Corrective Action Plans

Finding 391615 (2023-004)

Significant Deficiency 2023

County of Maui

HI

Subrecipient Monitoring Reporting Significant Deficiency

Ref. No. Compliance and Internal Control over Compliance Findings 2023-004 Reporting - Significant Deficiency Recommendation The County should improve their internal control process to ensure that quarterly reports required by Section 15011 of the CARES Act are completed and submitted on a timel...

Ref. No. Compliance and Internal Control over Compliance Findings 2023-004 Reporting - Significant Deficiency Recommendation The County should improve their internal control process to ensure that quarterly reports required by Section 15011 of the CARES Act are completed and submitted on a timely basis. View of Responsible Officials and Planned Corrective Action Management concurs with the finding as it applies to the special allocation of CARES Act funds. CDBG is implementing a new software program that will improve internal process controls and program efficiency. The software will automatically generate reminder notifications to CDBG staff and subrecipients of upcoming deadlines for quarterly reports. The CDBG Specialist will follow up with a letter to subrecipient to document non-compliance and additional corrective actions, as applicable. A policy and procedures manual for this software program will also be completed. Management further adds that due to a change in administration effective January 1, 2023, the CDBG Program experienced a 100% staff changeover. End Date: Ongoing Responding Person(s): Patience M. K. Kahula, CDBG Program Director Office of the Mayor Phone No. (808) 270-7213

View Audit 302070

Finding 391599 (2023-006)

Material Weakness 2023

St. Francis School District

WI

Allowable Costs / Cost Principles Internal Control / Segregation of Duties Subrecipient Monitoring

St. Francis School District has taken steps to ensure all transactions expensed to district funds including federal and state funds are properly reviewed by appropriate parties with knowledge of allowable costs and the specific expense incurred. Prior to Items being purchased with grant funds all re...

St. Francis School District has taken steps to ensure all transactions expensed to district funds including federal and state funds are properly reviewed by appropriate parties with knowledge of allowable costs and the specific expense incurred. Prior to Items being purchased with grant funds all requests are to be approved by the budget manager who oversees the specific funds. Orders may only be placed once approval is received from the budget manager and the Director of Finance. Payment of an invoice is not to be made until service has been rendered complete or item has been received in full. Budget managers approve all invoices prior to Director of Finance reviewing for final approval of payment.

View Audit 302062

Finding 391598 (2023-001)

Significant Deficiency 2023

City of La Verne

CA

Reporting Internal Control / Segregation of Duties

The City will take proactive measures to address technical issues that may impede timely submissions. Additionally, the City will update contacts within the necessary agency promptly when staffing changes occur and work closely with relevant federal agencies to resolve technical issues and ensure co...

The City will take proactive measures to address technical issues that may impede timely submissions. Additionally, the City will update contacts within the necessary agency promptly when staffing changes occur and work closely with relevant federal agencies to resolve technical issues and ensure compliance with reporting requirements.

View Audit 302059

Finding 391584 (2023-007)

Significant Deficiency 2023

The City of New York

NY

Eligibility Internal Control / Segregation of Duties Student Financial Aid § 200.303

Finding No. 2023-007 Department(s): New York City Administration for Children’s Services Program(s): Assistance Listing Number 93.658, Foster Care – Title IV - E Corrective Action(s): • ACS will review all outstanding non-finalized Redetermination packages and re-request outstanding Court Order...

Finding No. 2023-007 Department(s): New York City Administration for Children’s Services Program(s): Assistance Listing Number 93.658, Foster Care – Title IV - E Corrective Action(s): • ACS will review all outstanding non-finalized Redetermination packages and re-request outstanding Court Orders. • Moving forward, if the hard copy Court Order has not been received by ACS within 90 days of the Permanency Hearing, ACS will request a court transcript of the Permanency Hearing. • ACS will finalize IV-E Redetermination packages if a Reasonable Effort determination finding has not been conferred within four months of the request for court action. • ACS will work with the Office of Court Administration to address challenges in timely completion of hearings and receipt of Court Orders. Anticipated Completion Date: September 2024 Person(s) Responsible for Implementation: Andrew Martin, Executive Director, Central Eligibility Office (212)-341-2816

