Corrective Action Plans

Finding 8699 (2022-006)

Material Weakness 2022

Dakota County

MN

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

2022-006 – SUPPLEMENTAL NUTRITION ASSISTANCE PROGRAM CLUSTER & TEMPORARY ASSISTANCE FOR NEEDY FAMILIES – ACTIVITIES ALLOWED AND UNALLOWED U.S. Department of Agriculture & U.S. Department of Health and Human Services Supplemental Nutrition Assistance Program Cluster & Temporary Assistance for Needy ...

2022-006 – SUPPLEMENTAL NUTRITION ASSISTANCE PROGRAM CLUSTER & TEMPORARY ASSISTANCE FOR NEEDY FAMILIES – ACTIVITIES ALLOWED AND UNALLOWED U.S. Department of Agriculture & U.S. Department of Health and Human Services Supplemental Nutrition Assistance Program Cluster & Temporary Assistance for Needy Families Assistance Listing Number: 10.561 & 93.558 Passed Through Minnesota Department of Human Services Pass Through Number: H55210010 & H55214077 Award Period: 2022 Recommendation: We recommend that the County review its procedures and control to ensure all RMS listings sent to the State properly exclude those necessary individuals no longer working in the programs. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action planned in response to finding: Dakota County has implemented a new ERP application. In that process, the county needed to reexamine the way in which it codes staff into units. EEA is working with the state and other county departments to ensure correct documentation is updated in the new ERP system and procedures are in place to keep them accurate. Name of the contact person responsible for corrective action: Daren Nyquist, Administration Manager Planned completion date for corrective action plan: December 31, 2023

View Audit 11849

Finding 8698 (2022-004)

Material Weakness 2022

Dakota County

MN

Eligibility Material Weakness Reporting § 200.303

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

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

View Audit 11849

Finding 8366 (2022-002)

None 2022

Ferry County

WA

Questioned Costs Allowable Costs / Cost Principles Eligibility

The County will establish procedures to verify eligibility of program costs by requiring proof of eligibility be attached to grant fund expense vouchers when submitted to the auditor’s office for processing.

View Audit 11191 Questioned Costs: $1

Finding 8245 (2022-002)

Material Weakness 2022

Hip Housing Development Corporation

CA

Material Weakness Reporting Internal Control / Segregation of Duties

A big part of our systems conversion was the creating of a uniform chart of accounts throughout our portfolio. This was necessary to optimize our new system, to simplify financial analysis and reporting, and to streamline account reconciliations. However, changing the organization’s chart of account...

A big part of our systems conversion was the creating of a uniform chart of accounts throughout our portfolio. This was necessary to optimize our new system, to simplify financial analysis and reporting, and to streamline account reconciliations. However, changing the organization’s chart of accounts involved the consolidating, splitting-up, adding and removing of some general ledger line items. This created a number of issues when it comes to validating the beginning balances data in Yardi with the audited ending balances in QuickBooks. Furthermore, in the first few months after the system conversion, most of the finance team staff members were getting used to a new system and a new chart of accounts. This resulted in several data entry errors and inconsistencies. As a result of these some balance sheet account balances needed adjustment. HIP Housing’s team has provided the most of the adjusting entries necessary to rectify the account balances. We have also provided our team with ample training of the new system and have implemented several process improvements to streamline data entry. We are confident that a combination of these measures we have taken have already come to fruition and future audits will have far less account balances that need adjustments. Ghion Dessie – VP of Finance

View Audit 10874

Finding 8244 (2022-001)

Material Weakness 2022

Hip Housing Development Corporation

CA

Material Weakness Reporting Internal Control / Segregation of Duties

HIP Housing had a system conversion from QuickBooks to Yardi in July 2021. Our go live date was July 1, 2021 which makes fiscal year 21-22 our first year of audit in our new system for HHAV, HIP Housing, and HHDC. Due to difficulties and complications related to our conversion, mapping of conversion...

