Corrective Action Plans

Finding 8840 (2022-003)

Significant Deficiency 2022

U. S. Telecommunications Training Institute

DC

Procurement, Suspension & Debarment Matching / Level of Effort / Earmarking Internal Control / Segregation of Duties § 200.318

Views of Responsible Officials and Planned Corrective Actions: USTTI will formalize a compliance process to be in compliance with 2 CFR 200. USTTI management will then distribute and communicate the policy with all USTTI employees. USTTI management will ensure the policy is properly enforced and tha...

Views of Responsible Officials and Planned Corrective Actions: USTTI will formalize a compliance process to be in compliance with 2 CFR 200. USTTI management will then distribute and communicate the policy with all USTTI employees. USTTI management will ensure the policy is properly enforced and that all procurement actions are documents in writing in vendor and contractor files.

View Audit 12117

Finding 8839 (2022-002)

Significant Deficiency 2022

U. S. Telecommunications Training Institute

DC

Reporting Allowable Costs / Cost Principles Matching / Level of Effort / Earmarking § 200.303 § 200.510

Views of Responsible Officials and Planned Corrective Actions: USTTI will prepare its SEFA on a quarterly basis and we will reconcile the expenses reported on the SEFA with general ledger amounts. We will also review the chart of accounts coding to be sure all eligible expenses are clearly identifie...

Views of Responsible Officials and Planned Corrective Actions: USTTI will prepare its SEFA on a quarterly basis and we will reconcile the expenses reported on the SEFA with general ledger amounts. We will also review the chart of accounts coding to be sure all eligible expenses are clearly identified.

View Audit 12117

Finding 8720 (2022-007)

Material Weakness 2022

Cardiovascular Center Corporation of Puerto Rico and the Caribbean

PR

Questioned Costs Matching / Level of Effort / Earmarking Allowable Costs / Cost Principles § 200.300 § 200.306 § 200.308 § 200.309 § 200.403

Finding No. 2022-007 -Activities Allowed or Unallowed, Eligible Uses - FEMA Condition During the closeout procedures, the Cenh·al Office of Recovery, Reconstruction and Resiliency (COR3) office performed a 100% validation on Rental Equipment, supporting documents including conh"act smmnary record...

Finding No. 2022-007 -Activities Allowed or Unallowed, Eligible Uses - FEMA Condition During the closeout procedures, the Cenh·al Office of Recovery, Reconstruction and Resiliency (COR3) office performed a 100% validation on Rental Equipment, supporting documents including conh"act smmnary record, invoices, and proofs of payment. As a result of the validation, the total validated amount is $979,259 from an original amount of $1,260,775 submitted by the Corporation for reimbursement. Corporation response The Corporation agrees with the finding. Corrective Action Plan Upon receiving the audit findings, we initiated an immediate review of our FEMA-funded projects and expenditures. We are implementing immediate corrective actions to address the identified deficiencies and ensure strict compliance with FEMA guidelines regarding eligible uses. • Policies and Procedures Review - Simultaneously, the Corporation is reviewing our existing policies and procedures related to FEMA funds, with a specific focus on eligible activities. Any necessary revisions will be made to strengthen our policies and ensure rigorous adherence to FEMA guidelines and regulations. • Enhance Internal Controls - We are enhancing our internal controls related to FEMA fund utilization. This includes implementing additional checks and balances to improve the accuracy and reliability of our project management processes, ensuring they align with FEMA guidelines. ■ Communication Protocols Enhancements - We understand the importance of transparent communication regarding the use of FEMA funds. To address this, we are enhancing our communication protocols to ensure that all relevant stakeholders are informed of FEMA guidelines, project eligibility requirements, and any changes to procedures. • Return of Funds - Initiate the communication process with the Central Office of Recovery, Reconstruction, and Resiliency to obtain instructions for returning the funds to FEMA. Follow FEMA's specific guidelines on the return of funds, including the appropriate documentation, timelines, and c01mnunication procedures. ■ Finance Team - The Corporation has made changes to its management staff structure in the finance and budget department, with the mission of improving the monitoring process and compliance with federal and local regulations and the support of independent consultants. A new Finance and Budget Director and the Associate Director of Finance and Budget have been appointed. Names of the contact persons responsible for corrective action plan Jesus A. Rodrfguez Aviles - Financial Planning and Analysis Associate Director Cecilia Robles Kakiuchi - Financial Planning and Analysis Director Anticipated Completion Date Fiscal Year 2024

