Corrective Action Plans

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Finding: The Organization did not have adequate and effective controls over compliance in place as it relates to activities allowed or unallowed and allowable costs. We noted instances where payroll and non-payroll related expenditures did not have documentation of review. Corrective Response: Manag...
Finding: The Organization did not have adequate and effective controls over compliance in place as it relates to activities allowed or unallowed and allowable costs. We noted instances where payroll and non-payroll related expenditures did not have documentation of review. Corrective Response: Management represents that there was not sufficient documentation of controls. Operational and reporting improvements will be pursued to better document expenditure review on a go-forward basis.
Recommendation 1: Comment: We appreciate the recommendation and fully agree with the importance of having a clear documentation process for all deliveries. To address this, we will implement a policy that ensures all deliveries to the Organization and Units are properly documented. A designated empl...
Recommendation 1: Comment: We appreciate the recommendation and fully agree with the importance of having a clear documentation process for all deliveries. To address this, we will implement a policy that ensures all deliveries to the Organization and Units are properly documented. A designated employee responsible for receiving deliveries will be tasked with ensuring that all receipts and receiving reports are accurately matched with the corresponding invoices. This process will enhance our internal controls and improve the tracking and accountability of all deliveries. Recommendation 2: Comment: We will implement a policy requiring Unit Directors to submit daily "End of Day Reports" using a standardized template. This template will capture essential information, including activities conducted, materials distributed, and deliveries received. We will also establish a policy for maintaining and utilizing sign-in sheets at each Unit, outlining the required information such as the activity or event description, number of children involved, materials distributed, and the names of the Unit Director and Assistant Director. These sign-in sheets will be submitted to the appropriate parties promptly and saved in an online repository, organized by Unit and grant year. Additionally, supporting documentation will be collected and stored as part of the overall documentation process. We are committed to enforcing these policies to ensure timely submission and proper maintenance of all required documentation, further reinforcing our dedication to transparency, accountability, and effective use of grant funds.
View Audit 341463 Questioned Costs: $1
Recommendation: We recommend the City adopt procedures to ensure applicable reports are submitted timely and accurately. Explanation of Disagreement with Audit Finding: There is no disagreement with the audit finding. Action Taken in Response to the Finding: The City will adopt procedures and work w...
Recommendation: We recommend the City adopt procedures to ensure applicable reports are submitted timely and accurately. Explanation of Disagreement with Audit Finding: There is no disagreement with the audit finding. Action Taken in Response to the Finding: The City will adopt procedures and work with federal agencies to ensure accurate and timely reporting. Official Responsible for Corrective Action: Kristi Lillehaug, City Clerk/Treasurer. Planned Completion Date for Corrective Action Plan: December 31, 2024.
The Organization’s Accounting Department, under the direction of the Chief Executive Officer, Connie Franks, will ensure that there’s proactive communication, dedicated resource allocation, and regular status checks on the deadline. He should ensure everyone involved understands the deadlines and re...
The Organization’s Accounting Department, under the direction of the Chief Executive Officer, Connie Franks, will ensure that there’s proactive communication, dedicated resource allocation, and regular status checks on the deadline. He should ensure everyone involved understands the deadlines and responsibilities to avoid any delays. Completion of the referenced corrective action will be implemented by January 2025.
In Finding 2023-005, it was reported that the Organization did not comply with federal award requirements to submit an annual Federal Data Collection Form to the Federal Audit Clearinghouse, including audited financial statements, no later than nine months after the fiscal year ended November 30, 20...
In Finding 2023-005, it was reported that the Organization did not comply with federal award requirements to submit an annual Federal Data Collection Form to the Federal Audit Clearinghouse, including audited financial statements, no later than nine months after the fiscal year ended November 30, 2022. Management recognizes the importance of complying with federal grant requirement guidelines. In response to Finding 2023-005, Management concurs with the finding. In response to this a new audit firm was hired, and it is expected that data collection forms will be completed and submitted timely after the November 30, 2023 audit.
In Finding 2023-004, it was reported that the Uniform Data System report submitted to DHHS for the year ended December 31, 2023, and 2022, contained incorrect data for federal grants. Federal grants were overstated on Table 9D of the UDS report by approximately $1,590,784 and $1,747,674, respectivel...
In Finding 2023-004, it was reported that the Uniform Data System report submitted to DHHS for the year ended December 31, 2023, and 2022, contained incorrect data for federal grants. Federal grants were overstated on Table 9D of the UDS report by approximately $1,590,784 and $1,747,674, respectively. Management recognizes the importance of complying with federal reporting guidelines. In response to Finding 2023-004, efforts will be made to ensure that federal grants are correctly reported on the UDS report.
In Finding 2023-003, it was reported that time and activity reports and/or I-9 forms were not maintained for certain employees. Although the Organization’s policies require that time records be maintained by employees, current operating procedures are not in place to ensure the time records are comp...
