Corrective Action Plans

Finding 478614 (2022-005)

Significant Deficiency 2022

IN

Cash Management Internal Control / Segregation of Duties Reporting § 200.303

FINDING 2022-005 Information on the federal program: Subject: SSBG – Internal Controls Federal Agency: Department of Health and Human Services Federal Program: Social Services Block Grant Assistance Listing Number: 93.667 Compliance Requirement: Cash Management Audit Finding: Significant Deficienc...

FINDING 2022-005 Information on the federal program: Subject: SSBG – Internal Controls Federal Agency: Department of Health and Human Services Federal Program: Social Services Block Grant Assistance Listing Number: 93.667 Compliance Requirement: Cash Management Audit Finding: Significant Deficiency Condition: An effective internal control system was not in place to ensure compliance with requirements related to the grant agreement and the Cash Management compliance requirements. Context: We noted that for three claims in a sample of three, there was no formal review/approval of the FSSA Contract Claim Reimbursement form outside of who is preparing the form. The CFO prepared and submitted the claims without a secondary review. Views of Responsible Officials: We concur with the finding. Description of Corrective Action Plan: CICOA created an additional position in our Fiscal department to help add capacity and address various segregation of duties concerns. On April 3, 2023, CICOA hired a Senior Director of Financial Reporting to fill this new position. The CFO has done/will continue various training with the Senior Director and other staff to transfer knowledge and responsibilities currently held by the CFO, including future preparation and submission of the FSSA Contract Claim Reimbursement documents. The CFO will serve as either the primary or secondary reviewer of such Claim Reimbursements after preparation by other Fiscal staff. Key item to note: this finding was made as part of the audit for the fiscal year ended June 30, 2022, and the hiring of the Senior Director was not made until late in the fiscal year ended June 30, 2023/early fiscal year 2024. Due to this timing, necessary changes did not exist until fiscal year 2024. Responsible Party and Timeline for Completion: To be completed by CFO (with assistance from Senior Director of Financial Reporting and other Fiscal staff), beginning no later than Claims Reimbursements submitted for services provided starting in fiscal year 2024.

View Audit 315238

Finding 478610 (2022-004)

Significant Deficiency 2022

Cicoa Aging & In-Home Solutions

IN

Cash Management Internal Control / Segregation of Duties Reporting § 200.303

FINDING 2022-004 Information on the federal program: Subject: Aging Cluster – Internal Controls Federal Agency: Department of Health and Human Services Federal Program: Aging Cluster Assistance Listing Number: 93.044, 93.045, 93.053 Compliance Requirement: Cash Management Audit Finding: Significan...

FINDING 2022-004 Information on the federal program: Subject: Aging Cluster – Internal Controls Federal Agency: Department of Health and Human Services Federal Program: Aging Cluster Assistance Listing Number: 93.044, 93.045, 93.053 Compliance Requirement: Cash Management Audit Finding: Significant Deficiency Condition: An effective internal control system was not in place to ensure compliance with requirements related to the grant agreement and the Cash Management compliance requirements. Context: We noted that for four claims in a sample of four, there was no formal review/approval of the FSSA Contract Claim Reimbursement form outside of who is preparing the form. The CFO prepared and submitted the claims without a secondary review. Views of Responsible Officials: We concur with the finding. Description of Corrective Action Plan: CICOA created an additional position in our Fiscal department to help add capacity and address various segregation of duties concerns. On April 3, 2023, CICOA hired a Senior Director of Financial Reporting to fill this new position. The CFO has done/will continue various training with the Senior Director and other staff to transfer knowledge and responsibilities currently held by the CFO, including future preparation and submission of the FSSA Contract Claim Reimbursement documents. The CFO will serve as either the primary or secondary reviewer of such Claim Reimbursements after preparation by other Fiscal staff. Key item to note: this finding was made as part of the audit for the fiscal year ended June 30, 2022, and the above corrective actions were not made until late in the fiscal year ended June 30, 2023/early fiscal year 2024. Due to this timing, necessary changes did not exist until fiscal year 2024. Responsible Party and Timeline for Completion: to be completed by CFO (with assistance from Senior Director of Financial Reporting and other Fiscal staff), beginning no later than Claims Reimbursements submitted for services provided starting in fiscal year 2024.

View Audit 315238

Finding 478574 (2022-005)

Material Weakness 2022

Carter County Missouri

MO

Matching / Level of Effort / Earmarking Subrecipient Monitoring

2022-005 Reporting, Matching, and Earmarking U.S. Department of Homeland Security Recommendation: We recommend the County implement internal controls to ensure that required reporting, which includes matching and earmarking, is completed timely as required. Explanation of disagreement with au...