View Audit 11856 Questioned Costs: $1

Finding 8712 (2022-004)

Material Weakness 2022

Cardiovascular Center Corporation of Puerto Rico and the Caribbean

PR

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

Finding No. 2022-004 - Monthly Reporting Condition During our audit procedures regarding the compliance requirement related to reporting, we noted that, during the fiscal year ended June 30, 2022: • The Corporation was not able to provide audit evidence for the submission of fifteen (15) monthl...

Finding No. 2022-004 - Monthly Reporting Condition During our audit procedures regarding the compliance requirement related to reporting, we noted that, during the fiscal year ended June 30, 2022: • The Corporation was not able to provide audit evidence for the submission of fifteen (15) monthly reports, three (3) for the Coronavirus Relief Fund and twelve (12) for the Coronavirus State and Local Fiscal Recovery Fund. • Five (5) monthly reports were submitted later than its due date as follows: Corporation response The Corporation agrees with the finding. Corrective Action Plan Upon receipt of the audit findings, we initiated an immediate review of our monthly reporting procedures. We have identified specific areas that require attention and are implementing immediate corrective actions to address the identified deficiencies. ■ Policies and Procedures Review - Simultaneously, we are reviewing our existing policies and procedures related to monthly reporting. This includes a reassessing reporting timeline, data validation processes, and the overall framework for ensuring accuracy and completeness in our monthly reports. ■ Staff Training and Development - Recognizing the critical role of our personnel in the reporting process, we are providing additional training to the individuals involved. This training will emphasize the importance of adherence to reporting guidelines, accurate data entry, and the significance of meeting established deadlines. Communication Protocol Enhancement - We recognize the importance of effective communication regarding reporting processes. To address this, we are enhancing us communication protocols to ensure that all relevant stakeholders are informed of reporting requirements, timelines, and any changes to procedures. • Finance Team - The Corporation has changed its management staff structure in the finance and budget department, with the mission of improving the monitoring process and compliance with federal and local regulations. A new Finance and Budget Director and the Associate Director of Finance and Budget have been appointed. Names of the contact persons responsible for corrective action plan Jesus A. Rodriguez Aviles- Financial Planning and Analysis Associate Director Cecilia Robles Kakiuchi - Financial Planning and Analysis Director Anticipated Completion Date Fiscal Year 2024

View Audit 11856

Finding 8705 (2022-003)

Material Weakness 2022

Dakota County

MN

Eligibility Material Weakness Matching / Level of Effort / Earmarking § 200.303

2022-003 – TEMPORARY ASSISTANCE FOR NEEDY FAMILIES – ELIGIBILITY U.S. Department of Health and Human Services Temporary Assistance for Needy Families Assistance Listing Number: 93.558 Passed Through Minnesota Department of Human Services Pass Through Number: H55214077 Award Period: 2022 Recommen...

2022-003 – TEMPORARY ASSISTANCE FOR NEEDY FAMILIES – ELIGIBILITY U.S. Department of Health and Human Services Temporary Assistance for Needy Families Assistance Listing Number: 93.558 Passed Through Minnesota Department of Human Services Pass Through Number: H55214077 Award Period: 2022 Recommendation: We recommend the County implement process and procedures to provide reasonable assurance that all necessary documentation to support eligibility determination exists and is properly input or updated in MAXIS and issues are followed up in a timely manner. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action planned in response to finding: The County will ensure processes and procedures are in place to properly document and support eligibility determination, properly input and update MAXIS, and properly resolve issues promptly. Periodic review of case files will be included in the annual internal audit work plan. Name of the contact person responsible for corrective action: Tiffinie Miller-Sammons, Deputy Director Planned completion date for corrective action plan: December 31, 2023

View Audit 11849

Finding 8698 (2022-004)

Material Weakness 2022

Dakota County

MN

Eligibility Material Weakness Reporting § 200.303

2022-004 – SUPPLEMENTAL NUTRITION ASSISTANCE PROGRAM CLUSTER – SPECIAL PROVISIONS U.S. Department of Agriculture Supplemental Nutrition Assistance Program Cluster Assistance Listing Number: 10.561 Passed Through Minnesota Department of Human Services Pass Through Number: H55210010 Award Period: 20...

