Corrective Action Plans

Finding 554122 (2023-005)

Significant Deficiency 2023

CA

Questioned Costs Eligibility Reporting § 200.303

As reported in the prior year’s response, since fiscal year 2020-21, the Employment Development Department (EDD) has implemented dozens of strict anti-fraud measures and has continued to evaluate and enhance its fraud detection. EDD has also developed internal fraud working groups and a multiagency ...

As reported in the prior year’s response, since fiscal year 2020-21, the Employment Development Department (EDD) has implemented dozens of strict anti-fraud measures and has continued to evaluate and enhance its fraud detection. EDD has also developed internal fraud working groups and a multiagency fraud task force that reviews fraud data and fraud reports on a continual basis and recommends adjustments to filters and tools as necessary. EDD has successfully halted two large fraud scheme attempts over the previous two years and continues to work towards immediate detection and prevention of fraud attempts. EDD will continue to analyze and assess our processes to stay ahead of the ever-evolving fraud landscape. As previously described, EDD implemented the following measures to address the nationwide fraud attempts perpetrated against the new emergency federal benefit programs in 2020-21: • Implemented additional cross-matches in September 2020 to detect multiple claims per address. • Ceased automatically backdating PUA claims under federal rules in September 2020. • Strengthened identity verification procedures in October 2020 by implementing ID.me. • Implemented additional cross-matches in November 2020 against state inmate information. • Vetted applications against law enforcement databases and other tools provided by Thomson Reuters in December 2020 to further curb identity and non-identity fraud. • Established a 1099-G call center to help victims of identity theft deal with any tax-related questions. • Ceased printing Social Security numbers on mailed documents to reduce identity theft risk. • Enhanced benefit card security with Bank of America. • Partnered with state, local and federal law enforcement agencies to support thousands of criminal investigations, arrests, prosecutions and convictions. Estimated Implementation Date: Completed September 2024 Contact: Diane Underwood, Division Chief Unemployment Insurance Branch California Employment Development Department

View Audit 352774 Questioned Costs: $1

Finding 554120 (2023-003)

Significant Deficiency 2023

State of California

CA

Questioned Costs Eligibility Reporting § 200.303

Reference No. 2023-003: The EDD resumed adjudicating all potential eligibility issues as of January 2021 and completed the retroactive determination workload on April 30, 2023. Estimated Implementation Date: Completed April 2024 Contact: Diane Underwood, Division Chief Unemployment Insurance Branch ...

Reference No. 2023-003: The EDD resumed adjudicating all potential eligibility issues as of January 2021 and completed the retroactive determination workload on April 30, 2023. Estimated Implementation Date: Completed April 2024 Contact: Diane Underwood, Division Chief Unemployment Insurance Branch California Employment Development Department

View Audit 352774 Questioned Costs: $1

Finding 553748 (2023-005)

Significant Deficiency 2023

Ao: Advocating Opportunity, Inc.

OH

Procurement, Suspension & Debarment Allowable Costs / Cost Principles HUD Housing Programs

Suspension and Debarment Services for Victims of Human Trafficking – Assistance Listing No. 16.320 Recommendation: We recommend the Organization retain support of suspension and debarment checks for each vendor to support the written policy is implemented and the Uniform Grant Requirements are being...

Suspension and Debarment Services for Victims of Human Trafficking – Assistance Listing No. 16.320 Recommendation: We recommend the Organization retain support of suspension and debarment checks for each vendor to support the written policy is implemented and the Uniform Grant Requirements are being followed. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action planned in response to finding: The Organization will retain support of suspension and debarment checks for each vendor to support the written policy is implemented and the Uniform Grant Requirements are being followed. Name of the contact person responsible for corrective action: Megan Mattimoe, Executive Director Planned completion date for corrective action plan: June 1, 2025

View Audit 352321

Finding 548597 (2023-001)

Significant Deficiency 2023

City of Madera

CA

Subrecipient Monitoring Reporting Cash Management

Criteria: CODE OF FEDERAL REGULATIONS, Title 49 – TRANSPORTATION, Part 18 – UNIFORM ADMINISTRATIVE REQUIREMENTS FOR GRANTS AND COOPERATIVE AGREEMENTS TO STATE AND LOCAL GOVERNMENTS, Subpart C – Post-Award Requirements: 18.41 Financial Report (a) General (4), Due date. When reports are required o...

