Corrective Action Plans

Finding 517610 (2023-005)

Significant Deficiency 2023

NY

Reporting Internal Control / Segregation of Duties

The Agency’s management agrees with this finding and is committed to the development of a solid internal control system that will enable timely reports to government sources. The Agency, under the oversight of a newly hired Chief Financial Officer (Fabio Alvarez), will develop monthly and quarterly ...

The Agency’s management agrees with this finding and is committed to the development of a solid internal control system that will enable timely reports to government sources. The Agency, under the oversight of a newly hired Chief Financial Officer (Fabio Alvarez), will develop monthly and quarterly closing procedures to aid in the timely closing and filing of reports required by Assistance Listing No. 93.676. Implementation of this corrective action plan commenced September 2024 with new finance administration team under the leadership of new chief financial officer (Fabio Alvarez). Please note that for fiscal years 2023-2024, the implementation will still be a work in progress.

View Audit 335657

Finding 517594 (2023-002)

None 2023

Miracle Square, Inc. Dba Miracle Square 054-Hd111-Wpd

SC

HUD Housing Programs Reporting Matching / Level of Effort / Earmarking § 200.512

MIRACLE SQUARE, INC. Sumter, South Carolina CORRECTIVE ACTION PLAN October 29, 2024 U. S. Department of Housing and Urban Development Charles Bennett Federal Building 400 West Bay Street, Suite 1015 Jacksonville, Florida 32202 Miracle Square, Inc. respectfully submits t...

MIRACLE SQUARE, INC. Sumter, South Carolina CORRECTIVE ACTION PLAN October 29, 2024 U. S. Department of Housing and Urban Development Charles Bennett Federal Building 400 West Bay Street, Suite 1015 Jacksonville, Florida 32202 Miracle Square, Inc. respectfully submits the following Corrective Action Plan for the year ended December 31, 2023. Bernard Robinson & Company, L.L.P. Post Office Box 19608 Greensboro, North Carolina 27419-9608 Audit period: Year ended December 31, 2023 The findings from the Schedule of Findings and Questioned Costs for the year ended December 31, 2023 are discussed below. The findings are numbered consistently with the numbers assigned in the schedule. Finding 2023-001 - U.S. Department of Housing and Urban Development, Supportive Housing for Persons with Disabilities (Section 811), Assistance Listing #14.181 Recommendation: We recommend the board of directors and management ensure that the annual financial reports to HUD are submitted by the required due date. Action Taken: We agree with Finding 2023-001 described in the accompanying schedule of findings and questioned costs. The new management company will ensure the annual financial statements are submitted once the audits are back on track with the scheduled due dates. Finding 2023-002 - U.S. Department of Housing and Urban Development, Supportive Housing for Persons with Disabilities (Section 811), Assistance Listing #14.181 Recommendation: We recommend the board of directors and management ensure that the audit and data collection forms are completed timely and the data collection form and required reporting package are submitted electronically to the FAC each fiscal year going forward. Action Taken: We agree with Finding 2023-002 described in the accompanying schedule of findings and questioned costs. The new management company will ensure the data collection forms are submitted electronically to the FAC each fiscal year. If HUD has questions regarding this plan, please call (803) 808-3966. Sincerely yours, Reese Quick, President Southern Development Management Company, Inc.

View Audit 335617

Finding 517593 (2023-001)

None 2023

Miracle Square, Inc. Dba Miracle Square 054-Hd111-Wpd

SC

HUD Housing Programs Reporting

MIRACLE SQUARE, INC. Sumter, South Carolina CORRECTIVE ACTION PLAN October 29, 2024 U. S. Department of Housing and Urban Development Charles Bennett Federal Building 400 West Bay Street, Suite 1015 Jacksonville, Florida 32202 Miracle Square, Inc. respectfully submits t...

