Corrective Action Plans

Finding 496413 (2023-001)

Material Weakness 2023

Kosciusko County

IN

Internal Control / Segregation of Duties Cash Management Material Weakness § 200.302 § 200.303 § 200.328 § 200.329 § 200.344

FINDING 2023-001 Finding Subject: Coronavirus State and Local Fiscal Recovery Funds – Reporting Summary of Finding: The Kosciusko County Sheriff's Office applied for the Indiana Local Body Camera Grant (ILBC). The sheriff’s office was awarded this grant on January 1, 2023, with a grant cost amount o...

FINDING 2023-001 Finding Subject: Coronavirus State and Local Fiscal Recovery Funds – Reporting Summary of Finding: The Kosciusko County Sheriff's Office applied for the Indiana Local Body Camera Grant (ILBC). The sheriff’s office was awarded this grant on January 1, 2023, with a grant cost amount of up to $31,920. This grant is a reimbursable grant through the Indiana Department of Homeland Security. The period of performance was from January 1, 2023, to December 31, 2023. The Kosciusko County Sheriff's Office ordered body-worn cameras and equipment on April 26, 2023. The invoice for the cameras and the camera equipment was paid on July 14, 2023. The Kosciusko County Sheriff's Office then submitted a Reimbursement Claim Form on September 11, 2023. The Reimbursement Claim Form shows the Sheriff's Office incorrectly requested the full $31,920. They received $31,920 from the Indiana Department of Homeland Security on September 27, 2023. However, the county had only spent $9,581 of the grant money towards the body camera purchase. Therefore, there is a remaining balance in the fund of $22,339 as of December 31, 2023. Due to the period of performance, the county should have reimbursed the Indiana Department of Homeland Security $22,339. On May 9, 2023, the Sheriff's Office grant administrator submitted a Program Report for the ILBC grant. This report was filed without an implemented internal control or evidence of a review. The report was completed and submitted by the Sheriff's Office grant administrator. The report incorrectly indicated that all expenditures had been completed. As of the date of the submission, the county had not purchased the bodyworn cameras and all federal funds had not been expended. Contact Person Responsible for Corrective Action: Alyssa Schmucker Contact Phone Number and Email Address: 574-372-2325 aschmucker@kosciusko.in.gov View of Responsible Officials: We concur with the findings identified. Description of Corrective Action Plan: The Kosciusko Sheriff’s Office, grant coordinator will contact IDHS for instruction on how to return the $22,339.00 and prepare a claim to be processed by the Kosciusko County Auditor’s office. The grant balances are submitted each month by departments these are checked and confirmed by the Auditor’s Office this one was overlooked in the review process. The person who applied for the grant no longer works for the county. It is believed the new person handling the grants was not aware that this grant even existed. The Grant Administrator(s) will have someone sign off on the grant report submissions and forward all reports to the Auditor’s Office. Anticipated Completion Date: It is anticipated that this will be completed as soon as the information to return the funds is received from the state and the claim is submitted to the Auditor for payment. This claim will be paid as soon as it is received. On or before 12/31/2024.

View Audit 319325

Finding 496410 (2023-001)

Material Weakness 2023

Full Harvest Housing, Inc.

IA

Allowable Costs / Cost Principles Questioned Costs Special Tests & Provisions

CORRECTIVE ACTION PLAN FOR THE YEAR ENDED MARCH 31, 2023 Title 2, U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance), Subpart F, Section 511 – Audit Findings Follow-up requires the auditee t...

CORRECTIVE ACTION PLAN FOR THE YEAR ENDED MARCH 31, 2023 Title 2, U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance), Subpart F, Section 511 – Audit Findings Follow-up requires the auditee to prepare a corrective action plan to address each audit finding included in the current year auditor’s reports. The Corrective Action Plan for Current Year Findings present our corrective action plan for the Financial Statement and/or Federal Award Findings described in the accompanying Schedule of Findings and Questioned Costs for the period ended March 31, 2023. Finding 2023-001 Responsible Party Name: Tamara Wallace Position: Executive Director – Management Agent Telephone Number: 816-233-4250 Federal Agency Department of Housing and Urban Development Federal Program Supportive Housing for the Elderly (Section 202) Compliance Requirements A/B - Activities Allowed or Unallowed and Allowable Costs/Cost Principles, C – Cash Management, E – Eligibility, L – Reporting, and N – Special Tests and Provisions Finding Type Financial Statement and Federal Awards Auditee’s Comment on Finding We agree with the auditor’s finding. Corrective Action Management reported that the failure(s) involved records related to the period managed by the predecessor management company. We will request and keep all required documentation from HUD and establish processes and procedures to ensure compliance with the Regulatory Agreement. Anticipated Completion Date September 30, 2024