Criteria: CODE OF FEDERAL REGULATIONS, Title 49 – TRANSPORTATION, Part 18 – UNIFORM ADMINISTRATIVE REQUIREMENTS FOR GRANTS AND COOPERATIVE AGREEMENTS TO STATE AND LOCAL GOVERNMENTS, Subpart C – Post-Award Requirements: 18.41 Financial Report (a) General (4), Due date. When reports are required on a quarterly or semiannual basis, they will be due 30 days after the reporting period. When required on an annual basis, they will be due 90 days after the grant year. Final reports will be due 90 days after the expiration or termination of grant support. 18.58 (a) General. The Federal agency will close out the award when it determines that all applicable administrative actions and all required work of the grant has been completed. 18.50 (b) Reports. Within 90 days after the expiration or termination of the grant, the grantee must submit all financial, performance, and other reports required as a condition of the grant. Upon request by the grantee, Federal agencies may extend this time frame. These may include but are not limited to: (1) Final performance or progress report, (2) Financial Status Report (SF 269) or Outlay Report and Request for Reimbursement for Construction Programs (SF-271) (as applicable), (3) Final request for payment (SF-270) (if applicable), and (4) Invention disclosure (if applicable). U.S. OFFICE OF MANAGEMENT AND BUDGET CIRCULAR A-133—AUDITS OF STATES, LOCAL GOVERNMENTS, AND NON-PROFIT ORGANIZATIONS (OMB Circular A-133), Subpart C— Auditees, Section .300—Auditee Responsibilities (b) Maintain internal control over federal programs that provides reasonable assurance that the auditee is managing federal awards in compliance with laws, regulations, and the provisions of contracts or grant agreements that could have a material effect on each of its federal programs. Condition: For the Airport Improvement Program (AIP), the City did not submit the reports within the required deadline: Report Type Award Number Period Date Due Date Submitted SF-425 Financial 3-06-0034-018-2020 1/1/2022 - 12/31/2022 12/31/2022 Not submitted SF-270 Financial 3-06-0034-018-2020 1/1/2022 - 12/31/2022 12/31/2022 Not submitted FAA Form 5370-1 3-06-0034-018-2020 7/1/2022 - 9/30/2022 10/30/2022 Not submitted FAA Form 5370-1 3-06-0034-018-2020 10/1/2022 - 12/31/2022 1/30/2023 Not submitted FAA Form 5370-1 3-06-0034-018-2020 1/1/2023 - 3/31/2023 4/30/2023 Not submitted FAA Form 5370-1 3-06-0034-018-2020 4/1/2023 - 6/30/2023 7/30/2023 Not submitted Four (4) financial reports were tested and all reports were not submitted by the required deadline. Corrective Action Plan: City management concurs with the auditor’s comments and recommendations. The City will take steps to improve identification and monitoring of required grantor reporting deadlines. Anticipated Completion date: June 30, 2024 Name of Contact Person: Michael Lima, Director of Finance

View Audit 351947

Finding 547550 (2023-003)

Material Weakness 2023

Housing Authority of the County of Monterey

CA

Questioned Costs HUD Housing Programs Eligibility

Finding 2023-003 Federal Agency: U.S. Department of Housing and Urban Development Federal Program Titles: Section 8 Housing Choice Vouchers Program Federal Assistance Listing Numbers: 14.871 and 14.EHV Noncompliance – E. Eligibility – Tenant Files Non Compliance Material to the Financial Statements:...

Finding 2023-003 Federal Agency: U.S. Department of Housing and Urban Development Federal Program Titles: Section 8 Housing Choice Vouchers Program Federal Assistance Listing Numbers: 14.871 and 14.EHV Noncompliance – E. Eligibility – Tenant Files Non Compliance Material to the Financial Statements: Yes Significant Deficiency in Internal Control over Compliance for Eligibility: Emergency Housing Vouchers Material Weakness in Internal Control over Compliance for Eligibility: Section 8 Housing Choice Vouchers Program Criteria: Tenant Files. The PHA must do the following: As a condition of admission or continued occupancy, require the tenant and other family member to provide necessary information, documentation, and releases for the PHA to verify income eligibility (24 CFR sections 5.230, 5.609, and 982.516). These files are required to be maintained and available for examination at the time of audit. Condition: Based upon inspection of the Authority’s files and on discussion with management, there were documents that were unavailable for examination at the time of audit. Context: There are approximately 3,328 units. Of a sample size of fifty-four (54) tenant files, the following was noted: • One tenant file was missing entirely • Original application was missing in 6 files • Lead based paint form was missing in 3 files • Signed lease was missing in 3 files Our sample size is statistically valid. Known Questioned Costs: $88,087 Cause: There is significant deficiency in the Emergency Housing Vouchers Program and a material weakness in the Section 8 Housing Choice Vouchers Program in internal controls over the compliance for the eligibility type of compliance related to the maintenance of tenant files. The Authority has not properly considered, designed, implemented, maintained and monitored a system of internal controls that assures the program is in compliance. Effect: The Emergency Housing Vouchers Program is in non-compliance and the Section 8 Housing Choice Vouchers Program is in material non-compliance with the eligibility type of compliance related to the maintenance of tenant files. Recommendation: We recommend the Authority design and implement internal control procedures that will assure compliance with the Uniform Guidance and the compliance supplement. Views of responsible officials and planned corrective action: The Authority accepts the recommendation of the auditor. The affected files relate to clients that have been on the program for decades and as files get large, archiving takes place. To correct this finding, a directive will be issued to staff that will ensure that when files are archived the original application must be placed in the current working file going forward. Jonathan Campbell, Director of Housing Programs, will be responsible to implement this corrective action by June 30, 2024.

