Corrective Action Plans

Finding 478697 (2022-001)

Material Weakness 2022

Meals on Wheels Atlanta, Inc. and Affiliate

GA

Questioned Costs

Condition: Generally accepted accounting principles require that deferred revenue be recorded for all amounts of grant funds received that have not yet been earned. Context: The improper recording of deferred revenues were identified during our audit work surrounding the revenue recognition of the m...

Condition: Generally accepted accounting principles require that deferred revenue be recorded for all amounts of grant funds received that have not yet been earned. Context: The improper recording of deferred revenues were identified during our audit work surrounding the revenue recognition of the major program. Effect: The adjustment to deferred revenues had the effect of increasing deferred revenues by $236,250 and decreasing grant revenue by $236,250. Recommendation: The Organization should review all grant agreements related to grant payments received and based upon the terms of the agreement determine if deferral is appropriate. Managements Response: We agree with finding, and will follow prescribed recommendation.

View Audit 315354 Questioned Costs: $1

Finding 478665 (2022-003)

Material Weakness 2022

Mental Health Resource of Texas, Inc.

TX

Questioned Costs Allowable Costs / Cost Principles

➢ 2022-003 Compliance Deficiencies, (General Ledger): The organization agrees and has transitioned from the rarely used Abila system of FY 2022 to the QuickBooks automated system. This allowed the Accounting Manager to record expenditures in the General Ledger as well as update and restructure our ...

➢ 2022-003 Compliance Deficiencies, (General Ledger): The organization agrees and has transitioned from the rarely used Abila system of FY 2022 to the QuickBooks automated system. This allowed the Accounting Manager to record expenditures in the General Ledger as well as update and restructure our Chart of Accounts. In addition, the Accounting Manager has assigned project codes that facilitate segregation between restricted and unrestricted accounts. Our Executive Team has also worked with the Payroll provider, One Digital, to update our Time and Effort system to ensure accurate reporting of employee time. This ensures that time is captured and charged to the correct program. The following summary represents procedural updates to our General Ledger and Chart of Accounts: Opening/Closing the General Ledger: 1. The Accounting Manager accesses Quickbooks. a. Process: Go to (B-D) below. b. Select Account and Settings c. Advances d. Accounting e. The first month of the fiscal year “January” f. First month of revenue tax year “same as the fiscal year” g. Accounting Method – “Accrual” h. Close the books “1/31/2022” Example i. Allow changes are viewing a warning and SAVE. Financial Statements: At the request of the Chief Executive Officer, the Accounting Manager prepares a monthly Balance Sheet and Profit and Loss statements which are available with Quickbooks. This is shared with the Board at its monthly meeting. Bank Reconciliation: 2. The Accounting Manager prepares the monthly bank reconciliation through the Quick Books “Reconcile” tab. Updated Via Hope Chart of Accounts: Revenue 80110 Amplify Austin 80115 Fees & Registrations 80120 Contributions 80125 Indirect Revenue 80130 Sales 80135 Grant Other Income Total Revenue Gross Profit Expenditures 60000 Payroll and Benefits 60101 Fringe Transfer 60102 Payroll - 401K 60103 Payroll - Benefits 60104 Payroll - Fees 60105 Payroll - Legal 60106 Payroll - Social Security and Other Taxes 60107 Payroll - W/C 60108 Payroll - Wages 60110 Wage Transfer 60111 Wages - Other Total 60000 Payroll and Benefits 60112 Payroll Fee 66106 Social Security and Other Taxes 70101 Bank Fees 70102 Chargebacks 70200 Contractors 70201 Apprentice 70202 Certification 70203 Consultant 70204 Consultant (RI) 70205 Contract Training 70206 Evaluation 70207 Labor - Payroll 70208 Placement Services 70209 Stipend 70210 Supervisor 70211 Workshop Total 70200 Contractors 70301 Donation 70305 Equipment 70401 Memberships & subscriptions 70501 Professional Fees 70502 Insurance 70600 Operating Supplies 70601 Postage and Shipping 70602 Printing/Fax 70603 Supplies Total 70600 Operating Supplies 70700 Travel and Other 70701 Airlines 70702 Events 70703 Lodging 70704 Meals/Catering 70705 Travel Total 70700 Travel and Other 70801 Libraries for Health 70805 Marketing 70810 Recovery Institute 70815 Scholarships 70820 Storage 70825 Training 70835 Utilities 70840 Website 70850 Miscellaneous 70855 Software Total Expenditures Net Operating Revenue Net Revenue This represents a summary of the corrective steps taken to strengthen our internal controls and satisfy auditor findings. 3. Attached is a listing of our current chart of Accounts:

