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SIGNIFICANT DEFICIENCY IN INTERNAL CONTROL OVER COMPLIANCE ? U.S. DEPARTMENT OF THE TREASURY, PASSED THROUGH MINNESOTA DEPARTMENT OF EDUCATION AND INDEPENDENT SCHOOL DISTRICT NO. 270, HOPKINS, COVID-19 ? CORONAVIRUS STATE AND LOCAL FISCAL RECOVERY FUNDS ? FEDERAL ALN 21.027 2022-003 Internal Contro...
SIGNIFICANT DEFICIENCY IN INTERNAL CONTROL OVER COMPLIANCE ? U.S. DEPARTMENT OF THE TREASURY, PASSED THROUGH MINNESOTA DEPARTMENT OF EDUCATION AND INDEPENDENT SCHOOL DISTRICT NO. 270, HOPKINS, COVID-19 ? CORONAVIRUS STATE AND LOCAL FISCAL RECOVERY FUNDS ? FEDERAL ALN 21.027 2022-003 Internal Control Over Compliance With Federal Suspension and Debarment Requirements Finding Summary 2 CFR ? 180 requires Independent School District No. 283 (the District) to establish and maintain effective internal control over compliance with requirements applicable to federal program expenditures, including suspension and debarment requirements. The District did not have sufficient controls in place within its COVID-19 ? Coronavirus State and Local Fiscal Recovery Funds federal programs to assure that it was not contracting for goods or services with parties that are suspended or debarred, or whose principals are suspended or debarred from participating in contracts involving the expenditures of federal program funds. Corrective Action Plan Actions Planned ? The District will review policies and procedures relating to suspension and debarment for its federal programs and will ensure that all parties with which it contracts for goods or services are eligible to participate in contracts involving the expenditures of federal program funding. Official Responsible ? Patricia Magnuson, Director of Business Services. Planned Completion Date ? June 30, 2023. Disagreement With or Explanation of Finding ? The District agrees with this finding. Plan to Monitor ? Patricia Magnuson, Director of Business Services, will assure appropriate controls are in place, and will review internal control procedures relating to suspension and debarment to ensure they are in line with the Uniform Guidance requirements.
Finding 45195 (2022-005)
Significant Deficiency 2022
2022-005 Higher Education Emergency Relief Funds (HEERF) Reporting Award Period: July 1, 2021 to June 30, 2022 Type of Finding: Significant Deficiency in Internal Control over Compliance; Other Matters Recommendation: We recommend the College establish controls to ensure accurate and timely reporti...
2022-005 Higher Education Emergency Relief Funds (HEERF) Reporting Award Period: July 1, 2021 to June 30, 2022 Type of Finding: Significant Deficiency in Internal Control over Compliance; Other Matters Recommendation: We recommend the College establish controls to ensure accurate and timely reporting. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: Tabor College will ensure proper documentation of reviews for reporting and that report submission guidelines are followed. Name(s) of the contact person(s) responsible for corrective action: Cathy Castle, Vice President for Business and Finance Planned completion date for corrective action plan: Immediately as additional federal awards are received.
Finding 45178 (2022-007)
Significant Deficiency 2022
2022-007 Gramm-Leach-Bliley Act Award Period: July 1, 2021 to June 30, 2022 Type of Finding: Significant Deficiency in Internal Control over Compliance; Other Matters Recommendation: We recommend that the College engage a third party or perform the risk assessment for the three areas required by the...
2022-007 Gramm-Leach-Bliley Act Award Period: July 1, 2021 to June 30, 2022 Type of Finding: Significant Deficiency in Internal Control over Compliance; Other Matters Recommendation: We recommend that the College engage a third party or perform the risk assessment for the three areas required by the Gramm-Leach-Bliley Act and ensure that there are documented safeguards for identified risks. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: Tabor College is currently meeting with companies who provide services to assist with meeting the requirements of the Gramm-Leach-Bliley Act. Name(s) of the contact person(s) responsible for corrective action: Cathy Castle, Vice President for Business and Finance Planned completion date for corrective action plan: April 2023 and ongoing. If the Department of Education has questions regarding this plan, please call Cathy Castle at 620-947-3121 x 1056.
Finding 45177 (2022-004)
Significant Deficiency 2022
2022-004 National Student Loan Data System (NSLDS) Award Period: July 1, 2021 to June 30, 2022 Type of Finding: Significant Deficiency in Internal Control over Compliance; Other Matters Recommendation: We recommend the College review its reporting procedures to ensure the students' statuses are accu...
2022-004 National Student Loan Data System (NSLDS) Award Period: July 1, 2021 to June 30, 2022 Type of Finding: Significant Deficiency in Internal Control over Compliance; Other Matters Recommendation: We recommend the College review its reporting procedures to ensure the students' statuses are accurately reported to NSLDS as required by regulations. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: Tabor College utilizes a clearing house for submitting student statuses. Tabor will ensure that all students statuses are filed accurately and timely. Name(s) of the contact person(s) responsible for corrective action: Scott Franz, Interim Financial Aid Director Planned completion date for corrective action plan: April 2023
Finding 45176 (2022-003)
Significant Deficiency 2022
2022-003 Return of Title IV (R2T4) Award Period: July 1, 2021 to June 30, 2022 Type of Finding: Significant Deficiency in Internal Control over Compliance; Other Matters Recommendation: We recommend the College review the return of Title IV funds requirements and implement procedures to ensure the r...
