Corrective Action Plans

Finding 374489 (2023-001)

Material Weakness 2023

Ablelight, Inc.

WI

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

Finding 2023-001 Planned Corrective Action Finding: During the fiscal 2023 financial statement audit, a material weakness in internal control was identified. A material weakness in internal control over compliance is a deficiency, or a combination of deficiencies, in internal control over complian...

Finding 2023-001 Planned Corrective Action Finding: During the fiscal 2023 financial statement audit, a material weakness in internal control was identified. A material weakness in internal control over compliance is a deficiency, or a combination of deficiencies, in internal control over compliance, such that there is a reasonable possibility that material noncompliance with a type of compliance requirement of a federal or state program will not be prevented, or detected and corrected, on a timely basis. During the audit as of and for the year ended August 31, 2023, costs were applied to CARES Act PRF funds which were found to be without sufficient backup documentation. The impact to the current year statutory basis financial statements was not material. Corrective Response: Management represents that there was not sufficient documentation and support surrounding Provider Relief Funding applied to expenses for the year ending August 31, 2023. Operational and reporting improvements will be pursued in an effort to better provide documentation and support on a go-forward basis. Since these transactions, management has added additional staff and more training for processing credit card receipts, check processing with clean approvals, and new leadership over its Accounts Payable function. The organization is also implementing a new ERP system with clear process flows and tight connections between transactions and the related backup. Anticipated Completion Date 8/31/2024 Responsible Contact Person Brian Savoie, CFO 414-345-7844 and Errol Meinholz, Controller 920-245-9275

View Audit 294179 Questioned Costs: $1

Finding 374465 (2023-001)

Significant Deficiency 2023

Bay De Noc Community College

MI

Special Tests & Provisions Student Financial Aid Allowable Costs / Cost Principles

Auditor Description of Condition and Effect. A break of at least five consecutive days was not excluded from the reported enrollment period for the Fall 2022 semester, which resulted in the calculation being incorrect for all students who had returns in the Fall 2022 semester. As a result of this co...

Auditor Description of Condition and Effect. A break of at least five consecutive days was not excluded from the reported enrollment period for the Fall 2022 semester, which resulted in the calculation being incorrect for all students who had returns in the Fall 2022 semester. As a result of this condition, Return of Title IV calculations were incorrect for 60 students for the Fall 2022 semester, resulting in $10,459 less funds returned to the U.S. Department of Education. It is our understanding that on July 24, 2023, the College repaid the 60 students affected by this calculation error. Auditor Recommendation. We recommend that the College implement a review process to ensure the number of enrollment days used in the Return of Title IV calculations is accurate and that the R2T4 calculation is reviewed by a second individual. Corrective Action. Upon discovery of the Return of Title IV Calculation error, the College went through and made corrections to all student accounts affected. To prevent a similar problem arising in the future, the College has developed a review process that will require an additional sign‐off for the total days to be used in the calculation. Responsible Person. Ruth Carlson, Director of Financial Aid. Anticipated Completion Date. July 24, 2023.

View Audit 294140

Finding 374462 (2023-002)

Significant Deficiency 2023

Latino Network

OR

Allowable Costs / Cost Principles Internal Control / Segregation of Duties Subrecipient Monitoring

2023-002 Finding – Federal Award – Significant Deficiency in Internal Control over Compliance - Allowable Costs Context: Expenditures should be charged to the proper programs and allocated in accordance with the cost allocation plan and documentation of approval of any subsequent change to the alloc...

2023-002 Finding – Federal Award – Significant Deficiency in Internal Control over Compliance - Allowable Costs Context: Expenditures should be charged to the proper programs and allocated in accordance with the cost allocation plan and documentation of approval of any subsequent change to the allocation plan should be maintained. Recommendation: We recommend management implement procedures to ensure that costs charged to the grant follow the approved cost allocation and documentation of approved changes to allocations be maintained. Action Taken: Management concurs with the auditor’s finding and will enhance documentation protocols, standardize the approval process, and have regular reviewing and monitoring.

View Audit 294126

Finding 374450 (2023-002)

Material Weakness 2023

Centennial School District R-1

CO

Internal Control / Segregation of Duties

The district will develop a process to ensure that capital assets are recorded to the appropriate general ledger accounts that properly represents the transaction being recorded.

