Corrective Action Plans

Finding 558078 (2024-002)

Material Weakness 2024

HI

Reporting

2024-002- Inaccurate Schedule of Expenditures of Federal Awards (SEFA), Health Resources and Services Administration Native Hawaiian Health Care 93.932 Due to the significant increase in funding during the Lahaina wildfires, it was extremely difficult to recognize if funding were disbursed from a ...

2024-002- Inaccurate Schedule of Expenditures of Federal Awards (SEFA), Health Resources and Services Administration Native Hawaiian Health Care 93.932 Due to the significant increase in funding during the Lahaina wildfires, it was extremely difficult to recognize if funding were disbursed from a federal source. As of January 2025, the Executive Director inquires with the funding source if the award is a result of federal funds.

View Audit 354936

Finding 558075 (2024-001)

Material Weakness 2024

Hui No Ke Ola Pono, Inc.

HI

Internal Control / Segregation of Duties Procurement, Suspension & Debarment Subrecipient Monitoring

2024-001-Internal Control over Financial, United States Department of Health and Human Services Administration, Native Hawaiian Health Care 93.932 Significant adjusting journal entries Due to the high turnover of fiscal staff in previous years, the Organization fell behind in our audits. Therefor...

2024-001-Internal Control over Financial, United States Department of Health and Human Services Administration, Native Hawaiian Health Care 93.932 Significant adjusting journal entries Due to the high turnover of fiscal staff in previous years, the Organization fell behind in our audits. Therefore, many adjusting entries were required to reconcile accounts, while upkeeping the current financial state of the Organization during fiscal year’s 2024 and 2025, accordingly. In addition to the high turnover, during fiscal year 2024, Maui experienced devastation with the Lahaina wildfires, which led to an increase of funding from donors to support the communities’ needs to recover. Again, our staff were challenged to meet the demands of the requirements of the funding and continue to monitor the previous fiscal year and the current fiscal years financial state. Internal control over disbursements We have made significant improvements from prior years in internal control processes, with regards to disbursements. With the turnover of staff, there was no communication of fiscal internal controls. Since the turnover, we have hired new staff and implemented processes and reviewed the internal controls policies with the new staff to address these issues. We expect these issues to be resolved in fiscal year ending 2025, as these findings have been carryover issues from previous years. Review of cancelled check images During fiscal year 2022, the bank statements no longer included copies of cancelled checks. Due to this change, the cancelled check images are available online. As of January 2025, the Executive Director reviews cancelled check images online monthly. She also reviews the bank statements for awareness of the transactions and balances of accounts monthly.

View Audit 354936

Finding 558066 (2024-001)

Significant Deficiency 2024

Smithsonian Institution

DC

Internal Control / Segregation of Duties Reporting Matching / Level of Effort / Earmarking § 200.303

The Smithsonian agrees with the finding. The Smithsonian would like to add that the reports were delivered to the sponsor and that the sponsor was satisfied with them. Furthermore, the sponsor has provided written acknowledgment that they were “verbally kept up to date” by the National Postal Museum...

The Smithsonian agrees with the finding. The Smithsonian would like to add that the reports were delivered to the sponsor and that the sponsor was satisfied with them. Furthermore, the sponsor has provided written acknowledgment that they were “verbally kept up to date” by the National Postal Museum (NPM) regarding this potential delay. Moving forward, NPM will strengthen senior management oversight of report delivery, review due dates more rigorously, and enhance internal controls to ensure timely submission. Any potential delays will be confirmed in writing to the sponsor ahead of the due date, and compliance updates will be provided by NPM senior management to the sponsor on a regular basis. Additionally, NPM will establish procedures to cross train staff to perform required responsibilities applicable to the NPM Project.

View Audit 354905

Finding 558043 (2024-029)

Significant Deficiency 2024

State of Georgia/state Accounting Office-Ein Noted

GA

Questioned Costs Allowable Costs / Cost Principles Period of Performance § 200.303 § 200.403 § 200.77

Federal Fund Source liquidation is monitored monthly via the Fund Source Reconciliation Report and the Provider Utilization Report. Requests to close purchase orders associated with expiring federal fund sources are submitted to OPC accordingly. The Federal Financial Reporting Group will now have th...

