Corrective Action Plans

Finding 404475 (2022-003)

Material Weakness 2022

WA

Equipment & Real Property Management Internal Control / Segregation of Duties Procurement, Suspension & Debarment

The Division will communicate the importance of timely reporting to granting agencies to program directors and corps officers. Program directors and corps officers will be responsible for identifying agency and grant‐specific reporting requirements and documenting the review and submission of report...

The Division will communicate the importance of timely reporting to granting agencies to program directors and corps officers. Program directors and corps officers will be responsible for identifying agency and grant‐specific reporting requirements and documenting the review and submission of reports to granting agencies. Anticipated Completion Date: October 2024. Responsible Contact Person: Yohannes Gedlu, Northwest Division Controller

View Audit 311047

Finding 403909 (2022-009)

Material Weakness 2022

Aerospace MacHinists Joint Training Committee

WA

Material Weakness Reporting

Corrective Action Plan: AJAC financial reporting policies and procedures will be updated to ensure timely filing of ETA-9130 forms. Monthly reconciliations will help to ensure that all financial information is available for ETA-9130 reports ahead of submission deadlines. Anticipated Completion Date:...

Corrective Action Plan: AJAC financial reporting policies and procedures will be updated to ensure timely filing of ETA-9130 forms. Monthly reconciliations will help to ensure that all financial information is available for ETA-9130 reports ahead of submission deadlines. Anticipated Completion Date: Completed

View Audit 310790

Finding 403908 (2022-008)

Material Weakness 2022

Aerospace MacHinists Joint Training Committee

WA

Material Weakness Reporting § 200.507

Corrective Action Plan: All federal grant revenue will be tracked with specific coding to ensure that Directors are aware of revenue accruals as they relate to minimum thresholds for single audits, and in a manner that allows for timely filing of future audits to the single audit clearing house. Mon...

Corrective Action Plan: All federal grant revenue will be tracked with specific coding to ensure that Directors are aware of revenue accruals as they relate to minimum thresholds for single audits, and in a manner that allows for timely filing of future audits to the single audit clearing house. Monthly reconciliations will ensure that general ledger entries and account balances are updated and corrected on a timely basis, and in a manner that will allow for enough time for the audit to be completed by the deadline. Anticipated Completion Date: Completed

View Audit 310790

Finding 403907 (2022-007)

Material Weakness 2022

Aerospace MacHinists Joint Training Committee

WA

Subrecipient Monitoring Allowable Costs / Cost Principles Material Weakness § 200.302

Corrective Action Plan: After monthly reconciliations, financial statements will be delivered to AJAC Directors monthly. AJAC Accounting Department will hold monthly close calls to collaborate with AJAC Directors to ensure accuracy of financials. Anticipated Completion Date: Completed

View Audit 310790

Finding 403905 (2022-005)

Material Weakness 2022

Aerospace MacHinists Joint Training Committee

WA

Allowable Costs / Cost Principles Cash Management Material Weakness § 200.302

Corrective Action Plan: After monthly reconciliations, AJAC Directors will identify all appropriate indirect expenses specific to each grant or contract agreement and request reimbursement for actual indirect expenses up to the 10% de minimis rate. All items identified as being reimbursable to a spe...

Corrective Action Plan: After monthly reconciliations, AJAC Directors will identify all appropriate indirect expenses specific to each grant or contract agreement and request reimbursement for actual indirect expenses up to the 10% de minimis rate. All items identified as being reimbursable to a specific grant or contract will be reclassed in the accounting software to match the reimbursement request (invoice). Anticipated Completion Date: 09/01/2024

View Audit 310790

Finding 403820 (2022-005)

Material Weakness 2022

Jft Recovery and Veterans Support Services

PA

Allowable Costs / Cost Principles Cash Management Material Weakness

As of 2023 we will be adding the following policy to the fiscal manual and to the operations manual to read as follows: All monthly program reports shall be completed by the coordinator and sent to the Deputy Director for approval, once approved they will be sent to the Fiscal Coordinator. The Fis...

