Corrective Action Plans

Finding 47971 (2022-013)

Significant Deficiency 2022

Ucan

IL

Reporting § 200.512

Identifying Number: 2022-013 Finding: Data Collection Form Filing Corrective Actions Taken or Planned: UCAN agrees with this finding and agrees this was directly due to the turnover in the finance team and staffing challenges. The finance team will undergo additional training in federal grant requ...

Identifying Number: 2022-013 Finding: Data Collection Form Filing Corrective Actions Taken or Planned: UCAN agrees with this finding and agrees this was directly due to the turnover in the finance team and staffing challenges. The finance team will undergo additional training in federal grant requirements and SEFA reporting. Implementation will be planned for completion before March 31, 2024. Contact person is Kimberly Parish, Chief Financial Officer and she can be reached at kim.parish@ucanchicago.org.

View Audit 53429

Finding 47970 (2022-012)

Significant Deficiency 2022

Ucan

IL

Reporting § 200.510

Identifying Number: 2022-012 Finding: SEFA Reporting Corrective Actions Taken or Planned: UCAN agrees with this finding and agrees this was directly due to the turnover in the finance team and staffing challenges. The finance team will undergo additional training in federal grant requirements and ...

Identifying Number: 2022-012 Finding: SEFA Reporting Corrective Actions Taken or Planned: UCAN agrees with this finding and agrees this was directly due to the turnover in the finance team and staffing challenges. The finance team will undergo additional training in federal grant requirements and SEFA reporting. This is a repeat finding, with the original corrective action plan to be completed before March 31, 2023. We do believe that corrective actions that have been taken have resolved this issue. Contact person is Kimberly Parish, Chief Financial Officer and she can be reached at kim.parish@ucanchicago.org.

View Audit 53429

Finding 47968 (2022-010)

Significant Deficiency 2022

Ucan

IL

Reporting Internal Control / Segregation of Duties

Identifying Number: 2022-010 Finding: Reporting- Financial and performance reports Corrective Actions Taken or Planned: UCAN agrees with this finding and believes that turnover in program and financial staff caused these delays. New staff is being trained with the funders to ensure we have a good ...

Identifying Number: 2022-010 Finding: Reporting- Financial and performance reports Corrective Actions Taken or Planned: UCAN agrees with this finding and believes that turnover in program and financial staff caused these delays. New staff is being trained with the funders to ensure we have a good schedule of due dates and a good understanding of when reports and other items are due. This is a repeat finding, with the original corrective action plan to be completed before June 30, 2023. We do believe that corrective actions that have been taken have resolved this issue. Contact person is Kimberly Parish, Chief Financial Officer and she can be reached at kim.parish@ucanchicago.org.

View Audit 53429

Finding 47967 (2022-002)

Significant Deficiency 2022

School District of Philadelphia

PA

Subrecipient Monitoring Reporting

Finding number 2022-002 Reporting - Significant Deficiency and Compliance Finding Assistance Listing 93.600 Head Start Contact Person - Marcy Blender ? Comptroller - 215-400-5435 Anticipated completion date: Four months - July 31, 2023 View of responsible officials and Planned Corrective Action The ...

Finding number 2022-002 Reporting - Significant Deficiency and Compliance Finding Assistance Listing 93.600 Head Start Contact Person - Marcy Blender ? Comptroller - 215-400-5435 Anticipated completion date: Four months - July 31, 2023 View of responsible officials and Planned Corrective Action The District agrees with this finding. The District will ensure that all federal awards are reviewed for FFATA reporting and will codify the method by which that occurs in a formal procedure.

View Audit 52970

Finding 47955 (2022-001)

Material Weakness 2022

Adams Central Community Schools

IN

Questioned Costs School Nutrition Programs Cash Management § 200.303

FINDING 2022-001 Information on the federal program: Subject: Child Nutrition Cluster ? Internal Controls Federal Agency: Department of Agriculture Federal Program: School Breakfast Program, National School Lunch Program Assistance Listing Numbers: 10.553, 10.555 Pass-Through Entity: Indiana Departm...

FINDING 2022-001 Information on the federal program: Subject: Child Nutrition Cluster ? Internal Controls Federal Agency: Department of Agriculture Federal Program: School Breakfast Program, National School Lunch Program Assistance Listing Numbers: 10.553, 10.555 Pass-Through Entity: Indiana Department of Education Compliance Requirement: Reporting Audit Finding: Material Weakness Condition: An effective internal control system was not in place at the School Corporation in order to ensure compliance with requirements related to the grant agreement and the reporting compliance requirement. Context: We noted that for one claim in a sample of four, the school lunch meal count was overclaimed for the month. We noted that in October 2020 the School Corporation had overclaimed lunches by 173 meals. We noted that the sponsor claim reimbursement form had been reviewed, however, the lack of an effective review allowed the error to go unnoticed. Views of Responsible Officials: We concur with the finding. Description of Corrective Action Plan: Going forward, we will have multiple people verifying the data before submission to reimbursement for claims to make sure all meals submitted meet the criteria and eligibility of the Child Nutrition Cluster. Responsible Party and Timeline for Completion: The Food Service Director and the Corporation Treasurer are the responsible parties for this corrective action. This has already been implemented.