Federal Fund Source liquidation is monitored monthly via the Fund Source Reconciliation Report and the Provider Utilization Report. Requests to close purchase orders associated with expiring federal fund sources are submitted to OPC accordingly. The Federal Financial Reporting Group will now have the right to close purchase orders with federal fund sources to expedite this process. Also, the Provider Utilization Report has been updated with Key Performance Indicators (KPIs), Contract End Date Exceeds Period of Performance and Payments Exceed Period of Performance, that specifically address the period of performance as of December 2024.

View Audit 354902 Questioned Costs: $1

Finding 558041 (2024-030)

Material Weakness 2024

State of Georgia/state Accounting Office-Ein Noted

GA

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

Formal internal control processes have been established for the Federal Funding Accountability and Transparency Act (FFATA) reporting, FFATA Preparation and Submission, 17-102. Additionally, FFATA review and approval has been delineated appropriately between the Director of Finance, Grants Manager, ...

Formal internal control processes have been established for the Federal Funding Accountability and Transparency Act (FFATA) reporting, FFATA Preparation and Submission, 17-102. Additionally, FFATA review and approval has been delineated appropriately between the Director of Finance, Grants Manager, and Federal Funds Accountant.

View Audit 354902

Finding 557716 (2024-026)

Significant Deficiency 2024

State of Georgia/state Accounting Office-Ein Noted

GA

Internal Control / Segregation of Duties Subrecipient Monitoring Allowable Costs / Cost Principles § 200.303

At the end of the Low Income Home Energy Assistance Program (LIHEAP) season, the State Program Office and other applicable areas such as Grant Administration, Office of Information Technology, etc. (Team) will attend the annual training completed by the Office of Community Services (OCS). The OCS Ho...

At the end of the Low Income Home Energy Assistance Program (LIHEAP) season, the State Program Office and other applicable areas such as Grant Administration, Office of Information Technology, etc. (Team) will attend the annual training completed by the Office of Community Services (OCS). The OCS Household Report training is typically scheduled in November of each year. After the training session, the team will discuss any changes to the new Household Report. The State Program Office will contact the Georgia Environmental Finance Authority (GEFA) to request information about their annual household report. The Household Report will be printed from the Online Data Collection (OLDC) system for review, discussion, and completion by the team, usually around the middle of December to finalize the draft report. Upon completion of the review and approval by the necessary areas, the State Program Office will submit the Household Report to OLDC for approval and acceptance.

View Audit 354902

Finding 557416 (2024-025)

Material Weakness 2024

State of Georgia/state Accounting Office-Ein Noted

GA

Subrecipient Monitoring Allowable Costs / Cost Principles Internal Control / Segregation of Duties § 200.303

The Office of Procurement Services (OPS) has dedicated staff that have attended Federal Funding Accountability and Transparency Act (FFATA) training and webinars. In addition, the same dedicated staff will verify that all federal grants with sub-recipients are properly reported. Beginning in FY 202...

The Office of Procurement Services (OPS) has dedicated staff that have attended Federal Funding Accountability and Transparency Act (FFATA) training and webinars. In addition, the same dedicated staff will verify that all federal grants with sub-recipients are properly reported. Beginning in FY 2025 (September 2024), the OPS has required programs that receive federal funding to email a PDF copy of the monthly FFATA report submitted in the FFATA Subaward Reporting System (FSRS) to the designated staff no later than the fifth of each month. Currently, the FY25 FFATA Reporting is up to date and the Office of Procurement Services will continue to review and adjust the process through FY 2025 (June 30, 2025).

