Corrective Action Plans

Finding 480685 (2021-001)

Significant Deficiency 2021

Puerto Rico Office Management and Budget

PR

Subrecipient Monitoring Reporting Significant Deficiency

3 de julio de 2024 Section II – Federal Award Findings and Questioned Costs Finding Number: 2021-001 Agency: Puerto Rico Office of Management and Budget Federal Program: Coronaviru...

3 de julio de 2024 Section II – Federal Award Findings and Questioned Costs Finding Number: 2021-001 Agency: Puerto Rico Office of Management and Budget Federal Program: Coronavirus Relief Fund Assistant listing number: 21.019 Grant Number: N/AV Grant Period: July 1, 2020 through June 30, 2021 Compliance Requirement: Reporting Category: Significant Deficiency and noncompliance over federal program Condition: During our audit of June 30, 2021 financial statement, we noted that single audit report for fiscal year 2020-2021 was not submitted by September 30, 2022. Cause: Missing of internal controls over financial reporting to produce financial statement on timely basis to comply with OMB reporting deadlines. Effect: Non-compliance with the above-mentioned requirement could lead to administrative actions by the grantor. It could also be interpreted as a failure to manage federal awards in compliance with laws, regulations, and provisions of contracts and grant agreements. Recommendation: To improve, execute and monitors accounting periods end closings as planned in order to get a financial statement on time to comply with required deadlines. Also, keep track and communication of federal programs compliances with regulatory parties and among agency’s responsible departments involve and establish a program deadline calendar. Questioned Costs: None Perspective of the information: Single audit report was issued after due date. The information was not drawn from a statistical sample. Calle Cruz #254 Esq. Tetuán, San Juan, PR / PO Box 9023228, San Juan, PR 00902-3228 Management response: 3 de julio de 2024 Section II – Federal Award Findings and Questioned Costs Finding Number: 2021-001 Agency: Puerto Rico Office of Management and Budget Federal Program: Coronavirus Relief Fund Assistant listing number: 21.019 Grant Number: N/AV Grant Period: July 1, 2020 through June 30, 2021 Compliance Requirement: Reporting Category: Significant Deficiency and noncompliance over federal program Condition: During our audit of June 30, 2021 financial statement, we noted that single audit report for fiscal year 2020-2021 was not submitted by September 30, 2022. Cause: Missing of internal controls over financial reporting to produce financial statement on timely basis to comply with OMB reporting deadlines. Effect: Non-compliance with the above-mentioned requirement could lead to administrative actions by the grantor. It could also be interpreted as a failure to manage federal awards in compliance with laws, regulations, and provisions of contracts and grant agreements. Recommendation: To improve, execute and monitors accounting periods end closings as planned in order to get a financial statement on time to comply with required deadlines. Also, keep track and communication of federal programs compliances with regulatory parties and among agency’s responsible departments involve and establish a program deadline calendar. Questioned Costs: None Perspective of the information: Single audit report was issued after due date. The information was not drawn from a statistical sample. Calle Cruz #254 Esq. Tetuán, San Juan, PR / PO Box 9023228, San Juan, PR 00902-3228 Management response: The Puerto Rico Office of Management and Budget (OMB) acknowledges the finding and the importance of complying with the OMB Uniform Guidance for single audits. The following actions have been taken and will continue to be implemented to ensure compliance: 1. Contracting External Audit Firms: o Action Taken: OMB has contracted qualified external audit firms to conduct the single audits to ensure compliance with federal requirements. o Outcome: This measure has resolved the immediate issue of non- compliance by ensuring timely submission of audit reports. The OMB complied with instructions from the Puerto Rico Fiscal Agency and Financial Advisory Authority (AAFAF) regarding reports related to these funds. The OMB presumed that AAFAF was responsible for the final report and audit to the federal government. The OMB will continue monitoring the use and disbursement of federal funds to comply with state and federal regulations. Responsible Officer: Mrs. Nivis González Rodríguez Estimated Completion Date: July 2024

View Audit 316913

Finding 480533 (2021-003)

Significant Deficiency 2021

Central Iowa Shelter & Services

IA

Internal Control / Segregation of Duties Cash Management

We will implement procedures to ensure claims are reviewed and approved by someone independent of the preparer

View Audit 316733

Finding 480519 (2021-003)

Material Weakness 2021

Virginia Commonwealth University Health System

VA

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

Corrective action plan over control environment over lost revenue COVID – 19 – Provider Relief Funding (Assistance Listing #93.498) Recommendation: The Authority’s procedures for calculating lost revenues for the purposes of PRF reporting should be designed to ensure that audited year end numbers ar...

