Corrective Action Plans

Finding 380762 (2023-002)

None 2023

Pittsburgh Institute of Mortuary Science, Inc.

PA

Questioned Costs Eligibility Student Financial Aid

FINDING 2023-002: OVERAWARDED FEDERAL DIRECT SUBSIDIZED LOAN A. COMMENTS ON FINDING AND RECOMMENDATION(S): PIMS AGREES WITH THE FINDINGS OF THE AUDITORS THAT STUDENT B2 WAS NOT PROPERLY PRORATED WHEN FEDERAL DIRECT LOANS WERE CALCULATED. B. ACTIONS TAKEN OR PLANNED: MOSTLY ALL STUDENTS THAT ATTEND P...

FINDING 2023-002: OVERAWARDED FEDERAL DIRECT SUBSIDIZED LOAN A. COMMENTS ON FINDING AND RECOMMENDATION(S): PIMS AGREES WITH THE FINDINGS OF THE AUDITORS THAT STUDENT B2 WAS NOT PROPERLY PRORATED WHEN FEDERAL DIRECT LOANS WERE CALCULATED. B. ACTIONS TAKEN OR PLANNED: MOSTLY ALL STUDENTS THAT ATTEND PIMS NEED TO BE PRORATED FOR THEIR LAST ACADEMIC YEAR. THIS STUDENT SHOULD HAVE BEEN PRORATED, PIMS WILL RETURN THE $2,709 THE STUDENT IS INELIGIBLE FOR. FA MANAGEMENT HAS BEGUN CONDUCTING QUARTERLY FILE REVIEWS WHERE END PROCESSING AND STUDENT PRORATION CALCULATIONS CAN CONTINUE TO BE MONITORED FOR COMPLIANCE.

View Audit 295472 Questioned Costs: $1

Finding 380761 (2023-001)

None 2023

Pittsburgh Institute of Mortuary Science, Inc.

PA

Questioned Costs Student Financial Aid Eligibility

FINDING 2023-001: INCORRECT PELL GRANTS A. COMMENTS ON FINDING AND RECOMMENDATION(S): PIMS AGREES WITH THE FINDINGS OF THE AUDITORS THAT STUDENT A1 RECEIVED THE INCORRECT AMOUNT OF PELL AND STUDENT B1 WAS INCORRECTLY ADJUSTED DURING THE R2T4 PROCESS. B. ACTIONS TAKEN OR PLANNED: PIMS HAS FOUND THAT ...

FINDING 2023-001: INCORRECT PELL GRANTS A. COMMENTS ON FINDING AND RECOMMENDATION(S): PIMS AGREES WITH THE FINDINGS OF THE AUDITORS THAT STUDENT A1 RECEIVED THE INCORRECT AMOUNT OF PELL AND STUDENT B1 WAS INCORRECTLY ADJUSTED DURING THE R2T4 PROCESS. B. ACTIONS TAKEN OR PLANNED: PIMS HAS FOUND THAT AN EXTRA LAYER OF REVIEW ON EACH PELL DISBURSEMENT ROSTER FROM FAME WILL ELIMINATE INCORRECT PAYMENTS. PIMS REPORTS THE NUMBER OF CREDITS AND ENROLLMENT STATUS TO FAME THEN FAME REQUESTS THE FUNDS BASED ON THIS INFORMATION THAT PIMS ELECTRONICALLY TRANSMITS. IN MOST CASES THE PAYMENT AND THE ENROLLMENT STATUS MATCH BUT FOR STUDENT A1 THAT IS NOT THE CASE. GOING FORWARD, AT THE TIME THE ROSTER IS PRODUCED THE FA OFFICE WILL VERIFY EACH PAYMENT BEFORE THE ROSTER GOES TO THE BUSINESS OFFICE. PIMS WILL ALSO RETURN THE $811 OF 21/22 PELL THAT STUDENT A1 WAS INELLIGIBLE FOR. PELL ADJUSTMENTS DURING THE R2T4 PROCESS WILL BE LOOKED AT BY BOTH THE FA PROCESSOR AND SUPERVISOR. AS WITH THE PELL MATCHING THE STUDENTS' ENROLLMENT WHILE ATTENDING THE INSTITUTE'S FA OFFICE UNDERSTANDS THAT THE SAME CONCEPT IS APPLIED WHEN A STUDENT WITHDRAWAL AND A PELL RE-CALCULATION IS REQUIRED. PIMS WILL RE-REQUEST ON BEHALF OF STUDENT B1 $431 IN PELL GRANT FUNDS.

