Corrective Action Plans

Finding 7073 (2023-001)

Significant Deficiency 2023

IL

Student Financial Aid Reporting Matching / Level of Effort / Earmarking

Southeastern Illinois College will be implementing remediation steps to ensure that enrollment information is accurate in the National Student Loan Data System (NSLDS). The College’s Information Technology (IT) department will work with the Registrar in creating a process where graduates who are not...

Southeastern Illinois College will be implementing remediation steps to ensure that enrollment information is accurate in the National Student Loan Data System (NSLDS). The College’s Information Technology (IT) department will work with the Registrar in creating a process where graduates who are not originally reported as graduated can be updated to graduated status in National Student Clearinghouse (NSC)’s website. This may include making a graduates’ only submission to NSC to update those graduates whose degrees were conferred after the original submission. Also, the Student Affairs department will now review submission data and give approval prior to submission to NSC. To assist in this review, the IT department will develop a data validation report that lists students who have completed a certificate and/or degree and are no longer attending.

View Audit 9099

Finding 7068 (2023-006)

Significant Deficiency 2023

Nash County

NC

Matching / Level of Effort / Earmarking Allowable Costs / Cost Principles Eligibility

Finding 2023-006 Name of contact person: Corrective Action: Proposed completion date: Jessica Hill, Food and Nutrition Services Supervisor Training will be conducted in December 2023 in the following noted areas: Reviewing OVS ESC tab for all household members and related quarters to question each e...

Finding 2023-006 Name of contact person: Corrective Action: Proposed completion date: Jessica Hill, Food and Nutrition Services Supervisor Training will be conducted in December 2023 in the following noted areas: Reviewing OVS ESC tab for all household members and related quarters to question each employer listed in related quarters. Training of documentation of termination wages and verification sources to verify earned income. Conduct a documentation training exercise to ensure verification of all expenses given as a deduction. Review acceptable forms of verification for deductions given. Conduct an earned income exercise to review base period requirements and calculation of correct gross amount to determine correct earned income for the FNS unit. Review of documentation procedures and referencing to The Work Number verifying employment terminations for applicable employers. Review of policy sections 305, 300, and 310. Second party reviews focused around income calculations, verifications, correct base period used and documentation, and verification of deductions given to FNS unit. Ensure staff understands base period for earned income, the importance of documenting case file and providing correct verification to support action taken on case file. December 2023 Section IV - State Award Findin

View Audit 9079

Finding 7067 (2023-001)

Significant Deficiency 2023

North Hill Communities. Inc. and Subsidiaries

MA

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

The Company agrees with the finding. The Company will implement a process for a member of the finance staff to prepare lost revenues calculations. The Director of Finance will then provide a second layer of detailed review on the lost revenue calculations and the financial reporting to ensure amount...

The Company agrees with the finding. The Company will implement a process for a member of the finance staff to prepare lost revenues calculations. The Director of Finance will then provide a second layer of detailed review on the lost revenue calculations and the financial reporting to ensure amounts captured are accurate and categorized appropriately. Sign off on preparation and review will be documented appropriately.

View Audit 9075

Finding 7059 (2023-003)

Significant Deficiency 2023

Barton County Community College

KS

Special Tests & Provisions Student Financial Aid Matching / Level of Effort / Earmarking

Federal Program Student Financial Assistance Cluster Compliance requirements Special Tests and Provisions – Return to Title IV Condition During testing, we identified that three of the sixteen students tested had an incorrect Return to Title IV calculation on file. Recommendation We recommend t...

