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Finding Number: 2023-013 Federal Program: 21.027, US Department of Treasury, COVID-19 – Coronavirus State and Local Fiscal Recovery Fund (CSLFRF) Condition Per Auditor: The County entered into intergovernmental agreements with local communities using the revenue loss provision of the County’s CSLFRF...
Finding Number: 2023-013 Federal Program: 21.027, US Department of Treasury, COVID-19 – Coronavirus State and Local Fiscal Recovery Fund (CSLFRF) Condition Per Auditor: The County entered into intergovernmental agreements with local communities using the revenue loss provision of the County’s CSLFRF award. Those contracts contained subrecipient language/provisions. The County did not have adequate controls in place to ensure that the form and substance of these agreements were in compliance with the intended nature of the relationship and/or the requirements of the federal award. Planned Corrective Action: Management does not agree with this finding. As noted in the Condition of this finding itself, the agreements in question are intergovernmental agreements, clearly labeled as such. They specifically state they are funding each project with SLFRF funds under the Revenue Replacement Category (Category 6.1). Section 4.01 states “Project Funds must be used for eligible activities for revenue replacement funds as described in the SLFRF final rules, regulations, and guidance.” As Management informed the auditor before auditor edited its preliminary finding to reflect this, “as described in the SLFRF final rules, regulations, and guidance” under 6.1 there are no subrecipients by definition as the County itself is the beneficiary. The County is being "made whole" for calculated revenue loss due to the pandemic under this category; therefore, once the funds are obligated and spent by the County the purpose has been satisfied. The entity receiving those funds would not have subrecipient obligations. FAQ 13.14 confirms this understanding. The communities enter into subrecipient agreements on an annual basis with the County and are very familiar with the format of such agreements. Those agreements always state clearly that they are subrecipient agreements in the title and the introductory paragraph. The communities also enter into intergovernmental agreements with the County on an annual basis. Therefore, they are aware that these two types of agreement are distinct. In this case the agreements are clearly labeled as intergovernmental agreements in the title and the introductory paragraph and there is no mention of subrecipient status in the body of the agreement. In fact, Section 4.05, Relationship of Parties, states “Relationship of the Community to the County is, and will continue to be, that of an independent contractor.” In the subrecipient agreements the County enters into with these communities on an annual basis this clause says the relationship is that of a subrecipient. Therefore, the agreement is clear on the relationship and the communities would know to consult the County if there is any question of compliance requirements. Any language requiring compliance with provisions applicable to subrecipients was paired with the qualifier "applicable". For example Article IX requires compliance with laws only “as applicable”. This is catch-all language and is good legal practice to include for contingencies. In this case, the program being a new federal program, the County intentionally included this catch-all language referencing compliance with 2 CFR 200 (Uniform Guidance) “as applicable” and required the community to “provide any disclosures required by law.” to allow itself the ability to enforce should the laws, rules, or regulations be interpreted in a certain manner to be applicable or even changed. This is based on experience with programs such as the Neighborhood Stabilization Program through HUD where such occurrences were noted. Consequently; the County believes it would actually be irresponsible not to include such language. As far as the recommendation of increased guidance to contracted communities, given the increased guidance available now the County has provided such guidance as needed. Auditor seems to indicate that the communities “may improperly conclude they are subject to certain compliance requirements, including but not limited to incorrectly concluding they are required to report expenditures incurred under the agreements on their schedule of expenditures of federal awards, which could further lead to those communities incorrectly concluding they are subject to the requirement to obtain a single audit and/or incorrect major program determinations being made in conjunction with their single audit engagements.” The finding is essentially noting that if these communities conclude that they have a subrecipient relationship and that the Uniform Guidance is applicable to them as subrecipients it is an improper conclusion. Given the wide availability of FAQs and guidance on this topic, Management agrees it would be an improper conclusion. Anticipated Completion Date: 9/30/23 Responsible Contact Person: Haaris Ahmad
Finding Number: 2023-012 Federal Program: 21.027, US Department of Treasury, COVID-19 – Coronavirus State and Local Fiscal Recovery Fund (CSLFRF) Condition Per Auditor: The County did not have adequate controls in place to ensure funds transferred to a component unit were not reported to the Treasur...
