Corrective Action Plans

Finding 1214713 (2024-005)

Material Weakness 2024

MD

Reporting Significant Deficiency Matching / Level of Effort / Earmarking § 200.512

Corrective Action Plan: Management acknowledges the delay in submission of the audited financial statements, which was partly due to this being the organization’s first Single Audit and delays in completing the year-end close process. To address this, the organization will implement a structured yea...

Corrective Action Plan: Management acknowledges the delay in submission of the audited financial statements, which was partly due to this being the organization’s first Single Audit and delays in completing the year-end close process. To address this, the organization will implement a structured year-end closing timeline, including a detailed checklist, assigned responsibilities, and internal deadlines to ensure all reconciliations and journal entries are completed prior to the audit. Management will also establish a pre-audit review process and coordinate closely with auditors to ensure timely completion and submission to the Federal Audit Clearinghouse within required deadlines. Responsible Official: Abel Olivo, Executive Director, with support from the outsourced accounting firm Anticipated Completion Date: December 31, 2025

View Audit 401471

Finding 1214685 (2024-004)

Material Weakness 2024

City of Texas City, Texas

TX

Subrecipient Monitoring Reporting Internal Control / Segregation of Duties § 200.328

CSLFRF Reporting (ALN 21.027) Condition The required Treasury report was not submitted due to insufficient tracking mechanisms and lack of internal controls. Corrective Action Plan To ensure timely and accurate CSLFRF reporting, the City will: • Establish a Treasury reporting calendar with all requi...

CSLFRF Reporting (ALN 21.027) Condition The required Treasury report was not submitted due to insufficient tracking mechanisms and lack of internal controls. Corrective Action Plan To ensure timely and accurate CSLFRF reporting, the City will: • Establish a Treasury reporting calendar with all required deadlines. • Assign a designated preparer and reviewer for each reporting cycle. • Provide training on the Treasury reporting portal. • Implement a pre-submission checklist to ensure completeness and accuracy. • Conduct semiannual internal reviews of reporting processes and documentation. Responsible Staff Chief Financial Officer (CFO) Target Completion Date July 31, 2026

View Audit 401408

Finding 1214660 (2024-001)

Material Weakness 2024

UNIVERSITY OF NORTH CAROLINA HEALTH CARE SYSTEM

NC

Subrecipient Monitoring Reporting Significant Deficiency § 200.512

Views of Responsible Officials Management agrees with the federal award finding identified in the audit. The System Fund will file the audit reporting package shortly after issuance and ensure that any future audits are completed and filed timely, by working closely with audit partner and frequently...

Views of Responsible Officials Management agrees with the federal award finding identified in the audit. The System Fund will file the audit reporting package shortly after issuance and ensure that any future audits are completed and filed timely, by working closely with audit partner and frequently accessing the substantive status, stage of completion or any other pertinent aspect of the audit necessary to meet the filing deadline.

View Audit 401395

Finding 1214339 (2024-002)

Material Weakness 2024

Town of Limestone, Maine

ME

Reporting Significant Deficiency Internal Control / Segregation of Duties § 200.328 § 200.329

Concerning Finding 2024-002 Reporting Contact Person Responsible for Corrective Action: William Dobbins, Superintendent Corrective Action: The Limestone Public Schools will take the following actions to address finding 2024-002: Limestone Community School will strengthen internal controls over feder...

Concerning Finding 2024-002 Reporting Contact Person Responsible for Corrective Action: William Dobbins, Superintendent Corrective Action: The Limestone Public Schools will take the following actions to address finding 2024-002: Limestone Community School will strengthen internal controls over federal reporting to ensure all required reports are completed, submitted timely, and properly retained. The school will develop written procedures outlining reporting requirements for all federal programs, including ESSER (ALN 84.425). These procedures will identify responsible personnel, submission deadlines, and documentation retention requirements. Copies of all submitted federal reports, including Annual Performance Reports and Annual Performance and Expenditure Reports will be saved electronically and maintained in a centralized grant compliance file. The School will also maintain documentation confirming submission, such as submission receipts or screenshots from the online reporting system."Please note, all Invoices, and back up materials were available along with the draft of the final report. The final report was not obtainable due to the web page being closed. Also, the audit was competed half way through FY-26." Anticipated Completion Date: February 2, 2026

View Audit 401012

Finding 1214265 (2024-001)

Material Weakness 2024

Sacramento Lgbt Community Center

CA

Reporting Subrecipient Monitoring Significant Deficiency

Description of Finding: The Organization submitted its Audited Financial Statements and Single Audit report to the federal clearing house in May 2026, eight months after it was due. Statement of Concurrence or Nonconcurrence: The Organization concurs with this ﬁnding. In 2025, the Organization hired...