View Audit 52770 Questioned Costs: $1

Finding 47953 (2022-001)

Significant Deficiency 2022

Lincoln Parish School Board

LA

Subrecipient Monitoring Reporting Internal Control / Segregation of Duties

Corrective Action Plan for Current Year Findings and Questioned Costs For the Year Ended June 30, 2022 Reference # and title: 2022-001 Reporting Federal program and specific federal award identification: AL Number Award Year FEDERAL GRANTER/ PASS THROUGH GRANTOR/PROGRAM NAME United States Depar...

Corrective Action Plan for Current Year Findings and Questioned Costs For the Year Ended June 30, 2022 Reference # and title: 2022-001 Reporting Federal program and specific federal award identification: AL Number Award Year FEDERAL GRANTER/ PASS THROUGH GRANTOR/PROGRAM NAME United States Department of Education; passed through Louisiana Department of Education Education Stabilization Funds (ESSER II and III) 84.425D and 84.425U 2021 Condition: Louisiana Department of Education (LDOE) requires the School Board to complete periodic expense reports (PER) each quarter to ensure the amounts expended to date are being properly reported. Good internal controls over the reports require that they are reviewed and approved before submission to ensure amounts being submitted are complete and accurate. In testing a sample of five PER reports, it was noted that two of the five reports did not agree to the School Board?s general ledger. In both cases, the amounts being reported to LDOE were understated. Corrective action planned: A reconciliation of total program expenditures claimed for reimbursement across the entire award period to the total accumulated on the Period Expense Report will be made for each ESF grant award. The total expenditures on the Periodic Expense Report will also be reconciled to School Board?s general ledger transactions for the entire grant award period. Before each PER submission, the Accounting Manager will prepare and submit the reconciliations to the Grant Supervisor who will review and approve the information presented on the PER prior to submission to the LDOE. The Grant Supervisor will review to ensure all expenditures incurred are being reported and accurately presented. The Chief Financial Officer will monitor to ensure these procedures are implemented and are effective. Person responsible for corrective action: Mrs. Juanita Duke, Chief Financial Officer Phone: (318) 255-1430 Lincoln Parish School Board Fax: (318) 255-3203 410 South Farmerville Street Ruston, LA 71270 Anticipated completion date: June 30, 2023 Respectfully,

View Audit 52768

Finding 47909 (2022-003)

Significant Deficiency 2022

Missouri Chamber of Commerce and Industry Education Foundation

MO

Subrecipient Monitoring Reporting

CORRECTIVE ACTION PLAN U.S. Department of Labor Employment and Training Administration: Missouri Chamber Foundation respectfully submits the following corrective action plan for the year ended September 30, 2022. Name and Address of independent accounting firm: Evers & Company, CPA?s, L.L.C., ...

CORRECTIVE ACTION PLAN U.S. Department of Labor Employment and Training Administration: Missouri Chamber Foundation respectfully submits the following corrective action plan for the year ended September 30, 2022. Name and Address of independent accounting firm: Evers & Company, CPA?s, L.L.C., 520 Dix Road, Jefferson City, Missouri, 65109 Audit Period: Fiscal Year Ended September 30, 2022 The findings from the September 30, 2022 schedule of findings and questioned costs are discussed below. The findings are numbered consistently with the numbers assigned in the schedule. FINDINGS ? FEDERAL AWARDS AUDIT Significant Deficiencies: 2022-003 Federal Funding Accountability and Transparency Act Reporting Recommendation: Missouri Chamber Foundation should register in the FFATA Subaward Reporting System and enter first-tier subawards to date greater than $25,000. Missouri Chamber Foundation should continue reporting subawards going forward each time a payment is made to remain in compliance. Response: Management concurs with the above recommendation and has registered in the FSRS System and entered all subaward payments to date and will make this a part of their process each time a payment is made. If the U.S. Department of Labor Employment and Training Administration has questions regarding this plan, please telephone Becky Wekenborg at 573-634-3511. Sincerely yours Becky Wekenborg Chief Financial Officer

View Audit 46514

Finding 47904 (2022-002)

Material Weakness 2022

Tec Connections Academy Commonwealth Virtual School

MA

Questioned Costs Subrecipient Monitoring Material Weakness

MATERIAL WEAKNESS 2022-002 Action Taken: We concur with the recommendation, and we are currently taking action to negotiate the contract with our primary vendor, which provides curriculum, instruction, technology, and other services, Pearson Virtual Schools (Connections Education LLC). The new c...

MATERIAL WEAKNESS 2022-002 Action Taken: We concur with the recommendation, and we are currently taking action to negotiate the contract with our primary vendor, which provides curriculum, instruction, technology, and other services, Pearson Virtual Schools (Connections Education LLC). The new contract will be effective July 2023. TECCA administration and Board representatives have consulted with and continue to engage with legal counsel to ensure that the new contract details expenses aligned with agreed-upon terms. For the current year (FY23), we are continuing to request appropriate detail information from the vendor, Pearson Virtual Schools.

View Audit 45571 Questioned Costs: $1

Finding 47903 (2022-001)

None 2022

Tec Connections Academy Commonwealth Virtual School

MA

Questioned Costs Subrecipient Monitoring Material Weakness

FINDINGS - FINANCIAL STATEMENT AUDIT MATERIAL WEAKNESS 2022-001 - Internal control over financial reporting ? contract monitoring/compliance Action Taken: We concur with the recommendation, and we are currently taking action to negotiate the contract with our primary vendor, which provides curric...

