Corrective Action Plans

Finding 43899 (2022-001)

Significant Deficiency 2022

MA

HUD Housing Programs Internal Control / Segregation of Duties Reporting

In 2022, management noticed inconsistencies in PIC submissions in terms of timeliness and accuracy. After further review and monitoring, management shifted responsibility to one point person in leased housing at the Deputy Director level who was well versed in nuances and complexities of PIC submiss...

In 2022, management noticed inconsistencies in PIC submissions in terms of timeliness and accuracy. After further review and monitoring, management shifted responsibility to one point person in leased housing at the Deputy Director level who was well versed in nuances and complexities of PIC submissions to HUD. Since this transition in September 2022, PIC submissions to HUD have been timely. Management took further steps to engage an outside contractor to evaluate processes and skill sets required to submit PIC submissions with high degree of accuracy combined with timely submissions.

View Audit 45602

Finding 43886 (2022-001)

Significant Deficiency 2022

Nbcc

CA

Subrecipient Monitoring Allowable Costs / Cost Principles Significant Deficiency § 200.303

Management Response and Planned Corrective Action 1. While the current Internal Controls Manual allows for certain expenditures to be made with verbal and/or written approval from the Executive Director, the control does not state a dollar amount or specific circumstance for verbal approval and the...

Management Response and Planned Corrective Action 1. While the current Internal Controls Manual allows for certain expenditures to be made with verbal and/or written approval from the Executive Director, the control does not state a dollar amount or specific circumstance for verbal approval and therefore the control has been clarified as follows: All funds to be expended must be approved by the Executive Director, either verbally or in writing, prior to the expenditure. Program staff may then request that the FA, OM or Administrative Associate purchase the needed expense either by debit card or credit card or produce a check for the ED?s signature. All requests for purchase must follow the same backup paperwork procedures outlined in the AP Procedures section. For all routine essential office supply individual item purchases $250 and under, the OM or FA has approval to make these purchases without ED verbal or written approval prior to the expenditure. All expenditures for individual items above $250 must be verbally approved by the ED prior to purchase and documented via email which then should be attached to the purchase documentation. Purchases $1,500 and above should follow the procurement policy outlined below in Control No. 21. In addition, the procurement control has been clarified with updated language as follows: For goods and services $1,499 and under, Executive Director approval is required as per the purchase policy above referenced in Control No. 17. 2. NBCC maintains an onboarding process and checklist which includes the completion of the I-9 for each employee. This process is strictly followed. The three employees identified during the testing that lacked a completed I-9 on file were for one employee who was hired during the initial period of the COVID lockdown when all processes were significantly impacted by the initial COVID quarantine, and the remaining two were onboarded by a staff member serving temporarily in the human resources position after the exiting human resources staff member did not return from a medical leave of absence. All current staff have completed I-9?s on file and there is every expectation that this control will continue to be enforced. As an additional guarantee of having a completed I-9 in place, NBCC has asked our external accounting firm, Vista Financial, to create an additional control where a new employee is not onboarded into Quickbooks for payroll without the completed I-9.

View Audit 45959

Finding 43883 (2022-001)

Significant Deficiency 2022

Diakon Frostburg Senior Housing, LLC

PA

HUD Housing Programs Special Tests & Provisions Procurement, Suspension & Debarment

A. Current Findings on the Schedule of Findings and Questioned Costs 1. Finding 2022-001 a. Comments on the Finding and Recommendation: Management agrees with the finding and the recommendation provided by the auditor. b. Action(s) Taken or Planned on the Finding As noted in the finding, there was s...

A. Current Findings on the Schedule of Findings and Questioned Costs 1. Finding 2022-001 a. Comments on the Finding and Recommendation: Management agrees with the finding and the recommendation provided by the auditor. b. Action(s) Taken or Planned on the Finding As noted in the finding, there was staff turnover of key employees in the Finance department, and the submission of the form HUD-9250 was missed. Upon review of year end balances, the current Finance staff identified that we missed the HAP offset, and we contacted our HUD representative and rectified the situation. The offset was taken on the March 2023 HAP payment. The current accountant responsible for reconciling Frostburg's accounts has been provided education related to Notice H-2012-14. Monthly balance sheet reconciliations will be prepared by the accountant and reviewed by the Finance director, to ensure that required HAP offsets are made timely.

View Audit 44166

Finding 43881 (2022-001)

Significant Deficiency 2022

Npower Inc.

NY

Internal Control / Segregation of Duties Cash Management Reporting

September 21, 2023 Baker Tilly US, LLP 1500 RXR Plaza ? West Tower Uniondale, New York 11556 Dear Auditors: In connection with your audit of the federal awards received by NPower Inc. for the year ended December 31, 2022, in accordance with Government Auditing Standards and Title 2 U.S. Code of F...