View Audit 315276 Questioned Costs: $1

Finding 478662 (2022-002)

Material Weakness 2022

Mental Health Resource of Texas, Inc.

TX

Questioned Costs Internal Control / Segregation of Duties Material Weakness

➢ Response: 2022-002 COMPLIANCE DEFICIENCIES (PAYPAL): As a result of the Paypal Forensic audit, the organization fully agrees and has taken steps to strengthen its internal controls, protect assets, detect fraud, and produce timely and accurate financial reports. The following processes and proced...

➢ Response: 2022-002 COMPLIANCE DEFICIENCIES (PAYPAL): As a result of the Paypal Forensic audit, the organization fully agrees and has taken steps to strengthen its internal controls, protect assets, detect fraud, and produce timely and accurate financial reports. The following processes and procedures are in place for Paypal and other accounting activities. PAYPAL: 1. Through Paypal, customers register for classes. 2. The cost of the transaction is included in the PayPal account. 3. Monthly, the Accounting Manager downloads PayPal transactions and records them on the General Ledger. The monthly statement is available between the 1st and 5th of the month. 4. The accounting entries for PayPal are: Credit –Payment Received (Fees and Registration) Debit – Payment Sent Debit – Withdrawals and Debits Debit – Merchant Fees Debit – Deposit 5. At the end of the prior month, funds are transferred from the PayPal account to the Frost Bank Account. Debit – Frost Bank Credit - Paypal

View Audit 315276 Questioned Costs: $1

Finding 478545 (2022-004)

Material Weakness 2022

Helping Hand House

WA

Questioned Costs Allowable Costs / Cost Principles Cash Management § 200.400

1. All related administrative and program operational costs have been appropriately classified and documented in QuickBooks beginning in March 2022. 2. Monthly review of administrative and program operational costs is performed by management and grant awarders.

View Audit 315179 Questioned Costs: $1

Finding 478407 (2022-003)

Material Weakness 2022

Neighborhood Legal Services Michigan

MI

Questioned Costs Period of Performance Subrecipient Monitoring

Following the completion of the 2021 Single Audit, we adjusted the Organization's Accounting Policies & Procedure Manual to include detailed information outlined in HUD's electronic Line of Credit Control System (eLOCCS) inclusive of the roles and responsibilities of the system's Users and Approving...

Following the completion of the 2021 Single Audit, we adjusted the Organization's Accounting Policies & Procedure Manual to include detailed information outlined in HUD's electronic Line of Credit Control System (eLOCCS) inclusive of the roles and responsibilities of the system's Users and Approving Official. Specifically, Accounting Department Leadership (i.e., the Chief Financial Officer), designated accounting personnel (i.e., Accountants), and/or agency Executive Leadership (i.e., CEO/Executive Director), must be cognizant of a grant's period of performance.