View Audit 351739 Questioned Costs: $1

Finding 547496 (2023-002)

Significant Deficiency 2023

Montgomery Housing Partnership, INC

MD

Eligibility HUD Housing Programs Subrecipient Monitoring

Management hereby provides a statement of concurrence regarding the findings related to 4 out of the 9 tested tenants who did have the annual tenant recertification from completely timely. Additionally, Management hereby provides a statement of concurrence regarding 1 out of 9 tenants tested did not...

Management hereby provides a statement of concurrence regarding the findings related to 4 out of the 9 tested tenants who did have the annual tenant recertification from completely timely. Additionally, Management hereby provides a statement of concurrence regarding 1 out of 9 tenants tested did not have the accurate amount of adjusted annual income reported on the tenant recertification form. Management will begin the recertification process 120 days prior to the recertification effective date to ensure adequate time for preparation and review. Management will issue a Notice to Vacate to any household that has failed to provide required documentation 30 days prior to the recertification effective date. Furthermore, income calculations will be thoroughly reviewed to ensure all sources of income and assets are calculated accurately and without the possibility of income discrepancies. Both tasks will primarily be handled by the Property Manager and Assistant Property Manager with additional assistance and oversight from the Regional Director and Assistant Regional Directors.

View Audit 351691

Finding 547121 (2023-003)

Significant Deficiency 2023

Industrial Technology Institute Dba Mi Manufacturing Tech Center

MI

Subrecipient Monitoring Reporting Significant Deficiency

Condition: The Organization did not have the appropriate controls in place over FFATA reporting and did not file the required reports. Further, while the Organization had written procedures over cash management, they were outdated and did not reflect the current staffing model. Planned Corrective ...

Condition: The Organization did not have the appropriate controls in place over FFATA reporting and did not file the required reports. Further, while the Organization had written procedures over cash management, they were outdated and did not reflect the current staffing model. Planned Corrective Action: A process has since been put in place to identify and adhere to required reporting requirements. Controller will gain access to the FFATA system. Currently getting a system error message. Alan to call NIST MEP Grant Administrator 2/10/25. Contact person responsible for corrective action: Alan Kowalewski, Controller Anticipated Completion Date: 04/01/2025

View Audit 351488

Finding 547120 (2023-002)

Significant Deficiency 2023

Industrial Technology Institute Dba Mi Manufacturing Tech Center

MI

Cash Management Internal Control / Segregation of Duties Allowable Costs / Cost Principles § 200.305

Condition: The Organization did not have appropriate segregation of duties surrounding the preparation and review of the monthly NIST schedules which accumulate the information necessary to calculate allowable costs and matching for drawdown requests. Further, while the Organization had written proc...

Condition: The Organization did not have appropriate segregation of duties surrounding the preparation and review of the monthly NIST schedules which accumulate the information necessary to calculate allowable costs and matching for drawdown requests. Further, while the Organization had written procedures over cash management, they were outdated and did not reflect the current staffing model. Planned Corrective Action: Subsequent to year end, the reorganized finance team put new controls and procedures in place. Moving forward the Accounting Supervisor will calculate the NIST MEP monthly program income which is used to determine the monthly award drawdown of cash from the available grant award funds. This is reviewed by the Controller and this report is used to create SF-425. Contact person responsible for corrective action: Alan Kowalewski, Controller Anticipated Completion Date: 07/01/24

View Audit 351488

Finding 541801 (2023-005)

Significant Deficiency 2023

Lake County

MN

Cash Management Reporting Significant Deficiency § 200.303

Finding Number: 2023-005 Finding Title: Local Collaborative Time Study (LCTS) Reporting (Cost Schedules DHS-3220) Program: 93.778 Medical Assistance Program Name of Contact Person Responsible for Corrective Action: Matthew Huddleston, County Administrator Corrective Action Planned: Lake County Pub...