2022-004 – SUPPLEMENTAL NUTRITION ASSISTANCE PROGRAM CLUSTER – SPECIAL PROVISIONS U.S. Department of Agriculture Supplemental Nutrition Assistance Program Cluster Assistance Listing Number: 10.561 Passed Through Minnesota Department of Human Services Pass Through Number: H55210010 Award Period: 2022 Recommendation: We recommend the County implement process and procedures to provide reasonable assurance that all necessary documentation to support eligibility determination exists and is properly input or updated in MAXIS and issues are followed up in a timely manner. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action planned in response to finding: The County will ensure processes and procedures are in place to properly document and support eligibility determination, properly input and update MAXIS, and properly resolve issues promptly. Periodic review of case files will be included in the annual internal audit work plan. Name of the contact person responsible for corrective action: Daren Nyquist, Administration Manager Planned completion date for corrective action plan: December 31, 2023

View Audit 11849

Finding 8624 (2022-002)

None 2022

Town of Charlestown

NH

Procurement, Suspension & Debarment Equipment & Real Property Management Matching / Level of Effort / Earmarking § 200.313 § 200.318 § 200.319 § 200.320

The Town will be updating the Town's procedures and policies to incorporate the requirements of Part 200 of the Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards. Responsible Individual: Patricia Chaffee, Executive Assistant. Anticipated Completion Date:...

The Town will be updating the Town's procedures and policies to incorporate the requirements of Part 200 of the Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards. Responsible Individual: Patricia Chaffee, Executive Assistant. Anticipated Completion Date: January 30, 2024.

View Audit 11777

Finding 8523 (2022-102)

Significant Deficiency 2022

Greenlee County, Arizona

AZ

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

Contact Name: Rene Ontiveros Corrective Action Planned: The County distributes a portion of the SRS funds to the Road department. These SRS budgeted funds are now tracked by a function code when utilized for upcoming road projects. Anticipated Completion Date: March 31, 2024

View Audit 11508

Finding 8419 (2022-017)

None 2022

Glendive Public Schools

MT

Subrecipient Monitoring School Nutrition Programs Matching / Level of Effort / Earmarking

Response: The District’s prior auditor declined to provide services for 20-21 and 21-22 due to a scheduling overload. Finding a different auditor to provide services is difficult. The previous auditor was located closer to the District. The newly contracted auditors are located more than 560 miles a...

Response: The District’s prior auditor declined to provide services for 20-21 and 21-22 due to a scheduling overload. Finding a different auditor to provide services is difficult. The previous auditor was located closer to the District. The newly contracted auditors are located more than 560 miles across the state. That coupled with a 100% change in Business Office staff in an 8-month period created delays in submitting materials requested by the auditor and therefore delayed the starting and completion of the audit. A three-year contract with the current auditors has been negotiated and the audit for FY 22-23 started immediately after the completion of this audit.

View Audit 11350

Finding 8165 (2022-004)

Material Weakness 2022

City of Muncie

IN

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

FINDING 2022-004 Craig Wright (765)747-4828 Views of Responsible Official: We concur with the findings. Description of Corrective Action Plan: Correcting the audit findings is ongoing. The city has implemented monitoring procedures to review and prevent reoccurring errors. Anticipated Completion Dat...

FINDING 2022-004 Craig Wright (765)747-4828 Views of Responsible Official: We concur with the findings. Description of Corrective Action Plan: Correcting the audit findings is ongoing. The city has implemented monitoring procedures to review and prevent reoccurring errors. Anticipated Completion Date: The internal control monitoring and checks and balances will be implemented immediately and continue going forward.

View Audit 10718

Finding 8034 (2022-010)

Significant Deficiency 2022

Central State University

OH

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

There is a myriad of activities and timing issues that can impact awards and ultimate disbursements. In some cases, the dependency status can change as FAFSA and corresponding loan forms are revised. The Financial Aid department is committed to review internal processes and system rules to ensure ...