2022-005 Reporting, Matching, and Earmarking U.S. Department of Homeland Security Recommendation: We recommend the County implement internal controls to ensure that required reporting, which includes matching and earmarking, is completed timely as required. Explanation of disagreement with audit finding: There are no disagreement with the audit finding. Action planned/taken in response to finding: The County will identify all federal awards that reporting is required. Once programs subject to reporting are identified, the County will then determine what reports are required to be prepared and submitted. The County will also monitor and document the County’s progress for matching and earmarking requirements. Name(s) of the contact person(s) responsible for corrective action: Debi Reynolds Planned completion date for corrective action plan: June 30, 2024

View Audit 315206

Finding 478407 (2022-003)

Material Weakness 2022

Neighborhood Legal Services Michigan

MI

Questioned Costs Period of Performance Subrecipient Monitoring

Following the completion of the 2021 Single Audit, we adjusted the Organization's Accounting Policies & Procedure Manual to include detailed information outlined in HUD's electronic Line of Credit Control System (eLOCCS) inclusive of the roles and responsibilities of the system's Users and Approving...

Following the completion of the 2021 Single Audit, we adjusted the Organization's Accounting Policies & Procedure Manual to include detailed information outlined in HUD's electronic Line of Credit Control System (eLOCCS) inclusive of the roles and responsibilities of the system's Users and Approving Official. Specifically, Accounting Department Leadership (i.e., the Chief Financial Officer), designated accounting personnel (i.e., Accountants), and/or agency Executive Leadership (i.e., CEO/Executive Director), must be cognizant of a grant's period of performance.

View Audit 315097 Questioned Costs: $1

Finding 478365 (2022-011)

Material Weakness 2022

Brockton School District

MT

Subrecipient Monitoring Matching / Level of Effort / Earmarking Internal Control / Segregation of Duties § 200.326

FINDING 2021/2022-011: Wage Rate Compliance Response: The District will implement internal controls to ensure compliance requirements of all federal funds received. Contractors will be required to submit certified payroll records to demonstrate they are complying with prevailing wages if the proje...

FINDING 2021/2022-011: Wage Rate Compliance Response: The District will implement internal controls to ensure compliance requirements of all federal funds received. Contractors will be required to submit certified payroll records to demonstrate they are complying with prevailing wages if the project is paid with federal funds.

View Audit 315034

Finding 478009 (2022-005)

Significant Deficiency 2022

City of Lynn

MA

School Nutrition Programs Internal Control / Segregation of Duties Allowable Costs / Cost Principles

Audit Finding Reference: 2022-005 Limit Federal Cash on Hand (Significant Deficiency) Planned Corrective Action: The district is aware of this finding and will be taking steps to address this in the coming months. The City needs to decrease the cash balance in the school lunch fund so that it fall...

Audit Finding Reference: 2022-005 Limit Federal Cash on Hand (Significant Deficiency) Planned Corrective Action: The district is aware of this finding and will be taking steps to address this in the coming months. The City needs to decrease the cash balance in the school lunch fund so that it falls within acceptable Federal guidelines. Name of Contact Person and Completion Date Kevin McHugh, City of Lynn School Business Manager December 31, 2024

View Audit 314741

Finding 457913 (2022-001)

Significant Deficiency 2022

Rowan-Salisbury Board of Education

NC

Cash Management Significant Deficiency Matching / Level of Effort / Earmarking § 200.305

Management Response / Corrective Action: Rowan-Salisbury School hired a new payroll director in May of 2022 who identified the cause for the above noted discrepancy, noting the team was overbudgeting taxes on staff personnel payments due to employees who opt in for the ?pre-tax contributions.? When ...

Management Response / Corrective Action: Rowan-Salisbury School hired a new payroll director in May of 2022 who identified the cause for the above noted discrepancy, noting the team was overbudgeting taxes on staff personnel payments due to employees who opt in for the ?pre-tax contributions.? When an employee enrolls in the ?pre-tax contributions,? the budgeted amount for Social Security/Medicaid is adjusted so that the rate no longer meets the 7.65% calculated amounts for all employees. As a result, the team has gone through each month?s drawdown and determined that $7,793.78 was over budgeted and we are correcting that in our February 2023 drawdown by reducing the drawdown by $7,793.78. We have also adjusted our budget calculation so that we are properly accounting for those employees who opted for ?pre-tax contributions? going forward.

View Audit 314403

Finding 454484 (2022-001)

None 2022

City of Staunton, Virginia

VA

Equipment & Real Property Management Matching / Level of Effort / Earmarking Procurement, Suspension & Debarment

December 19, 2022The City of Staunton respectfully submits the following corrective action plan for the year ended June 30, 2022.Name and address of public accounting firm:Brown Edwards & Company LLP 1909 Financial Drive Harrisonburg VA 22801Audit Period: July 1 , 2021 - June 30, 2022The findings fr...