Finding Number: 2023-005 Finding Title: Local Collaborative Time Study (LCTS) Reporting (Cost Schedules DHS-3220) Program: 93.778 Medical Assistance Program Name of Contact Person Responsible for Corrective Action: Matthew Huddleston, County Administrator Corrective Action Planned: Lake County Public Health and Human Services, acting as the Local Collaborative Time Study Fiscal Reporting and Payment agent, has implemented a process to receive and review all quarterly reports made by collaborative partners to DHS to ensure accurate program reimbursement. Anticipated Completion Date: 12-31-2024

View Audit 350710

Finding 541800 (2023-004)

Significant Deficiency 2023

Lake County

MN

Eligibility Significant Deficiency Internal Control / Segregation of Duties § 200.303

Finding Number: 2023-004 Finding Title: Eligibility Program: 93.778 Medical Assistance Program Name of Contact Person Responsible for Corrective Action: Matthew Huddleston, County Administrator Corrective Action Planned: Lake County Public Health and Human Services will utilize available reports i...

Finding Number: 2023-004 Finding Title: Eligibility Program: 93.778 Medical Assistance Program Name of Contact Person Responsible for Corrective Action: Matthew Huddleston, County Administrator Corrective Action Planned: Lake County Public Health and Human Services will utilize available reports in the DHS METS system to verify that all documentation is entered and verified. Additional procedures have been implemented to verify that transfer cases within the MAXIS system contain all necessary documentation. Anticipated Completion Date: 12-31-2024

View Audit 350710

Finding 541799 (2023-003)

Significant Deficiency 2023

Lake County

MN

Special Tests & Provisions Significant Deficiency Internal Control / Segregation of Duties § 200.303

Finding Number: 2023-003 Finding Title: Special Tests and Provisions Program: 10.665 Forest Service Schools and Roads Cluster, Schools and Roads – Grants to States Name of Contact Person Responsible for Corrective Action: Matthew Huddleston, County Administrator Corrective Action Planned: Title II...

Finding Number: 2023-003 Finding Title: Special Tests and Provisions Program: 10.665 Forest Service Schools and Roads Cluster, Schools and Roads – Grants to States Name of Contact Person Responsible for Corrective Action: Matthew Huddleston, County Administrator Corrective Action Planned: Title III funds will be reviewed annually to ensure funds are not expended prior to the required 45-day comment period. Anticipated Completion Date: 12-31-2025

View Audit 350710

Finding 539051 (2023-001)

Significant Deficiency 2023

Blackstone - Millville Regional School District

MA

Allowable Costs / Cost Principles Internal Control / Segregation of Duties Cash Management

January 6, 2025 The Blackstone – Millville Regional School District respectfully submits the following corrective action plan for the year ended June 30, 2023. Name and address of independent public accounting firm: Robert E. Brown II, CPA Certified Public Accountant 25 Cemetery Street P.O. Box ...

