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Corrective Action Plan - Finding 2025-01: Non-Compliance with Federal Filing Deadlines To prevent a recurrence, Saints Joachim & Anne Nursing & Rehabilitation Center has updated its internal financial reporting calendar to include a "Hard Close" date for all audit activities. Effective immediately, ...
Corrective Action Plan - Finding 2025-01: Non-Compliance with Federal Filing Deadlines To prevent a recurrence, Saints Joachim & Anne Nursing & Rehabilitation Center has updated its internal financial reporting calendar to include a "Hard Close" date for all audit activities. Effective immediately, the Controller is required to initiate the upload of the Data Collection Form and all related financial statements to the Federal Audit Clearinghouse no later than September 15th of each year. This 15-day buffer will ensure that any technical difficulties with the FAC portal or administrative delays do not impact our compliance with federal reporting deadlines. Contact: Christine D'Ottavio, CFO Saints Joachim & Anne Nursing and Rehabilitation Center, 2720 Surf Avenue, Brooklyn, New York 11224 Date: April 28, 2026
Finding 2025-006: Reporting and Expenditure Cutoff - Material Weakness Corrective Action Plan: A Federal grant spreadsheet for each grant year is completed for each award. In addition, the following policies will be implemented. • Implement a Grant Reporting and Period-of-Performance Review Procedur...
Finding 2025-006: Reporting and Expenditure Cutoff - Material Weakness Corrective Action Plan: A Federal grant spreadsheet for each grant year is completed for each award. In addition, the following policies will be implemented. • Implement a Grant Reporting and Period-of-Performance Review Procedure. • Maintain a reporting calendar for each Federal and State award. • Before submission, confirm the grant reporting period, reconcile expenditures to the general ledger, verify transaction dates and period of performance, review receipts/reimbursement activity, and remove subsequent-period activity. • Require documented supervisory review and approval before submission. • Set internal report preparation deadlines at least 10 business days before the external due date whenever possible. Responsible Official: Chief Executive Officer, Chief Financial Officer, Financial Coordinator, Grant Program Director and Grant Administrative Support Anticipated Completion Date: 09/25/2026
CONDITION: During my review of the District’s compliance with the laws and regulations related to filing its federal grant program ‘Quarterly Cash On Hand Reconciliations’, and ‘Final Expenditure Reports (FER)’, I noted that the School District did not file the required Quarterly Cash on Hand Reconc...
CONDITION: During my review of the District’s compliance with the laws and regulations related to filing its federal grant program ‘Quarterly Cash On Hand Reconciliations’, and ‘Final Expenditure Reports (FER)’, I noted that the School District did not file the required Quarterly Cash on Hand Reconciliations and required Final Expenditure Report (FER) for the 2024-2025 fiscal year Title 1 grant program within the required reporting timeframes as specified by the Pennsylvania Department of Education and the Uniform Guidance. CRITERIA: The Department of Education requires the completion of the Quarterly Cash on Hand Reconciliation by the 10th working day after each quarter, and submission of a ‘Final Expenditure Report’ (FER) within 30 days of expending all grant funding. In addition, Section 2 CFR 200.344 of the Uniform Guidance requires the submission of financial reports no later than 90 calendar days after the end date of the grant period for performance (or an earlier date as agreed-upon by the pass-through entity and subrecipient, which in this case is 30 days as required by PDE). RECOMMENDATION: I recommend that the District develop fiscal procedures to ensure that ‘Quarterly Cash on Hand Reconciliations’ and ‘Final Expenditure Reports’ for future fiscal years are completed and filed in a timely manner based on supporting financial information obtained from the District’s business office, in order to 1) comply with PDE reporting requirements for the District’s applicable federal programs, and 2) to avoid any future sanctions such as suspension of grant payments by PDE as a result of not filing these reports in a timely manner. These procedures should include, at a minimum, cross-training of business office personnel with regard to the completion of these reports so that the absence of one individual would not result in these reports not being filed in a timely manner. MANAGEMENT’S PLANNED CORRECTIVE ACTION: The School District will implement procedures for timely and accurate reporting of the Quarterly Cash on Hand Reconciliation Reports and Final Expenditure Report (FER). The financial information in the Quarterly Cash on Hand Reconciliation Report and FER will accurately reflect internal reporting contained in the School District’s general ledger according to the Manual of Accounting and Financial Reporting for Pennsylvania Local Educational Agencies and the PA Chart of Accounts. The timeframe for completion will commence during the later part of the 2025-2026 fiscal year and continue into the first half of 2026-2027 fiscal year until completed. These procedures will be applied going forward to ensure the accurate and timely filing of the required federal program Quarterly Cash on Hand Reconciliation Reports and the Final Expenditure Report (FER) for submission to the Pennsylvania Department of Education.
Reporting – Financial and Performance Assistance Listing Number 14.251 – Economic Development Initiative, Community Project Funding, and Miscellaneous Grants U.S. Department of Housing and Urban Development (HUD) Federal Award Identification Number(s): B-22-CP-CO-0165 and B-23-CP-CO-0280 Award Year ...
