Corrective Action Plans

Finding 43858 (2022-002)

Significant Deficiency 2022

KY

Cash Management HUD Housing Programs Significant Deficiency

FINDINGS?FEDERAL AWARD PROGRAMS AUDITS U.S. Department of Housing and Urban Development 2022-002 Public Housing Capital Fund ? Assistance Listing No. 14.872 Recommendation: The Housing Authority should timely submit a voucher to disburse funds for bills due and payable for work that has already bee...

FINDINGS?FEDERAL AWARD PROGRAMS AUDITS U.S. Department of Housing and Urban Development 2022-002 Public Housing Capital Fund ? Assistance Listing No. 14.872 Recommendation: The Housing Authority should timely submit a voucher to disburse funds for bills due and payable for work that has already been performed or for items received. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: Timely draws are being done Name(s) of the contact person(s) responsible for corrective action: Chris Bradburn Planned completion date for corrective action plan: 07/01/2022 If the U.S. Department of Housing and Urban Development has questions regarding this plan, please call Cynthia Hall at 859-655-7306.

View Audit 48878

Finding 43855 (2022-001)

Significant Deficiency 2022

Village Cooperative of Sioux Falls

SD

Internal Control / Segregation of Duties Significant Deficiency

Department of Housing and Urban Development HUD project FHA #091-23003 Village Cooperative of Sioux Falls Federal ID# 82-5236223 The FASS system generated the following findings from its review of the June 30, 2022 financial statements. The results of the assessment are summarized below. The project...

Department of Housing and Urban Development HUD project FHA #091-23003 Village Cooperative of Sioux Falls Federal ID# 82-5236223 The FASS system generated the following findings from its review of the June 30, 2022 financial statements. The results of the assessment are summarized below. The project owner should provide their assigned HUD Project Manager a written response addressing each of the findings, and appropriate documentation (e.g. copies of cancelled checks, bank statements, etc.) to prove the finding has been resolved. Project Auditor Findings: The auditor reported the following findings: Compliance Oriented Findings. The Schedule of Findings and Questioned Costs by the auditor contained findings related to the following Auditor Indicator Codes: Finding Reference No. / Code - Finding Condition 2022-001 / S - Internal Control Deficiencies Corrective Action(s). For all audit findings that were unresolved as of the date of the audit report, the owner must provide their HUD Project Manager a written response and supporting documentation indicating the finding has been resolved. Corrective Action Plan: The Board of Directors is and will remain involved in the financial affairs of the Cooperative.

View Audit 46671

Finding 43854 (2022-001)

Significant Deficiency 2022

Village Cooperative of Cedar Falls

IA

Internal Control / Segregation of Duties Significant Deficiency

Department of Housing and Urban Development: HUD project FHA #074-23027 Village Cooperative of Cedar Falls Federal ID# 45-2516561 The FASS system generated the following findings from its review of the August 31, 2022 financial statements. The results of the assessment are summarized below. The proj...

Department of Housing and Urban Development: HUD project FHA #074-23027 Village Cooperative of Cedar Falls Federal ID# 45-2516561 The FASS system generated the following findings from its review of the August 31, 2022 financial statements. The results of the assessment are summarized below. The project owner should provide their assigned HUD Project Manager a written response addressing each of the findings, and appropriate documentation (e.g. copies of cancelled checks, bank statements, etc.) to prove the finding has been resolved. Project Auditor Findings: The auditor reported the following findings: Compliance Oriented Findings. The Schedule of Findings and Questioned Costs by the auditor contained findings related to the following Auditor Indicator Codes: Finding Reference No. / Code - Finding Condition 2022-001 / S - Internal Control Deficiencies Corrective Action(s). For all audit findings that were unresolved as of the date of the audit report, the owner must provide their HUD Project Manager a written response and supporting documentation indicating the finding has been resolved. Corrective Action Plan: The Board of Directors is and will remain involved in the financial affairs of the Cooperative.

View Audit 46668

Finding 43838 (2022-008)

Significant Deficiency 2022

Community Christian College

CA

Student Financial Aid Significant Deficiency Matching / Level of Effort / Earmarking

The following is the process the College will implement to review, update and verity student disbursements as well as document retention to be in compliance with Title IV laws and regulations. 1. Once Title IV is approved in Campus IVY the following processes will be taken: a. Amount listed on stude...