View Audit 354902

Finding 557389 (2024-017)

Significant Deficiency 2024

State of Georgia/state Accounting Office-Ein Noted

GA

Student Financial Aid Special Tests & Provisions Allowable Costs / Cost Principles § 200.303

On July 29, 2024, Georgia State University (GSU) was made aware of a National Student Loan Data System (NSLDS) reporting defect in our student information system related to program level reporting. A system correction was installed on November 25, 2024. GSU will enhance monitoring procedures to ensu...

On July 29, 2024, Georgia State University (GSU) was made aware of a National Student Loan Data System (NSLDS) reporting defect in our student information system related to program level reporting. A system correction was installed on November 25, 2024. GSU will enhance monitoring procedures to ensure discrepancies in reporting to the NSLDS are identified and corrected in a timely manner.

View Audit 354902

Finding 557376 (2024-016)

Significant Deficiency 2024

State of Georgia/state Accounting Office-Ein Noted

GA

Student Financial Aid Subrecipient Monitoring Allowable Costs / Cost Principles § 200.303

Georgia State University (GSU) will ensure all team members are appropriately trained related to the return to title IV process. Procedures have been enhanced to ensure that unearned funds required to be returned to the program due to return to title IV calculations are immediately reconciled and re...

Georgia State University (GSU) will ensure all team members are appropriately trained related to the return to title IV process. Procedures have been enhanced to ensure that unearned funds required to be returned to the program due to return to title IV calculations are immediately reconciled and returned during the required window. GSU has established an Assistant Director over Electronic Processing to carry out these procedures.

View Audit 354902

Finding 556721 (2024-035)

Material Weakness 2024

State of Georgia/state Accounting Office-Ein Noted

GA

Reporting Special Tests & Provisions Subrecipient Monitoring § 200.303

GDOL Response: GDOL acknowledges this is a repeated finding from previous years, therefore the Department concurs with this finding and offers the following response. GDOL now freezes the overpayment data at the end of every month so we can conduct periodic reconciliation of the overpayment recor...

GDOL Response: GDOL acknowledges this is a repeated finding from previous years, therefore the Department concurs with this finding and offers the following response. GDOL now freezes the overpayment data at the end of every month so we can conduct periodic reconciliation of the overpayment records. This will allow discrepancies to be identified faster and resolved before the deadline to submit the report for the specified period. GDOL consults with USDOL’s national 227 reporting specialists on an ongoing basis to work towards a reconciliation of previously submitted reports. Federal regulations require an actual person to review and establish fraudulent overpayments. Due to the volume of claims and the number of cross matches to be performed on all state and federal pandemic programs, it requires multiple GDOL staffing levels to manually review all cross matches, requiring increased levels of state and federal funding. A cross match cannot be assumed to be an overpayment. GDOL must investigate cross matches and provide due process to all parties. GDOL developed an aggressive plan to complete all crossmatches. As of June 2024, GDOL was caught up and resume our regular crossmatch schedule. The current unemployment system is aged and distressed. GDOL’s limited technology resources will hinder our ability to update our current system to perform reconciliation between the multiple tools used to perform different functions. Therefore, we acknowledge that this finding may persist until a system-wide resolution is implemented in the new modernized UI system. The Department has a significant number of pending and potential overpayment investigations that may result in either a non-fraud or fraud determination. We are utilizing merit and time-limited staff to maximize productivity by conducting fact-finding interviews, assessing case details, creating overpayments in the system, and making overpayment determinations. The statutes provide that an overpayment be established up to four years after such occurrence, act, or omission. Additionally, GDOL has procured a vendor to build and implement a modernized UI system slated to be launched in 2026. We will continue to utilize available resources to investigate and establish overpayments in the legacy system as quickly as possible and will continue to do so within the program parameters in the new system. Throughout CY 2024, GDOL participated in quarterly meetings with United States Department of Labor (USDOL) and other regional states to discuss fraud, overpayment issues and best practices used. These meetings will continue in CY2025. Summary: GDOL greatly appreciates the feedback and recommendations and will ensure these and USDOL’s recommendations are incorporated into our new modernized system which is expected to be implemented in the Spring 2026.

