Corrective Action Plans

Finding 499636 (2023-001)

None 2023

PA

Subrecipient Monitoring Cash Management Matching / Level of Effort / Earmarking § 200.305

The Township will adopt a written policy regarding cash management of funds designed to minimize the time elapsing between the transfer of funds from the US Treasury and when distributed by the Township.

View Audit 322519

Finding 499635 (2023-005)

Material Weakness 2023

Floyd County

IN

Subrecipient Monitoring Internal Control / Segregation of Duties § 200.303 § 200.332

FINDING 2023-005 Finding Subject: COVID-19 - Coronavirus State and Local Fiscal Recovery Funds - Subrecipient Monitoring Summary of Finding: Both of the County’s subrecipients submitted quarterly reports for Quarter 2 of 2023, covering the time period from April 1st through June 30th. No other quart...

FINDING 2023-005 Finding Subject: COVID-19 - Coronavirus State and Local Fiscal Recovery Funds - Subrecipient Monitoring Summary of Finding: Both of the County’s subrecipients submitted quarterly reports for Quarter 2 of 2023, covering the time period from April 1st through June 30th. No other quarterly financial and performance reports were submitted to the County during the fiscal year. As part of the monitoring the County performed on the subrecipients in March 2023, they noted the subrecipients had been missing quarterly reports. Despite communications made by the County to obtain the missing quarterly reports, no other quarterly reports were submitted by the subrecipients. Contact Person Responsible for Corrective Action: Don Lopp, Director of Operations and County Planning Contact Phone Number and Email Address: 812-948-4110 and dlopp@floydcounty.in.gov Views of Responsible Officials: We concur with the finding Description of Corrective Action Plan: Staff will continue to work with Water companies regarding audit of projects and submission of all required quarterly reports. Anticipated Completion Date: Quarterly Reports will be collected until final December 2024 reporting. All subrecipient awards are required to be completed by December 2024.

View Audit 322513

Finding 499634 (2023-004)

Material Weakness 2023

Floyd County

IN

Internal Control / Segregation of Duties Allowable Costs / Cost Principles Material Weakness § 200.1 § 200.303

FINDING 2023-004 Finding Subject: COVID-19 - Coronavirus State and Local Fiscal Recovery Funds - Reporting Summary of Finding: The County submitted four P&E reports during the audit period; however, the errors as identified below were noted on all four reports.  Quarterly Report: October 1, 2022 to...

FINDING 2023-004 Finding Subject: COVID-19 - Coronavirus State and Local Fiscal Recovery Funds - Reporting Summary of Finding: The County submitted four P&E reports during the audit period; however, the errors as identified below were noted on all four reports.  Quarterly Report: October 1, 2022 to December 31, 2022 Current period expenditures reported 7 projects with errors totaling $77,234. Cumulative expenditures reported 22 projects with errors totaling $3,955,669.  Quarterly Report: January 1, 2023 to March 31, 2023 Current period expenditures reported 7 projects with errors totaling $173,169. Cumulative expenditures reported 25 projects with errors totaling $2,633,217.  Quarterly Report: April 1, 2023 to June 30, 2023 Current period expenditures reported 2 projects with errors totaling $0, since expenditures were posted to the incorrect project. Cumulative expenditures reported 24 projects with errors totaling $2,372,744.  Quarterly Report: July 1, 2023 to September 30, 2023 Current period expenditures reported 3 projects with errors totaling $13,412. Cumulative expenditures reported 26 projects with errors totaling $2,273,749. Contact Person Responsible for Corrective Action: Don Lopp, Director of Operations and County Planning Contact Phone Number and Email Address: 812-948-4110 and dlopp@floydcounty.in.gov Views of Responsible Officials: We concur with the finding Description of Corrective Action Plan: As Director of Operations and Planning, the American Rescue Plan quarterly reports are submitted through the office. During the last two audit, it appears data input errors have occurred with the reporting of total expenditures. The initial corrective action of review was not sufficient to correct the data input errors. During the recent July 2024 quarterly report, staff reviewed the items on line and believe that all reporting has been corrected. Starting with the September reporting, two staff members will review the data input Anticipated Completion Date: September 2024 – For the third quarter reporting period.

