Corrective Action Plans

Finding 496301 (2023-001)

Material Weakness 2023

NY

Reporting

Views of responsible officials The late 2022 submission was ultimately the result of Management’s decision to await clarification from the mortgage lender Webster Bank. Housing and Services, Inc. and certain related entities acting as guarantors of Bedford 203 LP’s construction loan were released fr...

Views of responsible officials The late 2022 submission was ultimately the result of Management’s decision to await clarification from the mortgage lender Webster Bank. Housing and Services, Inc. and certain related entities acting as guarantors of Bedford 203 LP’s construction loan were released from their guarantor obligations upon Bedford 203 LP’s conversion to permanent financing. The request for clarification was made in mid-September 2023 and Webster Bank’s response was obtained in early October 2023, resulting in the late submission. Management acknowledges that completion of the 2023 financial statements, originally anticipated to be completed in June 2023, were delayed by Management’s efforts to enhance its understanding in the accounting for new construction during the summer of 2023. The submission was completed and resolved on November 9, 2023. Omissions in the Schedule maintained during 2023 primarily pertain to construction lending by the City of New York’s Department of Housing Preservation and Development that utilized federal funding and project-based Section 8 rental assistance. Management inadvertently only presented the construction lending in the years of expenditure. Such expenditures were duly reported upon and audited during the years of expenditures and were maintained within the financial records of Housing and Servies, Inc. and the applicable related entities but were subsequently omitted from the Schedule in the years following. Management concurs with Finding No. 2023-001 and, as of August 2024, management has enhanced its internal controls and augmented its personnel to ensure that such reporting under Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards is compliant, complete, and accurate for the 2023 Schedule and going forward.

View Audit 319193

Finding 496295 (2023-001)

Material Weakness 2023

Early Childhood Alliance, Inc.

IN

Reporting Internal Control / Segregation of Duties

2023-001 Material Adjustments Views of Responsible Officials and Planned Corrective Actions: Management will incorporate financial reporting internal controls to detect material adjustments, prevent materially misstated financial statements and increase the accuracy of the internal financial repor...

2023-001 Material Adjustments Views of Responsible Officials and Planned Corrective Actions: Management will incorporate financial reporting internal controls to detect material adjustments, prevent materially misstated financial statements and increase the accuracy of the internal financial reports used by management. The Senior Accountant records the CCDF revenue as it comes in bi-weekly. The CFO calculates the monthly accrual. The Senior Accountant and CFO worked together to create a reconciling process to ensure correct reporting of CCDF revenue.

View Audit 319183

Finding 496243 (2023-003)

Significant Deficiency 2023

The Nemours Foundation

FL

Reporting § 200.303 § 200.502 § 200.510

Research Administration will implement a new standard operating procedure to review and update labor distribution allocations on a quarterly basis to timely identify any changes required to prevent any manual adjustments in future periods. The process for effort certification has also been created t...

Research Administration will implement a new standard operating procedure to review and update labor distribution allocations on a quarterly basis to timely identify any changes required to prevent any manual adjustments in future periods. The process for effort certification has also been created to generate statements that will be verified each quarter to confirm effort allocations are correct. The Accounting department will update the review procedures for the preparation of the draft Schedule of Federal Awards (SEFA) to include an additional level of review by the Assistant Vice President, Accounting. Her review process will include a focus on manual adjustments if required to reconcile the draft SEFA to the underlying general ledger accounting details to ensure the completeness and accuracy. Corrective action to ensure timely effort reporting changes will be complete by November 30, 2024. Corrective action to ensure a complete and accurate SEFA will occur during the preparation of December 31, 2024, draft SEFA.

View Audit 319180

Finding 496237 (2023-001)

Significant Deficiency 2023

The Nemours Foundation

FL

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

Nemours will enhance the standard operating process over awards to require a business owner be designated for each award. The business owner is responsible for oversight to ensure compliance with the agreement. This update ensures any award is appropriately managed in compliance with federal statute...