FINDINGS - FINANCIAL STATEMENT AUDIT MATERIAL WEAKNESS 2022-001 - Internal control over financial reporting ? contract monitoring/compliance Action Taken: We concur with the recommendation, and we are currently taking action to negotiate the contract with our primary vendor, which provides curriculum, instruction, technology, and other services, Pearson Virtual Schools (Connections Education LLC). The new contract will be effective July 2023. TECCA administration and Board representatives have consulted with and continue to engage with legal counsel to ensure that the new contract details expenses aligned with agreed-upon terms. For the current year (FY23), we are continuing to request appropriate detail information from the vendor, Pearson Virtual Schools.

View Audit 45571 Questioned Costs: $1

Finding 47883 (2022-002)

Material Weakness 2022

Central Michigan University

MI

Questioned Costs Student Financial Aid Matching / Level of Effort / Earmarking

Finding Number: 2022-002 Condition: The University initiated certain returns of Title IV funds after the required timing and, for other students, did not initiate certain returns. The University performed certain return calculations using inappropriate inputs. There were three errors that attributed...

Finding Number: 2022-002 Condition: The University initiated certain returns of Title IV funds after the required timing and, for other students, did not initiate certain returns. The University performed certain return calculations using inappropriate inputs. There were three errors that attributed to this finding: 1.Of the 60 students tested, there were 29 students with discrepancies between the date utilized in return to Title IV calculations and the date required to be utilized based on Federal regulations resulting in $5,990 in questioned costs. 2.Of the 60 students tested there were 18 students identified where the University had returned the funds untimely (45 days if student attended, 30 days if never attended). 3.Of the 60 students tested, there were 4 identified where no return to Title IV calculation was performed and therefore no return of funds until students were selected for testing for the audit resulting in $1,715 in questioned costs. Views of Responsible Officials and Corrective Action Plan - The University agrees with the finding. Planned Corrective Action: The procedures used to monitor, calculate, report, and return Title IV funds are being updated in the following ways to address the errors found and the cause of the errors: ?All procedures will be tied to FSA Handbook and regulatory guidance with references linked as appropriate. This will clarify the procedures being used for the return to Title IV process. ?Procedures will include updated regulations related to module courses. This will address the errors that were caused in misinterpreting these new regulations. ?Methodology for dates being used for end of semester and date of determination will be clearly documented for each semester along with the actual dates used. For non- modular courses, the end of semester date will be the Friday of final exam week. (This will be verified via guidance received from the ask regs function of NASFAA.) This will clarify the required deadlines for each semester. ?A new report generated from our Data Warehouse system will be used to reconcile all required returns for a given semester have occurred. This will address students who were also missed in the prior year process. Contact person responsible for corrective action: Brian Bell, Director Student Account Services Anticipated Completion Date: 10/31/2022

View Audit 53360 Questioned Costs: $1

Finding 47882 (2022-001)

Material Weakness 2022

Central Michigan University

MI

Student Financial Aid Material Weakness Reporting

Finding Number: 2022-001 Condition: The University did not report certain students' status to NSLDS in an accurate and timely manner during the fiscal year. There were three errors identified that attribut...

Finding Number: 2022-001 Condition: The University did not report certain students' status to NSLDS in an accurate and timely manner during the fiscal year. There were three errors identified that attributed to this finding. 1. Of the 40 students tested, there was 15 students who withdrew/graduated whose status change was not reported accurately to the NSLDS. Student withdrew or graduated and was reported but with an incorrect effective date. 2.Of the 40 students tested, there were 7 students who withdrew/graduated whose status changes were not reported to the NSLDS within 60 days. 3.Of the 40 students tested, there were 6 students who withdrew/graduated whose status change were not reported to the NSLDS. Views of Responsible Officials and Corrective Action Plan - The University agrees with the finding. Planned Corrective Action: Following guidance provided via Plante Moran and the Dept, of Education (2020-2021 desk file review and NSLDS direct support), we will be implementing the following changes effective Fall 2022 to address correct enrollment status change reporting by: ? Adopt the use of the published academic semester end date for enrollment reporting vs using the long-standing use of the SAP/SLCM 100 Date or end of a semester payment period. It was learned that published end of an academic semester, per the Academic Calendar, is expected to be reported for use in applicable enrollment compliance timing calculations. ? Registrars will update NSLDS with the actual status effective date when learned for all unofficial withdrawal or graduated statuses. This date will be the earliest date at which Registrars retroactively learns was the actual last date of attendance that created an enrollment status change. Our past practices did not update such students but used the end of the previous semester date (SAP/SLCM 100 Date) if a student was shown to be enrolled in the next upcoming semester. This corrective action will occur for all cases even if the student is not required to have a R2T4 initiated, due to having attended at least 60% of the semester. Students who officially withdraw, in part or total, during a given semester are found in our monthly enrollment reporting as last date of attendances are supplied at the time of formal withdrawal. ?Registrars will enhance or develop (if not already in place), in conjunction with SASUB, necessary control reports to ensure accuracy of identifying students who are unofficial withdrawals at the end of an academic semester and adjust staffing resources as necessary to account for critical time periods such as the period between CMU?s Fall and Spring semesters when the university is closed. This will be necessary due to using the published last date of the semester instead of the end of the payment period date that was used in prior years. ?Planned timeline to complete corrective actions is February 2023 to account for end of Fall 2022 grading processes and manual updating of NSLDS as necessary for identified unofficial withdrawals. ?Contact person responsible for corrective action: Keith Malkowski, Registrar ?Anticipated Completion Date: February 2023 following end of semester grading and subsequent student record updating per our Date of Determination process.

