Corrective Action Plans

Finding 418206 (2022-009)

Significant Deficiency 2022

WA

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

Recommendation: The auditors recommend the University further educate and train those involved in the Financial Aid department regarding the Eligibility rules surrounding Federal awards, specifically regarding types of and scenarios using estimated financial assistance. They also recommend the Unive...

Recommendation: The auditors recommend the University further educate and train those involved in the Financial Aid department regarding the Eligibility rules surrounding Federal awards, specifically regarding types of and scenarios using estimated financial assistance. They also recommend the University revise the inputs within the PowerFAIDS system so that the control established to prevent (and subsequently detect) overawards is appropriately considering all scholarships and institutional grants as estimated financial assistance, regardless of need-based or not. Lastly, as a monitoring control, the auditors recommend an overaward report showing both Federal and non-Federal overawards be developed and be run and reviewed at a set frequency by the Director.Planned Corrective Action: Heritage University is to give individuals working in the financial aid office more information and training about the eligibility requirements for federal awards, particularly with regard to the several forms and potential uses of anticipated financial aid. Additionally, the University is to update the PowerFAIDS system's inputs so that all institutional grants and scholarships, regardless of whether they are need-based or not, are adequately taken into account by the control mechanism created to avoid (and consequently detect) overawards. As a monitoring measure, the Director of Financial Aid will create an overaward report that lists both Federal and non-Federal overawards and runs it on a regular basis.Name of Responsible Party:1. Dianne Fernandez, Director of Financial Aid2. Thomas Richter, VP of Administration/CFOAnticipated Completion Date: June 30, 2023

View Audit 312179 Questioned Costs: $1

Finding 417685 (2022-006)

Significant Deficiency 2022

The Center for Victims of Torture

MN

Cash Management Internal Control / Segregation of Duties Significant Deficiency § 200.305

Federal Agency Name: Department of State ? Bureau of Population, Refugees, and MigrationProgram Name: Oversees Refugee Assistance Programs for AfricaCFDA #19.517Federal Agency Name: Agency for International DevelopmentDepartment of StateProgram Name: USAID Foreign Assistance for Programs OverseasCFD...

Federal Agency Name: Department of State ? Bureau of Population, Refugees, and MigrationProgram Name: Oversees Refugee Assistance Programs for AfricaCFDA #19.517Federal Agency Name: Agency for International DevelopmentDepartment of StateProgram Name: USAID Foreign Assistance for Programs OverseasCFDA #98.001Finding Summary: CVT does not have an internal control designed to ensure advance payments are placed in an interest-bearing account.Responsible Individuals: James Behnke, CFO and Mary Kinder, ControllerCorrective Action Plan: Management will complete an extensive review over cash management policies to make sure requirements under the CFR section are met.Anticipated Completion Date: June 2023

View Audit 312164

Finding 412048 (2022-001)

Significant Deficiency 2022

El Camino Community College District

CA

Student Financial Aid Eligibility Significant Deficiency

2022 ? 001: Student Financial Aid Cluster - Student Eligibility and Awarding: Exit Counseling ?Program Number 84.268Recommendation: We recommend the college review its policies and procedures around disbursingexit counseling information to students to ensure students are receiving proper counseling ...

2022 ? 001: Student Financial Aid Cluster - Student Eligibility and Awarding: Exit Counseling ?Program Number 84.268Recommendation: We recommend the college review its policies and procedures around disbursingexit counseling information to students to ensure students are receiving proper counseling and ensureentrance counseling is documented before loans disbursements are made.Explanation of disagreement with audit finding: There is no disagreement with the audit finding.Action taken in response to finding: The Financial Aid Office recognized that the exit loan counselingrule was not being met prior to the commencement of the 2021-2022 audit. The following action planwas already taking shape during the annual audit of 2021-2022 to ensure compliance rule would bemet for the 2022-2023 aid year.Process: Use SIS Colleague system to run query to identify current loan borrowers at beginning andend of term to identify those who have ceased half-time enrollment. Send communication via email andphysical letter notification to ensure student receive important information about loan repaymentresponsibilities, including Department of Education links and contact information.Procedure: Created documentation with step by step procedures for assigned staff to run query toidentify students, request exit loan counseling communication, and run batch posting of communication.Communication: Loan borrowers will receive an email on Day 1 run, a second email on Day 14 run, anda paper letter on Day 30 run.Staff Training: Staff assigned to the Loan program have been trained to run process by ourSystems/Programmer. Financial Aid Staff have been provided information about policy and proceduresto assist students who may contact our office for assistance after receiving exit loan counselingcommunication.Quality Assurance: Two additional staff members have been assigned to help with the Loan program.Name(s) of the contact person(s) responsible for corrective action: Chau Dao - Director ofFinancial AidPlanned completion date for corrective action plan: November 2022.

