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Finding 528452 (2024-005)
Significant Deficiency 2024
Type of Finding: Significant Deficiency in Internal Control over Compliance Condition: We noted that for the following during our testing: • Return of Title IV: When a student withdraws from an institution, the institution must calculate the amount of aid to be returned to the Department of Educa...
Type of Finding: Significant Deficiency in Internal Control over Compliance Condition: We noted that for the following during our testing: • Return of Title IV: When a student withdraws from an institution, the institution must calculate the amount of aid to be returned to the Department of Education (ED). The following institutions did not have an observable, auditable internal control over compliance to ensure the calculations of the amounts to be returned were accurate and timely: o Emporia State University o Kansas State University • Verification: For students selected by the ED, institutions are required to verify certain applicant information. The following institutions did not have an observable, auditable internal control over compliance to ensure the verification process was done in compliance with ED regulations: o Emporia State University Recommendation: The institutions should implement observable, auditable internal controls over the Return of Title IV and Verification processes to 1) be compliant with federal regulations and 2) prevent possible instances of noncompliance, errors, and/or fraud. Views of responsible officials: There is no disagreement with the audit finding. Kansas State University management would like to stress that this was not an identified issue in previous audits and there were no issues identified with the calculation of the amounts to be returned, the return of the funds, or the timing in which Title IV Funds were returned for the items selected for compliance testing. Action taken in response to finding: Kansas State University: The University will take immediate action to implement a business practice that will allow for the documentation of a review process for processing R2T4 calculations and return of federal funds. Specifically, the individual responsible for carrying out the R2T4 process will submit the calculation to an assistant or associate director for review and approval. The reviewer, in turn, will provide their signature if approved. The approval will be associated with the R2T4 supporting documentation within the student’s financial aid file. Emporia State University: The University will evaluate internal controls around Return of Title IV and Verification and implement a formalized process to document the review of these processes, including: 1. Hiring additional staff in the Office of Financial Aid to provide support in the area of Return of Title IV, Verification, and other program administration. a. As of March 5, 2025 a position was posted for an “Assistant Director of Compliance” who will be responsible for the oversight of these specific areas as well as contributing toward quality assurance and policy and procedure development. b. As of March 5, 2025, a position was posted for a Financial Aid Coordinator to support internal processes for the administration of financial aid. 2. Drafting of an internal controls document to identify compliance controls within office policy and procedures. This will specifically include controls for Return of Title IV funds and Verification, as well as other key areas. a. Verification Controls – Ensure accuracy and completeness of verification files by: i. Implementing a comprehensive policy and procedure for verification processing. Include specific steps for completing verification, monitoring/logging completed verification files and corrections, and executing internal audits by a second individual. b. Return of Title IV Funds - Ensure accuracy and completeness of R2T4 files by: i. Implementing a comprehensive policy and procedure for withdrawal/return of funds processing. Include specific steps for identifying withdrawals, completing the return calculation, and executing internal audits by a second individual. Name(s) of the contact person(s) responsible for corrective action: Kansas State University: Tanya McGee, Associate Director within the Office of Student Financial Assistance. Emporia State University: Rebecca Grooters, Director of Financial Aid, Scholarships, Veteran Services Planned completion date for corrective action plan: Kansas State University: Full implementation to begin with R2T4 processes no later than March 15, 2025 Emporia State University: Onboarding new staff is critical to implementing the corrective action plan to ensure adequate staffing for training and oversight as described above. • By March 14, 2025: Approve Internal Controls document for outlining control parameters. Also, begin review of office policy and procedures related to Return of Title IV and Verification for completeness and accuracy. • By April 14, 2025: Have internal policy and procedure document edits completed and begin training new Assistant Director of Compliance on these processes using updated/comprehensive policy and procedure documentation. • By May 1, 2025: Fully implement internal audit protocol for a second reviewer to include monitoring of 1/4 of processed return calculations and verification records.
Finding 528451 (2024-004)
Significant Deficiency 2024
Type of Finding: Significant Deficiency in Internal Control Over Compliance, Other Matters Condition: We identified that for February 2024, Fort Hays State University (FHSU or the University) did not perform the monthly required Direct Loan reconciliation. Recommendation: We recommend the Univers...
