Corrective Action Plans

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We will implement stricter adherence to deadlines and ensure that all required annual deposits to residual receipts are completed within 90 days of year end.
We will implement stricter adherence to deadlines and ensure that all required annual deposits to residual receipts are completed within 90 days of year end.
Auditor Description of Condition and Effect. During our testing we noted that there was not an independent review performed on journal entries related to their federal grant program. Without a review process, there is an increased risk of inaccurate financial reporting and potential noncompliance. A...
Auditor Description of Condition and Effect. During our testing we noted that there was not an independent review performed on journal entries related to their federal grant program. Without a review process, there is an increased risk of inaccurate financial reporting and potential noncompliance. Auditor Recommendation. We recommend that the Organization implement a formal review and approval process for all journal entries related to federal grant programs. Corrective Action. Management will implement an independent monthly review of all journal entries, including those related to the federal grant programs. The designated reviewer will be a senior accounting team member or equivalent who does not have the ability to create or approve journal entries in the general ledger system. The designated reviewer will compare the entries to ensure proper documentation, accurate amounts, correct coding, and compliance with the applicable federal grant regulations. Any discrepancies or issues identified during the review will be documented, and corrective actions will be taken immediately. The reviewer will sign off on the entries, confirming that all journal entries meet required standards. Responsible Person. Chris Sargent, President & Executive Officer Anticipated Completion Date. March 31, 2025
Auditor Description of Condition and Effect. During our single audit testing, it was determined that there was no process in place to verify that vendors with transactions in excess of $25,000 were not suspended or debarred. Certain vendors could be used that are considered suspended or debarred by ...
Auditor Description of Condition and Effect. During our single audit testing, it was determined that there was no process in place to verify that vendors with transactions in excess of $25,000 were not suspended or debarred. Certain vendors could be used that are considered suspended or debarred by the federal government resulting in noncompliance. Auditor Recommendation. We recommend that the Organization review its policies over suspension and debarment review to ensure that they are contracting with allowable vendors. Corrective Action. For Federal grants, management will implement a system for verifying that all vendors or subrecipients with transactions exceeding $25,000 are not suspended or debarred by the federal government, ensuring full compliance with federal regulations and minimizing the risk of using prohibited vendors. A mandatory check against the System for Award Management (SAM) database for suspension and debarment status will occur, with a printout or screenshot of the results maintained. Responsible Person. Chris Sargent, President & Executive Officer Anticipated Completion Date. January 31, 2025
Finding 516521 (2024-001)
Significant Deficiency 2024
Finding 2024-001 Return to Title IV Condition While testing R2T4, the University was unable to provide proof of a documented review for 2 of the 25 calculations selected for testing. RESPONSE: Husson University agrees with this finding. The financial aid office had staff turn-over that lead to new s...
Finding 2024-001 Return to Title IV Condition While testing R2T4, the University was unable to provide proof of a documented review for 2 of the 25 calculations selected for testing. RESPONSE: Husson University agrees with this finding. The financial aid office had staff turn-over that lead to new staff taking over this function. As part of the training, the staff who performed these calculations were under the impression that no secondary review was required for students who earned 100% of the awarded financial aid based on withdrawal after the 60% point of the payment period. CORRECTIVE ACTION: Husson reviewed all calculations completed after 60% point of the term for 2023-2024 to ensure they were accurate. Moving forward all R2T4 calculations are reviewed by a second individual. A staff training was completed to ensure that the financial aid staff understand that a second review is required for all R2T4 calculations completed to ensure the calculation is accurate regardless of the % of term completed. RESPONSIBLE PARTY: Sherry Watson, Director of Financial Aid COMPLETION DATE: July 2024
Responsible Individual: Joan Romano, Registrar Contact Information: jromano2@berklee.edu, 617-747-2475 Corrective Actions: Management concurs with the recommendations provided. The Registrar’s Office will implement a reconciliation of the Ellucian Colleague Enrollment Information and data provided t...
Responsible Individual: Joan Romano, Registrar Contact Information: jromano2@berklee.edu, 617-747-2475 Corrective Actions: Management concurs with the recommendations provided. The Registrar’s Office will implement a reconciliation of the Ellucian Colleague Enrollment Information and data provided to NSC (the National Student Clearinghouse). The reconciliations will be reviewed by Ari Kaufman, Associate Registrar, and confirmed by Joan Romano, Registrar before submission to ensure that it’s performed timely and accurately. Notifications or any discrepancies will be sent to NSC immediately informing them of any necessary corrections. Estimated Date of Completion: March 31, 2025 Status of Completion: In Process
Responsible Individual: Kathy Anderson, Associate Vice President, Student Financial Services Contact Information: kanderson8@berklee.edu, 617-747-6595 Management concurs with the recommendations provided. To remediate this issue, there are new personnel assigned to complete the process and ensure th...
