Corrective Action Plans

Finding 564236 (2024-003)

Significant Deficiency 2024

DC

Questioned Costs Allowable Costs / Cost Principles § 200.1 § 200.405

Finding 2024-003: Unsubstantiated Expense The single audit report included the following recommendation: We recommend that management strengthen the process to identify and review funding sources of underlying expenditures, that support the amounts of the reclassification journal entries. This co...

Finding 2024-003: Unsubstantiated Expense The single audit report included the following recommendation: We recommend that management strengthen the process to identify and review funding sources of underlying expenditures, that support the amounts of the reclassification journal entries. This could include reviewing approved budgets for the federal award in scope at a necessary level of detail to determine appropriateness of allocations in a timely manner. Management Response/Status of Action Plans: Amtrak believes education and reinforcing the existing upfront controls to ensure the correct initial coding of the expenditures is correct is the best way to address this issue. When this issue was identified during the audit, the company coordinated a meeting with the department where these costs originated to reinforce the need to properly code the expenditures in the purchase order process. Leadership in that department acknowledged the miscoding and committed to proper coding going forward. The company understands that the issue of training on this control to properly code purchase orders may exist in other departments and will develop communication to reinforce education in the proper processes and controls in this area. The contact for this item is Carol Hanna, VP Controller. Amtrak anticipates that changes described above will remediate this finding in the fiscal year ending September 30, 2025

View Audit 358334 Questioned Costs: $1

Finding 564234 (2024-002)

Significant Deficiency 2024

National Railroad Passenger Corporation

DC

Subrecipient Monitoring Matching / Level of Effort / Earmarking Questioned Costs § 200.302 § 200.303

Finding 2024-002: Review of Compliance Matrices and Narratives The single audit report included the following recommendation: We recommend that Amtrak establishes a more defined timeline for the events that would trigger the update and review of the compliance matrices and compliance narrative, w...

Finding 2024-002: Review of Compliance Matrices and Narratives The single audit report included the following recommendation: We recommend that Amtrak establishes a more defined timeline for the events that would trigger the update and review of the compliance matrices and compliance narrative, which could include execution of any new federal awards or amendments to existing federal awards. Additionally, Amtrak should establish a process where the modifications to the provisions are assessed for materiality/applicability and include documentation of the respective conclusions as part of the review process. Management Response/Status of Action Plans: Amtrak acknowledges the need to augment process documentation around the controls over the preparation and updates to the compliance matrices. The company is in the process of updating these controls now and will incorporate the identified findings in developing more robust controls. The company specifically notes the need to add more documentation on considerations for what provisions are updated in the compliance matrices and the evidence of review. The review procedures and controls are being enhanced to include a checklist to improve the review. This checklist will be completed by both the compliance matrix creator (upon creation) and the compliance matrix reviewer/approver (upon review and final approval). The contact for this item is Lucia Butts, AVP Funding and Grants and Meghan Histand, Director of Discretionary Grants. Amtrak anticipates fully remediating this finding by September 2025.

View Audit 358334

Finding 564150 (2024-002)

Significant Deficiency 2024

Keystone Place Housing Corporation

MO

Questioned Costs HUD Housing Programs Reporting

CORRECTIVE ACTION PLAN FOR THE YEAR ENDED DECEMBER 31, 2023 Finding 2024-002 Responsible Party: Name: Rodney Potter Position: Assistant Executive Director Telephone Number: (816) 364-3827 Federal Agency U.S. Department of Housing and Urban Development Federal Program Supportive Housing for Persons w...

CORRECTIVE ACTION PLAN FOR THE YEAR ENDED DECEMBER 31, 2023 Finding 2024-002 Responsible Party: Name: Rodney Potter Position: Assistant Executive Director Telephone Number: (816) 364-3827 Federal Agency U.S. Department of Housing and Urban Development Federal Program Supportive Housing for Persons with Disabilities – Section 811 Compliance Requirements N – Special Tests and Provisions Finding Type Financial Statements and Federal Awards Auditee’s Comments on Finding Keystone Place agrees with the auditors’ finding and recommendation. Corrective Action(s) We will ensure a current and approved HUD Form 9839-B is on file. The form was submitted to HUD for approval on March 22, 2023, however HUD requested additional documentation from the Organization regarding the operation and management of the property before granting approval. The additional documentation (a Management Agreement) and an updated Form 9839-B request was submitted to HUD in October 2024; however, approval has not been granted by HUD to-date. Anticipated Completion Date July 31, 2025

View Audit 358319 Questioned Costs: $1

Finding 564148 (2024-002)

Significant Deficiency 2024

National Association of State Foresters

DC

Questioned Costs Allowable Costs / Cost Principles § 200.403 § 200.405

During the fiscal year under audit, NASF hosted two events at the same hotel – one charged to a nonfederal program and the other related to a federal program. Initially, all event-related cost were charged to the nonfederal program. Subsequently, $28,500 was reclassified to the Federal program. A...