The following is the process the College will implement to review, update and verity student disbursements as well as document retention to be in compliance with Title IV laws and regulations. 1. Once Title IV is approved in Campus IVY the following processes will be taken: a. Amount listed on student funding estimate will be sent to COD for approval b. Approval will be imported c. Amount will then list projected to pay in campus IVY d. Once the date that is listed arrives, Campus IVY will create a batch and send to the school for review and authentication e. The student accounts office reviews student transcripts to make sure eligible amounts are being requested f. Changes are made if students account sees a change in request vs schedule. g. Once review is complete, student account sends the batch back to campus IVY to release for payment. h. Once campus IVY releases for payment i. Campus IVY generates a document ?Disbursement Notification? and sends to the students email on file. j. The disbursement notification is housed in the student profile under ?notifications? for retrieval when needed. This corrective action plan will allow Community Christian College to be in compliance with Title IV laws and regulations regarding disbursements to or on behalf of students.

View Audit 46666

Finding 43836 (2022-006)

Significant Deficiency 2022

Community Christian College

CA

Student Financial Aid Reporting Significant Deficiency

View of Responsible Officials and Corrective Action Plan 1. Campus IVY will aid with the data collection for the FISAP 2. Campus IVY will run a disbursement report showing how much FA was disbursed prior year and record 3. Campus IVY will run ISIR report to show eligible applicant and record 4. Scho...

View of Responsible Officials and Corrective Action Plan 1. Campus IVY will aid with the data collection for the FISAP 2. Campus IVY will run a disbursement report showing how much FA was disbursed prior year and record 3. Campus IVY will run ISIR report to show eligible applicant and record 4. School will run population report out of populi and record 5. Campus IVY will run a report to show the amount of FSEOG disbursed prior year and record 6. Once all data is collected, a comparison year to year will take place 7. A comparison of student population as well as amount used 8. The result will allow the school to determine the amount of FSEOG is needed for upcoming year. This correction action plan will allow Community Christian College to report FISAP figures properly with supporting documentation.

View Audit 46666

Finding 43835 (2022-005)

Significant Deficiency 2022

Community Christian College

CA

Questioned Costs Student Financial Aid Subrecipient Monitoring

The following is the procedure that the College will be implemented to ensure that student withdrawal calculations are performed accurately and returned within 30 days: 1. The registrar will send a list to financial aid of all students that have dropped by end of day every Thursday of each week. a....

The following is the procedure that the College will be implemented to ensure that student withdrawal calculations are performed accurately and returned within 30 days: 1. The registrar will send a list to financial aid of all students that have dropped by end of day every Thursday of each week. a. The list will include date of determination (DOD) and last date of attendance (LDA) of each student b. DOD will be within 14 days of student LDA 2. Upon receipt of the list financial aid will complete the following for each student: a. Gather student?s current ledger card b. Gather student?s current Transcript c. Complete a cover sheet which indicated the current loan period of the student. d. Financial aid will send over items to 3rd party processor in order for R2t4 calculation to be completed (Campus IVY) no later than Wednesday of the following week by end of business day. 3. Campus IVY will complete the R2T4 3-5 business days upon receipt and conduct the following: a. If a refund is required- campus IVY will schedule the refund, update student account and send to school. b. School (student accounts) will review the refund, update student account and monies will be placed in the operations account and sent back to G5. c. If a refund is not required based on the R2T4 results, Campus IVY will notate the student account. This corrective action plan will allow Community Christian College to complete the drop process for each student within 30 days from LDA.

View Audit 46666 Questioned Costs: $1

Finding 43818 (2022-001)

Significant Deficiency 2022

Village Cooperative of Austin

MN

Internal Control / Segregation of Duties Significant Deficiency

Department of Housing and Urban Development: HUD project FHA #092-23259 Village Cooperative of Austin Federal ID# 20-4760670 The FASS system generated the following findings from its review of the September 30, 2022 financial statements. The results of the assessment are summarized below. The projec...

