Corrective Action Plans

Finding 502370 (2023-003)

Significant Deficiency 2023

Eger Health Care and Rehabilitation Center Fha 012-10056

NY

Questioned Costs Reporting

Finding Reference Number 2023-003 1. Name of contact person responsible for corrective action Annmarie Covone, Executive Vice President/Chief Financial Officer 2. Corrective action planned 3. Our organization will reach out to HRSA to request permission to resubmit our PRF period 5 submission’s los...

Finding Reference Number 2023-003 1. Name of contact person responsible for corrective action Annmarie Covone, Executive Vice President/Chief Financial Officer 2. Corrective action planned 3. Our organization will reach out to HRSA to request permission to resubmit our PRF period 5 submission’s lost revenue so that lost revenue will agree to our underlying records and audited financial statements. 4. Anticipated Completion Date This will be completed in October 2024. 5. If the client does not agree with the findings or believes corrective action is not required, include an explanation and specific reasons We agree with Finding Reference No. 2023-003 Contact Information Annmarie Covone Executive Vice President/Chief Financial Officer 205 Lexington Avenue, 2nd Floor, New York, NY 10016 P (646) 633-4702 acovone@archcare.org

View Audit 324409

Finding 502369 (2023-002)

Significant Deficiency 2023

Eger Health Care and Rehabilitation Center Fha 012-10056

NY

HUD Housing Programs Questioned Costs Reporting

Finding Reference Number 2023-002 1. Name of contact person responsible for corrective action Annmarie Covone, Executive Vice President/Chief Financial Officer 2. Corrective action planned Management changes caused delays in locating support for the single audit testing. Accordingly, the new mana...

Finding Reference Number 2023-002 1. Name of contact person responsible for corrective action Annmarie Covone, Executive Vice President/Chief Financial Officer 2. Corrective action planned Management changes caused delays in locating support for the single audit testing. Accordingly, the new management anticipates that these matters will not repeat themselves in the future periods and the audited financial statements will be submitted timely. 3. Anticipated Completion Date This will be completed in October 2024. 4. If the client does not agree with the findings or believes corrective action is not required, include an explanation and specific reasons We agree with Finding Reference No. 2023-002 Contact Information Annmarie Covone Executive Vice President/Chief Financial Officer 205 Lexington Avenue, 2nd Floor, New York, NY 10016 P (646) 633-4702 acovone@archcare.org

View Audit 324409

Finding 502368 (2023-001)

Significant Deficiency 2023

Eger Health Care and Rehabilitation Center Fha 012-10056

NY

Allowable Costs / Cost Principles Questioned Costs

Finding Reference Number 2023-001 1. Name of contact person responsible for corrective action Annmarie Covone, Executive Vice President/Chief Financial Officer 2. Corrective action planned Our organization will reach out to HRSA to request permission to resubmit our PRF period 5 submission of heal...

Finding Reference Number 2023-001 1. Name of contact person responsible for corrective action Annmarie Covone, Executive Vice President/Chief Financial Officer 2. Corrective action planned Our organization will reach out to HRSA to request permission to resubmit our PRF period 5 submission of health care expenses as lost revenue. 3. Anticipated Completion Date This is anticipated to be completed in October 2024 subject to HRSA’s permission to resubmit our Period 5 submission. 4. If the client does not agree with the findings or believes corrective action is not required, include an explanation and specific reasons We agree with Finding Reference No. 2023-001 Contact Information Annmarie Covone Executive Vice President/Chief Financial Officer 205 Lexington Avenue, 2nd Floor, New York, NY 10016 P (646) 633-4702 acovone@archcare.org

View Audit 324409

Finding 502336 (2023-002)

Significant Deficiency 2023

Enrichment Services Program, Inc.

GA

Questioned Costs Internal Control / Segregation of Duties Special Tests & Provisions

August 31, 2024 To: Clausell & Associates, P.C. From: Tabirus Lockhart, Chief Financial Officer of Enrichment Services Programs, Inc. Below is the Agency’s corrective action plan as it relates to the findings for the fiscal year ending July 31, 2023, Single Audit Act audit. Comment #2023-001 INT...

