Corrective Action Plans

Finding 15931 (2022-005)

Significant Deficiency 2022

South Carolina State Housing Finance and Development Authority

SC

Questioned Costs Reporting Significant Deficiency

COVID-19 Emergency Rental Assistance ? Assistance Listing Number 21.023 Recommendation: We recommend the Authority implements controls to ensure that documentation is maintained to support amounts reported. Review and approval of the amounts reported to Treasury should be documented. Explanation of ...

COVID-19 Emergency Rental Assistance ? Assistance Listing Number 21.023 Recommendation: We recommend the Authority implements controls to ensure that documentation is maintained to support amounts reported. Review and approval of the amounts reported to Treasury should be documented. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: SC Housing has expended the majority of the COVID-19 Emergency Rental Assistance funds, and the program will be ending in the coming months. The close-out plan includes the transfer and archive of all data from the third-party vendor working to implement the program. A protocol was implemented with the closeout report to Treasury for ERA1 funds in January, 2023, to retain all documentation supporting the report, and all reports moving forward, in SC Housing program files. Review of future reports by the Division Director prior to submission to Treasury will be added to the reporting process. Names of the contact persons responsible for corrective action: Amanda Colbert, Marni Holloway Planned completion date for corrective action plan: partially implemented, review will begin with next report due in April, 2023.

View Audit 19599

Finding 15918 (2022-004)

Significant Deficiency 2022

South Carolina State Housing Finance and Development Authority

SC

Questioned Costs Significant Deficiency Internal Control / Segregation of Duties

Housing Voucher Cluster ? Assistance Listing Numbers 14.871/14.879 Recommendation: We recommend the Authority implements controls to ensure that rent reasonableness is determined prior to the effective date of the change in rent. Explanation of disagreement with audit finding: There is no disagreeme...

Housing Voucher Cluster ? Assistance Listing Numbers 14.871/14.879 Recommendation: We recommend the Authority implements controls to ensure that rent reasonableness is determined prior to the effective date of the change in rent. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: Additional training is being provided to HCP staff to insure they have a clear understanding of the rent reasonableness requirements and timing imposed by HUD. Financing Housing. Building SC. Processes have been updated to require dual authentication. Within 10 business days of receiving a request from the owner for a rent increase, or; within 10 business days of receipt of a decrease request received from HUD, or; when there has been a 10% decrease in the fair market rent that goes into effect at least 60 days before the contract anniversary date, the Housing Program Coordinator (HPC) will make a rent reasonableness determination and approve a corresponding rent adjustment when applicable. Following assessment and action determination, all files will be reviewed a second time by a Housing Administration Coordinator for accuracy and appropriateness. Both the HPC and the Administration Coordinator will be required to acknowledge the request/action taken in writing. Late actions must be justified and reviewed by the Director of Rental Assistance and Compliance prior to effecting the change and/or issuing correspondence. Memo records will be recorded on each voucher file to document actions taken. Names of the contact persons responsible for corrective action: Yolanda Dennison, Kristel Walker, Lenzy Morris, Corrie Temples Planned completion date for corrective action plan: Partially implemented; to be finalized by June 30, 2023.

View Audit 19599

Finding 15917 (2022-003)

Significant Deficiency 2022

South Carolina State Housing Finance and Development Authority

SC

Questioned Costs HUD Housing Programs Significant Deficiency

Housing Voucher Cluster ? Assistance Listing Numbers 14.871/14.879 Recommendation: We recommend that the Authority sets up a separate interestbearing account and executes a depository agreement with their financial institution and HUD; alternatively, we recommend that the Authority obtains a waiver ...

Housing Voucher Cluster ? Assistance Listing Numbers 14.871/14.879 Recommendation: We recommend that the Authority sets up a separate interestbearing account and executes a depository agreement with their financial institution and HUD; alternatively, we recommend that the Authority obtains a waiver from this requirement if local regulation prohibits the Authority from following 24 CFR section 982.156. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: Housing Voucher Cluster funds are held by the Treasurer for the State of South Carolina. The depository agreements in place are between the depository institution and the state Treasurer. SC Housing has contacted HUD via email and requested a waiver for this regulatory requirement. An update will be provided when available. Name of the contact person responsible for corrective action: Lisa Wilkerson Planned completion date for corrective action plan: Waiver request submitted to HUD local field office on March 29, 2023.

