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State of Missouri Single Audit Corrective Action Plan Year Ended June 30, 2023 State Agency: Department of Health and Senior Services Audit Finding Number: 2023-012 CACFP Subrecipient Reimbursements Name of the contact person responsible for corrective action: Sarah Walker, Bureau Chief An...
State of Missouri Single Audit Corrective Action Plan Year Ended June 30, 2023 State Agency: Department of Health and Senior Services Audit Finding Number: 2023-012 CACFP Subrecipient Reimbursements Name of the contact person responsible for corrective action: Sarah Walker, Bureau Chief Anticipated completion date for corrective action: The agency does not agree with the audit findings or believes that corrective action is not required. Explanation and specific reasons are as follows: CACFP Subrecipient Reimbursements DHSS disagrees. The DHSS through BCFNA maintains a strong system of internal controls over meal reimbursements to CACFP facilities/sponsors to ensure costs are allowable and supported. The system is in compliance with Uniform Guidance and USDA program requirements. The system includes subrecipient monitoring based on risk assessments per the substance and spirit of Uniform Guidance, initial and ongoing training and technical assistance opportunities, and reviews of invoices. Throughout the SAO’s finding they repeatedly acknowledge that the BCFNA monitoring process is in compliance with Nutritionist Manual which is based on USDA requirements, but is somehow not in compliance with broader federal requirements. This goes against the accepted hierarchy of federal compliance guidance which says that 2 CFR 200 Uniform Grant Guidance is broader and less specific than the higher ranking requirements set forth by specific federal grant funders and awards. The SAO has not noted any specific noncompliance with federal requirements regarding subrecipient monitoring. The SAO’s finding noted the DHSS could enhance or improve its process but not that it is out of compliance with federal requirements for subrecipient monitoring. The SAO is trying to hold DHSS to a higher standard than what is federally required. The DHSS’ strong system of internal controls which is documented in the Nutritionist Manual is in compliance with federal regulations and is used as a best practice by the USDA for other states. The report from the most recent USDA Management Evaluation Report for Fiscal Year 2023 issued November 2023 stated “The FNS determined that the SA Monitoring of Sponsors and SA Oversight of Sponsor Monitoring’s has adequate management controls in place for administering the CACFP in accordance with Federal regulations. The FNS staff reviewed SA practices that included detailed SA review forms, spreadsheets that provided extra oversight, and written procedures detailing the monitoring process. The SA provides online CACFP trainings along with a handbook to institutions that detail policies and procedures governed by the SA. The SA developed an extensive tracking system in addition to a very thorough review tool that contains meal component and pattern calculation. The SA conducts oversight of the review process and tracks each step to confirm completion of any follow up required of institution. The SA CACFP training resources and online modules were reviewed and evaluated to ensure it contained the correct information and up to date policies and procedures. The FNS staff reviewed the SA policies and procedures and interviewed key SA staff regarding procedures for each respective area of this Section. All files reviewed are compliant with Program requirements. The FY 2023 CACFP ME review did not identify any significant reportable issues.” This entitlement program provides reimbursements for nutritious meals and snacks to organizations that serve eligible children and adults. CACFP processes an average of 700 claims per month and provided healthy meals in Missouri to over 31 million children and adults in 2023. The increased claim testing and recoupment suggested by the SAO would create a significant barrier to participation for sponsors/facilities (many of which are small child care centers, day care homes, emergency shelters and adult day care centers) which is prohibited by USDA. Reviewing supporting documentation with every individual reimbursement claim at the time of submission as suggested in the finding is not feasible given the number of reimbursement claims processed monthly by program staff already functioning at capacity. Neither is it required by Uniform Guidance, the USDA or standard subrecipient monitoring procedures. The BCFNA already requires claims to be paid on a reimbursement basis rather than in advance and performs various reviews of the claims in CNPWeb, so the additional step of requiring supporting documentation with every reimbursement claim at the time of submission is unnecessary and is intended as a specific condition to remedy high risk subrecipients per 2 CFR 200.208. Furthermore, BCFNA offers technical assistance training and reviews in addition to regular monitoring reviews. In addition to the edit checks within the CNPWeb system which validate such things as capacity limits and licensing, BCFNA staff has, and continues to perform, additional verification such as spot-checks for inconsistencies (i.e. a greater number of enrolled participants as compared to licensed or total capacity or suspicious