View Audit 312129

Finding 412043 (2022-003)

Significant Deficiency 2022

El Camino Community College District

CA

Student Financial Aid Matching / Level of Effort / Earmarking Internal Control / Segregation of Duties

2022 ? 003: Student Financial Aid Cluster: Enrollment Reporting ? VariousRecommendation: Evaluate the current processes and possible backup controls to ensure errors arecaught in a timely manner.Explanation of disagreement with audit finding: There is no disagreement with the audit finding.Action ta...

2022 ? 003: Student Financial Aid Cluster: Enrollment Reporting ? VariousRecommendation: Evaluate the current processes and possible backup controls to ensure errors arecaught in a timely manner.Explanation of disagreement with audit finding: There is no disagreement with the audit finding.Action taken in response to finding: El Camino College will review the Enrollment VerificationProcess to ensure it is capturing all student enrollments and reporting them properly to NationalStudent Clearinghouse. The Departments involved Information Technology, Admissions & Recordsand Financial Aid will review how the data is collected from the college?s student information system(Ellucian Colleague) and the submissions to the National Student Clearinghouse and The NationalStudent Loan Data System to ensure the records are correct and submitted in a timely fashion.Name(s) of the contact person(s) responsible for corrective action: Lillian Justice, RegistrarPlanned completion date for corrective action plan: Immediate review of the data collection processwith the Information Technology Department and Financial Aid to ensure it is capturing all currentlyenrolled students. This will be an ongoing review beginning February 2023 to ensure we are capturingthe correct data.

View Audit 312129

Finding 412042 (2022-002)

Significant Deficiency 2022

El Camino Community College District

CA

Student Financial Aid Significant Deficiency Matching / Level of Effort / Earmarking

2022 ? 002: Student Financial Aid Cluster - Return to Title V Exit Counseling ? Program NumberVariousRecommendation: We recommend that the Colleges improve the existing procedures and controls toensure compliance with the aforementioned criteria. We also recommend an additional level of reviewis add...

2022 ? 002: Student Financial Aid Cluster - Return to Title V Exit Counseling ? Program NumberVariousRecommendation: We recommend that the Colleges improve the existing procedures and controls toensure compliance with the aforementioned criteria. We also recommend an additional level of reviewis added in the process to ensure completed Return to Title IV calculations are properly completed.Action taken in response to finding: The Financial Aid office is implementing the following steps toensure all R2T4 rules are met.Process: Create new report to monitor return of unearned aid to ED within 45 days of determination.Training: Staff involved with R2T4 processing will be provided time to undergo annual training by ED orNASFAA to ensure understanding of rules and regulations. Trainings by ED and NASFAA includepractice case studies to ensure correct application of R2T4 regulations.Quality Assurance: Two additional staff members have been assigned to help with R2T4 processing.One member to assist with the review of R2T4 calculations with the second staff member to help withthe return of aid on the accounting side. Also added to our R2T4 procedures, is management review ofR2T4 calculations per term.Name(s) of the contact person(s) responsible for corrective action: Chau Dao - Director ofFinancial AidPlanned completion date for corrective action plan: December 2023.

View Audit 312129

Finding 412041 (2022-002)

Material Weakness 2022

City of Scottsburg

IN

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

FINDING 2022-002Contact Person Responsible for Corrective Action: Janetta C HardyContact Phone Number: 812-752-4343 X222Views of Responsible Official:I concur with the finding.Description of Corrective Action Plan:In April of 2022 the City of Scottsburg?s annual reporting of COVID 19 ? State and Loc...