There is a myriad of activities and timing issues that can impact awards and ultimate disbursements. In some cases, the dependency status can change as FAFSA and corresponding loan forms are revised. The Financial Aid department is committed to review internal processes and system rules to ensure that the Banner packaging process is set up to catch changes in dependency status and awards accordingly. Responsible Person: Director of Financial Aid (Mitch Dedor) Completion Date: December 2023

View Audit 10523 Questioned Costs: $1

Finding 8032 (2022-007)

Material Weakness 2022

Central State University

OH

Cash Management Matching / Level of Effort / Earmarking

We agree with the intent of this finding but not the dollar amounts. The contribution of $100,000 was received via Title III and Central State matched the $100,000. The total of both amounts is $200,000. Central State matches with $100,000. We did have a time lag for execution of the check an...

We agree with the intent of this finding but not the dollar amounts. The contribution of $100,000 was received via Title III and Central State matched the $100,000. The total of both amounts is $200,000. Central State matches with $100,000. We did have a time lag for execution of the check and transfer to the endowment. The controller’s office will establish the protocol of being timely in matching the payment and in depositing the funds in the appropriate investment account. Responsible Person: Controller (Trasenna Gray) Completion Date: January 2024 and ongoing

View Audit 10523

Finding 8029 (2022-009)

Material Weakness 2022

Central State University

OH

Student Financial Aid Matching / Level of Effort / Earmarking

Due to high turnover within multiple departments tasked with administering Financial Aid and the time required for the training of new staff on the aid disbursement process, errors were made due to lack of knowledge of the rules. Training and verification of information at every level is a top prior...

Due to high turnover within multiple departments tasked with administering Financial Aid and the time required for the training of new staff on the aid disbursement process, errors were made due to lack of knowledge of the rules. Training and verification of information at every level is a top priority. The staff now has a much better understanding of the process and rules concerning awards. In addition, the director’s are actively working on improvements to the ERP system, “Banner”, so that errors that were due to human activities are reduced or eliminated. Already several processes, such as confirming attendance for aid posting is automatic. Now, more than one staff member is trained and responsible for processes and the team has consistent scheduled follow-up meetings on key actions in this area. Responsible Person: Director of Financial Aid (Mitch Dedor) & Registrar (Amanda Koci) Completion Date: December 2023

View Audit 10523

Finding 8005 (2022-001)

Significant Deficiency 2022

Rhode Island Philharmonic Orchestra and Music School

RI

Reporting Matching / Level of Effort / Earmarking

The Organization has started reviewing its current system of internal controls and moving responsibilities to ensure timely reporting.

View Audit 10474

Finding 7981 (2022-004)

Significant Deficiency 2022

YMCA De San Juan (the Young Men's Christian Association of San Juan, Inc.)

PR

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

Corrective action plan The Organization is currently implementing a procedure to strengthen written policies and procedures to evidence its compliance with Federal Programs. Name (s) of person (s) responsible for corrective action Ms. Mabel Román, YMCA Executive Director YMCA Finance Director Antici...

Corrective action plan The Organization is currently implementing a procedure to strengthen written policies and procedures to evidence its compliance with Federal Programs. Name (s) of person (s) responsible for corrective action Ms. Mabel Román, YMCA Executive Director YMCA Finance Director Anticipated completion date January 2024

View Audit 10431

Finding 7979 (2022-003)

Significant Deficiency 2022

YMCA De San Juan (the Young Men's Christian Association of San Juan, Inc.)

PR

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

YMCA of San Juan Response The Organization agrees with the finding. YMCA maintains a detailed accounting system subject to periodical reviews by the grantee in each individual grant. The system includes separate bank accounts, job ledgers, individual transactions are registered and in the CDBG-DR pr...

