Corrective Action Plans

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Individual(s) Responsible: Chelsea BadHawk, Chief Financial Officer Action: Management will prepare and implement an internal control system that provides effective oversight of operations, reporting, and compliance. The systems and controls will be designed based on standards set forth in the Go...
Individual(s) Responsible: Chelsea BadHawk, Chief Financial Officer Action: Management will prepare and implement an internal control system that provides effective oversight of operations, reporting, and compliance. The systems and controls will be designed based on standards set forth in the Government Accountability Office Green Book. Anticipated Completion Date: 12/31/2025.
Individual(s) Responsible: Chelsea BadHawk, Chief Financial Officer Action: Management will prepare and implement an internal control system that provides effective oversight of operations, reporting, and compliance. The systems and controls will be designed based on standards set forth in the Go...
Individual(s) Responsible: Chelsea BadHawk, Chief Financial Officer Action: Management will prepare and implement an internal control system that provides effective oversight of operations, reporting, and compliance. The systems and controls will be designed based on standards set forth in the Government Accountability Office Green Book. Anticipated Completion Date: 12/31/2025.
View Audit 361721 Questioned Costs: $1
Individual(s) Responsible: Chelsea BadHawk, Chief Financial Officer Action: Management will prepare and implement an internal control system that provides effective oversight of operations, reporting, and compliance. The systems and controls will be designed based on standards set forth in the Go...
Individual(s) Responsible: Chelsea BadHawk, Chief Financial Officer Action: Management will prepare and implement an internal control system that provides effective oversight of operations, reporting, and compliance. The systems and controls will be designed based on standards set forth in the Government Accountability Office Green Book. Anticipated Completion Date: 12/31/2025.
Finding 570503 (2022-003)
Significant Deficiency 2022
FINDING 2022-003 Information on federal program: Subject: Water and Waste Disposal Systems for Rural Communities - Reporting Federal Agency: U.S. Department of Agriculture Assistance Listing Number: 10.760 Federal Award Number: 92-02 92-03 Pass-Through Entity: N/A Compliance Requirements: Reporting ...
FINDING 2022-003 Information on federal program: Subject: Water and Waste Disposal Systems for Rural Communities - Reporting Federal Agency: U.S. Department of Agriculture Assistance Listing Number: 10.760 Federal Award Number: 92-02 92-03 Pass-Through Entity: N/A Compliance Requirements: Reporting Audit Findings: Significant Deficiency Condition: The City did not have proper controls in place to ensure that the annual report was accurately filled out and agreed to underlying detail. Context: Variances to key line items were noted when comparing the Form RD442-2 and Form RD442-3 to supporting documents. Views of Responsible Officials: We concur with the finding. Description of Corrective Action Plan: Management will ensure that reports agree to underlying detail. Responsible Party and Timeline for Completion: The Clerk-Treasurer is the responsible party. The completion will go into effect during 2025.
Finding 570502 (2022-002)
Significant Deficiency 2022
FINDING 2022-002 Information on federal program: Subject: Water and Waste Disposal Systems for Rural Communities - Equipment and Real Property Management Federal Agency: U.S. Department of Agriculture Assistance Listing Number: 10.760 Federal Award Number: 92-02 92-03 Pass-Through Entity: NIA Compli...
FINDING 2022-002 Information on federal program: Subject: Water and Waste Disposal Systems for Rural Communities - Equipment and Real Property Management Federal Agency: U.S. Department of Agriculture Assistance Listing Number: 10.760 Federal Award Number: 92-02 92-03 Pass-Through Entity: NIA Compliance Requirements: Equipment and Real Property Management Audit Findings: Significant Deficiency Condition: An effective internal control system was not in place at the City to ensure compliance with requirements related to the grant agreement and the Equipment and Real Property Management compliance requirement. Context: The City did not maintain an updated asset listing that reflects the construction in process balance related to the project funded with federal funds. Views of Responsible Officials: We concur with the finding. Description of Corrective Action Plan: Management will ensure that the capital asset listing is maintained throughout the year and CIP is tracked. Responsible Party and Timeline for Completion: The Clerk-Treasurer is the responsible party. The completion will go into effect during 2025.
2022-002 Late Single Audit Submissions Category: Material weakness in Internal Control and Material Noncompliance Condition: The Authority has not timely submitted the Single Audit Reporting Packages for the years ended June 30, 2021, and 2022. Management’s Response: Starting in FY 2024-2025, the Fi...
