Corrective Action Plans

Finding 497511 (2023-004)

Significant Deficiency 2023

Lifewire

WA

Subrecipient Monitoring Matching / Level of Effort / Earmarking

o By September 30, 2024, following the guidance of our CoC contract manager, the LifeWire Finance staff will have revised and resubmitted CoC RFRs submitted in 2024 to reflect match funds appropriately. All RFRs will indicate written documentation of review and approval by the Co-ED of Organizationa...

o By September 30, 2024, following the guidance of our CoC contract manager, the LifeWire Finance staff will have revised and resubmitted CoC RFRs submitted in 2024 to reflect match funds appropriately. All RFRs will indicate written documentation of review and approval by the Co-ED of Organizational Operations for match fund calculations and support required by our funders. Documentation of reports, review and approval is filed and maintained appropriately. o Name of Responsible Individual: Jeannette Biffle, Controller

View Audit 320262

Finding 497466 (2023-001)

Material Weakness 2023

Harvard Townhouse, Inc.

NE

Internal Control / Segregation of Duties Material Weakness Reporting

The Project is relatively small with only one administrative staff. Further the Board of Directors is a volunteer board and not a managing board. It does not have the time nor expertise to provide the necessary services to correct the internal control deficiencies noted. The Board of Directors has r...

The Project is relatively small with only one administrative staff. Further the Board of Directors is a volunteer board and not a managing board. It does not have the time nor expertise to provide the necessary services to correct the internal control deficiencies noted. The Board of Directors has reviewed this issue, and determined there are no additional procedures which can reasonably be done to eliminate these deficiencies. As such, the Board of Directors accepts this finding.

View Audit 320253

Finding 497418 (2023-001)

Material Weakness 2023

New Philadelphia City School District

OH

Matching / Level of Effort / Earmarking HUD Housing Programs

The District will check all prevailing wage rates for all contractors that work on projects that are governed by the Davis Bacon Act. All Davis Bacon projects will include a list of contractors on the project to ensure completeness of the Prevailing Wage Reports.

View Audit 320178

Finding 497414 (2023-001)

None 2023

Granby Homes for Senior Citizens, Inc.

CT

Matching / Level of Effort / Earmarking

2023-001 SECURITY DEPOSITS Grantor: U.S. Department of Agriculture Award Name: Rural Rental Housing Loans Award Year: 2023 Award Numbers: Various CFDA Number: 10.415 Criteria: Tenant security deposit accounts must be fully funded and maintained in a separate bank account. Condition: During our audit...

2023-001 SECURITY DEPOSITS Grantor: U.S. Department of Agriculture Award Name: Rural Rental Housing Loans Award Year: 2023 Award Numbers: Various CFDA Number: 10.415 Criteria: Tenant security deposit accounts must be fully funded and maintained in a separate bank account. Condition: During our audit testing, we noted that while the Project maintained a separate bank account for tenant security deposits, it was not fully funded. Cause: Tenant security deposits subledger is not reconciled with tenant security deposits bank account to ensure account is fully funded. Effect: Tenant security deposits bank account is underfunded. Questioned Costs: None noted. Recommendation: The Project should implement controls to ensure that the tenant security deposits bank account is fully funded. Management’s Views and Corrective Action Plan: Management will subsequently correct this and transfer tenant funds received for their security deposit from the operating bank account to the tenant security deposits bank account to ensure it is fully funded.

View Audit 320161

Finding 497361 (2023-002)

Material Weakness 2023

Benton-Franklin Council of Governments

WA

Internal Control / Segregation of Duties Subrecipient Monitoring Allowable Costs / Cost Principles

Finding ref number: 2023-002 Finding caption: The Council’s internal controls were inadequate for ensuring compliance with federal reporting requirements for the Economic Assistance Adjustment Program. Name, address, and telephone of Council contact person: Michelle M. Holt, BFCOG Executive Director...