Finding Number: 2023-012 Federal Program: 21.027, US Department of Treasury, COVID-19 – Coronavirus State and Local Fiscal Recovery Fund (CSLFRF) Condition Per Auditor: The County did not have adequate controls in place to ensure funds transferred to a component unit were not reported to the Treasury until the component unit met the criteria for obligated the funds. As a result, the County reported, to Treasury, $10,000,000 as obligated based on an agreement between the County and a discreetly presented component unit of the County prior to those funds meeting the definition of obligated. Planned Corrective Action: Management has updated the determination of the relationship with the Drains Commission, a separate legal entity, and subsequently adjusted the SEFA to report the current expenditures of the project. The Treasury report will be adjusted in the next reporting period. Anticipated Completion Date: 6/30/24 Responsible Contact Person: Shauntika Bullard
Finding Number: 2023-010 Federal Program: 21.023, US Department of Treasury, COVID-19 – Emergency Rental Assistance Condition Per Auditor: The County’s controls over general ledger to Schedule of Expenditures of Federal Awards (“SEFA”) and beneficiary payment database reconciliation did not identify...
Finding Number: 2023-010 Federal Program: 21.023, US Department of Treasury, COVID-19 – Emergency Rental Assistance Condition Per Auditor: The County’s controls over general ledger to Schedule of Expenditures of Federal Awards (“SEFA”) and beneficiary payment database reconciliation did not identify several adjustments that were needed to both the general ledger and the SEFA. Planned Corrective Action: Management will update processes and controls to ensure completeness of grant activity is received for review and reconciliation. Anticipated Completion Date: 6/30/25 Responsible Contact Person: Shauntika Bullard
Finding 2023-003: Noncompliance with Reporting Requirements under the Federal Funding Accountability and Transparency Act (FFATA) Audit Finding: The Fund works with subrecipients and some of its subawards require compliance with the FFATA requirement. Corrective Action Plan: See Corrective Acti...
Finding 2023-003: Noncompliance with Reporting Requirements under the Federal Funding Accountability and Transparency Act (FFATA) Audit Finding: The Fund works with subrecipients and some of its subawards require compliance with the FFATA requirement. Corrective Action Plan: See Corrective Action Plan for Finding 2023-001, which will also address this finding. Person(s) responsible for implementation of the corrective action plan: Monica A. Garrison, Senior Vice President Finance & Treasurer. Hillina Fetehawoke, Director of Accounting & Financial Reporting. Anticipated completion date: June 2024
In years prior, the Boys & Girls Clubs of Central Illinois has consistently managed our internal accounting systems and federal grant reporting without incident while working with a 3rd party accounting firm. In 2022 we incorporated an internal fiscal director role to aid in those efforts. The Boar...
In years prior, the Boys & Girls Clubs of Central Illinois has consistently managed our internal accounting systems and federal grant reporting without incident while working with a 3rd party accounting firm. In 2022 we incorporated an internal fiscal director role to aid in those efforts. The Board of Directors & CEO later discovered a host of performance deficiencies, accounting and reporting errors made during the time period of FY23; causing the negative impact to our FY23 audit which has resulted in two audit findings. Effective October 2023, the Board of Directors along with the CEO took immediate action by making the following changes to ensure no future issues will negatively impact our internal accounting and reporting systems. 1 - The Fiscal Director role was permanently eliminated upon further investigation. 2 - BGCCIL hired a 3rd party, accredited CPA firm who now performs all fiscal duties including general ledger classifications, producing monthly financial reports, and other important accounting functions.
In years prior, the Boys & Girls Clubs of Central Illinois has consistently managed our internal accounting systems and federal grant reporting without incident while working with a 3rd party accounting firm. In 2022 we incorporated an internal fiscal director role to aid in those efforts. The Boar...
In years prior, the Boys & Girls Clubs of Central Illinois has consistently managed our internal accounting systems and federal grant reporting without incident while working with a 3rd party accounting firm. In 2022 we incorporated an internal fiscal director role to aid in those efforts. The Board of Directors & CEO later discovered a host of performance deficiencies, accounting and reporting errors made during the time period of FY23; causing the negative impact to our FY23 audit which has resulted in two audit findings. Effective October 2023, the Board of Directors along with the CEO took immediate action by making the following changes to ensure no future issues will negatively impact our internal accounting and reporting systems. 1 - The Fiscal Director role was permanently eliminated upon further investigation. 2- BGCCIL hired a 3rd pary accredited CPA firm who now performs all fiscal duties including general ledger classifications, producing monthly financial reports, and other important accounting functions.
