Corrective Action Plans

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Audit Finding Description: Documentation for exempt employees' hours was unavailable or incomplete. Corrective Action Plan: 1. Problem Statement: • During testing over payroll, the auditors noted exempt employee salary expense that was not supported with accurate time records. • Root cause: Manageme...
Audit Finding Description: Documentation for exempt employees' hours was unavailable or incomplete. Corrective Action Plan: 1. Problem Statement: • During testing over payroll, the auditors noted exempt employee salary expense that was not supported with accurate time records. • Root cause: Management lacks policy over tracking time on the timesheet for the exempt employees. Since exempt employees are compensated monthly, it is not required for the exempt employees to record time in their timesheet. 2. Corrective Actions: • Review and Assessment: We have conducted a thorough review of the finding to understand its root cause and identify areas for improvement. • Policy and Procedure Enhancements: We will update relevant policies or procedures to strengthen systems and prevent recurrence. • Training and Education: Employees involved in the process will undergo additional training to ensure they fully understand compliance requirements and best practices. • Monitoring and Oversight: Management will implement regular monitoring and periodic internal audits to ensure continued compliance and effectiveness of the corrective actions. Name of responsible person: Andrea L. Jones, Chief Financial Officer Anticipated completion date: June 30, 2026
View Audit 354388 Questioned Costs: $1
Audit Finding Description: Documentation for exempt employees' hours was unavailable or incomplete. Corrective Action Plan: 1. Problem Statement: • During testing over payroll, the auditors noted exempt employee salary expense that was not supported with accurate time records. • Root cause: Manageme...
Audit Finding Description: Documentation for exempt employees' hours was unavailable or incomplete. Corrective Action Plan: 1. Problem Statement: • During testing over payroll, the auditors noted exempt employee salary expense that was not supported with accurate time records. • Root cause: Management lacks policy over tracking time on the timesheet for the exempt employees. Since exempt employees are compensated monthly, it is not required for the exempt employees to record time in their timesheet. 2. Corrective Actions: • Review and Assessment: We have conducted a thorough review of the finding to understand its root cause and identify areas for improvement. • Policy and Procedure Enhancements: We will update relevant policies or procedures to strengthen systems and prevent recurrence. • Training and Education: Employees involved in the process will undergo additional training to ensure they fully understand compliance requirements and best practices. • Monitoring and Oversight: Management will implement regular monitoring and periodic internal audits to ensure continued compliance and effectiveness of the corrective actions. Name of responsible person: Andrea L. Jones, Chief Financial Officer Anticipated completion date: June 30, 2026
View Audit 354388 Questioned Costs: $1
Corrective Action: The Food Distribution Program will take steps to submit programmatic reports in a timely manner. The accountant responsible for the grant, along with the Procurement, Grants, and Contracts program, will monitor deadlines and follow up with the program as necessary. Additionally, t...
Corrective Action: The Food Distribution Program will take steps to submit programmatic reports in a timely manner. The accountant responsible for the grant, along with the Procurement, Grants, and Contracts program, will monitor deadlines and follow up with the program as necessary. Additionally, the Grants program has recently implemented new Grants Management software, Instrumental, which will assist in tracking grant deadlines. Person(s) Responsible: Food Distribution Director Estimated Completion Date: July 31, 2025
Significant Deficiency in Internal Control over Compliance, Other Matters Description of Finding The Town does not have policies and procedures in place to ensure that they do not contract with or make subawards to parties that are suspended or debarred. Statement of Concurrence or Nonconcurrence ...
Significant Deficiency in Internal Control over Compliance, Other Matters Description of Finding The Town does not have policies and procedures in place to ensure that they do not contract with or make subawards to parties that are suspended or debarred. Statement of Concurrence or Nonconcurrence Management concurs with the finding. Corrective Action The Town will review the district’s suspension and debarment policy and make sure that it is following the criteria as set out in the 2 CFR sections 200.213. The policy will then be updated and communicated to all personnel involved in the procurement process. Name of Contact Person Robert J. Civetti, CPA, Finance Director Projected Completion Date June 30, 2025
Management has reviewed procurement policies with all staff that have purchasing responsibilities. Finance staff understand and have had training on how to properly code and enter procurements in our finance software so that only those that are to be grant funded are marked as such. MTA worked with ...