September 21, 2023 Baker Tilly US, LLP 1500 RXR Plaza ? West Tower Uniondale, New York 11556 Dear Auditors: In connection with your audit of the federal awards received by NPower Inc. for the year ended December 31, 2022, in accordance with Government Auditing Standards and Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance), the following outlines NPower Inc.?s plans to address the Federal Awards Finding from the audit report: Finding Criteria: Management is responsible for controls over review of drawdown requests and reporting. Condition/Context: The individual preparing the drawdown request and reporting is the same individual that submits the documents. Cause: The size of the Organization does not allow for proper segregation of duties for drawdown requests and reporting. Effect: Errors in the drawdown requests and reporting may occur and not be detected within a timely period. Resolution ? Effective immediately, for all federal awards, to address the fact that the individual preparing the drawdown requests and reporting is the same individual that submits the documents, we will implement the following: a. I will prepare the drawdown requests and report for submission and submit the documents to Stefanie Boles, our Chief Administrative Officer, for her review and approval to submit to the funding source for reimbursement. b. Upon receipt of approval from Stefanie, the reporting for the grant will be submitted as appropriate to the funding source. This process will remain in effect until such time as we have a more junior staff person who can prepare the reporting and submit it to me for review. Please let me know if you have any questions about the proposed resolution approach. ????????????????? Thomas Sussman Vice President, Finance & Business Operations

View Audit 38665

Finding 43879 (2022-003)

Material Weakness 2022

Mitchell Hamline School of Law

MN

Reporting Matching / Level of Effort / Earmarking Internal Control / Segregation of Duties § 200.303

Identifying Number: 2022-003 Finding: While testing reporting, we noted that there were not controls or approvals over the reporting requirement for the HEERF program. Corrective Actions Taken or Planned: Student funds for HEERF have been exhausted so no additional reporting should be required fo...

Identifying Number: 2022-003 Finding: While testing reporting, we noted that there were not controls or approvals over the reporting requirement for the HEERF program. Corrective Actions Taken or Planned: Student funds for HEERF have been exhausted so no additional reporting should be required for them. For all institutional HEERF funds reporting, both the Financial Aid Director and the Controller review the information and complete the Institutional reporting PDF. Once posted, the PDF is emailed to the Department of Educations as a time stamp to show it was completed on time. Contact Person: Nick Anderson Director of Financial Aid ? Deb Kessler Controller Anticipated Completion Date: 7/10/2022

View Audit 52368

Finding 43878 (2022-002)

Significant Deficiency 2022

Mitchell Hamline School of Law

MN

Matching / Level of Effort / Earmarking Internal Control / Segregation of Duties § 200.334

Identifying Number: 2022-02 Finding: HEERF Activities Allowed or Unallowed While testing activities allowed or unallowed in the audit of 2020-2021 award year, we noted that there was a lack of a written plan to provide objective criteria for the distribution of funds until April 2022. Corrective A...

Identifying Number: 2022-02 Finding: HEERF Activities Allowed or Unallowed While testing activities allowed or unallowed in the audit of 2020-2021 award year, we noted that there was a lack of a written plan to provide objective criteria for the distribution of funds until April 2022. Corrective Actions Taken or Planned: School now has a documented plan on file for disbursing HEERF funds. Contact Person: Lynn LeMoine Dean of Students ? Nick Anderson Director of Financial Aid Anticipated Completion Date: 4/11/2022

View Audit 52368

Finding 43873 (2022-001)

Significant Deficiency 2022

City Colleges of Chicago

IL

Reporting Internal Control / Segregation of Duties § 200.303

Finding 2022-001 ? COVID-19 Education Stabilization Fund: Higher Education Emergency Relief Fund Reporting Condition City Colleges did not have sufficient documentation that internal controls were in place and operating effectively relative to the following areas: ? HEERF Student Reporting: City ...

Finding 2022-001 ? COVID-19 Education Stabilization Fund: Higher Education Emergency Relief Fund Reporting Condition City Colleges did not have sufficient documentation that internal controls were in place and operating effectively relative to the following areas: ? HEERF Student Reporting: City Colleges did not have sufficient supporting evidence that review controls were performed over the July 1, 2021 ? September 30, 2021 quarterly student report prior to submission. ? HEERF MSI Reporting: City Colleges did not have sufficient supporting evidence that review controls were performed over the July 1, 2021 ? September 30, 2021 quarterly student report prior to submission. City Colleges did not publicly post certain required reports accurately. The following instance of noncompliance was identified: ? HEERF Student Portion: City Colleges posted a report on July 8, 2022 for Wilbur Wright for the period of April 1, 2022 ? June 30, 2022 which did not reconcile to the underlying expense detail as of the date of the report. The difference was $307,750. Cause City Colleges did not have effective internal controls in place to ensure reports were posted accurately and timely. Student Finance and FAO created a new Review & Approval Process for HEERF Reporting that was not implemented until January 2022 Corrective Action Taken or Planned The Department of Ed has given the institution the authorization to amend prior quarterly and annual reports that was posted in error. SF and FAO will continue to fine-tune the Review & Approval Process for all quarterly and annual reports. Part-Time Project Manager for Finance will continue to monitor Dept of ED for any HEERF Updates while validating all review and approval documents. Contact Person: Associate Vice Chancellor, Financial Aid & Scholarships ? Richard Hayes Anticipated Completion Date: January 2023

View Audit 51406

Finding 43860 (2022-001)

Material Weakness 2022

Lake Land College

IL

Student Financial Aid Eligibility Matching / Level of Effort / Earmarking

LAKE LAND COLLEGE COMMUNITY COLLEGE DISTRICT NO. 517 MATTOON, ILLINOIS CORRECTIVE ACTION PLAN FOR CURRENT-YEAR AUDIT FINDINGS FOR THE YEAR ENDED JUNE 30, 2022 CORRECTIVE ACTION PLAN Finding No. 2022-001 ? Internal Controls over Student Financial Assistance Special Test and Provisions Condition: A. D...

