Corrective Action Plans

Finding 375389 (2023-001)

Significant Deficiency 2023

AR

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

Corrective Action Plan - LaDonna Spain will contact the Arkansas Department of Education (ADE), Division of Elementary and Secondary Education (DESE) for guidance as a new employee to the district regarding this previous year matter, seek to clarify newly implemented controls or program expenditures...

Corrective Action Plan - LaDonna Spain will contact the Arkansas Department of Education (ADE), Division of Elementary and Secondary Education (DESE) for guidance as a new employee to the district regarding this previous year matter, seek to clarify newly implemented controls or program expenditures, and implement program controls and DESE recommended controls regarding expenditures from the Education Stabilization Fund.

View Audit 294457

Finding 374738 (2023-003)

Significant Deficiency 2023

Saunders County

NE

Subrecipient Monitoring Allowable Costs / Cost Principles Reporting § 200.303

The County Attorney is writing up a policy.

View Audit 294434

Finding 374719 (2023-001)

Significant Deficiency 2023

Eagle Academy Public Charter School

DC

Questioned Costs Reporting Internal Control / Segregation of Duties § 200.510

Prior to the year-end of June 30, 2023, Eagle Academy PCS had several federal grants that were approved and open for drawdown in May 2023. These were all related to grants budget to be reimbursed to the school during the 2022-2023 school year. Due to the late approval of the grants, the school and m...

Prior to the year-end of June 30, 2023, Eagle Academy PCS had several federal grants that were approved and open for drawdown in May 2023. These were all related to grants budget to be reimbursed to the school during the 2022-2023 school year. Due to the late approval of the grants, the school and management didn’t have enough time to submit reimbursement requests and submit amendments. The amendments were submitted during the SB&Company’s audit preparation period. As a result, these amendments were all pending approval even though the expenditures already incurred in FY2023. Management has contracted with a third-party vendor that will be responsible for managing all grant reporting, applications, amendments, and reconciliations. This will strengthen the school year end closing process.

View Audit 294423

Finding 374715 (2023-003)

Material Weakness 2023

Monroe Central School Corporation

IN

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

Finding 2023-003 – Education Stabilization Fund - Activities Allowed or Unallowed, Allowable Costs- Cost Principles Contact Person Responsible for Corrective Action: Jessica Cheesman Contact Phone Number: 765-468-6868 Views of Responsible Official: We concur with the finding. Description of Co...

Finding 2023-003 – Education Stabilization Fund - Activities Allowed or Unallowed, Allowable Costs- Cost Principles Contact Person Responsible for Corrective Action: Jessica Cheesman Contact Phone Number: 765-468-6868 Views of Responsible Official: We concur with the finding. Description of Corrective Action Plan: Superintendent will sign off on all vouchers going forward and all vocuhers from 07/01/2023 to 12/31/2023 Anticipated Completion Date: 04/30/2024

View Audit 294418

Finding 374681 (2023-002)

Significant Deficiency 2023

Shelbyville Central Schools

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: Michelle Babcock Contact Phone Number: 317-392-2505 Views of Responsible Official: We concur with the finding. Description of Correct...

Finding 2023-002 – Child Nutrition Cluster - Activities Allowed or Unallowed, Allowable Costs/Cost Principles Contact Person Responsible for Corrective Action: Michelle Babcock Contact Phone Number: 317-392-2505 Views of Responsible Official: We concur with the finding. Description of Corrective Action Plan: We have established an improved internal controls procedures with internal purchases. The items requested will be submitted in writing and when the items are delivered to the perspective department or building, a signature will be obtained to confirm the items were delivered internally before the funds will be transferred to/from the respective accounts. Anticipated Completion Date: January 2024

View Audit 294371

Finding 374671 (2023-003)

Material Weakness 2023

Lyons Elementary School District 103

IL

School Nutrition Programs Questioned Costs Eligibility

Condition: The District did not select and verify the required sample of approved free and reduced price applications by the required deadline. Plan: The district will have a calendar reminder to begin auditing applications on Oct. 1 and complete the process with submission to ISBE by December 15. A...