As of 2023 we will be adding the following policy to the fiscal manual and to the operations manual to read as follows: All monthly program reports shall be completed by the coordinator and sent to the Deputy Director for approval, once approved they will be sent to the Fiscal Coordinator. The Fiscal Coordinator will then complete the billing amount and fiscal narrative then the report will be reviewed by the Deputy Director. Once approved the report will be presented to the Executive Director for final review, approval and signature and date placed on each report before it is sent to the funder. All program coordinators will complete a JFT outcomes report that is placed in an electronic reporting system and these reports will be reviewed quarterly by the Deputy Director. The Deputy Director does data analysis and these reports are placed in narrative form by the Deputy Director quarterly and the year-end report. These are shared with the funders according to the reporting requirements in the grant. All reports must be to funders by the 15th of the following month, unless otherwise stated in funder contract. The following policy will also be added to the fiscal manual: All budget modifications will be written up on the budget modification form and sent to the funder electronically once approved the form will be notated and include the funders signature, written on the form verbal communication from the funder, or a copy of the email with funder approval.

View Audit 310733

Finding 403816 (2022-001)

Material Weakness 2022

Jft Recovery and Veterans Support Services

PA

Internal Control / Segregation of Duties Material Weakness

In 2022 we were a small agency with minimal experience with federal and state grants. All our funding prior to this was private donations, fundraising and county funding. We grew very quickly in a short period of time. At the beginning of 2020, when we first received federal funding, we had six emp...

In 2022 we were a small agency with minimal experience with federal and state grants. All our funding prior to this was private donations, fundraising and county funding. We grew very quickly in a short period of time. At the beginning of 2020, when we first received federal funding, we had six employees and have since grown to over 40 employees. Since the time of the audit, we have gained knowledge and have already made changes to better meet the needs of our grant providers and our organization. With the segregation of duties, we started out with just one person handling the billing and the Executive Director overseeing all fiscal aspects. In the beginning of 2023, we have added two staff that work directly with the fiscal department to help with the segregation of duties and to have improved checks and balances in this department.

View Audit 310733

Finding 403123 (2022-001)

Material Weakness 2022

Town of Middleborough

MA

Questioned Costs Allowable Costs / Cost Principles Material Weakness § 200.334

Name of Contact Person: Sue Nickerson, Town Accountant

View Audit 310251 Questioned Costs: $1

Finding 403123 (2022-001)

Material Weakness 2022

Town of Middleborough

MA

Questioned Costs Allowable Costs / Cost Principles Material Weakness § 200.334

Corrective Action Plan: The District has had turnover of personnel in the Business Office this past fiscal year. As the new Director of Business and Finance there will be procedures implemented to ensure that sufficient documentation for transactions for costs charged to federal programs is supporte...

Corrective Action Plan: The District has had turnover of personnel in the Business Office this past fiscal year. As the new Director of Business and Finance there will be procedures implemented to ensure that sufficient documentation for transactions for costs charged to federal programs is supported by documentation as required by the Uniform Guidance regulations. Additionally, there will be a review of current purchasing policies, to add or amend, which will further help support meeting the federal guidelines. Lastly, it should be noted that the Town/School financial system will be converting/upgrading to MUNIS ERP Solution for the Public Sector. This upgrade will be very instrumental in maintaining the necessary information to meet audit requirements.

View Audit 310251 Questioned Costs: $1

Finding 403123 (2022-001)

Material Weakness 2022

Town of Middleborough

MA

Questioned Costs Allowable Costs / Cost Principles Material Weakness § 200.334

Proposed Completion Date: Immediately

View Audit 310251 Questioned Costs: $1

Finding 403121 (2022-012)

Material Weakness 2022

State of California

CA

Internal Control / Segregation of Duties Special Tests & Provisions Allowable Costs / Cost Principles § 200.303

Public Health agrees that Form CMS-1539 should be signed. We are exploring reasons why so many forms were not signed, and we will work with our District office management to ensure that they are all signed going forward. Further, we will address this issue at our next meeting of District Managers, ...

