Corrective Action Plans

Finding 390121 (2023-003)

Significant Deficiency 2023

KS

HUD Housing Programs Significant Deficiency Internal Control / Segregation of Duties

March 26, 2024 HUD Service Audit Director Kansas City, Kansas Integrated Living, Inc. respectfully submits the following corrective action plan for the year ended June 30, 2023. SSC CPAs, P.A. 58525 SW 29th St, Suite 100 Topeka, Kansas 66614 Audit period: Year ended June 30, 2023 The findings ...

March 26, 2024 HUD Service Audit Director Kansas City, Kansas Integrated Living, Inc. respectfully submits the following corrective action plan for the year ended June 30, 2023. SSC CPAs, P.A. 58525 SW 29th St, Suite 100 Topeka, Kansas 66614 Audit period: Year ended June 30, 2023 The findings from the June 30, 2023 schedule of findings and questioned costs are discussed below. The findings are numbered consistently with the numbers assigned in the schedule. Section I of the schedule, Summary of Audit Results, does not include findings and is not addressed. FINDINGS-FINANCIAL STATEMENT AUDIT 2023‐001 Internal Controls over Financial Statement Presentation (Material Weakness) Recommendation: The Board of Directors and management should review the impact of the current year adjustments on the financial reporting process. Once this review is complete, the Organization should then perform a risk assessment to determine the best way to implement appropriate internal controls over financial reporting to ensure conformity with U.S. GAAP. Action Taken (Unaudited): Management is in the process of updating its control procedures to include proper written policies for the internal control over financial reporting to ensure conformity with U.S. GAAP. John Griffin, CFO of COF Training Services, Inc. (Management Agent of Integrated Living, Inc.) is responsible for this corrective action. Anticipated completion date is June 30, 2024. FINDINGS-FEDERAL AWARD PROGRAMS AUDITS 2023‐002 Review and Approval of Project Expenditures (Significant Deficiency) Department of Housing and Urban Development Section 811 Supportive Housing for Person with Disabilities, Assistance Listing Number 14.181 Recommendation: The Organization should obtain proper approval of all project expenditures and that evidence of that approval is documented and maintained.. Action Taken (Unaudited): Management is in the process of updating its control procedures to ensure proper approval of all project expenditures. John Griffin, CFO of COF Training Services, Inc. (Management Agent of Integrated Living, Inc.) is responsible for this corrective action. Anticipated completion date is June 30, 2024. 2023‐003 Written Procedures of Internal Control over Compliance (Significant Deficiency) Department of Housing and Urban Development Section 811 Supportive Housing for Person with Disabilities, Assistance Listing Number 14.181 Recommendation: The Organization should develop written policies for the internal control over compliance of federal awards. Action Taken (Unaudited): Management is in the process of updating its control procedures to include proper written policies for the internal control over compliance of federal awards John Griffin, CFO of COF Training Services, Inc. (Management Agent of Integrated Living, Inc.) is responsible for this corrective action. Anticipated completion date is June 30, 2024. If HUD has questions regarding this plan, please call Patrick Gardner at 785-242-5035. Sincerely yours, Patrick Gardner CEO, COF Training Services, Inc. (Management Agent of Integrated Living, Inc.)

View Audit 301005

Finding 390120 (2023-002)

Significant Deficiency 2023

Integrated Living, Inc.

KS

HUD Housing Programs Significant Deficiency Internal Control / Segregation of Duties

March 26, 2024 HUD Service Audit Director Kansas City, Kansas Integrated Living, Inc. respectfully submits the following corrective action plan for the year ended June 30, 2023. SSC CPAs, P.A. 58525 SW 29th St, Suite 100 Topeka, Kansas 66614 Audit period: Year ended June 30, 2023 The findings ...