Condition: The District did not select and verify the required sample of approved free and reduced price applications by the required deadline. Plan: The district will have a calendar reminder to begin auditing applications on Oct. 1 and complete the process with submission to ISBE by December 15. Anticipated Date of Completion: 12/31/2024 Name of Contact Person Yasmine Dada, Business Manager ________________________________________________

View Audit 294356

Finding 374668 (2023-001)

Significant Deficiency 2023

Bethany Presbyterian Manor

MI

Internal Control / Segregation of Duties HUD Housing Programs Reporting

Condition: There was a lack of timely reconciliation performed withdrawals by the Organization to ensure all from the replacement reserve account had proper HUD deposits were approval, all required monthly made, and HUD-approved loans were repaid timely. The Organization from HUD for a $30,848 loan ...

Condition: There was a lack of timely reconciliation performed withdrawals by the Organization to ensure all from the replacement reserve account had proper HUD deposits were approval, all required monthly made, and HUD-approved loans were repaid timely. The Organization from HUD for a $30,848 loan advance received approval to be repaid to the replacement reserve when the November voucher payment was received (November 18, 2022); however, the loan was not repaid until January 18, 2023 Planned Corrective Action: Management acknowledges the significant deficiency in internal control over compliance and has taken measures to improve internal acknowledges control over compliance. Management also that it did not repay the replacement reserve timely received, but with voucher funds subsequently it did repay the $30,848 advance to the replacement reserve account on January 18, 2023. Contact person responsible for corrective action: Bruce Blalock, Sr. VP of Finance and Obligated Group Operations Anticipated Completion Date: January 18, 2023

View Audit 294343

Finding 374666 (2023-001)

Significant Deficiency 2023

Peace Presbyterian Village Dba the Village of Peace Manor 044-Ee019

MI

Internal Control / Segregation of Duties HUD Housing Programs Reporting

Condition: During the year ended June 30, 2023, the Organization had 5 withdrawals from the replacement reserve totaling $150,316. Of these withdrawals, $71,998 was properly supported and $78,318 was withdrawn without proper HUD approval. The lack of timely reconciliations resulted in unauthorized a...

Condition: During the year ended June 30, 2023, the Organization had 5 withdrawals from the replacement reserve totaling $150,316. Of these withdrawals, $71,998 was properly supported and $78,318 was withdrawn without proper HUD approval. The lack of timely reconciliations resulted in unauthorized amounts transferred out of the replacement reserve and the funds were not returned to the replacement reserve account by June 30, 2023. Planned Corrective Action: Management acknowledges the significant deficiency in internal control over compliance since it did not obtain prior HUD approval for 3 withdrawals totaling $78,318 during the year ended June 30, 2023 and is implementing measures to improve this internal control over compliance. Management returned the $78,318 to the replacement reserve account in August 2023. Contact person responsible for corrective action: Bruce Blalock, Sr. VP of Finance and Obligated Group Operations Anticipated Completion Date: August 2, 2023

View Audit 294341

Finding 374664 (2023-001)

Significant Deficiency 2023

The Village of Oakman Manor

MI

Internal Control / Segregation of Duties HUD Housing Programs Reporting

Condition: There was a lack of timely reconciliation performed by the Organization to ensure all withdrawals from the replacement reserve account had proper HUD approval, all required monthly deposits were made, and HUD approved loans were repaid timely. The Organization received approval from HUD f...

Condition: There was a lack of timely reconciliation performed by the Organization to ensure all withdrawals from the replacement reserve account had proper HUD approval, all required monthly deposits were made, and HUD approved loans were repaid timely. The Organization received approval from HUD for a $27,743 loan advance to be repaid to the replacement reserve by January 31, 2023; however, the loan was not repaid until April 17, 2023. Planned Corrective Action: Management acknowledges the significant deficiency in internal control over compliance and has taken measures to improve internal control over compliance Management also acknowledges that it did not repay the replacement reserve timely with voucher funds subsequently received, but it did repay the $27,743 advance to the replacement reserve account on April 17, 2023 Contact person responsible for corrective action: Bruce Blalock, Sr. VP of Finance and Obligated Group Operations Anticipated Completion Date: April 17, 2023

View Audit 294338

Finding 374662 (2023-001)

Significant Deficiency 2023

Spring Meadows II- Village of Spring Meadows II 047-Ee047

MI

Internal Control / Segregation of Duties HUD Housing Programs Reporting

Condition: There was a lack of timely reconciliation performed by the Organization of the replacement reserve account activity. The Organization received approval in 2019 from HUD for a $22,427 loan advance to be repaid to the replacement reserve when the January 2019 voucher payment was received. O...

