Corrective Action Plans

Finding 16663 (2022-023)

Material Weakness 2022

State of Washington C/o Office of Financial Management

WA

Subrecipient Monitoring Allowable Costs / Cost Principles Material Weakness

Finding: The Office of Superintendent of Public Instruction did not have adequate internal controls over and did not comply with federal requirements to ensure Local Education Agencies implemented testing security measures. Questioned Costs: Assistance Listing # 84.010 Status: Corrective ac...

Finding: The Office of Superintendent of Public Instruction did not have adequate internal controls over and did not comply with federal requirements to ensure Local Education Agencies implemented testing security measures. Questioned Costs: Assistance Listing # 84.010 Status: Corrective action in progress Corrective Action: The Office monitors and ensures all Local Education Agencies (LEA) implement school testing security measures. All LEAs are required to submit a District Administration and Security Report (DASR) at the conclusion of the testing cycle to document the security training and that protocols have been followed. The Office will continue to communicate with LEAs to ensure they provide the DASR for all tests administered in the spring, as follows: ? Once per week for four weeks leading up to the end of the test administration window. ? Once per week for three weeks after the end of the test administration window. In August, the Office will receive the annual final list of all tests administered by each LEA and will be able to narrow its focus for sending out weekly reminders. If the Office has not received completed DASRs by mid-September, a management decision letter will be sent to the LEA?s Superintendent to inform them of the non-compliance and potential consequences as outlined in federal regulations. The conditions noted in this finding were previously reported in findings 2021-021 and 2020-026. Completion Date: Estimated October 2023 Agency Contact: Christopher Hanczrik Director, Assessment Operations and Select Assessments PO Box 47200 Olympia, WA 98504-7200 (360) 485-3580 Christopher.Hanczrik@k12.wa.us

View Audit 23129

Finding 16609 (2022-002)

None 2022

Highmark Health

PA

Reporting

Management?s Views and Corrective Action Plan 2022-002: Incorrect lost revenue option selected for the HHS Portal submissions Department of Health and Human Resources ? Health Resources and Services Administration (?HRSA?) Program Name: COVID-19 Provider Relief Fund (?PRF?) Assistance Listing...

Management?s Views and Corrective Action Plan 2022-002: Incorrect lost revenue option selected for the HHS Portal submissions Department of Health and Human Resources ? Health Resources and Services Administration (?HRSA?) Program Name: COVID-19 Provider Relief Fund (?PRF?) Assistance Listing Number: 93.498 Federal Award Year: Reporting Period 4 Management?s Response Management agrees with the finding as it relates to the selection of the incorrect option (Option (i)) for the calculation of lost revenues for one Taxpayer Identification Number (TIN) entity within the Reporting Period 4 submission, as well as the incorrect response to the following question within the reporting portal: ?Did you acquire or divest subsidiaries that are ?eligible health care providers? during the period of availability of funds?? In 2021, the applicable TIN entity had less than a full year of operations. Although operations of the TIN ceased within 2021, management considered the actual revenues earned in 2021 within the Reporting Period 4?s period of availability to be appropriate for the lost revenue calculation per review and understanding of the reporting guidance, and therefore Option (i) was selected. The incorrect responses to the above noted reporting portal question was due to human error, and was not identified during the overall review prior to submission. To ensure accuracy and compliance with the reporting requirements, an additional level of detailed review of the portal submission will be added and required to be completed prior to final submissions. This review will include a comparison of the lost revenue option selected with the nature of the applicable TIN entity?s operations during the period of availability to ensure appropriateness of the selection with the guidance, as well as a detailed review of all responses to required questions within the reporting portal for accuracy. Anticipated Completion Date Reporting Period 5 is currently open, with a submission deadline of September 30, 2023. Management is currently in the process of completing this submission, with implementation of the additional review procedures discussed above included within the current submission process. Responsible Parties Matthew Bazzani, Chief Accounting Officer, Highmark Health

View Audit 22499

Finding 16554 (2022-001)

None 2022

Highmark Health

PA

Subrecipient Monitoring Reporting § 200.510

Management?s Views and Corrective Action Plan 2022-001: Schedule of Expenditures of Federal Awards All Federal programs Federal Award year: 2021 Management?s Response Management agrees with the finding as it relates to the inclusive of expenditures of State awards. As part of the preparation and re...

