Corrective Action Plans

Finding 2752 (2023-002)

Material Weakness 2023

AL

Reporting

Management agrees with the finding and has developed and begun implementation of a corrective action plan including filing previously unsubmitted reports.

View Audit 4766

Finding 2740 (2023-001)

Significant Deficiency 2023

Reed City Area Public Schools

MI

Questioned Costs Subrecipient Monitoring Allowable Costs / Cost Principles § 200.308

This finding is caused by Human error in transcribing amounts from the general ledger to the proper Activities and Objects on the Final Expenditure Report. The completion date for the corrective action plan is immediate. The person responsible for the corrective action is Tina Mills, the Business Ma...

This finding is caused by Human error in transcribing amounts from the general ledger to the proper Activities and Objects on the Final Expenditure Report. The completion date for the corrective action plan is immediate. The person responsible for the corrective action is Tina Mills, the Business Manager. The plan for monitoring adherence is the business manager will double check reports before submitting them to the State of Michigan.

View Audit 4709

Finding 2677 (2023-001)

Significant Deficiency 2023

University of Oklahoma Norman Campus

OK

Student Financial Aid Questioned Costs Special Tests & Provisions

The following is the Management's Response to Auditor's Findings, Summary Schedule of Prior Audit Findings and Corrective Action Plan. This document was prepared by management of the University of Oklahoma. 2023-001 Student Financial Assistance Cluster, ALN 84.063 Federal Pell Grant Program and ALN ...

The following is the Management's Response to Auditor's Findings, Summary Schedule of Prior Audit Findings and Corrective Action Plan. This document was prepared by management of the University of Oklahoma. 2023-001 Student Financial Assistance Cluster, ALN 84.063 Federal Pell Grant Program and ALN 84.268 Federal Direct Student Loans, Department of Education, Award Year 2023 Criteria or Specific Requirement - Special Tests and Provisions - Enrollment Reporting - 34 CFR § 690.83(b)(2) and 34 CFR §685.309(b)(1) Finding Summary: The University is required to implement a system of internal controls that ensure enrollment information is reported to Department of Education's National Student Loan Data System (NSLDS) each 60 days, at minimum. Enrollment information for eight students graduating in Spring 2023 was not reported timely to NSLDS. Explanation of Agreement/Disagreement: Management concurs with the finding and proper internal controls are being implemented during FY2024. Officials Responsible for Ensuring Corrective Action: Courtney Henderson, Acting Financial Aid Director. Planned Completion for Corrective Action: Corrected enrollment information was submitted to NSLDS on August 18, 2023. Corrective internal controls have been implemented as of October 12, 2023. Plan to Monitor Completion of Corrective Action: Management concurs with the finding and proper internal controls were implemented during FY2024. Management has implemented regular monthly meetings between the Financial Aid Services and Academic Records departments of the University to review graduation error reports and ensure timely processing.

View Audit 4516

Finding 2675 (2023-002)

None 2023

Lincoln County, Nebraska

NE

Questioned Costs Allowable Costs / Cost Principles Reporting § 200.303

West Central NE Development District will need to collect reports from various offices (County Clerk & County Treasurer) to verify all expenditures and disbursements match and perform their own calculations.

View Audit 4513

Finding 2649 (2023-001)

Significant Deficiency 2023

Albuquerque Health Care for the Homeless, Inc.

NM

Internal Control / Segregation of Duties Questioned Costs Procurement, Suspension & Debarment § 200.302

Albuquerque Health Care for the Homeless, Inc.’s Finance Team will work to ensure that Policy and Procedure 4011 regarding the use of corporate credit cards is followed. All management staff that have organizational corporate cards will be retrained by the Accounting Manager on the importance of obt...