Public Health agrees that Form CMS-1539 should be signed. We are exploring reasons why so many forms were not signed, and we will work with our District office management to ensure that they are all signed going forward. Further, we will address this issue at our next meeting of District Managers, District Administrators, and Health Facilities Evaluator Supervisors, and will work to update our training materials as necessary. Finally, we will also explore periodically pulling a sample of completed CMS-1539 forms to verify that signatures are present. Estimated Implementation Date: May 1, 2024 Contact: Elizabeth Moreno, Section Chief Business Operation Section Center for Health Care Quality, Office of Internal Operations California Department of Public Health

View Audit 310237

Finding 403119 (2022-010)

Material Weakness 2022

State of California

CA

Eligibility Internal Control / Segregation of Duties Procurement, Suspension & Debarment § 200.303

Public Health’s Office of Aids (OA) agrees with the finding and recommendation. OA developed and implemented additional internal quality assurance (QA) processes in April of 2022 to ensure that secondary reviews of AIDS Drug Assistance Program (ADAP) applications are consistently enforcing the exist...

Public Health’s Office of Aids (OA) agrees with the finding and recommendation. OA developed and implemented additional internal quality assurance (QA) processes in April of 2022 to ensure that secondary reviews of AIDS Drug Assistance Program (ADAP) applications are consistently enforcing the existing guidelines, including acceptable supporting documentation and accurate eligibility requirements. Prior to this audit period, and through December 2021, ADAP had issued multiple policy memos to respond to the COVID-19 pandemic, which enabled staff and enrollment workers to defer documentation collection, when necessary, to remain flexible and ensure clients impacted by the pandemic, and associated site closures, did not lose eligibility and access to life-saving medications and comprehensive healthcare. These flexibilities in our guidelines were implemented based on guidance received from our federal funder, the Health Resources and Services Administration, which encouraged ADAP to reassess its organization's eligibility and recertification policies and procedures, and remove any barriers that may impede social distancing, or other public health strategies, necessary to minimize COVID-19 transmission. This documentation deferral was terminated on December 31, 2021, and since January 1, 2022, full documentation and eligibility requirements have been enforced. This, combined with ongoing QA efforts, will help mitigate future findings in ADAP applications. Estimated Implementation Date: Implemented as of April 2022 Contact: Joseph Lagrama, Branch Chief AIDS Drug Assistance Program Branch California Department of Public Health

View Audit 310237

Finding 403118 (2022-009)

Material Weakness 2022

State of California

CA

Allowable Costs / Cost Principles Material Weakness Matching / Level of Effort / Earmarking § 200.303

The Behavioral Health Administrative support team will endeavor to ensure that timesheets are collected and submitted appropriately. As the payroll system (SCO) and leave accounting (HRIS) are two completely separate programs that do not interact, the Behavioral Health (BH) Administrative Support T...

The Behavioral Health Administrative support team will endeavor to ensure that timesheets are collected and submitted appropriately. As the payroll system (SCO) and leave accounting (HRIS) are two completely separate programs that do not interact, the Behavioral Health (BH) Administrative Support Team will maintain a master file detailing the funding information for each position. For example, if a position is funded by two different grants, the file would reflect the percentage of work associated with each. It must be noted that as employee leave is tracked and maintained in a separate system, the Absence and Additional Time Worked Reports (STD 634) only reflect hours worked and leave used and does not reflect how a position is funded. Additionally, staff who are in Work Week Group E and are exempt from coverage under the Fair Labor Standards Act (FLSA) are not required to document hours worked for payroll purposes. Therefore, this form would only reflect leave credits used in whole-day increments. This means that on their timesheets, you will only find time used to cover full-day leave usage. These are generally our Supervisors and Managers. Estimated Implementation Date: July 2024 Contact: Raberta Gannon, Chief Behavioral Health Administrative Support Services Section Deputy Diretor’s Office, Behavioral Health California Department of Health Care Services

View Audit 310237

Finding 403116 (2022-008)

Material Weakness 2022

State of California

CA

Subrecipient Monitoring Allowable Costs / Cost Principles Internal Control / Segregation of Duties § 200.303

The Local Governmental Financing Division, in collaboration with the Audits and Investigations Division, agrees that policies and procedures will be developed to take additional action for significantly late-cost reports and non-compliant counties. As of July 1, 2023, the California Department of He...