View Audit 295472 Questioned Costs: $1

Finding 380756 (2023-001)

Significant Deficiency 2023

University of Indianapolis

IN

Questioned Costs Student Financial Aid Reporting

Finding 2023-001 To whom it may concern, UNIVERSITY of INDIANAPOLIS,,, UNIVERSITY OF INDIANAPOLIS'S RESPONSE TO AUDIT FINDING February 15, 2024 Management acknowledges the error in the Federal Work Study calculation. A refund was processed to the GS site on February 15th , 2024, in the amount of $90...

Finding 2023-001 To whom it may concern, UNIVERSITY of INDIANAPOLIS,,, UNIVERSITY OF INDIANAPOLIS'S RESPONSE TO AUDIT FINDING February 15, 2024 Management acknowledges the error in the Federal Work Study calculation. A refund was processed to the GS site on February 15th , 2024, in the amount of $90,184. Management further notes that it has removed the waiver from its calculation files. This corrective action will be monitored by the University's Controller and will be fully implemented during the 2023-2024 fiscal year. Jodi Purtee, AVP & Controller

View Audit 295435 Questioned Costs: $1

Finding 380755 (2023-002)

Material Weakness 2023

Huntsville School District

AR

Equipment & Real Property Management Internal Control / Segregation of Duties Special Tests & Provisions § 200.326

Finding2023-002: Criteria or specific requirement: Criteria or specific requirement (including

View Audit 295432

Finding 380755 (2023-002)

Material Weakness 2023

Huntsville School District

AR

Equipment & Real Property Management Internal Control / Segregation of Duties Special Tests & Provisions § 200.326

statutory, regulatory, or other citation): 29 CFR 5.5 (Wage Rate Requirements) requires all contractors and subcontractors performing construction contracts in excess of $2,000, financed by federal assistance funds, to pay laborers and mechanics employed by the contractor or subcontractor not less t...

statutory, regulatory, or other citation): 29 CFR 5.5 (Wage Rate Requirements) requires all contractors and subcontractors performing construction contracts in excess of $2,000, financed by federal assistance funds, to pay laborers and mechanics employed by the contractor or subcontractor not less than the prevailing wage rates established by the Department of Labor for the locality of the project. Non-federal entities shall include in the applicable construction contracts a provision that the contractor or subcontractor comply with those requirements.

View Audit 295432

Finding 380755 (2023-002)

Material Weakness 2023

Huntsville School District

AR

Equipment & Real Property Management Internal Control / Segregation of Duties Special Tests & Provisions § 200.326

Such requirements include the submission of weekly certified payrolls for each week in which any contract work is performed, to the non-federal entities. Additionally, 2 CFR 200.326 and Ark. Code Ann. § 18-44-503 require a nonfederal entity to obtain a performance bond for the public construction co...

Such requirements include the submission of weekly certified payrolls for each week in which any contract work is performed, to the non-federal entities. Additionally, 2 CFR 200.326 and Ark. Code Ann. § 18-44-503 require a nonfederal entity to obtain a performance bond for the public construction contract.

View Audit 295432

Finding 380755 (2023-002)

Material Weakness 2023

Huntsville School District

AR

Equipment & Real Property Management Internal Control / Segregation of Duties Special Tests & Provisions § 200.326

Condition: The District paid $1,064,887 for the installation of an HVAC system from the Education Stabilization Fund without obtaining a written contract that included the prevailing wage rate provision, and weekly certified payrolls were not submitted to the District. Additionally, the District did...