View Audit 294120

Finding 374445 (2023-003)

Significant Deficiency 2023

West Lyon Community School District

IA

Internal Control / Segregation of Duties Significant Deficiency Matching / Level of Effort / Earmarking

Finding 2023‐003 Special Tests – Wage Rate Requirement Significant Deficiency Finding Summary: The District did not sure proper and timely inclusion of prevailing wage clauses in one construction contract issued in the prior year and still in effect this year. Responsible Individuals: Shawn Kreman, ...

Finding 2023‐003 Special Tests – Wage Rate Requirement Significant Deficiency Finding Summary: The District did not sure proper and timely inclusion of prevailing wage clauses in one construction contract issued in the prior year and still in effect this year. Responsible Individuals: Shawn Kreman, Superintendent Corrective Action Plan: The District will include prevailing requirements in contracts utilizing federal dollars. Anticipated Completion Date: Ongoing

View Audit 294102

Finding 374441 (2023-003)

Material Weakness 2023

City of Newport, Tn

TN

Cash Management Internal Control / Segregation of Duties

Finding #2023-003: Internal Controls Over Grant Expenditures Response and Corrective Action Plan Prepared by: Justin Norton Person Responsible for Implementing the Corrective Action: Justin Norton Anticipated Date of Corrected Action: June 30, 2024. Repeat Finding: No Planned Corrective Action: We w...

Finding #2023-003: Internal Controls Over Grant Expenditures Response and Corrective Action Plan Prepared by: Justin Norton Person Responsible for Implementing the Corrective Action: Justin Norton Anticipated Date of Corrected Action: June 30, 2024. Repeat Finding: No Planned Corrective Action: We will establish and implement internal control policies to maintain federal grant expenditures and reimbursements.

View Audit 294101

Finding 374433 (2023-004)

Material Weakness 2023

Lawrenceburg Community School Corporation

IN

Equipment & Real Property Management Internal Control / Segregation of Duties Matching / Level of Effort / Earmarking § 200.303

FINDING2023-004 Finding Subject: COVID-19 Emergency Connectivity Fund Program - Equipment, Special Tests and Provisions - Restricted Purpose Summary of Findings: An effective internal control system was not in place at the School Corporation to ensure compliance with requirements related to the gra...

FINDING2023-004 Finding Subject: COVID-19 Emergency Connectivity Fund Program - Equipment, Special Tests and Provisions - Restricted Purpose Summary of Findings: An effective internal control system was not in place at the School Corporation to ensure compliance with requirements related to the grant agreement and the Equipment and Real Property Management and Special Tests and Provisions - Restricted Purpose compliance requirements. Equipment Management A listing of equipment purchased with program funds was maintained, however, there was no documented oversight or review process to ensure the listing was accurate and complete. Special Tests and Provisions - Restricted Purpose There was no documented control process in place to ensure that each student or staff member received only one device, as required by the per-user limitations in the grant award. Officials stated that the Asset Management system would not have allowed the same student to register multiple devices, however, there was no documented oversight or review to ensure that the user limitations in the system were in place during the audit period, and operating effectively. Contact Person Responsible for Corrective Action: Julie Dudley Contact Phone Number and Email Address: 812.537.7205 jdudley@lburg.k12.in.us Views of Responsible Officials: We concur with the finding. Description of Corrective Action Plan: Beginning with the 2024-2025 school year, the technology department will provide each building principal with a list that includes all students and asset tag numbers. The principals will then have each student sign next to their information acknowledging that information is accurate. Anticipated Completion Date: August 2024

View Audit 294097

Finding 374429 (2023-002)

Material Weakness 2023

Lawrenceburg Community School Corporation

IN

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

FINDING 2023-002 Finding Subject: Child Nutrition Cluster - Eligibility Summary of Findings: An effective internal control system, which would include segregation of duties, was not in place at the School Corporation to ensure compliance with requirements related to the grant agreement and the Elig...

