Corrective Action Plans

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The Government concurs with the auditor’s findings and recommendations and finalizing a comprehensive corrective action plan to strengthen grant management and compliance through the Public Finance Management initiative including the development of a three-tier overarching Financial and Compliance p...
The Government concurs with the auditor’s findings and recommendations and finalizing a comprehensive corrective action plan to strengthen grant management and compliance through the Public Finance Management initiative including the development of a three-tier overarching Financial and Compliance policy and procedures framework. The Government’s Audit Committee is leading the development of a structured, three-tier policy and procedures framework under the Public Finance Management project. This framework includes Tier 1, which establishes the overarching Financial and Compliance Policy; Tier 2, which defines Standard Operating Procedures (SOPs) to promote cross-agency consistency; and Tier 3, which outlines detailed, step-by-step procedures that clearly define roles and responsibilities and accountability measures to ensure compliance with all federal regulations including fiscal and administrative requirements for expending and accounting for payroll expenditures. Regular training sessions will be provided to staff involved in grant management to ensure they understand and adhere to compliance requirements with monitoring and evaluation occurring by the OMB Compliance Unit supported by the Government’s Audit Committee, to assess and improve the effectiveness of controls.
To immediately address the condition regarding the missing documentation, VIDE has compiled and provided the complete listing of applicable construction contracts to satisfy this specific documentation requirement. To address the root cause of the wage rate deficiencies for the COVID- 19 Education S...
To immediately address the condition regarding the missing documentation, VIDE has compiled and provided the complete listing of applicable construction contracts to satisfy this specific documentation requirement. To address the root cause of the wage rate deficiencies for the COVID- 19 Education Stabilization Fund, the Procurement Director has successfully implemented updated contract templates. These templates contain language that explicitly addresses all required wage rate provisions, directly resolving the contract language deficiency noted in the audit. Furthermore, VIDE is actively finalizing a comprehensive Standard Operating Procedure (SOPP) for wage rate requirements to ensure long-term compliance. This SOPP will mandate the consistent use of the approved contract templates and establish strict internal controls for project management personnel to obtain, review, and retain certified weekly payrolls from all contractors. Once the SOPP is finalized, mandatory training will be provided to all relevant staff involved in contract oversight, report preparation, and submission.
VIDE will strengthen payroll and personnel action controls by requiring the Budget Team and Deputy Commissioner to review and approve all personnel actions before NOPA execution to validate pay rates. Furthermore, Payroll will establish a final review step to reconcile approved hours against both th...
VIDE will strengthen payroll and personnel action controls by requiring the Budget Team and Deputy Commissioner to review and approve all personnel actions before NOPA execution to validate pay rates. Furthermore, Payroll will establish a final review step to reconcile approved hours against both the payroll processing register and the final reimbursement invoice. Approved timesheets, Notices of Per Diem, and related payroll support will be centrally retained in SharePoint by pay period and attached to applicable invoices or general ledger journal entries. Program staff and supervisors will receive mandatory training on updated timesheet procedures and federal time and effort requirements. The Office of Fiscal and Administrative Services will also conduct monthly spot checks of SharePoint repositories and ERP logs to document compliance, identify control gaps, and ensure timely corrective action. Finalization of the formal SOPs and supporting controls is a top priority to achieve the necessary level of control precision and prevent repeat findings.
VIDE will strengthen payroll and personnel action controls by requiring the Budget Team and Deputy Commissioner to review and approve all personnel actions before NOPA execution to validate pay rates. Furthermore, Payroll will establish a final review step to reconcile approved hours against both th...
VIDE will strengthen payroll and personnel action controls by requiring the Budget Team and Deputy Commissioner to review and approve all personnel actions before NOPA execution to validate pay rates. Furthermore, Payroll will establish a final review step to reconcile approved hours against both the payroll processing register and the final reimbursement invoice. Approved timesheets, Notices of Per Diem, and related payroll support will be centrally retained in SharePoint by pay period and attached to applicable invoices or general ledger journal entries. Program staff and supervisors will receive mandatory training on updated timesheet procedures and federal time and effort requirements. The Office of Fiscal and Administrative Services will also conduct monthly spot checks of SharePoint repositories and ERP logs to document compliance, identify control gaps, and ensure timely corrective action. Finalization of the formal SOPs and supporting controls is a top priority to achieve the necessary level of control precision and prevent repeat findings.