Management?s Views and Corrective Action Plan 2022-001: Schedule of Expenditures of Federal Awards All Federal programs Federal Award year: 2021 Management?s Response Management agrees with the finding as it relates to the inclusive of expenditures of State awards. As part of the preparation and review of the schedule of expenditures of federal awards (the ?Schedule?), processes were in place to reconcile total expenditures under the program to the general ledger as well as the consolidated financial statements. In addition, analytical review was performed of variances in expenditures year-over-year, by program, to assess reasonableness of reported expenditures. During review of the 2021 CHIP program expenditures, management reconciled total expenditures to the general ledger and consolidated financial statements without exception, as both the general ledger and consolidated financial statements include total program expenditures (i.e., both federal and state are included). In addition, upon review of variances in total program expenditures in comparison to the previous award year, variances appeared reasonable as they remained relatively consistent year-over-year and with historical data. In fiscal year 2022, management has implemented additional steps into its reconciliation process to bifurcate the total expenditures between Federal and State expenditures prior to agreement to the general ledger and consolidated financial statements to ensure exclusion of State amounts when preparing the Schedule. In addition, within the analytical review process management utilizes the bifurcated totals to assess for reasonableness at the more detailed level regarding year-over-year variances. Anticipated Completion Date Additional reconciliation steps and bifurcation of amounts were implemented during the preparation and review of the 2022 Schedule. Responsible Parties ? Matthew Bazzani, Chief Accounting Officer, Highmark Health

View Audit 22499

Finding 16551 (2022-002)

Material Weakness 2022

City of Sandusky

OH

Allowable Costs / Cost Principles Reporting Matching / Level of Effort / Earmarking § 200.302 § 200.328 § 200.329

All federal Project and Expenditure reports were filed timely and all actual expenditures were also reported correctly according to the report overview page. This finding deals with the body of the report which incorrectly listed the Justice Center Project twice, with the obligation amount of $880,0...

All federal Project and Expenditure reports were filed timely and all actual expenditures were also reported correctly according to the report overview page. This finding deals with the body of the report which incorrectly listed the Justice Center Project twice, with the obligation amount of $880,00 listed for the project. This duplicated project has been removed from future reports. The finding noted for $175,741, once again has all the correct totals in project overview report, which should be the summation of the report. We have been rehiring staff with American Rescue Plan funds since 2021, and this has been an ongoing project. Once again, the report overview page lists the correct expenditures, however the body of the report has the project listed twice. This duplicated project has been removed from future reports. The reporting software gives a total of expenditures before you hit submit on each report, this total has always displayed the correct cumulative expenditure total. If projects were entered twice, the total expenditures should of been over by these dollar amounts, and they were not.

View Audit 21781

Finding 16550 (2022-002)

Material Weakness 2022

American Seed Trade Association

VA

Reporting

Views of Responsible Officials and Planned Corrective Action Management is implementing new policies and procedures to ensure all federal program expenses are captured in the correct accounting period and is exploring how to modify its accounting software to better track federal program expenses. Wi...

Views of Responsible Officials and Planned Corrective Action Management is implementing new policies and procedures to ensure all federal program expenses are captured in the correct accounting period and is exploring how to modify its accounting software to better track federal program expenses. Will also coordinate with key employees to identify any payments not submitted at fiscal yearend. Responsible Party and Implementation Date: Ann Jorss, Chief Operation Officer, is the responsible party for implementing the corrective action and has implemented the recommendations herein as of November 15, 2022.

View Audit 21356

Finding 16546 (2022-001)

Significant Deficiency 2022

Swan Memorial Housing Association

WA

HUD Housing Programs Procurement, Suspension & Debarment Reporting

Finding Reference Number #2022-001 Views of Responsible Officials and Planned Corrective Actions: Management agrees with the finding and is in the process of funding the deficiency. Contact Person Responsible: Tom Anderson Anticipated Completion Date: December 31, 2022

View Audit 20458

Finding 16544 (2022-001)

Material Weakness 2022

Bonner General Hospital, Inc.

