Corrective Action Plans

Finding 402634 (2023-011)

Significant Deficiency 2023

State of Michigan

MI

Reporting

Finding 2023-011 MDHHS - FFATA Reporting Management Views MDHHS agrees with the finding. Planned Corrective Action MDHHS updated the grantee profile in the Electronic Grants Administration and Management System (EGrAMS) with information that is obtained from the grantee and was missing or incorrec...

Finding 2023-011 MDHHS - FFATA Reporting Management Views MDHHS agrees with the finding. Planned Corrective Action MDHHS updated the grantee profile in the Electronic Grants Administration and Management System (EGrAMS) with information that is obtained from the grantee and was missing or incorrect at the time of required reporting. To ensure the query properly retrieved all required FFATA data elements, MDHHS corrected the accounting template that populates the funding source table for one of the subawards. The MDHHS Federal Reporting Section will ensure all federal grant awards are recorded in SIGMA and included on the department’s Grants Received Report. The Grants Received Report will be maintained on the department’s SharePoint site for use by those within the department. All data elements required to comply with federal funding requirements, such as FFATA, will be included on the Grants Received Report. In the event data elements are missing from the report, the MDHHS Federal Reporting Section will follow up with the awarding agency, program area, or others to update the missing data elements within 30 days of receipt of the award. The Bureau of Grants and Purchasing will use the information from the Grants Received Report to report the information in the FFATA Subaward Reporting System in accordance with FFATA requirements. Anticipated Completion Date September 30, 2024 Responsible Individual(s) Jeanette Hensler, MDHHS Steve Bendele, MDHHS

View Audit 309982

Finding 402590 (2023-010)

Material Weakness 2023

State of Michigan

MI

Subrecipient Monitoring Reporting Material Weakness

Finding 2023-010 MDE - FFATA Reporting Management Views MDE and the Michigan Department of Lifelong Education, Advancement, and Potential (MiLEAP) agree with the finding. Planned Corrective Action For part a., MDE and MiLEAP, going forward, will verify all grants will be tracked for the Federal Fu...

Finding 2023-010 MDE - FFATA Reporting Management Views MDE and the Michigan Department of Lifelong Education, Advancement, and Potential (MiLEAP) agree with the finding. Planned Corrective Action For part a., MDE and MiLEAP, going forward, will verify all grants will be tracked for the Federal Funding Accountability and Transparency Act (FFATA), reviewing all systems the grants are awarded from. For part b.1., MDE and MiLEAP will continue to coordinate with the program offices to improve the FFATA reporting process in order to submit subaward information in accordance with FFATA and other applicable federal guidance. The corrective action will begin on October 1, 2024 with an anticipated completion date of October 31, 2025. For part b.2., MDE and MiLEAP have completed FFATA reporting using the actual expenditures for the purpose of verifying subrecipients have not exceeded the awarded amounts. To meet the requirements as outlined in 2 CFR 170, MDE and MiLEAP will update the reporting process to include all key data elements, including the net dollar amount of federal funds awarded to the subawardee, including modifications. Part b.3., MDE will work with all MDE program offices and MiLEAP to include the correct program descriptions in the FFATA reporting. Anticipated Completion Date a. Completed b.1. October 31, 2025 b.2. October 31, 2025 b.3. December 31, 2024 Responsible Individual(s) Spencer Simmons, MDE Bethanie Kramer, MiLEAP

View Audit 309982

Finding 402552 (2023-031)

Significant Deficiency 2023

State of Michigan

MI

Reporting Internal Control / Segregation of Duties § 200.303

Finding 2023-031 Coronavirus State and Local Fiscal Recovery Funds, ALN 21.027 - Workfront Change Management Process Management Views DTMB agrees with the finding. Planned Corrective Action DTMB has created an enhancement tracker to track key documentation throughout the change management process...