Federal Program Student Financial Assistance Cluster Compliance requirements Special Tests and Provisions – Return to Title IV Condition During testing, we identified that three of the sixteen students tested had an incorrect Return to Title IV calculation on file. Recommendation We recommend that the College review its controls to ensure that accurate Return to Title IV calculations are completed. Comments on the Finding Recommendation The College used seven calendar break days upon the basis that the campus was only closed for seven days for both Spring Break and Thanksgiving Break. However, it was brought to the College’s attention that break days for Return to Title IV purposes are considered all days between the last scheduled day of classes, and the first day classes resume, which would be nine calendar break days for both the Fall and Spring semesters. Action Taken As of September 11, 2023, the financial aid office has recalculated the Return to Title IV calculations for all students whose calculations utilized the incorrect number of break days. Return amounts have been corrected based upon those calculations. Staff have also undergone training regarding use of the correct calendar for students.

View Audit 9062

Finding 7005 (2023-001)

Significant Deficiency 2023

Close Up Foundation

VA

Matching / Level of Effort / Earmarking Allowable Costs / Cost Principles

Views of Responsible Officials: The Foundation informed the auditors prior to the start of the audit fieldwork that staffers who worked on the federal program did not code their time, on their timesheet, to the grant. However, the Foundation has alternative tracking mechanisms to identify the federa...

Views of Responsible Officials: The Foundation informed the auditors prior to the start of the audit fieldwork that staffers who worked on the federal program did not code their time, on their timesheet, to the grant. However, the Foundation has alternative tracking mechanisms to identify the federal and nonfederal program work (by week) via a staffing list that specifically identifies the federal program weeks. The Foundation did not effectively communicate the requirement for the newly hired staffers for the spring program, even though it was communicated to other various programs throughout the year. The Foundation made the determination to not open closed timesheet periods to make the necessary changes and instead, made an allocation entry for the proper amount. The Foundation has made managers aware of the issue so that they can be mindful during the timesheet approval process. Moving forward, Finance will request a staffing list, monthly, to confirm hours are properly coded and ensure proper timesheet training. For the record, the Foundation always bills the federal government correctly.

View Audit 9019

Finding 7004 (2023-005)

Material Weakness 2023

City of Kansas City, Missouri

MO

Special Tests & Provisions Subrecipient Monitoring HUD Housing Programs § 200.326

Program: Choice Neighborhoods Implementation Grants Federal Agency: Department of Housing and Urban Development AL #: 14.889 Federal Award Identification Number and Year: Various - See SEFA Pass-through Entity: N/A Type of Compliance Finding: N - Special Test and Provisions Internal Cont...

Program: Choice Neighborhoods Implementation Grants Federal Agency: Department of Housing and Urban Development AL #: 14.889 Federal Award Identification Number and Year: Various - See SEFA Pass-through Entity: N/A Type of Compliance Finding: N - Special Test and Provisions Internal Control Impact: Material Weakness Finding: The City did not provide evidence supporting the City's compliance with this requirement. Status: Resolved Corrective Action Plan: Since the CNI grant has ended, the corrective action plan will apply to future grants. When the City obtains future grants utilizing and/or funding projects in multiple City Departments, operating procedures will be in place to ensure compliance and the required grant documentation will centrally located and identified. Person(s) Responsible for Implementation: Jeffrey Williams, Director of City Planning, Telephone: (816) 513-8803; Email: Jeffrey.Williams@kcmo.org

View Audit 9017

Finding 7002 (2023-003)

Material Weakness 2023

City of Kansas City, Missouri

MO

Matching / Level of Effort / Earmarking

Program: Choice Neighborhoods Implementation Grants Federal Agency: Department of Housing and Urban Development AL #: 14.889 Federal Award Identification Number and Year: Various - See SEFA Pass-through Entity: N/A Type of Compliance Finding: G - Matching, Level of Effort, Earmarking Int...

