Corrective Action Plans

Finding 16689 (2022-003)

Significant Deficiency 2022

FL

HUD Housing Programs Significant Deficiency Matching / Level of Effort / Earmarking

2022-003 Special Tests and Provisions ? Housing Quality Standards Section 8 Housing Voucher Cluster (Section 8): 14.871 Section 8 ? Housing Choice Vouchers 14.879 Mainstream Vouchers Significant Deficiency in Internal Control and Other Matter to be Reported Under the Uniform Guidance Condition: ...

2022-003 Special Tests and Provisions ? Housing Quality Standards Section 8 Housing Voucher Cluster (Section 8): 14.871 Section 8 ? Housing Choice Vouchers 14.879 Mainstream Vouchers Significant Deficiency in Internal Control and Other Matter to be Reported Under the Uniform Guidance Condition: Out of a total population of 166 failed inspections, 17 failed inspections were selected for testing in a statistically valid sample. Exceptions were noted as follows: ? 1 error where unit never passed inspection and the Authority continued to make HAP payments when the contract should have been abated. Recommendation: The Authority should more closely monitor failed inspections to make sure that any units that have not passed re-inspection are not issued HAP payments until all repairs are made, and the HAP contract is terminated for any unit for which the owner has not made repairs within the allowed timeframe. Ongoing staff training and timely management reviews should be utilized to ensure staff is aware of acceptable procedures. In addition, the Authority should review staffing levels, skill sets and case load. Action Taken: The Authority concurs with this finding and will establish more review, oversight and training for the staff responsible for these procedures and assure that HAP payments are properly abated when repairs are not made within the required timeframes.

View Audit 21308

Finding 16688 (2022-002)

Significant Deficiency 2022

Tallahassee Housing Authority

FL

HUD Housing Programs Eligibility Significant Deficiency

2022-002 Eligibility ? Tenant Files Section 8 Housing Voucher Cluster (Section 8): 14.871 Section 8 ? Housing Choice Vouchers 14.879 Mainstream Vouchers Significant Deficiency in Internal Control and Other Matter to be Reported Under the Uniform Guidance Repeat finding from June 30, 2021 as Findin...

2022-002 Eligibility ? Tenant Files Section 8 Housing Voucher Cluster (Section 8): 14.871 Section 8 ? Housing Choice Vouchers 14.879 Mainstream Vouchers Significant Deficiency in Internal Control and Other Matter to be Reported Under the Uniform Guidance Repeat finding from June 30, 2021 as Finding 2021-001 (initially reported June 30, 2010) Condition: Out of a total tenant population of approximately 2,100 tenants, 25 files were selected for testing. Exceptions were noted as follows: ? 1 error where the wrong amount was used to calculate tenant?s wage income. This had no effect on HAP rent. ? 1 error where overtime earnings was not included in calculating tenant?s wage income. This caused HAP rent to decrease by $11. ? 1 error where the utility allowance was calculated incorrectly. This caused the HAP rent to decrease by $61. ? 1 error where the prior year utility allowance schedule was used instead of the current year. This had no effect on HAP rent. ? 1 error where adoption subsidy benefits were calculated incorrectly as well as the amount excluded from income. This decreased HAP rent by $9. ? 1 error where $1,753 in unreimbursed medical expenses was carried forward from the prior year 50058 and file had no support for any medical expenses in current year. This decreased HAP rent by $22 ? 1 error where there was no EIV report in file In addition to the above, we noted the following during our new admissions testing (21 new admissions tested): ? 1 error where there was no signed 214 affidavit in the file for one member of the household Recommendation: The Authority should correct the deficiencies noted in the tested files and utilize an ongoing quality control review process on the entire tenant population to ensure proper compliance with the requirements related to tenant eligibility. Ongoing staff training and timely management reviews should be utilized to ensure staff is aware of acceptable procedures. In addition, the Authority should review staffing levels, skill sets and case load. Action Taken: The Authority concurs with this finding and has implemented a robust file review process, enhanced quality control procedures, and provided training on errors noted along with annual program training for all staff. The cited files were corrected.

View Audit 21308

Finding 16626 (2022-001)

Significant Deficiency 2022

Wake Forest University

NC

Questioned Costs Cash Management Eligibility § 200.303

Finding No. 2022-001: Allowability Corrective Action Planned The Uninsured Testing and Treatment Program ended as of March 31, 2022. As a result, Wake Forest has not implemented additional controls beyond the increased frequency at which we review accounts that are HRSA eligible and the increased ed...

