Corrective Action Plans

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Item # 2024-02 Indirect Costs Incorrectly Allocated to Federal Award (Significant Deficiency in Internal Control over Federal Major Program) Criteria: Under Uniform Guidance regulations and per the terms of the federal award, the de minimis 10% indirect cost rate for indirect cost allocations must...
Item # 2024-02 Indirect Costs Incorrectly Allocated to Federal Award (Significant Deficiency in Internal Control over Federal Major Program) Criteria: Under Uniform Guidance regulations and per the terms of the federal award, the de minimis 10% indirect cost rate for indirect cost allocations must be used on federal award expenditures. The Guidance also prohibits application of 10% de minimis rate on all subgrants in excess of $25,000 during the period of performance. Condition: Based on the results of our audit testing, we noted indirect costs were allocated incorrectly during the grant period. The total known questioned costs are $1,142. Cause: Management failed to charge indirect costs correctly on the federal subaward during the year ended June 30, 2024. Effect: The effect of the condition was $1,142 in known questioned costs charged to two federal subawards during the year ended June 30, 2024. Auditor’s Recommendation: Management should perform a thorough analysis of the indirect cost allocation to ensure it is reasonable and calculated correctly in accordance with the Uniform Guidance Regulation. Views of Responsible Officials and Planned Corrective Actions: Management understands that indirect expenses incurred on federal awards must be reviewed and allocated appropriately. Management will ensure that it properly allocates indirect costs in accordance with Uniform Guidance and the terms of its federal awards.
View Audit 328788 Questioned Costs: $1
2024-002 Initial Fiscal Year End, 2024 Summary of Finding- During the audit, it was noted that the University's Gramm-Leach-Bliley Act Policy did not fully address all of the requirements as described by 16 CFR 314.4. In addition, the application of the comprehensive information security program was...
2024-002 Initial Fiscal Year End, 2024 Summary of Finding- During the audit, it was noted that the University's Gramm-Leach-Bliley Act Policy did not fully address all of the requirements as described by 16 CFR 314.4. In addition, the application of the comprehensive information security program was not effectively administered by the University during the 2024 year. An updated policy was put into place in February 2024, which addressed several of the deficiencies noted in the existing policy, but not all. Name and Title of Responsible Contact Person(s)- Sara Shepherd, Vice President for Finance Corrective Action Plan Summary-The university recently reviewed the Gramm-Leach-Bliley Act Policy and has put in place controls and practices to effectively monitor antl administer the policy. In April 2024, we hired an IT company to help with various campus needs, including data compliance procedures and security measures. The company has been reviewing our current policies and making recommendations to implement appropriate safeguards to keep the university up to date and compliant. We have already installed multi-factor authentication features for our software systems, and there are more updates to come. In July 2024, we received a notice of compliance from the Federal Student Aid regarding our corrective action procedures for the Gramm-Leach-Bliley Act. Anticipated Completion Date- July 1, 2025
Mengel, Metzger, Barr & Co. LLP (MMB) recommended management review the NYSED Grants Finance reports via the NYSED website to determine the reimbursement payments received during the applicable reporting period and agree the amounts per the website to the total amounts shown in the Education Stabili...
Mengel, Metzger, Barr & Co. LLP (MMB) recommended management review the NYSED Grants Finance reports via the NYSED website to determine the reimbursement payments received during the applicable reporting period and agree the amounts per the website to the total amounts shown in the Education Stabilization Fund Annual Reporting. Corrective Action: – Management will ensure that the reporting method utilized for any further Annual Education Stabilization ESSER Fund reports will be completed on a cash basis. Anticipated Completion Date: The corrective action will be implemented by February 2025 Person responsible for implementation: Anne Culver, Finance & HR Manager
Finding Reference Number: 84.425U ARP ESSER Description of Finding: Vertus Charter School was required to submit the Education Stabilization Fund Annual Reporting to New York State Education Department. It was found that Vertus Charter completed the reporting based on cash expenditures made during t...
