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Finding No.: 2021-027 AL Program: 21.019 - Coronavirus Relief Fund Area: Reporting Questioned Costs: $0 Contact Person(s): Ryan Camacho, Sr. Financial Analyst / Pam Marigmen, Sr. Financial Analyst, SOF Office Corrective Action Plan: The Department of Finance agrees with this finding under A...
Finding No.: 2021-027 AL Program: 21.019 - Coronavirus Relief Fund Area: Reporting Questioned Costs: $0 Contact Person(s): Ryan Camacho, Sr. Financial Analyst / Pam Marigmen, Sr. Financial Analyst, SOF Office Corrective Action Plan: The Department of Finance agrees with this finding under ALN# 21.019. We have completed our review and proposed adjustments to accurately reflect expenditures in compliance with grant policies and requirements. Moving forward, we have implemented policies and procedures to ensure that all documentation is uploaded to the new financial system, and proper review and documentation are included to verify the allowability of expenditures within grant policies and requirements. Proposed Completion Date: Completed
Finding No.: 2021-025 AL Program: 17.225 - Unemployment Insurance Area: Special Tests and Provisions – UI Program Integrity - Overpayments Questioned Costs: $0 Contact Person(s): Zachary Taitano, PUA Program Manager, DOL Corrective Action Plan: Condition 1: CNMI DOL agrees with this findin...
Finding No.: 2021-025 AL Program: 17.225 - Unemployment Insurance Area: Special Tests and Provisions – UI Program Integrity - Overpayments Questioned Costs: $0 Contact Person(s): Zachary Taitano, PUA Program Manager, DOL Corrective Action Plan: Condition 1: CNMI DOL agrees with this finding. However, on September 18, 2020, CNMI DOL reached out to the National Association of State Workforce Agency (NASWA) with respect to establishing access to the Integrity Data Hub’s Fraud Alert System. Moreover, on April 19,2023, CNMI DOL established a direct line of communication with the Office of Inspector General via email and registered for the Integrity Data Hub. Currently, the CNMI does not have access to report fraudulent cases to the National Association of State Workforce Agency (NASWA). Rather, as advised by our point of contact at the OIG, we are to inform them of any cases deemed as fraud and transmit via an encrypted file for further investigation. Condition 2: CNMI DOL agrees with this finding. Overpayment Case No. PUAOP000181 was initially served their Notice of Overpayment on September 14, 2020 and was later revised/resent on May 13, 2021 due to discrepancies found within the initial Notice of Overpayment. Although the Notice of Overpayment was prepared and sent to our Tinian Department of Labor Office to be served, contact with the claimant was unable to be established at that point. Condition 3: CNMI DOL does not agree with this finding. With respect to OP Case No. PUAOP000691, repayment was not necessary as the payment in this overpayment case was processed as a paper check. The paper check was noted as “Intercepted” due to having an out-of-state mailing address. Therefore, the initial benefit disbursement was not received by the claimant. No official overpayment determination was issued as payment was intercepted. Condition 4: CNMI DOL agrees with this finding. However, it is important to note that the PUA program’s applicable law is based on a combination of federal statutes, changing federal guidance/operating instructions, state laws from a jurisdiction that already had an established local unemployment program, and established federal regulations from a different program. At the time of drafting the Standard Operating Policies and Procedures, the available laws and guidance with respect to appeals were vague and limited. Consequently, the Administrative Hearing Office relied on DUA regulations (20 CFR 625.30) and DUA Guidance (ET Handbook 356). The DUA program imposed a 30-day requirement to allow for second level appeals. Subsequently, the Continued Assistance Act provided that PUA Appeals would follow Hawaii State Law. Notably, the federal statutes did not impose a hearing/decision turn around requirement. Further, Hawaii Employment Security Law only required that hearings must be scheduled and heard promptly. HRS 12-5-93. This provision rendered the 30-day requirement and second level appeals under the DUA program moot and inapplicable. Condition 5: CNMI DOL agrees with this finding and is collaborating with the Secretary of Finance’s Office to establish a streamlined process for handling cancelled, stale-dated, voided, and/or rejected paper checks or ACH payments. Proposed Completion Date: Ongoing
Finding No.: 2021-021 AL Program: 15.875 - Economic, Social, and Political Development of the Territories Area: Reporting Questioned Costs: $1,165 Contact Person(s): Epiphanio Cabrera, Jr., Grants Administrator, OGM-SC Corrective Action Plan: The Office of Grants Management (assisting Financ...