Department of Housing and Urban Development: HUD project FHA #092-23259 Village Cooperative of Austin Federal ID# 20-4760670 The FASS system generated the following findings from its review of the September 30, 2022 financial statements. The results of the assessment are summarized below. The project owner should provide their assigned HUD Project Manager a written response addressing each of the findings, and appropriate documentation (e.g. copies of cancelled checks, bank statements, etc.) to prove the finding has been resolved. Project Auditor Findings: The auditor reported the following findings: Compliance Oriented Findings. The Schedule of Findings and Questioned Costs by the auditor contained findings related to the following Auditor Indicator Codes: Finding Reference No. / Code - Finding Condition 2022-001 / S - Internal Control Deficiencies Corrective Action(s). For all audit findings that were unresolved as of the date of the audit report, the owner must provide their HUD Project Manager a written response and supporting documentation indicating the finding has been resolved. Corrective Action Plan: The Board of Directors is and will remain involved in the financial affairs of the Cooperative.

View Audit 43812

Finding 43816 (2022-004)

Significant Deficiency 2022

The Housing Authority of the City of Warner Robins

GA

HUD Housing Programs Allowable Costs / Cost Principles Procurement, Suspension & Debarment § 200.403 § 200.405

Finding 2022-004 ? Unallowable Use of Public Housing Program Funds Public Housing Program ? Assistance Listing No. 14.850a, Grant Period: Fiscal Year-End June 30, 2022 Corrective Action The Authority review allowable Public Housing Program versus COCC expenditures in HUD Handbook 7575.1 and refrain...

Finding 2022-004 ? Unallowable Use of Public Housing Program Funds Public Housing Program ? Assistance Listing No. 14.850a, Grant Period: Fiscal Year-End June 30, 2022 Corrective Action The Authority review allowable Public Housing Program versus COCC expenditures in HUD Handbook 7575.1 and refrain from charging COCC expenditures to the Public Housing Program. The Authority?s Executive Director, Africa Porter, has assumed the responsibility of executing this corrective action as of April 1, 2023.

View Audit 39384

Finding 43814 (2022-004)

Significant Deficiency 2022

Blue Mountain Community College District

OR

Allowable Costs / Cost Principles Significant Deficiency Internal Control / Segregation of Duties

Audit Finding 2022-004 Condition and Criteria: The Student Aid Portion of the Education Stabilization Fund program focuses on distributing funds to students to assist in expenses related to the pandemic and the College must have a process to reliably distribute the funds. BMCC distributes student st...

Audit Finding 2022-004 Condition and Criteria: The Student Aid Portion of the Education Stabilization Fund program focuses on distributing funds to students to assist in expenses related to the pandemic and the College must have a process to reliably distribute the funds. BMCC distributes student stipends via Bank Mobile in most cases. However, it was found during the audit that some funds did not get fully transferred to Bank Mobile or Bank Mobile returned funds for student stipends that they were not able to get to the students. In our review of the bank reconciliations and clearing accounts during fieldwork it was found that there was about $45,000 in outstanding payments to students that had not been cashed. $26,456 of these payments were voided and not reissued and the remaining items were either just errors or were reissued to the students. Effect: Grant expenditures and revenues related to the program were reduced and students that had initially had funds awarded had these amounts rescinded. Cause: Most of the funds were distributed to all eligible students as part of the College?s plan to implement the program and some students were unaware that the funds were coming and did not respond to notices in the traditional manner. The controls in place to track the outstanding items noted that there were significant funds outstanding but there was not sufficient time to follow up with each individual student. Questioned Costs: None over the questioned cost threshold after adjustments above. Auditor?s recommendation: The College should implement additional processes to review, update, and verify student enrollment status and grant awards. Corrective Action to be Taken: For traditional financial aid and grant funds, awards are noted on a student award letter after verifying enrollment levels. For aid sent to students from the Education Stabilization Fund, aid awarded was not reflected on a student award letter and the aid was initially being sent to students without being requested by the student. This practice was discontinued during 2021-22 and any aid sent to students from the Education Stabilization Fund is now only done so upon request from the student. This helps to ensure students are expecting the funds and aware the funds are coming which has helped to ensure that the checks are subsequently cashed by the student or otherwise picked up by the student. In addition, as bank reconciliations are and will be done on a more timely basis, any issues with funds not getting fully transferred, or funds returned are addressed in a more timely manner. Anticipated Completion Date: This change in process was made at the beginning of Spring Term 2022 whereby unsolicited aid money from the Education Stabilization Fund are not awarded and sent to students but are only done so upon request of the student.