Because there was not an existing Residual Receipt account, management has started the process to open an account. The bank required minutes from the Board of Directors of Tomball Pines, Inc. before they would open the account. A board meeting was held April 9, 2024 and the motion was made, second...
Because there was not an existing Residual Receipt account, management has started the process to open an account. The bank required minutes from the Board of Directors of Tomball Pines, Inc. before they would open the account. A board meeting was held April 9, 2024 and the motion was made, seconded, and approved to open the needed account. Management will be making the deposit the week of April 15, 2024.
View of Responsible Officials and Corrective Action Plan The COO and CEO are responsible for ensuring that all SF-425s are submitted within 90-days of fiscal year’s completion. As a corrective action, the COO will create an Outlook reminder to complete the SF-425 on time, and the Outlook reminder wi...
View of Responsible Officials and Corrective Action Plan The COO and CEO are responsible for ensuring that all SF-425s are submitted within 90-days of fiscal year’s completion. As a corrective action, the COO will create an Outlook reminder to complete the SF-425 on time, and the Outlook reminder will be on both the COO, and CEO’s calendars. Corrective Action Plan Timeline The corrective action will be completed by April 5, 2024. Designation of Employee Position Responsible for Meeting Deadline The COO is responsible for meeting the April 5, 2024 deadline.
2023-001 – Nutrition and Transportation Reporting Statement of Condition – The Organization filed billing reports for nutrition and transportation services to AgeSmart Community Resources that did not agree to the nutrition and transportation detail records. Cause of Condition – The Organization’s ...
2023-001 – Nutrition and Transportation Reporting Statement of Condition – The Organization filed billing reports for nutrition and transportation services to AgeSmart Community Resources that did not agree to the nutrition and transportation detail records. Cause of Condition – The Organization’s staff erroneously made mathematical errors and incorrectly billed all 5-meal deliveries as 7-meal deliveries. Recommendation – The Organization should consider the costs and benefits of hiring additional expertise or training existing staff, as well as, implementing a monitoring process to ensure the Organization’s billings are accurate and in accordance with the procedures prescribed by the funding agency. View of Responsible Officials and Planned Corrective Action: The Organization will review procedures and processes around reporting of units; implementing a double check system between the clerk and supervisor to reduce the risk of human error in logging units. Review of practices regarding adjustments to units will be completed and procedures will be updated. Quarterly audits will be implemented to ensure accuracy. Anticipated Date of Completion: Ongoing analysis
View Audit 304542 Questioned Costs: $1
All of the required deposits to the replacement reserve were not made during the year. Response: The new management company will make deposits in 2024 for the shortfalls.
All of the required deposits to the replacement reserve were not made during the year. Response: The new management company will make deposits in 2024 for the shortfalls.
During the audit the Project did not have the proper insurance coverage as required by the capital advance agreement for the entire year. The Project obtained fidelity bond insurance coverage effective February 27, 2023, however the policy explicitly excluded certain officials and employees require...
During the audit the Project did not have the proper insurance coverage as required by the capital advance agreement for the entire year. The Project obtained fidelity bond insurance coverage effective February 27, 2023, however the policy explicitly excluded certain officials and employees required by the capital advance agreement. Response: The new management company understands the requirements and are in the process of obtaining all required coverage.
All significant general ledger accounts were not reconciled for the year ended December 31, 2023. Response: The Project had a change in the management company in December 2023 and during the transition, some accounts were not reconciled. In the future, the new management company will ensure all si...
All significant general ledger accounts were not reconciled for the year ended December 31, 2023. Response: The Project had a change in the management company in December 2023 and during the transition, some accounts were not reconciled. In the future, the new management company will ensure all significant accounts are reconciled timely.
Corrective Action Plan: In response to the findings regarding the missed monthly deposits totaling $19,221 in the replacement reserve account, the organization has taken the following corrective measures. Firstly, the required deposits have been made to rectify the deficit.Additionally, the organiza...