View Audit 315097 Questioned Costs: $1

Finding 478188 (2022-002)

Material Weakness 2022

Crow Creek Tribal Schools

SD

Questioned Costs Allowable Costs / Cost Principles Procurement, Suspension & Debarment § 200.303

Individual(s) Responsible: Anthony Barker, Business Manager; Business Office Personnel Action: Adequate documentation will be retained in order to support the review process. Anticipated Completion Date: June 30, 2024

View Audit 314870 Questioned Costs: $1

Finding 478016 (2022-007)

Significant Deficiency 2022

City of Lynn

MA

Questioned Costs Procurement, Suspension & Debarment

Audit Finding Reference: 2022-007 Improve Procurement Procedures (Significant Deficiency) Planned Corrective Action: City’s Purchasing Department will work with School & City Personnel to educate staff regarding Federal Award procurement practices to avoid this finding in the future. Completion D...

Audit Finding Reference: 2022-007 Improve Procurement Procedures (Significant Deficiency) Planned Corrective Action: City’s Purchasing Department will work with School & City Personnel to educate staff regarding Federal Award procurement practices to avoid this finding in the future. Completion Date Kevin McHugh, City of Lynn School Business Manager Stephen T. Spencer, City of Lynn Comptroller December 31, 2024

View Audit 314741 Questioned Costs: $1

Finding 478014 (2022-004)

Significant Deficiency 2022

City of Lynn

MA

Questioned Costs Allowable Costs / Cost Principles Significant Deficiency

Audit Finding Reference: 2022-004 Maintain Employer’s Time and Effort Records (Significant Deficiency) Planned Corrective Action: The district began implementing the Time and Effort process during fiscal year 2016. We now collect signed Time and Effort sheets twice per year for all employees paid 1...

Audit Finding Reference: 2022-004 Maintain Employer’s Time and Effort Records (Significant Deficiency) Planned Corrective Action: The district began implementing the Time and Effort process during fiscal year 2016. We now collect signed Time and Effort sheets twice per year for all employees paid 100% by Federal Grants. For those employees that are paid partially from Federal Grants, we collect them on a monthly basis. We will increase our diligence to strive for 100% efficiency in the future for the Department of Education Grant. In response to the CDBG, Time and Effort records were not maintained for all applicable employees. Community Development implemented the monthly collection of signed time and effort sheets for all employees paid with Federal Grants (in partial or full) a number of year ago, and will increase its diligence to ensure this procedure is consistently followed going forward. Name of Contact Person and Completion Date Kevin McHugh, City of Lynn School Business Manager James Marsh, Executive Director Community Development December 31, 2024

View Audit 314741 Questioned Costs: $1

Finding 477973 (2022-011)

Material Weakness 2022

Oklahoma County

OK

Questioned Costs Subrecipient Monitoring § 200.208 § 200.303 § 200.332 § 200.339 § 200.501

21.023 - Lack of Internal Controls and Noncompliance with Subrecipient Monitoring Requirement – Emergency Rental Assistance Program (Repeat Finding – 2021-002) Oklahoma County will comply with federal laws and regulations and grant agreements by creating award agreements that are designed and implem...

21.023 - Lack of Internal Controls and Noncompliance with Subrecipient Monitoring Requirement – Emergency Rental Assistance Program (Repeat Finding – 2021-002) Oklahoma County will comply with federal laws and regulations and grant agreements by creating award agreements that are designed and implemented to ensure Subrecipient Monitoring is performed. Anticipated Completion Date: 6/21/2023 Responsible Contact Person: Brian Maughan, BOCC Chairman

View Audit 314691 Questioned Costs: $1

Finding 477972 (2022-010)

Material Weakness 2022

Oklahoma County

OK

Questioned Costs Subrecipient Monitoring § 200.208 § 200.303 § 200.332 § 200.339 § 200.501

21.019 - Lack of Internal Controls and Noncompliance with Subrecipient Monitoring Requirement – Coronavirus Relief Fund (Repeat Finding - 2021-001) Oklahoma County will comply with federal laws and regulations and grant agreements by creating award agreements that are designed and implemented to ens...

