Corrective Action Plans

INSURANCE POLICY CO-OBLIGEE Criteria: The Organization is responsible for having the USDA Rural Development listed as a co-obligee on fidelity bonds or mortgagee (loss payee) on the property insurance policy....

INSURANCE POLICY CO-OBLIGEE Criteria: The Organization is responsible for having the USDA Rural Development listed as a co-obligee on fidelity bonds or mortgagee (loss payee) on the property insurance policy. Condition: During our review of internal control procedures for the Community Facilities Loans & Grants Cluster, we identified the USDA Rural Development was not listed as a co-obligee on the fidelity bonds or mortgagee (loss payee) on the property insurance policy. Cause: The requirement was not met due to managements? oversight of the requirement to update the property insurance policy. Potential Effect: As a result, the Agency reserves the right to withdraw Agency funding. Recommendation: The Organization should review current procedures to ensure that they are complying with all requirements of the USDA Rural Development loan. Client Response: The Organization will review their monitoring procedures to ensure that they follow loan requirements and also update the insurance policy to include USDA Rural Development as the mortgagee (loss payee).

View Audit 282473

Finding 322671 (2022-003)

None 2022

Heartland Care Center Inc.

IA

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

REPORTING Criteria: The Organization is responsible for maintaining proper controls over programs to submit complete and accurate quarterly financial statements within 20 days of the quarte...

REPORTING Criteria: The Organization is responsible for maintaining proper controls over programs to submit complete and accurate quarterly financial statements within 20 days of the quarter end, and the annual budget must be submitted to the Agency 30 days prior to the beginning of the borrower?s fiscal year. Condition: During our review of internal control procedures for the Community Facilities Loans & Grants Cluster, we identified the quarterly financial statements were not submitted timely for the third quarter of 2021 and fourth quarter of 2021, the annual budget was not submitted timely, and the first quarter of 2022 financial statement was not submitted accurately. Cause: The submission of timely and complete reports was not met due to managements? oversight of the requirement to submit quarterly financials. Potential Effect: As a result, the Agency reserves the right to withdraw Agency funding. Recommendation: The Organization should review current processes and ensure the financial reports are reviewed for accuracy and submitted timely by someone who did not prepare the reports. Client Response: The Organization will modify the process to include review by another individual and monitor due dates to submit future reports accurately and on time.

View Audit 282473

Finding 316201 (2022-054)

Material Weakness 2022

State of Colorado

CO

Eligibility Subrecipient Monitoring Allowable Costs / Cost Principles § 200.303

(A) The state implemented the first phase of the monitoring dashboard in June 2020 with Project 13889 that identifies members that are active with no SSN without exemptions. The second phase of the monitoring dashboard implementation was pushed back to July 2023 due to competing legislative mandates...

(A) The state implemented the first phase of the monitoring dashboard in June 2020 with Project 13889 that identifies members that are active with no SSN without exemptions. The second phase of the monitoring dashboard implementation was pushed back to July 2023 due to competing legislative mandates.

View Audit 282464

Finding 316200 (2022-053)

Significant Deficiency 2022

State of Colorado

CO

Eligibility Procurement, Suspension & Debarment Subrecipient Monitoring

(A) The Department completed the system enhancement, allowing on-going data feeds from DORA into the interChange. The enhancement included implementation of a front-end claim edit, to prevent claim payments to providers with an expired license. The edit will be functional once the impact to provider...

(A) The Department completed the system enhancement, allowing on-going data feeds from DORA into the interChange. The enhancement included implementation of a front-end claim edit, to prevent claim payments to providers with an expired license. The edit will be functional once the impact to providers has been determined. The project was completed mid July 2022 with courtesy notices to our provider network, to update license information as applicable. Policies and procedures were updated to address this finding on May 17, 2022. The policy and procedure is effective July 1, 2022. (B) The Department has updated its policies and procedure for reviewing license actions, effective July 1, 2022. (C) Licensure continues to be a quality monitoring criterion for the Department and the Fiscal Agent. The Department completed the system enhancement, allowing on-going data feeds from DORA into the interChange. The enhancement included implementation of a front-end claim edit, to prevent claim payments to providers with an expired license. The edit will be functional once the impact to providers has been determined. The project was completed mid July 2022 with courtesy notices to our provider network, to update license information as applicable.