View Audit 53360

Finding 47879 (2022-002)

None 2022

201 Thurbers Inc.

RI

Reporting Internal Control / Segregation of Duties

Finding 2022-002 ? Late Office of Management and Budget (OMB) Submission A. Comments on Finding and Recommendations Recommendation ? We recommend the certifies the OMB submission within thirty (30) days of report date. B. Actions Taken or Planned Auditee agrees with this finding. Going forwar...

Finding 2022-002 ? Late Office of Management and Budget (OMB) Submission A. Comments on Finding and Recommendations Recommendation ? We recommend the certifies the OMB submission within thirty (30) days of report date. B. Actions Taken or Planned Auditee agrees with this finding. Going forward, will certify the OMB submission within thirty (30) days of report date.

View Audit 53714

Finding 47878 (2022-001)

None 2022

201 Thurbers Inc.

RI

HUD Housing Programs Reporting

Finding 2022-001 ? EIV not processed for tenants during annual recertification A. Comments on Finding and Recommendations Recommendation ? We recommend the client runs tenant?s EIV reports during annual certifications and keep files in a separate secured place. B. Actions Taken or Planned Audi...

Finding 2022-001 ? EIV not processed for tenants during annual recertification A. Comments on Finding and Recommendations Recommendation ? We recommend the client runs tenant?s EIV reports during annual certifications and keep files in a separate secured place. B. Actions Taken or Planned Auditee agrees with this finding. Going forward, we will run the EIV reports for tenants. C. Status of Corrective Action on Prior Findings

View Audit 53714

Finding 47877 (2022-001)

Significant Deficiency 2022

Philadelphia Industrial Development Corporation

PA

Questioned Costs Allowable Costs / Cost Principles Cash Management

Corrective Action Plan and Status of Prior Year Findings Management?s Corrective Action Plan: Individual(s) Responsible for Corrective Action Plan Tysha Dixon Director, Financial Reporting (215) 496-8168 Anticipated Completion Date Completed March 2023 Management?s Corrective Action Plan Manage...

Corrective Action Plan and Status of Prior Year Findings Management?s Corrective Action Plan: Individual(s) Responsible for Corrective Action Plan Tysha Dixon Director, Financial Reporting (215) 496-8168 Anticipated Completion Date Completed March 2023 Management?s Corrective Action Plan Management will continue to rely on its existing controls in place; however, noting that Management will closely monitor loans and loan disbursements where the funding source has changed closely to ensure that disbursements are in accordance with funding terms and approval limits. Management will continue to rely on its existing controls that are in place, including the ongoing communication with the City for any changes in transactions that require their approval. In the circumstances where management is pending a contract amendment from the City for loans requiring additional funding, management will determine if there are unrestricted funding sources to support the change in the approved amount of the loan until the amended contract is finalized. Questioned Program: CFDA #14.218 Community Development Block Grants (CDBG)

View Audit 52296 Questioned Costs: $1

Finding 47871 (2022-001)

Material Weakness 2022

North Slope Borough School District

AK

Subrecipient Monitoring Cash Management Material Weakness

Finding 2022-001 Lack of Internal Controls over Reporting Federal Agency: U.S. Department of Agriculture (passed through the State of Alaska) Federal Program: Child Nutrition Cluster Assistance Listing Number: 10.553/10.555/10.582 Award Year: 2022 Type of Finding Material weakness in internal co...

Finding 2022-001 Lack of Internal Controls over Reporting Federal Agency: U.S. Department of Agriculture (passed through the State of Alaska) Federal Program: Child Nutrition Cluster Assistance Listing Number: 10.553/10.555/10.582 Award Year: 2022 Type of Finding Material weakness in internal control over compliance and noncompliance. Name of Contact Person: Dennis Niedermeyer Corrective Action Plan: The District will make changes in personnel to provide for the accurate entry and reporting of meal counts into the state?s reporting and claims system. The NSBSD will hired an experienced and qualified food service administrator who will review, monitor and verify compliance with accurate reporting of meal counts. Proposed Completion Date: October 28, 2022.

View Audit 52531

Finding 47860 (2022-001)

Material Weakness 2022

Mitchell Public Schools

NE

Reporting Internal Control / Segregation of Duties

2022-001 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 possibilit...

2022-001 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 51188

Finding 47849 (2022-005)

Significant Deficiency 2022

Wakefield Community School

NE

Subrecipient Monitoring Reporting Internal Control / Segregation of Duties

Finding: 2022-005 Name of Contact Person: Matt Farup, Superintendent Corrective Action: The District relies on the auditor to propose adjustments necessary to prepare the schedule of expenditures of federal awards including the related note disclosures. The District reviews the schedule of expe...