VIDE is strengthening its internal controls and record retention procedures to ensure strict adherence to federal period of performance and liquidation provisions. To address the missing payment support, the department is enforcing a strict back-end system control. All required supporting documentat...
VIDE is strengthening its internal controls and record retention procedures to ensure strict adherence to federal period of performance and liquidation provisions. To address the missing payment support, the department is enforcing a strict back-end system control. All required supporting documentation evidencing payment must be attached directly to the transaction entry within the ERP system prior to final disbursement. To address the specific instance regarding the missing indirect cost reimbursement report, VIDE will leverage its newly finalized Indirect Cost Standard Operating Procedure (SOP). VIDE will coordinate with the Third-Party Fiduciary Agent (TPFA) to ensure that all detailed reimbursement reports are actively verified and securely stored in a centralized repository before indirect costs are drawn down and liquidated. Furthermore, the Office of Fiscal and Administrative Services will implement a mandatory final review step during the grant closeout and liquidation phase. This review will systematically verify the presence and accuracy of all payment and indirect cost documentation within the ERP and SharePoint repositories, ensuring that all expenditures are properly supported, allowable, and completely liquidated within the mandated period of performance timeframe.
VIDE will strengthen payroll and personnel action controls by requiring the Budget Team and Deputy Commissioner to review and approve all personnel actions before NOPA execution to validate pay rates. Furthermore, Payroll will establish a final review step to reconcile approved hours against both th...
VIDE will strengthen payroll and personnel action controls by requiring the Budget Team and Deputy Commissioner to review and approve all personnel actions before NOPA execution to validate pay rates. Furthermore, Payroll will establish a final review step to reconcile approved hours against both the payroll processing register and the final reimbursement invoice. Approved timesheets, Notices of Per Diem, and related payroll support will be centrally retained in SharePoint by pay period and attached to applicable invoices or general ledger journal entries. Program staff and supervisors will receive mandatory training on updated timesheet procedures and federal time and effort requirements. The Office of Fiscal and Administrative Services will also conduct monthly spot checks of SharePoint repositories and ERP logs to document compliance, identify control gaps, and ensure timely corrective action. Finalization of the formal SOPs and supporting controls is a top priority to achieve the necessary level of control precision and prevent repeat findings.
VIDE is strengthening its policies and procedures to ensure all non-payroll expenditures are fully supported by underlying documentation prior to charging federal programs. To address the documentation gap identified, the department is enforcing a strict back-end system control within the accounts p...
VIDE is strengthening its policies and procedures to ensure all non-payroll expenditures are fully supported by underlying documentation prior to charging federal programs. To address the documentation gap identified, the department is enforcing a strict back-end system control within the accounts payable process. Moving forward, all required supporting documentation—such as vendor invoices, receipts, and programmatic approvals—must be attached directly to the transaction entry within the ERP system. Furthermore, the Office of Fiscal and Administrative Services will implement a mandatory final review step to verify the presence and accuracy of this documentation in the system before any disbursement is authorized or charged to the Special Education Cluster.
The Government’s Audit Committee is leading the development of a structured, three-tier policy and procedures framework under the Public Finance Management project. This framework includes Tier 1, which establishes the overarching Financial and Compliance Policy; Tier 2, which defines Standard Opera...
The Government’s Audit Committee is leading the development of a structured, three-tier policy and procedures framework under the Public Finance Management project. This framework includes Tier 1, which establishes the overarching Financial and Compliance Policy; Tier 2, which defines Standard Operating Procedures (SOPs) to promote cross-agency consistency; and Tier 3, which outlines detailed, step-by-step procedures that clearly define roles and responsibilities and accountability measures to ensure compliance with all federal regulations including period of performance. Regular training sessions will be provided to staff involved in grant management to ensure they understand and adhere to compliance requirements with monitoring and evaluation occurring by the OMB Compliance Unit supported by the Government’s Audit Committee, to assess and improve the effectiveness of controls.