January 6, 2025 The Blackstone – Millville Regional School District respectfully submits the following corrective action plan for the year ended June 30, 2023. Name and address of independent public accounting firm: Robert E. Brown II, CPA Certified Public Accountant 25 Cemetery Street P.O. Box 230 Mendon, Massachusetts 01756 Audit period: The finding from the June 30, 2023 schedule of findings and questioned costs is discussed below. The finding is numbered consistently with the number assigned in the schedule of expenditures of federal awards. Finding 2023-001 – Education Stabilization Fund – AL No.’s 84.425D & 84.425U Department of Education Massachusetts Department of Elementary and Secondary Education Noncompliance and Significant Deficiency Related to Internal Control over Compliance of the Major Program Criteria: Grantees must provide reasonable assurance that federal awards are expended only for allowable activities and that the costs of goods and services charged to federal awards are allowable and in accordance with the applicable cost principles. Management of the District is also responsible for establishing and maintaining effective internal control over compliance with federal requirements that have a direct and material effect on a federal program. A deficiency in internal control over compliance exists when the design or operation of a control over compliance does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, noncompliance with a type of compliance requirement of a federal program on a timely basis. Condition and Context: Control deficiencies related to disbursements were noted as a result of the testing of internal controls over payroll. Specifically, a sample of payroll disbursements charged to the major program were tested in order to determine if adequate internal controls were in place. As a result of the testing of payroll disbursements charged to the programs, the employees tested were found to not have adequately approved and or documented employee payroll rate agreements. Cause: BMR experienced limited oversight of detailed financial activities due to the ongoing search for an experienced Director of Finance and Operations. While general budgetary oversight was maintained to ensure the district's overall fiscal health, detailed financial oversight was insufficient during this period. Effect or Potential Effect: Due to the significant deficiencies and noncompliance in internal controls noted above, there is a risk of inappropriate rate of pay and/or wages being paid. Identification as a Repeat Finding: N/A Questioned Costs: Questioned costs could not be determined. Recommendation: The Blackstone – Millville Regional School District should improve the internal controls over Activities Allowed/Allowable Costs by ensuring employee’s payroll rate agreements are approved by an appropriate level of management and in a timely manner. Managements Response: Due to the timing of the grant, we implemented several internal controls beginning at the start of fiscal year 2025 to address the identified findings. Payroll accounts are now reviewed on an ongoing basis to ensure proper coding and accuracy. Additionally, the Grants Manager conducts consistent reviews of expenditures charged to grants to confirm that all costs are allowable under the respective grant guidelines. This review process ensures that any reimbursement requests for expenditures align properly with grant requirements. As part of these reviews, we also verify and confirm the rates used to ensure they comply with the terms of the approved grant funding. These measures, initiated at the beginning of fiscal year 2025, collectively strengthen our internal controls, enhance compliance, and improve the overall accuracy of our financial practices. Responsible for Corrective Plan: Director of Finance and Operations Estimated Completion Date: Beginning of fiscal year 2025 Action Taken: See management response for details of action taken

View Audit 349770

Finding 538985 (2023-004)

Significant Deficiency 2023

Weston Senior Citizens Housing, Inc.

MO

Special Tests & Provisions Subrecipient Monitoring Reporting

Finding 2023-004 Responsible Party Name: Tamara Wallace Position: Executive Director – Management Agent Telephone Number: 816-233-4250 Federal Agency U.S. Department of Agriculture Federal Program Rural Rental Housing Loans (Section 515) Compliance Requirements N – Special T...

Finding 2023-004 Responsible Party Name: Tamara Wallace Position: Executive Director – Management Agent Telephone Number: 816-233-4250 Federal Agency U.S. Department of Agriculture Federal Program Rural Rental Housing Loans (Section 515) Compliance Requirements N – Special Tests and Provisions Finding Type Federal Awards Auditee’s Comments on Finding We agree with the auditors’ finding. Corrective Action(s) We will follow procedures to ensure occupancy according to USDA guidelines. Anticipated Completion Date June 30, 2024

View Audit 349655

Finding 538984 (2023-003)

Significant Deficiency 2023

Weston Senior Citizens Housing, Inc.

MO

Special Tests & Provisions Subrecipient Monitoring Reporting

Finding 2023-003 Responsible Party Name: Tamara Wallace Position: Executive Director – Management Agent Telephone Number: 816-233-4250 Federal Agency U.S. Department of Agriculture Federal Program Rural Rental Housing Loans (Section 515) Compliance Requirements N – Special T...

Finding 2023-003 Responsible Party Name: Tamara Wallace Position: Executive Director – Management Agent Telephone Number: 816-233-4250 Federal Agency U.S. Department of Agriculture Federal Program Rural Rental Housing Loans (Section 515) Compliance Requirements N – Special Tests and Provisions Finding Type Federal Awards Auditee’s Comments on Finding We agree with the auditors’ finding. Corrective Action(s) We will adopt a policy to ensure tenants requesting maintenance of property is being maintained properly in the maintenance system and we will review the accuracy of the documentation being processed in the maintenance system on a quarterly basis. Anticipated Completion Date June 30, 2024

View Audit 349655

Finding 538272 (2023-001)

Significant Deficiency 2023

Town of Eatonville

WA

Subrecipient Monitoring Procurement, Suspension & Debarment Internal Control / Segregation of Duties § 200.318

CORRECTIVE ACTION PLAN FOR FINDINGS REPORTED UNDER UNIFORM GUIDANCE Town of Eatonville January 1, 2023 through December 31, 2023 This schedule presents the corrective action the Town is planning to take for findings included in this report in accordance with Title 2 U.S. Code of Federal Regulations...