View Audit 319318

Finding 496404 (2023-002)

Material Weakness 2023

Urban Affairs Coalition

PA

Allowable Costs / Cost Principles Material Weakness Reporting

U.S. Department of Treasury U.S. Department of Health and Human Services 2023-002 Material Weakness in Internal Control over Compliance 21.023- Emergency Rental Assistance 93.940 – HIV Prevention Activities Health Department Based 93.959 – Block Grants for Prevention and Treatment of Substance Abu...

U.S. Department of Treasury U.S. Department of Health and Human Services 2023-002 Material Weakness in Internal Control over Compliance 21.023- Emergency Rental Assistance 93.940 – HIV Prevention Activities Health Department Based 93.959 – Block Grants for Prevention and Treatment of Substance Abuse City of Philadelphia, Office of Addition Services (Contract # 22-20624-01) City of Philadelphia, Division of HIV Health (Contract #21-20003-02) Philadelphia Housing Development Corporation Condition: As part of the audit management was to provide us with a complete final trial balance where balances agree to the supporting schedules, reconciliations and documentation provided by management. We noted that the trial balance and general ledger detail reports originally provided by management were (a) delayed, (b) included unreconciled material account balances, (c) multiple journal entries (material and not material), (c) transactions missing from the trial balance, and (d) some reconciliations that either did not agree with the trial balance or individual transactions could not be traced back from the documentation provided to the general ledger. This had caused delays in the completion of the audit, preparation of financial statements, and associated disclosures and the timely arrival of our audit and single audit conclusion. Recommendation: We recommend that management implement policies and procedures as it relates to the reconciliation of accounts, tracking of transactions, and regular review to ensure that calculations of general ledge account balances are accurate and complete. In addition, we continue to recommend that management revisit its financial closing and reporting policies to include updates to its procedures for year-end closes and the timing of when final journal entries and analysis are performed. Explanation of Disagreement with Audit Finding: There is no disagreement with the audit finding. Action taken in response to finding: Management acknowledges the delays in producing timely and accurate presentation of financial information and shall update and implement procedures to ensure timely and accurate delivery of a complete final trial balance where balances agree to the supporting schedules, reconciliations, and documentation. These procedures include timely recording of revenues and expense, regular reconciling of bank records against accounts, and other efforts to significantly reduce journal entries outside of appropriate period. anagement is aware of and in the process of improving the reporting from the new financial accounting software. The scripts used for processing and reporting on transactions are currently under review. Management aims to resolve these issues in the current Fiscal Year. In addition, Management has recruitment and retention efforts underway to sufficiently staff the finance organization. Planned completion date for corrective action plan: June 30, 2024

View Audit 319315

Finding 496401 (2023-003)

Significant Deficiency 2023

Esperanza Health Center, Inc.

PA

Questioned Costs Allowable Costs / Cost Principles Cash Management

View of Responsible Officials: Based on the perspectives provided by management and officials, the finance department has initiated specific corrective measures to ensure strict adherence to reporting PRF and centralization of documentation. As our organization expands, we will evaluate our document...

View of Responsible Officials: Based on the perspectives provided by management and officials, the finance department has initiated specific corrective measures to ensure strict adherence to reporting PRF and centralization of documentation. As our organization expands, we will evaluate our documentation processes to create clear standard operating procedures (SOPs). We have employed a grants analyst who will define distinct responsibilities for grants reporting, establish a central repository, and reconcile both FTE and non-FTE expenditures and receipts, including cash receipts, drawdowns and invoice allocation. Project codes will be crucial in driving this process within our financial system, Blackbaud. Management will report on progress of these actions to the Finance Committee of the Board of Directors at its monthly meetings.