View Audit 19599

Finding 15916 (2022-002)

Material Weakness 2022

South Carolina State Housing Finance and Development Authority

SC

Questioned Costs Material Weakness Internal Control / Segregation of Duties

Housing Voucher Cluster ? Assistance Listing Numbers 14.871/14.879 Recommendation: We recommend the Authority implements controls to ensure that the Authority requires HQS deficiencies to be corrected within the timeframe set forth by 2 CFR section 982.404(a). We recommend the Authority implements c...

Housing Voucher Cluster ? Assistance Listing Numbers 14.871/14.879 Recommendation: We recommend the Authority implements controls to ensure that the Authority requires HQS deficiencies to be corrected within the timeframe set forth by 2 CFR section 982.404(a). We recommend the Authority implements controls to ensure abatement is timely for units that do not correct the cited HQS deficiencies within the required timeframe. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: Processes have been updated to assure that Yardi system generated letters are being utilized by staff for inspection deficiency correspondence. The vendor, Yardi, assumes responsibility for assuring that this correspondence meets all current regulatory requirements, as may be amended periodically. This will cure the notice deficiencies observed by the audit team. Additional training is being provided to HCP staff to insure they have a clear understanding of communication requirements and the critical timeline that accompanies the mitigation of exigent health and safety findings, other non-life threating deficiencies, as well as the follow-up inspection time frames allowed by HUD. Processes have been updated to require a monthly report of failed HQS inspections, to include all actions taken, be issued to the Director of Housing Choice Voucher and the Director of Rental Assistance and Compliance. This report is due by the first business day monthly and will be reviewed by senior management to determine abatements required and to issue authorization to abate within the HUD required timeframe. Memo records will be recorded on each voucher file to document actions taken. Financing Housing. Building SC. Names of the contact persons responsible for corrective action: Yolanda Dennison and Lisa Wilkerson Planned completion date for corrective action plan: Partially implemented; to be finalized by June 30, 2023.

View Audit 19599 Questioned Costs: $1

Finding 15915 (2022-001)

Material Weakness 2022

South Carolina State Housing Finance and Development Authority

SC

Questioned Costs Material Weakness Internal Control / Segregation of Duties

Housing Voucher Cluster ? Assistance Listing Numbers 14.871/14.879 Recommendation: We recommend the Authority implement controls to ensure that required HQS and QC inspections are completed timely. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Actio...

Housing Voucher Cluster ? Assistance Listing Numbers 14.871/14.879 Recommendation: We recommend the Authority implement controls to ensure that required HQS and QC inspections are completed timely. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: Periodic HQS Inspections: Procedures are in place that require staff to generate a listing of all properties requiring inspection no less than one hundred twenty (120) days prior to the scheduled inspection date. Each unit under HAP contract must be inspected prior to execution of the initial lease and prior to execution of the HAP contract and no less than biennially thereafter to confirm the unit continues to meet minimum HUD requirements. Management identified a system generated report from YARDI to establish when recurring inspections must be completed. This report is generated a minimum of once monthly to assist with scheduling. The report is monitored by the Operations Manager and the Housing Choice Voucher Director. Procedures have been updated to require that the Director of Rental Assistance and Compliance review all inspections completed after the date due and the accompanying explanation for the delay. Management will track and analyze the data generated from the late inspections to identify patterns and implement corrective actions as warranted. Financing Housing. Building SC. QC Inspections: Upon discovery, a supervisor was assigned and all prior year HQS QC inspections were completed, albeit late. Effective April 1, 2023, and every month thereafter, the designated manager will conduct QC inspections utilizing the minimum file size sample based on the number of units under HAP contract annually. All required inspections will be completed no later than the end of each fiscal year. A status report documenting all efforts and results will be submitted monthly to the Director of Rental Assistance and Compliance. Management will track and analyze the data generated from these inspections to assure all program inspections are consistent and compliant and that any patterns identified are effectively addressed with additional training, etc. as warranted. Names of the contact persons responsible for corrective action: Lenzy Morris, Yolanda Dennison, Lisa Wilkerson Planned completion date for corrective action plan: June 30, 2023

View Audit 19599

Finding 15914 (2022-001)

Significant Deficiency 2022

South Carolina Regional Housing Authority No. 3

SC

HUD Housing Programs Significant Deficiency Internal Control / Segregation of Duties

Finding 2022-001 ? Internal Controls Governing the Public Housing Waiting List ? Significant Deficiency ? CFDA #14.850 Corrective Action Plan: Although we have determined that no one has received housing unjustly and the written process was followed other than the documenting of each applicants fi...

