Corrective Action Plans

Finding 370729 (2023-005)

Material Weakness 2023

South Putnam Community School Corporation

IN

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

FINDING 2023-005 Finding Subject: Child Nutrition Cluster - Eligibility Summary of Finding: Material Weakness Condition and Context There was no evidence that the Direct Certifications were correctly and properly included in the software system, or that there was an oversight, review, or approval pr...

FINDING 2023-005 Finding Subject: Child Nutrition Cluster - Eligibility Summary of Finding: Material Weakness Condition and Context There was no evidence that the Direct Certifications were correctly and properly included in the software system, or that there was an oversight, review, or approval process over the Direct Certifications. Contact Person Responsible for Corrective Action: Lori Boyce Contact Phone Number and Email Address: 765-653-3148 lboyce@sputnam.k12.in.us Views of Responsible Officials: We concur with the finding Description of Corrective Action Plan: The Food Service Director will have the Guidance Secretary check and initial that the Food Service Director has completed the Direct Certification correctly. Anticipated Completion Date: 2/2024

View Audit 292410

Finding 370722 (2023-003)

Material Weakness 2023

South Putnam Community School Corporation

IN

Internal Control / Segregation of Duties Material Weakness Reporting § 200.303

FINDING 2023-003 Finding Subject: Education Stabilization Fund - Reporting Summary of Finding: Material Weakness Condition and Context Reporting The School Corporation had not designed nor implemented a system of internal controls to ensure that the six Elementary and Secondary School Emergency Reli...

FINDING 2023-003 Finding Subject: Education Stabilization Fund - Reporting Summary of Finding: Material Weakness Condition and Context Reporting The School Corporation had not designed nor implemented a system of internal controls to ensure that the six Elementary and Secondary School Emergency Relief (ESSER) annual data reports required to be filed during the audit period were complete and accurate prior to submission. Each of the reports were prepared by one employee without an oversight or review process in place to prevent, or detect and correct errors. Contact Person Responsible for Corrective Action: Hilarie Logan Contact Phone Number and Email Address: 765-653-3119 hlogan@sputnam.k12.in.us Views of Responsible Officials: We concur with the finding Description of Corrective Action Plan: The school corporation has a new Grants Coordinator who will participate in Internal Controls Training and sign off that they have done so. We will also incorporate dual signatures on documents as an additional means of approval/oversight. Anticipated Completion Date: 3/2024

View Audit 292410

Finding 370656 (2023-001)

Significant Deficiency 2023

Realife Cooperative of Brooklyn Park

MN

Reporting Internal Control / Segregation of Duties

Housing and Urban Development Realife Cooperative of Brooklyn Park respectfully submits the following corrective action plan for the year ended December 31, 2023. Westberg Eischens, PLLP 2630 1st Street South P.O. Box 362 Willmar, MN 56201 Audit Period: December 31, 2023 The finding from the Decembe...

Housing and Urban Development Realife Cooperative of Brooklyn Park respectfully submits the following corrective action plan for the year ended December 31, 2023. Westberg Eischens, PLLP 2630 1st Street South P.O. Box 362 Willmar, MN 56201 Audit Period: December 31, 2023 The finding from the December 31, 2023 schedule of findings and questioned costs and the summary schedule of prior audit findings is discussed below. The finding is numbered consistently with the number assigned in the schedules. Summary of audit results does not include findings and is not addressed. Finding 2023-001 Recommendation: We recommend that the Cooperative continue to review the auditor prepared adjusting journal entries and financial statements with the intention of understanding and acceptance of responsibility for reporting under generally accepted accounting principles. Action Taken: The Cooperative will continue to review the auditor prepared adjusting journal entries and financial statements with the intention of understanding and acceptance of responsibility for reporting under generally accepted accounting principles. Planned Completion Date: Not Applicable.

View Audit 292376

Finding 370647 (2023-002)

None 2023

Yorkville Joint #2 School District

WI

Internal Control / Segregation of Duties

Management Response - The District Superintendent and Business Manager review and approve the financial statements. Upon completion of the full audit, the school board reviews, comments on, and approves the audited financial statements.

View Audit 292366

Finding 370646 (2023-001)

None 2023

Yorkville Joint #2 School District

WI

Internal Control / Segregation of Duties

Management Response – Because of the size of the office and the district, we are precluded from maintaining a proper staff size to ensure a proper segregation of duties. We are aware of this condition, and we realize that the concentration of duties and responsibilities in a limited number of indiv...