YMCA of San Juan Response The Organization agrees with the finding. YMCA maintains a detailed accounting system subject to periodical reviews by the grantee in each individual grant. The system includes separate bank accounts, job ledgers, individual transactions are registered and in the CDBG-DR program a live platform exists with written procedures adopted by the subgrantee to be eligible to have access to the reimbursement expenses. In order to improve the supervision and reporting the organization is in the active recruitment process and review of individual requirements of the grants such as the CFDA among others. Corrective action plan The Organization is currently implementing a procedure to review the information presented in the SEFA, to segregate from schedule the nonfederal funding expenditures. Name (s) of person (s) responsible for corrective action Ms. Mabel Román, YMCA Executive Director YMCA Finance Director Anticipated completion date December 2023

View Audit 10431

Finding 7903 (2022-004)

Significant Deficiency 2022

Lifetime Independence for Everyone, Inc. and Subsidiary

TX

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

2022-004 – Classification of Consumer Goals – Significant Deficiency in Internal Controls over Compliance Recommendation: The auditor recommends LIFE strengthen policies and procedures over the classification of consumer goals to ensure that the goals in the ILS and DRS systems match and are recorde...

2022-004 – Classification of Consumer Goals – Significant Deficiency in Internal Controls over Compliance Recommendation: The auditor recommends LIFE strengthen policies and procedures over the classification of consumer goals to ensure that the goals in the ILS and DRS systems match and are recorded in the correct categories as defined by ILS Program Standards 5.6.1 Revision 19-1. Action Taken: LIFE Management will: • Conduct a comprehensive review of existing policies/procedures related to the classification of Consumer goals. • Outline the steps for correctly classifying Consumer goals in line with Program Standards. • Conduct mandatory training sessions for all relevant staff on the classification of Consumer goals to ensure understanding and compliance. • Working with the Purchased Services staff, review the goal status of each Consumer at closure, including comparing goals on both data collection systems. • Conduct monthly quality assurance checks and internal audits to ensure the correct classification of Consumer goals. Due Date of Completion: November 30, 2023 Responsible Official: Director of Programs

View Audit 10307

Finding 7902 (2022-003)

Significant Deficiency 2022

Lifetime Independence for Everyone, Inc. and Subsidiary

TX

Matching / Level of Effort / Earmarking Subrecipient Monitoring § 200.303 § 200.430

2022-003 – Payroll Time Approval – Significant Deficiency in Internal Controls over Compliance Recommendation: The Auditor recommends LIFE implement controls for documenting and retaining information to indicate the Entity follows the requirements over 2 CFR section 200.430(i), and that all time cha...

2022-003 – Payroll Time Approval – Significant Deficiency in Internal Controls over Compliance Recommendation: The Auditor recommends LIFE implement controls for documenting and retaining information to indicate the Entity follows the requirements over 2 CFR section 200.430(i), and that all time charged to the grant are reviewed for approval. Action Taken: LIFE Management will: • Review, update and adhere to established policies/procedures that align with the compliance of 2 CFR, 200.430(i). • Implement LIFE’s newly customized timekeeping system that enables accurate recording of time spent on grant-related activities and that ensures capabilities for supervisory review and approval. • Conduct training sessions for all staff to educate them about any updated policies regarding timekeeping procedures, the new online timekeeping portal and adherence to federal regulations. • Schedule internal audits and reviews, at minimum, once a fiscal quarter to ensure that the new timekeeping system is being used correctly and that all time charged to grants is appropriate and compliant with LIFE’s policies/procedures and federal regulations. Due Date of Completion: January 31, 2023 Responsible Official: Executive Director

View Audit 10307

Finding 7901 (2022-002)

Significant Deficiency 2022

Lifetime Independence for Everyone, Inc. and Subsidiary

TX

Questioned Costs Allowable Costs / Cost Principles Significant Deficiency § 200.303 § 200.405

2022-002 – Allocation Percentage Charged – Significant Deficiency in Internal Controls over Compliance Recommendation: The auditor recommends LIFE enhance the design of its control activities and procedures over the allocation percentage forms used throughout the year to ensure the staff know how to...

2022-002 – Allocation Percentage Charged – Significant Deficiency in Internal Controls over Compliance Recommendation: The auditor recommends LIFE enhance the design of its control activities and procedures over the allocation percentage forms used throughout the year to ensure the staff know how to apply percentages and are using the correct approved allocation form for the period in the year. Action Taken: LIFE Management will: • Update its allocation form by clearly labeling the document used and the period and type of expense for which it applies. • Communicate the revision of all forms to staff involved in the allocation process, followed by a training session to ensure understanding and proper application of the form. • Establish a monthly review process, whereby allocation forms will be audited for current updates and application consistency. Due Date of Completion: November 30, 2023 Responsible Official: Executive Director

View Audit 10307 Questioned Costs: $1

Finding 7720 (2022-005)

Material Weakness 2022

Breathitt County Fiscal Court

KY

Questioned Costs Matching / Level of Effort / Earmarking Procurement, Suspension & Debarment

The Breathitt County Fiscal Court has adopted the KY Model Procurement Code, effective in August 2023. In addition the Fiscal Court hired a new Applicant Agent in January 2023 and transitioned all FEMA related work to the in-house Applicant Agent in August of 2023 rather than contracting services th...