2022-003 Return of Title IV (R2T4) Award Period: July 1, 2021 to June 30, 2022 Type of Finding: Significant Deficiency in Internal Control over Compliance; Other Matters Recommendation: We recommend the College review the return of Title IV funds requirements and implement procedures to ensure the return of Title IV funds calculations are using the correct number of break days and are accurately completed. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: Tabor College will ensure the correct number days are used in all R2T4 calculations, including times when there are break days during the school term. Name(s) of the contact person(s) responsible for corrective action: Scott Franz, Interim Financial Aid Director Planned completion date for corrective action plan: This has begun with the 2022-23 school term
Finding 45175 (2022-002)
Significant Deficiency 2022
2022-002 Eligibility and Certification Approval Report (ECAR) Award Period: July 1, 2021 to June 30, 2022 Type of Finding: Significant Deficiency in Internal Control over Compliance; Other Matters Recommendation: We recommend the College review its reporting procedures surrounding updating the ECAR ...
2022-002 Eligibility and Certification Approval Report (ECAR) Award Period: July 1, 2021 to June 30, 2022 Type of Finding: Significant Deficiency in Internal Control over Compliance; Other Matters Recommendation: We recommend the College review its reporting procedures surrounding updating the ECAR to ensure reporting is accurate and completed. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: Tabor College will ensure that ECAR is updated in a timely manner when there is a change in a position of an official for the institution. Name(s) of the contact person(s) responsible for corrective action: Scott Franz, Interim Financial Aid Director Planned completion date for corrective action plan: April 2, 2023
Finding 45172 (2022-001)
Significant Deficiency 2022
Finding 2022-001 Significant Deficiency Federal Program: HOME Investment Partnerships program Assistance Listing Number: 14.239 Federal Grantor: Department of Housing and Urban Development Federal Award Year: 2021-2022 Management?s Response and Corrective Actions: Background: Since 1985, the City...
Finding 2022-001 Significant Deficiency Federal Program: HOME Investment Partnerships program Assistance Listing Number: 14.239 Federal Grantor: Department of Housing and Urban Development Federal Award Year: 2021-2022 Management?s Response and Corrective Actions: Background: Since 1985, the City of Inglewood has approximately 90 loans issued to homeowners under the HOME Program for either homebuyer programs or for housing rehabilitation programs. Over the years, the City has contracted with the outside agency, Inglewood Neighborhood Housing Services (INHS) to administer these homeowner loan programs for Inglewood residents. Additionally, the City has directed the Community Development Block Grant (CDBG) Division and the former Inglewood Redevelopment Agency to oversee the administration of these loans. It has been demonstrated that the now defunct INHS has issued loans to homeowners and may not have recorded each transaction accurately, thus resulting in some loans being paid off without proper noticing to the City. Some homeowner loans were not adequately identified as being loans attributable to the City; and some loans issued were misidentified as being either City loans from the U.S. Department of Housing and Urban Development (HUD) or City loans from the former State of California Department of Finance Redevelopment Agency (RDA). In 2007, the City has retrieved the loan files from INHS in an attempt to reconcile the outstanding loans issued by INHS, with those loans already repaid or otherwise closed. The City?s CDBG Division along with the RDA has been tasked with reconciling the home loans for both HUD and the RDA. During this period, the City suffered a gradual reduction in HUD CDBG and HOME funds which resulted in the gradual reduction of key CDBG staff members, beginning with the separation of the Senior Grants Coordinator, the Grants Coordinator, the CDBG Division Accountant, and the CDBG Administrative Analyst. The remaining full-time staff and two new full-time CDBG Division staff saw the retirement of the Grants Manager, and a series of five subsequent managers since 2013. In a drastic turn of events and after a long litigation at the State level, effective February 1, 2012, California experienced the dissolution of over 400 of the state?s RDAs, including the City?s RDA, a once robust agency with over 15 staff members. At the local level, the City of Inglewood was named as the Successor Agency responsible to manage Inglewood redevelopment projects currently underway, make payments on enforceable obligations, and dispose of redevelopment assets and properties. With the dissolution of the Inglewood RDA, staffing was reduced to five remaining members. As of 2016, the Successor Agency had only two staff members, one full-time staff member and one part-time staff-member. Unfortunately, with the high level of turnover in the City, the City loans were not consistently updated in a timely fashion. Since 2019, the City has stabilized its staffing to include a HUD Programs Manager who is responsible for overseeing the Home Loan Programs. The HUD Programs Manager will ensure the loans are properly monitored and serviced. The City has two Senior Program Specialists who have a combined total of over 40 years of experience in HUD Programs. The City is currently recruiting for a third Senior Program Specialist. Corrective Action 1.0: The City will review each loan on the outstanding loan schedule and will update each to ensure the status is correct according to the schedule. For any outstanding loan where the terms have been satisfied, the City will ensure these are properly recorded as receivable and listed on the HOME loan receivable schedule maintained by the City. Projected Time of Completion: Each loan is scheduled to be updated by December 30, 2023. Corrective Action 2.0: The City will reconcile its records to ensure the each City loan is accounted for according to the source of funding and the terms of each loan. Staff will ensure each loan is properly recorded with the Los Angeles County Recorder?s Office, if required. Projected Time of Completion: April 30, 2024 Corrective Action 3.0: Staff will implement an intense cross-training session amongst the Finance Department Accounting Division, the Successor Agency, and the CDBG Division to ensure that all responsible staff are thoroughly trained to service and monitor the Home Program Loan files. Corrective Action 3.1: Staff will update the HOME Procedures Manual (Manual) to include the cross-training policy and any other program updates, as appropriate, to current procedures and protocol. The Manual will be maintained in a shared file for reference by all staff and willl be made available to the public upon request. Projected Time of Completion: April 30, 2024 Corrective Action 4.0 (1) Staff will monitor, annually, the outstanding loan files and will service and update the loan files as requests are made to the City. (2) Staff will notify the Accounting Division when a loan changes status and provide the appropriate supporting documentation, immediately upon receipt. (3) The HUD Programs Manager will ensure the loan files and all transactions are maintained in a shared file. (4) The HUD Programs Manager will assign staff to report quarterly on any changes to the loan files. Projected Time of Completion: Quarterly, at a minimum.