During the fiscal year under audit, NASF hosted two events at the same hotel – one charged to a nonfederal program and the other related to a federal program. Initially, all event-related cost were charged to the nonfederal program. Subsequently, $28,500 was reclassified to the Federal program. As a result, $18,387 was incorrectly charged to the Federal award. The Executive Director and Chief Financial Officer have established the following corrective action plan to be completed in May, 2025 and going forward: 1. Include individual grant Profit & Loss statements to the monthly close review process to help strengthen internal controls over expenditures and make sure all cost charged to the programs are allowable under 2 CFR 200.403. 2. Provide training to NASF staff and contractors on the requirements for allowable cost. 3. NASF has informed the funder (U.S. Forest Service) - Lynne Sholty (Supervisory Grants and Agreements Specialist) about the unallowable cost of $18,387. At time of this response, we are awaiting invoice so NASF can repay the balance in full. This corrected action has an anticipated completion day of 60 days (June 30th, 2025) by the Chief Financial Officer (Rafael Chapman) in conjunction with Executive Director (James Farrell).

View Audit 358316 Questioned Costs: $1

Finding 564127 (2024-002)

Significant Deficiency 2024

Target Hunger, INC .

TX

Questioned Costs Allowable Costs / Cost Principles

Finding #2024-002 – Significant Deficiency and Other Noncompliance. Applicable federal program: Harris County, Passed through The Houston Food Bank, COVID-19 Coronavirus State and Local Fiscal Recovery Funds, Assistance Listing #21.027, Contract Number: N/A, Contract Year: 02/08/23 – 12/31/24. R...

Finding #2024-002 – Significant Deficiency and Other Noncompliance. Applicable federal program: Harris County, Passed through The Houston Food Bank, COVID-19 Coronavirus State and Local Fiscal Recovery Funds, Assistance Listing #21.027, Contract Number: N/A, Contract Year: 02/08/23 – 12/31/24. Recommendation: Provide additional training to employees to ensure timesheets are obtained for all payroll transactions to support the allocation of compensation. Planned corrective action: Target Hunger will provide additional training to employees to remind them to always prepare timesheets if their payroll is being allocated. Responsible officer: Sandra Wicoff, Chief Executive Officer. Estimated completion date: June 2025.

View Audit 358248 Questioned Costs: $1

Finding 564126 (2024-001)

Significant Deficiency 2024

Target Hunger, INC .

TX

Procurement, Suspension & Debarment Questioned Costs Significant Deficiency

Finding #2024-001 – Significant Deficiency and Other Noncompliance. Applicable federal programs: U. S. Department of Housing and Urban Development, Economic Development Initiative, Community Project Funding, and Miscellaneous Grants, Assistance Listing #14.251, Contract Number: В-23-СР-TX-1411, Co...

Finding #2024-001 – Significant Deficiency and Other Noncompliance. Applicable federal programs: U. S. Department of Housing and Urban Development, Economic Development Initiative, Community Project Funding, and Miscellaneous Grants, Assistance Listing #14.251, Contract Number: В-23-СР-TX-1411, Contract Year: 02/15/24 – 08/31/31, Harris County, Passed through The Houston Food Bank, COVID-19 Coronavirus State and Local Fiscal Recovery Funds, Assistance Listing #21.027, Contract Number: N/A, Contract Year: 02/08/23 – 12/31/24. Recommendation: Develop a formal procurement policy and provide training to staff responsible for procurement. Planned corrective action: Target Hunger will develop and implement a procurement policy in accordance with the Uniform Guidance Procurement standards and will provide training to those responsible for procurement activities. Responsible officer: Sandra Wicoff, Chief Executive Officer. Estimated completion date: July 2025.

View Audit 358248

Finding 564124 (2024-002)

Significant Deficiency 2024

The Benjamin Rose Institute on Aging

OH

Questioned Costs Eligibility

Comments on the Finding and Each Recommendation – We acknowledge the finding to review our procedures around appropriate documentation for eligibility of recipients for the program. We plan to verify eligibility for all clients through income verification and include enhanced audit processes in our ...