CORRECTIVE ACTION PLAN FOR FINDINGS REPORTED UNDER UNIFORM GUIDANCE Town of Eatonville January 1, 2023 through December 31, 2023 This schedule presents the corrective action the Town is planning to take for findings included in this report in accordance with Title 2 U.S. Code of Federal Regulations (CFR) Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Finding ref number: 2023-001 Finding caption: The Town did not have adequate internal controls for ensuring compliance with federal procurement requirements. Name, address, and telephone of Town contact person: Miranda Doll 201 Center St. W Eatonville, WA 98328 (360) 832-3361 Corrective action the auditee plans to take in response to the finding: The Town commits to developing written procurement standards in Uniform Guidance (2 CFR 200.318-327) and implementing internal controls to ensure compliance with federal procurement requirements at the Town staff level rather than relying so heavily on consultants. Anticipated date to complete the corrective action: July 1, 2025

View Audit 349296

Finding 538128 (2023-003)

Significant Deficiency 2023

Allen County Drug and Alcohol Consortium, Inc.

IN

Procurement, Suspension & Debarment Significant Deficiency Internal Control / Segregation of Duties § 200.138 § 200.318

Views of Responsible Officials and Planned Corrective Actions: The Organization will review CFR Sections 200.138 and 300.327 and develop written policies that align with the compliance requirements. Monique Johnson, Executive Director of Allen County Drug & Alcohol Consortium, is responsible for th...

Views of Responsible Officials and Planned Corrective Actions: The Organization will review CFR Sections 200.138 and 300.327 and develop written policies that align with the compliance requirements. Monique Johnson, Executive Director of Allen County Drug & Alcohol Consortium, is responsible for this corrective action. The anticipated completion date is June 30, 2025.

View Audit 349144

Finding 537642 (2023-003)

Significant Deficiency 2023

Northeast Woodland Chartered Public School

VT

Significant Deficiency Internal Control / Segregation of Duties

Management is responsible for maintaining adequate records for payroll transactions charged to federal awards that accurately reflect payroll expenses. These records must include employee benefit election forms signed by the respective employees. During control and compliance testing, it was noted t...

Management is responsible for maintaining adequate records for payroll transactions charged to federal awards that accurately reflect payroll expenses. These records must include employee benefit election forms signed by the respective employees. During control and compliance testing, it was noted that retirement benefit forms for payroll expenses charged to the federal award were not retained. Of the 9 occurrences tested, 6 were missing benefit forms. Statement of Concurrence or Nonconcurrence: The school is in agreement with this finding. The School had employed an individual to oversee the business functions previously that did not retain this documentation. As a result of this condition, the School’s payroll expenditures charged to the federal grant lacked adequate control documentation. Corrective Action: Beginning at the current date, the school will retain a paper form filled out by employees annually, which details their payroll benefit settings for the year. The form will be signed by the Head of School and the employee. If staff members adjust any deductions during the year, the form will be adjusted and initialed by the employee and the Head of School. Projected Completion Date: This action will be completed for the 2024-2025 school year by March 14, 2025. If the Office of Policy and Management and/or NHED has questions regarding this plan, please call Sarah Arnold at 603-374-7896, ext. 2.

View Audit 348931

Finding 537641 (2023-002)

Significant Deficiency 2023

Northeast Woodland Chartered Public School

VT

Procurement, Suspension & Debarment Significant Deficiency

Management is responsible for maintaining adequate records for vendor transactions charged to federal awards that accurately reflect expenses. These records must include an invoice with a signature from a knowledgeable and authorized individual approving the expense. During control and compliance te...

Management is responsible for maintaining adequate records for vendor transactions charged to federal awards that accurately reflect expenses. These records must include an invoice with a signature from a knowledgeable and authorized individual approving the expense. During control and compliance testing, it was noted that approvals for vendor expenses charged to the federal award were not retained. Of the 60 occurrences tested, 55 were missing any type of approval support. Statement of Concurrence or Nonconcurrence: The school agrees with the finding Corrective Action Plan In May of 2023, the school implemented a dual approval for expenses. Expense requests are submitted in writing and signed by the Head of School. These requests are saved. There is an additional approval that happens in the payment system, BILL. Project Completion Date May of 2023. This plan is completed and checked by the Head of School, Office Manager, and Financial Consultant on a regular basis. If the (Office of Policy and Management and/or NHED) has questions regarding this plan, please call Sarah Arnold at 603-374-7896.