HIP Housing had a system conversion from QuickBooks to Yardi in July 2021. Our go live date was July 1, 2021 which makes fiscal year 21-22 our first year of audit in our new system for HHAV, HIP Housing, and HHDC. Due to difficulties and complications related to our conversion, mapping of conversion data, validating beginning balances, and closing out the year took us much longer that we expected. That significantly delayed our year end closing process. Such a delay is common when organizations are going through system conversions. Now that we will have audited beginning balances in Yardi, such delays should be reduced. We have already started taking measures to ensure that financials are completed and reconciled in a reasonable period for future audits. Some of these measures include monthly A/R and A/P tie outs of the A/R and A/P sub-ledgers to the general ledger and also a monthly reconciliation of intercompany reconciliations. We have also started using import files to record most of the intercompany transactions which will simplify/improve our intercompany reconciliation. Ghion Dessie – VP of Finance

View Audit 10874

Finding 8238 (2022-001)

Material Weakness 2022

Clare|matrix

CA

Material Weakness

Responsible Official's Response: Management will hire a qualified controller, grant accountant and senior accountant who all will have the necessary skills and knowledge to facilitate accurate and timely financial statements preparation. The Director of General Operations will also be responsible fo...

Responsible Official's Response: Management will hire a qualified controller, grant accountant and senior accountant who all will have the necessary skills and knowledge to facilitate accurate and timely financial statements preparation. The Director of General Operations will also be responsible for providing more detailed review of the accounting records on a monthly basis to evaluate the accuracy of the financial statements in with US GAAP. Planned Implementation Date of Corrective Action: June 30, 2024 Person Responsible for Corrective Action: Director of General Operations

View Audit 10872

Finding 8215 (2021-001)

Material Weakness 2022

Helena Indian Alliance

MT

Material Weakness Internal Control / Segregation of Duties

2021-001 Year-End Close and Review Recommendation: We recommend the Organization perform a thorough year-end close and review by reviewing current balances compared to the prior year, reviewing bank reconciliations for any largely outstanding items, and reviewing details of account balances, as nece...

2021-001 Year-End Close and Review Recommendation: We recommend the Organization perform a thorough year-end close and review by reviewing current balances compared to the prior year, reviewing bank reconciliations for any largely outstanding items, and reviewing details of account balances, as necessary, prior to providing the trial balance for audit. Management's Response: We concur with the recommendation, and the thorough year-end close and review process will be implemented in November 2023.

View Audit 10835

Finding 8165 (2022-004)

Material Weakness 2022

City of Muncie

IN

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

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

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

View Audit 10718

Finding 8164 (2022-003)

Material Weakness 2022

City of Muncie

IN

Subrecipient Monitoring Internal Control / Segregation of Duties Material Weakness § 200.303 § 200.334

FINDING 2022-003 Craig Wright (765)747-4828 Views of Responsible Official: We concur with the findings. Description of Corrective Action Plan: Correcting the audit findings is ongoing. The city has implemented monitoring procedures to review and prevent reoccurring errors and have updated our polici...

FINDING 2022-003 Craig Wright (765)747-4828 Views of Responsible Official: We concur with the findings. Description of Corrective Action Plan: Correcting the audit findings is ongoing. The city has implemented monitoring procedures to review and prevent reoccurring errors and have updated our policies and procedures. Anticipated Completion Date: The internal control monitoring and checks and balances will be implemented immediately and continue going forward.

View Audit 10718

Finding 8133 (2022-001)

Material Weakness 2022

Linn County

OR

Reporting Material Weakness

1. Deficiency #1 a. Material Weakness: SA2022 - 001 - MATERIAL WEAKNESS FEDERAL PROGRAM: 93.323 - Epidemiology and Laboratory Capacity for Infectious Diseases SPECIFIC REOUREMENT: All federal expenditures related to the program should be reported in the fiscal year they are expended. CONDITION: Adeq...