Finding No.: 2021-021 AL Program: 15.875 - Economic, Social, and Political Development of the Territories Area: Reporting Questioned Costs: $1,165 Contact Person(s): Epiphanio Cabrera, Jr., Grants Administrator, OGM-SC Corrective Action Plan: The Office of Grants Management (assisting Financial Services – Federal Section) disagrees with the finding. Per the SF 425, the amount noted is $288,849 (rounded) and their records are accurate. Auditors did not inquire with the Federal Section about the variance they noted and are unsure of what accounting records they are referring to. Auditors would need to review this finding again and reach out to the Federal Section. Proposed Completion Date: Ongoing
View Audit 317760 Questioned Costs: $1
Finding No.: 2021-016 AL Program: 10.551/10.561 – SNAP Cluster Area: Special Tests and Provisions – ADP System for SNAP Questioned Costs: $1,421 Contact Person(s): Margaret Aldan, NAP Administrator Corrective Action Plan: Condition 1: The CNMI-NAP disagrees with this finding. NAP staff has...
Finding No.: 2021-016 AL Program: 10.551/10.561 – SNAP Cluster Area: Special Tests and Provisions – ADP System for SNAP Questioned Costs: $1,421 Contact Person(s): Margaret Aldan, NAP Administrator Corrective Action Plan: Condition 1: The CNMI-NAP disagrees with this finding. NAP staff has to guide the auditors during the time the audit is being performed to understand the history and process of files being audited. Case ID#B100092775 Variance of $69.00 caused by change in income guideline and benefit Level Effective October 1st 2020 Income level is 781.00 benefit for Saipan is $221. Corrective action taken by Eligibility worker processed income for household of 1 as SSI which gave household $41.00 benefit. Income should be counted as SSA which at the time the adjustment was made and increased the benefit amount for the household. Case ID#B100094249 Variance of $180.00 a change in income and benefit level. Household income was $108.00 which changed to $120.00 for a household of 4. Adjustment was made to reflect changes including benefit level. From $708.00 to $1,231.00. Case ID #B100095019 Variance of $69.00 Benefit level was $212.00, and household had $20.00 contribution as unearned income. Benefit issued was 295.00 new benefit level effective October 1st, 2021 adjusted benefit issuance at $364.00 (maximum benefit for household of one for zero income is $369.00). Case ID#B100095077 Variance of $180.00. Benefit for household of 3 was issued for 2020 benefit and income level. November Benefit effectuated new income and benefit level. Issued benefit is based by household and income of head of household. Case ID#B100094664 Variance of $69.00. Household is zero income maximum benefit level issued was $300.00 reflecting 2020 benefit level. On October 1st, 2021 eligibility system automatically adjust benefit to $369.00 as per new benefit level. Case ID#B10109695 variance of $126.00 household of 2 maximum benefit was $389.00 with ineligible household members earning SS benefits totaling at $167.00 (prorated income) benefit issued was $651.00. Increase in benefit and income level was automatically adjusted by the eligibility system. Case ID#B100093732 Variance of 272.00 household of 5 maximum Benefit level for zero income Household is $1,462.00 deduction of 25 percent for over issuance ($272.00) increase of benefit level automatically adjusted by Eligibility system and still taking offset of 25% for over issued benefits. Over issuance claim is already paid off. Condition 2: The CNMI-NAP disagrees with this finding. NAP staff has to guide the auditors during the time the audit is being performed to understand the history and process of files being audited. Case ID#B100081068 Questioned cost of $162.00. Head of household declared zero income. Benefit amount under issued in the amount of $229.00 by eligibility system for maximum level of benefits should be $1,231.00. Unable to do corrective action due to beyond 2 months from time the discrepancy was found: Corrective action for eligibility system to implement a system audit that will prevent future glitches that would create a loss for both the household and NAP program budget. Condition 3: The CNMI-NAP disagrees with this finding. NAP staff has to guide the auditors during the time the audit is being performed to understand the history and process of files being audited. Case ID#B100082118 questioned cost is $162.00 Questioned cost of $294.00. household