December 19, 2022The City of Staunton respectfully submits the following corrective action plan for the year ended June 30, 2022.Name and address of public accounting firm:Brown Edwards & Company LLP 1909 Financial Drive Harrisonburg VA 22801Audit Period: July 1 , 2021 - June 30, 2022The findings from the June 30, 2022 Schedule of Findings and Questioned Costs (the "Schedule") are discussed below. The findings are numbered consistently with the number assigned in the schedule.FINDINGS AND QUESTIONED COSTS - MAJOR FEDERAL AWARD PROGRAM AUDIT2022-001: Emergency Connectivity Funds - Assistance Listing #32.009 Condition:The inventory provided was incomplete , vague, or otherwise lacked some or all of the required data. The inventory also made it difficult to determine if ECF devices were allotted to multiple individuals, or if devices funded by other sources were included and not appropriately removed from the list s.Criteria:Emergency Connectivity Fund (" ECF") Program participants are required to maintain asset and service inventories of the devices and services purchased with ECF Program support. For each connected device or services provided, the inventory must include, but is not limited to: the device type, make/model, serial number, full name of person the equipment was provided to and dates of service the device was loaned out and returned. Additionally, those inventories must identify ECF funded equipment in the event of sale or disposal to remain in compliance with the program requirement s.Cause:Controls or reviews do not appear to be in place to ensure equipment inventory contains all the necessary data, is up to date, and accurate.Effect:Inaccurate and incomplete inventory lists.Recommendation:We recommend that controls be put in place to ensure that the School IT department is following proper grant requirements. Furthermore equipment lists should differentiate between federally funded devices with restrictions on disposals, along with applicable program in formation , from devices funded by other sources. Finally , the equipment lists should be updated, with old equipment no longer in service being removed and current equipment showing the time and date of assignment to students or faculty.Corrective Action:We concur. School IT staff have been reminded of the importance of maintaining accurate equipment records that differentiate between federally funded devices, which may have restrictions on disposals reviewed, and other devices funded by non-federal sources. Staff has reviewed and updated the equipment inventory listings to reflect correct assignment to location, student and/or staff and have implemented procedures to ensure that going forward, the equipment listings are updated in a timely manner.If the Federal Audit Clearinghouse has questions regarding this plan, please call Jessie L. Moyers , Chief Financial Officer for the City of Staunton at 540-332-3820.Sincerely,Jessie L. Moyers, CPAChief financial Officer City of Staunton VA

View Audit 313906

Finding 454051 (2022-003)

None 2022

San Gabriel Unified School District

CA

Questioned Costs Equipment & Real Property Management Procurement, Suspension & Debarment § 200.311 § 200.313 § 200.326 § 200.439

District subsequently sought and obtained CDE approval for the expenditures identified in finding 2022-003.District has initiated a procedure where any requisitions for purchases utilizing Federal funds are routed through the Director of state and federal programs prior to being approved. The direct...

District subsequently sought and obtained CDE approval for the expenditures identified in finding 2022-003.District has initiated a procedure where any requisitions for purchases utilizing Federal funds are routed through the Director of state and federal programs prior to being approved. The director of state and federal programs, prior to approving the purchase requisition, will obtain approval from the CDE. All contracts utilizing federal funds will include language related to Federal wage rate requirements. The supervisor of Purchasing will be tasked with ensuring the contract language is present in agreements for services utilizing Federal funds.

View Audit 313833 Questioned Costs: $1

Finding 453820 (2022-001)

None 2022

Remington College

TX

Questioned Costs Student Financial Aid Matching / Level of Effort / Earmarking

A. Comments on Findings and Recommendations: We agree with the finding and recommendation. B. Actions Taken or Planned: The Institution has reviewed the details of the finding and determined the error to be an isolated instance due to human error. The Inst...

A. Comments on Findings and Recommendations: We agree with the finding and recommendation. B. Actions Taken or Planned: The Institution has reviewed the details of the finding and determined the error to be an isolated instance due to human error. The Institution returned $268 to the Federal Pell Grant Program on behalf of student #AR8. Student AR8 failed a class/module for the payment period in a non-standard program. On the Return of Title IV (R2T4) calculation, the payment period ending date should have been extended by an additional class/module. File Review will be added to the final review of all R2T4 calculations prepared for non-standard term programs. If the academic transcript includes repeat classes/modules, payment periods used in the calculation will be reviewed for accuracy.

View Audit 313766 Questioned Costs: $1

Finding 453787 (2022-002)

Significant Deficiency 2022

City of Portsmouth

OH

Procurement, Suspension & Debarment Eligibility Reporting § 200.303

2022-002 Coronavirus State and Local Recovery Funds (CSLRF) ? Assistance Listing No. 21.027Recommendation: We recommend that the city review and evaluate procedures to ensure that the procedures over safeguarding assets, maintenance of records, and reconciliation of activity are consistently perform...