Management Response – Because of the size of the office and the district, we are precluded from maintaining a proper staff size to ensure a proper segregation of duties. We are aware of this condition, and we realize that the concentration of duties and responsibilities in a limited number of individuals in not desirable for an effective system of internal control. To mitigate the issue of lack of segregation of duties, we have cross trained virtually each of the business office employees. While we do have a dedicated payroll person, another individual will perform cross checks & verifications independently. The same goes for issuing checks, accounts receivable, accounts payable, and activity funds. These functions are overseen by the business manager.

View Audit 292366

Finding 370644 (2023-002)

None 2023

Golden Ridge Housing Inc.

RI

Questioned Costs Internal Control / Segregation of Duties

Management has corrected the error in the January 2024 requisition

View Audit 292353 Questioned Costs: $1

Finding 370633 (2023-002)

Significant Deficiency 2023

Tippecanoe Valley School Corporation

IN

School Nutrition Programs Internal Control / Segregation of Duties Allowable Costs / Cost Principles § 200.303

Finding 2023-002 – Child Nutrition Cluster – Activities Allowed or Unallowed, Allowable Costs/Cost Principles Contact Person Responsible for Corrective Action: Eric Speicher Contact Phone Number: 574-598-2768 Views of Responsible Official: We concur with the finding. Description of Correcti...

Finding 2023-002 – Child Nutrition Cluster – Activities Allowed or Unallowed, Allowable Costs/Cost Principles Contact Person Responsible for Corrective Action: Eric Speicher Contact Phone Number: 574-598-2768 Views of Responsible Official: We concur with the finding. Description of Corrective Action Plan: The school corporation’s management will establish a documented, secondary review of all accounts payable claims to ensure the accuracy of the claims and will ensure underlying support or details of the claims will be included. Anticipated Completion Date: 2/22/2024

View Audit 292331

Finding 370632 (2023-004)

Significant Deficiency 2023

High Point University

NC

Questioned Costs Internal Control / Segregation of Duties Special Tests & Provisions

Finding 2023-004 Program: Federal Work-Study Program CFDA No.: 84.033 Federal Agency: Department of Education Award Year: FY 2022 - 2023 Compliance Requirement: N – Special Tests and Provisions – Institutions are required to verify students are not earning Federal Work-Study program financial aid du...

Finding 2023-004 Program: Federal Work-Study Program CFDA No.: 84.033 Federal Agency: Department of Education Award Year: FY 2022 - 2023 Compliance Requirement: N – Special Tests and Provisions – Institutions are required to verify students are not earning Federal Work-Study program financial aid during scheduled class time, and that all amounts paid are appropriately earned. University’s Response: The University continues to emphasize and reinforce with its students and student supervisors the importance of not working during scheduled class hours, regardless of whether their jobs are funded by the Federal Work Study program or by the institution. This policy applies even if classes are canceled or let out early. The Student Employment Program holds annual training sessions for these responsible individuals and provides updated publications. As part of the University's student employment application process, students are required to submit their class schedules. Supervisors are expected to utilize these schedules and ensure that work schedules do not conflict with class times. Additionally, supervisors are expected to obtain students' class schedules each semester and update their work schedules accordingly, to prevent students from working during class hours. In the University’s effort to meet the FISAP correction deadline and out of an abundance of caution, all questionable work-study transaction funds were returned and converted to institutionally full-paid hours for these students. This action aims to avoid penalizing the students for any errors and to rectify potential misappropriation of federal work-study funds. Corrective Action Plan: The University’s Student Employment Office continues to send monthly emails to student employee supervisors and the student staff, reminding them of the student employment guidelines they are expected to abide by. This communication emphasizes their responsibility to adhere to these guidelines and to keep their supervisor informed of any changes to their class schedule that may require adjustments to their work schedule. Student employee supervisors are expected to hold a mandatory meeting with their student staff at or before the start of each semester. The University also continues its internal audit process, implemented in February 2023. A sample of student work records from the previous semester will be compared to students’ class schedules to ensure they are not working during class hours. This review will be conducted by Brad Calloway, Senior Vice President for Business Affairs. Any violations of the school's student employment policies identified in this audit will be reported to Marc Sears, Vice President of Human Resources, for necessary corrective action. In mid-January 2024, the University will institute the Give Pulse platform, which will integrate with the University’s current HR/Payroll timekeeping system, Workday. The Give Pulse platform will assist in flagging students whose work hours fall outside the parameters of hours worked. Further training and instruction to pay closer attention to these discrepancies, such as failing to clock out or working for eight or more hours in a day, will be provided to student employee supervisors as part of the monthly email communication. The University is investigating the feasibility of implementing parameters within Workday that would notify student supervisors when their student workers are clocked in for more than 8 hours straight as well as when they are nearing 20 hours of work in a week. This notification would enable supervisors to ensure the accuracy of their students' clocked hours and make adjustments if necessary. Name of Responsible Person: Jonathan Mador, Assistant Vice President of Student Financial Services; Sandra Fantauzzi, Student Employment Program Manager; Marc Sears, Vice President of Human Resources; Brad Calloway, Senior Vice President for Business Affairs Anticipated Completion Date: February 29, 2024