Program: Choice Neighborhoods Implementation Grants Federal Agency: Department of Housing and Urban Development AL #: 14.889 Federal Award Identification Number and Year: Various - See SEFA Pass-through Entity: N/A Type of Compliance Finding: G - Matching, Level of Effort, Earmarking Internal Control Impact: Material Weakness Finding: The City did not provide evidence that they met the grant's matching requirement. Status: Resolved Corrective Action Plan: Documentation was submitted to the auditors after the finding came out for the Critical Community Improvement funding project. The provided documentation shows the required match for the $800,000 that was spent from the grant funds. Person(s) Responsible for Implementation: Jeffrey Williams, Director of City Planning, Telephone: (816) 513-8803; Email: Jeffrey.Williams@kcmo.org

View Audit 9017

Finding 6942 (2023-001)

Significant Deficiency 2023

Hopewell Redevelopment and Housing Authority

VA

Matching / Level of Effort / Earmarking Cash Management HUD Housing Programs

The Business Activities and State and Local programs had not generated sufficient cash required to reimburse the revolving fund for expenses incurred on its behalf before the end of the operating cycle. Corrective Action: The Housing Authority will reconcile and settle interfund balances on a month...

The Business Activities and State and Local programs had not generated sufficient cash required to reimburse the revolving fund for expenses incurred on its behalf before the end of the operating cycle. Corrective Action: The Housing Authority will reconcile and settle interfund balances on a monthly basis and implement greater oversight with review and sign off; confirming the reconciliation is complete no later than the 10th calendar day of the following month. In addition, the Authority will establish controls to restrict interfund transactions for which there is no certainty of reimbursement before the accounting period cut-off by documenting that reimbursement will occur no later than 30 calendar days after obligation/disbursement. If unable to confirm reimbursement within 30 calendar days, no disbursement will be made for business activities until reimbursement is certain to occur within the established 30-day timeframe. Person Responsible: Lisa Wilson at Lisa.Wilson@hopewellrha.org

View Audit 8935

Finding 6926 (2023-001)

Significant Deficiency 2023

Heart of West Michigan United Way

MI

Subrecipient Monitoring Allowable Costs / Cost Principles Significant Deficiency § 200.303

Finding Number: 2023-001 Condition: Controls in place did not identify an inaccurate calculation of assistance. Planned Corrective Action: The grant is complete for payment for direct assistance to eligible participants. Contact person responsible for corrective action: Gail Montgomery, Vice Preside...

Finding Number: 2023-001 Condition: Controls in place did not identify an inaccurate calculation of assistance. Planned Corrective Action: The grant is complete for payment for direct assistance to eligible participants. Contact person responsible for corrective action: Gail Montgomery, Vice President of Finance Anticipated Completion Date: August 30, 2023

View Audit 8922

Finding 6925 (2023-001)

Significant Deficiency 2023

Ashland University

OH

Student Financial Aid Matching / Level of Effort / Earmarking Subrecipient Monitoring

Management concurs with the finding. The Registrar’s Office and Financial Aid Office has performed a review of its policies and procedures and has revised them accordingly to ensure timely, accurate and complete submissions to the NSLDS. The determination of the review was that the enrollment effect...

Management concurs with the finding. The Registrar’s Office and Financial Aid Office has performed a review of its policies and procedures and has revised them accordingly to ensure timely, accurate and complete submissions to the NSLDS. The determination of the review was that the enrollment effective status data field required correction in the NSLDS Enrollment History system. Since the restoration of the NSLDS system in November 2022, the Registrar’s Office and Financial Aid has corrected the data which was completed on September 13, 2023.

View Audit 8911

Finding 6918 (2023-002)

None 2023

Community Services and Employment Training, Inc.

CA

Matching / Level of Effort / Earmarking Reporting

Planned Corrective Action: The Organization acknowledges the finding and is continuously working closely with program staff to seek other non-federal revenue to meet the match requirement. The Organization has been unable to meet the match requirement since the pandemic because the Organization’s m...