Finding Reference Number: 84.425U ARP ESSER Description of Finding: Vertus Charter School was required to submit the Education Stabilization Fund Annual Reporting to New York State Education Department. It was found that Vertus Charter completed the reporting based on cash expenditures made during the required period of July 1, 2022, to June 30, 2023, and not based on the cash expenditures related to cash received during the stated required reporting period. Statement of Concurrence or Nonconcurrence: Vertus Charter School agrees with the audit finding. Corrective Action: Immediate Actions Taken: 1. Upon identification of the issue, the organization immediately reviewed the instructions to complete the Education Stabilization Fund Annual Reporting and compared it to the report submitted to identify the discrepancy. 2. The organization will determine appropriate steps to correct the report and/or other actions based on guidance provided by New York State Education Department. Root Cause Analysis: The reporting error occurred because there was a misinterpretation of the reporting methodology required to file the ESF Annual Report. Instead, the organization used the reporting methodology required to file the Annual ESSA Financial Transparency Report – Charter School Actual Expenditures, whereby the actual cash expenditures made during the reporting period are reported, vs. reporting expenditures made using the cash received under the program during the reporting period. Planned Actions to Prevent Recurrence: 1. Training for Staff: a. All staff responsible for preparing and submitting financial reports will undergo mandatory training on federal reporting requirements. Responsible Party: Outsourced Chief Financial Officer Timeline: Complete by January 15, 2025 2. Revised Reporting Procedures: a. The organization will ensure that information reported in the ESF Annual Report is based on the correct accounting methodology in accordance with instructions from the New York State Education Department and the U.S. Department of Education requirements. Responsible Party: Outsourced Chief Financial Officer Timeline: Effective immediately Name of Contact Person: Julie Locey, Chief Education Officer, 585-747-8911. jlocey@vertusschool.org Projected Completion Date: All corrective actions will be completed by February 15, 2025. If there are any questions regarding this Plan, please call me at 585-747-8911.
Common Origination and Disbursement (COD) Reporting Planned Corrective Action: Procedures have been implemented to ensure that disbursement reporting to COD are reflective of the actual disbursement dates and amounts in the student information system. Person Responsible for Corrective Action Pl...
Common Origination and Disbursement (COD) Reporting Planned Corrective Action: Procedures have been implemented to ensure that disbursement reporting to COD are reflective of the actual disbursement dates and amounts in the student information system. Person Responsible for Corrective Action Plan: Donnie Purvis, Director of Financial Services Anticipated Date of Completion: Implemented
2024-001 Trans-National Crime – Assistance Listing No. 19.705 Recommendation: We recommend African Wildlife Foundation design controls to ensure all first tier awards in excess of $30,000 are accurately and timely registered with the Federal Funding Accountability and Transparency Act Subaward Repo...
2024-001 Trans-National Crime – Assistance Listing No. 19.705 Recommendation: We recommend African Wildlife Foundation design controls to ensure all first tier awards in excess of $30,000 are accurately and timely registered with the Federal Funding Accountability and Transparency Act Subaward Reporting System. In addition, AWF should ensure that any subawards are reported within the required time frame. The list of data elements required to be reported for each sub-award in excess of $30,000 include the following: • Subaward date • Subaward DUNS number • Subaward amount • Subaward obligation/action date • Subaward number • Subaward report submission date. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: We have created an account at FSRS.gov and are in the process of filing the FFATA reports for our INL sub-awards. Name(s) of the contact person(s) responsible for corrective action: Richard Holly Planned completion date for corrective action plan: 11/01/2024 If the U.S. Department of State has questions regarding this plan, please call Richard Holly at 202-939-3341
We observed the following condition in connection with our testing of the various U.S. Department of Education, Title IV, Student Financial Assistance Programs: • Per 34 CFR 668.34, one (1) student out of 15 tested for satisfactory academic progress requirements (SAP) received Title IV, HEA program ...
We observed the following condition in connection with our testing of the various U.S. Department of Education, Title IV, Student Financial Assistance Programs: • Per 34 CFR 668.34, one (1) student out of 15 tested for satisfactory academic progress requirements (SAP) received Title IV, HEA program funds in the amount of $6,342 and was not meeting the requirements specified by the University. The University subsequently returned the funds. The University should implement corrective actions to ensure that the above findings are resolved and do not recur in future periods. Corrective Action – The University agrees with the finding. To address, the University’s registrar’s office will flag students in the student information system and place a registration hold on their account if they are not currently meeting Satisfactory Academic Progress (SAP) requirements. The financial aid office will check for all holds, any former SAP corrective actions and ensure that all students, including those re-entering the University following an absence, are meeting SAP requirements.