Finding 2023-031 Coronavirus State and Local Fiscal Recovery Funds, ALN 21.027 - Workfront Change Management Process Management Views DTMB agrees with the finding. Planned Corrective Action DTMB has created an enhancement tracker to track key documentation throughout the change management process. This will ensure that DTMB maintains documentation of testing results at all stages and authorization and completion of all change order requests. DTMB has also enhanced documentation for meetings between program management and development teams. Anticipated Completion Date Completed Responsible Individual(s) Jennifer Edmonds, DTMB

View Audit 309982

Finding 402551 (2023-030)

Significant Deficiency 2023

State of Michigan

MI

Subrecipient Monitoring Reporting Internal Control / Segregation of Duties § 200.303

Finding 2023-030 Coronavirus State and Local Fiscal Recovery Funds, ALN 21.027 - Workfront Security Management and Access Controls Management Views DTMB agrees with the finding. Planned Corrective Action For part a., DTMB has implemented processes and documentation to track user access requests to...

Finding 2023-030 Coronavirus State and Local Fiscal Recovery Funds, ALN 21.027 - Workfront Security Management and Access Controls Management Views DTMB agrees with the finding. Planned Corrective Action For part a., DTMB has implemented processes and documentation to track user access requests to support approval of the system role for all Workfront users. For part b., DTMB has updated processes to ensure it maintains documentation to support the review of all privileged Workfront accounts on a semiannual basis. Anticipated Completion Date Completed Responsible Individual(s) Jennifer Edmonds, DTMB

View Audit 309982

Finding 402538 (2023-060)

None 2023

State of Michigan

MI

Special Tests & Provisions Allowable Costs / Cost Principles Reporting

Finding 2023-060 Unemployment Insurance, ALN 17.225 See Department of Labor and Economic Opportunity, Unemployment Insurance Agency - Unemployment Compensation Fund, Report on Expenditure of Federal Awards, Year Ended September 30, 2023, Corrective Action Plan, Finding 2023-003.

View Audit 309982

Finding 402536 (2023-058)

Material Weakness 2023

State of Michigan

MI

Questioned Costs Allowable Costs / Cost Principles Eligibility

Finding 2023-058 Unemployment Insurance, ALN 17.225 See Department of Labor and Economic Opportunity, Unemployment Insurance Agency - Unemployment Compensation Fund, Report on Expenditure of Federal Awards, Year Ended September 30, 2023, Corrective Action Plan, Finding 2023-001.

View Audit 309982 Questioned Costs: $1

Finding 402527 (2023-023)

Significant Deficiency 2023

State of Michigan

MI

Internal Control / Segregation of Duties Subrecipient Monitoring Reporting § 200.302

Finding 2023-023 Pandemic EBT Food Benefits, ALN 10.542 - Accuracy of Financial Reports Management Views MDHHS agrees with the finding. Planned Corrective Action The Food and Nutrition Service has ended the P-EBT program and there will be no additional expenses after February 2024. However, for th...

Finding 2023-023 Pandemic EBT Food Benefits, ALN 10.542 - Accuracy of Financial Reports Management Views MDHHS agrees with the finding. Planned Corrective Action The Food and Nutrition Service has ended the P-EBT program and there will be no additional expenses after February 2024. However, for the last report submitted during May 2024, MDHHS implemented a report review process prior to certification to ensure the P-EBT financial report information is accurate. Anticipated Completion Date Completed Responsible Individual(s) Bethany Cabanaw, MDHHS

View Audit 309982

Finding 402526 (2023-022)

Material Weakness 2023

State of Michigan

MI

Eligibility Allowable Costs / Cost Principles Material Weakness § 200.516

Finding 2023-022 Pandemic EBT Food Benefits, ALN 10.542 - Lack of Documentation for School Modality Data Reviews Management Views MDHHS disagrees that not formally documenting the review details on the log rises to the level of a material weakness and material noncompliance. MDHHS selects a sampl...

Finding 2023-022 Pandemic EBT Food Benefits, ALN 10.542 - Lack of Documentation for School Modality Data Reviews Management Views MDHHS disagrees that not formally documenting the review details on the log rises to the level of a material weakness and material noncompliance. MDHHS selects a sample of schools that submitted data and verifies the accuracy of Pandemic EBT (P-EBT) school modality data reported, documenting the schools reviewed within a log. Following the written business process, P-EBT staff first identify public information available to verify the school’s modality data such as the school’s calendar or news articles, and then reach out to school administration if public information is not available. If additional steps are required to reconcile the data, P-EBT staff document the support and results, sign off on the reconciliation, and forward to a supervisor for review. For this review period, no discrepancies were identified between what the school reported, and school websites. Since no discrepancies were noted, staff verbally communicated the review results to the manager and the log of sample items reviewed were kept within a shared drive. Planned Corrective Action MDHHS has no corrective action planned at this time as P-EBT benefit issuance ended as of May 11, 2023. No additional benefits will be issued in fiscal year 2024. Anticipated Completion Date Not applicable Responsible Individual(s) Kathy Cornell, MDHHS