Nemours will enhance the standard operating process over awards to require a business owner be designated for each award. The business owner is responsible for oversight to ensure compliance with the agreement. This update ensures any award is appropriately managed in compliance with federal statutes, regulations, and the terms and conditions of the federal awards. The enhanced standard operating process will also require a routine meeting with the business owner and representatives from Research Finance and/or Grant Accounting through the conclusion of the funding to ensure compliance is maintained and appropriately monitored. Corrective action will be complete by November 30, 2024.

View Audit 319180

Finding 496221 (2023-003)

Material Weakness 2023

City of St. Peter

MN

Reporting Internal Control / Segregation of Duties § 200.502 § 200.510

MATERIAL WEAKNESS IN INTERNAL CONTROL OVER COMPLIANCE – SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS 2023-003 Reporting Compliance Requirement Finding Summary 2 CFR § 200.510 requires that the City prepare financial statements that reflect its financial position, results of operations or changes ...

MATERIAL WEAKNESS IN INTERNAL CONTROL OVER COMPLIANCE – SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS 2023-003 Reporting Compliance Requirement Finding Summary 2 CFR § 200.510 requires that the City prepare financial statements that reflect its financial position, results of operations or changes in net position, and, where appropriate, cash flows for the fiscal year audited, including the Schedule of Expenditures of Federal Awards (SEFA) for the year ended December 31, 2023, which must include the total federal awards expended as determined in accordance with 2 CFR § 200.502. Management is responsible for establishing and maintaining effective internal controls over compliance with requirements applicable to federal programs, including separately tracking federal expenditures within the finance system to provide for accurate preparation of the SEFA. Corrective Action Plan Actions Planned – The City plans to review its internal control procedures over reporting and verify completeness of expenditures reported on the SEFA in the future. Official Responsible – Sally Vogel, Finance Director. Planned Completion Date – December 31, 2024. Disagreement With or Explanation of Finding – The City agrees with this finding. Plan to Monitor – Sally Vogel, Finance Director, will continue to work with staff to review its internal control procedures over reporting and verify completeness of expenditures reported on the SEFA in the future.

View Audit 319161

Finding 496219 (2023-001)

Significant Deficiency 2023

City of Orange, Texas

TX

Questioned Costs Subrecipient Monitoring Internal Control / Segregation of Duties

Finding 2023-001: Condition and Context: For the year ended September 30, 2023, we reviewed the current period grant expenditures and found the HUD monthly monitoring reports to be incomplete. In addition, several material grant expenditures were not submitted for reimbursement within 120 days foll...

Finding 2023-001: Condition and Context: For the year ended September 30, 2023, we reviewed the current period grant expenditures and found the HUD monthly monitoring reports to be incomplete. In addition, several material grant expenditures were not submitted for reimbursement within 120 days following the date of expenditure. Corrective action planned: Management of the City will implement additional control activities over the review of draw requests and monthly reports by reconciling them to the detail grant expenditures contained in the City’s financial accounting system. Contact person: Cheryl Zeto, Finance Director (409) 883-1041 Anticipated completion date: August 2024

View Audit 319159 Questioned Costs: $1

Finding 496212 (2023-002)

Material Weakness 2023

City of Akron, Ohio

OH

Reporting § 200.328

The City will implement additional control procedures to ensure all reports are filed in a timely manner.

View Audit 319151

Finding 496210 (2023-003)

Material Weakness 2023

City of Akron, Ohio

OH

Reporting Subrecipient Monitoring Material Weakness § 200.328

The City will implement additional control procedures to ensure all reports are filed in a timely manner.

View Audit 319151

Finding 486153 (2023-005)

Significant Deficiency 2023

Donnelly College

KS

Student Financial Aid Matching / Level of Effort / Earmarking Reporting

Contact Person: Stephani Berry, Director of Financial Aid Views of Responsible Officials and Planned Corrective Action: Donnelly College concurs with the finding. The Director of Financial Aid has implemented procedures to post aid in batches and to coordinate the timing of the postings with the Bus...

