Corrective Action Plans

Finding 501897 (2022-002)

Material Weakness 2022

Access, INC

CA

Questioned Costs Cash Management Material Weakness § 200.303

Management will undertake the following corrective actions to address the material weakness identified: 1.Provide additional training to staff involved in payroll processing. 2.Establish procedures and implement more precise controls to ensure that expenditures are properly reviewed and approved bef...

Management will undertake the following corrective actions to address the material weakness identified: 1.Provide additional training to staff involved in payroll processing. 2.Establish procedures and implement more precise controls to ensure that expenditures are properly reviewed and approved before being charged to a federal award.

View Audit 324040 Questioned Costs: $1

Finding 501896 (2022-001)

Material Weakness 2022

Access, INC

CA

Internal Control / Segregation of Duties Material Weakness Reporting

Access, Inc. concurs with the finding and has begun implementing corrective action. Access, Inc. has recently employed a CFO with extensive experience with the Department of Labor grants and contracts, to assist with the accounting process which will enhance the organizations’ ability to ensure acco...

Access, Inc. concurs with the finding and has begun implementing corrective action. Access, Inc. has recently employed a CFO with extensive experience with the Department of Labor grants and contracts, to assist with the accounting process which will enhance the organizations’ ability to ensure accounting records are accurate and complete.

View Audit 324040

Finding 501763 (2022-003)

Significant Deficiency 2022

Isuroon

MN

Reporting Significant Deficiency Internal Control / Segregation of Duties § 200.512

Isuroon acknowledges the audit finding and has taken proactive steps to implement a comprehensive corrective plan. The ongoing recruitment of an experienced finance director, as outlined, marks a crucial milestone in strengthening leadership and oversight within the finance department. This individu...

Isuroon acknowledges the audit finding and has taken proactive steps to implement a comprehensive corrective plan. The ongoing recruitment of an experienced finance director, as outlined, marks a crucial milestone in strengthening leadership and oversight within the finance department. This individual will bring invaluable expertise to ensure that accounting processes adhere to regulatory mandates, including those stipulated in 2 CFR 200.512. Furthermore, the engagement of a certified accounting firm for monthly reviews of the books of accounts underscores Isuroon's proactive approach to enhancing financial controls. This external oversight not only complements the efforts of the finance director but also provides an additional layer of assurance regarding the accuracy and completeness of accounting records throughout the fiscal year. Moreover, the CEO's commitment to closely monitor the accounting department and collaborate closely with the finance team, under the guidance of the new finance director, underscores Isuroon's dedication to timely reporting. The CEO's direct involvement will foster ongoing communication and cooperation, ensuring that periodic reports are promptly disseminated to donors, auditors, the board of directors, and all other relevant stakeholders. By leveraging these resources and fostering a culture of accountability and transparency, Isuroon is well-positioned to address the root causes of the audit findings and establish robust mechanisms for the timely submission of audit reporting packages in the future.

View Audit 323854

Finding 501760 (2022-002)

Significant Deficiency 2022

Isuroon

MN

Internal Control / Segregation of Duties Reporting Significant Deficiency

Isuroon acknowledges the impact of staff turnover and the critical need for strong leadership within the finance team. As outlined in our response to the first finding, we are actively recruiting an experienced Finance Director to provide leadership and expertise in internal control for nonprofit ac...

Isuroon acknowledges the impact of staff turnover and the critical need for strong leadership within the finance team. As outlined in our response to the first finding, we are actively recruiting an experienced Finance Director to provide leadership and expertise in internal control for nonprofit accounting. Additionally, comprehensive training on internal control, financial reporting and other relevant financial procedures will be provided to existing staff members. Furthermore, the engagement of a certified accounting firm to conduct monthly reviews of our financial records will ensure compliance with internal control procedures, providing feedback and guidance as needed. These measures are aimed at reinforcing internal controls, facilitating timely bank reconciliations, and demonstrating our unwavering commitment to transparency and accountability in financial management.