claim irregularities or patterns). Each claim submitted also requires a certification of truthfulness, accuracy, completeness with potential criminal, civil or administrative penalties in accordance with U.S. Code Title 18, Section 1001 and Title 31, Sections 3729-3730 and 3801-3812. As noted by the SAO, the risk based monitoring approach implemented by BCFNA has been effective in identifying significant issues and claim errors in recent years. The USDA established an acceptable level of risk with respect to the CACFP program and provided approved risk management processes and requirements. DHSS disagrees with the methodology the SAO used in its calculations. Out of the SAO’s test sample of 60 monitoring reviews, only 9 of the overclaims were over the $600 threshold of acceptable risk set by the USDA. 7 CFR 226.8(f): In conducting management evaluations, reviews, or audits in a fiscal year, the State agency, FNS, or OIG may disregard an overpayment if the overpayment does not exceed $600. A State agency may establish, through State law, regulation or procedure, an alternate disregard threshold that does not exceed $600. The SAO left the inflated error percentage in the body of the finding despite repeated requests and only included the lower suggested rates in footnote 4. The SAO also did not explain how their test of monitoring reviews performed by BCFNA, instead of a sample of claims submitted, was representative of CACFP reimbursements that would lend to projecting to the total population. BCFNA monitors using a risk-based approach as required and in response to known erroneous claims and to proactively address issues. A sample of monitoring reviews is proportionally more likely to include a higher number of claims with discrepancies. For example, fifty five percent of the monitoring reviews completed during fiscal year 2023 were graded as a B or C and were give additional technical assistance and/or monitoring follow up as a result.
View Audit 321142 Questioned Costs: $1
The Municipality will review the procedures to implement and correct the finding.
The Municipality will review the procedures to implement and correct the finding.
023-005 –ELIGIBILITY Material Weakness/Material Noncompliance Auditee’s Response and Planned Corrective Action The Authority hired a new Executive Director in November 2023. Under new management, the Authority provided training to necessary staff and will discuss with the third-party management c...
023-005 –ELIGIBILITY Material Weakness/Material Noncompliance Auditee’s Response and Planned Corrective Action The Authority hired a new Executive Director in November 2023. Under new management, the Authority provided training to necessary staff and will discuss with the third-party management company to ensure compliance with 24 CFP 960.259 in the future. Planned Implementation Date of Corrective Action: Immediately Person Responsible for Corrective Action: Kayla Potter, Executive Director
2023-004 –REPORTING: PERFORMANCE REPORTING Material Weakness/Material Noncompliance Auditee’s Response and Planned Corrective Action The Authority hired a new Executive Director in November 2023. Under new management, the Authority provided training to necessary staff and will discuss with the th...
2023-004 –REPORTING: PERFORMANCE REPORTING Material Weakness/Material Noncompliance Auditee’s Response and Planned Corrective Action The Authority hired a new Executive Director in November 2023. Under new management, the Authority provided training to necessary staff and will discuss with the third-party management company to ensure compliance with 24 CFP 985 in the future. Planned Implementation Date of Corrective Action: Immediately Person Responsible for Corrective Action: Kayla Potter, Executive Director
A. Current Findings on the Schedule of Findings, Questioned Costs and Recommendations 1. Finding 2023-1 a. Comments on the Finding and Each Recommendation Management agrees with the finding. b. Action(s) Taken or Planned on the Finding All findings have been corrected.
A. Current Findings on the Schedule of Findings, Questioned Costs and Recommendations 1. Finding 2023-1 a. Comments on the Finding and Each Recommendation Management agrees with the finding. b. Action(s) Taken or Planned on the Finding All findings have been corrected.
2019-01: Segregation of Duties Name of contact person: Rhonda Gordon, Program Coordinator Corrective Action: Duties and functions will be reviewed to determine where segregation needs to occur. The duties will be separated as much as possible and alternative controls will be implemented to com...
2019-01: Segregation of Duties Name of contact person: Rhonda Gordon, Program Coordinator Corrective Action: Duties and functions will be reviewed to determine where segregation needs to occur. The duties will be separated as much as possible and alternative controls will be implemented to compensate for lack of segregation. However, the risk of not segregating certain duties is not worth the additional costs. Nonfinancial employees will be trained and provide some assistance. Proposed completion date: The Board will implement the above procedure immediately.
Finding 498333 (2023-002)
Significant Deficiency 2023
Views of Responsible Officials: Management concurs with the recommendation. See the corrective action plan.
Views of Responsible Officials: Management concurs with the recommendation. See the corrective action plan.