ID

Material Weakness Reporting Internal Control / Segregation of Duties § 200.303

Finding 2022-001 Finding Summary: The Hospital excluded certain amounts from the amounts reported as "2021 actuals (Calendar Year)" patient care revenue within the Period 4 Department of Health and Human Services report submission process. Responsible Individuals: John Hennessy, CFO Corrective Acti...

Finding 2022-001 Finding Summary: The Hospital excluded certain amounts from the amounts reported as "2021 actuals (Calendar Year)" patient care revenue within the Period 4 Department of Health and Human Services report submission process. Responsible Individuals: John Hennessy, CFO Corrective Action Plan: The cause of the finding was due to management's review of the schedule did not identify that there was an adjustment to net patient revenue that was not incorporated within the 2021 actuals. Going forward, management will reconcile the internal generated financials used for quarterly reporting with the audited financials to ensure the schedule used includes all adjustments to net patient revenue. Anticipated Completion Date: September 28, 2023 Federal Agency Name: Department of Health and Human Services Program Name: COVJD-19 Provider Relief Funds and American Rescue Plan (ARP) Rural Distribution CFDA #93.498

View Audit 20452

Finding 16542 (2022-001)

Significant Deficiency 2022

Lehigh Valley Dual Language Charter School

PA

Allowable Costs / Cost Principles Reporting Significant Deficiency

Finding No. 2022-001 (Cost Segregation) Condition: The Charter School does not segregate federal grant expenditures within the accounting software instead choosing to track the expenditures for each grant in excel. During our audit, we found inconsistencies with where expenditures were reported in t...

Finding No. 2022-001 (Cost Segregation) Condition: The Charter School does not segregate federal grant expenditures within the accounting software instead choosing to track the expenditures for each grant in excel. During our audit, we found inconsistencies with where expenditures were reported in the excel spreadsheet and where they were recorded in the software. Recommendation: We recommend the School utilize a more appropriate software for fund accounting that will allow for the segregation of federal grant expenditures directly in the software using a distinct source code for each grant in accordance with the PDE Chart of Accounts. Corrective Action: Effective July 1, 2022, the School?s general ledger was transitioned from Intuit QuickBooks to Sage Intacct. Sage Intacct provides a more robust chart of accounts using a string of dimension codes which allows for detailed grant expenditure and revenue tracking; including details related to departments/ functions, funds, and both the accrual basis and modified accrual basis of accounting. We believe the new accounting system and chart of accounts will allow for the proper segregation of federal grant expenditures directly in the general ledger in accordance with the PDE Chart of Accounts. Person Responsible: Elsie Perez, CEO Proposed Completion Date: July 1, 2022

View Audit 20450

Finding 16537 (2022-001)

Material Weakness 2022

New Brunswick Theological Seminary of the Reformed Church in America

NJ

Student Financial Aid Reporting Special Tests & Provisions

Views of Responsible Officials and Corrective Action Planned: The Seminary hired a third-party financial aid servicer, Financial Aid Services, LLC (?FAS?) who will do the enrollment reporting as part of their contract. The FAS contract was signed May 2022 for the upcoming fiscal year 2022 to 2023. T...

Views of Responsible Officials and Corrective Action Planned: The Seminary hired a third-party financial aid servicer, Financial Aid Services, LLC (?FAS?) who will do the enrollment reporting as part of their contract. The FAS contract was signed May 2022 for the upcoming fiscal year 2022 to 2023. This contract was approved by the Administrative Council in May 2022. The Seminary?s current part-time financial aid coordinator sent out the April 2022 enrollment roster which included student status changes on October 17, 2022.

View Audit 20434

Finding 16535 (2022-001)

Material Weakness 2022

City of Midland, Texas

TX

Subrecipient Monitoring Reporting

Corrective Action Plan for Finding 2022-001 The City did not have adequate controls or procedures in place to identify the applicable reporting requirement and ensure the information was filed accurately and timely. Views of Responsible Officials and Planned Corrective Actions: Management agrees...