Finding: 2022-005 Name of Contact Person: Matt Farup, Superintendent Corrective Action: The District relies on the auditor to propose adjustments necessary to prepare the schedule of expenditures of federal awards including the related note disclosures. The District reviews the schedule of expenditures of federal awards and approves all adjustments. Proposed Completion Date: Immediately

View Audit 51186

Finding 47837 (2022-005)

Significant Deficiency 2022

City of Dayton, Tennessee

TN

Reporting

2022-005: Improper Controls over Grant Transactions Condition: The City does not maintain grant files in a systematic manner to identify grant activity within the City?s General Fund, Water and Sewer Fund, Electric Fund, or Sanitation funds. Grant files did not include a reconciliation of grant re...

2022-005: Improper Controls over Grant Transactions Condition: The City does not maintain grant files in a systematic manner to identify grant activity within the City?s General Fund, Water and Sewer Fund, Electric Fund, or Sanitation funds. Grant files did not include a reconciliation of grant revenue, expenses, or related deposit and retainage accounts to the general ledger or to the Schedule of Expenditures of Federal and State Awards. This weakness in the current system resulted in grants not identified initially, necessitating numerous revisions and corrections to the Schedule of Expenditures of Federal and State Awards regarding specific identification and names of grants with the associated Catalog of Federal Domestic Assistance (CFDA) number, pass-through number and placement of the grant as a Federal or State grant. Ultimately, City personnel responsible for preparation did not adequately prepare the Schedule of Expenditures of Federal and State Awards. Criteria: Uniform Guidance requires that systematic proper supporting documentation be maintained for grant activity. The Uniform Guidance also dictates that the City is responsible for preparing the Schedule of Expenditures of Federal and State Awards. Cause: Controls do not exist which require all grant information to be documented, reconciled and maintained in an orderly fashion to support grant activity. Effect: Grants could be improperly reported without proper controls. In addition, compliance issues could arise due to lack of controls. Recommendation: We recommend proper controls be established for gathering, naming, identifying, reconciling and maintaining grant documentation. This documentation should be the basis for preparation of the Schedule of Expenditures of Federal and State Awards and support all aspects of grant reconciliation, administration and compliance. Management Response: The current process for grant controls is being re-evalutated to develop stronger controls for gathering, naming, identifying, reconciling and maintaining all grant documents.

View Audit 49287

Finding 47836 (2022-001)

Material Weakness 2022

City of Dayton, Tennessee

TN

Reporting Internal Control / Segregation of Duties

2022-001: Inadequate Controls over Preparation of Financial Statements Condition: The City currently does not prepare financial statements under generally accepted accounting principles. The external auditors prepare the statements and disclosures and management approves and takes responsibility f...

2022-001: Inadequate Controls over Preparation of Financial Statements Condition: The City currently does not prepare financial statements under generally accepted accounting principles. The external auditors prepare the statements and disclosures and management approves and takes responsibility for the statements after they are prepared. Criteria: Accounting standards dictate that management is responsible for preparation of the financial statements. An audit of the financial statements of an organization requires the evaluation of the internal control system?s design of controls in generating and overseeing of the financial statements to be audited. The organization must have the ability to prepare and evaluate the financial statements? format, content, and disclosures in accordance with generally accepted accounting principles and recognize any material items missing in the financial statements through the organization?s control system. This is true whether the organization prepares the financial statements or not. These controls can be established or achieved by use of a third party organization or internally, but external auditors are never considered a control element. Cause: The City believes its current reporting meets all of the City?s internal needs. While management knows their responsibility for understanding and presenting the annual financial statements, they do not believe it is currently cost beneficial to design and/or strengthen controls over the accounting departments financial reporting process. Effect: The City does not have proper controls over financial statements preparation. Recommendation: We recommend the City continue to monitor the need, costs, and benefits of developing a control structure to oversee the preparation of financial statements in accordance with generally accepted accounting principles. Management Response: The City feels we meet our internal needs and it is not cost beneficial to hire a third party to prepare the financial statements.

View Audit 49287

Finding 47835 (2022-001)

Material Weakness 2022

Community Health Center of Central Missouri

MO

Questioned Costs Allowable Costs / Cost Principles Reporting

During the 2022 audit of Community Health Center of Central Missouri, our auditors found two instances of the PRF calculation being calculated incorrectly. The two instances were: 1) Lost revenue was calculated on a quarterly basis using post-date instead of date of service which resulted in a ne...

During the 2022 audit of Community Health Center of Central Missouri, our auditors found two instances of the PRF calculation being calculated incorrectly. The two instances were: 1) Lost revenue was calculated on a quarterly basis using post-date instead of date of service which resulted in a negative patient service revenue balance in self pay during 2020 Quarter 1-Quarter 3 2) Lost revenue was calculated without consideration of Medicaid cost report settlement and incentive revenue. This has resulted in a finding in the current year financial statements audit. Management has evaluated the finding and reviewed whether any funds need to be repaid and evaluated its controls around future provider relief reporting cycles. It has been determined that even with the two errors identified lost revenues would have been sufficient to obligate the entire award. Therefore, we have determined no repayment is necessary. If allowed in future provider relief reporting periods, Community Health Center of Central Missouri will correct the misreporting. Toby Barnett, Chief Financial Officer, is the party that has overall responsibility for this corrective action. The anticipated completion date is unknown at this time due to reporting portal for period 1 being closed. It is unknown if HHS will allow corrections to period 1 reports.