Views of Responsible Officials: Management agrees with the finding and will implement changes to its accounting system to comply with the auditor’s recommendation. This change will be implemented for any drawdowns that are submitted for CY2024. Management will use a sub-ledger In QuickBooks to more ...
Views of Responsible Officials: Management agrees with the finding and will implement changes to its accounting system to comply with the auditor’s recommendation. This change will be implemented for any drawdowns that are submitted for CY2024. Management will use a sub-ledger In QuickBooks to more accurately generate reports that provide detail of the expenses that are being charged to and reimbursed by the federal government. With each drawdown, the finance manager will generate reports from the sub-ledger and the executive director will confirm that the sub-ledger ties to expenses that should be charged to the corresponding federal award before submission.
Finding 2023-001 – Internal control deficiency over Activities Allowed or Unallowed, Allowable Costs/Cost Principles, Period of Performance, Reporting, and Special Tests and Provisions. Condition: Management did not design effective internal controls to retain documentation to evidence the operati...
Finding 2023-001 – Internal control deficiency over Activities Allowed or Unallowed, Allowable Costs/Cost Principles, Period of Performance, Reporting, and Special Tests and Provisions. Condition: Management did not design effective internal controls to retain documentation to evidence the operating effectiveness of the internal controls over the projects and related expenses submitted to FEMA for reimbursement. Current Status: In progress. Resolution: Management will develop and implement additional internal controls to ensure documentation is retained to evidence the operating effectiveness of the internal controls. These internal controls will ensure expenses included in FEMA grant applications are reported completely and accurately. The additional internal controls will include a reconciliation of application expense detail to final paid invoices along with a notation that each expense is allowed to be included in the FEMA submission. The reconciliation will be reviewed and approved by the Cottage Health Director of Finance prior to final FEMA submission and evidence of the review will be retained. Contact Person: Lawrence Thomas, Director of Corporate Finance Anticipated Completion Date: November 29, 2024
Finding 498294 (2023-006)
Significant Deficiency 2023
City staff will contact all Community Based Organizations (CBOs) that received Emergency Rental Assistance 2 funding to determine if they were required to complete a Single Audit per the Single Audit Act. This communication will include, if applicable, a request that they submit the organizations mo...
City staff will contact all Community Based Organizations (CBOs) that received Emergency Rental Assistance 2 funding to determine if they were required to complete a Single Audit per the Single Audit Act. This communication will include, if applicable, a request that they submit the organizations most recent audit for review by staff. Should a Single Audit identify any findings or other deficiencies, staff will ask the CBO to provide an update as to the status of the deficiency and if it has been appropriately addressed. Staff will document this communication in the electronic file of the CBO who was required to complete a Single Audit.
The Human Services Department The Human Services Department has acknowledged the issue identified regarding timesheet pre-approvals and will take immediate steps to address the issue. HSD will ensure that proxy timesheet approvers are properly assigned in cases where the primary supervisor is unavai...
The Human Services Department The Human Services Department has acknowledged the issue identified regarding timesheet pre-approvals and will take immediate steps to address the issue. HSD will ensure that proxy timesheet approvers are properly assigned in cases where the primary supervisor is unavailable on the day payroll approval is due. HSD will maintain compliance with payroll policies and ensure the accuracy of timesheet approvals. Office of Housing The Office of Housing has acknowledged the finding regarding timesheet pre-approvals and will take immediate steps to address the issue. Office of Housing will ensure that proxy timesheet approvers are properly assigned in cases where the primary supervisor is unavailable on the day payroll approval is due. This adjustment will be incorporated into the previous improved practices, eliminating the need for pre-approving timesheets. By ensuring that proxy approvers are in place, the department will maintain compliance with payroll policies and ensure the accuracy of timesheet approvals. Parks and Recreation Department The Parks and Recreation Department acknowledges the finding regarding timesheet preapprovals and will ensure that proxy timesheet approvers are assigned moving forward as part of the department's ongoing commitment to improved practices. In addition, the department would like to clarify that the pre-approval noted occurred before the implementation of the current corrective action plan, which addressed the prior year's finding. The department reassures the State Auditor's Office (SAO) that the newly adopted practices, which prevent preapprovals, will continue to be strictly followed, ensuring compliance and accuracy in payroll processing, even during pay periods that coincide with holidays.
View Audit 321037 Questioned Costs: $1
Finding 498271 (2023-003)
Significant Deficiency 2023
HSD acknowledges the identified weakness and implemented an updated Accounts Payable control procedure in 2024, that includes an additional standard monthly report and review process to ensure that reimbursements are processed with the required 30-day period.