Corrective Action Plan for Finding 2022-001 The City did not have adequate controls or procedures in place to identify the applicable reporting requirement and ensure the information was filed accurately and timely. Views of Responsible Officials and Planned Corrective Actions: Management agrees with the finding. Finance Department has implemented a new process that requires reports to be completed by the 15th of the following month. Reports from Community Development Manager are to be submitted to Comptroller for review and sign off to be reported timely by the report due date. Responsible Party: The Comptroller is responsible to follow-up and ensure report is completed. Implementation Date: March 15, 2023

View Audit 20427

Finding 16525 (2022-004)

Significant Deficiency 2022

Foster-Glocester Regional School District

RI

Allowable Costs / Cost Principles Reporting Significant Deficiency § 200.430

Finding: 2022-004 Corrective Action Plan: The District?s payroll process is significantly lacking proper control procedures. With the hiring of a new financial manager, policies, procedures and controls will be implemented immediately, including the proper tracking of time and effort for employees...

Finding: 2022-004 Corrective Action Plan: The District?s payroll process is significantly lacking proper control procedures. With the hiring of a new financial manager, policies, procedures and controls will be implemented immediately, including the proper tracking of time and effort for employees charged to federal grants as required. Anticipated Completion Date: September 1, 2023 Contact Person: Amanda Raymond, Director of Finance

View Audit 20393

Finding 16505 (2022-003)

Significant Deficiency 2022

Grand Rapids Christian Schools

MI

School Nutrition Programs Internal Control / Segregation of Duties Cash Management

#2022-003 - Significant Deficiency in Controls over Compliance: Lack of Review over Reporting Recommendations: We understand that many, if not all locations participating in the meal programs have since either reverted back to using the electronic system for counting students, or plan to do so in th...

#2022-003 - Significant Deficiency in Controls over Compliance: Lack of Review over Reporting Recommendations: We understand that many, if not all locations participating in the meal programs have since either reverted back to using the electronic system for counting students, or plan to do so in the near term. We recommend that any remaining manual reports/tally sheets be reviewed prior to submitting counts for reimbursement. Views of Responsible Officials and Planned Corrective Actions: ? Because student meals are no longer free in the 2022-23 school year, GRCS is returning to the electronic system for counting student meals.

View Audit 20389

Finding 16483 (2022-002)

None 2022

Homewood School District 153

IL

Reporting § 200.512

Identifying Number: 2022-002 Finding: Late Issuance of the 2022 Single Audit Reporting Package The District?s fiscal year 2022 Single Audit package was not submitted to the Federal Audit Clearinghouse within the required time period. The Single Audit package for the District?s fiscal year ended J...

Identifying Number: 2022-002 Finding: Late Issuance of the 2022 Single Audit Reporting Package The District?s fiscal year 2022 Single Audit package was not submitted to the Federal Audit Clearinghouse within the required time period. The Single Audit package for the District?s fiscal year ended June 30, 2022 should have been submitted to the Federal Audit Clearinghouse by March 31, 2023. Corrective Action Taken or Planned: The District will schedule and complete future external audits in a manner that will allow timely reporting of the Single Audit. Anticipated Completion Date: June 2023 Responsible Person(s): John Gibson, Chief School Business Official

View Audit 20382

Finding 16389 (2022-001)

Significant Deficiency 2022

Allegany County Human Resources Development Commission, Inc.

MD

Reporting

Allegany County HRDC agrees with the finding and will ensure that all reports are filed timely in the future.

View Audit 21653

Finding 16388 (2022-001)

None 2022

H.o.l.i.e. of Greenfield Avenue, Inc. - Valentino Square Apartments

WI

HUD Housing Programs Reporting Internal Control / Segregation of Duties

Management increased the security deposit bank account by $500 on September 15, 2022 to correct this finding.

View Audit 19955

Finding 16321 (2022-006)

None 2022

Town of Sullivan Sanitary District No. 1

WI

Reporting

2022-006 Late Submission of 2021 Data Collection Form with Federal Audit Clearinghouse Condition: The 2021 data collection form for the District was submitted after the prescribed nine month due date, as required by the Federal Audit Clearinghouse for the year ended December 31, 2021. Criteria: Th...