Finding ref number: 2023-002 Finding caption: The Council’s internal controls were inadequate for ensuring compliance with federal reporting requirements for the Economic Assistance Adjustment Program. Name, address, and telephone of Council contact person: Michelle M. Holt, BFCOG Executive Director 587 Stevens Drive Richland, WA 99352 509-492-4410 BFCOG is submitting the following statement in response to the finding: BFCOG concurs with this finding. An unfortunate comedy of errors led to the creation, submission, and acceptance of the FY2023 Mid-Year and Year-End Financial Reports for the EDA CARES Revolving Loan Fund activities. These errors included changes in BFCOG key staff at the end of 2022 and again mid-way through 2023, a lack of understanding by BFCOG staff of the EDA Portal and the report's pre-population and cumulation functions, a lack of documentation to support the submitted reports, and a lack of review for accuracy by BOTH BFCOG and EDA. The internal financial reports necessary to accurately complete the EDA Financial Reports were readily available, as was training on the EDA Portal and Report functions. BFCOG, indeed, was lacking internal controls. It is important to note that the EDA RLF Administrator accepted both reports as submitted and without requesting correction, even though they had nearly identical data to the 2022 year-end report. Had either report been returned by EDA for correction, the problem could have been identified and corrected promptly. Corrective action the auditee plans to take in response to the finding: CORRECTIVE ACTION PLAN: 1. Creation of GUIDE FOR EDA CARES REVOLVING LOAN FUND SEMI-ANNUAL FINANCIALREPORTING PROCESS FOR BFCOG-47289WA FOR EDA AWARD NUMBER 07-79-07622document. This process has been reviewed with the BFCOG Primary Contact/ReportingOfficial (Z. Ratkai), Authorized Representative/Lending Director (M. Holt), and EDA’s RLFProgram Administrator (J. Goldsberry) to ensure adequate training for upcoming reportingcycles and proper review both internally and at the EDA level. 2. Guidance was received from the EDA RLF Program Administrator that there is no mechanismfor correcting the reports filed in error and to make necessary corrections when filing the2024 Mid-Year Financial Report as the data is cumulative. 3. File the 2024 Mid-Year Financial Report accurately and on time and document the reviewand submission paper trail for future reference. Anticipated date to complete the corrective action: Completed on 7/3/2024

View Audit 320097

Finding 497358 (2023-001)

Significant Deficiency 2023

Maryland Mep, Inc.

MD

Questioned Costs Matching / Level of Effort / Earmarking

Corrective Action: We concur with the recommendation. On an annual basis, Maryland MEP prepares an annual budget detailing Federal and Non-Federal sources and uses of funds which is reviewed and approved by both the NIST MEP Program Office and the NIST Grants Management Division. In the future, M...

Corrective Action: We concur with the recommendation. On an annual basis, Maryland MEP prepares an annual budget detailing Federal and Non-Federal sources and uses of funds which is reviewed and approved by both the NIST MEP Program Office and the NIST Grants Management Division. In the future, Maryland MEP will provide additional clarity and detail on the sources of non-federal cost share.

View Audit 320094 Questioned Costs: $1

Finding 497358 (2023-001)

Significant Deficiency 2023

Maryland Mep, Inc.

MD

Questioned Costs Matching / Level of Effort / Earmarking

The cost sharing in question was not required as the program was eligible for cost-share relief under the legislated guidelines available to the program. A review of these costs is currently being conducted by NIST and Maryland MEP is working closely with NIST to review this open item.

View Audit 320094 Questioned Costs: $1

Finding 497346 (2023-005)

Significant Deficiency 2023

Town of Paradise

CA

Reporting Significant Deficiency Matching / Level of Effort / Earmarking

Finding Reference Number: 2023-005 Description of Finding: The expenditure information provided to report the amounts of the SEFA contained totals representing transfers from other funds instead of individual expenditure amounts. Statement of Concurrence or Nonconcurrence: Financial ...