Comments on the Finding and Each Recommendation – We acknowledge the finding to review our procedures around appropriate documentation for eligibility of recipients for the program. We plan to verify eligibility for all clients through income verification and include enhanced audit processes in our supervisory review prior to signing off of files for submission to accounts payable for processing going forward. This enhanced process includes a signoff on the check request cover sheet, implemented in April 2025, as verification of the review of the income verification being completed at the time of file review. All files in support of income verification get scanned into our Salesforce software as documentation with client files. We further plan to increase our internal audits of files to 10 a month, selecting a sample across counselors each month. This process will include a review of income verification completed within each file. Finally, we will be including an internal quality improvement monitor in our QI committee to track progress on these efforts. Actions Taken on the Finding – By taking these steps we aim to fully resolve this issue and establish a more robust and transparent process to ensure proper documentation of eligibility for the remainder of this grant.

View Audit 358229

Finding 564123 (2024-001)

Significant Deficiency 2024

The Benjamin Rose Institute on Aging

OH

Questioned Costs

Comments on the Finding and Each Recommendation – We acknowledge the finding to review our procedures around calculations of eligible expenses and management has met to implement corrective action effective April 2025. We have created an internal tool to standardize the calculation around eligible d...

Comments on the Finding and Each Recommendation – We acknowledge the finding to review our procedures around calculations of eligible expenses and management has met to implement corrective action effective April 2025. We have created an internal tool to standardize the calculation around eligible delinquent rent, eligible advanced rent limited to 3 months, and other amounts payable to landlords or for eligible rental expenditures. We will also use this form to document all eligible utility expenditures, including applicable processing fees, in order to reconcile between the accounts payable processing and our internal software used by the counseling staff to ensure full and proper calculations of eligible expenditures between departments and all related eligible expenditures being reported by all parties. We further plan to increase our internal audits of files to 10 a month, selecting a sample across counselors each month. This process will include a review of the use of the newly implemented rent check calculation template and ensuring proper calculations are completed. We will also perform a review of proper calculations of eligible expenses prior to the implementation as necessary. Finally, we will be including an internal quality improvement monitor in our QI committee to track progress on these efforts. Actions Taken on the Finding – By taking these steps we aim to fully resolve this issue and establish a more robust and transparent process to ensure proper calculation of eligible expenses for the remainder of this grant.

View Audit 358229 Questioned Costs: $1

Finding 564108 (2024-002)

Significant Deficiency 2024

Young Men's Christian Association of the Greater Houston Area

TX

Questioned Costs Allowable Costs / Cost Principles

Finding #2024-002 – Significant Deficiency and Other Noncompliance. Applicable federal programs: U. S. Department of State, 19.510, U. S. Refugee Admissions Program, Passed through U. S. Committee for Refugees and Immigrants: 10/01/24 – 09/30/25, SPRMCO24CA0353, 05/01/24 – 12/31/24, SPRMCO23CA0369,...