FINDING 2023-002 Finding Subject: Child Nutrition Cluster - Eligibility Summary of Findings: An effective internal control system, which would include segregation of duties, was not in place at the School Corporation to ensure compliance with requirements related to the grant agreement and the Eligibility compliance requirement. The free and reduced-price applications were completed online by the applicants, and the information was automatically uploaded into the School Corporation's nutrition program software system. The software system then calculated the student's eligibility for free and reduced-price meals based on the parameters in the system. There was no documented oversight, review, or approval process to ensure the parameters in the system were correct and that the eligibility determination made complied with the requirements of the programs. The lack of internal controls was a systematic issue throughout the audit period. Contact Person Responsible for Corrective Action: Julie Dudley Contact Phone Number and Email Address: 812.537.7205 jdudley@lburg.k12.in.us Views of Responsible Officials: We concur with the finding. Description of Corrective Action Plan: The Food Service Director and Business Manager have added the verification of every 30th Free/Reduce application that is submitted during the school year to their monthly checklists. Beginning with the 2024-25 school year, the Food Service Director will enter the eligibility parameters into the school nutrition software. Once entered the Food Service Director will provide a copy of the prices entered into the system to be reviewed and approved by the Business Manager or Superintendent. Anticipated Completion Date: January 2024/July 2024

View Audit 294097

Finding 374412 (2023-003)

Significant Deficiency 2023

Warren Rural Electric Cooperative Corporation INC

KY

Questioned Costs Allowable Costs / Cost Principles Period of Performance § 200.303

Criteria and Condition: 2 CFR 200.303 requires the non-federal entity to establlish and maintain effective internal controls over compliance with Federal statues, regulations, and the terms and conditions of the Federal award including proper tracking of grant expenditures or compliance. Certain int...

Criteria and Condition: 2 CFR 200.303 requires the non-federal entity to establlish and maintain effective internal controls over compliance with Federal statues, regulations, and the terms and conditions of the Federal award including proper tracking of grant expenditures or compliance. Certain internal controls were not in place to prevent costs from outside the period of performance from being charged to the grant. Action taken: In regard to 2023-003, Management will provide a 2nd review of project worksheets before submission. The designated FEMA Coordinator will be responsible for this corrective action and anticipates completion of corrective action before October 1, 2023.

View Audit 294076 Questioned Costs: $1

Finding 374399 (2023-001)

Material Weakness 2023

Nineveh-Hensley-Jackson United School Corporation

IN

Equipment & Real Property Management Internal Control / Segregation of Duties Procurement, Suspension & Debarment § 200.303 § 200.313

FINDING 2023-001 Finding Subject: COVID-19 – Education Stabilization Fund – Equipment and Real Property Management Summary of Finding: An effective internal control system, which would include segregation of duties, was not in place at the School Corporation in order to ensure compliance with requir...

FINDING 2023-001 Finding Subject: COVID-19 – Education Stabilization Fund – Equipment and Real Property Management Summary of Finding: An effective internal control system, which would include segregation of duties, was not in place at the School Corporation in order to ensure compliance with requirements related to the grant agreement and the following compliance requirements: Equipment and Real Property Management. The School Corporation presented the equipment and real property records for the ESF grant equipment: however, the records failed to include a description (including serial number or other identification number), source of funding for the property (including the federal award identification number), who holds title, the acquisition date, cost of the property, percentage of federal participation in the project costs for the federal award under which the property was acquired, location, use, and condition of the property, and any ultimate disposition data including the date of disposal and sales price of the property (2 CFR 200.313(d)(1)). Contact Person Responsible for Corrective Action: Jacob Heuchan Contact Phone Number and Email Address: (317)-878-2100; jheuchan@nhj.k12.in.us Views of Responsible Officials: We concur with the finding. Description of Corrective Action Plan: The Business Manager will work with the Technology Director and the respective departments to ensure the appropriate information is being entered into the Corporation’s equipment and real property records for items purchased through ESF/federal funds. A physical inventory of the property will be taken and the results reconciled with the property records at least once every two years. Anticipated Completion Date: Immediate.

View Audit 293990

Finding 374367 (2023-005)

Material Weakness 2023

Winslow Memorial Hospital D/b/a Little Colorado Medical Center

AZ

Material Weakness Reporting Internal Control / Segregation of Duties § 200.303

Finding 2023-005 Federal Agency Name: Department of Health and Human Services Program Name: COVID-19 Provider Relief Fund and American Rescue Plan Federal Financial Assistance Listing #93.498 Compliance Requirement: Reporting Finding Summary: The Hospital’s expenditures identified as eligible and c...

