Corrective Action Plans

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SIGNIFICANT DEFICIENCY IN INTERNAL CONTROL OVER COMPLIANCE – PASSED THROUGH MINNESOTA DEPARTMENT OF EDUCATION – COVID-19 – EDUCATION STABILIZATION FUND (FEDERAL ALN 84.425) 2023-003 Internal Control Over Compliance With Equipment and Real Property Management Requirements Finding Summary 2 CFR § ...
SIGNIFICANT DEFICIENCY IN INTERNAL CONTROL OVER COMPLIANCE – PASSED THROUGH MINNESOTA DEPARTMENT OF EDUCATION – COVID-19 – EDUCATION STABILIZATION FUND (FEDERAL ALN 84.425) 2023-003 Internal Control Over Compliance With Equipment and Real Property Management Requirements Finding Summary 2 CFR § 200.313(d)(1) requires the Academy to designate fixed assets purchased under federal programs and to maintain related property records, including a description of the property, a serial number or other unique identification number, the source of funding for the property (including the federal Assistance Listing Number), who holds title, the acquisition date, cost of the property, percentage of federal participation in the project costs for the federal award under which the property was acquired, the location, use, and condition of the property, and any ultimate disposition data, including the date of disposal and sale price of the property. During our audit, we noted that the Academy did not have sufficient controls in place within the COVID-19 – Education Stabilization Fund federal program to specifically identify federally-funded fixed assets and maintain the required records as noted above to assure compliance with federal equipment and real property management requirements. Corrective Action Plan Actions Planned – The Academy plans to review its internal control procedures to ensure future compliance with the federal compliance requirements specific to equipment and real property management for the COVID-19 – Education Stabilization Fund federal program. Official Responsible – The Academy’s Executive Director, Farhiya Einte. Planned Completion Date – June 30, 2024. Disagreement With or Explanation of Finding – The Academy agrees with this finding. Plan to Monitor – The Academy’s Executive Director, Farhiya Einte, will ensure that federally-funded fixed assets are distinguishable within the Academy’s finance system. The Academy also intends to review its control procedures relating to equipment and real property management requirements to ensure compliance for future federal awards expenditures.
The Association has implemented controls to help mitigate the segregation of duties issue noted. The CEO reviews and approves all invoices prior to payment. The Association provides a list of disbursements to the Board of Directors monthly as well as a completed set of financial statements. Manageme...
The Association has implemented controls to help mitigate the segregation of duties issue noted. The CEO reviews and approves all invoices prior to payment. The Association provides a list of disbursements to the Board of Directors monthly as well as a completed set of financial statements. Management, including the Board of Directors, continues to have discussions regarding cost effective methods to obtain additional controls, including potential new staff and realignment of duties, however, at this time, the Association has determined that the cost of eliminating this deficiency would exceed its benefit.
DEPARTMENT OF HEALTH AND HUMAN SERVICES 2023 – 003 COVID-19 Provider Relief Funding and American Rescue Plan Rural Payments Recommendation: We recommend the Medical Center design controls to ensure documentation is completed timely and sufficiently on how costs are necessary to respond to COVID-19....
DEPARTMENT OF HEALTH AND HUMAN SERVICES 2023 – 003 COVID-19 Provider Relief Funding and American Rescue Plan Rural Payments Recommendation: We recommend the Medical Center design controls to ensure documentation is completed timely and sufficiently on how costs are necessary to respond to COVID-19. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Management has identified that the Medical Center has more than a sufficient amount of lost revenues related to COVID-19 to offset this difference. Action taken in response to finding: The Medical Center will ensure that controls are put into place to capture Covid specific costs in accordance with HHS guidelines. Name of the contact person responsible for corrective action: Kayla Chamberlin, Controller Planned completion date for corrective action plan: July 1, 2023
U.S. DEPARTMENT OF COMMERCE 2023-002 COVID 19 – Coronavirus State and Local Fiscal Recovery Funds (Federal Assistance Listing Number 21.027) Recommendation: To ensure compliance, we recommend strengthening of internal control by training multiple staff how to complete vendor checks required by the U...