21.019 - Lack of Internal Controls and Noncompliance with Subrecipient Monitoring Requirement – Coronavirus Relief Fund (Repeat Finding - 2021-001) Oklahoma County will comply with federal laws and regulations and grant agreements by creating award agreements that are designed and implemented to ensure Subrecipient Monitoring is performed. Anticipated Completion Date: 6/30/2024 Responsible Contact Person: Brian Maughan, BOCC Chairman

View Audit 314691 Questioned Costs: $1

Finding 477970 (2022-003)

Material Weakness 2022

City of Neptune Beach

FL

Questioned Costs Reporting Internal Control / Segregation of Duties

Management agrees with the recommendation and recognizes that consistent review of the payroll processing is critical in avoiding material mistakes that may lead to economic loss. Management is actively seeking new payroll processing software and is expecting to complete the deployment during fiscal...

Management agrees with the recommendation and recognizes that consistent review of the payroll processing is critical in avoiding material mistakes that may lead to economic loss. Management is actively seeking new payroll processing software and is expecting to complete the deployment during fiscal year 2023-24, to ensure the process is secure and efficient. In addition, we arecurrently documenting the process to ensure that payroll reports are reviewed and approved by the CFO, delegated employee, or City official in the event there is a gap in the Cheif Financial Officer position.

View Audit 314684 Questioned Costs: $1

Finding 457912 (2022-001)

Significant Deficiency 2022

Housing Authority of the City of Lake Charles

LA

Questioned Costs

Since the incident occurred, a 3rd party authentication application has been downloaded to employee's phones. In order to login

View Audit 314396 Questioned Costs: $1

Finding 454051 (2022-003)

None 2022

San Gabriel Unified School District

CA

Questioned Costs Equipment & Real Property Management Procurement, Suspension & Debarment § 200.311 § 200.313 § 200.326 § 200.439

District subsequently sought and obtained CDE approval for the expenditures identified in finding 2022-003.District has initiated a procedure where any requisitions for purchases utilizing Federal funds are routed through the Director of state and federal programs prior to being approved. The direct...

District subsequently sought and obtained CDE approval for the expenditures identified in finding 2022-003.District has initiated a procedure where any requisitions for purchases utilizing Federal funds are routed through the Director of state and federal programs prior to being approved. The director of state and federal programs, prior to approving the purchase requisition, will obtain approval from the CDE. All contracts utilizing federal funds will include language related to Federal wage rate requirements. The supervisor of Purchasing will be tasked with ensuring the contract language is present in agreements for services utilizing Federal funds.

View Audit 313833 Questioned Costs: $1

Finding 454028 (2022-001)

None 2022

Bellflower Unified School District

CA

Questioned Costs Allowable Costs / Cost Principles Period of Performance

January 12, 2023To Whom It May Concern:Finding 2022-001Finding 2022-001 addresses the use of CRF funding and the purchase made that covered period 8/25/21-8/24/22. The District moved forward with this expenditure in good faith based on their understanding of expenditure allowances and reporting. Ho...

January 12, 2023To Whom It May Concern:Finding 2022-001Finding 2022-001 addresses the use of CRF funding and the purchase made that covered period 8/25/21-8/24/22. The District moved forward with this expenditure in good faith based on their understanding of expenditure allowances and reporting. However, because the contract was for yearlong services and extended beyond the close of the reporting window on 10/06/21, CRF funding should not have been utilized.The District has contacted and shared the finding with CDE for additional guidance of how they want us to correct this matter. The District will also implement moving forward a check and balance system of working with the grantee to clarify any concerns about deadlines or allowable expenditures. If further assistance is needed we will work with our auditors to make the adjustments needed.Respectfully,Jorge MartinezDirector, Fiscal ServicesBellflower Unified School District562-866-9011 x 2161

View Audit 313807 Questioned Costs: $1

Finding 454021 (2022-004)

Significant Deficiency 2022

Bassett Unified School District

CA

Questioned Costs § 200.303

The district has implemented a process that includes the collaboration of the Instructional Services Department as well as the Business Department to ensure that the district maintains effective internal controls and accountability of all employees who are supported with Federal Dollars. In complia...