View Audit 354902

Finding 556720 (2024-034)

Significant Deficiency 2024

State of Georgia/state Accounting Office-Ein Noted

GA

Subrecipient Monitoring Allowable Costs / Cost Principles Reporting § 200.302 § 200.303

After the September 2023 quarter, controls were put in place to ensure accurate Federal quarterly reports. These controls included preparing the report based on our accounting records, e.g. the general ledger. Another control is that the Chief Financial Officer or her designee reviews all reports an...

After the September 2023 quarter, controls were put in place to ensure accurate Federal quarterly reports. These controls included preparing the report based on our accounting records, e.g. the general ledger. Another control is that the Chief Financial Officer or her designee reviews all reports and compares them to the general ledger prior to signature, approval and our submission to the grantor. Furthermore, periodic reviews by program fiscal staff during the performance period take place to closely monitor activity. GDOL will continue to follow the updated procedures and internal controls. As we transition to GA@Work, the system itself will control overspending and provide alerts.

View Audit 354902

Finding 556717 (2024-031)

Material Weakness 2024

State of Georgia/state Accounting Office-Ein Noted

GA

Reporting Subrecipient Monitoring Allowable Costs / Cost Principles § 200.303

Federal Financial Report (FFR) processes are updated as follows: • Federal Financial Report responsibilities are distributed on a per grant basis to the members of the Criminal Justice Coordinating Council (CJCC) Budget Team. • Because the US DOJ Just Grants system does not allow for review or secon...

Federal Financial Report (FFR) processes are updated as follows: • Federal Financial Report responsibilities are distributed on a per grant basis to the members of the Criminal Justice Coordinating Council (CJCC) Budget Team. • Because the US DOJ Just Grants system does not allow for review or secondary viewers in the financial reporting system, the FFRs are to be saved digitally by the completing analyst/director. • FFRs will be reviewed with written certification of review by a budget team member that was not responsible for the primary submission of the report for each grant. • Any corrections will be made within the period of correction for the report to prevent a misstated report from becoming permanent record. Performance Measures Tool (PMT) processes are updated as follows: • Implemented a PMT data review and approval process that leverages Microsoft Planner to send messages to those involved and track the completion of review and approval by the manager. Prepared Federal Funding Accountability and Transparency Act (FFATA) reports processes are updated as follows: • FFATA Subrecipient Reporting is reviewed and approved by the Director of Grant Operations and submitted by the Grant Operations/Compliance Unit Staff to FSRS based upon the established reporting calendar.

View Audit 354902

Finding 556248 (2024-014)

Material Weakness 2024

State of Georgia/state Accounting Office-Ein Noted

GA

Subrecipient Monitoring Allowable Costs / Cost Principles School Nutrition Programs § 200.303

We have prepared procedures for Federal Funding Accountability and Transparency Act (FFATA) reporting specifically for USDA. We shifted a current GaDOE accounting manager's job duties to include assisting the Assistant Director of Accounting with overall FFATA reporting duties. The addition of an ex...

We have prepared procedures for Federal Funding Accountability and Transparency Act (FFATA) reporting specifically for USDA. We shifted a current GaDOE accounting manager's job duties to include assisting the Assistant Director of Accounting with overall FFATA reporting duties. The addition of an experienced staff member to assist with FFATA data gathering, reconciling, and reporting will allow for the Assistant Director of Accounting to focus on completing the more complex FFATA Reporting for USDA in a timely manner.

View Audit 354902

Finding 556198 (2024-003)

Material Weakness 2024

Puerto Rico Industrial Development Company

PR

Reporting Material Weakness Matching / Level of Effort / Earmarking § 200.512

VIEWS OF RESPONSIBLE OFFICIALS AND PLANNED CORRECTIVE ACTION Management is responsible for designing and maintaining internal controls over financial reporting that is sufficient to provide reasonable assurance that management can prepare the financial statement and the Uniform Guidance Audit Report...