LAKE LAND COLLEGE COMMUNITY COLLEGE DISTRICT NO. 517 MATTOON, ILLINOIS CORRECTIVE ACTION PLAN FOR CURRENT-YEAR AUDIT FINDINGS FOR THE YEAR ENDED JUNE 30, 2022 CORRECTIVE ACTION PLAN Finding No. 2022-001 ? Internal Controls over Student Financial Assistance Special Test and Provisions Condition: A. During compliance testing of ?Special Tests and Provisions ? Return of Funds? we noted that for eight (8) out of twenty five (25) students tested the College utilized the incorrect semester end date for the Spring 2022 semester. B. During the compliance testing of ?Special Tests and Provisions ? Eligibility? we noted that one (1) student out of forty (40) students tested the College utilized the 2020-2021 Pell payment schedule versus the 2021-2022 Pell payment schedule. Plan: A. The College will develop internal controls to ensure that the correct semester dates are utilized for the return of funds calculation to determine the amount of the Title IV assistance earned by the student. B. The College will establish procedures to ensure their software is utilizing the current Pell payment schedule. Anticipated Date of Completion: Immediately upon learning of the deficiency. Contact Person Responsible for Corrective Action: Jennifer Hedges, Director of Financial Aid and Veteran Services 98

View Audit 45498

Finding 43858 (2022-002)

Significant Deficiency 2022

Housing Authority of Covington

KY

Cash Management HUD Housing Programs Significant Deficiency

FINDINGS?FEDERAL AWARD PROGRAMS AUDITS U.S. Department of Housing and Urban Development 2022-002 Public Housing Capital Fund ? Assistance Listing No. 14.872 Recommendation: The Housing Authority should timely submit a voucher to disburse funds for bills due and payable for work that has already bee...

FINDINGS?FEDERAL AWARD PROGRAMS AUDITS U.S. Department of Housing and Urban Development 2022-002 Public Housing Capital Fund ? Assistance Listing No. 14.872 Recommendation: The Housing Authority should timely submit a voucher to disburse funds for bills due and payable for work that has already been performed or for items received. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: Timely draws are being done Name(s) of the contact person(s) responsible for corrective action: Chris Bradburn Planned completion date for corrective action plan: 07/01/2022 If the U.S. Department of Housing and Urban Development has questions regarding this plan, please call Cynthia Hall at 859-655-7306.

View Audit 48878

Finding 43856 (2022-001)

Significant Deficiency 2022

Dientes Community Dental Care

CA

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

Corrective Action Plan Year ending June 30, 2022 Comment 2022-001 Comment Title: Allowability ? Internal Control over Payroll and General Disbursements In accordance with Uniform Guidance Section 200.511(a), the Corrective Action Plan must include findings related to the financial stateme...

Corrective Action Plan Year ending June 30, 2022 Comment 2022-001 Comment Title: Allowability ? Internal Control over Payroll and General Disbursements In accordance with Uniform Guidance Section 200.511(a), the Corrective Action Plan must include findings related to the financial statements which are required to be reported in accordance with Government Auditing Standards. Corrective Action Plan: We will continue to review the PRF terms and conditions to ensure compliance. Contact Person, Title, Phone: Jesse Navarro, CFO 831-710-1333 Anticipated Date of Completion: July 2022

View Audit 46674 Questioned Costs: $1

Finding 43855 (2022-001)

Significant Deficiency 2022

Village Cooperative of Sioux Falls

SD

Internal Control / Segregation of Duties Significant Deficiency

Department of Housing and Urban Development HUD project FHA #091-23003 Village Cooperative of Sioux Falls Federal ID# 82-5236223 The FASS system generated the following findings from its review of the June 30, 2022 financial statements. The results of the assessment are summarized below. The project...

Department of Housing and Urban Development HUD project FHA #091-23003 Village Cooperative of Sioux Falls Federal ID# 82-5236223 The FASS system generated the following findings from its review of the June 30, 2022 financial statements. The results of the assessment are summarized below. The project owner should provide their assigned HUD Project Manager a written response addressing each of the findings, and appropriate documentation (e.g. copies of cancelled checks, bank statements, etc.) to prove the finding has been resolved. Project Auditor Findings: The auditor reported the following findings: Compliance Oriented Findings. The Schedule of Findings and Questioned Costs by the auditor contained findings related to the following Auditor Indicator Codes: Finding Reference No. / Code - Finding Condition 2022-001 / S - Internal Control Deficiencies Corrective Action(s). For all audit findings that were unresolved as of the date of the audit report, the owner must provide their HUD Project Manager a written response and supporting documentation indicating the finding has been resolved. Corrective Action Plan: The Board of Directors is and will remain involved in the financial affairs of the Cooperative.