View Audit 302042

Finding 391579 (2023-008)

Significant Deficiency 2023

The City of New York

NY

Internal Control / Segregation of Duties Reporting Significant Deficiency § 200.303

Finding No. 2023-008 Department(s): New York City Department of Health and Mental Hygiene Program(s): Assistance Listing Number 93.323, Epidemiology and Laboratory Capacity for Infectious Diseases (ELC) Corrective Action(s): DOHMH agrees with the recommendation that “DOHMH strengthen its intern...

Finding No. 2023-008 Department(s): New York City Department of Health and Mental Hygiene Program(s): Assistance Listing Number 93.323, Epidemiology and Laboratory Capacity for Infectious Diseases (ELC) Corrective Action(s): DOHMH agrees with the recommendation that “DOHMH strengthen its internal controls over the reporting process to include documented review and approval of all financial and special performance reports prior to submission within the required timeframe.” DOHMH Finance will ensure sufficient time to meet and discuss the status of spending and plans for remaining balance before the end of the award period. For example, such meeting will occur at least a month before the end of the award period. DOHMH Finance will ensure sufficient time for review and approval process of the FFR and submit within the required timeframe. For example, send annual FFR for program review at least 2 weeks before the report deadline. Approval deadline date will be added to the approval email and followed up on a consistent basis. The Division of Disease Control will document review of ELC-related reports prior to submission. Anticipated Completion Date: Effective Immediately; 3/20/2024 Person(s) Responsible for Implementation: Anthony Faciane, Assistant Commissioner, afaciane@health.nyc.gov Wai ting Yu, Assistant Commissioner, wyu4@health.nyc.gov Jennifer Carmona, Senior Director, jcarmona@health.nyc.gov Yuming Li, Director, yli@health.nyc.gov Xiu mei Mai, Director, xmai@health.nyc.gov Jenny Tejada, Director, jtejada@health.nyc.gov James Chan, Assistant Director, jchan6@health.nyc.gov Inna Dubrovenska, Assistant Director, idubrovenska@health.nyc.gov Yulia Gudzinskiy, Grants Manager, ygudzinskiy@health.nyc.gov

View Audit 302042

Finding 391574 (2023-010)

Significant Deficiency 2023

The City of New York

NY

Subrecipient Monitoring Reporting Significant Deficiency § 200.332 § 200.501 § 200.512

Finding No. 2023-010 Department(s): New York City Department for the Aging Program(s): Assistance Listing Number 93.044, 93.045 & 93.053, Aging Cluster Corrective Action(s): To ensure New York City Aging follows 2 CFR 200.332, we are updating our current process and procedures on how to track and...

Finding No. 2023-010 Department(s): New York City Department for the Aging Program(s): Assistance Listing Number 93.044, 93.045 & 93.053, Aging Cluster Corrective Action(s): To ensure New York City Aging follows 2 CFR 200.332, we are updating our current process and procedures on how to track and inform providers of when the Single Audit is due, when extension for the Single Audit is granted and when the submission is due. We will be sending out this communication to our providers. We will also follow-up with providers three months prior to the audit being due and three months prior to the audit being due for those who were granted extensions. Anticipated Completion Date: April 12, 2024 and ongoing Person(s) Responsible for Implementation: Jose Mercado, Chief Financial Officer jmercado@aging.nyc.gov (212) 602-4471

View Audit 302042

Finding 391570 (2023-001)

None 2023

The City of New York

NY

Reporting

Finding No. 2023-001 Department(s): New York City Department of Education Program(s): Assistance Listing Numbers: 84.010, Title I Grants to Local Educational Agencies 84.287, Twenty-First Century Community Learning Center 84.365, English Language Acquisition Grants 84.367, Supporting Effective I...