Type of Finding: Significant Deficiency in Internal Control Over Compliance, Other Matters Condition: We identified that for February 2024, Fort Hays State University (FHSU or the University) did not perform the monthly required Direct Loan reconciliation. Recommendation: We recommend the University implement procedures to ensure reconciliations are properly completed and reviewed each month. Views of responsible officials: There is no disagreement with the audit finding. Action taken in response to finding: After the system issues were identified in February 2024 the University utilized a consultant to resolve these issues and were able to successfully complete reconciliations through the remainder of the year. Workday has since delivered functionality that allows for the SAS reports to import directly into Workday. This delivered functionality will prevent the failure for the February 2024 reconciliation from occurring in the future. Name(s) of the contact person(s) responsible for corrective action: Chantelle Arnold Planned completion date for corrective action plan: August 2024
Finding 528450 (2024-003)
Significant Deficiency 2024
Type of Finding: Significant Deficiency in Internal Control Over Compliance, Other Matters Condition: We identified two Direct Loan disbursements made by Fort Hays State University (FHSU or the University) in which the University did not make the required notification. Recommendation: We recommen...
Type of Finding: Significant Deficiency in Internal Control Over Compliance, Other Matters Condition: We identified two Direct Loan disbursements made by Fort Hays State University (FHSU or the University) in which the University did not make the required notification. Recommendation: We recommend the University implement review procedures to ensure disbursement notifications are properly functioning prior to disbursing Direct Loans. Views of responsible officials: There is no disagreement with the audit finding. Action taken in response to finding: At the time the expiration of the engagement plan was discovered in September 2023, it was immediately resolved and put back into place to continue sending notices. We have implemented new ERP functionality and safeguards in place to ensure these engagement plans don’t expire and stop running without our knowledge and action to extend or update them. Name(s) of the contact person(s) responsible for corrective action: Dane Lonnon Planned completion date for corrective action plan: September 2023 and ongoing
Condition: Of the seven students selected for enrollment reporting testing, the Seminary did not properly update the student enrollment information for one student accurately or in a timely manner. Planned Corrective Action: The Seminary will update our institutional policies and definitions of the ...
Condition: Of the seven students selected for enrollment reporting testing, the Seminary did not properly update the student enrollment information for one student accurately or in a timely manner. Planned Corrective Action: The Seminary will update our institutional policies and definitions of the various types of enrollment status’s allowed to be reported to NSLDS to conform to the federal regulations. Contact person responsible for corrective action: Ashley Schreiner, Director of Financial Aid Anticipated Completion Date: 2/19/25
Condition: During our review of internal controls, it was noted that the Seminary does not have a policy or procedures in place, as required by the Code of Federal Regulations Planned Corrective Action: Garrett has implemented a written policy and procedure that complies with regulations. Contact pe...
Condition: During our review of internal controls, it was noted that the Seminary does not have a policy or procedures in place, as required by the Code of Federal Regulations Planned Corrective Action: Garrett has implemented a written policy and procedure that complies with regulations. Contact person responsible for corrective action: Ashley Schreiner, Director of Financial Aid Anticipated Completion Date: 2/13/25
Condition: The College did not send out the post-disbursement email notifications to a group of students. Planned Corrective Action: The Financial Aid Office has taken immediate action to ensure that students are sent the appropriate loan disbursement notifications and is planning a longterm automat...
Condition: The College did not send out the post-disbursement email notifications to a group of students. Planned Corrective Action: The Financial Aid Office has taken immediate action to ensure that students are sent the appropriate loan disbursement notifications and is planning a longterm automated solution. Southwestern Michigan College does not automatically package loans in a student's initial financial aid offer. This strategy was part of a default management plan developed in 2014. As a result, we manually process loan requests throughout the semester as students notify us that they wish to borrow, and complete the Entrance Counseling and Master Promissory Note requirements on studentaid.gov. We will now run the disbursement notification process each week throughout the entire semester to ensure timely notifications. We are also planning to implement a long-term automated solution. This would be a process in our ERP system and will run automatically using our scheduler software. The process will send an email notification to students as new loans are processed. A record of this notification will be retained in our ERP system. Contact person responsible for corrective action: Lauren Mow, Director of Financial Aid Anticipated Completion Date: Immediate corrective action taken with automation planned for Fall 2025.