View Audit 292330 Questioned Costs: $1

Finding 370631 (2023-003)

Significant Deficiency 2023

High Point University

NC

Cash Management Internal Control / Segregation of Duties Matching / Level of Effort / Earmarking

Finding 2023-003 Program: Federal Family Education Loans CFDA No.: 84.032 Federal Agency: Department of Education Award Year: Various Compliance Requirement: C – Cash Management University’s Response: The University has continued to ensure that these funds are not commingled and has protected them f...

Finding 2023-003 Program: Federal Family Education Loans CFDA No.: 84.032 Federal Agency: Department of Education Award Year: Various Compliance Requirement: C – Cash Management University’s Response: The University has continued to ensure that these funds are not commingled and has protected them from being spent. Due to the discrepancies identified, it is necessary to review and compare each student's loan history between the University Information System, the lender rosters, and the National Student Loan Database System (NSLDS) records. This individual review and reconciliation process has proven to be tedious but necessary to identify funds that were never posted to student records, returned to lenders, or entered incorrectly in the three separate systems of record. Corrective Action Plan: With additional assistance, the University made further progress in identifying records with discrepancies. We reviewed the types of discrepancies identified with the DoE and, with their guidance, are detailing the individual student accounts to which funds need to be returned to correct the students' NSLDS loan records. Name of Responsible Person: Jonathan Mador, Assistant Vice President of Student Financial Services Anticipated Completion Date: May 31, 2024

View Audit 292330

Finding 370573 (2023-001)

Material Weakness 2023

Unified School District #457

KS

Subrecipient Monitoring Internal Control / Segregation of Duties Cash Management

Finding 2023-001 Planned Corrective Action: The District’s management will evaluate the grant monitoring process and ensure all reporting for federal grant requirements is accurate and timely, with a planned implementation date by the Financial Officer of December 15, 2023.

View Audit 292263

Finding 370551 (2023-001)

Significant Deficiency 2023

Lakeland University and Affiliate

WI

Student Financial Aid Reporting Significant Deficiency

Student Financial Aid Cluster – Assistance Listing No. 84.007, 84.033, 84.038, 84.063, 84.268 Recommendation: We recommend that the University update its processes and procedures related to reviewing the information posted to NSLDS to ensure the accuracy of the data. Explanation of disagreement with...

Student Financial Aid Cluster – Assistance Listing No. 84.007, 84.033, 84.038, 84.063, 84.268 Recommendation: We recommend that the University update its processes and procedures related to reviewing the information posted to NSLDS to ensure the accuracy of the data. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: The University will complete a review of all students who received Title IV aid to ensure enrollment data is accurate. Name(s) of the contact person(s) responsible for corrective action: Debra Buffington Planned completion date for corrective action plan: 06/30/2024

View Audit 292250

Finding 370541 (2023-002)

Significant Deficiency 2023

Octorara Area School District

PA

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

Federal Program COVID-19 - Education Stabilization Fund ALN 84.425; passed through the Pennsylvania Department of Education Condition/Cause We tested a sample of 8 nonpayroll invoices charged to the Education Stabilization Fund. For 1 out of the 8 invoices tested, the invoice was miscoded to the g...