Condition: The District paid $1,064,887 for the installation of an HVAC system from the Education Stabilization Fund without obtaining a written contract that included the prevailing wage rate provision, and weekly certified payrolls were not submitted to the District. Additionally, the District did not publish a notice of intention to receive bids or obtain a performance bond from the contractor, as required by Ark. Code Ann. § 22-9-203 and Ark. Code Ann. § 18-44-503, respectively.

View Audit 295432

Finding 380755 (2023-002)

Material Weakness 2023

Huntsville School District

AR

Equipment & Real Property Management Internal Control / Segregation of Duties Special Tests & Provisions § 200.326

Cause: Lack of internal controls and management oversight.

View Audit 295432

Finding 380755 (2023-002)

Material Weakness 2023

Huntsville School District

AR

Equipment & Real Property Management Internal Control / Segregation of Duties Special Tests & Provisions § 200.326

Effect: The District did not comply with Wage Rate Requirements or Bonding Requirements.

View Audit 295432

Finding 380755 (2023-002)

Material Weakness 2023

Huntsville School District

AR

Equipment & Real Property Management Internal Control / Segregation of Duties Special Tests & Provisions § 200.326

Context: A total of two payments/contracts for facility repairs and improvements were paid from the Education Stabilization Fund. Both were examined.

View Audit 295432

Finding 380755 (2023-002)

Material Weakness 2023

Huntsville School District

AR

Equipment & Real Property Management Internal Control / Segregation of Duties Special Tests & Provisions § 200.326

Response: The district supplied the bidding groups with all the federal guidelines and requirements. However, we did not request or receive documentation regarding the adherence to those requirements.

View Audit 295432

Finding 380755 (2023-002)

Material Weakness 2023

Huntsville School District

AR

Equipment & Real Property Management Internal Control / Segregation of Duties Special Tests & Provisions § 200.326

Name and Contact of Person(s) Responsible: Jonathan Warren (jwarren@1hsd.org 479-783-2011)

View Audit 295432

Finding 380755 (2023-002)

Material Weakness 2023

Huntsville School District

AR

Equipment & Real Property Management Internal Control / Segregation of Duties Special Tests & Provisions § 200.326

Corrective Action: The District will contact the Arkansas Division of Elementary and Secondary Education (DESE) for guidance regarding the matter and implement proper controls

View Audit 295432

Finding 380755 (2023-002)

Material Weakness 2023

Huntsville School District

AR

Equipment & Real Property Management Internal Control / Segregation of Duties Special Tests & Provisions § 200.326

over program expenditures.

View Audit 295432

Finding 380755 (2023-002)

Material Weakness 2023

Huntsville School District

AR

Equipment & Real Property Management Internal Control / Segregation of Duties Special Tests & Provisions § 200.326

Anticipated Completion Date: June 30, 2024

View Audit 295432

Finding 380753 (2023-001)

Material Weakness 2023

Millcreek Community Hospital

PA

Material Weakness Reporting Matching / Level of Effort / Earmarking § 200.303

Condition During the performance of our procedures, we noted that the Hospital did not complete the PRF reporting in accordance with the U.S. Department of Health and Human Services guidance. We noted that Hospital had errors in the underlying support to the lost revenue calculation, resulting in lo...

Condition During the performance of our procedures, we noted that the Hospital did not complete the PRF reporting in accordance with the U.S. Department of Health and Human Services guidance. We noted that Hospital had errors in the underlying support to the lost revenue calculation, resulting in lost revenues being overstated $246,892. The entity reported lost revenues amounting to $3,973,310 on distributions totaling $2,485,265. The Hospital also had excess lost revenues from prior periods available to be used through June 30, 2023 amounting to $11,388,637. Corrective Action Plan Corrective Action Planned: The Organization will undertake a review of its internal control policies and procedures surrounding the reporting on federal grant activities and add additional layers of review where necessary to ensure future reporting is accurate. Name(s) of Contact Person(s) Responsible for Corrective Action: Richard Lusk, CFO Anticipated Completion Date: The anticipated completion date is June 30, 2024

View Audit 295425

Finding 380702 (2023-008)

Significant Deficiency 2023

New American Association of Massachusetts, Inc.