Finding Reference Number: 2023-005 Description of Finding: The expenditure information provided to report the amounts of the SEFA contained totals representing transfers from other funds instead of individual expenditure amounts. Statement of Concurrence or Nonconcurrence: Financial information contained large transfers for projects that crossed multiple funds and funding sources. Corrective Action: During FY23/24 the town implemented individual expenditure detail for federal awards expenditures in the general ledger and supplemental listings. Invoices and payroll are direct billed to projects contained within the project’s fund. The town now only transfers minimally as needed for overhead type of transactions. Name of Contact Person: Aimee Beleu, Finance Director, (530) 872-6291, abeleu@townofparadise.com Projected Completion Date: 4/1/2024

View Audit 320057

Finding 497342 (2023-001)

Material Weakness 2023

Town of Paradise

CA

Cash Management Material Weakness Reporting

Description of Finding: There were 42 audit adjustments and closing entries posted during the audit to report the Towns’s financial statements in accordance with Generally Accepted Accounting Principles (GAAP). The large number of adjustments identified during the course of the audit indicates t...

Description of Finding: There were 42 audit adjustments and closing entries posted during the audit to report the Towns’s financial statements in accordance with Generally Accepted Accounting Principles (GAAP). The large number of adjustments identified during the course of the audit indicates that the Town does not have internal controls in place to prevent or detect misstatements on a timely bases. Areas where accounts and transactions were not adequately reconciled and evaluated for proper recording prior to the start of the audit field work and areas that require improvement included in the following: • Procedures to ensure beginning fund balance/net position roll-forward to prior year audited financial statements. • Procedures for ensuring revenue received in advance of qualifying expenditures are properly deferred. • Procedures to ensure retentions payable is properly accrued. • Procedures for tracking grant expenditures to ensure revenue is accrued to the extent of reimbursable expenditures incurred and evaluation of proper accounting treatment of transactions as earned, unearned, or unavailable revenue. • Procedures to ensure capital outlay is properly reconciled to capital asset additions. • Procedures to ensure that building permit fees not earned are properly accounted for as unearned revenue. • Procedures to ensure all loans issued by the Town are properly recorded in the general ledger. • Procedures for evaluating when entries should be posted to fund balance and whether fund balance/net position/restrictions and investment in capital assets are properly reflected. • Procedures to ensure interfund transactions, including due to and from other funds, advances to and from other funds and transfer in and out, excluding those with agency funds, are in balance. Statement of Concurrence or Nonconcurrence: There was a large number of audit adjustments as the audit progressed. Some of those are standard within a yearly closing period. Corrective Action: Staff turnover contributed to the need for multiple adjustments after the fact. Of the five positions within the department five were vacated within a 12 month period. During and leading up to the closing of the FY 22/23 year, a complete turnover of staff occurred including all senior staff within the Finance Department. There were a number of journal entries that required a depth of historical knowledge to perform properly. Budgeted large transfers and project transfers complicated the process of closing projects and funds. All positions are currently filled. To reduce the need for as many audit adjustments, a new process was implemented during the FY 23/24. Payroll and invoices are being direct billed to the funds and projects to reduce the need for unnecessary transfers. This step will simplify the structure of funds. This standard accounting practice will enable staff to reconcile, evaluate, and accrue much more timely and accurately. Name of Contact Person: Aimee Beleu, Finance Director, (530) 872-6291, abeleu@townofparadise.com Projected Completion Date: 4/1/24

View Audit 320057

Finding 497338 (2023-002)

Material Weakness 2023

Rochester Area Joint Sewer Authority

PA

Reporting Material Weakness Matching / Level of Effort / Earmarking § 200.502 § 200.508

Recommendation: Procedures should be implemented to create a materially accurate Schedule of Expenditures of Federal and State award financial statement, which should include ascertaining between loan and grant expenditures, and understanding the process for reporting loan balances on the SEFSA. Vi...