Reporting – Financial and Performance Assistance Listing Number 14.251 – Economic Development Initiative, Community Project Funding, and Miscellaneous Grants U.S. Department of Housing and Urban Development (HUD) Federal Award Identification Number(s): B-22-CP-CO-0165 and B-23-CP-CO-0280 Award Year – 2022 and 2023 Condition: During testing, it was noted that the semiannual performance reports required to be submitted during calendar year 2025 were not submitted by the required deadlines. The reports, which were due in January 2025 and July 2025, were not submitted until September 2025. As a result, the Grantee did not submit required financial and performance reports within the timeframe prescribed by the grant agreement and 2 CFR §§ 200.328 and 200.329. Additionally, management could not provide evidence of review for one of the reports. Planned Corrective Action: Departments that administer grants will establish and maintain a grant tracking process to identify required reporting, due dates, and personnel responsible for the completion and review of the required reporting. This tracking process will be documented and shared with the Controller’s Office. In addition, Departments will maintain documentation of the review and approval of reports as part of the grant documentation. City of Aurora Responsible Party: Stephanie Keiper, Homelessness Division Manager; Matthew Kipp, Manager of Business Services; Tim Sherbondy, Grant Compliance Officer; and Tyra Litzau, Controller Anticipated Completion Date: March 31, 2027
Reporting – Special Reports for FFATA and Subrecipient Monitoring Assistance Listing Number 14.251 – Economic Development Initiative, Community Project Funding, and Miscellaneous Grants U.S. Department of Housing and Urban Development (HUD) Federal Award Identification Number(s): B-22-CP-CO-0165 Awa...
Reporting – Special Reports for FFATA and Subrecipient Monitoring Assistance Listing Number 14.251 – Economic Development Initiative, Community Project Funding, and Miscellaneous Grants U.S. Department of Housing and Urban Development (HUD) Federal Award Identification Number(s): B-22-CP-CO-0165 Award Year – 2022 Condition: During testing of FFATA reporting requirements, it was noted that the City had one applicable first-tier subrecipient; however, the City did not report the subaward information in SAM.gov. Additionally, during testing of subrecipient monitoring, it was noted that the City did not communicate required federal award information or increase in funding to its sole subrecipient as required by 2 CFR § 200.332(a). Planned Corrective Action: The City corrected the FFATA reporting in SAM.gov and the reporting now includes the subaward information for the subrecipient. In addition, the City provided a letter to its sole subrecipient to communicate the required federal award information. Additional procedures will be implemented for Departments to identify subrecipients during the grant set up process with the Controller’s Office to ensure that FAFTA reporting is completed for required grants and subrecipients. Finally, the City will continue to work with the Legal Department to create subrecipient agreements and ensure that federal award information is detailed in the executed agreements. City of Aurora Responsible Party: Stephanie Keiper, Homelessness Division Manager; Tim Sherbondy, Grant Compliance Officer; and Tyra Litzau, Controller Anticipated Completion Date: December 31, 2026
Grant Reporting (SF-425 Submissions) Federal Agency Name: Department of Agriculture / Forest Service Assistance Listing Number: 10.720 (Infrastructure Investment and Jobs Act Community Wildfire Defense Grant) Finding Summary: Federal expenditures reported on Line 10e of the quarterly Federal Financi...
Grant Reporting (SF-425 Submissions) Federal Agency Name: Department of Agriculture / Forest Service Assistance Listing Number: 10.720 (Infrastructure Investment and Jobs Act Community Wildfire Defense Grant) Finding Summary: Federal expenditures reported on Line 10e of the quarterly Federal Financial Reports (SF-425) did not reconcile directly to the Cooperative’s general ledger records for the applicable reporting period, resulting in an understatement of reportable expenditures for that period. Views of Responsible Officials & Management Response: Management disagrees with the finding as a Material Noncompliance and Material Weakness. Management acknowledges a timing discrepancy existed between quarterly filings and standard accrual rules, but maintains this matter does not constitute material noncompliance or a material weakness for the following reasons: 1. Reliance on Explicit Federal Directives: While management acknowledges Uniform Guidance under 2 CFR 200 requires financial reporting to align directly with accounting records, the Cooperative prepared and submitted the SF-425 reports in strict good-faith compliance with explicit, written instructions provided by the Forest Service’s Grant Department. See Exhibit B. Seeking out, receiving, and adhering to written directives from the federal oversight agency demonstrates a strong culture of compliance and an active effort to align with funder expectations, rather than a disregard for federal reporting statutes. 2. No Financial Risk or Loss of Funds: All underlying grant expenditures were valid, allowable, and verified. No questioned costs were identified. Because the reporting timing discrepancy was a direct result of following the awarding agency’s specific written guidance, management maintains this does not constitute a systemic control failure. The understatement in expenditures is directly related to a timing issue, resulting in zero financial risk to the federal government. Corrective Action Planned: Management has implemented formal control enhancements covering both grant reporting schedules and contract administration: o Revised Report Timing & Reconciliation Controls: To resolve the conflict between agency-specific guidance and independent audit standards, management has updated the operational timing and preparation method for Form SF-425. All future quarterly reports will be generated directly from general ledger accrual records strictly as of the quarter-end date. The SF425 and SF270 forms will be submitted separately in an effort to mitigate the timing issue. This updated timeline satisfies requirements for accrual reporting while providing an auditable submission trail for the granting agency. Responsible Person(s): Stacie Dellamano, Chief Financial Officer Anticipated Completion Date: December 31, 2026 Exhibit B From: Fusselman, Sarah - FS, ID Sarah.Fusselman@usda.gov Sent: Friday, July 17, 2026 10:09 AM To: Katie Dalton Subject: Re: [External Email]SF 425 Question for Grant 24-DG-11010013-052 Attachments: Grant Reminders for State, Private & Tribal Forestry R1 R4.pdf; POST AWARD Training2025.pptx Hi Katie, Please review the