March 26, 2024 HUD Service Audit Director Kansas City, Kansas Integrated Living, Inc. respectfully submits the following corrective action plan for the year ended June 30, 2023. SSC CPAs, P.A. 58525 SW 29th St, Suite 100 Topeka, Kansas 66614 Audit period: Year ended June 30, 2023 The findings from the June 30, 2023 schedule of findings and questioned costs are discussed below. The findings are numbered consistently with the numbers assigned in the schedule. Section I of the schedule, Summary of Audit Results, does not include findings and is not addressed. FINDINGS-FINANCIAL STATEMENT AUDIT 2023‐001 Internal Controls over Financial Statement Presentation (Material Weakness) Recommendation: The Board of Directors and management should review the impact of the current year adjustments on the financial reporting process. Once this review is complete, the Organization should then perform a risk assessment to determine the best way to implement appropriate internal controls over financial reporting to ensure conformity with U.S. GAAP. Action Taken (Unaudited): Management is in the process of updating its control procedures to include proper written policies for the internal control over financial reporting to ensure conformity with U.S. GAAP. John Griffin, CFO of COF Training Services, Inc. (Management Agent of Integrated Living, Inc.) is responsible for this corrective action. Anticipated completion date is June 30, 2024. FINDINGS-FEDERAL AWARD PROGRAMS AUDITS 2023‐002 Review and Approval of Project Expenditures (Significant Deficiency) Department of Housing and Urban Development Section 811 Supportive Housing for Person with Disabilities, Assistance Listing Number 14.181 Recommendation: The Organization should obtain proper approval of all project expenditures and that evidence of that approval is documented and maintained.. Action Taken (Unaudited): Management is in the process of updating its control procedures to ensure proper approval of all project expenditures. John Griffin, CFO of COF Training Services, Inc. (Management Agent of Integrated Living, Inc.) is responsible for this corrective action. Anticipated completion date is June 30, 2024. 2023‐003 Written Procedures of Internal Control over Compliance (Significant Deficiency) Department of Housing and Urban Development Section 811 Supportive Housing for Person with Disabilities, Assistance Listing Number 14.181 Recommendation: The Organization should develop written policies for the internal control over compliance of federal awards. Action Taken (Unaudited): Management is in the process of updating its control procedures to include proper written policies for the internal control over compliance of federal awards John Griffin, CFO of COF Training Services, Inc. (Management Agent of Integrated Living, Inc.) is responsible for this corrective action. Anticipated completion date is June 30, 2024. If HUD has questions regarding this plan, please call Patrick Gardner at 785-242-5035. Sincerely yours, Patrick Gardner CEO, COF Training Services, Inc. (Management Agent of Integrated Living, Inc.)

View Audit 301005

Finding 390109 (2023-001)

Significant Deficiency 2023

City of San Diego

CA

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

Reference Number: 2023-001 Audit Finding: Other Compliance Corrective Action: The Public Utilities Department has re-evaluated the internal procedures and practices of maintaining compliance documentation. Third party vendors will no longer serve as an archive for notification documentation. All not...

Reference Number: 2023-001 Audit Finding: Other Compliance Corrective Action: The Public Utilities Department has re-evaluated the internal procedures and practices of maintaining compliance documentation. Third party vendors will no longer serve as an archive for notification documentation. All notification receipts and various forms of verification will be saved in house, on the City of San Diego’s network. This corrective action was set in place as of March 28, 2023, based on findings from the water arrearages program audit. The sewer arrearages program was also completed prior to the original corrective action plan date of March 28, 2023. This was the same finding for both the water and sewer arrearage program audits. Moving forward with this action on a continual basis, once email notifications are sent to customers using an external service provider, notification confirmations will be immediately archived at the City of San Diego. The acknowledgement must state that the credited amount is being provided through funding from the State Water Resources Control Board using federal American Rescue Plan Act (ARPA) funds. This affords the City full control and oversight of the verification process for all future noticing. All available notification verifications from the third-party vendor will be downloaded and saved to the City network for future inquiries. Furthermore, internal controls will be enhanced to ensure notification verification compliance. Upon notification to customers, the Billing and Financial Analytics Program Coordinator will oversee the immediate archiving of all confirmations of emails sent to customers using an external service provider. Once complete, the Billing and Financial Analytics Program Coordinator will notify the Program Manager, who will in turn, perform a secondary review of all notifications against the verification documentation to ensure accuracy. At this point, a third level of approval will be added, as the Public Utilities Customer Support Deputy Director will provide a final level review. Once complete, these documents will be saved for a minimum of five years, per the City of San Diego’s retention policy. Implementation Date: 03/28/2023 Contact: Tracy Morales Interim Deputy Director

View Audit 300999

Finding 390058 (2023-001)

Significant Deficiency 2023

Williams Unified School District No. 2

AZ

Questioned Costs Reporting Significant Deficiency

Finding Number: 2023‐001 Program Name/Assistance Listing Title: Education Stabilization Fund Assistance Listing Number: 84.425 Contact Person: Brianne Ford, Business Manager Anticipated Completion Date: March 25, 2024 Planned Corrective Action: The District will monitor and ensure amounts expended a...