U.S. Department of Health and Human Services 2022-002 Provider Relief Fund ? Assistance Listing No. 93.498 Recommendation: Management should implement procedures to ensure the lost revenue is calculated and reported using an option that is appropriate for any future periods and revise the lost reven...
U.S. Department of Health and Human Services 2022-002 Provider Relief Fund ? Assistance Listing No. 93.498 Recommendation: Management should implement procedures to ensure the lost revenue is calculated and reported using an option that is appropriate for any future periods and revise the lost revenue amounts on any subsequent filings, if applicable. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: Management will design and implement procedures of review ensuring the appropriate option is selected for how lost revenue is reported for any future reporting periods and on any subsequent filings. Name(s) of the contact person(s) responsible for corrective action: Beau Brown, CFO Planned completion date for corrective action plan: September 30, 2023.
U.S. Department of Health and Human Services 2022-001 Health Center Program Cluster? Assistance Listing No. 93.224 & 93.527 Recommendation: Management should review their policies and procedures with the personnel responsible for providing the sliding fee discount. We also recommend that management ...
U.S. Department of Health and Human Services 2022-001 Health Center Program Cluster? Assistance Listing No. 93.224 & 93.527 Recommendation: Management should review their policies and procedures with the personnel responsible for providing the sliding fee discount. We also recommend that management implement, monthly or quarterly, a self-audit process of newly approved sliding fee discount applicants and their associated patient record. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: Management has designed and implemented continuous training regarding the sliding fee discount program policies and procedures, and monthly internal audit reviews of approved sliding fee discount applicants and their associated patient record. Name(s) of the contact person(s) responsible for corrective action: Beau Brown, CFO Planned completion date for corrective action plan: September 30, 2023.
Views of responsible officials and planned corrective actions: Boys & Girls Club has procedure for payroll but recognizes it?s informality. There are features in ADP that we will be implementing including having all employees use the "approve timecard" feature to verify that their time is accurate...
Views of responsible officials and planned corrective actions: Boys & Girls Club has procedure for payroll but recognizes it?s informality. There are features in ADP that we will be implementing including having all employees use the "approve timecard" feature to verify that their time is accurate for each pay period before payroll is submitted each pay period. Supervisors will be required to review all time entries and approve them before the payroll can be processed. This will be documented by using the "approve timecard" feature added to our payroll system. Allocation of time spent in specified efforts for a grant will be designated in the appropriate department on the employee timecard. The Finance Director will designate payroll costs to a grant by using the "class" feature in QuickBooks for all payroll expenditure and generate a payroll summary from the payroll system to be kept with other grant documentation.
Views of responsible officials and planned corrective actions: Flight to Chicago for our National conference. Did not realize upgrading to economy plus for extra leg room was excessive as it fell within the parameters of our approved budget. In the future all employees traveling will adhere to th...
Views of responsible officials and planned corrective actions: Flight to Chicago for our National conference. Did not realize upgrading to economy plus for extra leg room was excessive as it fell within the parameters of our approved budget. In the future all employees traveling will adhere to the ?least expensive flight option? and will not charge any additional upgrades to the Federal grants program. We will also review other restrictions on travel for federal grants to ensure compliance.
Views of Responsible Officials ChesPenn Health Services, Inc. will continue to monitor the process of maintaining paper copies of all sliding fee scale patient files in each office as a back-up to potential electronic system failures for scanning patient's records. In addition, ChesPenn Health Servi...
Views of Responsible Officials ChesPenn Health Services, Inc. will continue to monitor the process of maintaining paper copies of all sliding fee scale patient files in each office as a back-up to potential electronic system failures for scanning patient's records. In addition, ChesPenn Health Services, Inc.'s Compliance Officer and Chief Operating Officer will conduct random monthly audits of sliding fee applications at all three locations. Results from the audits will be presented to the site Office Manager who will then conduct staff training sessions with the Patient Service Representatives. The audit and subsequent training will include a review of the following parameters for proper documentation and sliding fee scale determination: Identification: o State issued driver's license o State issued or state recognized identification card o School identification o Government issued passport o If married, a copy of spouse's identification as well Social Security Cards: o For the applicant o For the spouse, if married o For all dependents 18 years of age or younger o For a college student, up to 23 years of age with college documentation o If a social security card is not available for a child, a birth certificate will be accepted Paystubs: o One recent pay stub, if married a copy from spouse as well o Benefits statement from social security, if married from husband and wife o Awards letter for unemployment, if married from husband and wife o Self-employed - Last year's income tax statement o If paid in cash, a letter from the employer, on company letter head that states the hourly rate and hours worked o If the letter is handwritten, the letter must be notarized o When an individual has no source of income and has no insurance, they are required to fill out the information on the front and the back of the sliding fee scale form. Photo identification and social security cards are required Responsible Party: Susan Harris-McGovern, President/CEO Susan.harris@chespenn.org, 610-485-3800 Estimated Time of Completion: March 31, 2023
The Board of Directors is and will remain involved in the financial affairs of the Cooperative.
The Board of Directors is and will remain involved in the financial affairs of the Cooperative.
Finding 44948 (2022-002)
Significant Deficiency 2022
Finding 2022-002 Condition The College did not accurately report the amount of institutional HEERF II and III and SIP spent in their quarterly reports ending June 30, 2021, December 31, 2021 and March 31, 2022. The College did ultimately correct these reports to reflect accurate information. Corr...