1. Deficiency #1 a. Material Weakness: SA2022 - 001 - MATERIAL WEAKNESS FEDERAL PROGRAM: 93.323 - Epidemiology and Laboratory Capacity for Infectious Diseases SPECIFIC REOUREMENT: All federal expenditures related to the program should be reported in the fiscal year they are expended. CONDITION: Adequate controls were not in place to ensure the schedule of expenditures of federal awards was accurate at year-end. QUESTIONED COST: None noted. CONTEXT: This finding is limited to this major program and the context noted in the condition. EFFECT: Without adequate controls or procedures in place to ensure accuracy of the schedule of expenditures of federal awards there exists the risk of material misstatement. CAUSE: The County did not have adequate procedures and policies in place for individual departments reporting their federal award expenditures for compilation and reporting. RECOMMENDATION: We recommend the County implement policies and procedures to ensure accuracy of the schedule of expenditures of federal awards.b. Linn County, Oregon - PLAN OF ACTION: LINN COUNTY management agrees with the finding and has implemented procedures to ensure that all federal expenditures are included on the schedule of federal expenditures of federal awards. Departments receiving federal awards now report all of these grants to the accounting department. c. Timeframe: Linn County management implemented the changes discussed in b. above on February 14, 2023.

View Audit 10703

Finding 7977 (2022-001)

Material Weakness 2022

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

PR

Material Weakness Reporting Internal Control / Segregation of Duties

Corrective action plan The accounting department obtained access to the billing system and share folder used by the program manager to bill the Department of Housing and Urban Development agency. YMCA develop a plan to increase the human resources supervision in all operational areas of the entity, ...

Corrective action plan The accounting department obtained access to the billing system and share folder used by the program manager to bill the Department of Housing and Urban Development agency. YMCA develop a plan to increase the human resources supervision in all operational areas of the entity, increase the outsourcing support and management recruitment is in process to increase internal control measures and supervision in the financial and accounting areas. Name (s) of person (s) responsible for corrective action Ms. Mabel Román, YMCA Executive Director YMCA Finance Director Anticipated completion date December 2023

View Audit 10431

Finding 7887 (2022-001)

Material Weakness 2022

Highline School District No. 401

WA

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

CORRECTIVE ACTION PLAN FOR FINDINGS REPORTED UNDER UNIFORM GUIDANCE Highline School District No. 401 September 1, 2021 through August 31, 2022 This schedule presents the corrective action planned by the District for findings reported in this report in accordance with Title 2 U.S. Code of Federal R...

CORRECTIVE ACTION PLAN FOR FINDINGS REPORTED UNDER UNIFORM GUIDANCE Highline School District No. 401 September 1, 2021 through August 31, 2022 This schedule presents the corrective action planned by the District for findings reported in this report in accordance with Title 2 U.S. Code of Federal Regulations (CFR) Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Finding ref number: 2022-001 Finding caption: The District did not have adequate internal controls for ensuring compliance with federal wage requirements. Name, address, and telephone of District contact person: Andrew Burgess, Controller 15675 Ambaum Blvd SW Burien, WA 98166 (206) 631-3201 Corrective action the auditee plans to take in response to the finding: For Federally funded public works contracts, the district will collect and review all weekly certified payroll reports from contractors and subcontractors to confirm laborers were paid proper prevailing wages Further, the district will ensure that staff (both current and future) that oversee and monitor the distribution and use of Federal funds are trained and made aware of this requirement, and the differences between prevailing wage requirements at the state versus the Federal level. Anticipated date to complete the corrective action: August 31, 2024

View Audit 10286

Finding 7789 (2022-007)

Material Weakness 2022

Televerde Foundation, Inc.

AZ

Cash Management Material Weakness Period of Performance § 200.303

U.S. Department of the Treasury Passed through State of Arizona, Maricopa County (Maricopa County), Federal Financial Assistance Listing #21.027, PE386182260A4 2022 Coronavirus State and Local Fiscal Recovery Funds Finding Summary: The Foundation’s internal controls were not designed to properl...