In Finding 2023-003, it was reported that time and activity reports and/or I-9 forms were not maintained for certain employees. Although the Organization’s policies require that time records be maintained by employees, current operating procedures are not in place to ensure the time records are completed. Procedures will be established to require all employees to maintain time and effort certifications that coincide with the Organization’s payroll cycle (at least on a monthly basis) and that I-9 forms are obtained for each employee in accordance with the Organization’s policies.
Management accepts the finding and recommendation. During fiscal year 2023, the finance department hired additional personnel to assist with the completion of the year-end closing processes and procedures. We have discussed with employees the importance of timely submission of the City’s annual audi...
Management accepts the finding and recommendation. During fiscal year 2023, the finance department hired additional personnel to assist with the completion of the year-end closing processes and procedures. We have discussed with employees the importance of timely submission of the City’s annual audit package and data collection form to the federal audit clearinghouse on an ongoing basis.
Views of Responsible Officials and Planned Corrective Actions – The District is committed to enhancing its processes to ensure timely and efficient preparation for audit requests. To align with the standards set forth in the New Mexico Administrative Code Title 2, Chapter 2, Part 2, we will implemen...
Views of Responsible Officials and Planned Corrective Actions – The District is committed to enhancing its processes to ensure timely and efficient preparation for audit requests. To align with the standards set forth in the New Mexico Administrative Code Title 2, Chapter 2, Part 2, we will implement more robust internal procedures to improve audit readiness and ensure that all necessary documentation is readily available. These efforts will support compliance with deadlines and strengthen overall audit management across the District’s operations. Responsible Parties: Director of Finance and the District’s business office. Estimated Completion Date: December 30, 2024.
Management Responses: The Organization has corrected prior year filings. Moving forward, the Organization will file with the Federal Clearinghouse in a timely manner.
Management Responses: The Organization has corrected prior year filings. Moving forward, the Organization will file with the Federal Clearinghouse in a timely manner.
View Audit 341049 Questioned Costs: $1
See Corrective Action Plan for Chart/Table
See Corrective Action Plan for Chart/Table
See Corrective Action Plan for Chart/Table
See Corrective Action Plan for Chart/Table
Condition: Five vendors were awarded a contract without a competitive procurement process. Corrective Action Planned: Complete competitive procurement will be done via the federal guidelines for Purchase Orders below and over the $50,000.00 threshold. This means upholding the laws laid out in 20...
Condition: Five vendors were awarded a contract without a competitive procurement process. Corrective Action Planned: Complete competitive procurement will be done via the federal guidelines for Purchase Orders below and over the $50,000.00 threshold. This means upholding the laws laid out in 200.319 by allowing competitive bidding for each contract given out to a vendor by soliciting quotes and having a written internal procedure with the help of the audit team. We will create a Google folder to upload all supporting documents on a yearly basis. Anticipated Completion Date: 2/17/2025 Contact: Noel Velez, Director of Finance
View Audit 341024 Questioned Costs: $1
Condition: The City did not reconcile its 2021 and 2022 revenue loss calculations with the final adjusted general ledger. Calendar year 2021 revenue was understated by $5,040,960 and calendar year 2022 revenue was understated by $1,455,486 in the 2021 and 2022 revenue loss calculations, respective...
Condition: The City did not reconcile its 2021 and 2022 revenue loss calculations with the final adjusted general ledger. Calendar year 2021 revenue was understated by $5,040,960 and calendar year 2022 revenue was understated by $1,455,486 in the 2021 and 2022 revenue loss calculations, respectively. Corrective Action Planned: Revenue reports for Calendar years 2020 - 2023 have been re-run and revenue loss calculations have been re-run by ARPA consultant for those years with results given to Auditors. Anticipated Completion Date: Complete Contact: Robert Dickinson, City Auditor
Condition: Claims support could only be provided by the School for two months. For one month, support was in the form of spreadsheets with tray counts in lieu of a point-of-sale system. For the other month, the tray count spreadsheets were accompanied by reports from the point-of-sale system. Th...