View Audit 322513

Finding 499631 (2023-004)

Material Weakness 2023

Hamilton County Economic Development Corporation

IN

Subrecipient Monitoring § 200.331 § 200.332 § 200.521

Condition: The Organization did not clearly communicate the required federal award information and applicable requirements to the subrecipients. The Organization did not evaluate the risk of non-compliance of the subrecipients in order to identify the appropriate monitoring procedures. Statistical s...

Condition: The Organization did not clearly communicate the required federal award information and applicable requirements to the subrecipients. The Organization did not evaluate the risk of non-compliance of the subrecipients in order to identify the appropriate monitoring procedures. Statistical sampling was not used in making sample selections. Response: The Organizations’ Board and Chief Executive OGicer (CEO) and key HCEDC StaG recognize the need to further refine subrecipient monitoring. Subrecipients within the identified project are all school districts already under single audit with associated levels of financial controls and reporting. Participating districts, via their appropriate elected boards, were informed the conditions of the grant and individually voted to accept obligations and requirements. Some subrecipients in Fall 2023 did attempt to submit unauthorized expenses, the controls were adequate for management to identify these discrepancies, which were in turn not submitted for reimbursement to the state, and appropriate amendments were made prior to any expense being reimbursed. HCEDC management, in alignment with outsourced controller services via CliftonLarsonAllen LLP, have now further increased controls and monitoring activity. Through the onboarding of a new Grants Management System (GMS) in Fall 2024, subrecipient monitoring activity and profiles are now created for each eligible award. In 2024, the HCEDC has also been much more active in communicating reporting and grants management requirements to subrecipients, including multiple amendments to the ESSER grant program. The new GMS system is built specifically to assist organizations with single audit compliance and has multiple features specific to subrecipient reporting and monitoring.

View Audit 322512

Finding 499620 (2023-002)

Significant Deficiency 2023

Town of Hampton

NH

Procurement, Suspension & Debarment Subrecipient Monitoring Allowable Costs / Cost Principles

Audit Finding Reference: 2023-002 Management’s Response and Planned Corrective Action: It is my understanding from talking with Ethan Blevins that this is something that is being discovered across many municipalities and school districts. I am awaiting a sample of this type of policy from Ethan...

Audit Finding Reference: 2023-002 Management’s Response and Planned Corrective Action: It is my understanding from talking with Ethan Blevins that this is something that is being discovered across many municipalities and school districts. I am awaiting a sample of this type of policy from Ethan Blevins. Once I have the sample, I will draft a policy and have it approved by the board prior to end of year. Name of Contact Person and Completion Date: Name 1: Kristi Pulliam Name 2: Anticipated Completion Date – 12/31/24

View Audit 322501

Finding 499617 (2023-001)

Material Weakness 2023

County of Jefferson

PA

Subrecipient Monitoring Internal Control / Segregation of Duties

Subrecipient Monitoring AL 93.778 Medical Assistance Program and DHS Medical Assistance Criteria: PA DHS compliance require the County to perform subrecipient monitoring procedures over MATP funding disbursed to the Program’s vendor. Condition: During the audit, it was noted that the County was no...

Subrecipient Monitoring AL 93.778 Medical Assistance Program and DHS Medical Assistance Criteria: PA DHS compliance require the County to perform subrecipient monitoring procedures over MATP funding disbursed to the Program’s vendor. Condition: During the audit, it was noted that the County was not performing subrecipient monitoring over the Program’s vendor. Cause: The County does not have adequate controls in place or the expertise to ensure proper subrecipient monitoring procedures. Effect: The Program’s vendor may be using grant funding inappropriately. This is a repeat finding from the prior year – Finding 2022-001. Questioned Costs: The amount of questioned costs, if any, is undeterminable Recommendation: The County should implement internal control procedures that ensure the vendor is being properly monitored. Management Response: Management maintains that they do not have adequate controls or proper expertise to monitor the vendor. Management will contract a firm to provide oversight over the vendor. Anticipate Completion Date: Immediate

View Audit 322490

Finding 499616 (2023-002)

Material Weakness 2023

County of Jefferson

PA

Subrecipient Monitoring Internal Control / Segregation of Duties

Subrecipient Monitoring AL 21.023 Emergency Rental Assistance Program Criteria: Internal control procedures require the County to perform subrecipient monitoring procedures over the funding disbursed to the Program’s vendor. Condition: During the audit, it was noted that the County was not perfor...