Finding No. 2022-001: Allowability Corrective Action Planned The Uninsured Testing and Treatment Program ended as of March 31, 2022. As a result, Wake Forest has not implemented additional controls beyond the increased frequency at which we review accounts that are HRSA eligible and the increased education for our Financial Counseling Unit and Cash Control staff and leadership. In order to ensure compliance with future programs of this nature, Wake Forest will establish the controls necessary to review and monitor each account and ensure compliance is met with the program requirements. Each control will then be tested to ensure operating effectiveness.

View Audit 22102 Questioned Costs: $1

Finding 16613 (2022-002)

Significant Deficiency 2022

School District of Greenfield

WI

Procurement, Suspension & Debarment Matching / Level of Effort / Earmarking § 200.214

There is no disagreement with the finding. The District does have an appropriate Procurement, Suspension, and Debarment policy in place. The District has already begun reviewing policies and procedures to ensure that documentation related to suspension and debarment is consistently documented in acc...

There is no disagreement with the finding. The District does have an appropriate Procurement, Suspension, and Debarment policy in place. The District has already begun reviewing policies and procedures to ensure that documentation related to suspension and debarment is consistently documented in accordance with District policy.

View Audit 21088

Finding 16551 (2022-002)

Material Weakness 2022

City of Sandusky

OH

Allowable Costs / Cost Principles Reporting Matching / Level of Effort / Earmarking § 200.302 § 200.328 § 200.329

All federal Project and Expenditure reports were filed timely and all actual expenditures were also reported correctly according to the report overview page. This finding deals with the body of the report which incorrectly listed the Justice Center Project twice, with the obligation amount of $880,0...

All federal Project and Expenditure reports were filed timely and all actual expenditures were also reported correctly according to the report overview page. This finding deals with the body of the report which incorrectly listed the Justice Center Project twice, with the obligation amount of $880,00 listed for the project. This duplicated project has been removed from future reports. The finding noted for $175,741, once again has all the correct totals in project overview report, which should be the summation of the report. We have been rehiring staff with American Rescue Plan funds since 2021, and this has been an ongoing project. Once again, the report overview page lists the correct expenditures, however the body of the report has the project listed twice. This duplicated project has been removed from future reports. The reporting software gives a total of expenditures before you hit submit on each report, this total has always displayed the correct cumulative expenditure total. If projects were entered twice, the total expenditures should of been over by these dollar amounts, and they were not.

View Audit 21781

Finding 16548 (2022-003)

Significant Deficiency 2022

Madison Metropolitan School District

WI

Matching / Level of Effort / Earmarking Special Tests & Provisions

Views of Responsible Officials and Planned Corrective Actions: The District agrees with this finding. Building Services has implemented procedures to improve the contracting process going forward. A letter will accompany any contract purchase order awarded to external vendors which lays out the requ...

Views of Responsible Officials and Planned Corrective Actions: The District agrees with this finding. Building Services has implemented procedures to improve the contracting process going forward. A letter will accompany any contract purchase order awarded to external vendors which lays out the requirement for compliance with Davis Bacon Act (DBA) and sets expectations upon issuing a purchase order. Building Services employees are now required to enter a signifier in the Work Order system under description starting with DBA, which will allow for approvers to pay specific attention to the purchase order and confirm receipt of DBA certified payroll documentation. Building Services will require all invoices following the DBA requirements to include certified payroll reports as an attachment to the invoice, prior to approval of the invoice for payment.

View Audit 21329

Finding 16542 (2022-001)

Significant Deficiency 2022

Lehigh Valley Dual Language Charter School

PA

Allowable Costs / Cost Principles Reporting Significant Deficiency

Finding No. 2022-001 (Cost Segregation) Condition: The Charter School does not segregate federal grant expenditures within the accounting software instead choosing to track the expenditures for each grant in excel. During our audit, we found inconsistencies with where expenditures were reported in t...

Finding No. 2022-001 (Cost Segregation) Condition: The Charter School does not segregate federal grant expenditures within the accounting software instead choosing to track the expenditures for each grant in excel. During our audit, we found inconsistencies with where expenditures were reported in the excel spreadsheet and where they were recorded in the software. Recommendation: We recommend the School utilize a more appropriate software for fund accounting that will allow for the segregation of federal grant expenditures directly in the software using a distinct source code for each grant in accordance with the PDE Chart of Accounts. Corrective Action: Effective July 1, 2022, the School?s general ledger was transitioned from Intuit QuickBooks to Sage Intacct. Sage Intacct provides a more robust chart of accounts using a string of dimension codes which allows for detailed grant expenditure and revenue tracking; including details related to departments/ functions, funds, and both the accrual basis and modified accrual basis of accounting. We believe the new accounting system and chart of accounts will allow for the proper segregation of federal grant expenditures directly in the general ledger in accordance with the PDE Chart of Accounts. Person Responsible: Elsie Perez, CEO Proposed Completion Date: July 1, 2022

View Audit 20450

Finding 16538 (2022-002)

None 2022

New Brunswick Theological Seminary of the Reformed Church in America

NJ

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

Views of Responsible Officials and Corrective Action Planned: The Seminary is currently working on developing an Information Security Program in order to meet current and upcoming requirements of the Gramm-Leach-Bliley Act. The Seminary?s plan is to have this developed and implemented before Decembe...