Management has reviewed procurement policies with all staff that have purchasing responsibilities. Finance staff understand and have had training on how to properly code and enter procurements in our finance software so that only those that are to be grant funded are marked as such. MTA worked with WSDOT staff to find a solution for repaying the incorrectly applied grant funds.
View Audit 353982 Questioned Costs: $1
Finding 2022-002, Noncompliance with Uniform Guidance's Report 2021-002 Submission Requirements - Repeat Finding Federal Agency: U.S. Department of Commerce Program Name: MBDA Business Center Assistance Listing #: 11.805 Questioned Costs: None Corrective...
Finding 2022-002, Noncompliance with Uniform Guidance's Report 2021-002 Submission Requirements - Repeat Finding Federal Agency: U.S. Department of Commerce Program Name: MBDA Business Center Assistance Listing #: 11.805 Questioned Costs: None Corrective Action: We agree with the auditor's comments and actions stated in the recommendation. Management will complete the financial close and reporting process three months after the end of the fiscal year. Contact Person: Jose Robles Michelena, Executive Vice President Completion Date: June 30, 2024
1. Enhance Document Retention Procedures: *We will update our document retention policy to clearly define retention periods for payroll-related records, ensuring compliance with legal and regulatory requirements. This will include retaining all necessary documentation such as payroll reports, tax fi...
1. Enhance Document Retention Procedures: *We will update our document retention policy to clearly define retention periods for payroll-related records, ensuring compliance with legal and regulatory requirements. This will include retaining all necessary documentation such as payroll reports, tax filings, and third-party payroll contracts. *A secure, organized system will be implemented for storing payroll-related documents, whether physical or digital. This will include utilizing secure cloud storage or an enterprise document management system with restricted access controls. *We will conduct a quarterly review to ensure that documents are being retained for the appropriate time frame and securely disposed of when no longer required. 2. Implement Stronger Controls During Payroll Provider Transitions: *We will formalize and document the process for changing third-party payroll providers. This process will include detailed steps for due diligence, transition planning, data transfer procedures, and ensuring continuous payroll processing during the transition period. *A project team will be assigned for every payroll provider change to ensure proper planning, including backup and contingency plans, data verification, and communication with both internal and external stakeholders. *A comprehensive review of the transition will be conducted after each change, including a reconciliation of payroll records to ensure that all data is accurately transferred, and all systems are functioning properly. 3. Vendor Oversight and Service Level Agreements (SLAs): *We will ensure that future contracts with third-party payroll providers include clear Service Level Agreements (SLAs) outlining the provider's responsibilities in terms of document retention, data security, and transition procedures. This will ensure that providers maintain the necessary standards and practices for managing payroll-related documents.
View Audit 353875 Questioned Costs: $1
Finding 2022-007 – Allowable Cost Documentation In response to the finding, GEM addressed allowable cost documentation by instituting the following: GEM established a formal credit card policy in the employee handbook that explains the policy and procedures for turning in receipts monthly. Anticipat...
Finding 2022-007 – Allowable Cost Documentation In response to the finding, GEM addressed allowable cost documentation by instituting the following: GEM established a formal credit card policy in the employee handbook that explains the policy and procedures for turning in receipts monthly. Anticipated date of completion: This policy has been in effect since September 30, 2023. Responsible party: Jamie Hicks, Senior Accounting Manager
View Audit 353761 Questioned Costs: $1
Finding 2022-005 – Indirect Cost Allocations In response to the finding, GEM will improve program costs allocation documentation by instituting the following controls and procedures. GEM will allocate indirect costs and charges to the NSF program based on incurred costs and monthly allocations appro...