View Audit 41964 Questioned Costs: $1

Finding 47834 (2022-002)

Significant Deficiency 2022

Morrow County

OH

Cash Management Reporting Matching / Level of Effort / Earmarking § 200.208 § 200.305

Finding Number Planned Corrective Action Anticipated Completion Date Responsible Contact Person 2022-001 We will continue to discuss and review the issue with our GAAP converter to make sure adjustments are properly made to the financial statements. May 31, 2023 County Auditor 2022-002 We ...

Finding Number Planned Corrective Action Anticipated Completion Date Responsible Contact Person 2022-001 We will continue to discuss and review the issue with our GAAP converter to make sure adjustments are properly made to the financial statements. May 31, 2023 County Auditor 2022-002 We will implement procedures to ensure all quarterly reports are submitted timely under this grant. December 31, 2023 Director of Morrow County Job and Family Services and Morrow County Area Transit

View Audit 46816

Finding 47810 (2022-043)

Material Weakness 2022

State of Oregon

OR

Subrecipient Monitoring Reporting § 200.331

2022-043 Oregon Health Authority Implement controls to ensure subrecipients are appropriately identified and monitored Federal Awarding Agency: U.S. Department of Health and Human Services Assistance Listing Number and Name: 93.958 Block Grants for Community Mental Health Services; 93.959 Block G...

2022-043 Oregon Health Authority Implement controls to ensure subrecipients are appropriately identified and monitored Federal Awarding Agency: U.S. Department of Health and Human Services Assistance Listing Number and Name: 93.958 Block Grants for Community Mental Health Services; 93.959 Block Grants for Prevention and Treatment of Substance Abuse Federal Award Numbers and Years: 93.958: 1B09SM082625, 2020; 1B09SM083823, 2021; 1B09SM086032, 2022; 93.959: 1B08TI083068, 2020; 6B08TI083472, 2021; 6B08TI084667, 2022 Compliance Requirement: Subrecipient Monitoring Type of Finding: Material Weakness; Material Noncompliance Prior Year Finding: N/A Questioned Costs: N/A Criteria: 2 CFR 200.331; 45 CFR 75.352(b); 45 CFR 75.352(d) Federal regulations require pass-through entities to determine if the recipients of disbursements of federal funds are subrecipients or contractors. The subrecipient and contractor determination will impact which federal compliance requirements recipients are subject to and how program expenditures are reported on the Schedule of Expenditures of Federal Awards (SEFA). For recipients meeting the definition of a subrecipient, federal regulations require pass-through entities to evaluate each subrecipient?s risk of noncompliance with federal statutes, regulations, and the terms and conditions of the subaward for the purpose of determining appropriate subrecipient monitoring activities. Monitoring activities should be completed based on the results of the subrecipient?s determined risk to ensure subawards are used appropriately. We reviewed the department?s classification of a sample of eight of 40 Mental Health Block Grant (MHBG) and 11 of 76 Substance Abuse Block Grant (SABG) recipients of federal funds. We judgmentally selected an additional 11 MHBG and 30 SABG recipients for review after our review of the initial sample of recipients identified inconsistencies in the classification of recipients. Based on the following inconsistencies identified in our review, it is unclear if the department correctly classified recipients as subrecipients or contractors and the related expenditures are reported accordingly. As a result, the SEFA may incorrectly report pass-through or direct expenditures. One recipient of MHBG funds and 13 recipients of SABG funds were classified as contractors by the department; however, other recipients providing the same services were classified as subrecipients. As they were identified as contractors, a SEFA correction of $1.4 million was made to report as direct expenditures rather than pass-through expenditures. Three recipients of MHBG funds and one recipient of SABG funds were classified as subrecipients by the department, but it was unclear if each met the definition of a subrecipient. One recipient of MHBG funds was classified as a contractor and appeared to meet the definition of a contractor; however, payments made to this recipient were recorded as pass-through expenditures. A SEFA correction of $329 thousand was made to report as direct expenditures rather than pass-through expenditures. One recipient of SABG funds was classified as neither contractor nor subrecipient. A SEFA correction of $215 thousand was made to report as direct expenditures rather than pass-through expenditures. We also inquired of the department?s risk assessment and monitoring activities for subrecipients. Based on our inquiries, the department does not have a formal implemented process for performing risk assessments to determine appropriate monitoring activities. Moreover, the department has not implemented a formal process to ensure subrecipients comply with federal regulations, terms and conditions of the subaward, and that subaward performance goals are achieved. If subrecipient monitoring is not performed and documented, subawards could be used for unauthorized purposes and performance goals not met. We recommend department management ensure recipients of federal funds are appropriately identified as subrecipients or contractors and the corresponding disbursement of federal funds are appropriately reported as direct or pass-through expenditures. We further recommend department management comply with subrecipient monitoring requirements, develop and implement internal controls to ensure risk assessments are performed and documented for each subrecipient, and monitoring activities are completed and documented according to risk assessment results. MANAGEMENT RESPONSE: We agree with this recommendation. HSD Contracts team has already implemented additional checklists to ensure subrecipients and vendors are identified and coded properly. We will be making the checklist automated through our grant management process and fully implemented by this fall. Anticipated Completion Date: November 30, 2023 Contact: Sarah Adelhart, Interim Manager

View Audit 45093

Finding 47808 (2022-041)

Material Weakness 2022

State of Oregon

OR

Reporting Allowable Costs / Cost Principles Material Weakness § 200.303

2022-041 Oregon Health Authority Ensure expenditures of federal funds are recorded to the appropriate program Federal Awarding Agency: U.S. Department of Health and Human Services Assistance Listing Number and Name: 93.958 Block Grants for Community Mental Health Services (COVID-19) 93.959 Bloc...