Corrective Action Plan: In response to the findings regarding the missed monthly deposits totaling $19,221 in the replacement reserve account, the organization has taken the following corrective measures. Firstly, the required deposits have been made to rectify the deficit.Additionally, the organization has requested a waiver from HUD for the monthly deposits to the replacement reserve accounts for 2024. Also, a request for an increase in subsidy for 2024 will be submitted to the HUD Account Executive to address the cash flow issue within the organization.To prevent similar occurrences in the future, a robust monitoring and review process has been implemented such as quarterly monitoring of deposits to ensure compliance with HUD requirements. All communications with HUD and monitoring activities will be documented meticulously for audit purposes and continuous evaluation of these measures will help prevent the likelihood of recurrence. Completion Date: Immediately Contact Person: Jacqueline C. Gholson, Co - Manager Caseal J. Medley, Co - Manager
View Audit 304468 Questioned Costs: $1
FINDING NO. 2023-001 – Quarterly Financial Reports Statement of Condition: Quarterly financial statements not submitted to loan servicer within the 60 day period allotted, as the first quarter report was not submitted until November 4, 2022. Recommendation: Project Management must submit the quart...
FINDING NO. 2023-001 – Quarterly Financial Reports Statement of Condition: Quarterly financial statements not submitted to loan servicer within the 60 day period allotted, as the first quarter report was not submitted until November 4, 2022. Recommendation: Project Management must submit the quarterly financial information within the prescribed timeframe. Project Management should review its internal controls and ensure that systems are in place so that the filing requirement will be met in future quarters and years. Management’s Response: There is no disagreement with the audit finding.
Finding 394560 (2023-003)
Significant Deficiency 2023
CDBG -Entitlement Grants Cluster -Assistance Listing No. 14.CDBG Recommendation: Strengthen policies and procedures to ensure that reporting due dates are determined by the Federal regulations and that internal processes mirror the requirements of the Federal regulations. Explanation of disagreeme...
CDBG -Entitlement Grants Cluster -Assistance Listing No. 14.CDBG Recommendation: Strengthen policies and procedures to ensure that reporting due dates are determined by the Federal regulations and that internal processes mirror the requirements of the Federal regulations. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: Staff will submit revised FY 2023 reports as applicable, update procedures to ensure report deadlines are based on the subaward execution date and update internal controls to ensure deadlines are met per the Federal regulations. Name(s) of the contact person(s) responsible for corrective action: Therese Stanley, Grants Compliance Manager, 239-252-2959 Planned completion date for corrective action plan: May 30, 2024
GRANT REPORTING Finding: The Audit Certification Memo for fiscal year 2022 (due June 30, 2023) and the Section 3 Summary Report (due July 31, 2023) were not filed with the DOC. Further the Contract and Subcontract Activity report (due on April 15, 2023) was not filed timely (filed September 7, 2023...
GRANT REPORTING Finding: The Audit Certification Memo for fiscal year 2022 (due June 30, 2023) and the Section 3 Summary Report (due July 31, 2023) were not filed with the DOC. Further the Contract and Subcontract Activity report (due on April 15, 2023) was not filed timely (filed September 7, 2023). With regards to the reimbursement request, the initial reporting was rejected due to noncompliance with procurement provision in the grant agreement. As a result, the DOC denied $74,813 of the City’s request as ineligible expenditures. Management’s Response: The city has filled a position focused mainly on projects & grants reporting. The employee will verify all grant requirements are fulfilled on time and according to the grant contract. Processes are being put in place that will include conversations with the project manager which will ensure they are notified of the necessary steps to fulfill the requirements, as well as final finance review to ensure compliance. Implementation Timeline: April 1, 2024 Responsible Party: Patrisha Draycott, Chief Financial Officer
The delay in submitting the data collection form was an exceptional occurrence caused by a delay in obtaining upper management approval of the Single Audit Report. We anticipate submitting the data collection form to the Department of Housing and Urban Development on the same day following the compl...
The delay in submitting the data collection form was an exceptional occurrence caused by a delay in obtaining upper management approval of the Single Audit Report. We anticipate submitting the data collection form to the Department of Housing and Urban Development on the same day following the completion of the Audited Financial Statements.