Subrecipient Monitoring AL 21.023 Emergency Rental Assistance Program Criteria: Internal control procedures require the County to perform subrecipient monitoring procedures over the funding disbursed to the Program’s vendor. Condition: During the audit, it was noted that the County was not performing subrecipient monitoring over the Program’s vendor. Cause: The County does not have adequate controls in place or the expertise to ensure proper subrecipient monitoring procedures. Effect: The Program’s vendor may be using grant funding inappropriately. This is a repeat finding from the prior year – Finding 2022-002. Questioned Costs: The amount of questioned costs, if any, is undeterminable Recommendation: The County should implement internal control procedures that ensure the vendor is being properly monitored. Management Response: Management maintains that they do not have adequate controls or proper expertise to monitor the vendor. Management will contract a firm to provide oversight over the vendor. Anticipate Completion Date: Immediate

View Audit 322490

Finding 499583 (2023-002)

Material Weakness 2023

Manitowoc County

WI

Procurement, Suspension & Debarment Subrecipient Monitoring Matching / Level of Effort / Earmarking

Suspension and Debarment Recommendation: We recommend the County follow their suspension and debarment policy which includes maintaining documentation related to suspension and debarment for covered transactions. Explanation of disagreement with audit finding: There is no disagreement with the findi...

Suspension and Debarment Recommendation: We recommend the County follow their suspension and debarment policy which includes maintaining documentation related to suspension and debarment for covered transactions. Explanation of disagreement with audit finding: There is no disagreement with the finding. Action planned in response to finding: The County immediately began reviewing its policy related to suspension and debarment and is reviewing procedures to ensure that requirements are consistently followed in future years. Name(s) of the contact person(s) responsible for corrective action: JJ Gutman, Finance Director Planned completion date for corrective action plan: The County immediately began evaluating procedures and will implement as soon as possible

View Audit 322444

Finding 499581 (2023-001)

Material Weakness 2023

Whatcom County

WA

Procurement, Suspension & Debarment Subrecipient Monitoring

Corrective action the auditee plans to take in response to the finding: Whatcom County’s primary internal control over federal grant compliance is the requirement that grant administrators to attend federal grant training. Whatcom County will evaluate the feasibility of adding an additional interna...

Corrective action the auditee plans to take in response to the finding: Whatcom County’s primary internal control over federal grant compliance is the requirement that grant administrators to attend federal grant training. Whatcom County will evaluate the feasibility of adding an additional internal control of checking for debarment when a vendor is set in our accounting system and there after checking for debarment every calendar year before purchase orders are issued.

View Audit 322440

Finding 499561 (2023-001)

Significant Deficiency 2023

Early Childhood Connections

SD

Procurement, Suspension & Debarment Subrecipient Monitoring Allowable Costs / Cost Principles

Finding No. 2023-001: Written Uniform Guidance Policies Responsible Individuals: Autumn Gregory, Executive Director Corrective Action Plan: The Organization will develop written Uniform Guidance policies. Anticipated Completion Date: December 31, 2024

View Audit 322422

Finding 499546 (2023-006)

Significant Deficiency 2023

Town of Fountain City

IN

Subrecipient Monitoring Reporting Significant Deficiency § 200.302 § 200.328

Finding 2023-006 – Coronavirus State and Local Fiscal Recovery Funds - Reporting (Significant Deficiency) Criteria: "The financial management system of each non-Federal entity must provide for the following: (2) Accurate, current, and complete disclosure of the financial results of each Federal aw...

Finding 2023-006 – Coronavirus State and Local Fiscal Recovery Funds - Reporting (Significant Deficiency) Criteria: "The financial management system of each non-Federal entity must provide for the following: (2) Accurate, current, and complete disclosure of the financial results of each Federal award or program in accordance with the reporting requirements set forth in §§ 200.328 Financial reporting . . . ." 34 CFR 76.722 states: "A State may require a subgrantee to submit reports in a manner and format that assists the State in complying with the requirements under 34 CFR 76.720 and in carrying out other responsibilities under the program." Context: There was no documented review by someone other than the preparer of the annual report to ensure the information submitted was complete and accurate. Per discussion with management, verbal review occurred but there is no documentation to support that review occurred. Views of Responsible Officials: We concur with the finding. Description of Corrective Action Plan: Management will ensure that review of the annual report is documented. Responsible Party and Timeline for Completion: The Clerk-Treasurer is the responsible party. The completion will go into effect in 2024.