VIEWS OF RESPONSIBLE OFFICIALS AND PLANNED CORRECTIVE ACTION Management is responsible for designing and maintaining internal controls over financial reporting that is sufficient to provide reasonable assurance that management can prepare the financial statement and the Uniform Guidance Audit Report in conformity with US GAAP and federal regulations. Management will improve accounting and financial reporting policies and procedures to include the timely issuance of the financial statement and the uniform guidance report. IMPLEMENTATION DATE March 31, 2026 RESPONSIBLE PERSON Paola Rosario CPA, CFO

View Audit 354899

Finding 556176 (2024-001)

Significant Deficiency 2024

Pyramid Learning Corp.

PR

Subrecipient Monitoring Reporting Internal Control / Segregation of Duties § 200.302 § 200.327 § 200.328

Friday, April 11, 2025 Dear Sir(s): CORRECTIVE ACTION PLAN In prior years the accounting of Pyramid Learning Corp. was executed externally by a contracted accounting company. During the year ended June 30, 2024 we acquired a specialized accounting software. After the acquisition of the new software,...

Friday, April 11, 2025 Dear Sir(s): CORRECTIVE ACTION PLAN In prior years the accounting of Pyramid Learning Corp. was executed externally by a contracted accounting company. During the year ended June 30, 2024 we acquired a specialized accounting software. After the acquisition of the new software, we recorded the data from the beginning of the year to the present, which required significant staff effort and made it impossible to maintain accounting and financial reports on a month-to-month basis. At the present, the data is already being recorded, and the accounting is up to dates. This allows us to keep our accounting and interim financial reports such as Balance Sheet, Statement of Activities, Bank Reconciliations, and monthly analysis of accounts, up to date and on a current month-to-month basis to be more transparent, and any errors are corrected on a timely manner.

View Audit 354871

Finding 556175 (2024-001)

None 2024

Concord Hospital, Inc.

NH

Cash Management Reporting

Grant Overpayments - Criteria: Management was responsible for reviewing and reconciling monthly reimbursement requests from the contractor to the invoices submitted for reimbursement under the grant agreement in a timely manner. Condition: The State of New Hampshire Department of Health and Human...

Grant Overpayments - Criteria: Management was responsible for reviewing and reconciling monthly reimbursement requests from the contractor to the invoices submitted for reimbursement under the grant agreement in a timely manner. Condition: The State of New Hampshire Department of Health and Human Services appointed a contractor to administer, disburse and monitor Flexible Needs Funding (FNF) under this grant from December 20, 2023 through September 30, 2024, which changed how FNF reimbursement requests were processed. As part of this arrangement, the contractor compiled FNF information submitted via the System and submitted to the State for FNF reimbursement. It was determined that the System was reimbursed in error for duplicate invoices and formula errors within the reimbursement spreadsheets used by the contractor totaling $47,273. Of this overpayment, $45,925 was from a reimbursement received in December 2024 from the contractor’s final invoice covering July 2024 through September 2024 FNF reimbursements, which included duplicate invoices already reimbursed. Cause: With this change in process, the System did not implement appropriate procedures to review and reconcile reimbursements received from the State to the underlying FNF requests the contractor submitted via invoice for reimbursement under the grant agreement in a timely manner. This was primarily due to system reporting limitations of the new platform implemented by the contractor in July 2024, which limited the ability to effectively reconcile with FNF requests submitted. Effect: As a result, the System received overpayments from the grant totaling $47,273. Recommendation: Management should notify and refund the grantor for the funds received in duplication. Management should also implement controls to ensure this error does not reoccur. Responsible Party: Scott Sloane, Chief Financial Officer. Corrective Actions Taken or Planned: Management acknowledges the finding and has ensured controls are now implemented to prevent this error from recurring. The agreement with the contractor was not renewed. The System met with the State to review the new process for submission and reimbursement of FNF and reviewed with the State the controls that are now in place to prevent this error from recurring. The System refunded the overpayment to the State totaling $47,273 on March 27, 2025.