Responsible Individual: Kathy Anderson, Associate Vice President, Student Financial Services Contact Information: kanderson8@berklee.edu, 617-747-6595 Management concurs with the recommendations provided. To remediate this issue, there are new personnel assigned to complete the process and ensure there are no gaps. The Director of Financial Aid Operations will ensure that the process is run as scheduled by the Assistant Director of Financial Aid Operations. In addition, there is an overflow schedule with the Operations team, if the primary or secondary Assistant Director assigned to this task will be out of the office on the day the report is run. Berklee has changed the date the notifications are sent to students. Berklee has changed the date the notifications are sent to the students. This ensures that notices are sent on day zero and the following week on day seven. This provides Berklee with a second chance to remediate student records that are not resolved on disbursement date zero. Lastly, we have built in additional controls to this process to include a thorough review of error logs so that any errors are resolved and notification sent within the required timeframe Management concurs with the recommendations provided. . Estimated Date of Completion: March 31, 2025 Status of Completion: In Process
Management agrees with the current year’s finding and recommendations to ensure timeliness of the Return of Title IV funds. Management has determined this to be an isolated incident because the Registrar dropped the student on May 9, 2024, following an investigation into the disparity between the st...
Management agrees with the current year’s finding and recommendations to ensure timeliness of the Return of Title IV funds. Management has determined this to be an isolated incident because the Registrar dropped the student on May 9, 2024, following an investigation into the disparity between the student’s self-reported last date of attendance, March 14, 2024, and the receipt of the form on April 15, 2024. Accordingly, May 9, 2024, became the institution’s determination date due to unknown last date of attendance from the faculty. Furthermore, the University offices were closed at 1pm on April 22, 2024, and closed entirely on April 23, 24, 29, 30. The investigation and University closures took the office outside the 45-day compliance requirement. The University plans to enhance the policy for LOA and Withdrawal forms to have the Last Date of Attendance removed as a student self-reported option. In the future, the determination date will be based on date of receipt of the form and not a student-reported, last date of attendance. We believe this finding will be remediated in fiscal 2025.
Finding 2024-001 – Activities Allowed or Unallowed, Allowable Costs/Cost Principles, and Period of Performance Federal Grantor: United States Department of Homeland Security Assistance Listing No.: Assistance Listing 97.036, COVID-19 Disaster Grants – Public Assistance (Presidentially Declared Disas...
Finding 2024-001 – Activities Allowed or Unallowed, Allowable Costs/Cost Principles, and Period of Performance Federal Grantor: United States Department of Homeland Security Assistance Listing No.: Assistance Listing 97.036, COVID-19 Disaster Grants – Public Assistance (Presidentially Declared Disasters) (FEMA) Pass-Through Grantor: Indiana Department of Homeland Security Federal Award Period of Performance: March 1, 2020 – May 11, 2023 A material weakness was identified related to internal controls over payroll expenses charged to FEMA funds, subject to the Uniform Guidance (UG) audit. This guidance requires internal controls to comply with the terms of the federal award as well as with the "Standards for Internal Control in the Federal Government" issued by the Comptroller General of the United States or the "Internal Control—Integrated Framework" issued by COSO. The finding was a compliance matter and did not result in any questioned costs. Community Foundation of Northwest Indiana, Inc. and Subsidiaries (CFNI) acknowledges the finding related to the lack of documented review and approval of all timecards for payroll expenses charged to federally funded programs. In line with industry standards, CFNI prioritizes timely payroll processing and does not delay payroll for outstanding timecard approvals. While this is not a recurring issue and did not result in any questioned costs, CFNI recognizes the importance of ensuring compliance with all federal requirements. To address this finding and prevent recurrence, CFNI is implementing a comprehensive policy that mandates timely review and approval of all timecards associated with payroll expenses charged to federal grants. Additionally, CFNI is establishing a formal process to monitor adherence to this policy, including regular audits and detailed documentation of the review process. CFNI is committed to strengthening internal controls, improving oversight, and ensuring full compliance with federal grant requirements. Responsible Official: Pamela Pokropinski, VP Finance Status of finding: Completion expected June 2025
Finding 2024-003: Time and Effort Requirements (50000) Assistance Listing No. 84.425 – Education Stabilization Funds (ESSER) U.S. Department of Treasury Passed through California Department of Education Corrective Action Plan To resolve the issue, the Internal Auditor met with the Senior Secretary...