View Audit 322400

Finding 499542 (2023-003)

Material Weakness 2023

Perry County

IN

Procurement, Suspension & Debarment Subrecipient Monitoring Allowable Costs / Cost Principles § 200.214 § 200.303

FINDING 2023-003 Subject: COVID 19 - Coronavirus State and Local Fiscal Recovery Funds - Suspension and Debarment Summary of Finding: The ineffective internal controls resulting in a failure of having processes and procedures in place to prohibit from contracting with or making subawards under cover...

FINDING 2023-003 Subject: COVID 19 - Coronavirus State and Local Fiscal Recovery Funds - Suspension and Debarment Summary of Finding: The ineffective internal controls resulting in a failure of having processes and procedures in place to prohibit from contracting with or making subawards under covered transactions to parties that are suspended and debarred or whose principals are suspended or debarred. Contact Person Responsible for Corrective Action: Kristinia L. Hammack, Perry County Auditor Contact Phone Number: (812) 547-6427 Views of Responsible Official: We concur with the audit finding. Description of Corrective Action Plan: Currently, the County requires all new vendors to complete a “Vendor Registration Form”. A new step that Procurement implemented as of September 30, 2024 will be verification of vendor’s status on sam.gov and attaching the screenshot to the LOW system. Procurement will update their vendor policy to specifically include this step. The Auditor’s Office will check incoming contracts from departments to ensure proper documentation is attached that verifies the vendor has been checked through sam.gov and in.gov. Once the contract has been approved by the Commissioners, the Auditor’s office will then upload the contract and supporting documents into Gateway. Anticipated Completion Date: September 30, 2024

View Audit 322397

Finding 499533 (2023-004)

Significant Deficiency 2023

Hennepin County Minnesota

MN

Reporting Matching / Level of Effort / Earmarking Subrecipient Monitoring § 200.303 § 200.502 § 200.510

Subject: Hennepin County’s 2023 Corrective Action Plan Finding# 2023-004 Significant Deficiency in Internal Control—Schedule of Expenditures of Federal Awards (SEFA) Program(s): National Bioterrorism Hospital Preparedness Program (ALN 93.889); Immunization Cooperative Agreements (ALN 93. 268); COV...

Subject: Hennepin County’s 2023 Corrective Action Plan Finding# 2023-004 Significant Deficiency in Internal Control—Schedule of Expenditures of Federal Awards (SEFA) Program(s): National Bioterrorism Hospital Preparedness Program (ALN 93.889); Immunization Cooperative Agreements (ALN 93. 268); COVID-19 Epidemiology and Laboratory Capacity for Infectious Diseases (ELC)(ALN 93. 323); Child Support Services (ALN 93. 563); State Administrative Matching Grants for the Supplemental Nutrition Assistance Program (ALN 10.561) Type of Finding: Significant Deficiency in Internal Control over Compliance; Other Matter Compliance Finding Condition: While testing the SEFA, we noted that internal controls were not operating effectively over the preparation of the SEFA. In addition, we noted the following errors in the original SEFA we received for the audit: • $1,284,631 of expenditures were improperly included in ALN 93.889 when the amount should have been included in ALN 93.268. • $30,394 of expenditures was improperly included in ALN 93.889 when the amount should have been included in ALN 93.323. • $626,894 of expenditures related to ALN 93.563 was missing from the schedule. • $61,290 of expenditures related to ALN 10.561 was missing from the schedule. Hennepin County’s Corrective Action Planned in Response to Finding: The County will continue to strengthen controls over the preparation of the SEFA. Hennepin County Employee Responsible for the CAP: Elena Doran Planned Completion Date for CAP: September 30, 2024

View Audit 322389

Finding 499530 (2023-011)

Material Weakness 2023

Hennepin County Minnesota

MN

Procurement, Suspension & Debarment Subrecipient Monitoring

Subject: Hennepin County’s 2023 Corrective Action Plan Finding# 2023-011 Suspension and Debarment Program: Congressional Directives (ALN 93.493) Type of Finding: Material Weakness in Internal Control over Compliance; Other Matter Compliance Finding Condition: The county hospital does not have...