View Audit 282464

Finding 316196 (2022-055)

Material Weakness 2022

State of Colorado

CO

Eligibility Procurement, Suspension & Debarment Subrecipient Monitoring § 200.303

(A) The Department continues to work with the Fiscal Agent to ensure that the required database matches occur and the interChange properly displays the results of Social Security Number and Federal Employer Identification Number verifications for all providers. The project was completed mid July 202...

(A) The Department continues to work with the Fiscal Agent to ensure that the required database matches occur and the interChange properly displays the results of Social Security Number and Federal Employer Identification Number verifications for all providers. The project was completed mid July 2022.

View Audit 282464

Finding 316195 (2022-047)

Material Weakness 2022

State of Colorado

CO

Allowable Costs / Cost Principles Internal Control / Segregation of Duties Subrecipient Monitoring § 200.303 § 200.516 § 200.84

(B) The Department will review and revise, as necessary, its taxi claim billing requirements and rates to ensure that they are consistent. In addition, the Department will devise controls to ensure that taxi claims are paid in accordance with established requirements and rates and explore controls t...

(B) The Department will review and revise, as necessary, its taxi claim billing requirements and rates to ensure that they are consistent. In addition, the Department will devise controls to ensure that taxi claims are paid in accordance with established requirements and rates and explore controls to ensure that only permitted providers bill as a taxi. The Department is working on reductions in the max fee and unit limits for taxi claim billing codes, which it will have completed by the end of October 2021. In addition, the Department is considering systematically pricing the code at each taxi provider?s specific Public Utilities Commission (PUC) rate. This change, if pursued, will require a system change request, which will take a year or more, which is why the Department has selected an implementation date of December 2022. If this proves infeasible, alternate controls will be implemented. HCPF has met with DORA PUC. The Department is trying to establish a process to decide if the PUC taxi rate still applies or an internal rate can be created. Because of these discussions and needed system changes the implementation date has been moved to December 2023. (D) The Department intends to define in rule the types of documentation that NEMT providers must keep on hand and make clear that they must furnish records to the Department upon request. The July 2022 date will allow for the completion of formal rulemaking. The Department further intends to develop and implement a process to perform regular risk-based provider file reviews with a focus on noncompliant providers. These reviews will ensure, at a minimum, that the providers? paid claims are supported with appropriate documentation and represent the least costly option appropriate to meet each recipient?s needs. The Department met with the RAC team on February 22, 2023 to come up with a process to perform small audits for claims from providers that are outside the Intelliride service area. New systems will be implemented which has pushed the anticipated completion date to December 2023. (E) The Department will amend its contract with its NEMT broker by adding a mandatory annual audit so that it can reconcile trip scheduling data with paid claims data. This will help ensure that the Department pays accurately, pays for NEMT services, and pays for the least costly transportation option appropriate for each recipient. The Department chose July 2022 to add the audit through its annual contract amendment and renewal processes. The contract amendment was completed and signed June 30, 2022 that included a clause for an annual audit of claims. (F) The Department will develop a data review process to reconcile interChange data on NEMT trip claims to interChange data on Medicaid medical claims. This process will entail periodic reviews of NEMT claims to see if members have corresponding medical claims on those dates. If they do not, the Department will follow up with the appropriate NEMT provider to investigate. The July 2022 implementation date reflects the potential need for system changes. This is implemented, the Department has been pulling claims data and where corresponding medical claims are not found HCPF is investigating on a case by case basis to find the cause. (G) Department staff will work with the Department?s Program Integrity (PI) staff on processes to investigate and recover, as appropriate, the overpayments and inappropriate payments that the audit identified as known or likely questioned costs, and repay the federal portion, as appropriate. The December 2022 implementation date reflects the time needed to investigate and when appropriate, recover any overpayments. This has been implemented and the federal portion has been returned to CMS. (H) The Department will develop a process to track staff time and productivity to ensure that it has sufficient staff assigned to oversee and administer NEMT. This process will include documenting time spent each week on various tasks to get a sense of where help is needed, and which tasks take up the most staff resources. Based on its findings, the Department will explore staffing options, as needed. The Department selected the July 2022 implementation date to allow for data collection through the end of State Fiscal Year 2021-22. This has been implemented. New NEMT staff was hired November 1, 2022 to act as the liaison to the counties and clients in the 55 counties outside of the Intelliride service area.