Description of Finding: The Organization submitted its Audited Financial Statements and Single Audit report to the federal clearing house in May 2026, eight months after it was due. Statement of Concurrence or Nonconcurrence: The Organization concurs with this ﬁnding. In 2025, the Organization hired a new accounting ﬁrm with a ﬁrm commitment to system integration to improve efficiency in month-end and year-end close, as well as upgrades to its time keeping and payroll system that allows for real time posting of allocated time directly to the accounting software. In prior years, this was a manual process. This automation will eliminate the lag time in posting payroll allocations to the general ledger and greatly reduce the end of year closing process timeline. David Heitstuman, Chief Executive Officer, Phone 916 442-0185, email David.heitsuman@sacccenter.org

View Audit 400996

Finding 1213989 (2024-005)

Material Weakness 2024

Exeter Township School District

PA

Reporting Subrecipient Monitoring Significant Deficiency

2024-005 REPORTING - SIGNIFICANT DEFICIENCY Federal Program Education Stabilization Fund - U.S. Department of Education passed through the Pennsylvania Department of Education COVID-19 - Elementary and Secondary School Emergency Relief Fund (ARP ESSER) ALN 84.425U; Contract #223-21-0141; Grant Perio...

2024-005 REPORTING - SIGNIFICANT DEFICIENCY Federal Program Education Stabilization Fund - U.S. Department of Education passed through the Pennsylvania Department of Education COVID-19 - Elementary and Secondary School Emergency Relief Fund (ARP ESSER) ALN 84.425U; Contract #223-21-0141; Grant Period 03/13/20 - 09/30/24 COVID-19 - ARP ESSER Learning Loss Set Aside ALN 84.425U; Contract #225-21-0141; Grant Period 03/13/20 - 09/30/24 Criteria The District is required to submit an annual performance report to the Commonwealth of Pennsylvania (the “State”) with data on expenditures, planned expenditures, subrecipients, and uses of funds, including for mandatory reservations. Condition During the year ended June 30, 2024, the District submitted a report for the funds used during the year ended June 30, 2023. The report submitted by the District contained expenditure amounts that did not agree to the amounts reported on the schedule of expenditures of federal awards for the year ended June 30, 2023 as well as other key reporting line items. Recommendation We recommend the District keep a reconciliation of grant awards available to expenditure incurred. The accurate use of funding source codes will assist in that process. We also recommend the District continue working toward more timely financial and compliance audits. Management Response When the district received the audit, the 2023 federal reports were already submitted. The District made the adjustments for non-allowable expenses in the 2023 SEFA and took out the non-allowable in the 2024 State reports. The District has begun using and reconciling funding source codes related to grants more timely.

View Audit 400862

Finding 1213903 (2024-004)

Material Weakness 2024

Redevelopment Authority of the County of Berks

PA

Procurement, Suspension & Debarment Subrecipient Monitoring Significant Deficiency

The Authority has revised its policy for Section 3 and will include the policy and requirements in all applicable agreements, pre-bid documents, and resulting contracts. Section 3 requirements will also be reviewed during pre-construction meetings for any applicable projects.

View Audit 400734

Finding 1213901 (2024-003)

Material Weakness 2024

Redevelopment Authority of the County of Berks

PA

Reporting Significant Deficiency § 200.512

While the Authority continues to be delinquent on the current year audit completion, a consulting firm was hired to assist with bringing records up to date. The Authority also had hired an assistant fiscal officer in the fall of 2021 and another assistant fiscal officer in the fall of 2022. As a res...

While the Authority continues to be delinquent on the current year audit completion, a consulting firm was hired to assist with bringing records up to date. The Authority also had hired an assistant fiscal officer in the fall of 2021 and another assistant fiscal officer in the fall of 2022. As a result of the hiring, job responsibilities have been re-assigned and data gathering for future audits will occur in a timely manner. Accounts have been reconciled through December 31, 2025 prior to the 2024 audit commencing. The Authority will continue to execute their plan to have the audits completed on a timely basis and expects to submit the audited financial statements and single audit reporting package for the year ended December 31, 2025 to the Federal Audit Clearinghouse timely.