Subject: Hennepin County’s 2023 Corrective Action Plan Finding# 2023-011 Suspension and Debarment Program: Congressional Directives (ALN 93.493) Type of Finding: Material Weakness in Internal Control over Compliance; Other Matter Compliance Finding Condition: The county hospital does not have effective internal controls over the suspension and debarment requirement for the Congressional Directives program. In addition, there was no evidence that the county hospital had verified that entities receiving more than $25,000 in federal grant funds were not suspended or debarred prior to providing them with federal funds. Hennepin County’s Corrective Action Planned in Response to Finding: Hennepin Healthcare System, Inc. (HHS) implemented procedures in its Peoplesoft system to document entities receiving more than $25,000 in federal grant funds were not suspended or debarred prior to providing them with federal funds. Hennepin County Employee Responsible for the CAP: Mark Willmert Planned Completion Date for CAP: December 31, 2024

View Audit 322389

Finding 499529 (2023-010)

Significant Deficiency 2023

Hennepin County Minnesota

MN

Reporting Subrecipient Monitoring Significant Deficiency

Subject: Hennepin County’s 2023 Corrective Action Plan Finding# 2023-010 Reporting Program: Congressional Directives (ALN 93.493) Type of Finding: Significant Deficiency in Internal Control over Compliance Condition: The county hospital could not provide documentation that review and approval...

Subject: Hennepin County’s 2023 Corrective Action Plan Finding# 2023-010 Reporting Program: Congressional Directives (ALN 93.493) Type of Finding: Significant Deficiency in Internal Control over Compliance Condition: The county hospital could not provide documentation that review and approval of the semi-annual progress report was conducted prior to the report being submitted. Hennepin County’s Corrective Action Planned in Response to Finding: The semi-annual report information was provided by both program staff and the Grants Accounting Department and submitted by the Grants Director. However, there was no documentation kept of a review. Management has implemented a process to document the review and approval prior to the semi-annual report being submitted. Hennepin County Employee Responsible for the CAP: Mark Willmert Planned Completion Date for CAP: December 31, 2024

View Audit 322389

Finding 499528 (2023-009)

Significant Deficiency 2023

Hennepin County Minnesota

MN

Cash Management Subrecipient Monitoring Significant Deficiency

Subject: Hennepin County’s 2023 Corrective Action Plan Finding# 2023-009 Cash Management Program: Congressional Directives (ALN 93.493) Type of Finding: Significant Deficiency in Internal Control over Compliance Condition: The county hospital could not provide documentation that a review and ...

Subject: Hennepin County’s 2023 Corrective Action Plan Finding# 2023-009 Cash Management Program: Congressional Directives (ALN 93.493) Type of Finding: Significant Deficiency in Internal Control over Compliance Condition: The county hospital could not provide documentation that a review and approval of grant reimbursement requests was conducted prior to the request being submitted for payment. Hennepin County’s Corrective Action Planned in Response to Finding: Hennepin Healthcare System, Inc. (HHS) has processes in place to review and approve grant reimbursement requests however this was not documented for this grant in 2023. HHS will review all current grants as well as new grants to ensure this documentation is being captured. Hennepin County Employee Responsible for the CAP: Mark Willmert Planned Completion Date for CAP: December 31, 2024

View Audit 322389

Finding 499527 (2023-008)

Significant Deficiency 2023

Hennepin County Minnesota

MN

Allowable Costs / Cost Principles Eligibility Student Financial Aid § 200.303

Subject: Hennepin County’s 2023 Corrective Action Plan Finding# 2023-008 Activities Allowed or Unallowed; Allowable Costs/Cost Principles; Eligibility Program: Foster Care Title IV-E (ALN 93.658) Type of Finding: Significant Deficiency in Internal Control over Compliance Condition: While we were...