HSD acknowledges the identified weakness and implemented an updated Accounts Payable control procedure in 2024, that includes an additional standard monthly report and review process to ensure that reimbursements are processed with the required 30-day period.
14.155 – Mortgage Insurance for the Purchase or Refinancing of Existing Multifamily Housing Projects Condition During testing, we identified that certain tenants had an improper amount of rent calculated and applied to their rental agreement or paid an incorrect amount. Recommendation Procedures sho...
14.155 – Mortgage Insurance for the Purchase or Refinancing of Existing Multifamily Housing Projects Condition During testing, we identified that certain tenants had an improper amount of rent calculated and applied to their rental agreement or paid an incorrect amount. Recommendation Procedures should be reviewed to ensure that all tenants pay an accurate amount for their rental agreements. Comments on the Finding The Organization is aware of the oversight and will strive to improve the process in the future. Action Taken As of the date of this notice, processes have been implemented for the Fiscal Manager or Executive Director to complete a review of all rent calculations prior to sending them to the third party HUD contractor for inclusion on form HUD-50059. Additionally, all applicable staff have been trained on the timelines associated with implementing rent increases.
Name of contact person: Brenda Lano, Executive Director Corrective Action: The Organization continues to work with the various cities and counties to obtain grant agreements and document if there is not an agreement. The Organization is also actively working with their auditor to improve communicat...
Name of contact person: Brenda Lano, Executive Director Corrective Action: The Organization continues to work with the various cities and counties to obtain grant agreements and document if there is not an agreement. The Organization is also actively working with their auditor to improve communication during the audit so a late filing does not occur again. We expect the issue will be mitigated for the 2023 audit. Completion Date: The Organization has already adopted this corrective action.
Finding 498251 (2023-003)
Significant Deficiency 2023
We will ensure that going forward, processes are in place to allow for the timely submission of the financial reporting requirements. Further, we request that this finding be removed as the late filing occurred in 2024 and should be given in 2024 pursuant to AU-C 935.
We will ensure that going forward, processes are in place to allow for the timely submission of the financial reporting requirements. Further, we request that this finding be removed as the late filing occurred in 2024 and should be given in 2024 pursuant to AU-C 935.
Finding 498244 (2023-006)
Significant Deficiency 2023
The City will develop policies and procedures to ensure that all federal reporting is done timely and accurately. Also, those policies and procedures should ensure that these reports are independently reviewed before submission.
The City will develop policies and procedures to ensure that all federal reporting is done timely and accurately. Also, those policies and procedures should ensure that these reports are independently reviewed before submission.
Lack of segregation of duties. Recommendation: The Center's governing board should be cognizant of the issue and provide appropriate oversight. Management should provide reasonable oversight to accounting functions including accounts payable di...
Lack of segregation of duties. Recommendation: The Center's governing board should be cognizant of the issue and provide appropriate oversight. Management should provide reasonable oversight to accounting functions including accounts payable disbursements, reconciliations, and reporting including journal entry preparation. Action taken: The Center agrees with recommendations. The Center recongizes this deficiency due to the size of the financial department and limted resources to adequately divide duties or hire enough additional staff to completely segregate duties. The Center hired an account payable staff to the team in December 2021 to assist with work load and help create better division of duties. The Center also hired a part-time employee in August 2023 to assist with financial preparation. In May 2024 Northland hired an additional part-time employee to assist with billing data analysis. This is an ongoing process.
Finding 498240 (2023-003)
Significant Deficiency 2023
We will ensure that going forward, processes are in place to allow for the timely submission of the financial reporting requirements. Further, we request that this finding be removed as the late filing occurred in 2024 and should be given in 2024 pursuant to AU-C 935.
We will ensure that going forward, processes are in place to allow for the timely submission of the financial reporting requirements. Further, we request that this finding be removed as the late filing occurred in 2024 and should be given in 2024 pursuant to AU-C 935.
Finding 498204 (2023-002)
Significant Deficiency 2023
We will ensure that going forward, processes are in place to allow for the timely submission of the financial reporting requirements. Further, we request that this finding be removed as the late filing occurred in 2024 and should be given in 2024 pursuant to AU-C 935.
We will ensure that going forward, processes are in place to allow for the timely submission of the financial reporting requirements. Further, we request that this finding be removed as the late filing occurred in 2024 and should be given in 2024 pursuant to AU-C 935.
We will ensure that going forward, processes are in place to allow for the timely submission of the financial reporting requirements. Further, we request that this finding be removed as the late filing occurred in 2024 and should be given in 2024 pursuant to AU-C 935.