Contact Person: Stephani Berry, Director of Financial Aid Views of Responsible Officials and Planned Corrective Action: Donnelly College concurs with the finding. The Director of Financial Aid has implemented procedures to post aid in batches and to coordinate the timing of the postings with the Business Office. Financial Aid staff review documentation from each batch posted and compare the data to the awards posted on COD. Each month the Director reconciles her records to COD. Anticipated Completion Date: Completed

View Audit 318808

Finding 486150 (2023-002)

Material Weakness 2023

Boone County

IN

Internal Control / Segregation of Duties Allowable Costs / Cost Principles Material Weakness § 200.1 § 200.303

Finding 2023-002 Finding Subject: COVID-19 - Coronavirus State and Local Fiscal Recovery Funds - Reporting Summary of Finding: The County had not properly designated or implemented a system of internal controls, which would include appropriate segregation of duties that would likely be effective in ...

Finding 2023-002 Finding Subject: COVID-19 - Coronavirus State and Local Fiscal Recovery Funds - Reporting Summary of Finding: The County had not properly designated or implemented a system of internal controls, which would include appropriate segregation of duties that would likely be effective in preventing, or detecting and correcting, noncompliance. A single employee prepared and submitted reports without a documented review or oversight process in place to prevent or detect and correct errors. The County submitted three P&E reports during the audit period. No report was submitted for the period of October 1, 2022 to December 31, 2022 although there was activity during this time period. For the three reports submitted, all activity for the reporting period was not included and the reports were not fairly presented. Contact Person Responsible for Corrective Action: Debbie Morton-Crum, County Auditor Contact Phone Number: 765-482-2940 Views of Responsible Officials: We concur with the finding. Description of Corrective Action Plan: We are putting Internal Controls in place specific to the Covid-19 Coronavirus State and Local Fiscal Recovery Funds grant. We will put a checklist together when it is submitted by other departments with a review and approval process for the disbursement by the governing body before the claim can be processed. Anticipated Completion Date: October 2024

View Audit 318807

Finding 486139 (2023-001)

Significant Deficiency 2023

City of Minneapolis

MN

Subrecipient Monitoring Reporting Significant Deficiency § 200.303

Finding Number: 2023-001 Finding Title: FFATA Reporting Program: 14.218 Community Development Block Grant Name of Contact Person Responsible for Corrective Action: Matthew Bower- Manager Resource Coordination Corrective Action Planned: Staff has established a system of reviewing all Federal Direct g...

Finding Number: 2023-001 Finding Title: FFATA Reporting Program: 14.218 Community Development Block Grant Name of Contact Person Responsible for Corrective Action: Matthew Bower- Manager Resource Coordination Corrective Action Planned: Staff has established a system of reviewing all Federal Direct grants on a monthly basis for any new subawards that require FFATA reporting, and report as required. Anticipated Completion Date: System in place as of August 1, 2024.

View Audit 318791

Finding 486133 (2023-003)

Material Weakness 2023

Clark County

IL

Reporting

Management will continue to contract with independent contractor to draft the Schedule of Expenditures of Federal Awards for their review and approval.

View Audit 318775

Finding 486132 (2023-002)

Significant Deficiency 2023

Sault Ste. Marie Tribe of Chippewa Indians

MI

Subrecipient Monitoring Reporting § 200.328

Criteria: In accordance with 2 CFR 200.328 and 31 CFR section 35.4(c) Reporting and requests for other information, grantees are required to file quarterly Project and Expenditure Reports listing significant projects, significant payments to subrecipients, subawards, and expenditure awards greater ...

Criteria: In accordance with 2 CFR 200.328 and 31 CFR section 35.4(c) Reporting and requests for other information, grantees are required to file quarterly Project and Expenditure Reports listing significant projects, significant payments to subrecipients, subawards, and expenditure awards greater than $50,000. Condition: The Tribe incorrectly listed some project vendors as a subrecipients on the Project and Expenditure reports. Cause: Treasury guidance for reporting subrecipients versus contractors was in transition during the reporting periods for the year. Effect: The Tribe reported subrecipients on the Project and Expenditures Reports, but did not have any subrecipients of Coronavirus State and Local Fiscal Recovery Funds (SLFRF). Recommendation: Update reporting to ensure payments are reported as project vendors rather than subrecipients. Management's Response: Management recognizes that the error exists and has not been able to correct the report due to US Treasury’s portal not accepting prior period revisions. Treasury has changed its guidance on SLFRF multiple times over the past several years which has created an increased risk in filing errors for all reporting for these funds. Person Responsible: Robert Schulte, CFO Anticipated Completion Date: Ongoing evaluation