Corrective action plan over control environment over lost revenue COVID – 19 – Provider Relief Funding (Assistance Listing #93.498) Recommendation: The Authority’s procedures for calculating lost revenues for the purposes of PRF reporting should be designed to ensure that audited year end numbers are reported and/or tied back to amounts that are reported. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action planned/taken in response to finding: As of July 2024, there is no further lost revenue reporting that is required to be reported. Management will implement more robust internal controls in preparation for similar future grant reporting. For lost revenues that have been submitted for PRF that do not tie back to an audited financial statement, a reconciliation will be completed and documented. Name(s) of the contact person(s) responsible for corrective action: Min Cummings, VP of Finance and Accounting, 703-629-8155 Planned completion date for corrective action plan: July 31, 2024 and going forward.

View Audit 316713

Finding 480518 (2021-002)

Material Weakness 2021

Virginia Commonwealth University Health System

VA

Internal Control / Segregation of Duties Procurement, Suspension & Debarment Cash Management

Corrective action plan over control environment over completeness and accuracy of expenditures COVID – 19 – Coronavirus Relief Fund (Assistance Listing # 21.019) Recommendation: The Authority’s develop and implement effective internal controls to ensure that expenditures are reviewed for completenes...

Corrective action plan over control environment over completeness and accuracy of expenditures COVID – 19 – Coronavirus Relief Fund (Assistance Listing # 21.019) Recommendation: The Authority’s develop and implement effective internal controls to ensure that expenditures are reviewed for completeness and accuracy to ensure that the terms and conditions are met. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action planned/taken in response to finding: This program has ended. Management will enhance its procedures around the completeness and accuracy of expenditure schedules for similar future grant expenditures. Evidence of review and approval of supporting documentation of the expenditures related to report submissions will be documented. Name(s) of the contact person(s) responsible for corrective action: Min Cummings, VP of Finance and Accounting, 703-629-8155 Planned completion date for corrective action plan: July 31, 2024 and going forward.

View Audit 316713

Finding 480062 (2021-005)

Material Weakness 2021

Cornerstones Inc, Cornerstones Housing Corporation & Rihc Partners, Lp

VA

Eligibility Material Weakness Internal Control / Segregation of Duties

Cornerstones acknowledges that our files were incomplete. It is our position that the COVID-19 pandemic created immense need to which Cornerstones responded by expanding rapidly and mobilizing funding and program requests that did not receive the benefit of comprehensive planning; the focus was on h...

Cornerstones acknowledges that our files were incomplete. It is our position that the COVID-19 pandemic created immense need to which Cornerstones responded by expanding rapidly and mobilizing funding and program requests that did not receive the benefit of comprehensive planning; the focus was on health prevention, isolation and quarantine activities and temporary shelter for homeless and other low-income, vulnerable seniors and disabled persons. We served those in need and our intake processes and record keeping did not keep pace. Additionally, given the time that has passed since the services in question, it is possible that records that did exist were misplaced. Staff turnover, resulting from the pandemic burden, made it challenging to go back to the work that had been done. In the time since these events Cornerstones has further emphasized the compliance and documentation needs of the case management process, and we have filled turned-over positions with experienced staff that also understand intake and documentation requirements. We have also hired a Senior Director, Finance with over 20 years of federal contracts experience that is an integral part of increased program compliance and operational oversight responsibilities within the Finance/Operations function.