Finding #2024-002 – Significant Deficiency and Other Noncompliance. Applicable federal programs: U. S. Department of State, 19.510, U. S. Refugee Admissions Program, Passed through U. S. Committee for Refugees and Immigrants: 10/01/24 – 09/30/25, SPRMCO24CA0353, 05/01/24 – 12/31/24, SPRMCO23CA0369, 10/01/23 – 09/30/24, SPRMCO23CA0367, 10/01/24 – 09/30/25, SPRMCO24CA0350, U. S. Department of Health and Human Services, 93.566, Refugee and Entrant Assistance State/Replacement Designee Administered Programs, Passed through Texas Office for Refugees: 10/01/24 – 09/30/25, FFY2025-27946V-ASA RSS, 01/01/23 – 09/30/24, FFY2024-27946V-ASA-RSS, 10/01/24 – 09/30/25, FFY2025-27946V-AUSAA-RSS, 10/01/23 – 09/30/24, FFY2024-27946V-AUSAA-RSS, 10/01/24 – 09/30/25, FFY2025-27946V-CMA, 10/01/23 – 09/30/24, FFY2024-27946V-CMA, 10/01/24 – 09/30/25, FFY2023-27946V-RSS, 10/01/23 – 09/30/24, FFY2024-27946V-RSS, Passed through United States Conference of Catholic Bishops: 10/01/24 – 09/30/25, 25RSI13A, 10/01/23 – 09/30/24, 2024RSIAiSD, Passed through U. S. Committee for Refugees: 10/01/24 – 09/30/25, RHP-2025-YMCA-Houston TX-03, 10/01/23 – 09/30/24, RHP-2024-YMCA-Houston TX-02, 93.567, Refugee and Entrant Assistance Voluntary Agency Programs, Passed through U. S. Committee for Refugees and Immigrants: 10/01/23 – 09/30/24, 2402VARVMG-00, 93.576, Refugee and Entrant Assistance Discretionary Grants, Passed through U. S. Committee for Refugees and Immigrants: 09/30/24 – 09/29/25, GPK5RHKAEUGS, 09/30/23 – 09/29/24, 90RP0119, 09/30/22 – 09/29/23, 90RP0119-01-01, 09/30/24 – 09/29/25, 90RP0119, 09/30/22 – 09/29/23, 90RP0119, 09/30/23 – 09/29/24, 90RP0119-02-04, 93.676, Unaccompanied Children Program, Passed through U. S. Committee for Refugees and Immigrants: 01/01/24 – 12/31/26, 90XU0630-01-00. Condition and context: During our testing of payroll, non-payroll and indirect cost pool transactions, we identified the following exceptions: U. S. Refugee Admissions Program AL# 19.510, For 4 employees out of 25 tested, there was no documentation that the employees completed the required training (related payroll costs $5,578). For 1 non-payroll transaction out of 25 tested, the expense was coded one month after the services were provided but was within the correct grant period. Refugee and Entrant Assistance State/Replacement Designee Administered Programs AL# 93.566, For 1 non-payroll transaction out of 25 tested, the expense was reported in the incorrect grant period (related costs $4,298). Unaccompanied Children Program AL# 93.676, For 1 non-payroll transaction out of 25 tested, the expense was reported in the incorrect grant period (related costs $561). Indirect Cost Pool Testing, For 2 nonpayroll transactions our of 25 tested, the expenses were incorrectly coded to the indirect cost pool. Recommendation: Emphasize adherence to established policies and procedures to ensure maintenance of documentation, and review of coding. Management’s response: Management agrees with the finding. Continued rapid growth in these programs caused oversight and errors with respect to invoice receipt, approval and coding. Subsequently, rapid changes in early 2025 in funding at the government level resulted in many staff assigned to these programs to exit the organization. With the absence of these staff, and the shutdown of a database where some of this information is stored, documentation was not able to be provided. We understand the importance of appropriate documentation, record retention, and expense review. As the organization moves forward with these programs on a smaller scale, internal procedures will be reinforced to those staff associated with the programs. Responsible officer: Jennifer Garcia, Chief Financial Officer. Estimated completion date: June 2025.

View Audit 358211 Questioned Costs: $1

Finding 564010 (2024-001)

Material Weakness 2024

Universal Family Connection, Inc.

IL

Reporting Questioned Costs

Finding 2024-001 Noncompliance with Federal and State Reporting Requirements Assistance Listing Numbers 93.667 Social Service Block Grant Program 21.027 Coronavirus State and Local Fiscal Recovery Funds Program Federal Agency U.S. Department of Health and Human Services Passthrough Agency Illinois D...

Finding 2024-001 Noncompliance with Federal and State Reporting Requirements Assistance Listing Numbers 93.667 Social Service Block Grant Program 21.027 Coronavirus State and Local Fiscal Recovery Funds Program Federal Agency U.S. Department of Health and Human Services Passthrough Agency Illinois Department of Human Services Award Number/Year 2024 Condition UFC did not submit its audited financial statements and SEFA to the Federal Audit Clearinghouse website within nine (9) months of June 30, 2024. UFC also didn’t submit its audited financial statements, SEFA, CFR, CYEFR and other required information to the GATA portal within nine (9) months after June 30, 2024. Views of Responsible Officials and Planned Corrective Actions Management concurs with the auditor’s finding and will 1) hire personnel within the accounting and finance department so that all defined tasks can be performed in a more timely manner and 2) evaluate current processes to determine how to make them more efficient so that the current personnel within the accounting and finance department are able to complete their tasks in a more timely manner. Persons Responsible: Marlin Bryant, CFO Date of Implementation: May 2025

View Audit 358172

Finding 564008 (2024-003)

Significant Deficiency 2024

Housing Authority of the City of Dodge City

KS

Questioned Costs HUD Housing Programs

Tenant Accounts Receivable Corrective action planned: Hired new assistant to keep delinquent rents in check effective 5-20-2025. Contact person: Darren Basgall, Executive Director. Anticipated completion date: Rents will be collected to the best of our efforts and repayment agreements in place...