View Audit 318771

Finding 486110 (2023-002)

Significant Deficiency 2023

Marion County

SC

Reporting Internal Control / Segregation of Duties

Due to a small staff size, the County does not have complete segregation of duties. Inadequate segregation of duties may make the County susceptible to management override of controls, misappropriation of assets and/or the subsequent concealment of the acts and/or inaccurate financial reporting.

View Audit 318757

Finding 486077 (2023-001)

Material Weakness 2023

South Bend Heritage Foundation Inc.

IN

Reporting § 200.512

Comments on the Finding and Each Recommendation Statement of condition #2023-001: The Corporation did not submit the Data Collection Form (SF-SAC) for the year ended December 31, 2022 to the Office of Management and Budget (OMB) in a timely manner as required by Uniform Guidance section 2 CFR 200.51...

Comments on the Finding and Each Recommendation Statement of condition #2023-001: The Corporation did not submit the Data Collection Form (SF-SAC) for the year ended December 31, 2022 to the Office of Management and Budget (OMB) in a timely manner as required by Uniform Guidance section 2 CFR 200.512. Recommendation: The Corporation should submit all future Data Collection Forms in the required time frame. Action(s) taken or planned on the finding: Management concurs with the finding and the auditor's recommendation. On August 29, 2023, the Data Collection Form was submitted to OMB. No further action is required and the finding is resolved.

View Audit 318719

Finding 486022 (2023-002)

Significant Deficiency 2023

The Salvation Army Northwest Division

WA

Internal Control / Segregation of Duties Reporting Significant Deficiency

The Division will enhance controls to ensure timely submission of report and that there is segregation of duties between the report preparer and reviewer. Reports will be reviewed prior to submission and the review and submission of reports to granting agencies will be documented. Anticipated Comple...

The Division will enhance controls to ensure timely submission of report and that there is segregation of duties between the report preparer and reviewer. Reports will be reviewed prior to submission and the review and submission of reports to granting agencies will be documented. Anticipated Completion Date: October 2024. Responsible Contact Person: Yohannes Gedlu, Northwest Division Divisional Finance Director & Julie Luft, Northwest Division Social Services Director

View Audit 318713

Finding 486021 (2023-002)

None 2023

Progressive Rehab of PA INC

PA

Procurement, Suspension & Debarment Student Financial Aid Reporting

The organization will ensure that financial records are maintained on a current basis, reconciled timely and audited within nine months after year end. Additional support has been put in place within the accounting department to records are current, reconciled timely and audit is completed within ni...

The organization will ensure that financial records are maintained on a current basis, reconciled timely and audited within nine months after year end. Additional support has been put in place within the accounting department to records are current, reconciled timely and audit is completed within nine months after year end.

View Audit 318711

Finding 486019 (2023-003)

Significant Deficiency 2023

Charleston County Housing and Redevelopment Authority

SC

Allowable Costs / Cost Principles HUD Housing Programs Reporting

2023-003 ALN: 14.871 - Housing Choice Voucher Cluster - Reporting Management acknowledged the finding and will follow the Auditor's recommendations as listed in the Schedule of Findings and Questioned Costs. Person Responsible for Correction of Finding: Ms. Angela Childers, Chief Executive Officer P...