The Local Governmental Financing Division, in collaboration with the Audits and Investigations Division, agrees that policies and procedures will be developed to take additional action for significantly late-cost reports and non-compliant counties. As of July 1, 2023, the California Department of Health Care Services transitioned counties away from cost reconciliation financing, and for any state fiscal year after July 1, 2023, counties will no longer be required to submit cost reports. Estimated Implementation Date: July 2023 Contact: Wendy Griffe, Chief Internal Audits California Department of Health Care Services

View Audit 310237

Finding 403115 (2022-007)

Material Weakness 2022

State of California

CA

Allowable Costs / Cost Principles Material Weakness Reporting § 200.303

California received $27 billion in State Fiscal Recovery Funds (SFRF) under the American Rescue Plan Act of 2021 to cover costs and mitigate the impacts of the COVID-19 pandemic. States that lost revenue due to the pandemic are permitted to use an amount of SFRF equivalent to their lost revenue, as ...

California received $27 billion in State Fiscal Recovery Funds (SFRF) under the American Rescue Plan Act of 2021 to cover costs and mitigate the impacts of the COVID-19 pandemic. States that lost revenue due to the pandemic are permitted to use an amount of SFRF equivalent to their lost revenue, as calculated pursuant to the U.S. Treasury’s Final Rule, to fund government services. The Department of Finance (Finance) acknowledges that its established review processes did not detect the inclusion of state employee contributions to deferred compensation plans in its revenue loss calculation and that these contributions did not constitute eligible revenue codes as they were not reported as revenues in the state’s basic financial statements. Due to unclear federal guidance, Finance’s original analysis and screening questions accounted for revenue codes that constituted revenues to the state from a budgetary perspective. Finance agrees that this oversight is a material weakness and has since adjusted its approach to the revenue loss calculation by excluding revenue codes that do not constitute revenues from a financial statement accounting perspective. However, Finance maintains that its overall controls and calculation process is sound and disagrees that this oversight was categorized as a material noncompliance finding. As stated in the finding, the overstated revenue loss amount did not impact expenditures reported for fiscal year 2022, and corrective action was taken before this finding and the state’s annual comprehensive financial report were released. The overstated revenue loss amount of $977,898,160 was not transferred from Fund 8506, which was established for the administration of the State Fiscal Recovery Funds received from the federal government, and was not used for the provision of government services. Estimated Implementation Date: January 2024 Contact: Mary Halterman, Assistant Program Budget Manager Federal Funds Cost Tracking & Accountability Unit California Department of Finance

View Audit 310237

Finding 403113 (2022-006)

Material Weakness 2022

State of California

CA

Questioned Costs Eligibility Reporting § 200.303

The EDD resumed adjudicating all potential eligibility issues as of January 2021 and completed the retroactive determination workload on April 30, 2023. Estimated Implementation Date: April 2023 Contact: Diane Underwood, Division Chief Unemployment Insurance Branch California Em...

The EDD resumed adjudicating all potential eligibility issues as of January 2021 and completed the retroactive determination workload on April 30, 2023. Estimated Implementation Date: April 2023 Contact: Diane Underwood, Division Chief Unemployment Insurance Branch California Employment Development Department

View Audit 310237 Questioned Costs: $1

Finding 403111 (2022-005)

Material Weakness 2022

State of California

CA

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

Given the unprecedented volume of unemployment insurance claims during the federal disaster—approximately 20 million claims compared to 3.8 million during the Great Recession—EDD took action to speed payments to eligible claimants whenever possible. For example, EDD launched in July 2021 a Condition...