DPNR recognizes the discrepancies identified between the employee pay rates reflected in the payroll registers and the Notices of Personnel Action (NOPAs) that were provided during the audit. Preliminary review indicates that the payroll system calculates employee compensation based on approved pers...
DPNR recognizes the discrepancies identified between the employee pay rates reflected in the payroll registers and the Notices of Personnel Action (NOPAs) that were provided during the audit. Preliminary review indicates that the payroll system calculates employee compensation based on approved personnel actions maintained within the payroll system; however, it is possible that the NOPAs provided for audit testing did not reflect the most current approved personnel actions or subsequent amendments affecting employee compensation. Additionally, DPNR's procedures for maintaining and readily retrieving complete personnel and payroll support documentation were not sufficiently centralized to ensure that the most current supporting records were consistently available for audit review. DPNR will conduct a comprehensive internal review of the payroll transactions identified in the audit sample to determine the cause of the discrepancies between the payroll registers and the NOPAs provided during the audit. The review will include: • Verification of the official personnel actions maintained in the payroll system; • Review of any amended or revised NOPAs affecting employee compensation; • Reconciliation of payroll registers to approved personnel actions; • Verification that salaries and wages charged to Federal awards are properly supported and accurately reflected in official records; and • Identification and correction of any deficiencies in document retention or record management procedures.
The Government concurs with the auditor’s findings and recommendations. Corrective action plan as follows: - Establish review and approval procedures - Maintain supporting documentation - Central repository for reports - Conduct periodic audits - Train staff
The Government concurs with the auditor’s findings and recommendations. Corrective action plan as follows: - Establish review and approval procedures - Maintain supporting documentation - Central repository for reports - Conduct periodic audits - Train staff
The Government’s Audit Committee is leading the development of a structured, three-tier policy and procedures framework under the Public Finance Management project. This framework includes Tier 1, which establishes the overarching Financial and Compliance Policy; Tier 2, which defines Standard Opera...
The Government’s Audit Committee is leading the development of a structured, three-tier policy and procedures framework under the Public Finance Management project. This framework includes Tier 1, which establishes the overarching Financial and Compliance Policy; Tier 2, which defines Standard Operating Procedures (SOPs) to promote cross-agency consistency; and Tier 3, which outlines detailed, step-by-step procedures that clearly define roles and responsibilities and accountability measures to ensure compliance with all federal regulations including fiscal and administrative requirements for expending and accounting for payroll expenditures. Regular training sessions will be provided to staff involved in grant management to ensure they understand and adhere to compliance requirements with monitoring and evaluation occurring by the OMB Compliance Unit supported by the Government’s Audit Committee, to assess and improve the effectiveness of controls.
OMB acknowledges the findings and notes that OMB does not calculate or determine fringe benefit amounts charged to payroll expenditures. However, OMB will coordinate with the Department of Finance to communicate the identified discrepancy and will work collaboratively to strengthen review procedures...
OMB acknowledges the findings and notes that OMB does not calculate or determine fringe benefit amounts charged to payroll expenditures. However, OMB will coordinate with the Department of Finance to communicate the identified discrepancy and will work collaboratively to strengthen review procedures over payroll cost allocations charged to federal programs. In addition, OMB will reevaluate its existing oversight controls to ensure that payroll expenditures charged to federal awards are supported by appropriate documentation and reviewed for compliance with applicable federal requirements.
A comprehensive corrective action plan includes hiring key personnel to provide oversight and expertise in grant management. The Government’s Audit Committee is also leading the development of a structured, three-tier policy and procedures framework under the Public Finance Management project. This ...
