Corrective Action Plans

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To fortify our internal controls over financial reporting, we will introduce new software to streamline data management and reporting processes, ensuring both accuracy and efficiency. Concurrently, we will refine our internal workflows, introducing comprehensive procedural guides to standardize oper...
To fortify our internal controls over financial reporting, we will introduce new software to streamline data management and reporting processes, ensuring both accuracy and efficiency. Concurrently, we will refine our internal workflows, introducing comprehensive procedural guides to standardize operations and enhance transparency across all departments. Additionally, we'll implement a centralized repository for document storage with stringent retention policies to uphold organized and accessible record-keeping. Finally, we commit to conducting regular, rigorous reviews of financial information by designated personnel, enabling timely identification and resolution of any discrepancies, thereby reinforcing our control environment and safeguarding the integrity of our financial reporting system.
Views of Responsible Officials: SAMU has identified the following actions point: 1. Implement a thorough review process for all funding streams to determine if they are federal, state, or private. 2. Establish clear guidelines for identifying and tracking federal awards. 3. Provide training to accou...
Views of Responsible Officials: SAMU has identified the following actions point: 1. Implement a thorough review process for all funding streams to determine if they are federal, state, or private. 2. Establish clear guidelines for identifying and tracking federal awards. 3. Provide training to accounting staff on the proper application of ASC 958, particularly regarding the recognition of conditional awards. 4. Develop a checklist for SEFA preparation to ensure all required elements are included and properly reported. 5. Consider seeking expert advice or additional training on federal award accounting and reporting. By implementing these measures, SAMU can improve the accuracy of its SEFA, ensure compliance with federal regulations, and provide a more reliable basis for audit procedures.
2023-001 Program: Highway Planning and Construction Federal Financial Assistance Listing No.: 20.205 Federal Agency: U.S. Department of Transportation Pass-through: Metropolitan Transportation Commission Award Year: 2023 Grant Award Number: MTC/STP Agreement Compliance Requirements: Other - Title 2 ...
2023-001 Program: Highway Planning and Construction Federal Financial Assistance Listing No.: 20.205 Federal Agency: U.S. Department of Transportation Pass-through: Metropolitan Transportation Commission Award Year: 2023 Grant Award Number: MTC/STP Agreement Compliance Requirements: Other - Title 2 U.S. Code of Federal Regulations (CFR) Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance) §200.510(b)- Schedule of expenditures of Federal awards Recommendation: VTA should establish policies and implement internal controls to ensure all federal expenditures are accurately identified on the Schedule of Expenditures of Federal Awards (SEFA). Corrective Action: VTA will reinforce its system of internal control in communicating timely the Catalog of Federal Domestic Assistance (CFDA) number to the department preparing the SEFA. CFDA of direct and pass-through grants will be obtained from the Federal Transit Administration (FTA) and related grantors, respectively. If the CFDA number of a grant is not available at the time of preparation of SEFA, this will be identified accordingly. Responsible Party: The Fiscal Resources Manager and the Transportation Planners, Grants Implementation Date: March 31, 2025
Finding 554894 (2023-002)
Material Weakness 2023
Finding Number: 2023-002 Closing Process – (Material Weakness) Planned Corrective Action: The auditors noted issues related to the timeliness of the financial statement close process, the quantity of entries to close the books, the reconciliation of the beginning trial balance to the prior year aud...