Finding No. 2023-001 Department(s): New York City Department of Education Program(s): Assistance Listing Numbers: 84.010, Title I Grants to Local Educational Agencies 84.287, Twenty-First Century Community Learning Center 84.365, English Language Acquisition Grants 84.367, Supporting Effective Instruction State Grant Corrective Action(s): The DOE continues to recognize the importance of fiscal reporting requirements and has developed and maintains processes and procedures to monitor grant award programs with respect to the timely submission of Final Expenditure Reports (“FS-10F”). In addition to the established measures taken in prior years, for FY21 and FY22, a new report listing encumbrances open in excess of 29 days was developed by the Division of Financial Operations (“DFO”), System Development and Support, in conjunction with the Office of Revenue Operations (“ORO”) and contains separate tabs reflecting whether a good or service has been received, partially received, certified or received in full. This report has been placed on the Cognos menu of each of Field Support Centers to assist in identifying bottlenecks and obstacles that need to be addressed. We had hoped that as the program staff become familiar with this report that it would serve as a tool for addressing open items. Unfortunately, the large staff turnover hampered this effort. However, we are continuing these efforts to ensure new staff members are properly trained on utilizing these reports. The DOE reviews programs/schools throughout the award and re-enforces established reporting guidelines to facilitate timely submission of expenditure reports. The DOE continues to closely track grant expenditures throughout the grant period, monitoring programs/schools to facilitate accurate and complete records, as well as work with appropriate State Education officials to facilitate the completion and submission of financial expenditure reports. The DOE has incorporated applicable deadlines related to encumbrances and payment certifications into the Fiscal 2024 close calendar in an effort to continue to reinforce the need for the timely payment and takedown of open encumbrances. This message is regularly stressed at close meetings and through e-mails to applicable parties throughout the course of the close process. With respect to the audit finding, the DOE will reemphasize the importance of closing applicable transactions to facilitate timely submission of FS-10F reports. Anticipated Completion Date: Ongoing Person(s) Responsible for Implementation Barry Elkayam, Executive Director, Office of Revenue Operations (718) 935-5050

View Audit 302042

Finding 391541 (2023-001)

Significant Deficiency 2023

Southern California University of Health Sciences

CA

Student Financial Aid Reporting Matching / Level of Effort / Earmarking

NSLDS Enrollment Reporting Student Financial Assistance Cluster – Assistance Listing No. 84.063, 84.033, 84.268 Recommendation: We recommend the University review its reporting procedures to ensure that enrollment and program information is accurately reported to NSLDS as required by regulations. ...

NSLDS Enrollment Reporting Student Financial Assistance Cluster – Assistance Listing No. 84.063, 84.033, 84.268 Recommendation: We recommend the University review its reporting procedures to ensure that enrollment and program information is accurately reported to NSLDS as required by regulations. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: A complete internal review of the audit findings was undertaken. We discovered an inconsistency in our SIS that has been corrected to align with best practices state in the “NSLDS Enrollment Reporting Guide November 2022”. We have also engaged with the National Student Clearinghouse (NSC) Audit Resource Center to ensure timely reporting to NSLDS. SCU has also created a “Monitoring of Reporting Compliance Program” that will compare various reports available in NSLDS to data that was submitted to NSC. We have also increased our reporting frequency to ensure the latest data is being sent. Name(s) of the contact person(s) responsible for corrective action: Robert Boggs, EdD, University Registrar Planned completion date for corrective action plan: The internal monitoring program will be in place by 3/1/2024

View Audit 302017

Finding 391539 (2023-002)

None 2023

City of Tucker, Georgia

GA

Reporting Eligibility

Views of Responsible Officials and Planned Corrective Actions: The City disagrees with the finding. A project was determined to be ineligible and was adjusted accordingly in the third quarter report due October 30, 2023. The original first quarter submission report did not tie to the balance after t...