Finding Number: 2023‐001 Program Name/Assistance Listing Title: Education Stabilization Fund Assistance Listing Number: 84.425 Contact Person: Brianne Ford, Business Manager Anticipated Completion Date: March 25, 2024 Planned Corrective Action: The District will monitor and ensure amounts expended and reported from the ESSER I, II, & III grants agree to the District's accounting records. The Business Manager and Federal Programs Director will work hand in hand to ensure expended funds are reported accurately.

View Audit 300917

Finding 389982 (2023-001)

Significant Deficiency 2023

Washington Adventist University

MD

Questioned Costs Student Financial Aid Special Tests & Provisions

We recently completed the transition and onboarding of departmental staff which would allow the University to fully enact its plan to ensure both the financial aid and the Registrar's office will perform prompt review of processing University withdrawals. The Registrar's office will develop process ...

We recently completed the transition and onboarding of departmental staff which would allow the University to fully enact its plan to ensure both the financial aid and the Registrar's office will perform prompt review of processing University withdrawals. The Registrar's office will develop process and procedures documentation as an internal control measuring tool to ensure that Administrative Withdrawals (AW) and Withdrawals for lack of attendance (WA) that affect student emollment are identified immediately. Staff in the Financial Aid and the Registrar's office will actively take part in training workshops and webinars provided by the Depatiment of Education and NASF AA for continuing education to stay abreast of new developments and best practices in the industry.

View Audit 300889 Questioned Costs: $1

Finding 389946 (2023-002)

Significant Deficiency 2023

Housing Authority of the City of Miami Beach

FL

HUD Housing Programs Subrecipient Monitoring Significant Deficiency

Recommendation: The Authority should designate an individual to review tenant files to determine if a rent reasonableness has been performed. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: The HACMB currently ha...

Recommendation: The Authority should designate an individual to review tenant files to determine if a rent reasonableness has been performed. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: The HACMB currently has a Quality Control Coordinator who is designated to review samples of tenant files to ensure compliance. The HACMB has reviewed its Quality Control process for areas of improvement; (1) The Quality Control Coordinator will increase the number of file samples that are undergoing the Quality Control process. (2) The Quality Control Coordinator will hold bimonthly reviews with the specialists to ensure the same standard processes are being followed and to focus on retaining the supporting document in the files. The Section 8 staff will be notified of the appropriate action to take regarding any finding in the files. Name(s) of the contact person(s) responsible for corrective action: Suzie Millien Director of Section 8-HCV Planned completion date for corrective action plan: 3/31/2024.

View Audit 300848

Finding 389943 (2023-001)

Significant Deficiency 2023

Housing Authority of the City of Miami Beach

FL

Questioned Costs HUD Housing Programs Subrecipient Monitoring

Recommendation: The Authority should designate an individual to review tenant files to ensure that the income reported on the HUD-50058 is supported with proper calculations. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response t...

Recommendation: The Authority should designate an individual to review tenant files to ensure that the income reported on the HUD-50058 is supported with proper calculations. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: The HACMB currently has a Quality Control Coordinator who is designated to review samples of tenant files to ensure compliance. The HACMB has reviewed its Quality Control process for areas of improvement; (1) The Quality Control Coordinator will increase the number of file samples that are undergoing the Quality Control process. (2) The Quality Control Coordinator will hold bimonthly reviews with the specialists to ensure the same standard processes are being followed and to focus on each targeted area that needs assistance the most. The Section 8 staff will be notified of the appropriate action to take regarding any finding in the files. Name(s) of the contact person(s) responsible for corrective action: Suzie Millien, Director of Section 8-HCV. Planned completion date for corrective action plan: 3/31/2024.

View Audit 300848 Questioned Costs: $1

Finding 389899 (2023-003)

Significant Deficiency 2023

Wide Ruins Community School

AZ

Special Tests & Provisions Questioned Costs Significant Deficiency

Finding Number: 2023‐003 Program Name/Assistance Listing Title: Indian School Equalization Assistance Listing Number: 15.042 Contact Person: : Aurelia Tapaha, Business Manager/Human Resources Manager; Parthenia Tom, Payroll Technician Anticipated Completion Date: July 2024 Planned Corrective Action:...