View Audit 46671

Finding 43854 (2022-001)

Significant Deficiency 2022

Village Cooperative of Cedar Falls

IA

Internal Control / Segregation of Duties Significant Deficiency

Department of Housing and Urban Development: HUD project FHA #074-23027 Village Cooperative of Cedar Falls Federal ID# 45-2516561 The FASS system generated the following findings from its review of the August 31, 2022 financial statements. The results of the assessment are summarized below. The proj...

Department of Housing and Urban Development: HUD project FHA #074-23027 Village Cooperative of Cedar Falls Federal ID# 45-2516561 The FASS system generated the following findings from its review of the August 31, 2022 financial statements. The results of the assessment are summarized below. The project owner should provide their assigned HUD Project Manager a written response addressing each of the findings, and appropriate documentation (e.g. copies of cancelled checks, bank statements, etc.) to prove the finding has been resolved. Project Auditor Findings: The auditor reported the following findings: Compliance Oriented Findings. The Schedule of Findings and Questioned Costs by the auditor contained findings related to the following Auditor Indicator Codes: Finding Reference No. / Code - Finding Condition 2022-001 / S - Internal Control Deficiencies Corrective Action(s). For all audit findings that were unresolved as of the date of the audit report, the owner must provide their HUD Project Manager a written response and supporting documentation indicating the finding has been resolved. Corrective Action Plan: The Board of Directors is and will remain involved in the financial affairs of the Cooperative.

View Audit 46668

Finding 43837 (2022-007)

Material Weakness 2022

Community Christian College

CA

Student Financial Aid Material Weakness Reporting

Corrective action plan to ensure enrollment reporting is completed timely and accurately 1. The admissions team sends a list of all enrolled students 2. Financial aid will manually enter the student?s information into campus IVY 3. Campus IVY updates the student?s status in NSLDS every 30 days. 4....

Corrective action plan to ensure enrollment reporting is completed timely and accurately 1. The admissions team sends a list of all enrolled students 2. Financial aid will manually enter the student?s information into campus IVY 3. Campus IVY updates the student?s status in NSLDS every 30 days. 4. If a student withdraws from Community Christian College, financial aid will manually update the student status into campus IVY 5. NSLDS is updated upon completion of the withdrawal This process will ensure that Community Christian College updates enrollment statuses for every student timely.

View Audit 46666

Finding 43834 (2022-004)

Material Weakness 2022

Community Christian College

CA

Questioned Costs Student Financial Aid Eligibility

Corrective Action plan to the College will implement a process to review, update, and verify student eligibility requirements. The following is the process to review, update and verify student eligibility requirements: 1. Financial Aid Rep assist student with completing FAFSA 2. Financial Aid Rep pu...

Corrective Action plan to the College will implement a process to review, update, and verify student eligibility requirements. The following is the process to review, update and verify student eligibility requirements: 1. Financial Aid Rep assist student with completing FAFSA 2. Financial Aid Rep pulls NSLDS to make sure loan amounts and grants are not used up. 3. NSLDS print out is uploaded to campus IVY 4. Once the FAFSA summary is in Campus IVY and the funding is created, the usage amount is shown. 5. Once loan and Pell amounts are sent to COD and approved 6. Campus IVY will send a batch with student loan and Pell amounts to the school to be reviewed. 7. The student accounts office will then review the student loan and Pell amount against the student schedule. 8. Based on course load/scheduled credits the student account will update the amounts on the batch 9. Student accounts will ok the batch once corrections to eligibility are made and send back to Ivy for payment.

View Audit 46666 Questioned Costs: $1

Finding 43818 (2022-001)

Significant Deficiency 2022

Village Cooperative of Austin

MN

Internal Control / Segregation of Duties Significant Deficiency

Department of Housing and Urban Development: HUD project FHA #092-23259 Village Cooperative of Austin Federal ID# 20-4760670 The FASS system generated the following findings from its review of the September 30, 2022 financial statements. The results of the assessment are summarized below. The projec...

Department of Housing and Urban Development: HUD project FHA #092-23259 Village Cooperative of Austin Federal ID# 20-4760670 The FASS system generated the following findings from its review of the September 30, 2022 financial statements. The results of the assessment are summarized below. The project owner should provide their assigned HUD Project Manager a written response addressing each of the findings, and appropriate documentation (e.g. copies of cancelled checks, bank statements, etc.) to prove the finding has been resolved. Project Auditor Findings: The auditor reported the following findings: Compliance Oriented Findings. The Schedule of Findings and Questioned Costs by the auditor contained findings related to the following Auditor Indicator Codes: Finding Reference No. / Code - Finding Condition 2022-001 / S - Internal Control Deficiencies Corrective Action(s). For all audit findings that were unresolved as of the date of the audit report, the owner must provide their HUD Project Manager a written response and supporting documentation indicating the finding has been resolved. Corrective Action Plan: The Board of Directors is and will remain involved in the financial affairs of the Cooperative.

View Audit 43812

Finding 43814 (2022-004)

Significant Deficiency 2022

Blue Mountain Community College District

OR

Allowable Costs / Cost Principles Significant Deficiency Internal Control / Segregation of Duties

Audit Finding 2022-004 Condition and Criteria: The Student Aid Portion of the Education Stabilization Fund program focuses on distributing funds to students to assist in expenses related to the pandemic and the College must have a process to reliably distribute the funds. BMCC distributes student st...