Considering that the timely submission of the Progress Reports is subject to the approval of the Progress Report of the previous month by PRDOH and their CDBGDR Program Grant Manager, there will be a meeting between PRDOH’s CDBG-DR GM and PRHFA staff. It is expected that both teams will be able to:-...
Considering that the timely submission of the Progress Reports is subject to the approval of the Progress Report of the previous month by PRDOH and their CDBGDR Program Grant Manager, there will be a meeting between PRDOH’s CDBG-DR GM and PRHFA staff. It is expected that both teams will be able to:- Resolve the discrepanciesbetween the SRA and GCPtimelines for submittingthe Progress Report, and- Explore alternativeapproaches to mitigate theconstraint wherein PRHFAis required to await PRDOHapproval of the previousProgress Report beforebeing able to submit a newone, particularly in casewhere PRDOH approval isdelayed.Regarding the training for PRHFA’s staff related to the Progress Report drafting, reviewing, and approving, this personnel receives training as needed being the most recent on March 5, 2024. PRHFA is constantly looking for new staff to recruit, as needed, and is committed to submitting the information on time.
Finding Number: 2023-001 Condition: The Corporation withdrew cash from the tenant security account during May and June 2023 in the amounts of $7,000 and $7,500, respectively, causing the balance of the security deposit liability to exceed the asset balance at month-end. These funds were used to fund...
Finding Number: 2023-001 Condition: The Corporation withdrew cash from the tenant security account during May and June 2023 in the amounts of $7,000 and $7,500, respectively, causing the balance of the security deposit liability to exceed the asset balance at month-end. These funds were used to fund operating costs on behalf of the Corporation. Planned Corrective Action: Management acknowledges noncompliance in the current fiscal year and has taken measures to improve internal controls over compliance. Management deposited funds to the security deposit cash account in order to meet the regulatory agreement requirement before year-end. Contact person responsible for corrective action: Laura Selby, Executive Vice President - COO Anticipated Completion Date: March 25, 2024
Auditee’s Response and Planned Corrective Action Since February 2022 the Fee Accountant has paid the bills monthly and made sure to reimburse the Revolving Fund accordingly if funds are available. Unfortunately, the State Program has not had a rate increase with all the changes going on. Their cash...
Auditee’s Response and Planned Corrective Action Since February 2022 the Fee Accountant has paid the bills monthly and made sure to reimburse the Revolving Fund accordingly if funds are available. Unfortunately, the State Program has not had a rate increase with all the changes going on. Their cash flow is very low and a rate increase is being implemented for the FY24 Budget. There is another rate increase taking effect for FY25. This should allow the State program to reimburse the Revolving Fund fully. As of March 2024 the State owes less than $25,000 to the Revolving Fund. Planned Implementation Date of Corrective Action: July 2023 Person Responsible for Corrective Action: Windsor Locks Management Team working with the Fee Accountant monthly.
View Audit 304378 Questioned Costs: $1
The security deposit was refunded to the tenant on the 34th day subsequent to their move-out. Management has taken measures to improve internal controls over compliance related to tenant security deposit refunds.
The security deposit was refunded to the tenant on the 34th day subsequent to their move-out. Management has taken measures to improve internal controls over compliance related to tenant security deposit refunds.
Finding Number: 2023-01 Condition: The Corporation failed to make the required reserve for replacements deposits in the current fiscal year. The Corporation made 10 deposits, therefore 2 months were underfunded. Planned Corrective Action: Management has made two deposits during the year ended Septem...
Finding Number: 2023-01 Condition: The Corporation failed to make the required reserve for replacements deposits in the current fiscal year. The Corporation made 10 deposits, therefore 2 months were underfunded. Planned Corrective Action: Management has made two deposits during the year ended September 30, 2024 in order to correct the funding of the replacement reserve account. Contact person responsible for corrective action: Jill Kolb, Vice President – Housing Accounting Anticipated Completion Date: September 30, 2024
OPPORTUNITY RESOURCE FUND CORRECTIVE ACTION PLAN YEAR ENDED DECEMBER 31, 2023 Opportunity Resource Fund respectfully submits the following corrective action plan for the year ended December 31, 2023. Auditor: Maner Costerisan 2425 E. Grand River Avenue, Suite 1 Lansing, MI 48912 Audit period: Year e...