Tenant Accounts Receivable Corrective action planned: Hired new assistant to keep delinquent rents in check effective 5-20-2025. Contact person: Darren Basgall, Executive Director. Anticipated completion date: Rents will be collected to the best of our efforts and repayment agreements in place by 9-30-2025

View Audit 358169

Finding 563976 (2024-003)

Significant Deficiency 2024

County of Kern

CA

Allowable Costs / Cost Principles Questioned Costs Period of Performance § 200.303

Block Grants for Prevention and Treatment of Substance Abuse – Assistance Listing No. 93.959 Recommendation: We recommend the County to conduct training with its various departments to instruct them on how to compile expenditures based on the accrual basis of accounting (when the expenditures were i...

Block Grants for Prevention and Treatment of Substance Abuse – Assistance Listing No. 93.959 Recommendation: We recommend the County to conduct training with its various departments to instruct them on how to compile expenditures based on the accrual basis of accounting (when the expenditures were incurred). Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: The Auditor’s Controllers office provides training on accrual basis of accounting at year-end training. All personnel related to recording the expenditures related to this program will be required to attend the meeting. In addition, the Auditor’s office will require all department heads and chief fiscal officers to sign off on the accuracy and completeness of their revenue and expenditures prior to closing each fiscal year going forward. Names of the contact persons responsible for corrective action: Aimee Espinoza, Auditor-Controller and Alonzo Solis, AC Senior Accountant. Planned completion date for corrective action plan: June 30, 2025, is not feasible due to the issuance date so expected completion date to June 30, 2026.

View Audit 358146

Finding 563974 (2024-002)

Significant Deficiency 2024

County of Kern

CA

Allowable Costs / Cost Principles Questioned Costs Period of Performance § 200.303

Block Grants for Community Mental Health Services - Assistance Listing No. 93.958 Recommendation: We recommend the County to conduct training with its various departments to instruct them on how to compile expenditures based on the accrual basis of accounting (when the expenditures were incurred). ...

Block Grants for Community Mental Health Services - Assistance Listing No. 93.958 Recommendation: We recommend the County to conduct training with its various departments to instruct them on how to compile expenditures based on the accrual basis of accounting (when the expenditures were incurred). Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: The Auditor’s Controllers office provides training on accrual basis of accounting at year-end training. All personnel related to recording the expenditures related to this program will be required to attend the meeting. In addition, the Auditor’s office will require all department heads and chief fiscal officers to sign off on the accuracy and completeness of their revenue and expenditures prior to closing each fiscal year going forward. Names of the contact persons responsible for corrective action: Aimee Espinoza, Auditor-Controller and Alonzo Solis, AC Senior Accountant. Planned completion date for corrective action plan: June 30, 2025, is not feasible due to the issuance date so expected completion date to June 30, 2026.

View Audit 358146

Finding 563969 (2024-001)

Significant Deficiency 2024

Fouke School District

AR

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

We concur with the recommendation and will contact DESE to ensure that the correct process is used to move the unallowable costs totaling $843 to the Operating Fund. To correct the payroll issue of charging unallowable costs, the payroll clerk will run reports quarterly to verify all payroll charge...

We concur with the recommendation and will contact DESE to ensure that the correct process is used to move the unallowable costs totaling $843 to the Operating Fund. To correct the payroll issue of charging unallowable costs, the payroll clerk will run reports quarterly to verify all payroll charges to any federal fund are appropriate.

View Audit 358144 Questioned Costs: $1

Finding 563967 (2024-001)

None 2024

603 Legal Aid

NH

Subrecipient Monitoring Internal Control / Segregation of Duties Questioned Costs

Planned Corrective Action: The 603LA Accounting Manual has been updated and completed, taking into consideration the requirements of the 2023 LSC Financial Guide, including the completion of the Self-Assessment Questionnaire (Appendix 9) of the Guide. The Board of Directors reviewed, approved, and ...

Planned Corrective Action: The 603LA Accounting Manual has been updated and completed, taking into consideration the requirements of the 2023 LSC Financial Guide, including the completion of the Self-Assessment Questionnaire (Appendix 9) of the Guide. The Board of Directors reviewed, approved, and codified the Accounting Manual at the May 28, 2025 Board of Directors meeting. Responsible Person: Controller. Date of Completion: Compliant as of May 2025.