had income from ineligible parents which is prorated towards the two eligible household members. Total prorated unearned income is $843.46 which was counted towards the household’s benefits. Then household became zero income due to Furlough from COVID-19 pandemic. We disagree with the findings. When the auditor reviewed the case files, there was a misunderstanding of changes in household composition and income which is also affected by the increase in income guidelines and benefit levels between the certification period. This created the variances that the auditor noted in the findings. *CNMI NAP recommends having NAP staff guide the auditor during time the audit is being performed to understand history and process of files being audited. CNMI-NAP recently hired a Certification Unit Supervisor who had been on board for close to three months. He had been actively working closely with the EWs and especially the Management Evaluation Unit (MEU) who oversees the program reviews and quality control. Mini Trainings and assessments of the Certification Unit are in the works. One training was done sometimes in April by the MEU to ensure compliance is met. More trainings and workshops are in being planned between the Certification Unit and Management Evaluation Unit for a better process and procedures Proposed Completion Date: Ongoing
View Audit 317760 Questioned Costs: $1
Recommendation: We recommend the Authority implement a formalized closing process at least on an annual basis for all financial statement areas. The close process should include an in-depth analysis of all significant accounts, including recording all prior-year audit entries. All significant accoun...
Recommendation: We recommend the Authority implement a formalized closing process at least on an annual basis for all financial statement areas. The close process should include an in-depth analysis of all significant accounts, including recording all prior-year audit entries. All significant accounts should have supporting schedules that are prepared and reviewed by separate individuals within the Authority to ensure proper segregation of duties. Furthermore, supporting schedules should agree to the corresponding general ledger accounts. Implementation of these recommendations will improve financial reporting processes and internal controls of the Authority and result in a financial close with minimal proposed adjusting entries. Management’s response: Management will ensure proper segregation of duties and enhanced oversight, providing improved internal controls. Financial procedures and standard operating procedures will be revised, formalized and put into place.
Corrective action: Management has implemented internal controls over compliance in place to assist with the timely preparation of the SEFA.
Corrective action: Management has implemented internal controls over compliance in place to assist with the timely preparation of the SEFA.
Corrective action: Management understands the due date for single audit reporting package submission to the Federal Audit Clearinghouse and filed the 2021 single audit reporting package in August 2024.
Corrective action: Management understands the due date for single audit reporting package submission to the Federal Audit Clearinghouse and filed the 2021 single audit reporting package in August 2024.
Finding 480951 (2021-006)
Significant Deficiency 2021
2021-006 — SF-425 Reports (Significant Deficiency) (Repeated/Modified finding FS 2020-007) – During test work there were several reports that were not submitted timely. Luna County continues to improve grant management of these funds and in getting billing and reporting completed on a timely and con...
2021-006 — SF-425 Reports (Significant Deficiency) (Repeated/Modified finding FS 2020-007) – During test work there were several reports that were not submitted timely. Luna County continues to improve grant management of these funds and in getting billing and reporting completed on a timely and consistent basis. Reporting is currently being prepared and submitted on a quarterly basis for each grant cycle we have open. Reporting is also being prepared throughout the grant cycle to include modifications of Ops Orders, RFA’s and grant progress and closing reports. We are also reviewing a cross-training implementation to ensure that should we have turnover within that department there will be someone able to pick up the grant to continue to monitor and work it without delays.