FINDING 2022-002Contact Person Responsible for Corrective Action: Janetta C HardyContact Phone Number: 812-752-4343 X222Views of Responsible Official:I concur with the finding.Description of Corrective Action Plan:In April of 2022 the City of Scottsburg?s annual reporting of COVID 19 ? State and Local Fiscal RecoveryFunds for 2021 provided the Common Council?s allocated expenditures for the reporting period instead ofactual expenditures for the reporting period. This error was corrected in the 2023 reporting for April 1,2022 ? Mar 31, 2023 expenditures. However the cumulative obligations and the current periodobligations were again reported as the total grant award. This will be corrected in the April 2024reporting.In regards to this finding, as clerk treasurer I reviewed the report created by Tish Richey and submittedwith inaccurate numbers. I qualify this under human error, commonly known as a mistake. In the future, Iwill do my best to not make a mistake in reporting and retain the initialed documentation for what issubmitted. Lastly, this was the first year for federal reporting of these funds and the instructions wereambiguous at best.Anticipated Completion Date: April 2024

View Audit 312128

Finding 411727 (2022-008)

Material Weakness 2022

Ohio Institute of Allied Health, Inc.

IL

Student Financial Aid Matching / Level of Effort / Earmarking

Finding 2022-08 Return to Titel IV - Post withdrawal disbursement- Direct Loans - see corrective action plan submitted with the audit report.

View Audit 312103

Finding 411725 (2022-004)

Material Weakness 2022

Ohio Institute of Allied Health, Inc.

IL

Student Financial Aid Eligibility Matching / Level of Effort / Earmarking

Finding 2022-04 Late Notification to NSLDS - see corrective action plan submitted with the audit report.

View Audit 312103

Finding 411724 (2022-002)

Material Weakness 2022

Ohio Institute of Allied Health, Inc.

IL

Student Financial Aid Matching / Level of Effort / Earmarking

Finding 2022-02 Direct Loan exit counseling - see corrective action plan submitted with the audit report.

View Audit 312103

Finding 411722 (2022-004)

Material Weakness 2022

City of New Castle

IN

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

FINDING 2022-004Contact Person Responsible for Corrective Action: Brenda Grider, Clerk TreasurerContact Phone Number: 765-521-6803Views of Responsible Official: We concur with this findingDescription of Corrective Action Plan:An internal control for the segregation of duties has been implemented rel...

FINDING 2022-004Contact Person Responsible for Corrective Action: Brenda Grider, Clerk TreasurerContact Phone Number: 765-521-6803Views of Responsible Official: We concur with this findingDescription of Corrective Action Plan:An internal control for the segregation of duties has been implemented related to grant reporting.Finance and Council who oversees the ARP funds receives a spreadsheet of all the expenditures andearmarks with balances that match and fund at the end of the month.Anticipated Completion Date: Immediately

View Audit 312102

Finding 410371 (2022-003)

Significant Deficiency 2022

Alamo Area Resource Center, Inc.

TX

Subrecipient Monitoring Matching / Level of Effort / Earmarking Internal Control / Segregation of Duties § 200.303

Finding 2022-003EligibilityManagement Response: Management agrees with auditor recommendations and a plan is in place to increase the effectiveness of reviews to ensure the completeness of client certification requirements.Action Plan: 1) Identify the departments that had eligibility errors. 2) Prov...

Finding 2022-003EligibilityManagement Response: Management agrees with auditor recommendations and a plan is in place to increase the effectiveness of reviews to ensure the completeness of client certification requirements.Action Plan: 1) Identify the departments that had eligibility errors. 2) Provide comprehensive training to ensure a clear understanding of Ryan White eligibility requirements among departments.Enacted: June 2023Responsible Person: Director of Case ManagementFinalized: July 2023Action Plan: 3) The programs use a new platform, e2SanAntonio, that has a built-in feature that flags clients that are out of compliance. Will perform monthly audits of Ryan White eligibility using the new eligibility platform reporting.Enacted: April 2023Responsible Person: Director of Case ManagementFinalized: June 2023

View Audit 311961

Finding 410072 (2022-004)

Significant Deficiency 2022

University of Delaware

DE

Questioned Costs Allowable Costs / Cost Principles Matching / Level of Effort / Earmarking § 200.101 § 200.303 § 200.6

Corrective Action PlanYear Ended June 30, 2022Finding 2022-004: AllowabilityCondition Found:In the auditors? testing over allowability of cost, they identified one transaction in a sample of 40 non-payroll transactions for which the University paid and allocated the cost, however, the service contra...