U.S. Department of the Treasury Passed through State of Arizona, Maricopa County (Maricopa County), Federal Financial Assistance Listing #21.027, PE386182260A4 2022 Coronavirus State and Local Fiscal Recovery Funds Finding Summary: The Foundation’s internal controls were not designed to properly ensure a review over program expenditures occurred that expenses being incurred and the basis for ultimate reimbursement were incurred within the grant award’s period of performance. Management’s Response and Corrective Action Plan: Televerde Foundation has experienced significant growth from inception in March 2020 to fiscal year ended December 31, 2022. We have grown from contributions and grants of $83 thousand and $50 thousand, respectively, in March 2020 to contributions and grants of $236 thousand and $978 thousand, respectively, as of December 31, 2022. During this same period, Televerde Foundation went from 3 employees to 21 employees and experienced significant turnover in finance staff including 2 CFO’s, 2 Controllers, and four staff accountants. The growth combined with lack of a consistent finance team is the primary cause of this deficiency. To address the deficiency, management will perform the actions below. Management will implement controls that address whether expenses incurred have a basis for reimbursement and are incurred within the period of performance. Responsible Individuals: Michelle Cirocco, Executive Director Anticipated Completion Date: March 2024

View Audit 10124

Finding 7788 (2022-006)

Material Weakness 2022

Televerde Foundation, Inc.

AZ

Material Weakness Reporting Internal Control / Segregation of Duties § 200.303 § 200.327 § 200.328

U.S. Department of the Treasury Passed through State of Arizona, Maricopa County (Maricopa County), Federal Financial Assistance Listing #21.027, PE386182260A4 2022 Coronavirus State and Local Fiscal Recovery Funds Finding Summary: The Foundation’s existing controls over federal award reporting...

U.S. Department of the Treasury Passed through State of Arizona, Maricopa County (Maricopa County), Federal Financial Assistance Listing #21.027, PE386182260A4 2022 Coronavirus State and Local Fiscal Recovery Funds Finding Summary: The Foundation’s existing controls over federal award reporting did not identify and correct that reports submitted to the grantor were submitted with inaccurate information and that the supporting documentation used to prepare the reports were utilizing budgeted expensed amounts rather than actual. Furthermore, the budgeted expensed amounts from the supporting documentation that were the basis for the amounts to report, did not agree with the ultimate amount reported. Management’s Response and Corrective Action Plan: Televerde Foundation has experienced significant growth from inception in March 2020 to fiscal year ended December 31, 2022. We have grown from contributions and grants of $83 thousand and $50 thousand, respectively, in March 2020 to contributions and grants of $236 thousand and $978 thousand, respectively, as of December 31, 2022. During this same period, Televerde Foundation went from 3 employees to 21 employees and experienced significant turnover in finance staff including 2 CFO’s, 2 Controllers, and four staff accountants. The growth combined with lack of a consistent finance team is the primary cause of this deficiency. To address the deficiency, management will perform the actions below. Management will leverage our general ledger to retain documentation for approval and review of expenditures. We will utilize actual amounts for expenditures and in circumstances where budgeted amounts are needed, we will perform a true-up on a quarterly basis. Management will perform quarterly reviews over financial reporting. Responsible Individuals: Michelle Cirocco, Executive Director Anticipated Completion Date: July 2023

View Audit 10124

Finding 7709 (2022-001)

Material Weakness 2022

Scottsdale Unified School District No. 48

AZ

Material Weakness Reporting Internal Control / Segregation of Duties

Corrective Action Plan: The District will ensure its Schedule of Expenditures of Federal Awards is complete and expenditures are properly reported.

View Audit 10075

Finding 7614 (2022-003)

Material Weakness 2022

Community Action Partnership of Oregon

OR

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

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

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

View Audit 9980

Finding 7381 (2022-007)

Material Weakness 2022

Change, Inc.

MN

Material Weakness Reporting Internal Control / Segregation of Duties

This was a finding on our most recent audit as well (2021-007). Throughout FY23, we worked with our FPO and the Department of Labor to better understand the requirement and have adjusted our procedure as required. All errors have been corrected as of December 31, 2022.

View Audit 9524

Finding 7331 (2022-001)

Material Weakness 2022

The Housing Collective, Inc.