Auditor’s Recommendation: We recommend the University strengthen the controls in place to provide assurance that proper review occurs and retain documentation needed for an audit. Views of Responsible Officials and Planned Corrective Action: In regards to the Stipends sample, the University cannot d...
Auditor’s Recommendation: We recommend the University strengthen the controls in place to provide assurance that proper review occurs and retain documentation needed for an audit. Views of Responsible Officials and Planned Corrective Action: In regards to the Stipends sample, the University cannot determine the accuracy of the audit without seeing the sample materials with the deficiencies. Our corrective action at this time is as follows: We will evaluate our current process and look for a breakdown in the process. We will then revise the process and policy accordingly. In all cases, ORSP will review for compliance and we will monitor the processes for potential deficiencies throughout FY25. Timeline and Estimated Completion Date: June 30, 2025 Responsible Party: Office of Research and Sponsored Projects and Grant Principal Investigators.
Auditor’s Recommendation: The auditor recommends the University strengthen controls in place to provide assurance that proper review occurs with someone knowledgeable with the grant and retain backup documentation to support amounts charged to grant. Views of Responsible Officials and Planned Correc...
Auditor’s Recommendation: The auditor recommends the University strengthen controls in place to provide assurance that proper review occurs with someone knowledgeable with the grant and retain backup documentation to support amounts charged to grant. Views of Responsible Officials and Planned Corrective Action: In regards to the non payroll sample, the University cannot determine the accuracy of the audit without seeing the sample materials with the deficiencies. The normal process for FY24 and going forward: Chrome River invoices and purchase requisitions is as follows: Authorized signatory on the grant (often the PI) submits the pre approval for the purchase requisition for University consideration. ORSP office reviews the purchase for compliance with the grant or contract and the code of federal regulations. Purchasing also reviews for compliance with federal regulations and other state and local guidelines. VP and Presidential signatures are required for large purchases. Certain classes of purchases (food) also require further review and high level signatures. All purchases will be send to AP for final review and processing. Our corrective action is to examine the documentation in the sample to see where the breakdown in control is occurring and revise our process. Timeline and Estimated Completion Date: Commencing Jan 2025 and revise process accordingly. Responsible Party: Grant personnel, Office of Research and Sponsored Projects, Director of Purchasing, Business office, Vice President of Finance and Administration.
Auditor’s Recommendation: We recommend the University strengthen the controls in place to provide assurance that proper review occurs and retain documentation needed for an audit. Views of Responsible Officials and Planned Corrective Action: Management agrees that there have been significant challen...
Auditor’s Recommendation: We recommend the University strengthen the controls in place to provide assurance that proper review occurs and retain documentation needed for an audit. Views of Responsible Officials and Planned Corrective Action: Management agrees that there have been significant challenges with the Paycom system and the approval of the contracts. We are currently working on signature workflows to ensure proper approval for our student, staff and faculty employees. We have begun a team effort among staff in following offices : HR , ORSP, BO, AA, ITS and VPFA. We are working to ensure that all personnel in the chain of the workflow know what signatures are required on different types of contracts. We plan to train relevant staff to recognize when appropriate approvals are not in place and return contracts and timesheets for proper approval. Supervisor training is planned for January 27, 2025 to ensure that supervisors as well as employees take responsibility. In regards to the time and effort, we need a software solution that automatically generates these reports for us and payroll information ties to the payroll system and general ledger. At this time the majority of all the reports generated out of Paycom require intensive manual work in multiple offices. The BO and ORSP will be working on IDC identifying issues and determining solutions. Timeline and Estimated Completion Date: Changes will be implemented in January to be completed by June 30, 2025. Responsible Party: Office of Research and Sponsored Projects, Comptroller and Director of Human Resources
View Audit 346437 Questioned Costs: $1
Context: For the one project sampled for Davis-Bacon requirements, the School Corporation did not obtain the weekly payroll reports certifications from the company that performed renovations on the School Corporation. Therefore, no review was performed to ensure that pay rates complied with the fed...