Views of Responsible Officials and Corrective Action Planned: The Seminary is currently working on developing an Information Security Program in order to meet current and upcoming requirements of the Gramm-Leach-Bliley Act. The Seminary?s plan is to have this developed and implemented before December 9, 2022.

View Audit 20434

Finding 16537 (2022-001)

Material Weakness 2022

New Brunswick Theological Seminary of the Reformed Church in America

NJ

Student Financial Aid Reporting Special Tests & Provisions

Views of Responsible Officials and Corrective Action Planned: The Seminary hired a third-party financial aid servicer, Financial Aid Services, LLC (?FAS?) who will do the enrollment reporting as part of their contract. The FAS contract was signed May 2022 for the upcoming fiscal year 2022 to 2023. T...

Views of Responsible Officials and Corrective Action Planned: The Seminary hired a third-party financial aid servicer, Financial Aid Services, LLC (?FAS?) who will do the enrollment reporting as part of their contract. The FAS contract was signed May 2022 for the upcoming fiscal year 2022 to 2023. This contract was approved by the Administrative Council in May 2022. The Seminary?s current part-time financial aid coordinator sent out the April 2022 enrollment roster which included student status changes on October 17, 2022.

View Audit 20434

Finding 16323 (2022-004)

Material Weakness 2022

West Holt Memorial Hospital

NE

Special Tests & Provisions Cash Management Material Weakness § 200.327 § 200.328

Criteria: The Hospital must establish and maintain effective internal control over federal awards that provides reasonable assurance that the Hospital is managing the federal awards in compliance with federal statutes, regulations and terms and conditions of the federal award. 2 CFR 200.327 and 2 CF...

Criteria: The Hospital must establish and maintain effective internal control over federal awards that provides reasonable assurance that the Hospital is managing the federal awards in compliance with federal statutes, regulations and terms and conditions of the federal award. 2 CFR 200.327 and 2 CFR 200.328 require the auditee to collect financial information and monitor its activities under federal awards to assure compliance with applicable federal requirements and performance expectations are being achieved and report these items in accordance with program requirements. Terms and conditions of the federal award require the Hospital to maintain a reserve fund at specified balance levels. Condition: During 2022, the accounts that represented the reserve fund had a balance below that required by the loan resolution agreements and required deposits were not being made to restore the balances to required levels. Planned Corrective Action: Management agrees with the finding and will deposit required amounts into the reserve fund. Planned Completion Date: Ongoing Person Responsible: Jeremy Bauer, CEO

View Audit 22832

Finding 16320 (2022-005)

Material Weakness 2022

Town of Sullivan Sanitary District No. 1

WI

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

2022-005 Federal Procedure Manual Condition: Internal controls over federal grants should be in place to provide reasonable assurance that misstatement in the schedule of expenditures of federal awards would be prevented or detected. Criteria: Non-federal entities who receive federal or state gra...

2022-005 Federal Procedure Manual Condition: Internal controls over federal grants should be in place to provide reasonable assurance that misstatement in the schedule of expenditures of federal awards would be prevented or detected. Criteria: Non-federal entities who receive federal or state grants or have grant programs should have documented policies and procedures in place over grants and grant expenditures. Cause: The District does not have documented policies and procedures in place over grants and grant expenditures. Effect: Without documented policies and procedures, the internal control over federal grants is low, and the risk of misstatement in the schedule of expenditures of federal and state awards is high. Auditor's Recommendation: We recommend that the District works on written policies and procedures over grants and grant expenditures. Management Response: The District will work with their auditor to develop and adopt written grant procedures that are in accordance with the Uniform Guidance. Contact Person: Dawn Bauer Anticipated Completion: December 31, 2023

View Audit 22335

Finding 16244 (2022-001)

Significant Deficiency 2022

Northkey Community Care

KY

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

Northern Kentucky Mental Health ? Mental Retardation Regional Board, Inc. agrees with the finding and will complete necessary training with program employees regarding organizations established and required procedures along with the necessity of these procedures and the additional importance due to ...

Northern Kentucky Mental Health ? Mental Retardation Regional Board, Inc. agrees with the finding and will complete necessary training with program employees regarding organizations established and required procedures along with the necessity of these procedures and the additional importance due to federal program requirements.