CT

Internal Control / Segregation of Duties Material Weakness Reporting

Finding No. 2022-001: Financial Reporting Assistance Listing Program Title and Number: All Federal Agency: All Pass-through Entity: All Description of Finding: In fiscal year 2022, the Organization's accounting processes and internal controls over financial reporting were not functioning timely to s...

Finding No. 2022-001: Financial Reporting Assistance Listing Program Title and Number: All Federal Agency: All Pass-through Entity: All Description of Finding: In fiscal year 2022, the Organization's accounting processes and internal controls over financial reporting were not functioning timely to support generating complete and accurate financial information. The year end was not closed in accordance with the Organization's financial close policy. The books and records were not closed and finalized until many months after year end. Statement of Concurrence or Nonconcurrence: The organization agrees with the audit finding. Corrective Action: The organization intends to become fully staffed in the Finance area in order to conduct its financial tasks in a timely fashion. It also intends to have its Finance staff cross-trained to ensure required tasks are conducted in a timely fashion. This will ensure that the year-end was closed in accordance with the organization's financial close policy and repeated revisions will not be necessary. Name of Contact Person: David Rich, Executive Director david@shworks.org 860-671-1715 Projected Completion Date: December 12, 2023, this corrective action has been completed and will be maintained.

View Audit 9499

Finding 7034 (2022-002)

Material Weakness 2022

Isaiah House

NJ

Allowable Costs / Cost Principles Material Weakness Reporting

The Executive Director and Deputy Director will review and approve all reporting submissions to ensure they are being reported timely in accordance with grant requirements.

View Audit 9025

Finding 6774 (2022-001)

Material Weakness 2022

Winlock School District No. 232

WA

Questioned Costs Subrecipient Monitoring Allowable Costs / Cost Principles

CORRECTIVE ACTION PLAN FOR FINDINGS REPORTED UNDER UNIFORM GUIDANCE Winlock School District No. 232 September 1, 2021 through August 31, 2022 This schedule presents the corrective action planned by the District for findings reported in this report in accordance with Title 2 U.S. Code of Federal Regu...

CORRECTIVE ACTION PLAN FOR FINDINGS REPORTED UNDER UNIFORM GUIDANCE Winlock School District No. 232 September 1, 2021 through August 31, 2022 This schedule presents the corrective action planned by the District for findings reported in this report in accordance with Title 2 U.S. Code of Federal Regulations (CFR) Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Finding ref number: 2022-001 Finding caption: The District did not have adequate controls for ensuring compliance with federal requirements for allowable costs and cost principles. Name, address, and telephone of District contact person: Gloria Dupree, Business Manager, N.E. 1st Street, Winlock, WA 98596, (360) 785-3582 Corrective action the auditee plans to take in response to the finding: Corrective actions for ensuring compliance with federal requirements around cash management, allowable costs, and cost principles. Cash Management 1. Review Policies and Procedures: Ensure the district’s policies and procedures align with federal standards. Regularly audit your cash management practices. 2. Training: Ensure training on federal regulations and the importance of adhering to them for staff members involved in cash management. 3. Internal Controls: Strengthen internal controls to prevent and detect non-compliance, including segregation of duties and regular reconciliations. We hired a new Accounts payable employee in February 2023. 4. Monitoring: Monitor regularly to ensure that federal funds are utilized properly and efficiently. Allowable Costs 1. Guidance Review: Review the federal awarding agency’s guidance on allowable costs to ensure that all costs charged to the award are permissible under the specific federal program. Office of the Washington State Auditor sao.wa.gov 2. Documentation: Implement a robust system to document all costs and ensure they are reasonable, allocable, and necessary. 4. Review: Conduct regular reviews of expenditures to check for compliance with allowable cost principles. 5. Training: Educate all staff involved in financial management about the principles of allowable costs associated with federal awards. Cost Principles 1. Policy Update: Update organizational policies to reflect federal cost principles. 2. Consistency: Apply costs consistently and in a manner consistent with policies and procedures. 3. Direct vs. Indirect Costs: Properly identify direct and indirect costs and allocate them according to federal standards. 4. Record Keeping: Maintain accurate and complete financial records, retaining them for the period specified by the federal award or until all audits are completed and findings resolved. Anticipated date to complete the corrective action: 02/01/2024