Recommendation: Procedures should be implemented to create a materially accurate Schedule of Expenditures of Federal and State award financial statement, which should include ascertaining between loan and grant expenditures, and understanding the process for reporting loan balances on the SEFSA. Views of Responsible Officials and Planned Corrective Actions: In order to create a materially accurate Schedule of Expenditures of Federal and State award financial statement, the Authority will establish procedures to ascertain loan and grant expenditures, as well as taking into account the Uniform Guidance requirement for presenting loan balances on the SEFSA.

View Audit 320046

Finding 497334 (2023-001)

Significant Deficiency 2023

Savio House

CO

Allowable Costs / Cost Principles Cash Management Significant Deficiency § 200.303

Planned Corrective Action: Savio believes that our internal control system is effective in determining allowable costs charged to the grant. In addition to the reviews done by the Controller, there is an additional third party review to ensure all costs are allowable. We do believe that we could bet...

Planned Corrective Action: Savio believes that our internal control system is effective in determining allowable costs charged to the grant. In addition to the reviews done by the Controller, there is an additional third party review to ensure all costs are allowable. We do believe that we could better segregate the controls within the Organization to further improve the system of internal controls. We will modify our controls to require that all expenses along with the indirect rate and calculation will be reviewed and approved by the Development department rather than the controller to provide a better review process for appropriateness and support of costs before reimbursement, as recommended by the auditor. Since the Development department writes the grants they would have the best knowledge on what expenses qualify and verify support. This will be implemented immediately. Name of Contact Person: Eric Heppe, Controller, EHeppe@saviohouse.org Anticipated completion date: September 2024 invoicing process

View Audit 320032

Finding 497326 (2023-001)

Material Weakness 2023

City of New Albany

IN

Internal Control / Segregation of Duties Subrecipient Monitoring Allowable Costs / Cost Principles § 200.1 § 200.303

FINDING 2023-001 Finding Subject: COVID-19 - Coronavirus State and Local Fiscal Recovery Funds - Reporting Summary of Finding: The City submitted four P&E reports during the audit period; however, the controls in place were not effective to prevent, or detect and correct, errors. As a result, errors...

FINDING 2023-001 Finding Subject: COVID-19 - Coronavirus State and Local Fiscal Recovery Funds - Reporting Summary of Finding: The City submitted four P&E reports during the audit period; however, the controls in place were not effective to prevent, or detect and correct, errors. As a result, errors in reporting were identified. The current period and cumulative expenditures reported consisted of the amounts expended by the beneficiaries who were awarded funds from the City, rather than total amounts expended to the beneficiaries, resulting in current period expenditures and cumulative expenditures being incorrectly reported on all four reports as follows:  Quarterly Report: October 1, 2022 to December 31, 2022 Current period expenditures were overstated by $40,350. Cumulative expenditures were understated by $262,057.  Quarterly Report: January 1, 2023 to March 31, 2023 Current period expenditures were understated by $2,338,864. Cumulative expenditures were understated by $2,499,656.  Quarterly Report: April 1, 2023 to June 30, 2023 Current period expenditures were understated by $1,200,000. Cumulative expenditures were understated by $3,699,656.  Quarterly Report: July 1, 2023 to September 30, 2023 Current period expenditures were overstated by $2,126,306. Cumulative expenditures were understated by $1,573,349. Contact Person Responsible for Corrective Action: Linda Moeller Contact Phone Number and Email Address: 812-948-5333 and lmoeller@cityofnewalbany.com Views of Responsible Officials and Explanation and Reasons for Disagreement:  We concur with the finding.  However, the issue and non-compliance deals with the interpretation of the federal rules regarding the appropriate amounts to report and when to report them by subrecipients of the monies. INDIANA STATE BOARD OF ACCOUNTS 19 Office of the Controller  New Albany City Hall  142 E Main Street, Suite 314  New Albany, Indiana 47150 Telephone: 812-948-5333  www.cityofnewalbany.com City of New Albany, Indiana Linda Moeller City Controller  The non-compliance is not related to policies or controls not being effective to prevent, detect or correct errors. In fact, the reporting system initially implemented by the City and put in the federal reports provided the actual expenditures for those periods by recipients of the grants.  However, the City does agree that after full examination and review of the federal rules the initial full amount of funds provided to the subrecipients should have been reported in full versus the actual expenditures during the periods. Description of Corrective Action Plan:  Current period and cumulative expenditures reported will consist of the amounts advanced to subrecipients. Anticipated Completion Date:  The City has already made this correction in its most recent Quarterly Report April 1, 2024 to June 30, 2024.