2022-002 Late Single Audit Submissions Category: Material weakness in Internal Control and Material Noncompliance Condition: The Authority has not timely submitted the Single Audit Reporting Packages for the years ended June 30, 2021, and 2022. Management’s Response: Starting in FY 2024-2025, the Finance Department will maintain detailed records of all payments made, deposits received, and the reimbursement and transfer processes. This approach ensures that all reports are completed in a timely manner. To strengthen internal control over accounts, disbursements, and fund entries, the LRA’s Finance Department will hire additional personnel. These new team members are responsible for updating and managing accounting records. Together, they have established a strict timeline for completing important tasks to ensure a clear and concise flow of funds. The workloads will be divided among the team, with specific responsibilities assigned for Accounts Receivable, Accounts Payable, Bank Reconciliation, and Bookkeeping. Some responsibilities are interlinked, allowing team members to support one another in the event of absence or the need for assistance and providing documents to the external audits for the Single Audits. Person in charge: Juan C. Rodriguez Rivera Accounting Official 787-705-7188 Juan.rodriguez@lra.pr.gov Implementation Date: FY 2024-2025
2022-001 Performance and Financial Reports Submissions Category – Material Weakness in Internal Control and Material Noncompliance Condition: The Authority did not comply with the submission due dates of the Federal Financial Reports established by the OEA in their Notice of Award. In addition, from...
2022-001 Performance and Financial Reports Submissions Category – Material Weakness in Internal Control and Material Noncompliance Condition: The Authority did not comply with the submission due dates of the Federal Financial Reports established by the OEA in their Notice of Award. In addition, from five reports examined to test compliance with due dates, the submission date could not be verified in four instances, including the Federal Financial Report. Management’s Response: Starting in FY 2024-2025, the Finance Department will maintain detailed records of all payments made, as well as the reimbursement and transfer processes. The LRA’s Finance Department will hire additional personnel to strengthen the internal control of its accounts, disbursements, and fund entries. The new team members will be task with updating and managing accounting records. Together, they have will develop a strict timeline for completing important tasks to ensure a concise and transparent flow of funds. Workloads will be divided, with specific responsibilities assigned to individual team members, including Accounts Receivable, Accounts Payable, Bank Reconciliation, and Bookkeeping. Some responsibilities are interconnected, allowing team members to support each other in case of absence or when assistance is needed. Person in charge: Juan C. Rodriguez Rivera Accounting Official 787-705-7188 Juan.rodriguez@lra.pr.gov Implementation Date: FY 2024-2025
FINDING #2022-001 LATE PAYMENT OF CONSTRUCTION COSTS FROM LOUISIANA HOUSING FINANCE AGENCY LOAN AND INELIBIBLE COSTS Recommendation: We recommend that the entity develop internal controls that will prevent this occurrence in the future. Views of Responsible Officials and Planned Corrective Action...
FINDING #2022-001 LATE PAYMENT OF CONSTRUCTION COSTS FROM LOUISIANA HOUSING FINANCE AGENCY LOAN AND INELIBIBLE COSTS Recommendation: We recommend that the entity develop internal controls that will prevent this occurrence in the future. Views of Responsible Officials and Planned Corrective Action: Management will adopt controls to prevent this in the future.
Monthly reconciliations are now completed for all journals, sub journals and accounts. Entry errors are adjusted each period to ensure that account and ledger totals are properly maintained and recorded. The monthly reconciliation of accounts and ledgers identified will minimize any future late fil...
Monthly reconciliations are now completed for all journals, sub journals and accounts. Entry errors are adjusted each period to ensure that account and ledger totals are properly maintained and recorded. The monthly reconciliation of accounts and ledgers identified will minimize any future late filings of required reports.
To ensure both subleases and master leases are obtained and properly uploaded to each tenant's electronic file, a standardized checklist is now used at lease signing and annual recertification. This process verifies that all required documents supporting rent reasonableness are collected and uploade...
To ensure both subleases and master leases are obtained and properly uploaded to each tenant's electronic file, a standardized checklist is now used at lease signing and annual recertification. This process verifies that all required documents supporting rent reasonableness are collected and uploaded to the tenant's electronic file. Monthly ROI (Release of Information) reports are reviewed to identify upcoming expirations and prompt timely recertifications. Recertification documentation is first reviewed by the Housing Administrative Supervisor for accuracy and completeness, followed by final review and approval from the Director of Housing.
The individual random client sample of 60 participants did not detect any duplications. However, as a new administrator we became aware of the duplicates as identified in the reconciliation provided to the auditors. The manual process used contributed to the duplications in ERA1 and ERA2. The duplic...
The individual random client sample of 60 participants did not detect any duplications. However, as a new administrator we became aware of the duplicates as identified in the reconciliation provided to the auditors. The manual process used contributed to the duplications in ERA1 and ERA2. The duplications do not appear to be more than the allowable limits. If United Way of Marion County, Inc. would take on such a large endeavor in the future the organization would invest in a digital system. As the new President & CEO, I did my own sampling from the paper applications and payments for examination and gain knowledge of how system change would provide improved internal controls.