Context: For the one project sampled for Davis-Bacon requirements, the School Corporation did not obtain the weekly payroll reports certifications from the company that performed renovations on the School Corporation. Therefore, no review was performed to ensure that pay rates complied with the federal wage rate requirements. Additionally, the School Corporation did not have a contract with the company that included the clause for the federal wage rate requirements. The total amount disbursed and reported on the SEFA during the audit period is $467,094 and the labor portion was not determinable by the School Corporation. Contact Person Responsible for Corrective Action: Abigail Lindsey Contact Phone Number: 765-853-5464 Views of Responsible Official: We concur with the finding. Description of Corrective Action Plan: Corporation will ensure that they follow the Davis-Bacon requirements. Anticipated Completion Date: 05/01/2025
Context: The School Corporation was required to submit two Annual Data Reports to the Indiana Department of Education (IDOE) during the audit period to meet federal reporting requirements for ESSER grant awards. We noted that the ESSER II and ESSER III amounts reported for the reports covering the ...
Context: The School Corporation was required to submit two Annual Data Reports to the Indiana Department of Education (IDOE) during the audit period to meet federal reporting requirements for ESSER grant awards. We noted that the ESSER II and ESSER III amounts reported for the reports covering the FY22 time period ($0 and $0, respectively) did not agree to the underlying expenditure records ($79,112 and $99,245 respectively, for the period of July 1, 2021 through June 30, 2022). Additionally, we noted that the ESSER II, and ESSER III amounts reported for the reports covering the FY23 time period ($178,829 and $874,154, respectively) did not agree to the underlying expenditure records ($159,450 and $789,489), respectively, for the period of July 1, 2022 through June 30, 2023). We also noted there was no documented, secondary review of the information in the annual data reports by someone other than the preparer. Contact Person Responsible for Corrective Action: Abigail Lindsey Contact Phone Number: 765-853-5464 Views of Responsible Official: We concur with the finding. Description of Corrective Action Plan: Corporation will make sure all expenditures match annual data reports. Anticipated Completion Date: 05/01/2025
Context: The School Corporation was required to submit one workbook covering FY21 and FY22 to the Indiana Department of Education (IDOE) during the audit period to meet federal the Level of Effort - Maintenance of Effort requirements. We noted the amounts reported covering the FY21 time period ($86...
Context: The School Corporation was required to submit one workbook covering FY21 and FY22 to the Indiana Department of Education (IDOE) during the audit period to meet federal the Level of Effort - Maintenance of Effort requirements. We noted the amounts reported covering the FY21 time period ($865,515) did not agree to the underlying expenditure records ($1,474,349 for the period of July 1, 2020 through June 30, 2021). Additionally, we noted the amounts reported covering the FY22 time period ($937,948) did not agree to the underlying expenditure records ($2,695,619, for the period of July 1, 2021 through June 30, 2022). Contact Person Responsible for Corrective Action: Abigail Lindsey Contact Phone Number: 765-853-5464 Views of Responsible Official: We concur with the finding. Description of Corrective Action Plan: Business Manager will work with INDLS to ensure the MOE workbook matches expenditures. Anticipated Completion Date: 06/30/25
Context: The School Corporation pays one hundred percent of its Special Education Cluster funding to one service provider. From review of the expense population, we noted 2 payments to the service provider where the service provider was not paid until after liquidation date of December 29, 2023. Th...
Context: The School Corporation pays one hundred percent of its Special Education Cluster funding to one service provider. From review of the expense population, we noted 2 payments to the service provider where the service provider was not paid until after liquidation date of December 29, 2023. The School Corporation did not pay the service provider until April 30, 2024 for $258,488 for the services provided. Contact Person Responsible for Corrective Action: Abigail Lindsey Contact Phone Number: 765-853-5464 Views of Responsible Official: We concur with the finding. Description of Corrective Action Plan: Corporation will have all Special Ed funds paid before liquidation date. Anticipated Completion Date: 12/29/25
Context: The School Corporation pays one hundred percent of its Special Education Cluster funding to one service provider. For 1 of the 5 sample payments to the service provider, the School Corporation only reviewed a summary level invoice from the service provider which did not include the underly...