View Audit 22999

Finding 16164 (2022-001)

None 2022

The Homeless Alliance, Inc.

OK

Subrecipient Monitoring Special Tests & Provisions Matching / Level of Effort / Earmarking § 200.334

Finding ? 2022-001 ? Inadequate Records Retention Federal AL# 14.241 ? Housing Opportunities for Persons with AIDS Criteria: Financial records, supporting documents, statistical records, and all other non-Federal entity records pertinent to a Federal award must be retained for a period of three year...

Finding ? 2022-001 ? Inadequate Records Retention Federal AL# 14.241 ? Housing Opportunities for Persons with AIDS Criteria: Financial records, supporting documents, statistical records, and all other non-Federal entity records pertinent to a Federal award must be retained for a period of three years from the date of submission of the final expenditure report or, for Federal awards that are renewed quarterly or annually, from the date of the submission of the quarterly or annual financial report, respectively, as reported to the Federal awarding agency or pass-through entity in the case of a subrecipient (2 CFR ?200.334). Condition: Documentation supporting the Housing Quality Standards inspections to ensure housing met quality standards listed in 24 CFR ?574.310(b)(1)-(2) for the special tests and provisions compliance requirement for AL# 14.241 was missing. Cause and Effect: Policies and procedures regarding records retention is not in accordance with 2 CFR ?200.334 as it does not explicitly state a time period for records retention. As a result, events occurred during the year with no records retained as support. Recommendation: We recommend management update the written records retention policies and procedures to include a time period that is in accordance with 2 CFR ?200.334 and then communicate that policy to all employees to following during the daily course of operations. Additionally, we recommend an annual review of the policies and procedures to ensure continued compliance with 2 CFR ?200.334. Management?s Response: Homeless Alliance management agrees with the finding. Finding 2022-00 1 Response and Corrective Action In conjunction with our FY22 annual audit, please see the agency's corrective action plan below: Condition: Documentation supporting the Housing Quality Standards inspections to ensure housing met quality standards listed in 24 CFR ?574.3 10(b)(1)-(2) for the special tests and provisions compliance requirement for AL# 14.241 was missing. Corrective action: The agency has hired a full time compliance specialist for the program in which the finding occurred. The compliance specialist will be responsible for ensuring that all required documentation is retained appropriately. Moreover, agency management will update our written records retention policy to include a time period that is in accordance with 2 CFR 200.334 and communicate that policy to all employees. An annual management review of the agency's records retention policy will also be implemented. Expected completion date: June 30, 2023 Party Responsible: Haley Phelps Contact information: 405-415-8410 hphelps@homelessalliance.org

View Audit 21392

Finding 16113 (2022-015)

Material Weakness 2022

State of Washington C/o Office of Financial Management

WA

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

Finding: The Office of Financial Management did not have adequate internal controls over and did not comply with reporting requirements for the Coronavirus Relief Fund. Questioned Costs: Assistance Listing # 21.019 COVID-19 Amount $0 Status: Corrective action complete Corrective Action: ...

Finding: The Office of Financial Management did not have adequate internal controls over and did not comply with reporting requirements for the Coronavirus Relief Fund. Questioned Costs: Assistance Listing # 21.019 COVID-19 Amount $0 Status: Corrective action complete Corrective Action: The Office had controls in place for the Coronavirus Relief Fund (CRF) reporting requirements to ensure reported amounts, including corrections or adjustments made during the reporting period, were properly tracked and documented for subsequent reporting cycles. The Office performed continual monitoring of CRF expenditures to ensure the total grant expenditures reported were complete and accurate. The Office?s Statewide Accounting staff took over the responsibility for reviewing and certifying cycle 8 to 10 reports. Each report was reviewed prior to submission and documentation of the review was adequately maintained. The review ensured amounts submitted on the reports reconciled to supporting documentation provided by agencies at the time the reports were prepared. However, system issues in the federal reporting system created challenges in documenting changes to the templates as errors appeared and were subsequently corrected for the reporting cycle. For the final cycle 10 report, the Office ensured the cumulative amounts on the CRF report were supported by the underlying accounting records and performed a complete reconciliation of expenditures to the totals reported for each expenditure category. All revisions and resubmissions of the final report were completed in cycle 10. No additional revisions are required at this time. The final report was submitted in January 2023 and the grant is in its closeout phase. The Office considers this issued resolved. The conditions noted in this finding were previously reported in finding 2021-014. Completion Date: January 2023 Agency Contact: Brian Tinney Statewide Accounting Director PO Box 43127 Olympia, WA 98504-3127 (564) 999-1781 brian.tinney@ofm.wa.gov

View Audit 23129

Finding 16107 (2022-006)

Material Weakness 2022

State of Washington C/o Office of Financial Management

WA

Subrecipient Monitoring Internal Control / Segregation of Duties Special Tests & Provisions

Finding: The Employment Security Department did not have adequate internal controls over and did not comply with federal requirements to conduct case reviews for the Benefit Accuracy Measurement program of the Unemployment Insurance program in a timely manner. Questioned Costs: Assistance Listin...