Finding 2024-003: Time and Effort Requirements (50000) Assistance Listing No. 84.425 – Education Stabilization Funds (ESSER) U.S. Department of Treasury Passed through California Department of Education Corrective Action Plan To resolve the issue, the Internal Auditor met with the Senior Secretary, Educational Services to go over the processes in place. Going forward, a list of employees that work on federal programs will be extracted from the accounting system. The Senior Secretary will use this list to see who has or not turned in their time accounting documents. The Secretary will then follow up with the respective employees and/or managers at the sites with missing documents. Responsible Person for Corrective Action Plan Cindy Barnett, Senior Secretary, Educational Services, Christina Filios, Assistant Director: Educational Services Implementation Date of Corrective Action Plan December 19, 2024 – Internal Auditor met with the Secretary to review process and find ways to improve upon it. The District will monitor this process during Fiscal Year 2024-25.
View Audit 334377 Questioned Costs: $1
Recommendation: We recommend the College implement procedures to ensure all requirements of a Tier One arrangement for Third Party Servicers are being met. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: We are no...
Recommendation: We recommend the College implement procedures to ensure all requirements of a Tier One arrangement for Third Party Servicers are being met. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: We are no longer using a Tier One processor for our financial aid refunds. Name(s) of the contact person(s) responsible for corrective action: Margaret Antilla Planned completion date for corrective action plan: Implemented July 2024 when we changed from Bank Mobile to TouchNet.
Recommendation: We recommend the College implement IT policies and create an updated WISP to ensure the College is compliant with the GLBA Safeguards Rule. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: We are wo...
Recommendation: We recommend the College implement IT policies and create an updated WISP to ensure the College is compliant with the GLBA Safeguards Rule. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: We are working on an updated WISP and plan to have it approved by college administration prior to the end of the academic year. Name(s) of the contact person(s) responsible for corrective action: Greg Riehl Planned completion date for corrective action plan: 6/30/2025
Recommendation: We recommend the College implement an internal control that ensures timely and accurate reporting. We also recommend the College implement changes in processes and procedures for NSLDS enrollment reporting and implement an internal control that ensures reporting is both timely and a...
Recommendation: We recommend the College implement an internal control that ensures timely and accurate reporting. We also recommend the College implement changes in processes and procedures for NSLDS enrollment reporting and implement an internal control that ensures reporting is both timely and accurate. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: We have documented and tested enrollment reporting to National Student Clearinghouse from our new SIS, Colleague. NSC is working with us to get our enrollment current. Once hired, our Dean of Students / Registrar will partner with the Enrollment Systems Analyst to ensure enrollment reporting is timely and accurate. Name(s) of the contact person(s) responsible for corrective action: Dean of Students (Interim Sarah Geleynse, position to be hired Winter 2025) Planned completion date for corrective action plan: 6/30/2025
Recommendation: We recommend the College review the requirement and implement an internal process and control to specifically monitor the outstanding Title IV funded checks throughout the year. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action t...
Recommendation: We recommend the College review the requirement and implement an internal process and control to specifically monitor the outstanding Title IV funded checks throughout the year. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: We have implemented a plan to review monthly each outstanding check to ensure that all funds are returned to the Federal programs if appropriate. Name(s) of the contact person(s) responsible for corrective action: Margaret Antilla Planned completion date for corrective action plan: Implemented in September 2024
Recommendation: We recommend the College evaluate its procedures and policies around reporting disbursements to COD to ensure that student information is reported accurately and timely. In addition, the College should revise their procedures to include documentation of the key control. Explanation...
Recommendation: We recommend the College evaluate its procedures and policies around reporting disbursements to COD to ensure that student information is reported accurately and timely. In addition, the College should revise their procedures to include documentation of the key control. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: We have updated our procedure to reconcile Pell and Loans twice monthly to be able to catch any reporting errors within the 15-day reporting window. Name(s) of the contact person(s) responsible for corrective action: Sarah Geleynse Planned completion date for corrective action plan: Implemented September 2024
Student Financial Aid Cluster – Assistance Listing No. 84.063 Recommendation: The College changed systems since the end of this fiscal year, and we recommend the College review the auto-packaging rounding rules of its new system to ensure that the Pell award is calculated in accordance with federal...