View Audit 400734

Finding 1213897 (2024-002)

Material Weakness 2024

Redevelopment Authority of the County of Berks

PA

Cash Management Reporting Significant Deficiency § 200.307

The Authority implemented a new policy to track and document program income: a. Upon receipt of program income, it shall be entered individually into IDIS and assigned to an activity or activities within fifteen (15) calendar days of receipt. b. At the next request for funds for an activity which in...

The Authority implemented a new policy to track and document program income: a. Upon receipt of program income, it shall be entered individually into IDIS and assigned to an activity or activities within fifteen (15) calendar days of receipt. b. At the next request for funds for an activity which includes funding from program income, program income shall be used prior to requesting federal funds for the activity. c. The request for federal funds shall be prepared by the Fiscal Officer and reviewed by one of the Assistant Fiscal Officers to determine if program income is being used prior to the request of federal funds. d. If it has been determined and documented that program income is being used prior to the request for federal funds, the request shall be forwarded to the Executive Director for approval. This finding has since been resolved in 2025, with a new policy developed and implemented on April 1, 2025.

View Audit 400734

Finding 1213895 (2024-001)

Material Weakness 2024

Redevelopment Authority of the County of Berks

PA

Internal Control / Segregation of Duties Subrecipient Monitoring Reporting § 200.303

In general, management agrees with the finding. It should be noted that internal controls for supervisory review of reporting requirements were in place but were not written controls or processes. Reporting for the CDBG Program is accomplished through the preparation of the annual Comprehensive Annu...

In general, management agrees with the finding. It should be noted that internal controls for supervisory review of reporting requirements were in place but were not written controls or processes. Reporting for the CDBG Program is accomplished through the preparation of the annual Comprehensive Annual Performance and Evaluation Report (CAPER). Written policies and procedures for the CAPER have been developed. Reporting for the Emergency Rental Assistance Program is accomplished through an online reporting system of the U.S. Treasury and by email to the Pennsylvania Human Services Department. This finding has since been resolved in 2025, with a new policy developed and implemented on December 12, 2025.

View Audit 400734

Finding 1213844 (2024-005)

Material Weakness 2024

The Salvation Army Golden State Division

CA

Period of Performance Subrecipient Monitoring Allowable Costs / Cost Principles § 200.308 § 200.309 § 200.403

Planned Corrective Action: The Division will implement their control of ensuring that they only charge allowable costs incurred during the approved budget period of a federal award’s period of performance or will obtain authorization from the grantor for any costs incurred before the grant's approve...

Planned Corrective Action: The Division will implement their control of ensuring that they only charge allowable costs incurred during the approved budget period of a federal award’s period of performance or will obtain authorization from the grantor for any costs incurred before the grant's approved budget period. Anticipated Completion Date: 9/30/2026 Responsible Contact Person: Al Agpoon, Golden State Division Controller

View Audit 400681

Finding 1210992 (2024-017)

Material Weakness 2024

State of Mississippi

MS

Special Tests & Provisions Student Financial Aid Allowable Costs / Cost Principles

Rndlng 2024-017: Spedal Tests and Provisions Significant Defldency In Internal Control over Compliance Crit eria: Per 45 CFR 1356.2l (ml(l ), in meeting the requirements of section 47l(a)(ll) of the Act, the tilie IV·E agency must review at reasonable, specifi c, tim e-limi tedperiods, to be establi...

Rndlng 2024-017: Spedal Tests and Provisions Significant Defldency In Internal Control over Compliance Crit eria: Per 45 CFR 1356.2l (ml(l ), in meeting the requirements of section 47l(a)(ll) of the Act, the tilie IV·E agency must review at reasonable, specifi c, tim e-limi tedperiods, to be established by the agency, the amount of the payments made for foster care maint enance to assure their continued appropriateness , and that the amount made to a licensed or approved relative or kinship foster famil y home is the same as th e amount that would have been made if the child was placed in a licensed or appr oved non-relative foster family home. Based on the Olicia Y. Lawsuit' s Mi ssissippi Sett.lem ent Agreement and Reform Plan, MOCPS is requ ired to review and publi sh u pdated! foster boardpayment rates every two years. Per 45 CFR 75.303(a), non-Federal entities expending HHS awards must establish and maintain effective internal contro ls over comp liance with Federal states, regulations, and the terms and conditions of the Federal award. Condit ion: Our audit procedures over foster care board payments disclosed that the approved payment board rates were unattai nable . The rates had not been updated from the rate approved in 2019 and no documentation could be provided for the required biannual review. Furt her, therate applied for children aged 0- 8 were not the most recent approved rates resulting in underpayments to foster families. Perspective: Below are the exceptions noted in our testing of foster care board payments for proper allocation of the rates and their approval. The samples were not statistically valid. • One of tenrate categories did not have the proper rateappliedbased on provided board rates resulting in twenty-six of forty sample payment Items being underpaid. • MDCPS did not maintain adequate documentation for the required rate review. Personnel Responsible for Corrective Action: Name: A/asha King Title: Grants Accounting Team Lead Email: Aiasha.King@mdcps.ms.gov Phone Number: 601-359-4016 Co rr ective Acti on Plan: Prior to lhe Single Audit, MDCPS im plemented the Foster Board Payment Review Standard Operating Proce dure (2.15.9.1) to ensure payment rates are verified and approved prior to issuan ce. Annual reviews of board payment rates will be conducted to ensure alignment with approved rates. Antldpatecl Completion Date: Completed as of March 19, 2026.