MIRACLE SQUARE, INC. Sumter, South Carolina CORRECTIVE ACTION PLAN October 29, 2024 U. S. Department of Housing and Urban Development Charles Bennett Federal Building 400 West Bay Street, Suite 1015 Jacksonville, Florida 32202 Miracle Square, Inc. respectfully submits the following Corrective Action Plan for the year ended December 31, 2023. Bernard Robinson & Company, L.L.P. Post Office Box 19608 Greensboro, North Carolina 27419-9608 Audit period: Year ended December 31, 2023 The findings from the Schedule of Findings and Questioned Costs for the year ended December 31, 2023 are discussed below. The findings are numbered consistently with the numbers assigned in the schedule. Finding 2023-001 - U.S. Department of Housing and Urban Development, Supportive Housing for Persons with Disabilities (Section 811), Assistance Listing #14.181 Recommendation: We recommend the board of directors and management ensure that the annual financial reports to HUD are submitted by the required due date. Action Taken: We agree with Finding 2023-001 described in the accompanying schedule of findings and questioned costs. The new management company will ensure the annual financial statements are submitted once the audits are back on track with the scheduled due dates. Finding 2023-002 - U.S. Department of Housing and Urban Development, Supportive Housing for Persons with Disabilities (Section 811), Assistance Listing #14.181 Recommendation: We recommend the board of directors and management ensure that the audit and data collection forms are completed timely and the data collection form and required reporting package are submitted electronically to the FAC each fiscal year going forward. Action Taken: We agree with Finding 2023-002 described in the accompanying schedule of findings and questioned costs. The new management company will ensure the data collection forms are submitted electronically to the FAC each fiscal year. If HUD has questions regarding this plan, please call (803) 808-3966. Sincerely yours, Reese Quick, President Southern Development Management Company, Inc.

View Audit 335617

Finding 517570 (2023-001)

Significant Deficiency 2023

Calvary Housing Development, Ltd.

WI

Internal Control / Segregation of Duties Reporting

The Company does not have the resources and/or staff to prepare the financial statements and the related notes but will continue to oversee the auditor’s services and review and approve the financial statements and the related notes.

View Audit 335581

Finding 517515 (2023-005)

Material Weakness 2023

Green Lake County

WI

Cash Management Material Weakness Reporting

Recommendation: CLA recommended that there is an appropriate reviewer of each claim, and expenditure reconciliation. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action planned/taken in response to finding: County will have someone other than the ...

Recommendation: CLA recommended that there is an appropriate reviewer of each claim, and expenditure reconciliation. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action planned/taken in response to finding: County will have someone other than the preparer review the report prior to submission going forward. Name(s) of the contact person(s) responsible for corrective action: Cate Wylie Planned completion date for corrective action plan: December 31, 2024

View Audit 335549

Finding 517469 (2023-001)

None 2023

Phoenix Transitional Housing Plus INC

CA

Student Financial Aid Reporting Internal Control / Segregation of Duties § 200.512

FINDING 2023-001 NONCOMPLIANCE - REPORT SUBMISSION Program Title/Federal Grantor/ALN: Foster Care Title IV-E U.S. Department of Health and Human Services Assistance Listing Number 93.658 Corrective Action Plan The Organization will file the SF-SAC Single Audit Data Collection Form by the due date or...

FINDING 2023-001 NONCOMPLIANCE - REPORT SUBMISSION Program Title/Federal Grantor/ALN: Foster Care Title IV-E U.S. Department of Health and Human Services Assistance Listing Number 93.658 Corrective Action Plan The Organization will file the SF-SAC Single Audit Data Collection Form by the due date or file an extension when needed. Name of the Contact Person Responsible for Corrective Action Brian Gambini, Administrator Anticipated Completion Date September 30, 2025

View Audit 335441

Finding 517456 (2023-014)

Material Weakness 2023

Farmington School District

NH

Questioned Costs Reporting § 200.302

Audit Finding Reference: 2023-014 Management’s Response and Planned Corrective Action: We currently do not have a grant accountant, but a second pair of eyes would make it easier to manage our federal activities fund. Someone to help reconcile and be a second approver on journal entries + adjus...

Audit Finding Reference: 2023-014 Management’s Response and Planned Corrective Action: We currently do not have a grant accountant, but a second pair of eyes would make it easier to manage our federal activities fund. Someone to help reconcile and be a second approver on journal entries + adjusting entries would be a huge source of stability in this area. Management will work with financial support on ensuring our discrepancies are resolved, while we also revamp and complete new grant related procedures – such as monthly reconciliations, timely monthly reporting of expenses/reimbursement, and filing to sure up and make this fund reviewable/auditable. Management has been working to track in an aggregate format – the status of each grant on a live document – which the board has access too so they can see when a grant falls behind. Unfortunately, when management first identified these issues, some grants were behind in reporting to almost a full calendar year, causing issues with getting the fund caught back up to date. Name of Contact Person and Completion Date: Name: Mackenzie Campbell Anticipated Completion Date – 6/30/25

View Audit 335436 Questioned Costs: $1

Finding 517454 (2023-001)

Material Weakness 2023

Powder House Pass Community Improvement District

SD

Reporting

Finding No. 2023-001: Financial Statement and Schedule of Expenditures of Federal Awards (SEFA) Preparation The District has accepted the risk associated with Finding #2023-001 regarding the preparation of the financial statements and SEFA, and will continue to have the independent auditor prepare ...