Student Financial Aid Cluster – Assistance Listing No. 84.063 Recommendation: The College changed systems since the end of this fiscal year, and we recommend the College review the auto-packaging rounding rules of its new system to ensure that the Pell award is calculated in accordance with federal regulations. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: We have implemented the auditor’s recommendation and thoroughly tested award rounding in the new SIS. Name(s) of the contact person(s) responsible for corrective action: Sarah Geleynse Planned completion date for corrective action plan: Implemented September 2024
2024-002 INTERNAL CONTROL OVER COMPLIANCE WITH ACTIVITIES ALLOWED OR UNALLOWED AND ALLOWABLE COSTS/COST PRINCIPLES – PAYROLL ACTIVITIES Procedures have been established requiring supervisors to review and approve time charged to Federal projects as a part of the internal control process and ongoing...
2024-002 INTERNAL CONTROL OVER COMPLIANCE WITH ACTIVITIES ALLOWED OR UNALLOWED AND ALLOWABLE COSTS/COST PRINCIPLES – PAYROLL ACTIVITIES Procedures have been established requiring supervisors to review and approve time charged to Federal projects as a part of the internal control process and ongoing monitoring of federal awards. The current internal control policies and procedures will be strengthened and enforced to ensure employees are preparing and certifying, and supervisors and/or program managers are approving hours charged to all federal projects monthly. Individual(s) Responsible for Corrective Action Plan: John Chomiak Chief Financial & Administration Officer, NMSC 312-610-5615 Anticipated Completion Date: June 30, 2025
Recommendation: The auditors recommend the University continue to focus on improving internal controls surrounding the calculation and posting of, as well as review of, budget adjustments. The auditors recommend further that the University ensure this process is well documented in a formal policy. A...
Recommendation: The auditors recommend the University continue to focus on improving internal controls surrounding the calculation and posting of, as well as review of, budget adjustments. The auditors recommend further that the University ensure this process is well documented in a formal policy. Action taken: Identified common causation factors that contributed to the finding. In this particular case, the student’s budget was adjusted more than once due to changes in both her graduation date and her tuition rate during her final year. Her budget was not adjusted correctly. The issues identified are: o Identifying when tuition charge has been adjusted. o Having another financial aid staff member review changes to the budget adjustment(s). The following actions were taken: o Reached out for assistance identifying students whose tuition has been reduced. Was provided with a report we can run before financial aid disburses, “FA Registration”, which will capture all changes to each student’s tuition. o Have included running this report in the steps completed prior to aid disbursement. o Reviewed and refined steps already in place, specifically addressing the processing of budgets for students who are off cycle during a semester. Steps are outlined in document “23-24 Budget Adjustment Quality Control Process” and include:  Templates to be used for correct budgets.  Assigned two-letter comment codes that will identify students with budget adjustment for off-cycle attendance.  Created a selection set in PowerFAIDS to capture students with these comment codes in a report.  Created a task in PowerFAIDS that will assign review of completed budget adjustments to a specific FA staff member. She will review the calculations and sign off on them. These actions have been implemented effective immediately. Name of Responsible Party: Laura Pendleton, Director of Financial Aid Anticipated completion date: October 30, 2024
View Audit 334218 Questioned Costs: $1
Finding: 2024-004 Federal Agency Name: U.S. Department of EducationAssistance Listing Number(s): 84.007, 84.033, 84.038, 84.063, and 84.268. Program Name: Student Financial Assistance Cluster Finding Summary: Awards must be coordinated among the various programs and with other federal and nonfede...
Finding: 2024-004 Federal Agency Name: U.S. Department of EducationAssistance Listing Number(s): 84.007, 84.033, 84.038, 84.063, and 84.268. Program Name: Student Financial Assistance Cluster Finding Summary: Awards must be coordinated among the various programs and with other federal and nonfederal aid (need and non-need-based aid) to ensure that total aid is not awarded in excess of the student’s financial need or cost of attendance (34 CFR 668.42, FWS, and FSEOG, 34 CFR 673.5 and 673.6; Direct Loan, 34 CFR 685.301). Financial need is defined as the student’s COA minus the student’s EFC (as computed by the central processor and included on the student’s SAR/ISIR). During the testing of compliance for Eligibility, it was noted students who worked as Resident Advisors for the University, did not have their Title IV aid adjusted for amounts they received via direct payments to cover the cost of their housing. As a result, the University compensated the students for the cost of their housing outside the normal processing and packaging of Title IV aid, resulting in $26,572 of Direct Loans being disbursed to student’s in excess of their financial need. Responsible Individuals: Kella Helyer, Director of Financial Aid Corrective Action Plan: The current year (2024-25) Resident Assistant benefits have been taken into consideration for all applicable students. Anticipated Completion Date: 9/10/2024
View Audit 334105 Questioned Costs: $1
Finding: 2024-002 Federal Agency Name: U.S. Department of Education Assistance Listing Number(s): 84.007, 84.033, 84.038, 84.063, and 84.268. Program Name: Student Financial Assistance Cluster Finding Summary: Each month, the Common Origination and Disbursement (COD) system provides institutions...