Views of Responsible Officials and Planned Corrective Actions: The City disagrees with the finding. A project was determined to be ineligible and was adjusted accordingly in the third quarter report due October 30, 2023. The original first quarter submission report did not tie to the balance after the entries were made to reclass the expenditures. Staff was not able to recreate the report from the first quarter to tie to the ending balances charged to the fund as of June 30, 2023. When the original first quarter report was filed, the financial system expenditure reports reconciled to what was submitted. Finance Department personnel have established procedures to prevent the need for corrections and resubmissions to prior period quarterly Project and Expenditure submissions and will properly document the changes for verification if corrections occur.

View Audit 302016

Finding 391515 (2023-102)

Significant Deficiency 2023

Espiritu Community Development Corporation

AZ

Subrecipient Monitoring Reporting Internal Control / Segregation of Duties § 200.327

Condition and Context: The four quarterly reports were not filed within the 30 days required by the contract. Recommendation: The auditors recommend that the School establish a system of monitoring for the filing of all required reporting and that the chief operating officer review the monitoring ...

Condition and Context: The four quarterly reports were not filed within the 30 days required by the contract. Recommendation: The auditors recommend that the School establish a system of monitoring for the filing of all required reporting and that the chief operating officer review the monitoring list on a regular basis consistent with the timing of report filings. Contact Name: Anastacia Europa Ruiz, Chief Operating Officer Corrective Action Planned: The management team will establish a system for monitoring all required reporting deadlines. This system will be designed to track the filing requirements for each grant and contract, ensuring that deadlines are clearly identified and adhered to. The Chief Operating Officer will be designated as the responsible authority for overseeing the monitoring process. They will review the monitoring list on a regular basis, ensuring that all required reports are filed in a timely manner. The grant team will institute regular compliance reviews to assess our adherence to reporting deadlines and identify any areas for improvement. Anticipated Completion Date: June 30, 2024

View Audit 302013

Finding 391511 (2023-001)

Significant Deficiency 2023

Dillon County

SC

Reporting

Management will implement procedures to ensure that the single audit submission is uploaded to the Federal Audit Clearinghouse within nine months after fiscal year end.

View Audit 302001

Finding 391476 (2023-002)

Significant Deficiency 2023

Centro Margarita,inc

PR

Reporting § 200.328

Centro Margarita, Inc. acknowledges the finding identified during the single audit regarding reporting requirements. Therefore, CMI will identify additional personnel including finance and accounting staff members and program coordinator that should be involved in financial reporting processes. Al...

Centro Margarita, Inc. acknowledges the finding identified during the single audit regarding reporting requirements. Therefore, CMI will identify additional personnel including finance and accounting staff members and program coordinator that should be involved in financial reporting processes. Also, Centro Margarita, Inc. will conduct a comprehensive assessment of the technical training needs of the identified personnel. Evaluate their current knowledge and skill levels related to reporting requirements, accounting principles, and compliance regulations. Finally, Centro Margarita, Inc. will determine the most effective delivery method for the training program, taking into account the learning preferences and availability of personnel. Options may include: • In-person workshops or seminars led by subject matter experts. • Online courses or virtual training sessions accessible remotely. • Self-paced learning modules supplemented with instructional materials and resources. Implementing this corrective action plan focused on technical training for personnel responsible for reporting requirements, Centro Margarita, Inc. can enhance reporting accuracy, compliance, and overall effectiveness.

View Audit 301964

Finding 391474 (2023-001)

Significant Deficiency 2023

Centro Margarita,inc

PR

Reporting § 200.328

Centro Margarita, Inc. acknowledges the finding identified during the single audit regarding reporting requirements stemming from a lack of personnel. However, Centro Margarita, Inc. has already contracted capable personnel in order to assist in the finance department to comply with financial report...

Centro Margarita, Inc. acknowledges the finding identified during the single audit regarding reporting requirements stemming from a lack of personnel. However, Centro Margarita, Inc. has already contracted capable personnel in order to assist in the finance department to comply with financial reports.