A comprehensive corrective action plan includes hiring key personnel to provide oversight and expertise in grant management. The Government’s Audit Committee is also leading the development of a structured, three-tier policy and procedures framework under the Public Finance Management project. This framework includes Tier 1, which establishes the overarching Financial and Compliance Policy; Tier 2, which defines Standard Operating Procedures (SOPs) to promote cross-agency consistency; and Tier 3, which outlines detailed, step-by-step procedures that clearly define roles and responsibilities and accountability measures to ensure compliance with all federal regulations including internal controls for procurement vetting in corporation with the Department of Property and Procurement with primary responsibility over procurement. Regular training sessions are provided to staff involved in grant management to ensure they understand and adhere to compliance requirements with monitoring and evaluation occurring by the OMB Compliance Unit supported by the Government’s Audit Committee, to assess and improve the effectiveness of controls.
VIDOL acknowledges the auditor’s finding regarding the failure to submit the required ETA 9129 RESEA Quarterly Reports in a timely manner under the UI-Reemployment Services and Eligibility Assessment (RESEA) program. VIDOL recognizes the importance of maintaining effective internal controls to ensur...
VIDOL acknowledges the auditor’s finding regarding the failure to submit the required ETA 9129 RESEA Quarterly Reports in a timely manner under the UI-Reemployment Services and Eligibility Assessment (RESEA) program. VIDOL recognizes the importance of maintaining effective internal controls to ensure all required Federal reports are accurate, complete, properly reviewed, and submitted within established deadlines in compliance with 2 CFR 200.303. VIDOL concurs with the auditor’s recommendation and is committed to strengthening reporting controls and implementing system improvements to ensure ongoing compliance with Federal reporting requirements. To address the deficiencies identified, VIDOL will implement the following corrective actions: 1. Implementation of RESEA Case Management System: VIDOL is currently in the implementation stage of the core portion of the RESEA case management system that will serve as the official system of record for all RESEA claimant services and reporting activities. The system is expected to go out to production/testing by June 2026 with an identified vendor. The new system will: •Centralize claimant and program data; •Improve tracking of RESEA activities and outcomes; • Generate data necessary for required Federal reporting; •Enhance data accuracy and consistency; and •Support timely submission of ETA 9129 Quarterly Reports. 2. Development of Reporting Policies and Procedures: VIDOL will develop and formalize written policies and procedures governing the preparation, review, approval, and submission of RESEA quarterly reports. These procedures will include: •Clearly defined staff responsibilities; •Reporting timelines and submission deadlines; • Required supervisory review and approval processes; and • Documentation retention requirements supporting reported data. 3. Strengthening Internal Controls Over Reporting: VIDOL will enhance internal controls to ensure: •Required reports are monitored through a reporting calendar and tracking system; •Reports are reviewed for completeness and accuracy prior to submission; •Supporting documentation is maintained and readily accessible; and •Management oversight is performed to ensure compliance with Federal reporting requirements. 4. Periodic Monitoring and Compliance Reviews: Management will conduct periodic reviews of reporting activities to verify reports are submitted timely and supported by accurate documentation. Any reporting deficiencies identified will be addressed promptly through corrective action and additional oversight. 5. Staff Training and Technical Assistance: Staff responsible for RESEA program administration and reporting will receive training on: •Federal reporting requirements for ETA 9129 reports; •Internal control and documentation standards; •Use of the RESEA case management system; and •Procedures for timely report preparation and submission. VIDOL will also seek technical assistance, as needed, to support implementation of the new reporting system and improve compliance processes.
VIDOL acknowledges the auditor’s finding regarding deficiencies in the retention, review, accuracy, and support of required financial, performance, and special reports submitted to the Federal government. VIDOL submitted all outstanding reports along with supporting documentation during the 30-day s...