Finding No. 2023-001: Financial Statement and Schedule of Expenditures of Federal Awards (SEFA) Preparation The District has accepted the risk associated with Finding #2023-001 regarding the preparation of the financial statements and SEFA, and will continue to have the independent auditor prepare the annual financial statements and SEFA. For future audits, Jay Headley will continue to monitor the financial statement preparation and determine if any modification is necessary.

View Audit 335419

Finding 517392 (2023-002)

Significant Deficiency 2023

Tennessee Pharmacists Research and Education Foundation

TN

Reporting § 200.512

Management's Response: We concur. View of Responsible Officials and Corrective Action: In 2024, TPREF engaged an independent accounting firm to reconcile all accounts and perform month-end and year-end close activities. Also in 2023-2024, TPREF reviewed and established proper utilization of new acco...

Management's Response: We concur. View of Responsible Officials and Corrective Action: In 2024, TPREF engaged an independent accounting firm to reconcile all accounts and perform month-end and year-end close activities. Also in 2023-2024, TPREF reviewed and established proper utilization of new accounting software to support timely reporting to align with policies and procedures. To provide greater oversight and supervision, and to ensure timely and accurate charging of expenses, billing, and revenue recognition, the accounting firm assumed responsibility for accounts receivable with reporting to the CEO. In 2025, the accounting firm will be supplemented by an in-house bookkeeper to manage accounts receivables with oversight by the CEO and accounting firm. Anticipated Completion Date: The onboarding to new accounting firm was completed in September 2024 and TPREF has transitioned to regular client services management. By end of the first quarter 2025, TPREF will have hired and onboarded an in-house bookkeeper to supplement the accounting firm.

View Audit 335362

Finding 517389 (2023-004)

None 2023

Housing Authority of Okanogan County

WA

HUD Housing Programs Eligibility Reporting

2023-004 Tenant File Documentation The Housing Authority of Okanogan County recognizes we had several oversights in our tenant file documentation. We will continue to review our tenant file documentation procedures to ensure compliance with HUD program requirements in the future. Subsequent to year-...

2023-004 Tenant File Documentation The Housing Authority of Okanogan County recognizes we had several oversights in our tenant file documentation. We will continue to review our tenant file documentation procedures to ensure compliance with HUD program requirements in the future. Subsequent to year-end, during April 2024, the Housing Authority of Okanogan County underwent a Section 8 Management Assessment Program review by the U.S. Department of Housing and Urban Development and received a final score of Standard. We have made several process and procedure improvements and anticipate full compliance during our subsequent audit.

View Audit 335354

Finding 517386 (2023-003)

Material Weakness 2023

Housing Authority of Okanogan County

WA

HUD Housing Programs Reporting

2023-003 – Late Federal Audit Clearinghouse and HUD REAC Submissions The Housing Authority of Okanogan County recognizes the agency did not have adequate internal control processes over our accounting and reporting procedures to ensure that all reports were submitted timely in accordance with Federa...

2023-003 – Late Federal Audit Clearinghouse and HUD REAC Submissions The Housing Authority of Okanogan County recognizes the agency did not have adequate internal control processes over our accounting and reporting procedures to ensure that all reports were submitted timely in accordance with Federal requirements. We are reviewing our year end accounting procedures and will implement several changes ensuring our 2024 audit will be completed and filed timely.

View Audit 335354

Finding 517266 (2023-001)

Material Weakness 2023

Bay Area Environmental Research Institute

CA

Reporting § 200.512

Finding 2023-001—Reporting BAERI acknowledges the repeated finding related to reporting. The inability to meet the reporting deadline for the 2023 audit stems from the concurrent timing of the 2022 and 2023 audits, which prevented the implementation of the corrective action plan outlined in our 2022...