Management acknowledges the findings and has implemented a corrective action plan to develop Standard Operating Procedures (SOPs) for current Grant management activities in order to assure that only expenditures incurred in each approved Project Worksheet (PW) that are not subsequently disallowed by...
Management acknowledges the findings and has implemented a corrective action plan to develop Standard Operating Procedures (SOPs) for current Grant management activities in order to assure that only expenditures incurred in each approved Project Worksheet (PW) that are not subsequently disallowed by the Federal Agency are included in the SEFA. In addition, the SEFA was amended to reflect PW expenditure in the accrual basis of accounting. Effective June 1, 2021, the Authority transitioned the management and operation of its transmission and distribution network as well as certain back- office functions, including billing, collections and accounting, to a third party. The third-party operator is reviewing operating procedures and controls within its responsibilities to make the necessary improvements. Management will work to address these findings with the assistance of the third-party operators, where applicable. Also, effective July 1, 2023, the Authority transitioned the management and operation of its generation assets as well as certain back- office functions to a third party. The thirdparty operator is reviewing operating procedures and controls within its responsibilities to make the necessary improvements. In addition, the Authority will also be implementing and monitoring corrective actions taken by the new generation segment operator. Contact Name Responsible for Corrective Action Plan - Nelson Morales Estimated Completion Date - July 2025
Management acknowledges the findings and has implemented a corrective action plan to enhance compliance with Federal awards. This plan includes developing Standard Operating Procedures (SOPs) for grant management activities, identifying and documenting existing internal controls, and maintaining con...
Management acknowledges the findings and has implemented a corrective action plan to enhance compliance with Federal awards. This plan includes developing Standard Operating Procedures (SOPs) for grant management activities, identifying and documenting existing internal controls, and maintaining constant communication with stakeholders to prevent material noncompliance. Additionally, PREPA will provide training to staff on the new SOPs and establish a monitoring mechanism to continuously assess and improve the effectiveness of these controls. The corrective action plan, supervised by Mr. Ezequiel Nieves from the PREPA Disaster Funding Management Office, is expected to be completed by July 2025. Management is committed to addressing deficiencies, ensuring that processes and controls are robust and effective, and that Federal awards are managed transparently and in full compliance with all regulatory requirements. Effective June 1, 2021, the Authority transitioned the management and operation of its transmission and distribution network as well as certain back- office functions, including billing, collections and accounting, to a third party. The third-party operator is reviewing operating procedures and controls within its responsibilities to make the necessary improvements. Management will work to address these findings with the assistance of the third-party operators, where applicable. Also, effective July 1, 2023, the Authority transitioned the management and operation of its generation assets as well as certain back- office functions to a third party. The thirdparty operator is reviewing operating procedures and controls within its responsibilities to make the necessary improvements. In addition, the Authority will also be implementing and monitoring corrective actions taken by the new generation segment operator. Contact Name Responsible for Corrective Action Plan - Ezequiel Nieves Estimated Completion Date - July 2025
Finding 2021-003: Reconciliation of Accounts Federal Program: Research and Development Cluster: 47.076 Condition: The year-end schedules for federal grants receivable, for net assets, and for vacation payable were not reconciled and needed to be revised and updated. Views of Responsible Officials an...
Finding 2021-003: Reconciliation of Accounts Federal Program: Research and Development Cluster: 47.076 Condition: The year-end schedules for federal grants receivable, for net assets, and for vacation payable were not reconciled and needed to be revised and updated. Views of Responsible Officials and Planned Corrective Actions: The outstanding liability due to NSF of $73,057 will be reimbursed when AAPT files the next drawn down request. Anticipated date of drawn down will be by April, 30,2024 The remaining balance was earned in 2021. The senior accountant will be trained to prepare entries previously prepared by the CFO The senior accountant will reconcile accounts, and provide updated current schedules. The CFO will review and approve the entries and schedules prepared by the Senior accountant. Anticipated Completion Date: 05/01/2024 Responsible Official: Michael Brosnan, CFO
3 de julio de 2024 Section II – Federal Award Findings and Questioned Costs Finding Number: 2021-001 Agency: Puerto Rico Office of Management and Budget Federal Program: Coronaviru...