View Audit 309982

Finding 402492 (2023-006)

Significant Deficiency 2023

State of Michigan

MI

Subrecipient Monitoring Cash Management Reporting § 200.303

Finding 2023-006 MDE, Security Management and Access Controls Management Views The Michigan Department of Education (MDE) agrees with the finding. Planned Corrective Action For part a., as part of the Michigan Nutrition Data (MiND) 2.0 Implementation Project, MDE will institute a mechanism to capt...

Finding 2023-006 MDE, Security Management and Access Controls Management Views The Michigan Department of Education (MDE) agrees with the finding. Planned Corrective Action For part a., as part of the Michigan Nutrition Data (MiND) 2.0 Implementation Project, MDE will institute a mechanism to capture the person to whom the access has been delegated. MDE will review the policies and procedures with department staff that is responsible for security access controls for the Next Generation Grant, Application and Cash Management System (NexSys) to ensure proper access control policies are followed. For part b., MDE will update policies and procedures to ensure review of all accounts on a semi-annual basis. For parts c. and d., MDE will continue to work with DTMB to find more efficient ways to ensure all non-privileged users are recertified and improve the technical solution to deactivate users after 18 months of inactivity. For part e., as part of the movement of the grants management unit at MDE to a different office, MDE is reviewing the policies around high-risk transactions and will update the policies to meet established standards. Anticipated Completion Date October 1, 2024 Responsible Individual(s) David Judd, MDE

View Audit 309982

Finding 402477 (2023-021)

Material Weakness 2023

State of Michigan

MI

Special Tests & Provisions Procurement, Suspension & Debarment Cash Management § 200.516

Finding 2023-021 SNAP Cluster, ALN 10.551 and 10.561 - EBT Reconciliations Management Views MDHHS disagrees that a material weakness and material noncompliance exist. MDHHS federal reporting conducts a daily reconciliation of federal draws and authorizations to retailers based on vendor EBT reports...

Finding 2023-021 SNAP Cluster, ALN 10.551 and 10.561 - EBT Reconciliations Management Views MDHHS disagrees that a material weakness and material noncompliance exist. MDHHS federal reporting conducts a daily reconciliation of federal draws and authorizations to retailers based on vendor EBT reports. In addition, MDHHS conducts a monthly reconciliation between Bridges, Bridges data warehouse, and vendor EBT reports using daily data to ensure the client information in Bridges and Bridges data warehouse is accurate. The monthly reconciliation process does not impact the federal draw because the daily reconciliation of the vendor EBT report is used for this purpose. MDHHS provided detailed and accurate descriptions of MDHHS daily and monthly EBT reconciliations to the designated federal awarding agency contacts at the United States Department of Agriculture Food and Nutrition Service Agency that are familiar with MDHHS processes and received confirmation that the current reconciliation processes in place are sufficient to comply with federal regulations. Planned Corrective Action MDHHS disagrees with the finding and does not intend to take further action. Anticipated Completion Date Not applicable Responsible Individual(s) Sara Gross, MDHHS

View Audit 309982

Finding 402465 (2023-010)

Material Weakness 2023

City of Cambridge Massachusetts

MA

Reporting Material Weakness Internal Control / Segregation of Duties § 200.303 § 200.328

The Finance department will document the reconciliation of the City's GL ARPA expenditures and obligations to the Department of Treasury ARPA reporting portal report both quarterly and annually. All reconciling adjustments and GL report documentation will be properly retained.

View Audit 309973

Finding 402459 (2023-007)

Material Weakness 2023

City of Cambridge Massachusetts

MA

Subrecipient Monitoring HUD Housing Programs Material Weakness § 200.303

The City will work with all HOPWA subrecipients to ensure that a complete and accurate CAPER is completed in the appropriate format as required by HUD. This will include a focus on inputting the correct (eg, actual expended vs. award amount) funding amount.