View Audit 8703 Questioned Costs: $1

Finding 6674 (2022-002)

Material Weakness 2022

Human Resource Development Institute

IL

Questioned Costs Reporting Material Weakness

U.S. Department of Housing and Urban Development, CFDA No. 14.267, Shelter Plus Care U.S. Department of Housing and Urban Development, CFDA No. 14.241, Housing Opportunities for Persons with AIDS Passed-through Alabama Department of Mental Health and Retardation, AL No. 93.778, Medicaid Cluster Medi...

U.S. Department of Housing and Urban Development, CFDA No. 14.267, Shelter Plus Care U.S. Department of Housing and Urban Development, CFDA No. 14.241, Housing Opportunities for Persons with AIDS Passed-through Alabama Department of Mental Health and Retardation, AL No. 93.778, Medicaid Cluster Medical Assistance Program The 2022-002 finding expands finding 2022-001 for the federal award program as it impacted the expenses charged to the federal awards above. Prior to the adjustments to correct the balances, the expenses reported on the SEFA for AL No. 14.267 were overstated by approximately $3,015 and the expenses reported on the SEFA for AL No. 14.241 were overstated by approximately $37,649. In addition, the expenses reported on the SEFA for AL No. 93.778 were overstated by approximately $456,701. Views of Responsible Officials and Planned Corrective Actions: HRDI will implement the following corrective actions for the FY 2023-24 to remediate the finding and address the cause of the finding. The Chief Financial Officer has been hired in December 2023 and will begin full time employment January 1, 2024. In addition, all Finance responsibilities currently handled by outsourced resources will be transitioned to full-time employed Finance staff. • All Grant related Year-End and Audit Procedures will be transitioned to the new Grant Accountant who has experience in audits, compliance, and reporting of City, State, Local, and Federal Grants. • HRDI will document accounting policies and procedures to reflect the new month-end processes and provide training to staff on current and future policies. • HRDI will ensure that Finance staff will receive at minimum of 25 hours of training each year related to GASB, GAAP, Governmental Financial Reporting, or other related accounting trainings annually. • HRDI will ensure that any staff involved in Financial Reporting has the technical expertise to help with the preparation, review, and analysis of the financial statements. The target date for implementation is March 31, 2024. The responsible party for the planned resources will be Gail ViJuk, Chief Financial Officer (708) 288-7897. Our address is 340 E. 51st St., Chicago, IL 60615.

View Audit 8675 Questioned Costs: $1

Finding 6673 (2022-001)

Material Weakness 2022

Human Resource Development Institute

IL

Questioned Costs Material Weakness Reporting

Criteria Human Resources Development, Inc. and Affiliates’ (HRDI) is responsible for keeping an accurate accounting of its financial information. Views of Responsible Officials and Planned Corrective Actions: HRDI will implement the following corrective actions for the FY 2023-24 to remediate the fi...

Criteria Human Resources Development, Inc. and Affiliates’ (HRDI) is responsible for keeping an accurate accounting of its financial information. Views of Responsible Officials and Planned Corrective Actions: HRDI will implement the following corrective actions for the FY 2023-24 to remediate the finding and address the cause of the finding. HRDI will implement an established month-end checklist for all monthly entries to be completed by assigned finance staff. We will ensure that all staff are trained adequately to manage any assigned task. All monthly entries that are required will be reviewed and approved by the Chief Financial Officer prior to posting to the general ledger within our new Accounting Software. All appropriate backup documentation will be saved and stored within the accounting software. •HRDI will implement balance sheet reconciliations to be prepared and completed by Finance Staff Accountants monthly with a monthly review performed by the Chief Financial Officer. All balance sheet accounts will be reconciled to external data for verification monthly. All revenue accounts will be reconciled to external data for verification monthly. •The Chief Financial Officer has been hired in December 2023 and will begin full time employment January 1, 2024. In addition, all Finance responsibilities currently handled by outsourced resources will be transitioned to full-time employed Finance staff. •HRDI will document accounting policies and procedures to reflect the new month-end processes and provide training to staff on current and future policies. •HRDI will ensure that Finance staff will receive at minimum of 25 hours of training each year related to GASB, GAAP, Governmental Financial Reporting, or other related accounting trainings annually. •HRDI will ensure that any staff involved in Financial Reporting has the technical expertise to help with the preparation, review, and analysis of the financial statements. •HRDI has implemented a new accounting system – Sage Intacct. Additionally, we have implemented a grants project tracking module to better help with grants, contracts reporting, and compliance. The target date for implementation is March 31, 2024. The responsible party for the planned resources will be Gail ViJuk, Chief Financial Officer (708) 288-7897. Our address is 340 E. 51st St., Chicago, IL 60615.