View Audit 39382

Finding 43807 (2022-003)

Significant Deficiency 2022

Blue Mountain Community College District

OR

Special Tests & Provisions Reporting Significant Deficiency

Audit Finding 2022-003 Condition and Criteria: Institutions are required to submit disbursement records to the COD that are accurate. The disbursement record reports the actual disbursement date and the amount of the disbursement. Institutions must report student disbursement data within 15 calendar...

Audit Finding 2022-003 Condition and Criteria: Institutions are required to submit disbursement records to the COD that are accurate. The disbursement record reports the actual disbursement date and the amount of the disbursement. Institutions must report student disbursement data within 15 calendar days after the institution makes a disbursement or becomes aware of the need to make an adjustment to previously reported student disbursement data or expected student disbursement data. Institutions may do this by reporting once every 15 calendar days, bi-weekly or weekly, or may set up their own system to ensure that changes are reported in a timely manner. However, during testing of the information submitted to COD it was noted that one student out of the 40 students tested where the disbursement date per the College?s records and the processing date at COD fell outside the mandatory 15-day reporting window. Effect: The College is not in compliance with the federal COD reporting requirements described in the OMB Compliance Supplement and required by the Department of Education. Cause: The College changed student information systems and Financial Aid staff during the prior year that caused delays when the information was submitted to COD, as well as impacting the accuracy of the information being reported. Questioned Costs: None reported Context/Sampling: The College disbursed Federal financial aid to approximately 515 students in the 2021-2022 school year. A non-statistical sampling of 40 students was selected for testing. Repeat Finding: Yes Auditor?s recommendation: The College should implement additional processes to review, update, and verify student disbursements are reported to COD accurately and timely. Corrective Action to be Taken: The student?s loans were not processed in COD (only) due to the DRI flag being set at False when in fact it should have been True because her money did disburse in April of 2022. This was an issue that was not working in CNS in Spring of 2022, the issue was fixed in CNS and we corrected the files in COD. Financial Aid performs reconciliation as required, but these students also did not show up on the reconciliation report out of CNS. This has also been fixed per Anthology. Anticipated Completion Date: This was fixed before Fall term began in September of 2022 Name and Title of Responsible Person: Danielle Hodgen, Director of Student Financial Services

View Audit 39382

Finding 43806 (2022-002)

Significant Deficiency 2022

Blue Mountain Community College District

OR

Special Tests & Provisions Reporting Significant Deficiency

Audit Finding 2022-002 Condition and Criteria: A school must return unearned funds for which it is responsible as soon as possible but no later than 45 days after the date of determination of a student?s withdrawal. However, during testing, three students were identified that had officially withdraw...

Audit Finding 2022-002 Condition and Criteria: A school must return unearned funds for which it is responsible as soon as possible but no later than 45 days after the date of determination of a student?s withdrawal. However, during testing, three students were identified that had officially withdrawn from classes and owed refunds, but the refund to Department of Education was past the 45 day period. Effect: The College is not in compliance with the federal refund requirements described in the OMB Compliance Supplement and required by the Department of Education. Cause: The College does not have an adequate process in place to notify financial aid of official withdrawals and the exceptions noted above were discovered by the college during the review of final grades, which was already past the 45 day period. The college also relies on the CNS import date as a control over these procedures but has fount that the import date is not always reliable. Questioned Costs: None reported Context/Sampling: The College disbursed Federal financial aid to approximately 515 students in the 2021-2022 school year. A non-statistical sampling of 40 students was selected for testing but only 2 refunds were found in that testing. The College does not issue vary many refunds, so we selected 7 additional items for an infrequently operating control. Repeat Finding: No Auditor?s recommendation: The school should implement a process to insure that withdrawals are communicated to financial aid immediately so they are aware of the refund calculations. Most of the refunds are for inadvertent over awards and notification of the withdrawal will assist in this issue as well. Corrective Action to be Taken: Students who officially withdraw from courses are required to fill out a Docusign form that is then submitted to the Academic Records department. Upon receipt of this form AR will process the withdrawal and make notes in Campus Nexus as to the date of withdraw (this is the current process as well). Financial Aid will be added to that process and those Docusign forms will be automatically forwarded to financial aid once they are processed. This way we will be able to make sure we stay within the day window for refunds. Financial aid continues to run the R2T4 report multiple times throughout the term to ensure there is plenty of time to process refunds within the 45 day mark. Additionally, our Conclusive system now has a total withdraw report available. Academic Records will give the financial aid director permission to run that report directly. The director will run this report along side the R2T4 report out of Campus Nexus to ensure we are capturing all students in a timely fashion. Students who unofficially withdraw (students who receive an FA grade at the end of the term) are not reported until the end of the term since students do have the ability to return at any time throughout the term to try and pass the class. The financial aid director has been working with the office of instruction to make sure this process is more clear and to offer trainings to faculty. We have been able to clean up the definition of an FA grade for faculty this past year, faculty have been asked to report attendance in week 9 of the quarter and this has helped with the last date of attendance reporting for Fall 2022- current term. Anticipated Completion Date: Granting permission to Conclusive reports should be completed by April 10-17, 2023. Financial aid shall start running that report in April 2023 once permission is granted. Adding Financial aid to the Docusign process will be completed by April 10, 2023. Working with the office of instruction to clarify the FA grade (unofficial withdraws) process began in summer of 2022 and is ongoing. Name and Title of Responsible Person: Danielle Hodgen, Director of Student Financial Services