2022-002 Coronavirus State and Local Recovery Funds (CSLRF) ? Assistance Listing No. 21.027Recommendation: We recommend that the city review and evaluate procedures to ensure that the procedures over safeguarding assets, maintenance of records, and reconciliation of activity are consistently performed.Explanation of disagreement with audit finding: There is no disagreement with the audit finding.Action taken in response to finding: Management concurs with the recommendation. The accounts will be reconciled prior to the program ending on a regular cycle during the program to ensure appropriate accounts and the accuracy of the supporting documentation is provided going forward.Described action planned or taken: The Standard Operating Procedures that provide additional detail will be followed to document the process of reconciling the account on a timely basis. Online applications programs are being created by the department of technology to assist in the program documentation gathering in order to ensure applicants can provide all necessary support for the program in a secure environment.Name(s) of the contact person(s) responsible for corrective action: Kyera Pope, Accounting Administrator, Gloria Taylor, Interim Chief Financial OfficerPlanned completion date for corrective action plan: 7/1/2022.If the Auditor of Public Accounts has questions regarding this plan, please call Mimi Terry, Interim City Manager.

View Audit 313753

Finding 453786 (2022-001)

Significant Deficiency 2022

City of Portsmouth

OH

Questioned Costs Allowable Costs / Cost Principles Significant Deficiency § 200.303

Auditor of Public AccountsCity of Portsmouth, Virginia respectfully submits the following corrective action plan for the year ended June 30, 2022.Audit period: Fiscal Year 22, (July 1, 2021-June 30, 2022)The findings from the schedule of findings and questioned costs are discussed below. The finding...

Auditor of Public AccountsCity of Portsmouth, Virginia respectfully submits the following corrective action plan for the year ended June 30, 2022.Audit period: Fiscal Year 22, (July 1, 2021-June 30, 2022)The findings from the schedule of findings and questioned costs are discussed below. The findings are numbered consistently with the numbers assigned in the schedule.FINDINGS?FEDERAL AWARD PROGRAMS AUDITS2022-001 Coronavirus State and Local Recovery Funds (CSLRF) ? Assistance Listing No. 21.027Recommendation: We recommend that the City ensure that federal funds are used to support allowable costs and activities, and to determine when federal requirements may be more restrictive than the State or grantor? requirements.Explanation of disagreement with audit finding: There is no disagreement with the audit finding.Action taken in response to finding: Management concurs with the recommendation. The program categories will be reviewed prior to the program beginning to ensure appropriate adherence to the Federal vs State guidelines and the accuracy of the supporting documentation is provided going forward. Describe action planned or taken: The Standard Operating Procedures that provide additional detail will be followed to document the process of reviewing the guidelines. Program documentation gathering in advance to ensure program adherence for the program federal guidelines. Name(s) of the contact person(s) responsible for corrective action: Kyera Pope, Accounting Administrator, Gloria Taylor, Interim Chief Financial Officer Planned completion date for corrective action plan: 3/1/2023

View Audit 313753 Questioned Costs: $1

Finding 452472 (2022-001)

Significant Deficiency 2022

Eastern Virginia Medical School

VA

Student Financial Aid Reporting Matching / Level of Effort / Earmarking

Timely Submission of Enrollment DataEVMS has implemented a new student information system to assist with managing student data and enrollment reporting. The EVMS Information Technology developed a new report that will be automatically generated every Monday to show any status changes that occurred i...

Timely Submission of Enrollment DataEVMS has implemented a new student information system to assist with managing student data and enrollment reporting. The EVMS Information Technology developed a new report that will be automatically generated every Monday to show any status changes that occurred in the previous week. This report will be emailed every Monday to several areas, including the Registrar?s Office and Financial Services. The Registrar?s Office will reconcile the enrollment report that is sent to the National Student Clearinghouse every week to ensure the changes are being properly updated in the report. Enrollment reports will continue to be processed on a monthly basis to the National Student Clearinghouse which will be then sent to the National Student Loan Data System (NSLDS).Financial Services will serve as a secondary review after the fact for all students who have had a status change to go on a leave of absence, withdraw from EVMS, return from a leave of absence, or graduate off cycle. Financial Services will check NSLDS around 30 days after the change has occurred to ensure that the last enrollment report information is accurate and up to date. If there are any discrepancies with the status or last date of attendance, Financial Services will reach out to the Registrar and the Director of Financial Aid. The Director of Financial Aid will update the student?s record directly in NSLDS and the Registrar will ensure that the update is on the next version of the enrollment report so that it does not override the manual update.EVMS Financial Aid and Financial Services drafted a new policy to address the requirements and timing related to notifications of a status change for students. Once approved, the policy will be distributed to all departments impacted and training will be scheduled with responsible parties.The contact person for this finding is David Golay, Registrar.