MA

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

The newly hired CFO will update the policies and procedures and oversee the Finance Department and will develop procedures to ensure there are proper segregation of duties over key cycles, taking into consideration the size and complexity of the Organization. These procedures will strengthen the exp...

The newly hired CFO will update the policies and procedures and oversee the Finance Department and will develop procedures to ensure there are proper segregation of duties over key cycles, taking into consideration the size and complexity of the Organization. These procedures will strengthen the expense and accounts payable processes to ensure compliance with the provisions of 2 CFR § 200.302.

View Audit 295394

Finding 380666 (2023-006)

Material Weakness 2023

New American Association of Massachusetts, Inc.

MA

Subrecipient Monitoring Matching / Level of Effort / Earmarking Material Weakness § 200.331 § 200.332

The newly hired CFO has Federal Grant Compliance experience and will implement a process for identification and oversight of subrecipients in line with Uniform Guidance 2 CFR § 200.331. The Organization will ensure there are written policies to comply with this provision and will monitor its subreci...

The newly hired CFO has Federal Grant Compliance experience and will implement a process for identification and oversight of subrecipients in line with Uniform Guidance 2 CFR § 200.331. The Organization will ensure there are written policies to comply with this provision and will monitor its subrecipients on a quarterly basis and will obtain written agreements by and between the Organization and its subrecipients.

View Audit 295394

Finding 380648 (2023-005)

Material Weakness 2023

New American Association of Massachusetts, Inc.

MA

Allowable Costs / Cost Principles Cash Management Matching / Level of Effort / Earmarking § 200.303

As a result of the growth in the Organization and corresponding growth in the number and complexity of its state and federal contracts, the Organization has hired an experienced CFO to ensure the Organization remains in compliance with federal and state laws and regulations related to its contracts....

As a result of the growth in the Organization and corresponding growth in the number and complexity of its state and federal contracts, the Organization has hired an experienced CFO to ensure the Organization remains in compliance with federal and state laws and regulations related to its contracts. The newly hired CFO will seek to strengthen internal controls by updating written internal control and compliance policies and procedures and will ensure that the finance department adheres to the policies in place. The updated policies and procedures will develop controls to prevent the any further overbillings from occurring. These updated controls and policies, in part, will include developing a plan to track monthly revenues against expenses for its cost reimbursement contracts and to ensure that actual indirect costs billed for do not exceed actual indirect/overhead costs which could result in overbillings. The updated internal control and compliance policies and procedures will be in place to comply with 2 CFR Part 200 Subpart D § 200.303 and to comply with cost principles set forth in 2 CFR Part 200 Subpart E.

View Audit 295394

Finding 380645 (2023-001)

Significant Deficiency 2023

The Transit System, Inc.

TX

Questioned Costs Cash Management Matching / Level of Effort / Earmarking § 200.303

The System has contacted the Texas Department of Transportation requesting instructions on refunding the amounts. In addition, they will implement new procedures and controls surrounding the calculation of their request for reimbursement and the handling of insurance proceeds to prevent this from h...

The System has contacted the Texas Department of Transportation requesting instructions on refunding the amounts. In addition, they will implement new procedures and controls surrounding the calculation of their request for reimbursement and the handling of insurance proceeds to prevent this from happening moving forward.

View Audit 295392 Questioned Costs: $1

Finding 380603 (2023-002)

Material Weakness 2023

Survivor Empowerment Center

IL

Allowable Costs / Cost Principles Internal Control / Segregation of Duties Matching / Level of Effort / Earmarking

Corrective Action Plan Finding No. 2023-002 – Salaries and Benefits Not Supported by Proper Time and Effort Documentation Federal Program: Crime Victim Assistance Project No: 220001 and 2020-V2-GX-0017 CFDA No: 16.575 Passed Through: Illinois Coalition Against Domestic Violence and Illinois Coalit...