View Audit 8675 Questioned Costs: $1

Finding 6497 (2022-003)

Material Weakness 2022

Palo Alto County Hospital

IA

Material Weakness Reporting Internal Control / Segregation of Duties § 200.303

Rural Communities Opioid Response Program – Medication Assisted Treatment (MAT) Expansion – Assistance Listing No. 93.912 Recommendation: We recommend that management implement more formal control process surrounding the use of federal awards where there is segregation between individuals identifyin...

Rural Communities Opioid Response Program – Medication Assisted Treatment (MAT) Expansion – Assistance Listing No. 93.912 Recommendation: We recommend that management implement more formal control process surrounding the use of federal awards where there is segregation between individuals identifying or proposing expenditures/uses of funds and an individual reviewing and approving that expenditure/use. We also recommend for any formal reporting required under federal awards that there be a formal review process where an individual is reviewing and approving the report who did not prepare the report. Documentation of review and approval should be retained in both cases. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action planned in response to finding: Health System implemented a formal grant management policy in November 2022. Name(s) of the contact person(s) responsible for corrective action: Collette Johnson, CFO Planned completion date for corrective action plan: November 1, 2022

View Audit 8469

Finding 6229 (2022-004)

Material Weakness 2022

Ifoster, Inc.

CA

Allowable Costs / Cost Principles Cash Management Material Weakness

Finding 2022-004 Federal Agency Name: U.S. Department of Labor Program Name: AmeriCorps State and National CFDA #: 94.006 Finding Summary: Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost principles provides that amounts for compensation for personnel cost...

Finding 2022-004 Federal Agency Name: U.S. Department of Labor Program Name: AmeriCorps State and National CFDA #: 94.006 Finding Summary: Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost principles provides that amounts for compensation for personnel costs should be accurate. Amounts for certain personnel costs were not reimbursed at the current pay rate for certain employees. Responsible Individuals: Reid Cox Corrective Action Plan: Acknowledged. This error was restricted to FY’22 and was corrected for FY’23 and ongoing. Anticipated Completion Date: Ongoing

View Audit 8184

Finding 6228 (2022-003)

Material Weakness 2022

Ifoster, Inc.

CA

Allowable Costs / Cost Principles Cash Management Material Weakness

Finding 2022-003 Federal Agency Name: U.S. Department of Labor Program Name: AmeriCorps State and National CFDA #: 94.006 Finding Summary: Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Contributions and donations (Uniform Guidance) provides that amounts for ...

Finding 2022-003 Federal Agency Name: U.S. Department of Labor Program Name: AmeriCorps State and National CFDA #: 94.006 Finding Summary: Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Contributions and donations (Uniform Guidance) provides that amounts for the value of services and property donated may not be charged to the Federal award as direct costs. Amounts received for cell services and for salaries were donated to iFoster, Inc. were included in amounts to be reimbursed by the grant. Responsible Individuals: Reid Cox Corrective Action Plan: Acknowledged. This practice was discontinued subsequent to FY’22 and so is not an ongoing issue. Anticipated Completion Date: Ongoing

View Audit 8184

Corrective Action Plans

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