View Audit 400294

Finding 1210991 (2024-016)

Material Weakness 2024

State of Mississippi

MS

Student Financial Aid Eligibility Significant Deficiency

Finding 2024 - 016: Ellglblllty Significant Defldency In Internal Control Over Compliance Criteria: Per 45 CFR 75.1356.21, .22 and .30, a title IV-E agency must determine eligibility of foster homes and foster children prior to providing foster care maintenance payments. Per 45 CFR 7S. 303(a), non-F...

Finding 2024 - 016: Ellglblllty Significant Defldency In Internal Control Over Compliance Criteria: Per 45 CFR 75.1356.21, .22 and .30, a title IV-E agency must determine eligibility of foster homes and foster children prior to providing foster care maintenance payments. Per 45 CFR 7S. 303(a), non-Federal entities expending HHS awards must establish and maintai n effective inte rnal contro ls over compliance with Federal states, regulat ions, and the terms and conditions of the Federal award. MDCPS policies and procedures require a two-level approval for child eligibility determinations . A Social Worker comp letes an eligibility packet for each child and signs of f before submitting the eligibility packet to the Eligibility department. An Eli gibility Worker reviews and approves the eligibility packets prior to submitt ingthe packet for the El i gibility Supervisor's review. The Eli gibility Supervisor makes the necessary adjustments prior to final approval. Condition: Our audit procedures over eligibility packets disclosed a lack of approval from the Social Worker and second-level approval from the Eligibility Supervisor. Perspective: Below are the exceptions noted in our testing of eligibility for proper approval of eligibility packets. The sample was not statistically valid. • Eleven of forty sample items did not have proper Social Worker sign off. • Twenty-eight of forty sample had only one level of approval documented. All eligibility determinations included at least one level of approval, but MCOPS's policies were not implemented consistently. Personnel Responsib le for Corrective Action: Name: Kristi Plotner Title: Deputy Commissioner of Care Management Email : Kristi .Pl otner@md cps.ms.gov Phone Number: 769-352-5532 Corrective Action Plan: MDCPS will enforce our policy requiring approval of eligibility packets to ensure all eligibility packets are complete and accurate. The Agency is also evaluating its existing policy to strengthen internal controls while improving operational efficiency. As part of this effort, we are reviewing eligibility determination procedures to determine whether to move to a single level of approval model. The objective is to ensure that eligibility determinations remain accurate, well-documented, and compliant with federal requirements, while aligning internal processes with best practices in risk based control design. Antidpated Completion Date: Policy enforcement completed as of March 31, 2026 Agency review of eligibility determination procedures to be completed as of Juty 1, 2027. Agency will continue to follow current policy in effect.

View Audit 400294

Finding 1210990 (2024-015)

Material Weakness 2024

State of Mississippi

MS

Allowable Costs / Cost Principles Student Financial Aid Significant Deficiency

Finding 2024- 015: Allowable Costs/ Cost Principle Signifi cant Deficiency In Internal Contro l Over Compliance Criteria: Per 45 CFR 1355.57(d), a title N·E agency must allocate project costs in accordance with applicab le HHS regulations and other guidance. Per 45 CFR 75.303(a), non-Federal entitie...