Finding Number: 2023-002 Closing Process – (Material Weakness) Planned Corrective Action: The auditors noted issues related to the timeliness of the financial statement close process, the quantity of entries to close the books, the reconciliation of the beginning trial balance to the prior year audited trial balance, and a lack of segregation of duties which led to journal entries being prepared, reviewed and posted by the same person in the general ledger system. The issues noted were largely the result of significant turnover within the Finance Department, including the departure of the former head of the department without a proper transfer of institutional knowledge to remaining staff or incoming leadership. Since that time, oversight has improved considerably, and key processes have been reviewed, updated, and formally documented. While the current size of the Finance Team necessitates that the same individual generally enters and posts journal entries, we have implemented compensating controls that we believe are appropriate given the assessed levels of risk and materiality. These controls include role-specific responsibilities for journal entries and reconciliations. For example, with respect to cash activity, different team members handle cash receipts, disbursements, and inter-account transfers. A fourth team member is responsible for preparing the monthly bank reconciliations, which are then formally reviewed and signed off by Fiscal Department management, including the CFO. Management remains committed to strengthening internal controls, maintaining adequate segregation of duties to the extent practicable, and continuing to enhance the overall financial close and reporting process. Person Responsible: The Executive Director and Chief Financial Officer Completion Date: April 30, 2025
Finding 554893 (2023-001)
Material Weakness 2023
Finding Number: 2023-001 Cost Allocations – (Material Weakness) Planned Corrective Action: The auditors noted that payroll and the related personnel costs are not being charged directly or allocated to the correct cost center in the Serenic Navigator accounting system monthly. The Finance team perf...
Finding Number: 2023-001 Cost Allocations – (Material Weakness) Planned Corrective Action: The auditors noted that payroll and the related personnel costs are not being charged directly or allocated to the correct cost center in the Serenic Navigator accounting system monthly. The Finance team performed manual calculations of all allocations in Excel at the end of the fiscal year to update the allocations. Beginning in FY 2025, personnel costs are being manually recorded to the correct cost centers in Serenic Navigator each month. A parallel review of employee setups in ADP, our payroll system, led to the reassignment of staff to appropriate cost centers as needed. Going forward, ADP cost center assignments will be reviewed monthly to reflect any departmental changes. These steps are expected to reduce manual adjustments, improve the accuracy of interim financials, and ensure more precise federal and program drawdowns. Person Responsible: The Executive Director and Chief Financial Officer Completion Date: April 30, 2025
Federal Award Findings Finding 2023-001 Lack of Internal Controls Over Cash Management Name of Contact Person: Galen Gilbert, First Chief Corrective Action Plan: AVC staff were unable to complete a drawdown for the HUD grants due to a change in staff. AVC is working with HUD to resolve the matt...
Federal Award Findings Finding 2023-001 Lack of Internal Controls Over Cash Management Name of Contact Person: Galen Gilbert, First Chief Corrective Action Plan: AVC staff were unable to complete a drawdown for the HUD grants due to a change in staff. AVC is working with HUD to resolve the matter. AVC staff is currently drawing down all other funds in a timely matter. AVC has limited unrestricted cash. AVC is currently looking for opportunities to increase unrestricted cash, such as increasing prices for gas and electric. Proposed Completion Date: July 31, 2024
View Audit 353454 Questioned Costs: $1
2023-002 - Reporting Auditee’s Response and Planned Corrective Action The Authority is now under the management of the Quincy Housing Authority and all controls and processes have been updated to account for the needs of the Holbrook Housing Authority, including internal controls over financial re...
2023-002 - Reporting Auditee’s Response and Planned Corrective Action The Authority is now under the management of the Quincy Housing Authority and all controls and processes have been updated to account for the needs of the Holbrook Housing Authority, including internal controls over financial reporting, documentation retention, and timeliness of reporting. Planned Implementation Date of Corrective Action: June 30, 2024 Person Responsible for Corrective Action: James Marathas, Executive Director
The College will retain all procurement documentation going forward.
The College will retain all procurement documentation going forward.
The Department has hired a new audit firm that specializes in the audits of Tribes. Our new audit firm has demonstrated a commitment to allocating the necessary resources to complete our audits in a timely manner.
The Department has hired a new audit firm that specializes in the audits of Tribes. Our new audit firm has demonstrated a commitment to allocating the necessary resources to complete our audits in a timely manner.
The College is in the process of establishing journal entry controls including an independent review and approval process for all entries and ensuring sufficient documentation is maintained for each entry.