View Audit 358140

Finding 563943 (2024-001)

Significant Deficiency 2024

The Colonial Williamsburg Foundation

VA

Allowable Costs / Cost Principles Questioned Costs Reporting

2024-001 – Internal Control over Compliance with Activities Allowed or Unallowed and Allowable Costs and Cost Principles Management’s Corrective Action Plan: The program director will review the payroll data quarterly to ensure that the costs are accurate and allowable and provide documented evidenc...

2024-001 – Internal Control over Compliance with Activities Allowed or Unallowed and Allowable Costs and Cost Principles Management’s Corrective Action Plan: The program director will review the payroll data quarterly to ensure that the costs are accurate and allowable and provide documented evidence of timely review to the Grant Officer. Estimated Completion Date: June 30, 2025 Individual(s) Responsible for Corrective Action Plan: Ramona Vogel (Hill), Executive Director, Historic Area Interpretation & Operations, (757) 220-7762

View Audit 358119

Finding 563939 (2024-003)

None 2024

845 Housing Corporation

RI

Questioned Costs Internal Control / Segregation of Duties

The Corporation is applying for their auditee unique entity identifier. When it is received, the Corporation will file the Data Collection Form for the year ended December 31, 2024 with the Federal Audit Clearinghouse.

View Audit 358112

Finding 563938 (2024-001)

None 2024

845 Housing Corporation

RI

Questioned Costs

The management agent pressed charges and prosecuted the employee and recovered $48,200 from the auditee’s insurance company in total (less $2,500 deductible). The management agent implemented additional internal control procedures over the processing and review of the auditee’s cash account and cash...

The management agent pressed charges and prosecuted the employee and recovered $48,200 from the auditee’s insurance company in total (less $2,500 deductible). The management agent implemented additional internal control procedures over the processing and review of the auditee’s cash account and cash reconciliations by their employees. Those charged with governance of the auditee also retained the services of a different auditing firm to conduct the 2024 audit of the Corporation. In addition, those charged with governance have requested the Executive Director to perform more stringent review of the operational and financial activity and reports provided by the management agent monthly.

View Audit 358112 Questioned Costs: $1

Finding 563936 (2024-001)

Material Weakness 2024

Trees Forever, Inc.

IA

Questioned Costs Cash Management Internal Control / Segregation of Duties

Finding 2024-001 – Review of Expense Details for Compliance Condition: From the selections made for internal controls testing, the auditor noted no review/approval for compliance with the terms of the grant agreement was conducted prior to submission of the costs to the grantor. Recommendation: W...

Finding 2024-001 – Review of Expense Details for Compliance Condition: From the selections made for internal controls testing, the auditor noted no review/approval for compliance with the terms of the grant agreement was conducted prior to submission of the costs to the grantor. Recommendation: We recommend management implement processes and controls to perform a review of expenses being submitted for reimbursement to document approval of costs in compliance with the terms of the grant. View of responsible officials and planned corrective actions: Management agrees with the finding and will conduct an internal review of federal expenditures for compliance with the requirements applicable to each federal grant received prior to submission for reimbursement. Anticipated Completion Date: May 31, 2025

View Audit 358111

Finding 563872 (2024-002)

Significant Deficiency 2024

Federation of American Scientists

DC

Questioned Costs Material Weakness Reporting

Identifying Number: 2024-001 Finding: Current management noted that the audited financial statements as of and for the year ended June 30, 2023, were materially misstated for certain contribution transactions recorded in error in the amount of $7,997,654. Those errors were corrected and recorded in...