Name of Contact Person: Laura Leach, Director of Finance and Administration Corrective Action: The Commission will review all subawards for subrecipients and ensure that FFATA reporting is completed in a timely manner for subawards subject to the requirements. The Commission will add a clause in our...
Name of Contact Person: Laura Leach, Director of Finance and Administration Corrective Action: The Commission will review all subawards for subrecipients and ensure that FFATA reporting is completed in a timely manner for subawards subject to the requirements. The Commission will add a clause in our Subawards stating this requirement. Proposed Completion Date: December 31, 2024
Cash Management Subrecipient Federal Program Title: Research & Development Cluster Assistance Listing No. 93.859 & 47.074 Type of Finding: Significant Deficiency in Internal Control over Compliance Other Matters Recommendation: We recommend the University evaluate its...
Cash Management Subrecipient Federal Program Title: Research & Development Cluster Assistance Listing No. 93.859 & 47.074 Type of Finding: Significant Deficiency in Internal Control over Compliance Other Matters Recommendation: We recommend the University evaluate its procedures and implement an additional control to review and approve the Subrecipient reimbursements timely. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: Grant accounting staff will follow payment requests through the system to make sure payments are made in a timely manner. Name(s) of the contact person(s) responsible for corrective action: Kirsten Broughton , Director of Grant Accounting. Planned completion date for corrective action plan: Implemented for FY25
Suspension Debarment Federal Program Title: Research & Development Cluster – Assistance Listing No. 47.083 Type of Finding: Significant Deficiency in Internal Control over Compliance Other MattersRecommendation: We recommend the University evaluate its procedures and implement an additional contr...
Suspension Debarment Federal Program Title: Research & Development Cluster – Assistance Listing No. 47.083 Type of Finding: Significant Deficiency in Internal Control over Compliance Other MattersRecommendation: We recommend the University evaluate its procedures and implement an additional control to ensure verification checks are occurring prior to entering into contract with a vendor/subrecipient. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: ISU has implemented PaymentWorks, a third-party vendor processing system that does 24-7 suspension and debarment checking. This is conducted on all ISU vendors that onboard through PaymentWorks. All ISU contracts will be processed through Jaggaer, which requires a Banner ID#. All vendors will be initiated through PaymentWorks. Accounts Payable checks sanction alerts in PaymentWorks and follows up with issues. We are also adding the S&D clause to all contracts. Name(s) of the contact person(s) responsible for corrective action: : Lisa Leyshon, AVP Finance/Controller and Kirsten Broughton, Director of Grant Accounting Planned completion date for corrective action plan: July 1, 2024
Finding #2024-003 Management acknowledges that the reporting method utilized for the Annual Education Stabilization ESSER Fund report should have been completed on a cash basis which is based on reimbursement of expenses received during the fiscal year. Classical Charter Schools will take the necess...
Finding #2024-003 Management acknowledges that the reporting method utilized for the Annual Education Stabilization ESSER Fund report should have been completed on a cash basis which is based on reimbursement of expenses received during the fiscal year. Classical Charter Schools will take the necessary steps to comply with the cash basis reporting method on all future Annual Education Stabilization ESSER Funds reports. The Grants Manager will review the instructions for completing the Annual Education Stabilization ESSER Fund when it is open in the portal (normally in January). Name of Contact Person: Dr. Vivian Cassaberry-Furby, Director of Business vfurby@classicalcharterschools.org
Student Financial Assistance Program Cluster - Department of Education Federal Financial Assistance Listing #84.063 Federal Pell Grant Program P063P222212,P063P232212 Eligibility Significant Deficiency in Internal Control over Compliance Finding Summary: One student was not awarded Pell assistance...
Student Financial Assistance Program Cluster - Department of Education Federal Financial Assistance Listing #84.063 Federal Pell Grant Program P063P222212,P063P232212 Eligibility Significant Deficiency in Internal Control over Compliance Finding Summary: One student was not awarded Pell assistance during the summer term as the student's FAFSA was not completed at the time the financial aid office was determining award eligibility. The student later completed the FAFSA within the award year and became eligible for a retroactive disbursement of Pell assistance; however, the financial aid office did not provide the student a retroactive disbursement of Pell. Responsible Individuals: Karrie Morgan, Director of Financial Aid Corrective Action Plan: Management will review procedures and control processes over monitoring retroactive disbursements. Anticipated Completion Date: October 31, 2024.