Subject: Hennepin County’s 2023 Corrective Action Plan Finding# 2023-008 Activities Allowed or Unallowed; Allowable Costs/Cost Principles; Eligibility Program: Foster Care Title IV-E (ALN 93.658) Type of Finding: Significant Deficiency in Internal Control over Compliance Condition: While we were able to test manual compensating controls over activities allowed or unallowed, allowable costs/cost principles and eligibility, we were not able to review and test the automated application controls and the related ITGCs within the MAXIS and SSIS systems that reside within the State of Minnesota, but are utilized by the County, to determine whether the system controls are adequately designed and implemented and operating effectively. Hennepin County’s Corrective Action Planned in Response to Finding: Hennepin County will encourage the State to provide an independent audit of the design and implementation of MAXIS and SSIS system controls for the benefit of all counties. Hennepin County Employee Responsible for the CAP: Andra Roethler Planned Completion Date for CAP: December 31, 2024

View Audit 322389

Finding 499526 (2023-007)

Material Weakness 2023

Hennepin County Minnesota

MN

Eligibility Subrecipient Monitoring Cash Management § 200.303

Subject: Hennepin County’s 2023 Corrective Action Plan Finding# 2023-007 Eligibility Program: Medical Assistance Program (ALN 93.778) Type of Finding: Material Weakness in Internal Control over Compliance; Other Matter Compliance Finding Condition: During our testing, we noted the following 8 in...

Subject: Hennepin County’s 2023 Corrective Action Plan Finding# 2023-007 Eligibility Program: Medical Assistance Program (ALN 93.778) Type of Finding: Material Weakness in Internal Control over Compliance; Other Matter Compliance Finding Condition: During our testing, we noted the following 8 instances of noncompliance in the sample of 120 case files tested: • Five MAXIS (eligibility determination system) case files had different bases of eligibility in MAXIS and MMIS (payment system). For three of the five cases, MAXIS indicated the beneficiary was “EX” (age 65 or older) while MMIS indicated the beneficiary was “DX” (disabled). For one of the five cases, MAXIS indicated the beneficiary was “1619(b)” (people who no longer receive an SSI cash benefit and maintain their disability status) while MMIS indicated the beneficiary was “DX” (disabled) and the final case indicated the beneficiary was “DC” (disabled child 18-20) in MAXIS while MMIS indicated the beneficiary was “DT” (disabled child under TEFRA option). • Two MAXIS case files did not have a signed application on file. • One MAXIS case file did not have citizenship verified. In addition, the County does not have a formalized supervisory case file review process in place to ensure accuracy and completeness of inputs into the two eligibility determination systems, MAXIS and METS. Hennepin County’s Corrective Action Planned in Response to Finding: Hennepin County will strengthen internal controls over inputs used to determine eligibility to ensure they are correctly entered and the information required by the contract is retained in the County’s records. Hennepin County Employee Responsible for the CAP: Vickie Goulette Planned Completion Date for CAP: December 31, 2024

View Audit 322389

Finding 499524 (2023-005)

Significant Deficiency 2023

Hennepin County Minnesota

MN

Eligibility Subrecipient Monitoring Significant Deficiency § 200.303

Subject: Hennepin County’s 2023 Corrective Action Plan Finding# 2023-005 Eligibility Program: WIC Special Supplemental Nutrition Program for Women, Infants, and Children (WIC) (ALN 10.557) Type of Finding: Significant Deficiency in Internal Control over Compliance Condition: While we were able t...

Subject: Hennepin County’s 2023 Corrective Action Plan Finding# 2023-005 Eligibility Program: WIC Special Supplemental Nutrition Program for Women, Infants, and Children (WIC) (ALN 10.557) Type of Finding: Significant Deficiency in Internal Control over Compliance Condition: While we were able to test manual compensating controls over eligibility determination, we were not able to review and test the automated application controls and the related information technology general controls (ITGCs) within the HuBERT system, a state system that is administered by the state and required to be used by the County for eligibility determination, to determine whether controls are adequately designed and implemented and operating effectively. Hennepin County’s Corrective Action Planned in Response to Finding: Hennepin County will encourage the State to provide an independent audit of the design and implementation of HuBERT system controls for the benefit of all counties. Hennepin County Employee Responsible for the CAP: Andra Roethler Planned Completion Date for CAP: December 31, 2024

View Audit 322389

Finding 499510 (2023-001)

None 2023

Town of Litchfield

NH

Subrecipient Monitoring Allowable Costs / Cost Principles Procurement, Suspension & Debarment

Corrective Action Plan for Audit Finding Town of Litchfield Corrective Plan Information: Audit Finding Number: 2023-001 Finding: Document Policies and Procedures over Federal Awards Type of Finding: Compliance Criteria: OMB's Uniform Administrative Requirements, Cost Principles, and Audit Requiremen...