View Audit 316340

Finding 479746 (2021-004)

Material Weakness 2021

Cambria Heights School District

PA

School Nutrition Programs Internal Control / Segregation of Duties Reporting

CONDITION: The District did not maintain a general ledger system of accounting for its Cafeteria Fund which reports the financial activity of the federal National School Lunch and School Breakfast Programs. The financial activity occurring in this Fund is maintained in checkbook fashion during the f...

CONDITION: The District did not maintain a general ledger system of accounting for its Cafeteria Fund which reports the financial activity of the federal National School Lunch and School Breakfast Programs. The financial activity occurring in this Fund is maintained in checkbook fashion during the fiscal year. This is a repeat finding (2020-004) from the previous fiscal year. CRITERIA: Prudent internal control over accounting for federal program funds requires non-federal organizations such as the School District to maintain financial records which account for federal funds in such a manner as to be able to properly track the receipt and use of federal funds as stated in Section 2 CFR Part 200 of the Uniform Guidance. Best practices suggest that the use of a general ledger system of accounting would enable the District to aggregate financial information involving federal funds during the fiscal year in such a manner to properly manage, monitor, and report the financial activity in compliance with federal program guidelines. RECOMMENDATION: During the 2018-2019 fiscal year, the District implemented new accounting software that can readily account for the financial activity of all Funds in a manner like the District’s General Fund. I am recommending that the management of the School District utilize the new accounting software to enter the financial activity (Receipts and Disbursements) of the Cafeteria Fund in a manner like the General Fund. This procedure will significantly enhance the District-wide internal controls over financial reporting for the Cafeteria Fund, as well as provide management the ability to produce meaningful financial reports reflecting the activity in the Cafeteria Fund for prudent oversight by the Board of Education. In addition, this procedure will enable the District to comply with the recordkeeping requirements for federal funds as specified in Section 2 CFR Part 200 of the Uniform Guidance. MANAGEMENT’S CORRECTIVE ACTION PLAN: District management is reviewing its current system of processing the transactions for the Cafeteria Fund to determine the most efficient and effective manner for implementation of a general ledger system of accounting for this Fund as opposed to its current manual process. It is anticipated that the conversion of this Fund into the District’s accounting software can be completed during the 2024-2025 fiscal year to enable the District to comply with the recordkeeping requirements for federal funds as specified in 2 CFR Part 200 of the Uniform Guidance.

View Audit 316302

Finding 479728 (2021-005)

Material Weakness 2021

Cambria Heights School District

PA

Subrecipient Monitoring Reporting Matching / Level of Effort / Earmarking § 200.302

CONDITION: The District did not properly record its federal program expenditures for the GEER, ESSER, and ARP ESSER federal grant programs using the various federal funding source expenditure codes as prescribed by the Chart of Accounts for PA Local Educational Agencies maintained by the PA Office o...

CONDITION: The District did not properly record its federal program expenditures for the GEER, ESSER, and ARP ESSER federal grant programs using the various federal funding source expenditure codes as prescribed by the Chart of Accounts for PA Local Educational Agencies maintained by the PA Office of the Budget, Office of Comptroller Operations. CRITERIA: The Pennsylvania Department of Education (PDE), through the PA Office of the Budget, Office of Comptroller Operations Chart of Accounts requires School Districts to utilize specific funding source codes for federal program expenditures. In addition, Section 2 CFR 200.302(a) and 302(b) of the Uniform Guidance requires non-federal organizations such as the School District to maintain financial records which account for federal funds in such a manner as to be able to properly track the identification and use of federal funds. RECOMMENDATION: I am recommending that the School District properly follow the guidance contained within the PA Office of the Budget, Office of Comptroller Operations Chart of Accounts for recording all expenditures of the School District, most specifically, federal program grant expenditures to 1) enhance internal controls for tracking and monitoring federal program expenditures and 2) comply with the recordkeeping requirements for federal funds as specified in Section 2 CFR Part 200.302(a) and 302(b) of the Uniform Guidance and PDE regulations. MANAGEMENT’S CORRECTIVE ACTION PLAN: District management is in the process of revising its chart of accounts in the general ledger to properly reflect the funding source codes for federal program expenditures, and other available funding source codes (state and local) as applicable to the District. It is anticipated that the updated chart of accounts will be utilized by the District starting with the 2024-2025 fiscal year to enable the District to enhance its internal controls for tracking and monitoring federal program expenditures and to comply with the recordkeeping requirements for federal funds as specified in Section 2 CFR Part 200.302(a) and 302(b) of the Uniform Guidance and PDE regulations.