Finding 2022-002 Condition The College did not accurately report the amount of institutional HEERF II and III and SIP spent in their quarterly reports ending June 30, 2021, December 31, 2021 and March 31, 2022. The College did ultimately correct these reports to reflect accurate information. Corrective Action Plan The College has corrected the misstated reports. To help ensure this does not occur again, the College will appropriately assign all necessary data collection responsibilities and ensure that corresponding submission deadline are clearly communicated. The Assistant Controller will be assigned the responsibility to coordinate the collection of necessary data and the compilation of the report. The Controller will then review the draft report and make timely submission. Name(s) of Contact Person(s) Responsible for Corrective Action: Jeffrey Strader ? Vice President, Finance and Strategic Partnerships Anticipated Completion Date: Reports have been corrected as of February 2023 and secondary review will be performed in quarters going forward. Procedures will be incorporated into the College?s work processes during Fiscal Year 2022-2023
Fiscal Year Ending (?FYE?) 2022 Audit Response Corrective Action Plan Finding 2022-001 ?Housing Choice Voucher Program Tenant Files ?Eligibility-Internal Control over Tenant Files-Noncompliance and Significant Deficiency? RHA Response The Raleigh Housing Authority and Leased Housing Department ack...
Fiscal Year Ending (?FYE?) 2022 Audit Response Corrective Action Plan Finding 2022-001 ?Housing Choice Voucher Program Tenant Files ?Eligibility-Internal Control over Tenant Files-Noncompliance and Significant Deficiency? RHA Response The Raleigh Housing Authority and Leased Housing Department acknowledge and accept that there were a significant number (27 files of 120 reviewed) of past due annual recertifications during the FYE 2022 review period. The abundance of outstanding annual re-exams started mid-2020. During the height of the Coronavirus pandemic, we changed our process for in-person appointments for completing the Annual Re-exam paperwork to mailing the packets to the families. This caused us problems with obtaining the necessary documentation for processing the recertifications. Also, other agencies that provided the required income/household verifications were closed and families were unable to obtain the required information. The Leased Housing Department modified its procedures and accepted what was minimally allowable based on HUD?s guidance. The staff worked diligently with the families that had outstanding documents to avoid terminating the families which would have likely resulted in homelessness during a national pandemic. There was a moratorium in place that prevented evictions of tenants during that time also. The Leased Housing Department also had a number of vacant positions during this review period. The Client Manager worked a large portion of the previous review period FYE 2021 with two full-time staff person and 2 temporary employees during part of that time. In a department that normally worked with 4 full-time trained employees, this staff reduction and having to train temporary employees slowed the process down. The Leased Housing staff has put the following plan in place to catch up on our annual recertifications and to complete timely moving forward: ? Additional Staffing positions to hire and train o one (1) client specialist ? this team gathers all the required documents and confirms completed properly o two (2) account specialist ? this team calculates the annual recertification income and generates the 50058s transmitted to HUD ? Current staffing positions reassigned to assist including: o 2 Temporary employees o Compliance Officer o Contract Specialist o 2 File Review Specialist ? from Finance Compliance team o Client Manager ? Contract with an outside service provider to help with the volume - We have received quotes from both Nan McKay and Quadel and will look to procure within the next few weeks to help us move through the volume of past due files ? A new tracking system for Annual recertification has been implemented to ensure the number of Annual Re-exams that need to be processed weekly are meet to meet our monthly goals. ? The Client Manager and the Assistant Director of Leased Housing will meet weekly to discuss the progress and work together to meet the monthly lease-up goal. ? Voucher families will be scheduled to come-into the office to pick-up the annual recertification packet and speak to their assigned specialist if needed. ? Voucher families are notified 90-days prior to their annual recertification date and given a time and date to submit the requested documents. If requested documents are not received, the voucher family will receive a pre-term letter with a scheduled appointment to come into the office and meet with the assigned Client Specialist. They will only be given 7-business days to return requested documents after this meeting. If not received the family will be issued a letter of termination. Anticipated Completion: 12/31/22 Person Responsible: Liz Edgerton Respectfully, Liz Edgerton Interim Director
Finding Number: 2022-002 Title and Program Name: HUD Title 24 Part 982 - Section 8 Housing Choice Vouchers Program -CFDA No. 14.871 Category and Award No.: Internal Controls-Eligibility Form HUD-92006, Supplement to Application for Federally Assisted Housing. Section 8 - Award # RQ006 Management...
Finding Number: 2022-002 Title and Program Name: HUD Title 24 Part 982 - Section 8 Housing Choice Vouchers Program -CFDA No. 14.871 Category and Award No.: Internal Controls-Eligibility Form HUD-92006, Supplement to Application for Federally Assisted Housing. Section 8 - Award # RQ006 Management Response and/or Corrective Action: The Municipality of San Juan concurs with the finding. As part of the corrective action plan, the Housing Department incorporated the Form HUD-92006 into the system so that it could be included as part of the recertification documents kit. The forms can be filed on the participants case on paper and in a digital form.. Assigned Responsibility: Isamar Pina Rivera (787)480-5500 Director of Housing Department Status: June 30, 2023
Finding Number: 2022-001 Title and Program Name: HUD Title 24 Part 982 - Section 8 Housing Choice Vouchers Program -CFDA No. 14.871 Category and Award No.: Internal Controls ? Special Test - Housing Quality Standards Inspection - Housing Quality Standards Enforcement. Section 8 - Award # RQ006 M...