Context: The School Corporation pays one hundred percent of its Special Education Cluster funding to one service provider. For 1 of the 5 sample payments to the service provider, the School Corporation only reviewed a summary level invoice from the service provider which did not include the underlying support or detail of the reimbursable costs incurred by the service provider. The sample amount paid to the service provider without underlying support or detail was $1,138,684. The lack of underlying support was isolated to the 22611-122-PN01 grant. The School Corporation received the support for all other payments tested. Contact Person Responsible for Corrective Action: Abigail Lindsey Contact Phone Number: 765-853-5464 Views of Responsible Official: We concur with the finding. Description of Corrective Action Plan: Corporation and INDLS has already put in place to receive a detailed invoice for Special Education funds. Going forward INDLS will provide detailed invoices for all reimbursable costs. Anticipated Completion Date: 05/01/2025
Finding 528301 (2024-001)
Significant Deficiency 2024
Finding 2024-001 - U.S. Department of Education (USD), Title IV Student Financial Aid Programs (significant deficiency): Information on the federal program – Federal Pell Grant Program, FAL No. 84.063, June 30, 2024; Federal Work-Study Program, FAL No. 84.033, June 30, 2024; Federal Supplemental Opp...
Finding 2024-001 - U.S. Department of Education (USD), Title IV Student Financial Aid Programs (significant deficiency): Information on the federal program – Federal Pell Grant Program, FAL No. 84.063, June 30, 2024; Federal Work-Study Program, FAL No. 84.033, June 30, 2024; Federal Supplemental Opportunity Grant Program, FAL No. 84.007, June 30, 2024; Federal Direct Student Loan Program, FAL No. 84.268, June 30, 2024; Teachers Education Assistance for College (TEACH), FAL No. 84.379, June 30, 2024 Criteria – Federal regulations governing Title IV programs. Condition – Instances of noncompliance were noted as more fully described in the context below. Questioned Costs – $0 Context – We observed the following conditions in connection with our testing of the various U.S. Department of Education, Title IV, Student Financial Assistance Programs: (a) Six (6) out of 6 students tested for withdrawals and the return of Title IV funds were completed using the incorrect semester dates. 34 CFR 668.22. (b) Three (3) out of 3 students tested for Enrollment Reporting had untimely reporting. 34 CFR 685.309(b), 34 CFR 682.610(c), 34 CFR 674.33(j). (c) We noted postings for the Fall and Spring awards in Direct Loans and Pell were posted to student accounts after the payment period and fiscal year ended June 30, 2024. Cause – Oversight by responsible employees of properly monitoring regulatory requirements. Effect – The College’s participation in the Title IV programs could be subject to USDE sanctions as applicable. Repeat Finding – No. Auditor's Recommendation – The College should implement corrective actions to ensure that the above findings are resolved and will not recur in future periods. View of Responsible Officials – (a) All six students have been recalculated with the correct date. The issue originated from implementing the Colleague (ERP) system. The College has now established a procedure to ensure this process is reviewed during the RT24 calculation. (b) The College has hired a financial professional with experience in the Colleague (ERP) system. This professional has provided staff training and established standard operating procedures to promote better operating efficiency and effectiveness. (c) The issue resulted from implementing the Colleague (ERP) system. Standard Operating Procedures have been developed, and the financial aid staff has been trained to help prevent these types of issues in the future.
Finding 2024-001 – Activities Allowed or Unallowed, Allowable Costs/Cost Principles, and Period of Performance Identification of the federal program: Federal Grantor: United States Department of Treasury Assistance Listing No.: 21.027, COVID-19 Coronavirus State and Local Fiscal Recovery Funds Pass...
Finding 2024-001 – Activities Allowed or Unallowed, Allowable Costs/Cost Principles, and Period of Performance Identification of the federal program: Federal Grantor: United States Department of Treasury Assistance Listing No.: 21.027, COVID-19 Coronavirus State and Local Fiscal Recovery Funds Pass-Through Grantor: Michigan Health & Hospital Association Ascension Ministry Market: Michigan Pass-Through Award Number: SLFRP0127 Pass-Through Award Period: 12/01/2021-09/30/2023 Views of responsible officials: Ascension will reinforce the importance of timely approval of timecards for those participating in grant activities. For this grant, Ascension was allowed to identify eligible expenditures retrospectively; thus, grant-specific approval processes were not performed. All expenditures submitted for reimbursement were validated for adherence to the terms and conditions of the award. Responsible Official: Rob Madsen, Director of Accounting and Reporting, Grants & Research Anticipated completion date: May 1, 2025
2024-001 - Student Financial Aid Cluster - (a) Federal Supplemental Educational Opportunity Grants (b) Federal Work Study Program (c) Federal Perkins Loan Program - Federal Capital Contributions (d) Federal Pell Grant Program (e) Federal Direct Student Loans (f) Teacher Education Assistance for Coll...