Planned Corrective Action: The Organization acknowledges the finding and is continuously working closely with program staff to seek other non-federal revenue to meet the match requirement. The Organization has been unable to meet the match requirement since the pandemic because the Organization’s match was previously dependent on volunteer hours and volunteers were not in the sites when they were not open. The following steps have been taken to remedy the finding. The Organization's resource development team is constantly researching non-federal funding to supplement the senior center funding that is eligible for match. The Organization has also increased fundraising activities for gaining private donations, which could be applied to senior center activities and therefore create match. Thus far for fiscal year 2023-2024 the Organization has obtained a grant that will be eligible for a match totaling $73,992. In addition, the Organization is researching the new reporting requirements for in-kind donations, as the senior centers occasionally receive donations such as food from private vendors that could be eligible for match. As of October 31, 2023, the Organization has met 25% of its match requirement for the current fiscal year.

View Audit 8896

Finding 6903 (2023-002)

Significant Deficiency 2023

Rural Development Institute Dba Landesa

WA

Allowable Costs / Cost Principles Subrecipient Monitoring Significant Deficiency

Landesa has changed it's timesheet approval process so now all employee timecards are approved prior to payroll being paid. Additionally, the approval process was changed from being a manual process to an electronic system that is integrated with other payroll and timekeeping processes. Contact pe...

Landesa has changed it's timesheet approval process so now all employee timecards are approved prior to payroll being paid. Additionally, the approval process was changed from being a manual process to an electronic system that is integrated with other payroll and timekeeping processes. Contact person: Director of Finance and Anticipated completion date: November 2023

View Audit 8892

Finding 6866 (2023-001)

Material Weakness 2023

Holland Hospital

MI

Allowable Costs / Cost Principles Subrecipient Monitoring Cash Management § 200.303

Finding Number: 2023-001 Condition: The Hospital's controls in place for submitting expenses did not identify that several invoices and related expense amounts were duplicated in the addendum to the period 1 submission. As a result, period 1 addendum submission included expenses that were deemed una...

Finding Number: 2023-001 Condition: The Hospital's controls in place for submitting expenses did not identify that several invoices and related expense amounts were duplicated in the addendum to the period 1 submission. As a result, period 1 addendum submission included expenses that were deemed unallowable as they had already been utilized to support funding received. Reimbursement for, the original period 1 submission contained retention bonus costs that exceeded 20% of total funds awarded. Planned Corrective Action: The Hospital will review its processes surrounding submission of expenses to MHA and implement additional layers of review. Contact person responsible for corrective action: Brenda Winn and Alex Roehling Anticipated Completion Date: 9/30/2023

View Audit 8819

Finding 6838 (2023-002)

Significant Deficiency 2023

Minnesota Land Trust

MN

Cash Management Subrecipient Monitoring Matching / Level of Effort / Earmarking § 200.305

Recommendation: We recommend that Minnesota Land Trust adopt a written advance payment policy which includes all requirements of 2 CFR section 200.305. Actions to be Taken: The Minnesota Land Trust will adopt a written Advance payment policy that is consistent with the standards of 2 CFR section 200...

Recommendation: We recommend that Minnesota Land Trust adopt a written advance payment policy which includes all requirements of 2 CFR section 200.305. Actions to be Taken: The Minnesota Land Trust will adopt a written Advance payment policy that is consistent with the standards of 2 CFR section 200.305. Timeline for Completion: An Advance Payment Policy will be adopted by December 31, 2023. Contact person responsible for corrective action: Claire Colliander

View Audit 8763

Finding 6667 (2023-001)

Significant Deficiency 2023

The Art Institute of Chicago

IL

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

THE ART INSTITUTE OF CHICAGO Corrective Action Plan For the Year Ended June 30, 2023 2023-001 Inadequate Control over Return of Title IV Funds- Student Financial Aid Cluster -Assistance Listing Number 84.063, 84.268, Grant Period -Year Ended June 30, 2023. Condition Found The Institution did not acc...