Condition: Claims support could only be provided by the School for two months. For one month, support was in the form of spreadsheets with tray counts in lieu of a point-of-sale system. For the other month, the tray count spreadsheets were accompanied by reports from the point-of-sale system. The point-of-sale system reports provided did not agree to the amounts claimed for reimbursement. The tray counts did not indicate whether the meal provided was paid, free or reduced. The claims for reimbursement submitted by the School used allocation percentages derived from prior year claims when estimating amounts to be claimed as paid, free and reduced. The tray count spreadsheets for the other months could not be located by the School. Corrective Action Planned: In January 2023 DESE sent an auditor to review the Medford School Nutrition Program. Before this review, there was significantly limited oversight by the central office finance team. Almost no documents were prepared before the review as required by DESE. As a result of this audit a 58-item, 19-page Corrective Action Plan was issued to the district. A new district leader was assigned for departmental oversight. The district then had weekly meetings with DESE to address the corrective action plan, for this was the single largest CAP DESE has issued to any district of our size. Nearly $1.3 million in reimbursements were withheld from the district from approximately November 2022 through the end of the Fiscal Year. DESE issued the reimbursements with a nominal penalty during the summer of 2023. At the end of FY23, the district terminated the director of the program. We are now training several individuals in the MCPPO program for enhanced oversight. DESE forced an immediate return audit for FY24. This was an exceptional action as DESE has only rarely done this. The same reviewer attended and noted significant improvements as a result of district actions undertaken. As relates to this particular finding, the School Department has purchased and is consistently using a point of sale system for students to purchase their meals. The system is used to track all transactions. Anticipated Completion Date: 2/17/2025 Contact: Peter Cushing, Assistant Superintendent
View Audit 341024 Questioned Costs: $1
See Corrective Action Plan table/chart.
See Corrective Action Plan table/chart.
View Audit 340895 Questioned Costs: $1
New procedures have been established to ensure the separation of duties and responsibilities between the individuals who prepare grant reporting and the individuals who review the reports starting FY2024. The accounting manager gathers the data and prepares the grant reporting and then the Finance ...
New procedures have been established to ensure the separation of duties and responsibilities between the individuals who prepare grant reporting and the individuals who review the reports starting FY2024. The accounting manager gathers the data and prepares the grant reporting and then the Finance Director reviews and approves the reporting before it is submitted.
The City hired an additional accountant on July 1, 2023, to oversee all of the Economic Development grants. This accountant is responsible for the review of all reporting and submission.
The City hired an additional accountant on July 1, 2023, to oversee all of the Economic Development grants. This accountant is responsible for the review of all reporting and submission.
IHS will develop compliance policies and procedures by March 2025.
IHS will develop compliance policies and procedures by March 2025.
Internal control over payroll and disbursements In January 2023 changes to any pay rates were submitted on a Personnel Action Form (PAF) by the Operations Manager. The PAF included the old pay rate and the new pay rate and was submitted to the Executive Director for review and approval. After app...
Internal control over payroll and disbursements In January 2023 changes to any pay rates were submitted on a Personnel Action Form (PAF) by the Operations Manager. The PAF included the old pay rate and the new pay rate and was submitted to the Executive Director for review and approval. After approval, the form was filed in the employees paper file, as well as uploaded to their electronic record on the ProService platform. In May 2024, we hired a Human Resources Specialist who is responsible for updating and maintaining all personnel files and processing of payroll records. In October 2023, we hired an Accounting Specialist (AS) who is responsible for the processing of all vendor disbursements. Prior to ordering items or services, a Purchase Requisiton (PR) is submitted by the program manager to the Executive Director or Programs Director for review and approval. Upon approval the PR is submitted to the Controller for expense and grant coding. PR is then submitted to the AS to assign a PR number and enter the expenses on the PR tracking log. When the PR has been assigned a PR number it is sent to the Operations Manager for purchasing. When the invoice is received the PR is matched to the invoice indicating proper approvals. If the purchase is over $5,000, a Procurement form is completed to solicit 3 bids and reviewed and approved by the Executive Director. If the purchase is over $20,000, the Procurement form is submitted to the Board of Directors for approval. All Procurement forms are attached to invoices for payment processing. Internal control over account balances During the fiscal year, it was noted that there were credit card entries that were duplicated, and have been corrected as of the date of this report. Due to miscommunication with the previous fiscal staff, payments made by credit card were entered as an invoice and as an adjusting journal entry.
Federal program title – Home Partnership Investment Program – HOME loan – CFDA 14.239 Recommendation: CLA recommends the County develop procedures, such as including a compliance checklist in the receivables listing sent to the auditor’s office, to ensure that outstanding loan continuing compliance...
Federal program title – Home Partnership Investment Program – HOME loan – CFDA 14.239 Recommendation: CLA recommends the County develop procedures, such as including a compliance checklist in the receivables listing sent to the auditor’s office, to ensure that outstanding loan continuing compliance is performed timely and documented in accordance with the HOME grant loan provision. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: The Grants department had two employees in FY 22/23. The Grant coordinator and assistant both terminated county employment in fiscal year 22/23 and left virtually no records. Information and materials, they did leave behind were stuffed in boxes and tracking in the electronic workbook was not fully completed. Admin staff trained the Grant employees but was unaware they were not following the process and procedures, and only saving information to their personal computer. Current admin staff requested the documents from prior staff members and they were received, though we are unsure if all were sent. Staff is doing their due diligence and working diligently to get back on track in monitoring activities, and train the newly hired staff. There is insufficient budget to hire the staff needed to fully monitor the Home Program loan efforts. Name(s) of the contact person(s) responsible for corrective action: Under direction of the County Administrative Officer, the Senior Financial Analyst Suzie Hawkins. Planned completion date for correcting action plan: Undetermined at this time as the staff continues their current minimal Home Program loan efforts while still maintaining all other duties, and being short staffed. Existing Home Program workload is being closed out as fast as possible.