Given the unprecedented volume of unemployment insurance claims during the federal disaster—approximately 20 million claims compared to 3.8 million during the Great Recession—EDD took action to speed payments to eligible claimants whenever possible. For example, EDD launched in July 2021 a Conditional Payment Program to speed payments to claimants who certified for benefits and already received at least one week of benefits in the past but whose payments were later pending for more than two weeks. EDD also boosted its capacity to process workloads, prioritized timely payments, and employed automation among other measures. As reported in Reference Number 2020-006 in fiscal year 2019-2020, EDD began automatically cross-matching EDD wage records and Franchise Tax Board records in November 2020 to assist in verifying the income of PUA claimants who could not be automatically verified through these procedures. Such claimants were required to submit additional documentation to EDD for a manual review. Regarding the manual processing of the income documents to substantiate the PUA weekly benefit amounts that have been increased above the minimum California WBA of $167, and the verification of employment or self-employment substantiation (known in California as “Self-employment/Employment Substantiation” or “SEES”), on February 6, 2024, in accordance with the U.S. Department of Labor (DOL) Unemployment Insurance Program Letter 05-24, the California Employment Development Department (EDD) identified that the processing of PUA income documents and the SEES workloads must be considered resolved due to California’s finality laws. The EDD is prohibited by law from resolving these items by California Unemployment Insurance Code section 1376, which provides that EDD cannot establish overpayments more than one year after the close of the benefit year in which the overpayment was made unless the overpayment is found to be a result of fraud, misrepresentation, or willful nondisclosure. Given that there is no fraud or fault on the part of the individuals identified in these populations, EDD is unable to take the required actions to resolve the workload due to California’s finality law provisions. EDD is expecting a response from DOL agreeing with the application of California’s finality laws to the PUA income verification and the SEES workloads. Estimated Implementation Date: Upon DOL response, to be determined Contact: Diane Underwood, Division Chief Unemployment Insurance Branch California Employment Development Department

View Audit 310237 Questioned Costs: $1

Finding 403109 (2022-004)

Material Weakness 2022

State of California

CA

Questioned Costs Eligibility Internal Control / Segregation of Duties § 200.303

As reported in the prior year’s response, since fiscal year 2020-21, the Employment Development Department (EDD) has implemented dozens of strict anti-fraud measures and has continued to evaluate and enhance its fraud detection. EDD has also developed internal fraud working groups and a multiagency ...

As reported in the prior year’s response, since fiscal year 2020-21, the Employment Development Department (EDD) has implemented dozens of strict anti-fraud measures and has continued to evaluate and enhance its fraud detection. EDD has also developed internal fraud working groups and a multiagency fraud task force that reviews fraud data and fraud reports on a continual basis and recommends adjustments to filters and tools as necessary. EDD has successfully halted two large fraud scheme attempts over the previous two years and continues to work towards immediate detection and prevention of fraud attempts. EDD will continue to analyze and assess our processes to stay ahead of the ever-evolving fraud landscape. As previously described, EDD implemented the following measures to address the nationwide fraud attempts perpetrated against the new emergency federal benefit programs in 2020-21: • Implemented additional cross-matches in September 2020 to detect multiple claims per address. • Ceased automatically backdating PUA claims under federal rules in September 2020. • Strengthened identity verification procedures in October 2020 by implementing ID.me. • Implemented additional cross-matches in November 2020 against state inmate information. • Vetted applications against law enforcement databases and other tools provided by Thomson Reuters in December 2020 to further curb identity and non-identity fraud. • Established a 1099-G call center to help victims of identity theft deal with any tax-related questions. • Ceased printing Social Security numbers on mailed documents to reduce identity theft risk. • Enhanced benefit card security with Bank of America. • Partnered with state, local and federal law enforcement agencies to support thousands of criminal investigations, arrests, prosecutions and convictions. The EDD has and will continue to evaluate and enhance the fraud detection/prevention tools that have been put in place. Estimated Implementation Date: Annual reassessment to be completed September 2024 Contact: Diane Underwood, Division Chief Unemployment Insurance Branch California Employment Development Department

View Audit 310237 Questioned Costs: $1

Finding 403107 (2022-003)

Material Weakness 2022

State of California

CA

Eligibility Allowable Costs / Cost Principles HUD Housing Programs § 200.303

The California Department of Public Health (Public Health) Women, Infants, and Children (WIC) Division had agreed that the WIC Web Information System Exchange (WISE) system does not currently store eligibility history that should be included in the “Cert History Report,” and the initial eligibility ...