3 de julio de 2024 Section II – Federal Award Findings and Questioned Costs Finding Number: 2021-001 Agency: Puerto Rico Office of Management and Budget Federal Program: Coronavirus Relief Fund Assistant listing number: 21.019 Grant Number: N/AV Grant Period: July 1, 2020 through June 30, 2021 Compliance Requirement: Reporting Category: Significant Deficiency and noncompliance over federal program Condition: During our audit of June 30, 2021 financial statement, we noted that single audit report for fiscal year 2020-2021 was not submitted by September 30, 2022. Cause: Missing of internal controls over financial reporting to produce financial statement on timely basis to comply with OMB reporting deadlines. Effect: Non-compliance with the above-mentioned requirement could lead to administrative actions by the grantor. It could also be interpreted as a failure to manage federal awards in compliance with laws, regulations, and provisions of contracts and grant agreements. Recommendation: To improve, execute and monitors accounting periods end closings as planned in order to get a financial statement on time to comply with required deadlines. Also, keep track and communication of federal programs compliances with regulatory parties and among agency’s responsible departments involve and establish a program deadline calendar. Questioned Costs: None Perspective of the information: Single audit report was issued after due date. The information was not drawn from a statistical sample. Calle Cruz #254 Esq. Tetuán, San Juan, PR / PO Box 9023228, San Juan, PR 00902-3228 Management response: 3 de julio de 2024 Section II – Federal Award Findings and Questioned Costs Finding Number: 2021-001 Agency: Puerto Rico Office of Management and Budget Federal Program: Coronavirus Relief Fund Assistant listing number: 21.019 Grant Number: N/AV Grant Period: July 1, 2020 through June 30, 2021 Compliance Requirement: Reporting Category: Significant Deficiency and noncompliance over federal program Condition: During our audit of June 30, 2021 financial statement, we noted that single audit report for fiscal year 2020-2021 was not submitted by September 30, 2022. Cause: Missing of internal controls over financial reporting to produce financial statement on timely basis to comply with OMB reporting deadlines. Effect: Non-compliance with the above-mentioned requirement could lead to administrative actions by the grantor. It could also be interpreted as a failure to manage federal awards in compliance with laws, regulations, and provisions of contracts and grant agreements. Recommendation: To improve, execute and monitors accounting periods end closings as planned in order to get a financial statement on time to comply with required deadlines. Also, keep track and communication of federal programs compliances with regulatory parties and among agency’s responsible departments involve and establish a program deadline calendar. Questioned Costs: None Perspective of the information: Single audit report was issued after due date. The information was not drawn from a statistical sample. Calle Cruz #254 Esq. Tetuán, San Juan, PR / PO Box 9023228, San Juan, PR 00902-3228 Management response: The Puerto Rico Office of Management and Budget (OMB) acknowledges the finding and the importance of complying with the OMB Uniform Guidance for single audits. The following actions have been taken and will continue to be implemented to ensure compliance: 1. Contracting External Audit Firms: o Action Taken: OMB has contracted qualified external audit firms to conduct the single audits to ensure compliance with federal requirements. o Outcome: This measure has resolved the immediate issue of non- compliance by ensuring timely submission of audit reports. The OMB complied with instructions from the Puerto Rico Fiscal Agency and Financial Advisory Authority (AAFAF) regarding reports related to these funds. The OMB presumed that AAFAF was responsible for the final report and audit to the federal government. The OMB will continue monitoring the use and disbursement of federal funds to comply with state and federal regulations. Responsible Officer: Mrs. Nivis González Rodríguez Estimated Completion Date: July 2024
We will work to comply with timeliness for completion of audits and submission of the audit reporting package and data collection form.
We will work to comply with timeliness for completion of audits and submission of the audit reporting package and data collection form.
