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FEDERAL AWARDS FINDING CORRECTIVE ACTION PLAN Year ended December 31, 2022 Finding 2022-001 Federal assistance listing number and name: 10.415 Rural Rent Housing Loans Awards numbers and years: 2022 Federal agency: United States Department of Agriculture Compliance Requirement: Special tests and pro...
FEDERAL AWARDS FINDING CORRECTIVE ACTION PLAN Year ended December 31, 2022 Finding 2022-001 Federal assistance listing number and name: 10.415 Rural Rent Housing Loans Awards numbers and years: 2022 Federal agency: United States Department of Agriculture Compliance Requirement: Special tests and provisions Questioned Costs: None Name of Contact Person and Title: Susie Kirker, Board Chair Criteria: Edgewater Estates and Combs Memorial did not establish or adequately fund the security deposit accounts in 2022. Condition and Context: Those Projects did not maintain the full amount of security deposit funds potentially owed to the tenants. Effect: The Projects are not in compliance with RD regulations and procedures. Cause: The Projects did not maintain the full amount of security deposit funds potentially owed to the tenants. Management Response: Management plans on fully funding the security deposit accounts for the amounts owed to tenants. Status: In progress Anticipated Completion Date: Estimated 2023
2022-003 - TIMELY SUBMISSION OF FEDERAL AUDIT CLEARINGHOUSE FILING (NON-COMPLIANCE) Corrective Action Planned: We will begin the auditing process in a timely fashion going forward and adhere to stricter timelines internally to prevent this from recurring. Anticipated Completion Date: March 31, 2024
2022-003 - TIMELY SUBMISSION OF FEDERAL AUDIT CLEARINGHOUSE FILING (NON-COMPLIANCE) Corrective Action Planned: We will begin the auditing process in a timely fashion going forward and adhere to stricter timelines internally to prevent this from recurring. Anticipated Completion Date: March 31, 2024
Finding 2022-001 Summary: Although Horizon?s data collection form for the year end ended December 31, 2021 was not submitted to the FAC within the 30 days after the receipt of the auditor?s reports, that was more than nine months after the end of the audit period. The firm engaged by Horizon to p...
Finding 2022-001 Summary: Although Horizon?s data collection form for the year end ended December 31, 2021 was not submitted to the FAC within the 30 days after the receipt of the auditor?s reports, that was more than nine months after the end of the audit period. The firm engaged by Horizon to prepare the report was hard hit with staffing issues and Covid and they were severely behind schedule. Corrective Action: Horizon has engaged a different firm to prepare the 2022 report. They plan to provide the report to Horizon in August, 2023 and Horizon will submit the data collection form within 30 days thereafter in compliance with the law. Contact Person: Sharon Knaggs, CFO Anticipated Completion Date: August 31, 2023.
Date: April 21, 2023 Subject: Corrective Action Plan Please find below the Medical University of South Carolina?s (MUSC) Corrective Action Plan for the finding presented by KPMG relating to our fiscal year 2022 audit conducted under the Uniform Guidance. Audit finding reference number: 2022-003 Ca...