Corrective Action PlanYear Ended June 30, 2022Finding 2022-004: AllowabilityCondition Found:In the auditors? testing over allowability of cost, they identified one transaction in a sample of 40 non-payroll transactions for which the University paid and allocated the cost, however, the service contract period had not yet started. In addition, the auditors identified a second transaction for an intergovernmental personnel agreement (in the same sample of 40 non-payroll transactions) which included an advance on future service.Recommendation:The auditors recommend the University enhance the level of precision around its internal control over compliance related to the timing of allocating and charges costs.University of Delaware Corrective Action Plan:The University agrees with this finding. The questioned costs will be removed from the grant charged. Additionally, the University will provide additional education and awareness over the billing of federal awards to ensure that expenses relate to the period being billed and services being performed.Anticipated Completion Date:July 2023Contact Person:Jeff Friedland, Associate Vice President for Research

View Audit 311956 Questioned Costs: $1

Finding 409869 (2022-001)

Material Weakness 2022

Belington Community Medical Services Association, Inc.

WV

Procurement, Suspension & Debarment Reporting Matching / Level of Effort / Earmarking

Corrective Action: The Organization transitioned from one CFO to a new CFO. During this period of transition, they also increased the funding being used for construction of a new clinic. The new CFO did not review the information and transactions performed by the old CFO, and this resulted in the ...

Corrective Action: The Organization transitioned from one CFO to a new CFO. During this period of transition, they also increased the funding being used for construction of a new clinic. The new CFO did not review the information and transactions performed by the old CFO, and this resulted in the initial land purchase not being properly recorded. Because the bank maintained control of the loan proceeds, the ongoing loan disbursements were not run through the normal check disbursement process by the Organization. The Organization has created a new policy to track and account for disbursements that are not run through the organizations bank accounts.

View Audit 311954

Finding 409850 (2022-001)

None 2022

Greenville County Redevelopment Authority

SC

Reporting Matching / Level of Effort / Earmarking § 200.512

Finding 2022-001Condition: The Authority did not meet the deadline for submission of its data collection form and reporting package to the Federal Audit Clearinghouse for the fiscal year ended June 30,2021. The data collection form and reporting package must be submitted within the earlier of 30 ca...

Finding 2022-001Condition: The Authority did not meet the deadline for submission of its data collection form and reporting package to the Federal Audit Clearinghouse for the fiscal year ended June 30,2021. The data collection form and reporting package must be submitted within the earlier of 30 calendar days after receipt of the auditors' report or nine months after the end of the audit period. Therefore, the deadline for submission of the required information for the fiscal year ended June 30,2021, was October 23,2021. The data collectionform and reporting package were not submitted by that date.Corrective Action PlanCorrective Action Planned: An email from the Federal Audit Clearinghouse asking the Authority t0 be the Auditee Certifier was never received because the data collection form was not submitted by the audit company. The Authority has specifically included this requirement in the RFP for auditing services for FY23-25. It will further implement a reminder system to ensure that it is filed and certified by the stated deadlines.Name(s) of Contact Person(s) Responsible for Corrective Action: Ken Martin and Pamela PronerAnticipated Completion Date: September 12, 2022

View Audit 311948

Finding 409729 (2022-002)

None 2022

Robert Morris University

PA

Student Financial Aid Matching / Level of Effort / Earmarking Reporting

February 24, 2023Audit Response to Federal Grants Audit (A-133) - Enrollment reporting to National Student ClearinghouseAnalysis:Robert Morris University (University) attributes the delay in reporting changes of student enrollment status (withdrawal, graduated, less than half time, etc.) to the Nati...