Finding 2023-005 Federal Agency Name: Department of Health and Human Services Program Name: COVID-19 Provider Relief Fund and American Rescue Plan Federal Financial Assistance Listing #93.498 Compliance Requirement: Reporting Finding Summary: The Hospital’s expenditures identified as eligible and claimed under the Provider Relief Fund program did not agree to the underlying detail listing. The current key financial personnel were unable to reconcile the differences between the support and the amounts reported. Responsible Individuals: John J Dempsey, Chief Executive Officer, Lona King, Chief Financial Officer Corrective Action Plan: Management will strengthen the control process for maintaining documentation of the final expenditure listing used to report under the federal program. Anticipated Completion Date: March 31, 2024

View Audit 293974

Finding 374366 (2023-004)

Material Weakness 2023

Winslow Memorial Hospital D/b/a Little Colorado Medical Center

AZ

Allowable Costs / Cost Principles Material Weakness Internal Control / Segregation of Duties § 200.303

Finding 2023-004 Federal Agency Name: Department of Health and Human Services Program Name: COVID-19 Provider Relief Fund and American Rescue Plan Federal Financial Assistance Listing #93.498 Compliance Requirement: Activities Allowed/Allowable Costs Finding Summary: The Hospital’s expenditures ide...

Finding 2023-004 Federal Agency Name: Department of Health and Human Services Program Name: COVID-19 Provider Relief Fund and American Rescue Plan Federal Financial Assistance Listing #93.498 Compliance Requirement: Activities Allowed/Allowable Costs Finding Summary: The Hospital’s expenditures identified as eligible and claimed under the Provider Relief Fund program did not agree to the underlying detail listing. The current key financial personnel were unable to reconcile the differences between the support and the amounts reported. Responsible Individuals: John J Dempsey, Chief Executive Officer, Lona King, Chief Financial Officer Corrective Action Plan: Management will strengthen the control process for maintaining documentation of the final expenditure listing used to claim the allowable costs under the federal program. Anticipated Completion Date: March 31, 2024

View Audit 293974

Finding 374365 (2023-003)

Material Weakness 2023

Winslow Memorial Hospital D/b/a Little Colorado Medical Center

AZ

Material Weakness Reporting Internal Control / Segregation of Duties § 200.303

Finding 2023-003 Federal Agency Name: Department of Health and Human Services Program Name: COVID-19 Provider Relief Fund and American Rescue Plan Federal Financial Assistance Listing #93.498 Compliance Requirement: Reporting Finding Summary: The Hospital did not consider the impact of the year-end...

Finding 2023-003 Federal Agency Name: Department of Health and Human Services Program Name: COVID-19 Provider Relief Fund and American Rescue Plan Federal Financial Assistance Listing #93.498 Compliance Requirement: Reporting Finding Summary: The Hospital did not consider the impact of the year-end audit adjustments on the quarters applicable to Period 4 when reporting lost revenue. Responsible Individuals: John J Dempsey, Chief Executive Officer, Lona King, Chief Financial Officer Corrective Action Plan: Management will strengthen the control process relating to calculating quarterly lost revenue under the federal program. Anticipated Completion Date: March 31, 2024

View Audit 293974

Finding 374364 (2023-001)

Material Weakness 2023

Steps, Inc.

VA

Internal Control / Segregation of Duties

Management agrees with the auditor’s recommendation, and the following action will be taken to improve the situation. Grant billings will be prepared using reports obtained from the accounting system. Grants will be reconciled on a periodic basis, but no less than monthly.

View Audit 293973

Finding 374359 (2023-003)

Significant Deficiency 2023

Central Consolidated School District

NM

Questioned Costs Procurement, Suspension & Debarment Internal Control / Segregation of Duties

Specific corrective action plan for finding: The district will implement controls of review for all expenses related to the Impact Aid- Special Education Fund. Dom Atcitty, Grants Specialist, Carol Gonzales, Finance Director will ensure that proper budgets are authorized to Departments to ensure tha...