Albuquerque Health Care for the Homeless, Inc.’s Finance Team will work to ensure that Policy and Procedure 4011 regarding the use of corporate credit cards is followed. All management staff that have organizational corporate cards will be retrained by the Accounting Manager on the importance of obtaining itemized receipts. In the event a receipt is lost, regardless of verifying the legitimacy of the purchase with the direct supervisor, the finance team will ensure that the expense is not charged to any federal funding. Persons Responsible: Leon Paboucek, Accounting Manager Estimated Completion Date: October 25, 2023

View Audit 4466

Finding 2630 (2023-001)

Significant Deficiency 2023

Alight

MN

Allowable Costs / Cost Principles Subrecipient Monitoring Reporting

Views of Responsible Officials: As part of our investigation, we determined staff involved in the embezzlement colluded to circumvent Alight’s systems of internal controls at the directions of an Alight manager. In addition to taking the immediate actions listed above, including terminating the empl...

Views of Responsible Officials: As part of our investigation, we determined staff involved in the embezzlement colluded to circumvent Alight’s systems of internal controls at the directions of an Alight manager. In addition to taking the immediate actions listed above, including terminating the employment of staff involved, we also took the following actions:  We filed a police report, and are pursuing legal actions against the key actors involved in the malfeasance.  Alight’s executive leaders conducted policy, procedures and fraud notification training with the Thai staff including how to report suspected incidence of fraud.  Executive leaders and Thai leaders traveled to field offices to review operations and provide staff the opportunity to report issues. We believe these actions reinforce management’s zero tolerance to fraud and offer staff the knowledge and opportunity to report potential issues going forward.

View Audit 4459

Finding 2523 (2023-001)

Significant Deficiency 2023

Kent State University

OH

Internal Control / Segregation of Duties Questioned Costs Allowable Costs / Cost Principles § 200.413 § 200.516

Upon learning of the possibility of frauduelent activity, the University began an internal audit review and all activity on the grant was stopped. Throughout the process, the University coordinated with the Ohio Department of Development. The internal audit procedures led to the determination that $...

Upon learning of the possibility of frauduelent activity, the University began an internal audit review and all activity on the grant was stopped. Throughout the process, the University coordinated with the Ohio Department of Development. The internal audit procedures led to the determination that $209,101 was incorrectly reported by the program advisor and was not detected by the program director. These funds were returned to the Ohio Department of Development on October 11, 2023. The program has been termianted and program income returned. The individuals involved with this program are no longer employees of the University. The University is in the process of seeking reimbursement from the former employee. An internal controls questionnaire was prepared and reviewed for the other Small Business Development Center (SBDC) program noting no areas of concern. The FY24 internal audit plan will include additional review of the remaining SBDC program as well as review of controls within the department which previously managed the program noted in the finding. In addition, training related to roles and responsibilities for supervisors/approvers will be provided in FY24 to emphasize the guidance provided in the grants manual. Contact person responsible for the corrective action: Mark Polatajko, Senior Vice President for Finance and Administration.

View Audit 4303 Questioned Costs: $1

Finding 2519 (2023-002)

Significant Deficiency 2023

C.h.i.l.d, Inc.

RI

Internal Control / Segregation of Duties Questioned Costs Reporting § 200.303

FINDINGS - FEDERAL AWARD PROGRAMS AUDITS SIGNIFICANT DEFICIENCY 2023-002 Significant Deficiency in Internal Control over Compliance Recommendation: We recommend that management monitor reporting deadlines to meet all reporting requirements. Explanation of disagreement with audit finding: There is no...

FINDINGS - FEDERAL AWARD PROGRAMS AUDITS SIGNIFICANT DEFICIENCY 2023-002 Significant Deficiency in Internal Control over Compliance Recommendation: We recommend that management monitor reporting deadlines to meet all reporting requirements. Explanation of disagreement with audit finding: There is no disagreement with the audit finding, however, once again we plead considerable staff shortage. Action planned/taken in response to finding: We have now filled a critical position which will allow us to distribute responsibilities more effectively and ensure that internal controls are consistently applied. Name of the contact person responsible for corrective action: Anne Paglia Planned completion date for corrective action plan: December 2023. If the Department of Health and Human Services has questions regarding this plan, please call Anne Paglia at 401-732-5200

View Audit 4302

Finding 2502 (2023-001)

Significant Deficiency 2023

Florence County School District No. 5

SC

Reporting Internal Control / Segregation of Duties

Management continues to monitor the stiuation to determine the cost/benefit to the District. Presently, management believes that the costs outweighs the benefit to implement this particular safeguard.