Finding 2023-001—Reporting BAERI acknowledges the repeated finding related to reporting. The inability to meet the reporting deadline for the 2023 audit stems from the concurrent timing of the 2022 and 2023 audits, which prevented the implementation of the corrective action plan outlined in our 2022 audit response. BAERI has fully implemented the corrective action plan developed in response to Finding 2022-001. These corrective actions include: 1. Policies and procedures to ensure internal documentation required for the annual audit is easily accessible to finance staff and not onerous to compile for auditors. 2. The hiring and training of additional finance staff to support the implementation of these policies and ensure a smooth and timely audit process. Due to the concurrent completion of the 2022 and 2023 audits, these measures were not able to impact the 2023 audit. However, they are now in place and will be reflected in the 2024 audit, which will be completed by June 2025. Additionally, BAERI has transitioned its fiscal year from a calendar year to a federal fiscal year (October 1 to September 30). This change will better align our reporting timelines with federal requirements and further support timely submissions. The 2024 audit report and SF-SAC form will be submitted to the Federal Audit Clearinghouse within nine months after the end of the audit period, demonstrating compliance with 2 CFR 200.512. BAERI remains committed to improving its compliance and ensuring timely reporting in future audits.

View Audit 335301

Finding 517241 (2023-002)

Significant Deficiency 2023

Housing Authority of the County of Butte

CA

Reporting Internal Control / Segregation of Duties § 200.512

Recommendations: We recommend that the Authority strengthen its internal controls and improve oversight of the audit process to ensure timely completion and submission of future reports. Additionally, the recipient should work closely with the audit firm to establish clearer timelines and ensure tha...

Recommendations: We recommend that the Authority strengthen its internal controls and improve oversight of the audit process to ensure timely completion and submission of future reports. Additionally, the recipient should work closely with the audit firm to establish clearer timelines and ensure that any delays are addressed promptly. Authority Response: Leadership recognizes the federal award finding and questioned costs and is already moving forward with a systems change to ensure timeliness of completing the necessary processes with the annual audit.

View Audit 335257

Finding 517203 (2023-002)

Significant Deficiency 2023

Springfield Housing Authority

MA

HUD Housing Programs Reporting Allowable Costs / Cost Principles

Name of Auditee: Springfield Housing Authority Name of Audit Firm: EFPR Group, CPAs, PLLC Period Covered by the Audit: March 31, 2023 CAP Prepared by: Denise Jordan, Executive Director Phone: (413) 785-4500 (A) Current Findings on the Schedule of Findings and Questioned Costs (2) Finding 2023-002 (a...

Name of Auditee: Springfield Housing Authority Name of Audit Firm: EFPR Group, CPAs, PLLC Period Covered by the Audit: March 31, 2023 CAP Prepared by: Denise Jordan, Executive Director Phone: (413) 785-4500 (A) Current Findings on the Schedule of Findings and Questioned Costs (2) Finding 2023-002 (a) Comments on the finding and recommendation - The Authority agrees with the findings. The Authority also agrees with the recommendations, please see below for action taken. (b) Action taken - The Authority will provide on-going training for finance and accounting personnel to expand their knowledge on HUD reporting requirements related to VMS. Additionally, the Authority will conduct a thorough review to identify the root cause of the discrepancies between the VMS data and the supporting documentation. (c) Planned implementation date of corrective action - Completed by March 31, 2025.

View Audit 335173

Finding 517200 (2023-004)

Significant Deficiency 2023

Springfield Housing Authority

MA

Reporting

Name of Auditee: Springfield Housing Authority Name of Audit Firm: EFPR Group, CPAs, PLLC Period Covered by the Audit: March 31, 2023 CAP Prepared by: Denise Jordan, Executive Director Phone: (413) 785-4500 (A) Current Findings on the Schedule of Findings and Questioned Costs (4) Finding 2023-004 (a...

Name of Auditee: Springfield Housing Authority Name of Audit Firm: EFPR Group, CPAs, PLLC Period Covered by the Audit: March 31, 2023 CAP Prepared by: Denise Jordan, Executive Director Phone: (413) 785-4500 (A) Current Findings on the Schedule of Findings and Questioned Costs (4) Finding 2023-004 (a) Comments on the finding and recommendation - The Authority agrees with the finding. The Authority also agrees with the recommendations, please see below for action taken. (b) Action taken - The Authority will continue to utilize Marcum LLP to provide ongoing fee accounting services to incorporate the recommendations listed above on a monthly basis. A comprehensive year-end checklist will continue to be utilized to ensure all general ledger activity is accurate to the underlying support. (c) Planned implementation date of corrective action - Completed by March 31, 2025.