Specific corrective action plan for finding: The district will implement controls of review for all expenses related to the Impact Aid- Special Education Fund. Dom Atcitty, Grants Specialist, Carol Gonzales, Finance Director will ensure that proper budgets are authorized to Departments to ensure that the correct funding is available. These two instances were due to lack of budget within the Department that caused them to use the incorrect funding source at the time. The district will make sure to include Amanda Sutherland, Student Support Services Director within the review process and the district will provide additional training regarding uses of funds. Timeline for completion of corrective action plan: District has implemented this plan as of July 1, 2023 Employee position(s) responsible for meeting the timeline: Dom Atcitty, Grants Specialists, Carol Gonzales, Finance Director and Amanda Sutherland, Student Support Services Director

View Audit 293969 Questioned Costs: $1

Finding 374358 (2023-005)

Significant Deficiency 2023

Central Consolidated School District

NM

Questioned Costs Internal Control / Segregation of Duties

Specific corrective action plan for finding: Rebecca Brandt, Coordinator Student Services Department, Sharon Hanagarne-Benally, Data Records Clerk will review and audit files to ensure student information is up to date in PowerSchool to ensure reliable, efficient, and timely data is being collected....

Specific corrective action plan for finding: Rebecca Brandt, Coordinator Student Services Department, Sharon Hanagarne-Benally, Data Records Clerk will review and audit files to ensure student information is up to date in PowerSchool to ensure reliable, efficient, and timely data is being collected. Timeline for completion of corrective action plan: Resolved Employee position(s) responsible for meeting the timeline: Rebecca Brandt, Coordinator Student Services Department, Sharon Hanagarne-Benally

View Audit 293969 Questioned Costs: $1

Finding 374345 (2023-002)

Significant Deficiency 2023

Town of Bridgwater, Vermont

VT

Subrecipient Monitoring Significant Deficiency Matching / Level of Effort / Earmarking § 200.302

Update grant spreadsheet monthly

View Audit 293943

Finding 374344 (2023-001)

Significant Deficiency 2023

Town of Bridgwater, Vermont

VT

Subrecipient Monitoring Allowable Costs / Cost Principles Significant Deficiency § 200.302

Adopt suggested policies as outlined by auditor

View Audit 293943

Finding 374343 (2023-001)

Significant Deficiency 2023

Lexington-Fayette Urban County Housing Authority

KY

HUD Housing Programs Subrecipient Monitoring Eligibility

Re: 2023-01 Audit Finding/Plan of Action The Lexington Housing Authority (LHA) proposes this corrective plan of action to address the late recertifications (13) and annual recertification (1) from the audit conducted by Rector, Reeder & Lofton PC, onsite at LHA September 25-29, 2023. ADDRESSING S...

Re: 2023-01 Audit Finding/Plan of Action The Lexington Housing Authority (LHA) proposes this corrective plan of action to address the late recertifications (13) and annual recertification (1) from the audit conducted by Rector, Reeder & Lofton PC, onsite at LHA September 25-29, 2023. ADDRESSING STAFFING Securing qualified candidates to fill Housing Management Specialist (HMS) positions throughout 2020, 2021 and 2022 was challenging for LHA. In some instances, positions were vacant for up to 12 months before they were filled. LHA will do the following to address staffing: • Seek to fill HMS positions within forty-five (45) days of the position going vacant. • Advertise to hire two full-time HMS positions for the two management teams with the most units in their management portfolio. • Continue to advertise open positions online, on social media and in the local newspaper. • Offer incentive bonus up to $1,500 to newly hired HMS, paying $750 to new hires after six month of employment and an additional $750 after 12 months of employment. • Over-time will be allowed on an as-needed basis to complete and process certifications. CERTIFICATION PROCEDURES Further, LHA housing management staff will adhere to the following procedures to facilitate timely completion of annual certifications. - HMS staff will continue utilize in-person interviews and mail (via USPS and email) to complete needed documentation for annual certifications. - All housing management staff may utilize electronic signature to attain required signatures when necessary. - The first day of each month housing managers will run the certification audit report to be shared with the Chief Operating Officer to monitor the status of in-progress and upcoming certifications. - July 1, 2023, LHA implemented quality control (QC) of public housing files to be conducted by a newly created compliance position. LHA' s compliance coordinator will complete 229 (25%) QC reviews of public housing files during FY2024 (July 1, 2023 - June 30, 2024). - At least once monthly on a rotating basis housing management staff from all offices will convene at a selected housing management office to complete and process certifications. This schedule will continue until all offices are up to date on certifications. LHA staff will apply these procedures as outlined to mitigate this finding to ensure compliance and proper documentation of future certifications. Contact Person: Andrea Wilson, Chief Operating Officer Anticipated Completion Date: June 30, 2024

View Audit 293932

Finding 374328 (2023-006)

Material Weakness 2023

Galeton Area School District

NY

Reporting School Nutrition Programs Internal Control / Segregation of Duties

Auditors’ Recommendation: We recommend that as part of preparing monthly bank reconciliations, the reconciliation with the balance from the general ledger should be performed. Any differences should be immediately investigated and corrected. Once completed, the reconciliation should be reviewed by s...