View Audit 4274

Finding 2492 (2023-001)

Significant Deficiency 2023

Three Square

NV

Special Tests & Provisions Reporting School Nutrition Programs § 200.303

2023-001 Internal Control Systems Over Special Tests and Provisions (Accountability for USDA Foods) – U.S. Department of Agriculture Food Distribution Cluster, Passed Through the State of Nevada Department of Agriculture Criteria: In accordance with 2 CFR 200.303(a), the auditee must maintain a sys...

2023-001 Internal Control Systems Over Special Tests and Provisions (Accountability for USDA Foods) – U.S. Department of Agriculture Food Distribution Cluster, Passed Through the State of Nevada Department of Agriculture Criteria: In accordance with 2 CFR 200.303(a), the auditee must maintain a system of internal controls to provide reasonable assurance that accurate and complete records are maintained with respect to the receipt, distribution, and inventory of USDA foods. Condition: Three Square’s internal controls, as designed, require an individual to verify that the weight of each product recorded in the inventory system is accurate. During inventory observation and testing audit procedures, twelve items were sampled. Of the twelve items, a discrepancy was discovered in the weight of one product when compared to the weight of the product recorded in the inventory system. Context: Of the twelve products selected for testing, the weight of one product was improperly recorded within Three Square’s inventory system. Cause: Internal controls over accountability for USDA foods were not operating effectively. Effect: Improper implementation of internal controls could result in improper tracking and reporting of costs of USDA foods. Recommendation: We recommend that management ensure that the system of internal controls over accountability for USDA foods is followed as designed. Views of Responsible Officials and Planned Corrective Actions: The weight of inventory is recorded within Three Square’s inventory management system as part of the receiving process. To ensure that all weight is properly recorded, Three Square will implement a verification process. Inventory control specialists, who are not part of the receiving process, will verify 10% of all items received weekly. This verification process will include independent weighing of items, and a review of the item description, quantity and dimensions recorded in the inventory management system. Any discrepancies will be reported to team leads to be rectified. Three Square is committed to ensuring that the system of internal controls is sufficient to ensure all records are accurate and complete.

View Audit 4240

Finding 2455 (2023-001)

Material Weakness 2023

Wpc Housing Corp. Danford Hall Apartments

MO

HUD Housing Programs Questioned Costs Special Tests & Provisions

CORRECTIVE ACTION PLAN FOR THE YEAR ENDED FEBRUARY 28, 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 FEBRUARY 28, 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 February 28, 2023. Finding 2023-001 Responsible Party Name: Tamara Wallace Position: Executive Director – Management Agent Telephone Number: 816-233-4250 Federal Agency U.S. Department of Housing and Urban Development Federal Program Mortgage Insurance for Rental and Cooperative Housing (Section 221(d)(4)) Compliance Requirements N – Special Tests and Provisions Finding Type Financial Statement and Federal Awards Auditee’s Comment on Finding We agree with the auditors’ finding. Corrective Action We will ensure that the accounts reconcile to source documents as part of our month-end closing process. Anticipated Completion Date September 30, 2023

View Audit 4230

Finding 2432 (2023-001)

Material Weakness 2023

Oneida, Herkimer, and Madison Counties Boces

NY

School Nutrition Programs Questioned Costs Cash Management

Finding 2023-001 – Reporting The BOCES concurs with the finding 2023-001. Corrective Action: To correct this in the future 2 steps will be implemented by the BOCES: 1. A manual total of meals from the Etrition claim reports will be calculated and compared to the total meals on the CNMS claim; and 2....