Condition: There was a lack of timely reconciliation performed by the Organization of the replacement reserve account activity. The Organization received approval in 2019 from HUD for a $22,427 loan advance to be repaid to the replacement reserve when the January 2019 voucher payment was received. Of this amount, $6,740 was received and deposited back into the replacement reserve in 2019. The remaining $15,687 was received by the Organization on February 6, 2023, however, this amount was not deposited back to the replacement reserve until after year end, on August 16, 2023. Planned Corrective Action: Management acknowledges the significant deficiency in internal control over compliance that resulted in the late deposit back into the replacement reserve account as required and has taken measures to improve internal control over compliance. Contact person responsible for corrective action: Bruce Blalock, Sr. VP of Finance and Obligated Group Operations Anticipated Completion Date: August 16, 2023

View Audit 294335

Finding 374661 (2023-002)

None 2023

Presbyterian Village Holly

MI

HUD Housing Programs Internal Control / Segregation of Duties Procurement, Suspension & Debarment

Finding Number: 2023-002 Condition: The Organization failed to refund the security deposit to a tenant within 30 days of their move out date. Planned Corrective Action: Management acknowledges noncompliance in the current fiscal year and returned the security deposit to the resident on December 22, ...

Finding Number: 2023-002 Condition: The Organization failed to refund the security deposit to a tenant within 30 days of their move out date. Planned Corrective Action: Management acknowledges noncompliance in the current fiscal year and returned the security deposit to the resident on December 22, 2022, 41 days after their move out. Contact person responsible for corrective action: Bruce Blalock, Sr. VP of Finance and Obligated Group Operations Anticipated Completion Date: December 22, 2022

View Audit 294333

Finding 374660 (2023-001)

None 2023

Presbyterian Village Holly

MI

HUD Housing Programs Procurement, Suspension & Debarment Reporting

Condition: The Organization deposited prior year surplus cash 139 days after the deadline as stated in the Real Estate Assessment Center's Summary of Financial Reporting and Auditing Guidance for HUD (FRAG Guide) under Section 2.8. Planned Corrective Action: Management acknowledges noncompliance in ...

Condition: The Organization deposited prior year surplus cash 139 days after the deadline as stated in the Real Estate Assessment Center's Summary of Financial Reporting and Auditing Guidance for HUD (FRAG Guide) under Section 2.8. Planned Corrective Action: Management acknowledges noncompliance in the current fiscal year and has taken measures to improve internal controls over compliance. Management deposited the surplus cash amount of $10,197 into residual receipts on February 14, 2023. Contact person responsible for corrective action: Bruce Blalock, Sr. VP of Finance and Obligated Group Operations Anticipated Completion Date: February 14, 2023

View Audit 294333

Finding 374658 (2023-002)

Significant Deficiency 2023

Hillside Apartments Phase Ii, Inc.

MI

Internal Control / Segregation of Duties HUD Housing Programs Reporting

Finding Number: 2023-002 Condition: There was a lack of timely reconciliation performed by the Organization to ensure all withdrawals from the replacement reserve account had proper HUD approval, all required monthly deposits were made, and HUD approved loans were repaid timely The Organization rece...

Finding Number: 2023-002 Condition: There was a lack of timely reconciliation performed by the Organization to ensure all withdrawals from the replacement reserve account had proper HUD approval, all required monthly deposits were made, and HUD approved loans were repaid timely The Organization received approval from HUD for a $35,000 loan advance to be repaid to the replacement reserve when unpaid voucher payments were received (October 31, 2022); however, the loan was not repaid until December 13, 2022. Planned Corrective Action: Management acknowledges the significant deficiency in internal control over compliance and has taken measures to improve internal control over compliance Management also acknowledges that it did not repay the replacement reserve timely with voucher funds subsequently received, but it did repay the $35,000 advance to the replacement reserve account on December 13, 2022. Contact person responsible for corrective action: Bruce Blalock, Sr. VP of Finance and Obligated Group Operations Anticipated Completion Date: December 13, 2022

View Audit 294332

Finding 374656 (2023-002)

Significant Deficiency 2023

Piloted Schools of Indiana, Inc.

IN

Reporting Matching / Level of Effort / Earmarking Internal Control / Segregation of Duties § 200.329

Finding 2023-002 - Reporting Transitions in operations positions over the course of the first years of ESSER distributions and reimbursements, combined with the first round of data collection resulted in discrepancies between state reports and internal records. A thorough review of past reports and ...