Corrective action plan over control environment over lost revenue COVID – 19 – Provider Relief Funding (Assistance Listing #93.498) Recommendation: The Authority’s procedures for calculating lost revenues for the purposes of PRF reporting should be designed to ensure that audited year end numbers ar...
Corrective action plan over control environment over lost revenue COVID – 19 – Provider Relief Funding (Assistance Listing #93.498) Recommendation: The Authority’s procedures for calculating lost revenues for the purposes of PRF reporting should be designed to ensure that audited year end numbers are reported and/or tied back to amounts that are reported. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action planned/taken in response to finding: As of July 2024, there is no further lost revenue reporting that is required to be reported. Management will implement more robust internal controls in preparation for similar future grant reporting. For lost revenues that have been submitted for PRF that do not tie back to an audited financial statement, a reconciliation will be completed and documented. Name(s) of the contact person(s) responsible for corrective action: Min Cummings, VP of Finance and Accounting, 703-629-8155 Planned completion date for corrective action plan: July 31, 2024 and going forward.
Corrective action plan over control environment over completeness and accuracy of expenditures COVID – 19 – Coronavirus Relief Fund (Assistance Listing # 21.019) Recommendation: The Authority’s develop and implement effective internal controls to ensure that expenditures are reviewed for completenes...
Corrective action plan over control environment over completeness and accuracy of expenditures COVID – 19 – Coronavirus Relief Fund (Assistance Listing # 21.019) Recommendation: The Authority’s develop and implement effective internal controls to ensure that expenditures are reviewed for completeness and accuracy to ensure that the terms and conditions are met. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action planned/taken in response to finding: This program has ended. Management will enhance its procedures around the completeness and accuracy of expenditure schedules for similar future grant expenditures. Evidence of review and approval of supporting documentation of the expenditures related to report submissions will be documented. Name(s) of the contact person(s) responsible for corrective action: Min Cummings, VP of Finance and Accounting, 703-629-8155 Planned completion date for corrective action plan: July 31, 2024 and going forward.
Timely Preparation of Schedule of Expenditures of Federal Awards (SEFA) COVID – 19 – Coronavirus Relief Fund (Assistance Listing # 21.019); COVID – 19 – Provider Relief Fund (Assistance Listing #93.498) Recommendation: The Authority’s policy and procedure should be designed to ensure timely reportin...
Timely Preparation of Schedule of Expenditures of Federal Awards (SEFA) COVID – 19 – Coronavirus Relief Fund (Assistance Listing # 21.019); COVID – 19 – Provider Relief Fund (Assistance Listing #93.498) Recommendation: The Authority’s policy and procedure should be designed to ensure timely reporting as required by the Uniform Guidance. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action planned/taken in response to finding: Management will enhance its procedures around the preparation of the SEFA to include a timely year-end reconciliation between the general ledger and all source documentation to ensure that all Federal expenditures are complete and accurately reported in the SEFA in fiscal 2024. Name(s) of the contact person(s) responsible for corrective action: Min Cummings, VP of Finance and Accounting, 703-629-8155. Planned completion date for corrective action plan: For the creation of the Schedule for FY2023.
CONDITION: The District did not maintain a general ledger system of accounting for its Cafeteria Fund which reports the financial activity of the federal National School Lunch and School Breakfast Programs. The financial activity occurring in this Fund is maintained in checkbook fashion during the f...