We will ensure that going forward, processes are in place to allow for the timely submission of the financial reporting requirements. Further, we request that this finding be removed as the late filing occurred in 2024 and should be given in 2024 pursuant to AU-C 935.
Federal Agency Name: Department of Homeland Security Pass-Through Entity: State of Iowa Homeland Security & Emergency Management Federal Financial Assistance Listing #97 .039 Program Name: Hazard Mitigation Grant Program Finding Summary: The Cooperative does not have an internal control system desi...
Federal Agency Name: Department of Homeland Security Pass-Through Entity: State of Iowa Homeland Security & Emergency Management Federal Financial Assistance Listing #97 .039 Program Name: Hazard Mitigation Grant Program Finding Summary: The Cooperative does not have an internal control system designed to provide for a complete and accurate schedule of federal expenditures of federal awards (the schedule) being audited. We requested our auditors to assist with the preparation of the schedule and the accompanying notes to the schedule. Corrective Action Plan: It is not cost effective to have an internal control system designed to provide for the preparation of the schedule of federal expenditures of federal awards and the accompanying notes to the schedule. We requested that our auditors, Eide Bailly, LLP, prepare the schedule and accompanying notes. We have designated a member of management to review the drafted schedule and accompanying notes to the schedule. Responsible Individuals: Mark Vander Pol, Office Manager and Jeff TenNapel, General Manager Anticipated Completion Date: Ongoing
Federal Agency Name: Department of Homeland Security Pass-Through Entity: State of Iowa Homeland Security & Emergency Management Federal Financial Assistance Listing #97.039 Program Name: Hazard Mitigation Grant Program Finding Summary: In three of three quarterly reports tested, the Cooperative im...
Federal Agency Name: Department of Homeland Security Pass-Through Entity: State of Iowa Homeland Security & Emergency Management Federal Financial Assistance Listing #97.039 Program Name: Hazard Mitigation Grant Program Finding Summary: In three of three quarterly reports tested, the Cooperative improperly excluded information on the total funds expended to date lines for the federal, state, local and total categories. Corrective Action Plan: Future quarterly reporting will include reporting of total funds expended for applicable line items. General Manager will review quarterly submissions before submitting to Homeland Security. Responsible Individuals: Mark Vander Pol, Office Manager and JeffTenNapel, General Manager Anticipated Completion Date: October 2024
Finding 498187 (2023-002)
Significant Deficiency 2023
Effective immediately, our management company changed the process that office managers get invoices submitted and paid, which will guarantee the Chief Financial Analyst gets financial statements out before the 15th of each month. This will allow time to get the quarterly reports completed and sent t...
Effective immediately, our management company changed the process that office managers get invoices submitted and paid, which will guarantee the Chief Financial Analyst gets financial statements out before the 15th of each month. This will allow time to get the quarterly reports completed and sent to the USDA.
Views of Responsible Officials and Planned Corrective Action: We concur. Management continues to evaluate the current controls related to reporting to ensure amounts are appropriately stated. Even if lost revenues for the January 1, 2023 through June 30, 2023 time period are appropriately reduced ...
Views of Responsible Officials and Planned Corrective Action: We concur. Management continues to evaluate the current controls related to reporting to ensure amounts are appropriately stated. Even if lost revenues for the January 1, 2023 through June 30, 2023 time period are appropriately reduced to zero, the Hospital had $7,855,000 of unused lost revenues following submission #4, well in excess of the $1,326,000 of funding received in Period 5 requiring substantiation.
View Audit 320933 Questioned Costs: $1
Finding Reference Number: 2023-005 Description of Finding: The organization does not have a control requiring internal review with signature approval of the Schedule of Expenditures of Federal Awards before submitting to external auditors. Statement of Concurrence or Nonconcurrence: The organization...
Finding Reference Number: 2023-005 Description of Finding: The organization does not have a control requiring internal review with signature approval of the Schedule of Expenditures of Federal Awards before submitting to external auditors. Statement of Concurrence or Nonconcurrence: The organization concurs with the audit finding. Corrective Action: The organization’s procedures regarding the Schedule of Expenditures of Federal Awards included the CFO create it and the CEO review it; however, it did not include a signature approval by CFO and CEO before submitting to external auditors. The organization has now included the signature approval in its procedures. Name of Contact Person: Cathy Scheirman CFO 520.623.5511 x248 cathys@tucsonymca.org Projected Completion Date: The corrective action plan has been completed.
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