Finding 2022-005 – Indirect Cost Allocations In response to the finding, GEM will improve program costs allocation documentation by instituting the following controls and procedures. GEM will allocate indirect costs and charges to the NSF program based on incurred costs and monthly allocations approved by the program administrator. These indirect costs will be separately reported in the accounting records. Anticipated date of completion: Monthly journal entry is set up with calculations for determining the dollar amount. The date of completion was October 2022 and have been updated since then. Responsible party: Jamie D. Hicks, Senior Accounting Manager
View Audit 353761 Questioned Costs: $1
Finding 2022-004 – Allocation of Program Effort by Employees In response to the finding, GEM will institute controls and processes to document and allocate personnel time and effort to NSF program GEM will allocate time and effort via approved time and expense personnel reports and reconcile these t...
Finding 2022-004 – Allocation of Program Effort by Employees In response to the finding, GEM will institute controls and processes to document and allocate personnel time and effort to NSF program GEM will allocate time and effort via approved time and expense personnel reports and reconcile these the accounting records and NSF program charges. Anticipated date of completion: Process was implemented on December 31, 2022. Responsible party: Jamie Hicks, Senior Accounting Manager
View Audit 353761 Questioned Costs: $1
Recommendation: We recommend that VSS reviews the current financial policies and procedures in order to better serve the organization in documenting compliance with federal and grantor requirements regarding the program requirements. Explanation of disagreement with audit finding: There is no disagr...
Recommendation: We recommend that VSS reviews the current financial policies and procedures in order to better serve the organization in documenting compliance with federal and grantor requirements regarding the program requirements. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: VSS agrees with CLA and has updated our financial policies. We have hired an accountant, in addition to our Finance Director and Finance Coordinator to create a system of posting and review. Fair Market Rents will be reviewed along with the HQS worksheet and Income Limits during annual recertification for active participants in the HUD program. Name(s) of the contact person(s) responsible for corrective action: Jessica Franco, Director of Finance Planned completion date for corrective action plan: XXX
View Audit 353736 Questioned Costs: $1
Recommendation: We recommend that VSS reviews the current financial policies and procedures in order to better serve the organization in documenting compliance with federal cost principals and requirements. Explanation of disagreement with audit finding: There is no disagreement with the audit findi...
Recommendation: We recommend that VSS reviews the current financial policies and procedures in order to better serve the organization in documenting compliance with federal cost principals and requirements. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: VSS agrees with CLA in creating internal controls over reviewing year end entries. We have hired an accountant, in addition to our Finance Director and Finance Coordinator to create a system of posting and review. Name(s) of the contact person(s) responsible for corrective action: Jessica Franco, Director of Finance Planned completion date for corrective action plan: 10/1/2022
View Audit 353736 Questioned Costs: $1
Recommendation: We recommend that VSS reviews the current financial policies and procedures in order to better serve the organization in documenting compliance with federal cost principals. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken ...
Recommendation: We recommend that VSS reviews the current financial policies and procedures in order to better serve the organization in documenting compliance with federal cost principals. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: VSS agrees with CLA and has updated our financial policies to include electronic approval of expenditures through Bill.com. Timesheets and supplements will be reviewed and approved by staff supervisors biweekly to ensure proper allocation of hours worked. Credit Card Expense reports will require Description of item purchased, as well as the funder and class allocation. Name(s) of the contact person(s) responsible for corrective action: Jessica Franco, Director of Finance Planned completion date for corrective action plan: 3/1/2023
View Audit 353736 Questioned Costs: $1
2022-005 Segregation of Duties Finding: In order to provide assurance that unauthorized or fraudulent journal entries are not posted within the Corporation’s financial system, journal entries should be subjected to review and approval by an individual independent of the preparer of the journal entr...