VIDOL acknowledges the auditor’s finding regarding deficiencies in the retention, review, accuracy, and support of required financial, performance, and special reports submitted to the Federal government. VIDOL submitted all outstanding reports along with supporting documentation during the 30-day sprint to the Regional Office. VIDOL recognizes the importance of maintaining complete and accurate supporting documentation and ensuring that all required reports are properly reviewed, approved, and retained in compliance with 2 CFR 200.302, 2 CFR 200.303, and 2 CFR 200.403(g). VIDOL will implement the usage of the USVI Unemployment Benefit Manual which contains the principles and operating instructions for carrying out the agency’s responsibilities under the various benefits programs. VIDOL concurs with the auditor’s recommendation and is committed to strengthening internal controls and reporting procedures to ensure the accuracy, completeness, timeliness, and proper retention of all federally required reports. To address the deficiencies identified, VIDOL will implement the following corrective actions: 1. Revision and Formalization of Reporting Policies and Procedures: VIDOL will reevaluate and update its written policies and procedures governing the preparation, review, approval, submission, and retention of all required Federal reports, including ETA-9050, ETA-9052, ETA-9055, and other applicable reports. The revised procedures will establish: •Standardized reporting processes; •Documentation requirements supporting all reported data; •Required supervisory review and approval protocols; •Submission deadlines and tracking requirements; and •Record retention standards consistent with Federal regulations. 2. Implementation of Review and Approval Controls: VIDOL will implement enhanced supervisory review procedures to ensure all reports: • Are supported by complete and accurate documentation; •Reconcile to source records and supporting schedules; •Are reviewed for accuracy and completeness prior to submission; and •Contain documented evidence of review and approval by designated management personnel. 3. Centralized Documentation Retention Process VIDOL will establish a centralized electronic and/or physical filing system for all required Federal reports and supporting documentation to ensure: •Records are retained for the required retention period; •Supporting documentation is readily accessible for audit and monitoring purposes; and •Submitted reports can be fully substantiated and traced to source documentation. 4. Periodic Internal Monitoring and Quality Assurance Reviews: Management will conduct periodic internal reviews of submitted reports and supporting documentation to verify compliance with Federal reporting requirements and internal procedures. Any discrepancies or missing documentation identified during these reviews will be corrected promptly and communicated to responsible staff. 5. Staff Training and Technical Assistance: Appropriate staff responsible for report preparation, review, and submission will receive additional training on: •Federal reporting and documentation requirements; • Record retention standards; •Internal control responsibilities; and • Procedures for reconciling reported information to supporting documentation. VIDOL will also seek technical assistance, as necessary, to improve reporting accuracy and compliance processes.
VIDOL concurs with the auditor’s findings and recommendations. VIDOL entered a one (1) year contract with Quantum Technology on July 15, 2025, to convert all VIDOL files from a paper based to an electronic recordkeeping system. Quantum Technology continues to digitize and transfer the files to a dat...
VIDOL concurs with the auditor’s findings and recommendations. VIDOL entered a one (1) year contract with Quantum Technology on July 15, 2025, to convert all VIDOL files from a paper based to an electronic recordkeeping system. Quantum Technology continues to digitize and transfer the files to a database where they are properly catalogued, retrievable and indexed in accordance with established naming conventions. Once Quantum Technology completes the contract deliverables, VIDOL will have a robust document management system to facilitate easy retrieval and secure storage.
VIDOL acknowledges the auditor’s finding regarding the inability to provide fully reconciled accounting information for the Unemployment Insurance Trust Fund accounts and recognizes the importance of maintaining complete, accurate, and timely financial records in compliance with 2 CFR 200.302 and 2 ...