THE ART INSTITUTE OF CHICAGO Corrective Action Plan For the Year Ended June 30, 2023 2023-001 Inadequate Control over Return of Title IV Funds- Student Financial Aid Cluster -Assistance Listing Number 84.063, 84.268, Grant Period -Year Ended June 30, 2023. Condition Found The Institution did not accurately calculate the return of Title IV funds and return the funds in a timely manner, as required by the federal regulations. Cause The Institute did not consistently implement its internal controls to ensure that the return of Title IV funds was correctly calculated and reported in a timely manner. Corrective Action Plan The Art Institute of Chicago has updated all student accounts and returned all funds. The Student Financial Services office will implement two additional procedures to the withdrawal/R2T4 process to ensure that they are processed accurately and timely. 1. A weekly Complete Withdrawal report will be run in PeopleSoft Campus Solutions and reviewed by the Associate Director of Financial Aid Processing. The report lists all students who have fully withdrawn after the add/drop period and through the end of the semester. The Associate Director will compare the list to the R2T4s that have been completed to identify and confirm that all R2T4s have been completed timely for all withdrawn recipients of federal student aid. 2. The Director of Student Financial Services, or an appropriately trained staff person as assigned, will perform a review of all completed R2T4 forms. This review will be conducted to ensure that the calculations are correct and that the adjustments to any federal funds as determined by the R2T4 calculations have been input correctly in PeopleSoft Campus Solutions. Documentation of the review of each R2T4 from the semester will be maintained on a spreadsheet by the Director of Student Financial Services. Responsible Persons for Corrective Action Plan Patrick James, Director of Student Financial Services Sherman Lee, Associate Director of Financial Aid Processing Implementation Date of Corrective Action Plan Immediately

View Audit 8642

Finding 6641 (2023-003)

None 2023

Town of Canton

MA

Questioned Costs Allowable Costs / Cost Principles Matching / Level of Effort / Earmarking § 200.430

Condition: Semi-annual time and effort certifications were not maintained for a grant employee whose salaries and wages were not supported by detailed time records. Corrective Action Planned: Management is aware of the missing time and effort certifications for the single grant employee. This err...

Condition: Semi-annual time and effort certifications were not maintained for a grant employee whose salaries and wages were not supported by detailed time records. Corrective Action Planned: Management is aware of the missing time and effort certifications for the single grant employee. This error was in part due to the transition of both the Payroll Coordinator and Budget Analyst positions within Canton Public Schools. Controls have been put in place to ensure all time and effort certifications are completed and submitted to the business office in a timely manner. Anticipated Completion Date: Completed Contact: Stephen Marshall, Assistant Superintendent of Finance & Operations

View Audit 8590 Questioned Costs: $1

Finding 6627 (2023-004)

Material Weakness 2023

Independent School District 2170

MN

Matching / Level of Effort / Earmarking Internal Control / Segregation of Duties Special Tests & Provisions

Contact Person – Shane Tappe, Superintendent Corrective Action Plan – The District will review and update processes over wage rate requirements. The District will not pay contractors with federal funds until the proper wage statements are received. The Superintendent will review and sign off on all ...

Contact Person – Shane Tappe, Superintendent Corrective Action Plan – The District will review and update processes over wage rate requirements. The District will not pay contractors with federal funds until the proper wage statements are received. The Superintendent will review and sign off on all construction payments. Completion Date – December 20, 2023

View Audit 8583

Finding 6548 (2023-015)

Material Weakness 2023

State of New York

NY

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

State Agency: Office of Mental Health Single Audit Contact: April Wojtkiewicz Title: Director, Office of Community Budget & Financial Management Telephone: 518-474-5968 E-mail Address: April.Wojtkiewicz@omh.ny.gov Federal Program(s) (ALN # [s]): Block Grants for Community Mental Health Services (93....