View Audit 313465

Finding 452441 (2022-103)

Significant Deficiency 2022

Maricopa County

AZ

Questioned Costs Allowable Costs / Cost Principles Eligibility § 200.303

Assistance Listings number and program name: 21.023 COVID-19 Emergency Rental Assistance ProgramDepartment: Maricopa County Human ServicesContact Person(s): Nicole Forbes, Finance Manager, Human Services Department.Anticipated completion date: June 30, 2023Concur: The Maricopa County Human Services ...

Assistance Listings number and program name: 21.023 COVID-19 Emergency Rental Assistance ProgramDepartment: Maricopa County Human ServicesContact Person(s): Nicole Forbes, Finance Manager, Human Services Department.Anticipated completion date: June 30, 2023Concur: The Maricopa County Human Services Department (HSD) concurs that the payments noted by the Office of the Auditor General had suspicious activity. The payments noted represent less than .06% of Emergency Rental Assistance (ERA) financial transactions that the County processed in fiscal year 2022. In FY 2022, the HSD provided nearly $75.8 million in rental assistance, which equated to 9,940 financial transactions and 63,265 months of rental assistance for households living in Maricopa County. To help mitigate control discrepancies, the County has continued to strengthen internal controls from the inception of the ERA program. In July-September 2021, HSD implemented review of property information on the Maricopa County Assessor?s website for certain rental assistance applications on a case-by-case basis. However, HSD did not document those reviews or implement the review program-wide until September 2022. In September 2022, HSD updated internal controls through a revision of the ERA policy and process manual to require property information to be reviewed and also documented. In addition, in November 2022, the County worked with our banking institution to implement additional bank verification controls to more accurately and timely verify vendor banking information to further ensure payments were being sent to the approved landlord/property/manager/vendor. The County will continue with these internal controls to ensure accurate payments are processed.

View Audit 313445 Questioned Costs: $1

Finding 452437 (2022-024)

Significant Deficiency 2022

State of New Jersey

NJ

Questioned Costs Period of Performance Subrecipient Monitoring § 200.303 § 200.308 § 200.309 § 200.403

FINDING # 2022-024No finding in prior yearThe New Jersey Department of Labor and Workforce Development (DLWD) has a policy in place for processing tuition reimbursements that are performed by the Department?s Accounts Payable unit. The policy was reviewed by the Office of Finance & Accounting (F&A)...

FINDING # 2022-024No finding in prior yearThe New Jersey Department of Labor and Workforce Development (DLWD) has a policy in place for processing tuition reimbursements that are performed by the Department?s Accounts Payable unit. The policy was reviewed by the Office of Finance & Accounting (F&A) and internal control procedures were enhanced to ensure that fiscal cutoff measures were appropriately addressed. Tuition reimbursement procedures include having the requests forwarded to the responsible Supervising Analyst in the Appropriations/Accounting unit for final review and approval to ensure the proper fiscal period is charged. The correcting transactions were completed during the Single Audit timeframe to remediate the findings by charging and reimbursing the proper fiscal year accounts. The DLWD will continue its efforts to ensure compliance and that all charges applied to Federal awards are within the specified period of performance going forward.COMPLETION DATE/CONTACT PERSON December 31, 2023Ruslana Nagorniak(609) 984-7678Ruslana.Nagorniak@dol.nj.gov

View Audit 313443 Questioned Costs: $1

Finding 452430 (2022-023)

Significant Deficiency 2022

State of New Jersey

NJ

Eligibility Special Tests & Provisions Significant Deficiency § 200.303

FINDING # 2022-0232021-0202020-0072019-0162018-0082017-003The Department of Human Services? Division of Medical Assistance and Health Services (DMAHS) has unsuccessfully attempted to gain access to data files that would provide current licensure data to our contracted vendor from the State?s licensi...

FINDING # 2022-0232021-0202020-0072019-0162018-0082017-003The Department of Human Services? Division of Medical Assistance and Health Services (DMAHS) has unsuccessfully attempted to gain access to data files that would provide current licensure data to our contracted vendor from the State?s licensing agencies. Continuing efforts to outreach providers by sending a license expiration letter to providers 45 days prior to the license expiration date have also been less than successful. Access concerns have discouraged the State?s efforts to deny claims because of expired licenses. It is important to note that the State?s expectations are that providers are properly licensed, but have failed to communicate this information to our contracted vendor. Licensure information for all enrolling providers and those subject to revalidation are also screened in accordance with ACA requirements.DMAHS efforts to achieve compliance with regard to provider licensing in coordination with the State?s contracted vendor remains ongoing and the importance of having license information on file for the providers being enrolled will again be reiterated and reinforced through communications with the contracted vendor and their staff. The vendor has also been approved to continue taking screenshots of providers? licensing information from licensing websites in lieu of the provider sending in paper copies. These ongoing efforts and actions will help to ensure that licensing information is captured and maintained for each provider and the State?s compliance with documenting provider licensing continues to improve and move towards full compliance in future periods.COMPLETION DATE/CONTACT PERSON Fiscal Year 2023Carlton Carter(609) 588-7159Carlton.Carter@dhs.nj.gov