2023-003 ALN: 14.871 - Housing Choice Voucher Cluster - Reporting Management acknowledged the finding and will follow the Auditor's recommendations as listed in the Schedule of Findings and Questioned Costs. Person Responsible for Correction of Finding: Ms. Angela Childers, Chief Executive Officer Projected Completion Date: March 31, 2025

View Audit 318709

Finding 486018 (2023-001)

Significant Deficiency 2023

Charleston County Housing and Redevelopment Authority

SC

HUD Housing Programs Reporting Internal Control / Segregation of Duties

2023-001 ALN: 14.871 - Housing Choice Voucher Cluster - Reporting Management acknowledged the finding and will follow the Auditor's recommendations as listed in the Schedule of Findings and Questioned Costs. Person Responsible for Correction of Finding: Ms. Angela Childers, Chief Executive Officer P...

2023-001 ALN: 14.871 - Housing Choice Voucher Cluster - Reporting Management acknowledged the finding and will follow the Auditor's recommendations as listed in the Schedule of Findings and Questioned Costs. Person Responsible for Correction of Finding: Ms. Angela Childers, Chief Executive Officer Projected Completion Date: March 31, 2025

View Audit 318709

Finding 486003 (2023-004)

None 2023

Aurora Charter School

MN

Reporting § 200.512

REPORTABLE NONCOMPLIANCE WITH FEDERAL REPORTING REQUIREMENTS – ALL FEDERAL PROGRAMS AWARDED UNDER THE UNIFORM GUIDANCE 2023-004 Federal Reporting Deadline Finding Summary 2 CFR Part 200, Subpart F, § 200.512(a)(1) requires the School’s audited SEFA and federal reporting package to be submitted t...

REPORTABLE NONCOMPLIANCE WITH FEDERAL REPORTING REQUIREMENTS – ALL FEDERAL PROGRAMS AWARDED UNDER THE UNIFORM GUIDANCE 2023-004 Federal Reporting Deadline Finding Summary 2 CFR Part 200, Subpart F, § 200.512(a)(1) requires the School’s audited SEFA and federal reporting package to be submitted to the federal audit clearinghouse within the earlier of 30 calendar days after the receipt of the auditor’s report(s), or 9 months after the end of the audit period. The School’s audited SEFA and federal reporting package for the fiscal year ended June 30, 2023, were not submitted to the federal audit clearinghouse within 9 months after the end of the audit period. Corrective Action Plan Actions Planned – The audit of the School’s SEFA for the year ended June 30, 2023, was not completed within the 9-month reporting period. The completion of the School’s audited annual financial statements for the year ended June 30, 2023, which is a required component of the federal reporting package, was delayed beyond the 9-month deadline pending sufficient audit evidence. School management will ensure that all information required to comply with federal reporting requirements will be completed and submitted in a timely manner going forward. Official Responsible – The School’s Executive Director, Matthew Cisewski. Planned Completion Date – June 30, 2024. Disagreement With or Explanation of Finding – The School agrees with this finding. Plan to Monitor – The School’s Executive Director, Matthew Cisewski, will monitor the year-end financial closing and reporting process to ensure all federal and state reporting requirements are complied with in the future.

View Audit 318707

Finding 485989 (2023-003)

Material Weakness 2023

Aurora Charter School

MN

Reporting Internal Control / Segregation of Duties § 200.502 § 200.510

2023-003 Reporting Compliance Requirement Finding Summary The School did not have sufficient controls in place to ensure completeness of the Schedule of Expenditures of Federal Awards (SEFA) and compliance with this requirement. The School’s SEFA was understated by $507,980 in federal expenditure...

2023-003 Reporting Compliance Requirement Finding Summary The School did not have sufficient controls in place to ensure completeness of the Schedule of Expenditures of Federal Awards (SEFA) and compliance with this requirement. The School’s SEFA was understated by $507,980 in federal expenditures related to the Comprehensive Literacy Development federal program. Corrective Action Plan Actions Planned – The School has implemented new processes and procedures in 2024 which address this internal control finding to comply with the Uniform Guidance in the future. Official Responsible – Matthew Cisewski, Executive Director. Planned Completion Date – June 30, 2024. Disagreement With or Explanation of Finding – The School agrees with this finding. Plan to Monitor – The School’s Executive Director, Matthew Cisewski, will ensure the new process and procedures implemented address internal controls and procedures in this area to ensure future federal grant compliance.