U.S. DEPARTMENT OF COMMERCE 2023-002 COVID 19 – Coronavirus State and Local Fiscal Recovery Funds (Federal Assistance Listing Number 21.027) Recommendation: To ensure compliance, we recommend strengthening of internal control by training multiple staff how to complete vendor checks 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: The vendor status was not properly checked due to staff oversight and unfamiliarity with compliance requirements. The City has educated staff entering contracts that will use grant funding on the importance of checking for suspended or debarred status before engaging. Training of staff on procedures to check suspended or debarred status will also be implemented. Name of the contact person responsible for corrective action: Kyle Cratty, Finance Director Planned completion date for corrective action plan: On-going
During the period being audited internal controls for program participants documents were not reviewed by the former Executive Director. The new Executive Director has implemented a check and balance procedure that requires the Case Manager, Program Manager, and Executive Director to review and sign...
During the period being audited internal controls for program participants documents were not reviewed by the former Executive Director. The new Executive Director has implemented a check and balance procedure that requires the Case Manager, Program Manager, and Executive Director to review and sign off on participant application forms and to be documented on the participants application before the participant can move forward in the program.
View Audit 316070 Questioned Costs: $1
During the period being audited internal controls for program participants documents were not reviewed by the former Executive Director. The new Executive Director has implemented a check and balance procedure that requires the Case Manager, Program Manager, and Executive Director to review and sign...
During the period being audited internal controls for program participants documents were not reviewed by the former Executive Director. The new Executive Director has implemented a check and balance procedure that requires the Case Manager, Program Manager, and Executive Director to review and sign off on participant application forms and to be documented on the participants application before the participant can move forward in the program.
Finding 2023-002 - Reporting (COVID-19 American Rescue Plan Act Local Fiscal Recovery) Significant Deficiency – Internal Control over Compliance Other Matters (Noncompliance) Description of Finding - Controls over Project and Expenditure Reports did not exist to ensure accuracy of submitted data. ...
Finding 2023-002 - Reporting (COVID-19 American Rescue Plan Act Local Fiscal Recovery) Significant Deficiency – Internal Control over Compliance Other Matters (Noncompliance) Description of Finding - Controls over Project and Expenditure Reports did not exist to ensure accuracy of submitted data. Statement of Concurrence or NonConcurrence - Management agrees with the finding. Corrective Action - The City has implemented additional processes and controls related to the review of treasury reporting. However, these were not in place for all of the current year. Name of Contact Person - John Monks, Comptroller Projected Completion Date - June 30, 2024
Finding Number: 2023-001 Finding Title: Eligibility – Source Documentation Program: 14.871 Section 8 Housing Choice Vouchers 14.879 Mainstream Vouchers Name of Contact Person Responsible for Corrective Action: Terri Smith, Director Metro HRA Corrective Action Planned: HRA staff has developed a check...
Finding Number: 2023-001 Finding Title: Eligibility – Source Documentation Program: 14.871 Section 8 Housing Choice Vouchers 14.879 Mainstream Vouchers Name of Contact Person Responsible for Corrective Action: Terri Smith, Director Metro HRA Corrective Action Planned: HRA staff has developed a checklist form and update procedures for all staff to ensure signatures and forms are not missing in case files, this includes but is not limited to criminal background checks performed, citizenship forms, members of the household forms, and debts owed forms. The checklist will be completed for each case and stored in each participant file as part of the quality control process. The quality control process that was implemented in June 2023 had not been in place for a full year when the 2023 audit was completed. All files are being checked at Annual Recertification. Once this has been in place for a full year, all files will have been checked for the appropriate forms and signatures. Anticipated Completion Date: This process will be in place effective July 2024.
Finding 479420 (2023-001)
Significant Deficiency 2023
Special Tests and Provisions: HPP staff will follow written policy and procedures for ensuring all clients have a rent reasonableness form with new move ins and annual recertifications. The Director of Housing Programs will initial each document submitted for a new move in or an annual recertificati...