View Audit 335173

Finding 517199 (2023-003)

Significant Deficiency 2023

Springfield Housing Authority

MA

HUD Housing Programs Reporting Matching / Level of Effort / Earmarking § 200.512

Name of Auditee: Springfield Housing Authority Name of Audit Firm: EFPR Group, CPAs, PLLC Period Covered by the Audit: March 31, 2023 CAP Prepared by: Denise Jordan, Executive Director Phone: (413) 785-4500 (A) Current Findings on the Schedule of Findings and Questioned Costs (3) Finding 2023-003 (a...

Name of Auditee: Springfield Housing Authority Name of Audit Firm: EFPR Group, CPAs, PLLC Period Covered by the Audit: March 31, 2023 CAP Prepared by: Denise Jordan, Executive Director Phone: (413) 785-4500 (A) Current Findings on the Schedule of Findings and Questioned Costs (3) Finding 2023-003 (a) Comments on the finding and recommendation - The Authority agrees with the findings. However, the root of the issue is related to complications with the software conversion to Yardi. (b) Action taken - The Authority has replaced Yardi with PHA-Web for its accounting software. (c) Planned implementation date of corrective action - Completed on October 31, 2024.

View Audit 335173

Finding 517190 (2023-006)

None 2023

Project Hood Communities Development Corporation

IL

Reporting

Management will review its financial and grant management policies to ensure that all grants are appropriately reviewed to determine if there is a federal funding component and if so, that all necessary information is obtained. Additionally, management will seek confirmation from its funders regardi...

Management will review its financial and grant management policies to ensure that all grants are appropriately reviewed to determine if there is a federal funding component and if so, that all necessary information is obtained. Additionally, management will seek confirmation from its funders regarding federal grant spending on an annual basis to determine if it exceeds the statutory thresholds requiring a Single Audit.

View Audit 335152

Finding 517189 (2023-005)

Material Weakness 2023

Project Hood Communities Development Corporation

IL

Reporting

Management will review its financial and grant management policies to ensure that all grants are appropriately reviewed to determine if there is a federal funding component and if so, that all necessary information is obtained. Additionally, management will seek confirmation from its funders regardi...

Management will review its financial and grant management policies to ensure that all grants are appropriately reviewed to determine if there is a federal funding component and if so, that all necessary information is obtained. Additionally, management will seek confirmation from its funders regarding federal grant spending on an annual basis.

View Audit 335152

Finding 517187 (2023-001)

Material Weakness 2023

Boys and Girls Clubs of the Midlands

NE

Reporting

Action(s) Taken or Planned on the Finding: Our plan to correct the general ledger system and accurately account for transactions going forward is as follows: 1.) Hire an experienced Chief Financial Officer to implement best practices within the organization’s accounting function. 2.) Develop process...

Action(s) Taken or Planned on the Finding: Our plan to correct the general ledger system and accurately account for transactions going forward is as follows: 1.) Hire an experienced Chief Financial Officer to implement best practices within the organization’s accounting function. 2.) Develop processes to ensure that significant balance sheet accounts, including cash, investments, and receivables, are reviewed and reconciled each month. 3.) Hire a general ledger specialist whose primary focus will be on accounting for and reconciling receivable balances. These steps will allow us to account for transactions accurately and report correct financial statement balances. Anticipated Completion Date: The new Chief Financial Officer started September 30, 2024. The implementation of new processes and procedures will begin in December 2024 and once established will continue indefinitely. The hiring process for the additional staff is expected to commence in December 2024.

View Audit 335142

Finding 517156 (2023-002)

Significant Deficiency 2023

Stone County, Missouri

MO

Reporting Subrecipient Monitoring

County officers and employees have diligently tried to maintain sufficient records so that the SEFA can be accurately completed. The County Clerk is working toward capturing grant transactions in a manner sufficient to readily report the necessary information required on the SEFA by the next audit p...