August 31, 2024 To: Clausell & Associates, P.C. From: Tabirus Lockhart, Chief Financial Officer of Enrichment Services Programs, Inc. Below is the Agency’s corrective action plan as it relates to the findings for the fiscal year ending July 31, 2023, Single Audit Act audit. Comment #2023-001 INTERNAL CONTROLS OVER FINANCIAL STATEMENT PREPARATION, GRANT CLOSE-OUT, AND COMPLIANCE WITH RELATED PROVISIONS OF GRANTS AND CONTRACTS SHOULD BE IMPROVED GENERAL (Repeat) Views of Responsible Officials and Planned Corrective Actions: We concur with this finding - Management is in the process of assessing the organizational structure, capacity to provide adequate financial reporting. With Board review and approval of the Agency’s financial funding sources, the Agency will hire additional fiscal clerk to further support financial requirements and segregation of duties to ensure adequate internal controls are fully implemented. The CFO will have the overall responsibility of properly reconciling and closing out the accounting system and grant activity each month in an efficient and timely manner to eliminate the risk of significant errors occurring. Budget-to-actual schedules will be an integral part of the grant accountant analyst’s basic responsibilities. The fiscal policies and procedures will be updated with the enhancements implemented within the fiscal department. Staff will be trained on revised policies and procedures and Uniform Guidance regulations. The new automated financial systems, will support financial reporting to meet GAAP requirements and to provide informative reports for Board and Management. All enhancements will be implemented by December 31, 2024. Implementation Date: The plan correction date will be completed no later than December 31, 2024. Responsible Person: Tabirus Lockhart, CFO, will be responsible for the corrective action. Comment #2023-002 INTERNAL CONTROLS OVER FINANCIAL STATEMENT PREPARATION, GRANT CLOSE-OUT, AND COMPLIANCE WITH RELATED PROVISIONS OF GRANTS AND CONTRACTS SHOULD BE IMPROVED HEAD START AND EARLY HEAD START, LIHEAP, LIHWAP, CSBG, ASTHO FAL # 93.600, 93.568, 93.499, 93.569, 93.185 (Questioned Costs - Undetermined) Views of Responsible Officials and Planned Corrective Actions: We concur with the finding. Management and staff are in the process of assessing and updating the policies and procedures over the accounting and reporting of federal and state grants and contracts. In connection with training staff on the new and updated accounting system, we are providing on-going training on the requirements of the Uniform Guidance and the specific requirements for each individual grant award as outlined in each applicable Compliance Supplement issued by Office of Management and Budget (OMB). We are currently reconciling all cash accounts, completing and amending, were necessary, all SF-425 reports and other external reports required by each funding source (state and federal). We anticipate completing this corrective action by December 31, 2024. See also the response to Comment #2023-01. Implementation Date: The plan correction date will be completed no later than December 31, 2024. Responsible Person: Tabirus Lockhart, CFO, will be responsible for the corrective action.

View Audit 324385 Questioned Costs: $1

Finding 502260 (2023-001)

None 2023

Pharr Affordable Housing Dba Sunset Terrace Senior Village

TX

Questioned Costs Cash Management HUD Housing Programs

Tenant security deposit bank account. Contact person - Executive Director. Corrective action planned - The Project will maintain a tenant security deposit bank account in accordance with the regulatory agreement. Anticipated completion date - Within the next fiscal year.

View Audit 324372

Finding 502111 (2023-003)

Significant Deficiency 2023

Independent School District No. 281

MN

Allowable Costs / Cost Principles Questioned Costs

SIGNIFICANT DEFICIENCY IN INTERNAL CONTROL OVER COMPLIANCE – U.S. DEPARTMENT OF EDUCATION, PASSED THROUGH MINNESOTA DEPARTMENT OF EDUCATION, TITLE I GRANTS TO LOCAL EDUCATIONAL AGENCIES – ALN NO. 84.010 2023-003 Internal Control Over Compliance With Federal Allowable Cost Requirements Finding Sum...