View Audit 319296

Finding 496392 (2023-002)

Material Weakness 2023

The Geneva Foundation

WA

Questioned Costs Special Tests & Provisions Subrecipient Monitoring

Finding 2023-002 Material weakness in internal controls and non-compliance related to special tests and provisions. Federal Agency: Department of Defense Pass-Through: N/A Assistance Listing Number: 12.420 Assistance Listing Name: Military Medical Research and Development Award Number: W81XWH-18-2-0...

Finding 2023-002 Material weakness in internal controls and non-compliance related to special tests and provisions. Federal Agency: Department of Defense Pass-Through: N/A Assistance Listing Number: 12.420 Assistance Listing Name: Military Medical Research and Development Award Number: W81XWH-18-2-0048 Period of Award: September 15, 2018 - September 14, 2024 Federal Agency: Department of Defense Pass-Through: N/A Assistance Listing Number: 12.750 Assistance Listing Name: Uniformed Services University Medical Research Projects Award Number: HU00011920056 Period of Award: October 1, 2019 - September 30, 2024 Federal Agency: U.S. Department of Health and Human Services Pass-Through: University of Utah Assistance Listing Number: 93.213 Assistance Listing Name: Research & Training in Complementary & Alternative Medicine Award Number: 10055443-02 Period of Award: September 22, 2020 - August 31, 2024 Criteria The National Institutes of Health and the Department of Defense require prior approval for a significant change in the status of key personnel including but not limited to withdrawal from the project; absence for any continuous period of 3 months or more; reduction of the level of effort devoted to project by 25 percent or more from what was approved in the initial competing year award. Condition/Context The Foundation’s internal controls require management to obtain prior approval for any significant changes or shortfalls of 25 percent or more of stated level of efforts in key personnel, from the award sponsor. During our testing, out of 22 grants tested, we noted 3 grants with instances where individuals identified as key personnel in the agreement either left the Foundation or had over 25% shortfall of level of efforts, and the sponsor was not timely notified. Our sample was not a statistical sample. Contact Person(s): Kristen Bacon, Director, Finance and Accounting. Corrective action planned: Geneva implemented the following increased measures in FY23 -- LOE operating procedures and JAMIS reports were developed to ensure that material LOE variances were detected, discussed, and if applicable, escalated to the sponsor. The Finance Office will revisit current LOE reports and if necessary, will enhance reporting to improve more visibility and completeness of LOE data by program. The Finance Office will also conduct a refresher training. As stated in the FY22 audit, management believes that review of financial and LOE reporting are clearly defined, documented, and are in compliance with accounting principles generally accepted in the United States of America and sponsor requirements; however, management will seek to strengthen the documentation, reporting, training, and communications between Finance and the Department of Programs. If process deficiencies are identified or Standard Operating Procedures are not current, updates will be made, and end user compliance training will be rolled out to ensure a clear understanding. Anticipated completion date September 30, 2024

View Audit 319290

Finding 496389 (2023-002)

Significant Deficiency 2023

Youthprise

MN

Internal Control / Segregation of Duties Questioned Costs Reporting § 200.303

FINDINGS—FEDERAL AWARD PROGRAMS AUDITS U.S. Department of Justice Children Exposed to Violence – Assistance Listing No. 16.818 2023-002: Internal Controls over Compliance and Other Matters L. Reporting Internal Control Over Major Programs SIGNIFICANT DEFICIENCIES Recommendation: We recommend Y...

FINDINGS—FEDERAL AWARD PROGRAMS AUDITS U.S. Department of Justice Children Exposed to Violence – Assistance Listing No. 16.818 2023-002: Internal Controls over Compliance and Other Matters L. Reporting Internal Control Over Major Programs SIGNIFICANT DEFICIENCIES Recommendation: We recommend Youthprise document its review and approval process over reports and document report submission dates. Action Taken: Management agrees with this finding and has since corrected the deficiency effective Fall 2023. If questions arise regarding this plan, please call Talbrey Benson-Goupil at 612-464-8485. Sincerely yours, Talbrey Benson-Goupil Finance Director

View Audit 319284

Finding 496383 (2023-001)

Significant Deficiency 2023

Community Council of Greater Dallas

TX

Allowable Costs / Cost Principles Cash Management Reporting

Finding 2023-001: Allowable costs – significant deficiency in internal controls over compliance and compliance finding. Management Response CCGD was issued monitoring findings by HHSC for the monitoring period October 2021 (FY 21) -November 2022 (FY 22) in April 2023. As a result of that finding, CC...