View Audit 301964

Finding 391471 (2023-002)

Material Weakness 2023

University of Maryland Medical System Corporation

MD

Reporting Subrecipient Monitoring Material Weakness

University of Maryland Medical System Corporation and Subsidiaries Corrective Action Plan Year Ended June 30, 2023 University of Maryland Medical System Corporation and Subsidiaries (the Corporation) respectfully submits the following corrective action plan for the year ended June 30,2023. Audit p...

University of Maryland Medical System Corporation and Subsidiaries Corrective Action Plan Year Ended June 30, 2023 University of Maryland Medical System Corporation and Subsidiaries (the Corporation) respectfully submits the following corrective action plan for the year ended June 30,2023. Audit period: July 1, 2022 to June 30, 2023 MATERIAL WEAKNESS IN INTERNAL CONTROL OVER COMPLIANCE 2023-002 Reporting of Schedule of Expenditures of Federal Awards Assistance Listing Number 97.036 – COVID-19 – Disaster Grants – Public Assistances (Presidentially Declared Disasters) Recommendation: The Corporation’s policy and procedures should be designed to ensure expenditures are reported on the Schedule based on the date on which the expenditures are incurred as required by the Uniform Guidance. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action planned/taken in response to finding: Management will continue to refine internal procedures and practices. The COVID-19 pandemic grant programs included evolving expectations which did not follow the typical grant process. We will enhance procedures to review related report submissions, obligated worksheets, and incurred expenditures in conjunction with review of the Schedule to verify completeness and accuracy. Planned completion date for corrective action plan: September 30, 2024 Name(s) of the contact person(s) responsible for corrective action: Jeff Chadwick, Financial Reporting Director, jeff.chadwick@umm.edu

View Audit 301956

Finding 391459 (2023-001)

Significant Deficiency 2023

City of Westminster, Maryland

MD

Subrecipient Monitoring Reporting Significant Deficiency

The finance department experienced staff turnover and vacancies during the fiscal year, impacting the fiscal year end close processes. We have consulted with a fractional CFO and are now fully staffed. We are working to remedy the items noted above by assessing our current procedures and implementin...

The finance department experienced staff turnover and vacancies during the fiscal year, impacting the fiscal year end close processes. We have consulted with a fractional CFO and are now fully staffed. We are working to remedy the items noted above by assessing our current procedures and implementing changes for more effective and efficient financial reporting. We are also in the final stages of selecting new ERP software, which would be implemented during fiscal years 2025 and 2026 to allow for more streamlined processes to be implemented. We will be developing comprehensive year end close and audit preparation procedures that will ensure a timely close of the fiscal year.

View Audit 301948

Finding 391442 (2023-003)

Significant Deficiency 2023

City of Humboldt

IA

Reporting Internal Control / Segregation of Duties

A policy and procedure will be established to ensure the annual Project and Expenditure Report is submitted prior to the reporting deadline.

View Audit 301938

Finding 391441 (2023-002)

Significant Deficiency 2023

Community Action Partnership of Oregon

OR

Reporting § 200.62

Corrective Action: The fiscal tasks and responsibilities needed to adequately manage all 5 SSVF grants in FY 23 were substantial, and without sufficient staff, it was up to the SSVF Program Manager and an administrative support staff to review invoices, approve sub payments, prepare draw requests fo...

Corrective Action: The fiscal tasks and responsibilities needed to adequately manage all 5 SSVF grants in FY 23 were substantial, and without sufficient staff, it was up to the SSVF Program Manager and an administrative support staff to review invoices, approve sub payments, prepare draw requests for Executive Director approval, and manage overall grant funds. In October of 2023, CAPO hired a full time Finance and Grants Manager, and in February of 2024, we hired a full time SSVF Accounts Coordinator (reporting to the Finance Manager) to assume all fiscal tasks for SSVF. The Program Manager still approves the allowability of subrecipient expenditures, however all invoicing, PMS draws, and overall grant tracking are provided and managed by our new central office fiscal team. This has significantly improved the pace of invoicing and payments to subrecipients, as well as the accuracy of coding and timeliness of fund draws. Person Responsible: Janet Allanach, Executive Director Timing for Implementation: Complete as of February 2024

View Audit 301926

Finding 391440 (2023-001)

Significant Deficiency 2023

Community Action Partnership of Oregon

OR

Allowable Costs / Cost Principles Reporting Significant Deficiency § 200.303

Corrective Action: Susan Matlack Jones (SMJ) took over as CAPO’s fiscal service provider in July of 2022. The first six months were spent largely cleaning and correcting journal entries from FY22 – a significant task. CAPO did not begin to receive truly accurate and trustworthy financial statements ...