View Audit 323854

Finding 501757 (2022-001)

Material Weakness 2022

Isuroon

MN

Internal Control / Segregation of Duties Material Weakness Reporting

We agree that due to the turnover of finance staff and the lack of consistent leadership in the finance department, we realized the need for strong leadership for our finance team. Consequently, the recruitment of an experienced Finance Director is in process, who has extensive experience working wi...

We agree that due to the turnover of finance staff and the lack of consistent leadership in the finance department, we realized the need for strong leadership for our finance team. Consequently, the recruitment of an experienced Finance Director is in process, who has extensive experience working with nonprofit organizations, the U.S. government, and the United Nations. This new hire will ensure the finance department has strong leadership with a deep understanding of GAAP standards and the complexities involved in nonprofit accounting. Additionally, existing staff members will receive comprehensive training on GAAP and other relevant financial procedures to ensure they have the necessary knowledge and skills to perform their duties accurately. This training will be ongoing to keep the staff updated on any changes in accounting standards and practices. Furthermore, Isuroon will engage a certified accounting firm to conduct monthly reviews of its books of accounts. This firm will provide regular feedback and guidance, identifying any discrepancies or areas needing improvement and suggesting best practices to ensure compliance with GAAP and the accuracy of financial reporting. By implementing these measures, we aim to establish robust internal controls over the financial closing process, ensuring all necessary adjustments are recorded and reviewed in a timely manner. This comprehensive approach will mitigate the risk of material misstatements, enhance the reliability of financial statements, and demonstrate a commitment to transparency and accountability in financial management.

View Audit 323854

Finding 501723 (2022-001)

Significant Deficiency 2022

Disability Rights California

CA

Subrecipient Monitoring Reporting Internal Control / Segregation of Duties

CORRECTIVE ACTION PLAN For the Year Ended September 30, 2022 Finding 2022-001 Program: Coronavirus State and Local Fiscal Recovery Funds CFDA No.: 21.027 Federal Agency: U.S. Department of the Treasury Organization's Response: DRC agrees with the finding. Views of Responsible Officials: DRC agre...

CORRECTIVE ACTION PLAN For the Year Ended September 30, 2022 Finding 2022-001 Program: Coronavirus State and Local Fiscal Recovery Funds CFDA No.: 21.027 Federal Agency: U.S. Department of the Treasury Organization's Response: DRC agrees with the finding. Views of Responsible Officials: DRC agrees with the finding and has taken steps to rectify the finding. The schedule of expenditures of federal awards has been updated to include the $1,114,429 federal expenditures for the Coronavirus State and Local Fiscal Recovery Funds. The total federal expenditures were updated from $17,824,221 to $18,938,650. The schedule of expenditures of state awards has been updated to not include the $1,114,429 federal expenditures. The total state expenditures were updated from $19,710,395 to $18,595,966. DRC is monitoring and performing evaluations of individual grants to ensure expenditures are accurately captured and reported on the schedule of expenditures of federal awards. In addition, DRC maintains a thorough review process for the preparation of the schedule of expenditures of federal awards. Name of Responsible Person: Karen Keene, Associate Executive Director of Finance and Administration Anticipated Completion Date: September 4, 2024

View Audit 323803

Finding 501647 (2022-001)

None 2022

Bread & Roses Community Fund

PA

Reporting Internal Control / Segregation of Duties § 200.152

Finding 2022-001 Condition Bread & Roses Community Fund did not submit its June 30, 2022 reporting package within the required timeframe. 2 CFR 200.152(c) requires that an entity submit the audited financial statements and data collection form ("reporting package") within the earlier of 30 calendar ...