Finding Number: 2022-001 Title and Program Name: HUD Title 24 Part 982 - Section 8 Housing Choice Vouchers Program -CFDA No. 14.871 Category and Award No.: Internal Controls ? Special Test - Housing Quality Standards Inspection - Housing Quality Standards Enforcement. Section 8 - Award # RQ006 Management Response and/or Corrective Action: The Municipality of San Juan concurs with the finding. As part of the corrective action plan, the Housing Department appointed an Area Supervisor in January 2023, to oversee the Compliance of Eligibility requirements. The department established as internal control procedures to monthly issue the inspections report to: - verify any backload case of recertifications to be able to reschedule on the recertification term period. -or cases suspended due to deficiencies (HQS) and enforce the repairs or give a new voucher to the affected families. Assigned Responsibility: Isamar Pina Rivera (787)480-5500 Director of Housing Department Status: June 30, 2023
Finding Number: 2022-003 Title and Program Name: Section 8 Project Based Cluster-CFDA No. 14.856 Category and Award No.: Internal Controls-Eligibility - Notice of Re-certification sent within 90 to 120 days Awards No. RQ006MR0001, RQ006MR0003 & RQ006MR0004 Management Response and/or Corrective Ac...
Finding Number: 2022-003 Title and Program Name: Section 8 Project Based Cluster-CFDA No. 14.856 Category and Award No.: Internal Controls-Eligibility - Notice of Re-certification sent within 90 to 120 days Awards No. RQ006MR0001, RQ006MR0003 & RQ006MR0004 Management Response and/or Corrective Action: The Municipality of San Juan concurs with the finding. As part of the corrective action plan, the Housing Department reemphasized its technicians and staff in writing on the importance of filing copies of recertification letters once submitted and documenting in the case file any type of communication with the participant. Also, as part of the internal controls the Department will require quality control inspection on a weekly basis once the technicians perform their scheduled recertifications. Assigned Responsibility: Isamar Pina Rivera (787)480-5500 Director of Housing Department Status: June 30, 2023
U.S. Department of Health and Human Service Corona-Norco Family Young Men's Christian Association respectfully submits the following corrective action plan for the year ended June 30, 2022. Audit period: July 1, 2021 through June 30, 2022 The findings from the schedule of findings and questioned cos...
U.S. Department of Health and Human Service Corona-Norco Family Young Men's Christian Association respectfully submits the following corrective action plan for the year ended June 30, 2022. Audit period: July 1, 2021 through June 30, 2022 The findings from the schedule of findings and questioned costs are discussed below. The findings are numbered consistently with the numbers assigned in the schedule. FINDINGS?FINANCIAL STATEMENT AUDIT 2022 ? 001 ? Significant Deficiency ? Financial Statements Closing and Reporting Recommendation: We recommend improving the independent review of monthly financial statements, in particular to the area of collectability of receivable. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: Our organization moved from one accounting system to another causing an error in entry/recording. Our organization has implemented the following: Monthly financial reviews including receivable oversight. Review is conducted by organization?s outsourced accountant, Finance Committee as a board function, Department Program Directors, back office administrative person and the YMCA Leadership staff team. Line items are reviewed, and variances are reported in written format each month. Additionally, all receivables are reported and collected within 90 days with a 30-60-90 day follow up plan. Name(s) of the contact person(s) responsible for corrective action: Audrie Echnoz, Chief Executive Officer. Planned completion date for corrective action plan: Beginning July 1, 2022 FINDINGS?FEDERAL AWARD PROGRAMS AUDITS U.S. Department of Health and Human Service 2022 ? 002 ? Cost Principles: Compensation ? Personal Services Federal Program Name: Child Care and Development Block Grant Child Care Mandatory and Matching Funds of the Child Care and Development Fund Assistance Listing Number: 93.575, 93.576 Recommendation: We recommend the entity implement procedures to ensure that documentation in place as in accordance with the OMB's Uniform Guidance. In situation that it was reporting error from a third-party provider, we recommend the entity implement alternative procedures to maintain sufficient documentation. View of Responsible Officials: There is no disagreement with the audit finding. Explanation of disagreement with audit finding: Our organization moved from written time sheets to a digital payroll platform. The training and staff implementation has included ongoing training with policies being rolled out and followed up with each month. Human resources has since reminded all staff of the requirement to approve their timesheets and all supervisors were reminded of this in recent staff meeting. This will be reviewed each payroll period and strong adherence will be followed with follow up action in place. Name(s) of the contact person(s) responsible for corrective action: Audrie Echnoz, Chief Executive Officer. Planned completion date for corrective action plan: Beginning July 1, 2022 If the U.S Department of Health and Human Services has questions regarding this plan, please call Audrie Echnoz, Chief Executive Officer at 951-479-4779.
Finding 44790 (2022-067)
Significant Deficiency 2022
2022-067 Oregon Department of Education Ensure accuracy of federal reporting Federal Awarding Agency: U.S. Department of Education Assistance Listing Number and Name: 84.425C Education Stabilization Fund (COVID-19) Federal Award Numbers and Years: S425C200048; 2020 (COVID-19) Compliance Requireme...