The California Department of Public Health (Public Health) Women, Infants, and Children (WIC) Division had agreed that the WIC Web Information System Exchange (WISE) system does not currently store eligibility history that should be included in the “Cert History Report,” and the initial eligibility data is overwritten when subsequent eligibility information is keyed into WIC WISE. However, WIC WISE does include preventative internal stops or checkpoints that do not allow ineligible individuals to be certified and issued benefits (e.g., over income, not a California resident, no nutrition risk factor, etc.). User acceptance testing vetted these items prior to system implementation in 2019/20. The certification history condition discussed was remediated via a system Defect Correction to WIC WISE that was in user acceptance testing for implementation in Fall 2023. Public Health/WIC has entered Defect Correction #6972 in TFS (Team Foundation Services), the tracking system previously used to capture system changes and defects. The defect correction supports a system change to ensure initial eligibility information is retained when subsequent eligibility information is entered into WIC WISE. Estimated Implementation Date: August 2023 Contact: William Welch, Assistant Division Chief, Operations Women, Infants, and Children Division California Department of Public Health

View Audit 310237

Finding 401686 (2021-001)

Material Weakness 2022

Municipality of Gregory

SD

Internal Control / Segregation of Duties Material Weakness

The City of Gregory Finance Officer, Trudy Waterman, with the Mayor, Al Cerny, are the contact persons responsible for the corrective action plan for this finding. Finding Number 2021-001 is due to the limited number of staff the City of Gregory can afford to have on the payroll budget. The Mayor,...

The City of Gregory Finance Officer, Trudy Waterman, with the Mayor, Al Cerny, are the contact persons responsible for the corrective action plan for this finding. Finding Number 2021-001 is due to the limited number of staff the City of Gregory can afford to have on the payroll budget. The Mayor, City Council Members, and Finance Administration employees are aware of the risk and have taken steps to reduce that risk. Our Assistant Finance Officer is solely in control of generating utility bills, the Finance Officer helps collect and oversee the collection of revenues through the current municipal software in the Receipts Management Module and Front Desk. The Finance Officer also conducts reconciliation on all accounts and would be required to report any discrepancies to the Mayor and Council. Our Finance Administration is required to run all revenue and expense reports monthly, our check signing procedures require two signatures, most generally the Mayor and one of the two employees in the Finance Administration. The Assistant Finance Officer and Finance Officer jointly conduct the payroll process and jointly fill out the claim couchers and the claims list is presented to the City Council at each meeting.

View Audit 309637

Finding 401563 (2022-009)

Material Weakness 2022

Martin University

IN

Special Tests & Provisions Student Financial Aid Subrecipient Monitoring § 200.303

2022-009 Special Tests and Provisions – The Gramm-Leach-Bliley Act (GLBA) Student Financial Aid Cluster – Assistance Listing No. 84.007, 84.033, 84.063, 84.268 Recommendation: We recommend the University engage a third party or perform the risk assessment for the two areas required by the Gramm-Leac...

2022-009 Special Tests and Provisions – The Gramm-Leach-Bliley Act (GLBA) Student Financial Aid Cluster – Assistance Listing No. 84.007, 84.033, 84.063, 84.268 Recommendation: We recommend the University engage a third party or perform the risk assessment for the two areas required by the Gramm-Leach-Bliley Act that have not been completed and documented and ensure that there are documented safeguards for identified risks. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: The University began engagement with AIS, an IT Managed Service Provider in May 2022 and hired a Director of IT in November 2023. The University is working with AIS and Cowbell to develop and implement a Cybersecurity policy, as well as to provide training for all employees, the Board of Governors, and students. The University has also deployed Cloud Storage backup solutions for all data. Name(s) of the contact person(s) responsible for corrective action: Scharvin Wilson, Director of IT, AIS, IT Managed Services Provider, E. ZeNai Savage, CPA, CFO and Executive VP of Finance and Administration Planned completion date for corrective action plan: June 30, 2024

View Audit 309593

Finding 401557 (2022-002)

Material Weakness 2022

Martin University

IN

Internal Control / Segregation of Duties Material Weakness Reporting

2022-002 Segregation of Duties Recommendation: The University should evaluate their financial reporting processes and controls, including the segregation of duties among its internal staff (including number of internal staff), to determine whether additional processes and controls over the financial...