February 24, 2023Audit Response to Federal Grants Audit (A-133) - Enrollment reporting to National Student ClearinghouseAnalysis:Robert Morris University (University) attributes the delay in reporting changes of student enrollment status (withdrawal, graduated, less than half time, etc.) to the National Student Clearinghouse (NSC) to the implementation of a new student information system conversation (Banner) that occurred in June 2021. Banner replaced a legacy system that the University had used for decades that had reliable processes and reporting controls that accurately reported information to the NSC.The identified exceptions can be categorized into the following two general categories:Off-Cycle GraduationOne group of exceptions related to students who had degrees conferred but the University had not updated their status to "graduated" in the NSC. Upon further review, the University determined extenuating circumstances (i.e. completion of all paperwork, and assignments, incomplete grade(s), etc.) existed for these students' and their graduation date fell outside of the normal graduation date of their peers for that semester cohort. Because of the off-cycle graduation timing, these students were not captured in the new graduate reporting process in Banner at the end of each semester. This resulted in the students not being reported to the NSC.Fall 2021 Status ChangesThe final group of exceptions occurred due to the University's new student information system conversion (Banner) in June 2021. Due to the specific requirements and customized nature of the clearinghouse file, the University's first electronic submission for Fall 2021 was delayed as errors/issues were being resolved in conjunction with the NSC. During that time frame, there were students who had fully withdrawn and/or status changes from the University, but due to the delay and file parameters, they were inadvertently excluded in the first submission and/or their status change wasn't reported in a timely manner.

View Audit 311937

Finding 406202 (2022-002)

None 2022

United Somali Women of Maine

ME

Reporting Matching / Level of Effort / Earmarking § 200.512

This is the first Single Audit for our Organization. To ensure that the Organization complies with the laws and regulations of the Single Audit, the CFO will track, review, and verify all federal and non-federal awards. The CFO will also review the closing process of the financial statements and mak...

This is the first Single Audit for our Organization. To ensure that the Organization complies with the laws and regulations of the Single Audit, the CFO will track, review, and verify all federal and non-federal awards. The CFO will also review the closing process of the financial statements and make adjustments that are required to finalize them. The CFO will ensure that the Organization submits timely single audit data collection and reporting package to the Federal Audit Clearinghouse.

View Audit 311602

Finding 406201 (2022-001)

Material Weakness 2022

United Somali Women of Maine

ME

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

The Organization recognizes the financial statement finding identified and we have taken corrective actions to ensure the accuracy of our financial controls and procedures moving forward. After the fiscal year ended in 2022, there has been a change in leadership within our financial department. With...

The Organization recognizes the financial statement finding identified and we have taken corrective actions to ensure the accuracy of our financial controls and procedures moving forward. After the fiscal year ended in 2022, there has been a change in leadership within our financial department. With this transition, adjustments have been made to the financial procedures and controls to address potential lapses in the closing process. The Organization has revised the way it records, reconcile, and review financial entries. These changes were necessary to ensure proper U.S. GAAP practices were in place. These updates include accurately accruing accounts payable and accounts receivable, to ensure revenue and expenses are recognized in the proper period. We have also implemented a proper review process of the financial statements and any adjustments that are required to finalize them. The Organization believes it have fully addressed and corrected all procedures that led to this finding.

View Audit 311602

Finding 406049 (2022-001)

Significant Deficiency 2022

Eastwest Food Rescue

WA

Allowable Costs / Cost Principles Subrecipient Monitoring Significant Deficiency § 200.303

EastWest Food Rescue has since implemented a formal expense approval process that requires electronic signatures from authorized individuals before payments will be processed.

View Audit 311592

Finding 403960 (2022-005)

Significant Deficiency 2022

City of Danbury

CT

Procurement, Suspension & Debarment Subrecipient Monitoring Matching / Level of Effort / Earmarking

Finding 2022-005 – Significant Deficiency, Procurement and Suspension, and Debarment - Internal Control over Verification Against the System for Award Management (“SAM”) Condition: During our audit, we noted that the City did not have documentation to support that it verified vendors selected for te...

Finding 2022-005 – Significant Deficiency, Procurement and Suspension, and Debarment - Internal Control over Verification Against the System for Award Management (“SAM”) Condition: During our audit, we noted that the City did not have documentation to support that it verified vendors selected for testing against the SAM to ensure that they were not suspended or debarred from federally funded purchases. Cause: While the City has a formal policy requiring the purchasing department to perform verification of suspension or debarment over vendors that the City enters into contracts with for federally funded projects, it does not maintain formal documentation that this procedure occurred. Response: We agree with the finding. We are adding this step to our checklist and have assigned the task to our Grants Compliance Coordinator.