2022-006 Late Submission of 2021 Data Collection Form with Federal Audit Clearinghouse Condition: The 2021 data collection form for the District was submitted after the prescribed nine month due date, as required by the Federal Audit Clearinghouse for the year ended December 31, 2021. Criteria: The Federal Audit Clearinghouse requires that organizations submit their annual audit and the annual data collection form within nine months after the fiscal year-end. Cause: The delay in submitting the 2021 data collection form and the 2021 annual audit was primarily due to the audit was performed late. Effect: This delay in submission may hinder timely access to accurate financial information for decision-making and reporting. Auditor's Recommendation: We recommend that the District establishes a formalized process to track regulatory filing deadlines and responsibilities and conduct periodic reviews to ensure timely compliance with regulatory requirements. Management Response: The District acknowledges the audit finding and commits to implementing the recommended actions promptly to enhance compliance with regulatory requirements regarding data collection form submissions. Contact Person: Dawn Bauer Anticipated Completion: December 31, 2023

View Audit 22335

Finding 16320 (2022-005)

Material Weakness 2022

Town of Sullivan Sanitary District No. 1

WI

Reporting Matching / Level of Effort / Earmarking Internal Control / Segregation of Duties

2022-005 Federal Procedure Manual Condition: Internal controls over federal grants should be in place to provide reasonable assurance that misstatement in the schedule of expenditures of federal awards would be prevented or detected. Criteria: Non-federal entities who receive federal or state gra...

2022-005 Federal Procedure Manual Condition: Internal controls over federal grants should be in place to provide reasonable assurance that misstatement in the schedule of expenditures of federal awards would be prevented or detected. Criteria: Non-federal entities who receive federal or state grants or have grant programs should have documented policies and procedures in place over grants and grant expenditures. Cause: The District does not have documented policies and procedures in place over grants and grant expenditures. Effect: Without documented policies and procedures, the internal control over federal grants is low, and the risk of misstatement in the schedule of expenditures of federal and state awards is high. Auditor's Recommendation: We recommend that the District works on written policies and procedures over grants and grant expenditures. Management Response: The District will work with their auditor to develop and adopt written grant procedures that are in accordance with the Uniform Guidance. Contact Person: Dawn Bauer Anticipated Completion: December 31, 2023

View Audit 22335

Finding 16319 (2022-004)

Material Weakness 2022

Town of Sullivan Sanitary District No. 1

WI

Internal Control / Segregation of Duties Reporting

2022-004 Drafting Schedule of Expenditures of Federal Awards and Related Notes Condition: Like other entities of similar size, the District requires the assistance of the auditor to prepare the schedule of expenditures of federal awards in accordance with the Uniform Guidance. Criteria: Internal co...

2022-004 Drafting Schedule of Expenditures of Federal Awards and Related Notes Condition: Like other entities of similar size, the District requires the assistance of the auditor to prepare the schedule of expenditures of federal awards in accordance with the Uniform Guidance. Criteria: Internal controls over preparation of the schedule of expenditures of federal awards should be in place to provide reasonable assurance that a misstatement in the schedule of expenditures of federal awards would be prevented or detected. Cause: Management relies on the auditor to assist with the preparation of the schedule of expenditures of federal awards. Effect: The District's system of internal control may not prevent, detect, or correct misstatements in the schedule of expenditures of federal awards. Auditor's Recommendation: The auditor will continue to work with the District, providing information and training when necessary, to make the District?s personnel more knowledgeable about its responsibility for the schedule of expenditures of federal awards. Management Response: The control deficiency has been discussed with the District?s Board and they acknowledge their responsibility for the schedule of expenditures of federal awards. The District accepts responsibility for the schedule of expenditures of federal awards. Due to the technical nature of preparing the schedule of expenditures of federal awards, and due to limited resources, the District does not anticipate the need for this assistance to change in the foreseeable future. Contact Person: Dawn Bauer Anticipated Completion: Not Applicable

View Audit 22335

Finding 16316 (2022-002)

Significant Deficiency 2022

Chisholm School District I-42

OK

Internal Control / Segregation of Duties Allowable Costs / Cost Principles Material Weakness

Reference Number: 22-02 Name of Award ? Project Number (794, 628, 770) (Federal Findings) Condition/Finding: The District's final expenditure reports with the Oklahoma State Department of Education and Oklahoma Cost Accounting System (OCAS), did not match the actual allowable expense for their p...