View Audit 282464

Finding 316191 (2022-043)

Material Weakness 2022

State of Colorado

CO

Eligibility Procurement, Suspension & Debarment Subrecipient Monitoring § 200.303

(A) The Department and CBMS teams have strengthened their internal controls to ensure payments are only made to providers for eligible members. The Department and CBMS teams will update all member records identified on the Monthly Reconciliation report once the Public Health Emergency ends. TRAILS ...

(A) The Department and CBMS teams have strengthened their internal controls to ensure payments are only made to providers for eligible members. The Department and CBMS teams will update all member records identified on the Monthly Reconciliation report once the Public Health Emergency ends. TRAILS team has provided additional training to the Case Managers to prevent data integrity issues being submitted to CBMS and interChange; however, the TRAILS team does not plan to update the system's internal controls until funding is available. (B) The Department agrees to review the monthly eligibility reconciliation report and is looking forward to resolving the member records once the Public Health Emergency ends to fully resolve the audit finding.

View Audit 282464

Finding 308694 (2022-067)

Material Weakness 2022

State of Colorado

CO

Subrecipient Monitoring Matching / Level of Effort / Earmarking Reporting § 200.1

(A) CDHS agrees that it needs to it needs to correct the automated reporting process from the eClearance system used to gather data needed for our FFATA reporting. The department thought that the reports obtained from eClearance were complete and relied on them as the basis of our reporting. Upon in...

(A) CDHS agrees that it needs to it needs to correct the automated reporting process from the eClearance system used to gather data needed for our FFATA reporting. The department thought that the reports obtained from eClearance were complete and relied on them as the basis of our reporting. Upon investigation we found that an internal process change enacted during the implementation of another system at the start of the pandemic was the cause of the data discrepancy. This occurred because the new system made the routing in eClearance after a certain point unnecessary for internal processing so this stopped. It was unknown that this further routing to archive files in eClearance was the trigger for eClearance to push out FFATA report data. Since the department has been able to identify the cause we are able to immediately remedy the problem and ensure that all processes are in sync to ensure accurate and complete FFATA data is contained in automated reporting processes. The department will catch up on FFATA reporting that was missed during this time frame. (B) The department agrees that it needs to implement procedures to validate that data derived from automated processes used as a basis for FFATA reporting should be periodically validated against another data source. To do this the department will create and implement procedures to use CORE reports of encumbrance data referencing subrecipient object codes and tie this to information received from the automated eClearance report. Doing this will validate that the data provided from eClearance is a complete listing of all FFATA reportable subrecipient awards, and thus is a valid source to base FFATA reporting on. This will also help us monitor the process in case any future inadvertent changes are made to processes that could cause data validity issues. (C) CDHS agrees that a supervisory review is needed over the FFATA reporting process in order to ensure more consistency, accuracy and timeliness in reporting processes and standards. The department is currently developing procedures that will allow for more oversight of the FFATA reporting through supervisory reviews and cross training staff on FFATA reporting duties. Supervisory reviews will help ensure that reporting is completed in line with reporting procedures and timeframes and can be a second set of eyes to ensure that information appears accurate and adds analytical judgement value (example - a supervisor might see that July typically has high volume, but this July volume is low, why). In addition, the department is taking this opportunity to cross train other staff on the process so that more individuals can be involved which leads to more transparency over processes allowing various individuals to notice if something isn't working as designed. These new procedures are being developed and implemented as the department catches up on reporting subrecipient awards that were missed since the automated process stopped working.