View Audit 340608 Questioned Costs: $1
Federal program title – Community Development Block Grant – CDBG – CFDA 14.228 Recommendation: CLA recommends the County develop procedures, such as including a compliance check list in the receivables listing sent to auditor’s office, to ensure that outstanding loan continuing compliance is perfor...
Federal program title – Community Development Block Grant – CDBG – CFDA 14.228 Recommendation: CLA recommends the County develop procedures, such as including a compliance check list in the receivables listing sent to auditor’s office, to ensure that outstanding loan continuing compliance is performed timely and documented in accordance with the CDBG grant loan provision. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: The Grants department had two employees in FY 22/23. The Grant coordinator and assistant both terminated county employment in fiscal year 22/23 and left virtually no records. Information and materials, they did leave behind were stuffed in boxes and tracking in the electronic workbook was not fully completed. Admin staff trained the Grant employees but was unaware they were not following the process and procedures, and only saving information to their personal computer. Current admin staff requested the documents from prior staff members and they were received, though we are unsure if all were sent. Staff is doing their due diligence and working diligently to get back on track in monitoring activities, and train the newly hired staff. There is insufficient budget to hire the staff needed to fully monitor the CDBG efforts. Name(s) of the contact person(s) responsible for corrective action: Under direction of the County Administrative Officer, the Senior Financial Analyst Suzie Hawkins Planned completion date for correcting action plan: Undetermined at this time as the staff continues their current minimal CDBG efforts while still maintaining all other duties, and being short staffed. Existing CDBG workload is being closed out as fast as possible.
View Audit 340608 Questioned Costs: $1
Federal program title – Community Development Block Grant – CDBG – CFDA 14.228 Recommendation: CLA recommends the County develop procedures, such as reporting checklist to ensure that reporting requirements are tracked and met. Additionally, CLA recommends that the County perform cross training wi...
Federal program title – Community Development Block Grant – CDBG – CFDA 14.228 Recommendation: CLA recommends the County develop procedures, such as reporting checklist to ensure that reporting requirements are tracked and met. Additionally, CLA recommends that the County perform cross training with employees to ensure that knowledge is shared among the team members. Action taken in response to finding: The Grants department had two employees in FY 22/23. The Grant coordinator and assistant both terminated county employment in fiscal year 22/23 and left virtually no records. Information and materials, they did leave behind were stuffed in boxes and tracking in the electronic workbook was not fully completed. Admin staff trained the Grant employees but was unaware they were not following the process and procedures, and only saving information to their personal computer. Current admin staff requested the documents from prior staff members and they were received, though we are unsure if all were sent. Staff is doing their due diligence and working diligently to get back on track in monitoring activities, and train the newly hired staff. There is insufficient budget to hire the staff needed to fully monitor the CDBG efforts. Name(s) of the contact person(s) responsible for corrective action: Under direction of the County Administrative Officer, the Senior Financial Analyst Suzie Hawkins Planned completion date for correcting action plan: Undetermined at this time as the staff continues their current minimal CDBG efforts while still maintaining all other duties, and being short staffed. Existing CDBG workload is being closed out as fast as possible.
Views of responsible officials and corrective action: Payroll Tax administration integration through ADP automats tax deposits and filings – quarterly/annually for federal, state and local jurisdictions. Conducting continual balancing to ensure that tax filing data matches payroll data. ADP identifi...
Views of responsible officials and corrective action: Payroll Tax administration integration through ADP automats tax deposits and filings – quarterly/annually for federal, state and local jurisdictions. Conducting continual balancing to ensure that tax filing data matches payroll data. ADP identifies and corrects reconciliation mistakes throughout the year to help save time and ensure an easier year-end tax audit. expense and accounts payable payroll policy Progress House Inc. contracts with an external company for payroll services. payroll preparation and approval Protocol Payroll Records-Employees are paid on a bi-monthly basis. The payroll company is responsible for preparing payroll checks and maintaining the records in a payroll journal. deductions Progress House Inc. is responsible for providing the external payroll company accurate employee information, and providing changes or corrections as needed. The external payroll company is responsible for ensuring deductions including the appropriate social security taxes (FICA), federal income taxes, state income taxes and state disability insurance. Responsible Individual: Cindy Carlson, Executive Director Implementation Date: September 2023
View Audit 340574 Questioned Costs: $1
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