Audit Finding 2022-004 Condition and Criteria: The Student Aid Portion of the Education Stabilization Fund program focuses on distributing funds to students to assist in expenses related to the pandemic and the College must have a process to reliably distribute the funds. BMCC distributes student stipends via Bank Mobile in most cases. However, it was found during the audit that some funds did not get fully transferred to Bank Mobile or Bank Mobile returned funds for student stipends that they were not able to get to the students. In our review of the bank reconciliations and clearing accounts during fieldwork it was found that there was about $45,000 in outstanding payments to students that had not been cashed. $26,456 of these payments were voided and not reissued and the remaining items were either just errors or were reissued to the students. Effect: Grant expenditures and revenues related to the program were reduced and students that had initially had funds awarded had these amounts rescinded. Cause: Most of the funds were distributed to all eligible students as part of the College?s plan to implement the program and some students were unaware that the funds were coming and did not respond to notices in the traditional manner. The controls in place to track the outstanding items noted that there were significant funds outstanding but there was not sufficient time to follow up with each individual student. Questioned Costs: None over the questioned cost threshold after adjustments above. Auditor?s recommendation: The College should implement additional processes to review, update, and verify student enrollment status and grant awards. Corrective Action to be Taken: For traditional financial aid and grant funds, awards are noted on a student award letter after verifying enrollment levels. For aid sent to students from the Education Stabilization Fund, aid awarded was not reflected on a student award letter and the aid was initially being sent to students without being requested by the student. This practice was discontinued during 2021-22 and any aid sent to students from the Education Stabilization Fund is now only done so upon request from the student. This helps to ensure students are expecting the funds and aware the funds are coming which has helped to ensure that the checks are subsequently cashed by the student or otherwise picked up by the student. In addition, as bank reconciliations are and will be done on a more timely basis, any issues with funds not getting fully transferred, or funds returned are addressed in a more timely manner. Anticipated Completion Date: This change in process was made at the beginning of Spring Term 2022 whereby unsolicited aid money from the Education Stabilization Fund are not awarded and sent to students but are only done so upon request of the student.

View Audit 39382

Finding 43807 (2022-003)

Significant Deficiency 2022

Blue Mountain Community College District

OR

Special Tests & Provisions Reporting Significant Deficiency

Audit Finding 2022-003 Condition and Criteria: Institutions are required to submit disbursement records to the COD that are accurate. The disbursement record reports the actual disbursement date and the amount of the disbursement. Institutions must report student disbursement data within 15 calendar...

Audit Finding 2022-003 Condition and Criteria: Institutions are required to submit disbursement records to the COD that are accurate. The disbursement record reports the actual disbursement date and the amount of the disbursement. Institutions must report student disbursement data within 15 calendar days after the institution makes a disbursement or becomes aware of the need to make an adjustment to previously reported student disbursement data or expected student disbursement data. Institutions may do this by reporting once every 15 calendar days, bi-weekly or weekly, or may set up their own system to ensure that changes are reported in a timely manner. However, during testing of the information submitted to COD it was noted that one student out of the 40 students tested where the disbursement date per the College?s records and the processing date at COD fell outside the mandatory 15-day reporting window. Effect: The College is not in compliance with the federal COD reporting requirements described in the OMB Compliance Supplement and required by the Department of Education. Cause: The College changed student information systems and Financial Aid staff during the prior year that caused delays when the information was submitted to COD, as well as impacting the accuracy of the information being reported. Questioned Costs: None reported Context/Sampling: The College disbursed Federal financial aid to approximately 515 students in the 2021-2022 school year. A non-statistical sampling of 40 students was selected for testing. Repeat Finding: Yes Auditor?s recommendation: The College should implement additional processes to review, update, and verify student disbursements are reported to COD accurately and timely. Corrective Action to be Taken: The student?s loans were not processed in COD (only) due to the DRI flag being set at False when in fact it should have been True because her money did disburse in April of 2022. This was an issue that was not working in CNS in Spring of 2022, the issue was fixed in CNS and we corrected the files in COD. Financial Aid performs reconciliation as required, but these students also did not show up on the reconciliation report out of CNS. This has also been fixed per Anthology. Anticipated Completion Date: This was fixed before Fall term began in September of 2022 Name and Title of Responsible Person: Danielle Hodgen, Director of Student Financial Services

View Audit 39382

Finding 43806 (2022-002)

Significant Deficiency 2022

Blue Mountain Community College District

OR

Special Tests & Provisions Reporting Significant Deficiency

Audit Finding 2022-002 Condition and Criteria: A school must return unearned funds for which it is responsible as soon as possible but no later than 45 days after the date of determination of a student?s withdrawal. However, during testing, three students were identified that had officially withdraw...