Corrective Action: Susan Matlack Jones (SMJ) took over as CAPO’s fiscal service provider in July of 2022. The first six months were spent largely cleaning and correcting journal entries from FY22 – a significant task. CAPO did not begin to receive truly accurate and trustworthy financial statements until early in 2023. CAPO also experienced two staff losses in the finance department from March through May of 2023. In light of our growth and increased administrative needs, we revised our job posting to increase the level of fiscal skill and responsibility needed for the Finance Manager role. In September of 2023, CAPO was successful in hiring a Finance and Grants Manager with experience in federal fund accounting for Community Action and in SSVF (our major grant). Since that time, he has organized, revamped, and significantly improved internal processes to assure timely review of all finances and reconciliations and works closely with SMJ to assure overall accuracy. Person Responsible: Janet Allanach, CAPO Executive Director Timing for Implementation: Complete as of October 2023

View Audit 301926

Finding 391432 (2023-004)

Material Weakness 2023

County of Nevada

CA

Reporting Internal Control / Segregation of Duties Matching / Level of Effort / Earmarking § 200.302 § 200.303

The Auditor-Controller’s office will provide additional training to applicable departments to educate staff on appropriate records maintenance related to grant files and the importance documented review and approval processes. This training will provide additional education over appropriate supporti...

The Auditor-Controller’s office will provide additional training to applicable departments to educate staff on appropriate records maintenance related to grant files and the importance documented review and approval processes. This training will provide additional education over appropriate supporting documentation to verify internal controls and compliance requirements are being reasonably followed

View Audit 301919

Finding 391385 (2023-002)

Significant Deficiency 2023

Bethany Lutheran College, Inc.

MN

Student Financial Aid Reporting Significant Deficiency

Title: Student Financial Assistance Cluster – Assistance Listing Nos. 84.038, 84.268, 84.033, 84.007, 84.063 Recommendation: We recommend the College review its reporting procedures to ensure that students’ statuses are accurately and timely reported to NSLDS as required by regulations. Explanation ...

Title: Student Financial Assistance Cluster – Assistance Listing Nos. 84.038, 84.268, 84.033, 84.007, 84.063 Recommendation: We recommend the College review its reporting procedures to ensure that students’ statuses are accurately and timely reported to NSLDS as required by regulations. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: Issue: Taylor Theiste began official withdrawal process on 1/31/23. This date was used in Return of Title IV calculations, and entered into PowerFAIDS system. Student was asked to unenroll from the courses by the Registrar, which she did, but not until 2 days later. Resolution: Jeff Younge (Director of Financial Aid) met with Sergio Salgado (Registrar) and Lisa Shubert (Manager of Administrative Computing and Institutional Reporting) on 11/29/23. Going forward, when student indicates intent to withdraw, Registrar will unenroll the student from courses using the withdrawal date used for Title IV purposes. This will ensure that the correct date is reported to Clearinghouse, and then to NSLDS. Issue: Ben Draper began official withdrawal process on 1/20/23. Since this was the 10th day of class, he was not included in the Census Report that was run at the end of the day (although correct date was used for Return of Title IV calculations, and transcript shows Ws). Consequently, he was treated for reporting purposes as if he did not return for spring semester, and withdrawal date sent to Clearinghouse, and then on to NSLDS, reverted to last day of the previous fall semester, which was 12/15/22. Resolution: On December 20, 2023, meeting was held in Luther Hall that included the following: (Stacey Dawley, Jeff Lemke, Jason Lowrey, Ted Manthe, Daniel Mundahl, Sergio Salgado, Lisa Shubert, Renee Tatge, Estelle Vlieger, Jeff Younge) Proposal was made (and accepted by this group, and later the President) that stated the following: 1. Add/Drop period is day 1-5 of fall and spring semester. During this time, classes can be added, and dropped courses disappear from student schedule/transcript, as if student did not begin the class. Courses withdrawn from after 5th day result in a grade on the transcript (W, WP/WF, or F, depending on the timing of the withdrawal). This is the current policy, not a proposed change. 2. Change wording of refund policy, so that instead of Week 1, Week 2, Week 3...it is worded as Day 1-5, Day 6-10, Day 11-15... (This solves the issue of 1st week being only 4 days in the fall, but 5 days in the spring, and the day after Labor Day being the 10th day of class, but 3rd week of the semester). 3. Change Census report figures from being (10th day) to (end of 5th day). That does not mean census report is available on the 5th day, but just that the information is “locked” as of that day for reporting purposes. Name of the contact person responsible for corrective action: Jeff Younge, Director of Financial Aid Planned completion date for corrective action plan: 3/26/2024