Finding 2023-001 – Reporting The BOCES concurs with the finding 2023-001. Corrective Action: To correct this in the future 2 steps will be implemented by the BOCES: 1. A manual total of meals from the Etrition claim reports will be calculated and compared to the total meals on the CNMS claim; and 2. The School Food Service Director and Director of Shared Food Services will review and verify each other's work. Additional checks and balances will be put in place immediately so that reliance is not solely on the computerized system. Contact Person: Kate Dorr, Director of Shared Food Service (315) 738-0848 kdorr@oneida-boces.org

View Audit 4195

Finding 2403 (2023-001)

Significant Deficiency 2023

Town of Cary

NC

Questioned Costs Reporting Significant Deficiency

Finding: 2023-001 Name of Contact Person: Kimberly Branch, Finance Director Corrective Action: Cary has implemented a more formal review process over the report prior to submission, which includes evidence of the review. This has already been corrected with the recent quarterly report submission. Pr...

Finding: 2023-001 Name of Contact Person: Kimberly Branch, Finance Director Corrective Action: Cary has implemented a more formal review process over the report prior to submission, which includes evidence of the review. This has already been corrected with the recent quarterly report submission. Proposed Completion Date: October 31, 2023

View Audit 4130

Finding 2395 (2023-002)

Significant Deficiency 2023

Amarillo Independent School District

TX

Questioned Costs Reporting

Additional monitoring and comprehensive review of expenditure reporting will take place, with emphasis on matching accounting data presented in the District’s financial system.

View Audit 4100

Finding 2341 (2023-001)

Significant Deficiency 2023

Claremont Lincoln University

CA

Student Financial Aid Reporting Significant Deficiency

Management’s Corrective Action Plan Finding 2023-001 Special Tests and Provisions- Enrollment Reporting- Significant Deficiency in Internal Control over Compliance. Responsible Office and Individuals The Associate Vice President of Student Financial Services, Jazmin Martin and the Executive Vice Pre...

Management’s Corrective Action Plan Finding 2023-001 Special Tests and Provisions- Enrollment Reporting- Significant Deficiency in Internal Control over Compliance. Responsible Office and Individuals The Associate Vice President of Student Financial Services, Jazmin Martin and the Executive Vice President/Chief Operations Officer, Mark Mendoza are responsible for the development of the processes, and implementation of the corrective actions described in the Corrective Action Plan. The corrective actions will result in timely and accurate reporting to NSLDS. Corrective Action Plan Management accepts responsibility for this significant deficiency in internal control over compliance and has implemented a new financial aid management system (Campus Ivy) and process to ensure that students’ statuses are reported timely. To maintain accuracy and compliance with the Title IV regulations, Campus Ivy will perform weekly, monthly, and bi-monthly National Student Loan Data System (NSLDS) enrollment reporting. Enrollment reporting is a process by which a student’s enrollment status and program of study is reported to NSLDS on a timely basis to meet the U.S. Department of Education’s 30-day and 60-day reporting requirements. The Student Financial Services Department will provide accurate and timely information to Campus Ivy and Campus Ivy will report that information timely and accurately to NSLDS. Campus Ivy’s Core system receives the NSLDS Enrollment Roster as scheduled on the 5th of the month every 60-days. The Core system will automatically load the roster and update all relevant enrollment data based on the information sent from CLU through the secure data import on an ongoing basis. These updates are then batched by the system to be transmitted to NSLDS. The Student Financial Services Department, through the student information system (Maestro), will provide student information updates. The Student Financial Services Department will sync updates to the Campus Ivy Core Financial Aid Management System (Core) with all students’ academic and demographic information from Maestro, by imports through Campus Ivy’s secure encrypted portal or through direct integration. The Student Financial Services Department will be responsible for timely and accurate updates of the Core system. The Student Financial Services Department will ensure daily updates from Maestro to clear any failed validations. The student data import process has built in validations to assist CLU with maintaining accurate data. These validations are on both the student’s demographic and academic information. In addition to the bi-monthly roster process, Campus Ivy also sends bi-weekly updates to NSLDS to record enrollment updates on an ongoing basis, well within the 30-day timeframe set by the Department of Education. The NSLDS module within Campus Ivy stores all roster batches processed by the system. CLU will have access to view our Roster Batches at any time and can request changes through our 24/7 Support Site. Anticipated Completion Date The anticipated completion date of the corrective action plan is November 30, 2023

View Audit 4011

Finding 2340 (2023-003)

Significant Deficiency 2023

Antelope County

NE

Allowable Costs / Cost Principles Reporting Matching / Level of Effort / Earmarking § 200.303

Antelope County will complete the annual expenditure report as required by ARPA Funding.