Finding Number: 2023‐003 Program Name/Assistance Listing Title: Indian School Equalization Assistance Listing Number: 15.042 Contact Person: : Aurelia Tapaha, Business Manager/Human Resources Manager; Parthenia Tom, Payroll Technician Anticipated Completion Date: July 2024 Planned Corrective Action: The School will conduct background investigations as soon as consent is signed by applicant or employee. Prioritization of background completion will be done in accordance with personnel policies and procedures.

View Audit 300789

Finding 389891 (2023-002)

Significant Deficiency 2023

Pennsylvania College of Art & Design

PA

Questioned Costs Significant Deficiency

Finding_ 2023-002 Recommendation: The college should take action steps to bring all regulated elements of the information security programs into compliance and documenting such procedures. Corrective Action: The college will facilitate both internal and external measures to comply with the standards...

Finding_ 2023-002 Recommendation: The college should take action steps to bring all regulated elements of the information security programs into compliance and documenting such procedures. Corrective Action: The college will facilitate both internal and external measures to comply with the standards to safeguard customer and student information. Person Responsible for Corrective Action: Michael Molla, President Anticipated Completion Date for Corrective Action: The Corrective Action will be immediately addressed with both internal and external resources deployed to achieve required compliance with safeguarding information and data security. These measures will be implemented prior to the June 30,2024 year end.

View Audit 300776

Finding 389879 (2023-003)

Significant Deficiency 2023

Tusculum University

TN

Student Financial Aid Reporting Significant Deficiency

2023-003 Significant Deficiency: National Student Loan Data System (NSLDS) Report (U.S. Department of Education, William D. Ford Direct Loan Program, ALN #84.268 and Federal Pell Grant Program, ALN #84.063) (Repeat finding of 2022-001) Name of Contact Person Casey Reagan, Registrar, is responsible ...

2023-003 Significant Deficiency: National Student Loan Data System (NSLDS) Report (U.S. Department of Education, William D. Ford Direct Loan Program, ALN #84.268 and Federal Pell Grant Program, ALN #84.063) (Repeat finding of 2022-001) Name of Contact Person Casey Reagan, Registrar, is responsible for ensuring student enrollment status for changes in enrollment are correct. Melissa White, Director of Financial Aid, is responsible for uploading the enrollment status reports to clearinghouse. Corrective Action Planned During the audit, it was noted that Tusculum reported student enrollment status at changes in enrollment incorrectly. The Registrar and the Director of Financial Aid will work in conjecture to determine why the report that is pulled to upload to clearinghouse is not pulling accurate student enrollment status changes in enrollment. Once the error is identified and fixed, financial aid will pull the report and check to ensure everything is pulling correctly. Then, each month as the report is pulled, a random sampling of students will be pulled out of the report to be checked against the enrollment records to ensure that the report continues to pull correctly. Anticipated Completion Date The Registrar and Director of Financial Aid still needs to identify where the error is occurring. It is the goal to have this issue resolved before the end of the spring 2024 semester.

View Audit 300763

Finding 389858 (2023-002)

Significant Deficiency 2023

Sunnycrest Village Project LLC

SD

HUD Housing Programs Internal Control / Segregation of Duties Questioned Costs

Federal Agency Name: U.S. Department of Housing and Urban Development Program Name: Mortgage Insurance Rental Housing Federal Financial Assistance Listing: #14.134 Finding Summary: Testing performed by the auditors relating to testing of property, operations, and distributions detected one instance...

Federal Agency Name: U.S. Department of Housing and Urban Development Program Name: Mortgage Insurance Rental Housing Federal Financial Assistance Listing: #14.134 Finding Summary: Testing performed by the auditors relating to testing of property, operations, and distributions detected one instance where a disbursement of Project funds was not supported with a detailed receipt. Responsible Individuals: Sue Lund, Administrator Corrective Action Plan: The Project will implement new form for invoice approval completion which includes ensuring proper documentation is obtained and retained before disbursement of funds occurs. Anticipated Completion Date: May 31, 2024

View Audit 300735 Questioned Costs: $1

Finding 389854 (2023-002)

Significant Deficiency 2023

Barrett Foundation

NM

Special Tests & Provisions Questioned Costs Significant Deficiency

Funding Agency: Title: Assistance Listing Number: Compliance Requirement: Award Year: Housing and Urban Development Continuum of Care 14.267 Special Tests and Provisions July I, 2022 to June 30, 2023 Condition: During our audit, we noted that Barrett Foundation had one of three tenants sampled who d...