The district has implemented a process that includes the collaboration of the Instructional Services Department as well as the Business Department to ensure that the district maintains effective internal controls and accountability of all employees who are supported with Federal Dollars. In compliance with Title 2, CFR 200.303, and CSAM Procedure 905, the district is maintaining a roster of all employees paid with federal funding sources and ensuring that all these employees are completing the proper and required documentation including a semiannual certification for the fully funded employees, and the PARs document for the employees work on multiple activities or cost objectives of which at least one is federal funding source. The PAR?s document reflects detail of the employee?s daily activities by hours and percentages that are spent in each restricted, federal funded program.

View Audit 313805 Questioned Costs: $1

Finding 454020 (2022-005)

Significant Deficiency 2022

Bassett Unified School District

CA

Questioned Costs Internal Control / Segregation of Duties

Corrective Action: The District has two private schools within the District?s boundaries as follows: 1. St. Louis of France ? This private school has 77 low income qualified students (see attached students information). Based on the Title I allocation formula, the amount to be shared to St. Louis ...

Corrective Action: The District has two private schools within the District?s boundaries as follows: 1. St. Louis of France ? This private school has 77 low income qualified students (see attached students information). Based on the Title I allocation formula, the amount to be shared to St. Louis of France is as follows:"See Corrective Action Plan for Table". The District?s Student Services Director, Mr. Jason Tveit, is working with St. Louis of France administration to obtain their spending plan of $26,179 ESSER I share. Once we have their spending plan, Bassett will ensure the spending budget for the school is allocated into the unrestricted general fund (base) 00000.0 resource. 2.Bishop Amat Private School ? This school has declined acceptance of ESSER I funds.

View Audit 313805 Questioned Costs: $1

Finding 454013 (2022-003)

Significant Deficiency 2022

Escondido Union School District

CA

Questioned Costs School Nutrition Programs Allowable Costs / Cost Principles

1. Receive the CACFP check, and book all revenue to CACFP Budget line(5230) 2. Generate an invoice based on the IPV tool and rates laid forth in EUSD inter program agreement 3. Create JE debiting CACFP(5320) expense account and crediting NSLP(5310) expense account These steps will track funding sou...

1. Receive the CACFP check, and book all revenue to CACFP Budget line(5230) 2. Generate an invoice based on the IPV tool and rates laid forth in EUSD inter program agreement 3. Create JE debiting CACFP(5320) expense account and crediting NSLP(5310) expense account These steps will track funding sources and revunes by progrm in which it follows Child and Adult Care Food Program, Child Nutrition Cluster, National School Lunch Program Guidelines. Contacts: Bao Ho and Anna Scimone

View Audit 313799 Questioned Costs: $1

Finding 453820 (2022-001)

None 2022

Remington College

TX

Questioned Costs Student Financial Aid Matching / Level of Effort / Earmarking

A. Comments on Findings and Recommendations: We agree with the finding and recommendation. B. Actions Taken or Planned: The Institution has reviewed the details of the finding and determined the error to be an isolated instance due to human error. The Inst...

A. Comments on Findings and Recommendations: We agree with the finding and recommendation. B. Actions Taken or Planned: The Institution has reviewed the details of the finding and determined the error to be an isolated instance due to human error. The Institution returned $268 to the Federal Pell Grant Program on behalf of student #AR8. Student AR8 failed a class/module for the payment period in a non-standard program. On the Return of Title IV (R2T4) calculation, the payment period ending date should have been extended by an additional class/module. File Review will be added to the final review of all R2T4 calculations prepared for non-standard term programs. If the academic transcript includes repeat classes/modules, payment periods used in the calculation will be reviewed for accuracy.