View Audit 313443

Finding 452429 (2022-022)

Significant Deficiency 2022

State of New Jersey

NJ

Special Tests & Provisions Significant Deficiency Matching / Level of Effort / Earmarking § 200.303

FINDING # 2022-0222021-019Based on this audit finding recommendation, Section 7.25.1(B) of the MCO Contract has been updated effective January 2023. The update removes language requiring audits in accordance with generally accepted accounting principles and generally accepted auditing standards and...

FINDING # 2022-0222021-019Based on this audit finding recommendation, Section 7.25.1(B) of the MCO Contract has been updated effective January 2023. The update removes language requiring audits in accordance with generally accepted accounting principles and generally accepted auditing standards and specifies that an AUP report is acceptable per guidance provided under Medicaid and CHIP Managed Care Final Rule (CMS-2390-F) Frequently Asked Question number Q10.COMPLETION DATE/CONTACT PERSON January 2023Robert Durborow609-775-7298Robert.Durborow@dhs.nj.gov

View Audit 313443

Finding 452428 (2022-021)

Significant Deficiency 2022

State of New Jersey

NJ

Questioned Costs Period of Performance Subrecipient Monitoring § 200.303 § 200.308 § 200.309 § 200.403

FINDING # 2022-021No finding in prior yearThe Department of Children and Families (DCF) will review and enhance its procedures and controls to ensure that expenditures charged to the program are incurred within each grant award?s specified period of performance.Further, as the federal SSBG grant awa...

FINDING # 2022-021No finding in prior yearThe Department of Children and Families (DCF) will review and enhance its procedures and controls to ensure that expenditures charged to the program are incurred within each grant award?s specified period of performance.Further, as the federal SSBG grant award cited has a period of performance that remains open through September 2023, DCF has adjusted the four transactions that were posted incorrectly to another available funding source and ensured that all transactions presently recorded are now in compliance and within the specified period of performance.COMPLETION DATE/CONTACT PERSON Fiscal Year 2024Steven M. Dodson(609) 888-7555Steven.Dodson@dcf.nj.gov

View Audit 313443 Questioned Costs: $1

Finding 452421 (2022-019)

Significant Deficiency 2022

State of New Jersey

NJ

Allowable Costs / Cost Principles Reporting Significant Deficiency § 200.303

FINDING # 2022-019No finding in prior yearAll performance and special reports noted in the audit finding must be approved by the Applied Public Policy Research Institute for Study and Evaluation (APPRISE - USDHHS Consultants) before they are submitted to USDHHS. The final reports noted as exceptions...

FINDING # 2022-019No finding in prior yearAll performance and special reports noted in the audit finding must be approved by the Applied Public Policy Research Institute for Study and Evaluation (APPRISE - USDHHS Consultants) before they are submitted to USDHHS. The final reports noted as exceptions were not submitted on time due to pandemic related complications, staff retirements and communication issues with APPRISE. As recommended, the DCA has reviewed current reporting procedures and Program staff will be assigned the responsibility to prepare all reports, work with APPRISE to obtain required approvals, and submit the all required reports on a timely basis. Reporting due dates and deadlines will be documented to ensure that initial reports are produced timely. The timeframe needed to coordinate with the APPRISE consultants for reviews and updates to the reports will also be built into the process so that final reports are submitted to USDHHS by the due date. All reporting procedures will be documented and distributed to LIHEAP program staff. COMPLETION DATE/CONTACT PERSON June 30, 2023Fidel Ekhelar(609) 815-3905Fidel.Ekhelar@dca.nj.gov

View Audit 313443

Finding 452420 (2022-018)

Significant Deficiency 2022

State of New Jersey

NJ

Cash Management Significant Deficiency Matching / Level of Effort / Earmarking § 200.302 § 200.303

FINDING # 2022-018No finding in prior yearThe DCA staff responsible for the LIHEAP cash management function retired prior to this audit period without a proper transition of these tasks and there was also a delay in refilling the position. As recommended, the DCA has reviewed current procedures and...