Finding 2022-001 ? Internal Controls Governing the Public Housing Waiting List ? Significant Deficiency ? CFDA #14.850 Corrective Action Plan: Although we have determined that no one has received housing unjustly and the written process was followed other than the documenting of each applicants file verifying the history of offer and contact. We determined that the following internal controls were relevant to our meeting out audit findings: ? We would have to develop an across the board protocol of how we would be handling applications from entry to being housed. We would have to not only enforce written policies but put in place an audit to ensure that the process was being carried out correctly. ? We will be contacting our public housing software company to get the offering process up and running in the computer so that we will be able to document all actions that take place within an applicants file so that it can be viewed by all persons upon opening an applicants file. ? We will be changing our current offer process so that it will be done and documented only through the computer and we will no longer use handwritten documentation. ? We will get with our software company to ensure that we will have the proper written protocol and make sure that we can run activity reports. ? We will train all affected employees with these new changes. Person Responsible: Doris Jamison and Tony Still Anticipated Completion Date: 03/31/2023

View Audit 19555

Finding 15901 (2022-002)

Material Weakness 2022

Woodland School District No. 404

WA

Subrecipient Monitoring Internal Control / Segregation of Duties Special Tests & Provisions

Finding ref number: 2022-002 Finding caption: The District did not have adequate internal controls for ensuring compliance with wage rate requirements. Name, address, and telephone of District contact person: Stacy Brown, Director of Business Services 800 Second St Woodland, WA 98674-8467 (360) 8...

Finding ref number: 2022-002 Finding caption: The District did not have adequate internal controls for ensuring compliance with wage rate requirements. Name, address, and telephone of District contact person: Stacy Brown, Director of Business Services 800 Second St Woodland, WA 98674-8467 (360) 841-2715 Corrective action the auditee plans to take in response to the finding: (If the auditee does not concur with the finding, the auditee must list the reasons for disagreement). The current vendor invoices do not break out when we are getting equipment and when there are staff onsite working. The work has been sporadic, so in the Business Office, we do not know when they are onsite and therefore not sure when payrolls are required. We are working with the maintenance department to keep us apprised when we have contractors onsite working on the HVAC (ESSER) projects. We originally thought we could get the weekly payrolls from the L&I website, but are finding that they are not posted timely and sometimes not at all. We are working directly with the vendors to provide weekly payrolls when they are working. The district has implemented a review log for all Federal projects requiring review of weekly payrolls. The Purchasing and Benefits Coordinator will document the vendor, week and certify that she has received and reviewed the payrolls received. Payment will be withheld if we do not receive the payrolls in a timely manner. Anticipated date to complete the corrective action: 6/12/23

View Audit 19549

Finding 15893 (2022-001)

Material Weakness 2022

Home Share 092-Hd017

MN

Internal Control / Segregation of Duties Eligibility HUD Housing Programs § 200.303

March 27, 2023 HOME SHARE HUD PROJECT NO. 092-HD017 Corrective Action Plan Finding: 2022-001 ? Compliance and Controls over Compliance ? Eligibility Supportive Housing for Persons with Disabilities (Section 811), CFDA No. 14.181 Material Weakness & Noncompliance In 2022, Home Share did not have cont...

March 27, 2023 HOME SHARE HUD PROJECT NO. 092-HD017 Corrective Action Plan Finding: 2022-001 ? Compliance and Controls over Compliance ? Eligibility Supportive Housing for Persons with Disabilities (Section 811), CFDA No. 14.181 Material Weakness & Noncompliance In 2022, Home Share did not have controls in place to ensure that eligibility criteria and rent calculations were being reviewed and/or approved by someone other than the individual making the initial determination or annual recertification. Actions Taken or Planned: Management agrees with this finding. Beginning in January 2022, management has contracted out the eligibility determination process to a third-party contractor with significant experience in affordable housing and similar processes. Management is working with the contractor to include a second individual in this process so that there will be a review performed by someone other than the individual making the initial determination or annual recertification. Contact Persons: Ernest Johnson, Housing Associate Director Robert Pickering, Chief Financial Officer

View Audit 19545

Finding 15892 (2022-001)

Material Weakness 2022

Greenwood Charter School

UT

Questioned Costs Material Weakness Reporting

Finding 2022-001 Finding Summary: Greenwood Charter School is required to submit annual financial statements and the proposed budget to the USDA. These items were not provided to the USDA by June 30, 2022. Responsible Individuals: Tracey Nelsen, Director and Matt Lovell, Business Manager Corrective ...