View Audit 282464

Finding 308688 (2022-068)

Material Weakness 2022

State of Colorado

CO

Reporting Subrecipient Monitoring Matching / Level of Effort / Earmarking § 200.1 § 200.38 § 200.510

(A) CDHS agrees to enhance internal controls over monthly P-EBT reporting to better ensure accuracy. P-EBT is a new program derived from pandemic funding. Being a new program with a lack of federal guidance at implementation, and urgency to get the funds disbursed program staff had to learn about th...

(A) CDHS agrees to enhance internal controls over monthly P-EBT reporting to better ensure accuracy. P-EBT is a new program derived from pandemic funding. Being a new program with a lack of federal guidance at implementation, and urgency to get the funds disbursed program staff had to learn about the nuances of the program and the reporting requirements as it was being implemented. During implementation we recognized that there are some inherent differences with P-EBT from other benefit programs which caused processes to have to be adjusted slightly. Additionally, timing of federal report filing for the P-EBT program is not in synch with our other processes and associated federal reporting requirements and deadlines. This makes it impossible to ensure reconciliation procedures are performed before filing occurs, which is one of our typical internal controls. As a compensating internal control CDHS will ensure that supervisory review processes are performed over P-EBT reporting, and that P-EBT reporting is reconciled to other sources (CBMS and CFMS) as soon as possible after reporting is available. If changes are discovered CDHS will make adjustments to filed P-EBT reports as needed based on reconciliation findings, and communicate changes to necessary parties. (B) CDHS will work to ensure better coordination between program activities and the accounting section relating to federal reporting changes. Accounting will iterate the importance of timely informing the accounting staff when changes are made to program filed federal reports. This message will be delivered in periodic fiscal meetings and identified on the closing calendar. The P-EBT program will ensure that corrections are communicated to accounting on any updates completed on the FNS-292-B report upon discovery, and no later than 30 days after the reporting period. (C) CDHS will ensure that review and approval processes are occurring as designed at various points in the process leading up to entry into CORE. As part of the Requisition (RQS) approval process program and accounting staff independently approve that the correct direct or subrecipient object code is used. These approved RQS transactions are then transitioned into encumbrance documents that drive which object code future expenditures will be booked to. For CCDF transactions related to this finding, both the OEC and Accounting teams inadvertently approved an incorrect object code in 4 RQS's. Staffing shortages coupled with a large increase in workload related to pandemic funding contributed to this oversight. To correct OEC and Accounting will train new staff, periodically familiarize themselves with the appropriate object codes, and perform quality assurance review over object codes before applying approval in CORE. The K1 is compiled from balances derived from expenditure data recorded in CORE. The compilation of the K1 relies on the fact that expenditure balances are accurate, and that prior reviews and approvals of individual transactions have occurred as designed. The K1 currently goes through various levels of review focusing on balance level validation coupled with analytical procedures. To enhance the review process, CDHS will ensure analytical procedures include line level expenditure comparison at the direct and subrecipient levels.

View Audit 282464

Finding 301049 (2022-042)

Significant Deficiency 2022

State of Colorado

CO

Subrecipient Monitoring Reporting Matching / Level of Effort / Earmarking § 200.1 § 200.303

(A) We agree with this recommendation. In recent years, the Federal Government had multiple continuing resolutions in their budget process, resulting in CDE?s Title I allocations coming in multiple iterations. For the last several years, CDE has received revised allocations from the US Department of...