Special Tests and Provisions: HPP staff will follow written policy and procedures for ensuring all clients have a rent reasonableness form with new move ins and annual recertifications. The Director of Housing Programs will initial each document submitted for a new move in or an annual recertification to ensure all necessary documents are in each client file. Person Responsible for Corrective Action: Director of Housing Heather Ryan Figueroa Anticipated Date of Completion: June 7, 2024
Develop a comprehensive policy outlining the procedures for reviewing the monthly payroll grant summary. Provide training and guidance to the designated reviewer on the policies and procedures outlined in the new policy. Maintain thorough documentation of the review activities conducted, including a...
Develop a comprehensive policy outlining the procedures for reviewing the monthly payroll grant summary. Provide training and guidance to the designated reviewer on the policies and procedures outlined in the new policy. Maintain thorough documentation of the review activities conducted, including any corrective actions taken in response to identified issues.
Maintain detailed documentation of the review process, including any findings or discrepancies identified during the review of drawdowns. Establish clear review procedures for the drawdowns prepared by the Assistant Controller. Continuously monitor the effectiveness of the review process and identif...
Maintain detailed documentation of the review process, including any findings or discrepancies identified during the review of drawdowns. Establish clear review procedures for the drawdowns prepared by the Assistant Controller. Continuously monitor the effectiveness of the review process and identify areas for improvement. Implement any necessary changes or enhancements to the review procedures to ensure thorough compliance with grant requirements.
Finding 479403 (2023-003)
Significant Deficiency 2023
Condition The Quarter 2 and 4 Project and Expenditure Reports were tested. The Quarter 4 (Q4) report had a typo that resulted in the Q4 expenditures to be understated by $1,007,000 for project 2-6-001, but the cumulative expenditures were input correctly. Additionally, project 12-6-201 was understat...
Condition The Quarter 2 and 4 Project and Expenditure Reports were tested. The Quarter 4 (Q4) report had a typo that resulted in the Q4 expenditures to be understated by $1,007,000 for project 2-6-001, but the cumulative expenditures were input correctly. Additionally, project 12-6-201 was understated by $18,515 for the Q4 and cumulative expenditures due to excluding a transaction. Corrective Action Plan Corrective Action Planned: SLFRF Compliance reports will be reviewed and approved by the Grant Administrator, Assistant Finance Director and Finance Director. Query reports are now in place to capture all accounts and ensure accuracy. Name(s) of Contact Person(s) Responsible for Corrective Action: Susan House, Grant Administrator; Linda Chosa, Assistant Finance Director; Diana Ellenbecker, Finance Director Anticipated Completion Date: July 31, 2024
Management will implement the necessary changes to WHCA's policies and procedures.
Management will implement the necessary changes to WHCA's policies and procedures.
COVID - 19 Coronavirus State and Local Fiscal Recovery Funds (SLFRF) Condition: During our testing of nine covered transactions (three vendors and six subawards), we noted all three vendors did not have proper supporting documentation for suspension and debarment procedures for vendors. Recommendati...
COVID - 19 Coronavirus State and Local Fiscal Recovery Funds (SLFRF) Condition: During our testing of nine covered transactions (three vendors and six subawards), we noted all three vendors did not have proper supporting documentation for suspension and debarment procedures for vendors. Recommendation: We recommend the County obtain certifications from vendors stating their organization is not suspended, debarred, or otherwise excluded from participation in federal assistance programs or document the procedures performed to verify the vendor is not identified as suspended or debarred on SAM, even if no formal agreement exists with a vendor. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: Program will on a quarterly basis review all vendor expense and pull the suspension and debarment when the vendor is close to reaching $20,000 in expenses. Name of the contact person responsible for corrective action: Laura Garcia Planned completion date for corrective action plan: December 31, 2024
Finding 479360 (2023-002)
Significant Deficiency 2023
Preparation of Financial Statements and Related Footnotes
Preparation of Financial Statements and Related Footnotes
Finding 479360 (2023-002)
Significant Deficiency 2023
Recommendation: This control deficiency is not unusual in a small city. However, it is the responsibility of management and the Council to decide whether to accept the degree of risk associated with this condition based on the cost of correction and other considerations.