View Audit 320010

Finding 497311 (2023-003)

Significant Deficiency 2023

Henry County

IN

Allowable Costs / Cost Principles Reporting Significant Deficiency § 200.303

FINDING 2023-003 Finding Subject: COVID-19 - Coronavirus State and Local Fiscal Recovery Funds - Reporting Summary of Finding: The County submitted one Project and Expenditure report during the audit period. The Chief Deputy County Auditor was responsible for preparing and submitting the Project and...

FINDING 2023-003 Finding Subject: COVID-19 - Coronavirus State and Local Fiscal Recovery Funds - Reporting Summary of Finding: The County submitted one Project and Expenditure report during the audit period. The Chief Deputy County Auditor was responsible for preparing and submitting the Project and Expenditure report and the County Auditor reviewed and approved the report prior to submission; however, there was no documentation that suggested that this review process was in place that could be provided. Contact Person Responsible for Corrective Action: Debra Walker Contact Phone Number and Email Address: 765-529-2800 dwalker@henrycounty.in.gov Views of Responsible Officials: We concur with the findings. Description of Corrective Action Plan: The County Auditor and Deputy Auditor will review the Project and Expenditure report together and sign the printed out copy of the report. Anticipated Completion Date: Immediately.

View Audit 319963

Finding 497274 (2023-003)

Material Weakness 2023

Northern Kentucky Convention and Visitors Bureau

KY

Subrecipient Monitoring Matching / Level of Effort / Earmarking Reporting § 200.334

The Bureau was unable to provide documentation that their annual report was submitted to the Kentucky Department of Tourism and as such, the report was unable to be tested. Mary Watkins and Julie Kirkpatrick will ensure that copies of all reports submitted to the Kentucky Department of Tourism, and ...

The Bureau was unable to provide documentation that their annual report was submitted to the Kentucky Department of Tourism and as such, the report was unable to be tested. Mary Watkins and Julie Kirkpatrick will ensure that copies of all reports submitted to the Kentucky Department of Tourism, and documentation of timely submission will be retained.

View Audit 319875

Finding 497246 (2023-007)

Significant Deficiency 2023

County of Kern

CA

Allowable Costs / Cost Principles Period of Performance Significant Deficiency § 200.303

Block Grants for Prevention and Treatment of Substance Abuse - Assistance Listing No. 93.959 Recommendation: We recommend the County conduct training with its various departments to instruct them on how to compile expenditures based on the accrual basis of accounting (when the benefits from the expe...

Block Grants for Prevention and Treatment of Substance Abuse - Assistance Listing No. 93.959 Recommendation: We recommend the County conduct training with its various departments to instruct them on how to compile expenditures based on the accrual basis of accounting (when the benefits from the expenditures were received). Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: Training on accrual basis of accounting is presented during year-end training. The Department will participate in trainings offered by the County regarding the accrual basis of accounting for expenditures and will ensure accruals are properly captured within the proper period. Names of the contact persons responsible for corrective action: Aimee Espinoza, Auditor- Controller and Tarrah Shockley, Division Chief. Planned completion date for corrective action plan: June 30, 20

View Audit 319826

Finding 497243 (2023-006)

Significant Deficiency 2023

County of Kern

CA

Allowable Costs / Cost Principles Period of Performance Significant Deficiency § 200.303

Block Grants for Community Mental Health Services - Assistance Listing No. 93.958 Recommendation: We recommend the County conduct training with its various departments to instruct them on how to compile expenditures based on the accrual basis of accounting (when the benefits from the expenditures we...