SIGNIFICANT DEFICIENCY IN INTERNAL CONTROL OVER COMPLIANCE – U.S. DEPARTMENT OF EDUCATION, PASSED THROUGH MINNESOTA DEPARTMENT OF EDUCATION, TITLE I GRANTS TO LOCAL EDUCATIONAL AGENCIES – ALN NO. 84.010 2023-003 Internal Control Over Compliance With Federal Allowable Cost Requirements Finding Summary 2CFR Part 200, Subpart F, § 430(i) requires that charges to federal awards for salaries and wages must be based on records that accurately reflect the work performed and be supported by a system of internal control which provides reasonable assurance that the charges are accurate, allowable, and properly allocated. The District’s internal control system for documenting employee time supporting salaries charged to the Title I program for teachers assigned to the program as a single cost objective, requires the completion of semi-annual certifications approved by the employees’ supervisor. For three of five Title I teacher salaries tested, this documentation was either missing, incomplete, or lacking documentation of approval. Corrective Action Plan Actions Planned – District management will ensure that appropriate time and effort documentation is prepared, approved, and kept on file to support all salaries charged to federal programs going forward. Official Responsible – The District’s Chief Financial Officer, Kristen Hoheisel. Planned Completion Date – June 30, 2024. Disagreement With or Explanation of Finding – The District agrees with this finding. Plan to Monitor – The District’s Chief Financial Officer, Kristen Hoheisel, will monitor the documentation of time and effort for employees whose salaries are charged to federal programs complies with the District’s established internal controls over this area going forward.

View Audit 324326

Finding 502110 (2023-001)

Material Weakness 2023

The Homeless Families Foundation

OH

Cash Management Reporting Questioned Costs § 200.516

CORRECTIVE ACTION PLAN Audit Firm: Winkel Green & Company LLP Audit Period: January 1, 2023 through December 31, 2023 CAP Prepared by: Name: Beth Fetzer-Rice Position: Executive Director Current Findings on the Schedule of Findings, Questioned Costs and Recommendations 1. Fin...

CORRECTIVE ACTION PLAN Audit Firm: Winkel Green & Company LLP Audit Period: January 1, 2023 through December 31, 2023 CAP Prepared by: Name: Beth Fetzer-Rice Position: Executive Director Current Findings on the Schedule of Findings, Questioned Costs and Recommendations 1. Finding 2023-001 a. Comments on the Finding and Recommendation. Uniform Guidance stipulates that reimbursements are paid to subrecipients in a timely manner. The Organization did not pay subrecipients in a timely manner for the months of January through June 2023, resulting in $261,999 of untimely reimbursements. b. Action Taken or Planned on the Finding The Organization met with subrecipients prior to December 31, 2023 to establish increased control processes, including outlining documentation requirements, timeframes for reimbursement submission, identifying correct staff contacts for timely communications, and formalizing a timeframe for approving/distributing subrecipient disbursements. The Organization has paid all reimbursements through December 2023 as of February 2024.

View Audit 324321 Questioned Costs: $1

Finding 502031 (2023-005)

Significant Deficiency 2023

El Hogar Del Nino

IL

Questioned Costs Significant Deficiency Internal Control / Segregation of Duties

SIGNIFICANT DEFICIENCY IN INTERNAL CONTROL OVER COMPLIANCE 2023 – 005 Payroll Disbursements Recommendation: Management should continue to follow established controls to ensure the appropriate compensation of its employees at approved rates. Explanation of disagreement with audit finding: There is...

SIGNIFICANT DEFICIENCY IN INTERNAL CONTROL OVER COMPLIANCE 2023 – 005 Payroll Disbursements Recommendation: Management should continue to follow established controls to ensure the appropriate compensation of its employees at approved rates. Explanation of disagreement with audit finding: There is no disagreement with this finding. Action taken in response to finding: As of July 1, 2023, the Organization was acquired by Brightpoint, a social service organization with complimentary operations. The finance leadership of the acquiring organization has robust internal controls is experienced to resolve this finding in the subsequent year. Name of the contact person responsible for corrective action: Ed Balogh, Controller Planned completion date for corrective action plan: June 30, 2024. If the U.S. Department of Health and Human Services has questions regarding this plan, please call Ed Balogh, Controller, at 312-424-0200.

View Audit 324229 Questioned Costs: $1

Finding 501997 (2023-006)

Material Weakness 2023

Cleveland Urban Minority Alcoholism Outreach Project, Inc.

OH

Questioned Costs Allowable Costs / Cost Principles Period of Performance § 200.300 § 200.305 § 200.308 § 200.309 § 200.403

1. Cleveland UMADAOP will obtain written prior approval for any expenditure deviations from the originally approved budget. This topic will be covered when training occurs during the quarterly review of grant guidelines. 2. As part of its updated financial policies and procedures, Cleveland UMADAOP...