The College is in the process of establishing journal entry controls including an independent review and approval process for all entries and ensuring sufficient documentation is maintained for each entry.
The College has spent a significant amount of time in FY 2025 evaluating their IT controls and policies and procedures. New internal controls are expected to be implemented to address these findings.
The College has spent a significant amount of time in FY 2025 evaluating their IT controls and policies and procedures. New internal controls are expected to be implemented to address these findings.
CDPH is addressing the findings of the audit through a combination of outreach and training for internal stakeholders, updated internal policies, and data verification to ensure proper review and approval of the Form CMS-1539. Estimated Implementation Date: April 2025 Contact: Nate Gilmore, Branch ...
CDPH is addressing the findings of the audit through a combination of outreach and training for internal stakeholders, updated internal policies, and data verification to ensure proper review and approval of the Form CMS-1539. Estimated Implementation Date: April 2025 Contact: Nate Gilmore, Branch Chief Center for Health Care Quality California Department of Public Health
The CDSS will complete its development and implementation of a monitoring process over license-exempt health and safety standards in collaboration with the federal Administration of Children and Families and the State Legislature. Estimated Implementation Date: July 1, 2027 Contact: Jeff Fowler, St...
The CDSS will complete its development and implementation of a monitoring process over license-exempt health and safety standards in collaboration with the federal Administration of Children and Families and the State Legislature. Estimated Implementation Date: July 1, 2027 Contact: Jeff Fowler, Staff Services Manager III Child Care and Development Program California Department of Social Services
The CDSS disagrees with the finding. California’s subsidized child care system is locally operated. The CDSS relies on hundreds of local county offices and nonprofit agencies to administer child care and development programs at the local level, rather than having the State pay subsidized providers d...
The CDSS disagrees with the finding. California’s subsidized child care system is locally operated. The CDSS relies on hundreds of local county offices and nonprofit agencies to administer child care and development programs at the local level, rather than having the State pay subsidized providers directly. As a result, CDSS required Alternative Payment Programs, direct-service contractors that administer Family Child Care Home Education Networks, and fiscal partners to track survey completion as a prerequisite for awarding American Rescue Plan Act (ARPA) subgrants. This local infrastructure and the size of California’s subsidized child care and development system separates California from other states. As a result, CDSS worked very closely with the federal grantor, the Administration for Children and Families, to ensure that the ARPA survey methodology met federal monitoring requirements and tracked data elements required by the federal government. For this reason, CDSS believes it has fulfilled its responsibility and does not need to further establish a monitoring program. Estimated Implementation Date: Will not implement Contact: Jeff Fowler, Staff Services Manager III Child Care and Development Program California Department of Social Services
View Audit 352774 Questioned Costs: $1
The CDSS agrees with the finding and recognizes the importance of effective report tracking and the timely submission of fiscal and compliance reports, with clearly defined responsibilities and workflows to ensure accuracy. When the grants were transferred from CDE to CDSS, no formal guidance was pr...
The CDSS agrees with the finding and recognizes the importance of effective report tracking and the timely submission of fiscal and compliance reports, with clearly defined responsibilities and workflows to ensure accuracy. When the grants were transferred from CDE to CDSS, no formal guidance was provided during the transition. The delay in submission was due to multiple factors including training new staff, understanding the different pieces of the various grants, and the most impactful factor was the information to produce the Federal Funding Accountability and Transparency Act (FFATA) report. To produce the FFATA report, the Federal Reporting Section (FRS) had to reach out to every contractor, vendor, county, etc. and ask for their assistance to fill out the FFATA report information. This was a labor- and time-consuming process due to the size of the grant. As a result, it took some time for the FRS to gather the necessary information and become fully familiar with the procedures required to prepare the FFATA report. To minimize the risk of late report submission, FRS has ensured that all staff understand the final deadline and all key milestones along the way. The FRS has broken down the report into smaller, manageable tasks within individual deadlines which helps to avoid last-minute rushes and ensure steady progress. The FRS utilizes Microsoft Teams as a project management tool to track deadlines, monitor progress, and send reminders to keep everyone on track. The FRS conducts regular check-ins to discuss progress, address any challenges early, and adjust the plan as needed to prevent delays. Additionally, FRS has created a standardized template to save time and allow the team to work efficiently. Staff are now completing their individual reports ahead of time which gives ample room for review and revisions to ensure the FFATA report is prepared accurately and timely. Estimated Implementation Date: Implemented Contact: Daniel During, Federal Reporting Section Chief Accounting and Fiscal Systems Branch Finance and Accounting Division California Department of Social Services
DHCS implemented a process to impose payment withholds for significantly late cost reports, which addresses CSA’s recommendations. As of January 1, 2025, DHCS has issued 26 Notices of Delinquency to contracted counties of Short-Doyle funding (two notices for FY 2015-16, four notices for FY 2016-17, ...