Finding 2023-002 - Reporting Transitions in operations positions over the course of the first years of ESSER distributions and reimbursements, combined with the first round of data collection resulted in discrepancies between state reports and internal records. A thorough review of past reports and data will be completed to identify errors by the School Principal (Jennica Adkins) and future reports will be completed in conjunction with Bookkeeping Plus (Tina Spencer) to ensure accuracy. This will be completed before the next round of ESSER reports due April 2024.

View Audit 294330

Finding 374648 (2023-001)

Significant Deficiency 2023

Statewide Bay Landing Ii, Inc.

RI

HUD Housing Programs Internal Control / Segregation of Duties

We have obtained the required information

View Audit 294325

Finding 374646 (2023-001)

Significant Deficiency 2023

Statewide Bay Landing, Inc.

RI

HUD Housing Programs Internal Control / Segregation of Duties

We have obtained the required information.

View Audit 294324

Finding 374642 (2023-002)

Significant Deficiency 2023

Matchbook Learning Schools of Indiana, Inc.

IN

Reporting Significant Deficiency Internal Control / Segregation of Duties

FINDING 2023-002 MAINTENANCE OF EFFORT (REPEAT FINDING) SIGNIFICANT DEFICIENCY February 28, 2024 Donovan CPAs 9292 N. Meridian Street, Suite 150 Indianapolis, IN 46260 Matchbook Learning Schools of Indiana, Inc. has already or will take the following actions to Address the Form 9 finding 1. We...

FINDING 2023-002 MAINTENANCE OF EFFORT (REPEAT FINDING) SIGNIFICANT DEFICIENCY February 28, 2024 Donovan CPAs 9292 N. Meridian Street, Suite 150 Indianapolis, IN 46260 Matchbook Learning Schools of Indiana, Inc. has already or will take the following actions to Address the Form 9 finding 1. We will continue to manage the differences in timing and required reporting that exist for charter schools in the state of Indiana. As part of that, we will monitor our cash basis fund reporting on our Form 9 submission and adjust as necessary. Adjustments are typically required when we either make accrual-based receivable and payable adjustments or when we receive retroactive grant budget approvals after a Form 9 reporting deadline has already passed. We are working on improving this reconciliation process so our individual fund Form 9 cash balances will be more accurately reflected when tied to our accrual-base fund balances. 2. We are transitioning to a new business services provider in the last quarter of fiscal year 2024. We will work with them to adjust our Form 9 reporting process. Individual Responsible - Don Stewart Matchbook Learning Schools of Indiana, Inc. Management Donald Stewart, Director of Operations

View Audit 294323

Finding 374626 (2023-001)

Significant Deficiency 2023

Decorah Community School District

IA

Internal Control / Segregation of Duties

Management is cognizant of this limitation and will implement additional procedures where possible.

View Audit 294303

Finding 374618 (2023-001)

Significant Deficiency 2023

Perquimans County

NC

Questioned Costs Eligibility Internal Control / Segregation of Duties

Perquimans County Department of Social Services unit will continue to 2nd party cases monthly, randomly review workers online data and continue to train on the important of pulling current and accurate information from the online data system. IMS will implement a Power point presentation to illustra...

Perquimans County Department of Social Services unit will continue to 2nd party cases monthly, randomly review workers online data and continue to train on the important of pulling current and accurate information from the online data system. IMS will implement a Power point presentation to illustrate the importance of the information the County utilizes from the online and work number systems.

View Audit 294291

Finding 374610 (2023-001)

Significant Deficiency 2023

Concordia University, Nebraska

NE

Questioned Costs Student Financial Aid Significant Deficiency

Student Financial Assistance Cluster – Assistance Listing No. Various Recommendation: We recommend the University evaluate its procedures and a policy around how level of education is determined and verified when packaging and awarding students. Explanation of disagreement with audit finding: There ...