2024-001 - Student Financial Aid Cluster - (a) Federal Supplemental Educational Opportunity Grants (b) Federal Work Study Program (c) Federal Perkins Loan Program - Federal Capital Contributions (d) Federal Pell Grant Program (e) Federal Direct Student Loans (f) Teacher Education Assistance for College and Higher Education (TEACH), Assistance Listing No. (a) 84.007 (b) 84.033 (c) 84.038 (d) 84.063 (e) 84.268 (f) 84.379- Year Ended June 30, 2024 Condition: The College did not properly calculate the refunds for withdrawal students for 1 out of the 8 students tested (12.5%) due to using incorrect student status for Pell. We consider this finding to be an instance of noncompliance in relation to Special Tests and Provisions and a repeat of prior year finding 2023-002. Statistical sampling was not used. Management Response: The incident identified above was made due to a system error which caused one course to appear twice on the student resulting in incorrect full-time status, which in tum resulted in the SIS calculating the return of title IV funds incorrectly. Corrective Action Plan: Each student will be manually reviewed and verified for accuracy for credit hours enrolled and credit hours billed to cross check student enrollment status prior to completing R2T4. In addition, moving forward all R2T4 calculations will be done in COD to ensure accuracy of the funds required to be returned. Responsible Person: Chilwana Thompson, Director Implementation Date: 10/25/2024
View Audit 346296 Questioned Costs: $1
Finding 2024-002: Allowable Activities NHA Corrective Action: A new study has been completed by the administrative staff then reviewed by the fee accounting staff. The percentage of allocation has been adjusted according to the time spent on each program. With those results the percentages of t...
Finding 2024-002: Allowable Activities NHA Corrective Action: A new study has been completed by the administrative staff then reviewed by the fee accounting staff. The percentage of allocation has been adjusted according to the time spent on each program. With those results the percentages of the time allocation increased. The agency was transferring funds on a regular basis by the old percentage estimation which was less than the new time study percentage. The percentage of allocation was more than the estimation which then created a larger deficit of repayment. Now that the percentage has been determined the estimated amount will be more accurate percentages. It has been difficult to get financial statements in time to make a transfer of percentages for the exact amount. Going forward, the fee accounting firm will complete the monthly financial reports and will add a transmittal letter. Voucher program’s reimbursement of Public Housing Funds will be based on each month’s transmittal letter which will allow for exact reimbursement of prior month along with estimate of the current month. Allocated expenses once the financials are received from the fee accountant.
Finding No. 2024-003: Compliance Controls Responsible Individuals: Stephanie Mayfield, Executive Director Corrective Action Plan: The Organization is continuing to evaluate its internal control systems to ensure proper segregation of duties surrounding various compliance requirements with grant prog...
Finding No. 2024-003: Compliance Controls Responsible Individuals: Stephanie Mayfield, Executive Director Corrective Action Plan: The Organization is continuing to evaluate its internal control systems to ensure proper segregation of duties surrounding various compliance requirements with grant programs. The Organization cancelled contracts with grant partners that refused to comply with eligibility internal control processes. Additionally, the Organization purchased grant tracking software to track participant data including eligibility and tuition and stipend payments. Anticipated Completion Date: June 30, 2025
Finding 2024-005 Finding Subject: Special Education Cluster (IDEA) - Earmarking Contact Person Responsible for Corrective Action: Beverly Hindes Contact Phone Number: 219-996-4771 x128 Views of Responsible Officials: We agree with the finding. Description of Corrective Action Plan: The Treasurer wil...