Auditors’ Recommendation: We recommend that as part of preparing monthly bank reconciliations, the reconciliation with the balance from the general ledger should be performed. Any differences should be immediately investigated and corrected. Once completed, the reconciliation should be reviewed by someone independent of the preparer. Both, the individual preparing and reviewing the bank reconciliations should sign or initial and date the reconciliation when completed. We recommend that the District incorporate procedures to ensure that such general ledger accounts are reconciled on a monthly basis. It is important that a dual accounting system is utilized in each individual fund and transactions between funds should be booked through the interfund receivables and payables. School District’s Response: Penny Crowell, Business Manager will ensure that bank reconciliations are prepared on a timely basis throughout the year, which includes a reconciliation to the general ledger. The District will have the Superintendent review bank reconciliations. Once completed, the preparer and reviewer will sign and date each reconciliation to evidence their completion. Lastly, the District will reconcile due to/due from accounts on a monthly basis. These processes will take place during the year ending June 30, 2024.

View Audit 293922

Finding 374313 (2023-005)

Material Weakness 2023

Galeton Area School District

NY

Internal Control / Segregation of Duties Reporting

Auditor’s recommendation: The District should attempt to separate many of the ancillary duties of recordkeeping including: opening the mail and maintaining a cash receipts log; signing of checks, distribution of payroll checks, and bank reconciliation preparation. In addition, financial information ...

Auditor’s recommendation: The District should attempt to separate many of the ancillary duties of recordkeeping including: opening the mail and maintaining a cash receipts log; signing of checks, distribution of payroll checks, and bank reconciliation preparation. In addition, financial information such as check registers, payroll registers and cash receipts journals should be reviewed by someone independent of the preparer or the Board of Education. Lastly, because of the lack of certain segregation of duties, we recommend that those individuals who are responsible for handling financial transactions are appropriately covered by a fidelity bond. District’s Response: Penny Crowell, Business Manager, understands the importance of having strong segregation of duties and will attempt to separate certain responsibilities as outlined above for the year ending June 30, 2024.

View Audit 293922

Finding 374298 (2023-004)

Material Weakness 2023

Galeton Area School District

NY

Internal Control / Segregation of Duties

Auditor’s Recommendation: Although auditors may continue to provide such assistance both now and in the future, under this pronouncement, the District should continue to review and accept both proposed adjusting journal entries and footnote disclosures, along with the draft financial statements. Dis...

Auditor’s Recommendation: Although auditors may continue to provide such assistance both now and in the future, under this pronouncement, the District should continue to review and accept both proposed adjusting journal entries and footnote disclosures, along with the draft financial statements. District’s Response: Penny Crowell, Business Manager, has received, reviewed and accepted all journal entries, footnote disclosures and draft financial statements proposed for the current year audit and will continue to review similar information for the year ending June 30, 2024 and in future years. Further, the District believes it has a thorough understanding of these financial statements and the ability to make informed judgments based on these financial statements. Lastly, the District considers such assistance provided by the auditors to be the most cost effective in preparing such information.

View Audit 293922

Finding 374295 (2023-006)

Material Weakness 2023

Delphi Community School Corporation

IN

Internal Control / Segregation of Duties Material Weakness Reporting § 200.302 § 200.303 § 200.328 § 200.329

FINDING 2023-006 Finding Subject: Education Stabilization Fund - Reporting Summary of Finding: Management had not developed or implemented a system of internal control that would have ensured compliance with the grant agreement and the Reporting compliance requirement. The failure to establish an ef...