Audit Finding 2022-002 Condition and Criteria: A school must return unearned funds for which it is responsible as soon as possible but no later than 45 days after the date of determination of a student?s withdrawal. However, during testing, three students were identified that had officially withdrawn from classes and owed refunds, but the refund to Department of Education was past the 45 day period. Effect: The College is not in compliance with the federal refund requirements described in the OMB Compliance Supplement and required by the Department of Education. Cause: The College does not have an adequate process in place to notify financial aid of official withdrawals and the exceptions noted above were discovered by the college during the review of final grades, which was already past the 45 day period. The college also relies on the CNS import date as a control over these procedures but has fount that the import date is not always reliable. Questioned Costs: None reported Context/Sampling: The College disbursed Federal financial aid to approximately 515 students in the 2021-2022 school year. A non-statistical sampling of 40 students was selected for testing but only 2 refunds were found in that testing. The College does not issue vary many refunds, so we selected 7 additional items for an infrequently operating control. Repeat Finding: No Auditor?s recommendation: The school should implement a process to insure that withdrawals are communicated to financial aid immediately so they are aware of the refund calculations. Most of the refunds are for inadvertent over awards and notification of the withdrawal will assist in this issue as well. Corrective Action to be Taken: Students who officially withdraw from courses are required to fill out a Docusign form that is then submitted to the Academic Records department. Upon receipt of this form AR will process the withdrawal and make notes in Campus Nexus as to the date of withdraw (this is the current process as well). Financial Aid will be added to that process and those Docusign forms will be automatically forwarded to financial aid once they are processed. This way we will be able to make sure we stay within the day window for refunds. Financial aid continues to run the R2T4 report multiple times throughout the term to ensure there is plenty of time to process refunds within the 45 day mark. Additionally, our Conclusive system now has a total withdraw report available. Academic Records will give the financial aid director permission to run that report directly. The director will run this report along side the R2T4 report out of Campus Nexus to ensure we are capturing all students in a timely fashion. Students who unofficially withdraw (students who receive an FA grade at the end of the term) are not reported until the end of the term since students do have the ability to return at any time throughout the term to try and pass the class. The financial aid director has been working with the office of instruction to make sure this process is more clear and to offer trainings to faculty. We have been able to clean up the definition of an FA grade for faculty this past year, faculty have been asked to report attendance in week 9 of the quarter and this has helped with the last date of attendance reporting for Fall 2022- current term. Anticipated Completion Date: Granting permission to Conclusive reports should be completed by April 10-17, 2023. Financial aid shall start running that report in April 2023 once permission is granted. Adding Financial aid to the Docusign process will be completed by April 10, 2023. Working with the office of instruction to clarify the FA grade (unofficial withdraws) process began in summer of 2022 and is ongoing. Name and Title of Responsible Person: Danielle Hodgen, Director of Student Financial Services

View Audit 39382

Finding 43792 (2022-002)

Significant Deficiency 2022

League for the Blind & Disabled, Inc.

IN

Internal Control / Segregation of Duties Procurement, Suspension & Debarment

Findings: 2022-001, 2022-002 Contact Person Responsible for Corrective Action: Mohammed Sayeed, MBA, Chief Financial Officer Contact Phone Number: 260-441-0551 Contact Email: mohammeds@the-league.org Alternate Contact Person: John Guingrich, President/CEO Alternate Contact Phone: 260-441-0551 Alt...

Findings: 2022-001, 2022-002 Contact Person Responsible for Corrective Action: Mohammed Sayeed, MBA, Chief Financial Officer Contact Phone Number: 260-441-0551 Contact Email: mohammeds@the-league.org Alternate Contact Person: John Guingrich, President/CEO Alternate Contact Phone: 260-441-0551 Alternate Contact Email: johng@the-league.org Views of Responsible Officials: We concur with these findings. Description of Corrective Action Plan: During FY23 the organization has improved on the staffing shortages in the finance/accounting department and is also adding a Chief Operating Officer as another administrative officer for the organization. Having a fully staffed department and additional administrative officer will help with segregation of duties such as adding vendors, approving invoices, and purchase orders. Also, during FY23 the CFO has been working to strengthen the documentation of expenditure approval and retention of supportive information. One example is a new purchase order that identifies the levels of approval, type of expense, what program or department should be charged the expense, what funding source it should be allocated to, how the expenses should be paid, and has supportive documentation attached. We will continue to build upon the implementation and documentation of these processes and procedures. Anticipated Completion Date: December 31, 2023

View Audit 51433

Finding 43790 (2022-001)

Material Weakness 2022

Marygrove Non-Profit Housing Corporation II

MI

Questioned Costs Eligibility HUD Housing Programs

Corrective Action Plan Marygrove Nonprofit Housing Corp II, dba McGivney Bethune Apartments Project No. 044-EE011 Year Ended December 31, 2022 September 28, 2023 FEDERAL AWARD FINDINGS AND QUESTIONED COSTS 2022-001 ? Eligibility - Tenant File Documentation Finding Type. Material noncompliance; ...