View Audit 316302

Finding 479704 (2021-004)

Significant Deficiency 2021

City of Pekin

IL

Internal Control / Segregation of Duties

The Director of Finance, along with staff, will review year-end adjustments as part of the audit preparation process and work to reduce the number of entries proposed by the auditors and prepare fully adjusted financial statements prior to audit fieldwork. The Finance Department will conduct monthly...

The Director of Finance, along with staff, will review year-end adjustments as part of the audit preparation process and work to reduce the number of entries proposed by the auditors and prepare fully adjusted financial statements prior to audit fieldwork. The Finance Department will conduct monthly reconciliations and perform month end closing procedures to better prepare for year end adjustments and audit field work. The Finance Department will review, expand and complete its list of monthly closing procedures and year end adjustment reconciliations prior to audit fieldwork.

View Audit 316258

Finding 479703 (2021-003)

Material Weakness 2021

City of Pekin

IL

Internal Control / Segregation of Duties

The Director of Finance, along with staff, will review and perform monthly bank reconciliations on a timely basis and investigate any variances. Staff will review and make journal entries in real time as they occur to better prepare for monthly reconciliations. Reviewing transactions daily enables e...

The Director of Finance, along with staff, will review and perform monthly bank reconciliations on a timely basis and investigate any variances. Staff will review and make journal entries in real time as they occur to better prepare for monthly reconciliations. Reviewing transactions daily enables efficient reconciliations as supporting documents will be readily available.

View Audit 316258

Finding 479701 (2021-001)

Material Weakness 2021

City of Pekin

IL

Cash Management Internal Control / Segregation of Duties

The Director of Finance, along with staff, will evaluate all revenues, receivables, payable, and expenses as part of the audit preparation process and prepare fully adjusted financial statements prior to audit fieldwork. The Finance Department will conduct monthly reconciliations and perform month e...

The Director of Finance, along with staff, will evaluate all revenues, receivables, payable, and expenses as part of the audit preparation process and prepare fully adjusted financial statements prior to audit fieldwork. The Finance Department will conduct monthly reconciliations and perform month end closing procedures to better prepare for audits. The month end closing procedures should ensure that all expenses are allocated appropriately between funds prior to year-end adjustments.

View Audit 316258

Finding 479128 (2021-003)

Material Weakness 2021

Wyola School District No. 29

MT

Questioned Costs Internal Control / Segregation of Duties

The District is currently taking steps to provide adequate control over the payroll process. This includes the review of each payroll by the Superintendent and Financial Consultant. The newly hired Superintendent is overseeing all Human Resources functions at the District.

View Audit 315621 Questioned Costs: $1

Finding 478559 (2021-007)

Material Weakness 2021

City of Adelanto

CA

Subrecipient Monitoring Reporting Matching / Level of Effort / Earmarking

Corrective action has been immediately implemented in response to the auditors' recommendation. As financial reporting is still in process of getting to current, the City anticipates findings to be reduced in future fiscal years.

View Audit 315185

Finding 478526 (2021-004)

Material Weakness 2021

Child Development Council of Franklin County

OH

Internal Control / Segregation of Duties

1. Review and Revise Payroll Policies and Procedures August 2024 Fiscal Staff/Management Team Payroll Policies and Procedures Uniform Guidance 45 CFR Part 75.302(b)(3) Financial management and standards for financial management systems and 75.430 Compensation - personal services and 75.431 Compensat...

1. Review and Revise Payroll Policies and Procedures August 2024 Fiscal Staff/Management Team Payroll Policies and Procedures Uniform Guidance 45 CFR Part 75.302(b)(3) Financial management and standards for financial management systems and 75.430 Compensation - personal services and 75.431 Compensation - fringe benefits.