Date: April 21, 2023 Subject: Corrective Action Plan Please find below the Medical University of South Carolina?s (MUSC) Corrective Action Plan for the finding presented by KPMG relating to our fiscal year 2022 audit conducted under the Uniform Guidance. Audit finding reference number: 2022-003 Cash Management Cause and potential effect as presented in the Summary of Findings and Questioned Costs: For 3 of the 40 samples tested, taxes were properly accrued as allowable costs but were drawn prior to payment by the University. While these costs are deemed allowable, they were not paid for prior to seeking reimbursement from the federal agency. The taxes drawn prior to payment totaled $4,035 out of a total of $784,941 tested in the sample of 40. The control to ensure that all costs were paid for prior to seeking reimbursement was not operating effectively to identify instances of noncompliance related to the applicable taxes. Name(s) of the contact person(s) responsible for corrective action: Velma G. Stamp, Director, Grants and Contracts Accounting Michael Laird, Manager, Financial Reporting, Grants and Contracts Accounting Corrective action planned: MUSC tested purchases to determine the extent of the finding. It was found that this issue was isolated to the Department of Lab Animal Research (DLAR) animal purchases made with the departmental Purchasing Card. Once this determination was made all DLAR animal purchasing card transactions were identified, for the period being audited, in order to calculate the use tax required to be paid. MUSC?s tax office then submitted amendments for each month, remitting the additional use tax as well as the applicable penalties to the South Carolina Department of Revenue. No adjustments were needed to be made to the grants impacted as these are otherwise allowable costs. We believe MUSC?s system operates adequately when use tax is flagged as required by our policies and procedures. This instance occurred due to input errors by the employee responsible for this area. As such, we have conducted training with the employee as well as the employee?s manager instructing how purchasing card transactions subject to use tax must be identified when allocating credit card purchases. In addition, we will monitor DLAR credit card purchases to ensure MUSC?s policies and procedures are being adhered to. Anticipated completion date: This corrective action has been implemented and the monitoring will be ongoing. Questions or requests for additional information related to this Corrective Action Plan may be directed to me via email at stampvg@musc.edu or by telephone at 843-792-3657. Sincerely, Velma G. Stamp, Director
View Audit 19410 Questioned Costs: $1
2022-069a ? There are ongoing projects efforts with the Gainwell Technologies (the MMIS Fiscal Agent) to clean up the gaps in the TPL process that leads to inaccurate TPL data within the MMIS, those projects include: ? Changing the logic in the MMIS to end date members active TPL segments when Medic...
2022-069a ? There are ongoing projects efforts with the Gainwell Technologies (the MMIS Fiscal Agent) to clean up the gaps in the TPL process that leads to inaccurate TPL data within the MMIS, those projects include: ? Changing the logic in the MMIS to end date members active TPL segments when Medicaid eligibility is lost ? Cleaning up active TPL segments for members with dates of death in the MMIS ? Project request to clean up inaccurate Policy begin dates that are being changed by incoming ?MMA file? (From CMS) data ? Project to update coverage type codes for Medicare Advantage plans to have their own distinct code ? Expanding logic on MMA file to include more Medicaid members so more Medicare information can be taken in by the MMIS Additionally, there is work with Deloitte and Gainwell to ensure we have accurate TPL information within the RIBridges system. 2022-069b ? EOHHS has worked with Gainwell Technologies (the MMIS Fiscal Agent) to supply the MCOs with monthly files that include their enrolled members who have active TPL information within MMIS. These files have been generated and QCd by the systems team. We are currently in process with the MCO team to determine how these files will be delivered to the MCOs and define the expectations of how the MCOs use these files. Anticipated Completion Date: December 2024 Contact Person: Jeffrey Schmeltz, Chief of Family Health Systems Executive Office of Health and Human Services jeffrey.schmeltz@ohhs.ri.gov
View Audit 23102 Questioned Costs: $1
The Office of Child Care (OCC) has reviewed available training materials related to CCAP eligibility and case processing and has identified certain gaps where additional training/clarification, and more frequent communication to processing staff is needed ? specifically in income calculation/input o...
The Office of Child Care (OCC) has reviewed available training materials related to CCAP eligibility and case processing and has identified certain gaps where additional training/clarification, and more frequent communication to processing staff is needed ? specifically in income calculation/input of paystubs, confirming asset declarations and confirming need hours. OCC has requested to work with CSDL to create a CCAP specific training to provide in-depth coverage of program requirements. OCC has presented at quarterly meetings to highlight error findings and the critical importance of accurate documentation ? specifically citizenship of the child and residency. OCC works continuously with field staff and Deloitte through weekly theme meetings to identify areas where system changes can improve accuracy of eligibility determinations. OCC is currently reviewing the grace period/short-term approval policy, how it is applied to specific cases and how it is implemented in RIBridges. Anticipated Completion Date: April 2024 Contact Person: Sharon Fitzgerald, CCAP Administrator Department of Human Services sharon.fitzgerald@dhs.ri.gov
View Audit 23102 Questioned Costs: $1
Significant Deficiency ? Item No. 2022-003 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 o...