2022-067 Oregon Department of Education Ensure accuracy of federal reporting Federal Awarding Agency: U.S. Department of Education Assistance Listing Number and Name: 84.425C Education Stabilization Fund (COVID-19) Federal Award Numbers and Years: S425C200048; 2020 (COVID-19) Compliance Requirement: Reporting Type of Finding: Significant Deficiency; Noncompliance Prior Year Finding: N/A Questioned Costs: N/A Criteria: 2 CFR 200.302(b); 2 CFR 200.303(a) Federal regulations require that federal reports include all activity of the reporting period and be supported by applicable accounting records. Federal regulations also require that the department file a separate report for the Governor?s Emergency Education Relief (GEER) expenditures for the period ending June 30, 2021. The department reported GEER information for the local education areas (LEAs) related to the comprehensive distance learning grant program. LEAs submit reimbursement to the department and this information is tracked in an excel database. The database includes various information, including funding types, dates, and amounts. During FY 2022, the department completed the reports using the database, but incorrectly filtered the data so some expenditures were not captured. This resulted in an underreporting of GEER expenditures by $13.9 million. We recommend department management ensure that accurate expenditure data is submitted to the federal government for federal reporting. MANAGEMENT RESPONSE: We agree with this recommendation. ODE has noted the mistake in data filtering and will remedy to ensure accurate expenditure reporting this year. Annual reporting for GEER will enable this error to be corrected moving forward. Anticipated Completion Date: June 22, 2023 Contact: Cynthia Stinson, Senior Manager of Federal Investments & Pandemic, Renewal Effort, OTLA
Finding 44764 (2022-062)
Significant Deficiency 2022
2022-062 Higher Education Coordinating Commission Improve controls over payroll Federal Awarding Agency: U.S. Department of Labor Assistance Listing Number and Name: 17.258 WIOA Adult Program 17.259 WIOA Youth Activities 17.278 WIOA Dislocated Workers Formula Grant Federal Award Numbers and Yea...
2022-062 Higher Education Coordinating Commission Improve controls over payroll Federal Awarding Agency: U.S. Department of Labor Assistance Listing Number and Name: 17.258 WIOA Adult Program 17.259 WIOA Youth Activities 17.278 WIOA Dislocated Workers Formula Grant Federal Award Numbers and Years: AA33251LN0; 2019, AA33251L70; 2019, AA33251L90; 2019, AA33251R70; 2019, AA33251R90; 2019, AA34789VS0; 2020, AA34789V90; 2020, AA34789VQ0; 2020, AA347893L0; 2020, AA347895P0; 2020, AA36341E10; 2021, AA36341D90; 2021, AA36341DQ0; 2021, AA36341KY0; 2021,AA36341LA0; 2021 Compliance Requirement: Allowable Costs/Cost Principles Type of Finding: Significant Deficiency Prior Year Finding: N/A Questioned Costs: N/A Criteria: 2 CFR 200.303 Federal regulations require recipients of federal awards to establish and maintain internal controls designed to reasonably ensure compliance with federal laws, regulations, and program compliance requirements. The department has implemented the following procedures to ensure payroll costs are correctly charged to the program. Managers approve monthly timesheets submitted by the employees in the state?s payroll system. When managers do not approve by a specified date, the payroll system will automatically approve the timesheet, shown with the words ?system approved.? Additionally, each employee should have a signed position description, which details the duties of the position and the amount of time to be charged for the duties. We selected a nonstatistical random sample of 20 employee timesheets related to 12 employees to ensure payroll was appropriately charged to the program. Additionally, we selected one employee who was on job rotation with the agency from January 2022 through June 2022. We verified payroll timesheets were reviewed by a manager and signed position descriptions were retained per state guidelines, and identified the following exceptions: Two timesheets for one employee did not have evidence of manager approval and 2 timesheets for two employees were reviewed over three months later. For all 12 employees, the position descriptions provided were unsigned or signed upon our request. We did not question these costs as department management verified job duties were appropriate to the program. For the employee on job rotation, 4 of the 6 timesheets were not reviewed and a signed position description was not signed by the employee. According to department management, timesheets were not always approved by the manager as the system will automatically lock and approve the timesheet. For position descriptions, supervisor did not always follow through on obtaining signed position descriptions and for longer term employees a number of boxes could not be located when the agency moved. There is a risk that employees could be improperly charging to the federal program. We recommend department management ensure timesheets are timely reviewed and positions descriptions are completed and retained. MANAGEMENT RESPONSE: We agree with this recommendation. To improve controls over payroll, the HECC and the State of Oregon switched its payroll system from the old Legacy Oregon State Payroll Application (OSPA ? Epay) to the new Workday Payroll as of December 1, 2022. The HECC has since created reminder emails to all Management Staff to submit their respective employees? timesheets in a timely manner. In addition, the new Workday Payroll does not have a feature that automatically locks an employee?s timesheet and auto-approves a timesheet. Each Manager must now manually approve a timesheet for any employee that enters specific time codes for particular grants or use of funds. To address the finding regarding unsigned position descriptions (PDs), the HECC has since ensured that all of the identified PDs have been signed. HECC?s Human Resources Unit (HR) has created a new process going forward requiring all managers to sign the PD at the time of the offer letter and HECC HR to collect the signature from the employee on their first day when HR meets with them. HECC HR also has reviewed all of its existing employees? position description in this process to ensure all positions descriptions are signed. Anticipated Completion Date: August 31, 2023 Contact: Christopher Bui, Budget and Fiscal Manager
Finding 44763 (2022-061)
Significant Deficiency 2022
2022-061 Higher Education Coordinating Commission FFATA reports were not prepared or submitted Federal Awarding Agency: U.S. Department of Labor Assistance Listing Number and Name: 17.258 WIOA Adult Program 17.259 WIOA Youth Activities 17.278 WIOA Dislocated Worker Formula Grant Federal Award N...