Federal Program COVID-19 - Education Stabilization Fund ALN 84.425; passed through the Pennsylvania Department of Education Condition/Cause We tested a sample of 8 nonpayroll invoices charged to the Education Stabilization Fund. For 1 out of the 8 invoices tested, the invoice was miscoded to the grant and should have been charged to a different program. Controls at the District did not catch this miscoding prior to the audit. The Board of Directors approves all salaried positions that are funded by the Education Stabilization Fund. For one of the individuals charged to the program, the Board did not approve their position as a grant funded position. Instead, a different individual was approved but not charged to the grant. Controls at the District did not catch this miscoding prior to the audit; however, the individual charged to the grant was in a position that was allowable under the grant requirements. Recommendation We recommend the District review their internal controls over allowable activities and allowable costs charged to the Education Stabilization Fund to ensure they are designed and operating to detect coding errors that may result in noncompliance with grant requirements. Management Response Objective Address the identified issues related to the misallocation of costs and lapses in internal controls within the Education Stabilization Fund program. 1. Immediate Actions • Correct the miscoded invoice immediately, ensuring that the $2,613 erroneously charged to the Education Stabilization Fund is properly allocated to the correct program. • Conduct a thorough review of all nonpayroll invoices charged to the Education Stabilization Fund to identify and rectify any other miscoding errors. 2. Internal Controls Enhancement • Review and strengthen internal controls over allowable activities and costs within the Education Stabilization Fund program. • Implement a systematic process for verifying the appropriateness of each cost before it is charged to the grant, including a cross-check against grant agreements and Board approvals. 3. Board Approval Process • Establish a clear and documented process for obtaining Board approval for salaried positions funded by the Education Stabilization Fund. • Ensure that all individuals charged to the program have received explicit approval from the Board, and that the approval is well-documented. 4. Training and Awareness • Provide training to relevant staff involved in coding and approving expenses related to the Education Stabilization Fund. • Enhance awareness among employees about the importance of accurately coding expenses and obtaining proper approvals. 5. Review of All Salaried Positions • Conduct a comprehensive review of all salaried positions funded by the Education Stabilization Fund, ensuring that each position aligns with Board approvals and grant requirements. • Verify that individuals charged to the program have the necessary approvals and qualifications. 6. Documentation and Record-Keeping • Establish a centralized and well-maintained repository for all documentation related to Education Stabilization Fund expenditures. • Ensure that records of Board approvals, coding decisions, and supporting documentation for all expenses are readily accessible for audit purposes. 7. Periodic Internal Audits • Implement a schedule for periodic internal audits specifically focused on the Education Stabilization Fund program. • Conduct random checks and audits to verify the accuracy of coding and compliance with internal controls. 8. Reporting and Transparency • Develop a reporting mechanism to keep the Board of Directors and relevant stakeholders informed of expenditures under the Education Stabilization Fund. • Periodically report on the status of internal controls and any corrective actions taken. 9. Continuous Monitoring: • Establish a continuous monitoring process to detect and address any deviations from established internal controls promptly. • Implement real-time alerts or notifications for potential coding errors or deviations from approved positions. 10. External Review • Consider engaging external auditors to perform an independent review of the strengthened internal controls and corrective actions taken. • Seek recommendations for further improvements and best practices. By implementing these corrective actions, we aim to enhance internal controls, ensure compliance with grant requirements, and prevent the misallocation of funds within the Education Stabilization Fund program. Regular monitoring and a commitment to continuous improvement will be critical for sustained success.

View Audit 292221 Questioned Costs: $1

Finding 370527 (2023-001)

Significant Deficiency 2023

Colton Joint Unified School District

CA

Questioned Costs Subrecipient Monitoring Allowable Costs / Cost Principles

The District will conduct a regular review of substitute activity charged under Title I, with audits for allowability performed every pay period. Departments within the Educational Services and Business Services Rivision will oversee this review, engaging in outreach to sites for confirmation of the...

The District will conduct a regular review of substitute activity charged under Title I, with audits for allowability performed every pay period. Departments within the Educational Services and Business Services Rivision will oversee this review, engaging in outreach to sites for confirmation of the rationale behind charging a substitute to Title I. Additionally, backup documentation will be collected to bolster the support for the allowability of these activities. This proactive plan aims to maintain continuous compliance with Title I guidelines.

View Audit 292192 Questioned Costs: $1

Finding 370511 (2023-001)

Significant Deficiency 2023

Owensboro Health, Inc.