Identifying Number: 2024-001 Finding: Current management noted that the audited financial statements as of and for the year ended June 30, 2023, were materially misstated for certain contribution transactions recorded in error in the amount of $7,997,654. Those errors were corrected and recorded in fiscal year 2024, which is not in accordance with U.S. GAAP. Corrective Actions Taken or Planned: The entire finance team was new in FY24. During an internal review, management identified that certain revenue transactions had been recorded incorrectly in the prior fiscal year (FY23), resulting in a materially misstated ending balance for FY23 and, consequently, an inaccurate beginning balance for FY24. Because FY23 had already been closed and audited, the necessary corrections were recorded in FY24. Management proactively informed the new auditors of these adjustments. Due to the materiality of the correction, the auditors determined that the FY23 ending balance needed to be reinstated. As a result, they expanded their scope to include a re-audit of FY23 to ensure the accuracy of the reinstated balances, which extended the overall audit timeline. It’s important to emphasize that this finding was self-identified and communicated by management, and the correction was properly recorded in FY24. No further corrective action is required for FY25. Throughout FY24, the finance team has worked diligently to strengthen internal policies, processes, controls, and systems, which contributed to a clean audit result for FY24. This finding relates solely to FY23 and does not reflect the current state of financial management. Name of Responsible Person: Manizha Nabieva, CFO Projected Date of Completion: 05/28/2025 Identifying Number: 2024-002 Finding: Federation of American Scientists’ fiscal year 2024 data collection form was not submitted within nine months after the end of the audit period. Corrective Actions Taken or Planned: The delay in filing the data collection form was directly related to the delay in finalizing the audit, as noted in the first finding above. Since this was our first year working with RSM, the audit scope expanded significantly due to the reinstatement of beginning balances. The auditors required additional time to ensure the accuracy of the financial statements before issuing their final report. We will finalize and submit the data collection form as soon as the audit is complete, but no later than May 28, 2025. To prevent similar delays in the future, we have already initiated discussions with our auditors regarding the FY25 audit and plan to begin the audit process in October 2025. Name of Responsible Person: Manizha Nabieva, CFO Projected Date of Completion: 5/28/2025

View Audit 358091

Finding 563854 (2024-002)

Significant Deficiency 2024

School District 12 Education Foundation Dba Five Star Education Foundation

CO

Questioned Costs Reporting Significant Deficiency

Finding 2024-002: Internal Control Over Financial Reporting– Significant Deficiency Audit Finding: Management is responsible for the design and implementation of internal controls over year-end financial reporting, including controls over procedures used to enter transaction in the general ledge...

Finding 2024-002: Internal Control Over Financial Reporting– Significant Deficiency Audit Finding: Management is responsible for the design and implementation of internal controls over year-end financial reporting, including controls over procedures used to enter transaction in the general ledger and record recurring and nonrecurring adjustments to the financial statements on an accrual basis. During the course of the audit, journal entries were required to reconcile accounts receivable, accrued expenses, and accrued PTO from a cash basis to an accrual basis, which indicate a lack of operating effectiveness of internal controls over the financial reporting process. Audit Recommendation: We recommend School District 12 Education Foundation (dba Five Star Education Foundation) review policies and procedures related to the year-end financial reporting process and controls should be implemented to ensure accrual basis financial reporting can be achieved. Management’s Response and Corrective Action Plan: School District 12 Education Foundation (dba Five Star Education Foundation) agrees with the finding and recommendation. These transactions were proactively shared with the auditor at the commencement of the audit and discussed. Actions were already taken to fix these processes. In 2023 an outside professional was hired to mitigate these circumstances and ensure adherence to GAAP accounting. Management is hiring new accountants to alleviate future issues in this space. Management is in the process of implementing enhanced processes and procedures to achieve the proper recording of transactions on an accrual basis. A year-end checklist will be used to ensure that all accruals are booked in accounts receivable and payables. Contact and Completion Date: Shannon Hancock, 720-972-4342, shannon.hancock@5starfoundation.org, is the primary contact, and the Executive Director at School District 12 Education Foundation (dba Five Star Education Foundation). The corrective action is expected to be resolved before the end of the next fiscal year-end of December 31, 2025.

View Audit 358066

Finding 563847 (2024-001)

Material Weakness 2024

Seminole County Board of Edcuation

GA

Questioned Costs Allowable Costs / Cost Principles Matching / Level of Effort / Earmarking § 200.303 § 200.403

FA 2024-001 Strengthen Controls over Expenditures Compliance Requirement: Activities Allowed or Unallowed Allowable Costs/Cost Principle Internal Control Impact: Material Weakness Compliance Impact: Material Noncompliance Federal Awarding Agency: U.S. Department of Education Pass-Through Entity: ...