Finding 2022-001 Finding Summary: Greenwood Charter School is required to submit annual financial statements and the proposed budget to the USDA. These items were not provided to the USDA by June 30, 2022. Responsible Individuals: Tracey Nelsen, Director and Matt Lovell, Business Manager Corrective Action Plan: Management will provide a copy of the audited financial statements and copy of the proposed budget to USDA annually. Anticipated Completion Date: Ongoing Anticipated Completion Date: Management has provided the audited financial statements and a copy of the proposed budget to USDA in December 2022 and will continue to ensure all necessary corrective action plan items are submitted to the USDA each year.

View Audit 19543

Finding 15889 (2022-004)

Material Weakness 2022

Memorial Health and Subsidiaries

IL

Questioned Costs Subrecipient Monitoring Allowable Costs / Cost Principles § 200.303

? Finding 2022-004 ? In October 2022, Management enhanced its maintained supporting documentation to provide evidence of review and approval of FEMA expenditures and financial reporting for future FEMA submissions. o Responsible Party: Amanda Zentefis

View Audit 19521

Finding 15880 (2022-001)

Significant Deficiency 2022

Mar Vista Eldorado, INC

IN

Subrecipient Monitoring Cash Management HUD Housing Programs

Name of auditee: Mar Vista Eldorado, Inc. HUD auditee identification number: 122-EH528-WAH-NP Name of audit firm: Dauby O'Connor & Zaleski, LLC Period covered by the audit: Year ended June 30, 2022 CAP prepared by Name: Dwight Hargett Position: President/CEO - Management Agent Tele...

Name of auditee: Mar Vista Eldorado, Inc. HUD auditee identification number: 122-EH528-WAH-NP Name of audit firm: Dauby O'Connor & Zaleski, LLC Period covered by the audit: Year ended June 30, 2022 CAP prepared by Name: Dwight Hargett Position: President/CEO - Management Agent Telephone number: 812-987-8344 Current Findings on the Summary of Auditors Results Statement of Condition 2022-001 (Assistance Listing Number 14.157): The required residual receipts deposit in the amount of $9,607 per the June 30, 2021 Computation of Surplus Cash, Distributions and Residual Receipts was not deposited into the residual receipts account within 90 days after the fiscal year end. Recommendation: Management should make a deposit of $9,607 to the residual receipts account for the underfunded amount. Additionally, management should make deposits, as required by the Regulatory Agreement, on an annual basis. Actions taken or planned on the finding: Management made a deposit of $9,607 on August 4, 2022 to fully fund the residual receipts account for the year ended June 30, 2022.

View Audit 19417 Questioned Costs: $1

Finding 15875 (2022-007)

Material Weakness 2022

School District of Marathon City

WI

Internal Control / Segregation of Duties Questioned Costs Subrecipient Monitoring

Child Nutrition Cluster Reporting Child Nutrition Cluster - Assistance Listing No. 10.553, 10.555 Recommendation: We recommend the District implement a review procedure over reimbursement requests where someone other than the preparer reviews the claim to ensure accounts agree back to supporting doc...

Child Nutrition Cluster Reporting Child Nutrition Cluster - Assistance Listing No. 10.553, 10.555 Recommendation: We recommend the District implement a review procedure over reimbursement requests where someone other than the preparer reviews the claim to ensure accounts agree back to supporting documentation prior to the reimbursement request being filed with the grating agency. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action Planned/Taken: Food service reports are now reviewed and initialed monthly. Food service director would initially run the report and it would be reconciled by the Business Manager. Final claims are reconciled before the report is submitted and initialed by the Superintendent. Name(s) of the contact person(s) responsible for corrective action: Nimisha Patel, Business Manager Planned completion date for corrective action plan: January 1, 2023

View Audit 19352

Finding 15873 (2022-002)

None 2022

Cleveland Supported Housing INC

TX

Questioned Costs Reporting Internal Control / Segregation of Duties

Audit Finding 2022-02: There was a shortfall in the monthly deposits to the replacement reserve due to the December 2022 deposit not being made in a timely manner. We have made up the shortfall in January 2023 and in the future, will ensure the monthly deposits are done in a timely manner.

View Audit 19237

Finding 15872 (2022-001)

None 2022

Cleveland Supported Housing INC

TX

Questioned Costs Reporting Internal Control / Segregation of Duties

Audit Finding 2022-01: Some invoices were duplicated on requests for withdrawal from the replacement reserve. Hence, funds were withdrawn for expenditures which had been included in other requests for withdrawal. We are reviewing our process for requesting withdrawals from the replacement reserve to...