2022-041 Oregon Health Authority Ensure expenditures of federal funds are recorded to the appropriate program Federal Awarding Agency: U.S. Department of Health and Human Services Assistance Listing Number and Name: 93.958 Block Grants for Community Mental Health Services (COVID-19) 93.959 Block Grants for Prevention and Treatment of Substance Abuse (COVID-19) Federal Award Numbers and Years: 93.958 ? 1B09SM083994, 1B09SM085378 (COVID-19); 93.959 ? 1B08TI083513, 1B08TI083963 (COVID-19) Compliance Requirement: Activities Allowed or Unallowed Type of Finding: Material Weakness; Material Noncompliance Prior Year Finding: N/A Questioned Costs: 93.958 - $2,268,421 (known COVID-19) Criteria: 2 CFR 200.303; 42 USC 300x-1 The department was required to submit a spending plan documenting the intended use of the awarded COVID-19 funding allocations under the Mental Health Block Grant (MHBG) and Substance Abuse Block Grant (SABG). The expenditure of COVID-19 funding should align with each block grant?s approved spending plan. Federal regulations also require recipients of federal awards establish and maintain internal controls designed to reasonably ensure compliance with federal statutes, regulations, and terms and conditions of the Federal award. Our testing of state fiscal year 2022 MHBG COVID-19 expenditures identified $10.4 million in workforce development incentive payments inappropriately recorded under the MHBG. Further inquiry into the payments revealed the department determined during state fiscal year 2023 these expenditures were not included in the MHBG COVID-19 spending plans and were not allowable activities under the MHBG. The department determined incentive payments totaling $8.1 million in COVID-19 expenditures should have been recorded under the SABG in accordance with the SABG COVID-19 spending plans. The department subsequently moved the $8.1 million of the combined $10.4 million total COVID-19 incentive payment expenditures to the SABG; however, the remaining $2.3 million in incentive payment expenditures were left in the MHBG as a funding source had yet to be determined. An adjustment to the Schedule of Expenditures of Federal Awards (SEFA) was required to move the $8.1 million in COVID-19 spending from the MHBG to SABG. The remaining $2.3 million is considered questioned costs under the MHBG. We recommend department management ensure controls are properly designed and implemented to record only allowable expenditures to the appropriate federal programs. MANAGEMENT RESPONSE: We agree with this recommendation. The identified expenditures were initially charged to the MHBG in error, and when the error was found by OHA staff, the funding source was corrected to SAPT for the authorized $8.1 million prior to the SOS audit beginning. There was still $2.3 million remaining coded to MHBG which after extensive review and leadership decision, has now been re-coded appropriately. OHA?s existing internal controls identified this issue initially, no additional corrective action is needed. Anticipated Completion Date: July 5, 2023 Contact: Sarah Adelhart, Interim Manager

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Finding 47807 (2022-048)

Significant Deficiency 2022

State of Oregon

OR

Subrecipient Monitoring Reporting Significant Deficiency

2022-048 Oregon Health Authority Improve review of federal performance progress reports Federal Awarding Agency: U.S. Department of Health and Human Services Assistance Listing Number and Name: 93.788 Opioid STR (Non-major program) Federal Award Numbers and Years: H79TI081716, 2020; H79TI083316, 2...