View Audit 318707

Finding 485985 (2023-004)

Significant Deficiency 2023

City of Quincy, Illinois

IL

Reporting Internal Control / Segregation of Duties

Finding 2023-004: Reporting Compliance Federal Agency: U.S. Department of Transportation Passthrough Entity: Illinois Department of Transportation Assistance Listing Number and Federal Program: 20.106 – Airport Improvement Program Condition: During our compliance procedures, we noted that the City w...

Finding 2023-004: Reporting Compliance Federal Agency: U.S. Department of Transportation Passthrough Entity: Illinois Department of Transportation Assistance Listing Number and Federal Program: 20.106 – Airport Improvement Program Condition: During our compliance procedures, we noted that the City was not completing, reviewing, and submitting the necessary reports outlined in the Compliance Requirements shown in Uniform Guidance (2 CFR Part 200) for the Airport Improvement Program. Plan: The City Comptroller will meet with the Airport Director regularly to discuss the necessary reports required to be submitted to stay in compliance with the federal funding agency’s grant requirements. Prior to submission, the City Comptroller will review the reports with the Airport Director and then the necessary reports should be submitted on time and contain all the necessary information as outlined in the granting agency’s compliance requirements. Anticipated Date of Completion: Fiscal Year Ending April 30, 2024

View Audit 318702

Finding 485984 (2023-003)

Significant Deficiency 2023

City of Quincy, Illinois

IL

Subrecipient Monitoring Reporting Internal Control / Segregation of Duties

Finding 2023-003: Grant Reporting, Reconciliation, and Monitoring Condition: During audit fieldwork, we noted that the City does not reconcile grants throughout the fiscal year, thus requiring many journal entries to properly adjust revenues and record grant accruals and deferrals at year-end. Plan:...

Finding 2023-003: Grant Reporting, Reconciliation, and Monitoring Condition: During audit fieldwork, we noted that the City does not reconcile grants throughout the fiscal year, thus requiring many journal entries to properly adjust revenues and record grant accruals and deferrals at year-end. Plan: The City Comptroller’s Office and the Treasurer’s Office will act together as a central location for grant activity. The appropriate offices will work together with each of the City’s departments to reconcile and appropriately manage and report grant activity throughout the year. Anticipated Date of Completion: Fiscal Year Ending April 30, 2024

View Audit 318702

Finding 485983 (2023-002)

Significant Deficiency 2023

City of Quincy, Illinois

IL

Reporting Internal Control / Segregation of Duties

Finding 2023-002: Material Journal Entries Condition: During audit fieldwork, our testing resulted in material journal entries to be posted to properly state the City’s financial statements. Plan: The City Comptroller, along with staff, will review year-end adjustments as part of the audit preparati...

Finding 2023-002: Material Journal Entries Condition: During audit fieldwork, our testing resulted in material journal entries to be posted to properly state the City’s financial statements. Plan: The City Comptroller, along with staff, will review year-end adjustments as part of the audit preparation process and work to reduce the number of entries proposed by the auditors and prepare fully adjusted financial statements prior to audit fieldwork Anticipated Date of Completion: Fiscal Year Ending April 30, 2024

View Audit 318702

Finding 485982 (2023-001)

Material Weakness 2023

City of Quincy, Illinois

IL

Cash Management Reporting Internal Control / Segregation of Duties

Finding 2023-001: Restatement to Fund Balance Condition: During audit fieldwork, our testing resulted in a restatement of fund balance to correct prior year accruals and deferrals related to property taxes, accounts payable, grant receivables, etc. that were not included on the unadjusted trial bala...

Finding 2023-001: Restatement to Fund Balance Condition: During audit fieldwork, our testing resulted in a restatement of fund balance to correct prior year accruals and deferrals related to property taxes, accounts payable, grant receivables, etc. that were not included on the unadjusted trial balances Plan: The City will implement internal controls to properly record necessary accruals and deferrals on a timely basis prior to audit fieldwork. Additionally, the City Comptroller should provide monthly reviews of the financial statements Anticipated Date of Completion: Fiscal Year Ending April 30, 2024

View Audit 318702

Corrective Action Plans

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