View Audit 301916

Finding 391382 (2023-002)

Material Weakness 2023

Marshall Public Schools

WI

Reporting

Finding #2023-002 – Lack of Financial Close Process and Delayed Accounting Condition: Cash and other accounts were adjusted during the audit process. Many audit journal entries were required to record and adjust activity. Multiple grant claims were not filed throughout the year and large adjustmen...

Finding #2023-002 – Lack of Financial Close Process and Delayed Accounting Condition: Cash and other accounts were adjusted during the audit process. Many audit journal entries were required to record and adjust activity. Multiple grant claims were not filed throughout the year and large adjustments were needed to record revenues. Effect: Financial reporting from the District’s general ledger could be materially misstated. Delayed grant claims could cause cash flow issues. Cause: The District did not have procedures in place to ensure that all transactions were properly recorded on the general ledger prior to the audit. Criteria: During the close of the monthly financial statements, other balances should be reconciled to subsidiary detailed listings. Grant claims should be reconciled to the general ledger and submitted throughout the year. Receivables should be recorded as of year end as needed. Recommendation: The District should develop procedures to timely reconcile cash and other balance sheet accounts. The reconciliations should be reviewed by someone other than the person preparing the reconciliations. The reviewer should initial and date the reconciliations when the review is complete. Reconcile payroll liabilities. Develop procedures to review and submit grant claims throughout the year and reconcile to the general ledger. Response: The District will work to establish procedures to reconcile accounts monthly and grant claims are reconciled and submitted throughout the year. Marshall School District's Corrective Action Plan: School Business Manager Kristin Wilkinson will engage in the following tasks to better understand and put processes in place to address the finding: Meet with experienced School Business Managers Wendy Brockert and Tim Stellmacher in regards to reconciling payroll liabilities. When By 6/30/2024. Attend WASBO University class through Wisconsin Association of School Business Officials, specifically Internal Controls for the School Business Office. When Ongoing. This specific course completed 3/19/2024. Complete one full year as School Business Manager at Marshall Public Schools (first position in this role in any district) learning about the role, structures and processes that are in place, need to be put in place, and need to be refined. When May 2, 2024. Reconcile cash and balance sheet accounts monthly. Review will be done by mentor School Business Manager or by Accounts Payable Specialist. When By March 30, 2024. Review and submit grant claims throughout the year and reconcile to the general ledger. When Ongoing work By 6/30/2024. Contact Person: Kristin Wilkinson, Business Manager Anticipated Completion Date: 6/30/2024

View Audit 301915

Finding 391379 (2023-003)

Material Weakness 2023

Ifoster, Inc.