Finding 2023-001: Allowable costs – significant deficiency in internal controls over compliance and compliance finding. Management Response CCGD was issued monitoring findings by HHSC for the monitoring period October 2021 (FY 21) -November 2022 (FY 22) in April 2023. As a result of that finding, CCGD received a finding in its 2022 audit. Because of the timing of the findings, as noted in the 2023 audit report, there was not time to resolve the issue before 2023. Therefore, even though the below described plan was implemented in 2023, immediately upon receipt of the initial finding, CCGD was still issued a finding in its FY2023 audit. The notification was received in the 7th month of fiscal year 2023, the following plan has been implemented. o Timesheet and GL mismatch i. Management Response: 1. Perform an audit of existing setup of HRIS-Paycom system to determinecause of mismatch 2. If needed, reimplement Paycom with required setup or change vendors 3. All departments along with respective service categories werereestablished in Paycom to only display employees applicable servicecategories based their respective grants. 4. Conduct quarterly audits of timesheets and GL to ensure there are nomismatches. 5. Time study was performed on quarterly basis to ensure individualperformance complies with funders mandate. ii. Progress Update - GL and Timesheet Mismatch: 1. Audit of existing setup to review the following: a. Department(s) - revised department names/descriptions i. Made changes to all applicable employees’ setup. b. Home Allocation(s) – revised home allocation(s)i. Revised/edited the default home allocation description ii. Assigned correct default home allocation to employees c. Service Categories i. Revised/edited service categories assigned to each department 2. Observations: a. Following Paycom updates, CCGD experienced technical challenges due to software glitches which continued to result in timesheet and GL mismatches. CCGD is continuing to work with Paycom to identify and eliminate the problem. b. CCGD subsequently sought assistance from Paycom in the troubleshooting process. 3. Departmental training of timekeeping process a. Personalized standard operating procedures used b. Real-time examples/instruction provided to staff in training session(s) 4. Post-training audits conducted to include: a. Timecard/sheet review b. GL review and comparison of timecards and sheetsiii. Future Steps and Anticipated Timeline: 1. Continuation of post-training audits to include: a. Timecard/sheet review b. GL review and comparison of timecards and sheets 2. With an anticipated deadline completion date of December 31, 2023, for adherence of full compliance, CCGD effectively implemented system updates prior to this deadline to ensure payroll processing is now based on the actual time and effort performed. iv. Progress Update – Performance Activity Report 1. To provide further back up to time and effort, an additional option in Paycom was enabled for staff to enter notes on day-to-day activity. 2. Departmental training on this goal was performed and completed as of March 31, 2024. 3. Continuation of post-training audits to include: a. Timecard/sheet review b. GL review and comparison of timecards and sheets v. Post implementation plan and observation: CCGD is fully committed to complying with funders and audit standards. Furthermore, CCGD will continue to monitor and identify any potential errors in its payroll reporting to bring a timely solution if required. Furthermore, minor reporting errors occur in payroll GL reports on a random basis. The errors appear to be technical, and as such, we are currently working with Paycom to resolve this issue. Additionally, CCGD will continue to perform time study to ensure that all salary expenses and allocations are adhered to the respective program budget. Parties Responsible: Chief Executive Officer, Chief Financial Officer, and Director - Human Resources

View Audit 319280

Finding 496372 (2023-001)

Significant Deficiency 2023

Open Door Health Center

MN

Reporting Significant Deficiency Internal Control / Segregation of Duties § 200.303

Health Center Cluster – Assistance Listing Numbers 93.224 & 93.527 Recommendation: We recommend implementing certain quality checks while reviewing UDS before submission like comparing total expenses in Table 8A to underlying financial statements. Explanation of disagreement with audit finding: Ther...