View Audit 39382

Finding 43803 (2022-004)

Significant Deficiency 2022

East Jackson Community Schools

MI

Allowable Costs / Cost Principles Significant Deficiency

Finding: 2022-004 - Allowable Costs/Cost Principles ? Pay Rates Auditor Description of Condition and Effect: Of the 28 payroll disbursement selections tested, one employee was paid the incorrect payrate. As a result of this condition, an employee was underpaid for their services performed. Audito...

Finding: 2022-004 - Allowable Costs/Cost Principles ? Pay Rates Auditor Description of Condition and Effect: Of the 28 payroll disbursement selections tested, one employee was paid the incorrect payrate. As a result of this condition, an employee was underpaid for their services performed. Auditor Recommendation: We recommend that the District review its procedures for updating payrates in the payroll system to ensure they are accurate.. Corrective Action: Paper timesheets will be used to document any hourly pay not captured with the timecard system. This timesheet will list the hourly pay and the hours worked. These timesheets will be reviewed and approved by an administrator or appropriate designee. Contact Person: Donna Wahr, LEA Business Manager Due Date: June 30, 2023 Status: In process

View Audit 50791

Finding 43789 (2022-001)

Significant Deficiency 2022

Oakland University

MI

Reporting Subrecipient Monitoring Significant Deficiency

Finding Number: 2022-001 Condition: The quarterly report for the student portion of HEERF was not posted on the University's website within the timeframe allowed in one instance. Planned Corrective Action: The University agrees with the finding and recommendation. The University spent and accounted ...

Finding Number: 2022-001 Condition: The quarterly report for the student portion of HEERF was not posted on the University's website within the timeframe allowed in one instance. Planned Corrective Action: The University agrees with the finding and recommendation. The University spent and accounted for $75.6 million in HEERF grants appropriately and followed all applicable guidelines. The University also adhered to the various reporting guidelines that changed multiple times during the grant period, with the exception of this one untimely report posting to the Oakland University website. This was caused by personnel turnover that occurred at that time in multiple departments which were part of the process. This situation was unique and has been corrected. Contact person responsible for corrective action: James Hargett, Associate Vice President and Controller Anticipated Completion Date: Completed

View Audit 50536

Finding 43782 (2022-001)

Significant Deficiency 2022

Hobbs Municipal School District #33

NM

Cash Management Eligibility Reporting

Finding #2022-001 ? ALN 84.010, Title ? ISAS; L. Financial Reporting Corrective Action Planned: The District will implement controls to ensure reimbursement requests include proper expenditures. Anticipated Completion Date: November 2022

View Audit 48611

Finding 43716 (2022-001)

Significant Deficiency 2022

Point Loma Nazarene University and Subsidiary

CA

Internal Control / Segregation of Duties Student Financial Aid Significant Deficiency

Return of Title IV (R2T4) Calculations Planned Corrective Action: Our process for identifying unofficial withdrawals has been to nm a report through our Workday software to identify students who had unearned credits in a semester at the conclusion of that semester, after the grade due date. We...