Significant Deficiency ? Item No. 2022-003 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 audited financial statements to be provided to the federal agency annually within 9 months of fiscal year-end, as well as quarterly internal financial statements. Condition: The Hospital did not submit the audited financial statements within the prescribed period or request an extension and did not submit any quarterly reports to the federal agency. The Hospital was not asked for the information after they failed to submit it. The audit financial statements are readily available to the federal agency through the federal clearinghouse website. Planned Corrective Action: Management agrees with the finding and are implementing procedures to ensure that the required financial reports are submitted in a timely manner in accordance with the terms and conditions of the federal award. Planned Completion Date: June 30, 2023 Person Responsible: Nate Thompson, Chief Executive Officer
Finding 23461 (2022-057)
Significant Deficiency 2022
Rhode Island College has provided additional training to the employee responsible for timely reporting and documentation of the reports. Additionally, the College has set up additional reviews and reminders to ensure that the data reported is timely and documented. Anticipated Completion Date: Com...
Rhode Island College has provided additional training to the employee responsible for timely reporting and documentation of the reports. Additionally, the College has set up additional reviews and reminders to ensure that the data reported is timely and documented. Anticipated Completion Date: Completed Contact Person: Nelia Kruger, Controller Rhode Island College nkruger@ric.edu
Finding 23441 (2022-047)
Significant Deficiency 2022
Finance and the Office of Highway Safety will work together to create policies and procedures to ensure compliance with earmarking. Anticipated Completion Date: September 30, 2023 Contact Person: Loren Doyle, Acting Chief Operating Officer / Chief Financial Officer Department of Transportation lor...
Finance and the Office of Highway Safety will work together to create policies and procedures to ensure compliance with earmarking. Anticipated Completion Date: September 30, 2023 Contact Person: Loren Doyle, Acting Chief Operating Officer / Chief Financial Officer Department of Transportation loren.doyle@dot.ri.gov
Finding 23440 (2022-046)
Significant Deficiency 2022
Effective March 8, 2023, the Maintenance of Effort (MOE) is no longer required. This elimination of this requirement was part of a Federal Register published on February 6, 2023. 23 CFR part 1300 (Docket No. NHTSA-2022-0036) states: The 5-State DOTs acknowledged that NHTSA removed the Maintenance ...
Effective March 8, 2023, the Maintenance of Effort (MOE) is no longer required. This elimination of this requirement was part of a Federal Register published on February 6, 2023. 23 CFR part 1300 (Docket No. NHTSA-2022-0036) states: The 5-State DOTs acknowledged that NHTSA removed the Maintenance of Effort (MOE) requirement in the NPRM and requested that NHTSA retain that change. The BIL removed this requirement, and therefore NHTSA retains that change. Anticipated Completion Date: Completed Contact Person: Loren Doyle, Acting Chief Operating Officer / Chief Financial Officer Department of Transportation loren.doyle@dot.ri.gov
Finding Number: 2022-001 Condition: The System does not have a formal review process to ensure the revenue reported within the PRF reporting submissions properly reconciles to the underlying financial statements. The System selected Option i for reporting lost revenues, however the actual revenue...
Finding Number: 2022-001 Condition: The System does not have a formal review process to ensure the revenue reported within the PRF reporting submissions properly reconciles to the underlying financial statements. The System selected Option i for reporting lost revenues, however the actual revenue reported for each quarter of 2022 did not reconcile to the underlying accounting records. Planned Corrective Action: Management will implement a process to ensure an independent review of the reporting submission is completed prior to submission. The lost revenue reported in the period four portal submission was overstated by approximately $360,000 as a result of the error identified. The System had excess lost revenue that did not have to be utilized to justify recognition of the funding received, therefore this error had no impact on meeting the conditions of the funding received. Contact person responsible for corrective action: Kevin Riley, CFO Anticipated Completion Date: 9/30/2023
Condition: The Organization?s procurement policy is not consistent with the general procurement standards as defined in Title 2, CFR Part 200. Certain provisions of the Organization?s policies were lacking or not consistent with the policies outlined in the general procurement standards. Pla...