(A) We agree with this recommendation. In recent years, the Federal Government had multiple continuing resolutions in their budget process, resulting in CDE?s Title I allocations coming in multiple iterations. For the last several years, CDE has received revised allocations from the US Department of Education for the fiscal year as late as early summer; in one example, we received six revisions. With staffing shortages and the administrative burden to continuously revise, research issues and update FFATA for each allocation change, CDE took the step to report only the final allocation to FFATA, which was reported as of the month the awardee was awarded. However, the report was submitted later in the fiscal year. CDE will take a two-fold approach to rectify the issue related to the required FFATA reporting for Title I. First, we will report to FSRS the initial awards within 30 days following the date the awardee was provided final approval on their award. This is consistent with CDE?s approach to all other federal awards. Second, we will monitor the continuing resolutions and changes in allocations, and report only the net changes to each awardee, in the month those changes occur from the US Department of Education. Thereby, FSRS will represent the total revised award. In addition to this approach, all Title I awards will continue to be a part of our regular FFATA reconciliation process. (B) We agree with this recommendation. CDE identified its own failure to report two ESSER subawards to FFATA within 30 days as part of the successful development and implementation of a FFATA-specific reconciliation process in Summer 2022. CDE will continue to refine and improve its FFATA reconciliation process.

View Audit 282464

Finding 286714 (2022-075)

Significant Deficiency 2022

State of Colorado

CO

HUD Housing Programs Internal Control / Segregation of Duties Cash Management § 200.303

The Department of Local Affairs (Department) agrees with the recommendation. The Department will strengthen its internal controls through the development of an onboarding program that will include different modules that new employees and/or contractors must work through to receive certification. The...

The Department of Local Affairs (Department) agrees with the recommendation. The Department will strengthen its internal controls through the development of an onboarding program that will include different modules that new employees and/or contractors must work through to receive certification. These modules will include all relevant steps associated with the waiting list process.

View Audit 282464

Finding 286696 (2022-063)

Significant Deficiency 2022

State of Colorado

CO

Subrecipient Monitoring Reporting Internal Control / Segregation of Duties § 200.303 § 200.334

In December 2022, the Office of Financial Aid strengthened its internal control over the reporting requirements for the Higher Education Emergency Relief Fund (HEERF), by adding the report due dates to the internal operational calendar. Additional level reviews were also added to the submission proc...

In December 2022, the Office of Financial Aid strengthened its internal control over the reporting requirements for the Higher Education Emergency Relief Fund (HEERF), by adding the report due dates to the internal operational calendar. Additional level reviews were also added to the submission process before the required reports will be sent to the Department of Education and posted on the financial aid website.

View Audit 282464

Finding 286695 (2022-062)

Significant Deficiency 2022

State of Colorado

CO

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

In January 2023, the Executive Director of Financial Aid and Scholarships implemented a code of conduct that addresses and prohibits University personnel from awarding financial aid to their family members or other persons considered conflicts of interest. The Office of Financial Aid and Scholarship...

In January 2023, the Executive Director of Financial Aid and Scholarships implemented a code of conduct that addresses and prohibits University personnel from awarding financial aid to their family members or other persons considered conflicts of interest. The Office of Financial Aid and Scholarships will draft policy by June 30, 2023, to address the segregation of duties that prohibits awarding and disbursing federal, state, or institutional funding to students by one employee.

View Audit 282464 Questioned Costs: $1

Finding 286694 (2022-064)

Significant Deficiency 2022

State of Colorado

CO

Matching / Level of Effort / Earmarking Student Financial Aid Reporting § 200.303

Management agrees. After the notification of the missing HEERF report in December 2021, the UCCS Controller proposed a ?cross-check? process to ensure all future reporting is in compliance and reported in a timely manner. This process is used for both the quarterly and annual reporting process. In ...