Finding: 2024-002 Federal Agency Name: U.S. Department of Education Assistance Listing Number(s): 84.007, 84.033, 84.038, 84.063, and 84.268. Program Name: Student Financial Assistance Cluster Finding Summary: Each month, the Common Origination and Disbursement (COD) system provides institutions with a School Account Statement (SAS) data file which consists of a Cash Summary, Cash Detail, and (optional at the request of the institution) Loan Detail records. The institution is required to reconcile these files to the institution’s financial records. As a result of implementing a new Student Information System, the SAS reconciliations were not completed during the current year. Responsible Individuals: Kella Helyer, Director of Financial Aid Corrective Action Plan: Management agrees with this finding. Compliance on this finding was resolved by the end of the award year with reconciliation being completed by the end of June 2024. Financial aid implemented a new Financial Aid Management System (FAMS) starting with the 2023-24 year which caused delays in processes; however, the office is caught up with reconciliations, and going forward this compliance area is not an issue. Anticipated Completion Date: Completed June 2024
2024-002 Federal Agency: U.S. Department of Treasury Federal Program Name: Coronavirus State and Local Fiscal Recovery Funds Assistance Listing Number: 21.027 Federal Award Identification Number and Year: None Pass-Through Agency: Maryland State Department of Education Pass-Through Number: 211837-...
2024-002 Federal Agency: U.S. Department of Treasury Federal Program Name: Coronavirus State and Local Fiscal Recovery Funds Assistance Listing Number: 21.027 Federal Award Identification Number and Year: None Pass-Through Agency: Maryland State Department of Education Pass-Through Number: 211837-01 Award Period: 3/3/2021 – 12/31/2024 Type of Finding: Significant Deficiency in Internal Control over Compliance Recommendation: We recommend that the Board continue with established policies and procedures implemented in November 2023 to ensure that documentation supporting the Board’s review and approval of the monthly FSR reimbursement requests are retained for audit purposes. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: The Director of Financial Reporting and Grants Management will ensure that the Board’s review and approval of monthly FSR reimbursement requests and documented and retained. Name(s) of the contact person(s) responsible for corrective action: Ruth Grasty Director of Financial Reporting and Grants Management Planned completion date for corrective action plan: For immediate implementation and ongoing.
Finding 516255 (2024-001)
Significant Deficiency 2024
Name of Responsible Individual: Maria Taylor, Registrar & Jenn Hall, Director of Financial Aid Corrective Action: It was identified during the Student Financial Aid audit that Wingate University (WU) is out of compliance with the enrollment reporting requirements for two students (one student at th...
Name of Responsible Individual: Maria Taylor, Registrar & Jenn Hall, Director of Financial Aid Corrective Action: It was identified during the Student Financial Aid audit that Wingate University (WU) is out of compliance with the enrollment reporting requirements for two students (one student at the campus level and one student at both the campus level and program level). We currently contract with the National Student Clearinghouse (NSC) for enrollment reporting and have identified the compliance issue to be a disconnect between the reporting requirements in place with NSC and WU Institutional policy. For each identified student, the student was permitted by WU policy to complete their degree requirements after the end of the academic term. When reporting the Graduated status in NSC, the Registrar is required to select the last date of the term as the Graduation Date instead of the date the student actually completed their degree requirements. When this occurs more than 60 days from the end of the term, the student is noted as out of compliance with reporting requirements due to the limitation identified with NSC. The Registrar and Director of Financial Aid will work with NSC to identify a solution for reporting the actual completion date for a student when it occurs after the conclusion of the standard term and outside of the reporting definitions offered by NSC. If a viable solution cannot be identified with NSC, we will establish a policy to manually update data in NSLDS for impacted students to meet the 60-day reporting requirements for enrollment status changes. Anticipated Completion Date: May 31, 2025
The District is in the process of developing a procurement policy, including prevailing wage rate requirements and will ensure that subcontractors meet the requirements.