Recommendation: This control deficiency is not unusual in a small city. However, it is the responsibility of management and the Council to decide whether to accept the degree of risk associated with this condition based on the cost of correction and other considerations.
Finding 479360 (2023-002)
Significant Deficiency 2023
Management’s Response and Actions Planned: The City’s management is aware of this significant deficiency. Management reviews and approves the draft annual audited financial statements and distributes them to the users. For entities of this size, it generally is not practical to obtain the internal e...
Management’s Response and Actions Planned: The City’s management is aware of this significant deficiency. Management reviews and approves the draft annual audited financial statements and distributes them to the users. For entities of this size, it generally is not practical to obtain the internal expertise needed to handle all aspects of the external financial reporting. Management recognizes this and feels it is effectively handling its reporting responsibilities with the procedures described above.
COIVD-19: Coronavirus State and Local Fiscal Recovery – Assistance Listing No. 21.027 Recommendation: We recommend that the Organization consider implementing a process that documents review and approval of submitted indirect cost claims by someone other than the preparer of such claims. Documentat...
COIVD-19: Coronavirus State and Local Fiscal Recovery – Assistance Listing No. 21.027 Recommendation: We recommend that the Organization consider implementing a process that documents review and approval of submitted indirect cost claims by someone other than the preparer of such claims. Documentation of contemporaneous review should also be maintained. Explanation of disagreement with audit finding: There is no disagreement with this finding. Action taken in response to finding: The organization will review this finding and current methodology and propose corrections as part of a broader review of its technologies. Name of the contact person responsible for corrective action: Silvia Zelaya, Finance Director Planned completion date for corrective action plan: January 2025
Legal Services Corporation Grants – Assistance Listing No. 09.706060 Recommendation: We recommend that the Organization review its case file review internal controls to ensure that they are designed in a manner to detect and prevent noncompliance with this requirement. Explanation of disagreement ...
Legal Services Corporation Grants – Assistance Listing No. 09.706060 Recommendation: We recommend that the Organization review its case file review internal controls to ensure that they are designed in a manner to detect and prevent noncompliance with this requirement. Explanation of disagreement with audit finding: There is no disagreement with this finding. Action taken in response to finding: The Organization has robust training for case handlers around when a retainer is required. The Organization will keep these measures in place and also plan to provide additional training for all case handlers on our case handler standards, which we will make sure also covers retainer agreements and managers’ review of case files. Name of the contact person responsible for corrective action: Silvia Zelaya, Finance Director Planned completion date for corrective action plan: January 2025
Legal Services Corporation Grants – Assistance Listing No. 09.706060 Recommendation: We recommend that the Organization consider updating its employee benefit cost allocation methodology and process to reduce the frequency of manual adjustments based on review of expense data and maximize the use o...
Legal Services Corporation Grants – Assistance Listing No. 09.706060 Recommendation: We recommend that the Organization consider updating its employee benefit cost allocation methodology and process to reduce the frequency of manual adjustments based on review of expense data and maximize the use of automated allocations that are calculated in a consistent manner that ensure costs are applied uniformly to respective benefited activities. Explanation of disagreement with audit finding: There is no disagreement with this finding. Action taken in response to finding: The Organization will review this finding and current methodology and propose corrections as part of a broader review of its technologies. Name of the contact person responsible for corrective action: Silvia Zelaya, Finance Director Planned completion date for corrective action plan: January 2025
Finding Number: 2023-002 Finding Title: Child Support Non-Cooperation Program: 93.558 Temporary Assistance for Needy Families Name of Contact Person Responsible for Corrective Action: DeAnn Boney, Income and Healthcare Assistance Manager Corrective Action Planned: The agency will take the following ...