Block Grants for Community Mental Health Services - Assistance Listing No. 93.958 Recommendation: We recommend the County conduct training with its various departments to instruct them on how to compile expenditures based on the accrual basis of accounting (when the benefits from the expenditures were received). Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: Training on accrual basis of accounting is presented during year-end training. As accruals are only recorded in the Financial Management System (FMS) on an annual basis department will have to manually accrue expenditures when charging other departments for costs incurred. The Aging and Adult Services Department will participate in trainings offered by the County regarding the accrual basis of accounting for expenditures and will ensure sure accruals are properly captured in the proper period when charging costs to BHRS. Names of the contact persons responsible for corrective action: Aimee Espinoza, Auditor- Controller and Tarrah Shockley, Division Chief. Planned completion date for corrective action plan: June 30, 2024

View Audit 319826

Finding 497240 (2023-005)

Significant Deficiency 2023

County of Kern

CA

Questioned Costs Allowable Costs / Cost Principles Significant Deficiency § 200.303

COVID-19 Block Grants for Community Mental Health Services - Assistance Listing No. 93.958 Recommendation: We recommend the County review its process over the allocation of payroll expenditures, based on time worked, to determine what adjustments to its system need to be made. Explanation of disagre...

COVID-19 Block Grants for Community Mental Health Services - Assistance Listing No. 93.958 Recommendation: We recommend the County review its process over the allocation of payroll expenditures, based on time worked, to determine what adjustments to its system need to be made. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: The Aging and Adult Services Department will assess the payroll allocation process, and necessary adjustments will be made. Names of the contact persons responsible for corrective action: Aimee Espinoza, Auditor- Controller and Tarrah Shockley, Division Chief. Planned completion date for corrective action plan: June 30, 2024

View Audit 319826 Questioned Costs: $1

Finding 497236 (2023-003)

Material Weakness 2023

County of Kern

CA

Subrecipient Monitoring Allowable Costs / Cost Principles Material Weakness § 200.303

National Farmworker Jobs Program - Assistance Listing No. 17.264 Recommendation: We recommend the County implement policies and procedures to ensure that FFATA reporting occurs for all subawards of $30,000 or more for all federal awards and that the reporting be performed timely. Explanation of disa...

National Farmworker Jobs Program - Assistance Listing No. 17.264 Recommendation: We recommend the County implement policies and procedures to ensure that FFATA reporting occurs for all subawards of $30,000 or more for all federal awards and that the reporting be performed timely. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: All County departments receiving federal funding will be notified about this requirement. Names of the contact persons responsible for corrective action: Aimee Espinoza, Auditor- Controller and Tarrah Shockley, Division Chief. Planned completion date for corrective action plan: June 30, 2024

View Audit 319826

Finding 497228 (2023-002)

Material Weakness 2023

Oak Hill Union Local School District

OH

Matching / Level of Effort / Earmarking Special Tests & Provisions § 200.326

District will ensure compliance by prevailing wage documentation will be provided to the district with the original pay app request.

View Audit 319818

Finding 497033 (2023-002)

Material Weakness 2023

City of Plymouth

IN

Internal Control / Segregation of Duties Allowable Costs / Cost Principles Material Weakness § 200.1 § 200.303

FINDING: 2023-002 Finding Subject: COVID-19 - Coronavirus State and Local Fiscal Recovery Funds - Reporting Summary of Finding: The P&E report was prepared by one employee without an oversight or review process in place to ensure accuracy. The report submitted was not mathematically accurate o...