Finding 2024- 015: Allowable Costs/ Cost Principle Signifi cant Deficiency In Internal Contro l Over Compliance Criteria: Per 45 CFR 1355.57(d), a title N·E agency must allocate project costs in accordance with applicab le HHS regulations and other guidance. Per 45 CFR 75.303(a), non-Federal entities expending HHS awards must establish and maintain effective internal con trols over compliance with Federal sta tes, regu lations, and the terms and conditionsof the Federal award. Condition: Our audit procedures over administrative services disclosed that MDCPS lacked proper policies and procedures over data editing or modification of the cost allocation system. Perspe ctive: Per discussion with management, it was determined that no formal policies and procedures were established for data editing or modifications. Personnel Responsible for Corrective Action : Name: Christopher Roy Title : Deputy Director to the CFO Email: Christopher.Roy@mdcps.ms.gov Phone Number: 601-359-4043 Corrective Action Plan: MDCPS Is strengthening segregation of duties within the Cap Plus system by limiting administrative privileges and ensuring supervisory approval is documented for all cost allocation changes. AntJdpated Completion Date: Permissions were corrected and completed as of March 31, 2026. Documented process and policy anticipated completed May 30, 2026.

View Audit 400294

Finding 1210989 (2024-014)

Material Weakness 2024

State of Mississippi

MS

Allowable Costs / Cost Principles Student Financial Aid Significant Deficiency

Finding 2024 - 014: Allowable Costs/ Cost Prlnclple Significant Defldency In Internal Control Over Compliance Criteria: Per 45 CFR 1355.57(d), a title IV-E agency must allocate project costs in accordance with applicable HHS regulati ons and other guidance. Per 45 CFR 75.303(a), non-Federal entities...

Finding 2024 - 014: Allowable Costs/ Cost Prlnclple Significant Defldency In Internal Control Over Compliance Criteria: Per 45 CFR 1355.57(d), a title IV-E agency must allocate project costs in accordance with applicable HHS regulati ons and other guidance. Per 45 CFR 75.303(a), non-Federal entities expending HHS awards must establish and maintain effective internal controls over compliance with Federal states, regulations, and the terms and conditions of the Federal award. Condition: Our audit procedures over administrative services disclosed that MDCPS lacked proper controls over employee training costs expended through a specific vendor. Perspective: Below are the exceptions noted in our testing of administrat ive services for appropriate review over cost allocation . The samples were not stat ist ically valid. One hundred percent of the costs charged for employeetraining using a specific vendor (four transactions) were te.ste d, and four out of four transactions lacked appro priate review. Personnel Responsible for Corrective Action: Name: Christopher Ray Title : Depuly to 1he Chief Financial Officer Email: christoher.Roy@mdcps.ms.gov Phone Number: 601-359-4043 Corrective Action Plan: MDCPS will enforce our policy requiring approval of the grant management's team's review of appropriate detailed documentation provided by vendor payments. Antldpated Completion Date: Completed as of March 31, 2026.

View Audit 400294

Finding 1210988 (2024-013)

Material Weakness 2024

State of Mississippi

MS

Reporting Student Financial Aid Subrecipient Monitoring

Finding 2024- 013: Terminated User Access Not Removed Timely Significant Deficiency In Internal Control Over Financial Reporting Criteria: Per 45 CFR 75.303(a), non-Federal entitles expendingHHS awards must establish and maintain effective internal controls over compliance with Federal states, regul...

Finding 2024- 013: Terminated User Access Not Removed Timely Significant Deficiency In Internal Control Over Financial Reporting Criteria: Per 45 CFR 75.303(a), non-Federal entitles expendingHHS awards must establish and maintain effective internal controls over compliance with Federal states, regulati ons, and the terms and conditions of the Federal award. Management must mainta in effective user access controls over financia l reporting systems. This Includes promptly removing or disabling access for terminated users and periodically reviewing user access to confirm it aligns with current employment status and job responsibilities. Condition: Testing of IT general controls identifiedinstances where terminated employees' user accounts or financial application access remained active beyond the termination date. MDCPS did not disable terminated user access or remove related application rights in a timely manner. Perspective: During our review of general IT controls, the auditor received a list of terminated employees. Of the 11 employees presented, 6 maintainedaccess to MACWIS after termination.Further, during the performance of a process walkthrough,it was noted that the former chief financial officer was still active in CapPlus and SPHARS. Personnel Responsiblefor Corrective Action: Nome: Shannon Rushton (Employee Seporotlon SOP) Title : Deputy Commissionerof Human Capitol Email: Shannon.Rushton@mdcps.ms.gov Phone Number: 601-359-2696 Name: Christopher Ray (CapPlus User Termination) Title: Deputy Director to the CFO Email: Christopher.Roy@mdcps.ms.gov Phone Number: 601-359-4043 Corrective Action Plan: MDCPS has reinforcedthe EmployeeSeparation St andard Operating Procedure(2.19.2.2) to ensure all system access is removed promptly upon employee separation. Human Resources will notify system administrators immedai tely upon employeetermination, and system administrators will disable all associated application access no later than th e employee's final day of employment. Human Resources will conduct periodic user access reviews to ensure procedures are properly Imp lemented. The Finance Division will ensure the cap Plus software's access and penn1ss1ons are monitored and maintained by the agency with assistance from Interactive Voice Application (IVA). Upon a Cap Plus user's termination , they will be removed from the Cap Plu s software upon their last day of employment or the removal of th eir dutie.s by the agency. These permissions do not require IT or Human Resource control as Cap Plus i s independent of all accounting, payroll, and HR software. Antldpated Completion Date: Empl oyee Separation SOP effectiveas of July 22, 2025. CapP lus user's termination procedures effective as of March 31, 2026.