State Agency: Office of Mental Health Single Audit Contact: April Wojtkiewicz Title: Director, Office of Community Budget & Financial Management Telephone: 518-474-5968 E-mail Address: April.Wojtkiewicz@omh.ny.gov Federal Program(s) (ALN # [s]): Block Grants for Community Mental Health Services (93.958) Audit Report Reference: 2023-015 Anticipated Completion Date: SFY 2024-25 Corrective Action Planned: The Office of Mental Health (OMH) agrees with, and has already partially implemented, this recommendation. While OMH has always maintained the underlying supporting detail for the maintenance of effort (MOE) submission, the source data for the calculation was not static and therefore could not be reconciled to the MOE for historical record keeping purposes. For the submission completed on 11/15/2023, OMH ensured that that static data was maintained. Additionally, OMH will enhance its written policies, procedures, and/or internal controls in SFY2024-25 to include additional understanding of the MOE data collection and reporting process, and to ensure that the sources of the data be maintained to support the calculation of the MOE requirement for each grant.

View Audit 8503

Finding 6543 (2023-010)

Material Weakness 2023

State of New York

NY

Eligibility Period of Performance Reporting § 200.303

State Agency: Office of Children and Family Services Single Audit Contact: Bonnie Hahn Title: External Audit Liaison Telephone: 518-486-1034 E-mail Address: Bonnie.Hahn@ocfs.ny.gov Federal Program(s) (ALN # [s]): Rehabilitation Services-Vocational Rehabilitation Grants to States (84.126) Audit Repor...

State Agency: Office of Children and Family Services Single Audit Contact: Bonnie Hahn Title: External Audit Liaison Telephone: 518-486-1034 E-mail Address: Bonnie.Hahn@ocfs.ny.gov Federal Program(s) (ALN # [s]): Rehabilitation Services-Vocational Rehabilitation Grants to States (84.126) Audit Report Reference: 2023-010 Anticipated Completion Date: January 15, 2024 Corrective Action Planned: New York State Commission for the Blind (NYSCB) is updating the Internal Controls and Data Validation policy for the RSA 911 report to implement an additional control to ensure the accuracy of the key elements including ‘Start date of Employment in Primary Occupation’ #350. The Senior Vocational Rehabilitation Counselor (VRC) will review the start date for employment during their review of cases when the Individualized Plan for Employment (IPE) is approved and at the time of successful closure. The Senior VRC will also verify that the employment start date is entered and accurate on the employment information form in the case management system. Training on this additional internal control will be provided to the Senior Vocational Rehabilitation Counselor’s and District Managers virtually on December 11, 2023. State Agency: State Education Department Single Audit Contact: Jeanne Day Title: Auditor 3 Telephone: 518-474-5919 E-mail Address: Jeanne.Day@nysed.gov Federal Program(s) (ALN # [s]): Rehabilitation Services - Vocational Rehabilitation Grants to States (84.126) Audit Report Reference: 2023-010 Anticipated Completion Date: December 2023 Corrective Action Planned: Adult Career and Continuing Education – Vocational Rehabilitation (ACCES-VR) will continue to implement and document review processes and methods. The implementation of the Aware electronic case management system is complete and will enhance the agency’s review process. A review process memo is currently in development related to Testing and will clearly document the scope and requirements associated with the review process.

View Audit 8503

Finding 6542 (2023-009)

Significant Deficiency 2023

State of New York

NY

Internal Control / Segregation of Duties Allowable Costs / Cost Principles Matching / Level of Effort / Earmarking § 200.303

State Agency: Higher Education Services Corporation Single Audit Contact: Dora Diaz-Crowe Title: Director, Audit Division Telephone: (518) 474-8893 E-mail Address: dora.diaz-crowe@hesc.ny.gov Federal Program(s) (ALN # [s]): Federal Family Education Loans (Guaranty Agencies) (84.032) Audit Report Ref...