Finding 2022-001 Condition Bread & Roses Community Fund did not submit its June 30, 2022 reporting package within the required timeframe. 2 CFR 200.152(c) requires that an entity submit the audited financial statements and data collection form ("reporting package") within the earlier of 30 calendar days after receipt of the audit or nine months after the end of the audit period. Criteria Bread & Roses Community Fund is responsible for establishing internal controls to make sure the reporting package is submitted timely. Cause Bread & Roses Community Fund was not able to complete the reporting package by the required time period due to staffing issues. Effect Bread & Roses Community Fund did not submit its June 30, 2022 reporting package within the required timeframe. Recommendation Bread & Roses Community Fund should develop a reporting package timeline and submit the required documents within the earlier of 30 calendar days after receipt of the audit or nine months after the end of the audit period. View of Responsible Officials and Planned Corrective Action Management agrees with this recommendation. The COVID-19 pandemic presented significant challenges for Bread & Roses Community Fund. During the global pandemic, we doubled our commitment to the grassroots organizations we support and our stakeholders when other organizations paused programming. Despite key staff departures and substantial changes to service providers, we remained steadfast in our mission, working tirelessly to orchestrate fiscal operations and connect programmatic processes. This resulted in us needing more operational capacity to redirect resources to assist our 2 communities and those most affected by the pandemic. These shifts in operations contributed to a delay in submitting the reporting package for FY22. Management and the Board of Directors of Bread & Roses Community Fund are actively working to address the capacity challenges that lead to reporting delays through an extensive process review. The organization aims to build the necessary capacity to support and develop its fiscal infrastructure. In September 2023, Bread & Roses successfully hired our first internal Senior Director of Finance and Operations. Since then, Management has been diligently working to streamline processes, standardize procedures, and improve workflows between Bread & Roses's programmatic areas and finance. These improvements are designed to ensure operational efficiency, including the timely preparation and submission of the reporting package. We have established a routine month-end close through the checklist implementation completed by the Senior Director of Finance & Operations and reviewed by the Executive Director. The addition of this monthly process will ensure timely submission of the reporting package at year-end. While the work to develop BRCF's fiscal infrastructure is ongoing, we anticipate having a complete set of systems and controls to remediate findings by the end of FY25. Bread & Roses Community Fund Contact Person Tracy A. Jones 215.731.1107

View Audit 323681

Finding 500110 (2022-002)

Material Weakness 2022

Kendall Housing Authority

IL

HUD Housing Programs Material Weakness Reporting § 200.512

Condition 2: The Authority did not submit its audited financial statements to the Federal Audit Clearinghouse and to REAC by the required due dates. Corrective Action 2: The Authority has retained an accounting firm to serve as a fee accountant. Our fee accountants will complete the unaudited Financ...

Condition 2: The Authority did not submit its audited financial statements to the Federal Audit Clearinghouse and to REAC by the required due dates. Corrective Action 2: The Authority has retained an accounting firm to serve as a fee accountant. Our fee accountants will complete the unaudited Financial Data Schedule submission and provide workpapers to the auditors to enable a timely audited submission. Completion Date: September 30, 2023

View Audit 322949

Finding 499436 (2022-001)

Significant Deficiency 2022

Primrose Apartments, Inc.

PA

Questioned Costs HUD Housing Programs Significant Deficiency

View of Responsible Officials and Planned Corrective Action This finding relates to the late deposit of the required amount to the Replacement for Reserve as required by HUD. The late deposits were due to the timing of cash flows and the deficiency of cash available to make the deposit. The propert...

View of Responsible Officials and Planned Corrective Action This finding relates to the late deposit of the required amount to the Replacement for Reserve as required by HUD. The late deposits were due to the timing of cash flows and the deficiency of cash available to make the deposit. The property manager is in the process of working with HUD to increase rents and make the property more financially self-sufficient. The late deposits were made to the Replacement for Reserve before the end of the Organization’s year end, September 30, 2022. Therefore, no further corrective action plan is deemed necessary at this time.

View Audit 322284 Questioned Costs: $1

Finding 499022 (2022-003)

Significant Deficiency 2022

The Atlanta Botanical Garden, Inc.

GA

Significant Deficiency Internal Control / Segregation of Duties § 200.303

The Garden is in the process of reviewing its policy surrounding the review process for federal expenditures. The Garden will be implementing an approval process for all expenses on credit cards and other federal charges. Accounting will only charge the expense to the grants once it has verified t...

The Garden is in the process of reviewing its policy surrounding the review process for federal expenditures. The Garden will be implementing an approval process for all expenses on credit cards and other federal charges. Accounting will only charge the expense to the grants once it has verified the expense has gone through the proper approval channels.