Condition: The Organization?s procurement policy is not consistent with the general procurement standards as defined in Title 2, CFR Part 200. Certain provisions of the Organization?s policies were lacking or not consistent with the policies outlined in the general procurement standards. Planned Corrective Action: The Organization is in the process of reviewing amending its financial control policy manual to be more consistent with the requirements of 2 CFR 200. The revised policy manual is scheduled to be submitted to the Board of Directors for approval at the September board meeting. Contact Person: John Bendon, Director of Finance / Controller Anticipated Completion Date: September 30, 2023
Elementary and Secondary School Emergency Relief Wage Rate Requirements Elementary and Secondary School Emergency Relief ? Assistance Listing No. 84.425D Recommendation: CLA recommends that the District implement controls to ensure construction contracts include the proper wording and implement cont...
Elementary and Secondary School Emergency Relief Wage Rate Requirements Elementary and Secondary School Emergency Relief ? Assistance Listing No. 84.425D Recommendation: CLA recommends that the District implement controls to ensure construction contracts include the proper wording and implement controls to ensure certified payrolls are received and reviewed. We also recommend the district implement controls for monitoring third party contractors when the contractors are responsible for compliance requirements. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: The district was contracting with CESA #10 facilities management to oversee the project. The prevailing wage requirement was designated in the bidding process and the district was assured that the prevailing wage rule would be met. Wage reports were requested and maintained by the CESA #10 office. From now on the district will be requesting that these documents be sent on to the district in a timely manner for review and take pictures of the postings at the job site. Name(s) of the contact person(s) responsible for corrective action: Joe Green Planned completion date for corrective action plan: Next capital project
View Audit 18647 Questioned Costs: $1
Child Nutrition Cluster Procurement and Suspension and Debarment Child Nutrition Cluster ? Assistance Listing No. 10.553, 10.555, 10.559 and 10.582 Recommendation: CLA recommends that the District review its Uniform Guidance policies with all staff to ensure procurement requirements are understood a...
Child Nutrition Cluster Procurement and Suspension and Debarment Child Nutrition Cluster ? Assistance Listing No. 10.553, 10.555, 10.559 and 10.582 Recommendation: CLA recommends that the District review its Uniform Guidance policies with all staff to ensure procurement requirements are understood and implement controls to ensure compliance. We also recommend the District review and update policies and procedures over review of certain transactions to ensure that all federal grants with covered transactions have vendors reviewed for suspension and debarment status. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: The procurement requirements are being reviewed with staff and in-house information will be maintained and approved in-house in the future. Name(s) of the contact person(s) responsible for corrective action: Joe Green or Jeri Haase Planned completion date for corrective action plan: reviewed in 2022-23 and completed for 2023-24
Steilacoom Historical School District No. 1 September 1, 2021 through August 31, 2022 This schedule presents the corrective action planned by the District for findings reported in this report in accordance with Title 2 U.S. Code of Federal Regulations (CFR) Part 200, Uniform Administrative Requireme...
Steilacoom Historical School District No. 1 September 1, 2021 through August 31, 2022 This schedule presents the corrective action planned by the District for findings reported in this report in accordance with Title 2 U.S. Code of Federal Regulations (CFR) Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Finding ref number: 2022-001 Finding caption: The District did not have adequate internal controls for ensuring compliance with federal wage rate requirements. Name, address, and telephone of District contact person: Shawn Lewis, Assistant Superintendent 511 Chambers Street Steilacoom, WA 98388 253-983-2233 Corrective action the auditee plans to take in response to the finding: (If the auditee does not concur with the finding, the auditee must list the reasons for non-concurrence). The district concurs that it lacked appropriate internal controls to ensure compliance with the federal wage rate requirements. It is highly unusual for a school district to receive federal funds for construction activities and the required contract provisions are not included in the district?s standard contracting templates. The State Auditor's Office reported that the former CFO indicated that she and staff were unaware of federal wage rate requirements. The district agrees that the former CFO should have been aware of these requirements and was responsible to ensure compliance with the requirements. Page 61 Office of the Washington State Auditor sao.wa.gov The district does not expect to receive any federal funds to support construction activities in the near future and therefore finds it highly unlikely that this condition will be repeated. However, the district will take the following steps as corrective action: 1. Update formal procedures to specifically require staff to consider Davis Bacon and other federal requirements when public works are funded with federal funds. 2. Ensure current staff responsible for public works project compliance understand the federal requirements when federal funds are used for such projects. The district believes that these corrective action steps in addition to a change in personnel responsible for overall federal compliance will provide reasonable assurance of future compliance. Anticipated date to complete the corrective action: 9/01/2023
Finding Number: 2022-003 Planned Corrective Action: The District has legal counsel review all contracts for construction to ensure that we comply with all wage requirements and certified payroll reports are now provided weekly by the contractor. Anticipated Completion Date: Already completed Respons...