View Audit 400294

Finding 1210976 (2024-038)

Material Weakness 2024

State of Mississippi

MS

Subrecipient Monitoring Internal Control / Segregation of Duties Significant Deficiency

SUBRECIPIENT MONITORING ALN Number 93.558 Temporary Assistance for Needy Families (TANF) 2024-038 Strengthen Controls over On-Site Monitoring for the Temporary Assistance for Needy Families (TANF) Program. Federal Award No. All Current Active Grants Response: MDHS concurs that controls should be str...

SUBRECIPIENT MONITORING ALN Number 93.558 Temporary Assistance for Needy Families (TANF) 2024-038 Strengthen Controls over On-Site Monitoring for the Temporary Assistance for Needy Families (TANF) Program. Federal Award No. All Current Active Grants Response: MDHS concurs that controls should be strengthened over On-Site monitoring for the TANF program. Corrective Action Plan: 1. Strengthen Controls over On-Site Monitoring for the TANF Program A. The Office of Compliance. Division of Monitoring has made significant strides in strengthening controls over the subrecipient monitoring process. The Division continues to review and update the processes and procedures as necessary to ensure processes are adequate and effective. Staff are constantly notified/trained on updates to policies. procedures. and regulations to ensure continued compliance with monitoring the agency's subgrant agreements. B. Responsible Party: Laketha Gilmore. Director of Monitoring and Kameron Harris, Chief Compliance Officer C. Completion Date: The corrective action has been implemented and is ongoing.

View Audit 400294

Finding 1210964 (2024-009)

Material Weakness 2024

State of Mississippi

MS

Reporting Procurement, Suspension & Debarment Subrecipient Monitoring § 200.303

Assistance Listing No. 17.258, 17.259, 17.278 and Workforce Innovation and Opportunity Act Cluster Type of Compliance Requirement: Reporting - FFATA Response: There is no disagreement with the audit finding. Corrective Action Plan: MDES agrees that the FSRS system generated reports provided to CLA d...

Assistance Listing No. 17.258, 17.259, 17.278 and Workforce Innovation and Opportunity Act Cluster Type of Compliance Requirement: Reporting - FFATA Response: There is no disagreement with the audit finding. Corrective Action Plan: MDES agrees that the FSRS system generated reports provided to CLA did not indicate the date of submission and therefore CLA was unable to determine if the reports were submitted timely. MDES will strengthen controls to ensure that future system generated reports have a confirmed submission date documented. Name(s) of the contact person(s) responsible for corrective actions: Contact person(s) responsible: Tyler Berch Contact Phone number: 601-321-6214

View Audit 400294

Finding 1210963 (2024-010)

Material Weakness 2024

State of Mississippi

MS

Eligibility Significant Deficiency Matching / Level of Effort / Earmarking § 200.303

Assistance Listing No. 17.258, 17.259, 17.278 and Workforce Innovation and Opportunity Act Cluster Type of Compliance Requirement: Eligibility Response: There is no disagreement with the audit finding. Corrective Action Plan: MDES agrees with the finding and will strengthen controls around WIOA elig...

Assistance Listing No. 17.258, 17.259, 17.278 and Workforce Innovation and Opportunity Act Cluster Type of Compliance Requirement: Eligibility Response: There is no disagreement with the audit finding. Corrective Action Plan: MDES agrees with the finding and will strengthen controls around WIOA eligibility to ensure documentation is complete and in order. Name(s) of the contact person(s) responsible for corrective actions: Contact person(s) responsible: Robert Bock Contact Phone number: 601-321-6478

View Audit 400294

Finding 1210958 (2024-008)

Material Weakness 2024

State of Mississippi

MS

Reporting Matching / Level of Effort / Earmarking Procurement, Suspension & Debarment § 200.303

Compliance Finding on FFATAReporting Reference No. 2024-008 Dear Auditor White: Pursuant to the policies and procedures governing audits of state agencies, I am hereby submitting our response to a finding made during the recent audit of the Mississippi Development Authority ("MDA") concerning the re...