View Audit 313766 Questioned Costs: $1

Finding 453786 (2022-001)

Significant Deficiency 2022

City of Portsmouth

OH

Questioned Costs Allowable Costs / Cost Principles Significant Deficiency § 200.303

Auditor of Public AccountsCity of Portsmouth, Virginia respectfully submits the following corrective action plan for the year ended June 30, 2022.Audit period: Fiscal Year 22, (July 1, 2021-June 30, 2022)The findings from the schedule of findings and questioned costs are discussed below. The finding...

Auditor of Public AccountsCity of Portsmouth, Virginia respectfully submits the following corrective action plan for the year ended June 30, 2022.Audit period: Fiscal Year 22, (July 1, 2021-June 30, 2022)The findings from the schedule of findings and questioned costs are discussed below. The findings are numbered consistently with the numbers assigned in the schedule.FINDINGS?FEDERAL AWARD PROGRAMS AUDITS2022-001 Coronavirus State and Local Recovery Funds (CSLRF) ? Assistance Listing No. 21.027Recommendation: We recommend that the City ensure that federal funds are used to support allowable costs and activities, and to determine when federal requirements may be more restrictive than the State or grantor? requirements.Explanation of disagreement with audit finding: There is no disagreement with the audit finding.Action taken in response to finding: Management concurs with the recommendation. The program categories will be reviewed prior to the program beginning to ensure appropriate adherence to the Federal vs State guidelines and the accuracy of the supporting documentation is provided going forward. Describe action planned or taken: The Standard Operating Procedures that provide additional detail will be followed to document the process of reviewing the guidelines. Program documentation gathering in advance to ensure program adherence for the program federal guidelines. Name(s) of the contact person(s) responsible for corrective action: Kyera Pope, Accounting Administrator, Gloria Taylor, Interim Chief Financial Officer Planned completion date for corrective action plan: 3/1/2023

View Audit 313753 Questioned Costs: $1

Finding 452442 (2022-102)

Material Weakness 2022

Maricopa County

AZ

Questioned Costs Cash Management Internal Control / Segregation of Duties § 200.303 § 200.305

Assistance Listings number and program name: 84.374 Teacher and School Leader Incentive GrantsDepartment: Maricopa County School SuperintendentContact Person(s): Matt Morales, Deputy Superintendent of Schools, Maricopa County School Superintendent?s Office.Anticipate completion date: June 30, 2023Co...

Assistance Listings number and program name: 84.374 Teacher and School Leader Incentive GrantsDepartment: Maricopa County School SuperintendentContact Person(s): Matt Morales, Deputy Superintendent of Schools, Maricopa County School Superintendent?s Office.Anticipate completion date: June 30, 2023Concur: The Maricopa County School Superintendent?s Office (Superintendent's Office) acknowledges the human error that was made with the May 2022 drawdown. Once the error was identified, the Assistant Superintendent for Economic Management, along with the grant project leader and the Human Capital Management Administrator, contacted the program officer at the US Department of Education and notified them of this error. The overdraw was resolved as there were additional program costs prior to the grant?s closeout in September 2022, and all program expenditures and reimbursements were reconciled prior to closeout. The Superintendent?s Office has implemented updated procedures including the addition of one more person to the reimbursement request approval process who will ensure that program expenditures are reconciled based on the fund balance report from the financial system for the correct time frame.

View Audit 313445 Questioned Costs: $1

Finding 452441 (2022-103)

Significant Deficiency 2022

Maricopa County

AZ

Questioned Costs Allowable Costs / Cost Principles Eligibility § 200.303

Assistance Listings number and program name: 21.023 COVID-19 Emergency Rental Assistance ProgramDepartment: Maricopa County Human ServicesContact Person(s): Nicole Forbes, Finance Manager, Human Services Department.Anticipated completion date: June 30, 2023Concur: The Maricopa County Human Services ...