View Audit 348931

Finding 529877 (2023-004)

Significant Deficiency 2023

Manor College

PA

Questioned Costs Cash Management Significant Deficiency

The enhanced reconciliation process noted above for the Correction Action for Finding 2023-003 will determine the amount of financial aid awarded during the month. Based on the amount awarded, the College will then draw down the amount awarded. Manor believes the monthly reconcilation and drawdown p...

The enhanced reconciliation process noted above for the Correction Action for Finding 2023-003 will determine the amount of financial aid awarded during the month. Based on the amount awarded, the College will then draw down the amount awarded. Manor believes the monthly reconcilation and drawdown process being implemented by Manor personnel will minimize the risk that student financial aid funds are overdrawn.

View Audit 347913 Questioned Costs: $1

Finding 529876 (2023-003)

Significant Deficiency 2023

Manor College

PA

Student Financial Aid Reporting Significant Deficiency

In conjunction with the overall implementation and enhancement of financial processes and procedures to enhance financial reporting, the month-end reporting process will ensure that the financial aid and financial accounting systems are reconciled. The monthly reconciliation process and a review pro...

In conjunction with the overall implementation and enhancement of financial processes and procedures to enhance financial reporting, the month-end reporting process will ensure that the financial aid and financial accounting systems are reconciled. The monthly reconciliation process and a review process by proper Manor personnel prior to submission of the FISAP will minimize the risk of errors in the FISAP report and will assist tracking of student financial aid for each respective student receiving financial aid.

View Audit 347913

Finding 528517 (2023-002)

Significant Deficiency 2023

Sacramento Lgbt Community Center

CA

Reporting Subrecipient Monitoring Significant Deficiency

Finding Reference Number: 2023-02 Description of Finding: The Organization submitted its Audited Financial Statements and Single Audit report to the federal clearing house in February 2025, five months after it was due. Statement of Concurrence or Nonconcurrence: The Organization concurs with this f...

Finding Reference Number: 2023-02 Description of Finding: The Organization submitted its Audited Financial Statements and Single Audit report to the federal clearing house in February 2025, five months after it was due. Statement of Concurrence or Nonconcurrence: The Organization concurs with this finding. The delinquency was caused by staff turnover in the key positions and accounting contractor delays responsible for the preparation of the Audited Statements and Schedule of Expenditures of Federal Awards. Corrective Action: The Organization has hired a Chief Operating Officer (COO) who has direct responsibility for the audit process. In addition, the Organization has engaged a new accounting group to perform the accounting tasks necessary to complete the audit timely. Project Completion date: August 2024

View Audit 346526

Finding 528439 (2023-001)

Significant Deficiency 2023

City of Ferndale

WA

Subrecipient Monitoring Internal Control / Segregation of Duties Procurement, Suspension & Debarment § 200.318

CORRECTIVE ACTION PLAN FOR FINDINGS REPORTED UNDER UNIFORM GUIDANCE City of Ferndale January 1, 2023 through December 31, 2023 This schedule presents the corrective action the City is planning to take for findings included in this report in accordance with Title 2 U.S. Code of Federal Regulations (C...

CORRECTIVE ACTION PLAN FOR FINDINGS REPORTED UNDER UNIFORM GUIDANCE City of Ferndale January 1, 2023 through December 31, 2023 This schedule presents the corrective action the City is planning to take for findings included in this report in accordance with Title 2 U.S. Code of Federal Regulations (CFR) Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Finding ref number: 2023-001 Finding caption: The City did not have adequate internal controls for ensuring compliance with federal procurement requirements. Name, address, and telephone of City’s contact person: Finance Director Danielle Ingham 2095 Main Street Ferndale, WA 98248 (360) 384-4302 Corrective action the auditee plans to take in response to the finding: The City is currently in the process of adopting a comprehensive purchasing and procurement policy, with the goal of implementing the major components of these policies by the end of April 2025. Although the City has consistently followed established purchasing procedures, including redundant reviews and purchasing limits, these practices have occasionally varied across departments and have not been formally codified. The City acknowledges that formal adoption of purchasing policies not only ensures consistency in procurement practices across the organization but also serves as a valuable resource for employee training, particularly when making purchasing decisions that are uncommon for the jurisdiction. In recent years, the City has reexamined its broad range of financial responsibilities, including procurement, and has considered delaying the adoption of new policies until the landscape of these changes stabilizes. However, in its ongoing commitment to continuous improvement, the City has determined that adopting purchasing and procurement policies that address the majority of the City’s procurement decisions is the most effective course of action. These policies will be subject to ongoing refinement and updates over time. The City remains receptive to insights and recommendations, such as those provided by the SAO, which contribute to the enhancement of its processes. Anticipated date to complete the corrective action: April 2025.