View Audit 309973

Finding 402457 (2023-006)

Material Weakness 2023

City of Cambridge Massachusetts

MA

Subrecipient Monitoring Allowable Costs / Cost Principles Material Weakness § 200.1 § 200.303

The City will use the contract start date (7/1) as the Obligation date, and will submit the FFATA report accordingly.

View Audit 309973

Finding 402447 (2023-003)

Significant Deficiency 2023

City of Hazelwood, Missouri

MO

Subrecipient Monitoring Reporting Allowable Costs / Cost Principles

The Finance Director and the Assistant Finance Director both attended additional training regarding the preparation of the Schedule of Expenditures of Federal Awards. A complete internal control schedule separate from the Purchasing Policy will be written and in place by June 30, 2024.

View Audit 309971

Finding 402426 (2023-003)

None 2023

Center for Cultural & Technical Interchange Between East & West, INC

HI

Subrecipient Monitoring Allowable Costs / Cost Principles Reporting § 200.332 § 200.403

Activities Allowed and Unallowed / Allowable Costs and Cost Principles Please reference Finding 2023-002 for new procedures implemented during fiscal 2024 to ensure that payroll costs are allocated properly. In reference to the non-payroll costs, the finding arose because the Center’s participant da...

Activities Allowed and Unallowed / Allowable Costs and Cost Principles Please reference Finding 2023-002 for new procedures implemented during fiscal 2024 to ensure that payroll costs are allocated properly. In reference to the non-payroll costs, the finding arose because the Center’s participant database did not store an audit trail of the on-line approvals once the award was processed. In the current fiscal year, the Center’s software consultant worked with our software provider to update our participant database to include an audit feature which provides the full approval history for awards that are completed. Reporting The FFATA report was filed in fiscal 2024. Procedures were modified to ensure that necessary information is requested from Center subaward recipients to assist in preparing the FFATA reports. Furthermore, the subaward agreement template was revised to make reference to the need for filing FFATA reports. Subrecipient Monitoring Management has revised procedures to ensure that the subaward recipients are notified of the federal assistance listing number. In addition, Finance staff have been reminded of the necessity to communicate the assistance number to our subaward recipients.

View Audit 309953

Finding 402395 (2023-101)

None 2023

Exeter Health Resources, Inc.

NH

Reporting

Accuracy of Reporting - Federal Agency: U.S. Department of Health and Human Services; Award Name: COVID-19 Provider Relief Funds; Program Year: Provider Relief Reporting Period 4; ALN No.: 93.498; Criteria: Management was responsible for reporting accurate lost revenues and COVID-related expenditure...

Accuracy of Reporting - Federal Agency: U.S. Department of Health and Human Services; Award Name: COVID-19 Provider Relief Funds; Program Year: Provider Relief Reporting Period 4; ALN No.: 93.498; Criteria: Management was responsible for reporting accurate lost revenues and COVID-related expenditures based on the terms of the grant agreement. Condition: During compliance testing, it was identified that certain lost revenues included in the final report were not accurate based on the definitions of the grant agreement. Context: The lost revenues reported for the period were not accurate. Cause: The supporting documentation retained that calculated lost revenues was $38,198 inaccurate in the revenues reported for the fourth quarter of calendar year 2021 through the third quarter of calendar year 2022. Effect: As a result of the condition, the Corporation's required reporting for this grant was misstated. Recommendation: In the future, the Corporation should ensure it implements appropriate processes and controls to ensure a review is performed prior to submission to the awarding agency. View of Responsible Officials: Management acknowledges the finding and will develop dual independent sign off procedures on all future reportings to ensure completeness and accuracy of calculations utilized within the report. Internal documentation will be adjusted accordingly.

View Audit 309928

Finding 402389 (2023-002)

None 2023

Semo Electric Cooperative

MO

Questioned Costs Allowable Costs / Cost Principles Subrecipient Monitoring

Noncompliance: Activities Allowed/Unallowed; Allowable Costs/Activities; Reporting A. Comments on Findings and Recommendations: We concur with the auditor’s findings and recommendations regarding reporting of project expenses and unidentified errors in project reconciliations completed by staff. ...