Corrective Action Plan Finding No. 2023-002 – Salaries and Benefits Not Supported by Proper Time and Effort Documentation Federal Program: Crime Victim Assistance Project No: 220001 and 2020-V2-GX-0017 CFDA No: 16.575 Passed Through: Illinois Coalition Against Domestic Violence and Illinois Coalition Against Sexual Assault Federal Agency: U.S. Department of Justice Condition: During our testwork, we noted the following: • One employee’s timesheets did not reflect the correct allocation percentages determined by the Organization, • Five employees did not have a time and effort certification submitted during the 4th quarter of 2023, and • Two employee timesheets were not signed by the employee. Plan: The Survivor Empowerment Center, Inc. is currently in the process of training a new HR/Payroll Specialist and putting together a step-by-step checklist for completing payroll to ensure all steps are taken. This checklist includes a review of payroll by the Assistant Director. Anticipated Date of Completion: By March 13, 2024 – the next payroll. Name of Contact Person: Susan Hicks, Assistant Director

View Audit 295367

Finding 380602 (2023-002)

Significant Deficiency 2023

Washakie County

WY

Procurement, Suspension & Debarment Matching / Level of Effort / Earmarking § 200.302 § 200.305 § 200.318 § 200.319 § 200.320

Finding 2023-002 Contact Person: Lily Rakness Parra, County Clerk Corrective Action Planned: Washakie County agrees with the finding of 2023-002. Washakie County is currently working on implementing a more thorough tracking procedure in order to document all of the significant processes for our fede...

Finding 2023-002 Contact Person: Lily Rakness Parra, County Clerk Corrective Action Planned: Washakie County agrees with the finding of 2023-002. Washakie County is currently working on implementing a more thorough tracking procedure in order to document all of the significant processes for our federal awards. Also, in order to further track funds disbursed, a sams.gov account has been set up and is currently utilized in order to determine if an entity is eligible for disbursement of federal funds. An amendment to implement sams.gov utilization will be produced in order to add it to our current Procurement Policy.

View Audit 295357

Finding 380599 (2023-009)

Material Weakness 2023

Madison-Grant United School Corporation

IN

Internal Control / Segregation of Duties Subrecipient Monitoring Material Weakness § 200.302 § 200.303 § 200.328 § 200.329

FINDING 2023-009 Finding Subject: Education Stabilization Fund - Reporting Summary of Finding: Material Weakness, Other Matters, Qualified Opinion The School Corporation had not properly designed or implemented a system of internal controls, which would include appropriate segregation of duties, tha...

FINDING 2023-009 Finding Subject: Education Stabilization Fund - Reporting Summary of Finding: Material Weakness, Other Matters, Qualified Opinion The School Corporation had not properly designed or implemented a system of internal controls, which would include appropriate segregation of duties, that would likely be effective in preventing, or detecting and correcting, noncompliance. The School Corporation was required to submit an annual data report to the Indiana Department of Education (IDOE) via JotForm, a form/report builder. Data to be submitted included, but was not limited to, current period expenditures, prior period expenditures, and expenditures per activity. During the audit period the School Corporation submitted two ESSER I reports, two ESSER II reports and two ESSER III reports, for a total of six reports. The annual data reports were prepared by the Chief Financial Officer and reviewed by a second knowledgeable individual; however, this process did not allow for the prevention, or detection and correction of errors prior to submission. Due to the lack of effective internal controls, one of the six annual data reports was not supported by the School Corporation’s records. For the ESSER 1, Year 2 report, which covered the period of October 1, 2020 to June 30, 2021, the School Corporation’s records did not support the data in the report. The lack of controls and noncompliance were isolated to the ESSER I, Year 2 report. Contact Person Responsible for Corrective Action: Bengamin Mann Contact Phone Number and Email Address: 765-536-0008 bmann@mgusc.k12.in.us Views of Responsible Officials: We concur with the finding Description of Corrective Action Plan: Supporting documentation of data reported will be retained with each report filed. Anticipated Completion Date: February 2024

View Audit 295346

Finding 380594 (2023-008)

Material Weakness 2023

Madison-Grant United School Corporation

IN

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

FINDING 2023-008 Finding Subject: Education Stabilization Fund - Activities Allowed or Unallowed Summary of Finding: Material Weakness The Elementary and Secondary School Emergency Relief (ESSER) Fund provided funding to States and school districts to combat the effects of the coronavirus, help safe...