2022-061 Higher Education Coordinating Commission FFATA reports were not prepared or submitted Federal Awarding Agency: U.S. Department of Labor Assistance Listing Number and Name: 17.258 WIOA Adult Program 17.259 WIOA Youth Activities 17.278 WIOA Dislocated Worker Formula Grant Federal Award Numbers and Years: AA33251LN0; 2019, AA33251L70; 2019, AA33251L90; 2019, AA33251R70; 2019, AA33251R90; 2019, AA34789VS0; 2020, AA34789V90; 2020, AA34789VQ0; 2020, AA347893L0; 2020, AA347895P0; 2020, AA36341E10; 2021, AA36341D90; 2021, AA36341DQ0; 2021, AA36341KY0; 2021, AA36341LA0; 2021 Compliance Requirement: Reporting Type of Finding: Significant Deficiency; Noncompliance Prior Year Finding: N/A Questioned Costs: N/A Criteria: 2 CFR 170; 2 CFR 200.303 The WIOA Cluster is subject to subaward reporting under the Federal Funding Accountability and Transparency Act (FFATA). FFATA requires the department to submit information for any subaward action that equals or exceeds $30,000 in the FFATA Subaward Reporting System (FSRS). Reports should be submitted no later than the end of the month following the month in which the subawards were made. Federal regulations also require recipients of federal awards to establish and maintain internal controls designed to reasonably ensure compliance with federal laws, regulations, and program compliance requirements. Upon inquiry of the department, we determined it had not submitted any subaward information to the FSRS during fiscal year 2022. Department management stated FFATA reporting was not completed due to staff turnover. We also reviewed information the department had submitted at USAspending.gov and determined the department had not submitted any subaward information to FSRS since 2017. The agency is not in compliance with FFATA reporting requirements. Additionally, the department is not transparent in the spending decisions of these federal awards. We recommend department management implement controls to timely prepare and submit the monthly FFATA reports as required by federal regulations. The department should also work with the federal awarding agency to determine what actions it should take for older reports not submitted. MANAGEMENT RESPONSE: We agree with this recommendation. According to the findings, the HECC didn?t submit any subaward information to the FSRS during fiscal year 2022. Furthermore, the Department had not submitted any subaward information to FSRS since 2017. The HECC acknowledges these findings are correct. Due to these findings, HECC has implemented procedures to ensure timely entry into the FFATA Subaward Reporting System (FSRS) of all awards that equal or exceed $30,000. In addition, HECC has granted FSRS access to several high-level accountants to ensure that there is always staff on hand to make these entries. The procedures include a checkbox on the cover page of every agreement that delineates when a FSRS entry is required. Anticipated Completion Date: May 31, 2023 Contact: Christopher Bui, Budget and Fiscal Manager
Finding 44762 (2022-060)
Significant Deficiency 2022
2022-060 Higher Education Coordinating Commission Strenthen controls to ensure expenditures are not obligated beyond the period of performance Federal Awarding Agency: U.S. Department of Labor Assistance Listing Number and Name: 17.258 WIOA Adult Program 17.259 WIOA Youth Activities 17.278 WIOA...
2022-060 Higher Education Coordinating Commission Strenthen controls to ensure expenditures are not obligated beyond the period of performance Federal Awarding Agency: U.S. Department of Labor Assistance Listing Number and Name: 17.258 WIOA Adult Program 17.259 WIOA Youth Activities 17.278 WIOA Dislocated Workers Formula Grant Federal Award Numbers and Years: AA32218F30; 2018, AA32218G10; 2018 AA32218G30; 2018, AA32218G70; 2018 AA32218H90; 2018, AA32218F31; 2018 Compliance Requirement: Period of Performance Type of Finding: Significant Deficiency; Noncompliance Prior Year Finding: N/A Questioned Costs: $47,523 (known) Criteria: 20 CFR 683.110; 2 CFR 200.343 (2018) WIOA grants are available for expenditure by the State during the grant program year and the two succeeding program years. In addition, the State must liquidate all financial obligations incurred no later than 90 calendar days after the end date of the period of performance. We judgmentally selected for review expenditures recorded in fiscal year 2022 related to 2018 grant award whose period of performance ended June 30, 2021. Our review of the supporting documentation found there were 3 out of 13 items with expenditures that were outside the period of performance. Total question cost for these expenditures were $47,523. Per management, these errors were due to a change in personnel and trying to balance out the 2018 grant after the fact. We recommend department management review and revise controls to ensure expenditures are only obligated during the period of performance federally mandated dates. MANAGEMENT RESPONSE: We agree with this recommendation. The three errors pertaining to those expenditures that were outside the period of performance, were due to a change in personnel and trying to balance out the 2018 grant, after the fact. The HECC have addressed these issues by ensuring that all new accountants are fully trained in a timely manner. Also, HECC has implemented training for all current accounting staff in identifying what is an allowable cost within the period of performance. This training also included a review of proper close-out procedures for all grants. Anticipated Completion Date: June 30, 2023 Contact: Christopher Bui, Budget and Fiscal Manager
View Audit 45093 Questioned Costs: $1
Finding 44760 (2022-023)
Significant Deficiency 2022
2022-023 Oregon Housing and Community Services Controls need to be strengthened to ensure the required expenditures are spent timely Federal Awarding Agency: U.S. Department of Housing and Urban Development Assistance Listing Number and Name: 14.231 Emergency Solutions Grants Program (COVID-19) F...