View Audit 310810

Finding 403888 (2022-002)

Significant Deficiency 2022

West Alabama Aids Outreach, Inc.

AL

Subrecipient Monitoring Allowable Costs / Cost Principles Cash Management § 200.303

The CFO has instituted multiple approvals for each reimbursement or purchase request. Since completion of the fiscal year ended 9/30/2022, the Organization has added a Director of Grants Management, two grant billers, and a purchasing manager to help ensure policies and procedures are being followe...

The CFO has instituted multiple approvals for each reimbursement or purchase request. Since completion of the fiscal year ended 9/30/2022, the Organization has added a Director of Grants Management, two grant billers, and a purchasing manager to help ensure policies and procedures are being followed. For reimbursements, employees will complete an Employee Reimbursement Form which is signed by the employee and employee's direct supervisor. For purchase requests, employees will complete a Purchase Order form which is signed by the employee and the employee's supervisor. The signed form is sent to the finance department where it is entered in Bill.com for payment by accounts payable personnel. The Director of Finance approves the reimbursement or purchase on Bill.com, then the CFO approves and releases for payment. The approved Reimbursement Form or Purchase Order is sent to the Director of Grants Management, and if eligible, attached to the monthly billing to grantor for reimbursement. Anticipated Completion Date: 9/30/2023 Responsible Contact Person: Chris White, CFO

View Audit 310763

Finding 403121 (2022-012)

Material Weakness 2022

State of California

CA

Internal Control / Segregation of Duties Special Tests & Provisions Allowable Costs / Cost Principles § 200.303

Public Health agrees that Form CMS-1539 should be signed. We are exploring reasons why so many forms were not signed, and we will work with our District office management to ensure that they are all signed going forward. Further, we will address this issue at our next meeting of District Managers, ...

Public Health agrees that Form CMS-1539 should be signed. We are exploring reasons why so many forms were not signed, and we will work with our District office management to ensure that they are all signed going forward. Further, we will address this issue at our next meeting of District Managers, District Administrators, and Health Facilities Evaluator Supervisors, and will work to update our training materials as necessary. Finally, we will also explore periodically pulling a sample of completed CMS-1539 forms to verify that signatures are present. Estimated Implementation Date: May 1, 2024 Contact: Elizabeth Moreno, Section Chief Business Operation Section Center for Health Care Quality, Office of Internal Operations California Department of Public Health

View Audit 310237

Finding 403119 (2022-010)

Material Weakness 2022

State of California

CA

Eligibility Internal Control / Segregation of Duties Procurement, Suspension & Debarment § 200.303

Public Health’s Office of Aids (OA) agrees with the finding and recommendation. OA developed and implemented additional internal quality assurance (QA) processes in April of 2022 to ensure that secondary reviews of AIDS Drug Assistance Program (ADAP) applications are consistently enforcing the exist...

Public Health’s Office of Aids (OA) agrees with the finding and recommendation. OA developed and implemented additional internal quality assurance (QA) processes in April of 2022 to ensure that secondary reviews of AIDS Drug Assistance Program (ADAP) applications are consistently enforcing the existing guidelines, including acceptable supporting documentation and accurate eligibility requirements. Prior to this audit period, and through December 2021, ADAP had issued multiple policy memos to respond to the COVID-19 pandemic, which enabled staff and enrollment workers to defer documentation collection, when necessary, to remain flexible and ensure clients impacted by the pandemic, and associated site closures, did not lose eligibility and access to life-saving medications and comprehensive healthcare. These flexibilities in our guidelines were implemented based on guidance received from our federal funder, the Health Resources and Services Administration, which encouraged ADAP to reassess its organization's eligibility and recertification policies and procedures, and remove any barriers that may impede social distancing, or other public health strategies, necessary to minimize COVID-19 transmission. This documentation deferral was terminated on December 31, 2021, and since January 1, 2022, full documentation and eligibility requirements have been enforced. This, combined with ongoing QA efforts, will help mitigate future findings in ADAP applications. Estimated Implementation Date: Implemented as of April 2022 Contact: Joseph Lagrama, Branch Chief AIDS Drug Assistance Program Branch California Department of Public Health

View Audit 310237

Finding 403118 (2022-009)

Material Weakness 2022

State of California

CA

Allowable Costs / Cost Principles Material Weakness Matching / Level of Effort / Earmarking § 200.303

The Behavioral Health Administrative support team will endeavor to ensure that timesheets are collected and submitted appropriately. As the payroll system (SCO) and leave accounting (HRIS) are two completely separate programs that do not interact, the Behavioral Health (BH) Administrative Support T...