KY

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

Corrective Action already completed in 2023

View Audit 292127

Finding 370506 (2023-002)

Material Weakness 2023

Metropolitan School District of Decatur Township

IN

Internal Control / Segregation of Duties Allowable Costs / Cost Principles Cash Management § 200.303

FINDING 2023-002 Finding Subject: Emergency Connectivity Fund – Activities Allowed or Unallowed, Allowable Costs/Cost Principles, Period of Performance Summary of Finding: An effective internal control system was not in place at the School Corporation to ensure compliance with requirements related t...

FINDING 2023-002 Finding Subject: Emergency Connectivity Fund – Activities Allowed or Unallowed, Allowable Costs/Cost Principles, Period of Performance Summary of Finding: 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 Activities Allowed or Unallowed, Allowable Costs/Cost Principles, and Period of Performance compliance requirements. The School Corporation completed reimbursement requests and submitted them online; however, there was no evidence of an oversight or review process to ensure that the reimbursement requests were for allowable activities, allowable costs, and within the period of performance. Contact Person Responsible for Corrective Action: Derek Coulombe, Director of Technology Contact Phone Number and Email Address: (317) 856-5265; dcoulombe@decaturproud.org Views of Responsible Official: We concur with Audit Finding Description of Corrective Action Plan: The School Corporation will develop procedures to ensure disbursement requests are printed out and a representative from the Business Department documents review of them for allowable activity before final submission. Anticipated Completion Date: March 1, 2024

View Audit 292091

Finding 370500 (2023-001)

Significant Deficiency 2023

Goddard College Corporation

VT

Procurement, Suspension & Debarment Internal Control / Segregation of Duties § 200.90

The College has controls and processes in place to properly evaluate credit (SAP). As part of the corrective action we have documented and re-trained the Registrar and financial aid staff on the process to record SAP; notify the student of probationary periods; and notify financial aid of a change i...

The College has controls and processes in place to properly evaluate credit (SAP). As part of the corrective action we have documented and re-trained the Registrar and financial aid staff on the process to record SAP; notify the student of probationary periods; and notify financial aid of a change in SAP status. The process has an additional section that establishes segregation of duties such that a member of the Registrar’s office shall not update their own record but would request posting be reviewed and completed by another member of the registrar’s office. The documentation of this process is included below: 1. At the beginning of each semester the Registrar’s office will evaluate credit (SAP) on the prior semester. In order to ensure proper segregation of duties the following section has been added. • If a member of the Registrar’s office is a student during the prior semester a different member of the Registrar’s office will evaluate their SAP and update their record. • Any notification related to the evaluation of SAP will be conducted by the other Registrar’s office member. 2. The Registrar’s office will notify financial aid of students without credit. • The Financial Aid Office will provide appropriate notifications for students who did not receive credit (SAP) for the first time. 3. The Registrar’s office will evaluate if lack of credit (SAP) is for a second semester. • If it is the second semester, the student is then notified and they are no longer eligible for federal financial aid for the upcoming term. • The Financial Aid office will provide notification to the student that credit is needed for that semester or the student is not eligible for federal financial aid for the upcoming term. • The Registrar’s office will provide notification of students on the list created in point 2 and 3 to the Financial Aid office. 4. Financial Aid will update student’s record to indicate that they are ineligible for financial aid. This process will remain in place until Goddard College completes implementation of “Anthology Student” which is an integrated student information system that supports compliance with Title IV guidelines. Anthology will evaluate satisfactory academic progress against an approved program, among many other compliance items, and provide the integrated notification to students of their lack of progress as well as flag their financial aid record so that federal funds are not approved. This system will replace the intensive manual data management process currently utilized and the electronic alerts and processes will achieve results reliably and automatically. The college would like to note that the registrar (the student in question) did not provide written notification that she did not meet SAP from the Fall term but she was aware of it given her position and normal job duties. The employee involved has submitted their resignation from the college and the process will be shared with the new Registrar. Financial aid staff has completed additional training on SAP guidelines and the importance of compliance with SAP requirements.

View Audit 292086

Finding 370491 (2023-002)

Significant Deficiency 2023

Hamline University of Minnesota

MN

Student Financial Aid Reporting Significant Deficiency

Department of Education 2023-002 Student Financial Assistance – Assistance Listing No. Various Recommendation: We recommend the University reevaluate its procedures and review policies surrounding reporting status changes to NSLDS to put a process in place to ensure the student status changes are b...