Funding Agency: Title: Assistance Listing Number: Compliance Requirement: Award Year: Housing and Urban Development Continuum of Care 14.267 Special Tests and Provisions July I, 2022 to June 30, 2023 Condition: During our audit, we noted that Barrett Foundation had one of three tenants sampled who did not have evidence that the rent reasonableness form was reviewed or approved. Criteria: Barrett Foundation has a policy that its process over the rent reasonableness requirement is for one employee to fill out a rent reasonableness form and the supervisor to review and approve it before any rent payments are made on behalf of the client. Effect: Barrett Foundation did not have evidence that it followed its policy over the rent reasonableness requirement. Questioned Costs: None Cause: Barrett Foundation did not file the signed version of the rent reasonableness form and only had the unsigned version to show for the audit. This was due to turnover and certain documents not being filed correctly. Auditors' Recommendation: We recommend that Barrett Foundation ensure that all signed documents are scanned into the Foundation's server to show evidence that all policies and procedures were followed. Management's Response: In FY23, Barrett Foundation experienced significant staffing shortages which resulted is Rent Reasonableness forms not being reviewed or signed. During FY24, Barrett Foundation audited all case files to address incomplete documentation. We also updated our standard operating procedures to indicate that rent reasonableness forms are completed annually as well as when a participant enters the programs, moves to a different unit, if there is a rent increase and that supervisors review and sign the form. Additionally, supervisors will begin conducting monthly random audits of client files to ensure that all required documentation is completed.

View Audit 300728

Finding 389851 (2023-001)

Significant Deficiency 2023

Barrett Foundation

NM

Questioned Costs Significant Deficiency Matching / Level of Effort / Earmarking

FINDING NUMBER I: 2023-001-Compliancc over Matching-(Significant Deficiency) Federal Program Information: Funding Agency: Title: Assistance Listing Number: Compliance Requirement: Award Year: Housing and Urban Development Continuum of Care 14.267 Matching July 1, 2022 to June 30, 2023 Condition: Dur...

FINDING NUMBER I: 2023-001-Compliancc over Matching-(Significant Deficiency) Federal Program Information: Funding Agency: Title: Assistance Listing Number: Compliance Requirement: Award Year: Housing and Urban Development Continuum of Care 14.267 Matching July 1, 2022 to June 30, 2023 Condition: During our audit, we noted that Barrett Foundation only matched 7 .34% of the total applicable expenses for the year which was less than the required 25%. Criteria: Barrett Foundation must match all applicable grant funds, with no less than 25 percent of cash or in-kind contributions from other sources (24 CFR section 578.73(a)). Effect: Barrett Foundation under matched the required amount for the Continuum of Care program. Questioned Costs: None Cause: Barrett Foundation did not establish a sufficient system of internal control to ensure that they were in compliance with the required match for the fiscal year. Auditors' Recommendation: We recommend that Barrett Foundation establish a system of internal controls to ensure that they provide at least 25% of both cash and in-kind contributions for all applicable programs under the Continuum of Care program. Management's Response: In FY23, Barrett Foundation transitioned from in-house financial services to an outside accounting firm. The transition allowed Barrett Foundation to create an internal structure to meet the needs of new programs. We recognize that while progress has been made, some issues continue to need attention. We arc working diligently with our community partners to meet their matching requirements and expect to not experience this issue in FY24. Additionally, we arc currently updating Barrett Foundation's Finance Policies in which we arc establishing policies to address contracts that require match.

View Audit 300728

Finding 389810 (2023-002)

Significant Deficiency 2023

The Cleveland Play House

OH

Allowable Costs / Cost Principles Questioned Costs Cash Management § 200.302 § 200.403 § 200.430

Finding Number: 2023-002 Planned Corrective Action: Cleveland Play House had extensive turnover during the 2022 and 2023 fiscal years which resulted in several vacancies, including the Director of Finance position, for a significant portion of the year. As a result, many of the reports that are stan...