Assistance Listings number and program name: 21.023 COVID-19 Emergency Rental Assistance ProgramDepartment: Maricopa County Human ServicesContact Person(s): Nicole Forbes, Finance Manager, Human Services Department.Anticipated completion date: June 30, 2023Concur: The Maricopa County Human Services Department (HSD) concurs that the payments noted by the Office of the Auditor General had suspicious activity. The payments noted represent less than .06% of Emergency Rental Assistance (ERA) financial transactions that the County processed in fiscal year 2022. In FY 2022, the HSD provided nearly $75.8 million in rental assistance, which equated to 9,940 financial transactions and 63,265 months of rental assistance for households living in Maricopa County. To help mitigate control discrepancies, the County has continued to strengthen internal controls from the inception of the ERA program. In July-September 2021, HSD implemented review of property information on the Maricopa County Assessor?s website for certain rental assistance applications on a case-by-case basis. However, HSD did not document those reviews or implement the review program-wide until September 2022. In September 2022, HSD updated internal controls through a revision of the ERA policy and process manual to require property information to be reviewed and also documented. In addition, in November 2022, the County worked with our banking institution to implement additional bank verification controls to more accurately and timely verify vendor banking information to further ensure payments were being sent to the approved landlord/property/manager/vendor. The County will continue with these internal controls to ensure accurate payments are processed.

View Audit 313445 Questioned Costs: $1

Finding 452437 (2022-024)

Significant Deficiency 2022

State of New Jersey

NJ

Questioned Costs Period of Performance Subrecipient Monitoring § 200.303 § 200.308 § 200.309 § 200.403

FINDING # 2022-024No finding in prior yearThe New Jersey Department of Labor and Workforce Development (DLWD) has a policy in place for processing tuition reimbursements that are performed by the Department?s Accounts Payable unit. The policy was reviewed by the Office of Finance & Accounting (F&A)...

FINDING # 2022-024No finding in prior yearThe New Jersey Department of Labor and Workforce Development (DLWD) has a policy in place for processing tuition reimbursements that are performed by the Department?s Accounts Payable unit. The policy was reviewed by the Office of Finance & Accounting (F&A) and internal control procedures were enhanced to ensure that fiscal cutoff measures were appropriately addressed. Tuition reimbursement procedures include having the requests forwarded to the responsible Supervising Analyst in the Appropriations/Accounting unit for final review and approval to ensure the proper fiscal period is charged. The correcting transactions were completed during the Single Audit timeframe to remediate the findings by charging and reimbursing the proper fiscal year accounts. The DLWD will continue its efforts to ensure compliance and that all charges applied to Federal awards are within the specified period of performance going forward.COMPLETION DATE/CONTACT PERSON December 31, 2023Ruslana Nagorniak(609) 984-7678Ruslana.Nagorniak@dol.nj.gov

View Audit 313443 Questioned Costs: $1

Finding 452428 (2022-021)

Significant Deficiency 2022

State of New Jersey

NJ

Questioned Costs Period of Performance Subrecipient Monitoring § 200.303 § 200.308 § 200.309 § 200.403

FINDING # 2022-021No finding in prior yearThe Department of Children and Families (DCF) will review and enhance its procedures and controls to ensure that expenditures charged to the program are incurred within each grant award?s specified period of performance.Further, as the federal SSBG grant awa...

FINDING # 2022-021No finding in prior yearThe Department of Children and Families (DCF) will review and enhance its procedures and controls to ensure that expenditures charged to the program are incurred within each grant award?s specified period of performance.Further, as the federal SSBG grant award cited has a period of performance that remains open through September 2023, DCF has adjusted the four transactions that were posted incorrectly to another available funding source and ensured that all transactions presently recorded are now in compliance and within the specified period of performance.COMPLETION DATE/CONTACT PERSON Fiscal Year 2024Steven M. Dodson(609) 888-7555Steven.Dodson@dcf.nj.gov

View Audit 313443 Questioned Costs: $1

Finding 452388 (2022-004)

Significant Deficiency 2022

State of New Jersey

NJ

Questioned Costs Reporting Matching / Level of Effort / Earmarking § 200.303

FINDING # 2022-0042021-010New Jersey continues to make progress towards meeting the first payment and non-monetary time lapse standards as recovery from the historic claims filing related to the COVID-19 pandemic continues. As indicated in the prior year update, time lapse standards for both first ...