Corrective Action Plan Marygrove Nonprofit Housing Corp II, dba McGivney Bethune Apartments Project No. 044-EE011 Year Ended December 31, 2022 September 28, 2023 FEDERAL AWARD FINDINGS AND QUESTIONED COSTS 2022-001 ? Eligibility - Tenant File Documentation Finding Type. Material noncompliance; Material weakness in internal controls over compliance (Eligibility) Federal programs U.S. Department of Housing and Urban Development Supportive Housing for the Elderly (CFDA# 14.157) Condition. Out of a sample of 8 tenant files, it was noted: 1. One out of eight instances where a tenant EIV was not run within 90 days of move in, however third party support was received upon move in; 2. One out of eight instances where a tenant's saving account was not verified by a third party; 3.Two out of eight instances where a tenant file was missing completely or missing substantial documentation used to support the tenant assistance payment. Further, we noted that a tenant waitlist was not maintained during the year. Effect. As a result of this condition, certain tenant files did not contain all required supporting documentation. Plan. Management agrees with finding 2022-001. All files are to be inspected in the current fiscal year to ensure compliance with HUD regulations. File maintenance will be competed following each move in and annual recertification. In addition to one-on-one training, the housing administrator has signed up for additional training including a WebEx on annual recertification and a basic EIV course. Additional training sessions are forthcoming. Contact Person Responsible for This Corrective Action: Laura Maisevich, Senior Housing Manager Anticipated completion date: December 31, 2023

View Audit 49584 Questioned Costs: $1

Finding 43785 (2022-003)

Significant Deficiency 2022

Adults & Childrens Alliance, Inc.

MN

Cash Management Eligibility Internal Control / Segregation of Duties

Adults? & Children?s Alliance is submitting the following Corrective Action Plan for Significant Deficiency found during audit for FY22 (10/1/2021-09/30/2022) Found in Section II ? Financial Statements Findings 2022-001 ? Lack of Segregation of Accounting Duties (Repeat finding 2021-001) Criteria: P...

Adults? & Children?s Alliance is submitting the following Corrective Action Plan for Significant Deficiency found during audit for FY22 (10/1/2021-09/30/2022) Found in Section II ? Financial Statements Findings 2022-001 ? Lack of Segregation of Accounting Duties (Repeat finding 2021-001) Criteria: Proper internal control structure includes review of journal entries, bank reconciliations and the schedule of expenditures of federal awards, as well as an adequate system for recording and processing entries to the financial statements, in accordance with generally accepted accounting principles. Condition: The limited number of staff in the accounting department results in certain functions that are not properly segregated which normally would enhance internal control, including the lack of review of journal entries, bank reconciliations, and the schedule of expenditures of federal awards. Cause: The internal control structure does not provide an appropriate segregation of duties for the financial reporting process. Effect: Although this condition is not unusual for an entity the size of the Organization, the condition may affect the Organization's ability to initiate, record, process, and report financial data consistent with the assertions of management in the financial statements. Recommendation: It is the responsibility of management and those charged with governance to determine whether to accept the risk associated with this condition because of cost or other conditions. We recommend the Organization evaluate current procedures and segregate where possible and implement compensating controls.Responsible Official?s Response: Management will evaluate current procedures and segregate where possible and implement compensating/alternative controls appropriately according to staffing and budget. Corrective Actions: ACA will continue to work with Bottom Line Accounting Services when finances do not align Lisa Dunlap, the Executive Director, works with Bottom Line Accounting Services to find resolution. Lisa Dunlap, Sandra Lee the CACFP Director and Denise Hess additional staff will work together for checks and balances for payroll, Quick Books for accounts payable/receivables, journal entries, banking, and CACFP program as well as any other financial activity. Quick books ? data entry Accounts payable Accounts receivable Roles and Responsibilities for Bottom Line Accounting Services Outline best practices for QBO JE?s, Deposits, or other entries for clear tracking. ? Review client posted payroll tax postings. ? Review organizations key transactions and financial statements for previous months ? Create and recommend posting monthly accounting allocations and/or adjustments. ? Assist staff with monthly accounting close and recommend appropriate accounting systems to ? be set up. Review reconciled monthly banking and investment accounts and maintain required ? supporting schedules. Provide QuickBooks online accounting support and QB training requested. ? Perform quarterly reconciliations of designated general ledger accounts. ? Assist clients as requested with preparations of annual audit. ? Recommend modifications to chart of account structure from information provided by client ? to enhance retrieval of necessary financial information. Completion time: On going. Contact person: Lisa Dunlap Lisa.dunlap@acainc.org 651-481-9320 2022-002 - Reporting Information on the SEFA Criteria: 2 CFR Part 200.510(b) states that the auditee must prepare a schedule of expenditures of federal awards for the period covered by the auditee's financial statements which must include the total federal awardsexpended. Federal program and award identification must include, as applicable, the Assistance Listing Number and title, the federal award identification number and year, the name of the federal agency, and the name of the pass-through entity, if any. This information enables the auditee to reconcile amounts presented in the financial statements to related amounts in the schedule of expenditures of federal awards. Condition: Management did not have a process in place to prepare a complete schedule of expenditures of federal awards, including identifying COVID-19 funding. The audit firm cannot serve as a compensating control. Cause: Proper processes were not in place for management to prepare the schedule of expenditures of federal awards. Potential Effect: As a result of this condition, there is a higher risk that the schedule of expenditures of federal awards could be incomplete or contain errors that are not detected. Recommendation: The Organization should review its policies and procedures to ensure all expenditures charged to federal grants are properly identified, recorded in the general ledger, and reflected on the schedule of expenditures of federal awards. Responsible Official's Response: Management is now aware that Emergency/Covid funds should have been separated by line when reporting even though from the same source, grant and pass-through grant number. Corrective Actions: SEFA The Schedule of Federal Awards report is completed by Lisa Dunlap with review from Bottom Line Accounting Services. Funding strands will be broken out and identified accordingly by funding type, grant number, pass through grant number as well as identified in general ledger with same information. Completion time: On going. Contact person: Lisa Dunlap Lisa.dunlap@acainc.org 651-481-93 202022-003 ? Meal Counts Federal Program: Assistance listing number 10.558, Child and Adult Care Food Program ? United States Department of Agriculture Compliance Requirement: Eligibility Criteria: A properly designed system of internal control over compliance with the requirements of federal programs allows entities to meet those requirements set forth by the federal government. Under the Child and Adult Care Food Program, the Organization is required to monitor eligibility of meals being reimbursed to providers. Condition: 1 of the 40 providers tested for meal counts had discrepancies. The provider's reimbursement improperly included 2 additional breakfast meal counts. Cause: The Organization noted a deduction of a breakfast count should have been made, however rather than deducting another breakfast count was added resulting in 2 additional breakfast meal counts. Questioned Costs: The results of this noncompliance did not result in any questions costs. Potential Effect: As a result of this condition, there is a higher risk that the provider meal counts are inaccurately reimbursed. Recommendation: The Organization should review its policies and procedures to ensure all provider meals charged to federal grants are properly reflected in the reimbursement request. Responsible Official's Response: This was a human error; management will continue to follow policy and procedures in place to ensure all meals charged to the federal grant are properly reflected in the reimbursement request. Corrective Actions: The 1/40 provider meal count finding was human error. Management will continue to follow the policies and procedures set in place to ensure all meals charged to federal grants are properly reflected in the reimbursement request. Completion time: On going. Contact person: Lisa Dunlap Lisa.dunlap@acainc.org 651-481-9320