View Audit 321803

Finding 498823 (2022-004)

Significant Deficiency 2022

Norman County

MN

Reporting Significant Deficiency Internal Control / Segregation of Duties § 200.303

Finding Number: 2022-004 Finding Title: Reporting Program: COVID-19 – Coronavirus State and Local Fiscal Recovery Funds (AL No. 21.027) Name of Contact Person Responsible for Corrective Action: David Stene, CFO Corrective Action Planned: Have the report reviewed by other county staff prior to sendin...

Finding Number: 2022-004 Finding Title: Reporting Program: COVID-19 – Coronavirus State and Local Fiscal Recovery Funds (AL No. 21.027) Name of Contact Person Responsible for Corrective Action: David Stene, CFO Corrective Action Planned: Have the report reviewed by other county staff prior to sending in the report. Anticipated Completion Date: 12/31/2023

View Audit 321563

Finding 497900 (2022-003)

None 2022

Total Community Action, Inc.

LA

Reporting Internal Control / Segregation of Duties § 200.512

1. Agency under the leadership of the CEO/CFO has invested and prioritized staff development in federal and state grant fiscal trainings, in support of timely and accurate financial statements. 2. CEO working with CFO will assure that all accounting and fiscal staff have access and support necessa...

1. Agency under the leadership of the CEO/CFO has invested and prioritized staff development in federal and state grant fiscal trainings, in support of timely and accurate financial statements. 2. CEO working with CFO will assure that all accounting and fiscal staff have access and support necessary to perform their assigned tasks and the segregation of duties. 3. CEO continues to assume full accountability to ensuring compliance with Board policy for monthly, quarterly fiscal reconciliations and reporting, supporting timely preparation of audit-ready financial statements, annual closeouts, and auditing. 4. Agency will issue RFP for independent auditor for FY 2024-2029 in September 2024, assuming that independent audotors will be engaged timely for the FY 2024 audit.

View Audit 320476

Finding 497562 (2022-006)

Material Weakness 2022

Inspiration Ministries, Inc.

IN

Internal Control / Segregation of Duties

Negative Opearting Cash ...

Negative Opearting Cash Views of Responsible Officials and Planned Corrective Actions: Management will enhance internal controls over restricted contributions and grants while implementing a system to track revenue and expenses for restricted funds. Inspiration has already hired a compliance administrator with the responsibility of tracking all local, state, and federal grant revenues and expenditures. Inspiration has also hired a position to enhance relationship development with funders and foundations to increase operating funds.

View Audit 320316

Finding 497561 (2022-005)

Significant Deficiency 2022

Inspiration Ministries, Inc.

IN

Reporting Internal Control / Segregation of Duties

Inadequate Controls Over Related Party Transactions Views of Responsible Officials and Planned Corrective Actions: Our 2021 findings were not reported until mid-year 2022. Management has included Butler CPA to help in accurately reporting and documenting internal and third-party transactions.

View Audit 320316

Finding 497558 (2022-002)

Material Weakness 2022

Inspiration Ministries, Inc.

IN

Reporting Internal Control / Segregation of Duties

Material Adjustments Views of Responsible Officials and Planned Corrective Actions: Management, with the inclusion of Butler CPA firm, will incorporate financial reporting internal controls to detect material adjustments, prevent materially misstated financial statements and increase the accuracy of...

Material Adjustments Views of Responsible Officials and Planned Corrective Actions: Management, with the inclusion of Butler CPA firm, will incorporate financial reporting internal controls to detect material adjustments, prevent materially misstated financial statements and increase the accuracy of the interim financial reports used by management.

View Audit 320316

Finding 497557 (2022-001)

Material Weakness 2022

Inspiration Ministries, Inc.

IN

Internal Control / Segregation of Duties Material Weakness

Segregation of Duties Views of Responsible Officials and Planned Corrective Actions: Management will continue to review processes to determine where improvements can be made. Our 2021 findings were not reported until mid-year 2022. As a part of Inspiration’s corrective action, we contracted with pro...