OPPORTUNITY RESOURCE FUND CORRECTIVE ACTION PLAN YEAR ENDED DECEMBER 31, 2023 Opportunity Resource Fund respectfully submits the following corrective action plan for the year ended December 31, 2023. Auditor: Maner Costerisan 2425 E. Grand River Avenue, Suite 1 Lansing, MI 48912 Audit period: Year ended December 31, 2023. Contact Person: Kevin Fitzerald, Vice President of Finance & CFO The findings from December 31, 2023, schedule of findings and questioned are discussed below. The findings are numbered consistently with the number assigned in the schedule. Finding: Federal Award Finding: Finding 2023-001 Recommendation: We recommend Opportunity Resource Fund, in the future, implement a review process of applicant information to ensure that all data input into the loan system is accurate. Action to be taken: Opportunity Resource Fund (OppFund) will be implementing a review process to ensure that application information properly input it into the loan servicing system accurately. OppFund will be doing this in a two-part process first by hiring a loan closing position, (starts April 1st) one of their responsibilities will be to review the application and loan servicing software to ensure accuracy. The other part will be to automate the process to ensure that the manual errors do not occur.
The Association will update the procedures for review and posting of invoices for proper cutoff dates. Currently, our cutoff policy is the end of the month. CADA will amend the Fiscal Policy to add that accounting staff will carefully review all invoices to ensure that CADA has reconciled each autho...
The Association will update the procedures for review and posting of invoices for proper cutoff dates. Currently, our cutoff policy is the end of the month. CADA will amend the Fiscal Policy to add that accounting staff will carefully review all invoices to ensure that CADA has reconciled each authorized invoice for payment in the correct fiscal year, with proper coding and authorizations. Accounting staff will check with service providers/vendors to ensure that CADA has received all invoices/purchase orders for a fiscal year prior to final closing of the fiscal year. The CADA Executive Director and Finance Director will present recommended Fiscal Policy changes to the Association’s Fiscal and Executive Committees for their review and input. After the Committees’ review and input, the Chairs of The Executive and Finance Committees will present the recommended changes to the Fiscal Policies to CADA’s full Board for approval. Upon Board approval of the Amended Fiscal policy, the Finance Director will train the accounting staff about the fiscal policies changes and instruct staff to implement the policy changes. The Executive Director and Fiscal Director will provide oversight throughout the year including requiring staff to check with service providers to ensure that the vendors have submitted all invoices for the fiscal year and all purchase orders reconciled or cleared by end of fiscal year. Proposed Completion Date: June 30, 2024.
View Audit 304318 Questioned Costs: $1
Finding 2023-003 - Reporting w Compliance (Repeat Finding: 2022-008, 2021-006) Significant Deficiency Condition: The School District did not complete and submit their audit to the Federal Audit Clearinghouse by the due date of March 31, 2024, Questioned Costs: None. Criteria: 2 CFR §200.512 of t...
Finding 2023-003 - Reporting w Compliance (Repeat Finding: 2022-008, 2021-006) Significant Deficiency Condition: The School District did not complete and submit their audit to the Federal Audit Clearinghouse by the due date of March 31, 2024, Questioned Costs: None. Criteria: 2 CFR §200.512 of the Uniform Guidance requires an entity expending more than $750,000 of federal funds within the calendar year to submit a data collection form and reporting package by a due date that is the earlier of 30 calendar days after receipt of the auditor's report(s) or nine months after the end of the audit period. Cause: During FY 2020-21, 2021-22, and 2022-23 the School District employed multiple Business Managers. This affected providing documentation In a timely manner. Effect: Late filing of the data _collection forn1 results in noncompliance with requirements of Uniform Guidance which could lead to sanctions by funding agencies. Recommendation: We recommend the School District become familiar with reporting requirements for each award and Implement procedures to begin audit preparation work earlier in the fiscal year to ensure reports are filed within the nine-month reporting deadline set faith by Uniform Guidance, Views of Responsible Officials: The Superintendent and the Business manager concur with this finding. We are unable to find an auditor in the state of Montana and will continue to work with the current audit company to ensure that the audit is completed in a timely manner and by the deadlines required by the state.
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