FINDING: 2023-002 Finding Subject: COVID-19 - Coronavirus State and Local Fiscal Recovery Funds - Reporting Summary of Finding: The P&E report was prepared by one employee without an oversight or review process in place to ensure accuracy. The report submitted was not mathematically accurate or complete. Per Resolution 2022-1028, approved on December 12, 2022, the City obligated funds for six separate projects totaling $2,257,927. However, the P&E report submitted on April 18, 2023 only included one project resulting in an understatement of total obligations of $1,807,927. Additionally for the one project submitted the key line items of “Current Period Expenditures”, “Total Cumulative Expenditures”, and “Current Period Obligations” as reported on the P&E report did not agree to the City’s financial ledger Contact Person Responsible for Corrective Action: Lynn M. Gorski, Clerk-Treasurer Contact Phone Number: 574-936-2124 Views of Responsible Official: We concur with the finding from SBOA. Description of Corrective Action Plan: There was very little training on how to enter information into the Treasury website for the 2022 year. When it was entered there was only one obligation in the amount of $68,609 even though Resolution No. 2022-1028 noted the intent on spend. Because of lack of training on entering the information it was understated. When the information was entered for the April 2024 report all obligations were entered. When the next report is processed, I will have another staff member verify what is entered prior to submission to the Treasury Department. Anticipated Completion Date: April 30, 2025 Lynn M. Gorski Title: Clerk-Treasurer Date: August 26, 2024

View Audit 319764

Finding 497026 (2023-002)

Significant Deficiency 2023

Henry J. Austin Health Center, Inc.

PA

Questioned Costs Allowable Costs / Cost Principles Cash Management § 200.302

The finding arose due to conditions created as a result of turnover experienced by the Center within the finance department, expense reimbursement requests were inadvertently completed incorrectly using incorrect allocation percentages and information. Additional preventative internal control proced...

The finding arose due to conditions created as a result of turnover experienced by the Center within the finance department, expense reimbursement requests were inadvertently completed incorrectly using incorrect allocation percentages and information. Additional preventative internal control procedures will be implemented, including an additional level of review of the reimbursement request prior to submission.

View Audit 319762 Questioned Costs: $1

Finding 496987 (2023-002)

Significant Deficiency 2023

National Farmers Union Foundation

DC

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

Views of Responsible Officials: Management understands the need to ensure all accounts are reconciled in advance of the audit. The adjustment to tie out opening net assets has been addressed and corrected, and going forward will be recorded and confirmed prior to audit except for adjustments for K-1...

Views of Responsible Officials: Management understands the need to ensure all accounts are reconciled in advance of the audit. The adjustment to tie out opening net assets has been addressed and corrected, and going forward will be recorded and confirmed prior to audit except for adjustments for K-1s received after the audit starts. For year-end investments balances, some K-1s are received during fieldwork. Since it is not feasible to prepare estimates of the K-1 amounts, the entries for the investment balance changes and corresponding adjustments for intercompany adjustments, management will prepare the entries as soon as K-1s are received and send to auditors. Since this is due to timing, not internal process, management respectfully requests that this process will not reflect negatively against the organization. For audit adjustments impacting the numbers on the Schedule of Federal Expenditures, the issues have been addressed and systems have been developed to ensure timely and accurate information. Management, including the Vice President of Finance and Business Development, and the Organization's contracted financials service providers have recorded these entries as of 7/9/2024.

View Audit 319739 Questioned Costs: $1

Finding 496983 (2023-003)

Material Weakness 2023

City of Hobart

IN

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

FINDING: 2023-003 Finding Subject: COVID 19 – Coronavirus State and Local Fiscal Recovery Funds - Reporting Summary of Finding: An effective Internal Control System, which would include segregation of duties, was not in place at the City in order to ensure compliance with requirement related to the ...