DHCS implemented a process to impose payment withholds for significantly late cost reports, which addresses CSA’s recommendations. As of January 1, 2025, DHCS has issued 26 Notices of Delinquency to contracted counties of Short-Doyle funding (two notices for FY 2015-16, four notices for FY 2016-17, one notice for FY 2018-19, three notices for FY 2019-20, six notices for FY 2020-21, and ten notices for FY 2021-22). DHCS has received positive responses from some of the delinquent counties, stating the cost reports should be submitted shortly. If the counties do not submit their cost reports within 30 calendar days of the delinquency notice, DHCS will send a Notice of Intent to Impose Temporary Withhold of Funds with an option to meet and confer. If a county still has not submitted its cost report within 30 calendar days after Notice of Intent to Impose Temporary Withhold of Funds, the county will be put on Final Notice of Intent to Impose Temporary Withhold of Funds with an effective date of 30 days, at which time a withhold of funds will be processed. Estimated Implementation Date: January 1, 2025 Contact: California Department of Health Care Services • Primary – Ryan Whalen, Behavioral Health Interim Settlement, Section Chief, Audit & Investigations (A&I) Financial Review Outpatient and Behavioral Health Division (FROBHD) • Secondary – Lisa Alder, Behavioral Health Financial Review, Branch Chief, A&I FROBHD • Tertiary – Charles Anders, Behavioral Health Financing Branch, Chief, Local Governmental Financing Division (LGFD)
As reported in the prior year’s response, 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 exam...
As reported in the prior year’s response, 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. 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”), based on the U.S. Department of Labor’s (DOL) guidance in Unemployment Insurance Program Letter 05 24, EDD notified DOL on February 6, 2024, that California Unemployment Insurance Code (CUIC) section 1376 bars EDD from resolving the wage verification and self-employment verification items. Section 1376 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 in creating these overpayments on the part of the individuals identified in these populations, EDD is no longer able to establish overpayments for these populations. On May 31, 2024, DOL notified EDD that the February 6, 2024, submission regarding how California’s finality laws affect the actions required to correct the wage verification and self-employment findings is sufficient to close these findings. Estimated Implementation Date: Completed May 2024 Contact: Diane Underwood, Division Chief Unemployment Insurance Branch California Employment Development Department
View Audit 352774 Questioned Costs: $1
The purchase in question is related to the LSC Disaster funding. One of the primary purposes of this funding was to purchase a vehicle to enable OILS to provide quick response to disasters in Oklahoma. Due to LSC guidelines, OILS was required to receive prior approval from LSC for the purchase, whic...
The purchase in question is related to the LSC Disaster funding. One of the primary purposes of this funding was to purchase a vehicle to enable OILS to provide quick response to disasters in Oklahoma. Due to LSC guidelines, OILS was required to receive prior approval from LSC for the purchase, which OILS did request and receive. Additionally, the purchase of the vehicle was included in the annual budget approved by the Board of Directors. Clarifying language will be added to the Finance Manual under Section 6.1 Purchases to indicate that the Executive Director is authorized to execute all purchases in any amount, wherein the Board of Directors has provided prior approval and/or the funds for the activity have been appropriated in the adopted annual budget, including any contingency budget. Additionally, the management team collectively will work to ensure that purchases within the policy approval limits are brought to the Board for review and approval and that the approval is reflected in the meeting minutes. Anticipated Date of Conpletion: Revisions to teh Finance Manual, including the clarifying language in Section 6.1, will be submitted to the Board of Directors for adoption no later than the November 12, board meeting.