attached documents that outline how to properly complete the SF-425. I’m also including a helpful training video provided by the U.S. Fish and Wildlife Service: Please keep in mind that in the past, as the GMS for this award, I was able to piece together Flathead Electric’s reporting approach and document why certain entries were allowable on earlier SF-425 submissions. Going forward, because some quarters are busier than others, additional Forest Service administrative staff help manage the reporting inbox. They review SF-425s closely, and since fewer than three cooperators out of more than 500 awards submit the SF-425 and SF-270 simultaneously, these submissions will continue to be questioned. When the SF-425 shows an expenditure as “received” during the same period in which the SF-270 was just submitted, FS staff will request corrections from Flathead Electric each time. Additionally, with the upcoming FS reorganization, I may not remain the point of contact for this award. Future reviewers will need Flathead Electric to clearly explain its accounting methodology every reporting cycle. Please have Flathead Electric’s auditor reach out to my supervisor, Kamie Vaux, at kami.vaux@usda.gov so that the Forest Service can better understand what clarification the auditor is seeking. Thank you, and please let me know if you need anything additional. Sarah Fusselman Grants Management Specialist Forest Service State, Private & Tribal Forestry, Region 1 & 4 c: 208-479-3095 sarah.fusselman@usda.gov Exhibit B Continued From: Vaux, Kamie - FS, UT <kamie.vaux@usda.gov> Sent: Tuesday, July 28, 2026 9:18 AM To: Katie Dalton; Kathryn Eigenberg Cc: Stacey Nelson; Stacie Dellamano Subject: RE: [External Email]RE: Form 425 Reporting Good morning, Thank you for the detailed explanation. Yes—your understanding is correct, and the information you outlined aligns with Forest Service expectations. As we discussed, the timing differences between the quarterly SF-270 and SF-425 submissions naturally affect line 10e, and the values you’ve reported previously are exactly what we would expect to see. Adjusting the submission timing as you described may help reduce the variance, but we recognize that invoice timing will not always allow for that approach. And you’re also right that lines 10a, 10b, and 10c are generally not required for this program, and when they are included, they are not reviewed by the Forest Service. Please let me know if any additional clarification would be helpful—I’m happy to assist further. Thank you, Kamie Kamie Vaux Supervisory Grants Specialist Forest Service State, Private & Tribal Forestry Region 1 and Region 4 c: 385-278-3255 kamie.vaux@usda.gov 324 25th Street Ogden, UT 84401
Preparation of Schedule of Expenditures of Federal Awards (SEFA) Federal Agency Name: Department of Agriculture / Forest Service / Rural Business- Cooperative Service Assistance Listing Numbers: 10.720 (Infrastructure Investment and Jobs Act Community Wildfire Defense Grant) Finding Summary: Audit a...
Preparation of Schedule of Expenditures of Federal Awards (SEFA) Federal Agency Name: Department of Agriculture / Forest Service / Rural Business- Cooperative Service Assistance Listing Numbers: 10.720 (Infrastructure Investment and Jobs Act Community Wildfire Defense Grant) Finding Summary: Audit adjustments were made to reportable expenditure amounts on two of the four programs listed on the draft Schedule of Expenditures of Federal Awards (SEFA), and there was no formally documented review or approval process over the client prepared schedule. Views of Responsible Officials & Management Response: Management partially agrees with the finding. Management acknowledges the SEFA preparation requires improvement. However, management respectfully disagrees with the classification of this deficiency as a Material Weakness and maintains that it is more accurately characterized as a Significant Deficiency based on the following facts: 1. Accuracy of General Ledger & Cost Record Integrity: The underlying project expenditures were completely accurate, fully recorded in the Cooperative's accounting records, and immediately available for review and audit. No unrecorded, unsupported, or unallowable expenditures occurred, and no questioned costs were identified. 2. Active Internal Control & Proactive Consultation: Management actively sought to ensure accurate reporting by reaching out via email for technical advice regarding reportable fiscal year expenditures prior to SEFA finalization (see Exhibit A). Eide Bailly offers SEFA preparation as an allowable non-attest service without impairing independence; however, Management prepared the draft schedule internally in good-faith reliance on the technical direction provided. Seeking expert technical advice reflects an active internal control process focused on compliance, rather than a failure of internal controls. 3. Isolated Allocation & Presentation Error: The general ledger was completely accurate and all underlying grant expenditures were valid; the core financial data and grant funds were never at risk. The variance was strictly limited to the post accounting allocation required for SEFA presentation. Under the CWDG grant structure, project invoices contained co-mingled expenses covering both federal and non-federal lands. While 100% of these valid project costs were properly recorded in the accounting system, the initial SEFA draft did not apply the required percentage allocation to isolate the federal portion. This represents an isolated technical reporting calculation rather than a fundamental breakdown in the Cooperative’s internal controls over financial reporting or grant administration. Corrective Action Planned: Management has refined its SEFA preparation methodology to distinguish general ledger project accounting from reportable federal expenditures. Rather than utilizing total GL account balances, internal review controls now ensure SEFA reporting is strictly derived from verified, net federally reimbursable costs after applying all applicable grant allocation formulas. Additionally, management has documented the preparation and review process for the SEFA to ensure appropriate documentation and oversight. Responsible Person(s): Stacie Dellamano, Chief Financial Officer Anticipated Completion Date: Immediately and for December 31, 2026, SEFA presentation Exhibit A From: Stacie Dellamano <s.dellamano@flathead.coop> Sent: Friday, December 12, 2025 10:32 AM To: Stacey Nelson <smnelson@eidebailly.com>; Julie Urban J.Urban@flathead.coop Cc: Parker Van Zee <pvanzee@eidebailly.com> Subject: Re: Flathead Electric - Single Audit Discussion Stacey, I'm working on updating a SEFA. This will be the first year for a single audit on some of these grants, BUT there were quite a few expenditures in 2024. My question is on the SEFA, what number do I enter under the "expenditure" column? Do I enter 2025 related expenditures only or "Grant-To- Date" expenditures? Stacie Dellamano Chief Financial Officer Flathead Electric Cooperative s.dellamano@flathead.coop | Direct (406) 751-4463 | Cell (406) 871--8993 Toll Free (800) 735-8489 2510 US Highway 2 East, Kalispell, MT 59901 www.flatheadelectric.com Exhibit A Continued From: Stacey Nelson <smnelson@eidebailly.com> Sent: Friday, December 12, 2025 11:12 AM To: Stacie Dellamano <s.dellamano@flathead.coop>; Julie Urban <J.Urban@flathead.coop> Cc: Parker Van Zee <pvanzee@eidebailly.com> Subject: RE: Flathead Electric - Single Audit Discussion It should be the expenditures under your fiscal year only. Do not include expenditures from a prior year. Do you have any FEMA Disaster funds? As those have a little different process. If so, we can set up a call to discuss. If not applicable, you can ignore. Thanks! Stacey Nelson Assurance Partner Sioux Falls, SD T 605.367.6746