2022-005 Segregation of Duties Finding: In order to provide assurance that unauthorized or fraudulent journal entries are not posted within the Corporation’s financial system, journal entries should be subjected to review and approval by an individual independent of the preparer of the journal entry prior to posting. The Corporation’s system allowed the same individual to approve and post the same entry, and entries were posted with only one level of review. Corrective Actions Taken or Planned: A process has been established effective July 2022 where journal entries are reviewed by an individual with appropriate authority, different than the preparer of the journal entry. Jamie Mack, Vice President of Finance, will approve the journal entries of Caralton Brown, Assistant Controller, and Caralton Brown will review and approve the entries prepared by Jamie Mack and Michael Caddick, outside contractor. Name of contact person responsible for corrective action: Jamie Mack, Vice President of Finance
Align Reimbursement Requests with the General Ledger Ensure that all reimbursement requests are directly tied to actual expenditures recorded in the general ledger, minimizing reliance on manual tracking. 1. 2022-005: We will ensure that all reimbursement requests are accurately aligned with t...
Align Reimbursement Requests with the General Ledger Ensure that all reimbursement requests are directly tied to actual expenditures recorded in the general ledger, minimizing reliance on manual tracking. 1. 2022-005: We will ensure that all reimbursement requests are accurately aligned with the general ledger by basing them solely on actual, recorded expenditures. This will reduce reliance on manual tracking methods and promote transparency, accuracy, and compliance in grant reporting. Implement a Systematic Reconciliation Process Establish a structured reconciliation process that links each reimbursement request to paid expenses, with supporting documentation readily available for review. 2. A formal reconciliation process will be implemented to connect each reimbursement request to the corresponding paid expenses. Supporting documentation will be organized and readily accessible for internal review and external audits, ensuring a complete and accurate audit trail. Strengthen Real-Time Grant Cash Flow Tracking Utilize existing accounting software to have a real-time tracking system for grant-related cash flow to ensure compliance with reimbursement-based grant requirements. 3. We will utilize our existing accounting software to enable real-time tracking of grant-related cash inflows and outflows. This will improve our ability to monitor available funds, ensure timely reimbursement submissions, and remain compliant with reimbursement-based grant requirements. Assign a Grant Compliance Lead Designate a finance or administrative team member to oversee cash management compliance, ensuring consistency and acting as the primary point of contact for grant related financial matters. 4. A dedicated member of the finance or administrative team will be assigned as the Grant Compliance Lead. This individual will oversee all aspects of grant cash management compliance, maintain documentation standards, and serve as the primary point of contact for grant-related financial matters. Conduct Monthly Reconciliation Meetings Facilitate monthly reconciliation meetings between finance and program teams to align financial records with program expenditures and address any discrepancies proactively. 5. Monthly reconciliation meetings will be held between the finance and program teams to review financial records, align them with program expenditures, and proactively address any discrepancies. This collaboration will support accurate reporting and effective grant management.
View Audit 353523 Questioned Costs: $1
Temporary Assistance for Needy Families (TANF), CFDA #93.558, Grant Period 1/1/22-12/31/22. There were multiple instances where eligibility files selected for review were either incomplete, or unable to be presented for audit review. Recommendation: As per Federal OMB Uniform Guidance Circular Compl...
Temporary Assistance for Needy Families (TANF), CFDA #93.558, Grant Period 1/1/22-12/31/22. There were multiple instances where eligibility files selected for review were either incomplete, or unable to be presented for audit review. Recommendation: As per Federal OMB Uniform Guidance Circular Compliance Supplement, each individual who receives benefits under the TANF Program, should have a completed eligibility determination on file which is available for audit review. Corrective Action: PCBSS have created a DIMS unit, where files are scanned and stored in DIMS. Implementation Date: Commenced 2022 and ongoing.
Medical Assistance Program (Medicaid, Title IXI), CFDA #93.778, Grant Period 1/1/22-12/31/22. There were multiple instances where eligibility files selected for review were either incomplete, or unable to be presented for audit review. Recommendation: As per Federal OMB Uniform Guidance Circular Com...
Medical Assistance Program (Medicaid, Title IXI), CFDA #93.778, Grant Period 1/1/22-12/31/22. There were multiple instances where eligibility files selected for review were either incomplete, or unable to be presented for audit review. Recommendation: As per Federal OMB Uniform Guidance Circular Compliance Supplement, each individual who receives benefits under the Medicaid Program, should have a completed eligibility determination on file which is available for audit review. Corrective Action: PCBSS have created a DIMS unit, where files are scanned and stored in DIMS. Implementation Date: Commenced 2022 and ongoing.