View Audit 354869

Finding 556034 (2024-001)

Significant Deficiency 2024

Good Shepherd Housing

OH

Reporting

Management agrees with the recommendation and will be transferring all investment balance in obligations of, or fully guaranteed as to principal by, the United States of America in 2025.

View Audit 354754

Finding 555985 (2024-002)

Significant Deficiency 2024

Dal Housing for the Elderly

OH

Questioned Costs HUD Housing Programs Reporting

Management is currently conducting a comprehensive review of the process to ensure alignment with compliance requirements and identify areas for improvement.

View Audit 354707 Questioned Costs: $1

Finding 555984 (2024-001)

Significant Deficiency 2024

Dal Housing for the Elderly

OH

Questioned Costs HUD Housing Programs Eligibility

Management is currently conducting a comprehensive review of the process to ensure alignment with compliance requirements and identify areas for improvement. Status of finding: Corrective Action

View Audit 354707 Questioned Costs: $1

Finding 555971 (2024-003)

Significant Deficiency 2024

Big Springs Medical Association D/b/a Missouri Highlands Health Care

MO

Subrecipient Monitoring Reporting Internal Control / Segregation of Duties § 200.329

Our quarterly status progress report was inadvertently sent two days past the due date in to our state office. We have corrected this by implementing controls by placing the quarterly due dates on our calendars so these due dates are no longer overlooked going forward.

View Audit 354688

Finding 555963 (2024-001)

Significant Deficiency 2024

Lone Pine Economic Development Corporation and Trust

CA

Reporting Internal Control / Segregation of Duties

Comments: Management agrees with the finding. Actions: Management will make the required monthly transfer to the replacement reserve cash account. Management will transfer $30,528 to the replacement reserve cash account.

View Audit 354676

Finding 555960 (2024-002)

Significant Deficiency 2024

Arirang Housing,inc.

CA

Subrecipient Monitoring Reporting § 200.512

Finding 2024-002: For the year ended June 30, 2023, the Corporation did not submit audited financial statements to the Federal Audit Clearinghouse within 9 months after the end of the audit period. The audited financial statements were submitted to the Federal Audit Clearinghouse on December 5, 2024...

Finding 2024-002: For the year ended June 30, 2023, the Corporation did not submit audited financial statements to the Federal Audit Clearinghouse within 9 months after the end of the audit period. The audited financial statements were submitted to the Federal Audit Clearinghouse on December 5, 2024. Comments on the Finding and Each Recommendation: The Corporation should submit audited financial statements to the Federal Audit Clearinghouse within the time frames required. Action(s) taken or planned on the finding: The audited financial statements have been submitted to the Federal Audit Clearinghouse.

View Audit 354675

Finding 555953 (2024-001)

None 2024

Keeneyville School District No. 20

IL

Reporting

The District will implement a process to track the submission time of the data collection form and audit package.

View Audit 354668

Finding 555946 (2024-004)

None 2024

The Pinemont Apartments, Inc.

TX

HUD Housing Programs Procurement, Suspension & Debarment Reporting

The financial statements were required to be submitted to HUD’s Real Estate Assessment Center by March 31, 2025, but were not submitted timely. Response: The financial statements were submitted on April 10, 2025. In the future, we will ensure that the financial statements are submitted by the Mar...

The financial statements were required to be submitted to HUD’s Real Estate Assessment Center by March 31, 2025, but were not submitted timely. Response: The financial statements were submitted on April 10, 2025. In the future, we will ensure that the financial statements are submitted by the March 31 deadline.

View Audit 354657

Finding 555945 (2024-003)

Significant Deficiency 2024

The Pinemont Apartments, Inc.

TX

Procurement, Suspension & Debarment HUD Housing Programs Reporting

The operating bank account was not reconciled at year end. A significant audit adjustment was made. Response: Management will implement procedures to ensure bank accounts are properly reconciled on a monthly basis.

View Audit 354657

Corrective Action Plans

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