A list of critical system access for the Controller and/or CFO has been developed. When a planned or unplanned departure is to occur, the incoming or remaining staff can ensure access is gained to those systems. Responsible Person Contact - Mary Lou Tate, CFO Anticipated Completion Date - June 2024
A list of critical system access for the Controller and/or CFO has been developed. When a planned or unplanned departure is to occur, the incoming or remaining staff can ensure access is gained to those systems. Responsible Person Contact - Mary Lou Tate, CFO Anticipated Completion Date - June 2024
Finding Number: 2023-010 Planned Corrective Action: The Treasurer will use the district’s general ledger to complete Final Expenditure Reports. The Treasurer will also reconcile the General Ledger Budget for each individual grant to the CCIP budget. This process will assure accurate data is provi...
Finding Number: 2023-010 Planned Corrective Action: The Treasurer will use the district’s general ledger to complete Final Expenditure Reports. The Treasurer will also reconcile the General Ledger Budget for each individual grant to the CCIP budget. This process will assure accurate data is provided. Anticipated Completion Date: September 30, 2025 Responsible Contact Person: Ashley Miller
Finding Number: 2023-007 Planned Corrective Action: The District will follow the requirements of the Davis Bacon Act in the future when using federal grant dollars for construction. Anticipated Completion Date: March 1, 2025 Responsible Contact Person: Ashley Miller
Finding Number: 2023-007 Planned Corrective Action: The District will follow the requirements of the Davis Bacon Act in the future when using federal grant dollars for construction. Anticipated Completion Date: March 1, 2025 Responsible Contact Person: Ashley Miller
Finding 2023-001 Late Reporting and Noncompliance with Reporting Requirements Name of Contact: Charise Colsen, Finance Director Corrective Action Plan: A timeline will be established for year-end closing and preparation for the annual audits in a manner that accommodates meeting the nine-month aud...
Finding 2023-001 Late Reporting and Noncompliance with Reporting Requirements Name of Contact: Charise Colsen, Finance Director Corrective Action Plan: A timeline will be established for year-end closing and preparation for the annual audits in a manner that accommodates meeting the nine-month audit submission requirement. Proposed Completion Date: January 31, 2025
Reporting Services for Victims of Human Trafficking – Assistance Listing No. 16.320 Recommendation: We recommend the Organization design controls to ensure reports are prepared and reviewed by separate individuals and that the information gathered to prepare the report is retained. Explanation of di...
Reporting Services for Victims of Human Trafficking – Assistance Listing No. 16.320 Recommendation: We recommend the Organization design controls to ensure reports are prepared and reviewed by separate individuals and that the information gathered to prepare the report is retained. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action planned in response to finding: The Organization will put a formal layer of review after preparation of the report and before submission to the Federal Agency and will make sure support gathered is retained. Name of the contact person responsible for corrective action: Megan Mattimoe, Executive Director Planned completion date for corrective action plan: June 1, 2025
Finding 2023-005 Federal Agency: U.S. Department of Housing and Urban Development Federal Program Titles: Section 8 Housing Choice Vouchers Program and Mainstream Vouchers Program Federal Assistance Listing Numbers: 14.871 and 14.879 Material Noncompliance – N. Special Tests and Provisions – HQS In...