CA

Material Weakness Reporting Internal Control / Segregation of Duties

Finding 2023-003 Finding Summary: Management is responsible for establishing and maintaining an effective system of internal control over financial reporting. Ensuring accruals and expenses are recorded in the appropriate time period and meet the criteria for recognition is a key component of effect...

Finding 2023-003 Finding Summary: Management is responsible for establishing and maintaining an effective system of internal control over financial reporting. Ensuring accruals and expenses are recorded in the appropriate time period and meet the criteria for recognition is a key component of effective internal control over financial reporting. Certain expenses were not recorded in the correct financial reporting period. Responsible Individuals: Mike Maxfield, Controller Corrective Action Plan: Acknowledged. Payroll accruals, which have in the past been immaterial, are being accrued on a monthly basis in fiscal year ending June 30, 2024. Anticipated Completion Date: Ongoing

View Audit 301914

Finding 391378 (2023-002)

Material Weakness 2023

Ifoster, Inc.

CA

Material Weakness Reporting Internal Control / Segregation of Duties

Finding 2023-002 Finding Summary: Internal controls should be in place to provide reasonable assurance that protects iFoster, Inc. from errors or omissions. iFoster, Inc. internal control system did not require consistent approval of grant expenditures as well as properly allocating costs within the...

Finding 2023-002 Finding Summary: Internal controls should be in place to provide reasonable assurance that protects iFoster, Inc. from errors or omissions. iFoster, Inc. internal control system did not require consistent approval of grant expenditures as well as properly allocating costs within the accounting program. Responsible Individuals: Mike Maxfield, Controller Corrective Action Plan: Acknowledged. Due to the compressed timeframe between initial single audits, corrective action could not be implemented. All grant expenditures now require approval and QuickBooks will be used to allocate costs in fiscal year ending June 30, 2024 rather than using Excel. Anticipated Completion Date: April 20, 2024

View Audit 301914

Finding 391377 (2023-001)

Material Weakness 2023

Ifoster, Inc.

CA

Material Weakness Reporting Internal Control / Segregation of Duties

Finding 2023-001 Finding Summary: Management is responsible for establishing and maintaining an effective system of internal control over financial statement reporting. One of the components of an effective system of internal control over financial reporting is the preparation of full disclosure fin...

Finding 2023-001 Finding Summary: Management is responsible for establishing and maintaining an effective system of internal control over financial statement reporting. One of the components of an effective system of internal control over financial reporting is the preparation of full disclosure financial statements that do not require adjustment as part of the audit process. A second component is that reconciliations and transactions are properly reviewed and approved by the appropriate personnel. As auditors, we were requested to draft the financial statements and accompanying notes to the financial statements. Certain reconciliations and journal entries were not reviewed and approved. Responsible Individuals: Mike Maxfield, Controller Corrective Action Plan: Acknowledged. Due to the compressed timeframe between initial single audits, corrective action could not be implemented. All journal entries are now approved as a part of our month end close process. Although we anticipate the auditor to continue to prepare the financial statements, we believe addressing the internal control noted above will address any material errors noted. Anticipated Completion Date: Ongoing

View Audit 301914

Finding 391338 (2023-001)

Material Weakness 2023

Lifespire, Inc.

NY

Allowable Costs / Cost Principles Reporting

The main reason for the discrepancy in income was a result of using actual units/services billed (from the billing software) and not what is recorded in the financials because, usually what is recorded every month in the financials is based on estimates and later adjusted based on actual billing and...

The main reason for the discrepancy in income was a result of using actual units/services billed (from the billing software) and not what is recorded in the financials because, usually what is recorded every month in the financials is based on estimates and later adjusted based on actual billing and payments for services received. With this approach we were comfortable that, if necessary, we could trace the income to the actual service rather than an estimate. An unintended consequence was that income received in a year for a service in a prior year was not accounted for. While, immaterial, this resulted in discrepancies. We are committed that in the future, we would take additional steps to review the information by other employees who are not involved in the process in order to get a different perspective, and seek outside help, like a CPA, if necessary.

View Audit 301904

Corrective Action Plans

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