Compliance Finding on FFATAReporting Reference No. 2024-008 Dear Auditor White: Pursuant to the policies and procedures governing audits of state agencies, I am hereby submitting our response to a finding made during the recent audit of the Mississippi Development Authority ("MDA") concerning the reporting requirements under the "Federal Funding Accountability and Transparency Act" ("FFATA"). Specifically, the following determination was made: AUDIT FINDING: FFATA reporting During Fiscal year 2024, subawards were obligated on February 20, 2024, should have been reported to FSRS by April 30, 2024. MDA could not provide support that required FFATA reporting was completed by April 30, 2024 per SAM.gov, ten of the ten subawards selected for testing were not reported to FSRS until 7/31/2024. 2024-008: We recommend that MDA develop internal controls and procedures to ensure that all required subawards are reported to SAM.gov in accordance with FFATA reporting requirements. Response: During the period in question, the General Services Administration ("GSA") began the process of converting the Federal Subaward Reporting System ("FSRS") into the System for Award Management ("SAM.gov"). As of March 8, 2025, FSRS was formally retired by GSA; POST OFFICE BOX 849 • JACKSON, MISSISSIPPI 39205-0849 TELEPHONE (601) 359-3449 • FAX (601) 359-2832 • www.mississippi.org therefore, it was no longer available to determine the status of any information which once resided within it. It should be noted that, per GSA, all "data entered and saved into FSRS.gov by the deadline will be moved to SAM.gov and will be available beginning March 8, 2025." The auditors first brought the deficiency to MDA's attention on May 25, 2025. By this time, FSRS was inaccessible to detennine what reporting had been made prior to the conversion. MDA produced a printout showing that the required information was entered into the FSRS system for the grants, complying with FFATA. Furthermore, MDA presented a note published by GSA on April 25, 2025, which stated under the heading "Subaward and Subcontract Search" that it had " resolved an issue where there were missing reports from the Subaward and Subcontract search results." This note clearly establishes that there were data/reports lost in the conversion process. Upon lea rning of the deficie ncy, MDA reported the same to GSA; however, no response addressing the issue has been received. Con-ective Action Plan: Because no specific policy or procedure exists addressing FFATA repo rting, MDA is developing a specific policy and procedure to ensure all requirements of the law are met. This policy will adopt the deadline for filing the required information in SAM.gov by the end of the month following the month in which MDA makes a subgra nt greater than or equal to $30,000. Furthe rmore, MDA will screen capture all reports, with proper documentation of the date of submitta l, and place this documentation into the grant file and the electronic file system, as well as maintain a separate FFATA reporting file for each fiscal year. This policy and procedure will be finalized within the next thirty (30) days. Charles L. Bea rman, the director of the Community Incentives Division of MDA, is responsible for this con-ective action. If you should have any question s conce rning this matter, please contact me. I want to thank you and your team for your service to our state and for your cooperation in this regard

View Audit 400294

Finding 1210956 (2024-029)

Material Weakness 2024

State of Mississippi

MS

Allowable Costs / Cost Principles Subrecipient Monitoring Eligibility § 200.303

The Department should review and enhance its procedures and internal controls to ensure that it charges expenditures to the program that are incurred within an award’s allowable period of performance. Response: The Department concurs with the finding and the need to enhance procedures and strengthen...

The Department should review and enhance its procedures and internal controls to ensure that it charges expenditures to the program that are incurred within an award’s allowable period of performance. Response: The Department concurs with the finding and the need to enhance procedures and strengthen controls over processing expenditures to ensure compliance with the awards’ period of performance. Corrective Action: The program will enhance procedures and strengthen controls to ensure expenditures presented for payment are allowable and within the awards’ period of performance. Program leadership will develop and document an internal expenditure review process to ensure a complete review of presented expenditures for payment is completed prior to submission to the agency’s Accounts Payable Department for processing. Name of contact person responsible for the corrective action: Jameshyia Ballard Anticipated date for completion of corrective action: September 30, 2026

View Audit 400294

Finding 1210955 (2024-028)

Material Weakness 2024

State of Mississippi

MS

Eligibility School Nutrition Programs Significant Deficiency § 200.303

The Department should review and update its procedures and controls to ensure that only eligible participants receive benefits under the program. Eligibility documentation should be maintained and readily available for audit. Response: The Department concurs with the finding and the need to strength...