The Behavioral Health Administrative support team will endeavor to ensure that timesheets are collected and submitted appropriately. As the payroll system (SCO) and leave accounting (HRIS) are two completely separate programs that do not interact, the Behavioral Health (BH) Administrative Support Team will maintain a master file detailing the funding information for each position. For example, if a position is funded by two different grants, the file would reflect the percentage of work associated with each. It must be noted that as employee leave is tracked and maintained in a separate system, the Absence and Additional Time Worked Reports (STD 634) only reflect hours worked and leave used and does not reflect how a position is funded. Additionally, staff who are in Work Week Group E and are exempt from coverage under the Fair Labor Standards Act (FLSA) are not required to document hours worked for payroll purposes. Therefore, this form would only reflect leave credits used in whole-day increments. This means that on their timesheets, you will only find time used to cover full-day leave usage. These are generally our Supervisors and Managers. Estimated Implementation Date: July 2024 Contact: Raberta Gannon, Chief Behavioral Health Administrative Support Services Section Deputy Diretor’s Office, Behavioral Health California Department of Health Care Services

View Audit 310237

Finding 403115 (2022-007)

Material Weakness 2022

State of California

CA

Allowable Costs / Cost Principles Material Weakness Reporting § 200.303

California received $27 billion in State Fiscal Recovery Funds (SFRF) under the American Rescue Plan Act of 2021 to cover costs and mitigate the impacts of the COVID-19 pandemic. States that lost revenue due to the pandemic are permitted to use an amount of SFRF equivalent to their lost revenue, as ...

California received $27 billion in State Fiscal Recovery Funds (SFRF) under the American Rescue Plan Act of 2021 to cover costs and mitigate the impacts of the COVID-19 pandemic. States that lost revenue due to the pandemic are permitted to use an amount of SFRF equivalent to their lost revenue, as calculated pursuant to the U.S. Treasury’s Final Rule, to fund government services. The Department of Finance (Finance) acknowledges that its established review processes did not detect the inclusion of state employee contributions to deferred compensation plans in its revenue loss calculation and that these contributions did not constitute eligible revenue codes as they were not reported as revenues in the state’s basic financial statements. Due to unclear federal guidance, Finance’s original analysis and screening questions accounted for revenue codes that constituted revenues to the state from a budgetary perspective. Finance agrees that this oversight is a material weakness and has since adjusted its approach to the revenue loss calculation by excluding revenue codes that do not constitute revenues from a financial statement accounting perspective. However, Finance maintains that its overall controls and calculation process is sound and disagrees that this oversight was categorized as a material noncompliance finding. As stated in the finding, the overstated revenue loss amount did not impact expenditures reported for fiscal year 2022, and corrective action was taken before this finding and the state’s annual comprehensive financial report were released. The overstated revenue loss amount of $977,898,160 was not transferred from Fund 8506, which was established for the administration of the State Fiscal Recovery Funds received from the federal government, and was not used for the provision of government services. Estimated Implementation Date: January 2024 Contact: Mary Halterman, Assistant Program Budget Manager Federal Funds Cost Tracking & Accountability Unit California Department of Finance

View Audit 310237

Finding 403113 (2022-006)

Material Weakness 2022

State of California

CA

Questioned Costs Eligibility Reporting § 200.303

The EDD resumed adjudicating all potential eligibility issues as of January 2021 and completed the retroactive determination workload on April 30, 2023. Estimated Implementation Date: April 2023 Contact: Diane Underwood, Division Chief Unemployment Insurance Branch California Em...

The EDD resumed adjudicating all potential eligibility issues as of January 2021 and completed the retroactive determination workload on April 30, 2023. Estimated Implementation Date: April 2023 Contact: Diane Underwood, Division Chief Unemployment Insurance Branch California Employment Development Department

View Audit 310237 Questioned Costs: $1

Corrective Action Plans

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