Finding Number: 2023-002 Finding Title: Child Support Non-Cooperation Program: 93.558 Temporary Assistance for Needy Families Name of Contact Person Responsible for Corrective Action: DeAnn Boney, Income and Healthcare Assistance Manager Corrective Action Planned: The agency will take the following steps to come into compliance: 1 Correct the cases that were found to be in error. 2 Establish an internal case review process. 3 Provide training and review the policy areas where deficiencies were identified with the family team. 4 Require family team to take new DHS training on assets. 5 Use DHS TANF case reviews as learning tools and share results with the family team. Anticipated Completion Date: Cases will be corrected, and the review process will be in place by 7/31/2024
Finding Number: 2023-001 Finding Title: Eligibility Program: 93.558 Temporary Assistance for Needy Families Name of Contact Person Responsible for Corrective Action: DeAnn Boney, Income and Healthcare Assistance Manager Corrective Action Planned: The agency will take the following steps to come into...
Finding Number: 2023-001 Finding Title: Eligibility Program: 93.558 Temporary Assistance for Needy Families Name of Contact Person Responsible for Corrective Action: DeAnn Boney, Income and Healthcare Assistance Manager Corrective Action Planned: The agency will take the following steps to come into compliance: 1. Correct the cases that were found to be in error. 2. Establish an internal case review process. 3. Provide training and review the policy areas where deficiencies were identified with the family team. 4. Require family team to take new DHS training on assets. 5. Use DHS TANF case reviews as learning tools and share results with the family team. Anticipated Completion Date: Cases will be corrected, and the review process will be in place by 7/31/2024.
Management has prepared an outstanding Replacement Reserve Deposit worksheet and this tool will be used to track monthly deposits into the Replacement Reserve Account. Deposits will begin in June 2024 and older outstanding balances will be paid first. On a go forward basis, St. Cat's will make at le...
Management has prepared an outstanding Replacement Reserve Deposit worksheet and this tool will be used to track monthly deposits into the Replacement Reserve Account. Deposits will begin in June 2024 and older outstanding balances will be paid first. On a go forward basis, St. Cat's will make at least one monthly deposit into the Replacement Reserve, and depending on cash flow will strive to make additional monthly deposits to lower the total amount outstanding.
Management has prepared an outstanding Replacement Reserve Deposit worksheet and this tool will be used to track monthly deposits into the Replacement Reserve Account. Deposits will begin in June 2024 and older outstanding balances will be paid first. On a go forward basis, St. Ann's will make at le...
Management has prepared an outstanding Replacement Reserve Deposit worksheet and this tool will be used to track monthly deposits into the Replacement Reserve Account. Deposits will begin in June 2024 and older outstanding balances will be paid first. On a go forward basis, St. Ann's will make at least one monthly deposit into the Replacement Reserve, and depending on cash flow will strive to make additional monthly deposits to lower the total amount outstanding.
Finding 479184 (2023-001)
Significant Deficiency 2023
Finding 2023-001 Internal Control Over Allowable Costs/Activities Name of Contact Person: Joy Stein, Chief Financial Officer Corrective Action Plan: An error occurred when a workaround in the workflow approval process caused a raise to be missed for one employee. A Compensation Change form was re-...
Finding 2023-001 Internal Control Over Allowable Costs/Activities Name of Contact Person: Joy Stein, Chief Financial Officer Corrective Action Plan: An error occurred when a workaround in the workflow approval process caused a raise to be missed for one employee. A Compensation Change form was re-routed from the customary workflow established in the BambooHR system because an approver was out on Paid Time Off (PTO). The workaround removed the change from reflecting on the Bamboo reports used during the processing payroll. The result was that the pay raise was missed, and the employee was underpaid until the time of audit and test sample review. A telephone meeting was held the afternoon of March 27, 2024, with the CFO, CHRO, and Payroll Specialist. It was identified that when the workflow is worked-around the change does not appear on the Bamboo change report. Therefore, it was decided that the best practice will be to use an alternate approver which is the Senior Accountant at present. If this position is vacant or not available, then the workflow will remain intact. If items are urgent and cannot wait, HR will contact the approver via telephone and request the item to be processed. Proposed Completion Date: March 27, 2024, action was completed. Corrective action was identified and completed on same day the error was identified.
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