Management agrees. After the notification of the missing HEERF report in December 2021, the UCCS Controller proposed a ?cross-check? process to ensure all future reporting is in compliance and reported in a timely manner. This process is used for both the quarterly and annual reporting process. In the quarterly reporting process, the UCCS Controller completes the institutional report and emails the report to the UCCS Financial Aid office Senior Executive Director for verification of the amounts and the data submitted. The Senior Executive Director then enters the student aid portion?s information and provides this to the UCCS Controller for verification of the data. Once verified, the report is uploaded to the UCCS website and a confirmation email is sent to the UCCS Controller as well as the heerfreporting@ed.gov for verification of completion of the website posting.

View Audit 282464

Finding 286570 (2022-060)

Significant Deficiency 2022

State of Colorado

CO

Student Financial Aid Reporting Matching / Level of Effort / Earmarking

Mines was delayed in processing NSLDS files due to staffing changes and employee leave. Mines has constructed a process to ensure timely future reporting along with an agreed upon trained back-up for the primary person if they are out for an extended time. Additionally, we have changed how often we ...

Mines was delayed in processing NSLDS files due to staffing changes and employee leave. Mines has constructed a process to ensure timely future reporting along with an agreed upon trained back-up for the primary person if they are out for an extended time. Additionally, we have changed how often we report enrollment files to the Clearinghouse (NSC). We are now reporting every two weeks. The error reports generated after the files are submitted are reviewed as soon as they?re posted, a copy downloaded from NSC and reviewed for corrections which are then completed as soon as possible. Mines is working on an updating the documentation for the full process, including all of the cleanup reports that are run in COGNOS and the Banner jobs before the enrollment file is even processed.

View Audit 282464

Finding 264817 (2022-006)

None 2022

Elysian School

MT

Subrecipient Monitoring Matching / Level of Effort / Earmarking

WAGE RATE REQUIREMENTS Name of contact person: Laurie Hickethier Corrective Action: In the future, the District will put steps in place to ensure all projects funded with federal money that will be over the $2,000 limit will require the company hired to supply the district business manager with a ...

WAGE RATE REQUIREMENTS Name of contact person: Laurie Hickethier Corrective Action: In the future, the District will put steps in place to ensure all projects funded with federal money that will be over the $2,000 limit will require the company hired to supply the district business manager with a certified copy of their payroll for the job done. The district business manager will verify that the wages paid are for the contract no less than the locally prevailing wage for the corresponding work on similar projects in the area. Proposed Completion Date: Immediately

View Audit 262547

Finding 261140 (2022-017)

Material Weakness 2022

Pinecrest Academy of Nevada

NV

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

Finding Number: 2022-017 ? SEFA Preparation Corrective Action Plan: In 2022, the office had downsized due to turnover in staff. While a process was in place for reconciling, a secondary review was not performed to verify accuracy of the residual value calculations. To strengthen the oversight of fin...

Finding Number: 2022-017 ? SEFA Preparation Corrective Action Plan: In 2022, the office had downsized due to turnover in staff. While a process was in place for reconciling, a secondary review was not performed to verify accuracy of the residual value calculations. To strengthen the oversight of financial management in the School, Academica Nevada, the School?s management company, has filled all the open positions and realigned staff responsibilities to reduce individual workloads and provide additional oversight and review. The grant manager will reconcile all grants to ensure proper cutoff, with a secondary review performed by a member of management. Responsible Individuals: Nachum Golodner, Director of Accounting Anticipated Completion Date: June 30, 2023

View Audit 258987

Finding 252559 (2022-001)

Significant Deficiency 2022

United Food Bank

AZ

Internal Control / Segregation of Duties Subrecipient Monitoring Eligibility § 200.303

2022-001 U.S. Department of Agriculture, Food, and Nutrition Service Emergency Food Assistance Program CFDA Number: 10.568/10.569 Passed Through: The Arizona Department of Economic Security Pass Through Number: CtR052634 Award Period: July 1, 2021 ? June 30, 2022 Type of Finding ? Significant Defi...