Noncompliance: Activities Allowed/Unallowed; Allowable Costs/Activities; Reporting A. Comments on Findings and Recommendations: We concur with the auditor’s findings and recommendations regarding reporting of project expenses and unidentified errors in project reconciliations completed by staff. B. Actions Taken or Planned: Management concurs. Large fiber installation project still in process at year-end. Subsequent reconciliations have been completed. Controls and other project processes have been improved to ensure more timely reconciliation of material charge-outs to the timing of the installation of material. Anticipated completion date: Completed Contact information for this finding: Amanda Burnett, Chief Financial Officer, 573-471-5821

View Audit 309920 Questioned Costs: $1

Finding 402388 (2023-001)

Material Weakness 2023

Semo Electric Cooperative

MO

Questioned Costs Subrecipient Monitoring Reporting

Material Weakness in Internal Control A. Comments on Findings and Recommendations: We concur with the auditor’s findings and recommendations regarding reporting of project expenses and unidentified errors in project reconciliations completed by staff. B. Actions Taken or Planned: Management...

Material Weakness in Internal Control A. Comments on Findings and Recommendations: We concur with the auditor’s findings and recommendations regarding reporting of project expenses and unidentified errors in project reconciliations completed by staff. B. Actions Taken or Planned: Management concurs. Large fiber installation project still in process at year-end. Subsequent reconciliations have been completed. Controls and other project processes have been improved to ensure more timely reconciliation of material charge-outs to the timing of the installation of material. Anticipated completion date: Completed Contact information for this finding: Amanda Burnett, Chief Financial Officer, 573-471-5821

View Audit 309920 Questioned Costs: $1

Finding 402387 (2023-001)

Significant Deficiency 2023

Hendersonville Housing Authority

NC

HUD Housing Programs Internal Control / Segregation of Duties Reporting

Corrective Action Plan: The Executive Director will advise the CPA of all purchases that exceed the capitalization threshold when they occur. Copies of the check(s) and invoice(s) will be scanned into the month they are paid (into the Laserfiche electronic storage system). The CPA will review the pa...

Corrective Action Plan: The Executive Director will advise the CPA of all purchases that exceed the capitalization threshold when they occur. Copies of the check(s) and invoice(s) will be scanned into the month they are paid (into the Laserfiche electronic storage system). The CPA will review the payments scanned monthly and also scan the disbursements for any that could have been missed. At the end of the fiscal year, the disbursements that meet the capitalization requirements of HAHC and RTS will be entered into the depreciation schedule. Person(s) responsible: Executive Director- Connie Stewart CPA- Barfield and Kinkead LLC Completion Date: Fiscal year ending September 30, 2024

View Audit 309918

Finding 402386 (2023-002)

Material Weakness 2023

The Water Works and Sewer Board of the Town of Sardis City, Alabama

AL

Reporting Internal Control / Segregation of Duties

Finding 2023-002 – Material Adjustments Description of Finding: The auditor found that The Entity relied on auditors to propose entries after audit procedures and had not recorded entries needed at the time of the audit. Statement of Concurrence or Nonconcurrence: Management concurs with this fi...

Finding 2023-002 – Material Adjustments Description of Finding: The auditor found that The Entity relied on auditors to propose entries after audit procedures and had not recorded entries needed at the time of the audit. Statement of Concurrence or Nonconcurrence: Management concurs with this finding. Corrective Action: The Entity will incorporate financial reporting internal controls to detect material adjustments, prevent materially misstated financial statements, and increase the accuracy of interim financial reports used by management.

View Audit 309917

Finding 402385 (2023-001)

Material Weakness 2023

The Water Works and Sewer Board of the Town of Sardis City, Alabama

AL

Internal Control / Segregation of Duties Reporting Subrecipient Monitoring

Finding 2023-001 – Segregation of Duties: Description of Finding: The auditor found that duties were not segregated in a number of areas where small adjustments to the policies of the Entity could help to further facilitate this important control. Statement of Concurrence or Nonconcurrence: Mana...