Finding: The Employment Security Department did not have adequate internal controls over and did not comply with federal requirements to conduct case reviews for the Benefit Accuracy Measurement program of the Unemployment Insurance program in a timely manner. Questioned Costs: Assistance Listing # 17.225 17.225 COVID-19 Amount $0 Status: Corrective action in progress Corrective Action: Historically, the Benefit Accuracy Measurement (BAM) unit has been challenged to maintain full levels of staffing. Staff turnover, long training requirements, and unique skill sets make these positions difficult to maintain. The BAM Unit currently has one vacancy and is expected to have more with upcoming retirements. The Department is currently in a hiring freeze for Unemployment Insurance administrative funding, furthering the challenge to fully staff the unit and meet program requirements. Once the hiring freeze is lifted, the unit will fill the vacant position. The Department anticipates the unit will meet federally mandated timelines for case reviews when the unit is fully staffed and trained. The Department continues to partner and frequently communicate with the U.S. Department of Labor (USDOL) Regional Offices to discuss staffing and training models. The Quality Assurance Manager and the Case Review Supervisor are committed to routinely monitor caseload, workload, and the overall assurance of meeting the BAM operations performance goals and measures as set forth by USDOL. The conditions noted in this finding were previously reported in findings 2021-005 and 2020-011. Completion Date: Estimated June 2024 Agency Contact: Jay Summers External Audit Manager PO Box 9046 Olympia, WA 98507-9046 (360) 529-6718 Joshua.Summers@esd.wa.gov

View Audit 23129

Finding 16103 (2022-004)

Significant Deficiency 2022

City of Placenita

CA

Reporting Matching / Level of Effort / Earmarking Special Tests & Provisions

Views of responsible officials and planned corrective actions: City management agrees with this finding. Due to the fact that the awarded amount was based on lost revenues, there was a misinterpretation regarding the appropriate reporting procedure for this matter. The City has submitted the correct...

Views of responsible officials and planned corrective actions: City management agrees with this finding. Due to the fact that the awarded amount was based on lost revenues, there was a misinterpretation regarding the appropriate reporting procedure for this matter. The City has submitted the corrected Project and Expenditure Report in its latest iteration and understands the correct reporting procedure going forward.

View Audit 22947

Finding 16101 (2022-002)

Material Weakness 2022

George Corley Wallace State Community College

AL

Cash Management Reporting Matching / Level of Effort / Earmarking § 200.305

Section III-Federal Awards Findings and Questioned Costs 2022-002 coy10-12 Higher Education Emergency Relief t'und fHEERF} Condition: Criteria: Repeat finding. The College did not have adequate internal controls in place to ensure proper record keeping for grant funds. U. S. Department of Education ...

Section III-Federal Awards Findings and Questioned Costs 2022-002 coy10-12 Higher Education Emergency Relief t'und fHEERF} Condition: Criteria: Repeat finding. The College did not have adequate internal controls in place to ensure proper record keeping for grant funds. U. S. Department of Education cash management requirements are consistent with 2 CFR 200.305 which requires a grantee minimize the time elapsing between the transfer of funds from the United States Treasury and the disbursement by the non-Federal entity. According to the Higher Education Emergency Relief Fund (HEERF) II Frequently Asked Questions (FAQ) #17, grantees must pay the incurred obligation (liquidate) within 3 calendar days for HEERF ALN 84.425F (Institutional Portion) and within 15 days for HEERF ALN 84.425E (Student Portion) of receiving the funds. The design and implementation of proper internal controls and the corresponding proper record keeping procedures are essential to comply with cash management requirements. Cause: Effect: Recommendation: Views of Responsible Officials: Corrective Action Plan: It was determined that the College drew down funds expended under both ALN 84.425E and ALN 84.425F from the wrong grants management system accounts. A portion of expenses for ALN 84.425E were drawn from and/or were recorded to the sub-fund for ALN 84.425F and a portion of expenses for ALN 84.425F were drawn from and/or were recorded to the sub-fund for ALN 84.425E. This incorrect recording resulted in substantial positive cash balances reported during the fiscal year under ALN 84.425F which were mostly offset with substantial negative cash balances reported under ALN 84.425E. However, at one point during the fiscal year, this incorrect reporting and drawing down of funds resulted in an overall substantial cash balance recorded for the combined funds." Due to a lack of properly designed and implemented internal controls, even though based on our test, there were no repeat instances of the College drawing down funds from the wrong grants, it was determined that the College has not put proper controls in place as of September 30, 2022 to sufficiently eliminate this finding in the current audit period. The College should design and implement internal controls to ensure proper record keeping for grant funds and monitor cash balances by individual grants. Management agrees with this finding and has taken corrective action. The College will ensure that employees who are responsible for the administration of the Higher Education Emergency Relief Fund (HEERF) grants are properly trained on allowable uses of those funds and on correct administrative procedures relating to the administration of these funds. This will be accomplished individually through training and education via various sources, including the U.S. Department of Education's published guidance and previously provided guidance from the Alabama Community College System. In addition to this training, additional internal control processes will be implemented to ensure that HEERF grant funds comply with cash management requirements and are liquidated within the prescribed timeframe. Additional review and approval procedures will be implemented to ensure that funds are drawn down from the correct grants management system accounts. These internal control processes, procedures and training will ensure proper record keeping for grant funds and proper monitoring of cash balances by individual grants.