View Audit 328325 Questioned Costs: $1
enCircle believes the responses to findings 2024-001 and 2024-002 will remediate the concerns of this finding. Furthermore, enCircle will continue to work to decrease the number of allocations it actively uses when direct coding is more appropriate. enCircle will also work to integrate payroll alloc...
enCircle believes the responses to findings 2024-001 and 2024-002 will remediate the concerns of this finding. Furthermore, enCircle will continue to work to decrease the number of allocations it actively uses when direct coding is more appropriate. enCircle will also work to integrate payroll allocations into its payroll provider directly, so that these allocations are updated automatically by HR when position roles change.
During the monthly billing process, enCircle will now only bill up until the approved budget even if there are allowed costs, irrespective of budget, in excess of budget amounts. enCircle will then request a budget amendment to allow for these costs and once approved include the previously unbilled ...
During the monthly billing process, enCircle will now only bill up until the approved budget even if there are allowed costs, irrespective of budget, in excess of budget amounts. enCircle will then request a budget amendment to allow for these costs and once approved include the previously unbilled costs in the next monthly billing. Furthermore, enCircle will work to preemptively request budget amendments by forecasting allowed expenditures. enCircle will evaluate if the monthly meeting between grant management personnel and financial personnel remains sufficient to ensure communication and grant compliance are adequate. If not, enCircle will change the meeting cycle to create sufficient communication including other means (Teams chats, etc…)
View Audit 328174 Questioned Costs: $1
Response: Management agrees with the finding and acknowledges that a significant deficiency was identified related to report submission delay. To prevent this issue from recurring, we are implementing several corrective actions. These include establishing a stricter communication schedule with Post ...
Response: Management agrees with the finding and acknowledges that a significant deficiency was identified related to report submission delay. To prevent this issue from recurring, we are implementing several corrective actions. These include establishing a stricter communication schedule with Post Award Administrators to ensure timely submission of reports and strengthening of our internal monitoring procedures by tracking submission deadlines more closely. Contact person responsible for corrective action: Lynne Duong, Post Award & Compliance Manager Anticipated completion date: December 31, 2024
Response: Management agrees with the finding and acknowledges UAS contract service agreements used when working with certain vendors did not contain the terms and conditions in regard to suspension and debarment. The contract service agreement will be enhanced to include the language similar to UAS ...
Response: Management agrees with the finding and acknowledges UAS contract service agreements used when working with certain vendors did not contain the terms and conditions in regard to suspension and debarment. The contract service agreement will be enhanced to include the language similar to UAS subrecipient contracts and purchase orders to meet compliance. Contact person responsible for corrective action: Lynne Duong, Post Award & Compliance Manager Anticipated completion date: December 31, 2024
Response: Management agrees with the finding and will reevaluate internal processes and procedures. This error highlights the need for better oversight and timely communication between our organization and its subrecipients to ensure accurate reporting. The root cause of this issue was insufficient ...
Response: Management agrees with the finding and will reevaluate internal processes and procedures. This error highlights the need for better oversight and timely communication between our organization and its subrecipients to ensure accurate reporting. The root cause of this issue was insufficient monitoring and communication between the subrecipient and our grants management team. To address this, we are implementing several corrective actions. These include establishing a stricter communication schedule with subrecipients to ensure timely submission of invoices and expense reports and strengthening our internal monitoring procedures by tracking submission deadlines more closely. Additionally, we will improve guidance and capacity-building efforts for subrecipients to ensure they understand reporting requirements, and we will conduct quarterly reviews of subrecipient expenses to proactively identify and mitigate reporting delays. Contact person responsible for corrective action: Lynne Duong, Post Award & Compliance Manager Anticipated completion date: December 31, 2024
Finding: 2024-002: Special Tests and Provisions – Enrollment Reporting: Significant Deficiency in Internal Control Over Compliance Corrective Action Plan: The College acknowledges the delay in transmitting a student's graduation status to the Clearinghouse/NSLDS. This was due to a retroactive gradua...