Reference Number: 22-02 Name of Award ? Project Number (794, 628, 770) (Federal Findings) Condition/Finding: The District's final expenditure reports with the Oklahoma State Department of Education and Oklahoma Cost Accounting System (OCAS), did not match the actual allowable expense for their program. Three programs (794, 628, 770) had OCAS coding errors when final reports were submitted to the Oklahoma State Department of Education. Corrective steps that have already been implemented and/or the steps that will be implemented: All OCAS data, both receiving and expenditures, will be correct and accurate. All OCAS data involving Federal Programs will be reported correctly and accurately to the Oklahoma State Department of Education. Completion Date: Immediately The plan for monitoring adherence to the corrective action plan: All Chisholm Public Schools central office personnel involved with purchase orders, and OCAS data, will seek professional development and training to improve professionally. Additionally, all Chisholm Public Schools central office personnel will work collaboratively to ensure that all OCAS data is correct and accurate on an ongoing basis. Finally, all finalized OCAS data will be completely accurate when submitting to the Oklahoma State Department of Education. If warranted, reasons why the district does not consider a Corrective Action necessary. Superintendent's Signature Date

View Audit 21640

Finding 16244 (2022-001)

Significant Deficiency 2022

Northkey Community Care

KY

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

Northern Kentucky Mental Health ? Mental Retardation Regional Board, Inc. agrees with the finding and will complete necessary training with program employees regarding organizations established and required procedures along with the necessity of these procedures and the additional importance due to ...

Northern Kentucky Mental Health ? Mental Retardation Regional Board, Inc. agrees with the finding and will complete necessary training with program employees regarding organizations established and required procedures along with the necessity of these procedures and the additional importance due to federal program requirements.

View Audit 22999

Finding 16238 (2022-002)

Significant Deficiency 2022

Associated Universities, Inc.

DC

Equipment & Real Property Management Allowable Costs / Cost Principles Reporting § 200.313

2022-002 Equipment and Real Property Management Contact/s: Luther Lau, CFO (202) 462-5282 Mark Mackey, Controller (202) 298-5942 Completion Date: February 2023 Corrective Action: AUI maintains systems of internal controls of physical property to safeguard government assets from the risk of th...

2022-002 Equipment and Real Property Management Contact/s: Luther Lau, CFO (202) 462-5282 Mark Mackey, Controller (202) 298-5942 Completion Date: February 2023 Corrective Action: AUI maintains systems of internal controls of physical property to safeguard government assets from the risk of theft or loss. During the height of the COVID pandemic, the ALMA Observatory was necessarily staffed with a reduced number of personnel as a result of heightened restrictions on travel and cohabitation. The reduced staff ? in combination with the remote location of the Observatory ? resulted in the theft of a box of copper mesh at the Multicancha construction site. This copper mesh had a purchase price of approximately $3,200. Despite the theft being an isolated incident, AUI immediately reviewed its physical controls in place and took action to further improve monitoring and security at the site. Additional measures put in place include the following: ? During holidays and in-between shifts, valuable material was stored in a local locked warehouse. ? It was requested to ALMA to increase the frequency of guards patrolling. This is particularly important during the time the construction site is unoccupied for holidays or in-between shifts and nights. ? In Chile, the transportation of good requires an official paper called "Guia de despacho", which is a Chilean-IRS-certified document that demonstrates ownership of goods. Failing to show this paper to a local police officer may result in the detention of the driver under the alleged crime of theft. Since the incident, the Observatory is requesting this paper for all vehicles leaving the site carrying visible items. A visual inspection is performed to corroborate the paper and the cargo. ? A project to install CCTV cameras at the entrance and common areas is being developed. This is expected to mitigate risk of theft as well as having available records of events, if needed. The above internal controls over physical property, in combination with the controls already in place prior to the incident, have mitigated the risk of this type of occurrence from happening in the future.