Audit Finding 2022-01: Some invoices were duplicated on requests for withdrawal from the replacement reserve. Hence, funds were withdrawn for expenditures which had been included in other requests for withdrawal. We are reviewing our process for requesting withdrawals from the replacement reserve to ensure there is no duplication of expenditure claimed in the future. We will reimburse the reserve for replacement for the overdrawn funds as soon as possible.

View Audit 19237 Questioned Costs: $1

Finding 15869 (2022-002)

None 2022

Simmons University

MA

Questioned Costs Student Financial Aid Reporting

Management?s Views and Corrective Action Plan The University implemented two new systems (Student Information System ? Workday, and Financial Aid System ? PowerFaids) that each are an important part of managing our Federal Student Aid. Most of the building and configuring of these systems happened...

Management?s Views and Corrective Action Plan The University implemented two new systems (Student Information System ? Workday, and Financial Aid System ? PowerFaids) that each are an important part of managing our Federal Student Aid. Most of the building and configuring of these systems happened prior to FY22 with the full launch in production taking place for the Fall 2021. Understandably, some of the integrations of these two systems were not able to be tested prior to Fall of 2021 (ex: actual disbursement of federal loans) and therefore, required significant time and effort in the Fall and beyond to ensure everything worked and students were able to receive funding while also building out and documenting required communications, processes, and compliance protocols. Additionally, we had turnover within the Associate Director of Financial Aid and Loan Manager role in March 2022. The implementation coupled with this staffing issue created a one-time set of circumstances that are outside of the standard oversight and management of our Federal Student Aid funds and processes. Please refer to the response to each individual finding as follows: Finding 2022-002: Borrower data and reconciliation reporting Award Information Cluster: Student Financial Assistance Agency: Department of Education Award Name: Federal Direct Student Loans Award Year: July 1, 2021 ? June 30, 2022 Assistance Listing Number: 84.268 As mentioned above, the University implemented two brand new systems (Student Information System ? Workday, and Financial Aid System ? PowerFaids) that each are an important part of managing our Federal Student Aid. During the first month of the Fall term there were significant challenges with the communication between these systems, which resulted in our first group of loans being disbursed in the last few days of September 29, 2021. It is a known issue that any loans that disburse at the end of the month are not included in the Federal SAS Reconciliation file and as a result this disbursement resulted in significant errors. Ultimately, the University was not able to finalize this reconciliation for this month. As mentioned above, the Financial Aid Office was restructured to provide even greater oversight over our Federal funds. Under the restructured office, the new Associate Director and Manager of Loans and Pell Grants has documented all processes, including reconciliation. Additionally, we created an automated report that is generated after the SAS is received and loaded into PowerFaids. A notification is sent to both the Associate Director/Loan Manager as well as the Director of Financial Aid Systems, Reporting and Compliance to provide documentation that the report was run. The Loan Manager reports to the Director of Financial Aid Systems, Reporting and Compliance who signs the completed SAS reconciliations. This process was fully put into place, including signature, for the 2022-2023 academic year beginning with the September 2022 Reconciliation. The Director of Financial Aid Systems, Reporting and Compliance, Amanda Galban, who can be reached at amanda.galban@simmons.edu, is responsible for the implementation of this corrective action plan.

View Audit 19033

Finding 15866 (2022-003)

Significant Deficiency 2022

Walhalla Community Hospital Association

ND

Questioned Costs Special Tests & Provisions Significant Deficiency § 200.303

Finding 2022-03 Federal Agency Name: Department of Agriculture Program Name: Community Facilities Loans and Grants CFDA #10.766 Finding Summary: There was no formal review separate from the preparer performed over reconciliations of the USDA program reserve fund. Responsible Individuals: Debra F...

Finding 2022-03 Federal Agency Name: Department of Agriculture Program Name: Community Facilities Loans and Grants CFDA #10.766 Finding Summary: There was no formal review separate from the preparer performed over reconciliations of the USDA program reserve fund. Responsible Individuals: Debra Fraser, Administrator Corrective Action Plan: Management will ensure a review separate from the preparer of the reconciliation for the program?s reserve fund is completed with formal documentation noting the review. Anticipate Completion Date: 3/27/2023

View Audit 18909

Finding 15816 (2022-027)

Material Weakness 2022

State of Washington C/o Office of Financial Management

WA

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

Finding: The Office of Financial Management did not have adequate internal controls over and did not comply with federal level of effort requirements for the Education Stabilization Fund program. Questioned Costs: Assistance Listing # 84.425D COVID-19 84.425R COVID-19 94.425U COVID-19 84.425...