1. Cleveland UMADAOP will obtain written prior approval for any expenditure deviations from the originally approved budget. This topic will be covered when training occurs during the quarterly review of grant guidelines. 2. As part of its updated financial policies and procedures, Cleveland UMADAOP will seek to document all financial activity to ensure compliance with grant and federal guidelines. 3. As part of the updated financial policies and procedures, Cleveland UMADAOP will seek written confirmation from funders whenever there is a deviation from the terms outlined in the original award documentation. 4. As part of the updated financial policies Cleveland UMADAOP will be using the services of a virtual accounting firm that specializes in: a) standardized monthly financial reporting packages that will be reconciled to the approved budgets; b) standardized monthly close processes that lock transactions at the end of each month; and c) electronic document retention for A/P and A/R among other services.

View Audit 324194 Questioned Costs: $1

Finding 501995 (2023-004)

Material Weakness 2023

Cleveland Urban Minority Alcoholism Outreach Project, Inc.

OH

Questioned Costs Subrecipient Monitoring Material Weakness § 200.302 § 200.328 § 200.415

1. A critical aspect of Cleveland UMADAOP’s updating of financial policies and procedures will be training on the proper and timely completion of federal forms 2. Weekly meetings will be held with Program Directors with a standard agenda item of upcoming due dates within the subsequent four weeks. 3...

1. A critical aspect of Cleveland UMADAOP’s updating of financial policies and procedures will be training on the proper and timely completion of federal forms 2. Weekly meetings will be held with Program Directors with a standard agenda item of upcoming due dates within the subsequent four weeks. 3. During these meetings, Directors will be required to provide status updates and draft submissions when applicable. 4. Once a quarter, a federal compliance requirement will be selected to have a deep dive review. 5. An HQ Administrative Assistant will be hired to monitor compliance as well as adherence to deadlines and will prepare a monthly report for the Executive Director’s review.

View Audit 324194 Questioned Costs: $1

Finding 501993 (2023-002)

Material Weakness 2023

Cleveland Urban Minority Alcoholism Outreach Project, Inc.

OH

Questioned Costs Allowable Costs / Cost Principles § 200.302 § 200.403

Cleveland UMADAOP will be using the services of a virtual accounting firm that specializes in: a) standardized monthly financial reporting packages that will be reconciled to the approved budgets; b) standardized monthly close processes that lock transactions at the end of each month; and c) electro...

Cleveland UMADAOP will be using the services of a virtual accounting firm that specializes in: a) standardized monthly financial reporting packages that will be reconciled to the approved budgets; b) standardized monthly close processes that lock transactions at the end of each month; and c) electronic document retention for A/P and A/R among other services.

View Audit 324194 Questioned Costs: $1

Finding 501991 (2023-001)

Material Weakness 2023

The Verland Foundation, Inc.

PA

Questioned Costs Reporting Internal Control / Segregation of Duties

Action taken in response to finding: Management made every effort to submit the report by the due date of September 30th, completing all necessary information in the reporting portal prior to the deadline. On October 2nd, management contacted the Provider Relief Hotline to confirm the submission was...

Action taken in response to finding: Management made every effort to submit the report by the due date of September 30th, completing all necessary information in the reporting portal prior to the deadline. On October 2nd, management contacted the Provider Relief Hotline to confirm the submission was successful as the portal was unavailable due to maintenance. The representative was able to confirm TVFI’s login activity from September 30th. When attempting to download the report for the auditors on November 11th, management discovered it was locked and still marked as “in process,” indicating it had not been fully submitted. Management promptly created a case with the Provider Relief Hotline. The Provider Relief Organization has acknowledged the case advising management to hold the records for three years and be prepared to complete a late filing when further information is received from the Provider Relief Organization. Name(s) of the contact person(s) responsible for corrective action: Catherine Bogats Planned completion date for corrective action plan: Management is waiting to receive further information on instructions for a late filing and will complete the late filing promptly upon receipt. If the US Department of Health and Human Services has questions regarding this plan, please call Catherine Bogats at 412-741-2440.

View Audit 324187

Finding 501988 (2023-001)

Significant Deficiency 2023

Meadow Lane Housing Development Fund Company, Inc.

NY

Eligibility Questioned Costs HUD Housing Programs

An age waiver has been submitted to HUD and is currently being reviewed. We are awaiting their decision. While we await a decision, Meadow Lane will review all existing application for eligibility and advise any existing applicants who are not of age that they are no longer eligible via mail. Antic...