View Audit 22310

Finding 16095 (2022-002)

Material Weakness 2022

South San Francisco Unified School District

CA

Questioned Costs Equipment & Real Property Management Procurement, Suspension & Debarment

Due to the need to get the hotspots out to the students quickly for virtual learning during the pandemic, staff was not able to maintain very good record-keeping of the devices distributed, which is required to meet the very strict requirements of this new grant funding. For similar grants in the fu...

Due to the need to get the hotspots out to the students quickly for virtual learning during the pandemic, staff was not able to maintain very good record-keeping of the devices distributed, which is required to meet the very strict requirements of this new grant funding. For similar grants in the future, a designated individual will be assigned to oversee the distribution of devices at all sites in the district to ensure they are maintaining the required information.

View Audit 19597 Questioned Costs: $1

Finding 16082 (2022-002)

Significant Deficiency 2022

State of Washington C/o Office of Financial Management

WA

Subrecipient Monitoring Internal Control / Segregation of Duties Special Tests & Provisions § 200.1

Finding: The University of Washington did not have adequate internal controls to ensure key personnel commitments specified in grant proposals or awards were met. Questioned Costs: Assistance Listing # Various Amount $0 Status: Corrective action in progress Corrective Action: The Univer...

Finding: The University of Washington did not have adequate internal controls to ensure key personnel commitments specified in grant proposals or awards were met. Questioned Costs: Assistance Listing # Various Amount $0 Status: Corrective action in progress Corrective Action: The University has established internal controls to ensure compliance with key personnel program requirement through time and effort certifications, project reporting processes, and budget reconciliation requirements. Additionally, the University offers multiple training courses to research administrators and principal investigators (PI) on management of sponsored awards. The University agrees there are areas for improvement over staff and PI training, and resources available to monitor contribution and documentation of committed levels of time and effort. The University will implement the following improvements: ? Update training materials and provide additional training to PIs and key personnel on: o Documentation of time and effort. o Prior approval requirements for reductions in time and effort. ? Update guidance and instructions for time and effort certifications to ensure all personnel involvement in various grant programs is properly accounted for during the certification process. ? Develop exception reports to provide additional oversight to monitor deviations from committed time and effort for PIs and key personnel. Completion Date: Estimated February 2024 Agency Contact: Erick Winger Controller 4300 Roosevelt Way NE Seattle, WA 98195 (206) 543-5322 erickw@uw.edu

View Audit 23129

Finding 16064 (2022-068)

Material Weakness 2022

State of Washington C/o Office of Financial Management

WA

Questioned Costs Allowable Costs / Cost Principles Subrecipient Monitoring § 200.1 § 200.410

Finding: The Health Care Authority did not have adequate internal controls over and did not comply with requirements to ensure it met the earmarking requirement for the Block Grants for Prevention and Treatment of Substance Abuse. Questioned Costs: Assistance Listing # 93.959 93.959 COVID-19...