Finding Number: 2022-003 Planned Corrective Action: The District has legal counsel review all contracts for construction to ensure that we comply with all wage requirements and certified payroll reports are now provided weekly by the contractor. Anticipated Completion Date: Already completed Responsible Contact Person: Muata Niamke, Business Manager and Taylor Friedrich, Treasurer/CFO
2022 ? 002 Emergency Rental Assistance ? Assistance Listing No. 21.023 Condition: The County was not able to provide supporting documentation for their reported amounts. The County failed to retain data records for the point in time that was used to report each submission. As a result, reported key ...
2022 ? 002 Emergency Rental Assistance ? Assistance Listing No. 21.023 Condition: The County was not able to provide supporting documentation for their reported amounts. The County failed to retain data records for the point in time that was used to report each submission. As a result, reported key line items could not be supported. Recommendation: We recommend that policies and procedures be implemented to ensure that all financial and special reports are filed timely and accurately and that reports are reviewed and approved by an authorized State official prior to submission to ensure accurate support for the reported amounts. Views of responsible officials and planned corrective actions: The county agrees with the finding will improve the process for reporting under the Emergency Rental Assistance program and retain documentation that supports the information reported. ERAP program management will provide supporting documentation for their reported amounts to the Federal Treasury moving forward. We have implemented corrective action in May 2023 for preparation and submission of the ERA2 2023 Q1 Treasury report. Responsible Official: Ramona Farineau, Chief Financial Officer Planned completion date for corrective action plan: May 31, 2023
2022 ? 001 ? Emergency Rental Assistance ? Assistance Listing No. 21.023 Condition: The County incorrectly processed a benefit payment that included an overpayment of $30 by inadvertently including utilities on top of base rent. Recommendation: We recommend the County review its procedures and contr...
2022 ? 001 ? Emergency Rental Assistance ? Assistance Listing No. 21.023 Condition: The County incorrectly processed a benefit payment that included an overpayment of $30 by inadvertently including utilities on top of base rent. Recommendation: We recommend the County review its procedures and controls over the processing of beneficiary payments to ensure amounts are properly paid and reimbursed. Views of responsible officials and planned corrective actions: The county agrees with the finding. The county will improve the controls over processing beneficiary payments to ensure that the proper amounts are paid to beneficiaries. ERAP program management, who review and determine eligibility, will pay closer attention to process allowable benefit payments based on base rent and not include utilities. Corrective action was taken in the spring of 2023 when this issue was identified during the 2022 audit. Responsible Official: Ramona Farineau, Chief Financial Officer Planned completion date for corrective action plan: May 31, 2023
View Audit 23003 Questioned Costs: $1
Finding 2022-001 ? Activities Allowed or Unallowed, Eligibility, and Special Tests and Provisions Information on the federal program: Federal Grantor: United States Department of Health and Human Services, Health Resources and Services Administration (HRSA) Assistance Listing No.: 93.461, COVID-19 T...
Finding 2022-001 ? Activities Allowed or Unallowed, Eligibility, and Special Tests and Provisions Information on the federal program: Federal Grantor: United States Department of Health and Human Services, Health Resources and Services Administration (HRSA) Assistance Listing No.: 93.461, COVID-19 Testing for the Uninsured Pass-Through Award Numbers: Not applicable Pass-Through Award Period of Performance: 01/01/2022?3/31/2022 Views of responsible officials and planned corrective actions: Management agrees with the finding. Our standard procedure is to verify insurance coverage for all patients. We believe in instances where documentation was not maintained to evidence that additional insurance verification procedures were performed in addition to the standard patient inquiry, such instances were a documentation error and not a process issue. Since the federal program has ended, no further action will be taken. Management has noted that in certain instances, patients identify themselves as uninsured but following their date of service, AdventHealth identified that the patient either had insurance coverage or was eligible for Medicaid. AdventHealth was not aware that the patient had insurance coverage and requested reimbursement from HRSA, prior to AdventHealth identifying insurance coverage. AdventHealth has processed a refund to HRSA, in instances where reimbursement was received from another payer or another payer was available to provide reimbursement. Documentation was established effective September 30, 2022, to evidence the operating effectiveness of internal controls in place over balance billing. Responsible official: Stacey Wilson, Director Grants Management
The City of Beaverton respectfully submits the following corrective action plan for the year ended June 30, 2022. Name and address of independent public accounting firm: Quast, Janke & Company 1010 N Johnson St Bay City, MI 48708 ...