FINDING # 2022-0042021-010New Jersey continues to make progress towards meeting the first payment and non-monetary time lapse standards as recovery from the historic claims filing related to the COVID-19 pandemic continues. As indicated in the prior year update, time lapse standards for both first payment and non-monetary continue to increase from the lows seen during the pandemic. Most recent figures for February 2023 show first payment time lapse at 65.1% and year-to-date at 54.5%, both up from what was reported last November 2022 at 40% and 36.4%, respectively. Non-monetary time lapse figures have also improved, with the most recent February 2023 figures reported as 62.6% for the month and 44.1% year-to-date, which is up from 24.0% for March 2022 and year-to-date at that time of 33.0%).It is important to note that before the pandemic hit in March 2020, New Jersey current figures at that time met all first payment and non-monetary time lapse standards for the reporting year that ended March 2020. The decrease to the timeliness figures is a direct result of the significant increase to workload volumes resulting from the pandemic and not due to a lack of proper internal controls.In addition to the high workloads, New Jersey has also implemented strict anti-fraud measures that include all new claims filed going through an identity proofing process before any payments can be issued. Delays on the claimant end to complete the verification process ? either by the claimant not going through the process or having difficulty with completing it ? also will have a direct impact on first payment time lapse. Increased education to claimants on the requirement to verify their ID, as well as increasing the tools and greater availability of support for ID verification will provide claimants with more options to meet this requirement. New Jersey has worked with our identity verification partner to allow for three different methods of verification; 1) self-service online, 2) connect to a `Trusted Referee? with our identity verification partner who will provide the verification online through a video call, or 3) an in-person appointment at a walk-in center to complete the process. In addition to what is offered by the vendor, One Stop centers throughout the State have been equipped with upgraded monitors with cameras that will allow claimants that are unable to complete the process with our vendor to report to one of these centers and complete the process there.As New Jersey continues to work through the backlog of claims, it is anticipated that overall time lapse figures will continue to improve and for the reporting year ending March 2024 progress will be made towards meeting the established standards.COMPLETION DATE/CONTACT PERSON April 2023Gregory Castellani(609) 292-2460Gregory.Castellani@dol.nj.gov

View Audit 313443 Questioned Costs: $1

Finding 452387 (2022-003)

Material Weakness 2022

State of New Jersey

NJ

Questioned Costs Eligibility Internal Control / Segregation of Duties § 200.303

FINDING # 2022-0032021-007The Department of Labor and Workforce Development (DLWD) has controls in place to only allow an FPUC payment to be made when an underlying Unemployment Insurance (UI) payment has also been processed. FPUC payments should not be issued to any claim without the underlying UI...

FINDING # 2022-0032021-007The Department of Labor and Workforce Development (DLWD) has controls in place to only allow an FPUC payment to be made when an underlying Unemployment Insurance (UI) payment has also been processed. FPUC payments should not be issued to any claim without the underlying UI payment being made for the same week. The two FPUC payments issued and noted as exceptions during eligibility testing will be reviewed independently by DLWD to determine if the payments issued were to eligible recipients or not.For the PUA exceptions noted during Eligibility testing, overall the DLWD issued PUA payments to over 680,000 claimants during the COVID-19 pandemic. DLWD had controls in place to require a COVID related reason to make the claim PUA eligible and the weekly PUA certification required claimants to choose a COVID related reason for why they were out of work before they could get paid. The PUA payments in question will be reviewed independently by the DLWD to determine if the payments issued under PUA were appropriate or if they should have been paid instead under the regular UI program.COMPLETION DATE/CONTACT PERSON February 2023Ronald Marino - DLWD(609) 292-2810Ronald.Marino@dol.nj.gov

View Audit 313443 Questioned Costs: $1

Corrective Action Plans

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