Recommendation: Strengthen controls over compliance, reporting, and cost allocation. Action Plan: - Immediate Actions (Q2 2024): - Review and document grant compliance requirements. - Implement a structured approval process for financial reports. - Long-Term Actions: - Conduct quarterly compliance t...
Recommendation: Strengthen controls over compliance, reporting, and cost allocation. Action Plan: - Immediate Actions (Q2 2024): - Review and document grant compliance requirements. - Implement a structured approval process for financial reports. - Long-Term Actions: - Conduct quarterly compliance training for grant managers (Q3 2024). - Engage an external consultant for a mid-year compliance review (Q4 2024). Responsible: John Opalinski Completion Date: Within 3 months of CAP issuance.
View Audit 353270 Questioned Costs: $1
2022-003 –REPORTING Auditee’s Response and Planned Corrective Action The Authority is now under the management of the Quincy Housing Authority and all controls and processes have been updated to account for the needs of the Holbrook Housing Authority, including internal controls over financial repo...
2022-003 –REPORTING Auditee’s Response and Planned Corrective Action The Authority is now under the management of the Quincy Housing Authority and all controls and processes have been updated to account for the needs of the Holbrook Housing Authority, including internal controls over financial reporting, documentation retention, and timeliness of reporting. Planned Implementation Date of Corrective Action: June 30, 2024 Person Responsible for Corrective Action: James Marathas, Executive Director
2022-002 – Internal Control Over Compliance Auditee’s Response and Planned Corrective Action The Authority is now under the management of the Quincy Housing Authority and all controls and processes have been updated to account for the needs of the Holbrook Housing Authority, including internal cont...
2022-002 – Internal Control Over Compliance Auditee’s Response and Planned Corrective Action The Authority is now under the management of the Quincy Housing Authority and all controls and processes have been updated to account for the needs of the Holbrook Housing Authority, including internal controls over financial reporting, documentation retention, and timeliness of reporting. Planned Implementation Date of Corrective Action: June 30, 2024 Person Responsible for Corrective Action: James Marathas, Executive Director
View Audit 353118 Questioned Costs: $1
Views of Responsible Officials and Planned Corrective Action: East End’s accountant added another accounting procedure for the agency and started to upload copies of expense receipts to the Microsoft One Drive Cloud for files in September 2022. It was found that East End was not filing the expense r...
Views of Responsible Officials and Planned Corrective Action: East End’s accountant added another accounting procedure for the agency and started to upload copies of expense receipts to the Microsoft One Drive Cloud for files in September 2022. It was found that East End was not filing the expense receipts, invoices and reports. All East End’s receipts, etc. that the accountant received are now uploaded and saved to the Microsoft One Drive Cloud to keep East End in compliance with the Federal government and other grantors for audit purposes. Anticipated Date of Completion: Ongoing analysis; expected to be completed by September 1, 2025.
View Audit 353100 Questioned Costs: $1
Corrective action: Management understands the due date for single audit reporting package submission to the Federal Audit Clearinghouse and filed the 2021 single audit reporting package in 2025.
Corrective action: Management understands the due date for single audit reporting package submission to the Federal Audit Clearinghouse and filed the 2021 single audit reporting package in 2025.
Management agrees with the finding and is implementing the accompanying corrective action plan. Views of Responsible Officials: Jacy Hyde, Executive Director Joel Rusco, Chief Financial and Administrative Officer Jessica Martinez, Deputy Director Contact Person: Jessica Martinez, Deputy Director Jo...