The Breathitt County Fiscal Court has adopted the KY Model Procurement Code, effective in August 2023. In addition the Fiscal Court hired a new Applicant Agent in January 2023 and transitioned all FEMA related work to the in-house Applicant Agent in August of 2023 rather than contracting services through the Disaster Recovery firm the court had been working with prior to August 2023. With the hiring of the new Applicant Agent, proper bid documentation is being maintained & proper procedures are being followed for procurement of bids. The Breathitt County Fiscal Court has also changed the software used for tracking purchase orders which will allow for better tracking of both planned expenditures and already expended funds.

View Audit 10099 Questioned Costs: $1

Finding 7614 (2022-003)

Material Weakness 2022

Community Action Partnership of Oregon

OR

Subrecipient Monitoring Matching / Level of Effort / Earmarking Internal Control / Segregation of Duties § 200.305

Corrective Action: The lack of timeliness in payouts to SSVF subrecipients was largely due to the transition CAPO underwent in fiscal providers in 2022, and to a lack of sufficient internal staff to adequately manage the SSVF program’s growing fiscal requirements. The amount of SSVF funding CAPO pa...

Corrective Action: The lack of timeliness in payouts to SSVF subrecipients was largely due to the transition CAPO underwent in fiscal providers in 2022, and to a lack of sufficient internal staff to adequately manage the SSVF program’s growing fiscal requirements. The amount of SSVF funding CAPO passes through has increased significantly since 2021, and existing staffing was insufficient to assure timely tracking of draws and payments. Since moving to SMJ and hiring a Finance Manager, CAPO has improved the fiscal management of this grant considerably. CAPO is also hiring an Account Specialist to be assigned directly to SSVF invoicing and accounting needs. They will be charged to the VA grant and will work with the SSVF Program Manager and CAPO’s Finance Manager to process invoices, draw funds, and issue payments. Person Responsible: Janet Allanach, Rose Bradshaw, SSVF Program Manager; Shane Melton, Finance Manager. Timing for Implementation: Partially complete/In progress until December 31st, 2023, completion.

View Audit 9980

Finding 7580 (2022-002)

Material Weakness 2022

Horsham Township

PA

Reporting Matching / Level of Effort / Earmarking § 200.302

Views of Responsible Officials and Planned Corrective Actions: Management understands the importance of defining and following the necessary policies and procedures to remain in compliance with the requirements under 2 CFR 200.302 and have sufficient staff to comply. We will follow the recommendat...

Views of Responsible Officials and Planned Corrective Actions: Management understands the importance of defining and following the necessary policies and procedures to remain in compliance with the requirements under 2 CFR 200.302 and have sufficient staff to comply. We will follow the recommendation of the Audit. Action Taken: Horsham will adopt new policies that address CFR 200.302 requirements. Anticipated Completion: January 2023

View Audit 9922

Finding 6965 (2022-004)

Material Weakness 2022

Fredericksburg Area Health and Support Services, Inc.

VA

Questioned Costs Internal Control / Segregation of Duties Subrecipient Monitoring § 200.430

Finding: The Organization allowed payroll related costs to be submitted for reimbursement under the grant for time that did not match approved timesheets. This is not in compliance with program allowable cost requirements. The amount of payroll and related costs discovered to be incorrect was a net...