Segregation of Duties Views of Responsible Officials and Planned Corrective Actions: Management will continue to review processes to determine where improvements can be made. Our 2021 findings were not reported until mid-year 2022. As a part of Inspiration’s corrective action, we contracted with professional CPA firm, Butler CPA out of Kendallville, Indiana in August 2022. This has enhanced our efficiency, accuracy, and segregationof duties. The board of directors plays an active role in oversight of Inspiration Ministries Inc.’s ativities. The monthly board packets include but are not limited to reconciled financial statements such as profit and loss statement and balance sheet.

View Audit 320316

Finding 497470 (2022-013)

Material Weakness 2022

Clarendon County School District

SC

Internal Control / Segregation of Duties

The district no longer exists due to consolidation. Employee salaries will be reviewed annually to ensure proper pay in the new district by the departments of Finance and Human Resources. Anticipated completion date: 6/30/23

View Audit 320254

Finding 497469 (2022-011)

Material Weakness 2022

Clarendon County School District

SC

Internal Control / Segregation of Duties Procurement, Suspension & Debarment

The District no longer exists due to consolidation. Internal controls will be practiced in the new district by all appropriate personnel. Anticipated completion date: 6/30/23

View Audit 320254

Finding 497468 (2022-010)

Material Weakness 2022

Clarendon County School District

SC

Procurement, Suspension & Debarment Matching / Level of Effort / Earmarking Internal Control / Segregation of Duties

The District no longer exists due to consolidation. Internal controls will be practiced in the new district by the Director of Finance. Anticipated completion date: 6/30/23

View Audit 320254

Finding 497467 (2022-009)

Material Weakness 2022

Clarendon County School District

SC

School Nutrition Programs Internal Control / Segregation of Duties

The District no longer exists due to consolidation. Internal controls will be practiced in the new district by the Director of Finance. Anticipated completion date: 6/30/23

View Audit 320254

Finding 497457 (2022-006)

Material Weakness 2022

Lead Academy

AL

Cash Management Internal Control / Segregation of Duties § 200.302 § 200.303

The Uniform Guidance required that a grantee must establish and maintain records adequately reflecting the source and application of funds with information including authorizations, unobligated balances, expenditures, and income and that these be supported by source documentation that must be retain...

The Uniform Guidance required that a grantee must establish and maintain records adequately reflecting the source and application of funds with information including authorizations, unobligated balances, expenditures, and income and that these be supported by source documentation that must be retained for three years from the final expenditure report. Requests for reimbursement and their supporting information could not be located for three of six reimbursement requests. We recommend that a standardized file and documentation system be implemented for all grant reimbursement requests containing the reimbursement request with evidence of review and authorization and including the supporting expenditure reports. Views of Responsible Officials and Planned Corrective Actions: The Academy has contracted with an accounting and administrative contractor who has implemented a recordkeeping system for grant reimbursement requests and related supporting documentation.

View Audit 320243

Finding 497454 (2022-005)

Material Weakness 2022

Lead Academy

AL

Questioned Costs Internal Control / Segregation of Duties Cash Management § 200.303

here was inadequate oversight of activities and information provided by the contractor resulting in a material overstatement of meals claimed for the current year. Sufficient controls were not in place for the current fiscal year to ensure that an accurate meal count was claimed for USDA reimburseme...

here was inadequate oversight of activities and information provided by the contractor resulting in a material overstatement of meals claimed for the current year. Sufficient controls were not in place for the current fiscal year to ensure that an accurate meal count was claimed for USDA reimbursement. We recommend that a knowledgeable person be assigned responsibility for oversight of the child nutrition program. We further recommend procedures be implemented to provide oversight of contractor services and information provided including a review process for the USDA claims requests. Views of Responsible Officials and Planned Corrective Actions: The Academy has employed a supervisor responsible for overseeing the child nutrition program and the contract with the previous provider has terminated. Further, the Academy currently provides onsite meal service beginning with the 2022-23 school year provided by a new contractor.