Finding 2024-005 Finding Subject: Special Education Cluster (IDEA) - Earmarking Contact Person Responsible for Corrective Action: Beverly Hindes Contact Phone Number: 219-996-4771 x128 Views of Responsible Officials: We agree with the finding. Description of Corrective Action Plan: The Treasurer will work with the Special Education Co- op to ensure compliance with the Earmarking requirement. Anticipated Completion Date: March 31, 2025
Finding 2024-003 Finding Subject: Child Nutrition Cluster - Eligibility Contact Person Responsible for Corrective Action: Kelsey Rodriguez and Beverly Hindes Contact Phone Number: 574-229-2209 and 219-996-4771 x128 Views of Responsible Officials: We agree with the finding. Description of Corrective ...
Finding 2024-003 Finding Subject: Child Nutrition Cluster - Eligibility Contact Person Responsible for Corrective Action: Kelsey Rodriguez and Beverly Hindes Contact Phone Number: 574-229-2209 and 219-996-4771 x128 Views of Responsible Officials: We agree with the finding. Description of Corrective Action Plan: The Treasurer will ensure compliance with the Food Service Director (NIESC) Kelsey Rodriguez, with the student determination guidelines to receive free or reduced priced meals. The designee will review and sign off. Additionally, all documentation will be maintained. Anticipated Completion Date: March 31, 2025
FINDING 2024-005 Finding Subject: COVID-19 – Education Stabilization Fund – Special Tests and Provisions – Wage Rate Requirements Summary of Finding: An effective internal control system was not in place at the school corporation in order to ensure compliance with requirements related to the grant a...
FINDING 2024-005 Finding Subject: COVID-19 – Education Stabilization Fund – Special Tests and Provisions – Wage Rate Requirements Summary of Finding: An effective internal control system was not in place at the school corporation in order to ensure compliance with requirements related to the grant agreement and the Special Tests and Provisions – Wage Rate Requirements compliance requirement. The school corporation had four applicable construction projects using ESF funds during the audit period; however, related contracts did not contain the required prevailing wage rate clause. Additionally, the school corporation did not obtain certified payroll documentation from contractors as required through the construction projects and audit periods. It is recommended that the school corporation’s management establish a system of internal controls and include the wage rate requirement clause in federally funded construction contracts. In addition, certified payrolls should be obtained as required for all federally funded construction contracts in excess of $2,000. Contact Person Responsible for Corrective Action: John Szabo, Director of Business Affairs Contact Phone Number and Email Address: (812) 443-4461 / szaboj@clay.k12.in.us Views of Responsible Officials: We concur with the finding. Description of Corrective Action Plan: For any future federally funded construction contracts in excess of $2,000, the Director of Business Affairs will ensure that all prevailing wage language is included in contracts. Also, both the Director of Business Affairs and the Director of Extended Services will work with all related parties (construction manager, contractors, and sub-contractors if necessary) to monitor and certify payrolls related to the applicable construction projects. Anticipated Completion Date: Immediately, upon the next time entering into a federally-funded construction contract in excess of $2,000.
FINDING 2024-004 Finding Subject: COVID-19 – Education Stabilization Fund - Reporting Summary of Finding: The school corporation had not designed or implemented a system of internal controls to ensure that the Elementary and Secondary School Emergency Relief (ESSER) annual data reports (Reports) wer...
FINDING 2024-004 Finding Subject: COVID-19 – Education Stabilization Fund - Reporting Summary of Finding: The school corporation had not designed or implemented a system of internal controls to ensure that the Elementary and Secondary School Emergency Relief (ESSER) annual data reports (Reports) were complete and accurately submitted. The reports were prepared by the Director of Business Affairs without a documented oversight, review or approval process in place to prevent, or detect and correct, errors. It is recommended that the school corporation’s management establish internal controls to ensure compliance with the grant agreement and Reporting compliance requirement. Any and all future ESSER reports submitted in Jotform should document an oversight, review or approval process by someone other than the Director of Business Affairs. Contact Person Responsible for Corrective Action: John Szabo, Director of Business Affairs Contact Phone Number and Email Address: (812) 443-4461 / szaboj@clay.k12.in.us Views of Responsible Officials: We concur with the finding. Description of Corrective Action Plan: When completing data reporting, as requested by the state, for federally funded emergency relief grant funding, the Director of Business Affairs will compile the data necessary to complete the reporting. The data will then be presented to the appropriate member of corporation management for review – data related to student enrollment, eligibility, or other information will be presented to the corporation Data Coordinator. Data related to employee positions, or other employment related data, will be presented to the Director of Human Resources. All other data, including but not limited to corporation financial data, will be presented to the Assistant Superintendent. Anticipated Completion Date: Immediately, upon next required data submission for Education Stabilization Fund reporting.