Department of Education 2023-002 Student Financial Assistance – Assistance Listing No. Various Recommendation: We recommend the University reevaluate its procedures and review policies surrounding reporting status changes to NSLDS to put a process in place to ensure the student status changes are being reported timely. Explanation of disagreement with audit finding: There is no disagreement with the auditfinding. Action taken in response to finding: Auditors identified five students where the change in enrollment status was not reported in a timely manner. It was noted that we identified the status changes while there was a cybersecurity breach within the file transfer system used by the National Student Clearinghouse (NSC), our third-party servicer. As a result, our reporting was delayed. We received notice of the incident from the NSC on June 16, 2023. Our next planned transmission was scheduled for June 28. We postponed our regular reporting schedule for one week while we reset our secure FTP password with NSC, initialized our account in their updated system, and while our ITS security officer evaluated the risk. We ended up submitting the file to the NSC on July 5. As a result of this incident, we remain vigilant for external factors that may impact our reporting schedule. We will address them as quickly as possible to avoid reporting delays. Names of the contact persons responsible for corrective action: Gwenn Sherburne, Registrar Planned completion date for corrective action plan: By first reporting date for 2023-2024 academic year in early September 2023.

View Audit 292076

Finding 370485 (2023-001)

None 2023

Moses H Cone Memorial Hospital Operating Corporation, Inc.

NC

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

We have revised the calculation of the Paid Annual Leave award and verified that it uses the pay rates in effect at the time of the award for all employees. We confirmed that no other expenses for the COVID-19 Provider Relief Fund and American Rescue Plan (ARP) Rural Distribution (“Provider Relief ...

We have revised the calculation of the Paid Annual Leave award and verified that it uses the pay rates in effect at the time of the award for all employees. We confirmed that no other expenses for the COVID-19 Provider Relief Fund and American Rescue Plan (ARP) Rural Distribution (“Provider Relief Fund”) reporting involved costs subject to similar point in time report parameters. The change to this cost item does not impact the full utilization of the Provider Relief Fund due to the presence of other expenses in the same category along with unreimbursed expenses and unused lost revenues remaining after the funds were exhausted. The discrepancy was due to imprecise instructions in the request for information. In the future, such ad hoc requests and the responsive reports will be verified by the Executive Director of Corporate Accounting before use.

View Audit 292044 Questioned Costs: $1

Finding 370473 (2023-005)

Material Weakness 2023

East Porter County School Corporation

IN

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

Finding 2023-005 – Special Education Cluster – Procurement and Suspension and Debarment Contact Person Responsible for Corrective Action: Kimberly Nieves Contact Phone Number: 219-508-0504 Views of Responsible Official: We concur with the finding. Description of Corrective Action Plan: The Dir...

Finding 2023-005 – Special Education Cluster – Procurement and Suspension and Debarment Contact Person Responsible for Corrective Action: Kimberly Nieves Contact Phone Number: 219-508-0504 Views of Responsible Official: We concur with the finding. Description of Corrective Action Plan: The Director of Business Affairs & HR will work with the Special Education Coop to ensure compliance with the Procurement and Suspension and Debarment requirement. Anticipated Completion Date: February 2024

View Audit 292036

Finding 370465 (2023-004)

Significant Deficiency 2023

East Porter County School Corporation

IN

Matching / Level of Effort / Earmarking Internal Control / Segregation of Duties Allowable Costs / Cost Principles § 200.208 § 200.303 § 200.403

Finding 2023-004 – Special Education Cluster – Earmarking Contact Person Responsible for Corrective Action: Kimberly Nieves Contact Phone Number: 219-508-0504 Views of Responsible Official: We concur with the finding. Description of Corrective Action Plan: The Director of Business Affairs & H...

Finding 2023-004 – Special Education Cluster – Earmarking Contact Person Responsible for Corrective Action: Kimberly Nieves Contact Phone Number: 219-508-0504 Views of Responsible Official: We concur with the finding. Description of Corrective Action Plan: The Director of Business Affairs & HR will work with the Special Education Coop to ensure compliance with the Earmarking requirement. Anticipated Completion Date: February 2024

View Audit 292036

Finding 370462 (2023-003)

Material Weakness 2023

East Porter County School Corporation

IN

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

Finding 2023-003 – Child Nutrition Cluster – Special Tests and Provisions – Verification of Free and Reduced Price Applications Contact Person Responsible for Corrective Action: Kimberly Nieves Contact Phone Number: 219-508-0504 Views of Responsible Official: We concur with the finding. Descrip...