Student Financial Assistance Cluster – Assistance Listing No. Various Recommendation: We recommend the University evaluate its procedures and a policy around how level of education is determined and verified when packaging and awarding students. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: The Student Financial Aid Office will add an additional step to the policy for verifying and reviewing student loan levels. In addition to reviewing loan level reports before the beginning of the academic year, we will also review loan levels after the census date of the first semester of the academic year. This added step will catch any changes that were made to student packaging up to the census date. Name(s) of the contact person(s) responsible for corrective action: David L Kumm, Executive VP CFO/COO Planned completion date for corrective action plan: 7/1/2023

View Audit 294279 Questioned Costs: $1

Finding 374600 (2023-003)

Material Weakness 2023

Spencer Community School District

IA

Internal Control / Segregation of Duties

SEE RESPONSE AND CORRECTIVE ACTION PLAN AT 2023-001

View Audit 294275

Finding 374586 (2023-007)

Material Weakness 2023

City of Olean, New York

NY

Reporting Internal Control / Segregation of Duties

Auditor’s Recommendations: Budgets – A written policy should be established and communicated on preparing a budget versus actual report for all capital projects exceeding a certain dollar level. Any discrepancies should be explained in writing so that necessary corrective action, if any, can be ...

Auditor’s Recommendations: Budgets – A written policy should be established and communicated on preparing a budget versus actual report for all capital projects exceeding a certain dollar level. Any discrepancies should be explained in writing so that necessary corrective action, if any, can be considered. These analyses should be provided to City management and the Common Council on a monthly basis. City’s Response: Budgets - The City concurs with the auditor’s recommendations that a written policy should be established and communicated in preparing budgeted versus actual reporting for capital project budgets in excess of a yet to be determined monetary threshold. The City intends to develop a policy on budgets during 2024. Once drafted, the Audit and Compliance Committee intends to review policy, prior to its acceptance by the Common Council.

View Audit 294247

Finding 374572 (2023-005)

Material Weakness 2023

City of Olean, New York

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 City should continue to review and accept both proposed adjusting journal entries and footnote disclosures, along with the draft financial statements. ...

Auditor’s Recommendation: Although auditors may continue to provide such assistance both now and in the future, under this pronouncement, the City should continue to review and accept both proposed adjusting journal entries and footnote disclosures, along with the draft financial statements. City’s Response: The City Auditor, Lens Martial, has received, reviewed and approved 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 May 31, 2024 and in future years. Further, the City believes it has a thorough understanding of these financial statements and has the ability to make informed judgments based on these financial statements.

View Audit 294247

Finding 374571 (2023-002)

Material Weakness 2023

Richland County, South Carolina

SC

Reporting Internal Control / Segregation of Duties

Finding: 2023-002 – Submission of ERA Compliance Reports and Final ERA 1 Closeout Report Name of contact person: Sarah Harris – Director of Grants and Community Outreach Corrective action: Richland County management agrees with the auditor’s recommendation. Proposed completion date: Management is aw...

Finding: 2023-002 – Submission of ERA Compliance Reports and Final ERA 1 Closeout Report Name of contact person: Sarah Harris – Director of Grants and Community Outreach Corrective action: Richland County management agrees with the auditor’s recommendation. Proposed completion date: Management is aware of ERAP reporting requirements and has discussed using a third party who in the future would submit reports in a timely manner.

View Audit 294246

Finding 374540 (2023-003)

Material Weakness 2023

Maywood-Melrose Park-Broadview School District 89

IL

Questioned Costs Allowable Costs / Cost Principles Cash Management

Corrective Action Plan Finding No.: 2023- 003 Condition: Audit procedures identified that during fiscal year 2023, the District claimed four construction related invoices that amounted to $1,257,867 of ESSER III award expenditures that were previously claimed under fiscal year 2022 ESSER award reimb...

Corrective Action Plan Finding No.: 2023- 003 Condition: Audit procedures identified that during fiscal year 2023, the District claimed four construction related invoices that amounted to $1,257,867 of ESSER III award expenditures that were previously claimed under fiscal year 2022 ESSER award reimbursement claims and were reported on the fiscal year 2022 Schedule of Expenditures of Federal Awards. The District was able to identify alternate invoices that where for allowable costs within the existing grant agreement and were not previously claimed. The District's internal controls did not initially identify that the same expenditure was claimed twice under the federal award for reimbursement. Plan: The District will implement additional procedures and review processes to ensure that expenditures claimed for reimbursement are for allowable costs that have not been previously claimed for reimbursement. Anticipated Date of Completion: June 30, 2024 Name of Contact Person: James Vreeland, Business Manager Management Response: See above

View Audit 294244

Corrective Action Plans

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