CONDITION: The District did not maintain a general ledger system of accounting for its Cafeteria Fund which reports the financial activity of the federal National School Lunch and School Breakfast Programs. The financial activity occurring in this Fund is maintained in checkbook fashion during the fiscal year. This is a repeat finding (2020-004) from the previous fiscal year. CRITERIA: Prudent internal control over accounting for federal program funds requires non-federal organizations such as the School District to maintain financial records which account for federal funds in such a manner as to be able to properly track the receipt and use of federal funds as stated in Section 2 CFR Part 200 of the Uniform Guidance. Best practices suggest that the use of a general ledger system of accounting would enable the District to aggregate financial information involving federal funds during the fiscal year in such a manner to properly manage, monitor, and report the financial activity in compliance with federal program guidelines. RECOMMENDATION: During the 2018-2019 fiscal year, the District implemented new accounting software that can readily account for the financial activity of all Funds in a manner like the District’s General Fund. I am recommending that the management of the School District utilize the new accounting software to enter the financial activity (Receipts and Disbursements) of the Cafeteria Fund in a manner like the General Fund. This procedure will significantly enhance the District-wide internal controls over financial reporting for the Cafeteria Fund, as well as provide management the ability to produce meaningful financial reports reflecting the activity in the Cafeteria Fund for prudent oversight by the Board of Education. In addition, this procedure will enable the District to comply with the recordkeeping requirements for federal funds as specified in Section 2 CFR Part 200 of the Uniform Guidance. MANAGEMENT’S CORRECTIVE ACTION PLAN: District management is reviewing its current system of processing the transactions for the Cafeteria Fund to determine the most efficient and effective manner for implementation of a general ledger system of accounting for this Fund as opposed to its current manual process. It is anticipated that the conversion of this Fund into the District’s accounting software can be completed during the 2024-2025 fiscal year to enable the District to comply with the recordkeeping requirements for federal funds as specified in 2 CFR Part 200 of the Uniform Guidance.
CONDITION: The District did not properly record its federal program expenditures for the GEER, ESSER, and ARP ESSER federal grant programs using the various federal funding source expenditure codes as prescribed by the Chart of Accounts for PA Local Educational Agencies maintained by the PA Office o...
CONDITION: The District did not properly record its federal program expenditures for the GEER, ESSER, and ARP ESSER federal grant programs using the various federal funding source expenditure codes as prescribed by the Chart of Accounts for PA Local Educational Agencies maintained by the PA Office of the Budget, Office of Comptroller Operations. CRITERIA: The Pennsylvania Department of Education (PDE), through the PA Office of the Budget, Office of Comptroller Operations Chart of Accounts requires School Districts to utilize specific funding source codes for federal program expenditures. In addition, Section 2 CFR 200.302(a) and 302(b) of the Uniform Guidance requires non-federal organizations such as the School District to maintain financial records which account for federal funds in such a manner as to be able to properly track the identification and use of federal funds. RECOMMENDATION: I am recommending that the School District properly follow the guidance contained within the PA Office of the Budget, Office of Comptroller Operations Chart of Accounts for recording all expenditures of the School District, most specifically, federal program grant expenditures to 1) enhance internal controls for tracking and monitoring federal program expenditures and 2) comply with the recordkeeping requirements for federal funds as specified in Section 2 CFR Part 200.302(a) and 302(b) of the Uniform Guidance and PDE regulations. MANAGEMENT’S CORRECTIVE ACTION PLAN: District management is in the process of revising its chart of accounts in the general ledger to properly reflect the funding source codes for federal program expenditures, and other available funding source codes (state and local) as applicable to the District. It is anticipated that the updated chart of accounts will be utilized by the District starting with the 2024-2025 fiscal year to enable the District to enhance its internal controls for tracking and monitoring federal program expenditures and to comply with the recordkeeping requirements for federal funds as specified in Section 2 CFR Part 200.302(a) and 302(b) of the Uniform Guidance and PDE regulations.
Finding 479702 (2021-002)
Material Weakness 2021
The Director of Finance, along with staff will prepare and review grant policy and procedures. The Finance Department will review all grant agreements on a timely basis and perform monthly reconciliations of grant revenues and expenses. The Finance Department will further utilize features and functi...
The Director of Finance, along with staff will prepare and review grant policy and procedures. The Finance Department will review all grant agreements on a timely basis and perform monthly reconciliations of grant revenues and expenses. The Finance Department will further utilize features and functions available within its accounting system that allows tracking of expenditures and revenues by projects by utilizing task codes in our Project Management module. The Finance Department will collaborate with Departments by utilizing grant report forms to be completed periodically.