Finding: The Health Care Authority did not have adequate internal controls over and did not comply with requirements to ensure it met the earmarking requirement for the Block Grants for Prevention and Treatment of Substance Abuse. Questioned Costs: Assistance Listing # 93.959 93.959 COVID-19 Amount $661 Status: Corrective action in progress Corrective Action: The Federal Financial Reporting unit will update procedures for preparing monthly earmarking tracking workbooks to ensure the Authority does not exceed the maximum allowable amount for administrative costs. The procedures will also include management review and approval of the earmarking tracking workbooks. The Authority processed subsequent adjustments reducing the administrative costs charged to the grant, which the auditors did not take into consideration. The Authority does not concur with the questioned costs identified in the audit and will confirm with the federal grantor that the questioned costs do not need to be repaid. The conditions noted in this finding were previously reported in finding 2021-056. Completion Date: Estimated September 2023 Agency Contact: William Sogge, CPA External Audit Liaison PO Box 45502 Olympia, WA 98504-5502 (360) 725-5110 william.sogge@hca.wa.gov

View Audit 23129 Questioned Costs: $1

Finding 16063 (2022-067)

Material Weakness 2022

State of Washington C/o Office of Financial Management

WA

Questioned Costs Allowable Costs / Cost Principles Subrecipient Monitoring § 200.1 § 200.410 § 200.502

Finding: The Health Care Authority did not have adequate internal controls over and did not comply with requirements to ensure payments to providers for the Block Grants for Prevention and Treatment of Substance Abuse program were allowable and met period of performance requirements. Questioned ...

Finding: The Health Care Authority did not have adequate internal controls over and did not comply with requirements to ensure payments to providers for the Block Grants for Prevention and Treatment of Substance Abuse program were allowable and met period of performance requirements. Questioned Costs: Assistance Listing # 93.959 93.959 COVID-19 Amount $19,959,714 Status: Corrective action in progress Corrective Action: The Authority partially concurs with the audit recommendations. The Authority concurs that expenditures for indirect charges were applied to the award, through the Authority?s cost allocation system, for activities that occurred after the period of performance. The Authority will develop written procedures to review allocation bases at the end of a grant period. The Authority does not concur with the audit exceptions related to two accruals recorded in the accounting system before the period of performance. As noted by the auditors, no payments were made on these accruals. The period of performance of the grant extends beyond the end of the state?s fiscal year. Invoices for the program continue to be received after fiscal year end and the cut-off date for reporting on the Schedule of Expenditures of Federal Awards. Staff review payments for grant allowability based on service month when invoices are received. The Authority does not concur with the questioned costs related to the year-end accruals and will verify with the grantor that questioned costs do not need to be repaid. The year-end accruals were solely recorded as estimates and were not used to make any program payments or draw funds from the grantor. While the year-end accruals may include some amounts beyond the state fiscal year, questioning the year-end accruals in their entirety is an overstatement of any potential error that was made. The Authority will update procedures for calculating year-end accruals to: ? Maintain all supporting documentation used to calculate the year-end accrual transactions. ? Maintain a workbook to calculate estimated expenditures to be accrued for the fiscal year. The conditions noted in this finding were previously reported in findings 2021-057 and 2020-059. Completion Date: Estimated September 2023 Agency Contact: William Sogge, CPA External Audit Liaison PO Box 45502 Olympia, WA 98504-5502 (360) 725-5110 william.sogge@hca.wa.gov

View Audit 23129 Questioned Costs: $1

Finding 16049 (2022-066)

Material Weakness 2022

State of Washington C/o Office of Financial Management

WA

Subrecipient Monitoring Allowable Costs / Cost Principles Matching / Level of Effort / Earmarking § 200.208 § 200.332 § 200.339 § 200.501 § 200.513

Finding: The Health Care Authority did not have adequate internal controls over and did not comply with federal requirements to ensure subrecipients of the Block Grants for Community Mental Health Services program and the Block Grants for Prevention and Treatment of Substance Abuse program received...

Finding: The Health Care Authority did not have adequate internal controls over and did not comply with federal requirements to ensure subrecipients of the Block Grants for Community Mental Health Services program and the Block Grants for Prevention and Treatment of Substance Abuse program received required single audits, and that it appropriately followed up on findings and issued management decisions. Questioned Costs: Assistance Listing # 93.958 93.958 COVID-19 93.959 93.959 COVID-19 Amount $0 Status: Corrective action in progress Corrective Action: The Authority concurs with the finding. The Authority will: ? Follow established procedures related to the agency-wide monitoring of subrecipients? single audits. ? Issue management decision letters for findings subrecipients received related to programs that are funded by the Authority?s pass-through federal funding. ? Evaluate corrective actions to ensure subrecipients adequately address audit recommendations. Completion Date: Estimated July 2023 Agency Contact: William Sogge, CPA External Audit Liaison PO Box 45502 Olympia, WA 98504-5502 (360) 725-5110 william.sogge@hca.wa.gov

View Audit 23129

Finding 16046 (2022-063)

Material Weakness 2022

State of Washington C/o Office of Financial Management

WA

Questioned Costs Subrecipient Monitoring Allowable Costs / Cost Principles § 200.1 § 200.410 § 200.52

Finding: The Health Care Authority did not have adequate controls over and did not comply with requirements to ensure payments to providers for the Block Grants for Community Mental Health Services were allowable and met period of performance requirements. Questioned Costs: Assistance Listing # ...