Return of Title IV (R2T4) Calculations Planned Corrective Action: Our process for identifying unofficial withdrawals has been to nm a report through our Workday software to identify students who had unearned credits in a semester at the conclusion of that semester, after the grade due date. We would then reach out to the individual professors of the courses to determine if each student completed the semester or if they had unearned credits because they ceased attending at some point during the semester. If they ceased attending, we would determine if a Return of Title IV (R2T4) Calculation was needed and would complete it if necessary. In preparing for the Al 33 audit, the auditor requested: "If you have online or modular students, please provide a list of students who earned 0 credits or no showed in at least one of the online classes or modules from the registrar." While pulling together the list of students to send to the auditors, we determined that the repo11 we were using to identify unofficial withdrawals did not include students who had No Credit (NC) grades or Incomplete (I) grades. It was only pulling Failed (F) grades. In addition, the report only included students who had received F grades in all the courses for the semester; it did not include students who received 0 credits in one of the modules. The report was corrected and should enable PLNU to identify all the students who need to be reviewed going forward. In addition, we have added to our process instructions to run this report after the grades for module I are due, and after the grades for module 2 are due, rather than at the end of each semester. This will ensure that we catch any unofficial withdrawals in a timelier manner and will allow us to meet the 45-day deadline for any possible returns that must be made. Person Responsible for Corrective Action Plan: Jamie Asche, Director of Financial Aid Anticipated Date of Completion: 11/30/2022

View Audit 47842

Finding 43713 (2022-001)

Significant Deficiency 2022

Aiken County Commission on Alcohol and Drug Abuse

SC

HUD Housing Programs Significant Deficiency Internal Control / Segregation of Duties

SIFNIFICANT DEFICIENCY. 2022-001 SEGREGATION OF DUTIES. NAME OF CONTACT PERSON: JEFF MCLAIN, DIRECTOR OF FINANCE. CORRECTIVE ACTION: THE DUTIES WILL BE SEGREGATED AS MUCH AS POSSIBLE AND THE BOARD OF DIRECTORS WILL REMAIN INVOLVED IN REVIEWING THE FINANCIAL STATEMENTS OF THE COMMISSION. PROPOSED COM...

SIFNIFICANT DEFICIENCY. 2022-001 SEGREGATION OF DUTIES. NAME OF CONTACT PERSON: JEFF MCLAIN, DIRECTOR OF FINANCE. CORRECTIVE ACTION: THE DUTIES WILL BE SEGREGATED AS MUCH AS POSSIBLE AND THE BOARD OF DIRECTORS WILL REMAIN INVOLVED IN REVIEWING THE FINANCIAL STATEMENTS OF THE COMMISSION. PROPOSED COMPLETION DATE: MANAGEMENT WILL IMPLEMENT THE ABOVE ACTION IMMEDIATELY.

View Audit 47840

Finding 43689 (2022-002)

Significant Deficiency 2022

Christopher House

IL

Subrecipient Monitoring Equipment & Real Property Management Reporting

Finding Number: 2022-002 Condition: The SF-429 and SF-429-A reports were not filed for the year 2021. Planned Corrective Action: Management agrees with the recommendation and will designate two individuals to monitor federal award reporting deadlines and submission requirements to ensure all require...

Finding Number: 2022-002 Condition: The SF-429 and SF-429-A reports were not filed for the year 2021. Planned Corrective Action: Management agrees with the recommendation and will designate two individuals to monitor federal award reporting deadlines and submission requirements to ensure all required reports are filed. Management has subsequently submitted the 2021 reports to the federal agency. Contact person responsible for corrective action: Allison Gierman, Senior Accounting Manager Anticipated Completion Date: June 30, 2023

View Audit 48348

Finding 43669 (2022-006)

Significant Deficiency 2022

Detroit Transportation Corporation

MI

Subrecipient Monitoring Cash Management Significant Deficiency § 200.305

DTC had multiple key leadership changes shortly prior to and during the financial audit. DTC will ensure related policies and procedures are updated, staff trained, and documented evidence is maintained. DTC will comply with 2CFR section 200.305 requirements.

View Audit 44441

Finding 43637 (2022-001)

Significant Deficiency 2022

San Diego Workforce Partnership

CA

Significant Deficiency Internal Control / Segregation of Duties

2022 001 Internal Controls over Filing Reports to Grantors Significant Deficiency Federal Program WIOA Cluster Assistance Listing Numbers 17.258, 17.259, 17.278 WIOA Covid 19 Employment Recovery Assistance Listing Number 17.277 Auditor's Notes An effective system of internal controls over complia...