FINDING: 2023-003 Finding Subject: COVID 19 – Coronavirus State and Local Fiscal Recovery Funds - Reporting Summary of Finding: An effective Internal Control System, which would include segregation of duties, was not in place at the City in order to ensure compliance with requirement related to the grant agreement and the reporting compliance requirement. Project and Expenditure reports were to be completed annually for the federal program by the City. In 2023, one employee prepared and submitted the annual report without evidence of a review by a second individual. Contact Person Responsible for Corrective Action: Deborah A. Longer, Clerk-Treasurer Contact Phone Number and Email Address: (219) 942-1940 clerk-treasurer@cityofhobart.org Views of Responsible Official: We concur with the finding. Description of Corrective Action Plan: While the City concurs with the finding, the Clerk-Treasurer also distributed the prepared 2023 report via email to the Mayor and the Common Council members prior to submittal, requesting their review and/or comments. When no comments were offered within a reasonable time, the Clerk-Treasurer submitted the report in a timely fashion as required. Future reporting activities will be distributed to the Mayor and the Council in a similar way but will require some type of response as evidence of their review prior to submittal. Anticipated Completion Date: August 27, 2024 Signed: Deborah A. Longer Deborah A. Longer, Clerk-Treasurer Date: August 27, 2024

View Audit 319735

Finding 496941 (2023-003)

Material Weakness 2023

City of Michigan City

IN

Questioned Costs Allowable Costs / Cost Principles Matching / Level of Effort / Earmarking § 200.303 § 200.306 § 200.403 § 200.458

FINDING 2023-003 Finding Subject: COVID - 19: Coronavirus State and Local Fiscal Recovery Funds – Body Camera – Activities Allowed or Unallowed, Allowable Costs/Cost Principles, Period of Performance Summary of Finding: The City entered into a grant agreement on 03/03/2023 for the purchase of body c...

FINDING 2023-003 Finding Subject: COVID - 19: Coronavirus State and Local Fiscal Recovery Funds – Body Camera – Activities Allowed or Unallowed, Allowable Costs/Cost Principles, Period of Performance Summary of Finding: The City entered into a grant agreement on 03/03/2023 for the purchase of body cameras. The invoice for the body cameras was dated 10/28/2022, prior to approval from the state. The purchase was outside the period of performance. Contact Person Responsible for Corrective Action: Mary Lynn Wall Contact Phone Number and Email Address: 219-873-1404 Ext. 2006 mlwall@emichigancity.com Views of Responsible Officials: We concur with the finding Description of Corrective Action Plan: In order for the City to insure that internal controls are in place to prevent noncompliance with federal awards, the City Controller’s office will review and discuss with department personnel, all federal grant applications to ensure compliance with allowable costs and period of performance. Anticipated Completion Date: 08/26/2024

View Audit 319688 Questioned Costs: $1

Finding 496940 (2023-002)

Material Weakness 2023

City of Michigan City

IN

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

FINDING 2023-002 Finding Subject: COVID - 19: Coronavirus State and Local Fiscal Recovery Funds – Reporting – Internal Controls Summary of Finding: The City of Michigan City was not in compliance with effective internal controls related to submitting the P&E reports Contact Person Responsible for Co...

FINDING 2023-002 Finding Subject: COVID - 19: Coronavirus State and Local Fiscal Recovery Funds – Reporting – Internal Controls Summary of Finding: The City of Michigan City was not in compliance with effective internal controls related to submitting the P&E reports Contact Person Responsible for Corrective Action: Mary Lynn Wall Contact Phone Number and Email Address: 219-873-1404 mlwall@emichigancity.com Views of Responsible Officials: We concur with the finding Description of Corrective Action Plan: To bring the City into compliance with effective internal controls to ensure requirements related to the grant agreement and the reporting compliance requirements are satisfied, the City Controller will download from the Treasury website the project detail listing for the Deputy Controller to review and verify prior to submitting the report. Anticipated Completion Date: 08/26/2024

View Audit 319688

Corrective Action Plans

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