View Audit 4002

Finding 2326 (2023-002)

Significant Deficiency 2023

Marquette Area Public Schools

MI

Allowable Costs / Cost Principles Reporting § 200.430

The School District recognizes the issue identified during the audit and has made all necessary adjustments to ensure compliance with spending down the remaining ESSER III funding.

View Audit 3993

Finding 2325 (2023-003)

Significant Deficiency 2023

Holt County

NE

Allowable Costs / Cost Principles Reporting Matching / Level of Effort / Earmarking § 200.303

Holt County will create a spreadsheet that will track expenditures and obligations.

View Audit 3982

Finding 2319 (2023-002)

Material Weakness 2023

Harrison County Community Hospital District

MO

Questioned Costs Material Weakness Reporting

Identification: 93.498 United States Department of Health and Human Services, Provider Relief Fund and American Rescue Plan Rural Distribution; Noncompliance Finding/Material Weakness; Activities Allowed Compliance Requirement. Corrective Action Plan: The Hospital District will make improvements to ...

Identification: 93.498 United States Department of Health and Human Services, Provider Relief Fund and American Rescue Plan Rural Distribution; Noncompliance Finding/Material Weakness; Activities Allowed Compliance Requirement. Corrective Action Plan: The Hospital District will make improvements to its procedures over federal grant reporting to ensure that future reporting submissions do not contain duplicated expenditures. Anticipated completion date: The Hospital District will implement improvements to its procedures over federal grant reporting beginning in FY 2024.

View Audit 3969 Questioned Costs: $1

Finding 2292 (2023-002)

Material Weakness 2023

Bellin College, Inc.

WI

Questioned Costs Reporting Internal Control / Segregation of Duties

Finding 2023-002 Pell Under Awarded It was discovered during the annual audit that Pell Grant awards for the 2022-2023 academic year were calculated on the original Pell Grant Payment Schedules released by the US Dept of Education. The financial aid office did not see the communication from the US ...

Finding 2023-002 Pell Under Awarded It was discovered during the annual audit that Pell Grant awards for the 2022-2023 academic year were calculated on the original Pell Grant Payment Schedules released by the US Dept of Education. The financial aid office did not see the communication from the US Dept of Education regarding the Revised Pell Grant Payment Schedules which were released later in the spring of 2022. As a result, students were under awarded. Corrective Action The Director of Financial Aid (DFA) contacted the US Dept of Education for guidance on how to rectify the issue. The DFA was instructed to request an extension of the 2022-2023 Pell Grant processing via a link on the COD website. The extension was approved. The DFA then manually processed a Pell Grant disbursement for each Pell Grant recipient to increase the total Pell Grant award for each to the amount entitled. Each of the 80 Pell Grant recipients was issued a check as payment for the balance of the Pell Grant award. The checks were distributed the week of October 16, 2023 to each student along with a written explanation of the oversight. Going forward, the DFA will periodically check the US Dept of Education Knowledge Center website to ensure any schedule revisions are obtained. Person Responsible for Corrective Action: Ginger Krummen Schraven Timing of Corrective Action: October 2023

View Audit 3929

Finding 2291 (2023-001)

Significant Deficiency 2023

Bellin College, Inc.

WI

Questioned Costs Reporting Internal Control / Segregation of Duties

Finding 2023-001 Common Origination and Disbursement (COD) Reporting Two instances were found in which the disbursement date on COD did not match the date on the student ledger. Corrective Action Going forward, the Director of Financial Aid (DFA) will provide the Bursar with a report from the COD...