2022-002 Segregation of Duties Recommendation: The University should evaluate their financial reporting processes and controls, including the segregation of duties among its internal staff (including number of internal staff), to determine whether additional processes and controls over the financial records of the University are complete, accurate, and retained to support the University’s financial statement prepared in accordance with U.S. GAAP. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: The University engaged an external consultant in June 2023, hired a new staff accountant in September 2023 and a CFO in November 2023. The University has begun to restructure all accounting and reconciliation functions, including implementation of new accounting software. The University is implementing financial internal controls to improve the financial statements preparation and preparation of the schedule of expenditures and federal awards. Name of the contact person responsible for corrective action: E. ZeNai Savage, CPA, CFO and Executive VP of Finance and Administration Planned completion date for corrective action plan: June 30, 2024

View Audit 309593

Finding 401556 (2022-001)

Material Weakness 2022

Martin University

IN

Material Weakness Reporting Internal Control / Segregation of Duties

2022-001 Financial Statement Preparation Recommendation: We recommend that management review controls related to financial statement preparation review at the end of each period. Financial statement preparation should include a review of reconciliations and balances to ensure that financial statemen...

2022-001 Financial Statement Preparation Recommendation: We recommend that management review controls related to financial statement preparation review at the end of each period. Financial statement preparation should include a review of reconciliations and balances to ensure that financial statement line items are properly stated and classified. Internally prepared financial statements should also be thoroughly reviewed by members of the board and management outside the finance department on a periodic (monthly or quarterly). Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: The University engaged an external consultant in June 2023, hired a new staff accountant in September 2023 and a CFO in November 2023. The University has begun to restructure all accounting and reconciliation functions, including implementation of new accounting software. The University is implementing financial internal controls to improve the financial statements preparation and preparation of the schedule of expenditures and federal awards. Name of the contact person responsible for corrective action: E. ZeNai Savage, CPA, CFO and Executive VP of Finance and Administration Planned completion date for corrective action plan: June 30, 2024

View Audit 309593

Finding 401536 (2022-001)

Material Weakness 2022

K'ima:w Medical Center

CA

Eligibility Subrecipient Monitoring Material Weakness

Management’s Response – To ensure that K'ima:w Medical Center has all supporting documentation to confirm Native American eligibility, we will update our PRC policies to reflect a more standardized and robust procedure for collecting and storing patient eligibility documentation, including periodic ...

Management’s Response – To ensure that K'ima:w Medical Center has all supporting documentation to confirm Native American eligibility, we will update our PRC policies to reflect a more standardized and robust procedure for collecting and storing patient eligibility documentation, including periodic review of our patient records in compliance with IHS standards and requirements. Additionally, we have some understanding in our Medical Records Department, which we plan to fill by next fiscal year.

View Audit 309572

Finding 401387 (2022-011)

Material Weakness 2022

Libson Regional School District

NH

Questioned Costs School Nutrition Programs Internal Control / Segregation of Duties § 200.303

Audit Finding Reference: 2022-011 Management’s View and Planned Corrective Action: Management learned about 7 CFR, 210.14(b) when asked to create an Excess Food Service Fund Spend Down Plan this school year. We are now monitoring this and will make sure to spend down funds appropriately each year...

Audit Finding Reference: 2022-011 Management’s View and Planned Corrective Action: Management learned about 7 CFR, 210.14(b) when asked to create an Excess Food Service Fund Spend Down Plan this school year. We are now monitoring this and will make sure to spend down funds appropriately each year when operating the food service program. In addition, management is taking on a bigger role in overseeing the entire Food Service operation in regards to the Federal Regulations associated with the National School Lunch Program. Name of Contact Person and Completion Date: Name 1 Toni Butterfield Name 2 Anticipated Completion Date – 6/30/25

View Audit 309473 Questioned Costs: $1

Corrective Action Plans

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