FINDING 2023-006 Finding Subject: Education Stabilization Fund - Reporting Summary of Finding: Management had not developed or implemented a system of internal control that would have ensured compliance with the grant agreement and the Reporting compliance requirement. The failure to establish an effective internal control system enabled material noncompliance to go undetected. Noncompliance with the grant agreement and the Reporting compliance requirement could result in the loss of future federal funds to the School Corporation. We recommended that the School Corporation's management establish internal controls to ensure compliance and comply with the grant agreement and the Reporting compliance requirement. Contact Person Responsible for Corrective Action: Andrea Miller Contact Phone Number and Email Address: 765-564-2100, millera@delphi.k12.in.us Views of Responsible Officials: We concur with the finding. Description of Corrective Action Plan: The treasurer will prepare all required reports, and the grant administrator will verify the information on the reports. Reports will be signed and dated by both parties. Anticipated Completion Date: July 2024

View Audit 293921

Finding 374286 (2023-002)

Material Weakness 2023

Delphi Community School Corporation

IN

School Nutrition Programs Eligibility Material Weakness § 200.303

FINDING 2023-002 Finding Subject: Child Nutrition Cluster - Verification of Free and Reduced Price Lunch Applications Summary of Finding: Management had not developed or implemented a system of internal control that would have ensured compliance with requirements related to the grant agreement and S...

FINDING 2023-002 Finding Subject: Child Nutrition Cluster - Verification of Free and Reduced Price Lunch Applications Summary of Finding: Management had not developed or implemented a system of internal control that would have ensured compliance with requirements related to the grant agreement and Special Tests and Provisions - Verification of Free and Reduced Price Applications (NSLP) compliance requirements. The failure to establish an effective internal control system placed the School Corporation at risk of noncompliance with the grant agreement and Special Tests and Provisions - Verification of Free and Reduced Price Applications (NSLP) compliance requirements. A lack of segregation of duties within an internal control system could also allow noncompliance with compliance requirements and allow the misuse and mismanagement of federal funds and assets by not having proper oversight, reviews, and approvals over the activities of the program. We recommended that the School Corporation's management establish a system of internal controls, including segregation of duties, related to the grant agreement and Special Tests and Provisions - Verification of Free and Reduced Price Applications (NSLP) compliance requirements. Contact Person Responsible for Corrective Action: Andrea Miller Contact Phone Number and Email Address: 765-564-2100, millera@delphi.k12.in.us Views of Responsible Officials: We concur with the finding. Description of Corrective Action Plan: The Food Service Director or Assistant will review the applications, the other will do a second review. The Food Service Director and Assistant sign each application that is verified to ensure all information is accurate and the eligibility status is correct in Skyward. If additional verification information is provided, it will be documented and recorded in the binder with the applications. Anticipated Completion Date: August 2024

View Audit 293921

Finding 374281 (2023-003)

Material Weakness 2023

Delphi Community School Corporation

IN

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

FINDING 2023-003 Finding Subject: Child Nutrition Cluster - Eligibility Summary of Finding: The School Corporation's management had not developed a system of internal controls that would have ensured compliance with the Eligibility compliance requirements. The failure to establish an effective inter...

FINDING 2023-003 Finding Subject: Child Nutrition Cluster - Eligibility Summary of Finding: The School Corporation's management had not developed a system of internal controls that would have ensured compliance with the Eligibility compliance requirements. The failure to establish an effective internal control system places the School Corporation at risk of noncompliance with the grant agreement and the Eligibility compliance requirements. A lack of segregation of duties within an internal control system could also allow noncompliance with compliance requirements and allow the misuse and mismanagement of federal funds and assets by not having proper oversight, reviews, and approvals over the activities of the program. We recommended that the School Corporation's management establish a system of internal controls, including segregation of duties, related to the grant agreement and the Eligibility compliance requirements listed above. Contact Person Responsible for Corrective Action: Andrea Miller Contact Phone Number and Email Address: 765-564-2100, millera@delphi.k12.in.us Views of Responsible Officials: We concur with the finding. Description of Corrective Action Plan: The Food Service Director or Assistant will enter online and paper applications, the other will review the entries compared to the applications, and both will sign off the applications. An additional selection will be added in Skyward to document which type of classification. A legend for the codes will be kept in the front of the binder where the applications are kept for reference. Anticipated Completion Date: August 2024

View Audit 293921

Corrective Action Plans

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