An age waiver has been submitted to HUD and is currently being reviewed. We are awaiting their decision. While we await a decision, Meadow Lane will review all existing application for eligibility and advise any existing applicants who are not of age that they are no longer eligible via mail. Anticipated Completion Date: Pending HUD approval of age waiver

View Audit 324170

Finding 501987 (2023-001)

None 2023

Amistad Community Health Center, Inc.

TX

Questioned Costs Eligibility

1) Revisit our training materials provided to our Patient Access Representatives upon being hired and revise such materials to emphasize sliding fee requirements more thoroughly. Provide testing to new hires after training to establish if training was eﬀective. a. Anticipated completion date: 10/31/...

1) Revisit our training materials provided to our Patient Access Representatives upon being hired and revise such materials to emphasize sliding fee requirements more thoroughly. Provide testing to new hires after training to establish if training was eﬀective. a. Anticipated completion date: 10/31/2024 for revisions, ongoing with new hire training 2) Establish front desk (Patient Access Coordinator) supervisor “recap” trainings establishing the requirements for sliding fee designations. During this training, allow for on-hands role-playing of scenarios conducted both at group and individual levels. a. Anticipated completion date: 10/31/2024 3) Establish routine spot audits. Our Patient Access Coordinator will do spot audits on a monthly routine, and more a formal process at the CFO level completed quarterly. a. Anticipated completion date: Ongoing

View Audit 324161

Finding 501982 (2023-004)

Material Weakness 2023

Danville Redevelopment & Housing Authority

VA

Questioned Costs HUD Housing Programs Material Weakness

Authority Response and Planned Corrective Action: The Authority accepts the recommendation of the auditor. The Authority will increase oversight in the Section 8 Housing Choice Vouchers and Mainstream Vouchers programs to ensure that established internal control policies related to HQS inspections ...

Authority Response and Planned Corrective Action: The Authority accepts the recommendation of the auditor. The Authority will increase oversight in the Section 8 Housing Choice Vouchers and Mainstream Vouchers programs to ensure that established internal control policies related to HQS inspections are being followed on a timely basis. Donald Paredez, Executive Director, is responsible for implementing this corrective action by December 31, 2024.

View Audit 324142 Questioned Costs: $1

Finding 501981 (2023-003)

Material Weakness 2023

Danville Redevelopment & Housing Authority

VA

Questioned Costs HUD Housing Programs Eligibility

Authority Response and Planned Corrective Action: The Authority agrees with the finding and will increase oversight related to the maintenance of tenant files to better monitor adequacy with compliance requirements. Donald Paredez, Executive Director, is responsible for implementing this corrective ...

Authority Response and Planned Corrective Action: The Authority agrees with the finding and will increase oversight related to the maintenance of tenant files to better monitor adequacy with compliance requirements. Donald Paredez, Executive Director, is responsible for implementing this corrective action by December 31, 2024.

View Audit 324142 Questioned Costs: $1

Finding 501980 (2023-002)

Significant Deficiency 2023

Danville Redevelopment & Housing Authority

VA

Questioned Costs Procurement, Suspension & Debarment HUD Housing Programs

Authority Response and Planned Corrective Action: Management agrees with the Auditors' finding and will implement the required updates and safeguards to ensure that the Authority complies with Section 19 of the ACC to remedy the aforementioned deficiencies. Donald Paredez, Executive Director, is res...

Authority Response and Planned Corrective Action: Management agrees with the Auditors' finding and will implement the required updates and safeguards to ensure that the Authority complies with Section 19 of the ACC to remedy the aforementioned deficiencies. Donald Paredez, Executive Director, is responsible for implementing this corrective action by December 31, 2024.

View Audit 324142 Questioned Costs: $1

Finding 501978 (2023-002)

None 2023

Lincoln County

MT

Questioned Costs Subrecipient Monitoring

FINDING 2023-002: Late Audit Submission Response: Lincoln County will enSure it will be done by the deadline for FY- 24.

View Audit 324140

Finding 501972 (2023-006)

Material Weakness 2023

Logan Health

MT

Internal Control / Segregation of Duties Questioned Costs Material Weakness

Federal Agency Name: Department of Health and Human Services Program Name: COVID-19 Provider Relief Fund and American Rescue Plan Rural Distribution Federal Assistance Listing #93.498 Federal Agency Name: Department of Health and Human Services All grant awards and pass-through entities Program Name...