2022 001 Internal Controls over Filing Reports to Grantors Significant Deficiency Federal Program WIOA Cluster Assistance Listing Numbers 17.258, 17.259, 17.278 WIOA Covid 19 Employment Recovery Assistance Listing Number 17.277 Auditor's Notes An effective system of internal controls over compliance is required to ensure that grants are being administered properly. That system includes sufficient review and approval of significant aspects of the grant throughout the life of the grant. During the FY 2021 and 2022 audits, we noted several instances where reports were filed prior to appropriate review and approval. Given that the FY 2021 audit was not issued until late September 202 , this was a known issue during FY 2022 and will remain a finding in the current year. Due to the lack of timely review and approval, various reports had to be amended and resubmitted to the granting agency, causing delays in the submission of subsequent reports. Management's Response San Diego Workforce Partnership has revised our reporting to include the following data: Preparer Name, Preparer Date, Reviewer Name and Reviewer Date. The reports are reviewed by Management prior to submission with data elements documented and saved on our Sharepoint. A proper review process will help ensure data is complete and accurate, minimizing the need for modifications, revisions and submission of incorrect information. This is in effect as of Sept 30, 2022. The Controller and VP of Finance will be responsible in ensuring this system is followed.

View Audit 47503

Finding 43634 (2022-003)

Significant Deficiency 2022

River Kourt Apartments

OR

Procurement, Suspension & Debarment HUD Housing Programs Significant Deficiency § 200.318 § 200.320

Management?s Response and Planned Corrective Actions: 1. The name of the contact person(s) responsible for the corrective action a. Kathleen Broadhurst, Sr Director of Finance/ShelterCare b. Catherine Fisher, Controller/ShelterCare 2. The corrective action planned: a. Internal control document and p...

Management?s Response and Planned Corrective Actions: 1. The name of the contact person(s) responsible for the corrective action a. Kathleen Broadhurst, Sr Director of Finance/ShelterCare b. Catherine Fisher, Controller/ShelterCare 2. The corrective action planned: a. Internal control document and procedure that is consistent with the compliance requirement for: i. CFR ?200.318, General procurement standards Identify all requirements which the offerors must fulfill and all other factors to be used in evaluating bids or proposals ii. ?200.319, Competition. requirements will be met with documented procurement actions using strategic sourcing, shared services, and other similar procurement arrangements iii. ?200.320 Methods of procurement to be followed. 3. The anticipated completion date: a. New processes will be implemented by 05/01/2023.

View Audit 47500

Finding 43633 (2022-002)

Significant Deficiency 2022

River Kourt Apartments

OR

HUD Housing Programs Special Tests & Provisions Cash Management

Management?s Response and Planned Corrective Actions: 1. The name of the contact person(s) responsible for the corrective action a. Kathleen Broadhurst, Finance Director/ShelterCare b. Nathan Smith, Controller/Pinehurst Management 2. The corrective action planned: a. Implement additional internal co...

Management?s Response and Planned Corrective Actions: 1. The name of the contact person(s) responsible for the corrective action a. Kathleen Broadhurst, Finance Director/ShelterCare b. Nathan Smith, Controller/Pinehurst Management 2. The corrective action planned: a. Implement additional internal controls to ensure surplus cash is deposited to residual receipts within 60 days of year end as required by HUD and that replacement reserves are funded as required. i. The $5,830 that was due from 2020 was deposited to proper account on 2/22/2023. ii. Deposit $400 to the replacement reserve to cure the underfunding of the reserve as of 06/30/2022. iii. Reserve balances will be reviewed by staff account each month and the year end balances will be verified by the Accounting Manager or Controller. 3. The anticipated completion date: a. New processes will be implemented by 03/01/2023. Deposit to residual receipts for missed 2020 deposit and catch-up deposit for $400 to reserve for replacement for FY22 were completed 02/22/2023.

View Audit 47500

Finding 43626 (2022-004)

Significant Deficiency 2022

Jacobson Memorial Hospital Care Center and Subsidiary

ND

Special Tests & Provisions Significant Deficiency Matching / Level of Effort / Earmarking § 200.303

Finding 2022-004 Federal Agency Name: Department of Agriculture Program Name: Community Facilities Loans and Grants Federal Assistance listing #10.766 Finding Summary: One of the Hospital's required reserve accounts was underfunded by approximately $4,500. Responsible Individuals: Scott Brooks, ...