Finding 2025-001 Allowable Cost Principles and Activities Allowed or Unallowed Significant Deficiency in Internal Control Over Compliance Assistance Listing Number 21.029 While Wabash currently maintains informal procedures for coding and reviewing invoices and payroll records, we recognize the need...
Finding 2025-001 Allowable Cost Principles and Activities Allowed or Unallowed Significant Deficiency in Internal Control Over Compliance Assistance Listing Number 21.029 While Wabash currently maintains informal procedures for coding and reviewing invoices and payroll records, we recognize the need for a formalized, written policy governing expenditures charged to federal awards. To address identified significant deficiency, Wabash implemented a comprehensive written policy as of June 30, 2026. This policy will formalized the coding, review, and reporting processes for all federal expenditures. Key improvements included: • Enhanced Internal Controls: We established a clear segregation of duties to ensure oversight and accuracy. • Timely Reporting: We refined our payroll allocation process. Previously, payroll expenditures were withheld pending budget verification, which occasionally led to reporting delays. New controls will ensure that all expenditures, including payroll, are reported within the required quarterly timeframes. • Monitoring: The Controller will oversee the development of these procedures and remain responsible for ongoing monitoring and compliance. These steps will ensure our financial practices meet federal standards and provide rigorous oversight of project funds. Contact person(s): Cheryl Gaither, Controller Justin Gephart, Chief Operating Officer
Recommendation: The Town should implement procedures to reconcile all federal reporting to the general ledger. Response: A full reconciliation of the ARPA accounts has been performed and aligned with the previous compliance reporting. A chart of accounts conversion is under way which will segregate ...
Recommendation: The Town should implement procedures to reconcile all federal reporting to the general ledger. Response: A full reconciliation of the ARPA accounts has been performed and aligned with the previous compliance reporting. A chart of accounts conversion is under way which will segregate federal funds from one fund to six funds for comprehensive oversight in the general ledger.
Untimely Submission of the Single Audit Reporting Package – Criteria: Title 2 CFR 200.512(a)(1) requires the audit, data collection form, and reporting package to be submitted to the Federal Audit Clearinghouse within 30 calendar days after the auditee receives the auditor's reports or nine months a...
Untimely Submission of the Single Audit Reporting Package – Criteria: Title 2 CFR 200.512(a)(1) requires the audit, data collection form, and reporting package to be submitted to the Federal Audit Clearinghouse within 30 calendar days after the auditee receives the auditor's reports or nine months after the end of the audit period, whichever is earlier, unless an extension is authorized by the cognizant or oversight agency for audit. Condition: The System's fiscal year ended September 30, 2025. The System's audited financial statements for that year were issued on June 9, 2026. Accordingly, the reporting package was required to be submitted on or before June 30, 2026. The System did not complete and submit the reporting package by that date. Cause: During the System's wind-down period, substantially all internal accounting personnel had been terminated, and responsibility for preparing the financial information and supporting schedules necessary to complete the audit was transitioned to external consultants. Delays in completing the financial close, preparing an accurate Schedule of Expenditures of Federal Awards, and providing supporting documentation prevented timely completion and submission of the reporting package. Effect: The System did not comply with the reporting deadline established by 2 CFR 200.512(a)(1). Recommendation: Management should establish a formal process for monitoring Uniform Guidance reporting deadlines, assigning responsibility for completion of the audit and data collection form, establishing interim milestones for completing the financial statements and Schedule of Expenditures of Federal Awards, and escalating delays to management and those charged with governance sufficiently in advance of the required filing date. Responsible Party: Sidi Cuko, President and Chief Executive Officer. Corrective Actions Taken or Planned: Management agrees with the finding. Management has engaged additional qualified external accounting resources to assist with completing the financial close, preparing the Schedule of Expenditures of Federal Awards, providing the supporting documentation necessary to complete the audit, and completing the data collection form and single audit reporting package. Management has also established additional monitoring and oversight procedures for the System's remaining federal reporting obligations. These procedures include assigning responsibility for required reporting activities; identifying applicable reporting requirements and submission deadlines; establishing interim milestones for completing the financial statements, Schedule of Expenditures of Federal Awards, data collection form, and reporting package; monitoring progress toward completion; and communicating potential delays to management and the Board of Trustees. Management will maintain sufficient accounting resources and appropriate monitoring and oversight procedures through completion of the single audit submission and the System's remaining federal reporting obligations. Implementation Status: Additional external accounting resources and monitoring and oversight procedures were implemented during 2026 and will remain in effect through completion of the single audit submission and the System's remaining federal reporting obligations.