View Audit 19698

Finding 16142 (2022-020)

Material Weakness 2022

State of Washington C/o Office of Financial Management

WA

Subrecipient Monitoring Reporting Allowable Costs / Cost Principles

Finding: The Office of Financial Management did not have adequate internal controls over and did not comply with reporting requirements for the Coronavirus State and Local Fiscal Recovery Funds. Questioned Costs: Assistance Listing # 21.027 COVID-19 Amount $0 Status: Corrective action comp...

Finding: The Office of Financial Management did not have adequate internal controls over and did not comply with reporting requirements for the Coronavirus State and Local Fiscal Recovery Funds. Questioned Costs: Assistance Listing # 21.027 COVID-19 Amount $0 Status: Corrective action complete Corrective Action: The Office has continued to strengthen internal controls for the Coronavirus State and Local Fiscal Recovery Fund (CSLFRF) reporting to ensure compliance with the federal requirements. As of May 2022, the Office: ? Transitioned the primary responsibility for centralized CSLFRF reporting to the Statewide Accounting Division. ? Hired a Budget and Grants Coordinator with experience in federal reporting to oversee the reporting process. The Office will continue to: ? Monitor updates to the U.S Treasury?s Project and Expenditure Report User Guide. ? Improve the quarterly reporting template and assist state agencies during the reporting process. ? Ensure reported amounts, including corrections or adjustments made during the reporting period, are properly tracked and documented for the subsequent reporting cycles. ? Perform reconciliations of reported expenditures to ensure agency expenditures are accurately reported, allowing for adjustments/ corrections required due to issues with the reporting system. ? Ensure reported expenditures are accurate and adequately supported by accounting records before the information is uploaded to the federal reporting system. ? Document correspondences with the U.S. Treasury when system errors are identified and resolutions recommended by the grantor, if received. Internal procedures have been developed to formally document the reporting process. Completion Date: May 2023 Agency Contact: Brian Tinney Statewide Accounting Director PO Box 43127 Olympia, WA 98504-3127 (564) 999-1781 brian.tinney@ofm.wa.gov

View Audit 23129

Finding 16140 (2022-018)

Material Weakness 2022

State of Washington C/o Office of Financial Management

WA

Questioned Costs Allowable Costs / Cost Principles Reporting § 200.334 § 200.335 § 200.336 § 200.337 § 200.410

Finding: The Office of Financial Management did not have adequate internal controls over and did not comply with requirements to ensure Coronavirus State and Local Fiscal Recovery Funds were used only for allowable activities. Questioned Costs: Assistance Listing # 21.027 COVID-19 Amount $30...

Finding: The Office of Financial Management did not have adequate internal controls over and did not comply with requirements to ensure Coronavirus State and Local Fiscal Recovery Funds were used only for allowable activities. Questioned Costs: Assistance Listing # 21.027 COVID-19 Amount $300,000,000 Status: Corrective action not taken Corrective Action: The Office does not concur with the audit finding. The state of Washington created a separate fund to track the Coronavirus State and Local Fiscal Recovery Fund (CSLFRF) expenditures. The state, through legislation, approved the transfer from the CSLFRF account to various state transportation accounts. The Office reaffirms that all expenditures from the transportation accounts that received the CSLFRF funds were used to maintain government services. The State Administrative and Accounting Manual requires all state agencies to establish internal controls over payments for goods and services, including ensuring payments are lawful and for proper purposes, reviewing payments to ensure they are supported, as well as documenting the review of all payments. State agencies continued to follow their established internal controls to ensure expenditures from the transportation accounts were proper and allowable for both non-CSLFRF and CSLFRF funds. The Office will continue to: ? Work with the U.S. Treasury through upcoming desk audits to ensure no questioned costs are required to be repaid. ? Document all correspondence with the grantor during the audit resolution process. Completion Date: Not applicable Agency Contact: Brian Tinney Statewide Accounting Director PO Box 43127 Olympia, WA 98504-3127 (564) 999-1781 brian.tinney@ofm.wa.gov

View Audit 23129 Questioned Costs: $1

Finding 16113 (2022-015)

Material Weakness 2022

State of Washington C/o Office of Financial Management

WA

Subrecipient Monitoring Internal Control / Segregation of Duties Matching / Level of Effort / Earmarking

Finding: The Office of Financial Management did not have adequate internal controls over and did not comply with reporting requirements for the Coronavirus Relief Fund. Questioned Costs: Assistance Listing # 21.019 COVID-19 Amount $0 Status: Corrective action complete Corrective Action: ...