Finding Number: 2023-002 Planned Corrective Action: Cleveland Play House had extensive turnover during the 2022 and 2023 fiscal years which resulted in several vacancies, including the Director of Finance position, for a significant portion of the year. As a result, many of the reports that are standard practice in our organization were not being completed. In addition, the filing of certain documentation to support expenditures was not being done consistently. The Director of Finance position was not filled until November 2022. As a result, documentation of allowable expenditures is being addressed for the fiscal 2023 audit. In addition to turnover, the organization transitioned to a new general ledger system with a new chart of accounts in fiscal year 2022. As a result of this transition and the vacancies mentioned above, certain data pertaining to the federal programs was not being captured. Management has informed all staff of the requirements to track federal programs within the general ledger accounts. Anticipated Completion Date: September 30, 2024 Responsible Contact Person: Erica Tkachyk, Director of Finance

View Audit 300711 Questioned Costs: $1

Finding 389809 (2023-001)

Significant Deficiency 2023

City of Naples Airport Authority

FL

Cash Management Matching / Level of Effort / Earmarking Questioned Costs § 200.306

Views of responsible officials and planned corrective action: The Authority acknowledges that this error occurred. When we identified this issue, we contacted the grantor agency for guidance. They explained how to submit a refund and acknowledged that since the grant was still open, we had the ab...

Views of responsible officials and planned corrective action: The Authority acknowledges that this error occurred. When we identified this issue, we contacted the grantor agency for guidance. They explained how to submit a refund and acknowledged that since the grant was still open, we had the ability to correct an incorrect draw. This refund has been processed and the Authority has put additional internal controls in place to ensure the proper match is calculated for each grant draw in the future. Additionally, upon final grant closeout, all the numbers are verified and reconciled back to the grant agreement, including the match.

View Audit 300702

Finding 389780 (2023-003)

Significant Deficiency 2023

Antioch College Corporation

OH

Significant Deficiency

Finding 2023-003 - Significant Deficiency - Gramm-Leach Bliley Act (GLBA) - Student Information Security Condition Found The College did not implement the GLBA policy. Corrective Action Plan The College will create and adopt the GLBA policy under the leadership of the new Director of Financial Aid. ...

Finding 2023-003 - Significant Deficiency - Gramm-Leach Bliley Act (GLBA) - Student Information Security Condition Found The College did not implement the GLBA policy. Corrective Action Plan The College will create and adopt the GLBA policy under the leadership of the new Director of Financial Aid. The Director of Financial Aid will monitor new and updated regulations, such as the GLBA policy, to ensure future compliance. Responsible Person for Corrective Action Plan Alina Olson, Director of Financial Aid

View Audit 300675

Finding 389776 (2023-002)

Significant Deficiency 2023

Options Charter School

IN

Procurement, Suspension & Debarment Significant Deficiency § 200.318

Recommendation: We recommend that the School review their Procurement policy and ensure that all missing federal requirements are included in their written policies. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: ...

Recommendation: We recommend that the School review their Procurement policy and ensure that all missing federal requirements are included in their written policies. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: Options Schools, Inc. will update the Procurement policy to include federal requirements. Name(s) of the contact person(s) responsible for corrective action: Jack Colwell Planned completion date for corrective action plan: July 1, 2023 If the U.S. Department of Education has questions regarding this plan, please call Jack Colwell, CFO at 463-238-1414. 18077 River Road, Suite 106 I Noblesville, IN 46062 I phone: 317.565.4350 www.optionsschools.

View Audit 300666

Finding 389765 (2023-002)

Significant Deficiency 2023

Homeward Bound of Western North Carolina, Inc.

NC

Cash Management Significant Deficiency

Name of Contact Person: Suzy Johnson, Director of Finance & Operations Corrective Action: All grant billing projection sheets will be completed on a monthly basis and given to the appropriate program director for review and approval before any grant draws are initiated. Completion Date: On or by ...

Name of Contact Person: Suzy Johnson, Director of Finance & Operations Corrective Action: All grant billing projection sheets will be completed on a monthly basis and given to the appropriate program director for review and approval before any grant draws are initiated. Completion Date: On or by June 30, 2024

View Audit 300656

Finding 389740 (2023-004)

Significant Deficiency 2023

City of Waltham, Massachusetts

MA

Equipment & Real Property Management Procurement, Suspension & Debarment Significant Deficiency § 200.313

DEA Asset Forfeitures – Assistance Listing No. 16.922 Recommendation: Procedures should be updated to ensure all assets purchased with federal funds go through a physical inventory count every 2 years. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. A...