Management agrees with the finding and has implemented a revised reporting checklist to ensure compliance going forward.
Management agrees with the finding and has implemented a revised reporting checklist to ensure compliance going forward.
Audit Finding Reference: 2025-004 Improve Compliance and Controls Over Reporting Planned Corrective Action: This finding was identified by the Town’s independent auditor during the FY2025 single audit and was not issued by the U.S. Department of the Treasury or another federal agency. Before any rem...
Audit Finding Reference: 2025-004 Improve Compliance and Controls Over Reporting Planned Corrective Action: This finding was identified by the Town’s independent auditor during the FY2025 single audit and was not issued by the U.S. Department of the Treasury or another federal agency. Before any remaining SLFRF Project and Expenditure Report is submitted, the preparer will reconcile current-period and cumulative expenditures to the general ledger and supporting grant schedule. A second finance official will review the reconciliation and proposed submission. The preparer and reviewer will sign and date the reconciliation, which will be retained with a copy of the submitted report. The same control will be used for a future material federal financial report when circumstances warrant. Planned Implementation Date of Corrective Action: Before the next remaining SLFRF report is submitted; otherwise, upon the next applicable material federal report Person Responsible for Corrective Action: Assistant Town Administrator/Finance Director and Town Accountant, with preparation and review duties appropriately separated
Audit Finding Reference: 2025-002 Improve Controls Over Preparation and Review of the Schedule of Expenditures of Federal Awards (SEFA) Planned Corrective Action: This finding was identified by the Town’s independent auditor during the FY2025 single audit and was not issued by a federal awarding age...
Audit Finding Reference: 2025-002 Improve Controls Over Preparation and Review of the Schedule of Expenditures of Federal Awards (SEFA) Planned Corrective Action: This finding was identified by the Town’s independent auditor during the FY2025 single audit and was not issued by a federal awarding agency. In any year in which the Town is required to prepare a Schedule of Expenditures of Federal Awards (SEFA), the Town Accountant will prepare the schedule from the general ledger and grant records, confirm federal award information with affected departments, and complete a brief preparation checklist. The Assistant Town Administrator/Finance Director will independently review the SEFA for completeness and agreement to the general ledger before it is provided to the auditors. The schedule, supporting reconciliation, and signed checklist will be retained. Planned Implementation Date of Corrective Action: Before the next SEFA is provided to the auditors, when a SEFA is required Person Responsible for Corrective Action: Assistant Town Administrator/Finance Director and Town Accountant
Finding 2025-001 Identification of the federal program: Federal Agency: U.S. Department of Health and Human Services (HHS), Health Resources and Services Administration (HRSA) Assistance Listing: 93.926 Healthy Start Initiative (HSI) Pass-Through Grantor: Not applicable Award Number: H4903591 Award ...
Finding 2025-001 Identification of the federal program: Federal Agency: U.S. Department of Health and Human Services (HHS), Health Resources and Services Administration (HRSA) Assistance Listing: 93.926 Healthy Start Initiative (HSI) Pass-Through Grantor: Not applicable Award Number: H4903591 Award Period: 5/1/2025-3/31/2026 Summary of Finding: Four instances where the required Federal Funding Accountability and Transparency Act (FFATA) reports were not submitted in SAM.gov timely in FY 2025. In addition, we noted for all six FFATA reports that were submitted in SAM.gov, there was no evidence of review and approval of the reports prior to submission. Under the HSI program, there were five subrecipients that had a total of six subawards (one new agreement and five amendments) in FY 2025. Total subrecipient’s costs are $750,822 in FY 2025. The total federal expenditures for the HSI program for FY 2025 were $1,052,118. Corrective Action Plan: Management has implemented a comprehensive corrective action plan to address the FFATA reporting deficiencies identified in the prior audit. Effective September 1, 2025, Corewell Health established a formal written FFATA reporting procedure that includes detailed requirements for identifying and reporting amended subawards throughout the award lifecycle. The procedure also requires documented supervisory review and approval of all FFATA submissions prior to filing to ensure completeness, accuracy, and compliance with federal reporting requirements. The procedure has been formally communicated to and implemented by the Office of Sponsored Programs and Research Finance teams. Ongoing training, monitoring, and periodic reviews of compliance with the procedure have been incorporated into operational processes to reinforce adherence to reporting requirements and to prevent recurrence. Although these corrective actions were implemented effective September 1, 2025, certain FFATA reporting deadlines applicable to the current audit period occurred before the implementation date. As a result, reports due prior to September 1, 2025 were not submitted within the required timeframe and did not include documented evidence of review before submission. Consequently, the finding was reported as a repeat finding in the current audit period. Management believes the corrective actions now in place adequately address the underlying control deficiencies and will support timely and compliant FFATA reporting going forward. Individuals Responsible for Corrective Action: Paula Schuiteman-Bishop, Vice President, Research Administration, Joe Fugitt, Senior Director, Research Administration, Development and Billing Integrity, Jodi Bohnhorst, Director, Research Development, Brandy Jurdzy, Manager, Research Sponsored Programs Timing of corrective action: September 1, 2025 and going forward.