State Agency: Higher Education Services Corporation Single Audit Contact: Dora Diaz-Crowe Title: Director, Audit Division Telephone: (518) 474-8893 E-mail Address: dora.diaz-crowe@hesc.ny.gov Federal Program(s) (ALN # [s]): Federal Family Education Loans (Guaranty Agencies) (84.032) Audit Report Reference: 2023-009 Corrective Action Planned: Higher Education Services Corporation (HESC) assumes full responsibility for ensuring employees are offboarded timely and will ensure prompt notification to Information Technology Services (ITS) to deprovision these accounts occur timely. Internally, we will work to develop a process, with procedures, to ensure the notification meets a set timeframe. While we have no control over when or how ITS performs the deprovisioning, we will include a procedure to confirm the deprovisioning has occurred as requested. HESC will work with ITS to develop a timeline for deprovisioning and include a procedure to confirm the deprovisioning has occurred within the timeframe. While HESC did not perform a periodic user access review over the Guaranteed Student Loans (GSL), HESC performed this process manually until a decision was made to automate the process. Forced by the pandemic, that system was not available until May 2023; one month after the audit scope. HESC conducted the recertifications, using the new system, in late May and early June 2023. Going forward, we will establish a process, including written procedures, to perform periodic access reviews over our systems with ITS. We will assign responsibility for this task either to Internal Audit or the Internal Controls Unit. The Electronic Financial Network (EFAN) procedures was provided detailing out how these users would be granted access. EFAN established the rules for external constituents accessing HESC systems. The provisioning of access to view the screens was handled through ITS Accounts Management; access was read-only thereby ensuring no data could be overwritten. Additionally, if a user did not access the system within a certain time, their access was automatically terminated. Given that HESC has exited the FFELP, we will no longer be involved with external users accessing the DMCS application and the issue related to this application will no longer exist.

View Audit 8503

Finding 6541 (2023-008)

Significant Deficiency 2023

State of New York

NY

Matching / Level of Effort / Earmarking Special Tests & Provisions Allowable Costs / Cost Principles

State Agency: Higher Education Services Corporation Single Audit Contact: Dora Diaz-Crowe Title: Director, Audit Division Telephone: (518) 474-8893 E-mail Address: dora.diaz-crowe@hesc.ny.gov Federal Program(s) (ALN # [s]): Federal Family Education Loans (Guaranty Agencies) (84.032) Audit Report Ref...

State Agency: Higher Education Services Corporation Single Audit Contact: Dora Diaz-Crowe Title: Director, Audit Division Telephone: (518) 474-8893 E-mail Address: dora.diaz-crowe@hesc.ny.gov Federal Program(s) (ALN # [s]): Federal Family Education Loans (Guaranty Agencies) (84.032) Audit Report Reference: 2023-008 Corrective Action Planned: To ensure the timeliness of Teacher’s Loan Forgiveness (TLF) application review, eligibility determination, and the denial or payment of the claims, Higher Education Services Corporation (HESC) staff implemented a control in 2022 to monitor and track the claims through a TLF tracking spreadsheet. Applications were supposed to be logged into the spreadsheet when received by HESC; they were then reviewed, followed by a determination of eligibility or denial of a payment, and the date claim processed was entered into the spreadsheet. A Claims Unit supervisor was assigned the responsibility of monitoring the process, reviewing the spreadsheet, and following up on any outstanding TLF applications that did not capture payment or denial dates and were approaching the 45-day deadline. Unfortunately, due to loss of the supervisor position the review was not performed regularly. Moreover, due to staff turnover in 2022-23 driven by HESC’s exit from FFELP, the TLF payment monitoring procedures were not followed consistently in all cases.i While we recognize that this is a repeat finding, we note there was significant improvement, decreasing the number of late payments in the sample from 23% last year to 5% this year. We would also note that as of May of 2023, HESC transferred the majority of its FFELP loan portfolio to a successor Guaranty Agency, the Trellis Company. With this transfer, HESC no longer holds loans that would qualify for the TLF program and as of April 2023, no longer performs work on the TLF program. As such, the recommendation will not be implemented as indicated in the audit report. i On December 1, 2021, HESC provided notification to the Education Department (ED) of its intent to exit the Federal Family Education Loan Program (FFELP).