Finding: 2024-002: Special Tests and Provisions – Enrollment Reporting: Significant Deficiency in Internal Control Over Compliance Corrective Action Plan: The College acknowledges the delay in transmitting a student's graduation status to the Clearinghouse/NSLDS. This was due to a retroactive graduation date change following a thesis review. We are revising our internal policy to ensure timely submission of enrollment status changes and will implement sample checks after each transmission date. Contact Person Responsible for Corrective Action: Deputy Director of Financial Aid, Eleanor Wu has implemented the corrective action plan. Anticipated Completion Date: Corrective action was completed by October 2024.
Finding 505400 (2024-001)
Significant Deficiency 2024
Finding 2024-001: Gramm-Leach Bliley Act-Student Information Security Finding: The institution revised its information security policies in response to the revised requirements, however, these policies were not formally approved and adopted until January 2024. The policies implemented as of Januar...
Finding 2024-001: Gramm-Leach Bliley Act-Student Information Security Finding: The institution revised its information security policies in response to the revised requirements, however, these policies were not formally approved and adopted until January 2024. The policies implemented as of January 2024 contained all required elements, however, the College’s existing information security policies as of June 9, 2023 did not contain certain elements required by regulation as agreed to in the Program Participation Agreement. Cause: The institution was in the process of modifying existing policies to comply with federal requirements. These policies were not approved and adopted until January 2024. Corrective Actions Taken or Planned: 1. In July 2023, Lake Forest College established a dedicated “Information Security Manager” (ISM) position to oversee the implementation and compliance of GLBA requirements. This role includes the responsibilities of the GLBA-mandated “Qualified Individual,” ensuring clear oversight and accountability for maintaining the security of customer information. 2. In September 2023, the College’s CIO and the newly appointed ISM conducted a comprehensive review of all existing IT policies, procedures, and practices. This review identified gaps in compliance and resulted in the development of new policies and substantial revisions to existing ones, ensuring comprehensive alignment with GLBA requirements. 3. From October to December 2023, the newly drafted and revised policies underwent a detailed review and collaborative refinement process, incorporating feedback from the College’s IT Governance group. 4. In January 2024, the College’s Senior Leadership Team formally approved the new and revised policies, demonstrating the institution’s commitment to full GLBA compliance and establishing a robust information security management framework. 5. Moving forward, these policies will undergo annual reviews (per policy) and updates by the CIO, ISM, and the IT Governance committee to ensure ongoing compliance with evolving regulatory requirements and to proactively address any new risks or operational changes. Contact Person Responsible: Eric Wacker, Information Security Manager ewacker@lakeforest.edu Completion Date: January 2024
The College acknowledges that a submission error occurred in Spring 2023, resulting in several students not being included in the routine semester enrollment submissions to the National Student Clearinghouse (NSC). Beginning in Spring 2024, our Institutional Research department initiated a comprehe...
The College acknowledges that a submission error occurred in Spring 2023, resulting in several students not being included in the routine semester enrollment submissions to the National Student Clearinghouse (NSC). Beginning in Spring 2024, our Institutional Research department initiated a comprehensive process to resubmit corrected enrollment files to the NSC, covering Spring 2023, Summer 2023, and Fall 2023. In collaboration with NSC, we followed their established process to rectify the error, which required reloading each submission one at a time in succession from the original submission with the error. This process caused delays in our subsequent submissions until the corrections were fully completed. To prevent recurrence, we have implemented enhanced checks and controls prior to each submission to review the file and file size to ensure the correct number of students are submitted to NSC. Additionally, all submissions post-Spring 2023 have been reviewed, and we have confirmed that this was an isolated incident.
Finding Summary: One instance was identified in which the student was over-awarded Federal Pell assistance. The Watertown location does not use the auto package tool within Anthology for awarding students; rather, awarding student assistance is a manual process. The incorrect line item was read on t...