Finding 2022-004 Federal Agency Name: Department of Agriculture Program Name: Community Facilities Loans and Grants Federal Assistance listing #10.766 Finding Summary: One of the Hospital's required reserve accounts was underfunded by approximately $4,500. Responsible Individuals: Scott Brooks, CEO and Micaela Meyer, CFO Corrective Action Plan: Proper tracking of all reserve accounts will be put in place in order to make sure they are all properly funded throughout the year. Anticipated Completion Date: 6/30/2023

View Audit 47115

Finding 43624 (2022-003)

Significant Deficiency 2022

Jacobson Memorial Hospital Care Center and Subsidiary

ND

Reporting Significant Deficiency Matching / Level of Effort / Earmarking

Finding 2022-003 Federal Agency Name: Department of Agriculture Program Name: Community Facilities Loans and Grants Federal Assistance Listing #10.766 Finding Summary: Eide Bailly assisted in the preparation of our draft schedule of expenditures and federal awards and accompanying notes to the co...

Finding 2022-003 Federal Agency Name: Department of Agriculture Program Name: Community Facilities Loans and Grants Federal Assistance Listing #10.766 Finding Summary: Eide Bailly assisted in the preparation of our draft schedule of expenditures and federal awards and accompanying notes to the consolidated schedule of expenditures and federal awards. Responsible Individuals: Scott Brooks, CEO and Micaela Meyer, CFO Corrective Action Plan: It is not cost effective to have an internal control system designed to provide for a complete and accurate schedule of expenditures and federal awards. We requested that our auditors, Eide Bailly LLP, assist in the preparation of the schedule of expenditures. We have designated a member of management to review the drafted schedule of expenditures. Anticipated Completion Date: Ongoing

View Audit 47115

Finding 43561 (2022-003)

Significant Deficiency 2022

Montreat College

NC

Questioned Costs Student Financial Aid Eligibility

2022-003 Incorrect Direct Loans Disbursement Amount - Student Financial Aid Cluster Assistance Listing Number 84.007, 84.033, 84.063, 84.268, 84.038 Grant Period - Year Ended June 30, 2022 ...

2022-003 Incorrect Direct Loans Disbursement Amount - Student Financial Aid Cluster Assistance Listing Number 84.007, 84.033, 84.063, 84.268, 84.038 Grant Period - Year Ended June 30, 2022 Condition Found During our student file testing we noted four students out of forty were not disbursed the correct Direct Loans award. Based on the student?s enrollment status and need, the College over awarded Direct Loans to the students by $2,993. We consider this to be a significant deficiency relating to the Eligibility Compliance Requirement. Corrective Action Plan Due to the institutional policy, we have updated our process to check and recalculate all loans for the current semester in the following semester by the census date. Responsible Person for Corrective Action Plan Jeremy Hurse ? Director of Student Financial Services Deborah Beck ? Associate Director of Student Financial Services Implementation Date of Corrective Action Plan 01/16/2023

View Audit 44632 Questioned Costs: $1

Finding 43558 (2022-001)

Significant Deficiency 2022

The Estaugh T/a Medford Leas

NJ

Internal Control / Segregation of Duties Reporting Significant Deficiency § 200.303

Finding 2022-001 Condition For the reports tested, the Company excluded from patient care revenue the amount attributable to independent living and assisted living related services provided to residents. The Company also inadvertently used data from the wrong period when preparing the lost revenue c...

Finding 2022-001 Condition For the reports tested, the Company excluded from patient care revenue the amount attributable to independent living and assisted living related services provided to residents. The Company also inadvertently used data from the wrong period when preparing the lost revenue calculation. As a result of these adjustments, the lost revenue increased from $970,102 to $1,977,744. Additionally, the reports tested did not contain a documented review and approval of the reports prior to submission. Corrective Action Plan The Company agrees with the finding and will implement procedures to ensure an individual who is responsible for reporting will remain current on compliance requirements and review final reports and the related inputs prior to submission. Specifically, the Company will verify Residential Living (IL) revenues and Amortization Income are included in the lost revenue calculation. Name(s) of Contact Person(s) Responsible for Corrective Action Abby Loftus, Chief Financial Officer Anticipated Completion Date December 31, 2022

View Audit 39059

Corrective Action Plans

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