Finding: The Office of Financial Management did not have adequate internal controls over and did not comply with federal level of effort requirements for the Education Stabilization Fund program. Questioned Costs: Assistance Listing # 84.425D COVID-19 84.425R COVID-19 94.425U COVID-19 84.425V COVID-19 Amount $0 Status: Corrective action not taken Corrective Action: The Office does not concur with the finding. The Office performed the maintenance of effort (MOE) calculations in accordance with the guidance provided by the U.S. Department of Education (ED). Based on appropriations and past funding, it was determined that the fiscal year 2022 expenditure level did not meet the MOE requirement. The Office followed the federal guidance and directions from a legislative proviso in the enacted state budget (Chapter 334, Laws of 2021, Sec. 954) and submitted a waiver request for fiscal years 2022 and 2023. The waiver was submitted before ED?s stipulated deadline of December 31, 2021. ED?s website confirmed an MOE waiver request was received from Washington state and the status of the request is currently listed as ?under review.? The Office maintains adequate internal controls and has followed all federal and state requirements with due diligence in requesting the MOE waiver. The approval process rests with the federal grantor, and the waiver has not been disapproved. In addition, the Office has been meeting with ED on a monthly basis and is already consulting with the grantor regarding the pending waiver request. The Office will also continue to work with the Legislature, which is the state-level authority for state appropriations, to monitor any updates to federal requirements. Completion Date: Not applicable Agency Contact: Brian Tinney Statewide Accounting Director PO Box 43127 Olympia, WA 98504-3127 (564) 999-1781 brian.tinney@ofm.wa.gov

View Audit 23129

Finding 15792 (2022-001)

Significant Deficiency 2022

Medford Area Public School District

WI

Reporting Significant Deficiency Internal Control / Segregation of Duties

Financial Statement Findings Finding Number: 2022-001 Significant Deficiency ? Annual Financial Reporting Under Generally Accepted Accounting Principles (GAAP) Fiscal Year: 2022 District's Response: We concur. Views of Responsible Officials and Corrective Action: The District recognizes management's...

Financial Statement Findings Finding Number: 2022-001 Significant Deficiency ? Annual Financial Reporting Under Generally Accepted Accounting Principles (GAAP) Fiscal Year: 2022 District's Response: We concur. Views of Responsible Officials and Corrective Action: The District recognizes management's responsibility for the financial statements, despite being drafted by an accounting firm. Due to the District's small size and limited staff the District does review and take responsibility for these statements. Name of Responsible Person: Audra Brooks, Director of Business Services Projected Implementation Date: N/A

View Audit 18907

Finding 15787 (2022-002)

None 2022

City of Biddeford

ME

Questioned Costs Internal Control / Segregation of Duties

Management Response/Corrective Action Plan: When the City originally received the assistance from the American Rescue Plan Act, they intended to use part of that money to fund bonus pay to municipal workers who worked during the COVID crisis. Rather than only giving bonuses to public safety workers,...

Management Response/Corrective Action Plan: When the City originally received the assistance from the American Rescue Plan Act, they intended to use part of that money to fund bonus pay to municipal workers who worked during the COVID crisis. Rather than only giving bonuses to public safety workers, Council voted that it was appropriate to compensate any employee who worked during a certain period of time out of City general funds. However, prior to the first report coming due, the guidelines were updated to include the standard allowance of up to $10 million of the allocation as Revenue Replacement. Revenue Replacement may fund any general government service, including salaries and fringe benefits, with only a few exceptions for debt service and pension contributions. Management elected at this time to elect to use the standard allowance. As noted above, management had already determined that they would expend ARPA funds for public safety workers (i.e., police and fire, and certain clerical staff who came back to work in person prior to the emergency being lifted), and these salaries and benefits were included in the Revenue Replacement on the March, 2022 report. It was not until June 21, 2022 that management transferred the bonus pay for the remaining employees; therefore, management did not consider these funds obligated or expended to the grant until they were transferred.

View Audit 18903

Finding 15761 (2022-001)

Material Weakness 2022

Purdy R-II School District

MO

Internal Control / Segregation of Duties HUD Housing Programs

CORRECTIVE ACTION PLAN October 2, 2022 U.S. DEPARTMENT OF EDUCATION U.S. DEPT. OF AGRICULTURE Purdy School District R-II respectfully submits the following corrective action plan for the year ended June 30, 2022. Contact information for the individual responsible for the corrective action: Dr T...