VIDOL acknowledges the auditor’s finding regarding the inability to provide fully reconciled accounting information for the Unemployment Insurance Trust Fund accounts and recognizes the importance of maintaining complete, accurate, and timely financial records in compliance with 2 CFR 200.302 and 2 CFR 200.303. VIDOL concurs with the recommendation and is committed to strengthening internal controls, improving financial management processes, and ensuring timely reconciliations and oversight of all Unemployment Insurance program funds. VIDOL will implement the following corrective actions: 1. Development and Implementation of Written Policies and Procedures: VIDOL will develop and formalize comprehensive accounting policies and procedures governing: •Monthly reconciliations of all Unemployment Insurance Trust Fund accounts; •Cash receipt and disbursement processing; •Accrual preparation and review; •Federal grant accounting and reporting requirements; •Documentation retention and support requirements; and •Review and approval protocols for financial transactions and reports. These procedures will be aligned with the requirements set forth in 2 CFR 200 and applicable federal guidance. 2. Monthly Reconciliation Process: VIDOL hired a new Financial Analyst in December 2025 due to vacancy created due to the departure by the former Financial Analyst in February 2025. VIDOL has completed monthly reconciliations of all UI accounts through March 2026. VIDOL has implemented a reconciliation process that reconciles all accounts monthly for all Unemployment Insurance Trust Fund accounts and ensure: •General ledger balances agree to subsidiary ledgers and bank records; •Differences are identified, researched, and documented timely; and •Reconciliations are reviewed and approved by supervisory personnel. 3. Strengthening Internal Controls and Oversight: VIDOL will enhance internal controls over financial reporting and grant management by: • Assigning clear responsibilities for preparation and review of reconciliations; •Implementing supervisory review procedures for financial reports and reconciliations; •Conducting periodic management reviews of account activity and outstanding balances; and • Maintaining adequate supporting documentation for all financial transactions. 4. Staff Training and Technical Assistance: Fiscal staff responsible for grant accounting and financial reporting will receive additional training on: •Federal grant compliance requirements under Uniform Guidance; • Financial reconciliation procedures; •Documentation standards; and • Internal control responsibilities. VIDOL will also seek technical assistance, as necessary, to improve financial reporting and reconciliation practices. 5. Ongoing Monitoring and Compliance Review: VIDOL management will conduct periodic monitoring to ensure reconciliations are completed timely and corrective actions are operating effectively. Any identified discrepancies or instances of noncompliance will be addressed promptly.
DPNR did not have formally documented policies and procedures governing compliance with Wage Rate Requirements applicable to federally funded construction contracts. In addition, supporting documentation demonstrating compliance, including certified payrolls and monitoring activities, was not consis...
DPNR did not have formally documented policies and procedures governing compliance with Wage Rate Requirements applicable to federally funded construction contracts. In addition, supporting documentation demonstrating compliance, including certified payrolls and monitoring activities, was not consistently maintained in a centralized location to facilitate monitoring and audit review. DPNR will develop and implement formal written policies and procedures to ensure compliance with applicable Wage Rate Requirements, including the requirements of the Davis-Bacon Act and the Department of Labor regulations contained in 29 CFR Part 5. The procedures will require that all federally funded construction contracts subject to Wage Rate Requirements include the appropriate labor standards provisions and contract clauses. Additionally, contractors and subcontractors will be required to submit certified payrolls and statements of compliance on a weekly basis for each week in which contract work is performed.
DPNR will conduct an internal review of the circumstances surrounding the approval of financial reports by an unauthorized individual. The purpose of the review will be to determine: 1. How the unauthorized approval occurred; 2. Whether there were deficiencies in the existing review and approval pro...
DPNR will conduct an internal review of the circumstances surrounding the approval of financial reports by an unauthorized individual. The purpose of the review will be to determine: 1. How the unauthorized approval occurred; 2. Whether there were deficiencies in the existing review and approval process; 3. Whether system access, delegated authority, or procedural gaps contributed to the control failure; and 4. Whether similar instances have occurred in other reporting periods. Based on the results of the internal review, DPNR will implement any additional corrective measures necessary to strengthen internal controls and prevent future occurrences. Such measures may include revising authorization matrices, restricting system access to designated reviewers, updating written policies and procedures, and providing additional training to personnel involved in the reporting process. DPNR acknowledges that, during the audit period, supporting records related to FFATA submissions were not readily accessible to the Department due to limitations in system access and the absence of a centralized retention process for FFATA reporting documentation. As a result, DPNR was unable to provide a complete listing of FFATA reports submitted during the year. The Department of Planning and Natural Resources (DPNR) with the support of the federal agency’s consultant will implement a centralized electronic repository system to serve as the official recordkeeping location to ensure the following supporting documents are available including but not limited to: • A complete annual listing of all FFATA reports submitted; • Copies or screenshots of each FFATA submission; • Submission confirmations and reporting dates; • Subrecipient information and award amounts subject to FFATA reporting requirements; and • Any correspondence or supporting documentation associated with the submission.