Health Center Cluster – Assistance Listing Numbers 93.224 & 93.527 Recommendation: We recommend implementing certain quality checks while reviewing UDS before submission like comparing total expenses in Table 8A to underlying financial statements. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action planned in response to finding: Management will implement additional checks in quality review process of UDS prior to submission. Name(s) of the contact person(s) responsible for corrective action: Jennifer Beckius, CFO Planned completion date for corrective action plan: December 2024

View Audit 319258

Finding 496371 (2023-001)

Significant Deficiency 2023

Banner Health

AZ

Internal Control / Segregation of Duties Questioned Costs Reporting

Internal control deficiency and noncompliance over reporting of lost revenues attributable to coronavirus reported in the provider relief fund report. Management has reviewed this finding and agrees with the conclusion. There will be no additional provider relief fund reports submitted given this w...

Internal control deficiency and noncompliance over reporting of lost revenues attributable to coronavirus reported in the provider relief fund report. Management has reviewed this finding and agrees with the conclusion. There will be no additional provider relief fund reports submitted given this was the final report submitted to substantiate the payments received. However, if this program begins again, management will implement a control to ensure lost revenues are not duplicated. The entity will work with the grantor regarding the questioned costs identified. Contact Person: Paul Nolde-Morrissey, Corporate Controller Expected Completion Date: September 30, 2024

View Audit 319252 Questioned Costs: $1

Finding 496321 (2023-003)

Material Weakness 2023

Town of Seymour, Connecticut

CT

Reporting § 200.512

The Town will implement internal controls to ensure the filing deadline is met. Jason Vieira of the Towns Finance Department is responsible for the corrective action plan.

View Audit 319219

Finding 496315 (2023-003)

Material Weakness 2023

City of Rialto

CA

Subrecipient Monitoring Reporting Significant Deficiency

FFATA Reporting Federal Award Information Federal Agencies: U.S. Department of Housing and Urban Development Program Title: Community Development Block Grants/Entitlement Grants Award Numbers: B-22-MC-06-0571, B-21-MC-06-0571 Award Years: 2021-2022 Name of Contact Person: Margaret Herrero, Deput...

FFATA Reporting Federal Award Information Federal Agencies: U.S. Department of Housing and Urban Development Program Title: Community Development Block Grants/Entitlement Grants Award Numbers: B-22-MC-06-0571, B-21-MC-06-0571 Award Years: 2021-2022 Name of Contact Person: Margaret Herrero, Deputy Director of Finance Corrective Action: The City will include the review of the FFATA reports in their preparation of the CDBG reports and ensure that the FAATA reports are prepared and submitted in a timely manner when subcontracts exceed the $30,000 threshold. Proposed Completion Date: Fiscal Year ended June 30, 2024.

View Audit 319207

Finding 496313 (2023-006)

Significant Deficiency 2023

City of Ingleside, Texas

TX

Reporting Significant Deficiency

Finding 2023-111-006-Grant Agreement Compliance - CDBG Reporting Program Name/Assistance Listing Title: CDBG Assistance Listing Number: 14.228 Contact Person: Caron S. Vela, Director of Finance Anticipated Completion Date: March 31, 2025 Planned Corrective Action: Finance staff will update grant man...

Finding 2023-111-006-Grant Agreement Compliance - CDBG Reporting Program Name/Assistance Listing Title: CDBG Assistance Listing Number: 14.228 Contact Person: Caron S. Vela, Director of Finance Anticipated Completion Date: March 31, 2025 Planned Corrective Action: Finance staff will update grant management policies and procedures to include monthly or quarterly reconciliations of grant expense and will maintain complete grant files so that an accurate and complete so that correct reporting can be submitted as required.

View Audit 319202

Finding 496311 (2023-004)

Significant Deficiency 2023

City of Ingleside, Texas

TX

HUD Housing Programs Reporting Significant Deficiency

Finding 2023-111-004-Federal Reporting-Community Development Block Grant (CDBG) Program Name/Assistance Listing Title: CDBG Assistance Listing Number: 14.228 Contact Person: Caron S. Vela, Director of Finance Anticipated Completion Date: March 31, 2025 Planned C01Tective Action: Finance staff will r...