CORRECTIVE ACTION PLAN October 2, 2022 U.S. DEPARTMENT OF EDUCATION U.S. DEPT. OF AGRICULTURE Purdy School District R-II respectfully submits the following corrective action plan for the year ended June 30, 2022. Contact information for the individual responsible for the corrective action: Dr Travis Graham, Superintendent Purdy School District R-II 201 Gabby Gibbons Dr Purdy, MO 65734 (417) 442-3215 Independent Public Accounting Firm: The CPA Group, PC, 217 4th Street, Monett, MO 65708 Audit Period: Year ended June 30, 2022 The findings from the June 30, 2022, Schedule of Findings and Questioned Costs are discussed below. The findings are numbered consistently with the numbers assigned in the schedule. FINDINGS ? FINANCIAL STATEMENT AUDIT Material Weakness ? Internal Control over Financial Reporting - Segregation of duties Finding 2022-001 Recommendation: We realize Because of limited resources and personnel, management may not be able to achieve a proper segregation of duties; however, our professional standards require that we bring this lack of segregation of duties to your attention in this report. Action Taken: The limited number of available personnel prohibits segregation of incompatible duties and the District does not have the resources to hire additional accounting personnel. Completion Date: Not applicable Sincerely, Dr Travis Graham, Superintendent Purdy School District R-II

View Audit 18879

Finding 15749 (2022-003)

Significant Deficiency 2022

Catawba County, North Carolina

NC

Eligibility Significant Deficiency Internal Control / Segregation of Duties

Federal Award Findings and Questioned Costs (continued) Finding: 2022-003 Name of Contact Person: Karen Harrington, DSS Director Corrective Action/Management?s Response: Congregate Nutrition ? Second Party Review Process The following Second Party Review process was implemented July 2022:...

Federal Award Findings and Questioned Costs (continued) Finding: 2022-003 Name of Contact Person: Karen Harrington, DSS Director Corrective Action/Management?s Response: Congregate Nutrition ? Second Party Review Process The following Second Party Review process was implemented July 2022: Each month the Business Manager reviews two completed CRFs for each SMO site. The two CRFs that are selected from a site should be different types (example: one new CRF and one annual re-assessment, or one annual re-assessment and one termination). There is a spreadsheet where these audits are tracked in the secure SNS Z:drive. It will be stored by fiscal year then Internal Audit then SMO Audit Log. In the spreadsheet, the Business Manager enters the site, the first and last name of the client, the review/audit date, and site. In addition, the following items will be reviewed and documented: ? Dates Match: new registration date or change of information date is included and matches date on the back at the bottom of the document - key date ? Type of CRF: new/returning/annual/change/termination ? Term. Reason: if terminated, the termination date and reason are both indicated ? Complete: all boxes/sections are completed or marked refused to answer if option available ? Signed: CRF is signed by both client and site supervisor ? Timely: update is completed each year (indicated on the bottom of the back page) during the same month that the client started unless there is a change of information ? Electronic Signature of person completing internal review: first initial, last name (types in excel sheet) Second party reviews with checklists and reviewer signatures were already in place for remaining Aging Cluster services. Proposed Completion Date: Immediately and ongoing.

View Audit 18859

Finding 15727 (2022-001)

Significant Deficiency 2022

Catawba County, North Carolina

NC

Student Financial Aid Significant Deficiency Internal Control / Segregation of Duties

Federal Award Findings and Questioned Costs Finding: 2022-001 Name of Contact Person: Karen Harrington, DSS Director Corrective Action/Management?s Response: Agency agrees with the finding and will ensure random reviews of workstations will be completed. Agency will ensure immediate refreshe...

Federal Award Findings and Questioned Costs Finding: 2022-001 Name of Contact Person: Karen Harrington, DSS Director Corrective Action/Management?s Response: Agency agrees with the finding and will ensure random reviews of workstations will be completed. Agency will ensure immediate refresher in Unit meetings regarding computer security. Additionally, County DSS will continue with an annual training to review computer security and will ensure computer security is addressed in new employee orientation. Proposed Completion Date: Immediately and ongoing.

View Audit 18859

Finding 15718 (2022-002)

Significant Deficiency 2022

Bullock Creek School District

MI

Questioned Costs Cash Management Reporting

October 22, 2022 Finding Number: 2022-002 ? Reporting Condition: Meals claimed were not supported by count sheets for either breakfast or lunch for the two months meals were tested prior to MDE site visit. Responsible Person: Stephen Grubaugh ? Director of Business Services Implementation Da...