View Audit 315155

Finding 478526 (2021-004)

Material Weakness 2021

Child Development Council of Franklin County

OH

Internal Control / Segregation of Duties

2. Board of Director and Policy Council approval of revised Policies and Procedures September 2024 Executive Director Payroll Policies and Procedures Uniform Guidance 45 CFR Part 75.302(b)(3) Financial management and standards for financial management systems and 75.430 Compensation - personal servi...

2. Board of Director and Policy Council approval of revised Policies and Procedures September 2024 Executive Director Payroll Policies and Procedures Uniform Guidance 45 CFR Part 75.302(b)(3) Financial management and standards for financial management systems and 75.430 Compensation - personal services and 75.431 Compensation - fringe benefits.

View Audit 315155

Finding 478526 (2021-004)

Material Weakness 2021

Child Development Council of Franklin County

OH

Internal Control / Segregation of Duties

3. Training Staff on Revised Policies and Procedures September 2024 Executive Director Payroll Policies and Procedures Uniform Guidance 45 CFR Part 75.302(b)(3) Financial 10 management and standards for financial management systems and 75.430 Compensation - personal services and 75.431 Compensation ...

3. Training Staff on Revised Policies and Procedures September 2024 Executive Director Payroll Policies and Procedures Uniform Guidance 45 CFR Part 75.302(b)(3) Financial 10 management and standards for financial management systems and 75.430 Compensation - personal services and 75.431 Compensation - fringe benefits.

View Audit 315155

Finding 478526 (2021-004)

Material Weakness 2021

Child Development Council of Franklin County

OH

Internal Control / Segregation of Duties

4. Implement revise Policies and Procedures October 2024 Executive Director Payroll Policies and Procedures Uniform Guidance 45 CFR Part 75.302(b)(3) Financial management and standards for financial management systems and 75.430 Compensation - personal services and 75.431 Compensation - fringe benef...

4. Implement revise Policies and Procedures October 2024 Executive Director Payroll Policies and Procedures Uniform Guidance 45 CFR Part 75.302(b)(3) Financial management and standards for financial management systems and 75.430 Compensation - personal services and 75.431 Compensation - fringe benefits

View Audit 315155

Finding 478526 (2021-004)

Material Weakness 2021

Child Development Council of Franklin County

OH

Internal Control / Segregation of Duties

5. Monitor Implementation of the policies and procedures November 2024 Executive Director Payroll Policies and Procedures and Payroll reports from payrolls system Uniform Guidance 45 CFR Part 75.342 Monitoring and reporting program performance and 45 CFR Part 75.302(b)(3) Financial management and st...

5. Monitor Implementation of the policies and procedures November 2024 Executive Director Payroll Policies and Procedures and Payroll reports from payrolls system Uniform Guidance 45 CFR Part 75.342 Monitoring and reporting program performance and 45 CFR Part 75.302(b)(3) Financial management and standards for financial management systems and 75.430 Compensation - personal services and 75.431 Compensation - fringe benefits.

View Audit 315155

Finding 478526 (2021-004)

Material Weakness 2021

Child Development Council of Franklin County

OH

Internal Control / Segregation of Duties

6. Provide copies of the reports to the Executive Director, Board and Policy council November 2024 Executive Director Monitoring summary report and Payroll reports from payrolls system Uniform Guidance 45 CFR Part 75.302(b)(3) Financial management and standards for financial management systems 11 an...

6. Provide copies of the reports to the Executive Director, Board and Policy council November 2024 Executive Director Monitoring summary report and Payroll reports from payrolls system Uniform Guidance 45 CFR Part 75.302(b)(3) Financial management and standards for financial management systems 11 and 75.430 Compensation - personal services and 75.431 Compensation - fringe benefits.

View Audit 315155

Finding 478526 (2021-004)

Material Weakness 2021

Child Development Council of Franklin County

OH

Internal Control / Segregation of Duties

7. If necessary, conduct additional revision to the policies and procedures. November 2024 Executive Director & Management Team Payroll Policies and Procedures Uniform Guidance 45 CFR Part 75.302(b)(3) Financial management and standards for financial management systems and 75.430 Compensation - pers...