Corrective Action Plan for Audit Finding Town of Litchfield Corrective Plan Information: Audit Finding Number: 2023-001 Finding: Document Policies and Procedures over Federal Awards Type of Finding: Compliance Criteria: OMB's Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (UG) established significant requirements related to federal awards. The requirements stipulate that federal award recipients must document their policies and procedures over certain aspects of financial program management. Specifically, written policies are required for the following: • Cash management • Determination of allowable costs • Employee travel • Procurement • Conflicts of interest • Subrecipient monitoring and management Corrective Action Taken Adoption of Policy "Federal Grant Acceptance and or to be Taken: Compliance Policy" by the Board of Selectmen and implementation across all departments. See attached Date of Completion or Policy Federal Grant Acceptance and Compliance Policy" estimated Date of Adopted by the Board of Selectmen August 12, 2024 Completion: Issued to all department heads 8/13/2024 Shared drive for grant documentation created and shared with department heads Town Purchasing Policy amended to include reference to Grant policy 8/12/2024. Policies updated on Town website - 8/14/2024 Management The Town of Litchfield agrees with the finding as no Response: formalized Policy or Procedures existed at the time of Audit. Town Contact Kim Kleiner Responsible for Town Administrator Corrective Action: 2 Liberty Way, Litchfield, NH 03052 603-424-4046 x1250 Email: kkleiner@litchfieldnh.gov

View Audit 322369

Finding 499508 (2023-002)

Material Weakness 2023

City of Crawfordsville

IN

Internal Control / Segregation of Duties Allowable Costs / Cost Principles Material Weakness § 200.1 § 200.303

FINDING 2023-002 Subject: Coronavirus State and Local Fiscal Recovery Funds - Reporting Federal Agency: U.S. Department of Treasury Assistance Listing Number: 21.027 Federal Award Number: FY 2022 Pass-Through Entity: N/A Compliance Requirements: Reporting Audit Findings: Material Weakness, Modifie...

FINDING 2023-002 Subject: Coronavirus State and Local Fiscal Recovery Funds - Reporting Federal Agency: U.S. Department of Treasury Assistance Listing Number: 21.027 Federal Award Number: FY 2022 Pass-Through Entity: N/A Compliance Requirements: Reporting Audit Findings: Material Weakness, Modified Opinion Condition: The City had not properly designed or implemented a system of internal controls, which would include appropriate segregation of duties that would likely be effective in preventing, or detecting and correcting, noncompliance. Recipients are required to submit quarterly or annually Project and Expenditure (P&E) reports to the Department of Treasury (Treasury). The reporting periods, as well as the respective due dates, are based upon type of recipient and its population, as well as the recipient's allocation amount. Information to be reported includes projects funded, expenditures, and contracts for the appropriate reporting period. The City was classified as a metropolitan city with a population below 250,000 residents that received an allocation of less than $10 million in Coronavirus State and Local Fiscal Recovery Funds (CSLFRF). As, annual reports are to cover one calendar year and must be submitted to the Treasury by April 30 each year. Context: The City submitted one P&E report during the audit period; however, a single employee prepared and submitted the P&E report without a review or oversight process in place to prevent, or detect and correct errors. In addition, the P&E report was not properly supported by the City’s records. All but $100,000 of the expenditures were reported under the Eligible Use Category of “Administrative Expenses.” However, the City’s expenditures during the audit period consisted of assistance to business and households, sewer infrastructure, and tourism support, none of which qualified as Administrative Expenses. Furthermore, the City reported that it was electing to take the Revenue Loss Standard Allowance, but the amount reported as Revenue Loss was $0. Views of Responsible Official: We concur with the finding. Description of Corrective Action Plan: The City of Crawfordsville management will follow the following process. 1. Before processing request from designated organizations the Clerk Treasurer and Mayor or a designated person, will review documentation and approve for payment/claim processing. 2. After approval a claim will be submitted to the Clerk Treasurer office for payment. 3. Clerk Treasurer will prepare and submit monthly expenditure report to the Mayor or designated person. 4. Annually before the Clerk Treasurer, reports to the U.S. Treasury expenditures the Clerk Treasurer and Mayor, or designated person, will review and confirm expenditures. 5. Clerk Treasurer will submit report to U.S. Treasury following prompts. 6. Clerk Treasurer will notify Mayor of the annual report submission. Responsible Party and Timeline for Completion: Clerk Treasurer and the submission that takes place in 2024 (2023 report).