Federal Agency Name: Department of Health and Human Services Program Name: COVID-19 Provider Relief Fund and American Rescue Plan Rural Distribution Federal Assistance Listing #93.498 Federal Agency Name: Department of Health and Human Services All grant awards and pass-through entities Program Name: Activities to Support State, Tribal, Local and Territorial (STLT) Health Department Response to Public Health or Healthcare Crisis Federal Assistance Listing #93.391 Finding Summary: During the course of our engagement, we noted a material program missing from the Schedule that was not identified by management. Responsible Individuals: Kevin Abel, CEO and Brigid Burke, CFO

View Audit 324123

Finding 501971 (2023-005)

Material Weakness 2023

Logan Health

MT

Internal Control / Segregation of Duties Questioned Costs Material Weakness

Federal Agency Name: Department of Health and Human Services Program Name: COVID-19 Provider Relief Fund and American Rescue Plan Rural Distribution Federal Assistance Listing #93.498 Federal Agency Name: Department of Health and Human Services All grant awards and pass-through entities Program Name...

Federal Agency Name: Department of Health and Human Services Program Name: COVID-19 Provider Relief Fund and American Rescue Plan Rural Distribution Federal Assistance Listing #93.498 Federal Agency Name: Department of Health and Human Services All grant awards and pass-through entities Program Name: Activities to Support State, Tribal, Local and Territorial (STLT) Health Department Response to Public Health or Healthcare Crisis Federal Assistance Listing #93.391 Finding Summary: During the course of our engagement, we noted a material program missing from the Schedule that was not identified by management. Responsible Individuals: Kevin Abel, CEO and Brigid Burke, CFO

View Audit 324123

Finding 501970 (2023-004)

Material Weakness 2023

Logan Health

MT

Questioned Costs Allowable Costs / Cost Principles Material Weakness § 200.303

Federal Agency Name: Department of Health and Human Services Program Name: COVID-19 Provider Relief Fund and American Rescue Plan Rural Distribution Federal Assistance Listing #93.498 Finding Summary: The operations of HealthCenter Northwest, LLC (HC) were consolidated into Kalispell Regional Medica...

Federal Agency Name: Department of Health and Human Services Program Name: COVID-19 Provider Relief Fund and American Rescue Plan Rural Distribution Federal Assistance Listing #93.498 Finding Summary: The operations of HealthCenter Northwest, LLC (HC) were consolidated into Kalispell Regional Medical Center d/b/a Logan Health Medical Center (LHMC) as of December 31, 2020. When LHMC calculated their lost revenues, they included HC’s revenue for both 2020 and 2021 instead of only the 2021 information. This resulted in LHMC reporting higher lost revenues than the detailed reports supported in Period 3. This was corrected in Period 4 reporting. Responsible Individuals: Kevin Abel, CEO and Brigid Burke, CFO Corrective Action Plan: The lost revenue calculation will be re-evaluated and the amount of lost revenue reported on the HHS reporting portal has been updated in Period 4. Completion Date: 12/31/23

View Audit 324123

Finding 501969 (2023-003)

Material Weakness 2023

Logan Health

MT

Questioned Costs Allowable Costs / Cost Principles Material Weakness § 200.303

Federal Agency Name: Department of Health and Human Services Program Name: COVID-19 Provider Relief Fund and American Rescue Plan Rural Distribution Federal Assistance Listing #93.498 Finding Summary: In some of the quarters for certain entities, it was noted that bad debt expenses were higher than ...

Federal Agency Name: Department of Health and Human Services Program Name: COVID-19 Provider Relief Fund and American Rescue Plan Rural Distribution Federal Assistance Listing #93.498 Finding Summary: In some of the quarters for certain entities, it was noted that bad debt expenses were higher than revenues, creating a negative revenue for the quarter. As the HHS reporting portal would not allow negative amounts to be entered, a zero was entered into the HHS reporting portal. These negative amounts should have been offset to other quarters or other revenue line items, but were not, which resulted in higher revenue amounts being reported than the detailed reports supported for two locations for Period 3. Responsible Individuals: Kevin Abel, CEO and Brigid Burke, CFO Corrective Action Plan: The lost revenue calculation for these two locations will be re-evaluated and the amount of lost revenue reported on the HHS reporting portal will be updated in future periods. Anticipated Completion Date: Ongoing

View Audit 324123

Finding 501952 (2023-006)

Material Weakness 2023

Delaware County Community College

PA

Reporting Questioned Costs Material Weakness

Federal Program COVID-19 Education Stabilization Fund (ALN 84.425 C, F, & M) Condition The College did not complete the required quarterly reports related to the HEERF funding. These quarterly reports are to be completed quarterly and be publicly available. Cause The College had significant turn...