Finding 2023-111-004-Federal Reporting-Community Development Block Grant (CDBG) Program Name/Assistance Listing Title: CDBG Assistance Listing Number: 14.228 Contact Person: Caron S. Vela, Director of Finance Anticipated Completion Date: March 31, 2025 Planned C01Tective Action: Finance staff will review grant management policies and procedures to ensure the city is correctly submitting federal reporting to HUD as required.

View Audit 319202

Finding 496310 (2023-003)

Significant Deficiency 2023

City of Ingleside, Texas

TX

Reporting Significant Deficiency

Finding 2023-111-003-Federal Reporting Compliance - American Rescue Plan (ARP) Program Name/Assistance Listing Title: ARP Assistance Listing Number: 21.027 Contact Person: Caron S. Vela, Director of Finance Anticipated Completion Date: March 31, 2025 Planned Corrective Action: Finance staff will upd...

Finding 2023-111-003-Federal Reporting Compliance - American Rescue Plan (ARP) Program Name/Assistance Listing Title: ARP Assistance Listing Number: 21.027 Contact Person: Caron S. Vela, Director of Finance Anticipated Completion Date: March 31, 2025 Planned Corrective Action: Finance staff will update grant management policies and procedures to include monthly or quarterly reconciliations of grant expense and will maintain complete grant files so that an accurate and complete SEFA that ties to the general ledger can be prepared annually for audit and required reporting.

View Audit 319202

Finding 496308 (2023-002)

Significant Deficiency 2023

City of Ingleside, Texas

TX

Reporting Significant Deficiency

Finding 2023-III-002-Federal Audit Clearinghouse Submission Program Name/Assistance Listing Title: CDBG/ARP Assistance Listing Number: 14.228/21.027 Contact Person: Caron S. Vela, Director of Finance Anticipated Completion Date: March 31, 2025 Planned Corrective Action: Finance staff will update gra...

Finding 2023-III-002-Federal Audit Clearinghouse Submission Program Name/Assistance Listing Title: CDBG/ARP Assistance Listing Number: 14.228/21.027 Contact Person: Caron S. Vela, Director of Finance Anticipated Completion Date: March 31, 2025 Planned Corrective Action: Finance staff will update grant management policies and procedures to include monthly or quarterly reconciliations of grant expense and will maintain complete grant files so that an accurate and complete SEFA that ties to the general ledger can be prepared annually for audit and that the SEFA will be completed in a timely manner and the Single Audit will be submitted to the FAC as required.

View Audit 319202

Finding 496306 (2023-001)

Material Weakness 2023

City of Ingleside, Texas

TX

Reporting

Finding 2023-III-001-Schedule of Expenditures of Federal Awards (SEFA) Program Name/Assistance Listing Title: CDBG/ARP Assistance Listing Number: 14.228/21.027 Contact Person: Caron S. Vela, Director of Finance Anticipated Completion Date: March 31, 2025 Planned Corrective Action: Finance staff will...

Finding 2023-III-001-Schedule of Expenditures of Federal Awards (SEFA) Program Name/Assistance Listing Title: CDBG/ARP Assistance Listing Number: 14.228/21.027 Contact Person: Caron S. Vela, Director of Finance Anticipated Completion Date: March 31, 2025 Planned Corrective Action: Finance staff will update grant management policies and procedures to include monthly or quarterly reconciliations of grant expense and will maintain complete grant files so that an accurate and complete SEFA that ties to the general ledger can be prepared annually for audit and required reporting.

View Audit 319202

Finding 496304 (2023-001)

Material Weakness 2023

Ohio Valley Regional Development Commission

OH

Reporting § 200.328

Report has been submitted, will issue a list of reporting deadlines to staff.

View Audit 319198

Finding 496301 (2023-001)

Material Weakness 2023

Housing and Services, Inc.

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

Questioned Costs 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 Questioned Costs Matching / Level of Effort / Earmarking § 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

Subrecipient Monitoring Questioned Costs 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

Corrective Action Plans

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