2 CFR Part 200.303(a) states that the auditee must establish and maintain effective internal control over the federal award that provides reasonable assurance that the auditee is managing the federal award in compliance with federal statutes, regulations, and terms and conditions of the federal awar...
2 CFR Part 200.303(a) states that the auditee must establish and maintain effective internal control over the federal award that provides reasonable assurance that the auditee is managing the federal award in compliance with federal statutes, regulations, and terms and conditions of the federal award. Section 200.507 of the Uniform Guidance states that the program-specific audit shall be completed, and reporting required submitted within the earlier of 30 calendar days after receipt of the auditors’ report, or nine months after the end of the audit, unless a longer period is specified in a program-specific audit guide. During 2023, we have strengthened internal controls related to review of the quarterly lost revenue calculations and reporting in the PRF reporting portal. Going forward, we will complete our audits and submit the required reports by the deadlines. We have taken appropriate steps to identify all other assistance received by quarter during the period of availability on the PRF report going forward.
All SEFA grants will be tracked thoroughly in FundEZ and annotated with their own cost center code to allow tracking them to be easier. The Director of Finance, Ethan Terrio, will reconcile these awards and expenses once a month to ensure that the numbers tie out in the general ledger. Should there ...
All SEFA grants will be tracked thoroughly in FundEZ and annotated with their own cost center code to allow tracking them to be easier. The Director of Finance, Ethan Terrio, will reconcile these awards and expenses once a month to ensure that the numbers tie out in the general ledger. Should there be any issues, he will contact the respective Division Director, either Susan Cody or Roxane Carpenter, to determine the cause of the variance, and how to correct the entry to be accurate.
Corrective action has been immediately implemented in response to the auditors' recommendation. As financial reporting is still in process of getting to current, the City anticipates findings to be reduced in future fiscal years.
Corrective action has been immediately implemented in response to the auditors' recommendation. As financial reporting is still in process of getting to current, the City anticipates findings to be reduced in future fiscal years.
1. Review and Revise Budget Development and Fiscal Monitoring Policies and Procedures August 2024 Fiscal Staff/Management Team Revise Budget Development and Fiscal Monitoring Policies and Procedures Head Start Performance Standards 45 CFR Part 1302.101 (a)(3) Management system (Implementation) and U...
1. Review and Revise Budget Development and Fiscal Monitoring Policies and Procedures August 2024 Fiscal Staff/Management Team Revise Budget Development and Fiscal Monitoring Policies and Procedures Head Start Performance Standards 45 CFR Part 1302.101 (a)(3) Management system (Implementation) and Uniform Guidance 45 CFR Part 75.302(b)(2) Financial Report and 75.341 Reporting Requirements
2. Board of Director and Policy Council approval of revised Policies and Procedures September 2024 Executive Director Revise Budget Development and Fiscal Monitoring Policies and Procedures Head Start Performance Standards 45 CFR Part 1302.101 (a)(3) Management system (Implementation) and Uniform Gu...
2. Board of Director and Policy Council approval of revised Policies and Procedures September 2024 Executive Director Revise Budget Development and Fiscal Monitoring Policies and Procedures Head Start Performance Standards 45 CFR Part 1302.101 (a)(3) Management system (Implementation) and Uniform Guidance 45 CFR Part 75.302(b)(2) Financial Report and 75.341 Reporting Requirements
3. Training Staff on Revised Policies and Procedures September 2024 Executive Director Revise Budget Development and Fiscal Monitoring Policies and Procedures Head Start Performance Standards 45 CFR Part 1302.101 (a)(3) Management system (Implementation) and Uniform Guidance 45 CFR Part 75.302(b)(2)...
3. Training Staff on Revised Policies and Procedures September 2024 Executive Director Revise Budget Development and Fiscal Monitoring Policies and Procedures Head Start Performance Standards 45 CFR Part 1302.101 (a)(3) Management system (Implementation) and Uniform Guidance 45 CFR Part 75.302(b)(2) Financial Report and 75.341 Reporting Requirements
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