2022-001 U.S. Department of Agriculture, Food, and Nutrition Service Emergency Food Assistance Program CFDA Number: 10.568/10.569 Passed Through: The Arizona Department of Economic Security Pass Through Number: CtR052634 Award Period: July 1, 2021 ? June 30, 2022 Type of Finding ? Significant Deficiency in Internal Control over Compliance Condition/Context ? Internal control procedures over eligibility requirements for 1 of 40 eligibility sheets tested indicated there was no certifying signature by the eligible recipient agency volunteer, and there was no evidence of secondary review by the distribution agency program officials. Contact Person ? Chariti Stern, Chief Program Officer Corrective Action Plan ? United Food Bank has entirely onboarded all TEFAP agencies to be active on Link2Feed; however, a handful of agencies still use sign-in sheets due to technology limitations. At the 2022 Agency Conference, a presentation was done that conveyed the importance of checking all signatures on United Food Bank documents. The 2022 Partner Agency Handbook explains that a signature is required for the reports and sign-in sheets to be authorized and accepted by United Food Bank. Re-training United Food Bank staff has also occurred to ensure that all reports have the correct signatures and that the United Food Bank staff?s initials are on all documents to ensure that the reports were reviewed.

View Audit 257571

Finding 236264 (2022-003)

None 2022

St. Mary Levee District

LA

Questioned Costs Cash Management Matching / Level of Effort / Earmarking § 200.305

2022-003 Cash Management Management?s Response and Planned Corrective Action: Management will monitor reimbursement requests to insure that payments have been made to vendors prior to submitting the reimbursement request. Name and Title of Contact Person: Timothy Matte, Executive Director

View Audit 236613 Questioned Costs: $1

Finding 235116 (2022-005)

Significant Deficiency 2022

Second Harvest Community Foodbank

MO

Allowable Costs / Cost Principles Matching / Level of Effort / Earmarking § 200.334 § 200.403

Condition: Administrative costs are submitted to the state monthly for reimbursement on the Record of Expenditures under the TEFAP Financial Assistance form ("FD-32D"). The State reimburses the Organization for administrative costs as determined by the state on a monthly basis. Typically, the monthl...

Condition: Administrative costs are submitted to the state monthly for reimbursement on the Record of Expenditures under the TEFAP Financial Assistance form ("FD-32D"). The State reimburses the Organization for administrative costs as determined by the state on a monthly basis. Typically, the monthly reimbursement amount is significantly less than the actual amount of allowed administrative expenses incurred by the Organization. During our procedures, we noted that certain expenditures, amounting to approximately $3,290, which were included on the FD-32D of which supporting documentation the Organization is required to retain under 2 CFR part 200 was lacking. As such, we could verify these costs related to activities allowed for reimbursement under 2 CFR part 200. Views of Responsible Officials and Corrective Actions: We agree with the auditor's comments and the following action will be taken to improve this situation. The Finance and Administration Manager and the Director of Logistics, who prepare the FD-32D, will work together to ensure that all supporting documentation is retained for all allowable expenses monthly. The corrective actions will be implemented by July 1, 2023.

View Audit 255313

Finding 230248 (2022-001)

Material Weakness 2022

Northeast Ohio Medical University

OH

Student Financial Aid Subrecipient Monitoring Material Weakness

Finding Number: 2022-001 Anticipated Completion Date: 07/19/2022 Responsible Contact Person: Katherine Miranda, University Registrar Kelly Burt, Assistant Registrar Records Management and Reporting Planned Corrective Action: Ensure all graduation dates are reported on enrollment reporting within ...