FINDING # 2022-018No finding in prior yearThe DCA staff responsible for the LIHEAP cash management function retired prior to this audit period without a proper transition of these tasks and there was also a delay in refilling the position. As recommended, the DCA has reviewed current procedures and controls regarding cash drawdown approvals and has developed a Policy Memo that details the Payment Management System (PMS) drawdown procedures going forward. For each request made, a Contract Administrator will produce a Business Object report for all transactions to be included in the drawdown and will send the report to the Program staff for review and approval that the amounts contained in the report are correct. Once the Program staff review is complete, the approved Business Object report will be forwarded with a cover email to the Division Fiscal Unit staff responsible for drawing down the funds in PMS for final processing.COMPLETION DATE/CONTACT PERSON March 27, 2023Fidel Ekhelar(609) 815-3905Fidel.Ekhelar@dca.nj.gov

View Audit 313443

Finding 452415 (2022-016)

Material Weakness 2022

State of New Jersey

NJ

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

FINDING # 2022-016No finding in prior yearDue to the COVID-19 pandemic and the resulting remote teleworking period that was in place at DOH during the FY 2022 audit period, some payment documents were approved remotely without physical documents in hand, and the payment documentation for the 17 of 6...

FINDING # 2022-016No finding in prior yearDue to the COVID-19 pandemic and the resulting remote teleworking period that was in place at DOH during the FY 2022 audit period, some payment documents were approved remotely without physical documents in hand, and the payment documentation for the 17 of 60 ELC general disbursement transactions examined were either not delivered to the office to be filed yet or have been delivered but misfiled. DOH Central Accounts Payable will review and improve its current procedures and controls to ensure all physical payment documents are reviewed, approved, and filed correctly under the current hybrid remote working conditions in place now since the pandemic ceased.COMPLETION DATE/CONTACT PERSON April 11, 2023Michael Palasciano(609) 376-8518Michael.Palasciano@doh.nj.gov

View Audit 313443

Finding 452414 (2022-015)

Material Weakness 2022

State of New Jersey

NJ

Matching / Level of Effort / Earmarking Subrecipient Monitoring Material Weakness § 200.303

FINDING # 2022-0152021-017With the Corrective Action Plan (CAP) previously developed as a result of the prior year 2021 audit finding, the Department?s Grants Unit with coordination from ELC program fiscal staff added a new function to the SAGE system that pulls all subaward data for all of ELC usin...

FINDING # 2022-0152021-017With the Corrective Action Plan (CAP) previously developed as a result of the prior year 2021 audit finding, the Department?s Grants Unit with coordination from ELC program fiscal staff added a new function to the SAGE system that pulls all subaward data for all of ELC using its assigned ALN number 93.323. This system change was implemented in September 2022 that allows SAGE to pull data by CFDA number and enables the ELC fiscal staff to access all ELC subawards. ELC fiscal staff also has a reminder set to report at the end of each month, to enter FFATA information into FSRS, and to upload each report to SharePoint ELC Document Library at the end of each month.As per the prior year CAP created in September 2022, FFATA information for ELC subawards began being entered into FSRS on September 1, 2022.COMPLETION DATE/CONTACT PERSON September 2022Secil Onat(609) 913-5308Secil.Onat@doh.nj.gov

View Audit 313443

Finding 452399 (2022-009)

Material Weakness 2022

State of New Jersey

NJ

Subrecipient Monitoring Allowable Costs / Cost Principles Material Weakness § 200.303

FINDING # 2022-009No finding in prior yearThe Department of Community Affairs (DCA) has internal controls and procedures in place to ensure that required subawards are reported timely to FSRS in accordance with FFATA reporting requirements. The Homeowner Assistance Fund award received by DCA was uni...

FINDING # 2022-009No finding in prior yearThe Department of Community Affairs (DCA) has internal controls and procedures in place to ensure that required subawards are reported timely to FSRS in accordance with FFATA reporting requirements. The Homeowner Assistance Fund award received by DCA was unique in that it was planned and fully reallocated via Memorandum of Understanding (MOU) agreement to a DCA affiliate organization to administer on the State?s behalf. As a result, the DCA did not initially believe this single reallocation transaction was subject to FFATA reporting requirements. The Accountability Officer at the affiliate organization will be involved should another program and contractual arrangement of this type occur and will ensure that the FSRS reporting is done timely. No further subaward transactions are expected to be processed by DCA as the full allocation was disbursed to our affiliate organization upon receipt of the award and execution of the MOU.COMPLETION DATE/CONTACT PERSON Fiscal Years 2023-2024John Alexy(609) 913.4385John.Alexy@dca.nj.gov

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Finding 452398 (2022-008)

Material Weakness 2022

State of New Jersey

NJ

Reporting Matching / Level of Effort / Earmarking § 200.303

FINDING # 2022-008No finding in prior yearU.S. Treasury?s COVID-19 Emergency Rental Assistance Program (ERA) was established in 2021 to support housing stability throughout the pandemic by providing assistance payments for renters facing eviction. The Department of Community Affairs (DCA) is a dire...