Finding 564446 (2022-004)
Significant Deficiency 2022
Day One
RI
Management’s Planned Corrective Action: Disagree; There was an error in staff name and not billed to SAPC Substance Abuse Prevention and Control-CPS. Responsible Party: Beaulieu Accountancy Corporation, Accountant Completion Date: 9/25/2024
Management’s Planned Corrective Action: Disagree; There was an error in staff name and not billed to SAPC Substance Abuse Prevention and Control-CPS. Responsible Party: Beaulieu Accountancy Corporation, Accountant Completion Date: 9/25/2024
Finding 564445 (2022-003)
Significant Deficiency 2022
Day One
RI
Management’s Planned Corrective Action: Disagree: We have established a cost center or “Department” for each federal program that clearly identifies federal expenditures. Our funders request monthly copies of receipts and payment issued to verify expenses. Responsible Party: Beaulieu Accountancy Cor...
Management’s Planned Corrective Action: Disagree: We have established a cost center or “Department” for each federal program that clearly identifies federal expenditures. Our funders request monthly copies of receipts and payment issued to verify expenses. Responsible Party: Beaulieu Accountancy Corporation, Accountant Completion Date: 9/25/2024
Finding No. 2022-006: Inadequate System to Ensure Timely Filing and Review of Required Reports As the previous employees responsible for these functions did not perform them effectively, the organization now has such in place, whereas the timely filing and review of required reports (e.g., Federal F...
Finding No. 2022-006: Inadequate System to Ensure Timely Filing and Review of Required Reports As the previous employees responsible for these functions did not perform them effectively, the organization now has such in place, whereas the timely filing and review of required reports (e.g., Federal Financial Report (FFRs)) are now expected to be filed according to the prescribed deadline(s).
Federal Agency Name: Department of Agriculture Federal Assistance Listing #10.766 Program Name: Community Facilities Loan and Grants Cluster Finding Summary: The Medical Center does not have an internal control system designed to identify the reports that need to be filed with the USDA. In addition,...
Federal Agency Name: Department of Agriculture Federal Assistance Listing #10.766 Program Name: Community Facilities Loan and Grants Cluster Finding Summary: The Medical Center does not have an internal control system designed to identify the reports that need to be filed with the USDA. In addition, there is not a mechanism to ensure various reports are filed timely. Corrective Action Plan: Internal controls will be updated to have a formalized process established that identifies the three reports that need to be filed and the required due dates. We will have these reports reviewed and approved by the Board of Directors prior to submission. Responsible Individuals: Judy Monson, CFO; Nikki Lindsey, CEO Anticipated Completion Date: June 30, 2025
Finding 2022-003 Federal Agency Name Department of Agriculture Federal Assistance Listing #10.766 Program Name: Community Facilities Loan and Grants Cluster Federal Agency Name: Department of Treasury Federal Assistance Listing #21.027 Program Name: COVID 19 Coronavirus State and Local Fiscal Recove...
Finding 2022-003 Federal Agency Name Department of Agriculture Federal Assistance Listing #10.766 Program Name: Community Facilities Loan and Grants Cluster Federal Agency Name: Department of Treasury Federal Assistance Listing #21.027 Program Name: COVID 19 Coronavirus State and Local Fiscal Recovery Funds Finding Summary: Eide Bailly assisted in the preparation of our draft consolidated schedule of expenditures and federal awards and accompanying notes to the consolidated schedule of expenditures and federal awards. Corrective Action Plan: It is not cost effective to have an internal control system designed to provide for a complete and accurate schedule of expenditures and federal awards. We requested that our auditors, Eide Bailly LLP, assist in the preparation of the schedule of expenditures. We have designated a member of management to review the drafted schedule of expenditures. Responsible Individuals: Judy Monson, CFO; Nikki Lindsey, CEO Anticipated Completion Date: Ongoing
The Organization will establish policies and procedures to review grant expenditures for their cutoff and to make sure they are captured within the correct period.
The Organization will establish policies and procedures to review grant expenditures for their cutoff and to make sure they are captured within the correct period.
View Audit 356193 Questioned Costs: $1
The Energy program has been current on the required reporting since the referenced audit period. The program is aware of the grants' requirements now. Additionally, ORCCA plans to utilize grant tracker system with the ability to send reminders for important dates to avoid future delinquent reporting...
The Energy program has been current on the required reporting since the referenced audit period. The program is aware of the grants' requirements now. Additionally, ORCCA plans to utilize grant tracker system with the ability to send reminders for important dates to avoid future delinquent reporting that was experienced during the audit period. The system will be utilized by the program directors as well as finance team (Finance Director, Accounting Manager, Program Fiscal Compliance Coordinator) working with grants/directors. ORCCA's current process at the Energy program level has already improved to ensure proper documentation of eligibility. The Energy program director and staff are implementing this internal control at the program level to review the supporting documents and information and proper coding to the correct period. Responsible party: Bonnie Foroudi, Finance Director Estimated completion date: December 31, 2025
ORCCA's current process at the Energy program level has already improved to ensure proper documentation of eligibility. The Energy program director and staff are currently implementing this internal control at the program level to document the information and proper coding to the correct period. Re...