Finding Number: 2022-001 Anticipated Completion Date: 07/19/2022 Responsible Contact Person: Katherine Miranda, University Registrar Kelly Burt, Assistant Registrar Records Management and Reporting Planned Corrective Action: Ensure all graduation dates are reported on enrollment reporting within 30 days of the status change Due to new procedures, reporting processes and new staff, a group of our Spring 2022 graduates were not reported in a timely manner. Once we were made aware of this issue, we went into immediate action to correct the error. We worked with Clearinghouse to confirm our own misconceptions and ways to remedy the error. We updated all records individually through the Clearinghouse system. After all records were corrected, we updated our staff manual to ensure this does not occur in the future. Staff will continue to review all records to ensure accurate and timely reporting.

View Audit 252913

Finding 212945 (2022-010)

None 2022

Park County

MT

Special Tests & Provisions Matching / Level of Effort / Earmarking

NONCOMPLIANCE WITH SPECIAL TESTS AND PROVISIONS REQUIREMENTS, SCHOOLS AND ROADS-GRANTS TO STATES; AL No. 10.665; GRANT No. 21-CS-11011100-005, YEAR ENDED JUNE 30 2022 Name of contact person: Director of Grants and Special Projects Corrective Action: The county will develop written procedures as re...

NONCOMPLIANCE WITH SPECIAL TESTS AND PROVISIONS REQUIREMENTS, SCHOOLS AND ROADS-GRANTS TO STATES; AL No. 10.665; GRANT No. 21-CS-11011100-005, YEAR ENDED JUNE 30 2022 Name of contact person: Director of Grants and Special Projects Corrective Action: The county will develop written procedures as recommended in finding 2022-007 to address this issue and incorporate this finding?s recommendation. Proposed Completion Date: Immediately

View Audit 250852

Finding 205955 (2022-001)

Material Weakness 2022

Great Hearts America - Texas

TX

Subrecipient Monitoring Material Weakness Period of Performance § 200.302

Finding 2022-001 - Schedule of Expenditures of Federal Awards United States Department of Education Pass Through Entity: Texas Education Agency Federal Program: American Rescue Plan ? Elementary and Secondary School Emergency Relief (ARP ESSER) Assistance Listing Number: 84.425U Federal Award N...

Finding 2022-001 - Schedule of Expenditures of Federal Awards United States Department of Education Pass Through Entity: Texas Education Agency Federal Program: American Rescue Plan ? Elementary and Secondary School Emergency Relief (ARP ESSER) Assistance Listing Number: 84.425U Federal Award Number: S425U210042 Federal Award Year 2022 Repeat Comment: No Type of Finding: Material Weakness Condition: When reviewing the net assets released from restriction in the draft financial statements presented to the board, management determined and brought to the attention of the auditors the net assets restricted for pre-award costs for the ESSER federal program ($1,976,911) should have been released from restrictions during fiscal year ending June 30, 2022. The auditor, when tying the draft schedule of expenditures of federal awards to the updated schedules, determined the Organization had not included the pre-award federal expenditures related to the ESSER federal program. As a result, the initial testing of the ESSER major program did not include $1,976,991 in ESSER expenditures. When this was brought to management?s attention, the schedule of expenditures of federal awards was updated and the additional expenditures provided for testing. Cause: The additional $1,976,991 was related to ?pre-award? dollars awarded during fiscal year ended June 30, 2022, where allowable expenditures incurred in the previous year were permitted by the grant to be used for the ESSER funds awarded in the current year. Management was not aware of the requirement to include these amounts on the schedule of expenditures of federal awards. Recommendation: We recommend management of the Organization strengthen their internal controls to ensure all federal awards are included on the schedule of expenditures of federal awards. Corrective Action Plan: Prior to June 30, 2023, management will prepare an administrative procedure that requires the auditor to provide a draft financial and compliance report at least one (1) week prior to the meeting of the Board. In the procedure, management will require staff to reconcile the Schedule of Expenditures of Federal Awards to the Statement of Activities and other relevant accounting information to ensure the accuracy and completeness of the amounts disclosed. Person Responsible: Kevin Byrne, Vice President of Finance Anticipated Completion Date: June 30, 2023

View Audit 174625

Corrective Action Plans

Filters