View Audit 320243 Questioned Costs: $1

Finding 497381 (2022-001)

Material Weakness 2022

Waimanalo Health Center

HI

Internal Control / Segregation of Duties

We agree with the auditor’s recommendation of conducting monthly reconciliation and perform a secondary review of all reconciliation and journal entries to verify the accuracy and completeness of the financial statements. Here are our outlined measures to be implemented during the month of December ...

We agree with the auditor’s recommendation of conducting monthly reconciliation and perform a secondary review of all reconciliation and journal entries to verify the accuracy and completeness of the financial statements. Here are our outlined measures to be implemented during the month of December 2023: 1. Establish a structured procedure for reconciling material account balances on a monthly basis. Additionally, the Controller will be responsible for overseeing the reconciliations of key accounts. 2. The Controller will mandate the timely documentation and recording of any required adjusting entries identified during the reconciliation process. Stress the significance of offering clear explanations for the adjustments made. 3. The Controller will review to independently validate the accuracy and completeness of reconciliations, cross-referencing them with supporting documents.

View Audit 320125

Finding 497230 (2022-001)

Material Weakness 2022

Community Service Council of Greater Tulsa, Inc.

OK

Eligibility Material Weakness Internal Control / Segregation of Duties

Item 2022-001 – Eligibility: Eligibility for Individuals Federal Program – Healthy Start Initiative Assistance Listing Number – 93.926 Material Weakness Condition: The Council did not have internal controls established for an independent review that the participants accepted into the program met t...

Item 2022-001 – Eligibility: Eligibility for Individuals Federal Program – Healthy Start Initiative Assistance Listing Number – 93.926 Material Weakness Condition: The Council did not have internal controls established for an independent review that the participants accepted into the program met the qualifying criteria. Eligibility may be determined by the Council employees or by certain health care facilities. Corrective Action: The Healthy Start Program does monitor clients closely for eligibility according to their residential zip code (the primary criteria for eligibility.) and verified perinatal status. The Fatherhood Program, requires participants have a partner who participated in the Healthy Start program. Beginning October 1, 2022, the Program Coordinator for Healthy Start reviewed the eligibility documentation to verify status but did not sign documentation for this verification. The Healthy Start Program transitioned to another local non-profit October 31, 2023.

View Audit 319820

Finding 497055 (2022-006)

Significant Deficiency 2022

Disability Empowerment Center

WA

Procurement, Suspension & Debarment Allowable Costs / Cost Principles Cash Management § 200.303

ACL Centers for Independent Living – Assistance Listing No. 93.435 Type of Finding: Allowable Activities and Allowable Costs – General Disbursements • Significant Deficiency in Internal Control over Compliance Criteria or specific requirement: Per 2 CFR 200.303, non-Federal entities must establish a...

ACL Centers for Independent Living – Assistance Listing No. 93.435 Type of Finding: Allowable Activities and Allowable Costs – General Disbursements • Significant Deficiency in Internal Control over Compliance Criteria or specific requirement: Per 2 CFR 200.303, non-Federal entities must establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statues regulations, and the terms and conditions of the Federal award. Condition: Documentation not maintained to support one cash disbursement. Questioned costs: None Context: 1/40 of the general disbursements tested lacked indication of approval. Deemed to be an isolated incident as the vendor in question provides physical receipts to DEC, which is an unusual and infrequent method. Limited transactions with said vendor. Cause: Vendor purchases are in-person and physical receipt is obtained. This is unusual for common vendors used and leads to more opportunity for documentation loss. Effect: Reimbursement requests could be made for unallowed expenditures. Repeat Finding: No Recommendation: Review document retention process to ensure all costs that are charged to a federal program are adequately reviewed and documentation of that process is maintained. If documentation is not available, costs should not be charged to the Federal program. Views of responsible officials: There is no disagreement with the audit finding. Action taken in response to finding: This was an isolated incident and DEC now takes steps to digitally record physical receipts with a photograph as soon as possible. Name(s) of the contact person(s) responsible for corrective action: Kimberly Meck, Executive Director Planned completion date for corrective action plan: Already implemented.

View Audit 319773

Corrective Action Plans

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