Corrective Action Plan: The City of Charleston will implement internal controls and procedures to ensure all required reports are prepared, reviewed, and submitted within the program’s required timeframes, and with the correct amounts. Anticipated Completion Date: Fiscal Year 2026
Corrective Action Plan: The City of Charleston will implement internal controls and procedures to ensure all required reports are prepared, reviewed, and submitted within the program’s required timeframes, and with the correct amounts. Anticipated Completion Date: Fiscal Year 2026
Corrective Action Plan for Finding 2025-002 Finding Title: Noncompliance with Single Audit Report Submission Requirements Federal Program(s): All programs included in the FY 2025 Single Audit Contact Person Responsible for Corrective Action: Dr. Veronica Morley, Superintendent Anticipated Completion...
Corrective Action Plan for Finding 2025-002 Finding Title: Noncompliance with Single Audit Report Submission Requirements Federal Program(s): All programs included in the FY 2025 Single Audit Contact Person Responsible for Corrective Action: Dr. Veronica Morley, Superintendent Anticipated Completion Date: March 31, 2027 Corrective Action Plan: Management concurs with the finding. The delay in submitting the Single Audit reporting package to the Federal Audit Clearinghouse was due delayed completion of audited financial statements. The school is in the process of getting current with audited financials statements.
Condition: The Town did not submit its single audit reporting package or data collection form within the required timeline. Corrective Action Plan Corrective Action Planned: The Town will establish internal deadlines to submit the report at least 30 days before the federal due date. The responsibili...
Condition: The Town did not submit its single audit reporting package or data collection form within the required timeline. Corrective Action Plan Corrective Action Planned: The Town will establish internal deadlines to submit the report at least 30 days before the federal due date. The responsibility to track audit milestones and communicate progress to management weekly will be assigned to the Grant Accountant, and the Town will schedule earlier engagement with the external auditor and ensure all required documentation is accurately prepared. The Town’s delay in submitting the Single Audit was due in part by the timing of the prior-year audit, which was not received until late and compressed the timeline for beginning and completing the subsequent audit. This occurred during a period of significant turnover within the Finance Department, including the loss of institutional knowledge related to grant reporting, audit preparation, and year-end closing procedures. The department has since restructured and expanded staffing, strengthened training, and developed additional procedures, workbooks, and guides to improve continuity and reduce reliance on individual staff knowledge. The Town has also improved its grant tracking and audit preparation processes, including standardized project account structures, enhanced reconciliation workbooks, and earlier preparation of the SEFA and supporting documentation. Finance is in the process of FY 2025-26 closing process earlier so that reconciliations, year-end adjustments, grant documentation, and audit schedules can be completed well in advance of fieldwork and prevent prior-year audit delays from continuing into future audit cycles. Name(s) of Contact Person(s) Responsible for Corrective Action: Aimee Beleu, Finance Director Anticipated Completion Date: The corrective action will be implemented to take effect for the audit of the FY 2025-26 financial statements.
Effective immediately, New St. Paul Head Start Agency, Inc. will use the agency’s internal calendar system to provide the Fiscal Director with advance notification of all SF-425 report due dates.
Effective immediately, New St. Paul Head Start Agency, Inc. will use the agency’s internal calendar system to provide the Fiscal Director with advance notification of all SF-425 report due dates.
Views of Responsible Officials and Planned Corrective Action: Management acknowledges that, for certain reimbursement requests, documentation evidencing review and approval prior to submission was not retained. Management notes, however, that the underlying expenditures included in the reimbursement...
Views of Responsible Officials and Planned Corrective Action: Management acknowledges that, for certain reimbursement requests, documentation evidencing review and approval prior to submission was not retained. Management notes, however, that the underlying expenditures included in the reimbursement requests were valid, properly recorded in the general ledger, and supported by appropriate accounting records. No questioned costs were identified, and the amounts requested for reimbursement were consistent with allowable program expenditures. Management believes the condition was limited to documentation of review rather than the absence of an actual review process. Reimbursement requests were prepared using underlying financial records and submitted based on incurred costs; however, evidence of supervisory review was not consistently retained during a period of staffing transition. Upon identification, management evaluated its cash management and drawdown processes and reinforced expectations related to documentation and retention of review and approval. Review and approval of reimbursement requests are now consistently evidenced through electronic or physical sign off, and supporting documentation is maintained in a centralized and accessible manner. In addition, management has reinforced alignment of drawdown activity with underlying accounting records to ensure consistency between reimbursement requests, financial reporting, and the general ledger. Management believes this condition represents a documentation gap during a defined period rather than a systemic breakdown in internal control over compliance. The underlying control activities—preparation of drawdowns based on recorded expenditures and supervisory oversight—were in place and functioning, and the enhancements implemented ensure consistent documentation and retention of those controls going forward. Management will continue to monitor these processes as part of ongoing financial operations to ensure compliance with applicable requirements, including 2 CFR Part 200. Management respectfully notes that this condition was limited to the retention of documentation evidencing review and approval and did not impact the allowability of costs, the accuracy of reimbursement requests, or compliance with program requirements. All expenditures were properly supported and recorded, and no questioned costs were identified.