DEA Asset Forfeitures – Assistance Listing No. 16.922 Recommendation: Procedures should be updated to ensure all assets purchased with federal funds go through a physical inventory count every 2 years. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: The Waltham Police Department Policy Chapter 17 – Fiscal Management – has been updated/amended adding a stand-alone paragraph mandating a physical annual audit of any assets purchased with federal funding. Name(s) of the contact person(s) responsible for corrective action: Deputy Police Chief Steven R. Champeon Planned completion date for corrective action plan: On or about April 5, 2024, the policy should be finalized and distributed department wide.

View Audit 300631

Finding 389728 (2023-002)

Significant Deficiency 2023

City of Waltham, Massachusetts

MA

Allowable Costs / Cost Principles Questioned Costs Significant Deficiency

Special Education Cluster – Assistance Listing No. 84.IDEA Recommendation: We recommend management implement procedures to ensure that salaries charged to the grant are appropriate and are supported by the required time and effort support and that a consistent policy is applied. Explanation of disag...

Special Education Cluster – Assistance Listing No. 84.IDEA Recommendation: We recommend management implement procedures to ensure that salaries charged to the grant are appropriate and are supported by the required time and effort support and that a consistent policy is applied. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: Moving forward all Time & Efforts Records for federal grant funded positions will be on a single schedule (December and June) of each calendar year and tracked by each program department with support from administrative assistants. All forms will be collected electronically and remain on file in one central location in the Finance Department through Grants. Name(s) of the contact person(s) responsible for corrective action: Shelly Chin – Administrator of Communications, Grants, Partnerships & Strategy Planned completion date for corrective action plan: This will be an ongoing procedure that will be implemented immediately.

View Audit 300631 Questioned Costs: $1

Finding 389726 (2023-001)

Significant Deficiency 2023

City of Waltham, Massachusetts

MA

Reporting Allowable Costs / Cost Principles Significant Deficiency

Community Development Block Grant – Assistance Listing No. 14.218 Recommendation: Procedures should be updated to review and ensure the accuracy of the financial amounts reported the in the IDIS system. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. ...

Community Development Block Grant – Assistance Listing No. 14.218 Recommendation: Procedures should be updated to review and ensure the accuracy of the financial amounts reported the in the IDIS system. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: We have had this issue with the IDIS System in the past and have worked with HUD to correct it. We have reached out to HUD and will work with them again to rectify this issue. Name(s) of the contact person(s) responsible for corrective action: Robert Waters Planned completion date for corrective action plan: ASAP

View Audit 300631

Finding 389698 (2023-001)

Significant Deficiency 2023

New Jersey Association on Correction and Morrow Holding Corporation

NJ

Reporting Significant Deficiency

The Organization plans to reorganize job duties and increase staff in the finance department to assist in the preparation of quarterly fiscal and programmatic reports to file on a timely basis. This was a result of staff turnover which created delays in filing complete and accurate reports.

View Audit 300616

Finding 389696 (2023-001)

Significant Deficiency 2023

Mental Health & Addiction Association of Oregon

OR

Questioned Costs Significant Deficiency § 200.512

1.) Finding 2023-001 Data Collection Form Submission Delay a. Program Information: N/A b. Criteria: Per 2 CFR 200.512(a)(1), the audit package and the data collection form shall be submitted 30 days after receipt of the auditor's report(s), or 9 months after the end of the fiscal year whichever come...