Finding: The Health Care Authority did not have adequate controls over and did not comply with requirements to ensure payments to providers for the Block Grants for Community Mental Health Services were allowable and met period of performance requirements. Questioned Costs: Assistance Listing # 93.958 93.958 COVID-19 Amount $8,668,982 Status: Corrective action in progress Corrective Action: The Authority partially concurs with the audit recommendations. The Authority will: ? Maintain all supporting documentation used to calculate the year-end accrual transactions. ? Maintain a workbook to calculate estimated expenditures to be accrued for the fiscal year. The Authority will continue to review payments for allowability and ensure they occur within the grant period. The period of performance of the grant extends beyond the end of the state?s fiscal year. Invoices for the program continue to be received after fiscal year end and the cut-off date for reporting on the Schedule of Expenditures of Federal Awards. The Authority does not concur with the questioned costs and will verify with the grantor that questioned costs do not need to be repaid. Completion Date: Estimated September 2023 Agency Contact: William Sogge, CPA External Audit Liaison PO Box 45502 Olympia, WA 98504-5502 (360) 725-5110 william.sogge@hca.wa.gov

View Audit 23129 Questioned Costs: $1

Finding 16012 (2022-052)

Material Weakness 2022

State of Washington C/o Office of Financial Management

WA

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

Finding: The Department of Children, Youth, and Families did not have adequate internal controls over level of effort requirements for the Adoption Assistance program. Questioned Costs: Assistance Listing # 93.659 93.659 COVID-19 Status: Corrective action complete Corrective Action: When...

Finding: The Department of Children, Youth, and Families did not have adequate internal controls over level of effort requirements for the Adoption Assistance program. Questioned Costs: Assistance Listing # 93.659 93.659 COVID-19 Status: Corrective action complete Corrective Action: When the auditors issued the prior year finding, the Department had taken the following actions: ? In February 2022, hired a new position to manage the adoption savings program. ? In May 2022: o Reviewed federal grantor?s reporting instructions and guidance with staff involved in the preparation and submission of the financial report. o Reviewed written procedures for tracking and monitoring adoption savings expenditures to ensure compliance with level of effort requirements. o Established monthly meetings between the Child Welfare Program and Cost Allocation and Grant Management Unit staff to review expenditures and level of effort requirements prior to report submission. These meetings help to improve processes for monitoring and verifying adoption savings expenditures. The auditors issued the fiscal year 2021 finding in May 2022, which was 11 months after fiscal year 2022 began. The delay did not allow corrective actions to be developed and implemented timely for fiscal year 2022 and resulted in a repeat finding. The conditions noted in this finding were previously reported in finding 2021-045. Completion Date: May 2022 Agency Contact: Stefanie Niemela Audit Liaison PO Box 40970 Olympia, WA 98504-0970 (360) 725-4402 stefanie.niemela@dcyf.wa.gov

View Audit 23129

Finding 15991 (2022-047)

Material Weakness 2022

State of Washington C/o Office of Financial Management

WA

Subrecipient Monitoring Allowable Costs / Cost Principles Internal Control / Segregation of Duties

Finding: The Department of Children, Youth, and Families did not have adequate controls over and did not comply with certain requirements of its Public Assistance Cost Allocation Plan. Questioned Costs: Assistance Listing # 93.658 93.658 COVID-19 Status: Corrective action complete Correct...

Finding: The Department of Children, Youth, and Families did not have adequate controls over and did not comply with certain requirements of its Public Assistance Cost Allocation Plan. Questioned Costs: Assistance Listing # 93.658 93.658 COVID-19 Status: Corrective action complete Corrective Action: The Department concurs with the finding and is committed to improving internal controls. During July through September 2021, the first three months of the audit period, the Department did not have adequate staffing levels to maintain the business processes for the Public Assistance Cost Allocation Plan (PACAP) cost base for administrative charges. Available staff focused on grant reconciliations and close-out of the prior fiscal year financial transactions. In October 2021, the Department began updating the monthly workbooks in accordance with the approved PACAP. To address the finding and audit recommendations, the Department: ? Reviewed the written base edit form procedures with staff. ? Added reminders for base edit entries to the Cost Allocation and Grants Management Unit calendar. Completion Date: April 2023 Agency Contact: Stefanie Niemela Audit Liaison PO Box 40970 Olympia, WA 98504-0970 (360) 725-4402 stefanie.niemela@dcyf.wa.gov

View Audit 23129

Corrective Action Plans

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