7. If necessary, conduct additional revision to the policies and procedures. November 2024 Executive Director & Management Team Payroll Policies and Procedures Uniform Guidance 45 CFR Part 75.302(b)(3) Financial management and standards for financial management systems and 75.430 Compensation - personal services and 75.431 Compensation - fringe benefits.

View Audit 315155

Finding 478526 (2021-004)

Material Weakness 2021

Child Development Council of Franklin County

OH

Internal Control / Segregation of Duties

8. Conduct follow-up monitoring to ensure fully implementation. December 2024 Executive Director Payroll Policies and Procedures Uniform Guidance 45 CFR Part 75.302(b)(3) Financial management and standards for financial management systems and 75.430 Compensation - personal services and 75.431 Compen...

8. Conduct follow-up monitoring to ensure fully implementation. December 2024 Executive Director Payroll Policies and Procedures Uniform Guidance 45 CFR Part 75.302(b)(3) Financial management and standards for financial management systems and 75.430 Compensation - personal services and 75.431 Compensation - fringe benefits.

View Audit 315155

Finding 478526 (2021-004)

Material Weakness 2021

Child Development Council of Franklin County

OH

Internal Control / Segregation of Duties

9. Complete Summary Schedule January 2025 Executive Director Summary Schedule Uniform Guidance 45 CFR Part 75.511 Audit findings follow-up

View Audit 315155

Finding 478306 (2021-002)

Material Weakness 2021

City of Compton

CA

HUD Housing Programs Material Weakness Reporting

Management Response and Corrective Action Plan City's Response: The City concurs with the recommendation. Corrective Action Plan: The City Controller's Office drafted a grants policy that is currently under review by City Management. Community development staff will ensure a succession plan is in pl...

Management Response and Corrective Action Plan City's Response: The City concurs with the recommendation. Corrective Action Plan: The City Controller's Office drafted a grants policy that is currently under review by City Management. Community development staff will ensure a succession plan is in place for any staff turnover and for report preparation compliance. Planned Implementation Date: December 31, 2024 Responsible Person(s): City Manager, Community Development Director, and City Controller

View Audit 314981

Finding 478182 (2021-001)

Material Weakness 2021

La'i'opua 2020

HI

Reporting Internal Control / Segregation of Duties

In response to the negative finding of the 2019, 2020 and 2021 audits, immediate actions have been taken by L2020 to address the issues and prevent reoccurrence in the future. The individuals who were previously responsible for financial reporting and cash management during the audit are no longer e...

In response to the negative finding of the 2019, 2020 and 2021 audits, immediate actions have been taken by L2020 to address the issues and prevent reoccurrence in the future. The individuals who were previously responsible for financial reporting and cash management during the audit are no longer employed at L2020. Going forward, Rebecca “Kawehi” Inaba, appointed as the Executive Director in late 2021, will take charge of ensuring that L2020 remains compliant with all financial requirements, including conducting audits in a timely manner. The organization expresses confidence in her ability to keep L2020 up to date with all financial obligations. In an effort to enhance control and oversight, L2020 will be instituting a quality control review process for all forthcoming report submissions. This measure aims to identify any discrepancies or delays in submissions, enabling corrective actions to be taken promptly. L2020 remains dedicated to upholding transparency and accountability in their financial practices. These proactive steps are crucial in enhancing processes and performance. The organization appreciates understanding and support as they strive for improved financial management practices at L2020.

View Audit 314855

Finding 406473 (2021-002)

Significant Deficiency 2021

Leech Lake Tribal College

AZ

Reporting Significant Deficiency Matching / Level of Effort / Earmarking § 200.328

The College will ensure that all grant reports are reviewed in detail and information reported will be traced to the source reports by the reviewer. The College also implemented policies and procedures to ensure all grant reports are submitted prior to the due date.

View Audit 311635

Finding 406469 (2021-001)

Material Weakness 2021

Leech Lake Tribal College

AZ

Material Weakness Reporting Internal Control / Segregation of Duties § 200.512

Management has implemented policies and procedures to ensure the timely submission of single audit reporting package.

View Audit 311635

Corrective Action Plans

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