FINDING 2024-003 Finding Subject: Title I Grants to Local Educational Agencies – Special Tests & Provisions – Supplement Not Supplant Summary of Finding: During the Audit period, there were three Title I applications. One of the three applicable grant year applications included information in the su...
FINDING 2024-003 Finding Subject: Title I Grants to Local Educational Agencies – Special Tests & Provisions – Supplement Not Supplant Summary of Finding: During the Audit period, there were three Title I applications. One of the three applicable grant year applications included information in the supplement, not supplant section. The other two applications were blank for this section. Documentation of the calculations and per pupil expenditure comparisons were not provided for the audit. Additionally, the Indiana Department of Education (IDOE) monitors compliance with this requirement using Comparability Reports, which compare Full-Time Equivalent (FTE) staff positions for Title I schools to FTE staff positions for non-Title I schools within the school corporation. Although IDOE determined that FTE staff positions were comparable in the 2022, 2023, and 2024 Comparability reports, the school corporation was unable to provide supporting documentation for the FTE staff numbers reported to IDOE. It is recommended that the school corporation adopt and document an acceptable methodology to allocate State and local funds to schools. In addition, it is recommended the calculation of such methodology and any other supporting documentation be retained for audit. Contact Person Responsible for Corrective Action: John Szabo, Director of Business Affairs Contact Phone Number and Email Address: (812) 443-4461 / szaboj@clay.k12.in.us Views of Responsible Officials: We concur with the finding Description of Corrective Action Plan: Title I Grant Coordinator, currently Dr. Brady Scott, will monitor this requirement using Comparability reports, as an option considered by the Indiana Department of Education (IDOE). In doing so, the Grant Coordinator will complete a list of FTE staff positions for each Title I school, as well as non-Title I school according to the methodology designed for school corporations as communicated by the IDOE. The Grant Coordinator will confer with the corporation Payroll Specialist (currently Mary Mershon) to ensure accuracy of the data used to complete the reporting, and both the Grant Coordinator and the Director of Business Affairs will maintain a record of the data used to complete the report. Anticipated Completion Date: July 2025
FINDING 2024-002 Finding Subject: Title I Grants to Local Educational Agencies - Earmarking Summary of Finding: The school corporation was unable to provide documentation showing that it met the Earmarking requirements for its Homelessness Reservation. Additionally, the school corporation did not ca...
FINDING 2024-002 Finding Subject: Title I Grants to Local Educational Agencies - Earmarking Summary of Finding: The school corporation was unable to provide documentation showing that it met the Earmarking requirements for its Homelessness Reservation. Additionally, the school corporation did not carry over the funds to provide Title I, Part A services to students experiencing homelessness in the subsequent school year and reserve funds from the next year’s grant award for this purpose as required. No expenditures related to the homelessness earmarking requirement were identified. It is recommended that the School Corporation’s management strengthen its system of internal controls to ensure Homelessness Reservation and Parental set-aside expenditures are monitored throughout the period of performance to ensure Earmarking requirements are met before expiration of the grant. Contact Person Responsible for Corrective Action: John Szabo, Director of Business Affairs Contact Phone Number and Email Address: (812) 443-4461 / szaboj@clay.k12.in.us Views of Responsible Officials: We concur with the finding. Description of Corrective Action Plan: Director of Business Affairs and the Title I Grant Coordinator (currently John Szabo and Dr. Brady Scott, respectively) will review initial Title I budget to verify amount of Homelessness reservation and Parental set-aside. They will create a plan of expenditure for both reservations, and will work with corporation homeless student liaison (currently Rachel Kiefer) to execute the plan. Director of Business Affairs will periodically monitor reimbursements to ensure that spending plan is being completed and that funds are expended appropriately, and will report this to Title I Grant Coordinator upon review. Anticipated Completion Date: July 2025
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