The Department should review and update its procedures and controls to ensure that only eligible participants receive benefits under the program. Eligibility documentation should be maintained and readily available for audit. Response: The Department concurs with the finding and the need to strengthen controls over eligibility processing to ensure required documentation is obtained and maintained for each participant to support program eligibility. Corrective Action: The program will develop an internal tracking and retention system to maintain eligibility documentation for participants to ensure accessibility when needed. Documentation will be maintained in accordance with program requirements. Name of contact person responsible for the corrective action: Jameshyia Ballard Anticipated date for completion of corrective action: September 30, 2026

View Audit 400294

Finding 1210737 (2024-002)

Material Weakness 2024

Shenandoah Area Agency on Aging, INC

VA

Reporting Significant Deficiency Matching / Level of Effort / Earmarking

Management agrees with the finding. Management plans to implement a process to ensure that the AMR report will be submitted accurately. If the Federal Audit Clearinghouse has questions regarding this plan, please call Cindy Donaldson, Director of Finance at 540-635-7141.

View Audit 400030

Finding 1208851 (2024-002)

Material Weakness 2024

City of Bloomington

IN

Subrecipient Monitoring Reporting Internal Control / Segregation of Duties

Information on the federal program: Federal Agency: Department of the Treasury Pass-Through Entity: N/A – Direct Grant Federal Program: Coronavirus State and Local Fiscal Recovery Funds (CSLFRF) Assistance Listing Number: 21.027 Compliance Requirement: Reporting Audit Findings: Significant Deficienc...

Information on the federal program: Federal Agency: Department of the Treasury Pass-Through Entity: N/A – Direct Grant Federal Program: Coronavirus State and Local Fiscal Recovery Funds (CSLFRF) Assistance Listing Number: 21.027 Compliance Requirement: Reporting Audit Findings: Significant Deficiency, Noncompliance Condition: City of Bloomington completed quarterly reporting in a timely manner. However, the reports did not have evidence of segregation of duties and the cumulative expenses stated on the report did not agree to the cumulative expenditures reported on previous SEFAs. Context: During our testing procedures over CSLFRF reporting, we noted that segregation of duties is not present in the Federal reporting process. The Deputy Controller prepared and submitted the reports without a secondary review taking place. As a result, the City did not report cumulative expenditures for the grant that were consistent with the expenditures reported on the SEFA. Views of Responsible Officials and Planned Corrective Actions: Management agrees with the finding and has already implemented a policy effective third quarter of 2025 to ensure a documented two-person review process and reconciliation of costs to the report. Responsible party and timeline for completion: The Controller is responsible for overseeing the implementation of the corrective action plan and will ensure the appropriate personnel are involved in the review and reconciliation process. The corrective action plan has already been implemented effective for the third quarter of 2025.

View Audit 399810

Finding 1208804 (2024-008)

Material Weakness 2024

Metra - Commuter Rail Division & Commuter Railroad Corporation

IL

Subrecipient Monitoring Reporting Significant Deficiency § 200.511 § 200.512

Finding Reference: 2024-008 Finding Title: Noncompliance and Significant Deficiency, Data Collection Form CAP Contact Persons: • John Morris, Chief Financial Officer, Financial Affairs, (312) 322-6420 • Joseph Psioda, Controller, Financial Affairs, (312) 322-6346 Planned Corrective Actions: 1. Submi...

Finding Reference: 2024-008 Finding Title: Noncompliance and Significant Deficiency, Data Collection Form CAP Contact Persons: • John Morris, Chief Financial Officer, Financial Affairs, (312) 322-6420 • Joseph Psioda, Controller, Financial Affairs, (312) 322-6346 Planned Corrective Actions: 1. Submission of Federal Reporting Package: Management will implement procedures to ensure the timely completion and submission of the annual audit, reporting package, and data collection form. This will include establishing a detailed audit timeline with interim milestones, strengthening coordination among departments responsible for required data and information, and proactively monitoring federal reporting deadlines. Management will also develop contingency plans to address delays in complex audit areas to minimize the risk of future reporting delays. These procedures will be implemented for the 2025 audit cycle to ensure timely submission to the Federal Audit Clearinghouse. Anticipated Completion Date: 06/30/2026

View Audit 399665

Corrective Action Plans

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