ORCCA's current process at the Energy program level has already improved to ensure proper documentation of eligibility. The Energy program director and staff are currently implementing this internal control at the program level to document the information and proper coding to the correct period. Responsible party: Bonnie Foroudi, Finance Director Estimated completion date: December 31, 2025
View Audit 356132 Questioned Costs: $1
ORCCA's current process at the Energy program level has improved to ensure proper documentation of eligibility, period of performance and earmarking. The Energy program director and staff are already implementing this internal control at the program level to document the information and proper codin...
ORCCA's current process at the Energy program level has improved to ensure proper documentation of eligibility, period of performance and earmarking. The Energy program director and staff are already implementing this internal control at the program level to document the information and proper coding to the correct period. Responsible party: Bonnie Foroudi, Finance Director Estimated completion date: December 31, 2025
View Audit 356132 Questioned Costs: $1
ORCCA's current process at the program level has improved to ensure proper documentation of eligibility. The Housing director and staff have implemented this internal control at the program level. The finance department's internal control (as noted earlier) is in place to ensure the payment requests...
ORCCA's current process at the program level has improved to ensure proper documentation of eligibility. The Housing director and staff have implemented this internal control at the program level. The finance department's internal control (as noted earlier) is in place to ensure the payment requests have sufficient supporting documentation. As for record retention, ORCCA hired additional temp workers to ensure completed transactions are filed timely with the goal of going paperless in the near future. Responsible party: Bonnie Foroudi, Finance Director Estimated completion date: December 31, 2025
ORCCA plans to utilize grant tracker system with the ability to send reminders for important dates to avoid future delinquent reporting that was experienced during the audit period. The system will be utilized by the program directors as well as the finance team (Finance Director, Accounting Manager...
ORCCA plans to utilize grant tracker system with the ability to send reminders for important dates to avoid future delinquent reporting that was experienced during the audit period. The system will be utilized by the program directors as well as the finance team (Finance Director, Accounting Manager, Program Fiscal Compliance Coordinator) working with grant directors. Responsible party: Bonnie Foroudi, Finance Director Estimated completion date: December 31, 2025
ORCCA is aware of the lack of documentation and internal control during the audit period due to various reasons, mainly short staffing and staff turnover, and has been working hard to prevent such occurrences. The Finance staff (Finance Director, Accounting Manager, Program Fiscal Compliance Coordin...
ORCCA is aware of the lack of documentation and internal control during the audit period due to various reasons, mainly short staffing and staff turnover, and has been working hard to prevent such occurrences. The Finance staff (Finance Director, Accounting Manager, Program Fiscal Compliance Coordinator) have already started communicating with program directors if any such issues are observed. Responsible party: Bonnie Foroudi, Finance Director Estimated completion date: December 31, 2025
TIMING OF AUDIT COMPLETION - SIGNIFICANT DEFICIENCY Federal Program Community Development Block Grant/Entitlement Grant ALN 14.218; passed through the County of Berks HOME Investment Partnership Program ALN 14.239; passed through the County of Berks Emergency Rental Assistance ALN 21.023; passed th...
TIMING OF AUDIT COMPLETION - SIGNIFICANT DEFICIENCY Federal Program Community Development Block Grant/Entitlement Grant ALN 14.218; passed through the County of Berks HOME Investment Partnership Program ALN 14.239; passed through the County of Berks Emergency Rental Assistance ALN 21.023; passed through the County of Berks Condition/Cause The 2022 financial statement audit was not completed until April of 2025. The significant increase in grant funding limited staff capacity to prepare for and provide information requested for the audit. For example, key reconciliations needed to support balances were not prepared by management prior to the audit. Recommendation We recommend that the Authority revisit job descriptions and staff capacity as well as evaluate needed training so that there is adequate time to gather and provide necessary audit information in a timely manner. Job descriptions should assign responsibility for this process, as well as provide a level of review for accountability. Management Response The Authority hired an assistant fiscal officer in the fall of 2021 and another assistant fiscal officer in the fall of 2022. As a result of the hiring, job responsibilities have been re-assigned and data gathering for future audits will occur in a timely manner.
Finding 555781 (2022-005)
Material Weakness 2022
The Auditors Office will take the lead on tracking and reporting on any future programs such as Coronavirus State and Local Fiscal Recovery Fund.
The Auditors Office will take the lead on tracking and reporting on any future programs such as Coronavirus State and Local Fiscal Recovery Fund.
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