The City of Beaverton respectfully submits the following corrective action plan for the year ended June 30, 2022. Name and address of independent public accounting firm: Quast, Janke & Company 1010 N Johnson St Bay City, MI 48708 Audit Period: June 30, 2022 Contact person responsible for Corrective Action Kimberly Hines, City Manager The findings from the June 30, 2022 schedule of findings and questions costs are detailed in the schedule above. The findings are numbered consistently with the numbers assigned in the schedule. 2022-004 Written Policies Required by the Uniform Guidance Recommendation: We recommend that the City ensures these policies are updated to conform with the Uniform Guidance as soon as practical, but no later than the end of fiscal year 2023. Action Taken: The City has been provided an example of appropriate policies to use as a guide in updating their written policies. City management is currently working on updating all current procedures and policies to ensure that they are compliant with Uniform Guidance for all current and future Federal Awards. Anticipated Completion Date: June 2023
Finding 23156 (2022-011)
Significant Deficiency 2022
2022-011 ? Institutional Higher Education Emergency Relief Funds III Student Outreach Requirement Auditor Description of Condition and Effect. The University did not use a portion of the institutional HEERF III grant to conduct direct outreach to financial aid applicants...
2022-011 ? Institutional Higher Education Emergency Relief Funds III Student Outreach Requirement Auditor Description of Condition and Effect. The University did not use a portion of the institutional HEERF III grant to conduct direct outreach to financial aid applicants about the opportunity to receive a financial aid adjustment due to the recent unemployment of a family member or independent student, or other circumstances, described in section 479A of the HEA. The University also did not document how the amount of the HEERF grant spent on these two required activities was reasonable and necessary given the unique circumstances of the University. As a result of this condition, the University did not fully comply with the requirements of the HEERF III grant. Auditor Recommendation. We recommend that management review the compliance requirements of each grant when received to ensure compliance with such requirements. Corrective Action. The University will review the compliance requirements of each grant when received to ensure compliance with such requirements. The University will more properly track staff time in a detailed fashion in any similar circumstances in the future. Responsible Person. Alan Drimmer Anticipated Completion Date: 4/28/2023
2022-007 ? Higher Education Emergency Relief Funds Earmarking Requirements Auditor Description of Condition and Effect. The University had excess funds after disbursing to students from the student portion of HEERF III emergency financial aid grants. Management discharge...