Views of Responsible Officials and Planned Corrective Action: Management acknowledges that certain required financial and narrative reports were not submitted within the prescribed timelines and that documentation supporting the preparation and review of one cumulative report was not retained. Manag...
Views of Responsible Officials and Planned Corrective Action: Management acknowledges that certain required financial and narrative reports were not submitted within the prescribed timelines and that documentation supporting the preparation and review of one cumulative report was not retained. Management notes, however, that all required reports were ultimately completed and submitted, and no questioned costs were identified. Management believes the condition reflects a lapse in consistent execution and documentation of existing reporting processes during a period of staffing transition, rather than a fundamental breakdown in the underlying control environment. The underlying financial data supporting the reports was complete and accurate, and the delays did not impact the allowability of expenditures or program compliance. Upon identification, management conducted a review of reporting processes and reinforced controls to ensure greater consistency, timeliness, and documentation. Reporting requirements and due dates are maintained in a centralized tracking system accessible to Program, Finance, and Compliance staff, and cross-functional coordination occurs regularly to monitor progress and upcoming deadlines. Management has strengthened oversight by clarifying ownership of reporting deliverables, reinforcing expectations for timely submission, and requiring documented evidence of preparation and review prior to submission. Additional emphasis has been placed on timely escalation of potential delays and maintaining complete documentation to support all reporting activities. Management believes these enhancements address the execution and documentation gaps identified and significantly reduce the likelihood of recurrence. These processes have been incorporated into ongoing operations and will continue to be monitored to ensure compliance with grant requirements and applicable regulations, including 2 CFR Part 200.
Views of Responsible Officials and Planned Corrective Action: Management acknowledges that documentation supporting the review and approval of a reimbursement request was not retained, and that drawdown activity during the period did not consistently align with the timing of incurred expenditures. M...
Views of Responsible Officials and Planned Corrective Action: Management acknowledges that documentation supporting the review and approval of a reimbursement request was not retained, and that drawdown activity during the period did not consistently align with the timing of incurred expenditures. Management notes that this condition was identified during a period of staffing transition and resulted in a lapse in documentation and timeliness, rather than an absence of underlying financial controls. Management further notes that the expenditure underlying the reimbursement request were valid, properly recorded in the general ledger, and supported by appropriate accounting records. The condition was limited to documentation of review and the timing of drawdown activity, and no questioned costs were identified. Upon identification, management evaluated and reinforced its cash management and drawdown processes. Drawdown requests are now consistently prepared based on underlying accounting records and aligned with incurred expenditures. A formal review and approval step has been implemented and is now required prior to submission, with evidence of review retained electronically or physically for audit purposes. In addition, management has strengthened oversight of drawdown timing to better align reimbursements with the period in which costs are incurred, reducing the risk of delayed submissions and ensuring consistency with related financial reporting. Management believes this condition represents a lapse in execution and documentation during a defined period rather than a systemic breakdown in control design. Enhancements implemented have addressed the identified gaps and established a more consistent and well documented process for drawdown preparation, review, and submission in accordance with applicable requirements, including 2 CFR Part 200.
Views of Responsible Officials and Planned Corrective Action: Management acknowledges that the Federal Financial Report (FFR) was not submitted within the required 90-day timeframe, resulting in noncompliance with the reporting requirements of the grant agreement. While the organization maintained a...
Views of Responsible Officials and Planned Corrective Action: Management acknowledges that the Federal Financial Report (FFR) was not submitted within the required 90-day timeframe, resulting in noncompliance with the reporting requirements of the grant agreement. While the organization maintained a centralized system for tracking reporting deadlines and conducted regular cross-functional coordination between Program, Finance, and Compliance teams, management recognizes that controls over monitoring and escalation were not sufficiently rigorous to ensure timely submission in all instances. This occurred during a period of elevated staffing transition, which contributed to a lapse in the consistent execution and monitoring of reporting timelines; however, management recognizes that controls should be sufficiently robust to operate effectively regardless of personnel changes. Upon identification of the delay, management evaluated the underlying processes and determined that enhancements were needed to strengthen accountability, improve visibility of critical deadlines, and ensure timely followthrough. Management notes that this condition was limited to the timeliness of submission and did not impact the accuracy of the report or result in questioned costs. Management has since reinforced its reporting oversight by enhancing coordination across responsible teams, clarifying ownership of deliverables, and strengthening internal monitoring practices. This includes implementing more structured tracking of key reporting deadlines, reinforcing expectations around advance preparation and review, and increasing senior-level oversight to ensure that upcoming deadlines are proactively managed and met. In addition, management has emphasized timely escalation of potential delays to ensure corrective action can be taken prior to due dates. Management believes these enhancements address the control gaps identified and significant reduce the likelihood of recurrence. Reporting timelines are now more actively monitored as part of ongoing financial and compliance operations, and management will continue to assess the effectiveness of these processes to ensure adherence to grant requirements and compliance with applicable regulations, including 2 CFR Part 200.