FINDING 2023-008 Finding Subject: Education Stabilization Fund - Activities Allowed or Unallowed Summary of Finding: Material Weakness The Elementary and Secondary School Emergency Relief (ESSER) Fund provided funding to States and school districts to combat the effects of the coronavirus, help safely reopen and sustain the safe operation of schools, and to address the impact of the coronavirus pandemic on the nation’s students. States were required to subgrant a portion of their ESSER allocation to local educational agencies (LEA). Prior to LEAs receiving their respective subgrants, LEAs were required to complete an application for ARP ESSER funding, which was submitted to the Indiana Department of Education (IDOE), the pass-through entity for approval. The application included a district level budget identifying how the LEA intended to spend program funds. The School Corporation did not have internal controls in place over payroll disbursements charged to the ESSER grant funds. Payroll disbursements were paid without evidence that the detailed report of payroll disbursements was reviewed and approved by another person not involved in the original payroll process. Contact Person Responsible for Corrective Action: Bengamin Mann Contact Phone Number and Email Address: 765-536-0008 bmann@mgusc.k12.in.us Views of Responsible Officials: We concur with the finding Description of Corrective Action Plan: Quarterly grant meetings will be held between the CFO, Deputy Treasurer, and Grant writer. This will ensure compliance requirements continue to be met. The CFO now reviews the Org Charge report and signs off before the payroll batch being released to the bank. This report is generated by Payroll and Benefits. Also, this entire report is now included with board claims for board approval rather than a final summary sheet. Anticipated Completion Date: February 2024

View Audit 295346

Finding 380582 (2023-006)

Material Weakness 2023

Madison-Grant United School Corporation

IN

Internal Control / Segregation of Duties Material Weakness Period of Performance § 200.303

FINDING 2023-006 Finding Subject: Special Education Cluster (IDEA) – Activities Allowed or Unallowed, Period of Performance Summary of Finding: Material Weakness The Individuals with Disabilities Act (IDEA) Special Education – Grants to States program provides grant to states, and through them to Lo...

FINDING 2023-006 Finding Subject: Special Education Cluster (IDEA) – Activities Allowed or Unallowed, Period of Performance Summary of Finding: Material Weakness The Individuals with Disabilities Act (IDEA) Special Education – Grants to States program provides grant to states, and through them to Local Educational Agencies (i.e. the School Corporation), to assist them in providing special education and related services to eligible children with disabilities ages 3-21. IDEA’s Special Education – Preschool Grants program provides grants to states, and through them to LEAs to assist them in providing special education and related services to children with disabilities ages three to five and, at the state’s discretion, to twoyear- old children with disabilities who will turn three during the school year. The School Corporation had not properly designed or implemented a system of internal controls that would likely be effective in preventing, or detecting and correcting, noncompliance. Activities Allowed or Unallowed: The School Corporation did not have internal controls in place over payroll disbursements charged to the special education grants. Payroll disbursements were paid without evidence that the detailed report of payroll disbursements was reviewed and approved by another person not involved in the original payroll process. Period of Performance: A payroll journal report was generated by the Payroll/Benefits Coordinator and reviewed and approved by the Chief Financial Officer or the Deputy Treasurer to ensure costs charged to the special education grants were within the period of performance. However, there was no documented evidence of the review. Contact Person Responsible for Corrective Action: Bengamin Mann Contact Phone Number and Email Address: 765-536-0008 bmann@mgusc.k12.in.us Views of Responsible Officials: We concur with the finding. Description of Corrective Action Plan: Quarterly grant meetings will be held between the CFO, Deputy Treasurer, and Grant writer. This will ensure compliance requirements continue to be met. The CFO now reviews the Org Charge report and signs off before the payroll batch being released to the bank. This report is generated by Payroll and Benefits. Also, this entire report is now included with board claims for board approval rather than a final summary sheet. Anticipated Completion Date: February 2024

View Audit 295346

Corrective Action Plans

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