1.) Finding 2023-001 Data Collection Form Submission Delay a. Program Information: N/A b. Criteria: Per 2 CFR 200.512(a)(1), the audit package and the data collection form shall be submitted 30 days after receipt of the auditor's report(s), or 9 months after the end of the fiscal year whichever comes first. c. Condition: For the year ended June 30, 2021, the audit package and data collection form was not submitted within the required timeline. Response: Explanation: The delay in submitting our annual audited financial statements was due to significant transitions within the MHAAO finance team. In the first half of FY23, we faced the departure of our contract accountant and then Finance Director, leaving substantial parts of the audit work incomplete. With only one staff accountant, we faced challenges in making progress on audit deliverables. After my appointment as the new Finance Director in February 2023, we encountered further delays due to our previous audit partner's scheduling difficulties. This led us to engage with Aldrich Advisors, who committed to completing the FY22 audit for us within the calendar year 2023. Corrective Action: To address the lack of capacity on the MHAAO finance team, we successfully hired three new positions by the beginning of FY24: a Payroll Specialist, Accounts Payable Specialist, and an experienced Accounting Manager. We also recently promoted our Staff Accountant to a Senior Financial Analyst role, in charge of grants, contracts and compliance. We now have a strong and capable team to strengthen our internal financial processes and implement best practices in nonprofit financial management. To address this finding comprehensively, we have also implemented a new policy with two key components: - A centralized tracking system for reporting deadlines, maintained by myself, our Accounting Manager, and our Senior Financial Analyst. - Enhanced communication protocols for required submissions, including immediate communication with our audit team and funding partners in case of potential delays. Future Measures: Integration of these measures into our internal financial management policies and procedures, ensuring consistent application and preventing future delays. Contact person responsible for corrective action: John Domingo, Finance & IT Director Completion date: 10/17/2023

View Audit 300610

Finding 389692 (2023-003)

Significant Deficiency 2023

Grossmont-Cuyamaca Community College District

CA

Special Tests & Provisions Questioned Costs Student Financial Aid

Two staff members were assigned the responsibility and access to EDExpress, which allows the college to send and receive files (including ISIRs) between college and federal databases. Both employees were placed on immediate and unanticipated leave in March 2023, leaving interim staff without the acc...

Two staff members were assigned the responsibility and access to EDExpress, which allows the college to send and receive files (including ISIRs) between college and federal databases. Both employees were placed on immediate and unanticipated leave in March 2023, leaving interim staff without the access or authority to perform these functions. It took some time to update the school’s online access and we were instructed to start using a different software, EDconnect, since EDExpress was becoming obsolete. Administration rights and training were then given to interim staff on uploading ISIRs into the FA system (SAM), and written procedures were developed. In the case cited here, the student was paid just as the staffing and access issues occurred. Updated records were not downloaded until after access to EDconnect was implemented and staff received guidance on the correct procedure. Initially, the student’s file did not require verification prior to payment, but changes made to their FAFSA generated ISIR #2 which resulted in a new request for verification. This update was received late due to the access and software issue. Since that time, we have developed written procedures on this process and trained additional staff. We have also created a new awarding and disbursement process and timeline, including required reconciliation of COD authorizations versus student awards and disbursements. This ensures students are properly awarded and disbursed, and that records between the two systems match. Uploads and downloads are now performed multiple times per week to ensure records are frequently updated. In addition, the Financial Aid Office transition from the SAM to the Colleague Financial System will automate these functions to run daily, eliminating the need for manual uploads and downloads of data between the systems. Staff absences will no longer impact the timely updating of records.

View Audit 300598

Finding 389691 (2023-002)

Significant Deficiency 2023

Grossmont-Cuyamaca Community College District

CA

Student Financial Aid Special Tests & Provisions Internal Control / Segregation of Duties

Due to a sudden and unanticipated staffing shortage, R2T4 calculations were performed beyond the required timeframe. In the case where a student receives all F’s on their transcript, we cannot determine the students’ last date of attendance or academic activity, since F grades do not include this in...

Due to a sudden and unanticipated staffing shortage, R2T4 calculations were performed beyond the required timeframe. In the case where a student receives all F’s on their transcript, we cannot determine the students’ last date of attendance or academic activity, since F grades do not include this information (unlike W grades) and the college is a non-attendance taking institution. In this case, federal guidelines allows schools to use the midpoint of the payment period for the calculation. In these cases, all calculations would be based on the same date each term. In review of FA22 records, the calculations were performed in March 2023, but the withdrawal dates used to calculate eligibility were 10/21/22, the FA22 term midpoint. All policies and procedures relating to R2T4 processing have been reviewed and updated, and a review of all prior year calculations will be performed as well, to ensure compliance. Additional staff have been trained in the process, and calculations are being performed. Adequate and trained staff will ensure that all required calculations are performed accurately, and according to required timelines. In addition, the Financial Aid Office is transitioning from the SAM to the Colleague Financial Aid System (starting in 2024-25) which will provide a more automated and integrated process, with enhanced internal controls.

View Audit 300598

Corrective Action Plans

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