County officers and employees have diligently tried to maintain sufficient records so that the SEFA can be accurately completed. The County Clerk is working toward capturing grant transactions in a manner sufficient to readily report the necessary information required on the SEFA by the next audit period. The telephone number for the County Clerk is (417) 357-6127.

View Audit 335113

Finding 517142 (2023-002)

Significant Deficiency 2023

Big Sky Economic Development Corporation

MT

Matching / Level of Effort / Earmarking Eligibility Period of Performance § 200.303 § 200.307

Financial Reporting and Review Process Description of the Finding: BSEDC did not have a secondary review process over the required financial reporting to Federal EDA. The lack of a secondary review process allowed for errors and omissions to go undetected, thus resulting in omission of $3,614 of loa...

Financial Reporting and Review Process Description of the Finding: BSEDC did not have a secondary review process over the required financial reporting to Federal EDA. The lack of a secondary review process allowed for errors and omissions to go undetected, thus resulting in omission of $3,614 of loan origination fee income and interest income from federal program income calculations. Planned Corrective Actions: BSEDC’s Senior Director of Finance and Director of Business Finance/Program Finance Director have implemented processes for the Senior Director of Finance to perform a secondary review of the required reporting to Federal EDA before it is submitted. Timeline for Completion: BSEDC implemented the secondary review process in October 2024 with the completion and submission of the FY24 annual report to Federal EDA. Responsible Person or Party: BSEDC’s Senior Director of Finance and Director of Business Finance/Program Finance Director are both responsible for ensuring that the secondary review is complete before submitting reporting to Federal EDA.

View Audit 335033

Finding 517141 (2023-001)

Significant Deficiency 2023

Big Sky Economic Development Corporation

MT

Matching / Level of Effort / Earmarking Internal Control / Segregation of Duties Eligibility § 200.501 § 200.512

Finding No. 2023-001: Compliance with Single Audit Requirements Description of the Finding: Big Sky Economic Development Corporation, Inc. (BSEDC) did not engage to conduct a single audit for FY23 despite meeting the expenditure threshold, and the required audit report was not submitted within the p...

Finding No. 2023-001: Compliance with Single Audit Requirements Description of the Finding: Big Sky Economic Development Corporation, Inc. (BSEDC) did not engage to conduct a single audit for FY23 despite meeting the expenditure threshold, and the required audit report was not submitted within the prescribed due dates. This oversight necessitated the reissuance of the FY23 financial statement audit to complete and issue a single audit. Planned Corrective Actions: BSEDC’s Senior Director of Finance engaged with an independent auditor to complete the single audit for FY23 and re-issue the financial statement audit which was missed during the performance of the FY23 financial statement audit due to the Senior Director of Finance and the parties they engaged to perform the audit not having a clear understanding of the calculation for federal expenditures for the federal revolving loan fund. The Senior Director of Finance now has a clear understanding of the requirements for the calculation and reporting of federal expenditures in the Schedule Expenditures of Federal Awards as it relates to the federal revolving laon fund. Timeline for Completion: BSEDC engaged with an independent auditor to complete the single audit for FY23 and reissue the FY23 financial statement audit in June 2024. Expected completion is November 2024. Responsible Person or Party: BSEDC’s Senior Director of Finance is responsible for implementing the corrective action.

View Audit 335033

Finding 517099 (2023-016)

Material Weakness 2023

Guam Department of Education

GU

Reporting Subrecipient Monitoring

Finding No.: 2023-016 Federal Agency: U.S. Department of Education AL Program: 84.425 Education Stabilization Fund Area: Reporting Questioned Costs: $0 Views of Auditee and Corrective Actions: GDOE disagrees with the finding. Annual reports are prepared at a point in time. GDOE submitted the require...

Finding No.: 2023-016 Federal Agency: U.S. Department of Education AL Program: 84.425 Education Stabilization Fund Area: Reporting Questioned Costs: $0 Views of Auditee and Corrective Actions: GDOE disagrees with the finding. Annual reports are prepared at a point in time. GDOE submitted the required annual reports for ESF I, ESF II, and ARP on May 23, 2023. Auditors referencing figures in the annual report should also be reconciling to the same period covered and utilized in the financial reporting, as transactions and adjustments occur in the system after the reports are submitted. Plan of action and completion date: GDOE disagrees with the finding but will continue to monitor all federal financial reporting for accuracy and timely submission per the grant requirements.