View Audit 45420

Finding 43782 (2022-001)

Significant Deficiency 2022

Hobbs Municipal School District #33

NM

Cash Management Eligibility Reporting

Finding #2022-001 ? ALN 84.010, Title ? ISAS; L. Financial Reporting Corrective Action Planned: The District will implement controls to ensure reimbursement requests include proper expenditures. Anticipated Completion Date: November 2022

View Audit 48611

Finding 43769 (2022-001)

Significant Deficiency 2022

County of Onondaga, New York

NY

Subrecipient Monitoring Matching / Level of Effort / Earmarking Internal Control / Segregation of Duties

Corrective Action Plan for Finding 2022-001 Finding 2022-001: The County?s current policies and procedures are not operating effectively to ensure only allowable costs were allocated to the program. In 13 of 40 cases tested, incorrect salary allocations resulted in errors in costs allocated and clai...

Corrective Action Plan for Finding 2022-001 Finding 2022-001: The County?s current policies and procedures are not operating effectively to ensure only allowable costs were allocated to the program. In 13 of 40 cases tested, incorrect salary allocations resulted in errors in costs allocated and claimed. Corrective Action Plan: After the RF2A claim has been completed by the Accountant 2 in Financial Operation the claim will be reviewed by either the Administrative Office or Sr. Administrative Officer to ensure all salary and cost allocation have been record and distributed properly. Please see below for specific department plan: Financial Operations will implement a review process of the RF2A claim for salary and cost allocations. Contact person responsible for the corrective actions plan: Kristi Smiley Anticipated completion date of corrective action: August 15th Management?s Response: It is deemed appropriate for the RF2A claim to be reviewed by an Administrative Officer Position upon completion to ensure salary and cost allocations are recorded properly

View Audit 46197

Finding 43768 (2022-001)

Significant Deficiency 2022

Linc Housing Corporation

CA

Subrecipient Monitoring Reporting Internal Control / Segregation of Duties

Planned Corrective Actions: We agree and have commenced a search for a controller over our accounting development team.

View Audit 46194

Finding 43757 (2022-002)

None 2022

Triangle Elderly Housing Corporation

NC

HUD Housing Programs Matching / Level of Effort / Earmarking Internal Control / Segregation of Duties

Triangle Elderly Housing Corp. 1363 W. Market Street Smithfield, NC 27577 Office: (919) 934-6066 Corrective Action Plan Name of auditee: Triangle Elderly Housing Corp. HUD auditee identification number: FHA/Contract #053-11250 Name of audit firm: O. Douglas Covington, C.P.A., P.A. Period cove...

Triangle Elderly Housing Corp. 1363 W. Market Street Smithfield, NC 27577 Office: (919) 934-6066 Corrective Action Plan Name of auditee: Triangle Elderly Housing Corp. HUD auditee identification number: FHA/Contract #053-11250 Name of audit firm: O. Douglas Covington, C.P.A., P.A. Period covered by the audit: January 1, 2022 thru December 31, 2022 CAP prepared by: Name: Renee Davis Position: Housing Manager Telephone: (919) 934-6066 2. Finding 2022-002 a. Comments on the Finding and Each Recommendation We are in agreement with the finding. b. Action(s) Taken or Planned on the finding The New Hires, Multiple Subsidy, Deceased Tenant & Identity Verification reports are current from May 2023 and will be reviewed and properly documented monthly.

View Audit 43792

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