Management agrees with the finding and is implementing the accompanying corrective action plan. Views of Responsible Officials: Jacy Hyde, Executive Director Joel Rusco, Chief Financial and Administrative Officer Jessica Martinez, Deputy Director Contact Person: Jessica Martinez, Deputy Director Joel Rusco, Chief Financial and Administrative Officer Corrective Action Plan: In response to FY21 Corrective Action Plan, CFSC implemented an updated Reporting Policy in June 2024 to strengthen internal controls prior to review and submission of invoices and drawdown/payment requests to funders. To ensure further compliance with 2 CFR 200.414(c), 2 CFR 200.403(d), and 2 CFR 200.302(b)(3), CFSC will implement the following corrective actions: 1.Verification of Indirect Cost Rate Before Submission: a.CFSC will require that all invoices, including indirect costs, be reviewed by the CFAO to confirm that the rate used is in accordance with an approved provisional or final NICRA agreement. b.Any invoice for federal funding lacking an approved indirect cost rate will be flagged and returned for correction before submission. 2.Pre-Submission Approval Process for Invoicing Indirect Costs: a.All invoice requests containing indirect costs must be reviewed and approved by the CFAO prior to submission. b.The Finance Department will verify and document that the rate applied is consistent across all federal awards and matches the NICRA. 3.Indirect Cost Rate Agreement Tracking & Documentation: a.CFSC Finance will establish an Indirect Cost Rate Agreement tracker to ensure that: i.All provisional and final indirect cost rate agreements are maintained on file. ii.Indirect cost rates used on invoices are consistently aligned with approved agreements. 4.Quarterly Internal Audits of Indirect Cost Rate Compliance: CFSC Finance Department will conduct quarterly reviews of a sample of drawdown/payment request invoices to confirm: a.The correct indirect cost rate was applied b.The rate was consistently applied across all federal awards Anticipated Completion Date: These corrective actions will be fully implemented by the end of Quarter 2 of FY25
View Audit 352633 Questioned Costs: $1
Management agrees with the finding and is implementing the accompanying corrective action plan. Views of Responsible Officials: Jacy Hyde, Executive Director Joel Rusco, Chief Financial and Administrative Officer Jessica Martinez, Deputy Director Contact Person: Joel Rusco, Chief Financial and Admi...
Management agrees with the finding and is implementing the accompanying corrective action plan. Views of Responsible Officials: Jacy Hyde, Executive Director Joel Rusco, Chief Financial and Administrative Officer Jessica Martinez, Deputy Director Contact Person: Joel Rusco, Chief Financial and Administrative Officer Jessica Martinez, Deputy Director Corrective Action Plan: The corrective actions for this finding are identical to those outlined in finding 2022-004. Please refer to the correction action plan for finding 2022-004, which includes specific measures to address this finding. Anticipated Completion Date: These corrective actions will be fully implemented by the end of Quarter 2 of FY25.
View Audit 352633 Questioned Costs: $1
Management agrees with the finding and is implementing the accompanying corrective action plan. Views of Responsible Officials: Jacy Hyde, Executive Director Joel Rusco, Chief Financial and Administrative Officer Jessica Martinez, Deputy Director Contact Person: Joel Rusco, Chief Financial and Admi...
Management agrees with the finding and is implementing the accompanying corrective action plan. Views of Responsible Officials: Jacy Hyde, Executive Director Joel Rusco, Chief Financial and Administrative Officer Jessica Martinez, Deputy Director Contact Person: Joel Rusco, Chief Financial and Administrative Officer Jessica Martinez, Deputy Director Corrective Action Plan: To mitigate the risk of error in payroll allocation and ensure compliance with allowable cost provisions, CFSC will enhance its payroll review process with the following corrective actions: 1. Enhanced Payroll Verification Process: a. CFSC will implement an additional cross-checking step in the payroll entry process by requiring finance staff to a run a “Program Summary by Projects Lists” report in the timekeeping system (i.e., Clicktime) before submitting for payroll. b. This report will allow finance staff to verify that total hours worked per project per employee align with the grant allocation and employee timesheets before payroll is processed. 2. Regular Internal Audits & Compliance Checks: a. Finance will conduct quarterly internal payroll audits to identify any discrepancies in time tracking and grant allocations. Anticipated Completion Date: These corrective actions will be fully implemented by the end of Quarter 2 of FY25.
View Audit 352633 Questioned Costs: $1
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