Finding: The Organization allowed payroll related costs to be submitted for reimbursement under the grant for time that did not match approved timesheets. This is not in compliance with program allowable cost requirements. The amount of payroll and related costs discovered to be incorrect was a net amount of $25, which when projected onto the remaining payroll and related costs that were not tested, amounted to $1,038. Corrective Action Taken or Planned: The Organization will review audit findings and ensure accurate future reimbursements, develop a comprehensive process for verifying time sheets against service delivery, and implement a paper timesheet system in which supervisors must enter time based on timesheets, ensuring 1:1 reimbursement. Name of Contact Person: Jacob Ducey, Grants Manager Phone Number of Contact Person: (540) 907-4555 Projected Completion Date: October 31, 2023

View Audit 9001 Questioned Costs: $1

Finding 6934 (2022-001)

Significant Deficiency 2022

Bright Nutrition

TX

Matching / Level of Effort / Earmarking Significant Deficiency

Significant Deficiency Federal Program: Summer Food Service Program for Children Federal Agency: U.S. Department of Agriculture Federal Award Year: 2022 Individual responsible for corrective action: Date corrective action will be implemented: Nadia Martinez / Executive Director December 29, 2023 Res...

Significant Deficiency Federal Program: Summer Food Service Program for Children Federal Agency: U.S. Department of Agriculture Federal Award Year: 2022 Individual responsible for corrective action: Date corrective action will be implemented: Nadia Martinez / Executive Director December 29, 2023 Response: In FY 2022, our organization experienced a major weakness in internal controls over expenditures for the Food Service Program for Children, as highlighted in Finding 2022-001 of the recent financial audit. The audit found that our systems of internal control contained neither detection nor prevention elements. This raised doubts about whether we have adequate controls to prevent or detect instances of noncompliance with grant requirements. Our internal review has shown that the deficiency derives from weaknesses in our processes and systems, which failed to appropriately authorize or approve expenditures based on compliance with the Uniform Guidance. We realize the urgency in resolving this situation for proper management of federal awards under federal statutes, regulations and award terms. Corrective Action: To rectify the identified deficiency and align with the auditor's recommendation, our organization is implementing a comprehensive Corrective Action Plan. We have engaged a reputable CPA consulting firm specializing in internal controls and federal compliance. This firm will enter into a rigorous inspection of existing procedures to identify weaknesses and suggest improvements in prevention and help us greatly strengthen detection procedures. We recognize that skill upgrading and greater understanding of the task at hand among our staff, especially those with financial management or grant administration responsibilities are extremely important. Therefore, we will have special training sessions. These meetings will focus on the special demands of the Uniform Guidance and underline the importance of adhering to internal control measures. This applies to a full-scale review and improvement of the internal control over expenditures. This entails redefining the granting of authorization and approval procedures, as well as separating duties which must be met within the federal guidelines. It also involves installing checks and balances to ensure strict compliance with these guidelines. In view of the importance of adhering to standards for internal control, we promise to follow best practices as defined in the "Standards for Internal Control in the Federal Government" by the Comptroller General of the United States and the "Internal Control Integrated Framework" by the Committee of Sponsoring Organizations of the Treadway Commission (COSO). Determined as we are to constantly improve, our organization will use a systematic approach in order to monitor compliance with internal controls. Under this scheme, regular reporting and analysis is used to quickly find potential problems. It will be a transparent and all-inclusive monitoring process. Our organization knows just how important documentation is, and we will build a robust system in line with federally required documents. This system provides transparency and accountability in our financial management activities, taking another step toward compliance with requirements for responsible stewardship of federal funds. We will continue to co-operate closely with our CPA consulting firm and the auditing body until we can prove that there is significant progress in eliminating the large-scale deficiency. Thank you for your guidance. We will continue to improve our internal controls at the highest level possible so as to meet and exceed federal standards. This comprehensive Corrective Action Plan will be effective immediately.

View Audit 8924

Finding 6608 (2022-002)

Significant Deficiency 2022

Agricultural Enterprises Development Administration

PR

Significant Deficiency Matching / Level of Effort / Earmarking Special Tests & Provisions

We designed and trained personnel to work with the bank statements to identify timely any voucher in which the farmer identifier is not legible. In those cases, a copy of the voucher must be sent to the Auxiliary Market Director to proceed to identify the farmer appropriately and request from the f...

We designed and trained personnel to work with the bank statements to identify timely any voucher in which the farmer identifier is not legible. In those cases, a copy of the voucher must be sent to the Auxiliary Market Director to proceed to identify the farmer appropriately and request from the farmer a certification attesting that he/she redeemed the voucher.

View Audit 8540

Corrective Action Plans

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