The Government concurs with the auditor’s findings and recommendations. The Department did not maintain a centralized repository for eligibility documentation. Supporting documentation and related source documents were maintained in various locations and formats, resulting in instances where complet...
The Government concurs with the auditor’s findings and recommendations. The Department did not maintain a centralized repository for eligibility documentation. Supporting documentation and related source documents were maintained in various locations and formats, resulting in instances where complete documentation was not readily available during the audit review. The Department of Planning and Natural Resources (DPNR) with the support of the federal agency’s consultant will implement a centralized electronic repository system to serve as the official recordkeeping location for all eligibility requests and supporting documentation. This repository will house all documents necessary to substantiate eligibility, including but not limited to: • Participant eligibility applications and supporting documentation; • Eligibility determination forms and approval records; • Documentation of eligibility reviews and supervisory approvals; • Complete participant listings containing all relevant information necessary to support eligibility determinations; • Periodic recertification or re-evaluation documents, where applicable; • Correspondence and any additional supporting records required by the grant agreement or Federal regulations.
The Government concurs with the auditor’s findings and recommendations and finalizing a comprehensive corrective action plan to strengthen grant management and compliance through the Public Finance Management initiative including the development of a three-tier overarching Financial and Compliance p...
The Government concurs with the auditor’s findings and recommendations and finalizing a comprehensive corrective action plan to strengthen grant management and compliance through the Public Finance Management initiative including the development of a three-tier overarching Financial and Compliance policy and procedures framework. The Government’s Audit Committee is leading the development of a structured, three-tier policy and procedures framework under the Public Finance Management project. This framework includes Tier 1, which establishes the overarching Financial and Compliance Policy; Tier 2, which defines Standard Operating Procedures (SOPs) to promote cross-agency consistency; and Tier 3, which outlines detailed, step-by-step procedures that clearly define roles and responsibilities and accountability measures to ensure compliance with all federal regulations including reporting. Regular training sessions will be provided to staff involved in grant management to ensure they understand and adhere to compliance requirements with monitoring and evaluation occurring by the OMB Compliance Unit supported by the Government’s Audit Committee, to assess and improve the effectiveness of controls.
A comprehensive corrective action plan includes hiring key personnel to provide oversight and expertise in grant management. The Government’s Audit Committee is also leading the development of a structured, three-tier policy and procedures framework under the Public Finance Management project. This ...
A comprehensive corrective action plan includes hiring key personnel to provide oversight and expertise in grant management. The Government’s Audit Committee is also leading the development of a structured, three-tier policy and procedures framework under the Public Finance Management project. This framework includes Tier 1, which establishes the overarching Financial and Compliance Policy; Tier 2, which defines Standard Operating Procedures (SOPs) to promote cross-agency consistency; and Tier 3, which outlines detailed, step-by-step procedures that clearly define roles and responsibilities and accountability measures to ensure compliance with all federal regulations including internal controls for procurement vetting in corporation with the Department of Property and Procurement with primary responsibility over procurement. Regular training sessions are provided to staff involved in grant management to ensure they understand and adhere to compliance requirements with monitoring and evaluation occurring by the OMB Compliance Unit supported by the Government’s Audit Committee, to assess and improve the effectiveness of controls.
The Government will implement enhanced internal control procedures to ensure that payroll expenditures reported on the Schedule of Expenditures of Federal Awards (SEFA) are complete, accurate, and fully supported by transaction-level detail in accordance with 2 CFR 200.303, 2 CFR 200.403(g), and 2 C...