Finding: The Office of Financial Management did not have adequate internal controls over and did not comply with reporting requirements for the Coronavirus Relief Fund. Questioned Costs: Assistance Listing # 21.019 COVID-19 Amount $0 Status: Corrective action complete Corrective Action: The Office had controls in place for the Coronavirus Relief Fund (CRF) reporting requirements to ensure reported amounts, including corrections or adjustments made during the reporting period, were properly tracked and documented for subsequent reporting cycles. The Office performed continual monitoring of CRF expenditures to ensure the total grant expenditures reported were complete and accurate. The Office?s Statewide Accounting staff took over the responsibility for reviewing and certifying cycle 8 to 10 reports. Each report was reviewed prior to submission and documentation of the review was adequately maintained. The review ensured amounts submitted on the reports reconciled to supporting documentation provided by agencies at the time the reports were prepared. However, system issues in the federal reporting system created challenges in documenting changes to the templates as errors appeared and were subsequently corrected for the reporting cycle. For the final cycle 10 report, the Office ensured the cumulative amounts on the CRF report were supported by the underlying accounting records and performed a complete reconciliation of expenditures to the totals reported for each expenditure category. All revisions and resubmissions of the final report were completed in cycle 10. No additional revisions are required at this time. The final report was submitted in January 2023 and the grant is in its closeout phase. The Office considers this issued resolved. The conditions noted in this finding were previously reported in finding 2021-014. Completion Date: January 2023 Agency Contact: Brian Tinney Statewide Accounting Director PO Box 43127 Olympia, WA 98504-3127 (564) 999-1781 brian.tinney@ofm.wa.gov

View Audit 23129

Finding 16107 (2022-006)

Material Weakness 2022

State of Washington C/o Office of Financial Management

WA

Subrecipient Monitoring Internal Control / Segregation of Duties Special Tests & Provisions

Finding: The Employment Security Department did not have adequate internal controls over and did not comply with federal requirements to conduct case reviews for the Benefit Accuracy Measurement program of the Unemployment Insurance program in a timely manner. Questioned Costs: Assistance Listin...

Finding: The Employment Security Department did not have adequate internal controls over and did not comply with federal requirements to conduct case reviews for the Benefit Accuracy Measurement program of the Unemployment Insurance program in a timely manner. Questioned Costs: Assistance Listing # 17.225 17.225 COVID-19 Amount $0 Status: Corrective action in progress Corrective Action: Historically, the Benefit Accuracy Measurement (BAM) unit has been challenged to maintain full levels of staffing. Staff turnover, long training requirements, and unique skill sets make these positions difficult to maintain. The BAM Unit currently has one vacancy and is expected to have more with upcoming retirements. The Department is currently in a hiring freeze for Unemployment Insurance administrative funding, furthering the challenge to fully staff the unit and meet program requirements. Once the hiring freeze is lifted, the unit will fill the vacant position. The Department anticipates the unit will meet federally mandated timelines for case reviews when the unit is fully staffed and trained. The Department continues to partner and frequently communicate with the U.S. Department of Labor (USDOL) Regional Offices to discuss staffing and training models. The Quality Assurance Manager and the Case Review Supervisor are committed to routinely monitor caseload, workload, and the overall assurance of meeting the BAM operations performance goals and measures as set forth by USDOL. The conditions noted in this finding were previously reported in findings 2021-005 and 2020-011. Completion Date: Estimated June 2024 Agency Contact: Jay Summers External Audit Manager PO Box 9046 Olympia, WA 98507-9046 (360) 529-6718 Joshua.Summers@esd.wa.gov

View Audit 23129

Corrective Action Plans

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