October 22, 2022 Finding Number: 2022-002 ? Reporting Condition: Meals claimed were not supported by count sheets for either breakfast or lunch for the two months meals were tested prior to MDE site visit. Responsible Person: Stephen Grubaugh ? Director of Business Services Implementation Date: 10-22-2022 During the single audit, it was discovered that Bullock Creek Food Service Department meals claimed were not supported by count sheets for either breakfast or lunch for the two months meals were tested prior to MDE site visit. To ensure that this did not continue, Bullock Creek Food Service and the Technology Department worked together to implement the use of Skyward to track the melas served to students. This transition occurred over a few months, as the implementation was rolled out to 5 individual buildings. When MDE came on campus and audited the months during the transition and found a few discrepancies whish were remedied in the software and the claims were adjusted. RPC then audited the month following the MDE reviews and found no discrepancies. Skyward was used for the rest of the year. For the 2022-2023 Scholl year, the Food Service Department may purchase Meal Magic, which is a food Service software that will streamline the recording and reporting processes even more and may reduce the chance of errors even further. Sincerely, Stephen Grubaugh Director of Business Services

View Audit 18850

Finding 15717 (2022-001)

Material Weakness 2022

Bullock Creek School District

MI

Cash Management School Nutrition Programs Material Weakness

October 22, 2022 Finding Number: 2022-001 ? Excess Fund Balance In Food Service Fund Condition: As of year-end the District had a fund balance in the non-profit food service fund in excess of three months? operating expenses by approximately $85,951. Responsible Person: Stephen Grubaugh ? Dir...

October 22, 2022 Finding Number: 2022-001 ? Excess Fund Balance In Food Service Fund Condition: As of year-end the District had a fund balance in the non-profit food service fund in excess of three months? operating expenses by approximately $85,951. Responsible Person: Stephen Grubaugh ? Director of Business Services Implementation Date: 7/1/2022 During the single audit, it was discovered that Bullock Creek Food Service Department had an excess fund balance in the Food Service Fund by approximately $85,951. This was due to the meal reimbursement rate exceeding the food cost to prepare the meals. All meals served to students during the 2021-2022 school year were provided free of charge to the students, due to grants. In order to reduce the excess fund balance, the district created a spend down plan for the 2022-2023 Fiscal Year. The kitchen at Bullock Creek Elementary needs some structural repairs completed due to faulty roof drainage. The total cost of the project is approximately $73,000. Construction on the project was started in July of 2022 and finished in August. Meal Magic will be implemented during the 2022-2023 School year for tracking of the meal purchases of students and staff. This software will cost approximately $3,000 in the first year to implement and $6,000 in subsequent years. The reaming $10,000 in excess fund balance will be retained, in order to aid in the paydown of potential negative student food service account balances. Since students haven?t paid for breakfasts or lunches for the past 2 years, it is unknown how the many will families will have feel a financial burden paying for their children?s school meals. Sincerely, Stephen Grubaugh Director of Business Services

View Audit 18850

Finding 15706 (2022-003)

Material Weakness 2022

New Castle County, Delaware

DE

Questioned Costs Subrecipient Monitoring Material Weakness § 200.303

2022-003 Coronavirus State and Local Fiscal Recovery Funds ? Assistance Listing No. 21.027 Recommendation: The County should enhance its procedures and internal controls regarding preparation of the Project and Expenditure Reports to ensure that information reported is accurate and agrees to support...

2022-003 Coronavirus State and Local Fiscal Recovery Funds ? Assistance Listing No. 21.027 Recommendation: The County should enhance its procedures and internal controls regarding preparation of the Project and Expenditure Reports to ensure that information reported is accurate and agrees to supporting documentation. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: : New Castle County self-reported the variances in expenditures and obligations due to accruals of costs to previously reported quarters. Such variances can be common with just-in-time reporting. Regarding the omitted projects, the Reporting Portal has undergone several updates throughout the period of performance. These updates contributed to confusion in required data for projects. The omitted projects were included in the subsequent reports after the data points were known and tracked. Regarding the reporting of project obligations, Treasury?s definition of obligation is very broad and FAQ 13.17 allows the recipient to use its discretion to determine when an obligation is incurred. Such discretion calls for the interpretation of several source documents. In each report total obligations were not less than total expenditures nor did total obligations exceed available funding. Name(s) of the contact person(s) responsible for corrective action: Benjamin Morris-Levenson Planned completion date for corrective action plan: June 30, 2023

View Audit 18840

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