2022-023 Oregon Housing and Community Services Controls need to be strengthened to ensure the required expenditures are spent timely Federal Awarding Agency: U.S. Department of Housing and Urban Development Assistance Listing Number and Name: 14.231 Emergency Solutions Grants Program (COVID-19) Federal Award Numbers and Years: E-20-DW-41-0001, 2020 (COVID-19) Compliance Requirement: Special Tests and Provisions Type of Finding: Significant Deficiency; Noncompliance Prior Year Finding: N/A Questioned Costs: N/A Criteria: CPD 21-08(III)(B)(2)(c) Emergency Solutions Grants-Cares Act (ESG-CV) funds were intended to be spent quickly on allowable activities to address the public health and economic crisis stemming from COVID-19. At least 20% of the total award was to be spent by September 30, 2021. Based on our testing, the department was not adequately tracking the percentage or timeliness of expenditures and did not reach the expenditure milestone. Approximately 18% of the total award was expended by September 30, 2021. If the 20% milestone is not achieved, HUD is able to recapture up to 20%, or $11.2 million, of the total award. We recommend agency management develop procedures to ensure grant expenditures are adequately tracked and spent within the required time period. MANAGEMENT RESPONSE: We agree with this recommendation. OHCS did reach out to HUD and requested an extension of the obligation deadline, however, did not receive direct approval. Going forward, OHCS will ensure grant management reports and time-bound expenditure plans are consistently maintained and followed for all OHCS grants and grantees. In addition, OHCS will perform due diligence and ensure follow-up occurs when needed and documentation is retained to support our efforts. Anticipated Completion Date: December 31, 2023 Contact: Beth Brown, Accounting Manager
Finding 44754 (2022-059)
Significant Deficiency 2022
2022-059 Department of Human Services Ensure issued benefits are accurate Federal Awarding Agency: U.S. Department of Agriculture Assistance Listing Number and Name: 10.542 Pandemic EBT Food Benefits (COVID-19) Federal Award Numbers and Years: Not available (COVID-19) Compliance Requirement: Acti...
2022-059 Department of Human Services Ensure issued benefits are accurate Federal Awarding Agency: U.S. Department of Agriculture Assistance Listing Number and Name: 10.542 Pandemic EBT Food Benefits (COVID-19) Federal Award Numbers and Years: Not available (COVID-19) Compliance Requirement: Activities Allowed or Unallowed Type of Finding: Significant Deficiency; Noncompliance Prior Year Finding: N/A Questioned Costs: $3,692,215 (known); $13,554,666 (likely) (COVID-19) Criteria: Public Law 116-127; 2 CFR 200.303 The federal requirements for the Pandemic EBT (P-EBT) program require state agencies follow their approved state plan. Part of Oregon?s simplifying assumptions in their state plan was that the benefit amount was determined at the school level, not the individual level, based on the school?s operating status, for October 2020 ? May 2021. As part of Oregon?s Ready Schools, Safe Learners program, schools were required to weekly report their operating status/instructional model to the Oregon Department of Education (ODE). In fiscal year 2022, the Department of Human Services (department) paid retroactive P-EBT benefits for children related to the 2020-2021 school year. This sample population consisted of institutions (schools and other educational facilities) and months in which children at the institutions received benefits, totaling $391 million. We selected a random sample of 40 institutions and a random month to determine if the benefits provided to the children, based on the status reported by the institution, were accurate. We identified 4 institutions, for April/May, where the benefit paid status of the institution was not the same as reported by the institution to ODE. In all 4 cases, the benefits paid were at a higher level resulting in questioned costs of $38,931 and likely questioned costs of $9.2 million. One of the simplifying assumptions for the P-EBT program, approved in Oregon?s state plan, was ?Oregon will have a limited reconsideration process to revisit benefit allotments at a school level.? However, the department allowed institutions to update their status without additional review, explanation, or documentation. The department could not provide the auditors any support for the changes made by the institutions. Furthermore, the Oregon Governor issued a directive to schools, on March 5, 2021, to begin a phased approach to require all public schools to provide in-person instruction through either a fully on-site or hybrid model on or before the week of April 19, 2021, for all schools. Although benefits issued continued to decrease as the school year end approached, in May 2021, 26% of the institution?s benefits paid were for fully virtual totaling $17 million. We judgmentally selected 36 institutions classified as fully virtual in May with benefits totaling $7.9 million. For 25 institutions, the benefit paid status did not agree to the status reported by the institution to ODE resulting in questioned costs of $3,653,284 and likely questioned costs of $4.4 million. We recommend DHS perform review to identify any additional discrepancies between benefits paid and the institutions reported status, to determine if payments were appropriate, and communicate with the federal awarding agency to determine if repayment is necessary. MANAGEMENT RESPONSE: We respectfully disagree with the findings that schools were not able to directly update their learning mode according to the guidance provided in the P-EBT state plan. The department has included emails and documents that support the actions/decisions taken in the delivery of the Oregon P-EBT school year 2020-2021 state plan was in accordance with federal approval from Food and Nutrition Service (FNS). According to the USDA FNS approval letter received on May 7, 2021, and posted to the FNS website, FNS confirms that Oregon will ?develop(ed) a centralized database to collect student eligibility information and school status? to determine the monthly benefit level for each school (6th bullet on page 2). This information is also confirmed in email correspondence with FNS on April 29, 2021, and May 3, 2021. Within the email the Department details that Oregon will develop a database to collect school status, this is then confirmed by FNS. As part of Oregon?s federally approved simplified assumptions, the state plan allows the school points of contact to update their predominate learning model for each month of the 2020-2021 school year, which may be different than the Ready Schools, Safe Learners (RSSL) Weekly Status Report. An email communication was shared with all identified school points of contact on June 28, 2021. This email requested that school points of contact update their schools predominate learning mode into the Oregon School Meals Benefit (OSMB) system used by the Oregon Department of Human Services to issue P-EBT benefits no later than July 13, 2021. Information reported through the RSSL weekly status report was used to determine the predominate learning mode only in the event that the school point of contract did not update a learning mode manually within OSMB prior to July 13, 2021. On May 9, 2023, the P-EBT policy team confirmed school operating status during the selected months with 5 schools for SOS audit. Email responses from the schools are summarized below: ?See Corrective Action Plan for Table? At the recommendation of the auditors the Department has reached out to FNS Child Nutrition Program about the finding and we are waiting for a response. Anticipated completion date: N/A Contact: Heather Miles, SNAP, CSFP, and TEFAP Program Manager
View Audit 45093 Questioned Costs: $1
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