The Government will implement enhanced internal control procedures to ensure that payroll expenditures reported on the Schedule of Expenditures of Federal Awards (SEFA) are complete, accurate, and fully supported by transaction-level detail in accordance with 2 CFR 200.303, 2 CFR 200.403(g), and 2 CFR 200.430(i). Corrective actions will include the following: 1. Implementation of Monthly Payroll Reconciliations: The Government will establish a formal reconciliation process requiring monthly reconciliation of payroll expenditures recorded in the accounting system to detailed payroll records generated from the payroll system. o All variances will be identified, investigated, resolved, and documented. o Supporting documentation (e.g., payroll registers, timesheets, and cost allocation reports) will be retained and readily available for audit review. This aligns with enterprise expectations that reconciliation exceptions must be logged, investigated, and resolved with supporting evidence retained. 2. Development and Formalization of Standard Operating Procedures (SOPs): The Government will develop and/or enhance SOPs governing: o Payroll cost charging to federal awards o Documentation standards required to support payroll expenditures o Reconciliation procedures between payroll system and general ledger o SEFA preparation and validation procedures These SOPs will ensure consistency, completeness, and compliance with Uniform Guidance requirements. 3. Strengthening Documentation Controls: Payroll costs charged to federal awards will be supported by documentation that: o Accurately reflects the work performed o Reconciles to total compensation (100% effort) o Is incorporated into official records and retained in accordance with record retention policies Documentation reviews will be incorporated into routine processing and supervisory review controls. 4. Independent Review and Oversight: Reconciliations and payroll allocations to federal programs will be subject to supervisory or independent review to verify: o Accuracy and completeness o Proper allocation across funding sources o Consistency with grant terms and conditions Evidence of review and approval will be maintained. 5. SEFA Validation and Pre-Submission Review: Prior to finalizing the SEFA, the Government will implement a mandatory validation step requiring: o Reconciliation of SEFA totals to the general ledger o Verification that all amounts reported are supported by transaction-level payroll detail o Confirmation that all adjustments are documented and approved This aligns with established CAP practices requiring documented reconciliation outputs that demonstrate control effectiveness. 6. Training and Capacity Building: Relevant personnel will receive training on: o Federal cost principles under 2 CFR 200 o Payroll documentation and certification requirements o SEFA preparation and reconciliation expectations Training will ensure consistent application of policies and improve compliance. 7. Ongoing Monitoring and Compliance Reviews: The Government will implement periodic (quarterly) compliance reviews to: o Assess the effectiveness of payroll reconciliation controls o Ensure documentation requirements are consistently met o Identify and remediate any recurring issues timely These monitoring activities are consistent with prior CAP approaches that require periodic review of payroll documentation and reconciliation practices.
DPNR will: • Conduct a review of payroll transactions to identify any additional discrepancies between timesheets and payroll registers. • Implement a requirement for supervisory review and certification of employee timesheets prior to payroll processing. • Establish a reconciliation process requiri...
DPNR will: • Conduct a review of payroll transactions to identify any additional discrepancies between timesheets and payroll registers. • Implement a requirement for supervisory review and certification of employee timesheets prior to payroll processing. • Establish a reconciliation process requiring payroll staff to compare approved timesheets to payroll registers before final payroll approval. Grant Charge Authorization • Review personnel funding assignments to verify that salary charges are consistent with approved Notices of Personnel Action (NOPAs), grant budgets, and personnel authorizations. • Correct the employee's funding allocation to reflect the authorized grant funding source. • Establish a secondary review process to verify funding sources before payroll is posted to grant accounts. Payroll Adjustments • Review outstanding payroll adjustments and correction entries. • Process the identified correction and updated procedures to ensure adjustments are completed promptly upon discovery. • Establish tracking procedures to monitor payroll corrections through completion.
The Government concurs with the auditor’s findings and recommendations. Management acknowledges the recommendation and will review current internal control procedures to determine if enhancements are needed. DPNR is committed to ensuring compliance with Federal regulations and will take appropriate ...
The Government concurs with the auditor’s findings and recommendations. Management acknowledges the recommendation and will review current internal control procedures to determine if enhancements are needed. DPNR is committed to ensuring compliance with Federal regulations and will take appropriate action as necessary. DPNR will review and update its policies and procedures to ensure all non-payroll expenditures are approved by authorized personnel, provide staff training on proper approval processes and internal control requirements, and conduct periodic checks to monitor compliance and promptly address any exceptions.
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