FINDING # 2022-008No finding in prior yearU.S. Treasury?s COVID-19 Emergency Rental Assistance Program (ERA) was established in 2021 to support housing stability throughout the pandemic by providing assistance payments for renters facing eviction. The Department of Community Affairs (DCA) is a direct recipient of ERA funding for use in preventing evictions for over 70,000 families throughout the State of New Jersey.Since the rollout of the new ERA program back in 2021, the reporting requirements and guidance provided by U.S. Treasury to ERA recipients evolved with numerous changes and updates posted that also required DCA to change and update systems over time. As the programs continued to evolve so did DCA?s reporting process. U.S. Treasury initially required monthly reporting starting in April 2021, through which ERA recipients provided U.S. Treasury with very high-level counts of the numbers of households receiving assistance and the amounts of ERA funds distributed. The monthly reporting requirement was then discontinued after the June 30, 2022 submission and thereafter, U.S. Treasury shifted the ERA Reporting guidance to be focused primarily on the quarterly reporting requirements and also amended those reporting requirements going forward.When preparing monthly and quarterly reports, DCA?s data source used has always been the most reliable one at the time the report was due in order to ensure accuracy of information reported to U.S. Treasury. As previously stated, DCA?s systems evolved as needed in order to keep up with the constant changes in reporting requirements for the ERA program.? At the inception of the program, reporting was done from the primary Podio system that obligated and requested payments.? DCA then worked to build the necessary reports from the MRI system that generated ERA payments in order to trace payments back to checks issued ? representing distributions incurred.? Most recently DCA has been working to reconcile MRI with the State?s NJCFS accounting system to further validate the MRI data. Over time variances have been identified that affect reporting such as void and uncashed check actions.DCA recognizes the need to ensure supporting documentation used to prepare quarterly and other required reports for Treasury is captured and retained for audit purposes. DCA continues to build?a three-way reconciliation between the three primary systems to document explainable variances among the systems, such as timing differences, voids, returned items, etc. DCA has implemented a corrective action plan to enhance the availability of supporting documentation for ERA Treasury reporting.Corrective Action Plan:A. ERA Monthly reports are no longer required by Treasury. No further action is needed.B. ERA Quarterly Reports and Final ReportsI. On a monthly basis, Podio, MRI and Treasury data will be reconciled with variances identified (typically voids and uncashed checks).II. The Quarterly report files will be generated for retention, and an explanatory memo will accompany it. The memo will include the following:Quarterly Reporting Explanatory Memo:Contents:1. Source of Data used to generate the reports.a. If the source changed from the prior quarter, then an explanation will be provided.2. Date the source data was pulled.a. Listed by source if multiple sources are being used.3. Changes in approach.a. Any change in the approach used to prepare the reports will be documented, including internal changes and those issued by US Treasury.b. If Treasury issues guidance that changes reporting requirements, then such guidance will be included as an attachment to the memo.4. Recommendation by the Program Director, or his/her delegate, to proceed with submitting the Report.5. If an extension was requested, the memo will be updated to include the reason and justification for the extension.6. Submission Confirmation. Documented confirmation by DCA, or its delegate, that the quarterly report was submitted.7. At times, Treasury makes changes to the portal that are not communicated ahead of time. Any change or issues with the submission will be documented.8. DCA will download a copy of the final submission file from DCA?s portal.9. The memo, submission, .csv files, and final PDF file from treasury?s portal will be saved to a secure folder.?COMPLETION DATE/CONTACT PERSON June 30, 2023Elena Gaines(609) 913-4468Elena.Gaines@dca.nj.gov

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Finding 452395 (2022-007)

Material Weakness 2022

State of New Jersey

NJ

Subrecipient Monitoring Material Weakness Reporting § 200.303

FINDING # 2022-007No finding in prior yearIn recent years, the DLWD has transitioned from a manual contract process to a web-based system (i.e., SAGE and IGX systems) and has also experienced changes in personnel responsible for the contracting process. Although progress has been made with getting ...

FINDING # 2022-007No finding in prior yearIn recent years, the DLWD has transitioned from a manual contract process to a web-based system (i.e., SAGE and IGX systems) and has also experienced changes in personnel responsible for the contracting process. Although progress has been made with getting the FFATA Reporting Unit access to these automated systems, the DLWD will continue to enhance the communication between the offices that prepare and approve the contracts/agreements and the FFATA Reporting Unit. DLWD will also develop procedures to ensure that timely and accurate information is provided to the FFATA Reporting Unit and that group will also be included in the grant approval process so the unit is notified timely.COMPLETION DATE/CONTACT PERSON December 31, 2023Ahmanish Robinson(609) 984-4356Ahmanish.Robinson@dol.nj.gov

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