FA 2024-001 Strengthen Controls over Expenditures Compliance Requirement: Activities Allowed or Unallowed Allowable Costs/Cost Principle Internal Control Impact: Material Weakness Compliance Impact: Material Noncompliance Federal Awarding Agency: U.S. Department of Education Pass-Through Entity: Georgia Department of Education Assistance Listing Number and Title: COVID-19 - 84.425D - Elementary and Secondary School Emergency Relief Fund COVID-19 - 84.425U - American Rescue Plan Elementary and Secondary School Emergency Relief Fund Federal Award Number: S425D210012 (Year: 2021), S425U210012 (Year: 2021) Questioned Costs: $72,595 Description: A review of expenditures charged to the Elementary and Secondary School Emergency Relief Fund programs revealed that the School District's internal control procedures were not operating appropriately to ensure that expenditures were properly recorded. Corrective Action Plans: Our office was unaware our financial program could automatically generate employee's supplemental checks in addition to standard monthly checks. Now that we are aware, Ivey McLendon and I will monitor our financial program's automatically generated claims closely to adapt our manual accrual entries. Estimated Completion Date: June 30, 2025 Contact Person: Sherry Gray, Financial Director Telephone: (229) 524-2433 Email: sgray@seminole.k12.ga.us

View Audit 358065 Questioned Costs: $1

Finding 563814 (2024-004)

Material Weakness 2024

Waimanalo Health Center

HI

Special Tests & Provisions Questioned Costs Eligibility

Health Resources and Services Administration Mary Frances Oneha, Waimanalo Health Center’s CEO respectfully submits the following corrective action plan for the year ended June 30, 2024: CohnReznick LLP 1301 Avenue of the Americas New York, NY 10019 Audit Period: June 30, 2024Item 2024-004 - Speci...

Health Resources and Services Administration Mary Frances Oneha, Waimanalo Health Center’s CEO respectfully submits the following corrective action plan for the year ended June 30, 2024: CohnReznick LLP 1301 Avenue of the Americas New York, NY 10019 Audit Period: June 30, 2024Item 2024-004 - Special Tests and Provisions (Material Weakness) During our audit, we noted that the Center did not properly determine the sliding fee discount of certain eligible patients based on information provided during the patient registration process. Recommendation We recommend that the Center conduct training of all of its personnel who are involved in determining the sliding fee scale of patients. We also recommend that an internal audit of a sample of patient charts be conducted periodically to ensure that patients' sliding fee scale discounts or category is properly and accurately determined based on information provided by patients. Finally, we recommend that such internal audit be documented. Action Taken Management agrees with the finding and will be establishing policies and procedures and conducting training for all personnel involved in determining patients' sliding fee scale to help ensure the accuracy of the process. Management will also implement an internal audit of a sample of patient charts and will ensure that such audits are properly documented. Effectivity Date: June 30, 2025

View Audit 358045

Finding 563800 (2024-003)

Significant Deficiency 2024

Wallingford Housing Authority

CT

HUD Housing Programs Reporting Questioned Costs

Finding Reference Number: 2024-003 Reporting Description of Finding: The selection of a sample of 12 annual reexaminations, which is approximately 10% of the population, for participants in the Housing Voucher Cluster. For 3 out of the 12 re-examinations, the annual reexamination was not conducted ...

Finding Reference Number: 2024-003 Reporting Description of Finding: The selection of a sample of 12 annual reexaminations, which is approximately 10% of the population, for participants in the Housing Voucher Cluster. For 3 out of the 12 re-examinations, the annual reexamination was not conducted timely. Documented delays in receiveing informatuon from participants caused the re-examinations to not bt conducted on an annual basis. Statement of Concurrence or Noncurrence: The Wallingford Housing Authority agrees and accepts the above referenced findings: Correction Action: Maintaining a properly staffed and trained management team who will create and maintain a schedule of annual reexaminations to be held in compliance within the guidelines of HUD and to be completed in a timely manner.

View Audit 358012

Finding 563799 (2024-002)

Material Weakness 2024

Wallingford Housing Authority

CT

Reporting Questioned Costs HUD Housing Programs

Finding Reference Number: 2024-002 Reporting Description of Finding: The required unaudited annual filing with HUD's Real Estate Assessment Center (REAC), for fiscal 2024, was not made by the required deadline of September 15, 2024. In addition, as noted in finding 2024-001, prior audit adjustments...

Finding Reference Number: 2024-002 Reporting Description of Finding: The required unaudited annual filing with HUD's Real Estate Assessment Center (REAC), for fiscal 2024, was not made by the required deadline of September 15, 2024. In addition, as noted in finding 2024-001, prior audit adjustments, there were material misstaments that were not identified and corrected by management. Statement of Concurrence or Nonconcurrence: The Wallingford Housing Authority agrees and accepts the above referenced findings. Corrective Action: The Wallingford Housing Authority currently is procuring a new third-party fee accountant that will prepare and submit all required unfilled filings to the appropriate agencies. The Wallingford Housing Authority will create and maintain a schedule of all required submittal dates.

View Audit 358012

Corrective Action Plans

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