View Audit 346438

Finding 526810 (2023-003)

Significant Deficiency 2023

Eastern Area Workforce Development Board

NM

Reporting Internal Control / Segregation of Duties Significant Deficiency § 200.512

Recommendation We recommend that management enhance its internal control structure, including financial close and reporting, to ensure timely filing of future Single Audit reporting packages. Management Response Corrective Action: EAWDB agrees that the single audit reporting package has not been su...

Recommendation We recommend that management enhance its internal control structure, including financial close and reporting, to ensure timely filing of future Single Audit reporting packages. Management Response Corrective Action: EAWDB agrees that the single audit reporting package has not been submitted in a timely manner. EAWDB has engaged a third-party accounting firm and made staff duty changes to address the timely submission of accounting information. Due Date of Completion: March 31, 2025 Responsible Party(ies): General Administrator, Executive Director, third-party accounting firm

View Audit 345892

Finding 526792 (2023-003)

Significant Deficiency 2023

Birmingham Jefferson County Transit Authority

AL

Reporting Significant Deficiency § 200.512

In 2023, the Authority continued to face challenges with staffing shortages and turnover in key financial positions. These challenges resulted in delays in performing and completing accounting functions and issuing financial statements in a timely manner. However, Finance Department is now almost fu...

In 2023, the Authority continued to face challenges with staffing shortages and turnover in key financial positions. These challenges resulted in delays in performing and completing accounting functions and issuing financial statements in a timely manner. However, Finance Department is now almost fully staffed, and our accounting professionals possess the talent and experience to ensure accounting functions and processes are performed and completed in a timely matter. We now have the following accounting positions filled — Accounting Manager, Accounting Supervisor, and Senior Accountant. Furthermore, we have advertised and expect to soon fill the position of Controller. Filling these positions and elevating the talent level have resulted in immediate enhancements in financial reporting and will enable the Authority to submit the reporting package to the Federal Audit Clearinghouse by the prescribed due date.

View Audit 345835

Finding 526464 (2023-003)

Significant Deficiency 2023

Okanogan County Child Development Association

WA

Internal Control / Segregation of Duties Cash Management Significant Deficiency

Recommendation: The Association establish controls that allow for the timely and accurate recording of grants and contracts receivable from reimbursement-based awards in the same period as their corresponding expenditures. Explanation of disagreement with audit finding: There is no disagreement with...

Recommendation: The Association establish controls that allow for the timely and accurate recording of grants and contracts receivable from reimbursement-based awards in the same period as their corresponding expenditures. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: Containment Through this audit process and staff turnover, tasks have been distributed and processes have been implemented immediately to meet the expectations that an AR transaction be entered into the fiscal system within a timely manner of one week or sooner. Root Cause Due to a lack of knowledge of the new software system. Not all information was migrated into the new software system in a timely manner, making it difficult to use at its full potential. OCCDA had a large turnover in the fiscal team during the audit process. The transition to the new fiscal software was during the height of the COVID-19 pandemic, making it difficult to complete training and migration of the new system. Action Taken Immediately in 2023, the fiscal team implemented adding reports/documentation to all requests for funding to allow for better tracking and record keeping. Newly hired staff have established a clear understanding of the naming conventions for clarity and accurate reporting. Tasks have been realigned to specific positions so that all duties are covered and responsibilities are defined. This will ensure that all fiscal tasks are completed timely and accurately establishing controls for reimbursement funding. Training has been provided for the fiscal team on the internal processes and procedures to ensure the timely entry of all data and the importance of accurate monthly reports. We have reorganized the chart of accounts in support of the software consultants, we have added additional program numbers to track grants separately by funding year to allow us to close each grant yearly. Our Fiscal Assistant has been trained to complete all accounts receivable. Receivable billings are completed in the month that they are performed. All receipts are recorded in the month they are received. Monthly reports continue to be sent out each month for the Leadership team to review, allowing for transparency and additional reviews and accuracy. All bank reconciliations were completed and brought up to date in 2023. The GL accounts were updated for better separation and grant tracking. Updated our policy and procedures for recording revenue in the same period it occurred. We have updated internal controls and procedures for reconciling and reviewing all revenue and expenses regularly.

View Audit 345386

Corrective Action Plans

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