View Audit 8503

Finding 6540 (2023-007)

Significant Deficiency 2023

State of New York

NY

Allowable Costs / Cost Principles Special Tests & Provisions Procurement, Suspension & Debarment

State Agency: Department of Labor Single Audit Contact: Donald Temple Title: Director of Internal Audit and Control Telephone: (518) 457-7332 E-mail Address: Donald.Temple@labor.ny.gov Federal Program(s) (ALN # [s]): Unemployment Insurance (17.225) Audit Report Reference: 2023-007 Anticipated Comple...

State Agency: Department of Labor Single Audit Contact: Donald Temple Title: Director of Internal Audit and Control Telephone: (518) 457-7332 E-mail Address: Donald.Temple@labor.ny.gov Federal Program(s) (ALN # [s]): Unemployment Insurance (17.225) Audit Report Reference: 2023-007 Anticipated Completion Date: 6/1/2024 Corrective Action Planned: New York State Department of Labor (NYSDOL) continues to reduce pandemic era backlogs with ongoing and evolving strategic planning. In addition, staff training and internal workflow procedures have been updated to ensure staff and supervisors communicate clearly on cases well in advance of case closure deadlines. Furthermore, staffing the unit to the allowable fill level will be sought if sufficient funding permits new hires.

View Audit 8503

Finding 6473 (2023-003)

Significant Deficiency 2023

Detroit Transportation Corporation

MI

Subrecipient Monitoring Cash Management Significant Deficiency § 200.305

Federal funds payback has been completed as required by Federal Transit Authority, as of October 2023.

View Audit 8432

Finding 6450 (2023-004)

Significant Deficiency 2023

Doral Academy of Nevada

NV

Reporting Significant Deficiency Matching / Level of Effort / Earmarking § 200.303

Finding Number: 2023-004 Review and Approval Of the Schedule of Expenditures Of Federal Awards (SEFA) Corrective Action Plan: While there was a review of the SEFA, the documentation of said review did not occur properly. Management has put in place a process to document preparation/review of the ...

Finding Number: 2023-004 Review and Approval Of the Schedule of Expenditures Of Federal Awards (SEFA) Corrective Action Plan: While there was a review of the SEFA, the documentation of said review did not occur properly. Management has put in place a process to document preparation/review of the SEFA evidenced by signature and date. Personnel Responsible for Corrective Action: Nachum Golodner, Academica Director of Accounting Anticipated Completion Date: June 30, 2024

View Audit 8387

Finding 6444 (2023-001)

None 2023

Converse University

SC

Student Financial Aid Subrecipient Monitoring Reporting

The finding was due in part to the lack of a process to correctly backdate administrative withdrawals when a student is awarded a grade of W after the stated date. This resulted in inconsistent dates reported to NSLDS and in the academic file. Management has met to address this issue. The Offices...

The finding was due in part to the lack of a process to correctly backdate administrative withdrawals when a student is awarded a grade of W after the stated date. This resulted in inconsistent dates reported to NSLDS and in the academic file. Management has met to address this issue. The Offices of Campus Technology, Financial Planning and Registrar have met to discuss processes in place and create new methods by which administrative withdrawals will be handled going forward. Additionally, management is working with Jenzabar to ensure the dates are consistent with the withdrawal option, specifically the awarding of W grades and the related date of last attendance. This process will assist the University in the following ways: students will be reported on the NSLDS report in the appropriate timeframe, a uniform withdrawal date will be recorded in the Offices of the Registrar and Financial Planning and students receive the appropriate grade as indicated by the official academic calendar. This action has been implemented for the final grading period ending on Monday, December 11, 2023. Management will continue to submit enrollment reports to the NSLDS on the schedule submitted annually, ensuring that any changes to student enrollment will be reported as required. The corrective action plan will be undertaken by the Office of the Registrar, under the supervision of the University Registrar and Director of Institutional Research and Effectiveness, Kendra Woodson (Kendra.woodson@converse.edu).

View Audit 8384

Corrective Action Plans

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