30, 2023 were filed with incorrect amounts. Corrective Actions: Prior to the local audit as of 6130123, the Business Manager and new Federal Programs Coordinator (who is also the new Curriculum Director) identified that the budget transfers discussed above were not communicated properly. lt was also determined that all expenditures charged against the grants were appropriate and allowed. ln order to prevent this from occurring again in the future, the Business Manager and Federal Programs Coordinator now meet monthly to discuss the status of all Federal Funding, to discuss any and all planned expenditures to ascertain their allowability and to ensure compliance under the Federal Grants, and to verify that the Federal Program Coordinator's internal budget exactly matches what is recorded in the District's accounting system.

View Audit 295839

Finding 381078 (2023-003)

Material Weakness 2023

Community College of Beaver County

PA

Questioned Costs Subrecipient Monitoring Internal Control / Segregation of Duties

Finding 2023-003: Student Financial Assistance Cluster Gramm-Leach-Bliley Act-Student Information Security Management Response: Management agrees with the finding. The Vice President of Information Technology will ensure that specific actions and strategic initiatives have been implemented to ensure...

Finding 2023-003: Student Financial Assistance Cluster Gramm-Leach-Bliley Act-Student Information Security Management Response: Management agrees with the finding. The Vice President of Information Technology will ensure that specific actions and strategic initiatives have been implemented to ensure full compliance with the GLBA requirements for the 2023-2024 fiscal year. Corrective Action Plan: We have undertaken a thorough review of our current information security practices and policies. This document outlines the specific actions and strategic initiatives that have been implemented or are planned for implementation to ensure full compliance with the GLBA requirements for the 23/24 fiscal audit. Summary: 1. Element-Specific Actions: Responses to Elements 1 through 9 demonstrate active and ongoing improvements in our information security infrastructure, highlighting key areas such as risk assessment, staff training, vendor management, and incident response protocols. 2. Policy Implementation: A suite of critical security policies, including areas like Access Control, Incident Response, and Encryption, will be rolled out by the 23/24 audit cycle, significantly strengthening our security posture. 3. Security Operations Center (SOC): The establishment of a SOC by the upcoming June 24 board meeting marks a pivotal step in enhancing our real-time security monitoring and response capabilities. 4. Third-Party Compliance Review: The involvement of Deep Seas in a thorough review of our documentation and policies before the next audit cycle ensures an additional layer of scrutiny and compliance assurance. This plan reflects our commitment to not only address the current audit findings but also to continuously evolve our security practices to protect customer information and maintain compliance with GLBA standards.

View Audit 295826 Questioned Costs: $1

Corrective Action Plans

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