View Audit 322367

Finding 499470 (2023-002)

Significant Deficiency 2023

Panthera Corporation

NY

Subrecipient Monitoring Reporting Significant Deficiency § 200.303 § 200.332

In 2024, the Corporation implemented a process to obtain single audit affirmation letters annually from subrecipients, if applicable, and confirm as per current understanding and discussions with subreceipients during due diligence process that their funding from US federal government sources during...

In 2024, the Corporation implemented a process to obtain single audit affirmation letters annually from subrecipients, if applicable, and confirm as per current understanding and discussions with subreceipients during due diligence process that their funding from US federal government sources during the agreement period will not exceed $750,000 annually. These steps will ensure proper subrecipient monitoring in alignment with federal regulations.

View Audit 322306

Finding 499468 (2023-004)

Material Weakness 2023

City of Terre Haute

IN

Procurement, Suspension & Debarment Subrecipient Monitoring Allowable Costs / Cost Principles § 200.303

FINDING 2023-004 Finding Subject: Coronavirus State and Local Fiscal Recovery Funds – Suspension and Debarment Summary of Finding: Material Weakness, Modified Opinion Contact Person Responsible for Corrective Action: Jessica Thome, Controller Contact Phone Number and Email Address: (812) 244-2360 an...

FINDING 2023-004 Finding Subject: Coronavirus State and Local Fiscal Recovery Funds – Suspension and Debarment Summary of Finding: Material Weakness, Modified Opinion Contact Person Responsible for Corrective Action: Jessica Thome, Controller Contact Phone Number and Email Address: (812) 244-2360 and Jessica.thome@terrehaute.in.gov Views of Responsible Officials: We concur with the finding. Description of Corrective Action Plan: We will gather all current contracts and ensure there is a certification or signed clause. Going forward, a clause will be provided in our BID documents prior to signing contracts. Anticipated Completion Date: September 1, 2024

View Audit 322305

Finding 499467 (2023-003)

Material Weakness 2023

City of Terre Haute

IN

Internal Control / Segregation of Duties Allowable Costs / Cost Principles Material Weakness § 200.303

FINDING 2023-003 Finding Subject: Coronavirus State and Local Fiscal Recovery Funds - Reporting Summary of Finding: Material Weakness, Modified Opinion Contact Person Responsible for Corrective Action: Jessica Thome, Controller Contact Phone Number and Email Address: (812) 244-2360 and Jessica.thome...

FINDING 2023-003 Finding Subject: Coronavirus State and Local Fiscal Recovery Funds - Reporting Summary of Finding: Material Weakness, Modified Opinion Contact Person Responsible for Corrective Action: Jessica Thome, Controller Contact Phone Number and Email Address: (812) 244-2360 and Jessica.thome@terrehaute.in.gov Views of Responsible Officials: We concur with the finding. Description of Corrective Action Plan: We have utilized an outside consulting service to assist in the reconciliation of expenditures. Quarterly P&E Reports will be completed by the Controller and reviewed and approved by the Mayor. Anticipated Completion Date: Qtr3 P&E report required by end of Oct 2024

View Audit 322305

Finding 499466 (2023-002)

Material Weakness 2023

City of Terre Haute

IN

Questioned Costs Allowable Costs / Cost Principles Procurement, Suspension & Debarment § 200.303 § 200.308 § 200.403

FINDING 2023-002 Finding Subject: Coronavirus State and Local Fiscal Recovery Funds – Period of Performance Summary of Finding: Material Weakness, Modified Opinion Contact Person Responsible for Corrective Action: Jessica Thome, Controller Contact Phone Number and Email Address: (812) 244-2360 and J...

FINDING 2023-002 Finding Subject: Coronavirus State and Local Fiscal Recovery Funds – Period of Performance Summary of Finding: Material Weakness, Modified Opinion Contact Person Responsible for Corrective Action: Jessica Thome, Controller Contact Phone Number and Email Address: (812) 244-2360 and Jessica.thome@terrehaute.in.gov Views of Responsible Officials: We concur with the finding. Description of Corrective Action Plan: Controller will review any previously entered contracts that are paid from our federal grants including ARP to ensure we are in compliance. Anticipated Completion Date: October 2024

View Audit 322305 Questioned Costs: $1

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