2022-048 Oregon Health Authority Improve review of federal performance progress reports Federal Awarding Agency: U.S. Department of Health and Human Services Assistance Listing Number and Name: 93.788 Opioid STR (Non-major program) Federal Award Numbers and Years: H79TI081716, 2020; H79TI083316, 2021 Compliance Requirement: Reporting Type of Finding: Significant Deficiency Prior Year Finding: 2019-020 Questioned Costs: N/A Criteria: 45 CFR 75.303(a); 45 CFR 75.342(b); Opioid STR Notice of Awards Federal regulations require performance progress reports (reports) be submitted semi-annually and include an overview of the goals and objectives accomplished during the funding period as stated in the grants? funding opportunity announcements. In addition, federal regulations require award grantees to establish and maintain effective internal control that provides reasonable assurance the award is managed in compliance with regulations and terms and conditions of the award. Effective controls may include review and approval of reports for completeness and accuracy. The Health Systems Division of the Oregon Health Authority (department) developed a tool to document post award monitoring in March of 2020, and for three years, the department has pointed to this tool as an action taken to ensure reports are complete and accurate. Although the department has yet to implement this tool, we found evidence of other internal controls that were partially implemented. Program now utilizes collaborative online software called Smartsheet which allows a contracted evaluator to compile subrecipient performance data the department can monitor and edit in real time. The department uses the Smartsheet as support for progress report data. We found some key data elements in the SOR2 year 2 progress report did not agree to support in Smartsheet. Program stated they reviewed a different spreadsheet supplied by the evaluator, not Smartsheet, which had totals agreeing to the submitted report. However, the department did not retain this additional spreadsheet. Without retaining the underlying support used for review, we are unable to assess the effectiveness of the department?s review of the report prior to submission. Program now requires manager review of reports prior to submission. We found evidence of manager review of the SOR2 year 2 progress report, however it was dated two days after the report was submitted. Ineffective controls could result in a misrepresentation of the grant?s performance. We recommend department management implement internal controls to ensure performance progress reports are complete and accurate prior to report submission. MANAGEMENT RESPONSE: We agree with this recommendation. To ensure performance progress reports are complete and accurate prior to report submission, the department will review current internal controls and plans to implement revised or new controls. The current process steps we are reviewing include: ? Sending the completed report via email to the program manager requesting they review the report for completeness and accuracy. ? Documenting approval via email confirmation that the report is complete and accurate prior to submission to federal funders. There is a need to revisit the internal control of having only managers designated to review the federal performance progress reports; we plan to discuss having the following individuals designated to conduct this review: principal investigator, grant coordinator, active partner, or manager. Anticipated Completion Date: December 31, 2023 Contact: Kelsey Smith-Payne, Opioid SOR Grants Project Director and Sarah Adelhart, Interim Manager

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Finding 47806 (2022-047)

Significant Deficiency 2022

State of Oregon

OR

Subrecipient Monitoring Reporting

2022-047 Oregon Health Authority Implement controls to comply with subrecipient monitoring requirements Federal Awarding Agency: U.S. Department of Health and Human Services Assistance Listing Number and Name: 93.788 Opioid STR (Non-major program) Federal Award Numbers and Years: H79TI081716, 2020...

2022-047 Oregon Health Authority Implement controls to comply with subrecipient monitoring requirements Federal Awarding Agency: U.S. Department of Health and Human Services Assistance Listing Number and Name: 93.788 Opioid STR (Non-major program) Federal Award Numbers and Years: H79TI081716, 2020; H79TI083316, 2021 Compliance Requirement: Subrecipient Monitoring Type of Finding: Significant Deficiency; Noncompliance Prior Year Finding: 2019-019 Questioned Costs: N/A Criteria: 45 CFR 75.303(d); 45 CFR 75.351; 45 CFR 75.352(b) and (d) Federal regulations require that pass-through entities evaluate each subrecipient?s risk of noncompliance with federal statutes, regulations, and the terms and conditions of the subaward for the purpose of determining appropriate subrecipient monitoring activities. Monitoring activities should be completed based on the results of the subrecipient?s determined risk. Federal regulations also require grantees take prompt action when instances of noncompliance are identified in audit findings. The Health Systems Division of the Oregon Health Authority (department) developed a formal process for performing risk assessments to determine appropriate monitoring activities and developed a tool to document post award monitoring in March of 2020, and for three years, the department has pointed to these procedures as actions taken to partially correct the original 2019 finding. However, the department has yet to implement these or other procedures, and the Opioid program has no documented monitoring plan in place. Federal regulations require the department, as a pass-through entity, to determine if the recipients of disbursements of federal funds are subrecipients or contractors. The subrecipient and contractor determination will impact how program expenditures are reported on the Schedule of Expenditures of Federal Awards (SEFA). Out of 75 contracts with 59 subrecipients, we reviewed 15 contracts with 10 subrecipients and based on the contracts? listed deliverables, we determined five of them did not appear to meet the definition of a subrecipient. Department management could not support its subrecipient determinations and could not identify who made the decisions. As a result, the SEFA may incorrectly report $751,911 as pass-through funds instead of direct expenditures. We recommend department management comply with subrecipient monitoring requirements by implementing and documenting a procedure that evaluates each subrecipient?s risk of noncompliance for the purpose of determining and performing the appropriate monitoring for each subrecipient. We also recommend department management implement procedures to ensure federal subrecipient versus contractor determinations result in accurate reporting on the SEFA. MANAGEMENT RESPONSE: We agree with this recommendation. To comply with subrecipient monitoring requirements, the authority will implement our documented procedures. We will evaluate subrecipient?s risk of noncompliance for the purpose of determining and performing the appropriate monitoring for each subrecipient. We will ensure each subrecipient completes the grantee self-risk assessment survey we?ve created; once completed and submitted this survey will generate a monitoring guidance document based on if the grantee was determined low, moderate, or high risk. This risk assessment survey and guidance document will help inform appropriate subrecipient monitoring. The auto-generated word document is emailed to the identified OHA staff, stored in the software?s report, and can be accessed by staff on an OHA intranet page (OWL site). Additionally, the authority will ensure accurate federal subrecipient versus contractor determinations. We will evaluate and improve current determination procedures, develop a comprehensive checklist or guidance document based on improvement recommendations, determine who has the primary responsibility for subrecipient determinations, and provide training as needed. Anticipated Completion Date: December 31, 2023 Contact: Kelsey Smith-Payne, Opioid SOR Grants Project Director and Sarah Adelhart, Interim Manager

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