View Audit 334970

Finding 517096 (2023-013)

Material Weakness 2023

Guam Department of Education

GU

Subrecipient Monitoring Reporting

Finding No.: 2023-013 Federal Agency: U.S. Department of Education AL Program: 84.403 Consolidated Grant to the Outlying Areas Federal Award No.: S403A220002 Area: Reporting Questioned Costs: $0 Views of Auditee and Corrective Actions: GDOE disagrees with the finding. GDOE is required to submit an a...

Finding No.: 2023-013 Federal Agency: U.S. Department of Education AL Program: 84.403 Consolidated Grant to the Outlying Areas Federal Award No.: S403A220002 Area: Reporting Questioned Costs: $0 Views of Auditee and Corrective Actions: GDOE disagrees with the finding. GDOE is required to submit an annual report that includes financial and program performance information relative to Consolidated Grants (CG). GDOE’s FFY 2022 CG Quarterly Report, dated October 31, 2023, reported a total expenditure amount that differs from accounting records by $3.5 million. The information cited in the finding references data from a quarterly monitoring tool, which is used for internal tracking and management purposes. However, GDOE is only required to submit programmatic and financial data in its annual report as required in 34 CFR 76.132(a)(5) and further reiterated in the criteria of this finding. The official reporting obligation is limited to the data submitted in the Annual Performance Report (APR). Plan of action and completion date: GDOE disagrees with the finding. However, to ensure the proper enforcement of monitoring controls and allow for a more accurate tool used for internal tracking and management purposes, the Federal Programs Division will remove the cited financial information from its quarterly reports. To best capture this information, the Federal Programs Division will now require this information be submitted and certified by the GDOE accounting team.

View Audit 334970

Finding 517094 (2023-011)

Significant Deficiency 2023

Guam Department of Education

GU

Questioned Costs Period of Performance Procurement, Suspension & Debarment

Finding No.: 2023-011 Federal Agency: U.S. Department of Education AL Program: 84.403 Consolidated Grant to the Outlying Areas Area: Period of Performance Questioned Costs: $11,004 Views of Auditee and Corrective Actions: GDOE disagrees with condition 1 related to FY 2024 purchase orders (PO). GDOE ...

Finding No.: 2023-011 Federal Agency: U.S. Department of Education AL Program: 84.403 Consolidated Grant to the Outlying Areas Area: Period of Performance Questioned Costs: $11,004 Views of Auditee and Corrective Actions: GDOE disagrees with condition 1 related to FY 2024 purchase orders (PO). GDOE PO 20240171 is a copy over of the third-party fiduciary agent (TPFA) PO 20230010 which was issued in December 2022, within the CG 21 period of performance. GDOE acknowledges that the re-issued GDOE purchase order was not timely processed, however the purchase order which encumbered the funds occurred in the appropriate performance period. Additionally, relative to payroll, FPD requests a list (i.e. Staffing Pattern) of all Federally funded personnel from HR. FPD distributes the list to CG Project Leads to validate and compare to the Federal Roster as approved in the Consolidated Grants (CG) Application. The list is updated to make any corrections necessary. Once validated by Project Leads and FPD, HR is given a memo requesting to change/correct the funding year to the new grant award. In GDOE’s Munis system, if the Human Resources (HR) employee salary records are not accurately updated, GDOE payroll will reflect dated pay tables until such time HR makes the appropriate updates based on project lead requests to update accounts to current grant year. GDOE recorded journal entries to transfer the improperly charged payroll expenditure to the appropriate grant year. Plan of action and completion date: The GDOE will perform a monthly review of all transactions to ensure charges are recorded in the appropriate grant year. Additionally, Grant Project Managers and Program Coordinators will work with the HR and Business Office any changes to accounts charged for federally funded payroll expenditures. IAO now provides an independent review of drawdown requests - a control that will help prevent liquidation after applicable period of performance Plan to monitor and responsible officials: Financial Affairs under the leadership of the Deputy of Finance and Administrative Services, Morgan W. Paul, and the GDOE Comptroller (vacant), will ensure an accountant is monitoring the expenditures of federal grants and the corresponding periods of performance and liquidation periods. Grant Project Managers and Federal Compliance review team will also provide timely communication for changes in grant year funding to HR relative to federal payroll.

View Audit 334970 Questioned Costs: $1

Corrective Action Plans

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