Finding 2023-001 Common Origination and Disbursement (COD) Reporting Two instances were found in which the disbursement date on COD did not match the date on the student ledger. Corrective Action Going forward, the Director of Financial Aid (DFA) will provide the Bursar with a report from the COD that reflects the disbursement date. Before posting federal award batches, the Bursar will verify the date on the batch matches the SIS system. Person Responsible for Corrective Action: Ginger Krummen Schraven Timing of Corrective Action: October 2023

View Audit 3929

Finding 2286 (2023-001)

Material Weakness 2023

Mitchell Public Schools

NE

Questioned Costs Reporting Internal Control / Segregation of Duties

2023-001 SEGREGATION OF ACCOUNTING FUNCTIONS Recommendation: The cost of additional personnel to properly segregate accounting and financial responsibilities would appear to outweigh the benefits received. However, the management and Board of Education should constantly be aware of the possibil...

2023-001 SEGREGATION OF ACCOUNTING FUNCTIONS Recommendation: The cost of additional personnel to properly segregate accounting and financial responsibilities would appear to outweigh the benefits received. However, the management and Board of Education should constantly be aware of the possibility that errors or fraud could occur and continue current practices mitigating these possibilities and examine and implement other mitigating controls when appropriate. Action Taken: The District has assessed the benefits and costs associated with proper segregation of duties for the district and has determined that costs would outweigh benefits received. The District understands the inherent risks associated with improper segregation of accounting functions. Management has communicated the need for transactions to be well supported by documentation as well as seeking appropriate authorization when appropriate. The District requires monthly reporting to the Board of Education for all disbursements to ensure transactions are proper and potential errors and irregularities are identified on a timely basis. The District will continue to review accounting procedures and processes to further mitigate this internal control deficiency whenever possible and feasible.

View Audit 3928

Finding 2282 (2023-001)

None 2023

Brownsburg Village, Inc. Dba Lakeview Place Apartments

IN

Questioned Costs Reporting

Findings - Financial Statement Audit: None Findings - Federal Award Programs Audit: U.S. Department of Housing and Urban Development Finding 2023-001: Section 223(f) Loan Program, CFDA 14.155 Recommendation: Make the required delinquent deposit to the security deposit trust account and ensure tha...

Findings - Financial Statement Audit: None Findings - Federal Award Programs Audit: U.S. Department of Housing and Urban Development Finding 2023-001: Section 223(f) Loan Program, CFDA 14.155 Recommendation: Make the required delinquent deposit to the security deposit trust account and ensure that the tenant security deposit liability is fully funded by the trust cash account at all times, as required by the Regulatory Agreement. Action Taken: Management deposited the required deposit to the security deposit trust cash account on July 17, 2023.

View Audit 3920

Finding 2276 (2023-001)

Material Weakness 2023

South Central Cooperative

SD

Internal Control / Segregation of Duties Material Weakness Reporting

The South Central Cooperative Director, Kristi Hilzendeger, is the contact person responsible for the corrective action plan for this finding. This finding is due to the size of the South Central Cooperative, which precludes staffing at a level sufficient to provide an ideal environment for interna...

The South Central Cooperative Director, Kristi Hilzendeger, is the contact person responsible for the corrective action plan for this finding. This finding is due to the size of the South Central Cooperative, which precludes staffing at a level sufficient to provide an ideal environment for internal controls. The Cooperative has developed policies to help monitor the lack of segregation of duties, but due to the size of the Cooperative it is not feasible, or fiscally responsible to implement anything else at this time. The Cooperative will continue to follow the controls currently in place.

View Audit 3913

Finding 2268 (2023-005)

None 2023

Vermont State Colleges

VT

Student Financial Aid Reporting Matching / Level of Effort / Earmarking

Corrective Action Plan: CCV In June 2023 CCV implemented a new process to verify that student records reported to the Clearinghouse have been correctly and accurately reported to the National Student Database (“NSLDS”). VTSU In March 2023 VTSU implemented new procedures to ensure all enrollment stat...

Corrective Action Plan: CCV In June 2023 CCV implemented a new process to verify that student records reported to the Clearinghouse have been correctly and accurately reported to the National Student Database (“NSLDS”). VTSU In March 2023 VTSU implemented new procedures to ensure all enrollment status changes were processed consistently. Since implementation, no new findings were identified. Timeline for Implementation of Corrective Action Plan: Immediately

View Audit 3911

Corrective Action Plans

Filters