Finding 2023-003 – Child Nutrition Cluster – Special Tests and Provisions – Verification of Free and Reduced Price Applications Contact Person Responsible for Corrective Action: Kimberly Nieves Contact Phone Number: 219-508-0504 Views of Responsible Official: We concur with the finding. Description of Corrective Action Plan: As an internal control, the Director of Business Affairs and Human Resources has reviewed the process for Verification of Free and Reduced Price Applications. We have now contracted with a Food Service Director through NIESC. They will perform the Verification of Free and Reduced Price Applications and the Director of Business Affairs & HR will review these documents for accuracy. Anticipated Completion Date: FY24 Verification of Free and Reduced Price Application Review Period

View Audit 292036

Finding 370459 (2023-002)

Significant Deficiency 2023

East Porter County School Corporation

IN

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

Finding 2023-002 – Child Nutrition Cluster – Reporting Contact Person Responsible for Corrective Action: Kimberly Nieves Contact Phone Number: 219-508-0504 Views of Responsible Official: We concur with the finding. Description of Corrective Action Plan: As an internal control, the Food Service...

Finding 2023-002 – Child Nutrition Cluster – Reporting Contact Person Responsible for Corrective Action: Kimberly Nieves Contact Phone Number: 219-508-0504 Views of Responsible Official: We concur with the finding. Description of Corrective Action Plan: As an internal control, the Food Service Manager or Director of Food Service will prepare the reimbursement claim and the Director of Business Affairs and HR or Treasurer will review and initial the claims. This will ensure the accuracy of the reimbursement claim. Anticipated Completion Date: This Corrective Action was put into place in September 2022 following our prior audit. The Claim that was not signed for this Audit was from October 2021.

View Audit 292036

Finding 370453 (2023-008)

Material Weakness 2023

One City Schools, Inc.

WI

School Nutrition Programs Subrecipient Monitoring Internal Control / Segregation of Duties

Recommendation: Internal controls for accounting for nonprofit school food service funds should be implemented. A separate class in the accounting software for the program could be utilized. Action Taken: One City Schools developed a new financial class for School Nutrition, and all grant funds and ...

Recommendation: Internal controls for accounting for nonprofit school food service funds should be implemented. A separate class in the accounting software for the program could be utilized. Action Taken: One City Schools developed a new financial class for School Nutrition, and all grant funds and expenditures will be classed to School Nutrition so these funds are clearly segregated from others. One City Schools implemented these new class designations as of January 1, 2024. Additionally, OCS added relevant tasks in our monthly accounting procedures to check for miscodes and ensure grant funds and expenditures are correctly coded.

View Audit 292020

Finding 370449 (2023-007)

Material Weakness 2023

One City Schools, Inc.

WI

Questioned Costs Subrecipient Monitoring School Nutrition Programs § 200.302 § 200.334

Recommendation: One City Schools, Inc. should design and implement appropriate internal controls for retaining support for claims in accordance with federal requireents. Action Taken: One City Schools has developed a new process to document meal counts per month, attendance and enrollment numbers pe...

Recommendation: One City Schools, Inc. should design and implement appropriate internal controls for retaining support for claims in accordance with federal requireents. Action Taken: One City Schools has developed a new process to document meal counts per month, attendance and enrollment numbers per month, submission of claims, and the signature of a designated second approver, the COO. As each claim is made, the associated backup documentation will be presented to the second approver for their review and signature. Once approved, the entire packet of information will be retained. This process was initiated in December 2023.OCS completed the second designated approver review retroactively for all claims in the months of July, September, October, and November 2023.

View Audit 292020 Questioned Costs: $1

Finding 370445 (2023-006)

Material Weakness 2023

One City Schools, Inc.

WI

Subrecipient Monitoring School Nutrition Programs Matching / Level of Effort / Earmarking § 200.303

Recommendation: One City Schools, Inc. should design and implement appropriate internal controls for reviewing funding claims. Action Taken: One City Schools has developed a new process for submission where a second approver, the COO, reviews the claims for accuracy. This process started in December...

Recommendation: One City Schools, Inc. should design and implement appropriate internal controls for reviewing funding claims. Action Taken: One City Schools has developed a new process for submission where a second approver, the COO, reviews the claims for accuracy. This process started in December 2023, however OCS also completed this second approver review retroactively for all claims in July 2023, September 2023, October 2023, and November 2023.

View Audit 292020

Corrective Action Plans

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