Finding 2023-005 Federal Agency: U.S. Department of Housing and Urban Development Federal Program Titles: Section 8 Housing Choice Vouchers Program and Mainstream Vouchers Program Federal Assistance Listing Numbers: 14.871 and 14.879 Material Noncompliance – N. Special Tests and Provisions – HQS Inspections Non Compliance Material to the Financial Statements: Yes Material Weakness in Internal Control over Compliance for Special Tests and Provisions Criteria: HQS Inspections. Per the Authority's HCV Admin Plan, the PHA must inspect the unit leased to a family at least biennially to determine if the unit meets the HQS and the PHA must conduct quality control re-inspections. The PHA must prepare a unit inspection report (24 CFR sections 982.158(d) and 982.405(b)). These inspection reports are required to be maintained and available for examination at the time of audit. Condition: Based upon inspection of the Authority’s files and on discussion with management there were inspection reports that were unavailable for examination at the time of audit. Context: Of a sample size of fifty-four (54) units, twenty-seven (27) units did not have a biennial HQS inspection performed. Our sample size is statistically valid. Known Questioned Costs: $239,802. Cause: There is a material weakness in internal controls over the compliance for the special tests and provisions type of compliance related to HQS inspections. The Authority has not properly considered, designed, implemented, maintained and monitored a system of internal controls that assures the program is in compliance. Effect: The Section 8 Housing Choice Vouchers and Mainstream Vouchers Programs are in material noncompliance with the with the special tests and provisions type of compliance related to HQS inspections. Recommendation: We recommend the Authority design and implement internal control procedures that will reasonably assure compliance with the Uniform Guidance and the compliance supplement. Views of responsible officials and planned corrective action: The Authority has recognized the material weakness in the Section 8 Housing Choice Vouchers and Mainstream Vouchers Programs and will implement internal control procedures that will ensure compliance with federal regulations. Jonathan Campbell, Director of Housing Programs, will be responsible to implement this corrective action by June 30, 2024.
View Audit 351739 Questioned Costs: $1
Finding 2023-004 Federal Agency: U.S. Department of Housing and Urban Development Federal Program Titles: Section 8 Housing Choice Vouchers Program Federal Assistance Listing Numbers: 14.871 Noncompliance – N. Special Tests and Provisions – Housing Quality Standards (HQS) Enforcement Non Compliance...
Finding 2023-004 Federal Agency: U.S. Department of Housing and Urban Development Federal Program Titles: Section 8 Housing Choice Vouchers Program Federal Assistance Listing Numbers: 14.871 Noncompliance – N. Special Tests and Provisions – Housing Quality Standards (HQS) Enforcement Non Compliance Material to the Financial Statements: Yes Material Weakness in Internal Control over Compliance for Special Tests and Provisions Criteria: HQS Enforcement. For units under HAP contract that fail to meet HQS, the PHA must require the owner to correct all life threatening HQS deficiencies within 24 hours after the inspections and all other deficiencies within 30 days or within a specified PHA-approved extension. Condition: Based upon inspection of the Authority’s files and on discussion with management, the Authority did not properly abate four (4) out of eleven (11) annual failed inspections selected for testing. Context: The Authority did not properly abate four (4) out of eleven (11) failed inspections selected for testing. As a result, the Authority was not in compliance with the HQS as required by 24 CFR sections 982.158(d) and 982.405(b). Known Questioned Costs: $7,011. Cause: There is a material weakness in internal controls over the compliance for the special tests and provisions type of compliance related to HQS enforcement. The Authority has not properly considered, designed, implemented, maintained and monitored a system of internal controls that assures the program is in compliance. Effect: The Section 8 Housing Choice Vouchers Program is in material non-compliance with the special tests and provisions type of compliance related to HQS enforcement. Recommendation: We recommend the Authority design and implement internal control procedures that will reasonably assure compliance with the Uniform Guidance and the compliance supplement. Views of responsible officials and planned corrective action: The Authority has recognized the material weakness in the Section 8 Housing Choice Vouchers Program and will implement internal control procedures that will ensure compliance with federal regulations. Jonathan Campbell, Director of Housing Programs, will be responsible to implement this corrective action by June 30, 2024.
View Audit 351739 Questioned Costs: $1
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