The District is in the process of developing a procurement policy, including prevailing wage rate requirements and will ensure that subcontractors meet the requirements.
View Audit 334049 Questioned Costs: $1
Finding No. 2024-004: Financial Aid Administration - Control Deficiency Federal Agency: U.S. Department of Education CFDA Number and Title: 84.268 – Federal Direct Student Loans Questioned Costs: $ - Responsible Individual: Jeff Anderson, Financial Aid Director Date Action Taken: November 14, 2024 ...
Finding No. 2024-004: Financial Aid Administration - Control Deficiency Federal Agency: U.S. Department of Education CFDA Number and Title: 84.268 – Federal Direct Student Loans Questioned Costs: $ - Responsible Individual: Jeff Anderson, Financial Aid Director Date Action Taken: November 14, 2024 The institution was unable to perform exit counseling to the borrower in a timely manner due to competing priorities of the program staff at the time. To ensure these can be done within the given timeframe the financial aid team will re-visit processes as well as provide training to new staff as they are onboarded to ensure back plans are in place in the event that key personnel are out of the office during this timeframe.
Finding No. 2024-003: Financial Aid Administration - Control Deficiency Federal Agency: U.S. Department of Education CFDA Number and Title: 84.268 – Federal Direct Student Loans Questioned Costs: $ - Responsible Individual: Anna Chamberlain, Financial Aid Director Date Action Taken: November 14, 20...
Finding No. 2024-003: Financial Aid Administration - Control Deficiency Federal Agency: U.S. Department of Education CFDA Number and Title: 84.268 – Federal Direct Student Loans Questioned Costs: $ - Responsible Individual: Anna Chamberlain, Financial Aid Director Date Action Taken: November 14, 2024 Loan exit was not conducted within 30 days because of staffing and training issues. The Financial Aid Office now has adequate staff trained to review and perform loan exit counseling as required. The office has also developed written instructions for training in the event of turnover.
CORRECTIVE ACTION PLAN December 3, 2024 The City of Staunton respectfully submits the following corrective action plan for the year ended June 30, 2024. Name and address of public accounting firm: Brown Edwards & Company LLP 1909 Financial Drive Harrisonburg VA 22801 Audit Period: July 1, 2023 – Ju...
CORRECTIVE ACTION PLAN December 3, 2024 The City of Staunton respectfully submits the following corrective action plan for the year ended June 30, 2024. Name and address of public accounting firm: Brown Edwards & Company LLP 1909 Financial Drive Harrisonburg VA 22801 Audit Period: July 1, 2023 – June 30, 2024 The findings from the June 30, 2024 Schedule of Findings and Questioned Costs (the “Schedule”) are discussed below. The findings are numbered consistently with the number assigned in the schedule. FINDINGS AND QUESTIONED COSTS – MAJOR FEDERAL AWARD PROGRAM AUDIT 2024-001: Coronavirus State and Local Fiscal Recovery Funds, ALN 21.027, Matching, Level of Effort, Earmarking - Matching Condition: The revenue loss calculation included inputs from the fiscal year 2022 ACFR that were overstated by approximately $1 million. Criteria: The revenue loss should be calculated by determining the revenue reported in the base year (FY19) and using an estimated growth rate to determine the amount of revenue the locality would have earned had the pandemic not occurred. The revenues reported in subsequent years (FY20, FY21, FY22) should then be compared to the estimated revenue to determine the revenue loss. Both the revenue used in the base and subsequent years should agree to the corresponding year ACFR. Cause: The City’s review of the revenue loss calculation did not detect this error. Effect: The FY22 actual amount reported in the ACFR was approximately $1 million less than what was used in the calculation. There was no impact to the amount of funds claimed under revenue loss. Recommendation: We recommend a review of the calculation prior to finalization. Supporting documentation should be maintained to support all figures in the calculation. Views of Responsible Officials and Planned Corrective Action: We concur with this finding. This error was a result of one of the revenue lines used in the original FY22 estimate not being updated with actual values. There is no impact to the amount of funds claimed under revenue loss because correction of the error results in additional revenue loss, which is not needed in the calculation. The City of Staunton met the entire revenue loss needed by only using a portion of the FY22 calculated revenue loss. Staff will update supporting documentation with the correct figure. If the Federal Audit Clearinghouse has questions regarding this plan, please call Jessie L. Moyers, Chief Financial Officer for the City of Staunton at 540-332-3948. Sincerely, Jessie L. Moyers, CPA Chief Financial Officer City of Staunton VA
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