2022-007 ? Higher Education Emergency Relief Funds Earmarking Requirements Auditor Description of Condition and Effect. The University had excess funds after disbursing to students from the student portion of HEERF III emergency financial aid grants. Management discharged outstanding student balances using the excess student portion of HEERF III. Management advised students the funds could be applied to outstanding balances; however, students were not given the option to receive a cash payment in lieu of being applied to outstanding balances. Management also did not maintain detail records tracking how HEERF funds were spent across HEERF I, HEERF II, and HEERF III. As a result of this condition, the student portion of HEERF III was used for a purpose other than to provide emergency financial aid grants to students. The University partially discharged the existing student balance of 31 students amounting to $88,958. The University did not spend the required cumulative minimum of the student portion on allowable costs. Auditor Recommendation. We recommend management and accounting personnel with involvement in federal funding attend grant specific trainings and that the University maintain detailed records to allow the proper tracking of federal expenditures on a grant level basis. "Corrective Action: The University better understands the tracking requirements and the University will ensure any future funds are tracked appropriately based on the grant guidelines. Specifically with respect to HEERF III disbursements, Cleary agrees with the finding. After disbursing HEERF III funds to each student, some students had remaining outstanding balances. Management was concerned for a subset of 31 students who still had large remaining balances and were in danger of having that balance sent to a collection agency. So the remaining funds available were applied to the balances of those students. In other communications to students, the University had in the past offered students the option of applying the funds to their accounts or taking the amount in cash. Due to an oversight, the University did not offer that option to students in this circumstance. The University should have presented students with the option of receiving the HEERF funds in cash rather than having it applied to their student account. The University is in the process of drafting a communication to each of the 31 individual students affected, making them aware that Cleary applied HEERF funds to their outstanding student balances but should have offered a cash payment option. The letter will state that Cleary can issue cash disbursements if the student contacts the Student Accounts office. The communication also makes it clear to students that this will create a balance due on their current student account that must be satisfied before they can re-register for classes. In addition, Business Office and Financial Aid staff involved in federal funding will attend grant-specific training on an annual basis." Responsible Person. Alan Drimmer Anticipated Completion Date: 4/20/2023
View Audit 23264 Questioned Costs: $1
Finding 23136 (2022-003)
Significant Deficiency 2022
2022-003 ? Subsidized Loans Awarded to Student without Financial Need Auditor Description of Condition and Effect. The University provided a direct subsidized loan to a student without financial need. As a result of this condition, the University did not fully comply wit...
2022-003 ? Subsidized Loans Awarded to Student without Financial Need Auditor Description of Condition and Effect. The University provided a direct subsidized loan to a student without financial need. As a result of this condition, the University did not fully comply with student financial aid eligibility requirements. Auditor Recommendation. We recommend that management review their current practices and policies for reviewing student information to provide the correct type of financial aid to students. Corrective Action. The one instance noted in this finding for $1,361 was discovered in 2022-23 and the only one of its kind that Management is aware of. Once the University became aware of it, the student was notified, and the correction was made in Common Origination and Disbursement in the 2021-22 fiscal year. New qualified staff has been added to the Business Office and new student accounts software was implemented in Spring of 2022 that reviews need and grade level and awards loans properly. Responsible Person. Alan Drimmer Anticipated Completion Date: 11/16/2022
To reduce operating costs, payroll costs and other shared expenses are initially processed and paid through Redbanks Towers and Apartments. The other two affiliated properties managed by Henderson County Health Care Corporation, II reimburse Redbanks Towers and Apartments for their proportionate sha...
To reduce operating costs, payroll costs and other shared expenses are initially processed and paid through Redbanks Towers and Apartments. The other two affiliated properties managed by Henderson County Health Care Corporation, II reimburse Redbanks Towers and Apartments for their proportionate share of the costs. The $54,930 are not loans to the other affiliated properties. The amount can be attributed to timing differences and billing the affiliated properties after an expense is paid. Due to employee issues and turnover, some of the reimbursements were not made in a timely manner. Management has taken proactive steps to ensure timely reimbursement in the future, including but not limited to, outsourcing accounts payable, changes in staffing, monitoring the intercompany reimbursements, etc. As of October 4, 2022, $43,404.81 of the amount has been reimbursed to Redbanks Towers and Apartments. The balance of $11,525.42 will be reimbursed as soon as possible.
Finding 23064 (2022-001)
Significant Deficiency 2022
Student Financial Assistance Cluster - Cash Management Assistance Listing Number: 84.007/84.033/84.038/84.063/84.268 Type of Finding: Significant Deficiency in Internal Control over Compliance Recommendation: ISU should implement formal review procedures to document that the Cash Management draw...
Student Financial Assistance Cluster - Cash Management Assistance Listing Number: 84.007/84.033/84.038/84.063/84.268 Type of Finding: Significant Deficiency in Internal Control over Compliance Recommendation: ISU should implement formal review procedures to document that the Cash Management drawdown reviews are being performed to correct errors in a timely manner and to minimize the likelihood of errors going undetected. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: A process was implemented that includes the approval of the Controller prior to G5 federal financial aid draws. Name(s) of the contact person(s) responsible for corrective action: Angie Dobbins, Controller Planned completion date for corrective action plan: June 2022
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