Finding 2025-002 – Subrecipient Monitoring Federal Agency: Department of Treasury Program: COVID-19 - Coronavirus State and Local Fiscal Recovery Funds – ALN #21.027 Condition: As part of its subrecipient monitoring process, the County obtained and reviewed the subrecipient’s audit report, which ide...
Finding 2025-002 – Subrecipient Monitoring Federal Agency: Department of Treasury Program: COVID-19 - Coronavirus State and Local Fiscal Recovery Funds – ALN #21.027 Condition: As part of its subrecipient monitoring process, the County obtained and reviewed the subrecipient’s audit report, which identified findings related to federal program expenditures. Although the County ultimately communicated with the subrecipient regarding the findings, requested a corrective action plan, and performed and documented follow-up procedures, these actions were not completed timely. The follow-up procedures ultimately performed did not identify any additional issues or unresolved matters. Criteria: Internal controls over subrecipient monitoring should ensure that audit findings are communicated, corrective action is requested, and follow-up procedures are completed and documented within an established timeframe. The control should also provide a means to track the status of these activities through resolution. Cause: The County did not have an effective process to track the timing of subrecipient monitoring follow-up activities and ensure that communication, corrective action requests, and related documentation were completed timely. Effect: The delay in completing and documenting follow-up reduced the timeliness and transparency of the County’s monitoring process and could have delayed corrective action by the subrecipient. The follow-up procedures ultimately performed did not identify any additional issues or unresolved matters. Repeat Finding: Yes. This finding is a continuation of Finding 2024-002. The County obtained and reviewed the required subrecipient audit reports during 2025; however, it did not timely follow up on audit findings. Recommendation: The County should establish a documented tracking process for subrecipient audit findings that identifies responsible personnel, required actions, target completion dates, and current status. The County should also require timely communication with subrecipients, requests for corrective action plans, completion of follow-up procedures, and retention of supporting documentation. Periodic supervisory review should be performed to confirm that follow-up activities are completed and documented within the established timeframe. Management’s Response: The County accepts the finding and is implementing corrective actions to address the issue and strengthen its subrecipient monitoring procedures. The Office of Innovation, Strategy and Performance is implementing a documented tracking process for subrecipient audit findings. The process will identify responsible personnel, required corrective actions, target completion dates, and the status of each item. To provide ongoing oversight, the Controller’s Office will perform quarterly reviews of this process to verify that all required monitoring activities have been completed and appropriately documented within established timeframes. The Controller’s Office, in collaboration with the Office of Innovation, Strategy and Performance, conducted a comprehensive review of all ARPA subrecipient audits submitted to the Federal Audit Clearinghouse (FAC) since the inception of the ARPA program (2021 to present). The Office of Innovation, Strategy and Performance is compiling all monitoring records, correspondence, and follow-up activities conducted to date for subrecipients with audit findings related to Assistance Listing Number (ALN) 21.027. Additional follow-up will be performed, as necessary, to verify that corrective actions have been implemented and that identified issues have been fully resolved. To strengthen ongoing monitoring efforts, the County has developed a tracking schedule that identifies each subrecipient’s fiscal year-end date. Using this schedule, the Office of Innovation, Strategy and Performance will perform quarterly reviews to monitor audit submission requirements and follow up with any subrecipient that has not submitted its audit to the FAC within the required nine-month period following its fiscal year-end. The County will incorporate a reporting question into the third-quarter 2026 Subrecipient Report requiring subrecipients to indicate whether they were subject to the Single Audit requirement in their most recent fiscal year and if so, if the audit was submitted to the FAC. The corrective actions described above will help ensure that the County’s ARPA subrecipient monitoring process is comprehensive, well documented, and performed in a timely manner. The Controller’s Office will continue to work closely with the Office of Innovation, Strategy and Performance throughout the remainder of the ARPA program to ensure the County fulfills its subrecipient monitoring responsibilities. Responsible Person(s): Fonta Reilly, Valerie Vellon Anticipated Completion Date: December 31, 2026
The Morgan County Economic Development Office acknowledges the status and final reports for the CDBG and Home grant programs must be submitted by the required due dates. The office will actively monitor all deadlines and ensure that all reports are completed and submitted in a timely manner in accor...
The Morgan County Economic Development Office acknowledges the status and final reports for the CDBG and Home grant programs must be submitted by the required due dates. The office will actively monitor all deadlines and ensure that all reports are completed and submitted in a timely manner in accordance with those requirements.
Due to the organization’s transition period, the reports were submitted late. After the new Finance Director started in June 25, 2025. In January 30, 2026, we received system access, all reports were submitted on February 4, 2026. This matter was presented in the most recent focus Area II monitoring...
Due to the organization’s transition period, the reports were submitted late. After the new Finance Director started in June 25, 2025. In January 30, 2026, we received system access, all reports were submitted on February 4, 2026. This matter was presented in the most recent focus Area II monitoring by the Agency, with no complaints noted. We will request additional system access for reporting purposes in case the person responsible is unavailable. Contact Person: Carlos Rivera Nora Boschetti Team: Finance Team Anticipated Completion Date: September 30, 2026
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