Finding 2023-001 – Segregation of Duties: Description of Finding: The auditor found that duties were not segregated in a number of areas where small adjustments to the policies of the Entity could help to further facilitate this important control. Statement of Concurrence or Nonconcurrence: Management concurs with this finding. Corrective Action: Management has issued written policies and required training of all employees that handle financial transactions and will continually evaluate processes to find ways to segregate duties where possible. Management and the board of directors will continue to oversee operations closely requiring approvals for all transactions.

View Audit 309917

Finding 402340 (2023-003)

Significant Deficiency 2023

The Corporation for Manufacturing Excellence Dba Manex

CA

Cash Management Internal Control / Segregation of Duties Allowable Costs / Cost Principles

2023-003 Finding - Federal Award - Significant Deficiency - Reporting US Department ofCommerceAL#11.611 Context and Cause - The Organization was not made aware by grants, CMTC or prior auditors that the final upload package of the federal reports and requests for reimbursement should have internal c...

2023-003 Finding - Federal Award - Significant Deficiency - Reporting US Department ofCommerceAL#11.611 Context and Cause - The Organization was not made aware by grants, CMTC or prior auditors that the final upload package of the federal reports and requests for reimbursement should have internal control oversight procedures and did not exercise such oversight. Only one individual was responsible for preparing and filing these final documents after such details were reviewed individually throughout the month by other individuals responsible for that review. The payroll time sheet review process was consistently followed, however, and there is not a process for the final processed payroll rep01ts to be reviewed by a second individual.Recommendation: We recommend management implement procedures to ensure the Uniform Grant Guidance and the Compliance Supplement requirements for controls over Reporting, Allowable Costs, and Cash Management are designed and performed. The month end checklist currently being used is a good start, and this could be enhanced by adding sections for the above items, and having specific individuals' initial and date on the checklist when the procedures are completed. A fiscal policy and procedure manual would also be a good tool. Action Taken: Manex will update fiscal Policy to include oversight on reporting to funders

View Audit 309904

Finding 402336 (2023-002)

None 2023

Homeless Assistance Leadership Organization, Inc.

WI

Allowable Costs / Cost Principles Reporting Matching / Level of Effort / Earmarking § 200.302

We agree with the finding and provide below the corrective action plan. Corrective action plan: We will provide additional training to staff responsible for tracking federal and state awards and utilize another member of management to review and approve the grant tracking spreadsheets routinely. Add...

We agree with the finding and provide below the corrective action plan. Corrective action plan: We will provide additional training to staff responsible for tracking federal and state awards and utilize another member of management to review and approve the grant tracking spreadsheets routinely. Additionally, reconciliations will be performed monthly between the grant spreadsheets and the financial reporting software.

View Audit 309901

Finding 402311 (2023-004)

Material Weakness 2023

Family Health Centers, Inc.

SC

Reporting

In Finding 2023-004, a finding reported that the Organization reported incorrect data on the Federal Financial Report submission. Management recognizes the importance of complying with federal reporting guidelines. In response to Finding 2023-004, procedures will be established to ensure that Feder...

In Finding 2023-004, a finding reported that the Organization reported incorrect data on the Federal Financial Report submission. Management recognizes the importance of complying with federal reporting guidelines. In response to Finding 2023-004, procedures will be established to ensure that Federal Financial Reports are reviewed by a person other than the preparer prior to submission to DHHS. These procedures will be implemented by the Chief Financial Officer by July 31, 2024.

View Audit 309899

Finding 401951 (2023-003)

Material Weakness 2023

Turning Point, Inc.

MI

Questioned Costs Reporting

Finding 2023-003 Condition A submission selected for testing did not agree to the underlying general ledger for the corresponding period. Multiple reports were not submitted within the contracts stated time frame Corrective Action Plan Corrective Action Planned: The finance staff are reconciling...

Finding 2023-003 Condition A submission selected for testing did not agree to the underlying general ledger for the corresponding period. Multiple reports were not submitted within the contracts stated time frame Corrective Action Plan Corrective Action Planned: The finance staff are reconciling the general ledger to the financial status reports or other grant billings each month. Name(s) of Contact Person(s) Responsible for Corrective Action: The Director of Accounting, Dawn Bonderczuk, and the Grant Accountant. Anticipated Completion Date: July 31, 2024.

View Audit 309873 Questioned Costs: $1

Corrective Action Plans

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