Federal Program COVID-19 Education Stabilization Fund (ALN 84.425 C, F, & M) Condition The College did not complete the required quarterly reports related to the HEERF funding. These quarterly reports are to be completed quarterly and be publicly available. Cause The College had significant turnover within the accounting office. The current staff cannot locate any quarterly reports for the 1st and 2nd quarter of 2023 and there is no evidence of the reports posted publicly. Recommendation We recommend that the College review and reconcile reports to the underlying accounting records including the schedule of expenditures of federal awards to ensure that the reports completed and finalized to reflect the activity occurred during the reporting period and properly post the reports for public review. The College should assign responsibility for completion of the reports and oversight and accountability for management review. Management Response We agree with the auditor's comments. The College will review and reconcile reports to reflect the activity during the reporting period and post the reports for public view.

View Audit 324121

Finding 501950 (2023-004)

Material Weakness 2023

Delaware County Community College

PA

Cash Management Questioned Costs Material Weakness

ACCOUNTING FOR GRANTS - MATERIAL WEAKNESS Condition The grants accounts receivable account was not reconciled at year end to properly reflect grant activity. It was noted that grant funds drawn down from the G5 system in April, May, and June 2023 were not recorded in the general ledger. When the ...

ACCOUNTING FOR GRANTS - MATERIAL WEAKNESS Condition The grants accounts receivable account was not reconciled at year end to properly reflect grant activity. It was noted that grant funds drawn down from the G5 system in April, May, and June 2023 were not recorded in the general ledger. When the College made a journal entry to correct the missing deposits, a clearing account was used not the grants accounts receivable account where the entry should have been posted. Cause The College did not have a written year end closing process for grants or cash accounts. The lack of written procedures, the turnover within the grant accounting staff, and lack of proper oversight from management did not allow grants to be properly accounted for. Recommendation Proper accounting for grants is an integral function for the College. The timely and accurate reporting of expenses and the related cash receipts allows for proper grant management of available funds to be expended in the period of availability. The College should review the responsibilities of the staff within the accounting department to ensure that an individual is dedicated to maintaining accurate grant reconciliations and in contact with the various grant managers. The College also should ensure proper oversight is in place to oversee the grant reporting process. Management Response We agree with the auditor's comments. The College is reviewing standard operating procedures for all grant activity. Guidelines for ensuring proper accounting of grant funding, drawdowns, reconciliation, and entry into the general ledger are being reviewed. Procedures and training will be implemented by the end of the FY 2025.

View Audit 324121

Finding 501945 (2023-007)

Significant Deficiency 2023

Delaware County Community College

PA

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

Federal Program COVID-19 Education Stabilization Fund (ALN 84.425 C, F, & M) and Student Financial Assistance Cluster (ALN 84.033, 84.063, and 84.268) Condition The College did not locate evidence that the lost revenue calculation was performed before drawdown was completed in the G5 system. Evide...

Federal Program COVID-19 Education Stabilization Fund (ALN 84.425 C, F, & M) and Student Financial Assistance Cluster (ALN 84.033, 84.063, and 84.268) Condition The College did not locate evidence that the lost revenue calculation was performed before drawdown was completed in the G5 system. Evidence of approval to drawdown funds form the G5 system was also not located by management. Cause Turnover within the accounting office and lack of proper oversight from management led to the lack of evidence to support the timing of drawdowns reported to be located and provided to the auditor. Recommendation The College should revisit its internal control procedures to ensure that direct and material compliance requirement are being followed and controls are implemented to ensure the processes are followed and assign accountability for completion. The procedures should be documented to allow new employees an understanding of the grant requirements and how they are fulfilled. Management Response We agree with the auditor's comments. The College is actively recruiting to fill critical vacancies. Procedures for documenting approvals and drawdowns in the G5 system are currently being reviewed. Documentation of procedures for drawdowns and monthly cash reconciliation will be implemented by the end of FY 2025.

View Audit 324121

Corrective Action Plans

Filters