Finding Summary: One instance was identified in which the student was over-awarded Federal Pell assistance. The Watertown location does not use the auto package tool within Anthology for awarding students; rather, awarding student assistance is a manual process. The incorrect line item was read on the PELL chart resulting in the student being over-awarded Pell assistance in the summer of 2023. Responsible Individuals: Lauren Svanda, Director of Financial Aid Corrective Action Plan: When implementing the FAFSA changes for 2024, the SIS was configured to utilize the Auto Packaging function for the Watertown location which significantly reduces the likelihood of a student being awarded the incorrect amount of PELL. After each student is Auto Packaged, it is reviewed to ensure accuracy of the PELL calculation. Anticipated Completion Date: Resolved – Spring 2024
View Audit 327987 Questioned Costs: $1
Audit Recommendation 2024-002: • The School should ensure that the data being reported is accurate. The Implementation Plan of Action(s): • Both ESSER and ARP ESSER reports are conducted by a 3rd party agency. To ensure accuracy, they will be monitored internally; reviewed and approved prior to the...
Audit Recommendation 2024-002: • The School should ensure that the data being reported is accurate. The Implementation Plan of Action(s): • Both ESSER and ARP ESSER reports are conducted by a 3rd party agency. To ensure accuracy, they will be monitored internally; reviewed and approved prior to the final submission/upload of the report. Reports will not be submitted without final approval of School Officials. Implementation Date: • This change will be reflected in the upcoming 2025 annual report. Control processes will be communicated between the School and the 3rd party reporting agency. Person Responsible for Implementation: • This process will be managed by the Director of Business and reviewed by the Chief Financial Officer.
Audit Recommendation 2024-001: • The School should ensure that processes are in place to understand reporting requirements that ensure that the data being reported is accurate. The Implementation Plan of Action(s): • Elementary and Secondary School Emergency Relief Fund (ESSER) and American Rescue ...
Audit Recommendation 2024-001: • The School should ensure that processes are in place to understand reporting requirements that ensure that the data being reported is accurate. The Implementation Plan of Action(s): • Elementary and Secondary School Emergency Relief Fund (ESSER) and American Rescue Plan (ARP ESSER) reports are conducted by a 3rd party agency. To ensure accuracy, they will be monitored internally; reviewed and approved prior to the final submission/upload of the report. Reports will not be submitted without final approval of School Officials. Implementation Date: • This change will be reflected in the upcoming 2025 annual report. Control processes will be communicated between the School and the 3rd party reporting agency. Person Responsible for Implementation: • This process will be managed by the Director of Business and reviewed by the Chief Financial Officer.
Finding 505278 (2024-001)
Significant Deficiency 2024
McNc
NC
Name of Contact Person: Sarah Taylor, CFO Corrective Action: The Organization agrees that a significant deficiency exists regarding internal controls over financial reporting related to the revision to the fiscal year 2023 consolidated financial statements for a gross vs. net presentation error rela...
Name of Contact Person: Sarah Taylor, CFO Corrective Action: The Organization agrees that a significant deficiency exists regarding internal controls over financial reporting related to the revision to the fiscal year 2023 consolidated financial statements for a gross vs. net presentation error related to ASC 606. The Organization identified the error in the current year review of revenue contracts in accordance with ASC 606, and informed Forvis Mazars of the presentation error. As part of the corrective action plan, Management continually assesses existing and new contracts with ASC 606 and has implemented policies and procedures surrounding the adherence to GAAP accounting requirements. Implementation Date: July 1, 2023
Finding Number: 2024-001 Federal Assistance Listing Number: 84.268 Federal Direct Student Loans Year Ended: June 30, 2024 Responsible Individual: Christine Banewicz Director of Student Accounts Management’s Response and Corrective Action Plan: The College agrees with the finding and recommendation. ...
Finding Number: 2024-001 Federal Assistance Listing Number: 84.268 Federal Direct Student Loans Year Ended: June 30, 2024 Responsible Individual: Christine Banewicz Director of Student Accounts Management’s Response and Corrective Action Plan: The College agrees with the finding and recommendation. The College ran a report of Direct Loan disbursements made during fiscal year 2024, noting that the required communications had not timely been sent out for 43 Direct Loan disbursements that took place from May 31, 2024 through June 30, 2024. Upon discovery of the change in criteria, management identified the students that had been impacted and sent disbursement notifications to students the next day, on July 31, 2024. Management has implemented in their control process an additional step to compare reports of Direct Loan disbursements between the Student Information and Financial Aid systems to identify any discrepancies going forward. The above procedures have already been implemented.
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